Numbers are important. In the world of HR and talent management, one of the most important numbers you need to keep track of concerns employee turnover: how often are staff leaving your organization?
Controlling turnover is one of the most important ways an HR department can affect the bottom line.
Once you know your turnover (or attrition) 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.
Calculate attrition rate with this formula
We calculate attrition rate by 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:
Attrition rate = (# of separations / Avg. # of employees) x 100
You can calculate year-to-date and annual attrition rates by adding all 12 months together.
Further reading on how to reduce your attrition rate
Most companies want to reduce employee turnover as much as possible. Here are some articles to help you develop a comprehensive (and effective!) retention strategy:
- What causes a high attrition rate and how can you reduce it?
- Why popular retention strategies are not enough
- Fight tech industry attrition with these 5 retention steps
- How to enhance employee wellbeing to avoid attrition
- Could an internal gig economy reduce attrition at your company?
Curb high employee attrition with the right tools
vi’s intuitive suite of talent management modules are designed to help you reduce 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 preventing a high attrition rate.