Search for members, events, articles and more
We’ve all heard the horror stories; The Great Resignation is upon us! Your business could easily fall foul of a mass exodus but knowing your attrition rate can help you get ahead of the game.
Why Should I Care About Attrition?
The good news? Knowledge is power. Keep reading for our top tips on improving your attrition rates.
What Is Attrition?
attrition · a reduction or decrease in numbers, size, or strength
We recently ran a LinkedIn Poll and 35% of respondents didn’t know what attrition meant. Attrition, sometimes referred to as turnover, is the rate at which employees leave your business. That can be through resignation, retirement, redundancy, or personal reasons, among many others.
Some companies create two turnover rates – voluntary and involuntary. It’s as simple as recording why an employee has left your business, and can be very valuable HR data. Voluntary leavers are often employees that you can retain; this is an area of real opportunity for your business.
How Do I Calculate Attrition?
A simple percentage is all you need to get started. Look at the number of employees who have left the business (for any reason) in a 12-month period against your overall headcount. The UK average is 15%, but this varies wildly depending on sector. Staff turnover in UK agencies sat at a whopping 29.8% in the UK! Improve your retention and you’ll have a leg up on the competition.
The next step is to unearth how much it is costing your business.
We’ve put together a free, easy to use calculator to estimate the cost of attrition to your business. Getting an accurate figure is very complicated, but this is a good starting point for most leaders.
If you would like a detailed analysis of the true cost of attrition to your business, don’t hesitate to get in touch. We use over 100 HR metrics to unearth opportunities and provide bespoke insights that you can action immediately.
How Can I Improve My Retention Rates?
58% of respondents to our poll said they either don’t measure attrition, or don’t use the data that they collect. So much missed opportunity! Attracting talent is the biggest challenge for business leaders right now, and yet so many are ignoring this essential element of the employee lifecycle.
It’s like putting water in a leaky bucket. Everyone wants to keep the bucket full, but most leaders are simply adding more and more water, rather than taking the time to plug the hole in the bottom.
We’re often asked for ideas when it comes to reducing attrition. Whilst there’s no one size fits all solution, here are some of the best strategies we’ve seen put into action:
Getting stuck into the number might seem daunting, but it will pay back dividends in the long run. Take time to give it a go this week. There’s a world of opportunity right under your nose.
We’ve developed a unique service which combines your real data with industry expert advice to ensure you get the best from your employee journey. Click here for more info or call 0161 359 3789 to book your free, no-obligation consultation today.