CALCULATION OF ATTRITION RATE

(The formula and correct logic behind calculation of ATTRITION RATE) ((No. Of attritions x 100) / (Actual Employees + New Joined)) /100

Examples: 1) Actual Employees (Opening BAL) 150 No. Of people left (Attritions) 20 No. Of Joined 25 Total Employees (Current Headcount) 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 (Opening BAL) 100

No. Of people left (Attritions) 50

No. Of Joined 0

Total Employees (Current Headcount) 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 (Opening BAL) 500

No. Of people left (Attritions) 200

No. Of Joined 100

Total Employees (Current Headcount) 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 (Opening BAL) (Attritions) 8000 5000

No. Of Joined 500

Total Employees (Current Headcount) 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.