Attrition
The rate at which employees leave an organization over a given period.
Also: employee turnover · staff churn
Definition
Attrition, also called employee turnover, is the rate at which employees leave an organization—voluntarily or involuntarily—over a specified period, typically expressed as a percentage of the average workforce. It is a key workforce health metric and is categorized as voluntary (resignation), involuntary (termination or redundancy), or regrettable (loss of high performers). High attrition increases recruitment and training costs and negatively impacts team morale and productivity.
Example
“The IT company's annual attrition rate of 28% was significantly above the industry average of 18%, costing an estimated ₹5 crore annually in recruitment and lost productivity.”
Usage Examples
- 1
“The company's annual attrition rate climbed to 22%, prompting an urgent review of compensation and career development offerings.”
- 2
“High attrition in the customer service team was costing the company ₹2 crore annually in replacement and training costs.”
When & How to Use
Use when tracking the rate at which employees leave an organisation (voluntarily or involuntarily) over a given period.
- ▸Calculating attrition cost to justify investment in employee engagement programmes
- ▸Analysing attrition patterns by department, tenure, or level to identify retention risks
- ▸Setting attrition-reduction targets as a KPI for HR business partners
Etymology & Origin
Latin 'attritio' (a rubbing away). Originally a theological term; adopted in HR from military usage meaning gradual reduction in force strength.
History & Evolution
Workforce attrition became a strategic HR concern during the post-WWII economic boom. The Great Resignation of 2021–22 brought unprecedented attrition rates globally, with India's IT sector recording rates exceeding 28% per annum at peak.
Synonyms
- employee turnover
- staff turnover
- churn
- employee churn
Antonyms / Opposites
- retention