Top 5 Reasons for High Attrition

1. Top 5 Reasons for High Attrition Remember how you learned about the components of production in secondary school Economics? Land, labor, capital, and organization were the four components of production. Your company's employees are the only human component in production, i.e. "labor." You cannot thrive as an owner without the Midas touch of your personnel, regardless of how efficient the other three criteria are.

2. A company's name, brand, product lines, market share, Board of Directors, CEO, or honors are not enough to represent it. Rather, a company's face is portrayed by its personnel collectively. Knowledge and infrastructure are the two key drivers of development for a business in today's service-driven economy. Employees reflect an organization's knowledge base, not the owner's business acumen. As a result, the high incidence of attrition has become the most sensitive problem for all businesses. Compensation does not have a linear relationship with attrition. Employees who are paid really well can attrite at the same rate as those who are paid moderately well. Compensation that is below market rates may result in significant attrition among close rivals; nevertheless, increasing compensation will only reduce attrition in the short term; other variables are more essential. Employees at one Midwest collections service center were given a basic salary of over $50,000 per year, with performance bonuses pushing some incomes to over $100,000. Despite the fact that this is a very competitive salary, their attrition rate was over 35%. This is, without a question, a major issue for you as a business owner; isn't it? You must first understand the causes of this Achilles' heel before devising a strategy to address it. Let's take a quick look at some of the possible explanations for the high attrition rate. 1. Lack of Appreciation: Money isn't the only way for an employee to be rewarded for their efforts. Employees want adequate appreciation for their contributions in addition to timely advancement and salary raises. Even a simple thank you may work wonders. Owners who believe that employees get compensated for their work and that no appreciation is necessary are living in a fool's paradise!

3. 2. Higher-ups' attitudes: An autocratic management style will never help a firm retain its best employees. Superior office status does not provide a supervisor carte blanche to treat his staff like slaves. Employees are not slaves; rather, they are selling their talents and information. 3. Inequitable pay: An employee's remuneration must be proportionate to the nature of his labor. Many people leave their jobs because they do not believe they are fairly rewarded. As a result, a compensation plan should be carefully crafted with the assistance of a qualified HR specialist. 4. Workplace culture/environment: According to Kristen Gerencher of "MarketWatch," positions that demand regular client interaction may result in a high turnover rate owing to stress. On the other hand, a high attrition rate might be caused by a lack of personnel, regulatory pressure, the untidiness of the workplace, the type and character of coworkers, excessive politics, and so on. 5. Job monotony: The majority of occupations are repetitious in nature. After spending a significant amount of time on a procedure, there will be no outstanding learning. No employee, on the other hand, anticipates a fresh task every day. However, business owners must make an effort to make the work more interesting. Brainstorming sessions, intra-team contests, and staff ranking/rating are all examples of ways to liven up the routine. Check to see whether any of these disorders are present in your company. If you come across one, don't be alarmed. The ultimate key to talent retention is a disciplined and supportive approach to personnel management. Want to learn everything about employee attrition? Visit https://www.cutehr.io/employee-attrition/