An organization, in the legal sense, is called a juridical entity or commonly referred to as a juridical person, a non-human legal entity which means it’s an organization that is not a natural person (human beings). An organization has by law, the protection of rights to own property, engage in contracts, and responsibilities to comply with obligations to pay taxes and be sued.
With that in mind, a company is like a living, breathing organism. Just like human beings, it needs a healthy quantity of cells to operate daily which in this case are its employees. In order to survive and grow in the multi-faceted environment of doing business today. Companies need to retain their skilled employees. However, in all sectors of the industry, businesses are struggling to cope with the amount of attrition.
Attrition is the rate at which an organization loses people faster than replacing or hiring them. From factors such as retirement, internal, involuntary, and voluntary attrition. Attrition affects the growth of a company by increasing recruitment costs, training costs, and operations. However, there are plenty of applicable solutions to improve employee retention.
Types of Attrition:
- Retirement Attrition – natural and accepted attrition when an employee retires from tenure due to age or medical issues.
- Voluntary Attrition – when an employee resigns from a company to look for better career growth opportunities and better pay.
- Involuntary Attrition – if an employee is terminated due to performance or downsizing of staff by a company.
- Internal Attrition – when an employee gets promoted or transferred to another department within the company.
Work-life balance
Having a healthy balance of work and life is important in this day and age. Being overworked affects the physical and mental well-being of a person. Meeting deadlines, satisfaction with co-workers, work responsibilities, and still having time with friends, sleep and do their hobbies puts an equilibrium on their mental and physical state. Giving employees more time to relax, re-energize, and recuperate would help minimize attrition.
Career Satisfaction and Professional Growth
Satisfaction is a human condition that aims to fulfill one’s wishes, pleasure, expectations, and needs. Professional growth is one of the main reasons why employees voluntarily leave a company. When an employee feels like their career is stagnant and going nowhere, they’ll likely find newer opportunities. Therefore, the non-fulfillment of satisfaction by not progressing would find themselves wanting more. A company should always prioritize their employee’s satisfaction and career growth by providing workshops and training to improve their skills and progress to new positions within the company.
Pleasant Work Environment
It’s time to move away from the traditional office setting of cubicles, limited breaks, and workplace politics. What would you feel if you sat down for hours straight in a lonely cubicle? A positive, fun and open working environment should be implemented by the company. Cooperation and open communication among co-workers could limit workplace politics. Having a good work environment contributes to an employee’s satisfaction with the company. In addition, a relaxing environment would improve productivity which is a positive effect on a company.
Competitive Compensation and Benefits
Probably one of the main factors of attrition is low salaries and few benefits. People tend to move from one company to another because they feel like they are underpaid and overworked. Striking a balance between wages, skills, and responsibilities by providing competitive salaries and benefits to employees would help keep them motivated. Also, by keeping the compensation competitive.
The Bottom Line
All that said, employee attrition is an inevitable factor in running a company. Striking balance between work, compensation, growth, and workplace environment would alleviate the problems of attrition and maintain the number of your workforce. If you’re having problems with attrition, you can outsource your staff with us!
