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�Over 1 billion people & the largest

democracy in the world

� Less than a third in size of US- almost four

times the population

� Largest English speaking workforce after

USA…nearly 25% with higher secondary

education

� Average age: 26 yrs(China-36 years). 67%

people are below 35 years

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� Add 2m graduates and 460000 engineers

every year…1.5x China and 2x of US

�World renowned higher education institutes ,

e.g. IITs, IIMs

�GDP growth 2x of US and UK

� 1m IT Enabled Services (ITES) jobs and the

forecast is 2m by 2008

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“India is a democracy with a young & large

English speaking middle class, with strong

technical and mathematical aptitude and

good work ethic.”

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� Attrition of HR can be defined as reduction in

the number of employees through retirement,

resignation or death

� In other words, attrition can be defined as the

number of employees leaving the organization

� "Why our attrition rate is higher than other

company?".

� The company cannot afford to lose its best

employee to competitors.

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�An ideal situation while working in a office :

� Employer's goodwill in the market

� Remuneration

� Future growth

�Working condition

� Co-workers

� Future stability with the organization

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�HR team conducts EXIT interview when an

employee left the job to get the information

about one's decision to leave an organization

� Zero Attrition

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� Causes of Attrition

� Attrition Rates

� Effects of attrition on employees and

organization at large

� Cost

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� Advantages and disadvantages of attrition

� Key to reduce attrition

� Current scenario

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� Adjustment with different cultures

� Encountering new problems

� Exposure to new challenges

�Healthy competition

� Low morale

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� Brand Image

� Customer relationship

�Disruption in work

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� Loss of knowledge capital

�Delay in execution of projects

� Loss of production

� Increasing cost of recruitment

� Burden burn-out on existing employees

� Internal knowledge is being shared outside

� Existing team may get defocused

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Attrition is a boon in

disguise…!!

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Benefits

� Removes bottle-neck

� Creates space for the entry of new talents

� Assists in evolving high performance teams

� Infuses new blood into the organization

� Enhances ability for execution

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Benefits

�New thoughts, ideas, and hence, more

innovation and creativity

� Knowledge of best practices from across the

industry is brought in

� Challenging status quo

� lower cost with fresh skills and competencies

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�Growth opportunities

�Mismatch of job profile

�Organizational culture

� People “Quit their Boss”

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� Job stress and work life imbalance

�Working hours

� Ethical issues

� Lack of recognition

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� Talent lost

� Recruitment cost

� Training cost

�Motivational cost

� Lost Productivity cost

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�Attrition =

(No. of employees who left in the year /

average employees in the year)

x 100

� Thus, if the company had 1,000 employees in

April 2004, 2,000 in March 2005, and 300 quit

in the year, then the average employee

strength is 1,500 and attrition is 100 x

(300/1500) = 20 percent

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Retention : Managing PeopleRetention : Managing People

� Employee retention is a process in which the

employees are encouraged to remain with

the organization for the maximum period of

time.

� Employee retention is beneficial for the

organization as well as the employee.

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Keys to effective retention:

Compensation:

� Salary

� Bonus

� LTA or Paid Holidays

�Health Insurance

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Recognition:

� Employee Evaluation

� “Never punish harshly for mistakes but

always reward for good work”

�Not only money but RESPECT matters

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Motivation:

� Importance

�Good work culture

� Recreation facilities

� Employee bonding

� Second Home

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Fun @ Workplace:

�Occasional Stress Relievers

� Events

� Picnics

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Growth opportunities:

� Challenging projects

� “ Be a leader and not follower ”

� Creative and Competitive work culture

� Training & Development

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Employee Empowerment:

� Responsibilities should match with authority

� Participative Decision Making

� Communication with top management

� Encouraging suggestions and employee

engagement in the organization

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Transparent Work Culture:

� Facilitates accountability, trust,

communication & responsibility

�Discourages work-politics

�Healthy work environment = Satisfied

employees = Success of Organization

�No communication errors

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Current Scenario:

�Global Meltdown

�Negative growth

�GOOD NEWS FOR THE RECRUITERS:

� “The Best Time to Recruit”

&

� “Employees dare not feel to leave the

organization”

� The attrition rates in single digit figures

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� For IT Industry which had attrition rate

between 20-40 % is now below 20%.

�HR Executives are now less concerned about

Attrition and they are planning Layoffs to

maintain profitability

�Even the IIM Graduates are Experiencing Even the IIM Graduates are Experiencing Even the IIM Graduates are Experiencing Even the IIM Graduates are Experiencing the Heatthe Heatthe Heatthe Heat

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