In business, the word attrition refers to employee turnover. Employee turnover has the potential to be very costly to your organization, so it’s important to keep an eye on attrition rates and make sure that you have strategies in place to deal with these rates effectively and to minimize their impact on your bottom line. This article will provide insight into the dangers of ignoring attrition in your organization and some concrete strategies that you can use to reduce this type of turnover and increase the effectiveness of your workforce.

Why Measuring Attrition Matters

1. Attrition can have a major impact on your bottom line.

2. High attrition rates can indicate underlying problems within your organization.

3. Measuring attrition can help you identify potential issues and take steps to address them.

4. Without measuring attrition, you run the risk of making decisions based on incomplete data.

5. Measuring attrition can help you improve your overall retention rate and keep your business thriving. 6. Asking employees why they are leaving can also provide valuable insight into what needs to be improved or fixed in order for employees to stay with your company longer.

7. Providing frequent feedback on performance is another way that organizations can create an environment where employees want to stay at their jobs for the long term.

8. People often leave because they are unhappy with their boss or their workplace culture, so these things should always be taken into consideration when it comes time for reviews or performance discussions.

9. When hiring new staff, make sure you find people who are committed to staying in the position for at least two years, as this will go a long way towards lowering your turnover rate. 10. Continually checking in with departing employees after they’ve left will also show you if there were any problems during their last few months or weeks before departure that might not have been evident during exit interviews (you might want to investigate any claims about unfair treatment).

11. The last thing you need is disgruntled former employees publicly airing out complaints about how bad things were while they were working there – try to minimize all bad press by conducting exit interviews and asking for feedback from departing staff members before it’s too late!

How To Measure Attrition

It’s important to measure attrition rates in your organization for a number of reasons. First, if you’re not monitoring attrition, you could be missing key warning signs that something is wrong. Second, by understanding your attrition rate, you can take steps to improve retention and reduce turnover. Here are a few ways to measure attrition

 (1) Track employee tenure – determine the number of years employees have been with the company;

 (2) Understand what caused them to leave – explore why employees left, whether it was voluntary or involuntary;

(3) Compare how many employees you lost during a given period against how many were hired during the same time period; (4) Calculate Employee Retention Rate – this measures how many people who were employed at the beginning of an allotted time period are still employed at the end of it.

Where Does Attrition Occur?

Attrition usually occurs when an employee leaves an organization voluntarily, but it can also happen when an employee is let go due to downsizing or poor performance. Regardless of the reason, attrition can have a significant impact on your organization. If you’re experiencing high levels of turnover, it’s worth analysing where this is happening and why. You might want to take note of what type of positions are most affected by attrition (e.g., new hires) and how many people are leaving (e.g., 5% out of 100).

What Causes Attrition?

There are many factors that can cause attrition in an organization, including poor management, a lack of opportunity for advancement, and low pay. However, the most common cause of attrition is simply employees becoming dissatisfied with their jobs.

What Are Some Examples Of How To Reduce Attrition?

There are a number of ways to reduce attrition in your organization, but it starts with understanding what causes employees to leave. Here are some common reasons for why people leave their jobs they’re bored; they feel unappreciated; they’re not getting along with co-workers or bosses; they want more money or benefits; the company’s moving away from the things that make them happy (like doing work outdoors). Whatever the reason, remember that when an employee leaves, you lose out on years worth of experience and investment in training.


If you don’t measure and track attrition in your organization, you’re missing out on critical data that could help you improve employee retention. What’s more, ignoring attrition can lead to a false sense of security, which can be dangerous for your business. By understanding the causes of attrition and tracking it regularly, you can keep your finger on the pulse of your organization and make sure that you’re doing everything you can to keep your employees happy and engaged.

How to calculate attrition rate in a month:

To calculate the attrition rate the below parameter is required :

*No of person separated in the month = A

* Average person on that month = B

Attrition rate is : (A / B ) * 100

Suppose at the beginning of a month the employee strength is 50 and end of the month, the employee strength is 65 and 17 No employees, have separated.

Then the Attrition calculate is = 17/ ((50+65)/2)*100

                                                          = 17/55 *100

                                                        = 0.31*100

                                                     = 31%