Attrition

Attrition is the gradual reduction of an organisation’s workforce when employees leave and their positions are not immediately filled. Employee attrition can happen when people resign, retire, or leave the organisation for other reasons, and the company chooses not to replace them.

Attrition is an important workforce management factor because it helps organisations understand changes in their workforce and identify potential employee retention challenges.

Types of Attrition

Employee attrition can occur for various reasons:

• Voluntary attrition: Employees choose to leave the organisation, such as for a new job or career opportunity.
• Involuntary attrition: Employees leave because of termination, restructuring, or other decisions made by the organisation.
• Natural attrition: Employees leave due to retirement, relocation, or long-term career changes.
• Internal attrition: Employees leave a particular role or department but continue working within the organisation. Depending on the organisation’s reporting method, this may be tracked separately from workforce attrition.