While wear and tear has become a common knowledge, especially when dealing with various assets, attrition could also become easily grasped if properly understood.
What is Attrition?
Attrition in its simplest explanation is the gradual reduction of something, which is often caused by natural causes, repetitive actions or otherwise. When something decreases or reduces in number, intensity, or size for a time, it is described as attrition.
This is a term that is associated with different fields for different purposes. In human resources where various vital functions are required for the growth, development, and productivity of the organisations, attrition in this sense refers to the measurement or percentage of employees who leave an organisation within a specific period of time.
As highlighted, attrition is not peculiar to just one field, it extends across various fields. In an educational setting where the number of students enrolled dips over the course of the entire session attrition is said to have taken place.
Generally, attrition can be evident or measured through various limitations such as the decline of memories, cognitive abilities, and skills in psychology; the erosion or weathering of rocks, soil, or other environmental factors as reported in the news globally since the beginning of the year.
With the decline recorded in various forms, the implications of attrition can be significant, meaning it is critical that attrition is understood and managed properly in order to mitigate losses, optimise resources, and achieve set goals.
How to Calculate Attrition Rate?
Calculating attrition rate is done without complications when the form in which it is about to be utilised for is identified. Since attrition doesn’t apply to a particular or specific field, calculating losses is applicable generally.
For instance, if the attrition rate for an organisation is about to be calculated, the number of employees who have left for a specific period would be put into consideration. Better still, the number of people who have left a system or group would also determine how attrition is calculated. Other contexts in which this could apply is employee turnover, student dropout rates, etc.
So, if we use XYZ corporations as an illustration, it would mean that calculating the attrition rate is subject to what exists at the organisation. You can also try it using any company or institution of your choice.
Attrition Rate for XYZ Corporations
No. Of individuals who left / total number of individuals at the beginning of the period
x 10050 / 100 x 100= 50
We got our answer (50) by calculating the number of individuals who left XYZ Corporations and divided it by the number of individuals who were at the beginning of the period, then multiplied it by 100.
For other organisations, the numbers would be different, but you can still get the rate for attrition when you follow the method highlighted in this example.
