Understanding Attrition Calculation Formulas
Can anybody tell me what's the logic behind the attrition calculation formula in the attached file? As per my understanding, the simple calculation for attrition is:
\[ \text{Attrition Rate} = \left(\frac{\text{Left Employees}}{\text{Opening Balance} + \text{New Joiners}}\right) \times 100 \]
However, I found another formula for the attrition rate calculation in that file. Please tell me which is correct and why.
Regards,
JC
From India, Bangalore
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Can anybody tell me what's the logic behind the attrition calculation formula in the attached file? As per my understanding, the simple calculation for attrition is:
\[ \text{Attrition Rate} = \left(\frac{\text{Left Employees}}{\text{Opening Balance} + \text{New Joiners}}\right) \times 100 \]
However, I found another formula for the attrition rate calculation in that file. Please tell me which is correct and why.
Regards,
JC
From India, Bangalore
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The formulla of attrition is given in the attached file is not correct, It should be No. left employees/Opening balance+new joinee*100. Regards Vinod Yadav
From India, Delhi
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From India, Delhi
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Yes Krishna you are right opening balance is present employees or closing balance of last month.
From India, Bangalore
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From India, Bangalore
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Hi, As per my observation, In the attached format, the calculation not correct only for january month. For Feb, Mar, & April, the caculation is correct.. Regards, Starlet
From India, Madras
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2From India, Madras
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Closing balance of a particular month= (Opening no. of employees of the month + No. of new joinees during the month)- No. of left employees during the month.
From India, Delhi
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From India, Delhi
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Attrition Rate Calculation Formula
1. The formula to calculate the monthly attrition rate is: Total number of resigned employees / (Opening Balance + New Joinees) * 100. You can also use it without multiplying by "100" by expressing it in percentage (%).
2. Understanding Opening Balance
Opening balance refers to the total number of active employees' headcount at the beginning of the first day of a month.
3. Understanding Closing Balance
Closing Balance is defined as the total number of active employees' headcount at the end of the month on the closure date or the last day of the month.
4. Please find the attached CTC structure, which may be helpful for you to calculate both monthly and annual CTC.
Regards,
Sunil Kumar Verma
AM-HR
Indiabulls
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1. The formula to calculate the monthly attrition rate is: Total number of resigned employees / (Opening Balance + New Joinees) * 100. You can also use it without multiplying by "100" by expressing it in percentage (%).
2. Understanding Opening Balance
Opening balance refers to the total number of active employees' headcount at the beginning of the first day of a month.
3. Understanding Closing Balance
Closing Balance is defined as the total number of active employees' headcount at the end of the month on the closure date or the last day of the month.
4. Please find the attached CTC structure, which may be helpful for you to calculate both monthly and annual CTC.
Regards,
Sunil Kumar Verma
AM-HR
Indiabulls
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Hi seniors formula of january month is wrong, but other’s months expected jan is correct,
From India, Dehra Dun
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From India, Dehra Dun
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I believe the following formula is correct to calculate attrition:
Attrition Rate Formula
\[ \text{Attrition Rate} = \left( \frac{\text{Number of Employees Left}}{(\text{Opening Balance} + \text{Closing Balance}) / 2} \right) \times 100 \]
You have to find out the average number of employees during the month. For better clarity, I have attached the attrition register and calculator.
Regards,
Aliabbas
[Email Removed For Privacy Reasons]
From India, Hyderabad
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Attrition Rate Formula
\[ \text{Attrition Rate} = \left( \frac{\text{Number of Employees Left}}{(\text{Opening Balance} + \text{Closing Balance}) / 2} \right) \times 100 \]
You have to find out the average number of employees during the month. For better clarity, I have attached the attrition register and calculator.
Regards,
Aliabbas
[Email Removed For Privacy Reasons]
From India, Hyderabad
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Hi Startlet, even in the rest of the rows, the formula is incorrect. The monthly attrition rate is calculated as: No. of employees left in the current month / ((No. of employees at the start of the month + No. of employees at the end of the month) / 2).
Regards,
Satpreet Kaur
From India
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Regards,
Satpreet Kaur
From India
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Hi Satpreet, According to my organiztion procedure, we are calculating attrition by using the formula (No. Of Deletions/ Total No. of employees)*100 Regards, Starlet
From India, Madras
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From India, Madras
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Dear Satpreet, Total no. of employees for the month is the no. of employees who comes in payroll for the month after considering addition and deletion. Regards, Starlet
From India, Madras
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From India, Madras
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Hi Startlet, This is what I had written. Please don’t get confused. The concept is same though we have used different terminologies. Regards, Satpreet Kaur
From India
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From India
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I regret to say that I didn't get you. For example, consider the number of employees at the beginning of the month = 210. Addition = 20. Deletion = 10. So, the number of employees at the end of the month will be 210 + 20 - 10 = 220. As per your calculation, the total number of employees will be (210 + 220) / 2 = 215. But as per our calculation, it will be 220, which we will take for payroll.
Regards,
Starlet
From India, Madras
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Regards,
Starlet
From India, Madras
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I have further cross-checked and found that there is a difference in our formulas. The reason is we are calculating the attrition rate based on the average number of employees in a month, whereas you are considering the employees who come on the payroll for the specific month.
There has already been a lot of discussion on this site regarding attrition calculation, and as per my information and understanding, attrition is calculated on the basis of average employees. However, I am still open to suggestions. Therefore, I would request the seniors to shed some more light on the monthly attrition rate.
Attrition Rate Calculation Example
To make it clearer, I have calculated the attrition rate based on your example:
• No. of deletions/Total number of employees * 100: 10/220 * 100 = 4.54%
• (Number of EEs left in the current month / (EEs at the start of the month + EEs at the end of the month) / 2) * 100: 4.65%
Therefore, there is a deviation of 0.11%.
Regards,
Satpreet Kaur
From India
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There has already been a lot of discussion on this site regarding attrition calculation, and as per my information and understanding, attrition is calculated on the basis of average employees. However, I am still open to suggestions. Therefore, I would request the seniors to shed some more light on the monthly attrition rate.
Attrition Rate Calculation Example
To make it clearer, I have calculated the attrition rate based on your example:
• No. of deletions/Total number of employees * 100: 10/220 * 100 = 4.54%
• (Number of EEs left in the current month / (EEs at the start of the month + EEs at the end of the month) / 2) * 100: 4.65%
Therefore, there is a deviation of 0.11%.
Regards,
Satpreet Kaur
From India
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I am also sharing the link regarding the discussion on attrition rate on CiteHR. You may like to read: https://www.citehr.com/254173-need-f...tion-rate.html.
Regards,
Satpreet Kaur
From India
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Regards,
Satpreet Kaur
From India
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HI, Below is the formula to get attrition %. No. of people left / Average (Opening balance, closing balance). Regards, HR.
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The information and the attachment are really great, but I would like to know how to control forced and unforced attrition in the aspects of Operations and training. Any input or information on this would be greatly appreciated.
Regards,
Anantha Ramakrishna
[Phone Number Removed For Privacy Reasons]
From United States, Cambridge
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Regards,
Anantha Ramakrishna
[Phone Number Removed For Privacy Reasons]
From United States, Cambridge
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SAMPLE Employee Attrition Calculation sheet for FY 09-10 .xls
Calculation of Attrition Rate.doc