In a highly competitive talent marketplace, employee attrition bears heavy costs for any organization. 

After all, it costs a lot to hire an employee - salary, benefits, recruiting, onboarding and training costs. There are also costs that are impossible to quantify but fatal to your bottom line - low employee morale, lost clients, and low productivity while the position is vacant and till the new employee settles fully into the role. A new employee needs time to ramp up the learning curve, and it can take up to a year for a new employee to be fully productive.  

The cost of replacing an employee can range from a minimum of 50% to over 200% of the position’s annual pay according to the Society for Human Resource Management (SHRM). 

High employee turnover can prove to be fatal to any business since recruitment, onboarding and training costs are extremely expensive. Employee attrition kills your bottom-line.  

Today, employees have to switch across functions, jobs and even industries to advance their careers. Companies, on the other hand, are looking for ways to compensate the employee with a lesser burden and do not promise any job security. Also, millennials and Gen Z are more inclined towards meaningful work, schedule flexibility and drawing their non-linear career paths forcing companies to adapt to their expectations. 

Thus, increasing employee attrition is the inevitable fact of the modern career path. 

Companies have also realized that charting long-term employee retention is increasingly becoming an impossible task due to the above reasons. 

Successful companies don’t fight but accept, adapt and leverage employee attrition, turning it into a golden business opportunity. 

As employee tenures decrease, strategic companies embrace attrition as an opportunity. They view employees as smart contributors from the start and value scarcity of both talent and time. This scarcity, when harnessed correctly, drives abundant business results. Both the employee and employer realize the scarcity of time and treat their work and its goals with greater urgency. 

“Retention is an overrated strategy that jeopardizes a company’s success, longevity and competitive advantage in the workforce.” - Human Capital Institute (HCI).

Deloitte recently identified seven key disruptors are driving change and opportunity in the future of work. Two major disruptors include the changing nature of a career and the rise of contingent workers. 

Companies have to chart strategies that embrace the future of work to stay on top of the competition. 

Like, you can adopt the Pareto's Principle or 80:20 rule in your organization by outsourcing 80% of the non-core tasks, with the in-house team focusing on the rest 20% core activities.  

Cultivating a diverse employee workforce to access critical skills can help your business achieve its goals irrespective of whether employees are leaving your organization or not. You can seek out for these vital skills and leverage the scarcity of time and talent as your competitive advantage. 

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