What is Attrition Rate and How to Calculate it Easily

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What is Attrition Rate and How to Calculate it
Easily?
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• Are you facing employee turnover issues recently
  and thinking about how to solve this problem?
  First of all, it is a common problem we all face
  for days, but there are unique ways to resolve
  them. Have you heard of checking the workplace
  attrition rate? Is it balanced or do you have to
  do some work on it?
• Checking the employee attrition rate is
  mandatory. If the rate of staff turnover is
  detected as high, then you need to bring some
  changes immediately. Else, productivity and
  company growth are affected.
• In this blog, we are talking about what employee
  attrition is, how you calculate the employee
  attrition rate, the benefits of understanding the
  attrition rate, and more.

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What is the Attrition Rate?

• Attrition rate is a measuring tool that
  identifies the ratio of employees who resign from
  organisations voluntarily or involuntarily. It
  also represents the percentage of loyal customers
  of which employee leaves the company.
• It is a key indicator that calculates the pace at
  which people leave a company. It measures how
  many people or employees leave, voluntarily or
  involuntarily. Additionally, it helps track
  average employment duration, and competitive
  compensation, detects the cost of requirements,
  training, and exit interview, and maintains
  customer base and marketing. HRs can measure the
  attrition rate monthly, quarterly or annually to
  monitor progress.
• With a clarified attrition rate, an organization
  can figure out how things are going at a company.
  It provides a clear image of the companys
  ultimate growth and productivity.

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• What is Customer Attrition Rate?

• What is the Employee Attrition Rate?

• The employee attrition rate, also known as the
  employee turnover rate, is a metric used to
  measure the percentage of employees who leave a
  company during a certain period.
• It is an important metric for businesses to
  monitor because high employee turnover can be
  costly in terms of recruitment, training, and
  lost productivity.

• The customer attrition rate, also known as the
  customer churn rate, is a ratio that is used to
  measure the percentage of customers who stop
  doing business with a company during a certain
  time.
• Losing customers haphazardly is a kind of
  horrifying thing for upbringing a companys
  productivity. It is expensive as it cost more to
  deal with new customers than to retain existing
  ones. It also creates a business graph with
  long-lasting employees.

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• How do you Calculate the Attrition Rate Using the
  Attrition Rate Formula?

• To calculate the annual employee attrition rate,
  You can put the number of attrition divided by
  the average number of employees and then just
  multiply the number by 100. Here is the formula,
•  
•  
• Attrition rate No. of attrition/Average no. of
  employees 100
•  
• But there is confusion that how to measure the
  number of employees attrition or how to
  calculate the attrition rate specifically. Lets
  discuss this in detail.

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• ?Attrition Number Formula, and Calculations
• Lets take an example of the attrition rate
  formula and how to calculate the attrition rate.
  Suppose you have 200 employees at the beginning
  of 2023, and you like to calculate the attrition
  rate yearly. Then you have to collect the number
  of employees who leave. Lets take the number as
  10 and 16 employees are hired.
• For calculating the attribution rate for the year
  2023, first, you need to subtract the left
  employee number (10) from the overall number
  (200) then add the number of hired ones(16).
• 200 10 190
• 180 16 196
• Then, add the number of employees at the start of
  the period to the total
• 200 196 396
• For the average, you have to divide the number
  (396) by 2
• 396 / 2 198 
• ?Attrition Rate Calculation
• The number of employees who left/ The employee
  average arrival (10 / 198 0.0505)
• Finally, multiply the decimal by 100 to get the
  rate of attrition in percentage
• 0.0505 x 100 5.05

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• Full Article on our page here
• https//www.pockethrms.com/blog/attrition-rate/

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