What is Attrition Rate?

Attrition rate refers to the rate at which employees leave a company over a specific period of time, usually expressed as a percentage of the total workforce. This can include employees who resign voluntarily, retire, or are terminated by the company.

A high attrition rate can indicate a number of underlying issues, such as poor job satisfaction, lack of career development opportunities, or inadequate compensation and benefits. It can also be a costly issue for employers, as they may need to invest resources into recruiting and training new employees to fill the positions left by departing employees.

Employers may track attrition rates to monitor employee turnover and identify any patterns or trends. They may also use this data to develop strategies to reduce attrition and retain valuable employees, such as improving employee engagement, offering competitive compensation and benefits, and providing opportunities for career development and advancement. A low attrition rate can be a positive indicator of a healthy and stable workforce.

How to calculate the Attrition Rate?

Employee attrition rate can be calculated by a simple mathematical formula. Wondering why it is important to calculate the employee attrition rate.

Well…it is important because employee attrition analysis shows why your employees are unhappy and leaving at an alarming rate and what you can do to manage employee attrition.

The simple formula for calculating employee attrition rate is

Attrition Rate = (Number of attritions /Average Number of Employees) x100