He is being laid off and is part of Initech’s staff attrition this year. Bill was notified that his position has been eliminated and that there is not another position available for him. After experiencing hefty financial losses, Initech has determined they must layoff a number of its employees.Susan is considered part of ACME Corporation’s staff attrition this year. After 25 years with ACME Corporation, Susan is retiring, and the company does not plan to hire a replacement for her.Remaining job duties can increase the work load for remaining employees.Reduction in size or strength of workforce.Usually considered more of an amicable or cordial departure from the organization.Can reduce costs when an organization may be facing financial distress.With attrition, an employer will not fill the vacancy left by the former employee. Staff attrition refers to the loss of employees through a natural process, such as retirement, resignation, elimination of a position, personal health, or other similar reasons.While staff attrition and turnover both cost your organization money, there are subtle differences between the two concepts and different steps to take to remediate the issues. There are different reasons why an employee might leave your organization. Online calculators or detailed forms, like this one from the Society for Human Resource Management, can help you pinpoint the financial impact that employee turnover is having on your bottom line.

Replacement costs can be lower for entry-level roles while replacement costs are significantly higher for professional, technical, and supervisory positions. Losing employees through staff attrition and turnover is costly – it’s plain and simple.īetween costs associated with separation, loss of productivity, recruitment, interviewing, training, and onboarding, the loss of a single employee is estimated to cost businesses 50% of that individual’s annual salary.

Job turnover definition