Attrition or Employee Attrition means a natural decline in the number of employees working in an organization due to ordinary reasons like resignation, retirement, termination, personal health, removal of certain job positions, or any other reason. It is basically a reduction in staff and is not replaced. A higher attrition rate is not considered good for the business as it affects employee stability. It also leads to loss of productivity and increases the workload for remaining employees.
There is also another type of attrition that refers to a company losing its customer base that is called customer attrition.