In the best of worlds, employees would love their jobs, like their coworkers, work hard for their employers, get paid well for their work, have ample chances for advancement, and flexible schedules so they could attend to personal or family needs when necessary and never leave.
But then there’s the real world. And in the real world, employees do leave, either because they want more money, hate the working conditions, hate their coworkers, want a change, or because their spouse gets a dream job in another state.
In today’s competitive global world, hiring the right people & retaining them has become the greatest challenge faced by any organization. With increased job opportunities and business developments, Attrition has become the major problem faced by organizations. Retaining the key talent is essential for an organization’s sustainable growth and hence, countering & controlling attrition has become one of the major concerns in the business world.
Clearly a competitive advantage in today’s turbulent employment environment is not achieved easily. Building a stable workforce takes considerably more than just throwing money at people or giving them use of a fancy car. There’s more involved than just a lot of aggressive recruiting or strong attention to retention. To achieve workforce stability, with all its financial and operational advantages, employers must invest energy in resources in a range of discrete strategies. When woven together, these various aspects create a comprehensive model for building and maintaining that coveted condition of a solid, stable workforce that drives more dollars to the bottom line.
The following categories fall under attrition
In the recent decades the Indian industry has changed its outlook. The employment scene has changed its appearance. The factors like skill sets, job satisfaction drive the employment and not just the money. The employer hence faces the heat of continuous employee turnover. Continuous efforts are made by organisations to control the employee turnover rate as it directly affects the performance of the organisation as many key people leave the organisations for various reasons at crucial points. This turnover is normally known as ATTRITION.
A reduction in the number of employees through retirement, resignation or death.
Defining Attrition rate:
The rate of shrinkage in size or number.
In the best of worlds, employees would love their jobs, like their coworkers, work hard for their employers, get paid well for their work, have ample chances for the advancement, and the flexible schedules so they could attend to personal or family needs as and when necessary.
But then there’s the real world. And in the real world, employees do leave, either because they want more money, hate their co-workers, want a change or because their spouse gets a dream job in another state. So, what does the turnover cost? And which employees are likely to have the highest turnover? Who is likely to stay the longest?
Impact of attrition
Direct impact: A high attrition indicates the failure on the company’s ability to set effective HR priorities. Clients and business get affected and the company’s internal strengths and weaknesses get highlighted. New hires need to be constantly added, further costs in training them, getting them aligned to the company culture, etc.,—all a challenge.