1. What is the Attrition Rate Formula?

The Attrition Rate formula calculates the percentage of employees who leave an organization during a specific period compared to the average number of employees during that same period. It's a key metric for understanding employee turnover.

2. How Does the Calculator Work?

The calculator uses the Attrition Rate equation:

Where:

• Number of Employees Left — Total employees who left during the period
• Average Number of Employees — (Beginning employees + Ending employees) / 2

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

3. Importance of Attrition Rate Calculation

Details: Tracking attrition rate helps organizations understand employee turnover patterns, assess retention strategies, and identify potential problems in workforce management.

4. Using the Calculator

Tips: Enter the number of employees who left during the period and the average number of employees 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 10-15% is considered normal, while rates above 20% may indicate problems.

Q2: How is average number of employees calculated?
A: Typically (Number at start of period + Number at end of period) / 2. Some use monthly averages for more precision.

Q3: What's the difference between attrition and turnover?
A: Attrition refers to natural reduction (retirements, resignations) while turnover includes all departures (including terminations).

Q4: How often should attrition rate be calculated?
A: Most organizations calculate it quarterly or annually, but high-turnover industries may benefit from monthly calculations.

Q5: Can attrition rate be negative?
A: No, since you can't have negative employees leaving. If you get a negative result, check your input values.