For example, an employee may choose to leave the finance department and join the HR department if a position opens up.Įxternal: Attrition can also be external if the employee decides to leave the company. Internal: Internal attrition occurs when employees leave their current positions to work in other departments within the same company. There are various types of attrition in business, including: Related: 5 Steps for Managing Attrition and Why It's Important Types of attrition
Some common causes for attrition include: There are a variety of reasons an employee may leave their position. Here is an example of this organization's annual attrition rate:Ġ.15 x 100 = 15% Common causes of attrition During the year, 9 employees left and 15 employees joined. Here is an example of this organization's attrition rate for this quarter:Īn organization began the year with 57 employees. In the first quarter, 25 employees left and 20 employees joined. Here is an example calculation of its monthly attrition rate:Īn organization began the year with 115 employees. 10 employees vacated their positions, and 7 employees joined the company. These example calculations may help you gain a deeper understanding of the concept of attrition: Example 1Īn organization began the month with 100 employees. Related: The Real Turnover Cost of Losing an Employee Example calculations Multiply this result by 100 to convert it to percentage form. This gives you the decimal rate of attrition. Determine the rate of attritionĭivide the number of employees who left during the period by the average number of employees who worked for the company during the period. Related: 20 Strategies for Employee Retention 5. To do this, add the number of employees at the period's beginning to the number of employees at the period's end. Find the average number of employees during the periodįind the average number of employees who worked at the company during the period. Related: 9 Key Employee Retention Metrics To Track 4. This gives you the number of employees who were working for the company at the end of the period. Add this number to your result from the previous step. Next, identify how many employees joined the company during the period. Subtract this number from the number of employees who were working for the company at the beginning of the period. First, identify how many employees left the company during the period. Identify the number of employees at the period's endįind out how many employees you gained and lost during the period. Related: What Is Employee Retention? Definition, Causes and Strategies 3. For example, if no employees left or joined the company during the period, the attrition rate is zero. You can then measure how this number changed to find the rate of attrition. Identify the number of employees who were working for the company at the beginning of the period. Identify the number of employees at the period's beginning
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Related: What Is Attrition? Plus 6 Ways To Reduce It 2.
When choosing a period, make sure to consider external factors that may have impacted employee attrition for that period.
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This could be a single month, a few months, a quarter, a year or a series of years. Choose a time periodĬhoose a time period from the past in which to measure employee attrition.
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Related: 30 Strategies To Help Managers Retain Talent How to calculate attritionīusinesses can calculate attrition rates on a monthly, quarterly or yearly basis to understand how many employees they've maintained, on average, over a period, using the following formula:Īttrition rate = (Number of employees who left during the period) / (Average number of employees who worked for the company during the period)
Those who calculate attrition typically express it as a percentage of the total workforce of the business.
The loss of employees may be due to resignations, terminations, retirement or other factors. Employee attrition is a metric that measures the number of employees a business loses over time.
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