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.
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.
Related terms
Employee engagement
The degree to which employees feel invested in and motivated by their work, beyond simply showing up.
Exit interview
A structured conversation with a departing employee to understand why they're leaving and what could be improved.
Churn rate
The percentage of customers who stop buying or cancel their subscription over a given period.