Employee attrition, a significant metric for organizational health, can be readily assessed using spreadsheet software. Specifically, the methodology involves dividing the number of separations during a defined period (typically a month, quarter, or year) by the average number of employees during that same period, then multiplying the result by 100 to express it as a percentage. For example, if a company with an average of 100 employees experiences 10 departures within a year, the annual attrition is (10/100)*100 = 10%.
Tracking this key performance indicator offers numerous advantages. It allows for the identification of trends, enabling proactive intervention to address underlying issues such as dissatisfaction or lack of growth opportunities. Monitoring this metric provides insights into the effectiveness of talent management strategies, recruitment processes, and overall workplace culture. Historically, a high incidence was often disregarded; however, contemporary human resources management recognizes its direct correlation to productivity, morale, and ultimately, profitability.
