Cutoff Date Vs. Attrition

by Frances Burks
Illness affects employee attrition.

Illness affects employee attrition.

Hemera Technologies/ Images

Attrition and cutoff dates often don't have the same impact on businesses. One difference between attrition and cutoff dates lies in an owner's ability to control the associated circumstances. Attrition usually results in the loss of employees or other resources due to circumstances beyond a company's control. Owners have more control in situations involving cutoff dates because they know they must act by a specific date to avoid losing access to a resource they need.

Business Operations

Attrition and cutoff dates affect business operations in different ways. Attrition can hamper operations due to obsolescence. For example, machines that aren't repairable because replacement parts are no longer available is an example of attrition associated with obsolescence. Cutoff dates affect operations when owners need to observe deadlines to avoid product shortfalls and other operational problems. Manufacturers, for example, sometimes need to order new machinery by a specified deadline to ensure that they have it on time to avoid an interruption in production.


Employee attrition refers to the reduction in the number of available workers due to retirements, resignations and illnesses. Cutoff dates affect a company's workforce when workers are under contracts that specify the duration of their employment. In either case, the costs associated with losing employees may go beyond the expense of training new hires. Work that's delayed due to understaffing may result in lost sales. Even your longtime customers may take their business elsewhere if they're annoyed by such delays.


Customer attrition can result from competition or economic fluctuations. Businesses can lose customers to competitors who provide better service or lower prices. Customers also are lost during economic downturns when consumers tighten their budgets and spend less on unnecessary purchases. Cutoff dates affect customer traffic when shoppers crowd stores seeking discounts that are available for a limited time. However, discounts may not build customer traffic in a bad economy with high unemployment rates.


The impact of attrition and cutoff dates partly depends upon how a company responds to them or uses them. Some businesses use attrition to control payroll costs by not filling positions after employees leave. Furthermore, the perks associated with vacant positions may be downgraded so that the company can hire employees at a lower salary with fewer benefits. Employment contracts with cutoff dates allow employers to assess employees’ work before committing to hiring them on a long-term basis.

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