Attrition Rate

Attrition rate is the percentage of employees who leave an organisation during a specific period compared with the organisation’s average workforce size during that period.

A high attrition rate may indicate that an organisation is losing employees faster than expected, while a lower attrition rate generally indicates greater workforce stability. Tracking the attrition rate helps HR leaders understand how stable their workforce is and whether employee retention requires attention.

How is attrition rate calculated?

A commonly used formula for calculating annual attrition rate is:

Attrition Rate = (Number of employees who left ÷ Average number of employees) × 100

For example, if 70 employees leave an organisation during a year and the average workforce during that period is 1,000 employees:

Attrition Rate = (70 ÷ 1,000) × 100 = 7%

This means the organisation had an annual attrition rate of 7%.