Glossarytaught in M5.06
Attrition
Also called employee attrition, staff turnover.
The rate at which employees leave, annualised. For Indian information technology services, 12% to 15% is normal and above 20% is a problem.
High attrition raises costs directly through recruitment and training, and indirectly through the loss of institutional knowledge on client accounts.
It's also a demand indicator read backwards. Attrition spikes when the industry is hiring, which is when demand is strong, and falls when it's not.
Read it against net headcount additions.