Employee retention is the ability of an organization to retain its employees. Usually, if 80% of employees stick to that organization for a given period, we can say that the particular organization has good employee retention.
It is very important for an Organization to hold the employees for a longer period of time and maintaining a good retention rate using various policies and practices. Employee retention techniques have to implemented carefully to retain their employees for a longer time. It is very true that an organization survives with a bunch of employees who work towards a defined goal for a period of time.
Employee attrition is the term used when employees leave the job. Employees may leave the job because they have found a more suitable one or not satisfied with the current organization. There can be many reasons for employee attrition like pay is not great,8 perks are not satisfactory, the infrastructure of the organization is not great or Manager is a sadist.
Employee attrition can be Organization centric also. The Organization may have just lost a project and want to reduce costs or terminate the employee because of poor performance or excessive absenteeism or violation of a workplace policy. In simple words, employee attrition is the reduction of staff. The attrition rate can be calculated by dividing the number of employees in a month, with the number of people who left in a month then multiplying it by 100.
Retention and Attrition are two opposite situations in any Organization. When Retention is high Attrition is low and vice versa. Any Organization should work towards decreasing Attrition, then Retention rate will increase automatically.
When attrition is more, the Management should do some research and dig out the reasons for the same and act accordingly. In many cases, employees leave an organization due to constant friction with the team lead or other team members which leads to frustration. In such cases, management should intervene and try to resolve the issues. Encouragement given to the hard-working employees will motivate others to work hard and achieve targets.
Both Employee Retention and Attrition are major deciding factors for the success and growth of the Organization. It will be difficult for an Organization to survive if the employees are not serious about their jobs and targets.