Rates of attrition, turnover, absenteeism and retention are great indications of the workplace environment and satisfaction levels of employees. By calculating these different rates, you can determine how well your workplace has adapted to the current realities of the workforce, as well as your level of readiness and preparation to address both future human resource and employee engagement needs.
To ensure information is clear and consistent, it is helpful to have working definitions :
- Employee Absenteeism: Employees missing part or whole days of work due to personal illness, personal business, or other reasons (excluding paid holiday leave). These absences may be avoidable or unavoidable, paid or unpaid. To calculate the cost of absence for your organisation, use our helpful Cost of Absence Calculator and Potential Savings Table.
- Employee Attrition: Employee attrition refers to the loss of employees through a number of circumstances, such as resignation and retirement. The cause of attrition may be either voluntary or involuntary, though employer-initiated events such as redundancies are not typically included in the definition.
- Employee Retention: Employer’s capacity to keep employees.
- Employee Turnover: Replacement of employees who have left the workplace due to either voluntary or involuntary reasons.