Attrition Rate

Updated: Jan 3

Welcome to the new topic of this blog - Attrition!!

Attrition is simple terms means the process when an employee decides to leave or exit from an organization.

An employee can decide on leaving the company for different reason. Some of them may include but not limited to:

  1. Better prospect

  2. Better Role

  3. Better Package/Perks

  4. Convenience and conveyance

  5. Flexibility

  6. Decision based on employees personal life or individual emotions attached

This process requires the organization to plan the following:

  1. Arrange a backfill employee to avoid an impact to process/project - Hiring

  2. Ensure the new employee trained on every aspect before he/she starts working - Training

  3. Ability of employees to adapt to the current workload and culture - Learning Curve

  4. Employee expertise in their current work role and improvise by continuous learning - Steady State

This goes without saying that attrition is a cost to an organisation. Hence, an organization invest time to access employee's concern and try their best to retain an employee leaving an organization. However, this is purely depend on employee whether to stay or leave the organization.


Attrition factor is assessed using historical trends and is highly dependent on:

  • Type of work - Easy, Moderate or complex

  • Volume/Transaction - Subsequent work with no rest time for prolonged hours can also make the work uninteresting for employees

  • Operational Engagement - this plays a vital role in creating a positive environment which works in favour of typical contact centre environment

As a WFM employee, we factor attrition during resource planning and plan back fill batches to cover attrition so as to avoid any impact to business.


Attrition is defined in percentage and derived using the formula:

(No. of employees who have left in a given month) / (Total number of employees in that month)

For instance, ABC company have a current size of 120 heads and 12 employees decided to leave the organization in month of May 2o21


Thus, the attrition percentage for the month of May 2021 is

= 12/120 = 0.10 X 100 = 10%
This implies May 2021 has carried a 10% Attrition rate

Similarly Attrition rate is calculated year-on-year and basis a trend assumption, resource planning is administered.


CONCLUSION:

These calculations are simple and yet effective to adhere to precise planning when collaborated at high scale FTE sizing.


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Stay tuned for more updates!!




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