Attrition Rate Related to Employee Loyalty and Retention
Technical Bulletin Last updated 03/01/1999When the rate of attrition impacts negatively on an organization's budget and on the experience base of the personnel, measures should be taken to solve the problem. The purpose of this research was to discover why personnel leave a career or organization early, which departments are so impacted and how executive leaders influenced employee loyalty and retention. An evaluative research method was used to answer the following questions: 1. What departments have an attrition or employee retention problem? 2. What are the causes of personnel leaving in early or mid career with a department? 3. What actions/programs result in employee loyalty? 4. What impact does the executive officer have on attrition and employee retention? Two surveys were distributed, one nationwide to various departments, the other to members of the El Paso Fire Department, Texas.These sought to ascertain how attrition affected departments and what measures were used by these departments and how the local firefighters evaluated the same questions within their department. An extensive literature review revealed what others think of employee loyalty and retention. Many departments did not see attrition as a problem. Others admitted to having to deal with the negative effects of early career departures of employees. The cost of replacing these was revealed as high. The experience base was established as having paramount importance. The research revealed that internal communication was not as effective as some believed. Recommendations included reviewing attrition rates and the possible causes which are normally under almost total control or the executive leader. Hiring processes had to be scrutinized and revamped.Employee job satisfaction had to be determined and programs established to motivate loyalty. Communication links had to be updated and opened to all. The executive had to assure employees felt a part of the organization through regular recognition of outstanding performances through a variety of programs.
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