understanding and reducing employee attrition

Who is responsible for it?

Attrition

Copyright 2013 | Saigun Technologies Pvt. Ltd. 2

An Introduction

HR Heads are worried about employees leaving their organizations.

Not only is it COSTLY to lose trained employees but their REPLACEMENTS are NOT EASY TO COME BY.

Hence, Human Resources strives hard to keep attrition at the minimum.

Extensive interviews with HR directors at 30 companies found that most companies have little real understanding

of why employees leave…

Greg Weiss

(An HR consultant and principal of Human Management)

Source: Article from ww.zdnet.com.au

http://www.zdnet.com.au/

Who is Responsible for Attrition?

3 Copyright 2013 | Saigun Technologies Pvt. Ltd.

Results of poll from www.citehr.com

Poll Result:

http://www.citehr.com/

o Personal reasons o Family issues o Location preference o Company brand o Peer relationships

Only 8% HR professionals felt that employees leave organizations on their own,

but why do they leave?


01. Employees as a Reason for Attrition

Conduct employee satisfaction surveys regularly, they’ll help: Identify critical gaps in employee

perception Identify important trends Help define future HR guidelines

What to do?

Use an Employee Satisfaction Survey Tool

o Meeting employees’ expectation is a difficult task, most managers cannot do it effectively and consistently

o Satisfying employee needs is often

given a lower priority o Managers lack appropriate tools to

manage employee tasks

02. Supervisor or Line Manager as a Reason for Attrition


Immediate managers cause 38.15% of Attrition

It confirms my theory that employees don’t leave their job or company… They leave their manager.

Wayne Hochwarter

(Associate Professor of Management in the College of Business at Florida State University)

HR should continuously train managers in handling employee expectations

HR should provide them with the

necessary tools An online Manager Services solution to

allow managers to constantly counsel employees

What to do? Why?

HR should also be able to track changes in employee performance rating, gaps between employee and manager performance, sudden increase in paid-time-off and should be

prepared to act quickly if any visible trends are evident.

All companies want to become the ‘best paying employer’, but market forces, tough competition and a slow economy dictate otherwise

Balancing P&L and employee compensation shall always be a nightmare for them given the high cost of talented employees.


03. Compensation or Job Profile as a Reason for Attrition: The Problems

54.82% say that ‘Compensation and Job Profile’ are the primary causes of attrition

Disparity in the compensation packages is bound to occur and a mis-matched job profile increases

Likelihood of a satisfied and motivated

workforce increases

Fair and transparent system

to capture employee

performance

03. Compensation or Job Profile as a Reason for Attrition: The Solutions


Convince employees that they are compensated in direct proportion to their productivity

Each individual should be assigned SMART (Specific, Measurable, Achievable, Reviewable and Time Based) goals and you could cascade these from

organization objectives

Employees work on goals that are aligned to the

company objectives

Adopt a fair and transparent compensation policy where each employee gets his/ her dues based on company, team & individual performance

Compensation and Job Profile

become manageable

reasons

Thank You

Copyright 2013 | Saigun Technologies Pvt. Ltd.

www.empxtrack.com

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