What Is Employee Attrition? Plus 6 Ways To Reduce It

Attrition is the departure of employees from the organization for any reason (voluntary or involuntary), including resignation, termination, death or retirement.
  1. To start, find the average number of employees. …
  2. Next, let’s work on an average by month.
  3. Now, consider the number of employees who left unfilled positions over the course of the particular month. …
  4. Next, multiply this average by 100 = 8.42%.

Predict Employee Attrition Using Machine Learning & Python

Employee attrition vs. turnover

Although the terms “employee attrition” and “employee turnover” are frequently used synonymously, they actually refer to two distinct sets of circumstances. Roles that are eliminated, either voluntarily or involuntarily, without being replaced are referred to as attrition. When an employee leaves and the employer decides to fill that position with a new employee, this is known as turnover. After completing the training, the new hire performs the same duties with the same title.

Employee churn is the term used when employee attrition and employee turnover are combined for review. Decision-makers can learn how well they’re retaining employees and how they could improve retention by looking at churn.

What is employee attrition?

The cycle of employee attrition is when team members voluntarily leave the business. Attrition can happen in three ways:

When an employee leaves, the company may decide not to fill the position again, which is a significant component of attrition. They could transfer the responsibilities to other team members or completely remove them.

How to calculate employee attrition

The annual attrition rate calculates the number of employees who left the company during a given year as a percentage of all employees during that same year. The steps listed below can be used to calculate attrition rate if you’re an HR professional or other decision-maker:

Ultimately, this metric can be calculated using the following formula.

Attrition rate is calculated as follows: 100 divided by the number of departing employees.

How to reduce employee attrition

Some attrition and turnover is normal within nearly every company. But lower attrition rates are typically preferable because they frequently indicate that you’re offering a great workplace with competitive pay and benefits. Try these steps if you want to lower employee attrition:

1. Provide detailed job descriptions

Comprehensive job descriptions ensure a targeted and deliberate hiring process. This way, from the very beginning of the interview process, both you and your candidates have a clear understanding of what is expected of them. Employees who are clear about what to expect from their position may feel more fulfilled in it.

2. Ask for referrals

When hiring for a position with particular requirements, ask for referrals from dependable coworkers and other members of your workforce. This raises the possibility of a qualified applicant and fosters trust during the hiring process. Think about implementing a referral bonus program for current staff members. For instance, if they recommend someone who stays with your business for more than 90 days, an employee might get a bonus.

3. Invest in training and onboarding processes

The best way for your business to give new hires the tools they need to succeed is through thorough training. An employee is more likely to feel confident and at ease in their environment over time if they have a thorough understanding of your business, their duties, and their role in the organization. Your employees are more likely to feel valued if you take the time to provide them with knowledge because it is a potent tool.

4. Be present

When workers are aware that their leadership is aware of and appreciative of their efforts, they are much more likely to feel effective in their work. Regularly provide constructive criticism in performance reviews, but also personally check in with your staff to see if they’re enjoying their jobs. Make yourself accessible for any inquiries or worries they may have, and when issues are brought to your attention, work quickly to resolve them.

5. Provide room for advancement

Most professionals seek opportunities for growth. Discuss your employees’ career aspirations with them, and if at all possible, work with them to achieve them. Qualified staff members may be given new opportunities to learn and advance within your company through mentoring, job shadowing, and professional development opportunities.

Offer opportunities to lead new initiatives, take on new responsibilities, and have an impact at work to employees if you don’t often have the chance to promote them. These initiatives can help employees find more satisfaction and purpose.

6. Pay competitively

Having wages and benefits that are competitive with the market is helpful if you want to retain quality employees, who are a commodity. If your business model can’t support comparable pay, come up with innovative ways to reward your staff by giving them more time off or providing them with convenient work from home options. If your company offers benefits that make their lives significantly easier, a good employee might be willing to forego the raise they would receive elsewhere.


What are types of attrition?

There are five types of employee attrition that you need to know of:
  • Attrition due to retirement. …
  • Voluntary attrition. …
  • Involuntary attrition. …
  • Internal attrition. …
  • Demographic-specific attrition.

What is an example of attrition?

Attrition is defined as the natural decrease in the number of employees in a company or as wearing down or wasting away. A cliff face eroding as a result of rain and wind is an illustration of attrition. One army wearing down another during a war is an illustration of attrition.

Why is employee attrition a problem?

The cost of replacing a single employee typically ranges between one-half and two times that person’s annual salary, depending on how talented the worker is. Putting financial concerns aside, companies are better off when they can hold onto talented personnel and the organizational expertise they have.

How do you explain attrition?

When employees retire or resign without being replaced, there is a gradual but intentional decrease in the number of employees. It is frequently used by human resources (HR) professionals to describe downsizing in a company’s employee pool.

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