Employee leaving the job is nothing but Employee Attrition, here we are listing out Top 10 reasons why good employees leave at their middle age, but to understand the reason, to analyze and to improve the attrition rate, we also need to know what is attrition rate and how to calculate attrition rate. This should help in addressing employee attrition issues and employee retention challenges.
What is attrition rate? and how to calculate attrition rate?
Employee Attrition rate refers to employee turnover, it is a calculation of the number of individuals those move out of a collective group within a limited time frame. It is commonly referred to as churn rate. A term often used by human resources professionals to determine a company’s ability to retain employees.
Employee Attrition rate calculation for any given month depends on the total number of employees at the beginning of the month, number of new employees added in that month and the number of employees who left.
Attrition rate formula – Employee Attrition Rate = Number of Attrition/Average Number of Employees *100.
Average Number of Employees = (Employees at the beginning of the month + employees at the end of the month)/2.
For example, if the company had 250 employees in the begin of the month, and during the month their were 25 resignations and 10 new hire, so at the end of the month there are 235 employees. the average employees are (250+235)/2 = 242
Employee Attrition Rate: (25/242)*100 = 10.3 percent.
Reasons for Employee Attrition – Middle age (36-50)
- Difficult work environment
Conflict of ideas with higher management is a common issue faced by middle aged people. Ego clashes with the new management and unrealistic targets imposed create agitation among middle management team.
- Limited growth at company
When the growth in the company becomes stagnant or moving to higher posts looks a difficult target to achieve employees tend to move to another company which offers them higher designation.
- Maintain work-life balance
Personal commitments and constraints are highest for people of this age group. So late night calls and slogging at office becomes a great constraint at this stage. Policies like work from home or flexible hours in office will be a great help for employees.
- Compensation and welfare policies
As the family expands the financial demands increase for people at this age group. The responsibilities increase and hence better compensation and welfare schemes becomes highlight for employees at this stage.
- Company Image
Job security and company image is a major concern for people of this stage. People want to be settled by this age and hence the status and security of the job is a major constraint for employees.
- Personal issues
Taking care of kids or elderly parents is the major issue faced by ladies of this age group. So many women employees tend to take a break during this period.
- Company downsized
The downsizing of company affects this band the most. Employees at this stage feel their jobs are at high risk and start looking out for new opportunities.
- Company cutbacks
Cost cutting and poor performance of the company directly affects this band. Cutting of salary or other benefits during such tenure leads to attrition.
- Outsourcing of job
This is the era of high competition. Many companies outsource the job when they get the work done at lower rates. This creates lack of opportunities for people at this band and they feel insecure about their job. Due to this they start looking outside.
- New Challenge
After being in the same company for a long period people want to try out something different and seek for more challenges. A change in company and responsibility is what they try during this time to keep themselves motivated.
The Company HR can also go through good reasons for leaving a job from employee perspective and reasons why good employees leave at Younger age and reasons why employees quit at older age. This should help to take necessary action to address employee attrition issues and employee retention challenges.