44895149-Attrition-Retention-Strategies-107191410

8/7/2019 44895149-Attrition-Retention-Strategies-107191410

1/25

AA

Presentation on Why Attrition Rate isPresentation on Why Attrition Rate is

more in ITmore in IT--Sector & what are the stepSector & what are the steptaken to reduce it?taken to reduce it?


2/25

BB

Defining attrition:Defining attrition: A reduction in the number ofA reduction in the number ofemployees through retirement, resignation or death.employees through retirement, resignation or death.

Defining Attrition rate:Defining Attrition rate: The rate of shrinkage in size orThe rate of shrinkage in size ornumber.number.

Introduction:Introduction: In the best of worlds, employees wouldIn the best of worlds, employees wouldlove their jobs, like their coworkers, work hard for theirlove their jobs, like their coworkers, work hard for theiremployers, get paid well for their work, have ampleemployers, get paid well for their work, have amplechances for the advancement, and the flexible scheduleschances for the advancement, and the flexible schedulesso they could attend to personal or family needs as andso they could attend to personal or family needs as andwhen necessary.when necessary.


3/25

CCBut then theres the real world. And in the realBut then theres the real world. And in the real

world,employeesa ,do leave, either because they wantworld,employeesa ,do leave, either because they wantmore money, hate their co workers, want a change ormore money, hate their co workers, want a change orbecause their spouse gets a dream job in anotherbecause their spouse gets a dream job in anotherstate.So,what does all the turnover cost? And whatstate.So,what does all the turnover cost? And whatemployees are likely o have the highest turnover? Who isemployees are likely o have the highest turnover? Who is

likely to stay the longest?likely to stay the longest?

Information Technology as an industry is very dynamic,Information Technology as an industry is very dynamic,lots of staunch competitors in the same field. IT as anlots of staunch competitors in the same field. IT as an

industry is segmented into GlobalC

onsulting or Productindustry is segmented into GlobalC

onsulting or ProductDevelopment companies. With the increased offshoreDevelopment companies. With the increased offshoreprojects hitting, a lot of technological companies reprojects hitting, a lot of technological companies retrying to acquire as many projects as possible. Lots oftrying to acquire as many projects as possible. Lots ofProjects coming to INDIA, due to cheap labour andProjects coming to INDIA, due to cheap labour and

professional excellence proved.professional excellence proved.


4/25

DD

If you compare the increasing demand for the ITIf you compare the increasing demand for the IT

professionals and the jobs that need to beprofessionals and the jobs that need to be

offshore in India, there is a huge dissonance inoffshore in India, there is a huge dissonance inthe demand and the supply.Naturally,acquirrngthe demand and the supply.Naturally,acquirrng

talents become difficult in such a situation.talents become difficult in such a situation.

Since the inflow of fresh talent is relativelySince the inflow of fresh talent is relatively

less, the same professionals in the market keepless, the same professionals in the market keep

moving from one companies to another.moving from one companies to another.


5/25

EE

Lot of things attract such individuals as well as there areLot of things attract such individuals as well as there arereason for attrition as follows:reason for attrition as follows:

Salary hikeSalary hike

PromotionPromotion

Less onsite opportunities or may be onsiteLess onsite opportunities or may be onsiteopportunitiesopportunities

BrandBrand

Job satisfactionJob satisfaction

FacilitiesFacilities

Working EnvironmentWorking Environment

Work Pressure.Work Pressure.


6/25

FF

Work culture and managementWork culture and management--IT industry is knownIT industry is knownfor its high pressure work atmosphere and longfor its high pressure work atmosphere and longworking hrs, which create high levels ofworking hrs, which create high levels ofstresss,employee and high attritions rates.stresss,employee and high attritions rates.

Transformation in lifestyles, identity and familyTransformation in lifestyles, identity and family

Lack of good leaders who can motivate and guideLack of good leaders who can motivate and guidetheir team welltheir team well--IT managers lack both the time andIT managers lack both the time andtools needed for assessing their team members andtools needed for assessing their team members andtaking corrective action to improve their performancetaking corrective action to improve their performance

which is directly related to job satisfaction.which is directly related to job satisfaction.Increasing percentage of women employeesIncreasing percentage of women employees--MostMost

women leave their job either after marriage orwomen leave their job either after marriage orbecause of long working hours, work stress and otherbecause of long working hours, work stress and othersocial pressures.social pressures.


7/25

GGAttrition is higher coz salary is dynamicAttrition is higher coz salary is dynamic

There is more demand and less supply so people areThere is more demand and less supply so people aregetting what they want. One sure way to prevent this isgetting what they want. One sure way to prevent this isto provide excellent working condition and make theto provide excellent working condition and make theorganization a people centric place.organization a people centric place.

PDCPDC--ProductDevelopment Companies(Most of the ITProductDevelopment Companies(Most of the ITpeople in IT services would like to move PDC as thepeople in IT services would like to move PDC as thekind of work would be challenging & exciting)kind of work would be challenging & exciting)

Some companies & their domain are exciting.Some companies & their domain are exciting.

Quality of the work Some companies are offering itsQuality of the work Some companies are offering itsemployees the high end quality work.employees the high end quality work.

Most employees dont leave but quit because they didMost employees dont leave but quit because they didnot like their job, they quit because they did not likenot like their job, they quit because they did not like

their boss.their boss.


8/25


9/25

II

4)Setting up a feedback mechanisms to maintain4)Setting up a feedback mechanisms to maintainconsistency in performance and high motivationconsistency in performance and high motivation

levels. Offer performance feedback and praise goodlevels. Offer performance feedback and praise good

efforts and results. Criticise but Praise publicly.efforts and results. Criticise but Praise publicly.

5) Give them job security5) Give them job security

6) Providing opportunities of learning by constantly6) Providing opportunities of learning by constantly

upgrading the skills of employeesupgrading the skills of employees

7) Paying attention to employees personal needs and7) Paying attention to employees personal needs andparticipationparticipation

8) Gauging the needs of the employees through open8) Gauging the needs of the employees through open

communication and polls.communication and polls.


10/25

JJ

9) Communicate goals, roles and responsibilities so that9) Communicate goals, roles and responsibilities so that

people know what is expected from them and feel apeople know what is expected from them and feel a

part of crowd.part of crowd.

10)Keep employees inform about the happening in the10)Keep employees inform about the happening in thecompany so that they will be confident about thecompany so that they will be confident about the

future or not to look for better opinion.future or not to look for better opinion.

11) Encourage humor & laughter in workplace to deal11) Encourage humor & laughter in workplace to deal

with stress which will ensure that the employees arewith stress which will ensure that the employees arehappy which gets reflected in their services especiallyhappy which gets reflected in their services especially

critical in voice based transaction.critical in voice based transaction.


11/25

KK

12)Feeling valued by their managers or superior in the12)Feeling valued by their managers or superior in the

workplace is a key to high employee motivation andworkplace is a key to high employee motivation and

morale.morale.

13)Not hiring employees who have a history of jumping13)Not hiring employees who have a history of jumpingfrom one job to other. Recognizing the contributionsfrom one job to other. Recognizing the contributions

of achievers would also inspire others to try hard andof achievers would also inspire others to try hard and

put in their best.put in their best.

14)Group cohesiveness also helps in copping with the14)Group cohesiveness also helps in copping with theattrition.Built teams and generate competitionattrition.Built teams and generate competition

between them.between them.


12/25

LL

15)The attrition battle could be won by focusing on15)The attrition battle could be won by focusing on

retention, making work a fun place, ongoing learningretention, making work a fun place, ongoing learning

and treating applicants and employees in the sameand treating applicants and employees in the sameway as subordinate.way as subordinate.

16)Infusing creativity in the routine job and16)Infusing creativity in the routine job and

communicate the firms larger objectives and goals tocommunicate the firms larger objectives and goals to

each employee to achieve that objective.each employee to achieve that objective.

17)It has been observed that attrition rate was lower17)It has been observed that attrition rate was lower

when employees perceived their workplace as a funwhen employees perceived their workplace as a fun

environment and viewed their jobs as enjoyable.environment and viewed their jobs as enjoyable.


13/25

MM

18) Monotony and stress have contributed to increased18) Monotony and stress have contributed to increased

attrition rate. So keep changing the duties or positionattrition rate. So keep changing the duties or position

of employees after fixes period.of employees after fixes period.19) Induction program and Exit interview are very19) Induction program and Exit interview are very

important.important.

20) Identify the key employees of the firm or categorize20) Identify the key employees of the firm or categorize

the employee according to need of the firm. It willthe employee according to need of the firm. It will

help you to customize your retention program.help you to customize your retention program.


14/25

NN

21)Your staff members must feel rewarded, recognizes21)Your staff members must feel rewarded, recognizes

and appreciated. Monetary rewards, bonuses and giftsand appreciated. Monetary rewards, bonuses and gifts

make the thank you even moremake the thank you even more

appreciated.Undersstanble raises tied toappreciated.Undersstanble raises tied toaccomplishments and achievements help to retainaccomplishments and achievements help to retain

staff. Offer an attractive, competitive, benefitsstaff. Offer an attractive, competitive, benefits

package.package.

22)Select the right people in the first place through22)Select the right people in the first place through

behaviourbehaviour--based testing and competency screening.based testing and competency screening.


15/25

OO

23) Demonstrate respect for employees at all times.23) Demonstrate respect for employees at all times.

Treat the employees well & provide a dignity of job.Treat the employees well & provide a dignity of job.

24)If a key employee resigns, it should be taken up on a24)If a key employee resigns, it should be taken up on a

priority basis and kept confidential as far as possiblepriority basis and kept confidential as far as possible

and the senior management should meet the employeeand the senior management should meet the employee

to discuss his reason for leaving and evaluate if histo discuss his reason for leaving and evaluate if his

issues bear merit and whether they can be resolved.issues bear merit and whether they can be resolved.

25)People want to enjoy their work. Make work25)People want to enjoy their work. Make work

fun.Engage,employ the specials talents of eachfun.Engage,employ the specials talents of each

individual.individual.


16/25

PP

So if we want to try to reduce attrition we canSo if we want to try to reduce attrition we can

take the points mention above for the same andtake the points mention above for the same and

can do best from our end to reduce attritioncan do best from our end to reduce attrition

rate in ITrate in IT--Sector.Sector.


17/25


18/25

Strategy # 1Strategy # 1 -- Walk your talkWalk your talk

Employees have a sixth sense and can smell "fake" aEmployees have a sixth sense and can smell "fake" amile away. You can't say that employees are your mostmile away. You can't say that employees are your mostvaluable assets and walk by without acknowledgingvaluable assets and walk by without acknowledgingthem. You can't advocate openness of communicationthem. You can't advocate openness of communication

and not share your company's vision with the rest of yourand not share your company's vision with the rest of yourorganization. Successful companies and businessorganization. Successful companies and businessowners are authentic. What they say, feel, think and doowners are authentic. What they say, feel, think and doperfectly match. Do a mental check before speaking andperfectly match. Do a mental check before speaking andacting, and encourage the rest of your managementacting, and encourage the rest of your management

team to do the same. Don't make empty promises; if youteam to do the same. Don't make empty promises; if youpromise you will do something, do it. Ask for feedbackpromise you will do something, do it. Ask for feedbackand mean it. And if you ask for suggestions, act on them.and mean it. And if you ask for suggestions, act on them.


19/25

Strategy # 2Strategy # 2 -- Be fully engagedBe fully engaged

An open door policy is one thing. Being fully engagedAn open door policy is one thing. Being fully engagedwith your employees is another. Someone I know left hiswith your employees is another. Someone I know left hiscompany because his boss hardly ever shared anythingcompany because his boss hardly ever shared anythingwith him, whether it was the company's strategies or howwith him, whether it was the company's strategies or how

well he was performing. Communicating regularly withwell he was performing. Communicating regularly withyour employees goes a long way. Take the time to knowyour employees goes a long way. Take the time to knowthem, to know what excites them, what they like aboutthem, to know what excites them, what they like abouttheir jobs, what challenges they have and how you cantheir jobs, what challenges they have and how you canhelp them. One of the best ways to engage employees ishelp them. One of the best ways to engage employees is

to make them feel part of the big picture. Explain to themto make them feel part of the big picture. Explain to themhow their contribution impacts the company.how their contribution impacts the company.


20/25

Strategy # 3Strategy # 3 -- Be proactive withBe proactive with

employee developmentemployee development Employees need to know how well they are doing. SitEmployees need to know how well they are doing. Sit

down regularly with your employees and review theirdown regularly with your employees and review theirgoals. Provide regular feedback. One mistake manygoals. Provide regular feedback. One mistake manycompanies, large or small, make is to view thecompanies, large or small, make is to view the

performance review as a once a year event; insteadperformance review as a once a year event; insteadmake it a yearmake it a year--round practice. Set goals with individualround practice. Set goals with individualteam members at the start of the year. Follow up withteam members at the start of the year. Follow up withsteady support through coaching and possibly outsidesteady support through coaching and possibly outsidetraining. Check in at the midtraining. Check in at the mid--year point to ensure they'reyear point to ensure they're

on track, and then meet again at year's end. Seeon track, and then meet again at year's end. Seeyourself as the coach of a team, asking yourself how canyourself as the coach of a team, asking yourself how canyou help them realize their potential and by the sameyou help them realize their potential and by the sametoken help your company realize strong results?token help your company realize strong results?


21/25

Strategy # 4Strategy # 4 -- Allow people toAllow people to

learn and growlearn and grow Many companies shy away from empowering their employees forMany companies shy away from empowering their employees for

fear that the employees will not exercise proper judgment in makingfear that the employees will not exercise proper judgment in makingdecisions. Too often, managers microdecisions. Too often, managers micro--manage and instead ofmanage and instead ofallowing the employees to come up with their own answer to aallowing the employees to come up with their own answer to aproblem, just tell them what to do. In his bookproblem, just tell them what to do. In his book The Four Pillars ofThe Four Pillars ofHigh Performance: How Robust Organizations AchieveHigh Performance: How Robust Organizations AchieveExtraordinary ResultsExtraordinary Results, Paul C. Light makes the point that giving, Paul C. Light makes the point that givingemployees authority to make routine decisions helps build strongemployees authority to make routine decisions helps build strongperforming companies. Studies have also shown a significantperforming companies. Studies have also shown a significantcorrelation between employee empowerment, employee satisfactioncorrelation between employee empowerment, employee satisfactionand company financial performance. Simple things like sending aand company financial performance. Simple things like sending ateam member to a trade show and then sharing the informationteam member to a trade show and then sharing the informationthrough a presentation reinforce empowerment.through a presentation reinforce empowerment.


22/25

Strategy # 5Strategy # 5 -- Watch for theWatch for the

signssigns Believe it or not, people have an "internal clock" that starts tickingBelieve it or not, people have an "internal clock" that starts ticking

louder as their need for change gets stronger. Some people have anlouder as their need for change gets stronger. Some people have anurge to move on to another position despite the fact they like theurge to move on to another position despite the fact they like thecompany or their jobs. There's an HR assessment called Thecompany or their jobs. There's an HR assessment called TheInventory of Work Attitudes and Motivation that some companiesInventory of Work Attitudes and Motivation that some companiesuse to measure how long people will do the same thing beforeuse to measure how long people will do the same thing beforefeeling the need for change. In one case study a company wasfeeling the need for change. In one case study a company waslosing some of its best salespeople after two to three years. Whenlosing some of its best salespeople after two to three years. Whenasked why they wanted to leave at their exit interviews, theasked why they wanted to leave at their exit interviews, theemployees could not pinpoint any particular reason. They liked theemployees could not pinpoint any particular reason. They liked thecompany and were happy. After agreeing to take the assessment,company and were happy. After agreeing to take the assessment,results showed that these employees needed some changes after aresults showed that these employees needed some changes after aperiod of two to three years. Once the company introduced someperiod of two to three years. Once the company introduced somekind of change, such as handling a different territory, the retention ofkind of change, such as handling a different territory, the retention oftheir salespeople increased. Regularly check your employees' leveltheir salespeople increased. Regularly check your employees' levelof motivation and enthusiasm for their job. (Review strategy # 2 andof motivation and enthusiasm for their job. (Review strategy # 2 andoffer an alternative before they choose the option of leaving).offer an alternative before they choose the option of leaving).


23/25

Strategy # 6Strategy # 6 -- Practice thePractice the

Golden RuleGolden Rule How do you want to be treated by the people around you? I'll bet it'sHow do you want to be treated by the people around you? I'll bet it's

not any different than how your employees want to be treated. Fornot any different than how your employees want to be treated. Forsome reason, as people move into managerial roles, they oftensome reason, as people move into managerial roles, they oftenadopt a whole new set of beliefs that bosses must be tough. Faradopt a whole new set of beliefs that bosses must be tough. Farfrom the truth! Bosses, whether they are business owners,from the truth! Bosses, whether they are business owners,managers or supervisors, have a responsibility to model fair andmanagers or supervisors, have a responsibility to model fair andrespectful behaviors. Rude and demeaning behavior is never arespectful behaviors. Rude and demeaning behavior is never amotivator. So while there may be times when you're frustrated by anmotivator. So while there may be times when you're frustrated by anemployee's actions or behaviors, you'll be more likely to elicit aemployee's actions or behaviors, you'll be more likely to elicit apositive response by calmly discussing the problem in private andpositive response by calmly discussing the problem in private andworking together to come up with a solution. Choose theworking together to come up with a solution. Choose theappreciative approach and show employees you truly care for theirappreciative approach and show employees you truly care for theirwellwell--being. Appreciate their work and their own unique qualities. Saybeing. Appreciate their work and their own unique qualities. Saythank you.thank you.


24/25

Strategy # 7Strategy # 7 -- Create a funCreate a fun

environmentenvironment Research conducted at California State University showedResearch conducted at California State University showed

that humour in the workplace increases employees' creativitythat humour in the workplace increases employees' creativityand productivity, as well as decreases absenteeism. Involveand productivity, as well as decreases absenteeism. Involveyour employees in deciding how they'd like their workplace toyour employees in deciding how they'd like their workplace to

be more fun. Some ideas include scheduling mini timebe more fun. Some ideas include scheduling mini time--outs toouts tohelp relieve stress, a "joke corner" in the lunchroom or regularhelp relieve stress, a "joke corner" in the lunchroom or regularpotluck/group lunches. What's important is that you enjoypotluck/group lunches. What's important is that you enjoyyourself as well (remember strategy # 1).yourself as well (remember strategy # 1).

All of these strategies are affordable and easy to implement. What it doesAll of these strategies are affordable and easy to implement. What it doesCost is some reflection time to assess the culture of your company. AskCost is some reflection time to assess the culture of your company. Ask

yourself some questions: What is our company's culture? Do myyourself some questions: What is our company's culture? Do my

employees like coming to work? Your answers can mean the differenceemployees like coming to work? Your answers can mean the difference

between a mediocre workplace with high employee turnover and anbetween a mediocre workplace with high employee turnover and an

outstanding work environment where employees feel valued and inspired.outstanding work environment where employees feel valued and inspired.


25/25

The EndThe End

44895149-Attrition-Retention-Strategies-107191410

Documents

Transcript of 44895149-Attrition-Retention-Strategies-107191410