Attrition Metrics
The challenge of finding, attracting, developing and retaining the right talent is taking up a major part of management and once the right talent is found the next demanding job is to retain that talent
Hence the following gains importance
Describe the scope, intensity and cost of attrition.
Determine the risk of attrition.
Identify the level and cost of turnover and benchmarking it against competitors
Attrition:
Number of employees who left in the year / average employees in the year x 100.
Thus,
if the company had 1,000 employees in April 2006,
2,000 in March 2007, and 300 quit in the year, then the average employee strength is 1,500 and attrition is 100 x (300/1500) = 20 percent.
Method for Monthly attrition & Annualized attrition...
Monthly = Actual Attrition Numbers / average (open headcount & close headcount) *100
Yearly attrition % = Total attrition numbers of last 12 month / ( average headcount of last 12 month) *100
Different perspectives of Attrition
Recruiter’s perspective
Recruiter is bothered about the following aspects since he is the person who carried out the process of “procureing”, “processing” and finally assigning the role by matching the person with the job
• Turnover rate
• Quality of hire
• Person – Job fit / Person – Organisation fit
• New hire failure rate
• Manager satisfaction
• Succession planning
• Salary expectation / market rate Recruiting Head’s perspective
Weighted turnover rate – employee performance – Top level employees
Succession planning by department
Attrition by department
Headcount by department
Critical terminations and open positions list
Decline in productivity
Higher overtime – sign of attrition risk
Absenteeism – sign of attrition risk
Give away or take away ratio
List of hi-performing employees that are at risk of leaving
Strategic perspective
SHRM requires the HR department to its contribution to the business in order to play
Hence the following gains importance
Describe the scope, intensity and cost of attrition.
Determine the risk of attrition.
Identify the level and cost of turnover and benchmarking it against competitors
Attrition:
Number of employees who left in the year / average employees in the year x 100.
Thus,
if the company had 1,000 employees in April 2006,
2,000 in March 2007, and 300 quit in the year, then the average employee strength is 1,500 and attrition is 100 x (300/1500) = 20 percent.
Method for Monthly attrition & Annualized attrition...
Monthly = Actual Attrition Numbers / average (open headcount & close headcount) *100
Yearly attrition % = Total attrition numbers of last 12 month / ( average headcount of last 12 month) *100
Different perspectives of Attrition
Recruiter’s perspective
Recruiter is bothered about the following aspects since he is the person who carried out the process of “procureing”, “processing” and finally assigning the role by matching the person with the job
• Turnover rate
• Quality of hire
• Person – Job fit / Person – Organisation fit
• New hire failure rate
• Manager satisfaction
• Succession planning
• Salary expectation / market rate Recruiting Head’s perspective
Weighted turnover rate – employee performance – Top level employees
Succession planning by department
Attrition by department
Headcount by department
Critical terminations and open positions list
Decline in productivity
Higher overtime – sign of attrition risk
Absenteeism – sign of attrition risk
Give away or take away ratio
List of hi-performing employees that are at risk of leaving
Strategic perspective
SHRM requires the HR department to its contribution to the business in order to play