Attrition

Attrition is the loss of employees from a company. It can be caused by a number of factors, including voluntary turnover (employees leaving of their own accord) and involuntary turnover (employees being laid off or fired).

There are a number of ways to calculate attrition. One common method is to divide the number of employees who left during a given period by the average number of employees during that period. Another method is to track the number of employees who leave each month and then calculate the annualized rate of attrition.

Attrition can have a significant impact on a company's bottom line. When employees leave, the company loses their skills and knowledge. This can lead to decreased productivity and increased costs. In addition, the company may have to spend money on recruiting and training new employees.

There are a number of things that companies can do to reduce attrition. These include providing competitive salaries and benefits, offering opportunities for professional development, and creating a positive work environment.

Involuntary turnover can be particularly costly for companies. When employees are laid off or fired, they may receive severance packages that can include pay, benefits, and outplacement services. In addition, the company may have to pay unemployment insurance premiums.

Attrition can also have a negative impact on employee morale. When employees see their colleagues leaving, they may start to worry about their own job security. This can lead to decreased productivity and increased turnover.

It is important for companies to monitor their attrition rates and take steps to reduce them. By doing so, they can improve their bottom line and create a more positive work environment.