Employee Retention : A Challenge

A Project in Human Resources Management

Semester VT. Y. B. M. S.

Sydenham College of Commerce and Economics

Employee Retention :

It is a process in which the employees are encouraged to remain with the organization for the maximum period of time or until the completion of the project. Employee retention is beneficial for the organization as well as the employee.

R –EMUNERATE COMPETITIVELYE -NCOURAGEMENT AND EXPECTATIONST – RAINING AND DEVELOPMENTA -NNUAL REVIEW CYCLESI - NFORM AND INVOLVEN -URTURE

Attrition: The gradual reduction of the size of a

work force that occurs when personnel lost through retirement or resignation are not replaced.

Basically means Loss of personnel.

Job is not what the employee expected to be.

Job and person mismatch. No growth opportunities. Lack of appreciation. Lack of trust and support in

coworkers, seniors and management. Stress from overwork and work life

imbalance. Compensation. New job offer.

HR Connect conducted a survey of the HR heads of 22 IT companies, in an effort to determine what these practitioners thought about attrition in their companies.

Top 3 reasons why talent says “I quit”

Dissatisfaction with superiors

Inadequate compensation and benefits

Lack of career development opportunities

While managers predicted the most important motivational aspect of work for people would be money, personal time and attention from the manager was cited by employees as most rewarding for them at work.

American Psychological Association Survey

About.Com Poll

Good coaching from and interaction with my boss 36%

Good compensation and benefits package 18%         

Opportunity to learn new skills 8%                   

Just can't seem to get motivated enough to leave ... 8%

Recognition for a job well done 7%        

Like my coworkers 6%       

Respectful treatment 5%      

Challenging, rewarding, interesting work 3%    

Mission of the company 3%    

Talent and vision of company management team 2%   

Officeteam, a leading staff service, surveyed 567 men and women employed full time in professional environments, when asked what is your number—one concern about your career in 2002? Respondents put work-life balance first

Source: Officeteam, 2002

Who is going to do the work? What knowledge are we about to lose? What skills will we lose? What traditions will change? Is this good?

The market place for good talent will be competitive

The good people will be able to pick and choose their working environment

How do we create an organization in where people want to stick around?

The Old WayThe Old Way HR is responsible for people management We provide good pay and benefits Recruiting is like purchasing Development happens in training programs We treat everyone the same

Source: article “War for Talent”

The New WayThe New Way All managers are accountable for

strengthening their talent pools We shape our workplace, jobs, and strategy

to appeal to talented people Recruiting is like marketing We fuel development through stretch jobs,

mentoring and coaching We affirm our people, but invest differently

in A, B, and C players

Source: article “War for Talent”

Implementation of MIS in Human resource management.

Talent mgmt not to be included instead of TM MIS in HRM

Specific – Detailed and clear.

Measurable – Quantity and unit of measure stated.

Attainable – Can be performed by the team member.

Results-Oriented – An output is produced, not an activity.

Time-Framed – Completed by a definite time.

Hire the Right People

Take the time to do it right (plan!) Determine desired competencies, job skills

and characteristics Utilize behavior based interviewing

techniques Train staff in hiring procedures Assess new employees during probation

period

Retention factors

Source: Love ‘Em or Lose ‘Em, 1999

Rank Retention Items

1 Career growth, learning and development

2 Exciting work and challenge

3 Meaningful work, making a difference and a contribution

4 Great people

5 Being part of a team

6 Good boss

7 Recognition for work well done

8 Fun on the job

9 Autonomy, sense of control over work

10 Flexibility—for example, in work hours and dress code

11 Fair pay and benefits

12 Inspiring leadership

13 Pride in organization, its mission and quality of product

14 Great work environment

15 Location

Key management positions being given to younger people has given rise to inexperienced people managers

Don’t look at attrition merely as a statistic. Read the story behind the numbers

Identify the underlying issues contributing to attrition

Attrition is not only an HR issue … Sensitize line managers towards people issues

Equip front line and first time managers to manage talent related issues

“There is a strong correlation between employee attrition and front line management. A good manager can reduce attrition with in his/her team to near-zero levels if he/she keeps sight of the touch points”