Attrition and Retention

Under the Supervision of: Presented by:

Ms. Sunaina Kanojia
Anupreet Singh
Arvind Singh
Dheeraj Deshmukh
Divya Jyoti Behl
Mohit Yadav
(MHROD 3rd Sem)
 ATTRITION

OUR ASSEST WALK OUT OF THE DOOR

EACH EVENING.WE HAVE TO MAKE
SURE THAT THEY COME BACK THE
NEXT MORNING .

- NARAYAN A MURTHY
CHIEF MENTOR OF INFOSYS
 What is Attrition ??

"A reduction in the number of employees through

retirement, resignation or death"
Reasons why an employee leaves an organization

 Monetary factors

 Lack of good working condition-

 No Flexible work schedules.

 Cont…

Lack of respect-

 Very Few Supportive colleagues:

Organization is more concern toward

business

Increase in favoritisms
 Cont…
Employee needs pride in where they work
& what they do

Lack of appreciation

Lack of challenges in job

The job or workplace was not

as expected
 Cont..

The Mismatch Between Job and

Person

Too Little Coaching and Feedback

Lack of support
 Cont…

Stress From Overwork and Work-

Life Imbalance

 Loss of Trust and Confidence in

Senior Leaders

Less frequency in giving

rewards.
 How to Calculate Attrition?

 The formula for calculating attrition rate is; -

Attrition Rate % =

Total no of resignation/month (Whether voluntary or compulsory) x 100

(Total no of employee in the beginning of the month + total No of new
joinees ₋ total no of resignation)
EFFECT ON ORGANIZATION IF ITS EMPLOYEE
LEAVE
 Loss of productivity
 Replacing qualified employees
 Poor retention creates a “revolving door” culture within the
organization lowering morale and confidence.
 Cost of overtime or temporary help
 Recruiting costs
 Interviewing costs
 Time spent in orientation
 What is Employee Retention?

 Employee retention is a process in which the employees are

encouraged to remain with the organization for the
maximum period of time or until the completion of the
project. Employee retention is beneficial for the
organization as well as the employee.
 Importance of Employee retention.

 The cost of turnover

 Loss of company Knowledge
 Interruption of customer Service
 Turnover leads to more turnover
 Goodwill of the company
 Regaining efficiency
 Retention Strategies

 Hiring right talent

 Communication
 Set clear expectation
 Proper Rewarding
 Build high degree of recognition
 Reducing bureaucratic rewards system
 Key Areas in Employee Retention

Compensation Environment Growth

Relationship
Support
How Compensation and Benefits are related to Attrition
and Retention?

1.Offer Compensation- Attractive & Competitive

 Fair compensation alone does not guarantee employee
loyalty, but offering below-market salaries makes it much
more likely that employees will look for greener pastures.
 Use of Industry Surveys and other data tools to stay
informed on wage trends.
 To benefit both company and employees, tie increased one
time performance pay to meeting specific goals aligned
with business objectives.
How Compensation and Benefits are related to Attrition
and Retention?
 Collect data from exit interviews to document trends from
your departing employees, and then use this data to make a
business case for increasing salaries across the board.
 Go for Employee Engagement Surveys / Esat.S, to find out
what perks, benefits and forms of compensation other than
money will help keep them motivated.
 Let employees decide their own compensation package /
reimbursements once the quantum is fixed.
How Compensation and Benefits are related to Attrition
and Retention?

2.Benefits need to be quantified & qualitative

 Although benefits are not a key reason why employees stick
with a company, the benefits you offer can't be markedly
worse than those offered by your competitors and like
minded industries.
 Group Medi-claim Insurance Scheme and Personal Health
Care (Regular medical check-ups)
 Corporate Credit Cards and Discount Coupons
How Compensation and Benefits are related to Attrition
and Retention?
 Cellular Phone / Laptop and other latest technology on-
board
 Interest free loans for higher educations
 Performance based quarterly incentives
 Flexi-time and Flexible Salary Benefits
 Wedding Day and Birthday Gift
How Compensation and Benefits are related to Attrition
and Retention?

3.TRAIN YOUR FRONT-LINE, MANAGERS AND

ADMINISTRATORS.
 It can't be said repeatedly that people stay or leave because of their
bosses and not the companies.
 Make sure your managers aren't driving technologists away.
 Harp upon the competencies and substantially invest in human
capital irrespective of ROI.
How Compensation and Benefits are related to Attrition
and Retention?

4.ROLES AND RESPONSIBILITIES NEEDS TO BE

DOVETAILED.
Make sure your employees know
 what is expected of them every day, every month and every year
 what types of decisions they are allowed to make on their own
 to whom they are supposed to report.
How Compensation and Benefits are related to Attrition
and Retention?

5: ENHANCEMENT, ADVANCEMENT AND PROGRESSION

OPPORTUNITIES.
 To foster employee loyalty, implement a career ladder and make
sure employees know what they must do to earn and go in for
progression.
 A clear professional development plan gives employees an incentive
to stick around.
How Compensation and Benefits are related to Attrition
and Retention?

 Do away with you Performance Management System if it has turned

to NOVA (Non Value Added Activity)
 go in for instant performance rewards.
 Think! Think out of the box!
How Compensation and Benefits are related to Attrition
and Retention?

6: OFFER RETENTION BONUS:

 Employee longevity typically is rewarded with an annual raise and
mandatory vacation time after three, five or ten years. But why not
offer other seniority-based rewards such as a paid membership in the
employee's professional association after one year
 a paid membership to a local gymnasium and clubs after two years
 full reimbursement for the cost of the employee's formal dress.
How Compensation and Benefits are related to Attrition
and Retention?
 Build a high degree of recognition value into every reward you
offer.
 Reduce entitlements and link as many rewards as possible to
performance.
 Troubleshoot your reward system to make sure that what it is
rewarding is what you really want to happen.
 Give employees a choice of rewards.
 Increase the longevity of your rewards
How Compensation and Benefits are related to Attrition
and Retention?

7: OFFERING STOCK OPTIONS.

 ESOPs are a sign that the organisation recognises the role of
the individual in its performance, and is willing to share the
benefits with it.
How Compensation and Benefits are related to Attrition
and Retention?

8 : BEST PRACTICES.
 The best companies focus on professionalization, appraisal,
employee satisfaction, and participative decision-making.
 However, their higher-than-average retention levels can be
attributed to the way in which they go about these initiatives rather
than the choice of initiatives themselves.
 So, the best companies set themselves stretch targets on each
dimension, and then, try and better them.
 References

 Business world- Grow Talent list of Great Places

to Work® 2nd Edition brochure for application,
May 2006 and excerpts from 2007 Great Place to
Work® Institute website retrieved on March
23rd,2007,at
http://www.greatplacetowork.com/gptw/index.
php
 Stephens Robbins, Organizational behaviour, Pearson
education ( 2008) ,page 234.