What is Attrition?

In simple terms, “attrition” refers to the gradual wearing down of the strength or effectiveness of a person, organization, or resource. Warfare, for example, classically targeted the infrastructure and population of an enemy force, reducing said enemy’s ability to wage war through the gradual deprivation of that which they needed to maintain hostilities. In the modern business world, the definition is similar, if a little more specific: it refers to the gradual, inevitable loss of important resources, primarily human labor, typically due to specific factors which are unavoidable within a given industry.

Attrition, of both manpower and other resources, is a common factor in evaluating the bottom line of a business in every field of professional operation today, and a vital element to track and manage in order for an organization to be financially successful.

Specific Examples of Attrition

Within various specialties of the field of information technology, there is a great deal of competition, in areas which still display a conspicuous lack of highly trained and specialized workers. This results in what is often known as job-hopping, as employees leave one organization in favor of better prospects elsewhere in the industry. Well-established workers have valuable experience, and may be courted directly by rival companies, countering such factors as loyalty and contentment. This kind of attrition is largely unpredictable, and uncontrollable, but is guaranteed to happen to some extent due to the nature of the industry.

At a more basic level, employees in fields such as the food industry and customer service frequently leave due to the conditions of their workplace and the inability to accommodate scheduling requirements; this kind of attrition is sometimes referred to as “turnover” due to the rate at which it occurs.

Attrition of Non-Human Resources

In the restaurant and grocery industries, there are large amounts of attrition (frequently referred to as “loss”) due to spoilage and internal theft. This loss eats at the profits of a given company; collectively, across both industries, it amounts to billions of dollars of financial loss each year. Some forms of loss are compensated by suppliers, while others must be absorbed through the merchant company; frequently, it will affect either end. Loss based on obsolescence within the electronic industry, for instance, will affect the company at the point of sale immediately, as all of its stock of a given item becomes worthless. However, it will also affect the supplier, often much more profoundly.

Strategies for Mitigating the Loss of Valued Employees

Particularly within smaller organizations, the loss of skilled and experienced workers can become a serious problem. There are a variety of widely practiced strategies available to help reduce the factors leading to employee resignation as much as possible, though certain underlying reasons (such as illness) remain largely uncontrollable.

Related resource: Top 15 Most Affordable Online Master’s in Organizational Leadership Degrees 2014

Examples of these strategies include maintaining open lines of communication for employee grievances, applying situationally appropriate management styles, offering competitive benefits, and conducting exit interviews with employees who leave on positive terms. These strategies can reduce attrition in an ongoing sense, and help to put a stop to preventable future personnel losses.

Attrition will always be a problem for most industries. Perishable goods spoil, and non-perishable goods are rendered obsolete. It is impossible to create a dynamic, within a company, which will keep everybody happy all of the time. Through the application of a few simple strategies, however, it is possible to reduce most forms of attrition to where their effects can be mitigated, even in smaller organizations.