How To Calculate ATTRITION RATE ?

Hi!!
Can you let me know how to calculate attrition rate?
I came to know one method. Is it right? or do you have any other simple method to calculate?
Total Number of Resigns per month.
divided by
(Total Number of employees at the beginning of the month plus total number of new joinees minus total number of resignations)
multiplied by 100.
Waiting for the reply.
Regards,
Priya

Attrition Rate for the month be calculated as below:
No. of resigned employees of that month/ Available manpower * 100
Example,
Starting day of previous month the manpower was 100 and during that month 10 resigned and 20 joined. the last day of the month Manpower would have been 100-10+20 = 110
So Attrition rate = 10/100*100 = 10%

ATTRITION RATE

(The formula and correct logic behind calculation of ATTRITION RATE)

((no. Of attritions x 100) / (Actual Employees + New Joined)) /100.

Examples:

1) Actual Employees No. Of people left No. Of Joined Total Employees

(Opening BAL) (Attritions) (Current Headcount)

150 20 25 155

So according to the formula: ((20 x 100) / (150 + 25)) / 100

Which comes to 0.1142 i.e. 11%

Now as you had 150 previously and now 25 joined so it makes 150 + 25 =175

Now if you calculate 11.42% of 175 i.e. 175 x 0.1142 = 20

Which clearly shows that 175 – 20 = 155, which is your current headcount and at the same time you can say my attrition is 11.42% that shows you lost 20 employees of 150 and 25 more joined which makes count to 175.

2) Actual Employees No. Of people left No. Of Joined Total Employees

(Opening BAL) (Attritions) (Current Headcount)

100 50 0 50

This is the special case where we are considering attritions only keeping into mind that nobody has joined in particular month.

So according to the formula: ((50 x 100) / (100)) / 100

Which comes to 0.5 i.e. 50%

Now as you had 100 previously and now 0 joined so it makes 100 + 0 =100

Now if you calculate 50% of 100 i.e. 100 x 0.5 = 50

Which clearly shows that 100 – 50 = 50, which is your current headcount and at the same time you can say my attrition is 50% that shows you lost 50 employees of 100 and 0 joined which makes count to 50.

3) Actual Employees No. Of people left No. Of Joined Total Employees

(Opening BAL) (Attritions) (Current Headcount)

500 200 100 400

So according to the formula: ((200 x 100) / (500 +100)) / 100

Which comes to 0.3333 i.e. 33.33%

Now as you had 500 previously and now 100 joined so it makes 500 + 100 =600

Now if you calculate 33.33% of 600 i.e. 600 x 0.3333 = 200

Which clearly shows that 600 – 200 = 400, which is your current headcount and at the same time you can say my attrition is 33.33% that shows you lost 200 employees of 500 and 100 more joined which makes count to 400.

4) Actual Employees No. Of people left No. Of Joined Total Employees

(Opening BAL) (Attritions) (Current Headcount)

8000 5000 500 3500

So according to the formula: ((5000 x 100) / (8000 +500)) / 100

Which comes to 0.5882 i.e. 58.82%

Now as you had 8000 previously and now 500 joined so it makes 8000 + 500 =8500

Now if you calculate 58.82% of 8500 i.e. 8500 x 0.5882 = 5000

Which clearly shows that 8500 – 5000 = 3500, which is your current headcount and at the same time you can say my attrition is 58.82% that shows you lost 5000 employees of 8000 and 500 more joined which makes count to 3500.

Priya, you please go through the info posted Kiran below, she is quite right about the calculation of attrition rate. But HR professionals must have to know, what kind of attrition is harmfull to the Company? Bcoz there are alot factors which we must to be consider whenever we discuss attrition.
Thank you.
m.asif.comboh
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The Simple way to calculate the attrition rate is
(Separation/Actual number of employees for the month + Addition of employees for the month)*100
Eg: 5000,8000,500
(5000/8500)*100 = 58.82%

Dear Sir,
Please let me know how to calculate attrition in Excel 2007
Aug Mont our employee closing Balance 368
Joineed - 22
Resigned - 16
what would be the attrition rate in % .

Closing Balance + Regioned
368+16=384
Attrition Rate= 16/384*100 = 4.166667%
Check 384*4.166667% = 16