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How many employees leave each year?

Employee Attrition Rate

Sector numbers

Attrition is the share of employees who left the company during the year.

In everyday life

If 15 of the 100 players in your cricket academy leave each year, you keep spending time and money training new ones.

How it's worked out

Example: Orbit Infotech, a made-up company that builds software for foreign clients.

People who left
employees who quit during the year
1,800 people
Total employees
everyone on the payroll
12,000 people
× 100
Attrition
15%

In words: 15 of every 100 employees left this year.

Try it yourself

Move the sliders and watch the answer, the picture and the verdict change together.

0 people10,000 people
500 people50,000 people
AttritionNormal
15%

15 of every 100 employees left this year.

  • People who left
  • The rest

Each dot is 1 of every 100 in “total employees”.

Rough guide

Attrition 15%
  • Low
  • Normal
  • High

What's a good number?

  • Low

    Up to 12%

  • Normal

    12% to 20%

  • High

    Above 20%

Matters most where people are the product, like IT services. High attrition pushes up hiring and salary costs.

Key number in the sector guides for IT services.

How to read it

Good signs

  • Attrition lower than rivals'.

Watch out for

  • A jump in attrition often shows up as lower margins a few quarters later.
All lessons

For learning only. Example companies are made up, and the rough guides are rules of thumb, not targets. Nothing here is advice to buy or sell any stock.