What is Attrition and Do You Know Why Does It Happen?

Attrition is a common phenomenon that occurs in many organizations, and it refers to the process of employees leaving their current jobs for various reasons.

It can happen for a variety of reasons, including lack of job satisfaction, low morale, and limited career advancement opportunities.

However, iBAN Online is one company that has set an example, where employees are highly satisfied and never think of leaving the company.

Why do people leave the company?

  1. Job dissatisfaction: One of the primary causes of attrition is job dissatisfaction. When employees are unhappy with their job, they are more likely to leave the organization in search of a better opportunity.
  2. This dissatisfaction can arise due to several factors such as:
  • Inadequate compensation
  • Poor work-life balance
  • Lack of job security.

Employees often feel undervalued and unappreciated in such situations, leading to low morale and eventual resignation.

  1. Lack of opportunities: Another significant factor that contributes to attrition is the lack of career advancement opportunities.

When employees do not see a clear path for professional growth within the organization, they are more likely to look for opportunities elsewhere.

Inadequate opportunities for training and development can also lead to a sense of stagnation and dissatisfaction among employees, eventually leading to attrition.

  1. Organizational changes: In some cases, organizational changes can also result in attrition like:
  • Mergers
  • Acquisitions

When employees perceive such changes as a threat to their job security or feel uncertain about their roles and responsibilities, they may choose to leave the organization.

What is Attrition

In addition, the introduction of new management or changes in leadership can sometimes lead to a shift in organizational culture, which may not align with the values and expectations of certain employees.

The impact of attrition can be significant for organizations, leading to a loss of institutional knowledge, decreased productivity, and increased recruitment costs.

It can also affect the morale of remaining employees, leading to a negative impact on the overall organizational culture. Therefore, organizations must take steps to reduce attrition by identifying and addressing the root causes of the problem.

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One way to address the issue of attrition is by conducting regular employee engagement surveys to understand the needs and concerns of employees.

Such surveys can help identify problem areas and allow organizations to take corrective action to improve employee satisfaction and engagement.

Additionally, providing career development opportunities, adequate compensation, and benefits can help retain employees and reduce attrition.

Organizations can also focus on creating a positive organizational culture that promotes employee well-being and job satisfaction. This is achieved by the following initiatives:

  • Employee recognition programs
  • Flexible work arrangements
  • Regular communication and feedback mechanisms.

Creating a culture of trust, transparency, and open communication can also help build a sense of community and foster a positive work environment, which can contribute to reducing attrition.


Attrition is a common phenomenon that affects many organizations. It can occur due to various factors as mentioned.

Attrition ...

To reduce attrition, organizations must identify and address the root causes of the problem, which can be achieved through various initiatives as mentioned.

By doing so, organizations can retain their valuable employees, maintain productivity and morale, and ensure long-term success.

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