{"id":12126,"date":"2023-08-09T10:49:59","date_gmt":"2023-08-09T05:19:59","guid":{"rendered":"https:\/\/businessjargons.com\/?p=12126"},"modified":"2023-08-24T12:11:22","modified_gmt":"2023-08-24T06:41:22","slug":"employee-attrition","status":"publish","type":"post","link":"https:\/\/businessjargons.com\/employee-attrition.html","title":{"rendered":"Employee Attrition"},"content":{"rendered":"

Definition<\/strong>: Employee Attrition refers to the employee’s departure process from the company in which employees leave the job due to unavoidable reasons and are not replaced for a long time. This means that the vacancies remain open for a long time or the role is eliminated completely, i.e. the company does not hire anyone else for that position.<\/p>\n

It is an unexpected reduction in the workforce due to retirement, resignation, layoff or death. It indicates the rate of change in a company’s workforce during a specific period. It is a natural thing that workers leave the organization. Moreover, it is a cycle wherein employees permanently vacate their official position in the company.<\/p>\n

In other words, employee attrition is the gradual but deliberate decrease in the size of the working staff over time. This implies that the rate of employees leaving the organization is faster than employees joining the organization.\"employee-attrition\"<\/a><\/p>\n

Though employee attrition occurs organization-wide, it may occur in specific parts of the business. The reason is automation or the adoption of new technology.<\/p>\n

What is the Attrition Rate?<\/h3>\n

The attrition rate is a metric that measures the rate at which employees leave the organization for any reason. In short, it gauges the pace of employee turnover, indicated as a percentage.<\/p>\n

In a scenario where more and more employees quit the company, then there will be a rise in the rate of attrition. If the company wants to reduce this attrition, it is necessary to identify the primary cause of attrition.<\/p>\n

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Calculation of Attrition Rate<\/h4>\n

To calculate the rate of attrition, you need to divide the total number of employees who left the organization, and their position is unfilled by the average number of employees at the organization over a given period of time.<\/p><\/div>\n

Types of Employee Attrition<\/h2>\n

\"types-of-employee-attrition\"<\/a><\/p>\n

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  1. Voluntary<\/strong>: Employee decides to leave the company, then such attrition is voluntary attrition. In this case, the employee resigns due to personal reasons. This may include resigning or quitting the job due to health issues, accepting a new job offer etc.<\/li>\n
  2. Involuntary<\/strong>: If the company decides to end employment, it is involuntary attrition. This takes place due to poor performance of the employee. Companies also do this to reduce staffing costs or to eliminate positions. This may include termination and layoff.<\/li>\n
  3. External<\/strong>: An employee leaving the company to join another company is called external attrition. Generally, it happens when the employee gets the opportunity to take a position which is similar to or better than his current position, with better pay.<\/li>\n
  4. Internal<\/strong>: When an employee accepts another position in the same company, either to work in another department or receive a promotion.<\/li>\n<\/ol>\n

    Causes of Attrition<\/h2>\n

    \"causes-of-attrition\"<\/a><\/p>\n