Employee attrition and candidate absconding are significant business concerns for every organization, one even bigger than attracting talent.. Employee attrition is a serious issue, especially in today’s knowledge-driven marketplace where employees are the most important human capital assets; attrition impacts an organization’s competitive advantage. Annual attrition rates in the IT/ ITes industry are estimated to be in the range 20 to 80 percent, 15% for high-skilled IT services and on average 40% in the BPO industry. The tangible costs of employee attrition would be the cost of training new employees, the recruitment and selection costs, adjustment time, possible product and/or service quality problems, costs of agency workers/ temporary staff, the cost of training, the cost of loss productivity, the cost of lost knowledge and the cost of the position remaining vacant till a suitable replacement is found. The intangible costs, which may be even more significant than the tangibles, involve the effect of attrition on organizational culture, employee morale, social capital or organizational memory. All these costs would significantly take away the profitability and the competitive advantage of the firm.
It is imperative for every organization to understand what attracts and retains a potential candidate and predict attrition early in the recruitment process to curtail significant loss of productivity among hiring managers, recruiters and eventual loss of revenue and moneys.
Employee attrition is a very big problem globally. Attrition rate is increasing day by day, and especially the software industry is affected the most in the present era. Why an Employee leaves a company is the question asked by most of the employers. Companies even hire Private HR professionals to study the company’s work and find out why an employee is dissatisfied.
HR department does the recruiting of new employees and then send them for training so that they can understand work and work culture and become better professionals. Each and every company faces employee turn over problem whether big or small. An employee leaves his present job for another job to get better pay package and good working conditions.
Every Company calculates Employee attrition rate and takes measures to reduce it. The facts and figures are not made public as it may tarnish the image of the company in front of its own employees and its loyal customers. For this, a study on employee attrition is made at Investleaf Management Solutions Pvt. Ltd. to know about the attrition rate and the techniques followed by the company to overcome this barrier.