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Calculating Employee Attrition

The document discusses how to calculate employee attrition rates. Employee attrition refers to the percentage of employees who leave an organization each year due to reasons like retirement, resignation, or dismissal. The attrition rate is calculated by taking the number of employees who left during the year divided by the average number of employees. The average is calculated by adding the number of employees at the start of the year to the number at the end of the year and dividing by two. Two examples are provided to demonstrate how to calculate attrition rates using these formulas.

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71 views9 pages

Calculating Employee Attrition

The document discusses how to calculate employee attrition rates. Employee attrition refers to the percentage of employees who leave an organization each year due to reasons like retirement, resignation, or dismissal. The attrition rate is calculated by taking the number of employees who left during the year divided by the average number of employees. The average is calculated by adding the number of employees at the start of the year to the number at the end of the year and dividing by two. Two examples are provided to demonstrate how to calculate attrition rates using these formulas.

Uploaded by

Prochetto Da
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© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Calculating Employee Attrition The Number Game

Employee Attrition is one of the methods of Wastage Analysis. Wastage refers to the severance from the organization due to voluntary retirement, normal retirement, resignations, deaths & dismissals.

What is Employee Attrition?

Employee Attrition indicates the number of employees who have left as a percentage of the average number of employees.

The average number of employees employed in a given time period is decided by adding the employees at the beginning and end & then dividing the same by two.

What is Employee Attrition?

Number of Employees Leaving

Average Number of Employees Employed

100

Formulae - Employee Attrition

At the beginning of the year, A Company has 150 employees, while at the end it has 135. There is no recruitment during the year.
Number of employee leaving: 150-135=15 Average number of employees in A Company: 150+135/2=142.5

Example 1 Employee

Employee Attrition: 15/142.5*100=10.53%

Example 1 Employee

At the beginning of the year, A Company has 150 employees, while at the end it has 135. A Company has recruited 10 employees during the year.
Number of employee leaving: 150+10-135=25 Average number of employees in A Company: (150+10)+135/2=147.5

Example 2 Employee

Employee Attrition: 25/147.5*100=16.95%

Example 2 Employee

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