Attrition: in HR is the gradual shrinking of a workforce as employees leave, through resignation, retirement, or other departures, and their positions aren't immediately refilled. It's often used to describe gradual headcount decline, while turnover usually counts all departures whether or not the role is backfilled.
Key takeaways
- Attrition rate is departures in a period divided by average headcount, times 100.
- Voluntary attrition counts resignations and retirements; involuntary includes terminations and layoffs.
- Companies sometimes reduce costs through attrition by not backfilling roles instead of laying off.
- US quits ran at 3.1 million, a 1.9% rate, in August 2026.
How attrition works
Definitions vary, so agree on yours with finance. A common approach: attrition rate equals the number of employees who left during the period divided by average headcount for the period, times 100. Many organizations report voluntary and involuntary attrition separately, and some exclude retirements or internal transfers.
The difference from turnover is mostly about backfilling. If 20 people leave and you replace all 20, turnover is the more natural word. If 20 leave and you replace 5, the workforce shrank by attrition. In practice, many companies use the terms interchangeably, so define them in your reports.
Use the turnover rate calculator for the math, and segment by department, manager, tenure, and performance to see where attrition actually hurts.
Attrition example
A 500-person company starts the year at 490 employees and ends at 510, so average headcount is 500. During the year, 60 employees leave: 45 resign, 5 retire, and 10 are terminated. Overall attrition is 60 / 500 = 12%. Voluntary attrition is 50 / 500 = 10%. Breaking it down, first-year employees account for 22 of the 45 resignations, which points to onboarding or hiring fit as the place to focus.
Why attrition matters for employers
Attrition costs money in recruiting, training, and lost productivity, and it hits morale. Quits held at 3.1 million, a 1.9% rate, in August 2026 according to the BLS Job Openings and Labor Turnover Survey, August 2026. Median tenure has fallen to 3.9 years (BLS, median employee tenure, January 2024), so most employers face steady departures even in calmer markets.
Not all attrition is bad. Losing low performers or reshaping skills can help. The goal is to know who's leaving and why, using exit interviews, stay interviews, and people analytics, and act on regretted losses.
Common attrition mistakes to avoid
No consistent definition
Agree on what's included before reporting trends.
Only looking at the overall rate
Segment by team, tenure, and performance.
Treating all attrition as bad
Focus on regretted losses of strong performers.
Ignoring exit data
Reasons for leaving point to fixes.
Attrition: questions people also ask
What is the difference between attrition and turnover?
How do you calculate attrition rate?
What is a good attrition rate?
What is voluntary attrition?
Can attrition be used instead of layoffs?
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HRTally glossary entries are written by people who have run US payroll, benefits, and HR operations, then checked line by line against primary sources such as the IRS, Department of Labor, EEOC, and Bureau of Labor Statistics. Dollar limits and rates are for 2026 unless stated. We review every entry at least twice a year and whenever a rule changes. This page explains general rules and isn't legal or tax advice; state law can differ. Read our editorial standards.
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Teachers, consultants, and HR communities are welcome to quote this definition with a link back to HRTally.
<blockquote>Attrition in HR is the gradual shrinking of a workforce as employees leave, through resignation, retirement, or other departures, and their positions aren't immediately refilled. It's often used to describe gradual headcount decline, while turnover usually counts all departures whether or not the role is backfilled.</blockquote><p>Source: <a href="https://www.hrtally.com/hr-glossary/attrition/">HRTally HR Glossary, Attrition</a></p>
Written by the HRTally Research Team
Our guides are written and reviewed by people with hands-on US HR, payroll, and HR technology experience. Legal and tax facts are checked against primary sources, such as the Department of Labor, IRS, EEOC, and USCIS, and linked at the end of each guide. Vendors never review or pay for our editorial content.