When we regret something, the first question that pops up in our mind is – what went wrong? The Regret Attrition metrics is exactly about that. It is used to analyse what went wrong. However, employers get uneasy when asked to admit that things didn’t go right.
Wondering why we are stressing on this HR analytics parameter this much? Let us find it all in the blog.
What is Regretted Attrition Rate?
Put simply, a regretted attrition refers to the employees that the organization truly regrets upon losing.
Actually, it refers to the voluntary attrition by highly talented and key contributors impacting the business of the company. This excludes the employees who are asked to leave the organization due to poor performance, or some other reason.
Why is Regretted Attrition important?
Companies are following a trend where they summarize the regret attrition of the entire company altogether, which is not a good idea. It will not benefit anyone, as it will not have any micro-level details. Instead, there should be a detailed study to see how this attrition is affecting the company.
It is very important that the organization keeps a track of losing the valuable resources or high potential employees. Quite often the senior management senses when a key employee is about to quit the organization. But fails to do anything to retain that employee.
Who wants to lose the best resources of their company? No employer or HR. By calculating this metric you get a better insight as to what is making them all switch to another organisation, thereby enabling you to be in a better position to retain them.
How to calculate regretted attrition rate?
Put the relevant figures in this formula to get the regretted attrition rate-
Attrition Rate = Number of Attritions/Average Number of Employees *100.
Is there a specific number that the regretted attrition rate should not exceed?
Ideally, if the rate is 15% or more, it should be considered as alarming enough by the organisation.
What you should and should not do?
It is pivotal to handle the key resources and classify them as ‘Regret Attrition’ at the time of exit. Let us see how.
- Always try to make Regretted exits a part of analytics dashboard.
- There should be a way where managers are able to mark ‘really regretted’ for the employees for whom they actually felt it. There should be an option for them to provide a remark of why they have been marked as “really regretted”.
- Do not judge the reasons. Just note them for future purpose.
- When you have got a good sum of ‘really regretted’ exits (try to come up with some number that you will consider), explore the reasons, and then generate a list containing top reasons classified as ‘really regretted’.
- Once this exercise is done thoroughly, you will get a list containing major reasons. This list will help managers to select any one of the reasons in the future.
- This exercise will help you in the long run. After sometime, you will have a tangible list of the ‘really regretted’ reasons. The list will help you in getting data-points where you need to take actions.
Isn’t it such an easy yet so impactful technique? In the longer run, this will help you design some retention techniques that will actually work. Go on, spot the unwanted employee turnover. Calculate the rate, work on making the strategies and save that important resource if not till the last, then at least for the longest.