Pay Personal and Family Location Time REASONS FOR EMPLOYEE TO COME TO THENature Of ORGANIZATION Benefits Work Advancement Job Possibilities Security
Employee retention is a process in which the employees are encouraged to remain with the organization for a maximum period of time or until the completion of the project Employee retention refers to the various policies and practices which let the employees stick to an organization for a longer period of time
Hiring is not an easy process An organization invests time and money in grooming an individual When an individual resigns from his present organization, it is more likely that he would join the competitors Every individual needs time to adjust with others
The employees working for a longer period of time are more familiar with the company’s policies, guidelines and thus they adjust better Individuals sticking to an organization for a longer span are more loyal towards the management and the organization It is essential for the organization to retain the valuable employees showing potential
Hire the right people in the first place Empower the employees Employee Recognition Performance Appraisal
Make them feel valuable Assigning responsibilities according to employee’s specialization and interests Career planning Keep their morale high Create healthy environment
Incentives, cash prizes, perks should be given Employees should be allowed to participate in decision making process Have faith in them , trust & respect them
Employee turnover refers to the number or percentage of workers who leave an organization and are replaced by new employees Attrition is the reduction in the number of employees through resignation, retirement and sudden death
Monetary factors Lack of good working conditions Inflexible work schedules Job is not what employee expected
Lack of trust and support No growth opportunities Monotonous work Lack of appreciation Work related stress leading to work-life imbalance
New job opportunities Less employee oriented policies Lack of cooperation from peers Less reward for employees
Loss of productivity Replacement of trained employees Recruiting and interviewing expenses Training expenses
Time spent on orientation Cost of overtime or officiating position till the time new candidate is recruited Attrition at mid or senior level may reveal company specific information
Attrition rate varies from sector to sector:- Hospitality and Aviation sector’s attrition rate was 22 per cent in 2011-12 Attrition rate has fallen sharply in IT, ITES and the BPO sector to 15-20 per cent in 2012 as against 55-60 per cent in 2011 as per industry body ASSOCHAM.
In Auto Sector the attrition has fallen from to 10 per cent in January-March quarter from 11 percent in the corresponding period in 2010-2011 At the entry and mid-management level, attrition rates in aviation and hospitality industry have doubled over the last three years. This is happening due to perceptions of being poor pay masters, delay in salaries, job insecurities and little concern for employee welfare.