Manoj Mathew SM
Good morning seniors, I'm working as hr generalist in reputed US Mnc, recently my company facing a huge drop in sales which result in revenue deficit, apparently there is a series of dispute with salary for the past two months, most of the front line employees quit the company and employees from middle level management thinking of quitting, hr department is in a position to retain the middle level management, company is ready to take all possible ways to retain them and hrd is under hectic pressure to subdue this overwhelming situation, please help me for a better consensus to bring this situation under control
From India, Tiruppur
Dinesh Divekar
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Please ask your senior management to be proactive and inform all staff about downturn in sales/revenue and reasons thereof.
Explain measures taken to boost revenue and that they do not want to loose their human resources.
Open interaction will definitely help retain some of the employees who are worried about their future.
In the absence of confidence building measures,one cannot blame employees from leaving and ensuring financial survival.

From India, Pune

Attrition rate can be brought down only when you take measures for employee satisfaction.

Now coming to your problem....first of all, you need to arrange an open discussion with all employees to make them aware about the current situation. On emotional ground, appeal to them to be with the organisation in this bad phase. If there are any appraisals/salary related issues among employees, then give assurance that these problems will be solved once you all overcome this phase. Ask employees to put their views on this business downfall. Also collect suggestions from them to take corrective action. The whole idea is to create a family environment in the organisation and make all employees feel that they are a member of this family and the company is their 2nd home.

Promoting some employees with additional responsibilities will also help you to retain them. But the promotions should be done fairly. No biasing should be entertained else it will give bad results.

Also If your organisation is running short of funds for salary then you may put a proposal in the open discussion forum to release a certain percentage (say 70%) of salary for seniors and 100% for juniors every month till the time you overcome this phase. Take consents of all seniors in this to take them in confidence.

During downfall, hiring new employees is not advisable. Try to overcome this with existing employees by the way of motivating them . And once you overcome that at certain extent then you may hire new employees.

From India, Delhi
Dinesh Divekar

Dear Manoj,

What is the nature of your business? How many employees do you have? Why there was decline in sales? Is the sale linked to the global economy? If your company is facing problem of employee attrition then did you study the pattern of attrition? If yes on what parameters?

There was similar query in the past on this forum. You may click the following link to refer the reply:

About your post: - Well gentleman, your post is a reflection of confused mind. Far from having transitory sentences, there is clear disconnect between two sentences. You have inserted irrelevant words in the sentences. This incoherent state of mind hardly goes well for an HR Generalist of "reputed US MNC". Therefore, if you wish to address the challenge of employee attrition then come of confusion first.

In the business there are ups and downs. Why drop in the sales has caused the "salary dispute"? Have you put on hold the monthly salary of the employees? Why decline in sale became cause of employee attrition? Have you conducted the exit interviews? Is there any pattern in the employee exit? Because of the drop in sales, did your company fire few employees? Did these terminations trigger fear psychosis and employees started quitting on their own rather than waiting for termination?

If decline in sale is the cause of attrition then you must improve sales. Who has studied the drop in sale? What are the challenges?

There are so many questions associated with your post. Please clarify.


Dinesh Divekar

From India, Bangalore

Dear Manoj,
In addition to valuable suggestions, as provided by Respected Sr. Members, we will like to add one more probable reason of Attrition "Higher Sales Targets" of the Company.
In fact as per recent Job Market Trends, we find that the Young Candidates are are not that much comfortable with Higher Sales Targets. With the result, they always think of switching their jobs as & when they come across any suitable opportunity.
Optimus Consultants

From India

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