1. What is Employee Attrition Rate?

The employee attrition rate measures the percentage of employees who leave an organization over a specific period. It's a key HR metric that helps organizations understand employee turnover and retention patterns.

2. How Does the Calculator Work?

The calculator uses the attrition rate formula:

Where:

• Number of Departed Employees — Employees who left during the period
• Average Number of Staff — (Starting staff + Ending staff)/2 or monthly average

Explanation: The formula calculates what percentage of your workforce left during the measured period.

3. Importance of Attrition Rate Calculation

Details: Tracking attrition helps organizations identify retention problems, calculate hiring needs, and understand the costs associated with employee turnover.

4. Using the Calculator

Tips: Enter the number of employees who departed during the period and the average number of staff during that same period. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's a good attrition rate?
A: This varies by industry, but generally 10% or less is considered healthy, while rates above 20% may indicate problems.

Q2: How often should attrition be calculated?
A: Most organizations calculate it monthly, quarterly, and annually to track trends.

Q3: What's the difference between attrition and turnover?
A: Attrition refers to employees leaving without being replaced, while turnover includes all departures (whether replaced or not).

Q4: Should voluntary and involuntary attrition be separated?
A: Yes, analyzing voluntary resignations separately from terminations provides better insights.

Q5: How does attrition rate affect business?
A: High attrition increases recruiting/training costs, reduces institutional knowledge, and can impact morale and productivity.