>Anyone who has been in Tirupur?
Can you provide some solution to control the attrition rate in Tirupur?
At present the rate is 40-60% after diwali season.<
Am I correct that you hire for competence?
When employers hire for competence and talent their attrition rates are significantly reduced and new hire productivity increases.
bagema is ref to a normal scenario prevalent in garment manufacturing cos.
mostlt tailors etc leave every month, normal attrition is very high due to lack of compliance with labour norms.
I delhi, we have several areas for industries namely okhla etc. if you study the labour law compliances, in 90-95% of the cases the cos are not willing to even provide them PF/ ESI/ bonus/ gratuity/ leaves etc..
if you see it form the persoective of a worker, he gets paid on "per piece" rate which is not adequate.. a skilled worker makes 5-6000/- after a back breaking schedule. pls note there is no concept of salary except for "tailors in sampling " or engaged in some sompicated designs...
now the tailors work hard for a few months and leave to their hometowns..
are they to blame ?
a simple step like providing creches as mandated by the law can do wonders for the worker's family..
the family income of a typical worker "DOUBLES" and serves as a good retention tool...
What I have observed is that
after Diwali they go on a long leave. When they come back it so happens the management is reluctant to get them back as they would have lost many hours.
By this time due to requirement new recruitments would have taken place.
(Every export oriented company is more worried about the time they have to keep up or else the complete lot would be rejected.)
About the salary/wage part I would say that in the down south for textile workers as on date the salary is a good one which may not be available in other parts of the country.
Facilities - Nowadays the parties are insisting Social Audit mandatory for exports. Which makes all the facilities like PF, ESI, Creche, Canteen, Fire safety, Welfare officer are all available.
Beyond which I have seen, in one of the best export house where in the facilities are excellent then too they have attrition rate of around 65% last year after Diwali.
Its famous for export garments and you will find numbers of spinning mills at every nook and corner. Output is exported all the countries in the world.
This industry mostly employs casual labourers and temp staffs to work in textile manufacturing units. Reason they quit job is due to concern of the management to thier queiries. You can retain them by providing good food at free or concessional rates, insurance, child care, schooling, jobs to the family members on due considerations, housing facilities etc.
Defining Attrition rate: "the rate of shrinkage in size or number"
Introduction: In the best of worlds, employees would love their jobs, like their coworkers, work hard for their employers, get paid well for their work, have ample chances for advancement, and flexible schedules so they could attend to personal or family needs when necessary. And never leave.
But then there's the real world. And in the real world, employees, do leave, either because they want more money, hate the working conditions, hate their coworkers, want a change, or because their spouse gets a dream job in another state. So, what does all that turnover cost? And what employees are likely to have the highest turnover? Who is likely to stay the longest?
Background of article
The IT enabled services (BPO) industry is being looked upon as the next big employment generator (Nasscom predicts 1.1 million job requirement by the year 2008). It is however no easy task for an HR manager in this sector to bridge the ever increasing demand and supply gap of professionals. Unlike his software industry counterpart, the BPO HR manager is not only required to fulfill this responsibility, but also find the right kind of people who can keep pace with the unique work patterns in this industry. Adding to this is the issue of maintaining consistency in performance and keeping the motivation levels high, despite the monotonous work. The toughest concern for an HR manager is however the high attrition rate.
In India, the average attrition rate in the BPO sector is approximately 30-35 percent. It is true that this is far less than the prevalent attrition rate in the US market (around 70 percent), but the challenge continues to be greater considering the recent growth of the industry in the country. The US BPO sector is estimated to be somewhere around three decades old. Keeping low attrition levels is a major challenge as the demand outstrips the supply of good agents by a big margin. Further, the salary growth plan for each employee is not well defined. All this only encourages poaching by other companies who can offer a higher salary.
The much hyped "work for fun" tag normally associated with the industry has in fact backfired, as many individuals (mostly fresh graduates), take it as a pas-time job. Once they join the sector and understand its requirements, they are taken aback by the long working hours and later monotony of the job starts setting in. This is the reason for the high attrition rate as many individuals are not able to take the pressures of work.
The toughness of the job and timings is not adequately conveyed. Besides the induction and project training, not much investment has been done to evolve a "continuous training program" for the agents. Motivational training is still to evolve in this industry. But, in all this, it is the HR manager who is expected to straighten things out and help individuals adjust to the real world. I believe that the new entrant needs to be made aware of the realistic situation from day-one itself, with the training session conducted in the nights, so that they get accustomed to things right at the beginning.
The high percentage of females in the workforce (constituting 30-35 percent of the total), adds to the high attrition rate. Most women leave their job either after marriage or because of social pressures caused by irregular working hours in the industry. All this translates into huge losses for the company, which invests a lot of money in training them.
If a person leaves after the training it costs the company about Rs 60,000. For a 300-seater call centre facing the normal 30 percent attrition, this translates into Rs 60 lakh per annum. Many experts are of believe that all these challenges can turn out to be a real dampener in the growth of this industry. This only raises the responsibility of "finding the right candidate" and building a "conducive work environment", which will be beneficial for the organization. The need is for those individuals who can make a career out of this.
All this has induced the companies to take necessary steps, both internally and externally. Internally most HR managers are busy putting in efforts on the development of their employees, building innovative retention and motivational schemes (which was more money oriented so far) and making the environment livelier. Outside, the focus is on creating awareness through seminars and going to campuses for recruitment.
Major Worries for the Industry
* Reckless Start-ups- a vast majority of the 310 start-ups are headed for a dead-end (according to Nasscom). Their capacity utilization is less than one of the three shifts. Many of these companies that converted their empty basements and warehouses into BPO units or firms with $10 million-20 million VC funds that ran out of cash without creating anything more than white elephants. They have driven down prices to grab business, but have failed to deliver. They were always clueless about people, processes or technologies- the three key elements of the BPO business.
* Poor Infrastructure- the industry has more to worry about than just reckless start-ups. Primary among those is infrastructure. While telecom networks are state of the art, getting a connection still takes up to three months. Unreliable power supply is forcing units to create their own back-ups. Roads are bad and airports are in dire need of repairs and upgrades.
* High Attrition-another major problem is the high attrition and growth aspirations of the workforce. At least 60,000 of the 171,000 workforce change jobs every year. About 80% of them look for better leaders. Team leaders want to upgrade to supervisors, quality professionals or operations heads. The HR problem threatens to soon become grave. Good agents are becoming hard to find and with tardy infrastructure, big moves to the much talked about smaller towns will take longer. This means costs will rise making it difficult for small VC-funded companies to survive.
Global Average 24%
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