Dear seniors, kindly help me to know what is attrition rate and how it is calculated.i will be thankful if you explain it with an example.... regards paras thakur
From United States, Ashburn
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2From United States, Ashburn
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Thank you sir but i am having another query that is what is the difference between labour turnover and attrition rate..kindly please revert me with an example....... Regards paras thakur
From United States, Ashburn
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From United States, Ashburn
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Understanding Labor Turnover and Attrition Rates
As I understand it, labor turnover is the rate of labor joining and leaving in a particular period, let's say one year. For example, if during 2012, 25 laborers leave and 30 join in a strength of 400 laborers on 1-1-2012, then \([(25+30) / 400] \times 100\) is the labor turnover rate.
On the other hand, the attrition rate is the rate of employees leaving only, i.e., \((25/400) \times 100\).
Regards,
Vibhakar Ramtirthkar.
From India, Pune
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As I understand it, labor turnover is the rate of labor joining and leaving in a particular period, let's say one year. For example, if during 2012, 25 laborers leave and 30 join in a strength of 400 laborers on 1-1-2012, then \([(25+30) / 400] \times 100\) is the labor turnover rate.
On the other hand, the attrition rate is the rate of employees leaving only, i.e., \((25/400) \times 100\).
Regards,
Vibhakar Ramtirthkar.
From India, Pune
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Dear Mr. Paras,
The question you posted is not only highly relevant but also critical in the current industry scenario. The attrition rate has been explained by some of our members above. The formula is clear: the number of employees leaving in a month divided by the total number of employees in that month, multiplied by 100, gives the attrition percentage.
An increase in labor turnover or employee turnover may sometimes cause concern for management as it indicates a high attrition rate. This situation may prompt management to review the work culture, working atmosphere, and conditions of service offered to employees. Management must consider ways to contain the attrition rate; otherwise, achieving targets may prove challenging, leading to disappointing results in terms of profit and goodwill.
Utilize attrition rate and labor turnover calculations to analyze the causes and address them to maintain efficiency and address any skill deficits.
Best wishes,
C.M. Lal Srivastava
From India, New Delhi
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The question you posted is not only highly relevant but also critical in the current industry scenario. The attrition rate has been explained by some of our members above. The formula is clear: the number of employees leaving in a month divided by the total number of employees in that month, multiplied by 100, gives the attrition percentage.
An increase in labor turnover or employee turnover may sometimes cause concern for management as it indicates a high attrition rate. This situation may prompt management to review the work culture, working atmosphere, and conditions of service offered to employees. Management must consider ways to contain the attrition rate; otherwise, achieving targets may prove challenging, leading to disappointing results in terms of profit and goodwill.
Utilize attrition rate and labor turnover calculations to analyze the causes and address them to maintain efficiency and address any skill deficits.
Best wishes,
C.M. Lal Srivastava
From India, New Delhi
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Truly speaking, this is a performance indicator as far as HR is concerned. Of course, these figures can wreak havoc in some companies where attrition rates are high. The sad reality is that many companies do not pay attention to these figures as long as they can hire candidates, even freshers from colleges, to fill the positions. Attached, you will find some materials for your studies.
Regards,
Kumar S.
From India, Bangalore
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Regards,
Kumar S.
From India, Bangalore
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The general way to calculate attrition is to use the average strength of the month. This is determined by adding the opening and closing strength of the month and dividing the sum by two. That number would be the denominator, and the number of employees who left during the month will be the numerator. Accordingly, the percentage will have to be calculated.
From India, Chennai
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From India, Chennai
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Dear seniors, I am really thankful to all of you for suggesting to me regarding the attrition rate. This will definitely help me during my professional career. I just need one more help from all of you. Actually, I am looking for a job in HR, so if there is any vacancy, I request you to inform me.
Regards,
Paras Thakur
[Phone Number Removed For Privacy Reasons] (Nagpur)
From United States, Ashburn
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Regards,
Paras Thakur
[Phone Number Removed For Privacy Reasons] (Nagpur)
From United States, Ashburn
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
Attrition-rate. xls
Future of HR Metrics.ppt
Hr metrics.doc