Attrition - Vishnu

8/6/2019 Attrition - Vishnu

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ATTRITIONby Vishnu Vardhan


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Whats in this?

What attrition exactly is.

Attrition rate at group level.

Attrition rate at different sectors. Cost of attrition.

Causes for attrition.

Ways to reduce attrition.

Initiatives taken by companies to reduceattrition.


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What is Attrition?


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Attrition is the rate of shrinkage in the size or agradual, natural reduction in membership orpersonnel, as through retirement, resignation, ordeath.

It is Normal and uncontrollable reduction of awork force because of retirement, death,sickness, and relocation.

The drawback to reduction by attrition is thatreductions are often unpredictable and can leavegaps in an organization.


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Employee Attrition at group level


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COSTOF ATTRITION


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Recruitment Costs:The cost ofadvertisements, agency costs, employee

referral costs, internet posting costs.

Training Costs: cost of orientation, cost of

departmental training, cost of time spent bytrainer

Lost Productivity Costs: As the new employee

is learning the new job, the company policiesand practices, etc. they are not fullyproductive.


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NewHire Costs: cost to put the person on the

payroll, establish computer and securitypasswords and identification cards.

*cost of a manager's time spent developing

trust and building confidence in the new

employee's work.

Lost Sales Costs: Calculate the lost revenue by

multiplying the number of weeks the position

is vacant by the average weekly revenue per

employee.


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Causes ofEmployee Attrition


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External inequity ofcompensation: ariseswhen an employee realizes that some other

employee from a different organization puts inmuch less efforts than he does, but receives amuch higher compensation than him.

WorkTimings: The work timings in BPO arevery odd. This affects the family life of theemployee.

CareerGrowth: some employees see nocareer growth in their sector, so they move onto other companies.


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HigherEducation: This is a problem withpretty young and aspiring employees. they tryto move on in the name of higher education.

Role stagnation: Attrition rate is higher where

the employee has to do the same work againand again.

Worklife imbalance: rigid structural hierarchy,exhaustive specialization of jobs, deploymentof unskilled employees and an unfavorablework environment.


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Lackofrecognition: When an employee feels

that he is not getting due recognition for his

achievement, a feeling of demotivation creeps

into him.

Under-utilization of skills: Proper utilization of

skills has a tremendous impact on the

satisfaction of employees.

Performance assessment : Flawed appraisal

system and biased appraisers.


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WAYSTOCONTROL

ATTRITION


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Providing Something Extra:Good salary,

perks, rewards for their good performances.

Honoring Performers: Performance based

incentives, best employee awards,

Building Relationship:

employee management relations,

employee employee relations


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HR Practices: conducting the recruitment,

facilitating counseling for employees.

Considerfeed back: during the employees

tenure, and through exit interviews.

Quality ofworklife: Occupational health care,

Suitable working time, Appropriate salary.


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Transparentworkculture: accountability,

trust, communication, responsibility, prideacross the organisation.

Office-Tigermodel: it tries is to instill a senseof pride in its employees. Make the employees

feel proud of doing the work they do.


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INITIATIVESTAKEN

BYCOMPANIES

TOREDUCEATTRITION


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ICICI OneSource has a programme whereby

employees who have been with the company for

more than 18 months can switch to positions in

the ICICI.

Wipro's Spectra mind has introduced medicalinsurance for their employees and they also

provide 24-hour medical facilities for employees.

Zenta Technologies which are already providing

accommodation to their senior staff are

contemplating this for lower level staff.


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E-Funds International is focusing on social and

sporting events such as organizing six-a-side

soccer games and cricket matches.

Federal Express identifies employees with

leadership or management potential and then

assigns senior management positions.

Intel Technology has a direct communication

programme running, the CEO maintains

accessibility with employees through blogging.


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Adobe India promotes the spirit of research

by giving moral and financial support toemployees who have business ideas.

IBM executive MBA programmes and Webbased learning tools help in training the

employees to be better managers. Also the

company sends the senior level employees to

Wharton, Stanford and Harvard.


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AnyQueries?


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Tons of Thanks

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Attrition - Vishnu