What is Attrition?

Attrition refers to the natural, gradual reduction of a workforce that occurs when employees leave through resignation, retirement, or other voluntary departures and their positions are intentionally left unfilled. This distinguishes attrition from turnover, where departing employees are replaced. Attrition is often used as a strategic workforce reduction tool — organizations facing cost pressures or restructuring may choose to reduce headcount through attrition rather than layoffs, allowing natural departures to achieve the desired reduction over time.

Attrition can be planned or unplanned. Planned attrition occurs when an organization deliberately chooses not to backfill certain positions as part of a workforce reduction strategy. Unplanned attrition occurs when departures in roles that the organization intended to retain exceed the ability or willingness to replace them — creating unexpected capability or capacity gaps.

The attrition rate is calculated similarly to turnover rate but reflects positions that were not backfilled. Organizations sometimes set attrition targets as part of cost management — for example, "achieving a 10% headcount reduction through natural attrition over 18 months." While attrition is generally less disruptive and less damaging to morale than layoffs, it carries risks: the employees who leave voluntarily are often the most marketable (and therefore most valuable), and the resulting capability gaps may not align with strategic priorities. Managing attrition effectively requires monitoring who is leaving (not just how many) and ensuring critical capabilities are preserved.

Attrition offers organizations a less disruptive path to workforce reduction than layoffs, preserving morale and employer brand. However, unmanaged attrition can erode critical capabilities and create unsustainable workloads for remaining employees. For HR leaders, understanding the distinction between attrition and turnover — and actively managing which positions are refilled versus retired — is essential for workforce planning and cost management that does not sacrifice long-term organizational capability.