employee retention
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EMPLOYEE RETENTION AND ATTRITION
BY:AMAR CHOUDHARY (LEADER)DHARMENDRAPUNEET ANANDRISHIKA SINGHALNIKITA JAIN
REASONS FOR EMPLOYEE TO COME TO THE
ORGANIZATION
Personal and Family Time
Pay
Location
Benefits
Advancement
Possibilities
Job Security
Nature Of Work
EMPLOYEE RETENTION
WHAT IS EMPLOYEE RETENTION?
Employee retention is a process in which the employees are encouraged to remain with the organization for a maximum period of time or until the completion of the project
Employee retention refers to the various policies and practices which let the employees stick to an organization for a longer period of time
Reward
Recognition
Respect
THE THREE R’S OF EMPLOYEE RETENTION
Increased productivity
Improved profits
Reduced absenteeism
A more pleasant work environment
BENEFITS OF THREE R’S APPROACH
NEED & IMPORTANCE
Hiring is not an easy process
An organization invests time and money in grooming an individual
When an individual resigns from his present organization, it is more likely that he would join the competitors
Every individual needs time to adjust with others
Contd. The employees working for a longer period of time are more familiar with the company’s policies, guidelines and thus they adjust better
Individuals sticking to an organization for a longer span are more loyal towards the management and the organization
It is essential for the organization to retain the valuable employees showing potential
EMPLOYEE RETENTION STRATEGIES
Hire the right people in the first place
Empower the employees
Employee Recognition
Performance Appraisal
Contd. Make them feel valuable
Assigning responsibilities according to employee’s specialization and interests
Career planning
Keep their morale high
Create healthy environment
Contd. Incentives, cash prizes, perks should be given
Employees should be allowed to participate in decision making process
Have faith in them , trust & respect them
EMPLOYEE ATTRITION
What is Employee Attrition ?
Employee turnover refers to the number or percentage of workers who leave an organization and are replaced by new employees
Attrition is the reduction in the number of employees through resignation, retirement and sudden death
Reasons for employee attrition
Monetary factors
Lack of good working conditions
Inflexible work schedules
Job is not what employee expected
Contd. Lack of trust and support
No growth opportunities
Monotonous work
Lack of appreciation
Work related stress leading to work-life imbalance
Contd. New job opportunities
Less employee oriented policies
Lack of cooperation from peers
Less reward for employees
Effects on the organization
Loss of productivity
Replacement of trained employees
Recruiting and interviewing expenses
Training expenses
Contd. Time spent on orientation
Cost of overtime or officiating position till the time new candidate is recruited
Attrition at mid or senior level may reveal company specific information
Current industry scenario Attrition rate varies from sector to sector:-
Hospitality and Aviation sector’s attrition rate was 22 per cent in 2011-12
Attrition rate has fallen sharply in IT, ITES and the BPO sector to 15-20 per cent in 2012 as against 55-60 per cent in 2011 as per industry body ASSOCHAM.
Contd. In Auto Sector the attrition has fallen from to 10 per cent in January-March quarter from 11 percent in the corresponding period in 2010-2011
At the entry and mid-management level, attrition rates in aviation and hospitality industry have doubled over the last three years. This is happening due to perceptions of being poor pay masters, delay in salaries, job insecurities and little concern for employee welfare.
THANK YOU