Team & Efficiency
Attrition Rate
Attrition Rate, also known as turnover rate, measures the percentage of employees who leave an organization over a specific period, whether voluntarily or involuntarily. It is crucial for assessing employee retention and organizational stability.
HOW TO MEASURE
Attrition Rate is calculated by dividing the number of employees who have left during the period by the average number of employees during that period, then multiplying by 100 to express the result as a percentage.
HOW TO IMPROVE
Enhance Onboarding and Training: Provide comprehensive training and a welcoming onboarding process to help new hires integrate into the company culture.
Improve Employee Engagement: Foster an engaging work environment where employees feel valued and part of the company.
Offer Competitive Benefits and Compensation: Ensure that benefits and compensation are competitive within the industry to retain talent.
Conduct Exit Interviews: Use insights from exit interviews to understand why employees leave and address these issues.
Focus on Career Development: Offer opportunities for career advancement and professional growth to keep employees motivated and committed.
FORMULA
Attrition Rate = ( Number of Employees Leaving / Average Number of Employees ) × 100%
EXAMPLE
If a company starts the year with 100 employees, hires 20 more during the year, and 15 employees leave during the same period, the average number of employees would be: Average Number of Employees=100+(100+20)=110 Attrition Rate=(15/110)×100%≈13.64%
DEPARTMENT USAGE
Human Resources (HR): Manages recruitment, retention, and overall employee relations.
Leadership: Uses this information to assess organizational health and strategic workforce planning.
All Managers: Relevant for managers at all levels to understand the dynamics within their teams and work towards improving employee retention.
Attrition Rate is an essential metric for organizations to monitor and manage, as it can significantly impact the company’s culture, operational continuity, and overall productivity.
View the collection of Metrics Workshops.