Data collection and analysis can be an important part of your ED&I strategy. Therefore it is important to also include some of the terminology used in our Dictionary series.
Attrition rates
Attrition rate is a metric that quantifies the rate at which employees depart an organisation, whether voluntarily or involuntarily. It represents the pace of employee turnover, expressed as a percentage and serves as a key indicator for HR and EDI teams to evaluate retention efforts and understand organisational dynamics. Attrition Rates can also be described as churn or turnover rates. When considering EDI we are often specifically looking at demographic-specific attrition. It is important that this data is captured and measured.
While your company’s attrition rate is important – especially if the number has changed significantly over a period of time it is more important is to know why employees are leaving in the first place.
Demographic-specific attrition can be a cause for concern as it may indicate an unwelcome or toxic culture or specific barriers.
How to Calculate?
There are different ways to calculate Attrition Rate, depending on what you are looking at/want to review. But generally the Annual attrition rate = (# of leavers/# of employees) x 100 (and expressed as a percentage).
If the firm is large you may also wish to analyse this data in the context of office/location and/or department/practice area.
One thought on “Attrition Rate (Data Collection)”