When something decreases or reduces in number, intensity, or size for a time, it is described as attrition. This is a term that is associated with different fields for different purposes. In this post, we’ll be examining the impact of attrition on human resources.
In human resources where various vital functions are required for the growth, development, and productivity of the organisations, attrition in this sense refers to the measurement or percentage of employees who leave an organisation within a specific period of time.
For instance, if the attrition rate for ABC Automobiles is about to be calculated, the number of employees who have left for a specific period would be put into consideration. Also, the number of people who have left a system or group would also determine how attrition is calculated.
Other contexts in which this could apply is employee turnover, the number of individuals who dropped out at a particular period in time, and so on.
The Impact of Attrition on Human Resources
Remember we said attrition represents a gradual reduction in the number of employees? As the number of employees reduces in the organisation, the impact is felt significantly in the HR department.
This is so, because, when employees leave, HR must invest not only time but resources to recruit and hire new employees, provide training and development programs, and focus on employee engagement strategies to reduce turnover.
This activity is costly and time-consuming, and according to research, it diverts HR’s attention away from critical tasks.
Organisations must seek ways to reduce turnover and adopt innovative ways of effectively managing employees through HR software.
Request a demo session today with WorkflowsHR by using this link: https://workflowshr.com/request-demo
Understanding the Reasons Behind Attrition
Take, for instance, ABC Automobiles, which has dealt with turnover consistently and is looking for ways to handle attrition. The HR at ABC Automobiles must first understand the reasons behind the reduction in the number of employees.
Firstly, conducting exit interviews can provide valuable insights into why employees are leaving. Questions like, is it due to lack of challenge or opportunities for growth? Are employees seeking better compensation or benefits? must be asked.
Identifying root causes of attrition can help HR develop targeted strategies to address these issues and improve employee retention.
Strategies for Managing Attrition
Findings focusing on how HR can properly manage attrition for organisations suggest that HR must focus on employee engagement strategy. Focusing on employee engagement strategy gives room for recognising and rewarding employees for their contributions, providing opportunities for growth and development, and fostering a positive and inclusive work environment.
Other strategies for managing attrition is by introducing flexible work arrangements or bonuses to incentivize employees to stay. Succession planning ensures that knowledge and expertise are transferred from departing employees to remaining employees.
The effective management of attrition reduces turnover and helps organisations save in recruitment and training costs, thereby minimising disruption, and maintaining productivity levels.
In conclusion, the impact of attrition on human resources is significant, leading to diverted attention and resources away from other critical tasks, this is why the reason for attrition must be understood so as to develop appropriate strategies to reduce turnover and help organisations grow.