{"id":2812,"date":"2022-10-05T09:00:00","date_gmt":"2022-10-05T13:00:00","guid":{"rendered":"https:\/\/www.dailypay.com\/2018\/08\/22\/employee-turnover-vs-attrition\/"},"modified":"2023-10-20T17:22:26","modified_gmt":"2023-10-20T21:22:26","slug":"employee-turnover-vs-attrition","status":"publish","type":"post","link":"https:\/\/www.dailypay.com\/resource-center\/blog\/employee-turnover-vs-attrition\/","title":{"rendered":"What is The Difference Between Employee Turnover and Employee Attrition?"},"content":{"rendered":"\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t

Employee churn is the best way to describe both employee turnover and attrition rates. What differentiates the two types of employee departures, what do they mean for your bottom line, and how can they be controlled?<\/span><\/p>\n

Employee Attrition Versus Employee Turnover<\/span><\/h2>\n

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 <\/span>employee retention<\/span><\/a>.<\/span><\/p>\n

Both employee attrition and employee turnover decrease the number of employees on staff, but employee attrition is typically voluntary or natural \u2014 like retirement or resignation.<\/span><\/p>\n

Turnover focuses on both voluntary and involuntary departures. While turnover includes employees who leave of their own volition, it also refers to employees who are involuntarily terminated or discharged. With turnover, HR is tasked with replacing employees, whereas spots left open from employee attrition may remain unfilled.\u00a0<\/span><\/p>\n

Find out how much your company can save by reducing your turnover rate with this <\/span>interactive calculator<\/span><\/a>.<\/span><\/p>\n

The Cost Difference Between Employee Attrition Versus Turnover<\/span><\/h2>\n

Just as the definitions between employee attrition versus turnover are different, the costs associated with them are too.<\/span><\/p>\n

Employee attrition is often viewed as a way that companies can decrease labor costs. Take for instance more severe forms of attrition\u2014like layoffs\u2014which are often deployed as a labor reduction technique. If an employee leaves naturally, and their spot no longer needs to be filled, organizations can freeze hiring to reduce staffing costs.<\/span><\/p>\n

There is overlap between the two types of churn though.<\/span><\/p>\n

Some employee attrition can cost as much as turnover. When a voluntary resignation requires a replacement, it\u2019s not cheap to fill the position. The cost to replace an employee ranges from one-half to two times the employee’s annual salary.1<\/sup><\/span><\/p>\n

For organizations above a normal attrition or turnover rate, these expenses may add up drastically.<\/span><\/p>\n

The Average Employee Attrition Versus Turnover Rates<\/span><\/h2>\n

How do you know if your organization has normal attrition or turnover rates? As of July 2022, the average turnover rate across all industries was 3.9%.2<\/sup><\/span> According to the April 2022 Gartner report, the total annual employee turnover will likely jump 20% compared to pre-pandemic averages.3<\/sup><\/span> Turnover rates can vary depending on industries, <\/span>see where your company stacks up compared to your industry average<\/span><\/a>.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

\n\t\t\t\t
\n\t\t\t\t\t\n\n