Business Mentor, Consultant And Trainer
Strategic Business Management Includes Revenue
Good to note that you have used innovative method to control the attrition.
This matrix will work provided the employee is above average or below this level. A smart chap who knows his market worth may not get into filling this matrix.
When employee decides to quit, he makes his mind at least six months before or even more than that. Secondly, decision to quit the current company is because of frustration or because grass at other side is quite greener. When one gets jump of say 30% or 40% then will that employee stick to the current company?
You have mentioned that you could control 70% resignations through this matrix, however, would you mind to give break up of that 70% ? How many employees knew their market worth of this 70% ? Please make a note that I am not talking about "talented" or "intelligent" employee. Employee may be talented or intelligent but he/she may not know his/her market worth and may not have risk taking attitude.
I have seen candidates dictating their salary terms. My expectation is "----". Can you give this? If yes then fine otherwise let's not waste each others time. This is what they talk and they are so bold sometimes.
Lastly, the whole matrix is based on your perceptions or perceptions of the resigning employee. Ratings for most of the points would be same in standard companies. Secondly, how resigning employee would know the "culture" of the prospective company?
If the payment history to the suppliers is bad, then in what way resigning employee from say production or accounts should bother about that?
Mr Bidwaik if you look at the market then you would come to know higher the sales turnover of the company then that company sustains because of the credit by the suppliers or service providers. None of the supplier ever stops supplying material even when client overshoots the credit period. Therefore, why employee's resignation would depend on these factors?
Please talk to the owners of security companies or facility management companies and you would find that very reputed companies withhold their legible dues unnecessarily.
Notwithstanding my above observations, your efforts are laudable. I once again congratulate you for being creative. Whatever you could do that you have done. But then your approach may not hold the water in each industry. If we speak about IT or BPO, the less said the better!
Dinesh V Divekar
Beware of false knowledge; it is more dangerous than ignorance.
12th April 2012 From India, Bangalore
Thanks for the response…
I am working with multinational company and we have a strict performance development review system. We calibrate employees in forced ranking. So you understand the dimension of Forced Rankings. I will not retain the guy to whom we would like to let go…
I agree that my approach will not work in other industries, however most of the time the resignation is impulsive decision. I have not encountered with the situation where employee comes and says, “I want …..” Market value is subjective term. People have different priorities in life and they have the response to their priorities.
We placed our employee at fair compensation and have the concrete compensation philosophy.
The culture and other things about the Industry is the perception and hence include the Risk.
And this matrix is not based on my perception. These are the guidelines and different attributes which comes mostly during exit interviews.
Why employee leaves the job, Money, career development, company brand, family priorities, work life balance etc etc…????
We may have the opinion for everything happening in the world.., but if we work at ground level and understand the person, and people have a faith on us, they will listen…… and 70% solid performers, HPs, TPS EPS, (through forced ranking) are these guys.
However, it works for me, not necessary with others as this is only a matrix, there are different tools as well….
13th April 2012 From India, Pune
Indeed, It will vary company to company because every company has their own operational standards or lets call it as a "SYSTEM". Most of the points are included but i am not sure to what extent these points are going to help employers to retain their employees as you said "People have different priorities in life and they have the response to their priorities". Are employers going to modify their system or accommodate necessary changes for retaining the BEST TALENT WORKFORCE thus, resulting in smooth operations?
There is another point every organisation need to focus. All those departing employees takes a great of knowledge with them. This lack of continuity makes it hard to meet our organization’s goals and serve customers well.
With profound regards
13th April 2012 From India, Chennai
I am not recommending these dimensions, every organization is unique. For me this worked, because we have sound and transparent HR practices and we have focus on people more, hence we always enjoy the specific respect.
However every organization needs to learn and unlearn the practices. The point is how organization is focus on employee retention. How the organizations are focus on functional and dysfunctional attrition? And how your strategy support to this? These are the questions HR and company executives should ask.
However if the response to employee is valid and it is in line with the organizational standards and if helps then we need to think on positively. In certain cases, we may not be flexible, but I have seen example of permitting employee work from home for 6 months and it helped.
13th April 2012 From India, Pune