Essay, Pages 4 (972 words)
Kinds of Attrition
Voluntary attrition takes place when the employee leaves the organization by their own will. Pull factors like higher emoluments elsewhere, better opportunities for growth and promotion, etc. are responsible for this kind of attrition.
Involuntary attrition takes place when the employees leave the organizations due to some negative forces or push factors like faulty promotion policy, biased performance appraisal, etc.
It takes place due to the rules and regulations of the government and that of the organization as well.
It includes attrition taking place due to attaining the age of retirement, completion of tenure, etc.
Internal causes of Attrition
These causes are pertaining to the internal environment of an organization. Therefore, they are controllable.
- Insufficient salary
- Delay in payment
- No / delayed increment
- Wage compression
- Biased promotion
- No / delayed promotion
- Forceful transfer
- Transfer to a place employee is not willing to go
Workplace Infrastructure & amenities
- Lack of hygiene
- Lack of basic facilities like water, canteen, etc.
- Monotony of task
- Task ” labour mismatch
- Team issues
- Lesser job autonomy
- Instability in leadership
- Leading to confusion related to directions and commands which generate frustration among the workforce.
Lack of Flexibility
- Lack of flexibility in timing, choice of task etc.
- Introduction of new technology
- Employees incompetency / unwillingness to learn and understand
Lack of job security
- Fear of being expelled/ retrenched/terminated
- Faulty performance appraisal
- Underestimation of performance
- Power distance & politics
- Communication gap between management and workforce
External causes of Attrition
These are the causes which are beyond the control of an organization as they belong to the external environment.
These causes may be related to:
- Better pay
- Chances of promotion
- Better perks
- More fringe benefits in other organizations
- End of life
- Shift of family
- Mental imbalance
- Over – sensitivity
- Wish to go abroad
- Attrition of the group members
Effects of attrition
Effect on Employer/ Organization
- Loss of productivity
- Loss of quality
- Increase in cost
- Loss of consumers and decrease in brand loyalty
- Loss of goodwill
- Loss of secrecy in case the key employees leave the organization
- Loss of key ” personnel
- Lack of competitiveness
Effect on employee
- Stress from new job
- Monetary loss
- Effect on career
- Effect on family life
- Loss of skill- if the gap between quitting from one organization to other is long
- Emotional loss, if the bonding with the staff of the previous organization was good
Costs associated with Employee Attrition
Attrition results in an increase in costs. These costs may be related to
- Cost of Exit Interview
- Recruitment costs- Cost of advertisements, agency costs, employee referral costs, Internet posting costs, cost of the inner enrollment specialist’s a great opportunity to comprehend the position prerequisites, create and execute a sourcing procedure, audit hopefuls’ experiences, get ready for meetings, direct meetings, get ready applicant evaluations, lead reference checks, make the business offer, and notify ineffective candidates.
- Cost of Training- Cost of trainers, cost of training equipment and materials, cost of refreshment, cost of technology
- Cost of Administrative Proceedings- Cost of issuing I ” cards, access cards Cost of Signing Bonus- It is given to the works for joining the organization; it is also a significant part of the cost.
- Lost Productivity Costs- As the new employee is learning the new activity, the organization strategies, and practices, etc., they are not completely gainful. It incorporates the expenses related to the low efficiency of the new employee.
- Lost Sales Costs- These costs are the lost revenue which occurred as a result of project loss due to key employee attrition.
Steps to Reduce Attrition
- Focus on Exit-interviews.
- Compliment and thanking employees for their valuable contribution.
- Recognize and celebrate their success.
- Setting up a feedback mechanism to maintain consistency in performance and high motivation levels.
- Give them job security.
- Providing opportunities for learning by constantly upgrading the skills of employees.
- Paying attention to employee’s personal needs and participation.
- Communicate goals, roles, and responsibilities so that people know what is expected from them.
- Education Feeling valued by their managers or superior in the workplace is key to high employee motivation and morale.
- Treat the employees well & provide dignity of the job
Strategies for Retention
Fostering a Culture of Management
- Concern- Companies today should demonstrate an enthusiasm for helping individuals create to their fullest potential. Notwithstanding decreasing organization, high-performing, innovative companies give opportunities in booked hours and way of life decisions.
- Providing Relevant Training- Companies should think of training as career development.
- Job Enlargement- Employees ought not to be bolted into positions since they’re “so great at it”. Supervisors should persistently ask: “What’s the subsequent stage for this employee?” at the end of the day more undertakings and obligations ought to be doled out to make the position all the more testing. Realistic goals
- Defining career path and demystifying career growth- proper succession planning
- Rewarding Managers- Numerous companies state they worth individuals and train their management group to adapt to individuals issues. However, these equivalent administrators are over and over again compensated exclusively on their specialized aptitudes and monetary outcomes.
- Strengthening the Team- Marginal performers in management must be weeded out.
Workers’ Participation in Management
- Fair Performance
- Clearly identify the people you want to keep
Numerous administrators have concentrated on whom they ought to dispose of instead of on whom they should keep. Sadly, the individuals who choose to leave are regularly high-sway entertainers who can discover other work rapidly.
Effective Communication System
To hold the top talent, later on, administrators should plainly distinguish, create, include, and perceive key individuals. Conventional remuneration plans must be tested, the unnecessary organization ought to be wiped out, and development openings ought to be given. Officials who make a dynamic, new human asset model will hold the high-information talent expected to prevail in tomorrow’s all-inclusive aggressive condition.