What is Attrition Rate? Employee Turnover Metrics

#Staffing#Attrition Rate#Employee Turnover#IT Overhead

The Answer

Attrition Rate measures the annual percentage of employees leaving the organization. In services industries, high attrition spikes hiring and training overheads.

Sector Focus

IT Services

Live Examples

Infosys Wipro

Why it Matters

High attrition forces companies to rely on expensive subcontractors, increasing wage bills and depressing margins.

Sentinel Insight

“Spikes in attrition are leading indicators of subcontracting expense rises. Monitor wage inflation risks.”

📊 How to Interpret

Attrition < 10%

Stable Workforce

Attrition 10% - 18%

Normal Rotations

Attrition 18% - 25%

Hiring Pressure

Attrition > 25%

Severe Talent Leak

In Risk Context

Staffing efficiency metric in Flagium's IT sector profile.

Detect risk early

Flagium tracks these signals across multiple quarters to help you avoid structurally weak companies before it reflects in price.

Compare tech sector attrition rates →🔍

🔁 Related Topics

💻What is Resource Utilization? IT Capacity Index 📈What is EBITDA Margin? Core Operating Spreads 📊What is Gross Margin? Raw Material Spread

Flagium Risk Brief — every Saturday

📬 Flagium Risk Brief — 3 forensic anomalies investigated weekly

See a sample issue →