Employee Attrition can be Good for the Organization at Times: Why so?

Employee Attrition

The gradual loss of employees over a passage of time is essentially referred to as employee attrition. Needless to say that it is generally perceived as a negative thing to happen to an organization because of the costs involved in hiring, recruiting and training an individual.

However, it might come as a surprise, but all attrition are actually not bad. In certain cases, attrition can also be termed as something good and desirable. These incidents actually do a lot better for the company in the long term. Let’s explore the idea of desirable attrition in a little more detail.

When a business experiences a gradual reduction in its workforce because personnel is leaving, and management does not do anything to replace him or her immediately is perceived as employee attrition. But when is attrition is as a positive move and actually does good for the organization? Here’s a look.

Try to think from the other perspective as well. For example, you have 15 employees working for you. Not all of them would be start performers right? Some will be mediocre and some might be less than that. But during the hiring process it is not possible to gauge everything perfectly, so employers often end up hiring them. But, at times many employees are actually unable to fit into the organizational culture and also end up performing in low terms. Too much of poor performance for over a long period of time, can hamper the organization. So, if such employees voluntarily leave the organization, it is definitely for the good of it.

Yes, there are brighter side of employee attrition as well. While they may not be applicable in every scenario, but nonetheless they do have a positive impact on the organization.

Some of them are explained below:

  1. It gives you a chance to figure out what is ‘wrong’ with you

Well, while desirable attrition is good for the employer, it also gives you a chance to delve into yourself and figure if there has been any issue pertaining to stuff like employee engagement and recognition. People leave an organization not only because of the money, but a lot many things such as environment, a good manager, flexibility, freedom at workplace and also work-life balance.

  1. New blood is good for your business

It is always good to have new people, young and energetic individuals in your organizations. This is said because, the more new people you get, and chances are that you would be exposed to more new and bright ideas. A healthy churn always allows your business to refresh the talent pool on a regular basis. When certain employees leave, you actually have the option to explore fresh new talent and get them to join your board.

  1. You must be doing something right

If you are at a high-growth industry and your competitors are always on a lookout to poaching, you must feel good about it. You must have hired some of the best talent which is why all employers are eyeing your employees. You should actually feel good about the entire thing.

  1. Shed away excess flab and feel lighter 

For most businesses, attrition figures are anywhere in the range 10 – 35 % (annualized) or more. For employers expecting a restricted or marginal growth, attrition is a good way to cut flab—potentially excess and unwanted workforce.

  1. Extend your business network further

This kind of a benefit is applicable for small businesses where one can choose to extend and build a proper network. When your employees leave and migrate to other firms, obviously your network extends to other firms. Connections and networking always helps in the professional domain.

Some companies believe that attrition in any form is not good for the organization, for it means that there must have been some fault with the recruitment or hiring process. However, sometimes desirable employee attrition is good for the employers and must be seen in a positive light for the overall benefit of the organization.

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