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Attrition Essay

In a world that is recovering constantly from economic crisis, where companies are struggling to stay afloat, and where those same companies are always trying to find ways to cut operating expenses, retention is a huge thing. Retention or attrition is and always has been a hot topic issue for Human Resource managers and all businesses. It is in the companies best interest once they have selected and trained an individual to a particular role to take steps to insure that the employee stays there to keep costs low. On top of this, it up-roots a few other underlying problems, one of the biggest problems that a low retention rate and a high attrition rate will tell you is that a business is not creating an environment that people are satisfied working in, being as this is the number one driver of attrition and reducer of retention. Throughout this paper we will discuss the issues of retention and bring to light how much money not retaining employees can cost a company. Additionally we will explore what drives attrition and how to over come those issues, so that a company can retain its employees and cut operating costs. Attrition has and probably always will be that elephant in the room at every organization. It not only cost the company money, but it also detracts a lot of promising potential if there is a negative reputation for a company. Attrition is so important to keep down for a couple reasons; obviously cost is the main reason. Every time an employer loses and employee it is going to cost the company money. This cost is incurred mainly with just finding and training a replacement for the lost employee, but it is also incurred in loss of productivity that the employee would have increased had they originally remained. The ac... ... middle of paper ... ...rganization should make the employees feel that employees are most valuable for the organization. By enforcing appropriate HR practices and policies, organization can instigate this feeling amid their employees.” To me this shows that there is more to retaining employees than just money or benefits, as this explains the nature of the job and type of employees you have will really dictate to you and the company what type of programs or recognition you should be doing because it is right for your company and your employees. If you give your employees a voice where they can feel heard and you can honestly attempt to keep them satisfied through their suggestions as a leader and as a corporation you will successfully see your turnover/ attrition rates drop and your retention rate rise. When this occurs you have achieved your goal and the company becomes more profitable.
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