The five numbers every plan needs
- Target headcount by team at the end of the period.
- Current headcount by team today.
- Expected exits: current headcount × expected attrition rate for the period.
- Time to fill: how many weeks it takes to hire for each role type.
- Cost per hire and annual cost per role.
The core formula
Hires needed = (Target headcount − Current headcount) + Expected exits
If attrition is 18% a year and the team has 200 people, 36 people are expected to leave. A plan to grow from 200 to 240 therefore needs 76 hires, not 40.
Template columns
| Column | What to enter | Formula or source |
|---|---|---|
| Team / role family | e.g. Backend engineering | — |
| Level | e.g. SDE-II | Your job architecture |
| Location | e.g. Pune | — |
| Current headcount | Today | HRIS |
| Target headcount | End of period | Business plan |
| Expected attrition % | For this team and city | History or forecast |
| Expected exits | — | Current × attrition % |
| Hires needed | — | (Target − Current) + Exits |
| Time to fill (weeks) | e.g. 8 | ATS history |
| Start hiring by | — | Need date − time to fill |
| Annual cost per head | CTC plus overheads | Pay benchmarks |
| Replacement cost | — | Exits × replacement factor × CTC |
| Total annual cost | — | Headcount cost + replacement cost |
Worked example
An example only; substitute your own numbers.
- Engineering in Pune: 200 people today, target 240, expected attrition 16% a year.
- Expected exits = 200 × 16% = 32. Hires needed = 40 + 32 = 72.
- With a time to fill of 8 weeks, roles needed by 1 July must be opened by early May.
- If average CTC is ₹15L and replacement costs 0.5× CTC, replacement alone costs 32 × 0.5 × ₹15L = ₹2.4 crore a year.
Scenarios worth modelling
- Attrition up or down 3 points: how many extra hires and how much extra cost?
- Location mix: the same plan in a metro versus a Tier 2 city. See choosing a Tier 2 city.
- Pay position: moving from P50 to P60 for a critical team, against the attrition it may prevent.
Keep it current
Review the plan monthly against actual hires and exits, and re-forecast quarterly. The biggest source of error is usually the attrition assumption, so update it with real data as the year progresses.
Model it with live data
Try the free attrition cost calculator for a quick estimate, or see how Kynoa supports workforce planning for CFOs and FP&A teams with attrition forecasts and city-level costs.