What Is Attrition and How To Manage It

Each month, as you walk into the office, you can observe how your workplace is evolving. While changes in staffing present challenges, it's also an opportunity to improve. By focusing on employee retention, you can alleviate the pressure on your remaining team and maintain a knowledgeable workforce. How can you enhance your strategies to keep your valuable team members and create a thriving workplace?

What does attrition mean? Attrition refers to measuring the number of employees leaving an organisation. They may leave for various reasons, including personal circumstances, professional growth, workplace issues, or job mismatch. It's important to distinguish attrition from turnover, as these terms are often confused but are not the same. Turnover involves replacing employees who leave, whereas attrition often means those positions are left open, replaced with different roles, eliminated, or merged into other responsibilities.

There are different categories of attrition, including:

●      Involuntary attrition occurs when employee numbers are reduced due to costs and financial stress.

●      Voluntary attrition happens when an employee chooses to leave on their own accord.

●      Retirement attrition occurs when multiple employees retire simultaneously.

The effects of employee attrition
This can lead to inconsistency, knowledge gaps, and additional stress for current employees who must shoulder the extra workload, increasing the risk of burnout. Financially, frequently training new staff instead of retaining experienced and already-trained employees, is draining!

On a positive note, attrition offers opportunities! It allows organisations to reassess their recruitment strategies and attract candidates who may be better suited for the roles, potentially leading to a more effective and dynamic workforce.

How can companies retain employees?

• Think about who you want to hire: Improve your hiring process to showcase the benefits of working with you to attract a range of applicants so that you can choose the best fit.
• Good onboarding program:  Ensure that new employees feel valued from day one by having a supportive onboarding program in place.
• Assess your policies: Create policies that are clear, it is important that employees know where they stand and where to go if there are any problems.
• Support ambitions: Long-term retention can be encouraged when employees feel their ambitions are supported and nurtured.
• Flexible working should be considered: Encourage employees to take time off or to think about a flexible work schedule to reduce stress and prevent burnout.
• Communication is vital: Encourage effective communication and make it a part of company culture. Employees need to feel valued, trusted and listened to and make sure their ideas are considered and actively heard. Allow your employees to have trust in the organisation so that they can open up about any concerns they may have.
• Equip your employees: Can you improve your technology and automation processes? Allow your employees to excel and focus on the important parts of the job easily!
• Reward and Celebrate Achievements: Celebrate milestones for individual employees and teams. Recognise personal events, to show your employees that you know them and care not just about the work. Recognition and encouragement is vital, even as simple as a thank you.
• Incentives and benefits: Give your employees incentives and motivation, beyond their pay packet. Think about creative ideas your employees might enjoy, such as discounted gym memberships, health insurance or extra holiday days.

While employee attrition can pose significant challenges for organisations, developing strategies to ensure staff feel happy and valued can mitigate these issues. Open conversations, practising active listening, and prioritising people over productivity ensure employees feel more cared about and attached to the organisation, making them more likely to stay. This approach not only addresses the problems associated with attrition but also reinforces the overall workplace culture, leading to long-term success.