Glossary   >  Attrition

Attrition

What is Attrition?

Attrition literally means the reduction in the workforces' strength of an organization as a result of the employee's voluntary or involuntary decisions. An increase in the attrition percentage of a company indicates the low satisfaction of the employees. Thus, its measurement is essential to monitor and take appropriate actions to reduce the percentage.

What is the cause of employee attrition?

Attrition generally happens because of the lack of proper management and improper working conditions. In these cases the employee turnovers may happen but it can also be because of the employee’s personal reasons such as leaving to another city, getting a better job elsewhere etc.

Frequently Asked Questions about Attrition Rate

What is the attrition rate ?

Attrition rate = Number of attritions / Average number of employees * 100 Where the number of attritions is the number of employees left.

How to reduce attrition ?

Employee attrition can be reduced by appreciating your employees and recognizing their work. Here are some key points to keep in mind :

  • Communicate about your needs and goals
  • Enhance your recruitment
  • Focus on quality candidates
  • Give appraisals
  • Improve your employee communication

What is customer attrition?

Customer attrition occurs when there is loss of customers or when the customer ends their relationship with the company. Customer attrition generally occurs when the customer doesn’t interact with the company for a long time.

Does attrition affect your organization?

Attrition is considered bad for any organization as it means the loss of valuable assets of the company. Whether it is an employee or a customer attrition, the organization faces loss and shows the signs of warning about the company growth.

Why does customer attrition occur?

Customer attrition generally occurs when you’re defecting from your competitor and have lesser improvement. Sometimes the issue might be your customer service procedure or the customer service agents.

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