Article: Effects of attrition on employee engagement

Employee Engagement

Effects of attrition on employee engagement

Attrition can affect organizations' employee engagement. It is always better to get to the crux of the reason for attrition and solve the problem before it starts to affect the organization.
Effects of attrition on employee engagement


Attrition in the HR context is the reduction of the workforce due to resignation or retirement without plans to replace the vacant positions. The simple formula to calculate your organization's attrition rate is Attrition Rate = Number of Attritions/Average Number of Employees *100. The organization's employee attrition rate if higher than 10%, it is advisable to figure out the kind of employees the organization losing. If they are low performing employees, the growth of the organization isn't at risk. However, if the employees contributed to the company's growth significantly, one might need to find a solution to the problem causing the attrition.  

Employee Engagement

Employee Engagement is an approach at a workplace that results in employees committed to the goals and values of the organization and motivated to contribute to the growth of the team and company. Good employee engagement will benefit both the organization and the employee's personal growth to reach their set targets. 

In a study conducted on The Impact of Employee Engagement on Organization's Productivity it was concluded that, “After reviewing the various research and survey findings of employee engagement, it can be certainly concluded that  high levels of employee engagement  will lead to  improved employee commitment & involvement towards job and thus creating a motivated workforce, that will work together to achieve the  common goals of the  organization.”  

Attrition can affect your organization's employee engagement further causing more damage to the company than anticipated. Losing your employee or team members can create a ripple effect where other team members are encouraged to leave the organizations for valid reasons, which is why it becomes vital for the HR department to figure out the cause of attrition and fix them.

While there can be several reasons for attritions, here are a few that can be resolved or can be controlled to increase employee turnover: 

  • Lack of Growth and Progression: Growth and development are crucial for retaining employees. The dead-end position will only push them to look for other companies where they see the scope of growth and can contribute to the organization in order to improve their status and pay.
  • Lack of Feedback and Recognition: Without the understanding of where the employees are headed, they may get skeptical about the company. Feedback ensures the employee's success and shows them their personal growth and pinpoints the areas that have the scope of improvement. Absences of feedback can result in discouraging a team member who struggles and eventually gives up and moves on from the organization. Feedback is also one of the best strategy used for employee engagement. 360-degree feedback is the new trend incorporated by the organizations to increase the productivity of employees. 
  • Overwork: Many team leaders comfortably ask an employee to stay overtime and work due to economic pressures. However, letting go of a few members and asking others to stay will only showcase bias behavior. Never ask an employee to choose between their work life or personal life. It will only give them another reason to leave the organization. Dividing the work amongst the team members equally according to their roles is the best way to make the team work together and efficiently, increasing the engagement. It creates a positive environment which adds to company culture.
  • Decision-Making: Little or no space of decision making for the employees is another reason that leads to attrition. Micromanaging the employees doesn't mean you have to look into everything they do. With a little trust and confidence in them and letting them make small decisions regarding work will motivate them. The opposite will only frustrate them and make them leave.
  • Employee Selection: Hiring an employee that doesn't fit the job profile to fill or reduce employee attrition rate will only hammer your company culture. Not only will it not sit well for the company or the employee but it will showcase your desperation for bandwidth which further can be damaging for the organization's image. 

There are many strategies that one can implement to increase employee engagement in the company, but there are factors that need to be controlled for the attrition rate to fall. An effective employee engagement promises the productivity of the employees which ultimately results in the organizational growth.

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Topics: Employee Engagement

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