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Attrition Rate Calculation

December 3rd, 2014 12 comments

Attrition 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.

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