7 Causes of Employee Attrition and Strategies to Reduce it

7 Causes of Employee Attrition and Strategies to Reduce it
High employee attrition is a problem that not only affects a business’s reputation but it also involves loss of valuable knowledge and experience, loss of belief in the team's competence and ability to perform, and most importantly, loss of time and money.

You might not have thought about it but a high attrition rate is directly impacting your organization’s reputation. Today, retaining employees has been more difficult than ever before and it is a problem that needs to be addressed straight away. Employee attrition refers to the number of employees who leave an organization during a specified time period. 

You might be thinking that it’s something you can’t stop from happening because it’s a natural occurrence within organizations. Yes, it’s true to some extent, according to a study, on average, every year, a company will experience an 18% attrition in its workforce. And this is completely normal but what to do when it’s more than 18%? If you ask me then I would suggest- find a solution!

“Employee expectations are changing and organizations need to understand this. They need to evolve with the evolving workforce, otherwise, they will lag behind their competitors.”

High employee attrition is a problem that not only affects a business’s reputation but it also involves loss of valuable knowledge and experience, loss of belief in the team’s competence and ability to perform, and most importantly, loss of time and money. So this is a problem that requires an immediate fix. But you can’t fix a problem without knowing what caused it in the first place. So today, we will be discussing the major causes of employee attrition and strategies to reduce it. Let’s move ahead: 

Poor Hiring Strategy 

If you fail to evaluate a candidate before making the final hiring decision, then you are making a way for the candidate to leave the organization. Poor hiring decisions can act as a deterrent to future potential candidates that are the perfect fit for a given job opening. 

How to fix it -Re-evaluate your hiring process and examine your candidate persona. Take the help of an applicant tracking system that helps improve your hiring efficiency and increases your chances of hiring the perfect fit by automating time-consuming tasks. Conduct background checks,  leverage data-backed decision-making, and be specific about your job requirements. 

Toxic Work Culture

Around 94 percent of executives and 88 percent of employees believe that distinct workplace culture is important to business success- source Deloitte. This is why it is important to build a positive work culture for your employees. Toxic work culture employees well being, which directly leads to high absenteeism and low productivity. 

How to fix it– If toxic workplace culture is a major reason for your high employee turnover, then you need to evaluate whether or not your employees are feeling valued, heard, and appreciated in the organization. Conduct polls and surveys to take feedback on certain company policies, communicate openly with your employees, listen to their feedback and act on it and promote inclusion. Avoid micromanaging, offer more autonomy and flexibility. 

Lack of Growth and Development Opportunities

In the end, everybody looks for an organization that offers them continuous growth and development opportunities. You can lose your best players due to a lack of suitable growth and development programs. Nobody would enjoy working in the same job role for the rest of their professional career. So always focus on providing necessary training and coaching to your employees. 

How to fix it – Always try to help your employees grow financially, professionally, and personally. Encourage learning among employees by offering them regular training sessions, by paying for their online courses or other educational programs, or also give them opportunities to grow within the company by assigning them greater responsibilities. 

Bad Manager

“People don’t leave bad jobs, they leave bad bosses”- is one of the most common quotes that we can see floating around out there. This might not sound good, but it’s somehow true. Nobody likes to work with people who take credit for others’ ideas, are biased, and even insult their reports. This is one of the major reasons why most people quit their jobs. 

How to fix it– A good manager is one who takes his/her employee’s growth seriously. He/She knows the strengths and weaknesses of his/her people and uses their skills and abilities to help organizations reach new heights. Don’t focus on being a boss, focus on being a leader. A leader makes sure that no one is left behind, communicates clearly and honestly with his/her people, and encourages them to grow into their role. 

Poor Compensation 

Why does a person work for your organization? Because he/she loves working, having a career, and for financial reasons. If you are not offering your employees the wage they deserve, then you must not blame them for leaving you. 

According to a Gallup survey, “Pay and benefits” was the second most common answer (22%) to why employees leave their jobs.

How to fix it– Always focus on offering the best possible compensation benefits to your employees. Monitor what other organizations are offering their employees, measure employee performance, identify top performers, recognize and reward them, and correct pay imbalances. Besides monetary benefits, there are numerous other benefits that you can offer to your employees including health insurance, term life insurance, employee wellness programs, flexible and collaborative work options. These benefits make your employees feel valued in the organization and pass on a message that you care for them.  

Lack of Recognition

Most of the employees feel enthusiastic about their jobs because their efforts are acknowledged from time to time. According to a survey by Deloitte, 9,400 business and HR respondents stated that employees aren’t satisfied or happy with the alignment of the rewards strategy with the organization. This is why it is important to offer continuous feedback and appreciation to employees. 

How to fix it -Sending personalized emails to employees telling them how well they are performing or how proud you are of their performance can help you make your workforce more productive. Focus on celebrating wins no matter how big or small these wins are. Provide constructive feedback, conduct regular one-on-ones to give feedback on their performance, guide them on how they can overcome their weaknesses. 

Employee Burnout 

It is one of the major reasons for high attrition in organizations. Sometimes we get so indulged in our organization’s growth that we often forget that our employees are not machines, they are real people and they need regular breaks to recharge their minds and bodies. Emotional and physical exhaustion can lead to employee burnout. 

How to fix it -Encourage employees to take regular breaks during office hours, introduce no work after working hours or weekends policy, and offer meditation or mental health sessions. You can also conduct polls and surveys to take employees’ opinions on their workloads, encourage them to be open so that you can take appropriate action. 


Losing an employee means losing valuable hours, money, and effort in hiring an employee. While layoffs may be unavoidable, there are ways to reduce or even control attrition. By following the above-mentioned tips you can create a healthy and positive work culture that encourages employees to work with all their hearts.


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