What's a good attrition rate?
Varies by industry. Tech: 13%, Retail: 60%, Healthcare: 20%, Finance: 10%, Manufacturing: 15%. <10% is good, <5% is excellent. Voluntary attrition <5% is ideal.
Calculator
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Voluntary + involuntary departures
Analysis
Interpretation of the current calculator output
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How to Use
Step-by-step instructions
- 1Enter total number of employees at period start
- 2Input number of employees who left
- 3Add average annual salary
- 4Review attrition rate and total costs
- 5Target: <10% attrition is good, <5% is excellent
Attrition & Retention Formulas
Attrition rate measures employee turnover. Lower is better for stability and cost. High attrition indicates culture, compensation, or management issues.
Attrition Rate = (Employees Left ÷ Total Employees) × 100%
Retention Rate = 100% - Attrition RateVariables:
Attrition Rate% of employees who leftRetention Rate% of employees retainedTurnover CostReplacement + lost productivity costsExample
Company Turnover Example
Inputs:
Total Employees:100 employees
Employees Left:15 employees/year
Average Salary:$50,000
Steps:
- 1.Attrition Rate = (15 ÷ 100) × 100 = 15%
- 2.Retention Rate = 100% - 15% = 85%
- 3.Replacement cost = 15 × ($50,000 × 20%) = $150,000
- 4.Total turnover cost = 15 × ($50,000 × 150%) = $1,125,000
Result:
15% attrition rate costing $1.1M+ annually - urgent action needed
Frequently Asked Questions
How much does attrition cost?
Replacement cost: 50-200% of annual salary. Includes recruitment, onboarding, training, lost productivity, knowledge loss. Senior roles cost 200%+. Total organizational impact can be 2-3× direct costs.
How do I reduce attrition?
Competitive pay, career development, better managers, workplace culture, work-life balance, recognition, benefits, flexibility, clear expectations. Exit interviews identify root causes.