What is Attrition Rate

What is Attrition Rate?

Published on April 30th, 2023



Attrition rate is one of the key metrics that every recruiter should know. Simply put, attrition rate refers to the percentage of employees who leave a company over a set period. Attrition rate is vital to any business because it impacts recruitment, employee morale, and overall company culture. Therefore, understanding the concept and measuring attrition rate is essential for every HR or Recruitment department of a company. In this post, we will understand what an attrition rate is, how to calculate it, and its impact on recruitment.

Attrition rate is the representation of the number of employees who leave an organization over a specific period. A high attrition rate indicates a negative impact on a company's performance, which includes lost productivity, decreased efficiency, low employee morale, and potentially high costs. On the other hand, a low attrition rate represents a stable and engaged workforce, which means a thriving company.

To calculate the attrition rate, divide the number of employees who left the organization during a specific time period (usually a year) by the total number of employees on the payroll at the beginning of the period. For example, if 80 employees left the company out of 400 employees at the start of the year, the attrition rate would be 20%.

High attrition rates create significant challenges like a negative impact on the organization's bottom line. The recruitment process becomes difficult, leading to less engagement, fewer applicants, increased training costs, and decreased productivity. The negative impact can be visible, such as the cost of hiring and training new employees, but there is an even more significant consequence—the loss of valuable experience and knowledge from the departing employees.

By understanding the reasons for employee turnover, recruiters can take proactive measures to retain top talent. For example, by analyzing exit interviews or engagement surveys, recruiters can address the issues which lead to high attrition rates, stress, or lack of job satisfaction.

A low attrition rate provides several advantages, like demonstrating the effectiveness and stability of a company, allowing recruiters to focus on strategic hiring and growth, and retaining market reputation in an industry. A low attrition rate also boosts employee morale and engagement, leading to fewer disruptive career transitions and greater workplace satisfaction.

How to Reduce Attrition Rates?

Reducing attrition, or employee turnover, is a common objective for organizations seeking to maintain a stable and productive workforce. One approach to addressing attrition is by targeting the root causes, and sourcing the right people is a crucial factor in this endeavor.

Automating the candidate sourcing process can have a significant impact on reducing attrition rates. EasySource, an automated talent sourcing tool, is designed to assist recruiters in finding and engaging relevant candidates. It incorporates ChatGPT technology, enabling recruiters to send highly personalized messages to candidates and identify individuals who are an ideal fit for their organization.

In summary, EasySource has the potential to be a valuable solution for organizations grappling with high attrition rates. By streamlining and optimizing the candidate sourcing process, it helps companies locate the right talent and improve their chances of retaining them.


Attrition rate is a vital metric in measuring the turnover of an organization's employees. The rate plays a significant role in recruiting, employee morale, and overall company culture. Employers should focus on maintaining a low attrition rate by identifying the reasons why employees are leaving and taking proactive measures to increase employee engagement and job satisfaction. As a recruitment professional, you should measure the attrition rate and focus on developing effective recruitment methods to help attract, engage, and retain top talent.





Radhika Sarraf

Radhika Sarraf is a content specialist and a woman of many passions who currently works at HireQuotient, a leading recruitment SaaS company. She is a versatile writer with experience in creating compelling articles, blogs, social media posts, and marketing collaterals.

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