Attrition rate and retention rate are two key metrics used to measure employee turnover in a business. Attrition rate is the percentage of employees who leave the company in one year, usually calculated at the end of the year. Retention rate is the percentage of current employees who have been with the company for more than one year. Both help employers gain insight into their staff’s performance and satisfaction levels.

Attrition rate reflects how well a business is able to meet its recruitment goals and sustain a healthy workforce over time. It also shows how many employees are choosing to leave the organization. A high attrition rate may suggest that the company is not doing enough to retain existing staff or attract new talent.

Retention rate, on the other hand, gives the employer an idea of how many current employees are sticking around for long periods of time. A higher retention rate means that employees have a sense of loyalty to the company – which can ultimately lead to improved productivity and profitability.

Ultimately, both attrition rate and retention rate are important indicators of a business’ success in keeping its workforce satisfied and engaged, as well as being able to find and retain qualified staff members.