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How to Calculate Attrition Rate Monthly
Calculating your monthly attrition rate is a fundamental HR metric that helps organizations understand the rate at which employees are leaving the workforce. Unlike turnover, which often includes the filling of positions, attrition specifically focuses on the reduction of the workforce due to resignations, retirements, or terminations that are not immediately replaced.
Tracking this metric on a monthly basis allows Human Resources departments to identify trends early, assess the impact of culture changes, and predict future hiring needs before they become critical issues.
The Monthly Attrition Rate Formula
The standard industry formula for calculating monthly attrition relies on the average number of employees during that specific month. It provides a percentage representing the portion of the workforce that departed.
Attrition Rate = (Separations / Average Number of Employees) × 100
To use this formula effectively, you must first calculate the Average Number of Employees for the month using this sub-formula:
Average Employees = (Headcount at Start of Month + Headcount at End of Month) / 2
Step-by-Step Calculation Example
Let's look at a realistic example to clarify the process.
- Step 1: Determine Start Count. Suppose your company started September with 200 employees.
- Step 2: Determine End Count. During September, you hired 5 people but lost 10 people. Your ending count is 195.
- Step 3: Calculate Average. (200 + 195) / 2 = 197.5 average employees.
- Step 4: Count Separations. You had 10 separations (employees leaving).
- Step 5: Apply Formula. (10 / 197.5) × 100 = 5.06%.
In this scenario, the monthly attrition rate is 5.06%.
Why Monthly vs. Annual Calculation?
While annual attrition rates give a high-level overview of organizational health, monthly calculations are actionable. They help you answer specific questions:
- Did a specific event (e.g., return-to-office mandate) cause a spike in resignations?
- Is attrition seasonal (e.g., higher in December or after bonus payouts)?
- Are retention strategies implemented last month working?
Interpreting Your Results
A "good" attrition rate varies by industry. For example, retail and hospitality often see monthly rates between 3-5%, while technology and finance sectors usually aim for lower rates around 1% per month (approx. 12-13% annually). If your calculator results show a monthly rate consistently above 2%, it may indicate underlying issues in employee satisfaction, compensation, or management.
Use the Projected Annual Attrition result in the calculator above to see what your yearly turnover would look like if the current month's trend continues. This is calculated simply as: Monthly Rate × 12.
function calculateAttrition() {
// Get input values
var startCountStr = document.getElementById('startHeadcount').value;
var endCountStr = document.getElementById('endHeadcount').value;
var separationsStr = document.getElementById('separations').value;
// Parse values to float
var startCount = parseFloat(startCountStr);
var endCount = parseFloat(endCountStr);
var separations = parseFloat(separationsStr);
// Validation
if (isNaN(startCount) || isNaN(endCount) || isNaN(separations)) {
alert("Please enter valid numbers for all fields.");
return;
}
if (startCount < 0 || endCount < 0 || separations < 0) {
alert("Headcounts and separations cannot be negative.");
return;
}
// Calculate Average Headcount
var avgHeadcount = (startCount + endCount) / 2;
// Prevent division by zero
if (avgHeadcount === 0) {
document.getElementById('avgCountResult').innerHTML = "0";
document.getElementById('monthlyRateResult').innerHTML = "0.00%";
document.getElementById('annualRateResult').innerHTML = "0.00%";
document.getElementById('resultsDisplay').style.display = "block";
return;
}
// Calculate Monthly Attrition Rate
// Formula: (Separations / Average Headcount) * 100
var monthlyRate = (separations / avgHeadcount) * 100;
// Calculate Annualized Rate
// Formula: Monthly Rate * 12
var annualRate = monthlyRate * 12;
// Update DOM with results
document.getElementById('avgCountResult').innerHTML = avgHeadcount.toFixed(1);
document.getElementById('monthlyRateResult').innerHTML = monthlyRate.toFixed(2) + "%";
document.getElementById('annualRateResult').innerHTML = annualRate.toFixed(2) + "%";
// Show results container
document.getElementById('resultsDisplay').style.display = "block";
}