By extending the notice period from one to three months, I do not think that the attrition rate will fall. Labour turnover is certainly a serious issue in the private sector. A lot of studies have also been conducted about it. While major theories focus on job satisfaction, work environment, and employee relations, salary and perks contribute only a smaller share. However, if you verify the work environment and job satisfaction that a government employee gets from his job, you will find it to be minimal, yet the attrition rate is very low. This is because of one factor only - job security.
In the private sector, the attrition rate could be lower if we could provide job security. An establishment that does not provide at least for statutory social security measures like EPF and ESI will face more attrition than an establishment that provides for such measures and ensures old age or superannuation benefits. In the globalized business world, even though the salary offered is very high, many find the job to be insecure due to the absence of good schemes, resulting in a high attrition rate.
Therefore, the employer should take ownership of high labour turnover rather than accusing employees. To start with, offering security could lead to a downward trend in the attrition rate.
Regards,
Madhu.T.K