Is Attrition Is Good Or Bad For An Organisation

Dear all,
In my view high attrition rate is very bad. If attrition rate is below 15% is acceptable. More than that is harmful to the company. With new employees organisation will get benefit in terms of new ideas, innovations which enables organisation growth.
regards
S.N.Rahaman
BASIX

Hi,
I think it is better for any org. to have "healthy attrition" percentage, successful companies have the policy of forced attrition ie: they ask bottom 5% or 10% of the employees who are not performing to leave the company......i know of some great companies who adapt this policy to : differentiate performers, infuse fresh blood with different perspective and also communicate to the employees that the company takes care of the performers.
But i do agree that involuntary ( resignations) attritions has to be very minimal for any org. to succeed.
SM

Hello SM:

>I think it is better for any org. to have "healthy attrition" percentage<

Well managed employers must lose some of their best employees because the best employees need a chance to advance in their careers and most such employers do not have enough positions available for all their good employees.

>successful companies have the policy of forced attrition ie: they ask bottom 5% or 10% of the employees who are not performing to leave the company.<

Why are these employees not performing?

>i know of some great companies who adapt this policy to : differentiate performers, infuse fresh blood with different perspective and also communicate to the employees that the company takes care of the performers.<

It seems to me when employers fire the bottom 5 to 10% per year they are admitting that they you do not know how to screen out bad hires.

>But i do agree that involuntary ( resignations) attritions has to be very minimal for any org. to succeed.<

I agree and the secret to reducing attrition is improving the selection process.

Bob Gately

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