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Presentation on Why Attrition Rate is Presentation on Why Attrition Rate is more in IT-Sector & what are the step more in IT-Sector & what are the step

taken to reduce it?taken to reduce it?

ByBy

Supriya RodeSupriya Rode

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Defining attrition:Defining attrition: A reduction in the number of A reduction in the number of employees through retirement, resignation or death.employees through retirement, resignation or death.

Defining Attrition rate:Defining Attrition rate: The rate of shrinkage in size or The rate of shrinkage in size or number.number.

Introduction:Introduction: In the best of worlds, employees would In the best of worlds, employees would love their jobs, like their coworkers, work hard for their love their jobs, like their coworkers, work hard for their employers, get paid well for their work, have ample employers, get paid well for their work, have ample chances for the advancement, and the flexible schedules chances for the advancement, and the flexible schedules so they could attend to personal or family needs as and so they could attend to personal or family needs as and when necessary.when necessary.

CCBut then there’s the real world. And in the real But then there’s the real world. And in the real

world,employeesa ,do leave, either because they want world,employeesa ,do leave, either because they want more money, hate their co workers, want a change or more money, hate their co workers, want a change or because their spouse gets a dream job in another because their spouse gets a dream job in another state.So,what does all the turnover cost? And what state.So,what does all the turnover cost? And what employees are likely o have the highest turnover? Who employees are likely o have the highest turnover? Who is likely to stay the longest?is likely to stay the longest?

Information Technology as an industry is very dynamic, Information Technology as an industry is very dynamic, lots of staunch competitors in the same field. IT as an lots of staunch competitors in the same field. IT as an industry is segmented into Global Consulting or Product industry is segmented into Global Consulting or Product Development companies. With the increased offshore Development companies. With the increased offshore projects hitting, a lot of technological companies re projects hitting, a lot of technological companies re trying to acquire as many projects as possible. Lots of trying to acquire as many projects as possible. Lots of Projects coming to INDIA, due to cheap labour and Projects coming to INDIA, due to cheap labour and professional excellence proved.professional excellence proved.

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If you compare the increasing demand for the IT If you compare the increasing demand for the IT professionals and the jobs that need to be professionals and the jobs that need to be offshore in India, there is a huge dissonance in offshore in India, there is a huge dissonance in the demand and the supply.Naturally,acquirrng the demand and the supply.Naturally,acquirrng talents become difficult in such a situation. talents become difficult in such a situation. Since the inflow of fresh talent is relatively Since the inflow of fresh talent is relatively less, the same professionals in the market keep less, the same professionals in the market keep moving from one companies to another.moving from one companies to another.

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Lot of things attract such individuals as well as there are Lot of things attract such individuals as well as there are reason for attrition as follows:reason for attrition as follows:

Salary hikeSalary hikePromotion Promotion Less onsite opportunities or may be onsite Less onsite opportunities or may be onsite

opportunitiesopportunitiesBrandBrandJob satisfactionJob satisfactionFacilitiesFacilitiesWorking EnvironmentWorking EnvironmentWork Pressure.Work Pressure.

F F Work culture and management-IT industry is known Work culture and management-IT industry is known

for its high pressure work atmosphere and long for its high pressure work atmosphere and long working hrs, which create high levels of working hrs, which create high levels of stresss,employee and high attritions rates.stresss,employee and high attritions rates.

Transformation in lifestyles, identity and familyTransformation in lifestyles, identity and familyLack of good leaders who can motivate and guide Lack of good leaders who can motivate and guide

their team well-IT managers lack both the time and their team well-IT managers lack both the time and tools needed for assessing their team members and tools needed for assessing their team members and taking corrective action to improve their performance taking corrective action to improve their performance which is directly related to job satisfaction.which is directly related to job satisfaction.

Increasing percentage of women employees-Most Increasing percentage of women employees-Most women leave their job either after marriage or women leave their job either after marriage or because of long working hours, work stress and other because of long working hours, work stress and other social pressures.social pressures.

GGAttrition is higher coz salary is dynamic…Attrition is higher coz salary is dynamic…There is more demand and less supply so people are There is more demand and less supply so people are

getting what they want. One sure way to prevent this is getting what they want. One sure way to prevent this is to provide excellent working condition and make the to provide excellent working condition and make the organization a people centric place. organization a people centric place.

PDC-Product Development Companies(Most of the IT PDC-Product Development Companies(Most of the IT people in IT services would like to move PDC as the people in IT services would like to move PDC as the kind of work would be challenging & exciting)kind of work would be challenging & exciting)

Some companies & their domain are exciting.Some companies & their domain are exciting.Quality of the work Some companies are offering its Quality of the work Some companies are offering its

employees the high end quality work.employees the high end quality work.Most employees don’t leave but quit because they did Most employees don’t leave but quit because they did

not like their job, they quit because they did not like not like their job, they quit because they did not like their boss.their boss.

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Step to Reduce Attrition:Step to Reduce Attrition:1) Focus on Exit-interviews1) Focus on Exit-interviewsEmployers should not ask Employers should not ask why are you leaving?why are you leaving? rather they should askrather they should askwhen you start searching for a job?when you start searching for a job?Getting an insight and inside scoop can really help. It gives Getting an insight and inside scoop can really help. It gives

information about internal problems,employee;s perceptions of the information about internal problems,employee;s perceptions of the organization, underlying workplace issues and colleagues.organization, underlying workplace issues and colleagues.

2) Let employees know that their opinions are valuable. Ask them to 2) Let employees know that their opinions are valuable. Ask them to open up. Listen to employees ideas; never ridicule them.open up. Listen to employees ideas; never ridicule them.

3) Compliment and Thank you employees for their valuable 3) Compliment and Thank you employees for their valuable contribution. Recognize and celebrate their success.contribution. Recognize and celebrate their success.

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4)Setting up a feedback mechanisms to maintain 4)Setting up a feedback mechanisms to maintain consistency in performance and high motivation consistency in performance and high motivation levels. Offer performance feedback and praise good levels. Offer performance feedback and praise good efforts and results.Criticise but Praise publicly.efforts and results.Criticise but Praise publicly.

5) Give them job security5) Give them job security

6) Providing opportunities of learning by constantly 6) Providing opportunities of learning by constantly upgrading the skills of employeesupgrading the skills of employees

7) Paying attention to employees personal needs and 7) Paying attention to employees personal needs and participationparticipation

8) Gauging the needs of the employees through open 8) Gauging the needs of the employees through open communication and polls.communication and polls.

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9) Communicate goals, roles and responsibilities so that 9) Communicate goals, roles and responsibilities so that people know what is expected from them and feel a people know what is expected from them and feel a part of crowd.part of crowd.

10)Keep employees inform about the happening in the 10)Keep employees inform about the happening in the company so that they will be confident about the company so that they will be confident about the future or not to look for better opinion.future or not to look for better opinion.

11) Encourage humor & laughter in workplace to deal 11) Encourage humor & laughter in workplace to deal with stress which will ensure that the employees are with stress which will ensure that the employees are happy which gets reflected in their services especially happy which gets reflected in their services especially critical in voice based transaction.critical in voice based transaction.

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12)Feeling valued by their managers or superior in the 12)Feeling valued by their managers or superior in the workplace is a key to high employee motivation and workplace is a key to high employee motivation and morale.morale.

13)Not hiring employees who have a history of jumping 13)Not hiring employees who have a history of jumping from one job to other. Recognizing the contributions from one job to other. Recognizing the contributions of achievers would also inspire others to try hard and of achievers would also inspire others to try hard and put in their best.put in their best.

14)Group cohesiveness also helps in copping with the 14)Group cohesiveness also helps in copping with the attrition. Built teams and generate competition attrition. Built teams and generate competition between them.between them.

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15)The attrition battle could be won by focusing on 15)The attrition battle could be won by focusing on retention, making work a fun place, ongoing learning retention, making work a fun place, ongoing learning and treating applicants and employees in the same and treating applicants and employees in the same way as subordinate.way as subordinate.

16)Infusing creativity in the ‘routine’ job and 16)Infusing creativity in the ‘routine’ job and communicate the firm’s larger objectives and goals to communicate the firm’s larger objectives and goals to each employee to achieve that objective.each employee to achieve that objective.

17)It has been observed that attrition rate was lower 17)It has been observed that attrition rate was lower when employees perceived their workplace as a ‘fun when employees perceived their workplace as a ‘fun environment’ and viewed their jobs as enjoyable.environment’ and viewed their jobs as enjoyable.

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18) Monotony and stress have contributed to increased 18) Monotony and stress have contributed to increased attrition rate. So keep changing the duties or position attrition rate. So keep changing the duties or position of employees after fixes period.of employees after fixes period.

19) Induction program and Exit interview are very 19) Induction program and Exit interview are very important.important.

20) Identify the key employees of the firm or categorize 20) Identify the key employees of the firm or categorize the employee according to need of the firm. It will the employee according to need of the firm. It will help you to customize your retention program.help you to customize your retention program.

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21)Your staff members must feel rewarded, recognizes 21)Your staff members must feel rewarded, recognizes and appreciated. Monetary rewards, bonuses and gifts and appreciated. Monetary rewards, bonuses and gifts make the thank you even more make the thank you even more appreciated.Undersstanble raises tied to appreciated.Undersstanble raises tied to accomplishments and achievements help to retain accomplishments and achievements help to retain staff. Offer an attractive, competitive, benefits staff. Offer an attractive, competitive, benefits package.package.

22)Select the right people in the first place through 22)Select the right people in the first place through behaviour-based testing and competency screening.behaviour-based testing and competency screening.

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23) Demonstrate respect for employees at all times. 23) Demonstrate respect for employees at all times. Treat the employees well & provide a dignity of job.Treat the employees well & provide a dignity of job.

24)If a key employee resigns, it should be taken up on a 24)If a key employee resigns, it should be taken up on a priority basis and kept confidential as far as possible priority basis and kept confidential as far as possible and the senior management should meet the and the senior management should meet the employee to discuss his reason for leaving and employee to discuss his reason for leaving and evaluate if his issues bear merit and whether they can evaluate if his issues bear merit and whether they can be resolved.be resolved.

25)People want to enjoy their work. Make work 25)People want to enjoy their work. Make work fun.Engage,employ the specials talents of each fun.Engage,employ the specials talents of each individual.individual.

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So if we want to try to reduce attrition we can So if we want to try to reduce attrition we can take the points mention above for the same take the points mention above for the same and can do best from our end to reduce and can do best from our end to reduce attrition rate in IT-Sector.attrition rate in IT-Sector.

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The EndThe End