Pull the Brakes on Employee Turnover
Now that was her point of view. She felt that it was preferred to focus on recruitment in anticipation of the attrition rates. But her viewpoint raised some important questions in my mind.
Every company strategies unique compensation and benefits plan to curb their employee turnover figures. Some companies also have employee bonds that legally prohibit employees from resigning for a specified period. Despite such measures, companies find people jumping ship and as a result the company has to be embroiled in a number of litigations.
A very interesting case was quite the joke in office circles. A senior manager in a reputed IT company was involved in bagging an important software development project. Another company was also competing for the same project. The competing firm feared that they would lose project. They decided to hook in the manager with a great employment offer. Now, the senior manager has jumped ship. Not just that, he also bagged the project for his new employer.
It is not just the loss of the employees that can be worrisome. Companies spend enormous amounts of money in training employees. All the investment gets wiped out in one stroke. Attrition shakes the very foundations of the organization structure. Often, when senior managers resign, some dedicated subordinates also walk out in a show of solidarity along with the manager. This can have a disturbing effect on the department.
Organizations waste a lot of time settling down their new employees and drafting new procedures and policies. It is not OK to simply accept attrition levels as a way of life. Attrition needs to be checked, and specific measures must be taken to pull the breaks on attrition. HR managers should probe into the root causes of attrition and find creative solutions to boost employees' interest in the company.
One of the biggest cited reasons for resigning was: 'My boss is lousy'. Very often HR people don't want to get into the messy details and hence shirk from finding out the real reasons of failure. When there is a communication problem and employees don't feel 'heard out', there is a risk of mass exodus. Look into the organization behavior to probe into the trigger factor.
It is not worth losing your employees on flimsy grounds. Human capital is the most remunerative resource of any organization in the long run. Companies should ensure that they don't treat attrition figures as inconsequential records. Attrition levels can be brought down provided the organization has the will to follow through.
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