Attrition Analysis

Lighting dark alleys

As HR managers, one of the prime duties is to keep track of attrition. The rate at which employees leave impact an organisation drastically. In the HR terminology – this intermittent exit by employees is known as attrition and this phenomenon has become a serious concern in every management.

Attrition not only affects the business but also the brand image of a company. A company that has a high attrition is not always a sought after enterprise by job-seekers. The reason can vary from numerous reasons ranging from low remuneration to zero benefits. The need for attrition analysis is a must as it assists HR mangers to ascertain reasons for employee exits.

Attrition analysis- why is it a must in every organisation

Attrition was not taken seriously until recently the late 90’s, when companies began facing a shortage of talent. People leaving organisations after a span of 6 months to a year was no joke and required some serious deliberation. However, one reason that industrial psychologists suggested was – competition. Through attrition analysis it was found that if company A offer good perks and better opportunities than company B, it is a natural tendency of humans to seek greener pastures. Thus, HR managers began working on promoting company values.

But another interesting find suggested that companies must evolve internally in order to impact external forces, which includes potential investors and job-seekers. Industrial psychologist pressed HR managers to analyse employee exit trends through attrition analysis metrics. This helps HR managers to recreate strategies and implement the same in different ways.

Attrition analysis contributes to the details generated by HR managers on employees leaving the company. The metrics offer accuracy in terms of the reasons given by employees themselves. Apart from this, a wider avenue for change and dynamism also emerges from analysis of attrition.

Some of the benefits of attrition analysis are as listed below:

1. It brings to fore the cause of employee disengagement.

2. Enables HR managers develop long-term strategies to reduce attrition

3. Competitive measures to enhance company brand image

4. Develops and shapes drills that benefit both the management and the employees

5. Enhanced work culture

One of the known facts about attrition is it cannot be eliminated from the company. It is a part of every organisation as employees are free to leave the organisation. However, through attrition analysis, one can only reduce the rate of employee exits.


This skill gap analysis test is more or less conducted once a candidate is on-boarded. A candidate is put under vigorous training and their performance being evaluated simultaneously. An induction is a long process but ensures to offer sharp insights into an applicant’s aptitude.