The real cost of attrition in shared service centers is often overlooked and thought of as a simple measurement versus a market benchmark. It remains a figure that drives action only regarding the attractiveness of the work environment, salaries, and other benefits paid to employees. However, what is the real cost of attrition, is it healthy to have a high or low attrition rate, does attrition matters at all for a new work environment? All of those question and more is what we are discussing in this episode.
The attrition rate is important for several reasons, though it may tell you different things at specific points in time. Understanding the company’s employees' attrition rate is an important part of comprehending employment dynamics in the market and employees' satisfaction levels as a first glimpse into the work environment's quality.
There are costs associated with every leaving employee. We divided them into 3 categories: