Supriya Nigam is a lead Content Writer & Digital Marketing Strategist at CareerBuilder India. Her passion for helping people in all aspects of digital marketing flows through in the expert HR Technology industry coverage she provides. Also, an avid Yoga practitioner.

Whether involuntary or voluntary the attrition of employees is always painful for companies. It particularly affects the small businesses as they have a handful of employees. Even when one or maybe, two employees leave the company it will have a strong impact on the overall productivity of the firm. Though, it is difficult to find fifty percent or more attrition rate in small companies.



Before moving ahead on attrition analysis let me start with employee attrition meaning for better understanding.

What is employee attrition?

The decline in the number of employees or staff in the organization through regular means, such as resignation or retirement is termed as “employee attrition”. It is a normal procedure for any business firm.

What is attrition rate?

Attrition rate is also known as “churn rate”. As per Wikipedia – “the collective number of items or individuals moving out of the collective group over a specific period” explains the attrition rate.

In case of employees and business organizations, the attrition rate explains “total number of employees moving out of the organization over a specific period.”

Why business organizations need to pay attention to their employee attrition rate?

Today, employee attrition has become a serious issue for companies. Employees do not have that commitment and respect for the organizations where they are working. It is because of innumerable options available to them. If an employee gets a better opportunity in terms of salary, location, and other perks, then they do not hesitate to leave their present organization.

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5 top reasons why employee attrition arises

#1 Lack of team spirit – It is essential that organizations build a strong internal networking of employees and inspire employees to create healthy team spirit.

#2 Define performance goals clearly – resourceful employees must build an atmosphere of cooperation and collaboration. Also, organizations must update job description time to time and clearly define performance goals for employees.

#3 Organizations must start focusing on their employees’ professional development – We, Indians are natural learners, hence, business organizations take benefit of this trait and assist their employees in their overall development.

#4 Manager – subordinate relationships – In one of the latest survey it is found that more than 50% employees are dissatisfied with their manager’s attitude. It is essential that managers speak to their subordinates to get things done in an efficient manner.

#5 How rewards are rewarded? – When organizations have transparency in their reward policy, then it will certainly keep employees motivated and committed towards the organization.

Attrition analysis – a report on TCS solving its employee attrition issue (source:

For the year, March 2015 TCS with total employees of over three lacs lost 47,931 employees in a year. With this figure, Ajoyendra Mukherjee Head of Global Human Resource, TCS mentioned in his comments that “TCS is suffering from high attrition rate” and the reason behind it is that “job market is flooded with opportunities”.

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One strategy played by TCS to solve their high attrition rate is an announcement of “special one-time bonus”. It might be one good tactic to start with as a part of attrition rate control plan. However, the employee attrition needs more than just monetary perks.

A glimpse to employee attrition solutions

  • Find cause
  • Hire right employees
  • Build a good workplace
  • Give long-term incentives

Conclusion – Employee attrition and retention is one of the biggest challenges faced by human resource leaders globally. This issue must be addressed smartly by organizations after careful analysis of attrition causes and thus providing effective solutions.

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