Employee Attrition is a serious problem that affects businesses in all sectors. Turnover, the occurrence of workers willingly leaving their jobs, can have significant effects on a business’s productivity, profitability, and general performance.
As a result, it is critical for companies to comprehend the underlying causes of employee attrition and create practical plans to lessen its detrimental effects.
In this Article, we will see the employee attrition types & report template
Types of Employee Attrition
Understanding the types of employee attrition helps the company to retain the employee. Some attrition is controllable and some are uncontrollable. Let us now see one by one.
Voluntary Attrition:-
The First type of employee Attrition is Voluntary Attrition. Employees who opt to quit an organization voluntarily experience voluntary attrition. It may be caused by things like improved career possibilities, unhappiness with the work environment or business culture, insufficient pay or benefits, a lack of room for advancement, or personal motives.
Involuntary Attrition:-
Employees quitting the company involuntarily as opposed to voluntarily means that something outside their control caused them to do so. This covers all occurrences of layoffs, downsizing, or company-wide reorganization. The remaining employees may feel demoralized as a result of involuntary attrition, which could affect morale and production.
Retirement Attrition:
Retirement attrition becomes a common cause of employee leaving as the workforce ages. When workers reach the end of their careers and decide to leave their jobs, this happens. Attrition due to retirement can cause organizations to lose seasoned workers and expose them to a potential skills and knowledge gap.
Functional attrition:-
The third type of employee attrition is Functional Attrition. Functional attrition is the process through which workers quit their existing employment within an organization but continue to work in other divisions or positions. This kind of attrition frequently results from lateral moves, internal transfers, or possibilities for career progression. Functional attrition can disrupt team dynamics and force efforts to fill open roles, even while it may not result in a total loss of talent.
Seasonal or Temporary Attrition:
Organizations may experience temporary or seasonal attrition in sectors where demand fluctuates seasonally or cyclically. Employees who temporarily leave their jobs to pursue other possibilities at non-peak times are referred to as experiencing this form of attrition. Even though the departures are only meant to be transitory, maintaining operational effectiveness depends on efficiently managing this attrition and facilitating a smooth transition.
What is an Employee Attrition Report?
A thorough investigation of the phenomena of staff turnover within an organization may be found in the staff Attrition Report. It attempts to offer insightful information on the factors that contribute to employee attrition, as well as its effects and potential remedies.
The Employee Attrition Report acts as a road map for businesses looking to comprehend, evaluate, and handle the problems caused by employee departures. Look at below for Employee Attrition Report Template picture.
Employee Attrition Report can be maintained monthly wise. If the company is small, a single report is enough. If the company is big, it can be maintained department wise for better Analytics.
Employee Attrition Report gives better results when we maintain the Opening Balance, Total employees joined and left for the particular month. Based on the formula, closing balance and Attrition percentage is automatically generated. When maintained properly throughout the year, yearly averages are arrived.
This report gives organizations the tools they need to create targeted initiatives, promote a healthy workplace culture, and build a devoted and engaged staff by exploring the reasons, effects, and potential solutions around employee turnover.
Hope this Employee Attrition Template is useful for your HR Department for Analytical purposes.
Also read HR LETTER TEMPLATES