Attrition is the gradual reduction of a company’s workforce when employees leave their jobs and are not immediately replaced.
Explanation
Attrition happens naturally over time as employees resign, retire, or move to other opportunities. Unlike layoffs or downsizing, it is not an active decision by the employer but a normal part of workforce changes.
For businesses, monitoring attrition is important because high levels can disrupt operations, increase recruitment costs, and lower overall productivity. On the other hand, some level of attrition can be healthy, as it allows fresh talent to join and bring new ideas.
In manpower supply and HR planning, understanding attrition rates helps companies prepare recruitment strategies and manage staffing levels more effectively.
Example
A healthcare company in Dubai notices that many nurses leave within two years of joining. By studying attrition trends, the company introduces better training and career development programs to improve employee retention.
