How to Calculate Employee Attrition Rate

by Carter McBride; Updated September 26, 2017
Companies prefer a low attrition rate.

Employee attrition rate is also known as employee turnover. This rate shows how often the employees at a place of business change over the course of a month. Usually companies prefer a low attrition rate, but the rates differ based on the industry. For example, a fast food restaurant will have a higher employee turnover compared to a law firm. A lower employee turnover rate allows a company to keep coherence over the year.

Step 1

Determine the amount of employees that left during a month. For example, at Firm A seven employees quit during January.

Step 2

Determine the number of employees in the middle of the month. For example, on January 15, Firm A had 40 employees.

Step 3

Divide the number of employees who left the company by the number of employees in the middle of the month. In the example, seven divided by 40 equals an employee attrition rate of 0.175 or 17.5 percent.

About the Author

Carter McBride started writing in 2007 with CMBA's IP section. He has written for Bureau of National Affairs, Inc and various websites. He received a CALI Award for The Actual Impact of MasterCard's Initial Public Offering in 2008. McBride is an attorney with a Juris Doctor from Case Western Reserve University and a Master of Science in accounting from the University of Connecticut.

Photo Credits