Natural attrition is when employees leave a company on their own, causing the number of employees to drop on their own. Natural attrition can happen when people retire, move, or leave the company to look for other opportunities at a different company or in a different industry.
Natural attrition, which is sometimes called “voluntary turnover,” is unavoidable and can’t be stopped in any industry or business. In the U.S., companies lose an average of 23% of their staff every year due to natural attrition. This percentage varies by industry and company size, as well as by the state of the economy, the job market, and the cost of living in an area.
There are both good and bad effects of natural attrition on a company. When a company has fewer employees, its salary costs go down, which is good for its bottom line. But when someone with a lot of responsibility leaves, the other workers have to take on the tasks that person was responsible for. This can make workers angry and stressed, which is bad for their morale. The best way to stop these bad things from happening is to keep key employees. Giving workers chances to move up, getting feedback, and giving them new, interesting tasks helps them feel loyal to their employer. Keeping employees motivated to do their best will make it easier to reorganise and give out tasks when someone leaves.