How to reduce employee attrition? Tips for improving employee retention
Gopakumar Pillai
CEO @ SBL | I help seasoned managers with Workplace Change Management, Employee Growth and Leadership Development
For me, employees are lifetime assets !!! Once you find the right person, build a relationship and retain them for a long time. This is my motto in human resource management.?
Give your employees excellent growth opportunities within your company, help them build their skills, and participate actively in shaping their careers. Create an environment where they identify their personal growth with the growth of the organization. You are sure to have a loyal workforce, responsive to challenges, and committed to the business goals and objectives.?
I would say that high employee attrition is the single most obstacle in a company’s growth path. It throws unexpected surprises and turns in the business process when key performers leave and replacements fall below the standards or end up as a misfit in the organization. The cost of employee attrition is high and businesses should keep this point on the top list of their agenda and devise an effective process for reducing employee attrition.?
How to reduce employee attrition - retention is cheaper, but replacement is expensive
Recruiting and retaining the right talent is a challenging task in today’s business environment. A business invests time, effort, and money to find the right person, train them for the job, and shape them according to the values and culture of the company. Hence, when there is frequent employee attrition it has a highly damaging impact on the business because of the loss of investment that was spent on recruiting and training the employee. The business also will need to incur an additional expense in finding new talent.
Possible causes of employee attrition
Employee attrition can be attributed to a number of factors many of which are preventable. Low compensation, heavy workload, workplace stress, limited feedback and recognition, and poor work-life balance are a few of them. Restrictive workplace culture and authoritative leadership style can also contribute to employee attrition.? As employees are constantly seeking career growth, poor training and development plans in an organization also lead to employee attrition. The human resource department should analyze the employee attrition reasons and identify the steps that help to reduce employee attrition in the organization and implement them proactively. Technology allows for accurate employee attrition rate prediction with tools such as employee attrition analysis using predictive analytics.
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What is the difference between employee turnover and attrition?
Employee attrition vs turnover - Even though the terms turnover and attrition are used interchangeably, there are certain key differences between the two. Turnover refers to all terminations in an organization including the ones that are refilled while attrition refers to the positions that are eliminated completely or the long-term vacancies. Attrition can also be involuntary when the company decides to separate itself from the employee. A layoff is a good example of involuntary employee attrition.
How to calculate the employee attrition rate?
You can easily calculate using the employee attrition rate formula by dividing the average number of employees who leave the organization in a time period by the average employee count in that same time period and multiplying the result by 100.
Challenges in employee attrition
Employee mobility is increasing and the availability of alternative career options makes job hopping easier. In this context reducing employee attrition is tough and it would be good for a business to understand the key challenges using employee attrition rate analysis before devising steps for employee retention.
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Your Confidence in HR Matters
1 年I think attrition is the lowest in such organisations where the employee benefits are high. Now the employees have started thinking about their future. With the Supreme Court verdict on higher pension to those who have contributed to Provident Fund on higher salary, this has become a serious concern and when they look back and find that their employer has only considered PF kind of contributions as a statutory burden, they feel very bad for having worked with such an employer. There was a time when the employees were only concerned with the amount they get in their hands, the take home money on first day of every month. But that has changed, make the employees feel secure and reduce attrition..... ??