Attrition rate

What is attrition rate?

Attrition rate is the percentage of employees who leave an organization over a given period. It is the standard measure of how much of your workforce you are losing, and how quickly.

Attrition and turnover are often used interchangeably. Where a distinction is drawn, turnover covers all departures including those you replace, while attrition is more often used for positions left unfilled, or for natural departures such as resignation and retirement rather than dismissal.

How to calculate attrition rate

The standard formula is:

Attrition rate = (leavers in the period ÷ average number of employees in the period) × 100

If you averaged 500 employees over a year and 60 people left, your annual attrition rate is 12 percent. Work out average headcount by taking the opening figure plus the closing figure, divided by two.

Split the number before you draw any conclusions from it. Voluntary and involuntary attrition mean completely different things, and so does attrition among first year employees compared with long tenured staff.

What counts as a healthy attrition rate

There is no universal benchmark. Rates vary enormously by sector, and hospitality or retail will always run far higher than manufacturing or public administration. The useful comparisons are your own trend over time and your own figure against your own sector, not a number quoted in an article.

Some attrition is also healthy. A rate near zero can signal stagnation rather than an excellent place to work.

Where training comes in

Attrition is usually treated as an HR metric, but two of its most common drivers sit close to L&D. The first is a poor start. People who feel lost, unsupported or unprepared in their first weeks disengage early, which is why onboarding shows up so often in first year attrition figures.

The second is the absence of a visible path. When people cannot see how they grow where they are, they go looking for growth somewhere else. Neither problem is solved by training alone, but both get measurably worse without it.

Frequently asked questions

How do you calculate attrition rate?

Divide the number of leavers in a period by the average number of employees in that period, then multiply by 100. Average headcount is the opening figure plus the closing figure, divided by two.

What is a good attrition rate?

There is no universal benchmark, because sectors differ enormously. Compare your own trend over time and your figure against your own sector. A rate near zero is not automatically good, as it can signal stagnation.

What is the difference between attrition and turnover?

They are often used interchangeably. Where a distinction is drawn, turnover covers all departures including those you replace, while attrition refers more often to positions left unfilled or natural departures.