EMPLOYEE ATTRITION

ORGANIZATION CONCERN

What is Attrition?
Normal and uncontrollable reduction of a work force because of retirement, death, sickness, and relocation. It is one method of reducing the size of a work force without management taking any overt actions. The drawback to reduction by attrition is that reductions are often unpredictable and can leave gaps in an organization.

Types of Attrition
ATTRITION

FUNCTIONAL ATTRITION

PREVENTABLE ATTRITION

Why Attrition Arises?

The personal touch is missing People don't get integrated Performance goals are unclear Reward systems are not transparent

Why people leave ?

Compensation/Benefits Career path/growth opportunities

Relation with Seniors/Management

Sense of belongings Family Reasons/ Health issues etc

How to calculate Attrition Rate ?

Total number of resignations per month divided by ( Total number of employees at the beginning of the month plus total number of new joinees minus total number of resignations) multiplied by 100

Managing Attrition
Managing Attrition through raising Employee Self Esteem Motivation Delegation

Motivation The Art Of Inspiration

Motivation

is the inner power or energy that pushes one towards performing his job. Motivation strengthens the ambition, increases the initiative and gives direction,courage ,energy and the persistence to follow ones goals

Delegation The Art of Working through Others

Delegation

is Management Delegation is the passing of authority to perform a role or set of tasks to someone lower down in the hierarchy of the company Delegation of authority creates a sense of belongings among the employees thus reducing the attrition rate.

Employee Retention

Employee retention involves taking measures to encourage employees to remain in the organization for maximum period of time. Retention is an approach in making the people stick to the company.

How to Improve Retention

Measure soft skills People skills should also be evaluated apart from their technical and financial skills. Fight turnover with smart training The training should be relevant to their jobs and they should not think it a waste of time.Training should be used to broaden the experience. Give employees a clear idea of the long term goals of the company The company should communicate with its employees effectively about where it is going and what directions it wants to take.

Allow employees the room to develop their skills The employee should not feel trapped in a narrow job function so mission-critical that there is no scope for their growth. Develop management team Employ managers who can craft a compelling game plan, communicate effectively with their teams and deploy initiatives that are consistent with company strategy.

Benefits of Attrition
Infuses new blood into the organization New thoughts,ideas and hence more innovation and creativity at work. Enhances the ability for execution of work

Study of Staff Attrition at SHAHI EXPORTS PVT. LTD. FARIDABAD

Reasons of Attrition for the period of 2006- 2008

12% 21% Career growth family&personal reasons higher studies 15% 46% 6% salary & growth seniors

Attrition Rate from the year 2006 - 2008

12% 32% 18% 3 yrs & above 2 - 3 yrs 1 - 2 yrs less than 1 year

38%

These slides were based on my findings from the last month JUNE 2008

Conclusion How to manage Attrition

Compensation and Management: Compensation and Management must be managed based on the KSAs (Knowledge, Skills, Attitude and Experience) of the employees. Create opportunities for employees: The Company has to create growth opportunities for employees to enhance their learning experience and earning abilities.

Engaging employees : Employee must be engaged on continuous basis and they should not get get bored with their work, which can be managed through internal transfers and training from time to time. Feel valued in the organization: Non- financial rewards,a pat on the back in time and celebrating small achievements with great fun fare will help employees feel valued in the organization.

THANK YOU

PRESENTED BY : SHREYA AGARWAL

BBA(CAM)
DAVIM (IP UNIVERSITY), FARIDABAD