Many companies struggle with high employee attrition, where staff leave due to retirement, resignation, or termination. Regardless of the reasons behind employee departures, high attrition rates can be costly.
Let’s look at the more specific consequences of high attrition rates.
Impact of Attrition Rates on Business Costs and Productivity
High employee turnover makes it hard for companies to find and keep skilled workers, leading to increased costs and reduced productivity.
This issue can lower employee morale and raise expenses for hiring and training new staff. Some companies in the Philippines cut jobs or closed departments to save money, which only worsens attrition rates.
Industries like shared services, non-financial services, and high-tech are seeing higher turnover rates because there are more job opportunities available.
Impact on Key Industries in the Philippines
The “Big Quit” of 2021 hit industries such as construction, tech, and professional services hard. Problems like burnout, poor work-life balance, low pay, and limited career growth have made it challenging for these industries to keep and attract talented employees. To tackle this, companies are focusing on improving pay, offering career development, and enhancing work-life balance.
How to Lower Attrition Rates
If you can’t handle attrition on your own, help is accessible.
Recruitment agencies can efficiently find qualified candidates who align with company culture. This reduces time spent on hiring and minimizes productivity loss and employee burnout.
By presenting suitable candidates quickly, agencies help you fill vacancies faster, decreasing the workload on existing staff and preventing potential resignations due to overwork.
Check this infographic to learn more about employee attrition rates in the Philippines and how to resolve it.
Source: https://inquiro.ph/employee-attrition-rates-in-the-philippines-fast-facts-and-stats/
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