Employee Attrition

Employee attrition can be observed in an entire organization or just in certain departments. It usually occurs when employees are replaced by automation or new technologies. For instance, in an automobile manufacturing unit, automated machines could now perform tasks like wheel attachment or windshield installation that workers previously did, reducing the need for human workforce.

What is employee attrition?

Employee attrition is a situation where an employee departs from an organization and isn’t replaced for an extended period or not at all. This leads to a reduction in the workforce of a company or a specific department, as the vacant positions are not filled.

Why does employee attrition matter?

High attrition can disrupt productivity, affect team morale, and increase recruitment costs. It may also lead to a loss of institutional knowledge and impact customer relationships. Understanding attrition helps businesses identify retention gaps, improve culture, and build more resilient teams.

What causes employee attrition?

Several factors can lead to attrition, including:

Poor leadership or toxic workplace culture
Lack of career growth or advancement opportunities
Low compensation and inadequate benefits
Employee disengagement and burnout
Job mismatch or unclear role expectations
Limited recognition or lack of appreciation

What are the examples of employee attrition?

Examples of employee attrition include voluntary resignations, retirements, internal role changes without backfill, long-term leaves without replacement, or employees passing away. These scenarios reduce headcount without an immediate intent to refill the position.

How does employee disengagement impact attrition?

Disengaged employees are more likely to feel disconnected from the company's goals and culture, leading them to leave. Disengagement causes decreased motivation, reduced productivity, and eventually, voluntary resignations. It’s one of the strongest predictors of attrition, particularly in high-stress or undervalued work environments.

How to reduce employee attrition?

Reducing attrition requires a proactive and people-centric approach. Key strategies include:

Enhancing employee engagement through recognition and feedback
Offering competitive compensation and benefits
Providing career development opportunities
Improving leadership and management practices
Encouraging work-life balance and flexibility
Creating a transparent and inclusive work environment

Tinjauan nadi pekerja:

Ini ialah tinjauan pendek yang boleh dihantar dengan kerap untuk menyemak pendapat pekerja anda tentang sesuatu isu dengan cepat. Tinjauan ini mengandungi kurang soalan (tidak lebih daripada 10) untuk mendapatkan maklumat dengan cepat. Ini boleh diberikan secara berkala (bulanan/mingguan/suku tahunan).

Pertemuan satu lawan satu:

Mengadakan mesyuarat berkala selama sejam untuk sembang tidak rasmi dengan setiap ahli pasukan ialah cara terbaik untuk memahami apa yang berlaku dengan mereka. Memandangkan ia adalah perbualan yang selamat dan peribadi, ia membantu anda mendapatkan butiran yang lebih baik tentang sesuatu isu.

eNPS:

eNPS (skor Promoter Bersih pekerja) ialah salah satu cara paling mudah lagi berkesan untuk menilai pendapat pekerja anda tentang syarikat anda. Ia termasuk satu soalan menarik yang mengukur kesetiaan. Contoh soalan eNPS termasuk: Sejauh manakah anda mengesyorkan syarikat kami kepada orang lain? Pekerja menjawab tinjauan eNPS pada skala 1-10, di mana 10 menandakan mereka 'berkemungkinan besar' mengesyorkan syarikat dan 1 menandakan mereka 'sangat tidak mungkin' mengesyorkannya.

Berdasarkan maklum balas, pekerja boleh diletakkan dalam tiga kategori berbeza:

Penganjur
Pekerja yang telah bertindak balas secara positif atau bersetuju.
Pengkritik
Pekerja yang telah bertindak balas secara negatif atau tidak bersetuju.
pasif
Pekerja yang kekal neutral dengan jawapan mereka.

How to improve employee attrition?

Improving attrition rates means reducing the frequency of unplanned or unwanted employee exits. Companies can:

Conduct exit interviews to understand the root causes
Monitor and respond to early warning signs (like absenteeism or low morale)
Empower managers to support and coach their teams
Use pulse surveys to measure engagement and satisfaction
Act quickly on employee feedback

How to calculate employee attrition rate?

The employee attrition rate is calculated using this formula:

Attrition Rate (%) = (Number of employees who left ÷ Average number of employees during the period) × 100

For example, if 10 employees leave over a year and the average workforce size was 100, the attrition rate would be 10%.

How to measure employee attrition rate?

Beyond the basic attrition rate formula, companies can measure:

Voluntary vs. involuntary attrition
New hire attrition (within the first 6 months)
Departmental attrition to detect management or culture issues
High-performer attrition to track loss of key talent
Exit feedback analysis to spot patterns

Is employee turnover and attrition the same?

No, they are not the same. While both involve employee exits:

Attrition refers to natural employee departures (resignations, retirements) that aren't immediately replaced.
Turnover includes all types of exits (voluntary or involuntary), with the intent to fill the vacant position.

Attrition often implies a long-term reduction in headcount, while turnover focuses on replacements.