I would suggest you to have an Exit Monitoring System in place to analyse the reason for resignations. Gather past 6 months to 1 year resignees data and find out which reason is pop up prominently. If Exit Interview system is not in place please introduce it.
If better salary is the primary reason analyze your salary pattern whether the same is on par with your peer group companies of similar business.
If work environment is the reason please introduce employee engagement activities, one to one sessions, annual get to gather, fun games etc.
Employees of today's generation not only look for salary part but equally give importance to opportunity for growth, job satisfaction, work recognition and promotion matching the performance, transparent HR policies etc. Please introduce Performance Improve Plan (PIP) if not there already.
Though we cannot eradicate attrition totally but can minimize and keep it under control when best HR practices are followed.
Analysis of reasons for high rate of attrition is key to preparing the plan of action.
Your analysis should throw up the following factors together with numerical data:
1. Which department has the highest number of attrition rate,
2. Which category of employees say Salesman, Production Engineer, Turner etc are leaving the most,
3. After how many years' of minimum and maximum service in the company, after which they are leaving,
4. Which competitor or other companies you are loosing your employees to,
5. How does your attrition rate compare with the Industry benchmark,
5. What are stated prominent reasons for leaving the job - Inadequate salary and benefits, bad boss, long working hours, no career growth, lack of appreciation for good work, pull to join multinational/ reputed big companies, long distance from home to work place or any health hazard.
Analyse numbers for each of the applicable set of reasons and rank them in terms of the highest to the lowest ,
It is this analytical data which will point towards various areas of action plan depending on which skilled category of employees or which competencies you want to retain.
It may call for revising your salaries and benefits, arrange powerful training or counselling, putting promotion policy in place for career advancement or better safety measures etc. just to mention a few.
Above are just quick trigger thoughts for you to add your own and take it forward.
V. L. Nagarkar