Attrition, turnover and retention
Attrition and turnover both describe people leaving; some organisations reserve attrition for exits that are not replaced. Retention is the other side: the share of people who stay. For most HR purposes you can use them together, as long as you define the one you report.
How to calculate attrition rate
Attrition rate = number of leavers in the period ÷ average headcount in the period × 100
Average headcount is usually the headcount at the start plus the headcount at the end, divided by two. Use the same period every time, annual or monthly, and say which. A monthly rate multiplied by twelve is not the same as an annual rate, and mixing them produces misleading comparisons.
Worked example: if 30 people leave in a year and the average headcount is 200, attrition is 30 ÷ 200 × 100 = 15%.
The breakdowns that matter more than the total
- Voluntary and involuntary. Resignations versus dismissals, redundancies and retirements.
- Regretted and non-regretted. Whether you wanted to keep the person. Regretted attrition is the one that costs you.
- Early-tenure. People who leave in their first year point to hiring, onboarding or role-fit problems.
- By team and manager. A cluster in one team is a different problem from an even spread.
- By group. Differences by gender, level or background can signal inclusion or opportunity gaps.
- By performance. Losing high performers is different from losing others.
Why people leave
The reasons people give on the way out are often the most socially comfortable ones. The underlying causes tend to be a small, recurring set:
- A manager relationship that is not working.
- No visible route to grow or progress.
- Pay or promotion that feels unfair.
- Workload that is not sustainable.
- Not being heard, or not trusting what is said.
These line up with the five pillars of the WCRC Equity Index, which is why a culture assessment is a better guide to retention than an exit survey alone.
Stay interviews and exit interviews
Exit interviews capture what people say after they have decided. Stay interviews ask people who are staying what keeps them and what might make them leave, while you can still act. Do both, and look for patterns across many conversations rather than acting on one.
How to reduce attrition
- Break the number down until you find where it concentrates.
- Talk to people in that group, before they leave.
- Fix the specific cause, such as a manager, a promotion path or a workload.
- Track regretted attrition and early-tenure attrition separately.
- Re-measure after six to twelve months and compare with your own trend.
Related Academy principles: Grow Inside and Demands and Resources.
Frequently asked questions
How do you calculate attrition rate?
Divide the number of leavers in the period by the average headcount in the period and multiply by 100. Use the same period each time.
What is regretted attrition?
It is attrition of people the organisation wanted to keep, usually good performers or people with scarce skills. It is the part of attrition that does the most damage.
What is a good attrition rate?
It depends on the sector, the role and the labour market, so there is no universal figure. Compare with similar organisations and with your own trend, and look at the breakdown, not only the total.
What is the difference between a stay interview and an exit interview?
An exit interview happens when someone is leaving. A stay interview happens with someone who is staying, to learn what keeps them and what might push them out, while there is time to act.
Written by the WCRC Culture Crest Research Desk, part of WCRC Intelligence. General information, not professional advice.
