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Separations as a percentage of average headcount for the period, with a simple annualised figure for comparing months and quarters.
Attrition rate measures how many people left relative to the size of the workforce. The usual formula divides separations in a period by the average of opening and closing headcount.
This attrition rate calculator gives the rate for the period you enter and scales it to a twelve-month figure, so a quarter can be compared with a year. Decide in advance whether you count voluntary exits only or all exits, and keep it consistent.
Enter your figures, then press Calculate
Your 4 inputs become a full breakdown, with every step of the working shown beneath the headline figures.
Separations over average headcount, the most widely used definition. Because definitions vary, the working shows each number so you can reconcile it with any other report.
Attrition rate = Separations ÷ ((Opening headcount + Closing headcount) ÷ 2) × 100 · Annualised = Period rate × 12 ÷ Months in period
Everyone whose employment ended in the period, or only voluntary leavers if that is the measure you report. Transfers between entities in the same group are usually excluded.
Opening plus closing headcount, divided by two. For a long period with large swings, averaging the month-end headcounts is more accurate.
Separations over average headcount gives the period rate. Multiplying by twelve over the number of months gives a simple annual equivalent.
What this does not include
Asked often enough about this calculation to be worth answering beside it.
Separations in the period divided by average headcount for the period, multiplied by 100. Average headcount is usually opening plus closing headcount divided by two.
Report both if you can. Total attrition includes terminations and retrenchments; voluntary attrition counts only resignations and is the better measure of retention. Use the same definition every period.
A simple method multiplies the monthly rate by twelve, which this calculator does. A more exact method adds the twelve actual monthly rates, or divides the year's separations by the year's average headcount.
The words are often used interchangeably. Some organisations use turnover for all exits including those that are backfilled, and attrition for roles that are not replaced. State your definition when you report the number.
A calculator applies a rule to figures you type in. A payroll run applies it to your actual employee record, your locations and your verified declarations, which is where Professional Tax, LWF and TDS also resolve.
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