Rate of attrition refers to the measurement or calculation of the decrease or depletion in the number or quantity of something over a specific period of time. It is commonly used in various fields, such as business, human resources, finance, and demographics, to assess the speed or intensity at which certain factors, individuals, or resources are diminishing or being lost.
In a business or organizational context, rate of attrition typically focuses on the reduction or turnover of employees, customers, clients, or members. It is often expressed as a percentage or ratio, indicating the proportion of individuals or entities that leave the organization or cease engagement within a given timeframe. The rate of attrition is influenced by various factors such as job dissatisfaction, retirement, relocation, competition, market trends, or changes in customer preferences. Tracking the rate of attrition can help organizations identify and analyze patterns, trends, or potential causes behind the loss of human capital, customer base, or market share.
In a financial context, the rate of attrition may refer to the diminishing value of an asset, investment, or portfolio over time. It assesses the decline or erosion of value, often due to depreciation, obsolescence, market fluctuations, or other factors impacting the asset's worth.
Overall, the rate of attrition is a quantitative measure that allows businesses and organizations to monitor, evaluate, and address the decreasing or losing factors in order to devise strategies for retention, improvement, or growth.
