attrition level in an organization
DESCRIPTION
The presentation is a work that highlights the workforce of an organization and issues related to them. It shows the reasons why do people leave an organization and its possible causes.TRANSCRIPT
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�Over 1 billion people & the largest
democracy in the world
� Less than a third in size of US- almost four
times the population
� Largest English speaking workforce after
USA…nearly 25% with higher secondary
education
� Average age: 26 yrs(China-36 years). 67%
people are below 35 years
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� Add 2m graduates and 460000 engineers
every year…1.5x China and 2x of US
�World renowned higher education institutes ,
e.g. IITs, IIMs
�GDP growth 2x of US and UK
� 1m IT Enabled Services (ITES) jobs and the
forecast is 2m by 2008
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“India is a democracy with a young & large
English speaking middle class, with strong
technical and mathematical aptitude and
good work ethic.”
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� Attrition of HR can be defined as reduction in
the number of employees through retirement,
resignation or death
� In other words, attrition can be defined as the
number of employees leaving the organization
� "Why our attrition rate is higher than other
company?".
� The company cannot afford to lose its best
employee to competitors.
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�An ideal situation while working in a office :
� Employer's goodwill in the market
� Remuneration
� Future growth
�Working condition
� Co-workers
� Future stability with the organization
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�HR team conducts EXIT interview when an
employee left the job to get the information
about one's decision to leave an organization
� Zero Attrition
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� Causes of Attrition
� Attrition Rates
� Effects of attrition on employees and
organization at large
� Cost
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� Advantages and disadvantages of attrition
� Key to reduce attrition
� Current scenario
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� Adjustment with different cultures
� Encountering new problems
� Exposure to new challenges
�Healthy competition
� Low morale
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� Brand Image
� Customer relationship
�Disruption in work
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� Loss of knowledge capital
�Delay in execution of projects
� Loss of production
� Increasing cost of recruitment
� Burden burn-out on existing employees
� Internal knowledge is being shared outside
� Existing team may get defocused
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Attrition is a boon in
disguise…!!
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Benefits
� Removes bottle-neck
� Creates space for the entry of new talents
� Assists in evolving high performance teams
� Infuses new blood into the organization
� Enhances ability for execution
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Benefits
�New thoughts, ideas, and hence, more
innovation and creativity
� Knowledge of best practices from across the
industry is brought in
� Challenging status quo
� lower cost with fresh skills and competencies
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�Growth opportunities
�Mismatch of job profile
�Organizational culture
� People “Quit their Boss”
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� Job stress and work life imbalance
�Working hours
� Ethical issues
� Lack of recognition
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� Talent lost
� Recruitment cost
� Training cost
�Motivational cost
� Lost Productivity cost
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�Attrition =
(No. of employees who left in the year /
average employees in the year)
x 100
� Thus, if the company had 1,000 employees in
April 2004, 2,000 in March 2005, and 300 quit
in the year, then the average employee
strength is 1,500 and attrition is 100 x
(300/1500) = 20 percent
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Retention : Managing PeopleRetention : Managing People
� Employee retention is a process in which the
employees are encouraged to remain with
the organization for the maximum period of
time.
� Employee retention is beneficial for the
organization as well as the employee.
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Keys to effective retention:
Compensation:
� Salary
� Bonus
� LTA or Paid Holidays
�Health Insurance
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Recognition:
� Employee Evaluation
� “Never punish harshly for mistakes but
always reward for good work”
�Not only money but RESPECT matters
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Motivation:
� Importance
�Good work culture
� Recreation facilities
� Employee bonding
� Second Home
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Fun @ Workplace:
�Occasional Stress Relievers
� Events
� Picnics
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Growth opportunities:
� Challenging projects
� “ Be a leader and not follower ”
� Creative and Competitive work culture
� Training & Development
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Employee Empowerment:
� Responsibilities should match with authority
� Participative Decision Making
� Communication with top management
� Encouraging suggestions and employee
engagement in the organization
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Transparent Work Culture:
� Facilitates accountability, trust,
communication & responsibility
�Discourages work-politics
�Healthy work environment = Satisfied
employees = Success of Organization
�No communication errors
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Current Scenario:
�Global Meltdown
�Negative growth
�GOOD NEWS FOR THE RECRUITERS:
� “The Best Time to Recruit”
&
� “Employees dare not feel to leave the
organization”
� The attrition rates in single digit figures
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� For IT Industry which had attrition rate
between 20-40 % is now below 20%.
�HR Executives are now less concerned about
Attrition and they are planning Layoffs to
maintain profitability
�Even the IIM Graduates are Experiencing Even the IIM Graduates are Experiencing Even the IIM Graduates are Experiencing Even the IIM Graduates are Experiencing the Heatthe Heatthe Heatthe Heat
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