Date:26/09/2007 URL: http://www.thehindubusinessline.com/2007/09/26/stories/2007092652600400.htm

Back Optimum level of attrition good for a co’s health

Anjali Prayag

Bangalore, Sept. 25 Attrition is healthy. For an economy that’s hiring like there’s no tomorrow, this may sound unacceptable, but some HR managers do believe that a company does an optimum level of attrition to stay healthy.

While 60-70 per cent employee turnover ,which some sectors are experiencing, signals danger, there is a view that 24-30 per cent attrition per annum is healthy for an organisation. Says Mr Ashish Taneja, CEO, Vertex, a Gurgaon-based BPO, “About 3-4 per cent attrition per month is sustainable and if this includes involuntary exits too, I think it’s good for the organisation.”

Dr Pallab Bandhyopadhyay, Chief People Officer, Cambridge Solutions, says that about 15-20 per cent attrition is an optimum figure, but it’s not sheer numbers that matter. “We have to consider what kind of people we are losing. We may be losing some amount of actual knowledge during this attrition.” Ms Hema Ravichandar, who provides Strategic HR Advisory to organisations, does not consider attrition numbers important.