HR & People

Turnover Rate aliases: attrition rate, separation rate

The share of the workforce that leaves over a period.

The fork, why two teams get different numbers

Two forks collide here. First, "turnover" versus "attrition": many orgs

use them as synonyms, but a common distinction is that turnover counts all

separations (roles usually backfilled) while attrition counts losses where

the role is retired and not backfilled. Second, the denominator: SHRM uses

separations / average headcount, but plenty of dashboards use beginning

headcount or ending headcount instead. And composition splits voluntary

from involuntary. Same word, materially different numbers.

The trap

Annualizing a single month by x12 turns a one-off layoff into a fake ~40% run-rate.

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Reference: SHRM · BLS Job Openings and Labor Turnover Survey (JOLTS)