Is This Monthly Attrition Formula Correct? Seeking Clarity on Calculating Attrition Rates

How do we calculate the rate of attrition for a month and also the rate of attrition for a year? I came across a formula for the calculation of the rate of monthly attrition which says:

Monthly attrition rate = {No. of separations for the month / (Opening headcount for the month + Closing headcount for the month) / 2} * 12 * 100.

I need to know whether this formula is correct or not. If it is, please explain it. If it is not, please provide the appropriate formula.

Hi Neha,

The attrition rate can be calculated using the formula: Attrition Rate = Number of resigned employees in that month / Available manpower * 100.

For example, if on any starting day of the previous month the manpower was 80, and during that month, 5 employees resigned and 10 new employees joined, then on the last day of the month, the manpower would be 80 - 5 + 10 = 85.

Therefore, the attrition rate would be calculated as 5 / 85 * 100. I hope this clarifies the query.

Regards,
Amit Seth.

Multiply by 100 means we are converting it into a percentage.

For example, suppose 8 employees left, and the total staff is 80 in a month. The attrition rate is calculated as (8/80)*100 = 10%.

Hemant Agarwal

Thanks a lot, this is good.

Attrition rate has to be calculated only for the year or has to be annualized; The formula is = (No. of employees left during the year) / ((Opening Balance) + (addition during the year)) * 100. Assume the number of employees at the beginning of the year: 100. Added during the year: 300. Left during the year: 200.

Therefore, the calculation would be: (200) / (100 + 300) * 100 = 200 / 400 * 100 = 50%.