What is attrition?

Attrition meaning in HR refers to the departure of employees from the organisation for any reason(voluntary or involuntary). Attrition rate is the rate at which employees leave an organisation divided by the average number of the employees in it within a given period.

Why is attrition important?

Problems with working conditions, management, and etc. sometimes worsen until they compel employees to quit, in this case, it is the key for the employer to remedy for the relevant well-being of employees. However, employees’ terminations could be normal in some issues including retirement, moving to another city, illness and death.

On the other hand, as an employer, it is also important to know it is an effective, more humane and less disrupurate approach to decrease labour costs due to the structural or operational change than laying people off. Sometimes as employees leave, the organisation may also perform the hiring freeze and leave vacancies unfilled.

What should HR know when attrition happens?

The average attrition rate just like what we had mentioned earlier varies significant between industry and businesses, when you found the rate of attrition is higher that your peer’s, these steps can help you to improve retention:

  •  When you are hiring the employee at the start, make sure they are not only equipped with necessary skills, but also a good fit of your company culture.
  • Make sure your compensation package is competitive.
  • Commute with your employees on a regular basis, use the feedback to change then improve the job satisfaction.

When you are seeking to downsize via employee attrition, please be ready for the time that might take longer than expected. As labour law suggested, you could also consider offering some financial incentives to avoid unpleasantness and fasten the process.


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