What is Attrition Rate and How to Calculate it Easily

WHAT IS ATTRITION RATE
AND HOW TO CALCULATE
IT EASILY?

Are you facing employee turnover issues recently and thinking
about how to solve this problem? First of all, it is a common problem
we all face for days, but there are unique ways to resolve them.
Have you heard of checking the workplace attrition rate? Is it
balanced or do you have to do some work on it?
Checking the employee attrition rate is mandatory. If the rate of
staff turnover is detected as high, then you need to bring some
changes immediately. Else, productivity and company growth are
affected.
In this blog, we are talking about what employee attrition is, how
you calculate the employee attrition rate, the benefits of
understanding the attrition rate, and more.

Attrition rate is a measuring tool that identifies the ratio of employees
who resign from organisations voluntarily or involuntarily. It also
represents the percentage of loyal customers of which employee
leaves the company.
It is a key indicator that calculates the pace at which people leave a
company. It measures how many people or employees leave,
voluntarily or involuntarily. Additionally, it helps track average
employment duration, and competitive compensation, detects the
cost of requirements, training, and exit interview, and maintains
customer base and marketing. HRs can measure the attrition rate
monthly, quarterly or annually to monitor progress.
With a clarified attrition rate, an organization can figure out how things
are going at a company. It provides a clear image of the company’s
ultimate growth and productivity.
WHAT IS THE ATTRITION RATE?

What is Customer Attrition
Rate?
The customer attrition rate, also known
as the customer churn rate, is a ratio
that is used to measure the
percentage of customers who stop
doing business with a company during
a certain time.
Losing customers haphazardly is a kind
of horrifying thing for upbringing a
company’s productivity. It is expensive
as it cost more to deal with new
customers than to retain existing ones.
It also creates a business graph with
long-lasting employees.
What is the Employee
Attrition Rate?
The employee attrition rate, also
known as the employee turnover rate,
is a metric used to measure the
percentage of employees who leave
a company during a certain period.
It is an important metric for businesses
to monitor because high employee
turnover can be costly in terms of
recruitment, training, and lost
productivity.

HOW DO YOU CALCULATE THE ATTRITION RATE USING THE
ATTRITION RATE FORMULA?
To calculate the annual employee attrition rate, You can put the
number of attrition divided by the average number of employees
and then just multiply the number by 100. Here is the formula,
Attrition rate= No. of attrition/Average no. of employees * 100
But there is confusion that how to measure the number of
employees’ attrition or how to calculate the attrition rate
specifically. Let’s discuss this in detail.

▸Attrition Number Formula, and Calculations
Let’s take an example of the attrition rate formula and how to calculate the attrition
rate. Suppose you have 200 employees at the beginning of 2023, and you like to
calculate the attrition rate yearly. Then you have to collect the number of
employees who leave. Let’s take the number as 10 and 16 employees are hired.
For calculating the attribution rate for the year 2023, first, you need to subtract the
left employee number (10) from the overall number (200) then add the number of
hired ones(16).
200 – 10 = 190
180 + 16 = 196
Then, add the number of employees at the start of the period to the total:
200 + 196 = 396
For the average, you have to divide the number (396) by 2
396 / 2 = 198
▸Attrition Rate Calculation
The number of employees who left/ The employee average arrival (10 / 198 = 0.0505)
Finally, multiply the decimal by 100 to get the rate of attrition in percentage:
0.0505 x 100 = 5.05%

Full Article on our page here –
https://www.pockethrms.com/blog/attrition-rate/

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