What is the Average Attrition rate needed to set in KPI, especially in MSME Industry?
From India, Jamnagar
From India, Jamnagar
Dear member,
As of now what is the attrition % in your company? Please calculate it and give a target to reduce it by 2-5%
But then to whom will you give this target? Who exactly will be held responsible for the employee attrition? What authority does this person have to curb the attrition? Please ponder over these questions before setting a traget.
Thanks,
Dinesh Divekar
From India, Bangalore
7884As of now what is the attrition % in your company? Please calculate it and give a target to reduce it by 2-5%
But then to whom will you give this target? Who exactly will be held responsible for the employee attrition? What authority does this person have to curb the attrition? Please ponder over these questions before setting a traget.
Thanks,
Dinesh Divekar
From India, Bangalore
Hi
What is Average Attrition rate need to set being a HR in KPI specially in MSME Industry.
Setting a target for attrition rate as a Key Performance Indicator (KPI) can vary depending on the industry, company size, and specific circumstances. In the case of the MSME (Micro, Small, and Medium Enterprises) industry, it's important to consider a few factors before setting an attrition rate KPI:
Industry Benchmark: Research industry-specific attrition rates to understand what is considered average. Different industries may have different turnover rates due to factors like job stability, competition, and the nature of work.
Company Size and Maturity: Smaller companies and startups might experience higher turnover rates as compared to larger, more established organizations. It's crucial to take the size and maturity of the company into account.
Nature of Work: Some industries, like IT or consulting, may have higher natural attrition rates due to factors such as project-based work or high demand for specialized skills.
Geographical Location: Attrition rates can vary by region or country due to factors like local job market conditions, cost of living, and availability of opportunities.
Employee Demographics: The age group and background of employees can influence attrition rates. For instance, younger employees might be more likely to change jobs for career advancement.
Retention Strategies: If the company has implemented specific retention strategies or programs, these should be considered when setting attrition rate KPIs.
Historical Data: Analyze the company's historical attrition rates to identify trends and patterns. This can provide a baseline for setting realistic targets.
Exit Interviews and Feedback: Consider feedback from exit interviews to understand the reasons for employee turnover. This can help in identifying areas for improvement.
Cost of Turnover: Calculate the cost associated with turnover, including recruitment, onboarding, and lost productivity. This can help in determining an acceptable attrition rate from a cost perspective.
Employee Engagement and Satisfaction: Monitor employee engagement and satisfaction surveys to gauge overall morale and identify potential issues that may lead to attrition.
In many cases, it's not realistic to aim for a zero attrition rate, as some turnover is natural and can even be healthy for an organization's growth. However, aiming to keep attrition below the industry average and implementing strategies to retain top talent is generally a good goal.
Ultimately, the specific attrition rate KPI should be tailored to the unique circumstances and goals of the company. It's important to strike a balance between retaining valuable employees and recognizing that some level of attrition is inevitable.
From India, Bangalore
What is Average Attrition rate need to set being a HR in KPI specially in MSME Industry.
Setting a target for attrition rate as a Key Performance Indicator (KPI) can vary depending on the industry, company size, and specific circumstances. In the case of the MSME (Micro, Small, and Medium Enterprises) industry, it's important to consider a few factors before setting an attrition rate KPI:
Industry Benchmark: Research industry-specific attrition rates to understand what is considered average. Different industries may have different turnover rates due to factors like job stability, competition, and the nature of work.
Company Size and Maturity: Smaller companies and startups might experience higher turnover rates as compared to larger, more established organizations. It's crucial to take the size and maturity of the company into account.
Nature of Work: Some industries, like IT or consulting, may have higher natural attrition rates due to factors such as project-based work or high demand for specialized skills.
Geographical Location: Attrition rates can vary by region or country due to factors like local job market conditions, cost of living, and availability of opportunities.
Employee Demographics: The age group and background of employees can influence attrition rates. For instance, younger employees might be more likely to change jobs for career advancement.
Retention Strategies: If the company has implemented specific retention strategies or programs, these should be considered when setting attrition rate KPIs.
Historical Data: Analyze the company's historical attrition rates to identify trends and patterns. This can provide a baseline for setting realistic targets.
Exit Interviews and Feedback: Consider feedback from exit interviews to understand the reasons for employee turnover. This can help in identifying areas for improvement.
Cost of Turnover: Calculate the cost associated with turnover, including recruitment, onboarding, and lost productivity. This can help in determining an acceptable attrition rate from a cost perspective.
Employee Engagement and Satisfaction: Monitor employee engagement and satisfaction surveys to gauge overall morale and identify potential issues that may lead to attrition.
In many cases, it's not realistic to aim for a zero attrition rate, as some turnover is natural and can even be healthy for an organization's growth. However, aiming to keep attrition below the industry average and implementing strategies to retain top talent is generally a good goal.
Ultimately, the specific attrition rate KPI should be tailored to the unique circumstances and goals of the company. It's important to strike a balance between retaining valuable employees and recognizing that some level of attrition is inevitable.
From India, Bangalore
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