Attrition Rate

Also called Employee Attrition and Employee Churn

The rate at which employees leave a company over a period, whether they quit or are let go. The workforce equivalent of customer churn.

Why it matters

High attrition drains knowledge, morale, and money, since replacing people is costly and slow. Watching it, and understanding why people leave, is an early warning about culture, management, or compensation problems.

For example

A startup loses 4 of its 20 engineers in a quarter, a 20 percent attrition that drains knowledge and signals a deeper culture problem.

Go deeper

This Is Why People Leave Your Company First Round Review · article The real, often unspoken reasons good people quit, and what managers can do before attrition becomes a pattern. Open review.firstround.com →

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Also in Starting Up

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