How Do You Accurately Calculate Attrition Rate in a Large IT Company? Seeking Advice!

I am working for an IT company with 400+ employees. As we all are aware, IT companies face the maximum rate of attrition. I want to calculate the attrition rate for my company and just want your inputs on my queries mentioned below:

1. While calculating the attrition rate, do we need to consider only the confirmed employees during that period?
2. Do we need to count absconding employees for the attrition rate as well?
3. What is the popular formula used for calculating the Attrition Rate?

Requesting your help.

Thanks & Regards,
Sapana

The formula for attrition rate is: (Number of attritions x 100) / (Actual Employees + New Joiners) / 100.

Yes, you need to count the absconding employees as they have joined the organization and left due to various reasons, possibly related to the company culture. You should also include the employees who have not been confirmed.

Thank you.

While calculating the attrition formula, both confirmed and probationary employees are considered. Yes, absconding employees are also included. Attrition is calculated for all employees who leave the organization, regardless of the reason, whether absconded or terminated, etc.

Three Formulae for Attrition Calculation

There are three formulae used for attrition calculation: Monthly Attrition Rate, Annual Attrition Rate, and Annualized Attrition Rate.

Monthly Attrition Rate

Monthly Attrition = (No. of Employees left in Current Month / Avg Headcount) * 100

(Average HC = (Employee Strength at the Start of the month + Employee Strength at the end of the month) / 2)

Annualized Attrition Rate

In the case of annualized attrition calculation, based on the current attrition trend, the prospective annual attrition is calculated. For example, if we are calculating annualized attrition for June, then,

Annualized Attrition = (Sum of employees left in the last 6 months) * (12 / N) / (Avg HC of last 6 months)

N is the number of months, here it is 6 since June is the 6th month of the year.

When the above formula is used at the end of the year, the rate is called Annual Attrition as it gives the actual attrition of the specific year.

Regards,
Satpreet Kaur

Hello all, I am doing a CHRMP course where I learned the attrition formula. It is the number of employees leaving in a month divided by the total number of employees at mid-month, multiplied by 100. Is there not a particular formula for calculating attrition? Please help me.