Attrition Rate Calculator

Use this Attrition Rate Calculator to calculate the quarterly, half-yearly, and annual attrition rates in your company.

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Understand your turnover instantly

How to use the Attrition Rate Calculator

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Enter employee data

Input the total employees at the start and end of the period, along with the number of employees who left. These details are essential for an accurate attrition rate calculation.

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Click ‘calculate’ and get results

Click the ‘Calculate’ button to instantly see the attrition rate.

Attrition rate 1

What is attrition rate?

The attrition rate is the percentage of employees who leave your organization compared to the total number of employees during a specific period. This metric helps you understand the workplace culture, employee job satisfaction, and whether your compensation is fair.

Attrition rate calculator formula

Attrition rate = (Number of employees who left / Average number of employees) x 100

Where:

Number of employees who left: The total number of employees who left during the period.

Average number of employees: The average number of employees during the period, which can be calculated as:

Formula for average number of employees = (Employees at the start of the period + Employees at the end of the period) ÷ 2

This formula gives you the percentage of employees who left the organization during the period.

How to calculate the attrition rate?

Imagine your company had 150 employees at the start, 140 employees at the end, and 18 employees left during the quarter.

Step 1: Calculate the average number of employees

Formula:
Average Number of Employees = (Employees at the start of the period + Employees at the end of the period) ÷ 2

Calculation:
Average Number of Employees = (150 + 140) ÷ 2 = 290 ÷ 2 = 145

Step 2: Calculate the attrition rate

Formula:
Attrition Rate = (Number of employees who left ÷ Average number of employees) × 100

Calculation:
Attrition Rate = (18 ÷ 145) × 100 ≈ 12.41%

Explanation:

  • Employees who left: 18 employees left during the quarter.
  • Average number of employees: 145 employees on average during the quarter.

The attrition rate is 12.41%, meaning about 12.4% of your employees left during the quarter.

Related: What is the attrition rate & what does it mean for HR

How does the attrition rate calculator help your business?

You’re mistaken if you think there’s no need to calculate the attrition rate. Tracking your company’s attrition rate can provide valuable insights into various aspects of your business, helping you make informed decisions and improve your organization.

Here’s why you need to calculate the attrition rate:

  1. Understand employee retention: The attrition rate helps you understand how well your company retains employees. A high attrition rate could indicate job satisfaction, work culture, or compensation issues, which must be addressed to retain talent.

A high attrition rate is usually over 20%. However, it is important to note that your company’s or industry’s high attrition rate could vary. If your attrition rate is over 20%, research what is considered high for your industry and company size before focusing on ways to reduce it.

  1. Identify problems early: Regularly calculating your attrition rate can help you spot trends or patterns early on. If your attrition rate spikes, it may indicate underlying problems such as poor management, lack of growth opportunities, or low morale. Addressing these issues promptly can prevent further losses.
  1. Assess workplace culture: Employee turnover often directly reflects workplace culture. A high attrition rate might suggest that employees are unhappy or disengaged, prompting you to evaluate company culture, leadership, and employee engagement efforts.
  1. Measure HR strategy effectiveness: Calculating your attrition rate can help you measure the effectiveness of your HR strategies, such as recruitment, employee development, and retention programs. If your strategies are working well, the attrition rate should be lower. If not, it might be time to adjust your approach.
  1. Improving hiring practices: If your company experiences high turnover, it may be time to review your hiring processes. Analyzing the attrition rate can help identify if employees leave because they are not a good fit for the job or the company, allowing you to refine your recruitment and onboarding processes.
  1. Cost management: High attrition rates can be costly due to expenses related to hiring, training, and onboarding new employees. By tracking attrition, you can take proactive steps to reduce turnover, thus saving the company money in the long run.

Frequently asked questions (FAQs)

To calculate the attrition rate, you can use the following formula:
Attrition Rate = (Number of separations / Average number of employees) x 100

A 10% attrition rate means that for every 100 employees, 10 staff members leave the company over a year

A 20% attrition rate is generally considered high, depending on your industry and company size. You must check the onboarding process if your new hire’s attrition rate is above 15% in the first 6 months of employment.

Employee attrition is the reduction of the workforce through any form of separation, resignation, or retirement. To prevent a high attrition rate, a clear job description, a positive workplace culture, an effective recruitment process focusing on skills, and exceptional employee engagement are ways to ensure a high attrition rate.