attrition

The rate at which employees leave an organization over a given period. Voluntary attrition (resignations) and involuntary attrition (layoffs, terminations) are tracked separately. Regrettable attrition — high performers and critical-skill employees leaving voluntarily — is the more damaging metric, even if the total attrition rate looks acceptable. Annualized attrition rate = (separations in period / average headcount) × 12/months.

When you'd see it: HR metrics dashboards, board reporting, investor updates, workforce planning models.

Why it matters: High attrition is a compounding cost — recruiting, onboarding, productivity ramp, institutional knowledge loss. Most boards track attrition as a leading indicator of cultural or operational problems.

Common mistakes: Reporting total attrition without segmenting by performance tier or role criticality. 15% attrition in low-performers is very different from 15% attrition in high-performers.

Related retention, headcount planning, performance management, culture