Reducing Employee Attrition: Tips And Best Practices For Businesses

Niva Overseas


 

Introduction

The high employee attrition rate is a challenge that Business Process Outsourcing (BPO) industry is struggling to deal with. Many BPOs have employee retention as one of their top priorities. After all, it is easier and cheaper to retain an employee than to constantly train new ones.

BPOs have tried a number of methods to reduce employee attrition. Some of these have been successful while others have not. In this article, we will take a look at some of the best practices for reducing employee attrition in BPOs.

 

 Definition of Attrition

  Attrition is the reduction in staff that a company experiences due to employees leaving the company. Resignations, retirements, and deaths are the three main types of attrition. Attrition can also be classified as voluntary or involuntary. Voluntary attrition is when employees leave the company of their own accord. This can be for a variety of reasons, such as pursuing another opportunity, or dissatisfaction with their current position. Involuntary attrition is when employees are let go by the company, usually due to performance issues.


Types of Attrition

 There are two main types of attrition: 1. Voluntary Attrition: This is when employees leave the company of their own accord. This can be for a variety of reasons, such as pursuing another opportunity, or dissatisfaction with their current position. 2. Involuntary Attrition: This is when employees are let go by the company, usually due to performance issues. 


Causes of Attrition

 There are a number of reasons why employees may choose to leave a company. These can be broadly classified into three categories: 1. Personal Reasons: These include reasons such as marriage, pregnancy, health problems, etc. that may require an employee to relocate or take extended leave. 2. Professional Reasons: These include reasons such as dissatisfaction with the company, or a better job offer from another company. 3. Family Reasons: These include reasons such as caregivers needing to take care of elderly parents or young children.


Measuring Attrition

  There are a number of ways to measure attrition. The most common method is to calculate the turnover rate. This is the percentage of employees that have left the company over a certain period of time. Another common method is to calculate the voluntary turnover rate. This is the percentage of employees that have left the company of their own accord over a certain period of time. 


Reducing Employee Attrition - Tips and Best Practices

  There are a number of things that companies can do to reduce employee attrition. Some of the most effective methods are: 1. Offer Competitive Salaries: This is one of the most effective ways to reduce attrition. Employees are more likely to stay with a company if they feel that they are being paid fairly. 2. Offer Employee Benefits: Employees are also more likely to stay with a company if they feel that they are being given good benefits. These can include health insurance, transportation allowances, etc. 3. Provide Training and Development Opportunities: Employees are more likely to stay with a company if they feel that they are being given opportunities to develop their skills and careers. 4. Improve Work-Life Balance: Employees are more likely to stay with a company if they feel that they have a good work-life balance. This can be achieved by offering flexible work hours, telecommuting options, etc. 5. Enhance Communication: Employees are more likely to stay with a company if they feel that they are being kept in the loop about what is going on in the company. This can be achieved by having regular meetings, sending out newsletters, etc. 

 

Conclusion

 Reducing employee attrition is a challenge that many companies face. There are a number of things that companies can do to reduce attrition, such as offering competitive salaries, providing training and development opportunities, and improving work-life balance. By implementing these measures, companies can reduce attrition and improve retention.

 

 

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