“Attrition” refers to a reduction in the employee strength of an organization. Attrition can be voluntary (when employees leave of their own accord), or involuntary (when employees leave due to job redundancies, layoffs, or retirement).
While some voluntary attrition is beyond an organization's control, for example, people leaving to pursue higher education or explore alternate careers, organizations need to understand and address causes of attrition in their organization to mitigate the potential negative impact attrition can have on business performance and workforce morale.
Attrition is different from turnover. Attrition rates refer to the percentage of employees exiting every year, while turnover rates refer to the percentage of exiting employees being replaced every year.
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