Attrition is broadly defined as the total number of employees who leave the company because of any reason whatsoever.
Attrition is broadly categorized into two definitions: Voluntary and Involuntary.
Involuntary Attrition: Involuntary termination is the employee’s departure at the hands of the employer. There are two basic types of involuntary termination, known often as being “fired” and “laid off.” To be fired, as opposed to being laid off, is generally thought of to be the employee’s fault, and therefore is considered in most cases to be dishonorable and a sign of failure.
Voluntary Attrition: Voluntary attrition is the employee’s departure on his own. This happens when an employee resigns from an organization for personal or professional reasons. Voluntary attrition is one of the major pain points for companies in growing economies. In India – voluntary attrition of 20-40% is fairly common in IT/ITES/Retail/Hospitality industries.
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