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  • How attrition is calculated
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  • Employee Attrition Rate: Meaning, Formula & How to Calculate

    Key takeaways

    • Attrition occurs when a company’s workforce shrinks over time because employees leave and are not replaced.
    • Attrition rate is calculated by dividing the total number of employees who left within a timeframe and were not replaced by the average number of employees, then multiplying by 100.
    • You can use our free attrition rate calculator below to compute attrition rate; modern HR software lets you track attrition over time.

    What is attrition rate?

    Attrition rate measures how many employees leave a company over a period of time.

    It gives a glimpse into your company’s overall health, such as the strength of your hiring and retention efforts. It also aids in strategic human resources (HR) processes, such as workplace planning, succession planning, labor cost management, employee engagement, and recruitment.

    Attrition rate calculator

    How do you calculate attrition rate?

    You can calculate your attrition and turnover rates by dividing the total number of employee departures by your ave

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