What is meant by "Attrition" in a workplace setting?

Attrition in the workplace refers specifically to the reduction of the workforce for various reasons, most commonly due to natural factors such as employees voluntarily leaving the organization, retirement, or other forms of resignation. It encompasses situations where the workforce decreases without the company necessarily conducting layoffs or forced dismissals. This can occur as employees transition to new jobs, pursue other personal choices, or reach retirement age.

The concept implies a gradual process where the impact on the company is often less disruptive than mass layoffs, allowing the organization to adjust its staffing levels over time in response to natural turnover rates. Understanding attrition is critical for businesses, as it can affect workforce planning, budgeting, and overall organizational efficiency. Companies often monitor attrition rates closely as they can provide insights into employee satisfaction and engagement.