Which date needs to be taken into consideration for calculating Attrition?Date of Resignation or Date of Leaving?

Hi Team,

I work in the education industry. I am currently working on an Attrition report where we have cases such as absconding, termination, and leaving without serving notice period. I have a question regarding calculating the percentage to define for the HR calendar year.

Kindly assist me with this.

Thank you.

The attrition rate represents the trend of employees leaving an organization for various reasons. When the frequency becomes frequent, there is a cause for worry, especially when the educated, talented, trained, and hard-working lot creates such vacancies. The organization suffers and shoulders the burden of finding suitable replacements. Since attrition is the effect of the vacuum created by leaving employees, it has to be the 'date of persons actually not available to carry out the routine' work. However, it's practical for an organization to commence the process of finding a replacement from the date the resignation is reached by the organization. So, the date should be reckoned from the date of resignation/termination, irrespective of the notice period involved.

Dear Preethi,

Attrition is of two types, namely voluntary and involuntary. The cases of absconding and resignation that you mentioned belong to voluntary attrition, while termination at the instance of the employer belongs to involuntary attrition. Another instance is the natural termination of employment, such as retirement upon reaching the age of superannuation.

Regardless of its type, the effective date is the actual date of separation due to the termination of the employment contract. In the case of resignation, it is the exact date of formal relief, not the date of submitting the resignation or the effective date mentioned therein. This is because its acceptance can be postponed by the employer, or the employee may withdraw it before it is accepted.