Attrition rate: How to calculate it and what good looks like

An increasing attrition rate can raise important questions. Are more employees leaving than usual? Is the rate consistent with industry averages? And at what point should leadership be concerned? Understanding how to calculate and interpret attrition rates can help organizations distinguish normal workforce changes from potential problems. 

In this guide, we’ll explain how to calculate attrition rates, compare industry benchmarks, identify the factors driving employee departures, and determine when action is necessary.

Attrition rate is the percentage of employees who leave an organization over a specific period, typically measured monthly, quarterly, or annually. It helps companies understand how frequently employees are leaving and whether those departures are affecting the organization’s workforce.

Employee attrition can occur for several reasons, including voluntary resignations, retirements, layoffs, and other involuntary departures. Tracking attrition rates helps organizations recognize potential retention concerns and determine whether employee departures require further investigation.

The attrition rate formula is: Attrition rate = (Number of employee departures ÷ Average number of employees during the period) × 100

Organizations should use the same measurement period and consistently define which departures count toward attrition to ensure accurate comparisons.

The main difference between attrition and turnover is whether an organization replaces employees who leave. Attrition typically refers to departures where positions are eliminated or left unfilled, while turnover includes employee departures regardless of whether those positions are replaced.

For example, consider two companies:

• Company A (attrition): A company has 100 employees, and five retire during the year. Rather than hiring replacements, the company distributes their responsibilities among existing employees and eliminates the five positions.
• Company B (turnover): Another company has 100 employees, and five resign to pursue other opportunities. The company hires five new employees to fill those positions, maintaining its original headcount.

In both cases, five employees left. However, Company A reduced its workforce from 100 to 95 employees, while Company B maintained its workforce at 100 employees.

Keep in mind that some organizations use attrition and turnover interchangeably. HR teams should establish consistent definitions to ensure accurate workforce reporting.

A good attrition rate is one that aligns with industry benchmarks, remains relatively stable over time, and doesn’t negatively affect an organization’s ability to operate effectively. While lower attrition rates are generally preferable, there isn’t a universal percentage that every company should aim for.

For example, a 5% annual attrition rate might be considered low for an organization in an industry where employee departures are frequent. However, a 10% or 15% attrition rate isn’t necessarily concerning if it’s consistent with industry trends and doesn’t create significant staffing challenges.

You should also consider which employees are leaving. A company with a 5% attrition rate could face greater challenges than one with a 15% rate if those departures involve employees with specialized skills, leadership responsibilities, or positions that are difficult to replace.

Industry benchmarks provide a starting point for evaluating an organization’s attrition rate. For example, industries with seasonal employment, demanding schedules, or high concentrations of hourly workers often experience more frequent employee departures than industries with specialized roles or longer career paths.

According to the US Bureau of Labor Statistics (BLS), the following table shows the percentage of employees who voluntarily left their jobs across selected industries in September 2026, based on monthly quit rates reported in the Job Openings and Labor Turnover Survey (JOLTS).

INDUSTRY:	MONTHLY QUIT RATE:
Accommodation and food services	5.4%
Retail trade	3.2%
Professional and business services	2.3%
Healthcare and social assistance	2.0%
Manufacturing	1.6%
Information	1.5%
Financial activities	1.1%

These figures measure voluntary quits rather than attrition specifically, so they should be used as general labor market context rather than direct attrition benchmarks. They also represent monthly rates, not annual percentages.

With experience supporting over 20 million people through workforce transitions, Careerminds understands the importance of evaluating employee departures amidst organizational change. For organizations navigating layoffs or restructuring, click below to connect with our experts and learn how our outplacement services can help support your departing employees.

High attrition can result from workplace conditions, organizational decisions, and external labor market factors. While some departures are unavoidable, consistently high attrition may indicate underlying issues that are causing employees to reconsider their future with the organization.

Let’s explore some of the most common causes of employee attrition.

Employees who don’t see a clear path forward may look for opportunities elsewhere, particularly when their current roles offer limited professional development or promotion opportunities.

According to a 2022 Pew Research Center survey, 63% of workers who voluntarily left a job in 2021 cited a lack of advancement opportunities as a reason for leaving. This suggests that even employees who are satisfied with their current responsibilities may eventually leave if they don’t see opportunities for long-term career growth.

Employees may reconsider their positions when competing employers offer higher salaries, better healthcare coverage, or more attractive benefits packages. Gallup research published in 2026 found that 69% of employees who were looking for a better job opportunity cited improved pay or benefits as a reason for their search. For organizations competing for specialized talent, compensation gaps can make it particularly difficult to retain experienced employees.

Poor communication, inconsistent expectations, ineffective leadership, and a lack of trust can influence employees’ decisions to leave. Gallup found that engagement and culture accounted for 37% of the primary reasons US employees voluntarily left their organizations in 2024. This highlights how employees’ day-to-day workplace experiences can influence their willingness to remain with an employer.

Frequent organizational changes can create uncertainty about job security, leadership decisions, and the company’s long-term direction. Employees who survive layoffs may also question whether their positions will be eliminated in future restructuring efforts. 

According to Careerminds’ 2025 Layoff Loops research, 41% of HR leaders reported increased voluntary turnover following repeated layoffs. Additionally, 49% observed declining employee morale, suggesting that workforce reductions can have consequences for employees who remain with the organization.

Unmanageable workloads and prolonged stress can make it difficult for employees to maintain their performance and well-being. According to SHRM’s Employee Mental Health in 2024 research, 44% of workers reported feeling burned out from their jobs. 

These challenges may become more pronounced when organizations redistribute responsibilities among existing employees without providing additional support. Over time, employees may seek positions that offer more manageable expectations, greater flexibility, or a healthier work-life balance.

An organization’s attrition rate doesn’t tell the whole story. Here are four ways to determine whether your attrition rate requires attention.

Review attrition data from the past 12–24 months to identify patterns or sudden increases. Compare the same periods year over year to account for seasonal workforce changes. 

For example, if annual attrition increases from 8% to 14%, investigate whether the change occurred gradually or followed a specific organizational event, such as a restructuring or leadership transition. Pay particular attention to departments experiencing increases that aren’t reflected across the rest of the organization.

Break down attrition data by department, job level, tenure, location, and other relevant workforce characteristics. An organization might have an overall attrition rate of 7%, but a 20% rate among employees with less than one year of tenure. 

This could indicate a problem affecting newer employees that isn’t immediately apparent in company-wide reporting. Similarly, higher attrition among senior leaders or employees with specialized skills may create challenges that aren’t reflected in the overall percentage.

Separate voluntary departures from employer-initiated exits to understand what is contributing to the overall rate. A company experiencing increased resignations may need to investigate employee concerns, while an increase driven by planned workforce reductions may reflect changes in business strategy. This distinction helps avoid interpreting every increase in attrition as evidence of an employee retention problem.

Examine whether employee departures are affecting productivity, service delivery, institutional knowledge, or the organization’s ability to meet business objectives. For example, losing three employees from a department of 50 may appear manageable. However, if those employees possess specialized knowledge that other team members lack, their departures could delay projects or disrupt essential operations.

HR leaders should also consider whether remaining employees are taking on additional responsibilities, whether critical work is being delayed, and whether the organization has sufficient internal expertise to maintain operations.

When reporting attrition to senior leadership, HR teams should go beyond presenting a percentage. Executives need to understand what the data means for the organization, where potential risks exist, and whether action is necessary.

An effective attrition report should include:

• Current attrition rate: Present the rate for the reporting period alongside the previous period’s results to show whether departures are increasing, decreasing, or remaining stable.
• Relevant comparisons: Include industry benchmarks where comparable data is available, along with historical company averages to provide context.
• Workforce impact: Highlight departments, employee groups, or critical positions experiencing departures that could affect business operations.
• Business implications: Explain potential consequences for productivity, staffing capacity, operational costs, or organizational goals.
• Recommended next steps: Identify specific issues leadership should investigate, decisions requiring executive approval, and who will be responsible for following up.

An HR leader might present the following summary during a quarterly executive meeting.

The most valuable attrition reports don’t simply tell leadership how many employees left. They explain what the attrition rate means and whether it’s good or bad for the company, including whether those departures are expected and what decisions could prevent additional workforce challenges.

If your organization is preparing for workforce changes, Careerminds can help you support employees through the transition. Click below to contact our team and learn more about our modern, results-driven outplacement and career transition services.