Updated March 2025
New data suggests that skills-based hiring works exceptionally well to improve the metrics high-volume recruiters care about. How well? Let’s find out by zooming in on one that is crucial: attrition.
Attrition is a tricky KPI because so many factors can affect it. In this post, you’ll learn about average attrition rates and seven actionable strategies for lowering this all-important metric.
What Is Attrition and Attrition Rate?
Attrition refers to employees leaving a company for any reason. For example, they may resign, be terminated, retire, or pass away. “Attrition,” “turnover,” and “churn” are often used interchangeably.
Attrition rate calculates the percentage of employees who exit within a given period. This percentage is typically measured annually, but teams can track it monthly or quarterly. The formula is:
(Number of employees who left ÷ average number of employees) × 100 = attrition rate (%)
Let’s say a call center starts the year with 500 agents. Over 12 months, 200 agents leave due to resignations and terminations. Working out the average number of employees takes the sum of the starting and ending numbers, then dividing by two. So, the average number of agents would be 400. The attrition rate would be 50% = (200 ÷ 400) × 100.
Understanding Average Attrition Rates
Attrition rates aren’t one-size-fits-all. While turnover is natural, high attrition may signal deeper workplace issues that companies must address. However, contributing factors (e.g., job intensity, pay, career growth opportunities, etc.) vary widely between companies. So, a “good” or “bad” attrition rate is relative.
LinkedIn’s 2022 study of attrition across a 12-month window found that accommodation and retail had higher rates than the global average of 10.6%.

While attrition rates differed between industries, they varied greatly by department and company size. For example, HR departments had the highest attrition rates at 14.6%. Small-to-medium-sized businesses (SMBs) also had higher rates (12%) than enterprises (9.9%).
Clearly, there’s a lot to consider when measuring attrition. Anyone considering benchmarking their company’s rate with an industry average should look at relative company size, industry, and department.
Why Is Call Center Attrition Such a Huge Problem?
High attrition in call centers leads to constant staffing disruptions, increased hiring costs, and declining service quality. It’s a major issue for most customer service roles, where high agent turnover rates are typical.
According to Quinyx research, 55% of frontline workers considered quitting their jobs last year.

This costly, disruptive cycle strains employees, finances, and operations. But when employees leave, it doesn’t just impact their colleagues—imbalanced employee lifetime value (ELTV) hits the company’s bottom line.
Five critical consequences of high attrition for call center operations involve:
- Increased hiring and training costs. Gallup estimates replacing frontline employees can cost organizations 40% of their salary. Recruitment, training, and lost productivity costs compound quickly if turnover is high.
- Lower customer satisfaction (CSAT). New agents take time to get up to speed. Longer handling times, more errors, and inconsistent service can frustrate customers and reduce CSAT scores.
- Reduced productivity and agent performance. Attrition disrupts workflows. Remaining employees must handle more calls, train new hires, and deal with operational slowdowns.
- Declining morale. When teams experience constant turnover, agents can feel overworked and unsupported. The increase in stress and frustration can lead to even more resignations.
- Weakened employer brand. If a call center is known for high attrition, attracting and retaining top talent becomes harder. Companies may be forced to hire less-experienced employees who are more likely to leave.
Addressing call center attrition is essential to breaking the costly turnover cycle and maintaining high service quality—while protecting your company and employees.
Key Drivers of Call Center Agent Attrition
High attrition rates can directly reflect the difficulties agents face daily. Call center jobs are often challenging, and turnover becomes a recurring issue when they go unaddressed.
The main drivers of call center agent attrition include:
- Job stress. Agents often handle high call volumes, demanding customers, and strict performance monitoring. This poor routine can lower job satisfaction and lead to burnout.
- Lack of development opportunities. Many call center employees don’t see a clear career path to promotion, making them more likely to leave for better roles.
- Low pay. Many call centers offer entry-level wages that may not be competitive in tight job markets.
- Leadership quality. Poor management, lack of support, and ineffective coaching can lower employee engagement and drive some to quit.
- Temporary gig mentality. Some employees take call center jobs while studying or as stepping stones while searching for long-term careers elsewhere.
A high attrition rate doesn’t just create short-term headaches. It can drive up long-term costs, reduce operational efficiency, and make retaining team members and customers harder.
New Data on Attrition Rates in Call and Contact Centers
For contact center staffing, attrition can be dramatic next to the total industry average—putting more pressure on the volume of hires needed. According to Deloitte research, the average attrition rate for contact center agents was 52% in 2023. In a call center, agent attrition rates can be as high as 38%.
That said, should all contact centers measure themselves against this standard?
Recent data suggests that attrition rates vary significantly from a geographical perspective alone. The research revealed that average call center attrition rates ranged from as low as 5% in Austria to as high as 28% in India.
There was also an observable difference between companies that hired using in-house teams and those that outsourced this function. For example, in Sweden, attrition rates measured 8% and 19%, respectively—a 16% difference for the same type of industry in the same location.
Attrition rates depend on multiple factors, making industry-wide comparisons complex.
How to Reduce Average Attrition Rates in Customer Service and Sales
Skills-based hiring is a proven way to lower attrition because it helps companies hire new employees with the right abilities and temperament. Instead of relying on past job titles or degrees stated in resumes, recruiters can get to the problem’s root cause by offering roles based on job-relevant skills.
Our recent Skills-Based Hiring Performance Report looked at over 5,000 candidates who took a soft skills assessment as part of their interview process. Of those who were hired, the pool was analyzed by role, top and bottom performers, and those who attrited after four months. These were the results:
- For every one top-skilled customer service employee hired, 27.3 bottom-skilled employees attrited
- For every one top-skilled sales employee hired, 9.8 of the bottom-skilled employees attrited

Overall, this means that highly skilled candidates and employees will attrit less. In turn, identifying skilled performers during the hiring process allows organizations to curb attrition rates, especially for high-volume roles. The same research also suggests that this type of recruiting reduces bad hire rates by 400% in large enterprises:

By focusing on objective, skills-based data (rather than resume screening) teams can quickly identify a better quality of hire that is more suited to the role. Pre-hiring skills assessments allow high-volume recruiters teams to screen the skills of thousands of applicants in as little as 20 minutes using conversations set up like a job preview. These “on-the-job” scenarios also help candidates know what to expect, making them less likely to attrit in early tenure.
6 More Ways to Reduce High Attrition Rates
Hiring the right agents is the first crucial step in lowering attrition. But in competitive job markets, employees need compelling reasons to stay beyond just a paycheck. Companies must do more to help agents feel valued, supported, and motivated to stay.
Here are six ways to encourage employee retention in high-volume roles:
1. Improve Initial Training and Onboarding
Solid onboarding processes lay the foundation for long-term success. New hires who feel confident and prepared in their roles in the first few weeks are far more likely to stay. A well-structured onboarding process can reduce early turnover and improve performance.
For example, companies may pair new sales reps with more experienced agents for their first two weeks. Or even include role-playing exercises to navigate tough negotiations.
In telecommunications, interactive, hands-on training helps employees build confidence before handling live calls. Structured guidance and ongoing support can make all the difference in an employee’s early experience.
Here are four ways to improve call center employee onboarding:
- Move beyond basic orientation—offer structured training programs that include real-world call simulations and mentorship
- Set clear expectations and provide consistent feedback to help new hires adjust
- Establish performance benchmarks (e.g., target average handle times or resolution rates) and provide reference guides to help new agents measure progress
- Use interactive tools (e.g., micro-learning platforms that deliver bite-sized sessions) to make training engaging and effective
A strong onboarding experience does more than help new hires get up to speed. It builds confidence, improves retention, and creates a more productive workforce.
2. Introduce Employee Reward Programs
Recognition is crucial in roles where employees handle repetitive and often stressful tasks. Rewarding excellent performance empowers agents and helps to keep them engaged. A well-designed reward system boosts morale and can reinforce positive behaviours.
For example, customer experience (CX) managers may introduce points-based programs for contact center agents like this:

Team members can earn rewards for meeting quality or efficiency targets. These performance-based incentives are a popular way to encourage agent retention and reduce absenteeism. For example, companies may offer:
- Monetary bonuses
- Profit-sharing opportunities (based on company earnings)
- Gift cards or company swag
- Extra time off
- Wellness perks (e.g., access to fitness or meditation apps)
Leadership can also publicly recognize employees. For example, encourage “shoutouts” in team meetings or create a “top performers” leaderboard. Even a simple thank-you message from the CEO can go a long way in making employees feel valued.
3. Provide Competitive Compensation
Fair pay is one of the most significant factors in retention. If salaries are too low compared to the broader industry, even the best workplace culture won’t stop employees from looking elsewhere.
A 2020 Harvard University study found that raising warehouse workers’ pay by $1 per hour increased retention rates by 2.8%. On the other hand, a $1 per hour loss in pay increased turnover rates by 28%.
Addressing low salaries makes it easier to retain skilled employees. Some companies may use tiered pay structures, where agents can earn incremental raises. Others might offer end-of-year bonuses or higher pay for late or high-demand hours.
Here are three ways to ensure compensation remains competitive:
- Conduct regular market analysis to ensure salaries align with industry standards
- Offer retention bonuses to reward long-term commitment
- Provide cost-of-living adjustments to keep payment in line with inflation and rising expenses
If higher salaries aren’t an option, consider performance-based bonuses or additional benefits (we’ll explain these in the next section).
4. Include Extra Role Benefits
Beyond salary, the right benefits package can be a game-changer for retention. Employees value perks that improve their well-being and work-life balance. Healthcare, flexible work arrangements, and wellness programs can significantly affect an employee’s decision to stay long-term.
For example, a company that starts offering flexible hours may see improved retention among employees who are also caregivers outside work. According to Cisco research, 82% of workers are happier being allowed to work from anywhere, and 60% are more productive.
Companies that invest in benefits often create a more engaged and loyal workforce. Providing perks that support employees’ physical, mental, and financial health can make a role more attractive and sustainable, especially in high-turnover industries.
Here are six valuable benefits to reduce employee attrition:
- Workplace pensions. Offering retirement savings plans helps employees prepare for the future.
- Health insurance. Access to quality healthcare reduces financial stress and improves general well-being.
- Mental health support. Counseling services or employee assistance programs (EAPs) can help manage stress.
- Gym memberships. Allowing employees to use funds for gym memberships helps encourage a healthier lifestyle and improve day-to-day mood.
- Remote or hybrid working options. Work environment flexibility can significantly improve job satisfaction and retention.
- Financial planning resources. Budgeting workshops or lectures about debt management can help employees feel more secure.
A strong benefits package can make a role far more attractive, helping companies retain top talent in competitive job markets.
5. Offer Upskilling and Reskilling Opportunities
Employees often leave because they don’t see a future in their current positions. Upskilling helps employees expand or refine their skills in current roles. Reskilling trains employees for entirely new roles as business needs change. By investing in skill development, hiring managers can help team members focus on growing within the company instead of looking elsewhere.
The above-mentioned Deloitte study found that contact centers investing in agents’ career progression report 15% lower annual attrition than those that don’t. Plus, employees are keen for these career development opportunities. According to PwC, 77% are ready to adapt to new ways of working, and 72% are excited about learning and career growth.

Clear career advancement pathways increase engagement and reduce feeling “stuck” in a job. For example, a company implementing a new omnichannel platform may train call center agents to manage conversations across multiple channels.
AI-powered training assessments allow managers to map which agents need upskilling in which areas through on-the-job simulations and track their progress.

This type of engaging training can have a powerful impact, improving employees’ soft skills by 20%.
Other upskilling and reskilling opportunities can include:
- Training programs. Hands-on learning to develop role-specific competencies (e.g., problem-solving, empathy, and communication skills).
- Coaching and mentoring. Pairing employees with experienced colleagues for professional development.
- Real-time feedback loops. Continuous guidance (i.e., during live chats or calls) to refine skills and boost confidence.
- Job shadowing and rotational programs. Exposure to different roles and departments to explore career growth.
- Leadership training and experiences. Preparing employees for supervisory roles.
6. Enhance Work Environments and Leadership
Retention isn’t just about salary and benefits. It’s also about how employees feel at work. Supportive leadership and a healthy culture make all the difference. Employees who feel heard, respected, and supported are far more likely to stay.
For example, many forums blame the problem of high call center turnover rates on poor leadership:

Companies must train call center managers to recognize employee strengths and provide constructive feedback. Creating a more supportive work environment can be enough to encourage some team members to stay.
Here are four ways to prevent workplaces from negatively impacting employee turnover rate:
- Research and implement tools (e.g., intelligent call routing software) to help employees do their jobs and provide a better CX
- Guide supervisors and center leaders to be coaches, focusing on mentorship, active listening, and constructive feedback
- Conduct regular surveys to get employee feedback and act on the results
- Train employees regularly to encourage autonomy and reduce micromanagement
By encouraging a culture of respect and collaboration, companies can increase employee satisfaction and build stronger team connections.
Takeaways on Average Attrition Rates
Many factors can affect attrition, from industry to company size, location, hiring function, and more. With so many variables, apples-to-apples comparisons can be challenging to make. Use the average attrition rates here cautiously, aiming to get as close to your organization’s circumstances as possible.
Benchmark your average rate over a given period. Use that as your baseline, and then use the strategies above to improve it. And if you’re in high-volume recruitment, consider screening for skilled candidates in the hiring process to reduce attrition rates down the road.
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