Talent Sourcing

How To Calculate Employee Attrition Rate?

Published on April 30th, 2023

Employee attrition is one of the biggest worries for any organization. The loss of talent can be a significant setback for the company and knowing how to calculate the attrition rate is the first step in understanding this issue. In this blog post, we will take you through the steps to calculate the employee attrition rate and why it is important for recruiters.

What is Employee Attrition Rate?

Employee attrition rate is the percentage of employees who leave the company in a certain period. This can be calculated monthly, quarterly, or yearly. Attrition includes both voluntary and involuntary separations and can happen due to various reasons like retirement, termination, redundancy, resignation, or end of a fixed-term contract. It is important to calculate the attrition rate to understand the rate of employee turnover and the cost associated with it.

Why is Employee Attrition Rate Important For Recruiters?

Employee attrition rate is essential for recruiters in two ways. Firstly, it shows the health of the current workforce. A high attrition rate indicates that the employees are dissatisfied and may be looking for better opportunities. Secondly, it gives an insight into the cost of recruiting, hiring, and training new employees, which can have a considerable impact on the company's finances. By calculating the employee attrition rate, recruiters can get a clear picture of the organization's future hiring needs and make informed decisions.

How to Calculate Employee Attrition Rate?

The formula to calculate the employee attrition rate is:

Attrition rate = (Number of employees who left/average number of employees during the period) x 100

For example, if your organization had 100 employees at the beginning of the year and 20 left during the year, the attrition rate would be (20/((100+((100+20)/2))/2))x100 = 20%.

It is important to note that when calculating the average number of employees, consider all the employees who worked during the period, including those who started or left during that time. The attrition rate can be calculated for different periods like monthly, quarterly, or yearly, depending on the organization's needs.

What is a Good Employee Attrition Rate?

A good attrition rate varies by industry and job sector. In general, a low attrition rate is desirable, indicating a stable and satisfied workforce. However, a zero attrition rate is not always a good sign as it might indicate a lack of growth or opportunities. The ideal attrition rate depends on the organization's goals and culture, and it is important to benchmark the rate against the industry standards to get a clear picture.

How to Avoid Attrition at Organizations?

Reducing attrition, which is a common objective for organizations aiming to maintain a stable and productive workforce, requires addressing the root causes of the problem. One effective approach is to focus on sourcing the right people from the start.

Automating the candidate sourcing process can significantly contribute to a decline in attrition rates. Tools like EasySource, an automated talent sourcing tool, empower recruiters to efficiently discover and engage with relevant candidates. By utilizing features like embedded ChatGPT, recruiters can send highly personalized messages that resonate with potential candidates and identify individuals who are an ideal fit for their organization.

In this way, EasySource serves as a valuable solution for organizations grappling with high attrition rates. By streamlining the candidate sourcing process and enhancing the quality of candidate interactions, it helps companies find and attract individuals who are more likely to remain committed and engaged in the long run. With the right talent in place, organizations can cultivate a stable workforce and foster a productive work environment.


Knowing how to calculate the employee attrition rate is crucial for recruiters to make informed hiring decisions. The formula to calculate the attrition rate is straightforward, and it is important to use it for different periods to get an accurate picture. While a low attrition rate is desirable, it is essential to benchmark it against industry standards and take measures to ensure employee satisfaction and engagement. By calculating the attrition rate regularly, recruiters can identify the areas that need attention and make data-driven decisions.



Radhika Sarraf

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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