Attrition Rate

What is Attrition Rate?

Attrition Rate, also known as employee turnover rate, is the percentage of employees who leave an organization during a specific time period. It reflects the organization's ability to retain employees and is a critical metric for analyzing workforce stability and employee satisfaction.

Types of Attrition:

  • Voluntary Attrition: Employees leave the organization by choice (e.g., resignations, career change).

  • Involuntary Attrition: Employees leave due to organizational decisions (e.g., layoffs, terminations).

  • Internal Attrition: Employees move to other departments or roles within the same organization.

  • Demographic Attrition: Employees from specific demographics (e.g., age, gender, seniority) leave at a higher rate.

Causes of High Attrition:

  • Poor employee engagement or satisfaction.

  • Lack of career growth opportunities.

  • Ineffective leadership or management.

  • Poor work-life balance.

  • Inadequate compensation or benefits.

  • Toxic workplace culture.

Attrition Rate, also known as employee turnover rate, is the percentage of employees who leave an organization during a specific time period. It reflects the organization's ability to retain employees and is a critical metric for analyzing workforce stability and employee satisfaction.

Formula to Calculate Attrition Rate:

Attrition Rate (%)=(Number of Employees Who Left During the Period​ / Average Number of Employees During the Period)×100

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