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HR Glossary

Attrition rate

HR metrics
What is attrition rate?

Attrition rate is the percentage of a workforce that leaves an organisation over a period, measured against average headcount. It is the standard gauge of how quickly an organisation is losing people.

How do you calculate attrition rate?

Divide the number of departures in a period by the average headcount for that period, then multiply by 100. Average headcount is usually taken as headcount at the start plus headcount at the end, divided by two. Eighteen departures against an average headcount of 120 is a 15% annual attrition rate.

Most teams also split the number into voluntary and involuntary attrition, and the sharper ones track regretted attrition separately, because losing people you wanted to keep is a different problem to managed exits.

What is the difference between attrition and turnover?

In everyday HR use the two are close to interchangeable, and the formula is the same. Where a distinction is drawn, attrition usually refers to departures the organisation does not backfill (a role retired with the person), while turnover covers all separations, replaced or not. If you report both, define both, because your CFO's definition may not match yours.

What is a healthy attrition rate?

The Australian average sits around 16% a year (AHRI). Against that, low single digits can signal a stagnating workforce as easily as a happy one, and anything sustained above the mid-twenties usually costs more than it looks, because every departure carries recruitment, ramp-up and lost-knowledge costs. The rate that matters most is attrition among your top performers, which no company average will show you.

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Employee turnover rate

Employee turnover is the rate at which employees leave an organisation and need to be replaced, usually expressed as separations over a period divided by average headcount.

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Employee tenure

Employee tenure is the length of time a person has been continuously employed by the same organisation.

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eNPS

eNPS (employee Net Promoter Score) measures employee loyalty with one question: how likely are you to recommend this organisation as a place to work? Scores run from -100 to +100, calculated as the percentage of promoters minus the percentage of detractors.

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All terms

Every definition, with the local rules, rates and thresholds attached.

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Where
Compono Engage fits.

Compono Engage is an employee engagement platform that reads culture and climate alongside work personality, team by team.

Attrition tells you people left. Engagement data tells you who is next.

See how it works
Compono Engage
8%+
reduction in turnover

Common questions

Is attrition the same as churn?

Churn is the customer-side version of the same idea and is sometimes borrowed for workforce reporting. In HR reporting, attrition (or turnover) is the standard term.

Is zero attrition good?

No. Some level of departure is healthy: it creates progression room, brings in new capability and moves on poor fits. The goal is low regretted attrition, not zero attrition.

This page is general information, not legal advice. We check figures annually and update them on a best-efforts basis, but employment rules change and we cannot promise everything here is current or complete. Before you act on it, confirm the detail with the official source for your jurisdiction or your own adviser. Last reviewed July 2026.