Jenny Rajan

7 July, 2025

8 min read

Attrition in HR: What It Is, Why It Happens, and How Engagement Surveys Can Help

Attrition... It's that quiet issue no one talks about until it starts costing you real money.

It doesn’t always show up with warning signs. It sneaks in slowly. One employee leaves. Another checks out mentally. Projects fall behind. Teams get overwhelmed. And before you know it, the hiring budget is stretched thin and morale even thinner.

At some point, you’re left wondering…

Why are people leaving?

It starts with asking better questions. Real ones. The kind that live in a good employee engagement survey.

This blog talks about what attrition is, the difference between attrition and turnover, how to calculate attrition, types, why it happens, and more…

Let’s get into it.

What Is Attrition in HR?

Attrition is when employees leave a company through resignations, retirements, or other exits, and their roles aren’t filled right away.

It’s different from layoffs or turnover. With attrition, the workforce shrinks naturally over time. The key point? Those empty seats aren’t immediately replaced.

In short, people leave, and the team quietly gets smaller; that is attrition.

Attrition vs. Turnover: What’s the Difference?

Attrition and turnover are often tossed around like they mean the same thing, but they’re not. Understanding the difference between the two is essential for HR teams because how you respond depends on which one you're dealing with.

Term	Definition	Key Difference
Attrition	Natural reduction in workforce over time, not replaced immediately	Positions remain unfilled
Turnover	Employees leaving and being replaced	Positions are actively refilled

Here’s a quick example…

If a senior developer retires and the company decides not to replace them, either to save costs or restructure, that’s attrition. But if a marketing executive quits and a new hire steps in a month later, that’s turnover.

Why is this distinction important?

Because each tells a different story.

High attrition might indicate deeper issues like employee disengagement, lack of growth opportunities, or even a quiet downsizing strategy.
High turnover, on the other hand, could mean there's a problem with your hiring process, onboarding experience, or day-to-day team dynamics.

When HR leaders confuse the two, they risk focusing on the wrong problems. Attrition needs a long term cultural lens. Turnover needs a tactical fix.

Knowing the difference helps you ask the right questions and take the right actions.

How to Calculate Attrition Rate

Tracking attrition doesn’t have to be complicated. Here’s a simple formula that gives you a clear picture of how many employees are leaving over time:

Attrition Rate (%) = (Number of Employees Who Left / Average Number of Employees) × 100

Let’s break it down with an example:

Suppose your company started the year with 200 employees and ended with 180. That means 20 employees left during the year, and their roles weren’t filled.

First, calculate the average number of employees:

(200 + 180) ÷ 2 = 190

Now, plug that into the formula:

(20 ÷ 190) × 100 = 10.5% attrition rate

Keeping an eye on this number regularly can help you catch early signs of trouble like rising disengagement, burnout, or gaps in team morale, before they snowball into something bigger. USA companies lose an estimated $450 to $550 billion each year due to disengaged employees, according to research.

Types of Attrition

Different types of attrition can point to very different problems or none at all. Here are the main ones HR should keep an eye on:

Voluntary Attrition

When employees choose to leave on their own, maybe for a better job, more money, or personal reasons. It’s often a sign of deeper issues like burnout, lack of growth, or culture mismatch.

Involuntary Attrition

When employees are asked to leave, whether due to performance issues, layoffs, or restructuring. It’s less about employee satisfaction and more about business decisions or team fit.

Retirement Attrition

Employees exit because they’ve hit retirement age. It’s expected, but still leaves a talent gap, especially when experienced folks leave with years of know-how.

Internal Attrition

When someone leaves their current role to take another one within the company. It’s not always bad… it shows career movement, but it still creates a backfill need.

Demographic Attrition

When certain groups (like women, new hires, or minority employees) are leaving more than others. This type of attrition often hints at deeper problems with inclusion, equity, or company culture.

Why Attrition Happens? Root Causes

People don’t just leave jobs on a whim. Behind most exits, there’s a reason and sometimes many reasons. Here are some of the most common ones:

Lack of engagement

When employees feel disconnected from their work, it’s only a matter of time before they start looking elsewhere.

No clear path for growth

If there’s no room to grow, they’ll go where there is. Stagnation drives good people away fast.

Toxic culture or bad management

People don’t leave companies, they leave managers. A negative work environment or poor leadership is a top driver of attrition.

Burnout and poor work-life balance

Constant stress, long hours, and no time to breathe? That’s not sustainable, and employees know it. According to APA-based research, 61% of employee attrition is linked to poor mental health and workplace-related stress.

Low pay or weak benefits

It’s simple…. if someone feels undervalued financially, and a better offer comes along, they’re out.

Lack of recognition or feedback

When people feel invisible or unheard, they lose motivation and eventually, they leave.

The Hidden Costs of Attrition

Attrition doesn’t just show up in HR reports… it shows up in your budget, your team’s energy, and even your customer experience.

When employees leave, the impact goes far beyond an empty desk. Here’s what it costs:

Recruitment and training expenses

Hiring a replacement isn’t cheap. Between job ads, interviews, onboarding, and training, it all adds up fast.

Loss of institutional knowledge

When someone walks out, they often take years of know-how, context, and relationships with them. That’s not something you can replace overnight.

Drop in team productivity

Teams lose momentum when a member leaves. It takes time to regroup, redistribute work, and rebuild flow.

More pressure on the people who stay

Remaining employees are left to pick up the slack. That extra load can lead to frustration, burnout, and even more attrition.

Customer experience takes a hit

When internal teams are stressed or understaffed, clients and customers notice. Service dips, and relationships can suffer.

How Employee Engagement Surveys Help Reverse Attrition

Attrition isn’t inevitable. In fact, in many cases, it’s preventable, especially if you catch the warning signs early. Here, employee engagement surveys become one of HR’s most powerful (and underused) tools.

Spot issues before they spiral

Surveys give employees a safe space to speak up. Whether it’s burnout, micromanagement, poor leadership, or lack of purpose, these things show up in survey responses long before they show up in resignation letters.

Build trust through listening

When employees are regularly asked for their feedback, and they see action being taken, they feel heard. That builds trust.

And trust leads to loyalty.

Discover what drives people to stay

Not every employee leaves for the same reason. Engagement surveys can uncover what matters to your people, whether it’s recognition, career growth, work-life balance, or leadership support.

Track what’s getting better (or worse)

Surveys help you spot patterns over time. Are people feeling more supported this quarter? Is leadership communication improving? Are certain teams consistently disengaged? With data in hand, you can course-correct before people start walking out the door.

10 Must-Ask Survey Questions to Spot and Stop Attrition

If you want to get ahead of attrition, stop asking only if people are “satisfied.” That’s not enough. The real insights come from questions that tap into how employees feel, whether they belong, and if they’re already halfway out the door.

Do you see yourself working here a year from now?

A direct pulse-check on intent to stay.

Do you feel your work is recognized and appreciated?

Recognition matters more than we think. It directly impacts engagement and morale.

Do you have opportunities for growth and career development?

If employees can’t see a future here, they’ll build one elsewhere.

How would you rate your current work-life balance?

A great way to detect early signs of burnout or overwhelm.

Do you feel comfortable sharing feedback with your manager or leadership?

A safe culture encourages communication. If this answer is "no," engagement is likely suffering.

Do you believe your contributions make a meaningful impact on the company?

Purpose drives loyalty. Employees who feel disconnected from the bigger picture often check out, mentally or physically.

Do you have the tools and resources needed to do your job well?

Frustration with outdated systems, slow processes, or a lack of support can silently push employees away.

How confident are you in the leadership of your department or the company?

Leadership trust strongly correlates with engagement and retention.

Do you feel connected to your team and colleagues?

A sense of belonging plays a big role in whether people choose to stay.

Have you considered looking for another job in the last six months?

A more direct way to measure flight risk, without waiting for the exit interview.

Benefits of Reducing Attrition Through Engagement

When employees stay because they’re engaged, not just because they haven’t found something better yet, you get more than just a stable headcount. You build momentum. You build culture. You build a company people believe in.

Here’s what starts to happen:

Fewer exits mean reduced hiring and training costs, saving both time and money on replacing talent.
When employees stay longer, it helps build a culture that sticks and spreads across teams.
Engaged employees don’t just complete tasks…. they boost morale and consistently deliver high-quality work.
Happy, motivated employees lead to stronger customer relationships because they represent your brand with pride.
High engagement leads to more ownership, more creativity, and a greater willingness to contribute to growth and innovation.

Final Thoughts

Attrition is what drives your employees to go.

Often, it’s burnout, lack of growth, or simply not feeling heard. The good news? These are things you can fix.

Employee engagement surveys give you a window into what’s going on. When you listen and act…. You don’t just reduce attrition. You create a workplace people want to be part of.

Stop Silent Attrition with Pulsewise

Seeing a rise in exits or just sensing disengagement in the air? Don’t wait for it to show up in your retention reports.

Pulsewise helps you catch the warning signs early. With anonymous feedback, real-time insights, and clear analytics, our platform gives leaders the clarity they need to understand what’s happening and take action that works.

Because fixing attrition starts with listening.

FAQs

How does employee engagement affect attrition?

Engaged employees are more likely to stay. When people feel valued, heard, and connected to their work, they’re less likely to leave.

Why does attrition happen?

Attrition happens due to burnout, poor management, lack of growth, low pay, or cultural misalignment. Most causes are preventable with the right action.

What is attrition in HR?

Attrition refers to employees leaving a company over time, voluntarily or involuntarily, without their positions being immediately filled.

What do you know about attrition, and how will you save the attrition?

Attrition is often a symptom of disengagement. To reduce it, you need to listen to employees, identify pain points early, and act.. using engagement surveys tools like Pulsewise to guide your efforts.