Brainteaser: formula to calculate annual rate of attrition...
Posted by rm on February 15, 2002 11:50 AM
Can anyone come up with a formula to calculate a company's monthly and annual accumulated turnover rate percentage (and help solve a difference of opinion between myself and my boss)? For example:
in January 2001, a company had 60 employees and
lost 0; in February, the company had 63 employees
and lost 2, etc...
What's the formula for monthly turnover%, then the accumulated annual percentage up to that month? I am using " =M5/N5 " to calculate that month's turnover%, (where M5 is terminated employees and N5 is the total number of employees). Then to calculate the annualized turnover rate% up to that month, I am using " =AVERAGE('array') " (where 'array' is the range of each month's turnover% up to that month--e.g. Jan-May). My boss says that this second formula is not correct and to use " =(M5/N5)*12 " for every month and also at to figure end of the year%(?!?)
I really think this is wrong, but please correct me if I am in the wrong...I appreciate any insight and help...thank you in advance...rm