attrition in it sector

8/7/2019 attrition in it sector

1/17

Presentation on

Reasons for Attrition in IT's And itsPrevention

By

Abhay S BhatiaManoj Mehta

Nikhil Iyer


2/17

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

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

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


3/17

But then theres the real world. And in the real

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

likely to stay the longest?

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

industry is segmented into Global Consulting or ProductDevelopment companies. With the increased offshoreprojects hitting, a lot of technological companies retrying to acquire as many projects as possible. Lots ofProjects coming to INDIA, due to cheap labour and

professional excellence proved.


4/17

Ifyou compare the increasing demand for the IT

professionals and the jobs that need to be offshore in

India, there is a huge dissonance in the demand and the

supply.Naturally,acquirrng talents become difficult in sucha situation. Since the inflow of fresh talent is relatively

less, the same professionals in the market keep moving

from one companies to another.


5/17

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

Salary hike

Promotion

Less onsite opportunities or may be onsiteopportunities

Brand

Job satisfaction Facilities

Working Environment

Work Pressure.


6/17

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

Transformation in lifestyles, identity and family

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

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

women leave their job either after marriage or becauseof long working hours, work stress and other socialpressures.


7/17

Attrition is higher coz salary is dynamic

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

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

Some companies & their domain are exciting.

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

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

boss.


8/17

Step to Reduce Attrition:1) Focus on Exit-interviews

Employers should not ask

why are you leaving?

rather they should askwhen you start searching for a job?

Getting an insight and inside scoop can really help. It givesinformation about internal problems,employee;s perceptions of theorganization, underlying workplace issues and colleagues.

2) Let employees know that their opinions are valuable. Ask them toopen up. Listen to employees ideas; never ridicule them.

3) Compliment and Thankyou employees for their valuablecontribution. Recognize and celebrate their success.


9/17

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

levels. Offer performance feedback and praise good

efforts and results.Criticise but Praise publicly.

5) Give them job security

6) Providing opportunities of learning by constantly

upgrading the skills of employees

7) Paying attention to employees personal needs andparticipation

8) Gauging the needs of the employees through open

communication and polls.


10/17

9) Communicate goals, roles and responsibilities so that

people know what is expected from them and feel a

part of crowd.

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

future or not to look for better opinion.

11) Encourage humor & laughter in workplace to deal

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

critical in voice based transaction.


11/17

12)Feeling valued by their managers or superior in the

workplace is a key to high employee motivation and

morale.

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

of achievers would also inspire others to try hard and

put in their best.

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

between them.


12/17

15)The attrition battle could be won by focusing on

retention, making work a fun place, ongoing learning

and treating applicants and employees in the sameway as subordinate.

16)Infusing creativity in the routine job and

communicate the firms larger objectives and goals to

each employee to achieve that objective.

17)It has been observed that attrition rate was lower

when employees perceived their workplace as a fun

environment and viewed their jobs as enjoyable.


13/17

18) Monotony and stress have contributed to increased

attrition rate. So keep changing the duties or position

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

important.

20) Identify the key employees of the firm or categorize

the employee according to need of the firm. It will

help you to customize your retention program.


14/17

21)Your staff members must feel rewarded, recognizes

and appreciated. Monetary rewards, bonuses and gifts

make the thankyou even more

appreciated.Undersstanble raises tied toaccomplishments and achievements help to retain

staff. Offer an attractive, competitive, benefits

package.

22)Select the right people in the first place through

behaviour-based testing and competency screening.


15/17

23) Demonstrate respect for employees at all times.

Treat the employees well & provide a dignity of job.

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

priority basis and kept confidential as far as possibleand the senior management should meet the employee

to discuss his reason for leaving and evaluate if his

issues bear merit and whether they can be resolved.

25)People want to enjoy their work. Make work

fun.Engage,employ the specials talents of each

individual.


16/17

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

the points mention above for the same and can do

best from our end to reduce attrition rate in IT-

Sector.


17/17

The EndThank YouAbhay S Bhatia

Manoj MehtaNikhil IyerXMBA 11

Documents

attrition in it sector