How to Control Attrition in Business Organizations
Introduction:
Human resources are assets of any organization. However, retaining employees is becoming difficult task for most organizations in the era of globalization and competitive environment. So retention of employees has become a great concern for all organizations. It is very frustrating for an organization if employees leave after two months or the training period is over. Attrition up to certain limit is favorable to an organization. Sometimes it works as a talent acquisition when new employees join. Organizations are fast realizing that losing underperformed employees is a boon in disguise to an organization. Attrition beyond desired limit only is a problem for an organization. In the best of worlds, employees would love their jobs, work hard for their employers, get paid well for their work, have many chances for advancement and flexible schedules so that they could attend to personal needs when necessary. But there is the real world. Employees do leave either because they want more money, hate the working conditions, hate their co-workers, want a change. Attracting, keeping and motivating talent has become one of the main activities of organizations. Globalization, M & A and expansions of organizations have provided great scope for deployment of talented people. Boundary less company, worldwide labor markets, better communications systems and agile new organizations have contributed to this complex problem. Earlier, this challenge was faced by advanced economies like united states, Japan and Europe. Globalization and growth in economy has exposed challenge of attracting and retaining talent in emerging economies as well. Creation of work environment that provide meaningful challenge to employees has become a priority.
Reasons why employees quit?
There are number of reasons which may make an employee quit our organization
If the organization does not provide employees with sufficient opportunity for growth, then they will decide to leave the organization.
Employees leave the organization if the company does not provide congenial working environment.
As comparison is a natural instinct of human beings, comparison of employees with their peers aggravates the problem of attrition in organizations. Sometimes comparisons will result in heartburning which should be curbed.
Intimidation by the boss drives the best employees out of the organization.
Some employees get bored doing the same job over a period of time. They like to take on new roles after some period of time.
Stress, unfair practices in organizations, long distance from home etc., could be other reasons for attrition.
When there is no job satisfaction for employees, then also they will quit the job.
Lack of internal networking of employees leads to attrition in organizations.
If the reward policy is not transparent, then they will be encouraged to look for other opportunities.
Employees often discuss their salaries with their colleagues. If there is inequality among them, then there is an issue for HR.
If the compensation is not in match with the employees' knowledge, skill and attitude, people may leave without notice.
Hiring of overqualified people may increase rate of attrition in organizations.
In several cases, faced with a choice between high pay package and a challenging job, employees have opted for the latter.
How to curb attrition:
Money is not everything : Even though the importance of high salaries is slowly taking backseat, among freshers or laterals with less than three years of work experience, money is still considered to be the highest priority. According to RAKESH TIKU, vice-president, Deliveries, Infinite computer solutions, " with the overall package, the demand for performance based salaries is going up. Employees want not only work recognition, but also extra perks". Employees analize the training programs of prospective companies with those of their current organization, which means that how an organization grooms an employee is weighted to a greater extent. This is because they know that developing next-level skills places them ahead in the job market and finally result in better compensation. They also search for a job with higher of responsibility.
Treat employees like customers:
Even though companies strive to understand which organizational, job and reward factors will contribute to retain good employees, industry experts have found several loopholes at the top management and HR Management level. According to Bijay Sahoo, Vice President, talent management and development, wipro technologies, "Companies should have a similar approach to retain an employees and customers. if a company strives to retain an employee in the same way it tries to retain a customer, him leaving the organization could be out of question." Since employees have different priorities at different points of time, organizations need to structure their offer-mix while recruiting new hires as well as promoting existing ones. Communication is the foundation for entire process of managing attrition.
Conclusion:
Retaining employees has become a herculean task for organizations. The profitability of an organization gets affected, if their employees leave them frequently. Hence organizations should first identify the problems and then deal with them in an appropriate manner.
Author : N.N.K Sandilya
How to Control Attrition in Business Organizations
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