Understanding Employee Attrition: What It Means and How It Affects Your Organization

Attrition - Need to Know About It

Hi, I would like to know about attrition.

1. What is attrition?
2. What are the purposes of attrition, and what are the problems of attrition faced by the organization?

I need to know about all these things, and I need a questionnaire for employee attrition.

Regards

Causes of Employee Attrition

• Salary Scale

This is the most common cause of the high employee turnover rate. Employees are seeking jobs that offer competitive pay.

• Benefits

Employees tend to gravitate towards companies that provide better benefits packages.

• Advancements and Promotion Policies

A significant factor leading to mid-level executives leaving companies is the lack of opportunities for advancement or promotions. They opt for organizations that offer higher positions and improved compensation packages. Companies need to review and adjust their promotion policies to ensure promotions are based on employee performance fairly.

• Working Environment

The working environment is a key contributor to employee turnover. Employees prefer to work in environments that suit them best. This preference often leads them to switch companies frequently. When employees find a suitable work environment, they are more likely to stay with the same organization for an extended period.

• Working Procedures

Companies should evaluate and revise their work procedures and policies to allow employees to utilize their full potential and gain valuable work experience. Instances where employees leave due to a lack of challenging projects or assignments that do not utilize their skills are common. Employees are likely to depart if they do not gain experience and are left idle.

These are some primary causes of employee turnover that organizations can address by taking necessary steps to enhance their internal services for employees. However, various other factors contribute to employee turnover, including lack of motivation, work pressure, job stress, favoritism, employee egos and attitudes, poor employee management, and more.

Based on the factors mentioned above, it is essential to conduct research on this issue with a well-structured questionnaire.

10 Reasons Why Organizations Are Not Able to Retain Employees

1. People don't get integrated. Most organizations have an orientation program that is more of a data dump or focused on compliance training being completed. The focus should be more on enabling employees to form networks among themselves.

2. Performance goals are unclear. In a fast-growing team or business, the focus is on getting things done today, but rarely are performance goals thought through, and employees are told which resources to approach for help.

3. Development is always tomorrow's job. Culturally, Indians are focused on learning. If learning adds value only to the job and not to the overall career goals of the individual, then the organization seems too transactional for the employee.

4. The personal touch is missing. How comfortable are managers in building personal bonds with their subordinates? Many managers shy away, fearing that a bond will make delivering hard messages difficult. I would argue that it's the other way around! Knowing employees on a personal level makes a manager aware of their strengths and weaknesses. Work allocation and employee development become easier.

5. Reward systems are not transparent. Most employees who receive salary increases because they have a rare skill at a particular point in time think they got their raise for excellent performance. Can you share details about how they have been compensated?

6. Perceived equity of reward systems is low. Like it or not, employees discuss salary details, and if there is any perceived lack of equity, then you have an issue!

7. Goal-setting process is not scientific. Most organizations impose a normal curve fitment but do not train managers to set realistic goals or goals that align with organizational or functional goals. This also leads to point number 6.

8. External equity is missing too. Don't conduct an annual compensation survey when the market moves every 3-4 months. If your practitioners feel that externally comparable professionals are being valued more, then they will leave.

9. No communication around total value. If you offer benefits apart from only monetary terms, do you communicate that to employees as well? Things like being a global or niche industry leader, the value of the brand of the organization, should also be made explicit.

10. No career planning. Are people aware of the ways in which they can grow in the organization? Who are the role models within the organization? Do they know what they have to do to gain the competencies to move to various levels? (Update: Can you be radical enough and create an internal talent market?)