“Attrition”

What is Attrition?

Attrition refers to the gradual reduction in the workforce of a company or organization due to various reasons.
It is a common phenomenon in human resources and can have significant implications for businesses.

Why Does Employee Attrition Happen?

Employee attrition occurs for several reasons, including:

• The pursuit of better career opportunities.
• Unsatisfactory work conditions or company culture.
• Retirement or voluntary resignation.
• Personal reasons, such as relocation or family matters.
• Job dissatisfaction or lack of growth prospects.

What Is an Employee Attrition Rate?

The employee attrition rate is a key metric that HR professionals use to measure the rate at which employees are leaving a company.
It is usually expressed as a percentage and can help organizations identify trends and take proactive measures.

How Do You Calculate the Customer Attrition Rate?

Customer attrition rate, often known as customer churn rate, is essential for businesses in the service industry.
It can be calculated as follows:

• Begin with the number of customers at the start of a specific period.
• Subtract the number of customers at the end of that period.
• Divide the result by the number of customers at the start.
• Multiply by 100 to get the attrition rate as a percentage.

FAQs

What are the main consequences of high attrition in a company?

High attrition rates can lead to decreased productivity, increased recruitment costs, and a negative impact on company morale.

How can a company reduce employee attrition?

Companies can reduce employee attrition by offering competitive salaries, providing opportunities for career growth,
improving workplace culture, and conducting exit interviews to understand the reasons for attrition.

Is attrition always a bad thing for a company?

Not necessarily. Attrition can also be a natural part of organizational growth and restructuring.
It allows new talent to join the company and brings in fresh perspectives.