Hi All,
I am working for an IT company with 400+ employee working. As we all are aware about that IT companies face the maximum rate of attrition. I want to calculate Attrition rate for my company and just want you guys inputs on my queries mentioned below:
1. While calculating attrition rate do we need to consider only the confirmed employees during that period?
2. Do we need to count absconding employees also for attrition rate.
3. What is the popular formula used for calculating Attrition Rate?
Request you to help me.
Thanks & Regards
Sapana
From India, Mumbai
1I am working for an IT company with 400+ employee working. As we all are aware about that IT companies face the maximum rate of attrition. I want to calculate Attrition rate for my company and just want you guys inputs on my queries mentioned below:
1. While calculating attrition rate do we need to consider only the confirmed employees during that period?
2. Do we need to count absconding employees also for attrition rate.
3. What is the popular formula used for calculating Attrition Rate?
Request you to help me.
Thanks & Regards
Sapana
From India, Mumbai
Dear Sapna,
The formula for attrition rate is
(no. Of attritions x 100) / (Actual Employees + New Joined)) /100.
Yes you need to count the absconding employees as they have joined the organisation and left due to xyz reasons maybe the reasons were related to company culture
You should also count the employees not confirmed.
From India, Pune
The formula for attrition rate is
(no. Of attritions x 100) / (Actual Employees + New Joined)) /100.
Yes you need to count the absconding employees as they have joined the organisation and left due to xyz reasons maybe the reasons were related to company culture
You should also count the employees not confirmed.
From India, Pune
Hi Sapana,
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.
Regards,
Satpreet Kaur
From India
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.
Regards,
Satpreet Kaur
From India
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Attrition Rate formula.pdf