Dear, Folks Please share the best possible formulaes for calculating attrition rate in the organisation. Thanx & regards Sonia
From India, Delhi
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From India, Delhi
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Dear Sonia, I am attaching one file which will guide you to calculate the Attrition rate.... I hope this might be of some help to you...
From India, Mumbai
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399From India, Mumbai
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[U]ATTRITION RATE
(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 (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, 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 is 11.42% that shows you lost 20 employees of 150 and 25 more joined, which makes the 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 considering attritions only, keeping in mind that nobody has joined in a 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, it makes 100 + 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 your current headcount, and at the same time, you can say my attrition is 50% that shows you lost 50 employees of 100 and 0 joined, which makes the 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, it makes 500 + 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 your current headcount, and at the same time, you can say my attrition is 33.33% that shows you lost 200 employees of 500 and 100 more joined, which makes the count to 400.
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, it makes 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 your current headcount, and at the same time, you can say my attrition is 58.82% that shows you lost 5000 employees of 8000 and 500 more joined, which makes the count to 3500.
From India, Bangalore
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(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 (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, 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 is 11.42% that shows you lost 20 employees of 150 and 25 more joined, which makes the 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 considering attritions only, keeping in mind that nobody has joined in a 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, it makes 100 + 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 your current headcount, and at the same time, you can say my attrition is 50% that shows you lost 50 employees of 100 and 0 joined, which makes the 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, it makes 500 + 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 your current headcount, and at the same time, you can say my attrition is 33.33% that shows you lost 200 employees of 500 and 100 more joined, which makes the count to 400.
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, it makes 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 your current headcount, and at the same time, you can say my attrition is 58.82% that shows you lost 5000 employees of 8000 and 500 more joined, which makes the count to 3500.
From India, Bangalore
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Attrition Rate formula.pdf
SAMPLE Employee Attrition Calculation sheet for FY 09-10 .xls
Calculation of Attrition Rate.doc