A common attrition rate definition refers to the employee or staff turnover, but in a broader sense, the attrition rate is a calculation of the number of individuals or items that vacate or move out of a larger, collective group over a specified time frame.
Generally, a small percentage of attrition rates are normal and sometimes healthy for the business but if the rate increase more than 10-15%, then chances are high that it would affect the cost and operation of the organization. According to KPMG Annual Compensation Trends Survey India 2017, top 3 reasons reported for attrition are:
- Better Pay Elsewhere (28.1%)
- Better Career Opportunity (23.4%)
- Personal Reasons (19.6%)
Average Voluntary attrition (2016-17) stats show the highest attrition was reported by the retail sector in India, with e-commerce being on the higher side with the average voluntary annual attrition of 20.4%, followed by media and advertising (18.5%) and banking and financial services (17.4%).
According to India’s leading manpower & licensed labor outsourcing company, Trendsetters Facilities & Technical Services (TFTS), Vice President, Ms. Kanika Kohli, says “no matter voluntary or involuntary, the reasons behind increased attrition rates needs consideration to avoid both short and long-term losses in terms of talent loss, higher operation cost, wastage of managerial time etc . That is why controlling turnover rates is essential for an organization. Let’s talk about some of the ways that might help control attrition rates:”
A. Don’t let employees work blindly communicate the business vision
When employees keep working blindly, they may exhibit a declined dedication and passion level at work. Hence to bring out employee’s full potentials, business leaders should share the business vision and the roadmap to achieve them with the employees. When employees are involved in communication loops of what drives the business, higher levels of clarity are achieved and that’s exactly what the best employees look out for.
B. Business must ensure an efferent recruitment process
Remember a good recruitment involves going beyond hiring a skilled candidate. An experienced recruiter looks for the behavioral and cultural fit and tries to identify if the skilled candidate is going to fit with organization culture or not. This can avoid teamwork clashes, cultural conflict and as a result, can reduce the chances of resignation by the candidates or by employees who will be working under the candidate’s supervision.
C. Communicate clear Job objective during recruitment
Businesses much check that during the recruitment process, job advertisements clearly describes job requirement and the same is also explained by the interviewee to the candidates. Blurred expectations tend to deviate from the employee and decreased their interest towards the work desk, no matter how important they are to your organization.
D. Show the career path to employees
Employees find stagnation as boring. Hence try to avoid deploying a resource in a particular project for too long. As per a recent research, most employees tend to leave when they are denied exit form a particular project. There have been instances where a particular resource was locked in an assignment for more than 5 years. Not just this bores them; lack of variant skills may no longer fit them in different assignments at the 11’Th hour. Remember a great manager pushes their employees out of their comfort zones. He/she will challenge the employees every now and then to accomplish tasks that may seem impossible at first.
E. Acknowledge employee performance
A word of encouragement is a joy forever’ fits perfectly for employees who have burnt the midnight oil. Remember more than just the monetary compensations they get, employees wait for recognition and at times, it is enough to build an encouraging work ambiance thereby giving them one more reason to stay. The very feeling that one’s efforts haven’t gone unnoticed is the best perk next to an impressive salary.
F. Investing in the workspace
Given the fact that employees spent almost half of their day at the workplace, investment towards work ambiance deserves consideration. That is, every employee would prefer working in a comfortable office. While an employee’s wellbeing is best reflected in his performance, it is imperative to build a place that encourages learning, collaboration, socialization and many other focused activities. However, bringing down the attrition rate to null isn’t a realistic idea since better opportunities will always attract. You can’t entirely eliminate it but can surely control its impact over.