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Topic: Attriition % Calculation
Messages (2) Visitors (219)
P K
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Attriition % Calculation
01-11-2017 / 1:23 am #1
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Everyone,
A market survey of different organisations show different ways in which Attrition % (exit %) is being calculated.
Most commonly used one is, say for annual attrition =
(no. of exits in the year) / average of (year end headcount, year start HC)
I feel this formula is fundamentally wrong as it does not give you the right picture in the denominator of what is the true HC for the year (or any duration for which the calculation is used)
Proposal:
I have a revised calculation as a proposal.
Attrition % = (No of exits in the year) / (Year start headcount + All hires for the year)
Please give your opinions on why the denominator should not be what I proposed as this gives you the most accurate calculation of exits %.
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Debora M
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Re: Attriition % Calculation
07-15-2019 / 5:36 am #2
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ATTRITION RATE = ((No. Of Attritions x 100) / (Actual Employees + New Joined)) /100.
Example:
Actual Employees (Opening BAL) - 150
No. Of people left (Attritions) - 20
No. Of Joined - 25
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.
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