Answer Posted / rajesh kumar

Shrinkage - Absence from work is termed as shrinkage

It has two types
Planned - where employees have informed in prior
Unplanned - where employees haven't informed in prior or wasn't a planned leave or a sudden leave

Example
Team Total =20
Planned Leave = 2
Unplanned Leave = 4

Planned Leave Formula =
Planned Leave / Team Total*100 =(2/20)*100 = 10%

Unplanned Leave Formula =
Planned Leave / (Team Total-Planned Leave)*100
=4/(20-4)*100) = 25%

Total Shrinkage for the day =
Planned Leave + Unplanned Leave / (Total Team - Planned Leave)*100
=2+4)/(20-2)*100 = 33.33%

Attrition
Employees who resign from the work voluntarily or terminated involuntarily are defined as attrited or attrition.

Attrition Terms

Number of attrition - Voluntary + Involuntary in the month
(OHC) Opening Head count - Employees available at the first day of the month
(CHC) Closing Head count - Employees available at the last day of the month, excluding the employees who left the organization

Attrition Formula
Number of Attrition / ((Opening Headcount + Closing Headcount)/2) *100

Example
OHC = 50
CHC = 45
Attrition = 5

Attrition % = 5/((50+45)/2)*100 = 10.52%

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