Voluntary attrition

Voluntary attrition is the loss of employees who choose to leave an organization. Common reasons include resigning for a new job, relocating, returning to school, and, in many definitions, retiring. A resignation still counts as voluntary when the employee feels they had no choice, such as for health reasons or a toxic work environment.

Involuntary attrition covers exits the employer initiates, such as terminations, layoffs, and performance-related dismissals. Companies have more control over voluntary attrition, so tracking it separately from the overall attrition rate shows how much of the loss they can influence. Regrettable attrition is the subset of voluntary exits by employees the company wanted to keep.

In workforce planning and FP&A, voluntary attrition is a core forecast assumption. Expected departures shape headcount planning, backfill hiring plans, recruiting costs, and salary expense forecasts.