Defining attrition so two teams agree
Attrition needs a written rule set covering population, time window, and what counts as a leaver, so different teams stop calculating it differently. Without that rule set, HR, finance and individual managers each make reasonable but different choices, such as whether to include contractors or internal transfers. A published rule set removes the ambiguity and the resulting disagreements.
- Define the eligible population explicitly, including which contract types count
- State whether internal transfers count as attrition at the team, division or company level
- Fix the time window and publish it alongside every reported figure
- Decide once whether short-tenure exits are included, and apply that rule everywhere
Attrition sounds like a simple division: leavers divided by average headcount. In practice, three teams computing it independently rarely land on the same figure.
Where the disagreement comes from
| Decision point | Common variation |
|---|---|
| Population | Include or exclude contractors and fixed-term staff |
| Internal transfers | Count as a leaver from the old team, or exclude entirely |
| Time window | Trailing twelve months versus calendar quarter |
| Short tenure exits | Include exits within the first 90 days, or exclude as mis-hires |
Publishing and enforcing it
- 01DraftWrite the rule set in plain language, with examples of edge cases.
- 02ApproveGet sign-off from HR, finance and analytics before publishing.
- 03AttachReference the rule set version on every report that cites attrition.
Once the rule set is published and referenced, disagreements shift from 'whose number is right' to 'do we want to change the rule', which is a far more productive conversation.
Underlag
- Our assessment
Ambiguity over whether to include contractors, internal transfers or short-tenure exits is a common source of attrition figure disagreement.
Common questions
- Should contractors be included in attrition?
- There is no universal answer; the rule set should state the choice explicitly and apply it consistently.
- How often should the rule set be revisited?
- Annually, or whenever workforce composition changes significantly, such as after a major contractor programme.