| Attrition is one of the most serious concerns of | | | | maintained and managed in relation to the |
| the organisations today, irrespective of the | | | | employees KSAs (Knowledge, Skills and Attitude), |
| industry in which they are operating. Attrition is all | | | | people may leave without notice. |
| about people leaving organisations with the | | | | 2) Management: Employee relations management |
| slightest provocation and having no respect and | | | | is most important function, which has to help the |
| commitment to the company in which they are | | | | people to concentrate more on their task on hand |
| working. | | | | and to become result oriented. |
| This article is aimed at analysing the employee | | | | * How to calculate attrition rate? |
| attrition and on how to combat the same in the | | | | Closing employee Balance of last month = x |
| organisations. | | | | Closing employee balance of current month = yx |
| Ten reasons on why attrition arises? | | | | + y = average head count |
| 1. Internal networking of employees must be | | | | Average head count divided by resigned |
| encouraged to create team spirit across the | | | | employees of current month X 100 = attrition |
| organisation. Lack of this kind of approach leads | | | | rate |
| to attrition. | | | | Conclusion |
| 2. Performance goals must be defined clearly with | | | | * How to manage Attrition? |
| updated job description. Resourceful employees | | | | 1. Compensation and Management: Compensation |
| must be encouraged to create an atmosphere of | | | | and Management must be managed based on the |
| collaboration and cooperation. | | | | KSAs (Knowledge, Skills, Attitude and Experience) |
| 3. Professional development is always aimed at | | | | of the employees. |
| future. As Indians are natural learners, the | | | | 2. Create opportunities for employees: The |
| organisations should take advantage of this trait | | | | Company has to create growth opportunities for |
| and help them for overall development of their | | | | employees to enhance their learning experience |
| professional as well as personal development. | | | | and earning abilities. |
| 4. Managers must try to manage relations with | | | | 3. Engaging employees: Employees must be |
| their subordinates at personal level to get the | | | | engaged on continuous basis and they should not |
| things done and to enhance productivity of each | | | | get bored with their work, which can be managed |
| employee. At the same time, they have to | | | | through internal transfers and training from time |
| maintain 'detached attachment' with the | | | | to time. |
| employees and not to indulge in any kind of | | | | 4. Review recruiting practices: Selection and |
| emotional relationship. | | | | Recruitment policies must be reviewed to suit the |
| 5. How rewards are awarded? The Rewards | | | | growing needs of the organization. |
| Policy must be transparent and this should be | | | | 5. Technology opportunities: Leveraging technology |
| announced across the organisation to avoid | | | | to manage the organization and enhancing the |
| misunderstanding and miscommunication. | | | | technical expertise of the employees will help |
| 6. Employees are bound to discuss their salaries | | | | organization grow without much problem of |
| with their colleagues. If there is any inequality | | | | attrition. |
| among them, then there is an issue for HR. | | | | 6. Career Path for employees: Employee career |
| 7. Goals are not realistic to explore the latent | | | | path must be declared during the recruitment |
| talent of the individuals and to leverage their | | | | process and should be explained to the recruited |
| competencies for the benefit of the organisation. | | | | people. |
| This is another potential problem HR has to face | | | | 7. Feel Valued in Organization: Non-financial |
| from the employees. | | | | rewards, a pat on the back in time and celebrating |
| 8. If the succession planning is not in place, then | | | | small achievements with great fan-fare will help |
| one has to inevitably go for external talent hunt | | | | employees feel valued in the organization. |
| when there is a need of senior positions to be | | | | 8. Contact with Senior Management: Senior |
| filled. If they are valued high, then you will have | | | | Management should address employees |
| another issue to resolve. | | | | periodically and should make them feel like a |
| 9. You have to communicate monetary benefits | | | | family. |
| to the employees, offered from time to time. | | | | 9. Feel Part of the Company's Mission: The |
| The importance of non-monetary rewards should | | | | Company's mission must be reiterated from time |
| not be ignored and managers have to be trained | | | | to time to reinforce the learning and experience |
| in offering these to employees to enhance their | | | | of the people. |
| performance levels. | | | | 10. Attendance : Policies with regard to attendance |
| 10. People have to be made aware of their career | | | | must be creative and flexible. |
| path and how they can grow within the | | | | 11. Educate employees on their impact: Educate |
| organisation? People have understand the | | | | employees regularly on what kind of impact they |
| competencies which they have to acquire to | | | | are creating on organization through their |
| move ahead in the organisation at various levels. | | | | contribution. |
| * Attrition - Why people leave? | | | | 12. Flexibility: Immediate bosses, middle level |
| People leave for two reasons | | | | managers must be flexible and act as Chief |
| 1) Compensation: If the compensation is not | | | | Happiness Officers to avoid triggers of attrition. |