How To Calculate Attrition Rate In Excel?
Published on April 30th, 2023
As a recruiter, keeping track of employee turnover and attrition is crucial to maintain a healthy workforce. Attrition rate, also known as employee turnover rate, is a metric used to measure the number of employees who leave a company during a specified period. Calculating the attrition rate using Excel has several benefits, including easier data organization, visual representation, and faster calculations. In this blog post, we will teach you how to correctly calculate attrition rate using Excel and using this valuable metric to make informed recruitment decisions.
Determine the time frame - To calculate an attrition rate, you must first determine the time frame for which you want to calculate. This can be any given period, such as a month, a quarter, or a year. However, it would be more accurate to choose a period that aligns with your reporting cycles. For instance, if you report turnover rates to the company yearly, the time frame for calculating the attrition rate should be a year as well.
Collect employee data - To accurately calculate the attrition rate, you must collect data about employees who have left the company during the defined period. This data could be in the form of signed resignation letters, exit interviews, or termination documents. Once you've collected this data, you can move on to the next step.
Calculate the total number of employees - Before calculating the attrition rate, you need to know the number of employees at the beginning and end of the defined period. You can do this by tracking hires and departures using an Excel spreadsheet. For instance, If you started the year with 100 employees and ended the year with 85 employees, you will have to use these numbers in the next step.
Calculate the attrition rate - To calculate the attrition rate, use the following formula:
Attrition rate = (Number of employees who left / Average number of employees in the period) x 100
Using the example from Step 3, if 15 employees left during the year, the formula would be:
Attrition Rate = (15 / ((100 + 85) / 2)) x 100 = 8.57%
This means that your company's attrition rate is 8.57%.
Analyze the data - Now that you know how to calculate the attrition rate, the next step is to analyze the data. A high attrition rate can indicate issues with employee satisfaction, compensation, or company culture. Whereas a low attrition rate hints at employee loyalty and satisfaction.
How to Minimize your Attrition Rate?
Reducing attrition is crucial for maintaining a stable workforce, and one effective approach is to source the right people from the start. By automating the recruitment process with tools like EasySource, recruiters can find and engage with relevant candidates, leading to a decline in attrition rates. With hyper-personalized messaging and ChatGPT, EasySource can help companies discover talent that is the right fit for their organization and reduce employee turnover.
Calculating attrition rate can be challenging, but using Excel is a great way to simplify the process. Recruiters can use this valuable metric to identify areas for improvement and make informed decisions about recruitment, employee retention, and other HR initiatives. Remember, tracking your attrition rate regularly can provide you with a deeper understanding of your workforce and guide you in making data-driven decisions that will benefit your company in the long run.
Radhika Sarraf is a content specialist and a woman of many passions who currently works at HireQuotient, a leading recruitment SaaS company. She is a versatile writer with experience in creating compelling articles, blogs, social media posts, and marketing collaterals.
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