What Is Natural Attrition?
Published on May 1st, 2023
As recruiters, we are always on the lookout for ways to manage talent in the most efficient way possible. One term that has gained a lot of attention lately is ‘Natural Attrition’. Natural Attrition is a phenomenon that occurs in the workplace where employees leave their organization of their own accord due to various reasons, such as retirement, relocating or taking another job. This post will elaborate on what Natural Attrition is, why it’s important, what factors can influence it, and how employers can take advantage of it.
Why is it important for employers to understand Natural Attrition?
First and foremost, it helps employers to gauge their workforce management effectively. For instance, if a team member quits, but the company had already predicted the exit due to Natural Attrition, then they can prepare in advance to ensure minimum disruption to work. Secondly, it leads to cost-saving. Constantly hiring, training, and providing benefits for new employees can be costly. Natural Attrition helps employers maintain the right workforce size, ensuring they keep only the necessary staff, which ultimately saves the company money.
Another important aspect to consider is that Natural Attrition also helps employers create a more diverse workforce. When experienced employees leave, it provides an opportunity for the company to hire employees from different backgrounds, including new graduates, previously unemployed individuals, or individuals re-entering the workforce. This results in a more varied workforce with people from different backgrounds, diversifying in ideas, cultures, and perspectives. It can also lead to increased employee morale, as new hires bring in fresh ideas and energy into the team.
Several factors influence Natural Attrition in the workplace, including industry trends, retirement demographics, and economic factors. For example, as Baby Boomers retire in large numbers, industries such as healthcare, manufacturing, and finance will be impacted more than others. Newer job sectors may not be heavily affected by natural attrition, but with technology advancement comes automation, leading to some roles becoming obsolete. Employers should, therefore, pay attention to industry trends and company-specific factors that influence Natural Attrition.
Finally, employers can take advantage of Natural Attrition by creating strategies to retain staff, such as succession planning, employee training and development, increased compensation and employee engagement. For example, training opportunities are highly desirable among millennials, and offering these opportunities can increase retention and employee satisfaction.
How to Manage Attrition at the Organizational Level?
Managing attrition at the organizational level involves implementing strategies to address the root causes of employee turnover. One effective approach is to focus on sourcing the right candidates from the start. By automating the candidate sourcing process, companies can significantly reduce attrition rates.
EasySource, an automated talent sourcing tool, offers a solution in this regard. It assists recruiters in finding and engaging with relevant candidates. With the inclusion of ChatGPT, recruiters can send hyper-personalized messages to candidates, enabling them to discover talent that aligns with their organization's needs.
In summary, to manage attrition at the organizational level, organizations can leverage tools like EasySource to streamline the candidate sourcing process and improve the chances of hiring suitable individuals. By sourcing the right people from the beginning, companies can reduce turnover and maintain a stable and productive workforce.
Natural Attrition is an important aspect for recruiters to understand. It helps manage talent and workforce size effectively and efficiently, saves costs, and offers an opportunity to diversify the workforce. Employers can take advantage of it by creating strategies to retain staff and prepare for future exits. By understanding Natural Attrition factors and trends, employers can develop targeted strategies to ensure that their organizations are well-positioned to attract and retain top talent.
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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