Can anybody please define the terms Attrition and Employee Turnover ? Do help me out with a practical definition and not a book definition ! Thank you in advance. Pranesh John
From India, Coimbatore
From India, Coimbatore
Dear praneshjohn,
Attrition in HR means Unpredictable and uncontrollable, but normal, reduction of work force due to resignations, retirement, sickness, or death.
The practical and formula to calculate attrition is
{(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, Bangalore
477Attrition in HR means Unpredictable and uncontrollable, but normal, reduction of work force due to resignations, retirement, sickness, or death.
The practical and formula to calculate attrition is
{(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, Bangalore
Dear praneshjohn,
Do check with the below link for the definition of employee turn over...
https://www.citehr.com/232258-employee-turnover.html
From India, Bangalore
Do check with the below link for the definition of employee turn over...
https://www.citehr.com/232258-employee-turnover.html
From India, Bangalore
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Attrition-rate. xls