Employee Attrition: Causes, Impacts, and Retention Strategies

This study focuses on the analysis of employee attrition in organizations. It addresses the causes, impacts, and retention strategies for employee attrition. The study highlights the importance of recognizing and rewarding employees, providing growth opportunities, maintaining work-life balance, and creating a positive work environment. It also emphasizes the need for organizations to prioritize employee satisfaction and implement effective retention strategies.

Running head: ATTRITION OF EMPLOYEES
ATTRITION OF EMPLOYEES
Name of the Student
Name of the University
Author note

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Table of Contents
Introduction......................................................................................................................................3
Background......................................................................................................................................3
Problem Statement...........................................................................................................................4
Scope................................................................................................................................................5
Goal..................................................................................................................................................5
Relevance and Significance.............................................................................................................6
Literature Review............................................................................................................................6
Approach........................................................................................................................................10
Issue identification.........................................................................................................................11
Impact............................................................................................................................................11
Existence of problem.....................................................................................................................12
Resolution......................................................................................................................................13
Conclusion.....................................................................................................................................14

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Introduction
The study focuses on the essential analysis of the subject of organizational risk
management. The various prevalent issues that tend to affect the businesses of organizations are
addressed through the work. The specific problem area that has been focused in the study is the
issues of employee attrition. In the recent years various organizations have been critically
affected by employees leaving their jobs. This has significantly contributed towards lower
productivity and revenue across the various organizations that have been affected. Hence, there
is a significant need to identify the literatures considering the risk of attrition. Many gaps in the
literatures have also been identified that need to be essentially considered for future researches.
The evaluation of the issues is much important.
Background
Risk management has been one of the major issues that is present in today’s society. This
section leads to the aspect that the projects that are undertaken by the business organization does
not get affected due to the risk that might affect the functioning of the organization. In this study
the projection of the employee attrition is considered as one of the main points of mitigating the
risks that are present in the maintaining the quality of the products. Among the several issues that
are present in the employee attrition section includes experiencing of the labor turnover. It is
noted that the demands of the experienced employees have been high and the demands are often
surpassing the ability of the business organization. The experienced employees are well aware of
the ramification. The employees are also aware of the turnover that they provide to the business
organization that they are working for as per the production provided by them. These are the
most viable risk present in management of the issue. An employee is recruited keeping in mind

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that the employee will keep on performing at the same level or with continuous improvement for
a prolonged period. In case the employee leaves the business organization before completion of
the expected time the company will be at loss. Hence the need of identifying the issues that are
leading to these consequences are important. The health of the employees plays an important role
in the retaining of the employees. In case the business organization does not support the
employees during their physical problems the main issue that will be arising include leaving the
business organization. This poor health will lead to decrease in efficiency of the functioning of
the employees. In case of not supporting the employees, the employees might not continue to
serve the organization and switch to other organizations. Employee turnover has been the major
issue that has been affecting the functioning of the business organizations. From the recent
scenario it can be stated that with the increase in growth in industries the retention and attrition
of the employees have been getting more difficult. This makes the experienced employees more
dedicated to their careers and professional growth rather than being committed to their
companies. The basic reason that the experienced employees are leaving their jobs are due to the
aspect that they are unhappy with the stagnation in their job role. Development and growth in the
job profile is absent. This stagnation in growth of individual careers have been a major issue.
These are the reasons that the companies are facing issues regarding the attrition of the
employees of the organization.
Problem Statement
Vision: The business organizations wants to retain their experienced employees, with the
help of the required amnesties and benefits that are demanded by the employees of the
organization, keeping the employees’ content regarding their job prospect

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Issue Statement: In today’s society with a lot of new industries growing the entire
prospect of development of the business organization is completely dependent on the employees
of the organization. The edge in competition can be achieved only incase the management of the
experienced employees’ function in an efficient manner. In case of experienced employees
switching their jobs in a regular manner the main issue that will be faced includes the aspect
proper training has to be provided to the new employees which will lead to wastage of time and
revenue of the organization.
Method: The sole way to retain the employees in the business organization is to meet the
expectation of the employees and provide them a constant growth both financially and in job
profile.
Scope
Scope of the project is to identify the risks that are present in the prosecution of the tasks
that are undertaken by the business organization. The penultimate scope of the report is to
identify the steps that are to be taken in order retain the experienced employees of the business
organization as this will reduce the efficiency of the business organization. The ultimate goal of
the report is to identify the issues that are present in the business organization which leads to
issues for which the employees of the organization wants to switch their companies and to
identify the retention techniques of the employees.
Goal
Goal of the report is to establish the methodologies that will be acting helpful in dealing
with the risks that are present in the daily functioning of the business organization. The main
issue that is being focused on in this report is the attrition of the employees. The penultimate goal

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of this report is to retain the employees of the organization who are experienced and has been
highly efficient in the functioning. The measuring of the goal functioning can be done with the
help of the measurement of the employees who have been working in the organization for the
long time. By increasing the tenure of each employee serving the organization will act helpful in
estimating the success of the ultimate goal.
Relevance and Significance
Relevance of the topic of attrition of employees is very high. The main prospect of
management of the business management is performed as per the prosecution of the business
management. Employee retention acts as a tool that helps the management team to have a hold of
the employees and retain them. This tool helps in increasing the efficiency off the organization.
This is one of the main reason that completion of the project that will be undertaken by the
organization will get performed in a better manner.
Promised outcome: In case of retention of the employees is done in a proper manner the
main advantage that will be enjoyed includes better prosecution of the project as per the
performance of the project. This proper performance will lead to the fact that the outcome of the
project will be very good. This is the sole reason that the retention of the employees are provided
such high importance. The problem that is stated regarding the retention of employees are
needed to be solved. In case proper solution is not provided to the issues regarding the solution
of the project related to the retention of the employee, the work environment is supposed to lose
its proficiency.
Literature Review
Tanwar & Prasad. (2016), stated that the Reward and recognition is one of the most
important aspect that affects the functioning of the employees. In case the employees are

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properly rewarded as per their job role the motivating of the employees increases and hence the
efficiency in the functioning of the employees increases to a great extent. With proper
recognition in the organization the main aspect that will be taken into consideration includes the
fact that the processing of the employees gets better in regular basis. In case an employee
performs better than the set target and overshoots the target and the employee is neither rewarded
and nor recognized for the good work that he has been doing the employee loses the motivation
to work harder and perform in the similar manner. In that case the output of the employee will
decrease. This will again directly affect the turn-over of the business organization in a negative
manner. Another issue that the organization will face is that the employee who has been working
well but is not recognized will opt for other options and will try and switch companies. This
switching of company will affect the present company in drastic manner as the company will
lose an experienced candidate. This is one of the major reason that retention and attrition
techniques are to be followed for better prosecution of the project.
Again according to Agarwal & Islam (2015), promotion and growth in the organization is
very important in retaining of the employees. In case an employee has been serving the business
organization for several years in a good note, it is viable that the post in which he or she is
working n gets better with time. Gaining promotion is one of the major goal of the employees to
perform in a better manner. In case promotion is not provided to the employees and the same
work is to be performed by the employees, stagnation occurs. This acts as a main issue of not
being able to retain the employees of the organization. With stagnation of the employee growth,
retention of the employees will get more difficult. This might lead to switching of organization.
In case the switching of the organization, the organization will lose an experienced employee and

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this will affect the functioning in negative manner. Flexibility and lucrative career provisioning
is the main aspect that is taken into consideration for the management of the entire system.
According to Umamaheswari & Krishnan (2016), involvement in managerial section of
the organization is also very important. In case the managerial section of the business
organization is robust and does not allow the experienced employees to take decisions, sense of
identity crisis might arise. This will again lead to the fact that the management of the employee
retention will get difficult. This is one of the major reason that the prosecution of the entire
retention process might get affected in case the employees feel that they are unwanted. This will
again effect the functioning of the entire system in a drastic manner as the experienced
employees might look for other organization that will value their experience and their job role.
This is the main aspect that the management of the entire system must be performed with high
integrity and prosecution of valuable terminology. Providing opportunity for growing as an
individual is also very important. This will led to the fact that the employees who are already
experienced will try to gain experience and this might lead them to switch companies. In case the
management of the employees is to be performed in a proper manner, providing them the
necessary growth in their career is very important. IN case stagnation is present in the
prosecution of the career growth it is very obvious that the employees will search for options that
will provide them better growth in their career. Hence providing constant growth in career will
help in retaining the experienced employees of the business organization.
According to Koedel & Xiang, (2017), Work life balance is one of the most important
aspect that is needed to be considered in order to retain the employees of the organization. In
case the employees of the organization is not provided with a proper work life balance, it gets
very hectic for the employees to continue performing in the same efficient manner. Most of the

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organization fails to provide the employees this balance as the work load that is imposed on the
employees of the organization has been very high. In case a company fails to provide proper
work life performance to the employees, the employees will try and switch to another company
and this will affect the functioning of the organization. This switching of the organization will be
beneficial for the employee but the organization that is being abandoned by the employee will
get suffered as the company will lose an experienced client in this process which might affect the
turnover of the organization.
According to Aruna & Anitha (2015), work environment in the job place is very
important. In case the work environment of the business organization is not proper retention of
employees will get difficult. The employees who will be working in the work place must feel the
security of the job he or she is performing is very high and must have cordial relation with the co
employees of the organization. This acts as an important aspect of prosecuting the management
of the system. This process of retention of the employee is highly dependent on the bond that he
or she shares with the team mates and the team leaders of the organization. In case an employee
has good friends in the office then it is noted that he or she tends to stay in the organization. But
in case the employees do not have much friends in the office the main aspect that will be taken
into consideration is that even if the job profile and salary provided to the employee is good, the
retention of the employee will get difficult.
According to Khandelwal & Shekhawat (2018), job satisfaction of the employees are
very important. In case proper job profile is to be provided to the employees, the main issue that
will be present includes improper provisioning of the job role to the employees. This improper
allocation of the job roe will lead to dissatisfaction among the employees. In case the employees
of the organization are provided with the tasks that they are aware of, the functioning of the

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entire project will get more proficient. This is the sole reason that the commencement of the
project will get more efficient and retention of the employees will get easier. It is noted that in
case the employees are provided with proper job role they accept a considerable lower salary
structure. In case the desirable job role is provide to the employees retention of the employees
will get easier.
Approach
The approach that is taken for completion of the report is secondary qualitative process.
Reading of journals that are peer reviewed in nature. After understanding the requirement of the
project, after understanding the requirement of the project, the journals that are to be reviewed
will be chosen. After choosing of the journals that are to be reviewed, proper analysis of the
journals are done. After analyzing of the data that are present in the peer reviewed journal, the
report will be performed.
The major activities that are to be performed in the commencement of the report are as
follows: -
 Planning: In this stage the planning will be done. This stage will be very crucial as in this
stage plotting of the plan is made with which the entire project will be performed
 Journal choosing: Choosing a peer reviewed journal is important as in case the journal
that is chosen is not peer reviewed authentication issues might arise. Hence after the
planning stage choosing of the article will be done
 Reviewing of the journal: After choosing of the journal, the reviewing of the journal will
be done in order to check the relevancy of the journal
 Analysis of the data: After reviewing of the journal, analysis of the data present in the
journal is needed to be done.

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 Performing the report writing: After proper analysis of the data, report writing is to be
performed.
Issue identification
The recent literatures concerning the subject of employee retention have mostly focused
on the aspects of remuneration, reward management, employee engagement and organizational
culture. However, there has been lower number of literatures concerning the subject that have
addressed issues related to long working hours and overtime that affects the psychological and
physical aspects of the employees (Clemmer, 2017). Moreover, the exact effect of the factors
other than the organizational issues that affect the employees’ choice for leaving an organization
have not been addressed properly. Thus, there is a significant gap in the literatures that exists as a
result. It can be assumed that the organizational nature of the problem of attrition often leads to
the authors to provide clear organizational perspectives in writing about the problem. The
organization and the role of the employees in the organization are thus provided much greater
importance than the wide number of other psychological issues that can affect the employees.
Rising number of employee resignations are greatly affecting the various organizations. This is
not only being caused by better opportunity provided by the competitors or any other widely
known but also due to the failure of companies to understand the specific job requirements of the
employees (Frye et al., 2018). This often contributes to the growth of the problem due to the lack
of significant literatures.
Impact
As mentioned above the issue in relation to longer working hours for employees and
overtime pressure have not been widely researched in the field of employee retentions. The

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employee’s need to have a significantly satisfactory work-life balance has been a principle cause
for many employees leaving their organizations. The problem becomes more important as
organizations have not been very effective in addressing the problems at a wider corporate level.
This means that that the issue has not only become prominent at an organizational levels in the
past years but also affected the corporate sector in general (Clemmer, 2017). Hence, employees
have kept on leaving the organizations for similar reasons and their general corporate lives and
careers have been affected greatly as a result. Ineffective and abusive supervisory have been
blamed for higher levels of work life conflict in many of the previous literatures. This has led to
the growth of low levels of satisfaction among the corporate workforce of today. At the
individual level this is affecting the productivity of employees other than the demotivating them
towards having long lasting relationships with the organizations (Loganathan & Ashwini, 2017)).
Low work life balance is not only affecting the mental satisfaction of the employees but at the
same time it is affecting the quality of production, organizational integrity and industry
performance at a greater level.
Existence of problem
The issue has been persistently affecting the organizations and the employees alike. The
main reason that can be identified from the previous researches is the lack of balance between
the aspects of organizational effectiveness and the amount of leisure that it can provide to the
employees. The most significant area that needs attention is the support that is required by the
employees to provide better performances (Stoeber & Damian, 2016). Organizations have failed
to provide effective levels of autonomy to the employees. This has contributed towards the lesser
individual growth of the employees with lesser amount of satisfaction to guide their
performance. A large number of employees have come under unfair and abusive supervision of

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their employers due to this reason. The main reason for this issue remaining continuous in the
organizational context is the lack of proper attention that have been paid to the same over the
years. A significant aspect in this context that can be identified is organizational pride (Mas-
Machuca, Berbegal-Mirabent & Alegre, 2016). Organizations at the operational levels are being
unable to imbibe the value of pride within the employee. Hence, employees are being unable to
be satisfied with their roles in the organization at the basic level. This is contributing to greater
unsatisfied employees in the organization that is eventually leading to more employee attrition
moving forward.
Resolution
The resolution to the issue is manifold and this need to be provided in an integrative
manner. As identified above supervisory support becomes much important towards determining
employee satisfaction in a given organization. Generally improving the care of the all employee
in the organization can enhance the productivity and create a stronger loyalty among the staff to
the organization. It is important that the supervisors provide essential care to the employees for
enhancing their motivational aspects. Supervisors are the closest persons to employees within
organization. Crucial elements affecting the work life balance for employees are being enhanced
through better supervisory functions (Kumar, 2016). It is important that at the greater
organizational levels the focus is towards implementing a balanced approach towards quality and
quantity of productivity of the organization. Employees need to be better guided and better
motivated. Organizations are focusing on improving the relationships they have with their
employees (Loganathan & Ashwini, 2017). Some organization do believe that a well-balanced
lifestyle of an employee can positively influence the performance of the employee and would
consider the lifestyle so importance as it reflects in the organization. Organizations currently are

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focusing towards more flexible work timings and overtime needs to be implemented through
strong consideration of the ethical values and it could foster the relationship among the employee
and clients. In essence, employee’s work life balance is being considered as crucial risks that can
affect the functional abilities of organizations.
Conclusion
In conclusion, it can be said that work life balance is critically affected by long working
hours and excessive overtime. In fact it is the greatest contributor towards lower levels of
motivation in the employees that in turn greatly increases employee attrition rates in the
organizations. The relevant literatures that have addressed these issues have been less. However,
it was also found that organizations are increasingly understanding this problem and contributing
more towards optimizing the work life balance of the employees. With the help of the proper
understanding of the task, the main aspect that will be taken into consideration includes better
understanding of the retention technique of the employees. For gaining better outcome of the
project the main advantage that will be present is better turn-over of the organization can be
expected. This retention of the employees will help in increasing the stature of the organization
and develop a better business system.

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