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attrition-analysis-on-the-hr-department

The rate of attrition or the inverse retention rate is the most commonly used metric while trying to analyze attrition. The attrition rate is typically calculated as the number of employees lost every year over the employee base. This employee base can be tricky however. Most firms just use a start of year employee count as the base. Some firms calculate it on a rolling 12 month basis to get a full year impact. This ratio becomes harder to use if your firm is growing its employee base. For example, let's say on Jan 1st of this year there were 1000 employees in the firm. Over the next 12 months we've lost 100 employees. Is it as straight forward as a 10% attrition rate. Where it gets fuzzy is how many of those 100 employees that were lost were in the seat on Jan 1st. Were all the 100 existing employees as of Jan 1st or were they new hires during the year that termed. Hence the attrition rate must be looked at in several views.