Attrition is the Achilles heel for the HR departments of most organizations whether large or small. Nowadays along with the competition, the opportunities have also grown providing wide options to the employees at any level of an organization. As a result they do not think twice before taking the leap to another better employer. However, talent drain can be detrimental to any organization in more ways than one.
- A lot of time, money and other resources are spent in hiring and training a candidate to become profitable for the organization. If there is high attrition in any organization, this expense shoots up.
- It takes considerable time and effort to develop professional relations with your employees and every time this exercise has to be repeated it is expense on more than one front for the company.
- The team dynamics that have been established with a certain number of individuals also get disturbed when an employee leaves and a new one is hired in his/her place. This affects the productivity of the team as a whole, which in turn negatively impacts the profitability of the organization.
- Last but not the least, it is difficult to find employees that are qualified, skilled and have the right mind set to fit into a particular organization.
These are the reasons why organizations go an extra mile to prevent attrition. Although attrition is a concern all the time, things become more sensitive at appraisal time. Many employees see appraisals as an opportunity to get salary hikes allowing them to get better packages with other employers. As a result appraisal time is very crucial for all HR professionals.
Of course the benefits of switching jobs right after an appraisal are questionable, yet most companies have to go out of their way to prevent this. Let us look at the steps that a company can take to prevent these onlookers from traveling to greener pastures. For this we need to examine the reasons why most employees attrite in the first place.
- Dissatisfaction with the salary package is by far the top most reason for causing an employee to attrite. In order to prevent the employee leaving for this reason,the obvious and the most used method is to enhance the compensation packages of all employees on a regular basis. At the same time, during the process of appraisal, the HR professionals need to convince the employees of much better things to come in the near future.
- Another intangible but very important reason is dissatisfaction with the work environment provided by the employer. Some employers believe that pressurizing their employees can help them attain the desired results, but excessive stress is one of the major reasons behind attrition. Hence the HR departments of all organizations should ensure that they take regular feedback from employees regarding the work conditions and take steps to eliminate any undue pressure.
- The relationship with the boss and other colleagues is also an important factor which can be resolved by conducting open sessions among the employees where they can communicate their troubles and find out ways of resolving their inter personal issues.
- Lack of growth can be considered to be one of the reasons which cause most ambitious professionals to switch jobs. Here the obvious although tough solution is to ensure that the professionals get ample opportunity for growth in their department. If this is not possible then thought should be given to up-skilling and training them for better positions in other departments. In fact this is the tactic that most large and well-known companies are employing nowadays in their effort to reduce attrition rates.
Most reputable organisations are nowadays adopting anyone or a combination of the above methods to reduce talent drain from their organization and are succeeding to a large extent. This in turn has brought stability to their organisations and profitability has increased significantly. Needless to say, in spite of the best efforts some employees will still switch jobs, but the above mentioned methods can help an organization to keep attrition rates at the minimum possible level.