Hi All Proffessionals.
I m submitting herewith brief detail on how to calculate attrition rate. hope it will help u.
CALCULATION OF ATTRITION RATE
(The formula and correct logic behind calculation of Attrition Rate)
Examples:
1) Actual Employees No. Of people left No. Of Joined Total Employees
(Opening BAL) (Attritions) (Current Headcount)
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 so 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 count to 175?
2) Actual Employees No. Of people left No. Of Joined Total Employees
(Opening BAL) (Attritions) (Current Headcount)
100 50 0 50
This is the special case where we are considering attritions 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 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 count to 50?
3) Actual Employees No. Of people left No. Of Joined Total Employees
(Opening BAL) (Attritions) (Current Headcount)
500 200 100 400
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 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 count to 400?
4) Actual Employees No. Of people left No. Of Joined Total Employees
(Opening BAL) (Attritions) (Current Headcount)
8000 5000 500 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 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 count to 3500.
From India, Pune
72I m submitting herewith brief detail on how to calculate attrition rate. hope it will help u.
CALCULATION OF ATTRITION RATE
(The formula and correct logic behind calculation of Attrition Rate)
((No. Of attritions x 100) / (Actual Employees + New Joined)) /100
Examples:
1) Actual Employees No. Of people left No. Of Joined Total Employees
(Opening BAL) (Attritions) (Current Headcount)
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 so 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 count to 175?
2) Actual Employees No. Of people left No. Of Joined Total Employees
(Opening BAL) (Attritions) (Current Headcount)
100 50 0 50
This is the special case where we are considering attritions 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 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 count to 50?
3) Actual Employees No. Of people left No. Of Joined Total Employees
(Opening BAL) (Attritions) (Current Headcount)
500 200 100 400
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 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 count to 400?
4) Actual Employees No. Of people left No. Of Joined Total Employees
(Opening BAL) (Attritions) (Current Headcount)
8000 5000 500 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 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 count to 3500.
From India, Pune
Hi Abhishek,
Your formula is correct for an ideal company where there are no SBU/ branches which rules out possibility of tranfer in and trasfer out within SBUs (Strategic business unit). Now consider a case of group of industries with various business units and frequent transfers happening between SBUs. Now if you have to calculate SBU wise attrition rate, the above formula will not give you right picture because it does not capture transfers. Also you can not term transfers as joinings or exits in any SBU. In such cases you have to go by law of average only.
Regards,
Anup
From India, Hyderabad
Your formula is correct for an ideal company where there are no SBU/ branches which rules out possibility of tranfer in and trasfer out within SBUs (Strategic business unit). Now consider a case of group of industries with various business units and frequent transfers happening between SBUs. Now if you have to calculate SBU wise attrition rate, the above formula will not give you right picture because it does not capture transfers. Also you can not term transfers as joinings or exits in any SBU. In such cases you have to go by law of average only.
Regards,
Anup
From India, Hyderabad
Dear Abishek,
The said posting by you word to word was already posted by a member P.C.Agarwal (Aurangabad) on Sep 28. I don't know why many posts are often repeated and goes in to cyclic loop for ever.
This is the reason why the no. of registered views are more than the replies for any given post. Everytime every topic sounded old and as if already read and replied.
Fermented wine is refilled again in a new bottle with different label??
Regards
Chandru
From India, Madras
The said posting by you word to word was already posted by a member P.C.Agarwal (Aurangabad) on Sep 28. I don't know why many posts are often repeated and goes in to cyclic loop for ever.
This is the reason why the no. of registered views are more than the replies for any given post. Everytime every topic sounded old and as if already read and replied.
Fermented wine is refilled again in a new bottle with different label??
Regards
Chandru
From India, Madras
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Calculation of Attrition Rate.doc
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