Understanding attrition
Attrition is a form of workforce reduction that happens naturally as people leave and aren't replaced. Unlike redundancies where positions are eliminated, attrition achieves headcount reduction through normal turnover without the disruption and costs of forced separations.
What causes attrition
- Resignations not backfilled
- Retirements
- Contract endings
- Natural departures
Results
- Reduced headcount
- Lower costs
- Workload redistribution
- Potential skill gaps
Types of attrition
Attrition takes several forms:
Attrition types
Attrition vs turnover
- Turnover: Employee leaves, position is typically refilled (headcount stable)
- Attrition: Employee leaves, position is not refilled (headcount decreases)
- Retention: Efforts to keep employees from leaving in the first place
Watch for skill gaps
Attrition can create critical skill gaps if key people leave and aren't replaced. Before allowing a role to attrite, consider: Can others absorb the work? Will you lose critical skills or knowledge? Is the workload sustainable for remaining staff?
Managing attrition
Before attrition
- Assess role criticality
- Identify skill dependencies
- Plan knowledge transfer
- Evaluate workload impact
After attrition
- Redistribute work fairly
- Monitor remaining staff workload
- Document critical knowledge
- Adjust processes if needed
Strategic attrition
When to use strategic attrition
When you need modest headcount reduction, natural turnover can achieve it over time, and you want to avoid redundancy costs and morale impact.
When attrition doesn't work
When you need rapid reduction, can't control which roles attrite, or risk losing critical skills. Attrition is slow and somewhat random.
Key takeaways
Attrition is workforce reduction through natural departures without backfilling. It can be strategic - a gentler alternative to redundancies - or unwanted if retention issues cause valuable people to leave. Manage it by assessing role criticality, planning knowledge transfer, and monitoring remaining staff workload.
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