Best ways to control Employee Attrition – Managing things at work / Recruiting potential employees / Motivating the employees are the common things that are carried out in the Company. No matter how big and strong the company is, companies face many problems from time to time.
One of the major problems that every company face irrespective of the work sector is the Employee Attrition. Proper strategies and ideas are required to control the growing employee attrition rate.
Income is more than just a job to a large number of people. It is a vital part of oneself. Hence, a transition of any sort in the career is the most unsettling experiences in the life. The cost of employee attrition is extremely high as a lot of effort, time, and energy are invested in getting the employee on board, integrating and assimilating with the company’s company’s values, culture, and nuances. In simple words, it could be minimum 3 times the cost of annual compensation.
Regardless of such a high-cost HR Professional, continue to behave as an imperative department like any other department. The role of HR is not just personnel administration or policing. Yet, the expectation from HR is to play the role of a strategic business partner as the success of companies depend on the human capital and leverage of their potential.
Overview of Employee Attrition
It would get to keep their excellent employees for the entire careers in the proper business world, expanding no money or time on lost productivity or recruiting. It is not about the layoffs due to involuntary since that can a lot of time be a blessing in disguise. If the office manager gets caught of stealing any valuable from the supply room, then the company is better off without them. However, the workforce attrition occurs when the employees voluntarily retire or leave and are not replaced, cutting the overall workforce.
Numerous unfavorable impacts, including overall poor company performance, low employee morale, in worst of case more employee attrition are due to uncontrolled employee attrition. The decrease in the workforce causes remaining employees to work on the slack left behind- mostly performing the task, they are not completely trained to perform or are not the best suited. Which in turn leaves the staff feeling unappreciated, underpaid and overworked which causes more attrition. Such conditions could quickly go out of control and turn into the mass exit of employees, disabling the ability of the company to perform at a high level.
As a matter of fact, the employee attrition statistics have improved in the recent years. As per the Society of Human Resource Management study in 2013, the average voluntary turnover in all industry was declined to 9% from that of 13% in 2010. With the recovery over the recession, people tend to find comfortable jobs that suit them, which result in them staying with the company for a longer period of time. However, the organizations would like to witness a continuous decrease in the number of turnovers. Dishonest spending on recruiting has become out of control, with the cost of turnovers from 1992 to 2007 stretching from 5.8% of the employee’s annual salary to a gigantic 213%, depending on the requisite skills and the job.
Losing a valued employee is never favorable to the company, yet employee attrition does not need to be as painful. Creating resolute plans for unforeseen events, including managing the goals and expectations in new roles and training of other employees, can reduce the burden on the remaining employees. Additionally, times of attrition would be diminished by adopting more effective and faster-recruiting solutions, which could make things more manageable and reduce the burden on the corporate wallet. There are various ways through which the multiple headaches due to the employee attrition could be handled, along with prevention from potential downward spirals before it takes place.
Primary Causes of Employee Attrition
To deal with the employee attrition, it is important to be known about the primary causes of Employee Attrition.
- Mismatch of Job of the person.
- Lack of investment in the individual in terms of training and resources related to the Software or Tech skills.
- Lack of the communication with the employee and improper add valuable feedback to the employee.
- Better recognition or payment for the same job at a different firm.
The person is less likely to leave if the organization values the employee a lot, shows appreciation, and places one in the appropriate area of talent with proper recognition.
The first 3 points are easily controllable in comparison to the last point. The assessment based training and assessment tools are of great value to the Corporate as well as the individual’s part of it.
9 Tips to deal with the employee attrition
By following some simple and straightforward policies one can control the attrition in their organization. The Retention tools are as follows:
#1 – Offer equitable and modest salaries
Fair compensation single-handedly will not guarantee the loyalty of the employee, but offering wages below market makes it more likely that the employee would look for a job at some other place. As per the research, if the incomes lag behind more than 10 percent at similar jobs in other companies across town, the employee is more likely to bolt. To maintain the workers, conduct reviews of the salaries regularly for all the job titles that you offer- experienced staff, entry-level staff and supervisor level staff. Compare the salary of your department with reliable averages that are statistical. If there are substantial differences, the company needs to consider making adjustments to assure to stay in line with the marketplace.
#2 – Note that benefits are imperative as well
Even if benefits are not the primary reason for the employee to stick with the company, the benefits offered by you cannot be marked worse than the ones offered by your competitors.
#3 – Train your front-line managers, supervisors, and administrators
It is very much known that people leave or stay because of their bosses and not because of the company. A good manager-employee relationship is crucial for the satisfaction and retention of the worker. Ensure that the managers in your organization are not driving away the technologists. Provide them with the necessary training that is required to develop people management skills and good supervisory.
#4 – Define the responsibilities and roles clearly
Make a formal job description for each position or title in your department. Ensure that your employee is aware of what is expected from them on a daily basis, what type of decisions they are allowed to make by themselves and to whom they need to report.
#5 – Offer opportunities for adequate advancement
To promote employee loyalty, implement a career ladder and ensure that employees are aware of what they need to do to earn a promotion. To identify the strong point and weakness of the workforces, conduct performance reviews regularly. Assist them in improving the areas that will lead them to seek advancement in their job. A proper professional development plan provides the employee a reason to stick around.
#6 – Provide retention bonuses instead of a sign on bonuses
The longevity of the worker is typically awarded a raise annually and added vacation time after the period of the three, five or ten years. Nevertheless, why not offer other seniority-based rewards such as paid membership in the professional association of the employee after a year, full reimbursement for the uniforms and membership to a local gym. Retention packages can be designed to raise the salaries of the technologists who turn into credentials in additional specialized areas, take on more responsibilities or obtain additional education. Technologists are encouraged to skip from job to job due to sign-on bonuses, while retention packages offer reasons to stay.
#7 – Make someone responsible for retention
Measure the turnover rate of the company and hold someone accountable for reducing it. NNoo one is held responsible in several workplaces in several workplaces when employees leave, so nothing is done to encourage holding.
#8 – Conduct survey about employee satisfaction
You won’t be able to understand what is going right or wrong in the organization unless you ask about it. To check the company’s functioning, conduct an anonymous survey related to the employee’s satisfaction on a regular basis. Ask the employee what they want less of and what they want more of.
#9 – Adopt an environment of teamwork
To build an effective team a lot of efforts needs to be taken. However, the result is greater productivity, improved customer service, better utilization of resources and increased morale.
How to adopt a team environment in the department
- Ensure that everyone understands the purpose, goal or mission of the department.
- Encourage participation, discussion and sharing of ideas.
- Depending on the abilities of the employee and the needs of the team rotate the responsibilities of leadership.
- Involve the employees while making a decision and ask them to make signs through collaboration and consensus.
- Inspire teammates to appreciate their colleagues for achievement and superior performance.
Decrease the burden of paperwork:
It is time for changes if the technologists spend much time in the filing of paperwork. The pressure of Paperwork adds to the stress and burnout the employees. Eliminate the pointless paperwork, convert the paperwork into electronic format. Hire non-tech administrative staff to take over as much of the burden related to the paperwork as per the regulatory or legal restrictions.
Make space for enjoyment:
Celebrate success and spot out when milestones are reached. Birthday parties, potluck lunches, employee outings, creative contests will help people to remember why the company is a great workplace.
Note down a mission statement for the department:
Everyone needs to feel that they are contributing towards a worthwhile, meaningful goal. Get along with your staff to evolve a mission statement for the department, and later publicly post it so everyone could see it. Ensure employees understand how their contribution is essential.
Provide a range of assignments:
Identify the talent of your worker and encourage them to stretch their abilities in new areas. Know a good critical thinker in the team ask them to work with the seller to customize the training of the applications on a new piece of equipment. The workplace can be kept stimulated with various challenging assignments.
Employees tend to be more loyal when the managers keep them informed about the key issues. Whether it is a major expansion or corporate merger in working, the employee would prefer hearing it from you rather than hearing it from evening newscast.
Create opportunities for the technologists to learn and grow. Compensate them for seminars, CE courses, and professional meetings. Discuss journal articles of the present time with them and study a new scheduling method for the department. Motivate every employee to study at least one new thing within a particular time passage. In this way, you would be able to create a motivated, excited, and committed workforce.
The employees normally have commitments outside their workplace as well. They tend to be loyal if the office makes their lives convenient by offering flexible work hours, job sharing, part-time positions.
Show your employees that you value them:
It is good to recognize outstanding achievements in public and on a regular basis and take the time to comment on the small contributions made by the staff on a daily basis to meet the organisation’s missions. Remember the staff makes the company look good. Give the employees best equipment and supplies. Upgrade the systems, machinery, and software so they could work efficiently. Taking care of the needs of the employee is an indication that the company values them.
Coping with the attrition should not be an issue if good training is a priority. With it, expectations of the employees are acknowledged and managed, and more effective recruiting solutions are embraced. By adopting all these tips, employee attrition will seem not a problem as compared to the concussion it presently is. Proper functioning can be carried out in the organization, and the attrition can be overruled with it.
Here are some articles that will help you to get more detail about the Employee Attrition, so just go through the link.