Attrition and Turnover is used interchangeably nowadays by the organizations, the term has gone through a lot of change over the years. Employee attrition means the process of gradual worn out– when the employees after years of work would want to move out and relax.
Advantages of Employee Attrition:
Not all turnovers are negative, we generally feel that an employee leaving the organization is detrimental to the organization, but there is a flip side to it. Employees leaving an organization may lead to benefits. This type of job attrition is called ‘healthy attrition’ and is needed for growth and development of an organization
1. Higher manpower costs:
There are times when employees stay with the organization for long, which might mean that they are getting top of their pay scale.
This means that these employees are being paid a lot more than others who are doing similar job but are comparatively new in the process.
2. Negative effect of people:
There are some employees in an organization who work against the culture of the organization and even affect the working environment.
Such employees even go to an extend to impact the loyalty of others and their outlook towards the organization.
3. New idea:
Many a time when some people leave an organization they open gates for new talent and new ideas.
Mostly employees who are in the organization get used to the working atmosphere and get complacent. This means lack of risk and definitely no new ideas.
4. Higher performance:
There are employees who just have been working on a slow pace for years within an organization. They are reasons for poor performance and slow growth.
5. Setting the culture right:
There are times that employees do not care for a lot of organization’s policies which creates a brand for the organization.