Dear Friends,
Kindly note that I am sharing a nice article I found on employee retention strategies.
In today's scenario, it becomes very important for organizations to retain their employees. Employees stay and leave organizations for many reasons, which may be personal or professional. These reasons should be understood by the employer and addressed. Organizations are becoming aware of these reasons and adopting many strategies for employee retention.
Similarly, HR Professionals spend most of their time framing Employee Retention Strategies. The employee attrition rate is nearly 20 to 30% in India. In the case of BPO industries, it is even worse because the attrition rate is 30 to 40%.
Why Are Employees Quitting Jobs?
There are a number of reasons for attrition, such as growth opportunities, physical strains, misguidance by the company, promotion, high salary, uneasy relationships with peers or managers, etc. Of all these mentioned above, the main reasons behind attrition are:
- The Boss
- The Reward
- Employee's Skill and Talent Utilization
The Boss:
- People like friendly, approachable leaders, not autocratic ones.
- People like leaders who encourage their success.
- People like leaders who reward their contributions immediately.
- People like leaders who appreciate subordinates in public for their positive contributions and provide feedback in private for negative contributions.
- People like leaders who help subordinates succeed.
But, this is not the case in every organization. Nobody can be blamed. Organizing training programs is a must for managers to learn how to build teams, manage performance, develop individuals to their full potential, and help them succeed in their careers.
The Reward
“Pay for performance” should be replaced by “Pay for loyalty.” Attendance is not a major criterion for rewarding employees. Employees should be rewarded for their personal efforts and contributions. That's why organizations are moving from traditional performance systems to modern performance systems like Competency and KRA-based performance assessment systems.
Equality in Rewarding – Rewarding should be equal for those who are doing similar jobs. Organizations should not consider other factors like seniority, experience, and loyalty. Organizations need to introduce rewards-based incentives like performance bonuses, gain-sharing, and ESOPs.
“Do not delay in rewarding” – If you want your child to repeat a behavior, you should positively recognize it immediately. Likewise, employees should be rewarded as soon as possible after the performance has taken place.
The Effective Skill and Talent Utilization
Talented and skilled people will not work in an organization where their skills and talents are not used or recognized. A talent always seeks frequent opportunities to learn and grow in their careers, knowledge, and skills. An employee without opportunities for development will try to identify new avenues for using their skills and talents.
Conclusion
Happiness can be contagious. So make the organization a happy place to work, where every employee would love to spend time. The Human Resources Department, along with senior management support, must take steps to ensure this. Effective human resource management must be practiced at both strategic and day-to-day levels. HR management practices must reflect company policy on how it will manage and relate to its employees. The HR strategy should evolve from a transactional support role to partnering in the organization's business strategy. HR must take steps to be aware of employee problems and try to solve them.
Regards,
Ritesh Somani
People Office Team
Gujarat-Rajasthan Zone
Futuregroup
Kindly note that I am sharing a nice article I found on employee retention strategies.
In today's scenario, it becomes very important for organizations to retain their employees. Employees stay and leave organizations for many reasons, which may be personal or professional. These reasons should be understood by the employer and addressed. Organizations are becoming aware of these reasons and adopting many strategies for employee retention.
Similarly, HR Professionals spend most of their time framing Employee Retention Strategies. The employee attrition rate is nearly 20 to 30% in India. In the case of BPO industries, it is even worse because the attrition rate is 30 to 40%.
Why Are Employees Quitting Jobs?
There are a number of reasons for attrition, such as growth opportunities, physical strains, misguidance by the company, promotion, high salary, uneasy relationships with peers or managers, etc. Of all these mentioned above, the main reasons behind attrition are:
- The Boss
- The Reward
- Employee's Skill and Talent Utilization
The Boss:
- People like friendly, approachable leaders, not autocratic ones.
- People like leaders who encourage their success.
- People like leaders who reward their contributions immediately.
- People like leaders who appreciate subordinates in public for their positive contributions and provide feedback in private for negative contributions.
- People like leaders who help subordinates succeed.
But, this is not the case in every organization. Nobody can be blamed. Organizing training programs is a must for managers to learn how to build teams, manage performance, develop individuals to their full potential, and help them succeed in their careers.
The Reward
“Pay for performance” should be replaced by “Pay for loyalty.” Attendance is not a major criterion for rewarding employees. Employees should be rewarded for their personal efforts and contributions. That's why organizations are moving from traditional performance systems to modern performance systems like Competency and KRA-based performance assessment systems.
Equality in Rewarding – Rewarding should be equal for those who are doing similar jobs. Organizations should not consider other factors like seniority, experience, and loyalty. Organizations need to introduce rewards-based incentives like performance bonuses, gain-sharing, and ESOPs.
“Do not delay in rewarding” – If you want your child to repeat a behavior, you should positively recognize it immediately. Likewise, employees should be rewarded as soon as possible after the performance has taken place.
The Effective Skill and Talent Utilization
Talented and skilled people will not work in an organization where their skills and talents are not used or recognized. A talent always seeks frequent opportunities to learn and grow in their careers, knowledge, and skills. An employee without opportunities for development will try to identify new avenues for using their skills and talents.
Conclusion
Happiness can be contagious. So make the organization a happy place to work, where every employee would love to spend time. The Human Resources Department, along with senior management support, must take steps to ensure this. Effective human resource management must be practiced at both strategic and day-to-day levels. HR management practices must reflect company policy on how it will manage and relate to its employees. The HR strategy should evolve from a transactional support role to partnering in the organization's business strategy. HR must take steps to be aware of employee problems and try to solve them.
Regards,
Ritesh Somani
People Office Team
Gujarat-Rajasthan Zone
Futuregroup