Attrition is a reduction of staff for voluntary or involuntarily reasons such as retirement, resignation, personal health, or other similar reasons. Attrition is the rate at which members of staff leave the workforce over a given period of time.
Most employers prefer a low attrition rate because it means that employees are satisfied and they don’t have to train new people.
Employee Attribution vs Employee Turnover
Employee attrition refers to the lifecycle of your workforce: it is not normally a negative representation of the company. Employees move away, pass away or retire; they could leave to raise a family or go back to school. Regardless, whatever their reason for leaving your company isn’t because they have an issue with you, it is merely a result of life happening.
Employee turnover, on the other hand, could be a result of poor hiring decisions or even a hostile or discriminatory work environment. Employee turnover usually applies to those members of staff who left the company due to termination, taking a job they deem better, or because they believed they couldn’t grow or further their career with your company. Here are a few tips that could improve the employees’ retention rate listed as follows:
- Communicate your vision
- Pay attention to employee satisfaction
- Improve work conditions and pleasant workspace
- Offer competitive pay and benefits
- Show the career path
- Allow Flexible Work Schedules
Rate of Attrition Formula:
ATTRITION RATE (%) = (Number of leaves / number of employees) x 100
Rate of Attrition Example
- Number of employees leaving = 15
- Average number of employees employed = 80
The rate of attribution is:
- ATTRITION RATE (%) = (Number of leaves / number of employees) x 100
- = (15 / 80) * 100
- = 18.75%
Employment Attribution Template
List the Attrition factors for presentation and improvement actions: