That does not mean an organization’s turnover rate has to automatically be exceptionally high just because their industry has the highest turnover rate. So a normal attrition rate in the services industry is a high attrition rate, especially when compared to other industries. Which industry is having the highest attrition rate of employees? According to the Bureau of Labor Statistics, the average employee in the services industry only remains at the same place of employment for three years. ![]() High staff turnover, especially in the service industry and in hourly positions, is normal in some situations. While this assumption could be partially true, it probably does not highlight the entire picture of what is spurring the increased rate of attrition. This is especially true for a high turnover rate. What is positive attrition? Many companies assume the staff turnover rate in their own organizations is either due to the fact that the employees are unhappy with their work environment, or the company is not hiring the right employees. Why Employee Turnover Is Not Always Negative All staff turnover costs an organization money, but the costs are more than offset by the increased productivity of a replacement employee who is a better fit for the job and more productive. When the employee quits, the organization benefits because now the supervisor can replace the low performer employee with someone who is better for the organization. Think of an employee who is a poor performer, makes many errors, has difficulty working with others, delivers low quality customer service and/or uses sick leave and vacation time as the hours are earned. Positive attrition refers to staff turnover that actually benefits the organization. The organization must once again recruit, assess, hire and train a new employee, and until the position is filled, team productivity declines. Negative attrition, especially in industries with the highest turnover rates, is expensive. Qualified and skilled employees leave for a variety of reasons, and it is often challenging to find an equally skilled replacement. Negative attrition refers to the loss of an employee the organization would like to keep. The reality is there is negative attrition and positive attrition. ![]() When an employee leaves, contributing to an already high turnover rate in some situations, the automatic assumption is that the attrition is negative and will cost the company even more money to replace the exiting employee with someone who can quickly reach full performance. Companies invest resources in recruiting, assessing, hiring and training each person. What is the Difference between Negative Attrition and Positive Attrition?įrequently, the organizational perspective is that staff turnover is usually not a good occurrence. There is positive attrition and negative attrition, and it’s important to understand the factors driving either type. It has more to do with what is behind the numbers. The truth is attrition is not as simple as the percentage of employee turnover. ![]() However, a common misconception is that if the attrition rate is low, all is well with the company, and if the rate is high, there must be a serious problem within the business. ![]() When determining the overall health of the business, the first statistic most organizations examine is employee attrition rate. Is Employee Turnover or Attrition always bad?
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