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People · business glossary

What is Attrition?

By Shivam Bhandari · Reviewed 31 October 2026 · How we write

definition

The rate at which employees leave a business over a given period, whether voluntarily or not.

Attrition explained

Attrition is the rate at which employees leave an organisation over a period.

formula

Attrition % = Employees who left ÷ Average headcount × 100

example

12 people leaving in a year from an average team of 60 means 20% annual attrition.

why it matters

High attrition raises hiring and training costs and disrupts customers.

common mistake

Only noticing attrition when key people leave, instead of tracking it monthly.

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Frequently asked questions

What is Attrition?

The rate at which employees leave a business over a given period, whether voluntarily or not. Attrition is the rate at which employees leave an organisation over a period.

How do you calculate Attrition?

Attrition % = Employees who left ÷ Average headcount × 100. 12 people leaving in a year from an average team of 60 means 20% annual attrition.

Why does Attrition matter?

High attrition raises hiring and training costs and disrupts customers.

What is a common mistake with Attrition?

Only noticing attrition when key people leave, instead of tracking it monthly.

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