hi, if anybody knows about attrition calculation please inform me. monthwise quarterly annual kindly help me in this regard, vaitheeswaran
From India, Bangalore
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6From India, Bangalore
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Hi Vaitheeswaran,
Please find the calculation sheet attached herewith. This is annualized attrition. Companies worldwide use this formula. It could be of use to you. If you need any more details on this, please feel free to contact me.
Regards, G. Ganesh
From India, Madras
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Please find the calculation sheet attached herewith. This is annualized attrition. Companies worldwide use this formula. It could be of use to you. If you need any more details on this, please feel free to contact me.
Regards, G. Ganesh
From India, Madras
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Dear All,
This calculation sheet that I have posted is based on Annualized attrition. The use of annualized attrition is more like a FORECAST tool to predict attrition over a period of 12 months. This percentage will definitely be higher than our normal calculation.
The normal calculation we use involves taking the number of resignations in a particular month and dividing it by the total number of employees, converting it into a percentage. However, this method is not considered the right way to calculate attrition because in some months, the workforce might be larger, while in others, attrition could be higher due to external reasons, etc.
Here are more details on Annualized attrition calculation:
1. Enter the number of resignations and new joiners in a particular month.
2. Enter the number of employees at the beginning of a month.
3. The closing balance of the month is calculated by adding the opening balance with the new joiners less the resignations.
4. The monthly attrition proportionate to a 12-month basis is calculated by multiplying 12 by the number of resignations in a month. This will give a projected number of how many people will leave if this situation continues (i.e., 8 people leaving in a month).
5. The average number of employees is calculated by adding the opening balance and the closing balance of the month, then dividing it by 2.
6. Annualized attrition is calculated by dividing the projected number of resignations by the average number of employees.
7. The most important factor is the total - "which should not go wrong."
8. The sum of the annualized attrition rate mentioned against each month should be divided by the number of months it is being calculated for. For example, if you are calculating the attrition rate as of closing March 2007 from January 2007, then the total of the annualized % of attrition rate should be divided by 3; if it is for April, then by 4, and so on.
For further clarifications, please feel free to email me.
Regards,
G. GANESH
From India, Madras
Acknowledge(0)Amend(0)
This calculation sheet that I have posted is based on Annualized attrition. The use of annualized attrition is more like a FORECAST tool to predict attrition over a period of 12 months. This percentage will definitely be higher than our normal calculation.
The normal calculation we use involves taking the number of resignations in a particular month and dividing it by the total number of employees, converting it into a percentage. However, this method is not considered the right way to calculate attrition because in some months, the workforce might be larger, while in others, attrition could be higher due to external reasons, etc.
Here are more details on Annualized attrition calculation:
1. Enter the number of resignations and new joiners in a particular month.
2. Enter the number of employees at the beginning of a month.
3. The closing balance of the month is calculated by adding the opening balance with the new joiners less the resignations.
4. The monthly attrition proportionate to a 12-month basis is calculated by multiplying 12 by the number of resignations in a month. This will give a projected number of how many people will leave if this situation continues (i.e., 8 people leaving in a month).
5. The average number of employees is calculated by adding the opening balance and the closing balance of the month, then dividing it by 2.
6. Annualized attrition is calculated by dividing the projected number of resignations by the average number of employees.
7. The most important factor is the total - "which should not go wrong."
8. The sum of the annualized attrition rate mentioned against each month should be divided by the number of months it is being calculated for. For example, if you are calculating the attrition rate as of closing March 2007 from January 2007, then the total of the annualized % of attrition rate should be divided by 3; if it is for April, then by 4, and so on.
For further clarifications, please feel free to email me.
Regards,
G. GANESH
From India, Madras
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SAMPLE Employee Attrition Calculation sheet for FY 09-10 .xls
Calculation of Attrition Rate.doc