![]() The cost to replace an employee ranges from one-half to two times the employee’s annual salary. When a voluntary resignation requires a replacement, it’s not cheap to fill the position. Some employee attrition can cost as much as turnover. There is overlap between the two types of churn though. If an employee leaves naturally, and their spot no longer needs to be filled, organizations can freeze hiring to reduce staffing costs. Take for instance more severe forms of attrition-like layoffs-which are often deployed as a labor reduction technique. Just as the definitions between employee attrition versus turnover are different, the costs associated with them are too.Įmployee attrition is often viewed as a way that companies can decrease labor costs. The Cost Difference Between Employee Attrition Versus Turnover With turnover, HR is tasked with replacing employees, whereas spots left open from employee attrition may remain unfilled.įind out how much your company can save by reducing your turnover rate with this interactive calculator. While turnover includes employees who leave of their own volition, it also refers to employees who are involuntarily terminated or discharged. Turnover focuses on both voluntary and involuntary departures. īoth employee attrition and employee turnover decrease the number of employees on staff, but employee attrition is typically voluntary or natural - like retirement or resignation. ![]() When considering employee attrition versus turnover, companies often use these terms synonymously, when in fact they mean two different types of employee churn and both have an impact on employee retention. What differentiates the two types of employee departures, what do they mean for your bottom line, and how can they be controlled? Employee Attrition Versus Employee Turnover Employee churn is the best way to describe both employee turnover and attrition rates.
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