Attrition Rate

What is Attrition Rate?

Attrition rate is a key HR metric that measures the percentage of employees who leave an organization over a specific period, whether through resignation, retirement, or other forms of departure. It is sometimes also referred to as the employee churn rate.

Why Attrition Rate Matters

Tracking attrition rate helps HR teams identify trends in workforce turnover and understand whether the organization is retaining talent effectively. A high attrition rate may signal issues with employee satisfaction, compensation, management, or workplace culture, while a low rate generally suggests a stable and engaged workforce. Organizations typically calculate attrition rate by dividing the number of departures during a period by the average headcount and multiplying by 100.