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Attrition Rate Calculation
Rajesh
Rajesh Picture
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Posted 01-12-2008Reply

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

Andrina
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  Rated 0 | Posted 01-12-2008

thanx so much.it really wil help me a lot for my each month calulations.

Vinod
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  Rated 0 | Posted 01-12-2008

hi rajesh,

very nice explanation...... tks.

Gopika
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  Rated 0 | Posted 30-07-2013

thanks a ton....nyc explanation.... :)

Raghavendra
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  Rated 0 | Posted 06-08-2013

Very helpful, Thank you

Debora
Debora Picture
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  Rated 0 | Posted 24-06-2019

Your company’s attrition rate is the rate at which employees voluntarily leave your firm. The attrition rate is also referred to as the employee turnover rate or the “churn” rate. If your company has a high attrition rate, it may cost you a significant amount of money to continually replace employees. Furthermore, customers may perceive a drop in the value of your product or service due to a diminished work force or lack of morale or motivation in remaining employees. This damage to your brand may further impact your bottom line.
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

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