I would like to know the areas where we need to concentrate to reduce the attrition rate in an organization which helps company to grow and as well employees to grow in a similar manner.
From India, Hyderabad
From India, Hyderabad
Hi,
Band I - When you have people with 0-5 years experience , give them work which are of high quality and challenging, see that the young employees are getting daily learning, keep their salary structure to the industry standards, See that their salary increments are 15-25% every year. People with less than 5 yrs exp are great assets since their productivity is also very high.
Band II - When people are 5 yrs- 8 yrs experience, they start looking for lead roles. They want to Manage people. So when there is a transition from Band I - Band II, identify young lead and give them high level of task ownership and leadership. People in this Band look for building leadership. Keep their salary 10-15% higher than the local market standard.
Band III- You don't need to worry about people with 10+ years of experience, as their attrition rates will be quite less. This is because they have high job related expectation and family related commitments. You need to give them a high level of respect and make them feel the organization ownership.
Other Points which you can consider
1) Employees can be given EPS benefits.
2) Given an opportunity for the employees to have cross functional experience
3) Try to have employees from local/native town employees rather than outstation employees
4) Give challenging opportunities for employees
5) See that the variable pay is not more than 10-15% of their Gross CTC.
6) Reward Employees with 2 year, 5 years, 10 years milestone awards.
These are the line items that come to my mind rite now.
Regards,
Kiruthika
From India, Salai
45Band I - When you have people with 0-5 years experience , give them work which are of high quality and challenging, see that the young employees are getting daily learning, keep their salary structure to the industry standards, See that their salary increments are 15-25% every year. People with less than 5 yrs exp are great assets since their productivity is also very high.
Band II - When people are 5 yrs- 8 yrs experience, they start looking for lead roles. They want to Manage people. So when there is a transition from Band I - Band II, identify young lead and give them high level of task ownership and leadership. People in this Band look for building leadership. Keep their salary 10-15% higher than the local market standard.
Band III- You don't need to worry about people with 10+ years of experience, as their attrition rates will be quite less. This is because they have high job related expectation and family related commitments. You need to give them a high level of respect and make them feel the organization ownership.
Other Points which you can consider
1) Employees can be given EPS benefits.
2) Given an opportunity for the employees to have cross functional experience
3) Try to have employees from local/native town employees rather than outstation employees
4) Give challenging opportunities for employees
5) See that the variable pay is not more than 10-15% of their Gross CTC.
6) Reward Employees with 2 year, 5 years, 10 years milestone awards.
These are the line items that come to my mind rite now.
Regards,
Kiruthika
From India, Salai
Thanks a lot for the inputs and I hope this will be a fruitful information to all who wanted to see the change in their organization in terms of reducing attrition rate.
From India, Hyderabad
From India, Hyderabad
Dear Asadullah,
Recruiting right people to the right job is one of the most important responsibilities of an HR Manager. Even after performing this responsibility well, he cannot sit back and relax. He has another challenge that is to retain the good talent that was hired by him.
Factors that motivate employees to continue in a job include job satisfaction, career development, recognition of good work, having understanding managers and so on. While “good pay” is also one of them, it does not fall under the main motivators that delight the employee. Thus, by having a good employee performance management culture and policy in place, an HR manager can ensure that the employee’s expectations from the company are met. This would in turn bring down the attrition rate and also ensure long term loyalty of the employees to their organization.
Therefore, the basic foundation, as we understand, is to define good employee performance management policies that reduce attrition rate in an organization.
Here are the main factors that would help lower employee attrition rate.
1) Define the right set of competencies for different job roles. An ability to customize this for individuals would be an added advantage.
2) Set standardized goals for the job roles, with an ability to customize for each individual. Also, employees goals would have to align with the organization goals.
3) Convey the job expectations to the employee clearly, well in advance.
4) Allow objective appraisals as much as possible. This can be achieved by:
Timing the feedback closer to the incident. (Interim feedback)
Getting feedback from multi-raters.
Social recognition to identify good performance.
Reward the good performers.
5) Define an annual appraisal process which is simple. Activities should be kept to the minimum and the important ones, like rating and career development meeting should be given importance. Approval mechanism should be simple and clear. Simplicity is the key for effective use.
6) The end result of appraisals should be aimed for career development of an employee. Ability to define career development plans and tracking to closure would be good.
Once these policies are base-lined, organizations can look into automating them with clear, customizable performance management software, to reduce the amount of manual efforts.
Therefore, having better employee performance management policies will not only minimize the employee attrition, but also enhances their efficiency helping the organization touch the heights of success.
Courtesy - Kavitha Kalyanasundaram
From India, Bangalore
Recruiting right people to the right job is one of the most important responsibilities of an HR Manager. Even after performing this responsibility well, he cannot sit back and relax. He has another challenge that is to retain the good talent that was hired by him.
Factors that motivate employees to continue in a job include job satisfaction, career development, recognition of good work, having understanding managers and so on. While “good pay” is also one of them, it does not fall under the main motivators that delight the employee. Thus, by having a good employee performance management culture and policy in place, an HR manager can ensure that the employee’s expectations from the company are met. This would in turn bring down the attrition rate and also ensure long term loyalty of the employees to their organization.
Therefore, the basic foundation, as we understand, is to define good employee performance management policies that reduce attrition rate in an organization.
Here are the main factors that would help lower employee attrition rate.
1) Define the right set of competencies for different job roles. An ability to customize this for individuals would be an added advantage.
2) Set standardized goals for the job roles, with an ability to customize for each individual. Also, employees goals would have to align with the organization goals.
3) Convey the job expectations to the employee clearly, well in advance.
4) Allow objective appraisals as much as possible. This can be achieved by:
Timing the feedback closer to the incident. (Interim feedback)
Getting feedback from multi-raters.
Social recognition to identify good performance.
Reward the good performers.
5) Define an annual appraisal process which is simple. Activities should be kept to the minimum and the important ones, like rating and career development meeting should be given importance. Approval mechanism should be simple and clear. Simplicity is the key for effective use.
6) The end result of appraisals should be aimed for career development of an employee. Ability to define career development plans and tracking to closure would be good.
Once these policies are base-lined, organizations can look into automating them with clear, customizable performance management software, to reduce the amount of manual efforts.
Therefore, having better employee performance management policies will not only minimize the employee attrition, but also enhances their efficiency helping the organization touch the heights of success.
Courtesy - Kavitha Kalyanasundaram
From India, Bangalore
Kiruthika have offered you a very detailed view on attrition. Here are few non-monetary benefits that you can consider for your firm.
Band 1: offer them MBA/MS /M-tech courses from universities of repute. You can easily find university or even the well know deemed Institute , who cn offer your employee contact-classes for the courses during the weekends. This will take away the employee's worry to look for a good Institutes and hassles to attend the classes.
You can easily negotiate a lower fees for your employees as you are already offering them a promise of enrolments. This is best for the talents who have been working for the last 2-3 years and couldn't take any break due to their employment.
You can alternatively plan for the Management Development course with the Tier-1 Institute for the mid and senior level employees. this offers them a benefit to increase their employability beyond measures.
The catch remains, that your employees need to work with your firm during this duration or the lock-in period that you may decide.
Band 2: Offer you employees a subsidised fees for their children in few most preferred schools.
You might need to make a small investment to book few seats for the kids of your employees. But there would be a guaranteed continuity in their employment with your firm.
Band 3: Find good housing schemes and car schemes and create a partnership with the builders and dealers.
These are major areas that the employees spend most of their time worrying about. Even if there are salary hikes with your competitors, your employees are still likely to leave you. You may still need to continue making your workplaces better. However, the top reasons to leave work might entirely change.
Yes, it would require a lot of work from your end. However, it is doable. There are large MNC's who have been doing this through their admin teams. Consider the increased administrative work as an investment to avoid attrition.
From India, Mumbai
Band 1: offer them MBA/MS /M-tech courses from universities of repute. You can easily find university or even the well know deemed Institute , who cn offer your employee contact-classes for the courses during the weekends. This will take away the employee's worry to look for a good Institutes and hassles to attend the classes.
You can easily negotiate a lower fees for your employees as you are already offering them a promise of enrolments. This is best for the talents who have been working for the last 2-3 years and couldn't take any break due to their employment.
You can alternatively plan for the Management Development course with the Tier-1 Institute for the mid and senior level employees. this offers them a benefit to increase their employability beyond measures.
The catch remains, that your employees need to work with your firm during this duration or the lock-in period that you may decide.
Band 2: Offer you employees a subsidised fees for their children in few most preferred schools.
You might need to make a small investment to book few seats for the kids of your employees. But there would be a guaranteed continuity in their employment with your firm.
Band 3: Find good housing schemes and car schemes and create a partnership with the builders and dealers.
These are major areas that the employees spend most of their time worrying about. Even if there are salary hikes with your competitors, your employees are still likely to leave you. You may still need to continue making your workplaces better. However, the top reasons to leave work might entirely change.
Yes, it would require a lot of work from your end. However, it is doable. There are large MNC's who have been doing this through their admin teams. Consider the increased administrative work as an investment to avoid attrition.
From India, Mumbai
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