What is Attrition?
Attrition is the rate at which employees leave a company over a period, through resignation, retirement or other separations.
Key takeaways
- Attrition is the rate at which employees leave a company over a period, through resignation, retirement or other separations.
- Attrition matters when you read a salary slip, compare job offers, or plan your career.
- Knowing how Attrition works helps you make sharper, better-informed job decisions.
Attrition — meaning & explanation
Attrition measures how many employees leave an organisation over a given period relative to its headcount. It reflects voluntary exits like resignations as well as retirements and other departures.
In India, companies track attrition closely, especially in high-turnover sectors like IT services and BPO. High attrition can signal issues with pay, growth or culture, while very low attrition may indicate limited mobility.
For a jobseeker, a company's attrition reputation can hint at its work environment and stability. It is one of several signals worth weighing when you research a prospective employer.
Related glossary terms
Notice Period
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Onboarding
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Appraisal / Increment
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Counter Offer
A counter offer is a revised proposal made to keep you — from your current employer when you resign, or a new…
Probation Period
A probation period is an initial trial phase in a new job during which the employer assesses you before confir…
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More glossary terms
Attrition — FAQs
What does Attrition mean?
Attrition is the rate at which employees leave a company over a period, through resignation, retirement or other separations.
Why does Attrition matter to a jobseeker?
For a jobseeker, a company's attrition reputation can hint at its work environment and stability. It is one of several signals worth weighing when you research a prospective employer.
Is Attrition the same as Employee turnover?
Yes — Attrition is also commonly called Employee turnover, Churn. Attrition is the rate at which employees leave a company over a period, through resignation, retirement or other separations.
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