What is the Average Attrition rate needed to set in KPI, especially in MSME Industry?
From India, Jamnagar
From India, Jamnagar
Miscalculating taxes? That?s a direct path to government penalties! Explore & Request A Demo
Dear member,
As of now, what is the attrition rate in your company? Please calculate it and set a target to reduce it by 2-5%.
However, to whom will you assign this target? Who will be held accountable for employee attrition? What authority does this individual have to address attrition? Please consider these questions before establishing a target.
Thanks,
Dinesh Divekar
From India, Bangalore
8225As of now, what is the attrition rate in your company? Please calculate it and set a target to reduce it by 2-5%.
However, to whom will you assign this target? Who will be held accountable for employee attrition? What authority does this individual have to address attrition? Please consider these questions before establishing a target.
Thanks,
Dinesh Divekar
From India, Bangalore
Hi,
What is the average attrition rate needed to be set as an HR in KPI, especially in the 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 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 the average attrition rate needed to be set as an HR in KPI, especially in the 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 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
Engage with peers to discuss and resolve work and business challenges collaboratively - share and document your knowledge. Our AI-powered platform, features real-time fact-checking, peer reviews, and an extensive historical knowledge base. - Join & Be Part Of Our Community.
Average annual hours actually worked per worker.rar
ESI Rule 52-Amended-Aver age Wage Limit Increased For Certain Cases Under Exemption From Payment .pdf