Companies who believe in zero attrition rates only fool themselves. It
is difficult to accept when organizations say they have zero attrition
rates. Companies may have healthier turnover rates, however, there
is no such thing as zero attrition. There are other such facts about
turnover, about which most of us are not aware. Zero attrition is not
desirable mainly because of two reasons. Firstly, if all employees
continue to stay in the same organization, most of them will be at the
top of their pay scale which will result in excessive manpower costs.
Secondly, new employees bring new ideas, approaches, abilities &
attitudes which can keep the organization from becoming stagnant. In
this paper we are trying to study different causes of Attrition in the
organizations and its impact on the turnover costs of the employee in
particular to the Software Industry. We have uses some of the Employee
turnover cost models for calculating the costs associated to it.