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    Glossary›Attrition
    Glossary · Metric

    What is Attrition?

    Definition

    Attrition is the rate at which employees leave an organization voluntarily or involuntarily. It is typically expressed as a percentage of the average workforce over a period (e.g., annual attrition rate). Attrition includes resignations, retirements, and terminations. High attrition signals organizational issues; understanding attrition by role and reason is essential for targeted retention.

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    Turnover RateEmployee DepartureWorkforce ChangesOrganizational HealthCost ImpactAttrition
    In short

    Attrition at a glance.

    Calculated as (Separations / Average Headcount) × 100 over a period
    Includes voluntary resignations, retirements, and involuntary terminations
    Industry averages vary widely; tech ~13%, retail ~30%, professional services ~10%
    Analyze by role, tenure, and reason to identify patterns and address root causes

    Understanding Who Leaves and Why

    Attrition is a leading indicator of organizational health and must be analyzed, not just tolerated. A company with 20% annual attrition may face constant onboarding, lost productivity, and culture disruption. Exit interviews reveal whether departures are due to pay, management, lack of growth, or external factors. Addressing root causes—improving management, creating development paths, competitive compensation—reduces attrition more effectively than retention bonuses alone.

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    Attrition — frequently asked

    5-10% annual is generally healthy, allowing natural transitions and new ideas while maintaining continuity. Above 15% signals problems. Rates above 30% indicate serious organizational issues (poor culture, management, pay) requiring intervention.

    No. Some turnover brings fresh perspectives and removes poor performers. Losing top performers and high-potentials is bad; losing chronic underperformers is acceptable. Focus on attrition composition, not just rate.

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