Strategies for Managing Frequent Resignations and Improving Employee Retention

Dear all,

In my company, employees are frequently sending resignation letters. Why is this happening? Most of the individuals are submitting resignation letters from the same department. Please guide me on how to address this issue. Kindly reply to me as quickly as possible. I am planning to organize a meeting with my management.

Thank you.

It can be due to parity in salary, absence of incentives, improper HR management, lack of trust in the future of the company, poaching by your competitor, or something else. Why don't you check with the employees who have submitted resignations?

Dear All,

Thank you very much for your prompt reply. I have already inquired about the reasons for the resignations from the employees who are leaving, and they have mentioned that it is solely due to the salary increase. In response, we had raised the salaries of some employees who have demonstrated outstanding performance over the last two months. However, it is surprising to note that one of the employees who received a salary hike less than two months ago has submitted their resignation once again.

Thank you.

I think they are having issues with the present working environment - like colleagues, bosses, etc. Sometimes, even an incentive like money cannot keep them from going if the bosses are inconsiderate. Find out the real issue. They are probably just using money as an excuse.

Hi Sachin,

I hope you have conducted exit interviews for the resigning employees. Please try to determine the exact reasons from them. Based on their feedback, you can gather insights and analyze the situation. This may help you generate some ideas. I hope this approach will work for you.

Best regards,
Mujeeb

The best step here is calling for a skip meet. Call all the unhappy employees in a group. Ask them for the issues. I am sure, when they will be in a group, speaking will be easier. Do not note down anyone's names. Just take general feedback on the issues faced by them. Then try calling people one by one and checking the issues already highlighted. This will give you a clear picture of the issue and will guide you to the next step.

Do let me know the results.

Rohan

Hi earlystar,

Probably in terms of salary, management, or the attitude of the manager in that department. Consider the ripple effect of change and conduct exit interviews. I am certain that you will get the answers you seek.

Nice to see simple answers for a complicated question!!!

Exit interview? Salary increase? Meetings? Counselling? Dept Manager?

Before you take any action, systematic analysis is critical.

I am just giving a few steps and you can work on developing this further.

Step 1

What is your industry, and what is the Employee Turnover percentage in your industry and in your location?

Step 2

Levelwise, what is Employee turnover, and if you can get this data from some more companies in the same industry, it will be good.

Step 3

Department-wise analysis.

Step 4

This is very important as you start collecting data on skill sets. For example, in a recent survey I conducted, we found out that welders keep moving out often. The company kept increasing salary levels, but they keep moving out. Demand in the market for this skill is so high, any adjustment in salary level did not help. It did bring it down slightly, but it is still a challenge.

Step 5

Collect info about the years of experience and the turnover. I have surprisingly come across in one study that the employees with less than two years of experience keep moving out, and when they stay for more than two years, they stay longer. This is more to do with the Management's policy on promotions.

You may add a few more analytical points and complete this analysis in 7 to 15 days, depending on the number of employees and availability of data.

Once you complete the analysis, identify the key area of concern. It could be a department, it could be a skill, and don't ever compare your company with companies of different sizes. For example, if your company size is say 200 with a turnover of 50 crores, then comparing yourself with Infosys, TCS, or Wipro has no relevance.

Again, in manufacturing companies, employee turnover is reasonably lower than in IT and BPOs.

Another key factor is your company's growth. If your company is not growing and alternatively if it is degrowing, any exercise you do will be of no use unless the Top man himself meets people and motivates them to stay back.

Last but not least, do you indicate stability to people? How many people in a month, in a quarter, or in a year, does your management ask to go out due to performance or excess? If your strength is say 200 and if you ask at least two people to go out in a quarter, it means 8 in a year. This is closer to 5 percentage points in a year. The percentage looks small, but the impact it has on employee turnover is very high. The only way you can reduce it is to have a correct and the best recruitment process to ensure that you select the right candidate for the jobs.

I do not know whether you read such a long note. However, I would like to reiterate proper analysis holds the key to containing Employee Turnover. Don't jump into action unless you complete the analysis.

Exit interviews at least in many parts of India do not shed light. Candidates going out will give some info to the department, something else to HR, and interestingly, a totally different story to the CEO!!!

Sivasankaran

Hi, I think you can speak to the candidates who have already resigned to find out their expectations and promise to keep their names confidential. Communicate their expectations to the respective departmental heads. In this way, you will be the link between the employee and their boss. Remember that not only money but sometimes acknowledgment and appreciation for their work can help retain people. It works! All the best!

You have to take into confidence all HODs and ask them about any hidden issues which are prompting people to submit their resignations. Additionally, start conducting exit interviews to determine the reasons behind employees leaving. If salary disparity is identified as an issue, consider implementing a mid-term correction. Also, investigate if there are any rumors circulating about the unit closing.

Dear,

Basically, you need to know the exact reasons for such resignations. To do that, you need to spend time with the employees leaving the organization by conducting their exit interviews.

Analyze the data and reasons for the departures; this will highlight the areas that require discussion with management.

If people are leaving from the same department, you should connect with the Head of Department and inquire if possible.

Based on my experience, employees will not resign if there is no problem, especially in one department. The only reasons why employees resign are the following:

1. The salary does not meet their needs; no salary increase.
2. Hazardous working environment.
3. The person managing that department is the problem.

The only way to solve this is to investigate and ask someone in that department what is going on.

Hi Umesh,

Nowadays, the recession is coming to an end, and it's becoming a trend because new opportunities are emerging in the market with good pay. To navigate this transition successfully, you need to implement good HR practices.

Best regards,
[Your Name]

Dear Early star,

It is a frequent issue in most organizations. You need to start by finding out the reason. It may be salary - or it may be because of someone within the organization. It may even be because of the senior management. For that, you need to find out from them. Don't you have any good friends in that department or other departments who may be willing to tell you what happened?

Anyhow, may I ask what industry you are working in?

Hi,

I think you should take one-on-one sessions with your employees to find out the reasons and analyze the situation.

Hi, earlystar,

It is nice that you are planning to have a meeting with management, but prior to that, you should be well aware of possible reasons for the resignations of employees in the same department. Please share if it's a manufacturing or software organization, product-based or service-based. Are there any urgent concerns for employees such as lay-offs, lack of new projects, no promotions for a long time, etc.? Only then will you receive support from the management.

Regards,
Trupti

Hi,

In your organization, the employees may not be satisfied with the management techniques, work pressure, and environment. You need to have an open house meeting every month to find out the problems of the employees. They may be seeking more support from the management, but they are not able to get it. There is not only a salary problem in the company. The main issue is whether they like the work assigned to them, the qualifications of the employees, appraisals, work environment, team management, superior behavior, and attitude towards work.

During exit interviews, inquire about the reasons for leaving the job. Ask for suggestions from both current and past employees to improve work conditions and employee stability.

Thank you.

Dear Earlystar,

First of all, you have to consult with the department heads and have a meeting with everyone to find a solution. Money is essential for the success of any organization.

Thank you.

Hi,

Please don't worry. Please immediately conduct stay interviews in your organization. In Cite HR, search for stay interviews; the information is available there. Also, search on Naukri.com with your employer login in Resdex by typing your company name. This way, you will be able to find out the last login of employees.

Cheer,
Minal

Hi,

Doing an exit interview won't let you restrain the employees who have already resigned. But a quick suggestion: if your employee strength is not on the higher side, you could possibly arrange a team meeting or, if possible, individual meetings with all the employees to understand what they would expect in return for their work. It might not just be a monetary issue; it could be work-related, personal, or any other issue not from the HR playbook.

Therefore, my suggestion is not to let the employees reach the exit interview stage. If possible, try meeting the employees individually or in a team meeting, and then discuss their feedback with management to work on addressing their concerns.

Regards,
Prateek Tewari

Dear Early Star,

Please tell me your company name and where it is located. I will then be able to provide you with the reasons for their departure from the job.

S. Gnanaraj

Dear All,

It's very nice to see different kinds of opinions from all of you. Thank you very much; I will certainly do the analysis for this case. We are a software company located in Chennai. One more thing, I met the individuals who submitted the paper, and they mentioned that due to the good opportunities, they are resigning. They have secured placements in top IT companies.

Thank you.

Hi Sachin,

From the ongoing discussions, it's not clear whether you have conducted the exit interviews. But better late than never. There are 2 options:

1. Please call up those people who left and if they are ready to share their observations/feelings, make a note of the same.
2. Start conducting "Stay interviews". This will help you understand the expectations of the employees who are still existing. What can be the sore areas. You can still take corrective actions.

Hope this helps.
Archana

Hi,

Here, I have attached the document for the exit interview, which I found on this website some time back. Please check it out as it may be helpful.

Dear,

These issues frequently occur in all organizations. This is a common problem. First, check your organization's policy. Conduct exit interviews with employees. The employees are changing bosses, not organizations. In response to your question, this seems to be happening in a particular department. It indicates that employees are not happy with their boss.

This is my personal opinion.

Regards,
Nanji

People are resigning because management is not up to par. Management may not appreciate the value of employees' performance, and a proper planning system is lacking on the management side. Management is the backbone of the company. If it is improved, then people will love to work.

Dear Earlystar,

I suggest you have a one-on-one talk with the employees who are leaving. Analyze the present situation. Do they belong to a particular department? Maybe all these employees are offered a better working atmosphere by somebody. I don't think money is the reason. Anyway, wish you all the best.

Thanks and regards,
Kalyani

Hi,

Since you have stated that the exit is happening frequently from a single department, try to find out from their team if everything is okay or if there is anything wrong with the Team Lead. It's better to conduct exit interviews with the people leaving the company so that you can gain a better understanding of the attrition rate and plan accordingly.

Hi,

In addition to the opinions expressed, I would like to add that no exit interview/feedback from former employees will yield concrete results until and unless it is well acted upon! Initially, people share their real reasons for quitting like work culture, behavior of managers, etc., but when they see that others cited the same reasons for change and nothing substantial was done on the part of HR to plug the existing loopholes, they stop sharing their real concerns as well. The reason being that nobody wants to be the whistleblower and ruin relations with (former) employers in this era of reference checks.

Thus, I believe that initiating proper action to control any setback that has come to your notice so far, to win the confidence of present employees to retain them, is much more important than merely conducting feedback to find out reasons.

Hi Earlystar, your post seems to be a bit late. Anyways, get back to your basics. Try Maslow's hierarchy of needs theory to identify the problems faced by your employees; it might help. Let me know if you want me to elaborate.

Hi friends,

My director has asked me to issue a memo/warning letter to an employee who has not been performing well. Despite repeated verbal warnings, there has been no improvement in his performance. We do not want to terminate his services without giving him a chance to prove himself; therefore, our first course of action would be a written warning.

Kindly help me with some good formats that will assist me in drafting a well-prepared memo. I am hoping for a favorable response from your end.

Hi earlystar,

An exit interview does not mean to know the reason for leaving; rather, it is an opportunity for the organization to hear feedback about the system directly from someone who has been a part of it for a certain period. During an exit interview, try to explore different aspects such as office cleanliness, the quality of peer-to-peer relationships, satisfaction with the insurance policy, and so on. By asking these questions, you will gain valuable insights and feedback.

You will receive the answers you seek by approaching the exit interview in this manner.

I have the following suggestions:

Conduct an employee satisfaction survey and distribute it to all members of your organization to assess the following:
- Motivation rate
- Communication
- Services
- Training & development
- Satisfaction with the job type
- Tasks given
- Salary

Also, make sure to inquire about what would motivate them to stay in the organization.

Dear Friend,

Please do not try to be a "Superman" and solve all the problems yourself. Instead, empower the line management to handle the issues. If all separations are occurring from one department, as an HR person, gather information from the Department Head. Organize a meeting with the CEO and the Department Head. Separations are often more related to the behavior of the boss rather than just policies alone.

Thank you.

Dear Friend,

There is a process called an exit interview, which is a legal compliance for HRD. Please conduct the same and analyze the data; you will get the actual vibe of the employees. Bonds are illegal, have no validity, and will harm your company's reputation. Nowadays, employees are very much updated and are free to choose.

Regards,
Viswanathan

Many have been suggesting exit interviews here, but the problem with them is that employees just won't open up. This is probably because they don't want to leave on a sour note and have only good things to say about the company. Also, I think they just don't see the point of explaining (as they would've already received an offer). Most of the time, it's simply "Leaving for better prospects" or one-word answers, no matter how much you probe or try to talk it through!

Same is also happening in my company just because of low salary. Other companies are offering approximately 50-60% more than our current salary. I request for a revision of the salary structure and to share the new structure with employees. This is crucial to maintain the faith of the employees!

The main solution is not having a bond as someone said. It's so gross. How many more days can you hold them in bond? When the bond is over, people will quit. Managers are mostly the reason why an employee quits. Find out from the employees of that particular department and show that you are genuine and would take necessary action on that erring manager. The associates will believe you.

In the project I left, people leave every month. We used to have a party thrown by those employees so we used to have such a thing every month. Junior colleagues also left. So, you would be knowing the problem. I left because I did not see any career growth. Cash growth is also a part, but career growth is also more important. When an associate feels that his manager or anyone above the manager is not sincere about your growth, then the associate will not have the interest to work anymore. Before that happens and the entire department collapses, take the right action.

Hi,

As our other friends mentioned, you should conduct detailed exit interviews. Apart from that, you can hold formal or informal sessions with various teams in your organization to conduct pulse checks. You can also engage in skip-level meetings at all levels. These kinds of sessions will provide you with insights into various departments or employees at different levels. Then, you can analyze the information and come up with next steps.

Let me know if you require more details.

Regards,
Mithun Gupta

First of all, it's clear there is no employee engagement with the organization. Please work on this.

Secondly, it could be a problem with a particular manager of the department who could be suffering from altruistic behavior and also making unrealistic demands from subordinates in terms of work. Maybe he/she uses abusive language, insults—in short, a bully. In these days, who would put up with such behavior?

Please take feedback from the remaining employees in an informal chat, and you may get clues for such an exodus.

Thanks

Dear Friend,

You should conduct an honest "Climate Survey" to identify the root cause/causes of such extensive employee dissatisfaction. Once you are able to list out the causes, then find ways of addressing them. Only then will you be able to stem the rot. If the employee strength is not too large, make it a practice to sit with each one of them, say six employees per day depending upon the amount of time you have each day. You will then discover the real causes of such widespread disgruntlement, and you can then decide upon the solutions.

Best Wishes, Vasant Nair

Check the head of the department's attitude and behavior. There may also be salary disparities. Additionally, the department's dominance is being demanded. If more entry-level personnel were hired two years ago, that may also be a reason. Is the salary paid on the 31st, or is there a message of any financial constraints circulating?

Did you have a discussion with the CEO? What's his opinion? Consider hiring an OD Consultant to engage with the CEO as they are more equipped to "talk to the CEO".

Hi, first, to understand the reason why it happens during exit interviews, the best way could be to understand the psychology of the people. In exit interviews, it is very difficult to uncover the actual facts because nobody will fully disclose the reasons, except for the basics. While salary alone may not be the primary factor, in many cases, there are other influences on salary that may not be the root cause of the issue. Therefore, conducting an Employee Satisfaction Survey or comparing your current system, policies, and procedures with similar industries can provide valuable insights. By making comparisons and developing an action plan based on these findings, you can address any underlying issues effectively.

1. Conduct an exit interview with a pre-designed form (you can download forms from the internet). Let the employee fill in the same and then fix a date and time to go through it with the employee. Have the meeting only with HR, and on the last day, the employee will be willing to speak.

2. Identify and address reasons; don't use salary hikes as a solution, leave that to the annual increments; otherwise, it will become a habit.

3. Have some team-building activities; take around 1/2 hour from work once a week.

4. Have informal discussions with employees during lunch to identify the pulse of the employees.

5. Sit with the concerned managers, check their management style, and make employee turnover control a Key Performance Indicator (KPI) for the managers.

Good luck

Employees give resignations for various reasons, such as finding better opportunities than their current position. However, in cases where multiple employees are resigning from the same department, it is evident that there may be underlying issues. I am confident that these employees are not feeling satisfied under the leadership of the head or manager of that department. Therefore, it is crucial to understand the reasons for their departure by engaging in open communication and asking for feedback.

Thank you.

Dear all,

Thank you all for the replies. I am planning to have meetings with all team heads and team members separately. I have conducted exit interviews with individuals who are in their notice period, and they have mentioned that they are resigning for better opportunities. I will resolve this issue as quickly as possible and will inform all of you accordingly. Thank you for your support. Thank you once again.

There can be multiple reasons due to which employee turnover is high. I think you should go for a climate survey where you cover all factors that directly and indirectly affect employees in their jobs. The results of the climate survey will clarify why employee turnover is high. I suggest you conduct the climate survey through some consultants.

Regards,
Zakir Tahir

Hi,

There are many reasons why people resign:

1. If the employee is underpaid (salary issue).
2. If the employee is underutilized (less usage of his/her talents and caliber).
3. Most importantly, his/her immediate supervisor; maybe the attitude of the supervisor forced the employee to resign.
4. If the employee is unnecessarily overloaded with work.
5. Sometimes, the work culture and office environment force the employee to resign.
6. Poaching of employees by competitors.

To know the real reasons, please conduct exit interviews with employees who are leaving the company.

Regards,
Dev

Hello, sir.

Please identify any grievances among employees who are leaving and resolve any salary issues by discussing them with management. Also, communicate with the floor-level staff to uncover reasons for any concerns discreetly. If there are any serious matters, promptly escalate them to top management without any delay.

Thank you.

I think the relationship between the management and the employee is not congenial. When you give an increment to someone and ignore the others, even though their performance is not satisfactory, the working atmosphere becomes imbalanced.

Hi,

According to me, this is a serious issue. Please conduct exit interviews for all those people who are leaving and find out the exact reasons for their departure as there can be many issues. I believe that the main reason for the high turnover rate in a department could be the employees' relationship with their boss and the department's policies. If this is indeed the issue, please have a discussion with the specific individual to address the problem promptly.

Regards, C. M. Mohla

Hi,

An exit interview will help you to a certain extent in understanding the reasons for employees leaving. Casual interactions with other team members can also be beneficial. Additionally, have personal interactions at your level and avoid quoting them. If you receive any negative feedback about the company or bosses, work to address such issues promptly.

Prakash

This is a major issue that many companies face. I suggest you do the following:

1. Try to get the exact reasons from the employees why they are resigning.
2. Hold a meeting with all employees (10 employees at a time), then with team leaders, and finally with managers.
3. One serious issue may be the new supervisors. For example, if I have been working in a company for 3 or 4 months and the company appoints a senior to me who doesn't even have 1% knowledge about the process and just keeps giving orders, then that's a problem.
4. Try to be fair to all employees. First, promote those employees to the next level who work hard. If there is no suitable candidate within the company, then consider looking outside.
5. Check the market rates and remuneration that other companies/competitors are offering, and try to match or increase the compensation at your company.

Hope the above suggestions help.

Hi Earlystar,

I'm based in the UK, and while our cultures may be different, the problems you are experiencing are similar to ones in a previous company I worked for.

One of the first things to realize is that money is never a long-term motivator. Lack of it can be a long-term demotivator, so it is worth ensuring that your salary scales are comparable to the industry.

Secondly, in general, people leave people, not organizations. It is the way they are led, managed, and motivated that really matters. If people are truly enjoying their roles, they will remain, despite any salary differences.

We managed to curb resignations in the following way:

- Target Managers for retention of staff and make it bonus/salary rise related. (We had 2 targets - retention of staff within 6 months at 95% and at 12 months at 90%)
- Conduct robust Inductions WITH follow-up forums at 3 and 6 months. (To include what's going well, what's not, and what they would have differently in the company. Ensure action is taken on the suggestions)
- Conduct a robust and honest INDEPENDENT exit interview with any leavers, and ensure the genuine reasons for leaving are discussed with senior and line managers.

If the company takes its people seriously, they will invest in the company.

Hope that helps.

Andy

I would suggest that a questionnaire should be circulated to every member of the staff in order to have a feel for their expectations from the management, areas of administration that need improvement, etc. This will enable the management to come up with policies that will address the issues raised.

PLEASE DO NOT WRITE THEIR NAMES ON THE QUESTIONNAIRES IF YOU WANT SINCERE FEEDBACK ON YOUR REQUEST.

Hello,

Exit interviews may not always be helpful because individuals may not always disclose the true facts. HR needs to regularly engage with employees to understand the underlying issues.

If payment is a concern, then the organization should strive to be the top payer in its industry or should aim to attract employees of average caliber. To ensure the smooth operation of the organization, only a few highly skilled individuals are necessary, rather than all employees. Alternatively, the organization can opt to be the highest payer to attract and retain talent.

Regards,
Sandeep

Hi Sachin,

A structured exit interview conducted professionally can provide some insights into the problem. It will be good if you could initiate purposeful conversations with the department in charge and employees in the team. If differences in salary are the issue, conduct a market survey of the prevailing wages.

Thank you.

Hi All,

I would like to cite an example of Poaching - It's a case of Hewitt Associates organization where in August 2008 several Business Analysts left the company overnight. More than 100 analysts left the company within a week and all joined ACS where they received a good package.

ACS started its new business, which is why they were willing to offer competitive compensation as they needed experienced individuals for their work. This is what we call poaching.

I suggest that you should try to identify which specific organizations the employees are joining and consider establishing a "No Poaching legal agreement" with them.

Only this measure can assist you; otherwise, it will be very challenging for you to control. Undoubtedly, money matters a lot for everyone nowadays, whether it's for the workforce or for management.

Thanks & Regards,

I think money is not everything for all employees; there may be some other reasons as well.

Regards,
Vishal

Dear Earlystar,

As an HR professional, you need to identify the actual cause through your personal network. If you are new to this company and have not yet established your personal network, please consider arranging a training program externally. Select a competent trainer who can help you pinpoint the root cause effectively.

Sunil Kumar Chauhan
Managing Director
Quality Men Power Solution