Understanding and Reducing Employee Attrition

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It is a big loss for companies if trained employees leave. So the companies have to try to keep the attrition rate minimum

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Understanding and Reducing Employee Attrition

  1. 1. Who is responsible for it? Attrition
  2. 2. Copyright 2013 | Saigun Technologies Pvt. Ltd. 2 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
  3. 3. Who is Responsible for Attrition? 3Copyright 2013 | Saigun Technologies Pvt. Ltd. Results of poll from www.citehr.com Poll Result:
  4. 4. 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? Copyright 2013 | Saigun Technologies Pvt. Ltd. 4 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
  5. 5. 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 5Copyright 2013 | Saigun Technologies Pvt. Ltd. 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.
  6. 6. 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. Copyright 2013 | Saigun Technologies Pvt. Ltd. 6 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
  7. 7. 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 7Copyright 2013 | Saigun Technologies Pvt. Ltd. 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
  8. 8. Thank You Copyright 2013 | Saigun Technologies Pvt. Ltd. www.empxtrack.com

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