Attrition Rate is a statistic that measures the number of workers or consumers that leave without being replaced through time. While being compared to the existing labor or customers, the rate is stated in percentage.
This rate is frequently used by human resource management workers to assess the amount of available or deleted posts. The rate of customer attrition might be used by sales and marketing personnel to find issues where marketing or branding efforts could be improved.
Some mortality is inevitable and normal. Other types of degradation occur as a result of certain situations. Understanding how to break down attrition numbers, how many people leave on average, and how to tackle any concerning factors will go a long way to improve that percentage in the future for any company.
The attrition rate will be determined exclusively by the administration and how they intend to address organizational faults to boost the result. It may be calculated on a monthly, Quarterly, or Yearly basis.
Number of employees who left
Attrition rate = ------------------------------------------------------------ x 100
Average number of employees
For example, a company's workforce may number 3000 individuals. Over the course of a year, 35 employees quit for various reasons. The annual attrition rate is =
(35 x 100) / 3000
Use of the Term in Sentences
- If companies are not able to ensure employee satisfaction, employee attrition rates rise.
More from this Section
- Defensive open market operations
Defensive open market operations is the open market operations intended to offset movements ...
- Apparent authority
Apparent authority is the appearance that an individual has the authority or power to ...
- Incentive pay
Incentive pay can be defined as additional compensation used to motivate and reward employees ...
- Process Chart
A process chart provides a more detailed picture of the work flow. In its simplest form ...
- Employee Recruiting
Employee recruiting means finding and/or attracting applicants for the employer’s open ...