You may have heard the term ‘employee attrition’ floating around, but what does it actually mean, and is it a bad thing? And if so, how can your business avoid it? Read on to find out!
So, what is employee attrition?
Employee attrition refers to a gradual reduction in the size of a workforce due to employees leaving faster than them being hired, through either retiring, resigning or redundancy.
The attrition rate is the pace at which employees leave a company. It is usually expressed as a percentage and is one of the main figures HR will report on.
What are the potential issues?
People leave businesses all the time. It is expected (and often planned for) and doesn’t usually mean anything is wrong. However, when your employee attrition rate is high, it may indicate an issue with your people strategy.
Losing good employees and not being able to replace them can lead to further problems for a business such as increased workload, decreased engagement, and a negative impact on morale. There are positives however! A high employee attrition rate can highlight changes that need to be made for a business to succeed and employees to be happy with their working environment.
How can clear internal communication help reduce employee attrition?
Effective internal communications can play a crucial role in avoiding employee attrition. By keeping employees informed and engaged, businesses can create a sense of community and build trust with their workforce. A positive working environment with a leadership team that listens to and communicates with employees encourages higher productivity and retention.
This is especially important during times of change or uncertainty, as regular, clear internal communication can be reassuring and will reinforce trust and confidence in the business.
High employee attrition can be a significant problem for businesses, but it can be avoided through creating a positive environment and investing time in improving internal communications. By taking steps to reduce employee attrition, businesses can improve productivity, boost morale, and achieve sustainable growth.
Want to create comms that wow your employees? Speak to the team at Endorphin today!