Attrition, in Human Resource terminology, refers to the phenomenon of the employees leaving the company. Attrition in a company is usually measured with a metric called attrition rate, which simply measures the no of employees moving out of the company (voluntary resigning or laid off by the company). Attrition Rate is also referred as churn rate or turnover.
Attrition Rate Formula
Attrition rate refers to the rate at which employees are leaving an organization. Attrition rate can be calculated as:
Attrition Rate (%)= (Number of separations/ Number of employees) * 100
Attrition rate gives an idea as to how many employees are leaving the company at any given time period. It is an important factor as companies have to prepare to start recruiting for the positions which are critical and cannot be left vacant.
Follow