Understanding Turnover vs. Attrition: What's the Real Difference?

DS
Hi friends,

Could you help me with the meaning of TURNOVER and ATTRITION? Do they both mean the same? If not, what differentiates them?

Regards,
Dheeraj
KMallick
Attrition refers to the number or rate at which people leave an organization, resulting in a decline in the workforce. Turnover, on the other hand, is defined as a change in the workforce due to accessions, quits, discharges, and layoffs. The key distinction between attrition and turnover lies in the fact that attrition is associated with a declining workforce, whereas turnover is related to a stable or expanding workforce.

The general measure of turnover is typically expressed as a percentage, calculated by dividing the number of separations by the total number of workers on the payroll. For example, if 10,000 employees left a workforce of 5,000, the turnover rate would be calculated as follows: 10,000/5000 = 10/5 = 2/1 = 200%.

Cheers,
K
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