## Attrition Rate Calculation

ATTRITION RATE CALCULATION

(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.

Thank you very much for the calculation

Nice.. useful calculation

TY very much for the information and clear calculations with examples… very handy and helpful info….

Thanks a lot…

Thanks a lot

Can we consider transfer cases in attrition formula

Can we consider transfer cases in attrition formula?

I have a question I have is, where to count the new joiners that are coming in to replace the people that left, should those be counted as new joiners? OR the new joiners count should only include ‘new positions’ and not replacements?

i am student.. is there any accepted attrition rate?

i mean.. this attrition rate is minimum .. some what ok rate??/

is there any thing like ???

What treatment should be given for terminated employees

What treatment should be given for terminated employees.

why we take avrg of opening and closing head count