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All-in-one HR platform · v2.0
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All-in-one HR platform · v2.0
14-day free trial · No credit cardhello@HrMagix.com
The rate at which employees leave an organisation over a period. Read on its own it says little; read by department, tenure band or grade it usually shows that what felt like a company-wide problem is concentrated in one place.
HR teams usually report attrition monthly and annualise it, with a rolling twelve-month figure for leadership. The calculation is exits in the period divided by average headcount, and it is split into voluntary and involuntary exits because they call for different responses.
Illustration: a company starts the quarter with 480 people, ends with 520, and has 30 exits. Average headcount is 500, so quarterly attrition is 6%. Breaking the 30 exits down by tenure might show that 18 left within their first year, which points at hiring or onboarding rather than pay.
The common mistake is relying on one company-wide number. Attrition among high performers or in a critical role matters more than the average, and exit interview reasons should be coded consistently so they can be compared across quarters. The exit date and reason recorded at separation are what make this analysis possible.
Attrition is the rate at which employees leave an organisation over a period.
Read on its own it says little. Its value comes from breaking it down.
By department, tenure band or grade, which usually shows where departures are actually concentrated.
What feels like a company-wide problem is often concentrated in one team, and a single figure hides that.
Reading attrition by tenure band shows whether people are leaving early or late in their service, which an overall rate cannot show.
It is a rate of leaving, so it only means something against a defined time window.
No. Tenure is how long someone has been employed; attrition is the rate at which people leave.
Cut the figure by department, tenure and grade before acting; the problem is usually concentrated in one place.
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