Employee retention

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