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Unraveling the Difference Between Employee Attrition and Turnover

August 04, 2023, 4-min. read
Unraveling the Difference Between Employee Attrition and Turnover

Not only in the realm of human resources, employee attrition and turnover are often used interchangeably. However, understanding the subtle yet significant differences between these two terms is vital for businesses to address the right challenges and make informed decisions. Let's explore the distinctions between employee attrition and turnover and their impact on an organization.

Employee Attrition

Employee attrition refers to the natural and voluntary departure of employees from an organization due to various reasons. These reasons can include career change, retirement, relocation, or personal choices. However attrition does not necessarily signify a negative event, as it may involve employees seeking new opportunities or reaching milestones in their careers, such events can have very negative impact on a business. Managing attrition is therefore essential for maintaining workforce stability and addressing gaps in talent within the organization.

Attrition Calculator by LutherOne

Employee Attrition

Employee turnover, on the other hand, is a broader term that encompasses all forms of employee departures from an organization, including both voluntary and involuntary exits. Involuntary turnover occurs when employees are terminated, laid off, or dismissed for various reasons, such as poor performance or organizational restructuring. Voluntary turnover includes employees leaving on their own accord, similar to attrition. The distinction lies in the inclusion of involuntary exits, which often indicate a potential issue within the organization, such as low job satisfaction or ineffective management practices.

Understanding the difference between attrition and turnover is crucial for businesses because the implications of each can vary significantly.

To preempt employee attrition, businesses need to identify and address the factors that contribute to employees leaving voluntarily.

LutherOne's continuous engagement surveys and smart data analysis provide organizations with real-time insights into employee sentiments and satisfaction levels. By understanding what drives attrition, companies can proactively implement strategies to retain top talent and create a positive work environment.

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