Dear Mr Paras,
Welcome!
The question posted by you is not only highly relevant but most critical too in the scenario pervading in the industry these days. The attrition rate has been explained by our few members above. The formula is clear. The number of employees leaving in a month divided by total number of employees in that month multiply by 100 gives the percentage rate of attrition. The increase in labour turnover or employees turnover may be sometimes a cause of worry to the management because it points to the high rate of attrition. This may be situation for the management to review its work culture, working atmosphere and the conditions of service offered to the employees. The management must think to contain the rate of attrition or otherwise its targets would not be achieved and the ultimate results may be disappointing in terms of profit and goodwill. So use the calculations of attrition rate and labour turnover to analyse the causes and address them to maintain efficiency and remove skill deficit.
With good wishes.
C.M. Lal Srivastava