Attrition Rate Calculation per Month

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Monthly Attrition Rate Calculator
Total headcount on the first day of the month.
Total headcount on the last day of the month.
Total employees who left (voluntary + involuntary) during the month.
Average Headcount: 0
Monthly Attrition Rate: 0.00%
Projected Annual Rate: 0.00%
function calculateAttrition() { // Get input values var startCount = document.getElementById('startCount').value; var endCount = document.getElementById('endCount').value; var separations = document.getElementById('separations').value; // Validation if (startCount === "" || endCount === "" || separations === "") { alert("Please fill in all fields to calculate the rate."); return; } var start = parseFloat(startCount); var end = parseFloat(endCount); var sep = parseFloat(separations); if (start < 0 || end < 0 || sep < 0) { alert("Values cannot be negative."); return; } // Calculate Average Headcount // Formula: (Start + End) / 2 var average = (start + end) / 2; if (average === 0) { alert("Average headcount cannot be zero."); return; } // Calculate Monthly Attrition Rate // Formula: (Separations / Average Headcount) * 100 var monthlyRate = (sep / average) * 100; // Calculate Annualized Rate // Formula: Monthly Rate * 12 (Linear projection) var annualRate = monthlyRate * 12; // Update DOM document.getElementById('avgHeadcount').innerHTML = average.toLocaleString(undefined, {minimumFractionDigits: 1, maximumFractionDigits: 1}); document.getElementById('monthlyRate').innerHTML = monthlyRate.toFixed(2) + "%"; document.getElementById('annualRate').innerHTML = annualRate.toFixed(2) + "%"; // Show result box document.getElementById('result').style.display = 'block'; }

Understanding Monthly Attrition Rate

The monthly attrition rate is a critical Human Resources metric that measures the rate at which employees leave a workforce over a single month. It includes both voluntary exits (resignations, retirement) and involuntary exits (terminations). Tracking this metric monthly allows organizations to identify trends, spot issues with retention early, and measure the effectiveness of employee engagement strategies.

The Formula

To calculate the monthly attrition rate accurately, standard HR practice uses the average headcount for the month as the denominator to account for fluctuations in staffing levels.

Attrition Rate = (Separations / Average Headcount) × 100

Where:

  • Separations: The total number of employees who left the company during the month.
  • Average Headcount: (Headcount at Start of Month + Headcount at End of Month) / 2.

Calculation Example

Let's say a software company wants to calculate their attrition for June:

  • Employees on June 1st: 200
  • Employees on June 30th: 210 (implies net growth despite exits)
  • Employees who left in June: 5

Step 1: Calculate Average Headcount
(200 + 210) / 2 = 205

Step 2: Calculate Rate
(5 / 205) × 100 = 2.44%

This means 2.44% of the workforce left during the month of June.

Annualized Attrition

While the monthly rate tells you what happened in the last 30 days, businesses often look at the Annualized Attrition Rate to compare against industry benchmarks. This is a projection assuming the current month's turnover behavior continues for a full year.

Formula: Monthly Rate × 12

In our example: 2.44% × 12 = 29.28%. This high figure suggests that if the trend continues, the company will lose nearly 30% of its staff by year's end, signaling a need for retention intervention.

What is a "Good" Attrition Rate?

Attrition rates vary heavily by industry. Retail and hospitality often see monthly rates of 3-5% (annualized 30-60%), while finance or technology sectors may aim for monthly rates below 1% (annualized 10-12%). Consistently high monthly attrition can lead to increased recruitment costs, loss of institutional knowledge, and decreased morale.

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