attrition rate

Beginner 👥 Human Resources

Definition

The percentage of employees leaving an organization over a specific period, whether by resignation, retirement, or termination. The metric that keeps HR professionals awake at night calculating replacement costs.

Example Usage

Our 28% annual attrition rate means we're essentially replacing a quarter of the company every year, which costs more than just paying people competitively would.

Origin

Military term meaning reduction through casualties, adopted by HR in the mid-20th century

Fun Fact

Replacing an employee typically costs 50-200% of their annual salary depending on role, meaning high attrition is extraordinarily expensive—yet companies often cut retention budgets first.

Source: Workforce analytics and retention management terminology

Related Terms

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