Employee Attrition Rate Calculator
Understanding Employee Attrition Rate
Employee attrition rate, also known as employee turnover rate, is a key metric that measures the percentage of employees who leave a company over a specific period. It's a crucial indicator of employee satisfaction, company culture, and the effectiveness of HR strategies. A high attrition rate can lead to increased recruitment costs, loss of institutional knowledge, decreased productivity, and a negative impact on employee morale.
Calculating employee attrition rate helps businesses identify potential issues, understand the reasons behind employee departures, and implement strategies to improve retention.
How to Calculate Employee Attrition Rate:
The standard formula for calculating employee attrition rate is:
Attrition Rate = (Number of Employees Who Left During Period / Average Number of Employees During Period) * 100
To find the "Average Number of Employees During Period", you typically use this formula:
Average Employees = (Number of Employees at Start of Period + Number of Employees at End of Period) / 2
In some cases, if you have precise data on mid-period hires and departures, a more complex calculation might be used, but the formula above is the most common and widely accepted for general reporting.
Example Calculation:
Let's say a company has:
- Number of Employees at the Start of the Quarter: 100
- Number of Employees at the End of the Quarter: 95
- Number of Employees Who Left During the Quarter: 5
First, calculate the average number of employees:
Average Employees = (100 + 95) / 2 = 195 / 2 = 97.5
Now, calculate the attrition rate:
Attrition Rate = (5 / 97.5) * 100 ≈ 5.13%
This means that approximately 5.13% of the workforce left the company during that quarter.
Interpreting the Results:
Once calculated, the attrition rate should be tracked over time and compared to industry benchmarks. A consistently high or increasing attrition rate warrants a deep dive into employee feedback, exit interviews, and workplace conditions to identify root causes and implement corrective actions.