Disadvantages of Attrition to an Organisation

Published on January 2017 | Categories: Documents | Downloads: 21 | Comments: 0 | Views: 306
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Disadvantages of attrition to an organisation
1) The organization loses its top talent: During economic
hardship, investing in employee engagement is like repairing the
roof before a big whirlwind hits it. So, if an employer neglects
employee engagement, he will taste the whirlwind of a smart and
top talented employee exodus as soon as there are signs of
economy improvement.
2) Delay in execution of projects – Because of attrition employers
have to find a new replacement for the resources and the process is
time consuming. This may result in delaying the existing deadlines
of the project in absence of the resources. This also increase the
cost of the project.
3) Increasing cost of recruitment – The new resources have to be
trained about the existing project or skills and thus a lot of cost has
to be borne in order to get them up to the level of the employees
who have left the organisation.
4) Increase in the burden on the existing employees – If it is
taking a lot of time to find the new replacement, the existing team
members have to do multiple tasks and this might increase burden
on them which may be harmful for the productivity of the
employees.
5) Negative Impact on Organizational Success: Looking into
employee engagement as a strategy is not only essential for
organizational success but vital for long-term organizational viability.
So, if there is low employee engagement, it is likely to have a
negative impact on organizational success.
6) Impact on the Organizational culture - managers of an
organization must be able to build a culture where respective
employee feels valued and can take decisions. High attrition rates
hamper the culture of the organization.

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