What is Employee Attrition?

Employee attrition refers to the gradual loss of employees over time due to resignations, retirements, or even deaths without the role being immediately filled.
It differs from employee turnover, where departing employees are replaced promptly, leaving no staffing gap.

Types of Employee Attrition

1. Voluntary Attrition
This happens when an employee chooses to leave the company on their own typically.  Common reasons may include better job opportunities, career change or advancement, pursuit of higher education, relocation, personal or family-related reasons. 

2. Involuntary Attrition
When the employer initiates the exit, often due to layoffs or downsizing, poor performance, business closure or restructuring.

3. Internal Attrition
This occurs when an employee transfers to another department within the organization. While the employee stays with the company, it still leaves a gap in the former team. Example: A marketing officer transfers to the product team.

4. Demographic-Specific Attrition
This often points to inclusion or culture issues within the organization. It occurs when a particular group (e.g., women, older employees, or people from specific ethnic or cultural backgrounds) leaves the company more than others.

5. Retirement Attrition
This happens when employees retire after long service or upon reaching retirement age. It often requires succession planning to manage the talent gap.

Causes of Employee Attrition

1. Lack of career growth opportunities
2. Poor management or leadership style
3. Low employee engagement 
4. Inadequate compensation or benefits
5. Workplace stress
6. Lack of work-life balance
7. Unclear job roles or expectations
8. Toxic or non-inclusive company culture
9. Limited flexibility (e.g., remote or hybrid options)

How to Measure High Employee Attrition

1. Track Attrition Rate
Use this formula:
(Number of departures ÷ Average number of employees) × 100
Do this monthly, quarterly, or annually to spot trends.

2. Segment by Department or Demographics:
Identify where attrition is highest (e.g., entry-level roles, a specific team, or among a certain age group).

3. Monitor Exit Interview Feedback:
Identify recurring reasons why employees leave to address root causes.

4. Benchmark Against Industry Standards
Compare your organization’s attrition rate with your industry average to assess competitiveness.

What To Do When Attrition is High In your Workplace 

1. Conduct Exit Interviews
You want to find out why people are leaving. It helps shape retention strategies.

2. Strengthen Retention Strategies

• Offer career development and training
• Improve leadership quality
• Foster open communication
• Recognize and reward performance
• Offer competitive perks 

3. Look Beyond Salaries
Sometimes it’s not about pay. People leave for culture, work-life balance, or poor management. Ensure your organization has a balanced work culture, embraces flexibility and has supportive leadership.