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Attrition has to do with the process of experiencing reduction due to circumstances that are considered standard and normal. There are a number of different types of attrition that occur in any business model, with employee attrition occurring due to both retirement and either staff cutbacks or voluntary resignation being one of the more common. Customer attrition can also occur, usually due to factors such as competition and the changing demographics around a retail location. In any scenario, the process of attrition control will seek to manage the reductions in a way that ensures minimum impact on the business.
One of the most important aspects of attrition control is understanding why reductions are currently happening. With employee turnover, this normally focuses on doing a thorough evaluation of the working environment and the benefits provided to employees. The quality of that environment, as well as the wages, salaries, and other benefits, should be compared to what similar companies in the area have to offer. By taking steps to ensure the working environment is well organized, and that the benefits associated with each position are competitive, the attrition control can help to increase employee satisfaction and move the business from a high turnover in employees to one that is considerably lower.
Another factor that is crucial to attrition control is looking closely at the corporate culture that prevails in the workplace. Management styles that tend to leave employees feeling underappreciated and undervalued will often lead to higher turnover rates as qualified individuals seek work with other companies that seem to value them to a greater degree. Fostering a sense of teamwork among employees and encouraging management styles that actively encourage employees to provide input will often increase employee loyalty and reduce the chances that those employees will look for other jobs.
Attrition control in terms of managing the turnover in customers also uses some of these same basic strategies. Customers who feel they matter to the business are more likely to remain loyal from one year to the next, resisting the lure of the competition. This can be accomplished by acknowledging customers in a number of ways, such as the option to participate in loyalty or reward plans, periodically making it a point to thank a customer for their business, and even ensuring that customers are treated warmly and respectfully whenever they make direct contact with a representative of the company. Taking customer complaints and concerns seriously, owning those complaints, and working with the customer to find a resolution that everyone can live with is also a key component in customer attrition control. Clients who feel brushed off or not taken seriously are much more likely to quietly find someone else who makes them feel more appreciated and valued.
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