In layman’s terms, attrition is a slow decrease or lessening of anything.
There are particularly two types of attrition for businesses – employee attrition and customer attrition. Both of them are vital for employers, irrespective of the type and size of their business.
Employee attrition portrays the decrease of working individuals in an organization. Attrition of employees can happen for a host of reasons. Some of the common causes are retiring professionals, employees preferring job change, or quitting because of misery in the organization.
Customer attrition, on the other hand, is the decrease of consumers/buyers. It usually happens when a business product/service fails to adapt to the transforming market or when consumers lose interest in the product/service.
To compute the attrition, all you need to do is know the total number of employees or clients who left. Now, divide the number by the standard number of clients or employees.
Also, See: Johari Window
Solving Real Business Challenges with a Robust & Impeccable System