Attrition

    Attrition is the rate of employee departures from a given organization. This includes employees leaving under various circumstances such as retirement, resignation, dismissal, and death.

    The attrition rate measures how many people leave an organization in a given period. This can be calculated by the formula mentioned below:

    Number of employees leaving within the month / Average number of employees x 100

    Types of attrition

    There are two types of attrition in the recruitment industry:

    • Voluntary attrition: Voluntary attrition occurs when an employee decides to leave a company for various reasons, such as a better job opportunity, relocation, or monetary incentives.
    • Involuntary Attrition: A company may cut its workforce to downsize or save money. Involuntary attrition occurs when a worker is fired, laid off, or retrenched from the company.

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