ATTRITION

What is ATTRITION???

A reduction in the number of employees through retirement, resignation or death

INTRODUCTION:
Employee attrition is one of the critical problem which is faced by an HR manager during these days. In an ideal situation an employee consider multiple comfort level while working in a office for e.g. employers goodwill in the market, remuneration, future growth, working condition, co-workers, current roles scope in the market & most important future stability with the organization. In a survey, opproximate 70% of the working population in India is not happy at all due to one of the aspect (as mentioned aforesaid) which is not fulfilled while working in a organization which caused higher attrition rate.

In broad term, attrition is a situation which employer face when employee left the organization due to job dissatisfaction, new opportunity in the market, retirement & natural cause (death/illness). Now a day this is one of the most important question which is asked by higher authority to HR people Why our attrition rate is higher than other company.Earlier it wasnt important for the organization, whether their employees are committed or not, but now the time has been changed .The company cannot afford to lose its best employee to competitors. Therefore, HR team conducts EXIT interview when an employee left the job to get the information about ones decision to leave an organization. It is a paramount consideration for a HR team to think, why people are vacating their positions. Still human resource team face the challenge due to wrong information provided during EXIT interview.

Reasons for Leaving

The reason are various behind leaving an organization & any attempt to find one comprehensive explanation for this phenomenon would be futile. Though the rising attrition within industries is a well-discussed topic but very few HR executives have been able to pinpoint the exact reason for this growing trend .A recent Hewitt Attrition & Retention survey shows one of the top reasons for talent attrition to be external inequity in compensation. They also show that 27% of the employees in their EXIT interview mentioned compensation as the primary reason. It comes no surprise to many that money is an important factor but what besides this, there are several factors that influence an employees decision to leave.

Those days are gone when salary was the sole motivator for an employee to leave an organization. According to a survey there are three main reasons that are followed by other common reason:  In equity in compensation  Limited career opportunities  Role stagnation Common reasons experienced by HR manager are discussed here:  Mismatch of job profile  Job stress and work-life imbalance  Odd working hours/Early morning night shifts  Job hopping  Lack of authority provided to accomplish ones task  Monotony of job  Monetary factors  Lack of good working condition  Lack of respect  Very few supportive colleagues  Organization is more concern towards business  Employee needs pride in where they work & what they do

 Lack of appreciation  Lack of challenges in job  The job or workplace was not as expected  To little coaching and feedback  Lack of support  Loss of trust and confidence in senior leaders  Less frequency in giving rewards. This list can be endless but the reason why employees leave the organization is vary according to the nature of the business. The work should give to them the level of the employee and the nature of the responsibility he/she can handle. Therefore its very challenging task for an HR expert to cope up with this situation and retain talent with an organization. Effect on organization if its employee leave  Loss of productivity  Replacing qualified employees  Poor retention creates a revolving door culture within the organization lowering morale and confidence  Cost of overtime or temporary help  Recruiting cost  Interviewing costs

RETENTION What is employee retention?  Employee retention is a process in which the employees are encouraged to remain with the organization for the maximum period of time or until the completion of the project. Employee retention is beneficial for the organization as well as the employee.

Importance of Employee retention  The cost of turnover  Loss of company knowledge  Interruption of customer service  Turnover leads to more turnover  Goodwill of the company  Regaining efficiency

RETENTION MYTHS: The process of retention is not easy as it seems. There are so many tactics andstrategies used in retention of employees by the organizations. The basicpurpose of these strategies should be to increase employee satisfaction, boostemployee morale hence achieve retention. But sometimes these strategies arenot used properly or even worse, wrong strategies are used. Because of whichthese strategies fail to achieve the desired results. There are many myths relatedto the employee retention process. These myths exist because the strategiesbeing used are either wrong or are being used from a long time. These mythsprevent the employer from successfully implementing the retention strategies. Employees leave an organization for more pay: Money may be the motivating butfor many people it is not the most important factor. Money matters more to thelow income employees for whom its a survival issue. Money can make anemployee stay in an organization but not for long. The factors more importantthan money are job satisfaction, job responsibilities and

individuals skilldevelopment. The employers should understand this and work out some otherways to make employee feel satisfied. When employees leave, managementtries to retain them by offering more money. Issues that are mainly the cause of dissatisfaction are organizations policies and procedures, working conditions,relationship with the supervisor and salary, etc. For such employees,achievements, growth, recognition, are the main concerns. Incentives can increase productivity: Incentives can surely increase productivitybut not for long time. Cash incentives, volume work targets and speed awardsare old management beliefs. They can generate work speedily and in volumesbut cant boost employee commitment. Rather speed can hamper the quality ofwork produced. What really glues employees to their work and organization isquality work, meaningful responsibilities, recognition, respect, growthopportunities and friendly supervisors. Employees run away from responsibilities: It is myth that employees run awayfrom responsibilities. In fact employees feel more responsible if they are givenextra responsibilities apart from their regular job. Employees look for variety,greater control on the processes and authority to take decisions in their presentjob. They want opportunities to learn and grow. Management can assign extraresponsibilities to their employees and appreciate them on completion of thesetasks. This will induce a sense of pride in the employee and will improve therelationship between the management and the employee. Loyalty is a thing of the past: Employees can be loyal but what they need is anemployer for whom they can be loyal. There is no reason for the employee tohop job if he is satisfied with the employer. Taking measures to increase employee satisfaction will be expensive for theorganizations: The things actually required to improve employee satisfaction likerespect, career growth and development, appreciation, etc. cant be bought. They are free of cost. An employee or management reacts well to the employeesideas and suggestions is enough for the employee to be retained.