What is Attrition?

In the business world, attrition refers to the unpredictable reduction in employed workforce. Causes of such reduction are often unavoidable and include retirement, resignation, permanent sick leave and deceased employees. In evaluation, a company will define attrition rate as high or low. Companies with a high attrition rate face increased use of internal resources due to a continual recruitment and hiring process.

A broader attrition definition includes the loss of company resources of products due to similarly uncontrollable reasons such as spoilage in perishable goods or assets growing obsolete.

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