How Do You Calculate Attrition Rate? Seeking Guidance on Standard Formulas

Dear All, can anyone please guide me on how to calculate the attrition rate? What is the standard formula used for attrition analysis?

Thank you.

Hi, the standard formula is the number of remaining employees divided by the total strength, multiplied by 100, which will give you the attrition percentage.

Please find attached the format for calculating the attrition rate.

Regards,
Rajendra Bhavsar
Manager (P&A)
Afcons Infrastructure Ltd.
CMRL Project, Chennai
[Phone Number Removed For Privacy Reasons]

Hi, based on my knowledge, the attrition formula should be: Number of employees who left divided by the average number of employees, multiplied by 100.

Regards

Hello All,

For attrition rate, the formula is the number of employees who left divided by the average of the total employees at the start of the month and the total number of employees at the end of the month, multiplied by 100. For employee turnover, it is the number of employees who left divided by the total number of employees at the end of the month, multiplied by 100 (in case we calculate it on a monthly basis).

Thanks

The attrition formula is A/(B+C-A)*100.

Attrition Formula Explanation

Where:
- A = Number of employees who left in the month
- B = Number of employees on the 1st day of the month
- C = Number of newly joined employees during the month

The formula is: Number of employees who left in the month / (Number of employees on the 1st day of the month + additions during the month - employees who left) * 100.

Yearly Calculation

For yearly calculation: Number of employees who left during the year / (Number of employees on the 1st of January + additions during the year up to 31st December - employees who left during the year) * 100.

Regards

Dear Members, can you please guide me on whether we should consider the employees present for the month or the actual number of positions when calculating the attrition each month?

Example Scenario

For example, if a department has 10 positions, should the opening balance be 10 for every month, or should the closing balance of the previous month be the opening balance of the next month?

Regards,
K. Lakshme Devi

You can use the attached document to calculate attrition for the desired period.

Formula for Calculating Attrition

Formula: Relieved members / Average(Opening headcount & Closing headcount)

Thanks

You can do it in two ways. In my view, attrition is of two types: monthly attrition and annual attrition. However, you will always be more interested in annual attrition. For that, you may annualize each month's actual attrition to reach the average attrition at the end of the year. This will give you the correct picture throughout the year, and you can keep an eye on the end figure of annual attrition. It's just like the run rate per over in cricket, so that at the end of 50 overs, you know what your total score will be.

Formula for Annualized Attrition

One formula we may use is:

(Total employees resigned / average headcount) * (12 / number of months you have completed in that financial year) * 100

To explain, suppose after the end of 4 months, the total number of resignations is 200. The total headcount in these 4 months is 3000, 3050, 3075, 3065. So, the annualized attrition will be (200 / 3047) * (12 / 4) * 100 = 19%.

That means your attrition after 4 months is 19%, and after 12 months will be 19%. Next month, you can check considering 5 months and see if it has increased or decreased.

You can do it in two ways. In my view, attrition is of two types: monthly attrition and annual attrition. However, you will always be more interested in annual attrition. To calculate this, you may annualize each month's actual attrition to determine the average attrition at the end of the year. This will give you the correct picture, and throughout the year, you can monitor the end figure of annual attrition. It's similar to the run rate per over in cricket, where you calculate your total score at the end of 50 overs.

Formula for Annualized Attrition

One formula we can use is:

(Total employees resigned / average headcount) * (12 / number of months completed in the financial year) * 100

To explain, suppose after the end of 4 months, the total number of resignations is 200. The total headcount in these 4 months is 3000, 3050, 3075, 3065. The annualized attrition will be (200 / 3047) * (12 / 4) * 100 = 19%.

This means your attrition after 4 months is 19%, and after 12 months, it will be 19%. Next month, you can check by considering 5 months to see if it has increased or decreased.

Different Approaches to Calculating Annualized Attrition

There are different ways to calculate annualized attrition from different schools of thought. Attrition is always calculated on an annual basis since we budget annually for the targeted numbers and the monetary loss incurred when someone leaves (recruitment costs, training costs, loss to the vertical due to productivity loss, etc.). There is also another analysis for measuring early attrition or assessing wrong hires.

Please find attached the month-on-month and annualized attrition tracker that you can use.

Regards,
Muddassir
Manager HR - Employee Engagement

Hi, the attached attrition calculation will not be helpful to work out an exact report. For example, if the Open Head Count is 100, attrition is 50, and new joiners are 0, then the attrition rate will be 50% for the particular month. However, in your attachment, it is incorrectly calculated.