It is one thing to hire people for your business when you are starting out. At this point, you have no option but to hire to fill the vacant positions. However, you should be very careful when you hire people after your business has started operations. Many persons presume that they will always need the same number of employees that they hired when they started the business.
You might have started your business with five employees and may be keen on filling the same 5 spots again and again when people quit. What about the possibility that the high attrition rate is caused by your demand that 5 persons perform the work of ten?
If your business has expanded, you need to create new positions to reduce workload of individual employees. Rather than filling the same five posts again and again, you should find ways to rationalize the process. In the same way, there is no sense in retaining the same number of positions and employing a large number of people when scale of operations of business comes down.
The complications do not end here. There may be some problems in your business and its productivity that may get solved by hiring new people. However, there may be other issues that may not get solved by simply replacing the employee. When you have not bathed for ten days, simply changing your clothes is not going to make you smell good, right?
You will have to consider all these issues and problems before going ahead with the process of hiring new employee. Do not treat this as a mechanical task that involves paying money for getting new employees in exchange of old.