In
IT INDUSTRY
There are some keys to win over the employees in an India Software
Company. The IT managers have forgotten those soft-skills and
techniques in the long-coarse of time. This is one of the reasons why
Software Companies faces high ratio of employee turnover in a firm.
The survey carried on Top Software Companies in India tells that the
employee dissatisfaction level has increased up to 27% in 2007. Most
of the employees complained that the pressure given by their boss
and dumping work-load in Software Outsourcing setting.
In other words, it signifies the shifting of work force into and out of
an organization. It is a major of extent to which old employees leave
and new employees enter into service in a given period. Employee
turnover is the cause and effect of instability of employment, apart
from being a major of the morale and efficiency or otherwise of
worker.
For a moment if we look back, did we plan for the growth of this
industry and answer will be no. The readiness in all aspects will ease
the problems to some extent. In our country we start the industry and
then develop the infrastructure. All the major IT companies have
faced these realities. If you look within, the specific reasons for
attrition are varied in nature and it is interesting to know why the
people change jobs so quickly. Even today, the main reason for
changing jobs is for higher salary and better benefits. But in call
centers the reasons are many and it is also true that for funny reasons
people change jobs. At the same time the attrition cannot be
attributed to employees alone.
Organizational Matters:
The employees always assess the management values, work culture,
work practices and credibility of the organization. The Indian
companies do have difficulties in getting the businesses and retain it
for a long time. There are always ups and downs in the business.
When there is no focus and in the absence of business plans, non-
availability of the campaigns makes people to quickly move out of the
organization.
Working Environment:
Working environment is the most important cause of high turnover.
Employees expect very professional approach and international
working environment. They expect very friendly and learning
environment. It means bossism; rigid rules and stick approach will
not suit the call center. Employees look for freedom, good treatment
from the superiors, good encouragement, friendly approach from one
and all, and good motivation.
Job Matters:
No doubt the jobs today bring lots of pressure and stress is high. The
employees leave the job if there is too much pressure on performance
or any work related pressure. It is quite common that employees are
moved from one process to another. They take time to get adjusted
with the new campaigns and few employees find it difficult to get
adjusted and they leave immediately. Monotony sets in very quickly
and this is one of the main reasons for attrition. Youngsters look jobs
as being temporary and they quickly change the job once they get in
to their own field. The other option is to move to such other process
work where there is no pressure of sales and meeting service level
agreements (SLA).
The employees move out if there are strained relations with the
superiors or with the subordinates or any slightest discontent.
Salary and Other Benefits:
Moving from one job to another for higher salary, better positions
and better benefits are the most important reasons for attrition. The
salary and offered from Foreign companies have gone up very high
and it is highly impossible for Indian IT companies to meet the
expectation of the employees. The employees expect salary revision
once in 4-6 months and if not they move to other organizations.
Personal Reasons:
The personal reasons are many and only few are visible to us. The
foremost personal reasons are getting married or falling in love or
change of place. The next important personal reason is going for
higher education. Most of the BE, MCA and others appear for GATE
examination or other examinations and once they get cleared they
quickly move out.
Poaching:
The demand for trained and competent manpower is very high.
Poaching has become very common. The big companies target
employees of small companies. The placement agencies have good
days for doing more business.
Employee’s Advocate:
1. Productivity
2. Service delivery
3. Spread of organizational knowledge
1. Early Interventions
2. Skill Interventions
3. Leadership Interventions
4. Communication Interventions
5. Reward/recognition Interventions
7. Selection Interventions
EARLY INTERVENTIONS:
The fact that large numbers of employees turnover in the first six
months of employment suggests that this is a critical time for helping
people adjust to new roles. Managing employee’s expectations should
actually start before employment.
SKILL INTERVENTIONS:
LEADERSHIP INTERVENTIONS:
Better Bosses mean lower turnover. Establishing performance
expectations, providing coaching and positive feedback, and
interacting in a fair and considerate manner are all things that good
leaders do to help new employees be successful and receive
enjoyment from their jobs. To impact turnover, make sure that
supervisory promotion and training programs have interpersonal
skills as part of their focus. Measure employee perceptions of
leadership behaviors and incorporate behavioral expectations into
leaders’ performance management expectations.
COMMUNICATION INTERVENTIONS:
REWARDS/RECOGNITION INTERVENTIONS:
Money can talk volumes, but the creative use of money is a key to
retention. Various kinds of contingent bonus strategies can be used to
help with retention, which are:-
1. Deferred bonuses are paid out incrementally with a
significant back-end payoff for a combination of performance
and retention. This type of bonus system can help guarantee
service for a finite number of years but also address long term
retention.
2. Performance bonuses can help an employee reach high
levels of income providing they can consistently demonstrate
superior levels of performance. This type of bonus can be very
effective if performance metrics are readily available and
additional costs are consistent with the value of superior
performance.
3. Salary Adjustments a third option besides the use of bonuses
a regularly salary adjustments for your star performers or an
individual with key skill sets so that they are not tempted to go
elsewhere for bigger paychecks.
JOB ENRICHMENT INTERVENTION:
SELECTION INTERVENTION:
3. Make employees realize that they are the most valuable asset of
the organization.
have fun.
Consider Feedback:
It is important to take feedback from employees through different
means and work with the HR department to iron out differences. As
industry experts point out, feedback can be got in two ways—during
the employee’s tenure, and through exit interviews. Inputs can be
secured from existing employees through various employee
relationship management tools. The Wipro Listens and Responds
initiative at Wipro aims to capture the concerns and grievances of its
employees. “The feedback we get through this tool will be analyzed,
and action will be taken on it. Our employees are very excited that
their feedback is being taken seriously,” says Sahoo.
Exit interviews help management learn the reasons why employees
leave the company; based on their revelations, the organization can
address the problems of existing employees, thereby curb attrition.
Spend Time Developing and Benchmarking Incentives:
Whenever the demand for a professional arises in a particular field,
the perks associated with the job start to pile up. Standard perks for
an India-based "fresher" (a new entrant in the IT services industry
with little work experience) typically include free transportation,
educational assistance, healthcare benefits, performance-based
bonuses, onsite cafeteria, stock options, and interest-free loans to
absorb the cost of relocation or maybe to finance the purchase of a
two-wheeler. According to Wipro's web site, its employees even have
access to an agency that will handle such "domestic chores" as paying
bills, thereby giving IT workers more free time.
Change Locations:
The high prices and resource crunch in top-tier Indian cities such as
Bangalore and Mumbai have led many companies to execute
alternative location strategies. Many vendors are sending work to
tier-two cities (Hyderabad or Chennai) or even tier-three cities
(Noida or Chandigarh), where labor and real estate costs as well as
attrition may be cut in half. Such benefits come at a price: The
infrastructure quality lags that of more advanced cities, and the
search to find qualified people may take longer.
Rotate Employees:
Employees who don't feel challenged by their work often leave. In
response, companies such as TCS have programs that rotate
employees into different disciplines about every two years and expose
them to new locations, projects, and technologies.
Offshore employees are asking for a clear career path with increased
responsibility and frequent recognition of achievement. Established
U.S. and European multinational companies have long had learning
programs that set expectations for performance goals such as learning
a particular tool or proprietary software. Companies practicing off
shoring need to provide new challenges and opportunities for skills
development through training or job rotation. It may become the only
reason your best employees stay with you.
Cost of Vacancy:
Cost of Replacement:
Pre Employment Administrative Expenses
+ Testing Costs
+ Staff Costs
Training Costs:
1) SEPARATION METHOD:
It is computed as: -
------------------------------------------ X 100
2) REPLACEMENT METHOD:
It is calculated as:-
------------------------------------------- X 100
3) FLUX METHOD:
It is calculated as:-
----------------------------------------------X 100
BENEFITS OF TURNOVER
Turnover is not bad always if it happens in a controlled manner.
Some turnover is always desirable and necessary for organizational
growth and development. The only concern is how organizations
differentiate “good turnover” from “bad turnover”. The term “healthy
turnover” or “good turnover” signifies the importance of less
productive employees voluntarily leaving the organization. This
means if the ones who have left fall in the category of low performers,
the turnover in considered being healthy.
6. There are people who are not able to balance their performance
as per expectations, lack potential for future or need
disciplinary action. Furthermore, as the rewards are limited,
business pressures do not allow the management to over-
reward the performers, but when undesirable employees leave
the company, the good employees can be given the share that
they deserve.
SUGGESTIONS
Employee turnover for instance may include cost that results from
employees’ slower work pace and increased absenteeism. A company
puts in maximum investment towards developing its manpower in
order to get best output which results in high profit and productivity
for the company.