What is Attrition?

What:

Employee attrition is when an employee leaves the company through any method, including voluntary resignations, layoffs, failure to return from a leave of absence, or even illness or death. Whenever anyone ceases working for the company for any reason and is not replaced for a long time (if ever), that would be employee attrition.

Why:

Reasons for attrition, include the lack of professional growth, a hostile work environment, or declining confidence in the company’s market value.

Weak leadership is another factor that often drives attrition among employees.

 

Types of Attrition:

1. Voluntary attrition- This is the most common type of attrition, where employees decide to simply quit their jobs. There can be many reasons for voluntary attrition (more on that later) and most of them are within your control. For example, if a company sees its marketing experts moving out of different business units, it’s a clear cause for concern.

2. Involuntary attrition- In this scenario, it is the company and not the employee that initiates the exit. For example, the employee may have shown instances of misconduct in the workplace – a common reason for involuntary attrition. Structural reasons could also cause attrition. Mergers and acquisitions are often followed by a wave of involuntary attrition.

 

Formulae:

Employee Attrition Rate

Attrition Rate = Number of Attritions/Average Number of Employees x 100

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