Talent Sourcing

What is a High Attrition Rate?

Published on May 4th, 2023

One of the things that recruiters need to watch out for in their respective companies is the high attrition rate. This refers to the number of employees who have left the organization for various reasons such as lack of job satisfaction, poor management, or even inadequate compensation packages. As an HR professional, understanding the reason behind the high attrition rate is crucial because it can negatively affect the company's productivity and financial performance.

Understanding What a High Attrition Rate Means

A high attrition rate can be defined as the number of employees who have left an organization within a given time frame. It is calculated by taking the number of employees who have resigned, been terminated or laid off, or have retired from the company, divided by the total number of employees in that given period, then multiplied by 100. A positive and healthy attrition rate should be less than 10% or anything higher than this indicates a high attrition rate.

The Impact of a High Attrition Rate

A high attrition rate can negatively impact a company in various ways. It can lead to the company incurring a high cost of hiring and training new employees repeatedly, which can be expensive for organizations. Additionally, a high attrition rate can negatively impact employee morale and motivation, lead to increased workload on remaining employees, and create a perception that the organization is not a stable work environment.

Causes of a High Attrition Rate

There are a variety of reasons that lead to a high attrition rate in an organization. Some possible reasons are lack of job satisfaction due to work conditions, pay, lack of career advancement opportunities, and poor management practices. Additionally, a general dissatisfaction with company culture, company policies or job roles and responsibilities can also contribute to a high attrition rate.

Strategies to Reduce High Attrition Rate

To manage high attrition rates, recruiters and HR professionals can use various strategies to reduce employee turnover. Some of these strategies are creating a positive company culture, offering competitive pay and benefits packages, providing opportunities for career advancement and training, and providing a better work-life balance. Additionally, creating effective management practices, regular feedback or check-ins, and conducting exit interviews to understand why employees are leaving can help to reduce the high attrition rate.

Reducing attrition requires addressing the root cause, and one effective approach is sourcing the right people. By automating the candidate sourcing process, tools like EasySource can significantly decrease attrition rates. EasySource, an automated talent sourcing tool with embedded ChatGPT, empowers recruiters to find and engage relevant candidates through hyper-personalized messaging. It can be a valuable asset for organizations struggling with high attrition, helping them discover the right talent and build a stable workforce.


High attrition rates are an essential aspect that HR professionals should be aware of in their respective organizations. It is critical to understand its impact on the company, and this can help drive strategies for reducing attrition rates and improving employee satisfaction in the workplace. When you create a company culture that values and invests in employees, offers competitive compensation and benefits, opportunities for professional growth, and stress management, you can create a work environment where employees are motivated to stay, work productively, and enjoy what they do.



Radhika Sarraf

Radhika Sarraf is a content specialist and a woman of many passions who currently works at HireQuotient, a leading recruitment SaaS company. She is a versatile writer with experience in creating compelling articles, blogs, social media posts, and marketing collaterals.

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