Measure attrition so it points to causes
Attrition rate is the number of leavers in a period divided by the average headcount in that period, times 100. In a worked example, a company with an average headcount of 240 in a quarter loses 18 people, an attrition rate of 7.5 percent for the quarter. The company-wide number hides the causes, so split it: voluntary and involuntary, by department, manager and location, by tenure band, and regretted or not. The HR metrics library covers each variant.
- Tenure bands: under 90 days, 3 to 12 months, 1 to 3 years, over 3 years
- Voluntary exits the company wanted to prevent, marked as regretted
- Attrition by manager, compared with the company average
- Exits by main reason, from exit interviews
Early attrition needs its own fix
People who leave in their first 90 days are usually telling you the job was not what they expected, or the first weeks went badly. Common causes are a job description or offer that oversold the role, poor onboarding, a difficult manager, or a shift and commute that did not work. Fixes: give a realistic preview of the job and shifts before the offer, plan the first week properly, assign a buddy and hold a check-in at day 30.
Stay interviews and exit interviews
Exit interviews explain why people left; stay interviews find out why people stay and what might make them go, while there is still time to act. Hold stay interviews with employees you most want to keep, especially in teams with high attrition. Ask what keeps them here, what frustrates them, and what would make them look elsewhere. Record exit reasons with the same fixed list every time, so patterns show up across months.
Fixes that address common causes
Match the fix to the cause the data shows. A company that raises pay when the real problem is one manager spends money without solving anything. The list below pairs common causes with fixes that tend to work. Start with the cause behind the largest group of regretted exits.
- Manager behaviour: coaching, closer oversight, or a change of manager
- Pay below market or unfair inside the company: review grades and bands
- No growth: internal job postings and clear career paths
- Workload and shifts: fairer rosters and planned overtime
- Commute: transport, shift timing changes or location transfers
- Feeling unnoticed: regular, specific recognition
Mistakes when fighting attrition
Attrition programs fail when they treat every exit as the same problem. Watch for these patterns in how your company responds, and challenge them when leadership asks for a quick fix. A retention plan built on data from your own exits will outlast any one-time bonus scheme.
- Counter-offers to everyone who resigns
- Blaming the job market without looking at your own data
- One retention bonus for all, regardless of risk or value
- Treating regretted and non-regretted exits as the same
- Collecting exit reasons and never reviewing them
Step by step
- Calculate attrition by team and tenure. Work out attrition every month, then split it by department, manager, location and tenure band to find where people are leaving.
- Record exit reasons consistently. Use one fixed list of reasons for every exit. In ZeniaHR, offboarding records a structured exit reason for each leaver.
- Find the hotspots. Identify the teams, managers, roles and tenure bands where attrition is well above the company's own average.
- Watch early warning signs. Rising absence and lateness often come before resignations. ZeniaHR's attendance analytics show lateness by department and an absence grid by department and day.
- Hold stay interviews in hotspots. Talk to the people you most want to keep in high-attrition teams about what keeps them and what might make them leave.
- Fix early attrition. Review job descriptions, offers, onboarding and the first 30 days for roles with many exits in the first 90 days.
- Act on pay, growth and managers. Match each fix to the cause the data shows, whether that is pay, career paths, workload, commute or the manager.
- Review monthly with leadership. Share attrition by team with the reasons and actions taken. ZeniaHR's reports on headcount by department and employees by status export to CSV for this review.
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What is attrition in HR?
Attrition is the loss of employees from a company over a period, through resignation, retirement, termination or other exits. HR usually tracks it as an attrition rate and splits it into voluntary and involuntary, and by team, tenure and reason, to understand why people leave and where to act.
How do you calculate attrition rate?
Divide the number of employees who left during the period by the average headcount for the period, and multiply by 100. For example, 18 leavers with an average headcount of 240 in a quarter gives 7.5 percent. Use the same period and definitions every time so you can compare trends.
What is a good attrition rate?
There is no single good number; it depends on the industry, role type, location and the company's stage. Compare your rate with your own past periods and, where you have reliable data, with similar companies. Focus on regretted attrition and early attrition, which hurt the most.
What is the difference between attrition and turnover?
The terms are often used interchangeably in India. Where they are separated, turnover usually means all exits that are replaced with new hires, while attrition can include roles that are not refilled. What matters most is using one definition consistently in your own reports.