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Presentation on Attrition and Engagement Management

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Presentation on Attrition and Engagement Management made by Aadesh Goyal at NASSCOM HR session

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Presentation on Attrition and Engagement Management

  1. 1. “ High Engagement and Low Attrition” The Ultimate Desire of a CEO/HR Head A Discussion Amongst Thinkers NASSCOM August 29, 2008 Aadesh Goyal
  2. 2. Attrition….the reasons that come up <ul><li>Relationship with Supervisor </li></ul><ul><li>Promised Role did not happen </li></ul><ul><li>Personal </li></ul><ul><li>Higher Studies </li></ul><ul><li>Been here some time </li></ul>
  3. 3. Employee Engagement <ul><li>Comprehensive Framework </li></ul>Engagement Areas
  4. 4. In General <ul><li>Employee Engagement is seen through a comprehensive framework </li></ul><ul><li>Attrition Studies are more superficial </li></ul><ul><ul><li>Sporadic Exit Interviews </li></ul></ul><ul><ul><li>Inconsistent Implementation </li></ul></ul><ul><ul><li>The framework is quite general </li></ul></ul><ul><ul><li>Low priority by HR managers </li></ul></ul><ul><ul><li>Most employees do not want to ‘rock the boat’ when leaving </li></ul></ul>
  5. 5. Thought #1 <ul><li>Use the Engagement Framework for Exit Interviews </li></ul><ul><ul><li>Early Leavers, Top Performers, Others </li></ul></ul><ul><ul><li>PeopleStrong experience shows that a combination of phone interview and web-based survey works very well </li></ul></ul><ul><li>Outsource Exit Interviews to drive execution </li></ul><ul><ul><li>Internal team focuses on strategic issues </li></ul></ul><ul><li>Attrition Surveys provide ‘real hard facts’ </li></ul><ul><ul><li>Balance against the engagement action plan  ‘tiredness’ and ‘cynicism’ creeps in as the whole thing looks too idealistic </li></ul></ul><ul><li>Set up formal Alumni networks to re-hire ex-employees! </li></ul>
  6. 6. What delivers consistent quality? <ul><li>Process! </li></ul>
  7. 7. HR Practices <ul><li>New Employee Induction </li></ul><ul><li>Compensation Management </li></ul><ul><li>Performance Management </li></ul><ul><li>Training </li></ul><ul><li>Employee Engagement </li></ul><ul><li>Attrition Management </li></ul>What is the predictability of the deployment of these processes and practices? How can we drive towards achievement of targets consistently?
  8. 8. Thought #2: Engagement ‘Policy’ <ul><li>Environment: Continue existing practice, extend globally </li></ul><ul><li>Learning: Enhanced offerings through ‘Leadership Development and Education’ </li></ul><ul><ul><li>Special Focus on Managers at all levels </li></ul></ul><ul><li>Career Planning: Better follow-up and tracking of Career Action Plan of Best Performers by HR </li></ul><ul><li>Relationships, Bonding, Recognition: Systematic Implementation of Skip Level Interaction…driven through HR team </li></ul><ul><ul><li>All managers to have informal ‘one-on-one’ with direct reports once a month </li></ul></ul><ul><ul><li>All Senior Managers and above meet their ‘skip level subordinates’ once in 2 months </li></ul></ul><ul><ul><li>Metrics on coverage reported each month </li></ul></ul>Getting Managers to become better leaders is key
  9. 9. ….and a fortnightly dashboard <ul><li>For each employee – make an assessment on key parameters that drive retention: </li></ul><ul><ul><li>Current Job/Assignment </li></ul></ul><ul><ul><li>Career Aspirations </li></ul></ul><ul><ul><li>Role Aspirations </li></ul></ul><ul><ul><li>Compensation </li></ul></ul><ul><ul><li>Other </li></ul></ul><ul><ul><li>Overall </li></ul></ul>
  10. 10. …..dashboard… <ul><li>First Line managers prepare for their teams </li></ul><ul><ul><li>HR Rep works with manager to help resolve ‘Red’ areas </li></ul></ul><ul><ul><li>Next level Manager reviews each fortnight and handles escalations </li></ul></ul><ul><li>Same thing for employees who are managers </li></ul><ul><ul><li>Senior level managers review and resolve the ‘red’ areas </li></ul></ul>
  11. 11. Thought #3 – Layered Process <ul><li>Deploy ‘rich’ Engagement Practice for ‘Top 20 to 25%’ </li></ul><ul><li>Shape-up or Ship-out for the Bottom Performers </li></ul><ul><li>Leaves 65 to 70% in the middle, most of whom are individual players </li></ul><ul><ul><li>Important but too large to deploy ‘rich’ Engagement Process </li></ul></ul>The ‘Important Middle’  …………………….Thought #4
  12. 12. Thought #4 - Fungibility <ul><li>Break down work, roles, skills, competencies </li></ul><ul><li>Redefine things such that some roles get created that require lower level of competency </li></ul>
  13. 13. Measuring Complexity (of Domain Expertise) 5 2 1 3 4 <ul><li>Measure ‘Competency’ </li></ul><ul><li>Start people with low competency at lowest competency level </li></ul><ul><li>Map them to appropriate tasks in a project </li></ul><ul><li>As people increase their ability, move them to more complex tasks that require higher competency </li></ul><ul><li>Thus making the best use of abilities </li></ul><ul><li>‘ Competency’ framework would help implement this </li></ul><ul><li>Wipro and TCS hiring B.Sc. – and not B.Tech. </li></ul><ul><li>Read ‘Complexity’ as ‘Competency’ </li></ul>
  14. 14. Internal Certifications <ul><li>When people join, given them a ‘roadmap’ </li></ul><ul><ul><li>Different ‘skills’ and ‘complexities’ </li></ul></ul><ul><ul><li>How can they change it – Training, Tutorials, OJT, Examinations, etc. </li></ul></ul><ul><ul><li>Show how their ‘grade’ and ‘assignments’ would change </li></ul></ul><ul><li>Needs significant internal ‘upgradation’ of practices </li></ul><ul><li>For example: IBM does this! </li></ul>
  15. 15. Summary <ul><li>Studying Attrition in detail gives hard facts that can reinforce the ‘idealism’ of Employee Engagement </li></ul><ul><li>Implement-able practices and process for Employee engagement </li></ul><ul><ul><li>Layered Approach </li></ul></ul><ul><ul><li>Fungibility </li></ul></ul>
  16. 16. Case Study: Software Industry
  17. 17. Different Types of Projects & Business Models <ul><li>Do all these require the same pyramid? </li></ul>Business Model Type of Project Application Development Sustenance Testing “ Complex” Development FIXED PRICE TIME & MATERIAL STAFF AUGMENTATION
  18. 18. Different Software Development Methodology An Example #2
  19. 19. Example: New Product Development Different Software Development Methodology <ul><li>New methodology requires 45% domain expertise compared to the 60% in current methodology! </li></ul>Domain: 100% Software: 0% NEW NOW Domain = High Level System Engineering Capability Paying attention to Product Expertise and building it in Software Engineers and Senior Software Engineers would help to reduce this further Domain: 100% Software: 0% Concept/Design Effort: 30% Domain: 10% Software: 90% Implementation Effort: 30% Domain: 40% Software: 60% Integration Effort: 20% Domain: 10% Software: 90% Testing Effort: 20%
  20. 20. Example: Testing Program Different Software Methodology <ul><li>New methodology requires 37% domain expertise compared to the 60% in current methodology! </li></ul>Domain: 100% Testing: 0% NEW NOW Paying attention to Product Expertise and building it in Software Engineers and Senior Software Engineers would help to reduce this further Domain = High Level System Engineering Capability Domain: 100% Software: 0% Concept/Design Effort: 20% Domain: 10% Software: 90% Scripting Effort: 20% Domain: 10% Software: 90% Execution Effort: 50% Domain: 100% Software: 0% Final Testing Effort: 10%

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