We already know that the UK has record low unemployment. And this means retaining your employees is becoming ever more important.
However, when is attrition good? Can it be good?
The article here explores both the bad side and the good side to attrition. Yes, there is a cost to losing an employee, but sometimes the benefits out weigh these.
Plus there is the inevitability of attrition. At some point your employees will leave. Be it they retire or they move to another employer. We shouldn't be surprised, but we can be prepared.
Employee turnover tends to have ugly connotations to it, mainly because replacing lost talent is costly in terms of employee compensation and business profitability. On the one hand, excessive turnover can cost an organisation about 33% of its employees’ compensation package, which includes wages and benefits. On the other hand, companies with high turnover rates can be outdone by offices with low employee turnover up to four times profits-wise. On top of these losses, companies also have to keep employee morale in check, as poor morale is deemed unhealthy for organisations overall.