What is Attrition Rate?
A definition of Attrition Rate
“Attrition rate is the rate at which employees leave a company over a specific period. It is used to measure employee turnover and is an important metric for understanding organizational stability.”
Business Glossary > What is Attrition Rate?
Examples of Attrition Rate in a Sentence:
Our company’s attrition rate has increased over the past year.
Reducing the attrition rate is a key focus for the HR department.
High attrition rates can signal deeper organizational issues.
Why is Attrition Rate Important in Business?
Understanding the attrition rate is crucial for managing workforce stability and planning recruitment strategies. High attrition rates can increase recruitment costs, disrupt operations, and affect team morale, necessitating effective retention strategies.
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Associated Terms
Here are some associated business terms and synonyms for “Attrition Rate”:
- Employee Turnover
- Staff Turnover Rate
- Churn Rate
Attrition Rate at ABC Corp
ABC Corp faced a high attrition rate in 2020 due to the pandemic’s impact on employee satisfaction and market stability. They implemented a series of retention initiatives which resulted in a significant drop in the attrition rate by 2022.
Final Notes on Attrition Rate
Organizations need to monitor the attrition rate closely to ensure workforce stability.
- Analyze the reasons behind employee departures.
- Implement retention initiatives to reduce the attrition rate.
An effective retention strategy can lead to improved overall performance and morale.
This has been a definition of Attrition Rate meaning.
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