How Can We Improve Employee Retention in Our Automobile R&D Team? Seeking Advice on Effective Strategies

Dear Seniors, We are an R&D domain in the automobile sector. We have people working for us on our payroll at the client's place. Recently, there have been a lot of resignations. When inquired with the concerned, they mentioned the salary factor. The management is also ready to modify the salary package. I would like to know about other retention strategies used in manufacturing concerns.

Regards,
Priya R

Apart from the above valid suggestions, if you are looking for strategies to retain employees through monetary means, you may initiate some sort of Retention Bonus where a fixed amount is payable to the employee in installments every year. For example, if employee X's basic salary is 10,000 per month, your policy for 5-year retention could be 30% of one year's base salary to be paid over 5 years at 10%, 15%, 20%, 25%, and 30% respectively. To simplify, suppose the base salary today is 10,000.

One year base will be 10,000 x 12 = 120,000. 30% payable over 5 years = 36,000.
1st year 10% = 3,600.
2nd year 15% = 5,400.
3rd year 20% = 7,200.
4th year 25% = 9,000.
5th year 30% = 10,800.
Total = 36,000.

This is just an example, and there could be many other monetary and non-monetary retention strategies.

Regards

As you have inquired about their reasons for resigning, consider asking your employees what motivates them to stay in the organization. Retention strategies vary among companies, so conducting a survey and gathering their suggestions would be beneficial. During my tenure heading the HR department at a manufacturing company, I implemented this approach, and the employees appreciated having their input valued, which itself serves as a retention strategy.

Identify Top Suggestions

Identify the top 5 suggestions and tailor your strategies accordingly. I also appreciate the suggestion provided by Nokian73, as we have successfully implemented it to great effect.

Wishing you success in retention efforts.

One of the effective retention tools is ESOP. If your company is listed, start an ESOP policy. This will help employees gain monetary benefits, and employers do not lose any cash directly in this transaction. Please let me know if you need any further information on this.

Regards,
CS Mukesh TANK

Attrition is not always bad; sometimes, attrition can also be good. Therefore, the first step is to identify the ratio of key performers and bottom performers leaving the job. I assume you have already conducted an attrition analysis. Now, it is essential to implement strategies to overcome the reasons for attrition. You need to increase employee engagement levels to stay competitive. Provide opportunities for employees to grow within the organization. Launch a suggestion scheme to gain insights into your employees' thoughts and ensure to acknowledge each suggestion so that employees trust HR policies.

Regards,
Ankur Kumar

Subject: Re: Need Suggestions on Retention Strategies

Dear Haripriya, causes for employee attrition are:

1. Unfair salary
2. Management by HR

Remedies for attrition are:

1. Grievance resolution - solving problems promptly and effectively.
2. Fairness, firmness, and recognition will keep employees happy. These aspects should be addressed and managed by HR on behalf of the employer.

Regards,
Sekhar Palle