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. - Why popular retention strategies are not enough
Many common retention strategies, like attractive salaries and benefits, don’t work because they are quick fixes. We explore what motivates people to leave jobs and how strategies can be effective when implemented over a long period of time. - Fight tech industry attrition with these 5 retention steps
The tech industry is a very competitive job market. To keep attrition rates low, employers can recruit with retention in mind, provide clear paths for advancement, stay ahead of the curve with HR tools, and more.
- Could an internal gig economy reduce attrition at your company?
A lack of opportunity is a major reason employees leave. An internal gig economy can give employees the chance to help with projects outside of their department, like if a product developer wants to test their creative skills on a marketing project. - The link between customer experience and employee experience
The customer and employee experience are more connected than companies expect. Not only do long-term employees perform better for customers, but having the tools and support to better serve customers will satisfy your employees.
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.