Is your attrition level a red flag? Here’s how to measure, fix, and prevent employees from leaving

Think about a boat on the water. If it’s sailing smoothly, you’re unaware of any issues—until one day, you notice a small leak. At first, it’s easy to dismiss, but as the days go by, the leak worsens, and the boat starts to take on more water. Eventually, that small leak becomes a serious problem.

Similarly, employee attrition can start with just a few individuals leaving, but if left unaddressed, it can snowball into a larger issue. Just like a captain must patch up leaks before they sink the ship, HR leaders must take action to understand the root causes of employee turnover.

By identifying these "leaks," whether it's poor management, lack of growth opportunities, or a toxic culture, you can fix the problem and keep your organization sailing smoothly.

What is attrition level?

Attrition level refers to the rate at which employees voluntarily time off or involuntarily leave an organization over a specific period of time. It’s a key metric that HR teams and business leaders monitor to understand workforce stability. When calculated regularly, your employee attrition level can highlight trends, patterns, and warning signs that something might be off with retention or employee experience.

Attrition can happen for several reasons: resignations, retirements, internal transfers, or even layoffs. But not all attrition is negative; some are considered voluntary attrition based on individual choices. For instance, natural attrition from retirement can create space for new talent. However, when top performers start to walk out consistently, it's time to pay attention.

In HR terminology, the attrition level helps indicate the health of the company’s culture, management practices, and engagement strategies, which are key concerns for human resources professionals. You’ll often see it used in attrition reports and talent planning sessions to guide hiring, budgeting, and development efforts.

Why does your attrition rate matter?

If your company’s attrition rate is quietly rising, it’s not just a numbers game—it’s a warning light. It signals how people feel about your culture, leadership, and growth opportunities. Ignoring your attrition level could mean missing out on key insights into the employee experience without utilizing the attrition rate formula.

• Increases hidden operational costs: Replacing an employee doesn’t just mean a new hire—it means lost productivity, overworked teams, and retraining costs. When your attrition level stays high, these hidden expenses quickly pile up. It drains budgets, slows momentum, and forces teams to operate in survival mode rather than thrive.
• Reflects the health of your work culture: A growing employee attrition level often reveals deeper cultural misalignments. Whether it's unclear expectations, limited recognition, or lack of internal equity, people tend to leave when their values clash with the organization’s. High attrition is rarely about compensation alone—it’s often a reflection of culture gone unnoticed.
• Disrupts employee morale and team trust: When team members constantly leave, it breaks continuity and trust. Employees start to wonder if they should jump ship, too. This domino effect hurts team morale and slows collaboration. A high rate of attrition puts pressure on remaining staff, which eventually reduces retention even further.
• Complicates succession planning and internal promotions: When your pipeline of future leaders keeps disappearing, internal growth becomes a guessing game. An unpredictable attrition level in HR forces businesses to rush external hiring. This delays internal equity, affects employee motivation, and disrupts long-term leadership development strategies.
• Damages your employer brand and recruitment efforts: Top talent often researches a company before applying. If your attrition report hints at instability or poor employee retention, it affects how candidates perceive your brand. High attrition rates get noticed—whether through Glassdoor, employee testimonials, or industry buzz—and it can push great candidates away.

Different types of attrition in the workplace

Attrition isn’t a one-size-fits-all issue. To truly understand your attrition level, you need to break it down by type. Each variation points to a different underlying cause and calls for a different response.

• Voluntary attrition: This happens when employees leave on their own, often for better roles, personal reasons, or dissatisfaction. It’s one of the most common signals of employee attrition level trends. If not understood, it can hurt retention and internal equity goals.
• Involuntary attrition: Involuntary attrition occurs when employees are let go due to performance issues, restructuring, or layoffs. While sometimes necessary, high levels of this type can signal poor hiring or weak leadership. It also directly impacts team morale and engagement.
• Internal attrition: Here, employees leave their current roles but stay within the organization through transfers or promotions. While it’s a good sign of mobility, unchecked internal attrition can destabilize teams. Smart attrition level calculators must account for this movement, too.
• Demographic-specific attrition: This refers to higher attrition levels among specific groups, like women, older employees, or underrepresented minorities. It reveals issues in inclusion, equity, or support systems. A sharp rate of attrition here requires deeper attention to organizational fairness.
• Functional attrition: Sometimes, attrition benefits the business, like when underperformers leave voluntarily. That’s functional attrition. It’s not always a bad thing, but if you’re celebrating it too often, you may have poor performance or hiring issues.
• Unavoidable attrition: This type includes exits due to retirement, death, or relocation. It’s natural and hard to control, but it still impacts your attrition level in HR metrics. It’s important to plan for succession and institutional knowledge transfer in such cases.
• Avoidable attrition: This happens when employees leave due to issues the organization could have addressed, like poor management or lack of growth. A rising employee attrition rate here signals a breakdown in employee experience. It’s preventable if feedback is acted upon early.
• Regrettable attrition: This is when top performers leave, and the company wishes they hadn’t. It hurts morale, knowledge, and productivity. Monitoring this in your attrition report can highlight retention issues among your highest-value talent.

What’s the difference between attrition and turnover?

Understanding the difference between attrition and turnover is crucial for HR and management teams. While both refer to the departure of employees, they impact the organization differently. Knowing how to measure and manage them, alongside effective employee development, can significantly affect your workforce planning, costs, and overall company culture.

What factors influence attrition?

Understanding the factors that influence attrition is key to managing employee retention. Many elements contribute to an employee’s decision to leave, from personal goals to workplace culture. Recognizing these factors allows employers to take proactive steps to empower employees and address potential issues before they escalate into higher attrition rates.

• Job satisfaction: Low job satisfaction is one of the leading causes of attrition. If employees don’t find their roles fulfilling or feel disconnected from their work, they’re more likely to leave for something they find more rewarding, contributing to an increasing annual attrition rate. Ensuring that employees feel challenged and valued can significantly reduce the risk of turnover.
• Compensation and benefits: Uncompetitive salary packages or lackluster benefits can push employees to explore other opportunities. If employees feel they can secure a better financial offer elsewhere, they’re likely to leave. Regularly benchmarking compensation against industry standards can help retain top talent and improve satisfaction.
• Career growth and development: A lack of career development opportunities often leads to attrition. Employees need to feel that they have room to grow and progress within the company. Providing training, promotions, or mentorship programs helps employees envision their future within the company, reducing the urge to leave.
• Work-life balance: Poor work-life balance can cause burnout and stress, which may lead employees to seek a healthier environment. If employees feel overworked or unable to maintain a balance between their personal and professional lives, they may leave in search of better conditions.
• Organizational culture: A negative or toxic work environment can push employees to quit. Company culture plays a crucial role in employee retention. If employees don’t align with the company’s values or feel unsupported, they’ll be more inclined to leave. Fostering a positive, inclusive culture can make a significant difference.
• Management style: Poor relationships with managers can lead to high attrition rates. Employees who feel micromanaged, unsupported, or undervalued by their direct managers are likely to leave. Offering management training and ensuring clear communication can prevent employees from leaving due to bad management practices.

Top causes of high attrition rates

High attrition rates can signal underlying problems within an organization. Identifying the root causes of employee departures helps employers take targeted actions to address these issues related to employee attrition.

Whether it's a poor work environment or inadequate leadership, understanding these causes can prevent a wave of resignations and improve overall retention rates.

• Lack of recognition and appreciation: Employees who feel unappreciated or overlooked for their contributions are more likely to leave. Regular recognition for their hard work boosts morale and increases retention. When employees feel their efforts aren’t valued, they may start seeking appreciation elsewhere, leading to higher attrition rates.
• Insufficient job fit: Hiring employees who aren’t the right fit for a role can lead to dissatisfaction and eventually attrition. If an employee feels their skills are underutilized or the job doesn’t align with their interests, they may decide to move on. Proper job matching and realistic expectations during the hiring process can mitigate this.
• Poor leadership: Ineffective leadership is a major cause of high attrition. When employees don’t feel supported or respected by their managers, they’re more likely to leave. Leadership plays a critical role in shaping the work environment, and poor leadership can erode employee trust, making it difficult to retain talent.
• Limited flexibility: A lack of flexibility in work hours or remote work options can drive employees to seek more accommodating opportunities. Companies that offer flexible working arrangements can see a reduction in attrition as employees value the ability to manage their personal lives better. Flexibility can significantly contribute to job satisfaction.
• Inadequate training and development: When employees don’t have access to proper training or opportunities for skill development, they may feel stagnant and disengaged. This lack of career advancement often results in attrition as employees look for growth elsewhere. Providing opportunities for continuous learning can reduce turnover and foster employee loyalty.
• Unclear career pathways: When employees don’t have a clear roadmap for career progression, they may become disengaged. If employees don’t see opportunities to advance within the company, they’re more likely to leave for positions that offer better career development. Clear growth pathways and regular performance feedback can prevent employees from seeking other jobs.

Signs your attrition level is too high

A high attrition rate can be a silent red flag for your organization, signaling underlying problems that need immediate attention. While some level of employee movement is normal, an unusually high attrition level can indicate deeper issues within your company culture, management, or employee satisfaction. Here are some signs to look out for.

• Frequent departures in key roles: If you're regularly losing employees from critical departments or leadership positions, it could indicate a systemic issue. These key roles are crucial to maintaining stability, and their frequent vacancy disrupts the overall business flow. It’s a sign that the working environment or the leadership style might be unappealing to your workforce.
• Low employee morale: A high attrition level often results from, or leads to, a decline in employee morale. When employees see their colleagues leaving, they may feel uncertain about their future in the company, leading to reduced enthusiasm and productivity. Low morale is often a precursor to further departures.
• Decreased productivity: High attrition rates can lead to a decline in productivity across departments. As roles remain vacant, the remaining employees are often burdened with additional tasks, leading to burnout and dissatisfaction. In turn, productivity levels drop, and the cycle continues as more employees leave.
• Increased recruitment costs: If your attrition level is high, you’ll be constantly hiring new talent to fill the void left by departing employees. This can increase your recruitment costs significantly. A revolving door of employees means more time and resources spent on hiring, onboarding, and training, which can affect your overall profitability.
• Negative company reputation: When employees leave at a high rate, former employees might share their experiences, whether good or bad, online. This leads to negative reviews on platforms like Glassdoor or Indeed, which tarnish your company's reputation. A negative employer brand can make it even harder to attract top talent.
• High turnover among new hires: If you see a pattern of new hires leaving quickly, it's a sign that something may be wrong with your onboarding process or the expectations set during the hiring process. These employees might not be a good cultural fit or might have been misled about the role, which leads to their early departure.
• Lack of internal career growth: Employees want to see opportunities for growth within the company. If your organization doesn’t provide clear career progression paths, employees may feel stagnant and look elsewhere for advancement. A lack of internal mobility often contributes to high attrition rates, especially in younger employees looking for growth.

How do you calculate the attrition rate?

Calculating your company's attrition rate is an essential step in understanding employee retention trends. This metric helps you assess how frequently employees leave your organization, which can provide valuable insights into your workplace environment and management practices. Here's how to calculate it.

1. Identify the time period: First, determine the specific time period you want to analyze—whether it's a month, quarter, or year. Having a defined timeframe allows you to measure and compare your attrition rate consistently over time.
2. Count the number of employees who left: Next, count how many employees voluntarily left your company during that period. This includes resignations, retirements, and other types of voluntary separations. Be sure to exclude terminations initiated by the company.
3. Determine the average number of employees: Calculate the average number of employees who worked at your company during the period. This can be done by adding the number of employees at the start and end of the period and dividing by two.
4. Apply the attrition rate formula: Use the formula below to calculate the attrition rate—Attrition Rate = (Number of employees who left/Average number of employees) × 100
5. Interpret the results: Once calculated, the result will give you the percentage of employees who left during the period. A high attrition rate signals potential issues within the organization, while a low rate typically suggests better employee satisfaction and retention.

What is a good attrition level? Industry benchmarks you should know

A good attrition level varies depending on your industry, company size, and the type of workforce you employ. While some attrition is natural, too much can signal underlying problems that need addressing. Understanding the industry benchmarks for attrition levels can help you assess whether your rate is healthy or a cause for concern.

• General industry benchmarks: For many industries, an attrition rate of around 10-15% annually is considered average. However, this can vary depending on the industry. For example, industries like retail or hospitality may experience higher attrition rates due to the nature of the work and seasonal employment.
• Tech and software industries: Tech companies, especially startups, often see higher attrition rates, ranging from 13-15%. The high demand for tech talent and competitive job market mean that companies frequently face greater turnover. However, maintaining an attrition rate below 15% is still a healthy sign for most tech businesses.
• Manufacturing and production sectors: In manufacturing and production, lower attrition levels of around 5-9% are typical. These industries rely on specialized knowledge and training, so retaining skilled employees is critical. A higher attrition rate could indicate inefficiencies in the work environment or compensation.
• Healthcare and education sectors: For healthcare and educational institutions, an attrition rate can range between 0.5-41%. However, high attrition in these fields can lead to critical staffing shortages, which directly impact the quality of care or education.
• Customer service and retail sectors: Customer service industries typically face higher attrition rates, ranging from 30-50%, depending on job conditions and compensation. Since these positions are often entry-level or part-time, higher turnover is expected, but can be managed through better engagement strategies.
• Impact of business size on benchmarks: Smaller companies often experience higher turnover as they may have less stability or fewer benefits than large corporations. However, large businesses can also experience high attrition if they have an inflexible culture or a lack of growth opportunities.

How to reduce attrition through better onboarding and engagement?

High attrition rates are often linked to poor onboarding and a lack of employee engagement. If employees don’t feel supported from the start, they may quickly lose motivation.

By refining your onboarding processes and focusing on engagement, you can significantly reduce attrition, fostering long-term loyalty and satisfaction among your workforce.

1. Streamline your onboarding process

A clear and structured onboarding process helps new hires feel comfortable and valued right from the start. Providing a comprehensive orientation that includes company culture, job expectations, and role-specific training ensures employees don’t feel lost or overwhelmed. A smooth transition into their new role can drastically reduce early turnover.

2. Provide clear growth opportunities

Employees who see potential for career advancement within the company are less likely to leave. During the onboarding process, set clear expectations for growth and provide opportunities for professional development. This shows employees that the company is invested in their future, improving job satisfaction and engagement.

3. Foster strong relationships from day one

Building relationships between new employees and their teams early on can improve engagement. Assigning mentors or buddies during onboarding allows employees to integrate smoothly into the company culture. Having someone to turn to for guidance and support makes them feel welcomed and reduces feelings of isolation.

4. Set clear expectations and goals

Clearly communicating job responsibilities and performance expectations from the outset is crucial. When employees know exactly what is expected of them, they’re more likely to stay motivated and perform well. Regularly reviewing progress against goals ensures employees feel recognized and stay on track for success within the organization.

5. Solicit feedback and make improvements

Ongoing feedback is essential in preventing attrition. Regular check-ins with employees during their onboarding period and beyond help identify any concerns before they lead to disengagement. Encouraging feedback about the onboarding process also allows the company to continuously refine and improve the experience for future hires.

Role of managers in managing and mitigating attrition

Managers play a crucial role in reducing attrition rates by fostering a positive work environment and addressing employee concerns early.

Their leadership, communication, and engagement efforts directly influence employee satisfaction and retention. By taking proactive steps, managers can mitigate the risk of turnover and ensure a productive, happy workforce.

• Providing clear communication: Managers should maintain open lines of communication with their teams, ensuring employees feel heard and understood. Regular feedback sessions help identify potential issues before they escalate, keeping employees engaged and satisfied in their roles.
• Recognizing employee contributions: Acknowledging and celebrating employees' hard work can increase job satisfaction and loyalty. Managers who offer regular recognition for performance, both publicly and privately, create a more appreciative work culture and reduce the chances of attrition.
• Supporting career development: Employees are less likely to leave if they see opportunities for growth. Managers who actively support career development through mentoring, training, and growth opportunities help employees feel valued and invested in the company's long-term success.
• Creating a positive work culture: A supportive and inclusive work culture can significantly reduce turnover. Managers set the tone for the team, promoting collaboration, respect, and work-life balance, which helps retain employees and maintain high morale.
• Addressing issues promptly: Managers must address workplace issues quickly to prevent dissatisfaction from leading to attrition. By identifying and resolving problems, whether related to workload, team dynamics, or job fit, managers can mitigate potential turnover.

Linking employee engagement scores with attrition levels

Employee engagement scores are a direct reflection of how invested employees are in their roles, and they can offer valuable insights into potential attrition risks. Low engagement often correlates with higher turnover, so tracking and acting on engagement scores is critical in reducing attrition. Here’s how to connect these two factors.

• Identifying disengaged employees: Low engagement scores can highlight employees who are at risk of leaving. These employees may not feel connected to the company or motivated by their work. By addressing these concerns early on, companies can take proactive measures to prevent attrition.
• Improving job satisfaction: Employees who feel satisfied with their roles tend to stay longer. Engaging with employees about what makes them happy or frustrated allows managers to create a more supportive and enjoyable work environment, reducing the likelihood of them leaving.
• Strengthening management practices: Employee engagement often correlates with how effective leadership is. Managers who foster a culture of engagement and trust help build stronger relationships with their teams, leading to lower attrition levels. Regular feedback and recognition from managers play a big role in keeping employees engaged.
• Increasing retention through development opportunities: Employees who see opportunities for growth within their company are more likely to stay. By linking high engagement scores to career development programs, companies can keep employees motivated and reduce the likelihood of them seeking opportunities elsewhere.
• Tracking trends over time: Monitoring employee engagement over time allows HR professionals to spot trends and anticipate future attrition. A sudden drop in engagement could signal an impending increase in turnover, allowing companies to act quickly and address issues before they lead to widespread attrition.

How do exit surveys help decode attrition trends?

Exit surveys are an invaluable tool for understanding why employees leave an organization. They provide insights into the root causes of attrition, helping businesses identify patterns and make informed decisions to reduce future turnover. Here's how exit surveys help decode attrition trends.

• Understanding common reasons for departure: Exit surveys collect direct feedback from employees about their reasons for leaving. Whether it’s job dissatisfaction, lack of career growth, or external opportunities, understanding these common factors helps organizations target specific areas for improvement to reduce future attrition.
• Identifying leadership or management issues: If multiple employees cite leadership or management problems in exit surveys, it’s a clear sign that the company's management practices need to be addressed. Analyzing these patterns can help identify whether there’s a recurring issue that needs fixing to improve employee retention.
• Assessing company culture: Exit surveys often reveal insights into the company culture, whether employees feel supported, valued, and included. A negative culture can drive high attrition, and identifying cultural issues through exit surveys can guide leadership in making necessary cultural shifts.
• Highlighting compensation and benefits concerns: Many employees leave due to inadequate compensation or benefits. Exit surveys can provide data on whether your company’s pay structure and benefits packages remain competitive within the industry, helping you adjust to retain talent.
• Tracking trends over time: Exit surveys help track early attrition rate trends over time. By looking at recurring themes in responses across different periods, organizations can identify patterns and predict future turnover, allowing for proactive interventions and strategy adjustments to manage attrition effectively.

Conclusion

Keeping a close eye on your organization’s attrition level is essential to retaining top talent and maintaining a strong workplace culture. High attrition often points to deeper issues such as disengagement, poor leadership, or lack of growth opportunities.

That’s where CultureMonkey can make a difference. As a powerful employee engagement survey platform, CultureMonkey offers anonymous exit surveys, pulse surveys, and sentiment analysis—helping you uncover why employees leave and what you can do to prevent it.

With real-time analytics and customizable feedback templates, you gain clear insights into employee concerns before they turn into turnover. By actively listening to employees and acting on their feedback, CultureMonkey empowers HR leaders to address problems early, enhance engagement, and reduce attrition.

Build a culture where employees feel heard, valued, and motivated to stay—with CultureMonkey guiding every step.

Summary

Attrition level is a critical HR metric that measures employee departure, helping organizations assess workforce stability and retention strategies.

The attrition rate is calculated using a simple formula, providing clear insights into how often employees leave a company over a specific period.

Common causes of high attrition include poor management, lack of career growth, and inadequate compensation. Identifying these factors is key to improving retention.

Strategies like better onboarding, employee engagement initiatives, and strong managerial support can help reduce attrition rates and keep talent within the organization.

Exit surveys offer valuable insights into why employees leave, helping companies decode attrition trends and implement corrective actions to prevent future turnover.

FAQs

1. What is considered a ‘high’ employee attrition rate?

A “high” employee attrition rate typically indicates problems within the organization and varies by industry. Generally, a rate above 15-20% annually is considered high, especially in industries with traditionally low turnover. When the rate surpasses this benchmark consistently, especially in relation to the average headcount, it signals potential issues with workplace culture, management, or employee satisfaction, necessitating immediate attention to address the underlying causes.

2. When should you focus on employee attrition?

It’s important to focus on employee attrition when it starts rising noticeably above industry benchmarks or becomes a long-term trend. If you notice consistent departures in a short period, particularly among top performers or critical roles, it’s time to dive into the issue of early attrition. Ignoring this trend can lead to talent gaps, lower morale, and increased recruitment costs, impacting business operations.

3. Is attrition the same as turnover?

Attrition and turnover are related but distinct concepts. While both refer to employees leaving an organization, attrition involves the natural reduction in workforce, typically without replacing employees. On the other hand, turnover means employees leave, and organizations make efforts to replace them. Turnover can include voluntary and involuntary exits, while attrition often relates to voluntary exits without replacements or retention efforts.

4. Is employee churn always negative?

Employee churn isn’t always negative; it depends on the context. High churn may indicate poor workplace conditions, management issues, or lack of engagement, which are problems that need addressing, especially when considering workforce demographics. However, in some cases, periodic churn can be a sign of healthy organizational change, such as the introduction of fresh talent or the movement of employees seeking better opportunities that align with their goals.

5. What is a healthy attrition rate?

A healthy attrition rate varies based on the industry and specific company dynamics. Typically, a rate of 10-15% annually is considered acceptable for most organizations. This allows companies to maintain fresh talent while not being burdened by high recruitment costs or loss of knowledge. However, rates exceeding this range for a prolonged period can suggest deeper issues, requiring a thorough review and corrective actions.