Glossary>Attrition Rate

Attrition Rate

Understand employee attrition rate, its organizational impact, the differences between resignation and retirement, and how to calculate it - Jisr Glossary.

What is the Attrition Rate?

The attrition rate is the decrease in a company’s workforce due to retirement or resignation without plans to replace those employees. This rate is calculated by dividing the number of employees who left the company each month by the average number of employees, then multiplying the result by 100.

The causes of employee attrition can be divided into managerial reasons, such as resigning to pursue education, changes in personal circumstances, or dissatisfaction with the current manager, and non-managerial reasons, such as retirement, voluntary resignation, and death.

It is important for any company to calculate its employee attrition rate so that it can prepare adequately for expected employee departures. This proactive approach protects the company from a decline in productivity, a loss of institutional knowledge, and increased stress and burnout among remaining employees who will have to shoulder the workload of their departed colleagues.

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