September 11th, 2008
Purpose While attrition is a natural process for organizations, replacing employees is expensive. The cost goes beyond merely placing an advertisement for the opening in a newspaper. It includes training a new employee, staff time for selecting a new employee, lost productivity while the position is open and lost productivity until the new employee gets up to speed. Understanding why people voluntarily leave the company can provide an opportunity for the firm to make changes to reduce turnover rates -- and reduce the associated costs.