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ATTRITION RATE

(The formula and correct logic behind calculation of Attrition Rate)

((no. Of attritions x 100) / (Actual Employees + NewJoined)) /100

Examples:

1)

Actual Employees

(Opening BAL)

150

No. Of people

(Attritions)

20

No. Of Joined

25

Total Employees left

(Current Headcount)

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 so it makes150 + 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 yourcurrent headcount and at the same time you can say my attrition is 11.42% thatshows you lost 20 employees of 150 and 25 more joined which makes count to 175

2)

Actual Employees

(Opening BAL)

100

No. Of people

(Attritions)

50

No. Of Joined

0

Total Employees left

(Current Headcount)

50

This is the special case where we are consideringattritions only keeping into mind that nobody has joined in particular month.

So according to the formula: ((50 x 100) / (100)) / 100

Which comes to 0.5 i.e. 50%

Now as you had 100 previously and now 0 joined so it makes100 + 0 =100

Now if you calculate 50% of 100 i.e. 100 x 0.5 = 50

Which clearly shows that 100 – 50 = 50, which is yourcurrent headcount and at the same time you can say my attrition is 50% thatshows you lost 50 employees of 100 and 0 joined which makes count to 50

3)

Actual Employees

(Opening BAL)

500

No. Of people

(Attritions)

200

No. Of Joined

100

Total Employees left

(Current Headcount)

400

So according to the formula: ((200 x 100) / (500 +100)) /100

Which comes to 0.3333 i.e. 33.33%

Now as you had 500 previously and now 100 joined so it makes500 + 100 =600

Now if you calculate 33.33% of 600 i.e. 600 x 0.3333 = 200

Which clearly shows that 600 – 200 = 400, which is yourcurrent headcount and at the same time you can say my attrition is 33.33% thatshows you lost 200 employees of 500 and 100 more joined which makes count to400.

4)

Actual Employees

(Opening BAL)

8000

No. Of people

(Attritions)

5000

No. Of Joined

500

Total Employees left

(Current Headcount)

3500

So according to the formula: ((5000 x 100) / (8000 +500)) /100

Which comes to 0.5882 i.e. 58.82%

Now as you had 8000 previously and now 500 joined so itmakes 8000 + 500 =8500

Now if you calculate 58.82% of 8500 i.e. 8500 x 0.5882 =5000

Which clearly shows that 8500 – 5000 = 3500, which is yourcurrent headcount and at the same time you can say my attrition is 58.82% thatshows you lost 5000 employees of 8000 and 500 more joined which makes count to3500.

Regards,

Rajesh

1. Monthly attrition rate= {No. of separations for the month/(Opening headcount for the month + Closing headcount for the month)/2}*12*100.

2. Attrition rate has to be calculated only for the year or has to be annualized; The formula is = (No. of employees Left during the year)/((Opening Balance)+(addition during the year) ) * 100