Dear friends, Pl find attached file containing details about all aspects of attrition as contributed by some friend. Regards,
From India, Malappuram
1444From India, Malappuram
Hi Agar,
Your presentation is good. Let me explain your doubt on attrition analysis.
Say, an employee A drawing 12500/- resigned and has to be replaced by Emp B.
Now you placed an Ad for 20,000/- and even then you did not close the position fro reasons of technical or salary. So you approach a consultancy.
Emp B joins on 13500/- after much negotiation. As a result of attrition, now the monthly salary is increased by 1000/-. So overall shootup per annum is 12000/- more.
If this Emp B was placed by agency then the placement cost is 13500. Now the overall added cost of attrition is Rs.12000+13500+20000 =45500. Got it?
For a replacement of Rs.1,50,000/- you have spent 45,500/- per candidate per year.
If you divide this expense(Ad + Extra sal + Agency) , it comes to Rs.3800 pm. If you didn't release Ad and use Agency, then the expense is Rs.2150/- pm. This you could have given to Employee A and retained him.
Say, if Emp B is not ok with the company enivronment and yet to catch up with the online production. The rate of expense on this head increases daily.
Now calculate the Time/Cost wasted by HR guys (Manager + Extv) and Tech guys (Manager + Prodn Extv) in selecting candidates thru newspaper Ad. At last failed.
Now add the time consumed to coordinate with placement agency and followups.
So while calcualting the attrition, you have to calculate all direct and indirect figures also which is tricky. Calculation needs all details to work out to minute level.
This is the reason why HR department has to pay importance for Retention. In reality this is not happening to our satisfaction.
Regards,
Chandru
Chennai
From India, Madras
Your presentation is good. Let me explain your doubt on attrition analysis.
Say, an employee A drawing 12500/- resigned and has to be replaced by Emp B.
Now you placed an Ad for 20,000/- and even then you did not close the position fro reasons of technical or salary. So you approach a consultancy.
Emp B joins on 13500/- after much negotiation. As a result of attrition, now the monthly salary is increased by 1000/-. So overall shootup per annum is 12000/- more.
If this Emp B was placed by agency then the placement cost is 13500. Now the overall added cost of attrition is Rs.12000+13500+20000 =45500. Got it?
For a replacement of Rs.1,50,000/- you have spent 45,500/- per candidate per year.
If you divide this expense(Ad + Extra sal + Agency) , it comes to Rs.3800 pm. If you didn't release Ad and use Agency, then the expense is Rs.2150/- pm. This you could have given to Employee A and retained him.
Say, if Emp B is not ok with the company enivronment and yet to catch up with the online production. The rate of expense on this head increases daily.
Now calculate the Time/Cost wasted by HR guys (Manager + Extv) and Tech guys (Manager + Prodn Extv) in selecting candidates thru newspaper Ad. At last failed.
Now add the time consumed to coordinate with placement agency and followups.
So while calcualting the attrition, you have to calculate all direct and indirect figures also which is tricky. Calculation needs all details to work out to minute level.
This is the reason why HR department has to pay importance for Retention. In reality this is not happening to our satisfaction.
Regards,
Chandru
Chennai
From India, Madras
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Attrition-rate. xls