Page 33 - DRG HR HANDBOOK- Nikita Pillay

areas. It also ensures better employee-job fitment. But if a For example, if you have 90 employees at the beginning
specific department has witnessed a high rate of attrition of the year and 110 at the end of the year, 90 + 110 = 200.
one year, it merits an investigation.
Dividing that result by two shows you had an average of

5. DEMOGRAPHIC-SPECIFIC ATTRITION 100 employees during the year.
This is a significant concern for progressive companies If 20 employees left during the year, dividing 20 by 100
trying to build an equal-opportunities workplace. shows the attrition rate is .2, which is 20 percent.
Demographic-specific attrition means that employees
BEST PRACTICES TO REDUCE EMPLOYEE
from a single group – women, ethnic minorities, people
with disabilities, veterans, or older professionals – are ATTRITION RATE
leaving the company in droves.
The average employee attrition rate varies significantly
WHAT IS THE EMPLOYEE ATTRITION RATE? between companies and industries.
There is an apparent downside to attrition – your
The employee attrition rate is a measure of how many left
workforce shrinks in size, you lose out on valuable
a company compared to the average number employed
product/domain knowledge, and you risk damaging
that year. This is reflected in a simple equation:
your employer brand.
(Number of Attritions/Average Number of Employees)
x 100. It is therefore important to note the following:

An employee attrition rate is a measurement of employee ƒ When hiring, be sure new employees not only have the
turnover over a specific time period, typically one year. necessary skills to do the job but are also a good fit for
It helps employers know whether they are doing a good
your culture.
job retaining their talent in times when downsizing isn’t
ƒ Make sure your compensation package is competitive.
necessary or desirable.
ƒ Survey employees regularly, and then use their
Here are the steps to calculate an annual employee
feedback to make changes that will increase their
attrition rate:
job satisfaction.
1. Determine your average number of employees during
ƒ Assess for job and culture fitment right at the time
the year. To do this, add the number of employees at
of hiring
the beginning of the year to the number of employees
ƒ Offer learning and employee development opportunities
at the end of the year, then divide by two.
to accelerate career growth
2. Divide the number of employees who left voluntarily
during the year by the average number of ƒ Regularly solicit feedback on employee satisfaction
employees you calculated in the first step. questions
3. The result is the attrition rate, which is generally ƒ Conduct detailed interviews after an employee has
expressed as a percentage. exited to spot attrition trends

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