Hi Seniors,
Can you please provide the formula to calculate the average annual attrition rate? I have searched on CiteHR but could only find the annual attrition rate, which differs from the one we are using.
Below is the formula that we are using to calculate the Annual Attrition Rate:
Annual Attrition Rate: (Employees left in the Current Month * (12/No. of Months)) / ((Current employee strength + Employees at the start of the month) / 2)
Regards,
Satpreet Kaur
From India
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36Can you please provide the formula to calculate the average annual attrition rate? I have searched on CiteHR but could only find the annual attrition rate, which differs from the one we are using.
Below is the formula that we are using to calculate the Annual Attrition Rate:
Annual Attrition Rate: (Employees left in the Current Month * (12/No. of Months)) / ((Current employee strength + Employees at the start of the month) / 2)
Regards,
Satpreet Kaur
From India
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Hello Satpreet, You would want to try - Monthly attrition*12/Average manpower for the month Regards, Tara
From India, Sirsa
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From India, Sirsa
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Hi Tara,
Thanks for your response, but again, the formula you have mentioned above is to calculate the average monthly attrition. Can you please help me with the average annual attrition rate.
Hi Seniors,
67 views but still I have not been able to get the answer for my query. Can anybody please help me?
Regards,
Satpreet Kaur
From India
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Thanks for your response, but again, the formula you have mentioned above is to calculate the average monthly attrition. Can you please help me with the average annual attrition rate.
Hi Seniors,
67 views but still I have not been able to get the answer for my query. Can anybody please help me?
Regards,
Satpreet Kaur
From India
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Good Evening,
I believe that this is what you want: Labor Turnover/Attrition = Avg no. of employees left during the period / Total no. of employees during the year * 100. Annual turnover is computed by adding up the monthly turnover for a 12-month period. Monthly turnover is first calculated as the number of employee separations during one month divided by the average number of active employees during the same period.
Monthly Turnover Rate = Number of separations during the month / Average number of employees during the month * 100.
Mahesh Das - HR
Binani Zinc
From India, Kozhikode
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I believe that this is what you want: Labor Turnover/Attrition = Avg no. of employees left during the period / Total no. of employees during the year * 100. Annual turnover is computed by adding up the monthly turnover for a 12-month period. Monthly turnover is first calculated as the number of employee separations during one month divided by the average number of active employees during the same period.
Monthly Turnover Rate = Number of separations during the month / Average number of employees during the month * 100.
Mahesh Das - HR
Binani Zinc
From India, Kozhikode
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Hi Satpreet kaur, Please find herewith attached Attrition report calculation for your information. Hope meet your requirement. Reach me for any specific queries. Regards, Karthick Eswar
From India, Dindigul
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From India, Dindigul
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Everyone has a different formula that suits them. I will try to give you the generic formula.
Let me first explain the terms. Monthly attrition rate is the rate of attrition for that month. It can be calculated as:
Number of people left during the month / Average number of people employed during the month.
The average number of people employed can be calculated by adding (opening headcount + closing headcount) / 2.
Annualized attrition is a term used to describe the projected attrition on an annual basis if the current trend continues. In this case, you multiply the above with 12 to get the "Annualised attrition." This is a projected figure only. If you are comparing this month over month, you can use the actual data from past months.
Let's consider an example where we are computing on May 31st, and the calendar starts from January. We will:
- Sum the average people employed in Jan, Feb, Mar, Apr, and May.
- Sum the people who left in Jan, Feb, Mar, Apr, and May.
- Apply the same formula, but before multiplying by 12, divide by 5 to get the annualized number.
You can obtain the actual number for the last 12 months if you have data for the past 12 months. When you have data for the last 12 months, it is called "Annual Attrition." This figure is actual and does not have any projected element. To calculate this, you do not multiply by 12 because you have the actual data for the last 12 months.
I hope you understand the difference between annualized vs. annual attrition as well.
If you still need help, you can contact me at tayals@live.com.
From India, Bangalore
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Let me first explain the terms. Monthly attrition rate is the rate of attrition for that month. It can be calculated as:
Number of people left during the month / Average number of people employed during the month.
The average number of people employed can be calculated by adding (opening headcount + closing headcount) / 2.
Annualized attrition is a term used to describe the projected attrition on an annual basis if the current trend continues. In this case, you multiply the above with 12 to get the "Annualised attrition." This is a projected figure only. If you are comparing this month over month, you can use the actual data from past months.
Let's consider an example where we are computing on May 31st, and the calendar starts from January. We will:
- Sum the average people employed in Jan, Feb, Mar, Apr, and May.
- Sum the people who left in Jan, Feb, Mar, Apr, and May.
- Apply the same formula, but before multiplying by 12, divide by 5 to get the annualized number.
You can obtain the actual number for the last 12 months if you have data for the past 12 months. When you have data for the last 12 months, it is called "Annual Attrition." This figure is actual and does not have any projected element. To calculate this, you do not multiply by 12 because you have the actual data for the last 12 months.
I hope you understand the difference between annualized vs. annual attrition as well.
If you still need help, you can contact me at tayals@live.com.
From India, Bangalore
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Karthick made a good speadsheet. I added an extra line to show the total attrition rate for the year. You can change the dates as needed for whatever 12 month total you need. Safetyforall
From United States, Grand Prairie
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From United States, Grand Prairie
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HI, wat u use is correct. (Employees left in Current Month * (12/No. of Month))/((Current employee strenghth+Employees at start of the month)/2) Thanks, Karthik
From India, Madras
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From India, Madras
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Attrition calculation is always annualized. The shared formula gives you the annualized percentage for the respective month. When instead of 12, you make it 4, it gives the annualized percentage for a quarter.
Thank you!
Regards,
Tara
From India, Sirsa
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Thank you!
Regards,
Tara
From India, Sirsa
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ATTRITION ANALYSIS or ATTRITION RATE
Attrition = ((no. of attrition/left emp. * 100) / (actual emp. + new joinee)) / 100
Formulas:
- =((F6 * 100) / (D6 + E6 + F6 + G6)) / 100 this is for the first month.
- =((F7 * 100) / (D7 + E7)) / 100 this is for the second month.
- =((F8 * 100) / (D8 + E8)) / 100 continues like this.
(The formula and correct logic behind the 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, it makes 150 + 25 = 175.
Now if you calculate 11.42% of 175, i.e., 175 x 0.1142 = 20.
This clearly shows that 175 - 20 = 155, which is your current headcount, and at the same time, you can say my attrition is 11.42%, which shows you lost 20 employees of 150 and 25 more joined, making the count 175.
From India, Visakhapatnam
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Attrition = ((no. of attrition/left emp. * 100) / (actual emp. + new joinee)) / 100
Formulas:
- =((F6 * 100) / (D6 + E6 + F6 + G6)) / 100 this is for the first month.
- =((F7 * 100) / (D7 + E7)) / 100 this is for the second month.
- =((F8 * 100) / (D8 + E8)) / 100 continues like this.
(The formula and correct logic behind the 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, it makes 150 + 25 = 175.
Now if you calculate 11.42% of 175, i.e., 175 x 0.1142 = 20.
This clearly shows that 175 - 20 = 155, which is your current headcount, and at the same time, you can say my attrition is 11.42%, which shows you lost 20 employees of 150 and 25 more joined, making the count 175.
From India, Visakhapatnam
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According to Requitment of HR ways what is Employees Attrition and its exact formula of Attrition please guide us
From India, Bangalore
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From India, Bangalore
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While calculating the attrition formula, both confirmed and probationary employees are considered. Yes, absconding employees are also considered. Attrition is calculated for all the employees who leave the organization irrespective of the reason, whether absconded or terminated, etc.
Three Formulae for Attrition Calculation
There are three formulae used for attrition calculation: Monthly Attrition Rate, Annual Attrition Rate, and Annualized Attrition Rate.
Monthly Attrition Rate
Monthly Attrition = (No. of Employees left in Current Month / Avg Headcount) * 100
{Average HC = (Employee Strength at the Start of the month + Employee Strength at the end of the month) / 2}
Annualized Attrition Rate
In the case of Annualized attrition calculation, based on the current attrition trend, the prospective annual attrition is calculated. For example, if we are calculating annualized attrition for June, then:
Annualized Attrition = (Sum of employees left in the last 6 months) * (12/N) / (Avg HC of the last 6 months)
N is the number of months; here, it is 6 since June is the 6th month of the year.
When the above formula is used at the end of the year, the rate is called Annual Attrition as it gives the actual attrition of the specific year.
attrition rate xl file
From India, Kochi
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Three Formulae for Attrition Calculation
There are three formulae used for attrition calculation: Monthly Attrition Rate, Annual Attrition Rate, and Annualized Attrition Rate.
Monthly Attrition Rate
Monthly Attrition = (No. of Employees left in Current Month / Avg Headcount) * 100
{Average HC = (Employee Strength at the Start of the month + Employee Strength at the end of the month) / 2}
Annualized Attrition Rate
In the case of Annualized attrition calculation, based on the current attrition trend, the prospective annual attrition is calculated. For example, if we are calculating annualized attrition for June, then:
Annualized Attrition = (Sum of employees left in the last 6 months) * (12/N) / (Avg HC of the last 6 months)
N is the number of months; here, it is 6 since June is the 6th month of the year.
When the above formula is used at the end of the year, the rate is called Annual Attrition as it gives the actual attrition of the specific year.
attrition rate xl file
From India, Kochi
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Employee Count Considerations for Attrition Calculation
Whether to consider the following employee count for calculating attrition:
- a) Retired
- b) Expired (whether on the job or off duty, both)
- c) Transferred to another location of the same organization
- d) Suspended for 6 months
Calculating Closing Strength
Also, to calculate the closing strength, whether to consider the following employee count:
- a) Transferred from another location of the same organization (not recruited in the considered location)
- b) Rehired on contractual terms after retirement
Regards,
Varun Shreshth
From India, New Delhi
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Whether to consider the following employee count for calculating attrition:
- a) Retired
- b) Expired (whether on the job or off duty, both)
- c) Transferred to another location of the same organization
- d) Suspended for 6 months
Calculating Closing Strength
Also, to calculate the closing strength, whether to consider the following employee count:
- a) Transferred from another location of the same organization (not recruited in the considered location)
- b) Rehired on contractual terms after retirement
Regards,
Varun Shreshth
From India, New Delhi
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Hi, Mr. Dileep,
Thank you very much for the useful calculation. I calculated the yearly attrition rate following your instructions. Could you please confirm whether it's correct or not?
Year Employee (Open Balance) No. Of People Left (Attritions) No. Of Joined Total Employees (Current Headcount) Attrition Rate
2013 109 32 15 92 25.81
2014 95 29 48 114 20.28
2015 111 26 27 112 18.84
Regards,
Himanshu Vyas
From India , Ujjain
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Thank you very much for the useful calculation. I calculated the yearly attrition rate following your instructions. Could you please confirm whether it's correct or not?
Year Employee (Open Balance) No. Of People Left (Attritions) No. Of Joined Total Employees (Current Headcount) Attrition Rate
2013 109 32 15 92 25.81
2014 95 29 48 114 20.28
2015 111 26 27 112 18.84
Regards,
Himanshu Vyas
From India , Ujjain
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I have a question about the example provided. When the formula is: Attrition = ((no. of attrition/left emp. * 100) / (actual emp. + new joinee)) / 100 in the given Excel sheet, we are using the following formula: =((F6 * 100) / (D6 + E6 + F6 + G6)) / 100 for the first month. However, the sum of D6 + E6 and F6 + G6 is the same, which is 175 in this case. Therefore, adding it twice in the denominator actually reduces the attrition percentage by half (50%), making it 5.71% instead of 11.43%. From the next month onwards, the calculation is correct as we only consider D7 + E7.
Could you please review this or provide clarification?
Thank you.
From India, Bangalore
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Could you please review this or provide clarification?
Thank you.
From India, Bangalore
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Calculate the Monthly Attrition Rate
To calculate the attrition rate for any given month, you need to know the total number of employees at the beginning of the month. Then, you need to know the number of new employees added that month. Finally, determine the number of employees who left. The number of employees who left is the number of attrition.
Monthly Attrition Rate = Number of Attrition / Average Number of Employees * 100.
Suppose a telecommunications company had 150 employees as of April 1, 2016. During that month, 20 employees voluntarily left the company. Also, the company hired 25 new employees.
First, calculate the average number of employees. The beginning number was 150. If 20 people left and 25 people were hired, then the ending number was 155. The average number of employees for that month can be calculated with the equation (150 + 155) / 2 = 152.5.
Next, calculate the monthly attrition rate. In this month, 20 people left, and the average number of employees was 152.5. The monthly attrition rate can be calculated with the equation (20 / 152.5) * 100 = 0.1311 * 100 = 13.11%.
The attrition rate for April 2016 was 13.11 percent.
Calculate the Quarterly Attrition Rate
Use the same formula. However, instead of one month of data, you will look at the data for one quarter, which is three months.
Suppose the telecommunications company in the above example wants to calculate its attrition rate for the second quarter of 2016. This would be April, May, and June of 2016.
The beginning number of employees on April 1, 2016, was 150. Over the course of the quarter, 30 people left and 40 new employees were hired. Therefore, the ending number of employees on June 30, 2016, was {150 - 30 + 40 = 160}.
The average number of employees for the quarter was (150 + 160) / 2 = 155. The attrition for the second quarter of 2016 was (30 / 155) * 100 = 19.35 or 19.35 percent.
Calculate the Annual Attrition Rate
For this calculation, you need to know the total number of attrition for the year. Then, you need to calculate the weighted average of employees. Using the weighted average is more mathematically accurate since it smooths the effect of seasonal changes in the number of employees a company has throughout the year.
Suppose the telecommunications company in the above example had a total of 62 attrition for the year. They typically hire 20 percent more employees for the last quarter of the year for their busy season. So, they have an average of 155 employees for the first three quarters, and an average of 186 employees for the last quarter.
Knowing that there are four quarters in a year, you could calculate the weighted average with the formula (155 * 0.75) + (186 * 0.25) / 2 = (116.25 + 46.5) / 2 = 162.75.
You could also use the number of weeks worked. There are 52 weeks in a year. In the first three quarters, there are 39 weeks, and in the last quarter, there are 13 weeks. Use the formula ((155 * 39) / 52) + ((186 * 13) / 52) = 116.25 + 46.5 = 162.75.
Finally, you could use the number of hours worked. In a year, there are 2080 work hours. In the first three quarters, there are 1,560 hours, and in the last quarter, there are 520 hours. Use the formula ((155 * 1,560) / 2080) + ((186 * 520) / 2080) = 116.25 + 46.5 = 162.75.
The weighted average of employees for this company is 162.75. Calculate the annual attrition rate for 2016 will be (62 / 162.75) * 100 = 38.09 or 38.09 percent.
From India, Surat
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To calculate the attrition rate for any given month, you need to know the total number of employees at the beginning of the month. Then, you need to know the number of new employees added that month. Finally, determine the number of employees who left. The number of employees who left is the number of attrition.
Monthly Attrition Rate = Number of Attrition / Average Number of Employees * 100.
Suppose a telecommunications company had 150 employees as of April 1, 2016. During that month, 20 employees voluntarily left the company. Also, the company hired 25 new employees.
First, calculate the average number of employees. The beginning number was 150. If 20 people left and 25 people were hired, then the ending number was 155. The average number of employees for that month can be calculated with the equation (150 + 155) / 2 = 152.5.
Next, calculate the monthly attrition rate. In this month, 20 people left, and the average number of employees was 152.5. The monthly attrition rate can be calculated with the equation (20 / 152.5) * 100 = 0.1311 * 100 = 13.11%.
The attrition rate for April 2016 was 13.11 percent.
Calculate the Quarterly Attrition Rate
Use the same formula. However, instead of one month of data, you will look at the data for one quarter, which is three months.
Suppose the telecommunications company in the above example wants to calculate its attrition rate for the second quarter of 2016. This would be April, May, and June of 2016.
The beginning number of employees on April 1, 2016, was 150. Over the course of the quarter, 30 people left and 40 new employees were hired. Therefore, the ending number of employees on June 30, 2016, was {150 - 30 + 40 = 160}.
The average number of employees for the quarter was (150 + 160) / 2 = 155. The attrition for the second quarter of 2016 was (30 / 155) * 100 = 19.35 or 19.35 percent.
Calculate the Annual Attrition Rate
For this calculation, you need to know the total number of attrition for the year. Then, you need to calculate the weighted average of employees. Using the weighted average is more mathematically accurate since it smooths the effect of seasonal changes in the number of employees a company has throughout the year.
Suppose the telecommunications company in the above example had a total of 62 attrition for the year. They typically hire 20 percent more employees for the last quarter of the year for their busy season. So, they have an average of 155 employees for the first three quarters, and an average of 186 employees for the last quarter.
Knowing that there are four quarters in a year, you could calculate the weighted average with the formula (155 * 0.75) + (186 * 0.25) / 2 = (116.25 + 46.5) / 2 = 162.75.
You could also use the number of weeks worked. There are 52 weeks in a year. In the first three quarters, there are 39 weeks, and in the last quarter, there are 13 weeks. Use the formula ((155 * 39) / 52) + ((186 * 13) / 52) = 116.25 + 46.5 = 162.75.
Finally, you could use the number of hours worked. In a year, there are 2080 work hours. In the first three quarters, there are 1,560 hours, and in the last quarter, there are 520 hours. Use the formula ((155 * 1,560) / 2080) + ((186 * 520) / 2080) = 116.25 + 46.5 = 162.75.
The weighted average of employees for this company is 162.75. Calculate the annual attrition rate for 2016 will be (62 / 162.75) * 100 = 38.09 or 38.09 percent.
From India, Surat
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Calculation of Attrition Rate.doc
Attrition-rate. xls