Difference between Attrition and Turnover When does it happens and Control Measures

Definitions-

Attrition- “A reduction in the number of employees through retirement resignation or death”

“Rate of shrinkage in size or number”

Whereas

“The Turnover is Number of employees hired to replace those who left or were fired during a 12 month period in an Organization.”

When does Employee Turnover and Attritions Happens

There is no set level of employee turnover above which effects on the employing individuals in organization become damaging.

. Everything depends on the type of lab our markets in which they compete. Where it is relatively easy to find and train new employees quickly and at relatively little cost (i.e. where the labor market is loose), it is possible to sustain high quality levels of service provision despite having a high turnover rate.

Where skills are relatively scarce, where recruitment is costly or where it takes several weeks to fill a vacancy, turnover is likely to be problematic from a management point of view.

This is especially true of situations in which you are losing staff to direct competitors

Where customers have developed relationships with individual employees as is the case in many professional services organizations.

Some employee turnover positively benefits organizations. This happens whenever a poor performer is replaced by a more effective employee, and can happen when a senior retirement allows the promotion or acquisition of welcome 'fresh blood'

. Moderate levels of staff turnover can also help to reduce staff costs in organizations where business levels are unpredictable month on month. In such situations when business is slack it is straightforward to hold off filling recently created vacancies for some weeks

Factors Affecting Attrition

1) External inequity of compensationExternal inequity arises when an employee realizes that some other employee form different organization put much less efforts than he does but receive higher compensation then him these would feel that he is not getting compensation fairly causes him to quite him the job

2) Working Timing BPO working timing is odd. Family life affects. Female attrition rate in this sector is35%.After marriage comes social and family pressure to adjust work timing and take care of family

3) Career GrowthEmployee look forward to change there job to other places where they can get better opportunity for their progress also problem of mismatch of expectation and qualification of employee. Some see no career and change the job”’ They don’t change the jobs but change the Boss “

4) Higher Education These problem arises when employee are pretty young and aspiring they join the firm becoz of attractive salary but with time they try to move to other sector or higher education

5) Role StagnationAttrition Rate is higher at knowledge level ( middle clerks) in which employee has to do same work again and again which makes him work monotonous and due to lack of responsibility and authority his growth is restricted so move to other company for different roles.

6) Work Life ImbalanceThe scientific approach toward mgmt and organization resulted in structural hierarchy, Exhaustive specialization of jobs, deployment of unskilled employees and unfavorable work conditions lead to high employee turnover, low productive and abseentism

7) Lack of RecognisationWhen employee feel that he is getting due recognition for his achievement a feeling of demotivation and these can cause him to leave the organization

8) Under Utilization of Skills Proper utilization of skills has a tremendous impact on the satisfaction of employee if a work Given to an employee it must be supported by adequate policies and responsibites which enables to move up the career ladder and when there skills and policies is being develop they end leaving the job

9) Performance AssentAn Employee may feel disappoint by the performance appraisal report and feel that he is not been appraised in an unbiased manner. It may happen that he feels that the appraisal process and appraisers are biased Then can cause the employee to put in his papers and leave the organization.

10) Internal Inequity of Compensation

Internal Inequity occurs when the employee feels that the amount of efforts he puts in to his job are much more than what he is rewarded. These cause him to demotivate and nurture feeling of dissatisfaction and eventually resigning his job

11) Business Instability

Many a times when the organization faces some instability with operations an employee might quit his job before he is asked to leave When the organization is down size or acquisitions. Takes place they quite in the worry of whether the organization will retain them or not.

Control Measures For Attrition

In an Environment of rapid growth, globalization and expansion the pressure to attract and retain outstanding employee has become a scary reality for most of the organization

1) Providing something ExtraIt’s always about providing something extra to your employee good salary is something which is a standard in the industry some perks must be giving to the employees for good work performance Perks like foreign Tour sponsored vacations are always welcome gifts

2) Honoring PerformancePerformance based incentives is a must is BPO as the employees get generally picked up with placement hunters

3) Building RelationshipProvide employee with ESOPS which give them feeling that they are inseparable part of organization

4) HR PracticesHR is a critical department in an BPO Conduction Recruitment so that right men fits in right position

5) Consider FeedbackTo differentiate the work ethics and conduct

There are 2 ways

o Employee Tenuro Exit Interview

6) Quality of Work LifeSuccess of organization depends on how it attracts recruitment, motivates and retains it workforce develop there talents and gain comminentElements Related to QWLTasks, Social Environment, Administrative Systems and Relationships Employee and Employer

7) Transparent Work Culture Serves triggers facilitates accountability, Trust building, Communications with peers and seniors

8) Open Door PoliciesEmployee raises there doubts and feeling straight to employer Frequent mailing, Encloses, Newsletters, Intranet and so on…

EWAT Early Warning Attrition Tracker

Divide employees into three categories:1. Green 2. Yellow3. RedGreen - who are not looking for a changeYellow - who might look out after 6 monthsRed - who are looking for a change at the moment

Have a discussion with Red ones, try to understand their needs and address.

If u need further info........feel free to discuss

Attrition rate with IT/ITES sector were 20-25% in india infoys-10%tcs-9%niit-15%hcl-12%

Examples

o ICICI – Initiative taken by the companyCareer diversification- Employee with more than 18 months service are switched to positions in ICICI Group

o After passing the Internal test in BPO industry, skills like customers full illness an rapid responses to customers problems have wide application in competitative markets.

o Neil Soft- Provides Crèches Facilitieso Wipro – Medical Insurance for their employee 24 hours medical

facilitieso Trans works information Services and Zenta Technologies

Accommodations to their senior staff and are Competent for there lower level staff paying entire deposit amount for flats or certain% of Registration fees

o Federal Express-Believes spotting talent and investing Employee with leadership or management potential .

Graphical Representation Of Attrition Rates in Different Sectors:-