Understanding Turnover vs. Attrition: Can Someone Explain the Difference?

Hi all,

Can anybody please tell me what is the difference between turnover and attrition? It will be great.

Hi Ishita,

I think that both of them are the same. Employee attrition rate is the same as employee turnover rate. This refers to the ratio of the number of workers that had to be replaced in a given time period to the average number of workers in the company.

Hi Ishita,

According to me, turnover is the number of workers hired by an establishment to replace those who have left in a given period of time. So, you can say it's just an abrupt change or reversal in the workforce.

On the other hand, attrition is the reduction in the number of employees through retirement, resignation, or death. It can be defined as "the rate of shrinkage in size or number." These are the key differences between the two.

Animesh

Attrition is the gradual reduction in the workforce through resignation, retirement, and death.

Turnover is a change in the workforce due to quits, discharge, and layoff.

The difference being that in one case the workforce is reduced, while in the other it is, at least, maintained or expanded.

Hi Pavan,

Employee Relations covers communications, employee participation in management decisions, conflict and grievance resolution, trade unions, and collective bargaining. Each of these needs to be studied in detail to understand Labor Employee Relations.

Hi,

By what I understand, attrition rate is the number of people leaving the company, and turnover rate is the definition Ajmal gave. If I'm wrong, please do notify!

Attrition is a reduction in force by means of resignations, retirements, and death. Turnover is defined as a change in the workforce due to accessions, quits, discharges, and layoffs. The difference is that attrition is a function of a declining workforce, whereas turnover is the function of a stable or expanding workforce.

The general measure of turnover is a percentage derived from the number of separations divided by the total number of workers on the payroll. For example, if 10,000 employees left a workforce of 5,000:

10,000/5000 = 10/5 = 2/1 = 200%

I think both of them are the same. Attrition is a typical number of departures in 6 months or 1 year, but the meaning of turnover is different than attrition. Attrition means "wearing out," but it relates to employees or the leaving procedure, whereas turnover means profit or rotation of the annual income. Whenever the topic is related to some reason, it must be mentioned as employee turnover; then only it is equal to attrition.

The correct definition of attrition is employees leaving the company. Turnover, on the other hand, can also involve employers removing employees from their jobs due to various factors. In attrition, employees choose to leave the company, whereas in turnover, it can be initiated by the employer. It is important to note that in attrition, the reasons for employees leaving may include factors related to management. I hope this clarification helps.

Hi Jo,

This was a wonderful article on calculating the attrition/turnover rate. I have a small query since I am new to General HR. When you said voluntary turnover = total turnover - (retirements + dismissals + redundancies), what do you mean by redundancy here? Please clarify.

Thanks a ton!!!

Regards,
Ships