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Employee Attrition

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  • 1. By : Vinay SatturSattur.vinay@gmail.com
  • 2.  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
  • 3.  Good Attrition – Less Productivity Employees Leaving Bad Attrition – High Performers Leaving Market driven Attrition – Influenced by market changes Workload/ Stress Driven – Low band-width of employees Process Driven Attrition – Organizational Process
  • 4. Better PayOver Expectation from the Work PlaceMismatch of Job Role and Skills of Employee Cont…
  • 5. Lack of growth Opportunities Lack of appreciation Uncooperative Team Members
  • 6. Long Work Timings Health/Age ProblemsInability to manage pressure
  • 7.  Motherhood for Women Employees Manager Higher Studies Self Employment Varied Career Aspirations(Live their Dream)
  • 8. 0 2 4 6 8 10 12 14 Length of Tenure
  • 9. Large proportion of employees leave within twoyears of tenureJob Shoppers – Early stages of career. Urgency to get more in less time. Trial and Error
  • 10.  Low productivity – Notice Period, Knowledge Transfer‣ Loss of knowledge, expertise‣ Loss of picked up business relationships.‣ Negative impact on other team members.‣ Benefit to competitor‣ Excess Work Load
  • 11. The formula and correct logic behind calculation of ATTRITION RATE) {(no. Of attritions x 100) / (Actual Employees + New Joined)} 100 Examples: Actual Employees No. Of people left No. Of Joined Total Employees (Attritions) (Current Headcount) 150 20 25 155 So according to the formula: ((20 x 100) / (150 + 25)) / 100 Which comes to 0.1142 i.e. 11% Now as you had 150 previously and now 25 joined so it makes 150 + 25 =175 Now if you calculate 11.42% of 175 i.e. 175 x 0.1142 = 20
  • 12.  Fresher’s : Percentage fresher’s leaving the organization within one year Infant Attrition : Percentage of people leaving the organization within one year Critical Resource Attrition : Key men/women leaving the company Low Performer Attrition : Those who left due to poor performance.
  • 13.  Recruiting Costs Recruiting Time and Manpower Training and Orientation Costs Lost Productivity Costs New Hire Costs
  • 14.  Low productive employees leave High pay scale employees leave New ideas, attitude, approach will enter Removes bottleneck in the progress of the company. Creates space for new talents Will be able to reward deserving employees