Do we fully understand the complexities of employee retention and attrition in our workplaces?
Especially when it comes to Black, Indigenous, and People of Color (BIPOC) employees and other Underrepresented Minority (URM) employees, these concepts are not just HR buzzwords but critical factors shaping the dynamics of modern organizations. Together, let’s bridge this understanding gap, dissecting the nuances of retention and attrition rates, and their profound impact on our diverse workforce.
Employee retention and attrition are two important concepts that every company should understand. Retention refers to the percentage of employees who stay with a company over a period of time, while attrition refers to the percentage of employees who leave a company over a period of time.
High attrition rates can be costly for companies, as they can lead to workplace burnout, lost productivity, increased recruiting costs, and a decline in morale. In addition, high attrition rates can have a negative impact on a company’s reputation and its ability to attract and retain top talent.
The BIPOC (Black, Indigenous, and People of Color) community is disproportionately affected by high attrition rates. According to Google’s recent employee turnover statistics, Black employees make up 3% of the workforce and have an attrition rate of 13% higher than the nation’s average.
What is Employee Retention?
Employee retention refers to an organization’s ability to keep its employees and prevent them from leaving. It is often measured by a retention rate, which calculates the percentage of employees a company retains over a certain period of time.
Employee retention is a key aspect of human resources and business management, as retaining skilled and productive employees contributes to a company’s stability, growth, and overall success. High employee retention rates are usually a sign of a positive work environment, competitive compensation, good work-life balance, and strong employee engagement.
High retention rates can save a company significant resources, as the costs of employee turnover – including recruitment, training, and lost productivity – can be substantial.
What is an Attrition rate?
An attrition rate is a measure of the number of individuals or items that vacate or move out of a larger collective group over a specified period of time. In a business context, the attrition rate is often used to refer to staff turnover, or the rate at which employees leave a company for various reasons – retirement, new job, or dissatisfaction.
This rate can be calculated by dividing the number of employees who left the company during a certain period of time by the average number of employees during that same period, and then multiplying the result by 100 to get a percentage.
High attrition rates can be concerning for companies as they can signify issues like low employee morale, lack of career development opportunities, poor work-life balance, or other problems within the organization. It’s also important to consider as replacing employees can be costly and time-consuming.
The BIPOC Perspective: An In-depth Look at Retention and Attrition Rates
The focus of our discussion narrows to BIPOC employees. Their experiences with retention and attrition rates often differ significantly from those of their non-BIPOC colleagues. The numbers tell a story of higher attrition and lower retention, painting a picture of workplaces that could be doing more to support their BIPOC staff.
There is a strong connection between diversity, retention, and attrition. Companies with more diverse workforces tend to have lower attrition rates. This is because diverse workforces are more likely to be inclusive, which can lead to BIPOC employees feeling more valued and respected.
In addition, diverse workforces can bring new ideas and perspectives to the table, which can lead to innovation and productivity. This can make companies more attractive to top talent, which can help to reduce attrition rates.
High attrition rates have a significant impact on BIPOC employees. These employees are more likely to be underpaid, underrepresented, and passed over for promotions. They are also more likely to experience discrimination and microaggressions.
As a result, BIPOC employees are more likely to leave their jobs than white employees. This can have a number of negative consequences, including:
Lost productivity: When BIPOC employees leave their jobs, it can lead to lost productivity for the company. This is because these employees often have valuable skills and experience.
Increased recruiting costs: When BIPOC employees leave their jobs, it can lead to increased recruiting costs for the company. This is because it can be more difficult to find and hire qualified BIPOC candidates.
Declining morale: When BIPOC employees leave their jobs, it can lead to declining morale for the company. This is because it can make other BIPOC employees feel like they are not valued or respected.
Causes of High Attrition and Low Retention Among BIPOC Employees