Formula to Calculate Avg Annual Attrition Rate

1. While calculating the attrition formula both confirmed and probationary employees are considered.
2. Yes, absconding employees are also considered. Attrition is calculated for all the employees who leave the organisation irrespective of the reason..whether absconded or terminated etc.
3. There are thre formulae used for attrition calculation: Monthly Attrition Rate, Annual Attrition Rate and Annualised Attrition Rate.

Monthly Attrition = (No. of Employees left in Current Month/Avg Headcount)*100

{Average HC = (Employee Strength at the Start of the month+Employee Strength at the end of the month)/2 }

Annualised Attrition: Incase of Annualised attrition calculation, based on the current attrition trend, the prospective annual attrition is calculated. e.g, if we are calculating annualised attrition for June, then,

Annualised Attrition= (Sum of employees left in last 6 months)*(12/N)/(Avg HC of last 6 month)
N is number of month, here it is 6 since June is 6th month of an year.

When the above formula is used at the end of the year..the rate is called as Annual Attrition as it gives actual attrition of the specific year.

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