Talent Analytics: Attrition Rate, Meaning and Tips to Improve It

Recruitment Made Easy

Attrition Rate

As per the Cambridge dictionary, the word attrition can be described as : “Attrition is the process of gradually making something weaker and destroying it”. Employee attrition almost follows the same definition.

Well, almost!

Employee attrition is the decrease of staff when employees leave the association and their replacement is not found yet.

So would you be able to see the similarity between the meaning of the word attrition and employee attrition per se? 

The association is commonly weakened by the loss of staff. The term has a negative implication to it. 

This is obvious in the professional world. Actually, there is a recipe for calculating employee attrition.

As much as certain organizations love to change overnight for different reasons, individuals leaving the organization is never an easy change to grasp. As a business, individuals leaving your firm for a superior job opportunity could cost you time and effort in getting someone to fill the vacant opening. At the point when individuals will in general leave the organization, it implies that you are either not giving them space to extend their ideas – or just, their compensation isn’t sufficient. 

Be that as it may, gaining new talents is exorbitant – both in money and time. Recruitment specialists may have a few headaches from experiencing the way toward prospecting for different employees. Returning to the attrition rate, this can be calculated efficiently once every year calculated efficiently once every year.

What is Attrition Rate?

Otherwise called a churn rate, an organization’s attrition rate is the rate at which individuals leave the business. In somewhat more intricate terms, the attrition rate is the quantity of individuals who have left the organization divided by the normal number of employees over some undefined time frame communicated as a percentage rate. 

The idea of attrition covers voluntary attrition (when employees leave) involuntary attrition (when individuals are terminated), internal attrition (when individuals move within the organizations) and demographic specific attrition (when individuals from a particular ethnic gathering, sex, sexual direction, age-gathering or capacity level leave). The most concerning sorts of attrition are voluntary and demographic-specific attrition.

To compute the attrition rate, you first need to know the specific number of attritions (previous employees that left that specific year). After this, you’ll have to know the normal number of employees – including the ones who left. When you get the number, basically separate the quantity of attrition with the normal number and employees and duplicate the outcome by 100. Go show signs of improvement see, the estimation should resemble this:

Number of Attritions= Average Number of Employees X 100 = Attrition Rate

Employee Attrition VS Employee Turnover

Both employee attrition and employee turnover refers to the speed with which an organization gets past its staff. Both cost you as far as time and cash, in any case, employee attrition is as a rule outside your ability to control, though you can effectively work to restrain employee turnover. 

Employee attrition alludes to the lifecycle of your workforce: it isn’t ordinarily a negative portrayal of the organization. Employees move away, die or resign; they could leave to raise a family or return to class. In any case, whatever their explanation behind leaving your organization isn’t on the grounds that they have an issue with you, it is simply a consequence of life occurring. 

Be that as it may, when undesirable employee attrition happens, this is typically an aftereffect of the organization cutting back, battling monetarily or changing course. 

In the two cases, the position is probably not going to be filled once more. 

Employee turnover, then again, could be a consequence of poor recruiting choices or even an unfriendly or oppressive workplace. Employee turnover generally applies to those individuals from staff who left the organization because of end, taking an occupation they regard better, or on the grounds that they accepted they couldn’t develop or assist their profession with your organization.

Employee turnover is defined as, the number or percentage of employees who leave an organization and are replaced by new employees.

With regards to human resource management, turnover or staff turnover or labor turnover is the rate at which a business loses employees. It shows the timeframe that the employees tend to stay. Turnover is evaluated for individual organizations and for their industry all in all. In case that a business is said to have a high turnover relative to its rivals, it implies that employees of that organization have a shorter tenure than those of different organizations in a similar industry. High turnover might be destructive to an organization’s profitability if talented laborers are regularly leaving and the worker population contains a high level of understudy apprentice workers. 

Employee turnover, or employee turnover rate, is the estimation of the number of employees who leave an association during a predefined timespan, regularly one year. While an association for the most part quantifies the complete number of employees who leave, turnover can likewise apply to subcategories inside an association like individual departments or demographic groups.

Here are some effective employee attrition methods which employers can utilize in order to keep employees content and be part of their organization instead of looking for work opportunities elsewhere.


Training your employees can strengthen their sense of value. Through proper training, employers assist and thus they can help employees to achieve their own goals and hence ensure they have a strong understanding of their job requirements.


A strong mentoring program incorporated with a goal-oriented feedback system provides a structured execution for developing strong relationships within an organization and is a concrete foundation for employee retention and their growth. With the help of a mentoring program, an organization pairs up someone more experienced in a discipline with someone little experienced in a similar area, with the goal to develop exceptional competencies and design a personalized career development plan.

Bring a positive culture.

A company should establish a periodical set of values because of the basis for basic cultures such as honesty, excellence, devotion, attitude, respect, and teamwork. A company that creates that right culture will always have an advantage when it comes to attracting and keeping good employees.

Provide growth opportunities.

An organization should provide free workshops, software training sessions, or other tools to help employees increase the understanding of their own growth and what they want from their careers and enhance their goal-oriented scope. It’s important to provide employees with satisfactory job challenges that will expand their skills in their field. According to the Right Management, an employee is more likely to stay engaged and committed to their organization which makes investments in their employees and their career development.

Make employees feel valued.

Employees will go towards the extra mile if they really feel responsible for the results of their work and have a sense of self-worth in their jobs, they believe their jobs make good use of their skills and acquire recognition for their contributions. Employees should be rewarded at a broad level to motivate even higher performance. Even a few of the things as simple as a free lunch can go a long way towards making employees feel valued. Listen to your employees and ask for their valuable inputs as to what rewards might work best for your organization. Lower stress from overworking load and create work/life balance. Encouraging employees to set their work/life goals, such as spending more time with their family, communicates that you really do want them to have a life outside of work and achieve a healthy work/life balance.

Encourage referrals and recruit from within.

Having incumbent employees offer referrals could help lessen the confusion of job expectations. Current employees can really realistically describe a position and the situation to the individual he/she is referring. Another way an employer can decrease the impact of turnover is to hire from within since current employees have already revealed that they are a good fit in the organization.

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