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    Sarah Gatehouse.

    Fujitsu General Australia

    "In 2016 we rolled out intelliHR, and in 2017 we had our best financial year yet. That makes a massive statement to show how valuable an investment in people and technology can be."

  • Sarah Gatehouse

    Sarah Gatehouse.

    Fujitsu General Australia

    "With the implementation of intelliHR, the improvements in our culture are clearly visible. intelliHR is a tool that helps with our strategic cultural goal of being a great place to work, with improved engagement, communication and goal management now well on track."

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    Sheldon Commercial Interiors

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Retention | 5 min

Keeping the right staff: the pros and cons of attrition

Keeping the right staff: the pros and cons of attrition

As an employer, keeping our staff engaged and motivated to put in their best effort is one of the most important and ongoing issues we have. What a lot of businesses fail to understand is that losing staff and having to constantly recruit new people can have a large impact on all levels of an organisation. Attrition (the loss of staff) costs companies far more than they often realise in lost revenue, productivity and, potentially, business. Alternatively, keeping on a staff member who is not performing can be equally costly for a company.

When a company loses a staff member they will need to come up with their entitlements, then there are advertising costs and hours spent finding a replacement. In the meantime, they will need to find temporary employees or use existing staff to cover their duties, or potentially just lose those productive hours. A staff member will also take with them valuable hours of training and development, not to mention the affect that a loss of staff can have on office morale and the potential loss of clients or customers. Losing that one employee is costly, so imagine that cost if you are regularly turning over your staff members.

On the other side, when you recruit a new employee there is always going to be that initial period where they are still adjusting and learning the role and won’t be performing to their peak. It’s important to evaluate during that probation period if the effort and money you are putting into your new recruit will produce results. It can be even more expensive to keep on an employee if they’re unlikely to fit a role and start producing revenue in a reasonable amount of time.

So, how do we as employers or HR professionals recognise that our star staff member is ready to walk out the door and how do we prevent it? Also, how do we measure how our onboarding of a new recruit is progressing so that action can be taken if needed before the end of their probation period? The first, and most important step, is to have a good people management system where you can clearly see where your staff are, how they’re feeling and if they’re achieving their goals. Having the right data will make all the difference in retaining the right people. If you don’t know what is wrong, how can you address it?

Ways to reduce attrition

A good people management solution will allow you:

To have regular check-ins

Having regular check-ins with staff, whether they’re sitting next to you or are in another state, to see if they’re achieving their goals, have what they need to do their job and if they’re happy in their role is vital. Continuous feedback between leaders and staff helps employers identify and recognise potential issues before they become bigger problems.

To see who’s leaving

Some businesses do not even realise that they have an attrition problem. Good people management software can identify where there is an attrition problem, right down to the business units and leaders. Once you identify there is a problem and where it’s occurring, you can positively address it. As the cliché goes, with knowledge comes power.

To see what went wrong

In the unfortunate event of losing a key staff member, knowing why they quit can help to prevent the loss of more staff. People management software that allows you to track and analyse exit interviews and the reason why an employee left can bring valuable knowledge. If you need to let go of a staff member who is not performing, you will have a better understanding of what failed.  This understanding will allow you to make positive changes to prevent any further losses and change the culture of your business.

A good management system is vital in preventing the loss of great staff members and enabling the loss of those who aren’t performing for your company.

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