Reasons for employee attrition.
1. Voluntary redundancy
Voluntary redundancy is the number one reason for staff attrition. It’s a natural workforce flow that includes leaving the company because of retirement, health issues, moving to another city, studying, family reasons, or passing away.
2. Company’s initiative
In exceptional cases, companies initiate the dismissal of employees. Common reasons for involuntary redundancy include company’s mergers and acquisitions, staff downsizing, structural replacements, employee’s misconduct, or violation of corporate rules.
3. Industry specifics
For some industries, it’s natural to experience higher attrition and turnover rates because of seasonal work, high-volume hiring, contractor work. Such industries include ecommerce, construction, agriculture, and hospitality. These businesses tend to have seasonal spikes, so they employ much of their workforce on a short-term, contract basis. As a result, businesses in this niche
4. Internal attrition
This kind of staff attrition is probably the most positive among all the other ones. When employees join another department or move to another country or city to work for another company’s branch, it’s considered internal attrition.
5. Lack of diversity
The recent survey by Glassdoor shows that 76% of employees and job seekers assess companies by their workforce diversity and inclusion. Diversity impacts personnel attrition as well.
Sometimes it makes sense to pay attention to demographic specifics of employees that decide to leave your company and analyze how you can improve your working conditions for them. Here are some of the diversity types to consider:
- Racial (for example, do you have equal right for, Asian people?)
- Age (do you mitigate agism at your workplace?)
- Sex and gender (do you have an equal number of women and men on top management positions?)
- Disability (do you provide comfortable and safe working conditions for people with disabilities?)
- Cultural diversity (do you encourage open-minded attitude towards different cultures?)