How Do You Calculate Attrition Rate? Seeking Simple Formula from HR Pros

Hi HR Professionals,

Can anybody among you let me know about the formula to calculate the attrition rate?

Piyush
99773-00779
naikpiyush2000@yahoo.co.in

Attrition = Number of Heads that left the Organization in a Month
Number of Heads present at the beginning of the Month

Attrition % = (Number of Heads that left the Organization in a Month / Number of Heads present at the beginning of the Month) * 100

Cheers,
Gayathri Suraparaju

Hi,

Please read the following elaboration:

Attrition = (employees left * 100) / (opening balance in a month + number of employees joined in a month + number of employees left + number of employees at the end of the month).

Let's consider an example: if you have 100 employees at the start of the month, 10 new employees joined during the month, 25 employees left, and you're finally left with 85 employees at the end of the month, the attrition calculation would be:

Attrition = (25 * 100) / (100 + 10 + 25 + 85)
= 2500 / 220
= 11.36%

I hope it's clear to you now.

Warm regards,
Umesh Chaudhary
(welcomeumesh@yahoo.com)

Just to understand this from a practical standpoint, I would like to clarify who is considered for an exit here. For example, would you include the following categories of employees in the number of exits for the attrition rate:

1. Retirement/ Death/ Permanent Disability
2. Forced Exits/ Terminations
3. Resignations within, say, 60/90 days of probation/training.

PGS

Hi Umesh,

The example describing your formula should be:

25 x 100 / 100 + 10 + 85 + 25 = 11.36%.

Antra

Please find attached Excel sheet.

Hi,

There is only one exit door in the company. Whoever passes through it is to be considered in calculating attrition. Attrition doesn't exclude retirees, people terminated, etc.

Warm regards, Umesh Chaudhary (welcomeumesh@yahoo.com)

In the formula for Attrition Rate:

Attrition Rate = No. of people left in the month
-------------------------------------
Total strength at the beginning
of the month

We should not include the newcomers who have joined and left in the same month. Also, care has to be taken that an employee who resigns in the month after long absenteeism should not be considered for the calculation of Abs%; otherwise, it will have a double effect.

- Balaji

Hi,

This will help you calculate attrition in your organization.

Regards,
Anitha