What is attrition

Last updated: April 1, 2026

Quick Answer: Attrition refers to the gradual reduction in a population, workforce, or customer base through natural causes such as resignation, retirement, or customer churn, rather than through involuntary termination or replacement.

Key Facts

Overview

Attrition is the process of workforce reduction that occurs through natural means rather than deliberate layoffs. When employees leave their positions and are not replaced, the organization experiences attrition. This concept applies to various contexts including employee turnover, customer retention, and resource depletion.

Employee Attrition

In human resources, employee attrition measures the rate at which employees leave an organization. It is calculated as the number of employees who leave divided by the average number of employees during a period, expressed as a percentage. High employee attrition disrupts operations, reduces productivity, and increases costs associated with recruitment and training new staff.

Types of Attrition

Impact on Organizations

High attrition rates create significant challenges for businesses. They result in increased costs for hiring and training, loss of institutional knowledge, reduced team morale, and potential service disruptions. Organizations with high attrition often experience lower productivity and decreased customer satisfaction.

Reducing Attrition

Companies can minimize attrition through competitive salary structures, professional development opportunities, positive workplace culture, flexible work arrangements, and recognition programs. Regular employee engagement surveys help identify issues before employees decide to leave. Mentoring programs and clear career paths also improve retention rates.

Related Questions

What is a good employee attrition rate?

A healthy attrition rate is typically 10-15% annually across industries. Rates below 10% may indicate limited career growth opportunities, while rates above 20% suggest potential management or compensation issues that need addressing.

What is the difference between attrition and turnover?

Attrition is the reduction of workforce through departures without hiring replacement positions, while turnover includes both departures and replacements. Turnover is typically higher because it counts new hires filling vacant positions.

How is attrition different from turnover?

Attrition refers to natural workforce reduction without replacement, while turnover includes all employee separations including replacements. Attrition reduces headcount while turnover may maintain it through new hires.

What is a good attrition rate?

Generally, an attrition rate of 10% or below is considered healthy, though it varies by industry. Tech and hospitality sectors average 20-25%, while government and education average 5-10%.

What causes high employee attrition?

Common causes include poor management, inadequate compensation, limited career advancement, work-life balance issues, and lack of recognition. Industry trends and economic conditions also influence attrition rates significantly.

How do you calculate employee attrition?

Divide the number of employees who left during a period by the average number of employees, then multiply by 100. For example, 24 departures / 200 average employees = 12% annual attrition rate.

More What Is in Daily Life

Also in Daily Life

More "What Is" Questions

What is my ip locationWhat is iron lung movie aboutWhat is dvoa in footballWhat is isekai animeWhat is rjx trainWhat is nzu called in englishWhat is tms therapyWhat is qbr in businessWhat is squash vegetableWhat is jbr in dubaiWhat is kql syntaxWhat is rust programmingWhat is .cx domainWhat is qatar airwaysWhat Is ELI5 how do we differentiat the sounds that we hear

Trending on WhatAnswer

How Does GPS Workdifference between ai and mlHow To Start a BusinessDifference Between HTTP and HTTPSHow Does the Stock Market WorkHow To Learn ProgrammingDifference Between LLC and CorporationDifference Between Virus and BacteriaCan you increase your iqIs it safe to invest in bonds

Browse by Topic

ArtsBusinessDaily LifeEducationFoodGeographyHealthHistoryLanguageLawMathematicsNaturePoliticsPsychologyScienceSpaceSportsTechnology

Browse by Question Type

Can YouDifference BetweenDoesHow DoesHow ToIs ItWhat CausesWhat DoesWhat IsWhen WasWhere IsWho IsWhy DoWhy Is

Sources

  1. Wikipedia - Attrition (Human Resources) CC-BY-SA-4.0
  2. Investopedia - Attrition Definition CC-BY-4.0