Creating job opportunities is the second-best thing a company can do, and Attrition Management remains on the top. Attrition management is the process where employer practices to retain its employees by deploying various methods and technologies. Ever given a thought to why? Well, while googling about it, we have accumulated all the questions in three primary buckets.
- What is Attrition Management?
- Why is Attrition Management so important?
- How can we successfully control Attrition?
So, here is our take on the above questions.
1. What is Attrition Management?
Attrition refers to the downsizing of a company’s workforce who are unwilling to stay with the company. This means that attrition reduces the workforce size. Attrition happens for several causes, including low salaries, a lack of career progression, poor working conditions, Illness and death, Retirement.
According to the sources, below is the percentage rate of the reason for Attrition:
- 68% of employees leave due to Controllable factors.
- 72% of employees claim they were unhappy with the quality of retention effort.
- 37% of employees leave because of their immediate manager.
- 3 out of 10 candidates do not join the company despite accepting the offer.
- 61% of managers stated they need coaching on areas of appraisal, promotion, and salary-related communication.
Attrition is regarded as a health check for any business. Something is wrong if many people are leaving.
2. Why is Attrition Management so important?
Well, no company wants their highly trained and efficient employees to leave. Leaving employees not only impacts the company but the clients too.
Let us take the example of John, an employee of ABC Corp, associated with the company for the last five years, awarded as Employee of the Month many times and highly skilled, talented, and deserving employee. Moreover, he is the best on numerous software and technology platforms. He is also serving a crucial client since his joining now, and suddenly, he resigns from the company due to a lack of opportunities.
Here, John is one of the company’s best employees. He is highly trained and educated and is managing the client exceptionally. Now with his resignation, what will be the losses to the company
- The company invested in a training program for him. This will all go in vain.
- Knowledge transfer of the current client may not be absolute.
- It will set a precedence for others.
- Training a new employee may unsettle the client.
- Recruitment costs are always involved when you are looking for replacement.
To tackle these situations, Attrition Management is essential. To ensure and retain the company’s best employees to have a minimum resignations rate.
Now, let’s talk next step how we can successfully control Attrition?
3. How can we control Attrition?
- Hire the best people for the right job
The HR department needs to evaluate job descriptions minutely and find candidates who are a best fit as per job requirement and cultural fit. ensuring they have the appropriate skills and personality to keep up with the job and organisation.
- Show them opportunities
If employees feel they do not see a future within the company, they will look for better opportunities elsewhere.
- Provide them with benefits
Firms that give the most benefits to their employees are more likely to hold them. Some of these can be performance bonuses, paternity/maternity leave and flexible working hours. Health benefits are most essential, followed by retirement funds. The current pandemic situation has also provided employees with an opportunity to work from home, and that can undoubtedly be added as a benefit for the employees.
- Lead with trust
If employees trust that a firm is moving in the correct direction, they are less likely to move out. Open communication is crucial to build that trust and will cultivate a sense of ownership throughout a company.
- Creating the best work environment
Any work environment that makes people feel involved and honours diversity will encourage employees to stay longer.
- Prioritize work-life balance and make them feel valued
It would be best if you accepted that your employees have a life outside of work. Working remotely and Flexible schedules are the ways. Recognition of employee’s work and an appropriate rewarding system also helps employees to stay engaged and feel motivated.
Take regular feedback from Managers, TLs from employees.
Keeping your best employees requires significant effort.
First, you must make your organization talent worthy. Then you must motivate your employees and ensure their high engagement.
However, it is worthy of time and effort because employee engagement is the key to improved business results.
Meredith Bodgas from Assignment Masters says a golden rule for keeping the employees’ content and happy:
“Value your employees, and they will surely value your customers.”
- Hire the best people for the right job
Join us today for a never-ending growth because we believe in: “KEEPING U FIRST”