Atrition Retention

8/7/2019 Atrition Retention

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Our asset walk out of the door each evening. We have

to make sure that they come back the next morning.

-Narayan.A.Murthy

Prepared by:

SAAD AHMADSUNIL KUMAR

VINAY PATHANIA

ADNAN AHMAD

MANISH KUMAR

IMRAN GOURI

MOHD WASEEM

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CONTENTS

Career and planning and development .

Employee mobility .

Absenteeism .

Employee attrition .

Retention strategies .

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CAREER PLANNING

&

DEVELOPMENT

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CareerCareer ..

A career is a sequence of positions held by a person during the course of his/her

work life.

However, it is more than just the sequence of jobs a person holds Over time. It is theindividually perceived sequence of attitudes and behavior associated with work

related experiences and activities over a persons lif e.

Implications:

y A career ref ers to the diff erent jobs a person holds in his/her lif etime.

y The process and activities that prepare one for a job are parts of a career.

y Job related attitude, values, and beliefs are integral aspects of a career.

y The relationship of a persons self-identity to work is a dimension of a career.

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Career planning .

It involves designing an organizational system for employees of career movement and

growth opportunities, f rom the employment time to the retirement time.

Characteristics:

y Process of human development resources

y Means of managing people to obtain optimum results

y A continuous process, not an event.

yAims to integrate individual and organizational needs 6

Individuals view Organizations view

A process by which one f ixes goals

and lays down the path to these

goals, with a purpose of providing

continuity, order, and meaning to

ones lif e.

Career planning is the helping of

employees to plan their career in

terms of their capacities within the

context of organizational needs.



Need for career planning .

To attract competent persons and to retain them in the organization.

To provide suitable promotional opportunities to the present

workforce.

To enable the employees to develop and make them ready to meet

the f uture challenges.

To correct the mistakes in employee placement.

To increase the utilization of managerial reserves in an organization.

To improve motivation and morale of employees.

To reduce employee dissatisf action and turnover.

To maintain age balance while taking employees up the career path

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Career development .

The activities undertaken by individual employees and the organization to

meet career aspirations and job requirements.

Steps in career development:

Challenging initial jobs: Apparently, initial challenges, particularly if they are

met, stimulate a person to perform well in later part of the career.

Dissemination of career information: information about the career path that

successf ul employees should follow should be disseminated and made

available to all.

Job postings: job postings provide a channel by which the organization lets

employees know what jobs are available and, for f uture ref erences, what

requirements they will have to f ulf ill to achieve the promotion to which they

may aspire. 8



Assessment centers: these are the means to obtain observable evidence of their

ability to do certain jobs. it makes the assessor more aware of what is involved in

the process of development & this awareness can provide valuable insights into

their own career development.

Continuing education & training: the education & training in a career program

include on the job training, educational or skill courses off ered by specialized

institutes or colleges.

Career development workshops: these workshops f requently include self-

diagnostic activities for employees, diagnostics for organization, etc.

Periodic job changes: varied experiences presents new tests to the individual

which, if successf ully surmounted, build conf idence and provide positive

f eedback that can encourage accepting new challenges and greater responsibility.

Sabbaticals (leave granted at intervals): a period of time away f rom the

organization may allow such individuals to develop new, non-work related

interest, to come to terms with the leveling off with the career.

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External mobility .

Mobility ref ers to f reedom of employees to practice their

occupation ( jobs) wherever opportunities exists.

External mobility ref ers to movement of employees f rom one organization to another, seeking better opportunities based on

his skills, requirement and needs.

External mobility occurs when employees are not satisf ied with

there present job and seeks better opportunities in other

organization and if there is not enough scope for internal

mobility or organization does not f ind him competent for

internal mobility.

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Major Reasons for external mobility

.

Employees does not believe in the potential

success of self and the organization.

Lack of appreciation and recognition of

contribution of the employees.

Lack of mutual trust.

Incompatibility of vales and ethics.

Not being heard and valued by the organization.

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Types of External Mobility .

There are two types of external mobility:

� Separation

� Voluntary Retirement Scheme (VRS)

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Separation .

Separation means when the employee leaves theorganization.

There are five kinds of Separation:

1. Resignation

2. Retirement

3. Layoff 4. Retrenchment

5. Dismissal/Discharge

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Resignation .

Resignation or voluntary quit is initiated by theemployee due to personal and prof essionalreasons. Sometimes, an employee may be asked toresign for poor performance or inappropriateconduct.

HR department generally undertakes ExitInterview in order to assess the reasons of separation of the employee so that appropriateactions can be taken by the organization to preventf uture exit of other employee.

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Retirement .

retirement means the termination of the service of an employee.

There are two types of Retirement:

1. Superannuation: An employee on attaining of such age as is f ixed in the contract or conditions of service as the age on attainment of which the employee shall vacate the employment.

2. Premature Retirement : An employee before attaining age of superannuation on medical i.e. if the employee is declared to be

physically or mentally unf it to perform job responsibilities.

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Layoff .

It means the temporary suspension or permanent terminationof employment of an employee or (more commonly) a groupof employees due to the reasons beyond the control of theorganization, such as when certain positions are no longer

necessary or when a business slow-down occurs.

Originally the term layoff ref erred exclusively to a temporaryinterruption in work, as when f actory work cyclically f alls off .The term however nowadays usually means the permanent

elimination of a position, requiring the addition of "temporary" to specify the original meaning.

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Retrenchment .

Ordinarily, retrenchment is discharge of surpluslabor by the employer.

Retrenchment is the termination of service of aworker "for any reason whatsoever", but excludestermination by way of punishment inflictedpursuant to disciplinary action, voluntaryretirement, retirement on reaching the age of superannuation if the contract of employmentcontained such stipulation, non-renewal of thecontract of employment, and continued ill health.

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Dismissal/Discharge .

Dismissal means termination of service of an employee asa punishment inflicted on him by the way of disciplinary

action.

Whereas Discharge means termination of service of an employee otherwise than punishment inflicted on him by

the way of disciplinary action.

E.g. An employee may be dismissed on account of disorderly behavior or f raud and poor performance.

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Voluntary Retirement Scheme (VRS)

It is basically a downsizing strategy of organization.

VRS is a voluntary separation initiated under mutual agreement between the

organization and its employees.

The voluntary retirement scheme(VRS) is the technique to provide overall

reduction in the existing strength of the employees, a technique used by

companies for trimming the workforce employed in the industrial unit.

It is now a commonly method used to dispense off the excess manpower and

thus improve the performance of the organization. It is also known as 'Golden

Handshake' as it is the golden route to retrenchment.

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A business f irm may opt for a VRS

under the following circumstances:-

� Due to recession in the business.

� Due to intense competition, the establishment becomes unviable unlessdownsizing is resorted to.

� Due to joint-ventures with foreign

collaborations.

� Due to takeovers and mergers.

� Due to obsolescence of Product/Technology.

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Process of VRS .

� Identif ication of need of VRS.

� Assessment of implications of VRS for the organization.

� Devising mechanism for VRS.

� Developing understanding with trade unions.

� Formulating rehabilitation for VRS employees.

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Absenteeism .Absenteeism is the term generally used to refer to unscheduled employee

absences from the workplace.

Many causes of absenteeism are legitimatepersonal illness or f amily issues, but

absenteeism also can of ten be traced to other f actors such as a poor workenvironment or workers who are not committed to their jobs. If such absences

become excessive, they can have a seriously adverse impact on a business's

operations and, ultimately, its prof itability.

Possible causes of absenteeism may include: -

Job Dissatisf action,

Ongoing Personal Issues

Chronic Medical Problems.

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Forms of Absenteeism .

CULPABLE ABSENTEEISM:- Culpable absenteeism ref ers to lateness or absence

problems for which the employee should be held responsible because the problems

are within the employees power to address and correct. This type of absenteeism is

addressed through progressive discipline.

The key types of culpable absenteeism are:

Lateness/leave early.

Failure to notify.

Absences without leave

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.

NON-CULPABLE (INNOCENT) ABSENTEEISM:- Innocent absenteeism

ref ers to the absence of employees due to illness or injury for reasons

beyond the employees control.

This does not include absences due to injury due to a work related

injury for which there is a legitimate claim. Innocent absenteeism is

not sub ject to disciplinary action but is approached on the basis of

identifying and understanding the medical needs of the employee and

any restrictions as identif ied by the employees health care practitioner.

This includes modifying the work where possible to ensure the

employee is able to come to work on a regular basis.

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Rate of absenteeism .

The rate is expressed as the percentage of man days lost throughabsence to the total number of man days scheduled in the givenperiod.

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Causes of Absenteeism .

In order to minimize the severity of the problem, it is necessary to determine itsextent, causes

The following reasons may be accounted for absenteeism in industries:-

Sickness is the main reason of absenteeism running as high as 50 % of the

absenteeism in some cases. Industrial accidents and occupational diseases bring about absenteeism, depending

upon the nature of the process and machines used.

Lack of interest or a f eeling of responsibility and worth-wholeness are f undamental

causes of absenteeism.

Af ter pay-day, before and off e r a holiday are some of the contributors of a

absenteeism.

Night shift duties and climates are some of the responsible f actors of absenteeism.

Attitude of mind caused by environmental and sociological f actors.

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Employee attrition .

A reduction in the number of employees through retirement,resignation or death is called Attrition.

Attrition is also called total turn over or wastage rate

C ost of Attritions

y Cost of advertising for new positions.

y the cost and time involved in interviews and background checks.

y costs associated with search f irms or placement agencies.

y relocation costs of new employees.

y Training and orientation cost.

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Calculating Attrition Rate .

In order to calculate the attrition rate, you need to know the exact number of people

who have lef t t h e company and then divide the same by the total number of

employees. By multiplying the answer of this f raction by hundred, you will be getting

your attrition rate number.

Total No. of employee lef t X 100

-------------------------------------------

Total No . of employees present

F or example::

Assume that a particular f irm has 200 employees and that 10 of them have lef t in a particular month.

Then, the attrition rate would be: (10/200)X100 = 5

So, the attrition rate for this company would be 5%.30



.

Keeping the attrition rate under control is

imperative for the progress and consistent

growth of f irms. This can be done by conductingsenior team meetings to understand the needs

of employees, salaries being off ered by

competitors and making some positive,

employee motivation and innovative changes in

the way an organization f unctions

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Employee retention strategies .

It is a burning problem today that most of the employees are leaving the organizations

as they like on account of taking up employments elsewhere. Even in some of the

cases, the employees are not even informing the organizations about their intention to

leave.

This will aff ect badly on the HR policies of the Organization/f irm. To overtake this

problem, major steps have to be undertaken for the retention of the employees in anorganization. Some of the f actors which def initely cause for retention of employees

are embodied below:

y Brand Name: Many of the employees consider the brand name of the

organization for taking up assignments. Employees f eel prestige of the institution

as their personal to run with the organization. Working in a f amous company or

organization, generally makes people to adore with commitment.

y Wage Policy: A systematic wage policy, revision of pay scales in the convenience

intervals, provisions for additional allowances, rewards for extra-ordinary work of

the employees f rom time to time, will def initely catch the employees and more

retention is possible. 32



Career Advancement Schemes: Every employee expects advancement in his

career by way of promotions, grades, and relocation to next higher category or grade

for f urtherance of his interests. A lucrative policy on Career Advancements of employees is much more than enough

for retention of employees in a f irm.

Social Security Measures: Social Security measures are very much obligatory on the

part of any concern to adopt for the welf are of their employees. Employees welf are

schemes, Health Schemes, Group insurance policies, Payments of Bonus, Ex-gratia,

Incentives, Awards, will render much security to its employees.

Conduct Rules: It is also necessary to f rame certain conduct Rules for the interest of

the Institution. The conduct rules must specify the attitude, behavior and conduct of

each and every employee while discharging their duties.

Organizational Culture: Culture is the environment that surrounds us at work all of the

time. culture is a powerf ul element that shapes our work, enjoyment, relationships

and work processes. A congenial organizational culture makes people happy and

retain for ever. It leads to def initely employees retention.

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MUCHO GRACIAS

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Atrition Retention