The Great Attrition: Balancing between the customer and the employee

What is the Great Attrition??

Time is an eternal force capable of transforming landscapes and continually redefining the status quo, putting forth unprecedented scenarios and challenges. Over time, the patterns of human behaviour and expectations undergo drastic evolution as well, following which the notions of what is acceptable change as well. This is precisely what the Great Attrition of the past few years has ushered in, leaving organisations across sector lines with a resounding balancing act of fulfilling customer expectations versus employee preference translated via job demands and employee performance in the job, respectively.

With the attrition rates in the country surging to 21% in the year 2021, a level not recorded for two decades, it is evident that employees are not content with the conventional life-work balance and sacrifices that do not account for the myriad of ways the world has transformed in the wake of the Covid-19 pandemic. As a result, an increasing number of people have been compelled to recalibrate their outlook on their job roles, and choose either a switch to a different role or a sabbatical to figure things out.

The burnout that corporate jobs entail has also exacerbated the situation by pushing more and more people into early retirement. And then there are people who have realised the advantages of having their own business, leading to a glut of start-ups and forays into entrepreneurship. In order to address the situation, it is pivotal to dive deep and conduct a root cause analysis.

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How Did We Arrive At The Great Attrition? ?

Although it is difficult to attribute the origins of the Great Attrition to one overarching factor, the following events have certainly played an instrumental role in bringing forth this relentless trend. ?

●?????Supply Chains Stretched To Their Absolute Limits ?

The pandemic has amplified the chinks in the armour of the global supply chains, whilst creating holes where hitherto there had been none. With factories shutting down for months on end only to reopen and shut down again, with the uncertainty surroundings logistics and the mobility of goods across national / international borders, and with the shortfall in the supply of essential raw materials, the supply chain ropes of all sectors have been stretched to the seam, resulting in unravelling threads and burgeoning instability impacting the workforce sentiments. ?

●?????People Costs On The Rise ?

The timeline of every individual's and organisation's perspective is now firmly bifurcated into two eras - the before and the after. What held true before the onset of the pandemic is not necessarily true anymore. Medical inflation has been on the rise, as has the urgency to invest in products such as health insurance and life insurance. ?

With the inflation across cities registering a substantial rise, it is natural for the members of the workforce to expect a corresponding hike in pay, and be susceptible to leave a role should such an expectation not be fulfilled. Organisations are, therefore, grappling with rising people costs, particularly with regard to retaining a resigned employee. ?

●?????Work Cultures Churning Through The Wheel of Evolution ?

Gone are the days when employees viewed work as being something that was singularly accomplished from the premises of their workplace. We live in the age of hybrid workforces and dynamic work cultures which are a living, breathing entity. No longer can organisations afford to pigeonhole all their employees into one broad category and design key policies that apply to everyone in equal measure. ?

With remote working having become the new normal, an increasing number of people are reluctant to return to the workplace, cutting through the metro traffic, to accomplish tasks that can be done with just as much, and perhaps more, efficiency remotely. Pressuring resources to return to a pre-pandemic work model is also a major driving force behind the Great Attrition. ?

●?????Market Demand Patterns Turning a New Page Ever So Often ?

Not only has the pandemic shifted people's outlook towards work and life, it has also brought about significant shifts in market demand for talent. With hybrid or flexible workforces being hailed as a sustainable and long term solution, organisations are looking for employees who can work in a whole host of scenarios, ranging from remote work to working from the office premises based on role demands. One of the key lessons from the pandemic, from an organisational point of view, has been the resounding need for dynamic resources who are open and adaptable to change and view challenges as opportunities. ?

Lessons Learnt From The Great Attrition and The Path Forward ?

If there has been one pivotal takeaway from the Great Attrition that simply refuses to wane into oblivion, it is that the only way forward for organisations is to be open-minded vis–a-vis their Human Resource Management and strategies. It is important to understand the expectations of the workforce and incorporate the necessary measures to ensure that a majority of employees can be retained while balancing between the role demands and the employee experience. ?

The solutions may start with rearranging the life work practices, giving a greater meaning to life purpose than only work and related compensation and closely connecting the customer to the employees. Modern-day individuals tend to value elements such as flexibility, compassion personal space, as much as, if not more than, salary hikes. Time metamorphoses the expectations of human beings, and in order to stay ahead of the curve, organisations simply must follow suit and keep evolving for the better.

-Vivek Jain

Senior Executive Vice President, Human Resources

Kotak Mahindra Bank

Disclaimer:

This Article is for information purpose only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. The Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Article. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from the Bank. The Bank, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.