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Last update : July 12, 2023

What is Attrition Rate?

In business, the most common definition of attrition is the process of deliberately reducing the size of a workforce by not replacing employees when they leave voluntarily (employee attrition),The attrition rate is the percentage of employees leaving the company.

Why Does Employee Attrition Happen?

Problems with management, working conditions, etc. sometimes worsen until they compel some employees to quit—a worst-case scenario that needs to be remedied for the well-being of both employees and employer. But even without such issues, some employee turnover is normal. Workers may voluntarily leave their jobs for a variety of other reasons, including:

  • Finding a better job elsewhere
  • Retirement
  • Moving to another city
  • Illness
  • Death

Employee turnover refers to the frequency with which employees leave a company. It is a common problem that companies experience, and it is important to identify why it occurs.

There are many factors that can contribute to employee turnover. These include poor benefits, inflexible management, and the ethics of a company.

Poor benefits contribute to employee turnover because employees have little reason to remain with a company that does not offer them better benefits. Many employees choose to work for companies that offer better benefits, and when those employees are unhappy they are more likely to leave.

The attrition rate is also known as the turnover rate, but the two are not the same. The turnover rate refers to the number of employees hired and the number leaving the company in a given period of time. Attrition rate refers to the number of employees that leave the company over a given period of time.

When studying the attrition rate, it is important to take note of whether the employees leave voluntarily or involuntarily. Voluntary turnover refers to when employees leave on their own accord because they want to be elsewhere. This is in contrast to involuntary turnover, in which employees are forced to leave the company, either because the company employs too few people to keep them all, or because the employees’ skills are

The attrition rate is the percentage of employees who leave an organization within a given period of time. 

There are a number of reasons why attrition rate are necessary:

– To measure employee satisfaction: If a high percentage of employees are leaving, it could be an indication that they are unhappy with their job or the company.

– To measure the effectiveness of training and development programs: If a high percentage of employees are leaving shortly after completing training programs, it could be an indication that the programs are ineffective.

– To measure the effectiveness of recruitment and retention programs: If a high percentage of employees are leaving, it could be an indication that the company is not doing enough to recruit.


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