Monday, July 15, 2013

ATTRITION RATE - TO MEASURE AND TO PREVENT

You as an HR staff has discovered that more than 5 employees from different departments/different levels are applying in another company. You accidentally saw them browsing over a job engine, looking for a job or you may have sighted them along the way carrying all the requirements in an interview attire. What does this means to the organization?



It may mean that the employee is not anymore committed to stay longer with the company and if you found out that there are more than 5 employees or even a group of employees who are planning to transfer to another company, well,  it may lead to high attrition rate or high turnover.

There are various reasons on why employees leave the company.  Some of the reasons are Lack of challenge, lack of job satisfaction, salary and benefits are not competitive enough, conflict with the management, conflict with the coworkers and so on.

When an employee applies or submit an application to another company, then, that should be taken as a warning sign. There is a need to understand why the employees are leaving or are aiming to leave the company.Corrective and Preventive measure have to be implemented as soon as the discovery of the reasons why the employees are wanting to resign from the company.

As high turnover rate is the most common problem of the corporate nowadays, initial steps on how to at least reduce it must be taken into consideration. The first thing to do is to hire the right person and develop that hired candidate further. Training and Development are both necessary to ensure loyalty among employees. Second,  be employee oriented. Encourage an open communication and ask for their input. In other words, make them feel that they are a part of the company. Third, create a strategic incentive package. Creating a compensation package which is attractive and more competitive is the best weapon against attrition. An employee who is well-compensated is a happy employee. A happy employee creates a harmonious relationship towards the co-workers and the management hence no conflict will arise. Who wants to leave a company with good training programs, employee oriented and with attractive compensation offer?

WAYS TO MEASURE MONTHLY ATTRITION RATE

Monthly Attrition = (No. Of Employees left in Current Month/Avg Headcount) *100{Average HC = (Employee Strength at the Start of the month+Employee Strength at the end of the month)/2 }

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