Attrition is defined as “the reduction in staff and employees in a company through normal means, such as retirement and resignation.” Whenever your business gradually loses employees and there are no substitutes to take their place, this results in workforce attrition. Let’s look at some reasons why this phenomenon occurs and how to prevent it.
A Negative Work Environment
If employees work in a hostile environment or one that’s simply not conducive to positive mental and/or physical health, they’re probably not going to stick around for long. For example, if there are constant conflicts among employees and a generally bad company culture, it’s going to create a lot of friction. Also, having a work environment that’s unclean, noisy or depressing can have a negative impact on a worker’s state of mind, and they’ll be more likely to resign.
You can prevent this type of workplace by striving to hire employees with a favorable temperament and who get along well with others. When conflicts occur, you should take immediate action and do everything possible to resolve the situation. You should also strive to create a functional workplace that’s positive and uplifting. This might include improving the aesthetics, adding plants, cleaning more frequently, etc.
Lack of Benefits
Benefits like health insurance, dental, retirement and life insurance play a big role in both attracting talent and minimizing employee turnover. If your employees aren’t receiving the benefits they need, they’ll be more likely to jump ship and migrate to competitors who do offer benefits.
If possible, it’s a good idea to offer at least a few desirable benefits that will motivate employees to stick around for the long haul. In this day and age, offering other perks like flextime and telecommuting options is also nice because it helps workers establish a healthier work-life balance.
In fact, a survey by the Office of Advocacy of the U.S. Small Business Administration found that, “offering benefits reduces the probability of employees leaving jobs at any firm in a given year by 26.2 percent, and increases the probability that an employee will stay an additional year by 13.9 percent.”
Poor Management
If you’ve got poor management, it can also lead to a high rate of attrition. For example, if managers disrespect employees, don’t treat them fairly or have unrealistic production expectations, it can cause a rift in your team
The remedy to this is to train managers to respect employees and not show favoritism. They should also be skilled in conflict resolution and demonstrate solid leadership capabilities.
If your team is suffering from attrition, it’s important to address the issue head-on and do whatever it takes to prevent it. With the right approach, you should be able to create a better working environment and a more efficient workforce where unnecessary turnover is reduced.
If you need help finding talented employees or other staffing solutions, find out how we can help.