Understanding Attrition: Should Early Leavers Impact Your Turnover Analysis?

To calculate the attrition rate, you need to consider the number of employees who have left the company during a specific period divided by the average number of employees during that same period. It is important to note whether an employee is leaving within the first month of joining as this may impact how you analyze attrition. In some cases, employees who leave within the first month may not be counted in the attrition analysis to provide a more accurate reflection of turnover within the organization.

Attrition is calculated on a monthly basis and annualized (Year to date).

Monthly attrition = Total exits / Average Headcount * 100

And yes, if the employee leaves in the first month of joining, they will be included in the calculation of exits for that month.

Hope this helps! :)

Thank you for your reply. It does help. I was including this in the attrition analysis, but I have heard that many organizations are considering it a misfit to the organizational culture or a hiring mistake and not counting it. Your thoughts, please.

I advise you to include all who left, either voluntarily or involuntarily. If too many new staff are leaving for whatever reasons, it shows that your recruiters need to be trained.

That is only a monthly way of calculating attrition. Attrition should always be annualized and counted based on average headcount (closing headcount of the previous month + opening headcount of the current month).

Early exits can be classified as 'infant attrition'. Actual duration can vary - from 1 month to 2 years.

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