1/22/2024 0 Comments High attritionOrganizational failure and poor commitmentsĮmployees are increasingly feeling left out of the managerial commitments even as they bear the brunt of some very poor quality leadership and organizational misalignment. Despite offering flex-hours, 40 hours weeks and rewarding long vacations, employees still feel disgruntled as performance appraisals still account only for targets met versus number of days actively worked in the organization through the cycle. The poorly planned back to work, and hybrid working policies have caused further damage to work-life balance, resulting in forced resignations to organizations that support better working conditions. This problem has further aggravated during the pandemic years where most of the employees were locked out with their family members in one place and were still expected to deliver performance. Top employees who are at peak of their performance often suffer from mental and emotional imbalance due to poor work-life coordination. Employees demand more from their employees, and when employers fail to acknowledge these demands, people quit irrespective of a high compensation or a great working relationship with the management. Lack of flexibility at workplace is causing high rates of attrition among employees, particularly those who have a spouse, kids, parents, and pet. A competitive salary, regular rewards and recognition, and having a great employee benefits program could increase the employee lifecycle in the organization and prevent further rise in the employee attrition rate. Lack of a better compensation package at the backdrop of talent war in the technology innovation industry, force employees to leave the organization. This directly affects satisfaction at job and self-esteem. With a limited scope to enhance employment opportunities, employees look for better compensations to improve their financial health. Top Factors that Lead to a High Employee Attrition Rate Lack of competitive compensation packageĮmployees want to future-proof their lives against the rise in inflation and the fear of a global economic recession. It also clearly cites the top reasons for talent exodus, consequences of dysfunctional turnover, and possible ways and strategies to reduce quitting. TeamLease’s recent report titled, ‘ Brain Drain: Tackling the Great Talent Exodus’ highlights the increasing retention rates in the IT sector. If an organization has a churn rate higher than 10%, it needs to seriously retrospect factors that are causing this effect. Most companies aim at a churn rate of 10% or lower to ensure business continuity and reduce brain drain to competitors. The standard formula to calculate rate of employee attrition is expressed as: Common forms of attrition are retirement, migration, disability and / or mergers and acquisitions. Employee churn is a very natural event in the employee lifecycle, where they could be dissociating from the company operations due to voluntary or involuntary reasons. What is Employee Attrition?Įmployee attrition or employee churn is calculated as the number of employees leaving an organization in a year, expressed in percentage. In this article, we will discuss some of the biggest factors that lead to a high rate of employee attrition in an organization and the industry, in general. There are many reasons that lead to employee attrition, and most of them are attributed to workplace management and employee benefits. Every organization witnesses attrition, but it only becomes a big HR problem when the recruiters are unable to hire replacements faster. Today, it is at an all-time high in some industries such as IT and software development, banking and finance, healthcare and education. Every HR team is fighting the same problem in their respective organizations – “Employee Attrition.” Employee attrition is a very common phenomenon in fast-growing industries where employees leave an organization and join elsewhere.
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