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By : Vinay Sattur
Sattur.vinay@gmail.com
   A reduction in the number of
    employees through retirement,
    voluntary/Involuntary
    resignation or death is called
    Attrition”.
   Attrition is also called total
    turnover or wastage rate
   Good Attrition
              –   Less Productivity Employees Leaving
   Bad Attrition
              –   High Performers Leaving
   Market driven Attrition
              –   Influenced by market changes
   Workload/ Stress Driven
              – Low band-width of employees
   Process Driven Attrition
             – Organizational Process
Better Pay




Over Expectation from the Work Place



Mismatch of Job Role and
                 Skills of Employee




                                       Cont…
Lack of growth Opportunities


   Lack of appreciation


    Uncooperative Team Members
Long Work Timings




    Health/Age Problems



Inability to manage pressure
   Motherhood for Women
       Employees

   Manager

   Higher Studies
   Self Employment
   Varied Career Aspirations(Live their Dream)
0   2   4     6         8      10   12   14
            Length of Tenure
Large proportion of employees leave within two
years of tenure

Job Shoppers –
           Early stages of career.
           Urgency to get more in less time.
           Trial and Error
 Low productivity – Notice Period, Knowledge
                     Transfer
‣ Loss of knowledge, expertise
‣ Loss of picked up business relationships.
‣ Negative impact on other team members.
‣ Benefit to competitor
‣ Excess Work Load
The formula and correct logic behind calculation of ATTRITION RATE)

             {(no. Of attritions x 100) / (Actual Employees + New Joined)}
                                        100

   Examples:
   Actual Employees        No. Of people left    No. Of Joined       Total Employees
                                (Attritions)                       (Current Headcount)
       150                          20               25                 155


   So according to the formula: ((20 x 100) / (150 + 25)) / 100

   Which comes to 0.1142 i.e. 11%

   Now as you had 150 previously and now 25 joined so it makes 150 + 25 =175

   Now if you calculate 11.42% of 175 i.e. 175 x 0.1142 = 20
   Fresher’s :
    Percentage fresher’s leaving the organization within one year
   Infant Attrition :
    Percentage of people leaving the organization within one year
   Critical Resource Attrition :
    Key men/women leaving the company
   Low Performer Attrition :
    Those who left due to poor performance.
   Recruiting Costs

   Recruiting Time and Manpower

   Training and Orientation Costs

   Lost Productivity Costs

   New Hire Costs
   Low productive employees leave
   High pay scale employees leave
   New ideas, attitude, approach will enter
   Removes bottleneck in the progress of the
    company.
   Creates space for new talents
   Will be able to reward deserving employees
Employee Attrition
Employee Attrition

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Employee Attrition

  • 1. By : Vinay Sattur Sattur.vinay@gmail.com
  • 2. A reduction in the number of employees through retirement, voluntary/Involuntary resignation or death is called Attrition”.  Attrition is also called total turnover or wastage rate
  • 3. Good Attrition – Less Productivity Employees Leaving  Bad Attrition – High Performers Leaving  Market driven Attrition – Influenced by market changes  Workload/ Stress Driven – Low band-width of employees  Process Driven Attrition – Organizational Process
  • 4. Better Pay Over Expectation from the Work Place Mismatch of Job Role and Skills of Employee Cont…
  • 5. Lack of growth Opportunities Lack of appreciation Uncooperative Team Members
  • 6. Long Work Timings Health/Age Problems Inability to manage pressure
  • 7. Motherhood for Women Employees  Manager  Higher Studies  Self Employment  Varied Career Aspirations(Live their Dream)
  • 8. 0 2 4 6 8 10 12 14 Length of Tenure
  • 9. Large proportion of employees leave within two years of tenure Job Shoppers – Early stages of career. Urgency to get more in less time. Trial and Error
  • 10.  Low productivity – Notice Period, Knowledge Transfer ‣ Loss of knowledge, expertise ‣ Loss of picked up business relationships. ‣ Negative impact on other team members. ‣ Benefit to competitor ‣ Excess Work Load
  • 11. The formula and correct logic behind calculation of ATTRITION RATE) {(no. Of attritions x 100) / (Actual Employees + New Joined)} 100  Examples:  Actual Employees No. Of people left No. Of Joined Total Employees (Attritions) (Current Headcount) 150 20 25 155  So according to the formula: ((20 x 100) / (150 + 25)) / 100  Which comes to 0.1142 i.e. 11%  Now as you had 150 previously and now 25 joined so it makes 150 + 25 =175  Now if you calculate 11.42% of 175 i.e. 175 x 0.1142 = 20
  • 12. Fresher’s : Percentage fresher’s leaving the organization within one year  Infant Attrition : Percentage of people leaving the organization within one year  Critical Resource Attrition : Key men/women leaving the company  Low Performer Attrition : Those who left due to poor performance.
  • 13. Recruiting Costs  Recruiting Time and Manpower  Training and Orientation Costs  Lost Productivity Costs  New Hire Costs
  • 14. Low productive employees leave  High pay scale employees leave  New ideas, attitude, approach will enter  Removes bottleneck in the progress of the company.  Creates space for new talents  Will be able to reward deserving employees