Attrition Rate Calculation

If in the month of August, out of 50 employees, 18 employees leave, what is the attrition rate of such a call center? What is the industry practice to calculate it - monthly or yearly? Please depict the method.

Dear Teamhr 2010,
Formula to calculate attrition rate is as follows
ATTRITION RATE = (no. of attritions x 100) / (Actual Employees + New Joined) /100.
For Example:
Actual Employees = No. Of people left No. Of Joined Total Employees
(Opening BAL) ( No. of Attritions) (New Joined)
150 20 25
Attrition rate = ((20 x 100) / (150 + 25)) / 100
Which comes to 0.1142 i.e. 11.42%
Now as you had 150 previously and now 25 joined so it makes 150 + 25 =175
Now if you calculate 11.42% of 175 i.e. 175 x 0.1142 = 20
Which clearly shows that 175 – 20 = 155,
The current head count is 155 and your attrition rate is 11.42% that shows you lost 20 employees of 150 and 25 more joined which in total counts to 175.

Dear Suneeta,

Formula for calculating attrition rate.

ATTRITION RATE

[(No. of attritions) / (Opening headcount + New Joined)] * 100

Examples:

As per your example:

No. of Head Counts in a Month start: 100

No. of additions in a month: 50

Attrition: 20

Closing Head Counts at the end of the month: 100 + 50 - 20 = 130

Formula for calculation of Attrition is: 20 * 100 / 130 = 15.38%

As per the formula shown above:

Attrition rate = [20 / (100 + 50)] * 100
= 13.33%

I think the formula I have shown is correct. Please check yours.

Regards,
Senthil

Senthil, you are correct.

Dear All,

Request you to please provide accurate information as this platform is accessed by people seeking answers to their questions. Misguiding them may cause trouble for them at some point.

Regards,
RK

Attrition rate calculations must have a base - that is, it is first decided what the actual headcount required for an organization to sustain and operate its complete business activity is. Second, it is also presumed that there will always be incoming and outgoing flow, which may depend on the qualitative aspect of the organization and employees' response and acceptance to the work environment. A question arises here - are we considering the employees who are serving under notice period and probation/observations?

In view of the above, the attrition rate would, therefore, include the number of employees actually left out and the actual number of employees who are existing and rendering the output, plus the new joiners who deliver the output from day one. Requesting all members to kindly shed some light on the above.

Thanks,
Bijay

ATTRITION is generally considerd on the following basis:

OPENING + ADDITION – DELETIONS = CLOSING

ATTRITION % = (DELETIONS / (OPENING + ADDITION)*100

However, if you want to be little more detailed, you could consider the following elements:

Attrition or Employee Turnover is the exit of individuals from the Organisation. Broadly 4 types of exit can be considered:

FUNCTIONAL TURNOVER – This is the exit in which poor performers leave (Can also be called Forced Attrition)

DYSFUNCTIONAL TURNOVER – This is the turnover in which good performers leave (This is the regular form of attrition)

AVOIDABLE TURNOVER – This is a situation where the exit could have been avoided (Situations arising due to say a poor handling of a situation by a boss that makes a person leave even though he / she may not have planned).

UNAVOIDABLE TURNOVER - This is a situation where the turnover cannot be avoided (for example - death while at work, illness at work, transfer of spouse to a new location etc)

Thus from above, it can be seen, there are three areas where we do not have a control but one where we decide. Thus, in my opinion, to arrive at the real attrition, we should remove the exits arising out of the Functional, Avoidable and Unavoidable turnover and consider only the Dysfuctional Turnover.

This would give a more realistic attrition calculation.

S Venkateshwaran

Hi,

Please see the calculation below and its accuracy:

Calculation:
- Opening: 50
- Closing: 32
- People attrited: 18
- Average Headcount for August: 41
- Attrition % (People attrited / Avg HC): 44%

Dear Team HR 2010,

The attrition rate for the month of August is 36%. It should be calculated monthly to minimize the attrition rate.

Thanks and Regards,
Narendar Paleti

Hi,

How did you calculate the Average Head Count? Is this calculation in line with industry practices?

Regards,
Team HR