Attrition
Also called: staff turnover, employee turnover
What is Attrition?
Attrition is the rate at which employees leave a business over a period. It is measured as leavers against average headcount, and in hospitality and retail it is typically high.
Why Attrition matters
Every departure costs hiring time, training and a period of lower productivity, plus the service inconsistency customers notice. High attrition is expensive in ways that never appear as a line in the accounts.
Attrition formula
Attrition % = Employees who left ÷ Average headcount × 100
Annualise for comparison across periods.
How Attrition works in practice
Measure it by role and tenure band. Attrition concentrated in the first ninety days is a hiring and onboarding problem; attrition among long-tenured staff is a management one.
Frequently asked questions
Recruitment, training, overtime cover and lost productivity — commonly a large multiple of a month's salary for the role.