When it comes to business, data is always important. In the world of HR and managing talent, one of the most important pieces of data you need to keep track of concerns your employee turnover: how often are staff leaving your organization?
Controlling your turnover rate is one of the most important ways an HR department can affect the bottom line. Once you know your turnover or churn rate, you’ll be able to find out why people are leaving and develop relevant and effective retention strategies to keep your employees happy and prevent them from jumping ship.
A quick and easy formula to calculate attrition rate
A simple formula for figuring out your employee attrition rate is dividing the number of full-time employees who have left per month (called “separations”) by the average number of employees, and then multiplying that figure by 100.
To summarize, the formula is: attrition rate = (# of separations / Avg. # of employees) x 100. You can also calculate year-to-date and annual attrition rates by adding all 12 months together.
Further reading on how to lower your attrition rate
Once you calculate the attrition rate, you’ll want to reduce it as much as possible. Here are some related articles to help pinpoint your attrition causes and develop a comprehensive and effective retention strategy:
- Causes of a high attrition rate and how to reduce it
Explore some common causes of high attrition rates, including a lack of recognition, no opportunities for job growth, and a toxic work environment. We also explore some solutions such as encouraging real-time feedback and creating an inclusive culture.
- Develop a holistic strategy to fight the Great Resignation
Many common retention tactics, like attractive salaries and benefits, don’t work because they are quick fixes. We explore what leads to employee attrition and how to ensure that people are satisfied with their work, their experience, and their relationships at the company.
- Keep your people happy with the work that they do
Staffing associates for projects and managing resource distribution at professional services firms is a difficult and layered process. Associates want quality work and exposure to different kinds of projects. They will leave if firms can’t give them the opportunities and experience they crave.
- Foster employee engagement and nurture wellbeing in your organization
Employee engagement is the key to holding on to great people, from your new hires to your long-term professionals. Learn how to facilitate communication, feedback, wellbeing, and growth in your organization.
- Ensure equal opportunities for diverse individuals
With diverse staff reporting up to 4x higher attrition rates than non-diverse staff, it’s clear something is going wrong post hire. Explore some reasons why diverse individuals may fall through the cracks or feel as if they aren’t receiving enough advancement opportunities.
- Support employee growth with professional skills development
Firms don’t just need top-notch talent, they need to help their employees develop their skills and grow. Giving employees the right projects and stretch assignments can help them build new skills and foster meaningful mentor relationships.
Curb high employee attrition with the right tools
vi’s intuitive suite of software modules are designed to help you prevent employee attrition and create a culture of growth, communication, and appreciation. With our advanced tools supporting your HR strategies, you’ll be equipped to give modern employees what they want, helping you reach your organizational objectives while achieving a low attrition rate.