How to Calculate Your Company’s Attrition Rate

calculate attrition rate

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:

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.

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