WHAT IS ATTRITION RATE ?
Causes of Attrition
• Job is not what the employee expected to be
• Job and person mismatch
• No growth opportunities
• Lack of appreciation
• Lack of trust and support in coworkers, seniors and management
• Stress from overwork and work life imbalance
• Compensation
• New job offer
Various Costs Associated With Employee Attrition
• Recruitment Costs
• Training Costs
• Lost Productivity Costs
• New Hire Costs
• Lost Sales Costs
Organizational strategies to manage employee attrition
• 1. Show employees that you have an interest in their success
• 2. Allow employees the room to develop their skills
• 3. Give employees a clear idea of the long-term goals of the company
• 4. Measure soft skills
• 5. Fight turnover with smart training
• 6. Develop your management team
• 7. Weed out poor performers in non-management ranks
• 1. Show employees that you have an interest in their success
• 2. Allow employees the room to develop their skills
• 3. Give employees a clear idea of the long-term goals of the company
• 4. Measure soft skills
• 5. Fight turnover with smart training
• 6. Develop your management team
• 7. Weed out poor performers in non-management ranks
Strategies to reduce attrition in BPO firms
At the time of Recruitment
At Office
Night Shifts
At the time of Recruitment
At Office
Night Shifts
Is attrition always bad for the organization?
• Attrition rates are considered to be beneficial in some ways:
• Excessive manpower costs
• Attrition of non performers
• New employees bring new ideas
• Some employees have a negative influence
• Attrition rates are considered to be beneficial in some ways:
• Excessive manpower costs
• Attrition of non performers
• New employees bring new ideas
• Some employees have a negative influence
Calculation of Attrition Rate:
Attrition rate
• Attrition rate can be calculated as follows: -
Attrition rate
• Attrition rate can be calculated as follows: -
Attrition = (No. of employees who left in the year / average employees in the year) x 100
Attrition rates in Different Sectors
Attrition rates in Wipro, Satyam, Infosys and TCS
• Wipro: The attrition rate of wipro is 16.2% during the last quarter of 2006-07. On annual basis, the attrition rate of wipro BPO was 48 %. The main reasons being told are the odd working hours and the higher studies. Wipro’s attrition rate is the highest in the industry.
Is HR a cause of attrition?
• HR’s attitude: I want bonded slaves
• Lack of clarity or no HR polices: Mood-based policies?
• Salary and other damages?
• Long working hours: A thing to boast of?
• Team work: More work?
• Exit interview: Just a formality?
Attrition: Not just an HR issue
• Accept attrition
• Invest in top performers
• Career development plan
• Employee relations
• Exit interviews
Case study
• Knoah Solutions: -
• Training focus
• Recruitment pattern
• Career growth
• Doing away with hierarchy
• Knoah Solutions: -
• Training focus
• Recruitment pattern
• Career growth
• Doing away with hierarchy
Conclusion
• Attrition is here to stay irrespective of the organization or the sector. With different factors involved it is becoming increasingly difficult to bring attrition under control. Its not just the HR which should take the onus. It’s the collective responsibility of every department of the organization to ensure that they meet the employee’s expectations and do their best to retain the best talent which is hard to come by in today’s world of cut – throat competition.
• Attrition is here to stay irrespective of the organization or the sector. With different factors involved it is becoming increasingly difficult to bring attrition under control. Its not just the HR which should take the onus. It’s the collective responsibility of every department of the organization to ensure that they meet the employee’s expectations and do their best to retain the best talent which is hard to come by in today’s world of cut – throat competition.
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