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
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
