Confused About Attrition Rate Formulas? Help Me Choose the Right One!

Dear Members,

I am confused between 2 formulas to calculate attrition rate. The formulas are as follows:

1. Attrition rate % = (Number of people moved out of the organization during the period / Total number of people in the organization during the period) * 100
2. Attrition rate % = ((number of attritions x 100) / (Actual Employees + New Joinees)) / 100

Can anyone tell me which is the correct formula?

Thank you & regards,
Madhuri

Hi Madhuri,

The formula for calculating attrition rate is as follows:
Attrition rate = Number of employees resigned / Available manpower * 100.

Regards,
Amit Seth.

Hi Everybody,

I am newly joined in this group. Studying 2nd year Textile Management in Coimbatore, chosen Elective as HR. Please share information in HR relevant to the Textile/Garment industry.

Thank you

Hi mprabhulkar,

Maximum organizations, especially in IT/ITES, use the following attrition formula worldwide:

Attrition %age = No of Attrites / (Average of Opening head count, Closing Head Count)

The reason for using this formula is that in organizations where movement is very frequent, including attritions, new joiners, transfers to other companies, and relocations, the average head count is taken for calculating attrition. This method provides a standard financial base.

Please let me know if you need more details.

Regards

Attrition Rate Formula

Attrition rate = (Number of employees resigned / Actual number of employees) * 100

Actual number of employees = Total number of employees at the beginning of the month plus total number of new joiners minus total number of resignations.

Attrition rate = (Number of employees resigned / Average employees during the period) * 100.