Dear friends, Pl find attached file containing details about all aspects of attrition as contributed by some friend. Regards,
From India, Malappuram
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1446From India, Malappuram
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thanks for sharing the valid info, but I would like to notify you that there is a mistake in 2005 attrition report for January, it should b 11.43% instead of 5.71%. Thanks
From Kuwait, Kuwait
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From Kuwait, Kuwait
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Hi Agar,
Your presentation is good. Let me explain your doubt on attrition analysis.
Say, an employee A drawing 12500/- resigned and has to be replaced by Emp B. Now you placed an Ad for 20,000/- and even then you did not close the position for reasons of technical or salary. So you approach a consultancy.
Emp B joins on 13500/- after much negotiation. As a result of attrition, now the monthly salary is increased by 1000/-. So overall shoot-up per annum is 12000/- more.
If this Emp B was placed by an agency, then the placement cost is 13500. Now the overall added cost of attrition is Rs.12000 + 13500 + 20000 = 45500. Got it?
For a replacement of Rs. 1,50,000/-, you have spent 45,500/- per candidate per year. If you divide this expense (Ad + Extra sal + Agency), it comes to Rs. 3800 pm. If you didn't release the Ad and use the Agency, then the expense is Rs. 2150/- pm. This you could have given to Employee A and retained him.
Say, if Emp B is not okay with the company environment and yet to catch up with online production. The rate of expense on this head increases daily.
Now calculate the Time/Cost wasted by HR guys (Manager + Extv) and Tech guys (Manager + Prodn Extv) in selecting candidates through a newspaper Ad. At last failed. Now add the time consumed to coordinate with the placement agency and follow-ups.
So while calculating the attrition, you have to calculate all direct and indirect figures also which is tricky. Calculation needs all details to work out to the minute level.
This is the reason why the HR department has to pay importance for Retention. In reality, this is not happening to our satisfaction.
Regards,
Chandru
Chennai
From India, Madras
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Your presentation is good. Let me explain your doubt on attrition analysis.
Say, an employee A drawing 12500/- resigned and has to be replaced by Emp B. Now you placed an Ad for 20,000/- and even then you did not close the position for reasons of technical or salary. So you approach a consultancy.
Emp B joins on 13500/- after much negotiation. As a result of attrition, now the monthly salary is increased by 1000/-. So overall shoot-up per annum is 12000/- more.
If this Emp B was placed by an agency, then the placement cost is 13500. Now the overall added cost of attrition is Rs.12000 + 13500 + 20000 = 45500. Got it?
For a replacement of Rs. 1,50,000/-, you have spent 45,500/- per candidate per year. If you divide this expense (Ad + Extra sal + Agency), it comes to Rs. 3800 pm. If you didn't release the Ad and use the Agency, then the expense is Rs. 2150/- pm. This you could have given to Employee A and retained him.
Say, if Emp B is not okay with the company environment and yet to catch up with online production. The rate of expense on this head increases daily.
Now calculate the Time/Cost wasted by HR guys (Manager + Extv) and Tech guys (Manager + Prodn Extv) in selecting candidates through a newspaper Ad. At last failed. Now add the time consumed to coordinate with the placement agency and follow-ups.
So while calculating the attrition, you have to calculate all direct and indirect figures also which is tricky. Calculation needs all details to work out to the minute level.
This is the reason why the HR department has to pay importance for Retention. In reality, this is not happening to our satisfaction.
Regards,
Chandru
Chennai
From India, Madras
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