The gradual loss of employees within an organization over time is referred to as employee attrition. Needless to say, the process of employee attrition is a negative thing to happen to an organization and is often perceived with a jaundiced eye. This is because, the activity costs the organization a fortune—all that went into hiring, recruiting and training those employees who left.
However, it might come as a surprise, but all employee attrition is not bad and doesn’t cost the organization a fortune. In fact, certain attrition is good for the company. In particular cases, abrasion can be viewed as a positive and the one that is desirable. These incidents can do a lot better to the organization than just incurring financial loss.
So, what is desirable employee attrition?
Let’s explore the idea in a little more detail.
Cases, where unwanted employees leave the organization voluntarily which in a way, turns beneficial is termed as “desirable employee attrition.”
It is a myth that when an employee leaves, the company suffers a loss. Sometimes it can be good. But, the point in focus is, as an employer, how do you distinguish between good attrition and bad attrition?
Well, there is a thin line that separates good attrition from bad attrition. It is not always easy to understand.
Let’s take a look at this. For example, you have 10 employees working for you. Not all of them will star performers’ right? While some will be outstanding, some will be mediocre, and some will be even less than that. But during the hiring process (interview and on-boarding) it is not always possible to gauge candidates perfectly. And employers often end up hiring them.
However, gradually it may unfold that all employees do not fit into the company culture, or are unable to live up to their best commitments. Too much of a poor performance over an extended period of time can hamper the organisation’s overall productivity. So, if such employees leave voluntarily, it is in a way beneficial to the organization.
Yes. There is a brighter side to employee attrition. While it may not apply to all kinds of situations, nonetheless they do have a positive impact on organisations in the long run.
Some of the benefits include the following:
#1. New blood is good for your organization
It is always good to have new, young and energetic individuals in your organization. This is said because, the newer people you get, and the better it is for the organization. You will be exposed to more new ideas and ideologies. A good churn always allows your business to be refreshed and welcome a new talent pool, on a regular basis. When certain toxic employees leave, you (as an employer) actually the option of exploring fresh new talent and get them onboard.
#2. Organisational performance is boosted
Once some under performing employees choose to walk out of the door voluntarily, it has a positive impact on other high-performing employees. The organisation’s performance receives a fillip, and overall productivity is enhanced considerably.
#3. Gives you a chance to analyse existing company policies
Finally, while desirable employee attrition is right for the organization, it also gives organisations an opportunity to figure out what is wrong with their policies.
Employees leave for a lot of reasons and money might not be the biggest factors of all. Instances of employee attrition can also be viewed as a stepping stone to improvise organisational and functional policies.
Is everything alright with your employee retention and employee engagement practices? Are you recognising and rewarding your employees for the efforts they put in? You get a chance to delve into all such issues when encountered with cases of voluntary employee attrition.
However, some organisations believe that attrition in any form is not good for the organization. For they, intend to accept that something must have been wrong with their talent acquisition strategies. But, if analysed from a rational perspective and perceived in a positive light, it can be understood that loss of some employees or desirable employee attrition can be beneficial for the organization.