Dear seniors, kindly help me to know what is attrition rate and how it is calculated.i will be thankful if you explain it with an example.... regards paras thakur
From United States, Ashburn
2From United States, Ashburn
Definition : The reduction in staff and employees in a company through normal means, such as retirement and resignation. This is natural in any business and industry.
Formula to calculate monthly attrition : = (Total separation during the month / Total Strength on last month end) * 100
Hope its clear.
Chill HR !!
https://www.facebook.com/HRGang
From India, Gurgaon
Formula to calculate monthly attrition : = (Total separation during the month / Total Strength on last month end) * 100
Hope its clear.
Chill HR !!
https://www.facebook.com/HRGang
From India, Gurgaon
Thank you sir but i am having another query that is what is the difference between labour turnover and attrition rate..kindly please revert me with an example....... Regards paras thakur
From United States, Ashburn
From United States, Ashburn
Labour Turnover are the losses to employer due to attrition and expenses to filling up the gap of the same.
Chill HR !!
https://www.facebook.com/HRGang
From India, Gurgaon
Chill HR !!
https://www.facebook.com/HRGang
From India, Gurgaon
As I understand it labour turnover is the rate of labour joining and leaving in a particular period say one year. For example if during 2012 25 labour leave and 30 join in a strength of 400 labour on 1-1-2012 then [(25+30) / 400] x 100 is labour turnover rate. Whereas attrition rate is the rate of employees leaving only. i.e. (25/400)x100.
Vibhakar Ramtirthkar.
From India, Pune
Vibhakar Ramtirthkar.
From India, Pune
Dear Mr Paras,
Welcome!
The question posted by you is not only highly relevant but most critical too in the scenario pervading in the industry these days. The attrition rate has been explained by our few members above. The formula is clear. The number of employees leaving in a month divided by total number of employees in that month multiply by 100 gives the percentage rate of attrition. The increase in labour turnover or employees turnover may be sometimes a cause of worry to the management because it points to the high rate of attrition. This may be situation for the management to review its work culture, working atmosphere and the conditions of service offered to the employees. The management must think to contain the rate of attrition or otherwise its targets would not be achieved and the ultimate results may be disappointing in terms of profit and goodwill. So use the calculations of attrition rate and labour turnover to analyse the causes and address them to maintain efficiency and remove skill deficit.
With good wishes.
C.M. Lal Srivastava
From India, New Delhi
Welcome!
The question posted by you is not only highly relevant but most critical too in the scenario pervading in the industry these days. The attrition rate has been explained by our few members above. The formula is clear. The number of employees leaving in a month divided by total number of employees in that month multiply by 100 gives the percentage rate of attrition. The increase in labour turnover or employees turnover may be sometimes a cause of worry to the management because it points to the high rate of attrition. This may be situation for the management to review its work culture, working atmosphere and the conditions of service offered to the employees. The management must think to contain the rate of attrition or otherwise its targets would not be achieved and the ultimate results may be disappointing in terms of profit and goodwill. So use the calculations of attrition rate and labour turnover to analyse the causes and address them to maintain efficiency and remove skill deficit.
With good wishes.
C.M. Lal Srivastava
From India, New Delhi
Dear Paras,
Truly speaking, this is a performance indicator so far as the HR is concerned, of course these figures play havoc in some companies where the attrition is on a high. The sad thing is, many companies don't bother about the figures so long as they get candidates that too freshers from the colleges and in columns. For your studies here you'll find some materials as attached.
Regards,
kumar.s.
From India, Bangalore
Truly speaking, this is a performance indicator so far as the HR is concerned, of course these figures play havoc in some companies where the attrition is on a high. The sad thing is, many companies don't bother about the figures so long as they get candidates that too freshers from the colleges and in columns. For your studies here you'll find some materials as attached.
Regards,
kumar.s.
From India, Bangalore
Dear
The general way to calculate attrition is average strength of the month which is arrived at by adding the opening and closing strength of the month and divide the same by two. That number would be the denominator and the no. of employees left in the month will be the numerator accordingly percentage will have to be arrived at
From India, Chennai
The general way to calculate attrition is average strength of the month which is arrived at by adding the opening and closing strength of the month and divide the same by two. That number would be the denominator and the no. of employees left in the month will be the numerator accordingly percentage will have to be arrived at
From India, Chennai
Dear seniors i relay thankful to all of you suggested me regarding the attrition rate.this will defiantly help me during my professional career...i just need one more help from u all actual i am looking for job in HR if any vacancy so i request you to intimate me...
Regards
Paras Thakur
8928316911( Nagpur)
From United States, Ashburn
Regards
Paras Thakur
8928316911( Nagpur)
From United States, Ashburn
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