Skip to content

Understanding attrition rates: a comprehensive guide

Explore the concept of attrition rates and how it impacts businesses. Learn strategies to manage and reduce your attrition rate with Indigo’s community platforms.

What are attrition rates?

They refer to the rate at which employees leave a company over a certain period, often calculated annually.

How are they calculated?

Staff attrition rates are calculated by dividing the number of employees who left during a certain period by the average number of employees during that period, then multiplying by 100 to get a percentage.

What is the formula for attrition?

The formula for attrition is (Number of Attritions / Average Number of Employees) x 100.

What does staff attrition mean?

Staff attrition refers to the process where the staff members of an organization leave the organization voluntarily or due to unavoidable circumstances.

What is employee attrition?

Employee attrition refers to the reduction in staff and employees of a company through normal means, such as retirement and resignation.

How does employee attrition rate different from employee attrition?

While employee attrition refers to the phenomenon of employees leaving a company, the employee attrition rate quantifies this phenomenon into a measurable rate.

Why are attrition rates important?

They can indicate employee satisfaction, the effectiveness of retention strategies, and can impact a company’s bottom line.

How can attrition rates be reduced?

Your attrition rate can be reduced by implementing effective employee engagement and retention strategies, such as providing opportunities for career development, creating a positive work environment, and offering competitive compensation.

What is a good rate?

A ‘good’ attrition rate can vary depending on the industry and company size. However, generally, a lower attrition rate is seen as positive.

How does Indigo help?

Indigo provides community platforms that enhance employee engagement, provide support, and foster a sense of community, which can help in reducing your attrition rate.

Ready to start reducing attrition rates in your organisation? Check out a demo today.