How To Calculate Attrition Rate Monthly

Monthly Attrition Formula:

\[ \text{Monthly Attrition} = \left( \frac{\text{Leavers}}{\text{Average Employees}} \right) \times 100 \]

Monthly Attrition (%):

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1. What is Monthly Attrition Rate?

Monthly attrition rate measures the percentage of employees who leave an organization during a specific month. It's a key HR metric used to track employee turnover and assess workforce stability.

2. How Does the Calculator Work?

The calculator uses the monthly attrition formula:

\[ \text{Monthly Attrition} = \left( \frac{\text{Leavers}}{\text{Average Employees}} \right) \times 100 \]

Where:

\( \text{Leavers} \) — Number of employees who left during the month
\( \text{Average Employees} \) — Average number of employees during the month
\( 100 \) — Conversion to percentage

Explanation: The formula calculates the proportion of employees who left relative to the average workforce size, expressed as a percentage.

3. Importance of Attrition Rate Calculation

Details: Monthly attrition rate helps organizations monitor workforce trends, identify retention issues, plan recruitment strategies, and assess the impact of employee turnover on business operations and costs.

4. Using the Calculator

Tips: Enter the number of employees who left during the month and the average number of employees for that month. Average employees is typically calculated as (starting employees + ending employees) ÷ 2.

5. Frequently Asked Questions (FAQ)

Q1: What is considered a good monthly attrition rate?
A: Industry standards vary, but generally rates below 2-3% monthly are considered healthy, while rates above 5% may indicate retention problems.

Q2: How is average employees calculated?
A: Average employees = (Number of employees at start of month + Number of employees at end of month) ÷ 2

Q3: What's the difference between attrition and turnover?
A: Attrition refers to employees leaving voluntarily (retirement, resignation), while turnover includes all departures (including terminations and layoffs).

Q4: When should attrition rate be a concern?
A: When it exceeds industry benchmarks, shows consistent upward trends, or affects critical business functions and team performance.

Q5: How can companies reduce attrition?
A: Through competitive compensation, career development opportunities, positive work environment, effective management, and employee engagement initiatives.