The document discusses attrition, which is defined as a reduction in employees through retirement, resignation, or death. Good attrition refers to less productive employees leaving, while bad attrition means high performers are leaving. There are different types of attrition like market-driven, workload-driven, and process-driven. Factors that influence attrition include pay, growth opportunities, work-life balance issues, and manager or team problems. The attrition rate formula is also provided. Managing attrition properly can help reduce costs while allowing an organization to remove low performers and make space for new talents.

1. By : Vinay Sattur
Sattur.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 Pay
Over Expectation from the Work Place
Mismatch 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 Problems
Inability 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 two
years of tenure
Job 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