Employee Attrition
EMPLOYEE ATTRITION
‘An Analysis of Factors Influencing Attrition in the growing Economies’
INTRODUCTION
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.
Defining 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.
Indirect impact:
Problem for the company in attracting potential employees. Typically, high attrition also leads to a chronic or systemic cycle—attrition brings decreased
‘An Analysis of Factors Influencing Attrition in the growing Economies’
INTRODUCTION
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.
Defining 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.
Indirect impact:
Problem for the company in attracting potential employees. Typically, high attrition also leads to a chronic or systemic cycle—attrition brings decreased