Hi,
Will you please let me know the exact formula for calculating the attrition rate? I am confused because I have found more than 5 formulas from different sources.
Please help me out. I shall be highly thankful. An early reply is highly appreciated.
Regards,
Pankaj Chandan
From India, New delhi
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13Will you please let me know the exact formula for calculating the attrition rate? I am confused because I have found more than 5 formulas from different sources.
Please help me out. I shall be highly thankful. An early reply is highly appreciated.
Regards,
Pankaj Chandan
From India, New delhi
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Hi ,Pankaj plz find yearly & monthly Attrition Rate Calculation
From India, Udaipur
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From India, Udaipur
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what u really want i not getting for yearly attrition rate totel employy on apr 08 new joining till mar 09 & net left till mar 09 then it calculate automaticaly
From India, Udaipur
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From India, Udaipur
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suppose employee opening balance is = 200 new joinings = 20 left employees = 40 closing balance = 180 now how we calculate attrition rate per month??????
From India, New delhi
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From India, New delhi
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{No. of seperation for month / (Opening Head Count of the Month + Closing Head Count of the Month) / 2} *12*100
From United Arab Emirates, Dubai
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From United Arab Emirates, Dubai
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Dear Pankaj,
Hope this formula gives you a clear idea.
(The formula and correct logic behind the calculation of ATTRITION RATE):
((No. Of Attritions x 100) / (Actual Employees + New Joined)) / 100.
Example:
1) Actual Employees / No. Of people left / No. Of people Joined / Total Employees
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.
Which clearly shows that 175 - 20 = 155, which is your current headcount and at the same time you can say my attrition rate is 11.42% that shows you lost 20 employees out of 150, and 25 more joined which makes the count 175.
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Hope this formula gives you a clear idea.
(The formula and correct logic behind the calculation of ATTRITION RATE):
((No. Of Attritions x 100) / (Actual Employees + New Joined)) / 100.
Example:
1) Actual Employees / No. Of people left / No. Of people Joined / Total Employees
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.
Which clearly shows that 175 - 20 = 155, which is your current headcount and at the same time you can say my attrition rate is 11.42% that shows you lost 20 employees out of 150, and 25 more joined which makes the count 175.
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Thank you very much to Vicky and Lakshman and hearty thanks to Apanicker for clearing all doubts very nicely.
Once again, thank you very much for your prompt replies.
God bless you.
Regards
Pankaj Chandan :p
From India, New delhi
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Once again, thank you very much for your prompt replies.
God bless you.
Regards
Pankaj Chandan :p
From India, New delhi
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Dear Pankaj,
While calculating attrition, the first thing that strikes our mind is "kitney gaye?" However, more often than not, it is a common mistake to take all separations into account to arrive at a rate of attrition. Please take care not to include the following cases while determining "kitney gaye" for the purpose of attrition:
1. Those who are asked to leave
2. Those who have retired
3. Those who have died
Merely calculating the attrition rate is a job half done. Find out the trend in other companies in the same industry and then compare your own to see whether you need to 'relax' or 'panic' at the rate of attrition that you have in your company.
Good luck.
Prashant
From India, Delhi
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While calculating attrition, the first thing that strikes our mind is "kitney gaye?" However, more often than not, it is a common mistake to take all separations into account to arrive at a rate of attrition. Please take care not to include the following cases while determining "kitney gaye" for the purpose of attrition:
1. Those who are asked to leave
2. Those who have retired
3. Those who have died
Merely calculating the attrition rate is a job half done. Find out the trend in other companies in the same industry and then compare your own to see whether you need to 'relax' or 'panic' at the rate of attrition that you have in your company.
Good luck.
Prashant
From India, Delhi
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Hi All, This Attrition formula is wrong, don’t mistake me, it is honest feedback. regards Som
From India, Bangalore
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From India, Bangalore
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Attrition Rate
Attrition: Number of employees who left in the year / average employees in the year x 100. Thus, if the company had 1,000 employees in April 2004, 2,000 in March 2005, and 300 quit in the year, then the average employee strength is 1,500 and attrition is 100 x (300/1500) = 20 percent. A graded system can probably depict the true picture.
Fresher attrition: the number of freshers who left within one year. It tells you how many are using the company as a springboard.
Infant mortality: percentage of people who left within one year. This indicates the ease with which people adapt to the company.
Critical resource attrition: key men exit.
Low performance attrition: those who left due to poor performance.
Source: TVA Infotech
Attrition % = (Total no. of resigned / Average no of Employees) * 100 same way YTD can be calculated.
som
From India, Bangalore
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Attrition: Number of employees who left in the year / average employees in the year x 100. Thus, if the company had 1,000 employees in April 2004, 2,000 in March 2005, and 300 quit in the year, then the average employee strength is 1,500 and attrition is 100 x (300/1500) = 20 percent. A graded system can probably depict the true picture.
Fresher attrition: the number of freshers who left within one year. It tells you how many are using the company as a springboard.
Infant mortality: percentage of people who left within one year. This indicates the ease with which people adapt to the company.
Critical resource attrition: key men exit.
Low performance attrition: those who left due to poor performance.
Source: TVA Infotech
Attrition % = (Total no. of resigned / Average no of Employees) * 100 same way YTD can be calculated.
som
From India, Bangalore
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(Fact Checked)-The formula provided for calculating attrition rate is correct and detailed, covering different aspects like fresher attrition, infant mortality, critical resource attrition, and low performance attrition. The formula given aligns with standard attrition rate calculations. (1 Acknowledge point)
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Dear Pankaj, I hope the following formula can give you a clear picture. Attrition Rate = *100 Regards, Hari Naudiyal
From India, Jaipur
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From India, Jaipur
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Dear Som,
Thanks for your suggestion. Could you please tell me how to cross-check that our attrition rate is correct? Valuable suggestions and comments are required from seniors.
Regards,
Pankaj Chandan
From India, New delhi
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Thanks for your suggestion. Could you please tell me how to cross-check that our attrition rate is correct? Valuable suggestions and comments are required from seniors.
Regards,
Pankaj Chandan
From India, New delhi
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(Fact Checked)-The calculation of attrition rate provided is accurate. However, it would be beneficial to also consider additional factors such as the reasons for attrition and categorization for a more comprehensive analysis. (1 Acknowledge point)
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Attrition rate can be calculated by this simple formula: No of Leavers/Total headcount for that month * 100. Regards Rainy Bhattacharya HR & Admin
From India, Delhi
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From India, Delhi
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(Fact Checked)-The attrition rate formula provided is correct. (1 Acknowledge point)
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Calculating employee turnover is not a matter of simple mathematical methods. It is necessary to take into account the root of the problem by going back to the hiring stage. Harish Bhattiprolu, Director of Sales at Kenexa Technologies, points out that most organizations do not evolve robust measurements for calculating the cost of labor turnover or a bad hire. The details of information required and the measurement metrics are not common formulas but have to be designed in keeping with the nature of the business and different job functions. "As a result, most organizations do not intend to mislead by disclosing statistics which may not be true; it is just that perhaps they believe those to be true. It is imperative to evolve the science of measurement before the measure itself," he asserts.
Using these formulae, organizations will learn what their real attrition figures are, believes Noronha. "Like with most data, attrition too can be interpreted in different ways, and it is up to each organization to decide how and what they wish to share. Companies are generally more concerned about regretted voluntary attrition. These are people who leave of their own will and those whom the organization would have loved to retain. Similarly, organizations measure managed attrition. These are people made redundant, laid off, or exited. Though managed attrition is non-regretted by the organization, the trend of managed attrition, if on the higher side, may show the company in a poor light and does have an impact on its health."
Attrition does not only reflect the hiring policies of an organization but also induction/retention strategies, training methodologies, work culture, and many other factors. Munje reminds that it costs the company valuable time, money, and often credibility (especially where employees develop relationships with customers). "Some companies just look at the employee turnover in terms of the cost (based on the PwC Saratoga Institute theory) involved in the hiring and training of individuals. Others look at the opportunity lost and its cost. Sometimes, companies also use the figure between 50 percent and 200 percent of the annualized salary."
Organizations aim to reduce voluntary attrition of productive employees and encourage unproductive staff to leave its fold. "It makes way for career progression, new thinking, and innovation. However, what that number should be again differs from industry to industry and from country to country as economies vary. The demand vs supply of talent/resources plays a critical role too. What is considered a healthy attrition number in an industry in India may not be so in a more stagnant economy where no new jobs are being created," explains Noronha. Nevertheless, zero attrition is unimaginable and unhealthy for any organization.
Som (Info from Sources)
From India, Bangalore
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Using these formulae, organizations will learn what their real attrition figures are, believes Noronha. "Like with most data, attrition too can be interpreted in different ways, and it is up to each organization to decide how and what they wish to share. Companies are generally more concerned about regretted voluntary attrition. These are people who leave of their own will and those whom the organization would have loved to retain. Similarly, organizations measure managed attrition. These are people made redundant, laid off, or exited. Though managed attrition is non-regretted by the organization, the trend of managed attrition, if on the higher side, may show the company in a poor light and does have an impact on its health."
Attrition does not only reflect the hiring policies of an organization but also induction/retention strategies, training methodologies, work culture, and many other factors. Munje reminds that it costs the company valuable time, money, and often credibility (especially where employees develop relationships with customers). "Some companies just look at the employee turnover in terms of the cost (based on the PwC Saratoga Institute theory) involved in the hiring and training of individuals. Others look at the opportunity lost and its cost. Sometimes, companies also use the figure between 50 percent and 200 percent of the annualized salary."
Organizations aim to reduce voluntary attrition of productive employees and encourage unproductive staff to leave its fold. "It makes way for career progression, new thinking, and innovation. However, what that number should be again differs from industry to industry and from country to country as economies vary. The demand vs supply of talent/resources plays a critical role too. What is considered a healthy attrition number in an industry in India may not be so in a more stagnant economy where no new jobs are being created," explains Noronha. Nevertheless, zero attrition is unimaginable and unhealthy for any organization.
Som (Info from Sources)
From India, Bangalore
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Attrition Rate=Left Employees/Total No.of Employees*100 Supp Left Employees=50 Total No.of Employees=200. Attrition=50/200*100 Then We get Attrition rate.
From India, Hyderabad
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From India, Hyderabad
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Svnmba your calculation is not valid. First find the average no. of employees. then follow below calculation. Attrition % = (Total no. of resigned / Average no of Employees ) * 100 Som
From India, Bangalore
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From India, Bangalore
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Calculation of Attrition Rate:
The formula for calculating the attrition rate is as follows:
Attrition Rate = (Total number of Resignations / Total number of Employees + Total number of New Employees - Total number of Resignations) x 100
For example:
Total number of Resignations: 2
Total number of Employees: 20
Total number of New Employees: 2
Using the formula:
(2 / 20 + 2 - 2) x 100 = 10%
Please ensure the correct values are substituted into the formula to accurately calculate the attrition rate.
From India, Pune
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The formula for calculating the attrition rate is as follows:
Attrition Rate = (Total number of Resignations / Total number of Employees + Total number of New Employees - Total number of Resignations) x 100
For example:
Total number of Resignations: 2
Total number of Employees: 20
Total number of New Employees: 2
Using the formula:
(2 / 20 + 2 - 2) x 100 = 10%
Please ensure the correct values are substituted into the formula to accurately calculate the attrition rate.
From India, Pune
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Hi Pankaj Please find the attachment on Attrition.Hope it will be useful to you. Regards Suman.AVK
From India, Hyderabad
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From India, Hyderabad
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Dear,
It is simple to calculate the attrition rate. The formula is: Number of employees who left during a particular month / Actual balance at the end of that month x 100.
For example, if you have an opening balance of 100 employees, and 10 of them left during the month while 10 joined, your attrition rate is 10% (10/100) x 100.
Regards,
Sreekanth
From United States
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It is simple to calculate the attrition rate. The formula is: Number of employees who left during a particular month / Actual balance at the end of that month x 100.
For example, if you have an opening balance of 100 employees, and 10 of them left during the month while 10 joined, your attrition rate is 10% (10/100) x 100.
Regards,
Sreekanth
From United States
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Suppose the employee opening balance is 200. New joinings are 20, and 40 employees have left. The closing balance is 180. Therefore, the attrition rate is calculated as the number of left employees divided by the average number of employees (sum of opening balance and closing balance divided by 2). This attrition rate should be converted into a percentage.
Regards,
Aastha
From India, Vadodara
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Regards,
Aastha
From India, Vadodara
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Hi, Vikram, i have lot of confusion on attrition formula which you had mentioned in excel. there was a change in formula(attrition coloum) can you clarify the same. Regards, Ramakrishna:-?:-?:-?
From India, Hyderabad
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From India, Hyderabad
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Hi Guys, Let me help you in calculating attrition, the simpler way is- No of employees left (Month) / No of employees(in Month) * 100 = Monthly Attrition Monthly Attrtion * 12 is annual attrition
From India, Mumbai
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From India, Mumbai
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(Fact Checked)-The formula provided for calculating attrition rate is correct and commonly used in practice. (1 Acknowledge point)
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As per my knowledge:
Average Employee = (Opening + Closing) / 2
Closing = Opening + Joined - Left
Attrition rate per month = Left * 100 / Average Employee
The solution to the above problem:
Closing = 150 + 25 - 20 = 155
Average Employee = (150 + 155) / 2 = 152.5
Attrition rate per month = 20 * 100 / 152.5 = 13.11
Please let me know if this is correct.
From India, Mumbai
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Average Employee = (Opening + Closing) / 2
Closing = Opening + Joined - Left
Attrition rate per month = Left * 100 / Average Employee
The solution to the above problem:
Closing = 150 + 25 - 20 = 155
Average Employee = (150 + 155) / 2 = 152.5
Attrition rate per month = 20 * 100 / 152.5 = 13.11
Please let me know if this is correct.
From India, Mumbai
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Please check this link: Employee Turnover Cost Calculator - HR Chally
http://www.chally.com/turnover_cost_calculator.htm
This will give you the percentage and cost of attrition.
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http://www.chally.com/turnover_cost_calculator.htm
This will give you the percentage and cost of attrition.
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Hi Pankaj,
Find the simple calculation for Monthly Attrition:
Monthly Attrition: Total Resigners / (Head count at the start of the month + New Joiners in the month) * 100
For example:
5 / (530 + 12) * 100 = 0.92%
Annual Attrition: 5 / (530 + 12) * 100 * 12 = 11.02%
Avvi
From India, Hyderabad
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Find the simple calculation for Monthly Attrition:
Monthly Attrition: Total Resigners / (Head count at the start of the month + New Joiners in the month) * 100
For example:
5 / (530 + 12) * 100 = 0.92%
Annual Attrition: 5 / (530 + 12) * 100 * 12 = 11.02%
Avvi
From India, Hyderabad
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Dear Apnicar,
Like Pankaj, I also received many views regarding this Attrition Rate calculation. Your formula is quite understandable, but why have you divided your entire calculation by 100? In mathematics, it should not be there.
Just for my better understanding, please clarify, as I want to use this calculation for myself.
Regards,
Deepak
From India, Delhi
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Like Pankaj, I also received many views regarding this Attrition Rate calculation. Your formula is quite understandable, but why have you divided your entire calculation by 100? In mathematics, it should not be there.
Just for my better understanding, please clarify, as I want to use this calculation for myself.
Regards,
Deepak
From India, Delhi
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Hi,
Simple concept; make use of it.
Opening Balance: 10 New Joiners: 5 Terminations: 2 Closing balance = opening balance + new joiners - terminations, i.e., 13 Attrition rate = number of terminations / closing balance = 2/13 = 15.38%
With Regards,
Sri
From India,
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Simple concept; make use of it.
Opening Balance: 10 New Joiners: 5 Terminations: 2 Closing balance = opening balance + new joiners - terminations, i.e., 13 Attrition rate = number of terminations / closing balance = 2/13 = 15.38%
With Regards,
Sri
From India,
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Formula for annualized attrition = Attrition for the period x (12/ period) where period is calculated in months.
So if monthly attrition is 10%. Annualized = 10% x (12/1) = 120%
Also, if quarterly attrition is 15%. Annualized = 15% x (12/3) = 60%
The main reason to calculate the annualized attrition figures is to check the overall attrited headcount for the year if the same rate is continued. That means, if the process have 100 people and 8 attrite every month and we backfill just with 8 in the month, the process will have 8% attrition and 8%x12 = 96% annualized attrition.
You may fill this data for 12 months and this will give you the point.
So this gives us an idea that we will have almost the entire people changed in the year (actually that does not happen as new guys leave more, but it is an indicator of loss of investment)
But as they say, the most corrupt formula in BPO industry is Attrition as there are many formulas and many interpretations. So, I thought I list some of them with their pros and cons of different Attrition formulas:
Formula 1:
Attrited / Start of the month HC -->
E.g. 95 at the start. 5 joiners. 2 Attrites. Monthly Attrition = 2/95.
Con --> what if the 2 attrites are from the new joining batch, then this is not representative.
Formula 2:
Attrited / End of the month HC --> Commonly used formula
E.g. 95 at the start. 5 joiners. 2 Attrites. Monthly Attrition = 2/98.
Pro -- at least looks at the HC at the end of the month.
Con -- what if the guys have left on the last day of the month?
Formula 3:
Attrited/(Average of Start and End of month HC) -->
E.g. 95 at the start. 5 joiners. 2 Attrites. Monthly Attrition = 2/96.5.
This takes both the start and end HC negates the effect of attrites less than or more than the joiners. Still have some effect of last day attrite.
“This is also a formula which is recommended by COPC which does benchmarking on Call Center data via audits conducted in companies implementing the standard”.
Formula 4:
Attrited / Weighted Avg of Daily Headcount --> Negates the day of leaving effeect on the month but becomes difficult to consistently delpoy across multiple teams which need to understand the metric.
From India
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So if monthly attrition is 10%. Annualized = 10% x (12/1) = 120%
Also, if quarterly attrition is 15%. Annualized = 15% x (12/3) = 60%
The main reason to calculate the annualized attrition figures is to check the overall attrited headcount for the year if the same rate is continued. That means, if the process have 100 people and 8 attrite every month and we backfill just with 8 in the month, the process will have 8% attrition and 8%x12 = 96% annualized attrition.
You may fill this data for 12 months and this will give you the point.
So this gives us an idea that we will have almost the entire people changed in the year (actually that does not happen as new guys leave more, but it is an indicator of loss of investment)
But as they say, the most corrupt formula in BPO industry is Attrition as there are many formulas and many interpretations. So, I thought I list some of them with their pros and cons of different Attrition formulas:
Formula 1:
Attrited / Start of the month HC -->
E.g. 95 at the start. 5 joiners. 2 Attrites. Monthly Attrition = 2/95.
Con --> what if the 2 attrites are from the new joining batch, then this is not representative.
Formula 2:
Attrited / End of the month HC --> Commonly used formula
E.g. 95 at the start. 5 joiners. 2 Attrites. Monthly Attrition = 2/98.
Pro -- at least looks at the HC at the end of the month.
Con -- what if the guys have left on the last day of the month?
Formula 3:
Attrited/(Average of Start and End of month HC) -->
E.g. 95 at the start. 5 joiners. 2 Attrites. Monthly Attrition = 2/96.5.
This takes both the start and end HC negates the effect of attrites less than or more than the joiners. Still have some effect of last day attrite.
“This is also a formula which is recommended by COPC which does benchmarking on Call Center data via audits conducted in companies implementing the standard”.
Formula 4:
Attrited / Weighted Avg of Daily Headcount --> Negates the day of leaving effeect on the month but becomes difficult to consistently delpoy across multiple teams which need to understand the metric.
From India
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(Fact Checked)-The user's reply provides accurate information on calculating annualized attrition rates and different formulas used in the industry. The mention of COPC-recommended formula adds credibility. (1 Acknowledge point)
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SAMPLE Employee Attrition Calculation sheet for FY 09-10 .xls
Calculation of Attrition Rate.doc
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(Fact Checked)-The user's reply contains accurate information on considering specific cases like terminations, retirements, and deaths while calculating attrition rates. Additionally, it emphasizes comparing attrition rates with industry trends for better context. (1 Acknowledge point)