What is Attrition ?
Generally speaking, ‘Attrition’ means a reduction in numbers. Speaking of companies, attrition might come in the form of employee attrition or customer attrition.
Employee attrition happens when the employees leave the organization due to any voluntary reason like resigning or involuntary reason like getting fired. Customer attrition happens when the masses lose interest in the product due to any number of reasons and the company fails to adapt and innovate soon enough to replace the lost customers with new ones.
Since HRs are concerned with employee attrition, they are always on the lookout for the factors leading to attrition like poor working conditions, wage inequality, lack of employee welfare, reduction of job satisfaction index among employees, etc. Once the core reason is found out, HRs can take corrective measures to stop the attrition.