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An Introduction
HR Heads are worried about employees leaving their organizations.
Not only is it COSTLY to lose trained employees
but their REPLACEMENTS are NOT EASY TO COME BY.
Hence, Human Resources strives hard to keep attrition at the minimum.
Extensive interviews with HR directors at 30 companies found
that most companies have little real understanding
of why employees leave…
Greg Weiss
(An HR consultant and principal of Human Management)
Source: Article from ww.zdnet.com.au
Who is Responsible for Attrition?
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Results of poll from www.citehr.com
Poll Result:
o Personal reasons
o Family issues
o Location preference
o Company brand
o Peer relationships
Only 8% HR professionals felt that employees
leave organizations on their own,
but why do they leave?
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01. Employees as a Reason for Attrition
Conduct employee satisfaction surveys
regularly, they’ll help:
Identify critical gaps in employee
perception
Identify important trends
Help define future HR guidelines
What to do?
Use an Employee
Satisfaction Survey Tool
o Meeting employees’ expectation is a
difficult task, most managers cannot do
it effectively and consistently
o Satisfying employee needs is often
given a lower priority
o Managers lack appropriate tools to
manage employee tasks
02. Supervisor or Line Manager as a Reason for Attrition
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Immediate managers cause 38.15% of Attrition
It confirms my theory that employees don’t leave their job or
company… They leave their manager.
Wayne Hochwarter
(Associate Professor of Management in the College of Business at Florida State University)
HR should continuously train managers
in handling employee expectations
HR should provide them with the
necessary tools
An online Manager Services solution to
allow managers to constantly counsel
employees
What to do?Why?
HR should also be able to track changes in employee performance rating, gaps between
employee and manager performance, sudden increase in paid-time-off and should be
prepared to act quickly if any visible trends are evident.
All companies want to become the ‘best paying employer’, but market forces,
tough competition and a slow economy dictate otherwise
Balancing P&L and employee compensation shall always be a nightmare for
them given the high cost of talented employees.
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03. Compensation or Job Profile as a Reason for Attrition:
The Problems
54.82%
say that ‘Compensation and Job Profile’ are the primary causes of attrition
Disparity in the compensation packages is bound to occur and a mis-matched
job profile increases
Likelihood of a
satisfied and
motivated
workforce increases
Fair and
transparent system
to capture
employee
performance
03. Compensation or Job Profile as a Reason for Attrition:
The Solutions
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Convince employees that they are compensated in direct proportion to their
productivity
Each individual should be assigned SMART (Specific, Measurable, Achievable,
Reviewable and Time Based) goals and you could cascade these from
organization objectives
Employees work on
goals that are
aligned to the
company objectives
Adopt a fair and transparent compensation policy where each employee gets
his/ her dues based on company, team & individual performance
Compensation
and Job Profile
become
manageable
reasons