What is Attrition?
Attrition most commonly refers to employee attrition, which is the natural reduction of a business’ labor force that arises from workers leaving for their own reasons, such as retirement or resignation. It is different from Employment Turnover, which also takes into account employees that are laid off. Attrition can also refer to Customer Attrition, which is the loss of customers, also known as Customer Churn, or Customer Turnover. In accounting, attrition can refer to the loss of inventory through spoilage.