Positive attrition refers to staff turnover that actually benefits the organization. The organization must once again recruit, assess, hire and train a new employee, and until the position is filled, team productivity declines. Negative attrition, especially in industries with the highest turnover rates, is expensive. Qualified and skilled employees leave for a variety of reasons, and it is often challenging to find an equally skilled replacement. Negative attrition refers to the loss of an employee the organization would like to keep. The reality is there is negative attrition and positive attrition. When an employee leaves, contributing to an already high turnover rate in some situations, the automatic assumption is that the attrition is negative and will cost the company even more money to replace the exiting employee with someone who can quickly reach full performance. Companies invest resources in recruiting, assessing, hiring and training each person. What is the Difference between Negative Attrition and Positive Attrition?įrequently, the organizational perspective is that staff turnover is usually not a good occurrence. There is positive attrition and negative attrition, and it’s important to understand the factors driving either type. It has more to do with what is behind the numbers. The truth is attrition is not as simple as the percentage of employee turnover. However, a common misconception is that if the attrition rate is low, all is well with the company, and if the rate is high, there must be a serious problem within the business. When determining the overall health of the business, the first statistic most organizations examine is employee attrition rate. Is Employee Turnover or Attrition always bad?
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