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Employee attrition and retention are like peas in a pod: attrition is the peas and employee retention is the pod. Companies must address them as a package deal, even though they’re not the same.
When employee retention is low, you have a problem: Happiness is down, engagement is off, or staff are leaving for better opportunities in a strong economy. High employee attrition might not signal a problem, but it’s still something you need to address.
In this article, we’ll cover everything you need to know about calculating and improving attrition rates at your organization, including:
Attrition vs. retention Calculating employee attrition What high attrition says about your business How HR leaders can address attrition What is the attrition rate?
Attrition rate measures how quickly people leave a company, whether voluntarily or involuntarily. It’s expressed as a percentage and serves as a key metric HR departments track to assess company health.
Attrition vs. retention
The retention rate measures the percentage of people who remain employed by a company over a specific period. This is the opposite of attrition metrics, which measure the percentage of employees who leave the company.
Retention is a complex metric that, on its own,
