Management in India

Cost of attrition

We all know that attrition is costly for any organization. Like any other cost, every organization wishes to reduce attrition also. In the knowledge industry, attrition costs are magnified due to the people-centric nature of work. However, most people do not understand the real costs of attrition. Unfortunately, the real cost of attrition is many times higher than what it seems to be to the manager on the floor. Let's break the costs down.

Direct costs

Some of the costs of attrition are straightforward to see.

Administrative costs of an exit

There are a bunch of simple administrative costs associated with every employee who leaves:

• HR - Exit interviews
• No-dues process that requires signatures from various departments
• Financial work ...