Definition Definition

Attrition Rate

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

          = 1.17%


Use of the Term in Sentences

  • If companies are not able to ensure employee satisfaction, employee attrition rates rise.


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