Natural attrition refers to the natural reduction of a business's workforce due to employees leaving on their own accord. Examples of natural attrition include retirement, relocation or leaving the company to pursue other opportunities at another company or in another industry.Know More
Natural attrition, sometimes called voluntary turnover, is inevitable and uncontrollable across all industries and for all companies. On average, companies in the U.S. lose 23 percent of their workforce during a year due to natural attrition. This percentage varies by industry and company size, and is affected by an area's economic state, general job outlook and cost of living.
Natural attrition has positive and negative effects on a company. Reduced workforce naturally means lower salary costs, which is important to a company's bottom line. However, when a person with significant responsibilities leaves, it forces the remaining workers to add that person's tasks to their workloads. This can breed resentment and stress among workers and damage employee morale. The best way to curtail these negative effects is to try to retain key employees. Providing opportunities for advancement providing feedback and fresh, stimulating responsibilities help workers develop loyalty to their employer. Keeping employees motivated to perform at their peak will prevent problems with reorganization and delegation when an employee does leave.Learn More
According to the Organisation for Economic Co-operation and Development, the rate of natural increase represents the difference between the crude birth rate and crude death rate. This statistic excludes effects of migration.Full Answer >
The definition of a natural resource is something that is found in nature that is useful to humans. All natural resources are finite, meaning once they are used, they cannot be replaced. Many valuable natural resources, such as gold and oil, have been nearly depleted, while others are still abundant.Full Answer >
Attrition is the process where pieces of rock are transported through water and wear down the shore bed over time as a result of friction. Gravel or other small stones are often carried through a current and then come into contact with the sides and bottom of the water body.Full Answer >
An annualized attrition rate is the ratio of the total number of employees who exit from an organization due to death, retirements, resignations or any other reasons to the average number of employees who remain on the payroll for the whole year. The Human Resources department typically calculates this rate.Full Answer >