According to Requitment of HR ways what is Employees Attrition and its exact formula of Attrition please guide us
From India, Bangalore
1From India, Bangalore
1. While calculating the attriton formula both confirmed and probationary employees are considered.
2. Yes, absconding employees are also considered. Attrition is calculated for all the employees who leave the organisation irrespective of the reason..whether absconded or terminated etc.
3. There are thre formulae used for attrition calculation: Monthly Attrition Rate, Annual Attrition Rate and Annualised Attrition Rate.
Monthly Attrition = (No. of Employees left in Current Month/Avg Headcount)*100
{Average HC = (Employee Strength at the Start of the month+Employee Strength at the end of the month)/2 }
Annualised Attrition: Incase of Annualised attrition calculation, based on the current attrition trend, the prospective annual attrition is calculated. e.g, if we are calculating annualised attrition for June, then,
Annualised Attrition= (Sum of employees left in last 6 months)*(12/N)/(Avg HC of last 6 month)
N is number of month, here it is 6 since June is 6th month of an year.
When the above formula is used at the end of the year..the rate is called as Annual Attrition as it gives actual attrition of the specific year.
attrition rate xl file
From India, Kochi
2. Yes, absconding employees are also considered. Attrition is calculated for all the employees who leave the organisation irrespective of the reason..whether absconded or terminated etc.
3. There are thre formulae used for attrition calculation: Monthly Attrition Rate, Annual Attrition Rate and Annualised Attrition Rate.
Monthly Attrition = (No. of Employees left in Current Month/Avg Headcount)*100
{Average HC = (Employee Strength at the Start of the month+Employee Strength at the end of the month)/2 }
Annualised Attrition: Incase of Annualised attrition calculation, based on the current attrition trend, the prospective annual attrition is calculated. e.g, if we are calculating annualised attrition for June, then,
Annualised Attrition= (Sum of employees left in last 6 months)*(12/N)/(Avg HC of last 6 month)
N is number of month, here it is 6 since June is 6th month of an year.
When the above formula is used at the end of the year..the rate is called as Annual Attrition as it gives actual attrition of the specific year.
attrition rate xl file
From India, Kochi
Whether to consider following employee count for calculating the attrition
a) retired
b) expired (whether on job or off duty both)
c) transferred to other location of same organization
d) suspended for 6 months
Also , to calculate the closing strength whether to consider following employee count
a) transferred from other location of same organization (not recruited in considered location)
b) rehire on contractual terms after retirement
Regards,
Varun Shreshth
From India, New Delhi
a) retired
b) expired (whether on job or off duty both)
c) transferred to other location of same organization
d) suspended for 6 months
Also , to calculate the closing strength whether to consider following employee count
a) transferred from other location of same organization (not recruited in considered location)
b) rehire on contractual terms after retirement
Regards,
Varun Shreshth
From India, New Delhi
Hi Mr. Dileep
Thank you very much for the useful calculation. I calculated following yearly attrition rate as you mentioned above. Could you please confirm whether it's correct or not?
Year Employee(Open Balance) No. Of people left (Attritions) No. Of Joined Total Employees (Current Headcount) Attrition Rate
2013 109 32 15 92 25.81
2014 95 29 48 114 20.28
2015 111 26 27 112 18.84
Regards
Himanshu Vyas
From India , Ujjain
Thank you very much for the useful calculation. I calculated following yearly attrition rate as you mentioned above. Could you please confirm whether it's correct or not?
Year Employee(Open Balance) No. Of people left (Attritions) No. Of Joined Total Employees (Current Headcount) Attrition Rate
2013 109 32 15 92 25.81
2014 95 29 48 114 20.28
2015 111 26 27 112 18.84
Regards
Himanshu Vyas
From India , Ujjain
Hi Dileep and Karthik,
I have a question on the example given-
When the formula is: Attrition = ((no. of attrition/left emp.*100)/(actual emp. + new joinee))/100 in the given excel we are using the below one
Formulas: =((F6*100)/(D6+E6+F6+G6))/100 for the first month. But the output D6+E+ and F6+G6 is one and the same which is 175 in this case. So adding it twice in the denominator actually reducing the attrition percentage by half (50%) which becomes 5.71% instead of 11.43%. However, from the next month the calculation is correct where we are only taking D7+E7.
Could you please look into this or just clarify
From India, Bangalore
I have a question on the example given-
When the formula is: Attrition = ((no. of attrition/left emp.*100)/(actual emp. + new joinee))/100 in the given excel we are using the below one
Formulas: =((F6*100)/(D6+E6+F6+G6))/100 for the first month. But the output D6+E+ and F6+G6 is one and the same which is 175 in this case. So adding it twice in the denominator actually reducing the attrition percentage by half (50%) which becomes 5.71% instead of 11.43%. However, from the next month the calculation is correct where we are only taking D7+E7.
Could you please look into this or just clarify
From India, Bangalore
1. Calculate the monthly attrition rate.
To calculate the attrition rate for any given month, you need to know the total number of employees at the beginning of the month. Then, you need to know the number of new employees added that month. Finally, determine the number of employees who left. The number of employees who left is the number of attrition.
Monthly Attrition Rate = Number of Attrition/Average Number of Employees *100.
Suppose a telecommunications company had 150 employees as of April 1, 2016. During that month, 20 employees voluntarily left the company. Also, the company hired 25 new employees.
First, calculate the average number of employees-
The beginning number was 150. If 20 people left and 25 people were hired, then the ending number was 155.
The average number of employees for that month can be calculated with the equation (150+155)/2=152.5.
Next calculate the monthly attrition rate-
In this month, 20 people left, and the average number of employees was 152.5.
The monthly attrition rate can be calculated with the equation (20/152.5)*100=.1311*100=13.11
The attrition rate for April 2016 was 13.11 percent.
2. Calculate the quarterly attrition rate.
Use the same formula. However, instead of one month of data, you will look at the data for one quarter, which is three months.
Suppose the telecommunications company in the above example wants to calculate its attrition rate for the second quarter of the 2016. This would be April, May and June of 2016.
The beginning number of employees on April 1, 2016 was 150. Over the course of the quarter, 30 people left and 40 new employees were hired.
Therefore, the ending number of employees on June 30, 2016 was {150-30+40=160}.
The average number of employees for the quarter was (150+160)/2=155
The attrition for the second quarter of 2016 was (30/155)*100=19.35 or 19.35 percent.
3. Calculate the annual attrition rate.
For this calculation,
-you need to know the total number of attrition for the year.
-Then, you need to calculate the weighted average of employees. Using the weighted average is more mathematically accurate since it smooths the effect of seasonal changes in the number of employees a company has throughout the year.
Suppose the telecommunications company in the above example had a total of 62 attrition for the year.
They typically hire 20 percent more employees for the last quarter of the year for their busy season. So, they have an average of 155 employees for the first three quarters, and an average of 186 employees for the last quarter.
Knowing that there are four quarters in a year, you could calculate the weighted average with the formula (155 * .75) + (186 * .25)/2 = (116.25 + 46.5)/2 = 162.75
You could also use the number of weeks worked.
There are 52 weeks in a year. In the first three quarters, there are 39 weeks, and in the last quarter there are 13 weeks. Use the formula ((155*39)/52))+((186*13)/52))=116.25+46.5=162.75.
Finally, you could use the number of hours worked.
In a year, there are 2080 work hours. In the first three quarters, there are 1,560 hours, and in the last quarter there are 520 hours. Use the formula ((155*1,560)/2080))+((186*520)/2080))=116.25+46.5=162.75
The weighted average of employees for this company is 162.75.
Calculate the annual attrition rate for 2016 will be (62/162.75)*100=38.09 or 38.09 percent.
From India, Delhi
To calculate the attrition rate for any given month, you need to know the total number of employees at the beginning of the month. Then, you need to know the number of new employees added that month. Finally, determine the number of employees who left. The number of employees who left is the number of attrition.
Monthly Attrition Rate = Number of Attrition/Average Number of Employees *100.
Suppose a telecommunications company had 150 employees as of April 1, 2016. During that month, 20 employees voluntarily left the company. Also, the company hired 25 new employees.
First, calculate the average number of employees-
The beginning number was 150. If 20 people left and 25 people were hired, then the ending number was 155.
The average number of employees for that month can be calculated with the equation (150+155)/2=152.5.
Next calculate the monthly attrition rate-
In this month, 20 people left, and the average number of employees was 152.5.
The monthly attrition rate can be calculated with the equation (20/152.5)*100=.1311*100=13.11
The attrition rate for April 2016 was 13.11 percent.
2. Calculate the quarterly attrition rate.
Use the same formula. However, instead of one month of data, you will look at the data for one quarter, which is three months.
Suppose the telecommunications company in the above example wants to calculate its attrition rate for the second quarter of the 2016. This would be April, May and June of 2016.
The beginning number of employees on April 1, 2016 was 150. Over the course of the quarter, 30 people left and 40 new employees were hired.
Therefore, the ending number of employees on June 30, 2016 was {150-30+40=160}.
The average number of employees for the quarter was (150+160)/2=155
The attrition for the second quarter of 2016 was (30/155)*100=19.35 or 19.35 percent.
3. Calculate the annual attrition rate.
For this calculation,
-you need to know the total number of attrition for the year.
-Then, you need to calculate the weighted average of employees. Using the weighted average is more mathematically accurate since it smooths the effect of seasonal changes in the number of employees a company has throughout the year.
Suppose the telecommunications company in the above example had a total of 62 attrition for the year.
They typically hire 20 percent more employees for the last quarter of the year for their busy season. So, they have an average of 155 employees for the first three quarters, and an average of 186 employees for the last quarter.
Knowing that there are four quarters in a year, you could calculate the weighted average with the formula (155 * .75) + (186 * .25)/2 = (116.25 + 46.5)/2 = 162.75
You could also use the number of weeks worked.
There are 52 weeks in a year. In the first three quarters, there are 39 weeks, and in the last quarter there are 13 weeks. Use the formula ((155*39)/52))+((186*13)/52))=116.25+46.5=162.75.
Finally, you could use the number of hours worked.
In a year, there are 2080 work hours. In the first three quarters, there are 1,560 hours, and in the last quarter there are 520 hours. Use the formula ((155*1,560)/2080))+((186*520)/2080))=116.25+46.5=162.75
The weighted average of employees for this company is 162.75.
Calculate the annual attrition rate for 2016 will be (62/162.75)*100=38.09 or 38.09 percent.
From India, Delhi
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.
The-Winning-for mula.pps
Split the Name - Formula.xls