Facing High Attrition in a KPO: How Can We Tackle This Together? Plus, Insights on DVI

Dear Friends,

This is Mekala working in a KPO-based middle-level MNC as a Jr. HR Executive. I would like to discuss attrition here. Yes, at least 4 to 6 resignations are coming in a month. What can we do against it? Can anyone help me with this?

Also, I would like to know about the DVI (Deferred Value Incentive).

Regards,
Mekala

Hi Mekala,

A DVI is a good step for controlling attrition as a long-term solution. However, you could have a climate survey done and analyze the attrition reports to gain a deeper insight into the real problems. DVI can be used for retaining key performers and critical resources. A certain percentage of the CTC (for example, 20-40%) can be allocated as a retention bonus, which could be paid to the employee after the completion of every year on a prorated basis. Ideally, the management could consider a tenure spread of over 3-4 years. Key performers could be given 40%, and critical resources can be given 20%. It's not mandatory that everybody must be covered under this plan. In many organizations, it is a selective process.

Regards,
Deb

Hi Mekala,

I firmly believe that your organization should conduct a ROOT CAUSE ANALYSIS to identify the real problem. Attrition is a challenge faced by a large number of organizations.

Research indicates that three types of employees often leave the organization:

1. Poor performers
2. Star performers
3. Junior-level or entry-level employees.

In your case, the issue lies with entry-level employees. These individuals leave because of the following reasons:

1. High expectations, which may have been triggered by company communications (such as advertisements) or other factors. Ensure that you do not overpromise. Clearly communicate the nature of the work and working conditions even before the interview. This approach will benefit both the candidates and the company. Candidates who are not satisfied will withdraw their candidacy, allowing the company to focus on willing candidates.

2. After the selection process, focus on the chosen candidates as they are now your employees. Remember, the first impression is crucial. This holds true for new employees as well. Review your induction process and address any shortcomings that could demotivate new employees. Keep in mind that new employees are highly motivated but often inefficient initially due to a lack of knowledge. Utilize their motivation and enhance their effectiveness through clear communication.

3. I strongly recommend implementing a mentoring system. This system will aid in the smooth integration of new employees into the organization, and mentors can provide valuable psychological support.

I trust that these suggestions will be beneficial to you and your organization.

Best of luck.

Regards,

Sundar Jayram.

Hi Mekala,

If the high attrition rate is from the same project, take a look at the immediate reporting lead or manager. Sometimes, that could be the main reason in some teams.

Dear Jay,

Nice of you! Thanks.

According to my survey, they are leaving for better prospects. Once a candidate receives training/exposure in our civil software, they have more opportunities outside (both national and international). However, employees who have been here for more than 2 years are our core holders.

Do you have any format for the DVI calculation?

Regards, Mekala

Dear Mekala,

Interesting topic since almost all of us are affected by attrition.

Better opportunities are amongst the most common of all answers. Heavier grilling in a friendly environment would reveal a different answer if you are quick to catch on between the lines. If newer employees with some training have better opportunities, then consider the opportunities for those with two years of experience. Wouldn't they have even better opportunities? Honestly, I smell a rat here. Are the older employees making it difficult for the newer ones to stay put because of insecurities that they may have? Or are the older ones trying to create their own little fiefdoms? You may have to keep your eyes and ears open for more information. You may check if some of the newer ones who are leaving are really bright. If that is so, then a finger starts hinting towards insecurity in the older employees. Also, try to design an Exit Interview where a person can get caught in different questions if he is fudging. Who takes the Exit Interview in your company? How long does it last? When I conducted Exit Interviews, each one would last at least 45 minutes to an hour. The information may not always have been new, but it at least confirmed things we knew or rapped us for not correcting what we knew was wrong.

All the best.

Regards,

Ajay

Dear Mekala,

I have encountered such problems, especially with the new entrants in our firm. Upon further analysis, it was found that the recruitment process itself was the cause of such issues. If you could ensure that the communication regarding the job, its responsibilities, and role is made clear to the prospective employee (especially at the entry level), this can be avoided. Hence, I would surely like you to take a look at the recruitment process followed in your firm.

Regards,
Unni

Friends,

Retention plans should be introduced in any organization if the turnover is high. Please refer to the fantastic article in "The Hindu" newspaper from yesterday's Careers section. It is very helpful for all those who are involved in HR.

Thank you.
Satya

Dear Deb,

Can you please help me out by explaining more about DVI and how I can implement it in my organization? We have a very new firm establishing, but we have started facing attrition.

Awaiting your inputs.

Regards,
Poonam

Hi Rakhi,

Boy, are we traveling - from DVI to Exit Interviews!

Here is a format I got from the net. It belongs to an export house. This should give you an idea of what to ask. The important aspect is HOW to ask so as to get the employee to open up. Criticism should be expected. Do not get emotionally involved, just note down what is being spoken in point form. Be able to separate the normal bickering from the serious issues. Ask the employee very clearly if s/he has any objection to sharing the information with the MD/CMD etc. Disarm the employee totally. In some cases, I have had the interview at Barista. You'll be surprised at the ease with which the employee starts speaking in such a casual environment. I normally start off with talking about his/her family, the future career plans, professional aims and plans on how to achieve them, offer small tips, and they ask for more... the fish start biting! But you should have been able to create a professional rapport at work so that they have some faith/trust in you.

Regards,

Ajay

Dear Mekala,

I completely agree with Ajay as I have faced the same problem. People don't come out into the open until you really make some effort and prod deep. You would be amazed to find that most people start looking for a change when the relationship with the superiors/colleagues has gone sour. So, the underlying problem could be bad bosses or uncooperative peers. It would be worthwhile to check this while doing an exit interview.

Wish you all the best.

Sherine

Dear Ajay,

Thank you! That's nice.

I have attached a format of the exit interview that is already in use. Can you tell me what changes I need to make to it or if it's okay as is?

Regards, Mekala

Hi Mekala,

You are most welcome, and cool it folks. I am no expert. I am unable to use the heavy jargon of the day and high-flying words and phrases. More often than not, I would talk in plain, simple terms that a layperson would understand.

Coming to the exit interview form you have uploaded, a point for consideration - there are boxes against each point. I assume that the appropriate box has to be checked/ticked. You may offer a grading scale from say 1 to 5, with 1 being Poor and 5 being Excellent. In this manner, the immediate manager also gets rated. However, this is a double-edged weapon. Be very careful, especially if you do not like that manager, because then you may become totally biased and create a major snafu.

You may also ask the employee to rate the job in terms of how it satisfied his/her professional goals, the environment, training, guidance from immediate managers, and so on. I am attaching another format which you may use.

Rakhi, another format to confuse you.

And I think we really ought to use the right subject. Discussing Exit Interviews under DVI (about which I am totally clueless) is not really correct.

All the best.

Regards,

Ajay

Hi Mekala,

Thanks for bringing the 'Deferred Value Incentive' topic into the picture. However, I feel that all of us are so occupied and preoccupied with various aspects of attrition and retention that the said topic, started by Mekala, has gone out of discussion :)

Please bring that back into the discussion and shed some light on it.

Looking forward to greater insight on Deferred Value Incentive......

Cheers!! Geeti

Dear Geetha,

You are right. We have all moved away from our topic.

Okay, can anyone tell us how to split the percentage?

Regards,
Mekala

Any suggestions from seniors on the calculation of DVI???

I would really appreciate if anyone can give some inputs on this. Thanking in advance,

~ Raghav V