Dear All, What is the formula for calculating Attrition Report. Regards, Sree
From India, Bangalore
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From India, Bangalore
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Formula for attrition is supported here by giving a suitable example:
Number of Head Counts in a month start: 100
Number of additions in a month: 50
Attrition: 20
Closing Head Counts at the end of the month: 100 + 50 - 20 = 130
Formula for calculation of attrition is: 20 * 100 / 130 = 15.38%
Regards,
Moina
From India, Mumbai
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Number of Head Counts in a month start: 100
Number of additions in a month: 50
Attrition: 20
Closing Head Counts at the end of the month: 100 + 50 - 20 = 130
Formula for calculation of attrition is: 20 * 100 / 130 = 15.38%
Regards,
Moina
From India, Mumbai
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Attrition in an organization means the number of resignations in a particular month or year, or it refers to the number of employees who leave an organization.
Formula for attrition:
Number of people leaving the organization during the period X 100 average headcount or Attrition % = (No. of separations/Total employees) * 100
From India, Madras
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1Formula for attrition:
Number of people leaving the organization during the period X 100 average headcount or Attrition % = (No. of separations/Total employees) * 100
From India, Madras
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Dear Sree, Formula of Attrition is as under: Total manpower During Month/Total manpower at the end of the month*100 Rgds
From India, Mumbai
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From India, Mumbai
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Let's understand why we need to calculate Attrition %:
Attrition % is a measure of lost productivity due to attrition, i.e., employees leaving the organization. Therefore, Attrition % = Number of Employees Left / (Average Employee HC for that period). Average Employee HC = (Opening HC + Closing HC) / 2.
From India, Mumbai
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Attrition % is a measure of lost productivity due to attrition, i.e., employees leaving the organization. Therefore, Attrition % = Number of Employees Left / (Average Employee HC for that period). Average Employee HC = (Opening HC + Closing HC) / 2.
From India, Mumbai
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Hi Sree & Friends, pls find attachment as required by Sree. Thanks, LawrenceK 9789063375
From India, Madras
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From India, Madras
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I would still recommend using Avarage HC as the dinominator in the attrition equation as it is a more accurate measure of the average productivity available through the month.
From India, Mumbai
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From India, Mumbai
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Hi Lawrence, I'm Richa. I guess the Excel sheet that you have attached with your post does not have the correct calculations as it does not consider the correct closing headcount, i.e., it does not account for the new employees who join. Therefore, the closing headcount figure is incorrect, leading to an inaccurate attrition rate calculation.
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Calculation of Attrition Rate
The logical approach for calculating attrition.
Remarks: Typically, this method is more oriented towards the HR aspect. Recruiters do not necessarily use this method, although it is a good indicator. Additionally, this method does not provide the attrition numbers specifically from the recruitment viewpoint.
Opening Balance: OB
Resignations: R
New Joinings: NJ
ATTRITION % = [(R) / (OB + NJ)] * 100
Now, for example:
Opening Balance: 197
Resignations: 22
New Joinings: 36
ATTRITION % = [(22) / (197 + 36)] * 100 = [22 / 233] * 100 = 9.44%
To check the formula, in the above example, the opening balance is 197 and new joinings are 36. Hence, the total onboard strength is 197 + 36 = 233. If the attrition rate is at 9.44%, then 9.44% of 233 (which is the onboard strength) should give us the number of resignees, which is 233 * 9.44% = 22. In our example, we also took 22 resignations, proving that the formula is accurate.
Remarks: Internationally, this is a fairly acceptable formula. However, in my view, it fails to account for negative attrition.
Rameswar Prasad
HR
From India, Pune
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The logical approach for calculating attrition.
Remarks: Typically, this method is more oriented towards the HR aspect. Recruiters do not necessarily use this method, although it is a good indicator. Additionally, this method does not provide the attrition numbers specifically from the recruitment viewpoint.
Opening Balance: OB
Resignations: R
New Joinings: NJ
ATTRITION % = [(R) / (OB + NJ)] * 100
Now, for example:
Opening Balance: 197
Resignations: 22
New Joinings: 36
ATTRITION % = [(22) / (197 + 36)] * 100 = [22 / 233] * 100 = 9.44%
To check the formula, in the above example, the opening balance is 197 and new joinings are 36. Hence, the total onboard strength is 197 + 36 = 233. If the attrition rate is at 9.44%, then 9.44% of 233 (which is the onboard strength) should give us the number of resignees, which is 233 * 9.44% = 22. In our example, we also took 22 resignations, proving that the formula is accurate.
Remarks: Internationally, this is a fairly acceptable formula. However, in my view, it fails to account for negative attrition.
Rameswar Prasad
HR
From India, Pune
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SAMPLE Employee Attrition Calculation sheet for FY 09-10 .xls
Calculation of Attrition Rate.doc