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Employee attrition is the rate at which organizations and/or company's hiring and

fre employees to either represent their frm or leave their frms. It it also referred
to the employee turnover rate.
A reduction in the number of employees through retirement, voluntary/Involuntary
resignation or death is called }Attrition. Attrition is also called total turnover or wastage rate
} Good Attrition Less }roductivity !mployees Leaving "ad Attrition #igh
}erformers Leaving $ar%et driven Attrition }Influenced by mar%et changes &or%load/
'tress (riven }Low band)width of employees rocess (riven Attrition *rgani+ational
"etter ay*ver !,pectation from the &or% lace$ismatch of -ob .ole and '%ills of
!mployee /ont0
Lac% of growth *pportunities Lac% of appreciation 1ncooperative 2eam $embers
Long &or% 2imings #ealth/Age roblemsInability to manage pressure
} $otherhood for &omen }!mployees }$anager }#igher 'tudies }'elf !mployment
3aried /areer Aspirations4Live their (ream5
6 7 8 9 : ;6 ;7 ;8 Length of 2enure
Large proportion of employees leave within twoyears of tenure-ob 'hoppers !arly
stages of career. 1rgency to get more in less time. 2rial and !rror
Low } productivity <otice eriod, =nowledge 2ransfer Loss of %nowledge, e,pertise
Loss of pic%ed up business relationships. <egative impact on other team members. "enefit
to competitor !,cess &or% Load
2he formula and correct logic behind calculation of A22.I2I*< .A2!5 >4no. *f
attritions , ;665 / 4Actual !mployees ? <ew -oined5@ };66 }!,amplesA Actual !mployees
<o. *f people left <o. *f -oined 2otal !mployees 4Attritions5 4/urrent #eadcount5 ;B6 76
7B };BB 'o }according to the formulaA 4476 , ;665 / 4;B6 ? 7B55 / ;66 &hich comes }to
6.;;87 i.e. ;;C <ow as you had ;B6 previously and now 7B Doined }so it ma%es ;B6 ? 7B
E;FB <ow if you calculate ;;.87C of ;FB i.e. ;FB , 6.;;87 E 76
} GresherHs A ercentage }fresherHs leaving the organi+ation within one year Infant
Attrition A }ercentage of people leaving the organi+ation within one year /ritical .esource
Attrition A }=ey men/women leaving the company Low erformer Attrition A 2hose who left
due to poor performance.
} }.ecruiting /osts }.ecruiting 2ime and $anpower 2raining and }*rientation /osts
}Lost roductivity /osts <ew #ire /osts
} }Low productive employees leave }#igh pay scale employees leave }<ew ideas,
attitude, approach will enter .emoves bottlenec% in the progress of the }company. }/reates
space for new talents &ill be able to reward deserving employees
Attrition is the reduction in the number of employees in organi+ation due to resignation,
retirement or death.
Layoffs and firings shall not be considered while calculating/determining attrition.

Attrition % = (No. of employees left the organization/ average Heado!nt" # $%%
Average headcount = (opening balance +closing balance )/ 2
Ann!alized Attrition = monthly Attrition % & $'
&hat is AttritionI A process where by employees leave their Dobs for reasons such as
retirement, resignation, transfer etc .
/ost Involved in Attrition
/ost (ue to erson Leaving
.ecruitment /osts
2raining /osts
Lost roductivity /osts
<ew #ire /osts
Lost 'ales /ost
/urbing #igh Attrition .ate
2op $anagement should continuously communicate with all employees about the
vision and mission of the company.
Line $anagers should establish a connection between the lower level and top
'upport #. initiatives aimed at retaining people.
/urbing #igh Attrition .ate
$anage /ompanyHs growth roperly
(evelop Leaders at all Levels.
2rain Leaders in the s%ills they need to manage effectively.
2reat !mployees Li%e customers.
&hy eople LeaveI
$onetary Gactors
Lac% of Good &or%ing /ondition
<o Gle,ible &or% 'chedules
Lac% of .espect and ride
3ery few 'upportive /olleagues
&hy eople LeaveI
Lac% of Appreciation
Lac% of /hallenges in -ob
$ismatch between -ob and erson
Lac% of /oaching and Geedbac%
&or% Life Imbalace
!mployee .etention rocess in which the !mployees are encouraged to remain with the
organi+ation for the ma,imum period of time.
!mployee .etention /ompanies that lose top performers may not only e,perience
declines in productivity but also incur significant costs in replacing these professionals.
!ffective !mployee .etention 'trategies Intelligent !mployers always reali+e the
importance of retaining h best talent. .etention of %ey !mployee is critical to the long term
health and success of any organi+ation.
.etention 'trategies /ommunicate !ffectively &ith the !mployees !ncourage your
!mployees to share their concerns with you and in turn share your concerns with them. 2his
fosters openness and trust between all parties involved.
.etention 'trategies 'earch for &ays to .edeploy !mployees It doesnJt ma%e sense,
financially or otherwise, to get rid of valuable employees during an economic downturn.
Instead, shift these wor%ers to other areas that are still performing well
.etention 'trategies $a%e &iser /hoices &hen #iring !mployees /onsider the
corporate culture that this prospective employee must fit into and determine if there is a
.etention 'trategies
"e an !ffective, !thical Leader
o KLC of wor%ers said their supervisor failed to %eep promises.
o KFC indicated their supervisor failed to give credit.
o K;C said their supervisor gave them the MNuotOsilent treatmentP
o 7FC report their supervisor made negative comments about them to other
employees or managers.
o 7KC said their supervisor blamed other to cover up personal mista%es or
minimi+e embarrassment
.etention 'trategies
"e an !ffective $otivator and Innovator
Inspire your employees to achieve great things.
"elieve in their capabilities.
!ncourage them often to stretch out of their comfort +ones.
Listen to their ideas and implement them.
In a nutshell, champion them and they will champion you and the company.
.etention 'trategies
2reat !mployees .espectfully
Qour employees are your companyJs best asset and you must protect and nurture them.
&hether you %now it or not, you are in the business of growing people.
Let them %now how valuable their contributions are to the company.
.etention 'trategies rovide Alternate &or% 'chedules Allows employees to gain greater
control over how, where, and when they wor% which leads to better wor%/life balance and
helps to retain them.
/onclusion (o everything you can to ma%e sure that you %eep your employees happy,
engaged, and productive. Qour company depends on it