Within in the context of human resources and workforce planning, attrition is a reduction in the workforce caused by retirement or resignation, without plans to fill or replace that vacant job position. Outside the HR context, the term attrition refers to a reduction in strength or a weakening – which is likely the reason why the term has a negative connotation, even when there can be positive outcomes resulting from a reduction in staff.
Both attrition and turnover decrease the number of employees on staff; however, the HR department's intent is to replace jobs that are vacated as a result of turnover. Generally speaking, attrition is voluntary, meaning it's the employee who made a decision to leave the company. The reason usually is retirement or resignation.
Turnover can be voluntary or involuntary, because it includes employees who leave of their own volition, plus employees who are involuntarily terminated or discharged. In many cases, layoffs can be viewed as attrition because of a reduction in staff that is not immediately replaced by new workers. But some layoffs are temporary, meaning workers are ultimately called back to work.
Attrition Means Costly Departures
Unless your company is adequately prepared for employees who are planning to resign or retire, attrition can be costly. Your company may experience a loss in productivity, particularly when the departing employee is the only one, or one of very few employees, familiar with that position. In addition to diminished productivity, you stand to lose institutional knowledge.
Employees who have been with the company for years understand how the company operates, and are familiar with the mission and the company's ethics and principles. They are likely to be involved in training new employees, precisely because they are extremely knowledgeable about company practices, policies and objectives.
