What is the Attrition Rate card?
Get the data to anticipate turnover, act to retain key employees and recruit new ones way ahead of time.
Studies show that many people leave their jobs for similar reasons, such as lack of development, poor leadership or culture. Paying attention to the basics and cultivating an environment people want to work in starts with objectively measuring how you are doing.
How to use the Attrition Rate card
1. Calculate your current attrition rate using this formula:
Annual Attrition Rate =
(# of Leavers/# of Employees) × 100
So if you had 40 people leave a team of 200 people in one year, your calculation would be:
(40/200) × 100
Annual Attrition Rate = 20%
If your attrition rate is nearing 20%, this could indicate problems. According to Monster, the average attrition rate in the UK is 15%, but for some disciplines – like design – it is often higher.
2. To unearth problems, run a Health Monitor.
• Keep people motivated with Goal, Signal, Metric.
• Track your attrition rate monthly.
• Split your rate into categories such as voluntary (employee chose to leave) and involuntary (employee dismissed).
• Keep a close eye on specific groups leaving by recording, gender, ethnicity and age.