Employees often leave their jobs for several reasons, such as a lack of professional growth, better opportunities in a different company, or any other personal or professional reason.
It is very rare for people to start their careers in one company and retire from that same company.
People leaving organizations seems like a quite straightforward matter, but there is a lot to unpack when it comes to employee attrition. Let’s take a look at what employee attrition is, its types, causes, and more.
What is employee attrition?
When an employee leaves an organization regardless of any reason and is not replaced, we call it employee attrition. The attrition rate measures the number of people who move out of a company and are not replaced immediately.
Attrition is an inevitable part of any business. There will come a time when an employee wants to leave your company – either for personal or professional reasons.
Types of Attrition that you need to know
- Attrition due to retirement
- Voluntary attrition
- Involuntary attrition
- Internal attrition
- Demographic-specific attrition
Now let’s look at some Trends in Employee Attrition,
Expectedly, the rate of attrition varies across industries, job roles, and sub-sectors.
A survey by human resources consulting firm Omam, Consultants finds the average attrition rate of 100-plus companies across 18 sectors to be 19% in 2022, up over 57% from 12.1% in 2021.
In addition, according to Achievers Workforce Institute’s 2021 Engagement and Retention Report, employees are most likely to stay at their current job for the following reasons:
- Work-life balance (23%)
- Recognition (21%)
- Compensation (19%)
- Satisfactory working relationship with their manager (19%)
Why Does Employee Attrition Matter?
Knowing your employee attrition rate is essential to understanding how well your company retains candidates. When you have a high attrition rate, for instance, it can suggest that you don’t provide sufficient benefits or a good work environment to retain top performers.
It is important to measure and analyze the attrition rate so that you know what you need to do to keep your employees.
Use QaizenX’s employee experience software that can help you predict attrition in your organization.