Attrition: A reduction in the number of employees through retirement, resignation or death.Attrition rate: The rate of shrinkage in size or numberWhy people are moving?When there are so many benefits associated with the company, when there are so many privileges for theemployees, then what makes them to change the company/industry?? Is it only MONEY that matters oranything else as well? Salary hike Promotion Less onsite opportunities Brand Job satisfaction Facilities Working EnvironmentWork Pressure Work culture and management-IT industry is known for its high pressure work atmosphere and long working hrs, which create high levels of stress, employee and high attritions rates. Transformation in lifestyles, identity and family Lack of good leaders who can motivate and guide their team well-IT managers lack both the time and tools needed for assessing their team members and taking corrective action to improve their performance which is directly related to job satisfaction.Increasing percentage of women employees-Most women leave their job either after marriage orbecause of long working hours, work stress and other social pressuresAttrition is higher because salary is dynamic… There is more demand and less supply so people are getting what they want. One sure way to prevent this is to provide excellent working condition and make the organization a people centric place. PDC-Product Development Companies(Most of the IT people in IT services would like to move PDC as the kind of work would be challenging & exciting) Some companies & their domain are exciting.
Quality of the work Some companies are offering its employees the high end quality work. Most employees don’t leave but quit because they did not like their job, they quit because they did not like their boss.Retention - A Big ChallengeFundamental changes are taking place in the work force and the workplace that promise to radically alterthe way companies relate to their employees. Hiring and retaining good employees have become the chiefconcerns of nearly every company in every industry. Companies that understand what their employeeswant and need in the workplace and make a strategic decision to proactively fulfill those needs willbecome the dominant players in their respective markets.The fierce competition for qualified workers results from a number of workplace trends, including: • A robust economy • Shift in how people view their careers • Changes in the unspoken "contract" between employer and employee • Corporate cocooning • A new generation of workers • Changes in social mores • Life balance •Concurrent with these trends, the emerging work force is developing very different attitudes about theirrole the workplace. Todays employees place a high priority on the following: • Family orientation • Quality of life issues • AutonomyTo hold onto our people, you have to work counter to prevailing trends causing the job churning. Smartemployers make it a strategic initiative to understand what their people want and need -- then give it tothem. FACTORS THAN MOST INFLUENCE THE ATTRITION RATE 1. Scheduling off-duty employees to workStruggling with seasonal demands and employee turnover, managers often make unreasonable requestsof employees to work hours in addition to their scheduled shifts.2. Limited training time.Limited allowances of time and resources for training can lead to poor service performance and toemployees having unrealistic expectations of day-to-day tasks and responsibilities.3. Non-competitive pay rate.Though not as influential as the first two factors, non-competitive pay rates are often responsible foremployees resigning.
4. Poor employee communication.A lack of employee recognition for a job well done, lack of clarity around work procedures, the absenceof mechanisms for employees to identify problems, and slow repair windows for job-critical equipmentare all factors that can influence an employee’s decision to resign. Management practices that differentiate performanceResist calling employees into work during scheduled time offThe following are a few best practices with respect to employee scheduling:a. Rather than randomly calling employees in for nonscheduled shifts, create a more formalstand-by relief list of employees who are willing to cover extra shifts when your team ends upshort-handedb. Use store history to plan for peak hours and high seasonc. Plan for vacation, time-off, holidays well in advanced. Take your employees’ preferences into account when schedulinge. Employees’ skill set, seniority and experience play an important role in selecting appropriatecoveragef. Always send your employees a copy of their schedules& have an established time/date whenschedules will be made availableg. Schedule days off for training in advanceh. Address chronic absenteeism proactively – this impacts everyone on the teami. If an employee chooses not to cover a shift, be sure not to penalize or lay guiltAnother tool to consider to enhance your employee scheduling system is to look at investing inautomated scheduling software. A quick search on the Internet will identify a number of freetrials that are available for some very affordable scheduling applicationsMaintain an employee training programAnother best retention practice is creating and managing an ongoing staff orientation, trainingand development program. Employee training and development should be looked upon as aninvestment, rather than a cost, with planning and budgeting requirements similar to thosededicated to capital improvements. An organization’s human capital is one of its key sources ofdifferentiation, and employees are more likely to remain satisfied if they receive an effectiveorientation and regular access to technical and non-technical training. Ongoing competency-based training and development increases employee productivity, reduces turnover, improves jobsatisfaction, aids in the recruiting process, rewards long-time employees, and reduces the needfor employee supervision1. Develop a prioritized list of training topics that address key skill needs within the companyand develop training lessons to teach those skills e.g. keys of good customer service, how tostock shelves and rotate products, effective sales techniques, or advanced lessons in marketing,business and human resources.2.. Determine training delivery mechanism e.g. on-thejob, computer-based, video, outsidetraining company, classroom group, etc.3.. Develop benchmarks for skill requirements to measure the success of your employee trainingand development program i.e. what changes in behavior/performance are the desired outcome ofthe training.4. Pilot your program to help refine it before its official launch.
5. Create personal employee development plans i.e. ideally, an annual training and developmentplan should be established for each employee, as part of their annual performance review.Offer competitive pay ratesWhile it certainly takes more than money alone to attract and retain skilled professionals, it’shelpful to offer competitive compensation packages. Employees who feel they’re underpaid willalso feel they’re undervalued and are more open to even small increases from otherorganizations.The following are five elements found in manycompensation packages.• Base pay i.e. the negotiated hourly or salaried wage• Performance-based pay i.e. formal bonus structures• Equity-based compensation i.e. stock offerings,RRSP contributions, etc• Benefits packages i.e. financial planning, sick time,health coverage, paid training, counselling resources, etc• Reward and recognition programs i.e. bonuses, extratime off, professional development opportunities, etcEngage with staffThe following are methods to engage employees:• Create an employee newsletter to communicate companynews and articulate what makes your organization uniquee.g. its values, goals & workplace culture• Celebrate events that are important to your employees,including birthdays, milestones, cultural holidays andservice excellence• Develop work/life balance programs e.g. flexiblework arrangements, fitness/counselling/childservices, team sports• Focus on development e.g. mentoring programs, peeradvisors, succession planning• Make rewards and recognition systems transparentCreate a way for candidates to “sample” internalpromotion opportunities• Train managers in performance coaching• Allow team members to interview and/or participate injob interviews• Delegate tasks or special projects to challengeemployees and enrich their jobs; encourage theirinitiative• Ask for regular employee input, then listen and respond• Provide readily accessible information on the company,its career paths and competency requirements• Help them connect in the workplace – introduceemployees to key suppliers, customers or someone insenior management
• Make work fun and exciting – create regular events toboost employee morale and their sense of teame.g. host a store BBQ, an employee pizza lunch or astaff baseball gameReward & recognize good performanceGiving employees recognition for a job well done and specific feedback about their performancehas a direct influence on employee confidence and job satisfaction. Here are a number of ways inwhich you can reward and motivate your employees without spending a dime:a. Provide flexible work schedulesb. Send a handwritten note to employees who deserverecognitionc. Praise publicly, and be specific about the action thatwas worthy of praise (reinforce desired behaviour)d. Reward effort as well as success – even if their ideasfail, you want them to keep producing theme. Give them a “free” day pass – give out a pass that enablesthe recognized employee to take a free day off workf. Often employees only hear from their manager whenthey do something wrong – focus on catching themdoing something right!g. Ask suppliers to participate in providing prizes, theninvolve all employees in selecting a peer who deservesthe rewardSteps to Reduce Attrition: 1) Focus on Exit-interviews Employers should not ask why are you leaving? rather they should ask when you start searching for a job? Getting an insight and inside scoop can really help. It gives information about internal problems, employee’s perceptions of the organization, underlying workplace issues and colleagues. 2) Let employees know that their opinions are valuable. Ask them to open up. Listen to employees ideas; never ridicule them. 3) Compliment and Thank your employees for their valuable contribution. Recognize and celebrate their success. 4) Setting up a feedback mechanism to maintain consistency in performance and high motivation levels. Offer performance feedback and praise good efforts and results. Criticize but Praise publicly.
5) Give them job security 6) Providing opportunities of learning by constantly upgrading the skills of employees 7) Paying attention to employees personal needs and participation 8) Gauging the needs of the employees through open communication and polls. 9) Communicate goals, roles and responsibilities so that people know what is expected from them and feel a part of crowd. 10)Keep employees informed about the happening in the company so that they will be confident about the future or not to look for better option. 11) Encourage humor & laughter in workplace to deal with stress which will ensure that the employees are happy which gets reflected in their services especially critical in voice based transaction. 12)Feeling valued by their managers or superior in the workplace is a key to high employee motivation and morale. 13)Not hiring employees who have a history of jumping from one job to other. Recognizing the contributions of achievers would also inspire others to try hard and put in their best. 14)Group cohesiveness also helps in copping with the attrition. Built teams and generate competition between them15)The attrition battle could be won by focusing on retention, making work a fun place, ongoing learningand treating applicants and employees in the same way as subordinate.16)Infusing creativity in the ‘routine’ job and communicate the firm’s larger objectives and goals to eachemployee to achieve that objective.17)It has been observed that attrition rate was lower when employees perceived their workplace as a‘fun environment’ and viewed their jobs as enjoyable18) Monotony and stress have contributed to increased attrition rate. So keep changing the duties orposition of employees after fixes period.19) Induction program and Exit interview are very important.20) Identify the key employees of the firm or categorize the employee according to need of the firm. Itwill help you to customize your retention program.
21)Your staff members must feel rewarded, recognizes and appreciated. Monetary rewards, bonusesand gifts make the thank you even more appreciated.Undersstanble raises tied to accomplishments andachievements help to retain staff. Offer an attractive, competitive, benefits package.22)Select the right people in the first place through behaviour-based testing and competency screening23) Demonstrate respect for employees at all times. Treat the employees well & provide a dignity of job.24)If a key employee resigns, it should be taken up on a priority basis and kept confidential as far aspossible and the senior management should meet the employee to discuss his reason for leaving andevaluate if his issues bear merit and whether they can be resolved.25)People want to enjoy their work. Make work fun.Engage,employ the special talents of each individual Retention tools for Changing times:Offer Compensation – Attractive And Competitive.Fair compensation alone does not guarantee employee loyalty, but offering below-market salariesmakes it much more likely that employees will look for greener pastures. Go for Employee EngagementSurveys / ESS, to find out what perks, benefits and forms of compensation other than money will helpkeep them motivated2. Benefits Need To Be Quantified And Qualitative.Although benefits are not a key reason why employees stick with a company, the benefits you offercant be markedly worse than those offered by your competitors and like minded industries. Eg Medicalinsurances, Corporate Credit cards and Discount Coupons3. Train your front-line, managers and administrators.It cant be said repeatedly that people stay or leave because of their bosses and not the companies.Improve managers leadership, communication and interpersonal skills through coaching, training andfeedback . Harp upon the competencies and substantially invest in human capital irrespective of ROI4. Roles and responsibilities needs to be dovetailed.Make sure your employees know what is expected of them every day, every month and every year,what types of decisions they are allowed to make on their own, and to whom they are supposed toreport. Provide clear vision, and consistent communication, teamwork and respect for human capitalefforts.5. Enhancement, Advancement And Progression Opportunities.To foster employee loyalty, implement a career ladder and make sure employees know what they mustdo to earn and go in for progression. A clear professional development plan gives employees an
incentive to stick around. Do away with you Performance Management System if it has turned to NOVA(Non Value Added Activity) and go in for instant performance rewards. Think out of the box!6. Offer retention bonus.Employee longevity typically is rewarded with an annual raise and mandatory vacation time after three,five or ten years. But why not offer other seniority-based rewards such as a paid membership in theemployees professional association after one year, a paid membership to a local etc.7. Retention strategies implementation needs to have a process owner.Measure your turnover rate and identify a process owner responsible for containing it. If customerreturns, in-house rejections and non-confirming products can have a process owner as acountermeasure why not a process owner for implementation of retention strategies?8. Go in for Employee Engagement Practices. You wont know whats wrong... or whats right … unless you practice. To check the pulse of yourorganization, conduct employee satisfaction surveys on a regular basis. Go in for its analysis andimplementation. One idea: Ask employees what they want more of and what they want less of –Capture Voice of Employees9. Teamwork And Cross Functional Teams.It takes effort to build an effective team, but the result is greater productivity, better use of resources,improved customer service and increased morale. Give great emphasis on cross functional approach asit endorses acceptance and accountability10. Fun Is Must.Celebrate successes and recognize when milestones are reached. Buffet lunches, birthday parties,employee picnics and creative contests will help remind people why an organization is a great place towork. Include fun elements at work like Parties, bashes, outings, picnics etc11.Transparency in communication. Employees are more loyal to a company when they believe management or those at the helm of affairskeep them informed about key issues. That means that you regularly keep our people up to date withimportant events affecting the company. If November was good, let them know, and while youre at it,tell them what you expect to happen in December.12. Encourage higher learning.Create opportunities for your key performers and technologists to grow and learn. Encourage everyemployee to learn at least one new thing every week, and youll create a work force that is excited,motivated and committed
13. Develop an effective induction program.Implement a formal orientation program thats at least a week long and includes a thorough overview ofevery area of your department and an introduction to other departmentsRecognize outstanding achievements promptly and publicly, but also take time to commend on themany small contributions your staff makes every day to the organizations vision, mission and growth.DO NOT FORGET — THESE ARE THE PEOPLE WHO MAKE YOU LOOK GOOD