Attrition Rate Formula:
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The Employee Attrition Rate measures the rate at which employees leave an organization over a specific period. It's a key HR metric that helps organizations understand employee turnover and retention patterns.
The calculator uses the attrition rate formula:
Where:
Explanation: The formula calculates the percentage of employees who left relative to the average workforce size.
Details: Tracking attrition helps organizations identify retention problems, calculate turnover costs, and develop strategies to improve employee satisfaction and engagement.
Tips: Enter the number of employees who left during the period and the average number of employees during that same period. Both values must be positive numbers.
Q1: What's a good attrition rate?
A: It varies by industry, but generally 10-15% is considered normal. Rates significantly higher may indicate problems.
Q2: How is average employees calculated?
A: (Number of employees at start + Number at end) / 2, or monthly averages for more precision.
Q3: What's the difference between attrition and turnover?
A: Attrition refers to natural reduction (retirements, resignations), while turnover includes all departures including terminations.
Q4: When should I be concerned about attrition?
A: When it's higher than industry norms, concentrated in key roles, or increasing trend over time.
Q5: How can I reduce attrition?
A: Improve hiring practices, enhance employee engagement, offer competitive compensation, and provide career development opportunities.