Employee attrition is a very big problem not only in India but outside India too. Attrition rate is increasing day by day and its especially the software industry which is affected the most. Why an Employee leaves a company is the question asked by most of the employers. Companies even hire Private HR professionals to study the company's work and find out why an employee is dissatisfied.
HR department does the recruiting of new employees and then send them for training so that they can understand work and work culture and become better professionals. Each and every company faces employee turn over problem whether big or small. An employee leaves his present job for another job to get better pay package and good working conditions.
Every Company calculates Employee attrition rate and takes measures to reduce it. The facts and figures are not made public as it may tarnish the image of the company in front of its own employees and its loyal customers.
A survey has found out that there are various reasons for Employee Attrition -
1.Higher Pay Package in another company
2.Good working Conditions
3.Opportunities for growth in new company
4.Change of Place problem
5.A better Boss in new company
6.Brand Image of the new company
Employee attrition costs a lot to the company. There are various costs which are borne by the company at the start when the employee is under training period. Costs such as -
1.Conveyance Cost
2.Cost of lodging of the new employee
3.Trainers cost
4.Cost of venue where training will be conducted
5.Materials to be supplied during training process
A company has a training period of 3 to 6 months. During this time an employee is not fruitful for the company. If an employee leaves the company when he starts working, company suffers a big loss in terms of money as well as workforce. Every company takes measures to hold the talented workforce by means of perks, Increments, Bonus and extra facilities. No one wants to lose good brains to their competitors.
Now the question is how to reduce employee attrition. What should a company do to hold on the talent.
There are various companies like TATA's and Reliance who do a lot to reduce attrition rate. Flexible working conditions have been given to employees who have problem working 10 – 5. Private hospitals for employees where they can get their regular health check up done without spending much money. Free overseas tour once in a year when a target is achieved. Few Companies are getting more and more work savvy and just want to get their work done by hook or by crook. The mentality needs to be changed. Target for completion of a work should be there but that should not hamper an employees personal life. Companies should conduct various seminars on how to balance personal and professional life. A employee can be productive if and only if his personal life is balanced. Make employees a part of your work culture family and see the difference.
Attrition rate cannot become completely obsolete but it can surely be minimized.
By Rashmi Priya
