Attrition Rate Calculator

Calculate employee turnover rates and estimate the cost impact on your organization.

Calculate Your Attrition Rate Calculator

Attrition Analysis

Attrition Rate (per year)

10.00%

Estimated Replacement Cost

$500,000

Your attrition rate is below industry average, which is good!

What is Attrition Rate?

Attrition rate, also known as employee turnover rate, measures the rate at which employees leave a company during a specific period. It's typically expressed as a percentage of the total workforce and is a critical HR metric that provides insights into organizational health and employee satisfaction.

How to Calculate Attrition Rate

The formula to calculate attrition rate is:

Attrition Rate (%) = (Number of Employees Who Left ÷ Initial Number of Employees) × 100

For example, if a company started the year with 500 employees and 50 left during the year, the annual attrition rate would be (50 ÷ 500) × 100 = 10%.

Types of Attrition

  • Voluntary Attrition: When employees choose to leave the organization.
  • Involuntary Attrition: When employees are terminated or laid off.
  • Retirement: When employees leave upon reaching retirement age.
  • Internal Attrition: When employees change positions within the organization.

The Cost of Attrition

Employee attrition can have significant costs for organizations, including:

  • Recruitment Costs: Advertising positions, screening candidates, conducting interviews.
  • Onboarding Costs: Training and integrating new employees.
  • Lost Productivity: New employees typically take time to reach full productivity.
  • Knowledge Loss: Departing employees take their experience and expertise with them.
  • Impact on Morale: High turnover can affect the morale of remaining employees.

Improving Employee Retention

If your organization is experiencing high attrition, consider these strategies:

  • Conduct exit interviews to understand why employees are leaving.
  • Offer competitive compensation and benefits packages.
  • Create clear career pathways and development opportunities.
  • Foster a positive workplace culture and work-life balance.
  • Recognize and reward employee contributions.
  • Provide regular feedback and performance evaluations.

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Frequently Asked Questions

While attrition rates vary by industry, a general benchmark is that an annual rate below 10% is considered good, 10-20% is average, and above 20% is concerning. However, these benchmarks can vary significantly across industries, company sizes, and economic conditions.

Attrition and turnover are often used interchangeably, but there can be slight differences. Turnover typically includes all departures, while attrition sometimes refers specifically to positions that are not replaced. In practical HR analytics, most companies use these terms to mean the same thing: the rate at which employees leave.

Internal transfers are typically not included in attrition calculations as they don't represent a loss to the organization as a whole. However, some companies track departmental attrition, which would include transfers out of a specific department, even if the employee remains with the company.

For deeper insights, segment your attrition rate by factors like department, tenure, job level, performance rating, demographic groups, and reason for leaving. This can help identify specific areas needing attention and develop targeted retention strategies.

Annual calculations are most common for strategic planning, but quarterly or monthly calculations can provide more timely insights for industries with higher turnover. Choose a timeframe that gives you meaningful data without being skewed by short-term fluctuations.

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