What is Attrition?

What does Attrition mean?

Attrition measures how many employees leave an organisation over a given period, expressed as a share of its average headcount. It counts voluntary exits such as resignations alongside retirements, end-of-contract exits and terminations. Employers usually report it on a trailing twelve-month basis so that one unusual quarter does not distort the picture, and many separate voluntary attrition from total attrition because the two say quite different things about a workplace.

How does Attrition work in India?

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.

Why does Attrition matter to a jobseeker?

A company's attrition rate is one of the few workforce numbers you can check before you apply. India's listed IT services firms publish attrition every quarter in their investor releases and discuss it on earnings calls, so you can read the trend yourself instead of relying on hearsay. Persistently high voluntary attrition in the team you are joining is worth raising in the interview, alongside why the last person in the role left.

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.