Attrition Rate Less Than 5%? How can our HR team help crack it?
BalaVishnu Ranganathan
CEO, TechnoTackle | Helping Businesses Modernize Legacy Systems into Scalable Solutions for Growth | Passionate About IT Innovation
Novice chess players see the pieces. Grandmasters see the empty squares. That is the reason they are grand masters. Similarly, there is a good focus on human resources. The great one focuses on human relationships. In our company, the term HR stands for human relationships.? When relationships and resources fall into place.
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In my previous blog, I touched upon the principle that helped our organization retain people. For the benefit of the readers, the 3 key principles were:
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Undoubtedly, these principles are the pillars of our organizations.
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However, the word principle is abstract; it is more about who we are and what we stand for. But, in business, it is the behaviour and actions that matter. To translate these principles into actions, certain things from an HR standpoint were of great help.
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A Strong HR Head:
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First things first, any company needs strong HR who is respected, a principal centre, has genuine care for the employees, is practical in balancing the management requirements, takes accountability, and stands up for what he or she believes.? Fortunately, we stumbled upon one such person as the HR head of our organization. To date, our head of HR has hired each one of our workers. He commands enormous respect. To be honest, I, as the MD of the organization, saw the value he brought to the table in terms of setting the culture and gave him the space he needed.?
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The Right Balance:
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Any management has specific expectations from the team member. All team members have certain expectations from the management. In most cases, HR is the person who handles these mutual expectations. This makes this area very sensitive and important. Not understanding and communicating these expectations can create a toxic culture of excuses, blame, and justification instead of one that helps employees express their potential. We are very aware of the need for this balance. HR is never expected to align with management on all the requirements and has the space to share opinions and have a larger say in people-related decision-making. The final call on any crucial decision lies with the management. But, at Techno Tackle, the final call on crucial decisions is largely left to the department heads. The management doesn’t manage; it facilitates. This creates an environment of trust for the employees. If HRs do not have a say, the employees feel that they do not have a say.
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Focus on Developmental HR
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There are two key HR functions:?
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1. Documentational HR: The key is to make sure that nothing goes wrong and the routine is strong?
2. Developmental HR: The key here is to make sure that things are in the right alignment for employee growth.??
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For a company of our size (65 in-house, 40 contract employees), having a separate trainer is a bit rare. But, as a policy, we wanted to provide a strong learning experience for all our freshmen, so we put it in place. Our employees on the bench are not stressed, and they have an orientation to contribute. So, they take on developmental or learning projects that can be useful to all. Also, all decisions with respect to employee performance and progress involve asking rather than telling. Our heads try to understand the natural strengths and preferences of the employees and guide them in that direction. All this might have a short-term negative impact on today’s productivity in terms of raw output.? But, in the long term, that is the investment that we make in our culture.
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Long-Term Orientation
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One core thing that we believe in is that.
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Performance = Potential - Interference
To increase performance, you either enhance the potential, reduce the interference, or do both. We try to do both and one aspect that has helped us in this respect is that we know that everything good takes time.
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Seeing the potential requires time, concern, and a deep relationship. It is like a marriage. We appreciate that and will provide that time. Our HR creates an environment that fosters strong relationships. In our company, sometimes, I feel, it is a bunch of college seniors working together. There is a strong sense of connection among them.
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Environments of fear, lack of clarity, transparency, and concern create interference. Reducing the interference requires the hiring of resources that align with the culture and the firing of resources who are a threat to the culture. It is hard, but it is a must and should be done properly with fair opportunities to correct. If done blindly, it is harsh and increases interference. Also, it is important that we reiterate what we stand for on a regular basis so that people can appreciate and adopt it.?
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There is only one enemy among all these. Blindly focus on short-term productivity; if you can cross that barrier, half your problem is solved.
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These are some of my observations on what aspects have been instrumental in creating a culture of very low attrition. I hope that was useful!