| |
Benefits Of Attrition
|
Retention Home » Benefits Of Attrition
|
| |
|
|
Attrition is not bad always if it happens in a controlled manner. Some attrition is always desirable and necessary for organizational growth and development. The only concern is how organizations differentiate “good attrition” from “bad attrition”. The term “healthy attrition” or “good attrition” signifies the importance of less productive employees voluntarily leaving the organization. This means if the ones who have left fall in the category of low performers, the attrition in considered being healthy. | |
Attrition rates are considered to be beneficial in some ways:
- If all employees stay in the same organization for a very long time, most of them will be at the top of their pay scale which will result in excessive manpower costs.
- When certain employees leave, whose continuation of service would have negatively impacted productivity and profitability of the company, the company is benefited.
- New employees bring new ideas, approaches, abilities & attitudes which can keep the organization from becoming stagnant.
- There are also some people in the organization who have a negative and demoralizing influence on the work culture and team spirit. This, in the long-term, is detrimental to organizational health.
- Desirable attrition also includes termination of employees with whom the organization does not want to continue a relationship. It benefits the organization in the following ways:
- It removes bottleneck in the progress of the company
- It creates space for the entry of new talents
- It assists in evolving high performance teams
- There are people who are not able to balance their performance as per expectations, lack potential for future or need disciplinary action. Furthermore, as the rewards are limited, business pressures do not allow the management to over-reward the performers, but when undesirable employees leave the company, the good employees can be given the share that they deserve.
Some companies believe attrition in any form is bad for an organization for it means that a wrong choice was made at the beginning while recruiting. Even good attrition indicates loss as recruitment is a time consuming and costly affair. The only positive point is that the realization has initiated action that will lead to cutting loss.
|
|
