How Can Indian BPOs Tackle High Attrition Rates with Effective Retention Strategies?

Retention of key employees is critical to the long-term health and success of any organization. It is a known fact that retaining your best employees ensures customer satisfaction, increased product sales, satisfied colleagues and reporting staff, effective succession planning, and deeply embedded organizational knowledge and learning.

Employee retention matters as organizational issues such as training time and investment, lost knowledge, insecure employees, and a costly candidate search are involved. Hence, failing to retain a key employee is a costly proposition for an organization. Various estimates suggest that losing a middle manager in most organizations costs up to five times their salary.

The BPOs in India face an enormous challenge in reducing the attrition rate, and being a nascent industry, they need to draw parallels and examples from other industry practices as well as develop innovative employee relation initiatives as highlighted below. This has been classified into three groups:

1. The corporate level
2. Managerial/supervisory level
3. Employee recognition initiatives

Here, this article attempts to highlight the strategies for the corporate level.

Corporate Level Retention Strategies:

Relevance of retention strategies in the Indian BPO industry vis-à-vis other industries is very critical to its existence for the following reasons:

· To bring stability in business and increase customer service process.
· Nasscom has estimated that the Indian ITES industry will gross over $5.7 billion by 2005 (based on a conservative year-on-year growth of 65 percent by Nasscom).
· Staff/employee satisfaction translates directly into money quite quickly in the BPO industry compared to other industries.
· To reduce the pressure on the recruiting process.
· Recent acquisition deals, both domestic and overseas by BPOs, make it even more critical to stabilize their back-end operations to service new customers.

Before we proceed, it's important to understand the underlying reasons for high attrition rates, which are pretty steep and are around 40-50%. Currently, it is about 35% in non-voice and 45% in voice call centers. About 80% of them look for better careers within the same industry. Agents want to become team leaders. Team leaders want to become supervisors. Supervisors want the job of the CEO. Based on my discussions with the experts in the BPO industry, literature, and data available, the following trends are seen as below.

There are varied reasons for the same, and the major reasons for the attrition rate are (based on the author's sample study):

· Money - 10%
· Night shifts - 35%
· Monotonous/boring job - 30%
· Others - 25%

As seen from the above data, HR strategists at the corporate level of the BPO industry indeed have a huge challenge before them, and their approach has to be proactive. They have to develop innovative employee relation initiatives as mentioned hereon.

· A satisfied employee knows clearly what is expected from them every day at work. Changing expectations keeps people on the edge and creates unhealthy stress. This creates insecurity and makes the employee feel unsuccessful. An employee's deliverables at work must be communicated to them clearly and thoroughly.

· The quality of the supervision an employee receives is critical to employee retention. Frequent employee complaints center on these areas:
-- Lack of clarity about expectations
-- Lack of clarity about benefits pertaining to performance-based incentives
-- Lack of feedback about performance
-- Failure to provide a framework within which the employee perceives they can succeed

· The ability of the employee to speak their mind freely within the organization is another key factor. Have meetings or dinner once a month to share the company’s vision, the industry’s growth, and where they see themselves in this scheme of things.

· Using psychometric tests to get people who can work at night and handle the monotony.

· Talent and skill utilization is another environmental factor your key employees seek in your workplace. You just need to know their skills, talent, and experience, and take the time to tap into it.

· The perception of fairness and equitable treatment is important.

· When an employee is failing at work, refer to W. Edward Deming’s question, “What is it about the work system that is causing the person to fail?” Most frequently, if the employee knows what they are supposed to do, then the answer is time, tools, training, temperament, or talent. The easiest to solve, and the ones most affecting employee retention, are tools, time, and training. The employee must have the tools, time, and training necessary to do their job well – or they will move to an employer who provides them.

· Another important factor is focus on the process rather than on the person, especially when the employee is not failing at work.

· Implement Competency Models which should be well integrated with HR processes like selection and recruitments, training, performance appraisal, and potential appraisal.

· A common complaint or lament during an exit interview is that the employee never felt senior managers knew he/she existed. In my experience, I knew the MD of a company who knew the first names of all staff, including workers, to the extent he used to inquire about the well-being of the family members if it was casually mentioned that a wife or children weren’t keeping well. Senior managers refer to the president of a small company or a department or division head in a larger company. They have to take time to meet with new employees to learn about their talents, abilities, and skills. Meet with each employee periodically. They will have more useful information and keep their fingers on the pulse of the organization. It's a critical tool to help employees feel welcomed, acknowledged, and loyal.

· Senior managers should be involved in the recruitment process if the recruitment team has identified potential and cultural fit candidates.

· Involve the advisors or team leaders in the interviewing panels.

· In company presentations to potential candidates, encourage the employees to share their experiences.

· Your staff members must feel rewarded, recognized, and appreciated. Frequently saying thank you goes a long way. Monetary rewards, bonuses, and gifts make the thank you even more appreciated. Understandable raises, tied to accomplishments and achievements, help to retain staff.

· Select the right people in the first place through behavior-based testing and competency screening.

· Draw lessons from the Indian Army, for their command and control leadership where the troops are highly skilled, motivated, and morale is high. The comparison is drawn as both (BPO & army) have large numbers of employees, and the army’s style of leadership may not be relevant to BPOs, but it must be understood & gathered that military organizations are team-oriented with continuous training. Troops expand their skills and experience capabilities they never dreamed possible, producing a highly motivated and efficient organization. Learning opportunity and responsibility is the key.

· Offer an attractive, competitive, benefits package.

· Provide opportunities for people to share their knowledge via training sessions, presentations, mentoring others, and team assignments.

· Demonstrate respect for employees at all times. Treat the employees well and provide dignity of job; follow the maxim of Mr. Marriott that “Ladies & Gentlemen serve the Ladies & Gentlemen.”

· If a key employee resigns, it should be taken up on a priority basis and kept confidential as far as possible. Senior management should meet the employee to discuss their reasons for leaving and evaluate if their issues bear merit and whether they can be resolved.

· Exit Interviews: Outsource this process to external consultants to get realistic and unbiased feedback. This can be a great source of information regarding the shortcomings in a management system.

· People want to enjoy their work. Make work fun. Engage, employ the special talents of each individual.

· BPOs should endeavor to implement work-life balance initiatives to reinforce the retention strategies. Innovative and practical employee policies pertaining to flexible working schemes, granting compassionate and urgency leave, providing healthcare for self, family, and dependents, etc. Work-life balance policies would have a positive impact on:

Attracting high-caliber recruits
Retaining skilled employees
Reducing recruitment costs
Improving employee morale
Maintaining a competitive edge

· Listen to employees’ ideas; never ridicule them.

· Offer performance feedback and praise good efforts and results.

· Implement organizational culture measurement tools like Adversity Quotient (AQ).

· Recognize and celebrate their success.

· Staff adequately so overtime is minimized for those who don't want it, and people don't wear themselves out.

· Get them involved in social causes and fund drives like Tsunami Disaster Relief. Provide a meaning or a cause to their lives.

· Nurture and celebrate organization traditions like Diwali, Holi, Christmas, etc.

· Communicate goals, roles, and responsibilities so that people know what is expected of them and feel a part of the crowd.

· According to research by the Gallup organization, encourage employees to have good, even best, friends at work.

· Encourage humor & laughter in the workplace to deal with stress, which will ensure that the employees are happy, which gets reflected in their services, especially critical in voice-based transactions.

· Feeling valued by their manager in the workplace is a key to high employee motivation and morale.

· Reach out to the families of the potential candidates with sustained and focused messages in the media about the excellent prospects in the BPO industry. There is an example of this instance - Late Rai Bahadur Mohan Singh Oberoi, Chairman of the Oberoi Group, in efforts to make sure that many women joined his company, went to educational institutions and elicited women’s parents to come to the hotel. He told them, “I will walk you in and show you what your daughters will do with us, please help us to train them.”

· Excellent Career Growth Prospects:

Encourage and groom employees to take up higher positions/openings. If not fulfilled, then they will look outside the organization.

Look for talents within the organization and encourage them. For instance, if a person has the potential to be a trainer, groom and develop the employee.

· Night Shifts

1. Have people from other walks of life talk about their experiences. Other professions like Army, Medicine, and shop floor workers also have to work in night shifts.
2. Have doctors advise and guide them about their biological clocks and ways and means to deal with them.
3. Dietary advice: Do’s and don’ts.
4. Create the passion that they are doing a yeoman service to the nation by bringing the much-required foreign exchange.
5. They are helping people (clients) to make their life easier.
6. Special lights in the office/workplace to ensure their bodies get sufficient vitamin D.
7. One distinct disadvantage of night shifts is the sense of disorientation with friends and family members. Concentrate on this problem and develop innovative solutions and ways to deal with it.

· Focused Training & Development Programs:

For Associates & Team Leaders

· A session on Transactional Analysis during the induction period so that both are made aware of the causes for communication breakdowns and conflicts which affect their mental behavior and stress, which needs to be tackled at the earliest in the right manner.

· Those who are working on services verticals – like Banking & Financial services to be imparted training/knowledge of Vedic Maths, which would help them calculate the figures quickly without using calculators.

· Creativity & Innovation: It's all about attitude! A job can be as monotonous or exciting as you think/believe it to be, as it is all a state of mind. Look for excitement in the job process as it is not just answering the queries or solving the problems of customers but learning more about the customer through their voice accent or visualizing their environment/culture.

· Encourage the best performers to share their experiences with others and mentor others.

The emphasis is to create the desire to learn, enjoy, and be passionate about the work they do.

· Meditation Room or deep breath exercises for Associates & Team Leaders – the emphasis is that they should never be in the stress mode or upset while attending calls of a customer.

· Hire outstation candidates (from small towns like Amravati, Latur, Nashik, etc.) and provide them with shared accommodation.

Conclusion

It is HR's job, though not HR's job alone, to champion and shepherd effective human resource management practices at both the strategic and day-to-day levels. That is, to be effective, human resource management practices must be grounded in two ways. First, they must reflect company-wide commitments as to how it will manage and relate to its employees. Secondly, HR must implement these commitments so that the ideals of the enterprise and deeds of its agents are congruent.

HR should play a key role in the development and execution of the business strategy of an organization. It should evolve from a transactional support role to partnering in the organization’s business strategy.

(The next article would highlight the retention strategies at the managerial level & employee recognition initiatives.)

Rajat Joshi

[Email Removed For Privacy Reasons]

Personal Profile

PGDM from SCMHRD in 1995, have eleven years of corporate experience, and wrote this article on a short sabbatical before joining back the industry. Besides reading extensively and consulting, conduct workshops on Business Creativity & Innovation in B-Schools.

Hi Rajat, that was a very insightful article on retention. When can we expect the next in the series?

Also, I am eagerly looking for a course or something that can help me in Compensation and Benefits, a field that I want to specialize in. Any suggestions?

Regards,
POOJA

Hi Rajat, I was actually wondering if there is a site or some software that helps in designing good salary packages and literature on guidelines regarding various perks and benefits that can be given to employees. And of course, as you rightly said, the taxation part is of utmost concern. Can you suggest something for me? I will definitely go through the tax manual in the meantime. Looking forward to your next article. Cheers! Pooja

Hi Rajat, That's a cool article. Having done a small stint there as well, I agree with your ideas and ways to reduce the attrition rate in the BPO industry. What about your views on the advertising industry? Is it close to your heart?! Are there any major problems you think we're facing there that need to be tackled? See you soon.

Regards, Mee 

Hi, this is a good article to read. However, retention strategies cannot be generalized across industries and functions. Retention typically becomes difficult for technical personnel during a boom period. During an upswing in the business cycle when all are doing well, most retention strategies fail as people have many options to choose from.

Retention Practices Vary

Retention practices vary from industry to industry and from function to function. Additionally, the location also plays a significant role. Therefore, strategies should be customized based on the location, function, industry, and considering the business environment.

With regards,
srinibas
[Email Removed For Privacy Reasons]

Hi Srinibas, Thanks for the feedback!

Retention Strategies Across Industries

Q. This is a good article to read. However, retention strategies cannot be generalized across industries and functions.

A. I agree, but as the industry evolves and organizations grow, they face new challenges in the competitive environment, making retention strategies essential. For instance, some manufacturing firms are now considering offering ESOPs, which is common in the IT industry. The point is that HR professionals need to innovate and create structures/systems to retain talent.

Challenges in Retaining Technical Staff

Q. Retention becomes difficult for technical staff during boom periods. During an upswing in the business cycle, when all are doing well, most retention strategies fail as people have many options to choose from.

A. This point is debatable. In fact, I am drafting a second series addressing this issue. The key is understanding that today's world operates on employment at will, and it is up to the organization to unlock the deepest levels of creativity and highest productivity from their staff. As Thomas J. Watson Jr., CEO of IBM, said, "I believe that the real difference between success and failure in a company can often be traced to how well the organization brings out the great energies and talents of its people." Besides money, culture, values, and a sense of belonging are crucial.

Customization of Retention Strategies

Q. It differs from industry to industry and function to function. Most importantly, location also plays a role.

A. It differs today, but tomorrow it may not. Location also plays a role to some extent—agree.

Q. So the strategies should be customized depending on the location, function, industry, and business environment.

A. Well, that's what we HR professionals are paid to do!

Cheerio

Rajat Joshi

Hi Mike,

Thanks for giving me an idea!

Innovation & Creativity - I would rather teach the students as it is really relevant in today's time. Unfortunately, the educational institutes haven't realized the importance yet. All we learn in the Management is out of touch with ground realities. I am doing my bit to spread the same in schools and colleges.

Maybe after twenty years of experience, I shall give a try to write a book.

Cheerio,
Rajat

Dear Rajat,

Would you say that perhaps ground realities are moving so fast that classroom learning has to be transformed as well? The entire phenomenon of the Internet and consequently global sourcing is literally happening all around us. Perhaps that is our new classroom, and the traditional classroom is a place to gather and reflect. You certainly teach a great deal - in a focused, enthusiastic, and useful manner.

This is the century of India and China. How exhilarating.

Mike

Dear Mike,

Q: Would you say that perhaps ground realities are moving so fast that classroom learning has to be transformed as well? The entire phenomenon of the Internet and consequently global sourcing is literally happening all around us. Perhaps that is our new classroom, and the traditional classroom is a place to gather and reflect.

A: Yes, you are absolutely right. The changing times require us to change our mindset, our approach to business, and finding ways to keep the customers happy, both internal and external ones.

With respect to education, I am posting an article on Rethinking the MBA Educational system.

Cheerio,
Rajat

Rajat,

You have given the example of the Indian Army where BPOs have to learn the practices. Can you explain and tell us what specifics we can learn and imbibe from the Indian Army?

Thanks,
James

Hi Rajat,

Regarding exit interviews, as you mentioned that it is preferable to outsource them to companies which specialize in this, could you please provide us with the names and addresses of such companies that conduct exit interviews for corporates?

Regards,
Ricky

Hi James,

Sorry for the late response as I was traveling.

You want to know how one can draw parallels from the Indian Army? Well, I come from an army background, so I can relate some examples. Mind you, I don't have any experience in the BPO industry yet, so you can correct me if I am wrong. I am sharing some perspectives.

Training: The Army has excellent facilities for training and development. People know what courses they would be attending to reach the next levels. They are encouraged to find out what they are good at and excel in that. For instance, take the example of Maj Rathore who won the Olympics Silver Medal for India in shooting. Would he ever have achieved the same if he were a civilian or dreamt of the glory or success he has achieved? The point I am driving home is that our training programs should focus on getting people to do their best in the jobs they are good at, identifying their talents even if they have to move on.

Chain of command: In the Army, people know that they have to earn the respect of the people they have to command. In BPO, it is not as well managed. Associates want to become Team Leaders in less than a year's time. Focus on development, especially on coaching, and have transparent metrics and goals if one wants to rise up. Have a strong counseling center for understanding their angst and anger. Channelize them well. After all, they are young, and it is not fair to label that they have an attitude problem or expose them to many metrics when they have just been in the job for 15 days. Come on, give them a break. Aren't you scaring them? Prepare them well for the job.

Care: This is very essential in the army. Here, a person knows that if he dies, his family will be taken care of. But do we display the same in the private sector? Of course, I know it is not possible entirely, but one can take some ideas, especially regarding a sense of belonging.

That's it for now.

Cheerio,

Rajat

Hi Rajat,

That's an interesting article on retention. Looking forward to the next series. I am looking for some help in designing a personality inventory. Any suggestions?

Regards, Durga

Hi Mike,

Thanks for informing us about the site. I hope to get your help in understanding these assessments in detail from your much-valued experience.

Cheerio,
Rajat

Thank you, Mr. Joshi, for the ideas! I am sharing this information with my seniors. Somebody told me that you conduct training on lateral thinking abilities, and is it possible for you to teach us the same.

Warm regards,
James

Mr. Joshi,

This is a brilliant article, and you have shared a very good perspective on innovative HR practices. May I be permitted to share this link with my associates?

Regards,
Susan

Hi Susan,

"This is a brilliant article, and you have shared a very good perspective on innovative HR practices. May I be permitted to share this link with my associates?"

Susan, you have made my day!! Thanks for the nice compliments. Please do share the same with your associates and friends, as I believe that knowledge shared is knowledge gained - which is the credo of citehr.com. In case you want clarifications, please do ask.

Thanks,
Cheerio,
Rajat

Hi Rajat,

Regarding exit interviews, as you mentioned that it is preferable to outsource them to companies that specialize in this, please provide us with the names and addresses of such companies that conduct exit interviews for corporates in Mumbai.

Looking forward to your answer.

Regards,
Ricky

Hi Rajat,

Good Article, very Informative.

Can I say something? ;)

:arrow: Reasons of Quiting these Jobs

· Money - 10% (So very little money factor, BPO's are paying very good salary)

· Night shifts - 35% (Main Reason)

· Monotonous/boring job – 30% (Could be who stays for a long time and who don't get promoted)

· Others - 25%

I have been watching these call center people very closely (I am not a big shot) just for time pass.

What I feel

THE MAIN REASON FOR LEAVING THESE JOBS :

IMBALACE BETWEEN THE PROFESSIONAL LIFE AND SOCIAL LIFE / PERSONAL LIFE.

WHY ? Any HR Manager from Indian BPO can debate on this, I am very confident about this point

Agents work during nights > In Nights the productivity becomes down (decrease upto 50% in some cases) > but these agents work for 12 - 14 Hrs> Maily Young People, Freshers who are having high energy do it well for some time > No time for Family or Friends > You can find these people sleeping everytime in home > THUS IMBALANCE BETWEEN PERSONAL / SOCIAL AND PROFESSIONAL LIFE ARISE > Their Family Members, Friends and Society plays some the role in motivating these people to leave these jobs. > Some People leave becuase of the Bad Health arise due to Night Shift imbalace or improper diets.

:arrow: THE PEOPLE WHO GET PROMOTED ARE HAPPY TILL NOW IN THIS SENARIO (may Be they are Happy)

:arrow: Then what happens.

Here you can Find 2 Types of People ( People who are not Happy)

1) One Who Immidiately Quit and then search for Job.

2) Career Conscious People :

These people get frustrated > They start looking for the better options with better position in some other BPO> Some who don't get better Option start looking for some Day Shifts in BPO > Others who don't even get good shifts start for looking for Day Jobs other than BPO.

Who Lose in This condition.

Agents Lose only their jobs

but big loosers are BPO Companies :

:arrow: They Lost Their Trained HR to some other company

:arrow: They lost the money which they spend in the trainings

:arrow: They lost their image in the minds of Agents those left the company

How to solve this

:arrow: ONLY SOLUTION :arrow:

IS TO REDUCE THE TIME OF DOING JOB (Make it to maxium 8 Hrs or Max 9 Hrs)

:lol: :lol: :lol: :lol: :lol: :lol: :lol: :lol:

YOU WILL LAUGH AT ME

One may reduce the pay as one is reducing the total timings.

If one do it then you will get:

:arrow: Satisfied HR who are having Balace in their professional and Personal Life

:arrow: Customer Satisfaction, as your agents will deliver in what mood they are, so if they are happy they will behave properly with customer

:arrow: Saves your Money, You can Invest this Money in new recruitment ( In case shortage arise in HR becuase of the reduce in time of Shifts, you can hire new ones.)

In Indian Senario, You see Agents who are out of their home towns, who have left their homes, This can give some spiritual relief to them.

IN THIS WHOLE SITUATION YOU WILL FIND ONE INTERESTING TYPE OF PEOPLE.

:arrow: Who DAM CARE about the Working Hours, For them MONEY IS EVERYTHING and they do work for earning lot of money either by working upto 14- 18 Hrs :shock: :shock: OR By Making Lot of money from Incentives.

But Beware! : Person Who do work for only Making Money is Good for you as long as he is working with you for long Hrs. He will find More Better Option and He will Kick You!

Man IS SOCIAL ANIMAL, I read somewhere... where ... I Books! ;)

Regards,

Manu Sharma

MHRM (Final Year)

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Hi Manu,
Thanks for lovely thoughts & comments..sorry couldn't reply to it earlier..
Thanks..
Partly true…but debatable ..imbalance yes..that's why the company are creating the systems like home away from home…esp with innovative employee relations practices like inviting the parents & family to workplace once a while…recruiting their buddies/friends..giving time off for social occasions like marriage etc..
Bad health..i wont really agree to this..besides shifts in many companies keep changing by following 24 X 7 model..
It's the case everywhere..not just in BPOs..agreed the in BPOs it is substantial because of high numbers..while in other industries the people may leave for reasons as above as well..
It's true for all companies!!...
Reduce the working hrs..the standard is 8 hrs.. but more frequent & flexible breaks..no reduction in pay..
Excellent thoughts…thanks..
Cheerio
Rajat

Hi Prabhjot,
Am in the midst of the same…fine tuning with incorporating them with relevant innovative practices from the industry both national & international…
Once done shall post the same here…
Cheerio
Rajat

BPO blues: Attrition goes down as hiring slows

Employees in some IT-enabled services companies have cited instances of their passports being kept by their employers during training stints abroad.

A growing tribe is complaining of loss of sleep and appetite due to long hours and strenuous work conditions.

A 2004 report published by VV Giri National Labour Institute, which surveyed 277 employees in six call centres in Noida, likened work conditions to "19th-century prisons".

Taking extra time for lunch and reaching pick-up points late were recorded as "defects" in employee dossiers, the report said.

Several Indian ITES companies face the charge of making young people work under sub-optimal conditions. Not only can this stem the flow of talent into the sector, it can also make several overseas companies ask for a closer scrutiny of work conditions in BPO outfits dotting the landscape of the country.

In fact, several BPO companies told Business Standard that their customers, especially in the West, have started demanding more information on human resource policies. "Foreign clients prescribe the kind of training, including course contents, that needs to be given to employees," says Ranjit Narsimhan, CEO, HCL BPO Services.

Information on HR practices is included in service level agreements BPO firms sign with their clients. In these agreements, explicit mention is made of working hours, night shifts, and training, which can last for three weeks to seven months.

Foreign clients have started laying emphasis on regular employee-satisfaction surveys. Industry sources admit that these surveys are being studied more seriously than ever by customers.

This, to be sure, is not the first time that an Indian industry has been blamed for making people work under inhuman conditions. In the past, the textiles industry faced a similar charge.

As a result, all overseas companies now insist on a proper audit of the HR practices of their Indian suppliers.

On their part, ITES companies claim that they have often been complimented by their customers for creating a work environment better than what their counterparts in the US and the UK have.

To support their claims, they also point out that attrition levels have come down to around 45 percent from over 65 percent a year ago. Critics say the attrition rate has come down due to a slowdown in hiring and not because of improved work conditions.

"Most employees were fully aware of the unique demands of BPO jobs they were walking into, such as peculiar working hours, the need for assuming pseudo identities, and learning to speak with foreign accents. But they are not quite prepared for burnouts. Neither are they able to balance work and life," says an executive with an ITES company.

Lower attrition rates have also meant a decrease in pay hikes, from around 50 percent earlier to about 30 percent now.

Fully aware of the magnitude of the problem, ITES companies have started paying more attention to HR issues than ever before. Companies like Genpact, HCL BPO Services Ltd, EXL, and Xansa have 150-200 HR executives each.

Practices like promoting employees to middle management positions have become the norm. "Last year, 69 percent of the leadership of EXL came through promotions," says Deepak Dhawan, vice-president, HR. EXL has over 5,000 employees.

To tide over the problem of stress due to continuous night shifts, companies like Genpact have started offering employees the option of working from home or working on night shifts by rotation. During night shifts, the working hours can also be reduced to four.

Genpact and others like EXL and HCL BPO have also started reimbursing either the entire or part of the fees paid by employees for distance-learning programs.

"We do not want employees to treat this as a stop-gap arrangement but as a long-term opportunity," says Genpact chief executive officer Pramod Bhasin.

Source: Rediff.com

Regards,

Ricky

Hi Ruchita_mhrm,

"Hi Rajat, this is an extremely useful article for me as I'm working on retention strategies. Sorry for the late response. I'm glad you found it useful. Should you have any queries, I would be glad to answer them.

Hi Ricky,

Thanks for sharing the article. Well, this quite confirms by and large my anticipated apprehensions, but I am sure the industry will mature in due course of time. Otherwise, we face the risk of competition from China and the Philippines.

Regards,
Rajat"

Hi Rajat,

I was looking for information on retention strategies for Indian BPOs on Google, and it led me to this link, which is how I discovered this fabulous HR site. It's truly informative.

This article has provided me with some ideas and information that are relevant to me, and I shall work on them. Would you please assist me in developing the retention strategies? And of course, when can we expect the second part?

I have just joined the BPO in Pune as the Head of HR with a special focus on retention. I would appreciate your inputs.

Cheers!
Bhawana

Hello, Mr. Joshi,

Please assist me in addressing this vexed issue of improving retention of geographically dispersed employees.

I know you are tied up but would appreciate your views/ideas on this subject, please.

Regards,
Bhawana

Hi Bhawana,

Am extremely sorry for delayed response on account of pressure on work front..

Retaining good employees is always a challenge in today;s competitive environment but keeping employees who are geographically dispersed adds even more complexity..

There are three ways to handle this vexed issue:-

1. Make the supervisors responsible for the achieving the retention goals esp to the leaders. Am sure you have heard that people don't leave the company but the bosses..so set the retention goals for the leaders and the track the same by way of rewarding or consequences..

2. Provide the leaders retention training & coaching to achieve their goals.

has anyone analysed as what do people want from their bosses..?..TRUST..have the ability to to share credit and not blame..

3. Ensure that supervisors have the retention discussions with the far flung employees..by asking the following

*as what they expect from them..

* what are the grey areas/issues that needs to be resolved..

* By asking question..what would make you leave this organization?..

Hope this provides some pointers to start with.

To provide you some insight please refer to the article on Call Centre Attrition..

Cheers,

Have a great day..

Rajat Joshi

Now You See Them. Now You Don't. The Facts About Call Center Attrition

A Call Center Q&A with Richard Finnegan, TalentKeepers

Is your agents' disappearing act dragging down the performance of your call center? Getting to the root cause of agent attrition is the first step toward resolving one of the call center's biggest headaches. Richard Finnegan of TalentKeepers talks about what draws people to our industry, what keeps them here, how satisfied they are and why they may leave your center.

Call Center Magazine: Estimates for industry turnover are all over the map. What do you think is a realistic expectation of turnover in a good, reasonably well-run call center?

Richard Finnegan: Realistic expectation” is hard to reduce to a number because conditions vary so much from center to center. For example, urban locations tend to have higher turnover, as do outsourced centers. But I'm sure we would all agree that annual attrition of 20% to 30% would be very desirable, although some centers would see that as a dream. More important than targeting a number is to set an ongoing attrition reduction goal.

CC: Do incentives and morale-boosting programs have any significant impact on turnover, or do they just reward those who are most likely to stay anyway?

RF: Yes, incentives and morale-boosting programs do impact turnover, but they are only a part of the solution. Our TalentKeepers research makes clear that the main reason agents stay or leave is their relationships with their immediate supervisors. So good supervision with good programs will cause agents to stay with your centers longer, whereas good programs with ineffective supervision is at best a very short-term retention fix. Or said another way, poor supervision will trump good programs every time.

CC: Given the immense cost of hiring, training and then incenting agents, what tools are available to automate or improve the pre-hire assessment process to get the right person in the seat in the first place?

RF: After ineffective supervision, we find many agents quit because they didn't understand the nature of the job. For some applicants, job conditions such as sitting for long periods of time, speaking through a headset, and in some instances selling services all sound easier to do in an interview than post-hire, day after day. We find that the best hiring practices include putting applicants on the floor with an agent to monitor calls and learn the real nuances of the job.

CC: Where should a new manager concentrate his or her own training – on learning about technology, or on learning about people management?

RF: People management for sure, particularly retention leadership skills. Most managers come up through the call center ranks and have strong job-relevant technology backgrounds, whereas we find they have little people management training. Frontline supervisors have the least, as they are usually promoted from agent positions. These frontline supervisors are the primary drivers of agents' stay/leave decisions, and they can learn the right skills for retention. For example, we find the number one talent that agents want in their supervisors is to be trustworthy. Supervisors can learn to meet their commitments, avoid blaming, share credit, admit mistakes and apologize – all of the behaviors that build trust between and leader and team. But most must be trained on how to build these talents.

CC: What are the real career-path options for agents and supervisors? What percentage of agents go on to become supervisors, and ultimately, how many of those go on to management positions? Is there a sense of what skills an agent should have to progress, rather than just to excel as an agent?

RF: All of these questions relate in this way. While some agents will be promoted to higher-level jobs, we would probably all agree that there are too few career path options for agents overall. As a result, supervisors on all levels must develop retention talents so they can keep those agents whom they don't plan to promote for a longer period of time in their current agent jobs.

So those agents who are promoted to supervisory positions must have retention talents so they can retain their subordinate agents longer. Our research indicates that supervisors who develop ten specific retention talents keep their agents longer, talents such as building trust, increasing flexibility, and monitoring their teams for clues they might be leaving and taking appropriate action.

CC: If you had to identify three main “best practices,” what would they be?

RF Centers that approach attrition best do these three things well:

1. Set retention goals at the supervisor level and establish retention as a very important key performance indicator (KPI). Centers that look at attrition on the center-level only are “old school,” as they fail to realize that attrition usually varies greatly from one supervisor to another and these patterns remain consistent until action is taken to improve supervisors' retention talents.

2. Measure retention talents with inputs from the agents. For example, agents stay longer for supervisors who demonstrate trust, are reasonably flexible with policies and the ways work get done, and who build a day-to-day climate where agents want to come to work. Most operations managers don't know how their supervisors conduct themselves with their agents, and most supervisors don't know how their agents perceive them. Everyone wins if centers survey their agents on their supervisors' retention talents, and supervisors then learn their blind spots and can build plans to improve.

3. Increase the amount, frequency and quality of people management of retention leadership skills training in call centers. Based on feedback from agents, identify the retention talents supervisors need most and train them to improve. Present the training as tools to help supervisors achieve their retention KPI and then track their progress. Those who learn and apply new retention skills will see their attrition improve and all of their KPIs will improve as well.

Hi Rajat,

That was an excellent article. Looking forward to the next one! Also, I need help in preparing a nice induction manual; hence, would you please guide me in this process? I am working for an MNC Bank.

Regards,
Farshid.

Dear Mr. Joshi,

Please share some ideas on controlling the attrition rate during the first six months of the CSR. Any tips during the induction period would be appreciated.

Look forward to your response. 😊

Regards, Bhawana

Hi Bhawana,

Let me be honest, I am not from the BPO industry, though I have written this article to provide fresh perspectives to control the attrition rate.

Before they join the company, one must do the following:-

Before Joining Activities

- Provide material/information about the company's business plans & growth plans to be sent to them prior to their joining date.
- Arrange for workstations/cubicles to be in place - it's very awkward for the new joiners when such things are not in place. For our senior positions, we ensure that they get the visiting cards prior to joining the organization. This includes having their email-IDs in place as well.
- Take them out to lunch with their new colleagues to get to know others on their first day. After all, all new employees come with hope and a little bit of apprehensiveness, which is natural. One must be sensitive to these issues.
- Plan their first day meticulously. If possible, hand over to them their typical work plan/orientation for the day/week.
- Arrange for one of your team members to be their buddy with prior planning.
- Make sure all employees know that the new person is joining the organization on such a date along with their brief profile. Very often, when new employees join, they wait for the known HR person to welcome them, while none of the operational staff members are generally aware of the details. It provides a high for the new joiners when the operational staff call them by their names, especially on their first day, adding to the enthusiasm among all.

Hope this provides some food for thought.

Shall post more on this later.

Cheers,

Rajat

Hi Rajat,

Very informative article by you, I must say. Here, I would like your guidance in the same area. I am an MBA student, currently completing my summer internship at a good construction company. I am working on its retention strategy. The attrition rate here is approximately 35%, and I have been tasked with designing a retention strategy for the company. Please guide me in this direction.

Thank you.

Regards,
Dwija Oza

Six Truths about Employee Turnover

By F. Leigh Branham

Truth No.1: Turnover Happens

Achieving zero percent turnovers is not realistic, especially in today's job market.

Truth No. 2: Some Turnover Is Desirable

Zero percent turnovers are not desirable for a couple of reasons. First, if all employees stayed and the organization grew steadily, most employees would be at or near the top of their pay ranges and salary expenses would be extremely high. Secondly, new employees bring new ideas, approaches, abilities, and attitudes and keep the organization from becoming stagnant.

Truth No. 3: Turnover Is Costly

Most managers know that turnover is expensive, but two-thirds of 1,290 managers were unable to quantify the cost of turnover when asked in a recent poll. The cost of hiring and training a new employee can vary greatly—from only a few thousand dollars for hourly employees to between $75,000 and $100,000 for top executives. Estimates of turnover costs may range from 25 percent to almost 200 percent of annual compensation. Costs that are more difficult to estimate include customer service disruption, emotional costs, loss of morale, burnout/absenteeism among remaining employees, and loss of experience, continuity, and “corporate memory.”

Truth No. 4: More Money Is Not the “Silver Bullet”

Talented workers want to feel they are being paid comparably to what other companies pay for similar work in the industry. They also care about being paid equitably with others in similar positions making comparable contributions. When these two conditions exist along with interesting and meaningful work, acceptable working conditions and good management practices, the prospect of making a little more money in an another organization where these softer factors are unknown is usually not enough to pull the employee away.

Truth No. 5: Managers Hold Most of the Keys to Keeping the Right Talent

One recent study showed that 50 percent of the typical employee's job satisfaction is determined by the quality of his/her relationship with the manager. Many companies are floundering today in their attempts to improve employee retention because they have placed the responsibility for it in the hands of human resources instead of the managers. Many companies have begun to measure managers' turnover rates and vary the size of their annual bonuses accordingly.

Truth No. 6: Reducing Turnover Starts with Commitment

The organizations that achieve the most dramatic reductions in turnover and maintain those lower levels are usually the ones where the top executive or owner makes it a priority. Even when the top executive is not committed, however, one committed manager can still make a difference.

10 Ways to Retain Generation X'ers

Let them know that you are committed to helping them achieve their goals within the context of the company's goals. Don't mention climbing the corporate ladder or paying their dues. Too many X'ers have seen their parents lose their jobs after years of ladder climbing and dues-paying.

Let them know that you will provide as much training as possible to help them develop new skills while they are there. Allow them some input into what training they will receive.

Tell them you will challenge their creativity, and then keep your promise by giving them a challenging assignment or problem to solve.

Provide opportunities for them to work in spirited team situations, but with opportunities for individual achievement and recognition.

Make the work environment fun and informal. Introduce them to others and encourage the development of workplace friendships.

Allow them to experience a daily sense of tangible achievement.

Give them opportunities to reinvent themselves within the organization by learning new skills, moving cross-functionally, redesigning their jobs, reporting to a different mentor, working different hours, or working from a new location.

Open a dialogue with them on their first day about how you want to keep them and how you are willing to work with them to make that happen.

Look for opportunities to engage them in short-term, goal-oriented projects.

When X'ers says they want to leave, give them the option of continuing to contribute as a part-timer, flex-timer, telecommuter, periodic temp or consultant.

Adapted from KEEPING THE PEOPLE WHO KEEP YOU IN BUSINESS: 24 Ways to Hang on to Your Most Valuable Talent by F. Leigh Branham (AMACOM; October 2000).

Dear sir,

Please share with us more tips on retaining the senior management staff. Also, how do we deal with the situation where most customer service staff who wait for a bonus during festival time like Diwali and then quit.

Look forward to your valuable suggestions/ideas.

Cheers,
Bhawana

Dear Bhawana,

Am extremely sorry for reverting late to your query as am coming to this forum almost after a month.

Senior Management Staff – as you work closely with them , one would come to know if they are feeling out of sync with the organization or fishing for the suitable openings .

As I had emphasized earlier, like in the war conditions, we HR professionals must have a red book on key staff as how to retain and motivate them to stay on with the organization. One must maintain the file on their growth and achievements and also the possible growth options and assignments within the organization. Here one must be aware of the possible poaching by rival companies and therefore one must be attuned to the market movements.

Remember the maxim – that the key relationship in retention is the relationship between the employee and his/her Manager. Get it right and acceptable retention is assured. Get it wrong and everything else would count for nought.

Here one must focus on the following areas :-

Acclimation

Integration

Dialogue and

Expectation Management.

Since these people report to the CEO/MD and meetings needs to organized between whereby the following issues is addressed viz :-

Set the right conditions

Monitor the key relationships and

Enforce the sensible milestones.

Hope this provides some pointers.

Second query - shall revert later with ideas.

Have a great day.

Regards,

Rajat Joshi

Dear Mr. Joshi,

Thank you so much for your valuable comments. I have a query on how HR professionals can manage employer-employee relationships.

Thank you!
Cheers,
Bhawana

Hi Bhawana,

I am sharing the HR practices of UPS. I am sure it would provide some food for thought!

Merry X-Mas,
Rajat

UPS's 37 Principles for Managing People

A wide-ranging look at the company's workforce management practices, including promoting from within and limiting the employment of relatives.

The guidelines below spell out UPS's vision for managing its workforce. They're part of a larger "policy book" given to the company's management team, which also includes principles for handling customers and shareholders.

We Build Our Organization Around People
The strength of our company is its people, working together with a common purpose. Although methods, equipment, and procedures are important, and we constantly strive to improve them, our most valuable assets are loyal and capable people.

We seek, through the use of our impartial employment and promotion practices, to have a diverse workforce. Our organization is strengthened by capable individuals with diverse backgrounds.

We assign responsibilities and duties to secure the full benefit of an individual's talents and abilities and to provide each person with an opportunity to develop further.

All our people, and the jobs they perform, can make important contributions to our company. We maintain an environment that enables them to obtain personal satisfaction from their work.

We Place Great Value on Diversity
We value the diversity that exists within our workforce, our customers, those who provide goods and services to our company, and the communities in which we do business.

Managers are responsible for creating a workplace of fairness, dignity, and respect for all employees—an environment of inclusion, encouraging participation, and the best effort of everyone. The diversity of our workforce results from a sincere effort to hire and retain dedicated people from the communities in which we operate.

We strive to enhance our reputation as an organization that values diverse customers as well as suppliers and vendors. In addition, we support and work closely with organizations that believe fair employment practices are integral to a successful business.

We Treat Our People Fairly and Without Favoritism
We believe that impartiality is the foundation of a loyal, cooperative work group.

We want to treat our people as individuals, without causing the perception of special treatment.

We have the responsibility to avoid any relationship that may result in actual or perceived favoritism.

We Maintain an Environment Free of Discrimination and Sexual Harassment
All UPS employees have the right to work in an environment free of any type of harassment and discrimination. Sexual harassment and discrimination will not be tolerated.

Managers and supervisors are responsible for ensuring that they and their employees understand and comply with UPS guidelines and maintain a professional work environment. That responsibility includes reporting incidents to the appropriate management people.

We Insist Upon Integrity in Our People
We understand that integrity is fundamental to how we run our business and essential to maintain compliance with our policies and legal requirements. Operating with integrity means we provide an atmosphere in which our people can perform their jobs in an ethical manner. We present our company honestly to employees and, in turn, expect them to be honest with us.

We expect honesty from our people in all their duties, including their handling of money, merchandise, and property with which they are entrusted. We insist on integrity in the preparation and approval of all reports.

We also expect our people to be honest in their assessment of themselves, such as the time and commitment they give to their job performance, the fairness they seek in their dealings with others, or the objectivity they use in evaluating their own contributions.

The great majority of our people are of high moral character. However, when we do discover a dishonest person in our organization, we deal with that individual quickly and firmly. For our company to be known for its integrity, each one of us must meet high standards.

We Promote From Within
Generally, we fill management positions from within our organization. In doing so, we take care to include for consideration and not overlook qualified people whose present jobs may make them less noticeable than other employees. We fill a vacancy from the outside when we cannot locate one of our own people who has the professional or technical skills required for a particular assignment.

Advancement is based on individual merit and performance. All who perform their tasks capably and have the capacity to assume greater responsibility are eligible. Observing equal opportunity guidelines, we select those who seem best fitted to the position.

All managers and supervisors are responsible for encouraging and developing capable people, not only for their own groups but also for openings elsewhere within our organization. We actively search for such capable people and give them opportunities to succeed.

We Maintain a Spirit of Teamwork
Throughout our organization, we capitalize on the advantages of working together in an informal manner. Although defined responsibilities are assigned to specific individuals in our company, we act as a cooperative team. Combined efforts, which help any part of our organization, serve to strengthen our entire organization.

We Compensate Our People Fairly
Our compensation programs keep pace with today's changing business needs and compare favorably with those programs in other companies. Our employees' compensation includes more than salary alone. When considering pay ranges and negotiating wage agreements, we weigh the value of the total compensation package. We also consider plans that give participants a stake in the financial success of the company and offer ways to enhance savings.

We Promote the Good Health of Our People
We provide a benefits package and other programs that help promote good health and well-being among employees and their families. Attention to employee health increases the safety of our operations and reduces the costs of injuries and illnesses.

We Transfer Management People to Meet Our Company's Needs as Well as to Broaden Their Experience
One of our long-standing strengths is the willingness of our people to take job assignments where needed. Moves intended to strengthen our organization may involve promotions, lateral assignments, transfers or relocations. Assignment changes should be considered with the view of enhancing career opportunities.

Because we realize that transfers have profound effects on individuals and their families as well as the company, we carefully consider all transfers and never undertake them lightly.

We Look for People Who Have Potential for Development
We know that most of our future management people will come from within our organization. For that reason, we look for applicants who can progress beyond the immediate job. We also need people who can qualify and become skilled at their work without necessarily aspiring to more responsible jobs.

We Help People to Develop Themselves
One of the most important responsibilities of managers and supervisors is the development of people. We are responsible for seeing that all people in our immediate organization are fully prepared to perform their jobs well.

Through our support, coaching, counseling and example, we expect people to develop the knowledge and skills that are necessary for success in their current jobs and which can help them assume positions of greater responsibility. We expect them to take advantage of the training available to them from the company and from outside sources. In turn, we provide people with assignments and opportunities that allow them to demonstrate their skills and develop their capabilities.

We seek to give people assignments for which they are well-suited.

We Expect Our Managers and Supervisors to Train Their People
We conduct training schools, workshops, and other programs in order to meet the needs of our people. However, it is the responsibility of our management team to ensure that their people receive all the necessary training and that it is effective. We review training regularly to see that it is relevant to our current needs.

We Hold Frequent Evaluations With Our Employees About Their Performance
Reviews of each person's performance enable us to arrive at a mutual understanding about progress toward meeting goals and objectives.

We hold formal evaluations periodically. However, there is no substitute for daily and weekly feedback on each person's performance.

We follow up on the results of all evaluations to ensure the continued development of our people.

We Have Meaningful Discussions With Our People
Cooperation and teamwork among all our people are necessary for the continued success of our business. To foster this spirit, we seek to develop meaningful businesslike relationships and better communications by having regular and frequent planned individual and group discussions.

We Recognize Accomplishments
Our people deserve recognition for accomplishments in their regular jobs and for contributions made to other departments and operations. They also deserve recognition for the extra effort they make to satisfy customers and for their participation in efforts that benefit their communities.

All managers and supervisors are responsible for recognizing the accomplishments of people in their own groups. Our established programs are intended to ensure that deserving employees are recognized appropriately for their accomplishments. These programs, however, do not replace the important role of the manager or supervisor in employee recognition.

We Promote an Open-door Approach to Managing People
Every person should feel free to discuss matters with management people in our company. Accessibility, however, does not relieve anyone of the obligation to respect delegated lines of authority. Employees are encouraged to discuss their ideas or try to resolve a disputed matter with their immediate supervisor before seeking the counsel of others. One of our company's strengths is the development of professional relationships among everyone, regardless of authority or responsibility level.

We Give Each Employee Complaint Prompt, Sincere Attention
If overlooked or neglected, even minor misunderstandings can escalate into major dissatisfactions.

We try to anticipate and eliminate causes of complaints. When a question exists, we give the employee the benefit of the doubt. The immediate supervisor has the initial responsibility for resolving a complaint. When necessary, we involve the next level of management and, if appropriate, the human resources manager.

We keep the employee informed about the status of his or her complaint. In the process of making a decision, we do our best to take action that is fair to both the employee and the company.

We Respect Each Employee's Point of View
We listen with an open mind to suggestions and are attentive to problems.

By talking with and listening to employees, we can often help them in doing their jobs and, at the same time, learn things that benefit the company.

We train our managers in the skills necessary for talking with and listening to their employees and in translating what they learn into action.

We Encourage Participation and Suggestions
Managers and supervisors should invite help and encourage suggestions for improvement. In working together this way, we create an environment of teamwork that benefits

Hello Rajat,

Your article provides good insights into the causes and proactive strategies for employee retention. It is mentioned in one part that reasons related to night shifts and monotonous or boring jobs account for 65% of attrition causes. If this is the case, could this not be reversed through proper training to change the mindset regarding such perceptions? As you rightly point out, a job is as monotonous or boring as one perceives it to be.

Regards,
Anand

Hi Anand,

I thank you for reading the article and especially between the lines!

Yes, you are right in your observation that there was contradiction in my strategy on this vexed problem – infact after doing the survey I was going through the reports and it reminded me of my experience of brick & mortar company..that's where my core experience lies and I was reminded of foreman who has been working on the same machine for the last 30 years and I remember he telling me that how he found joy & happiness in operating the same machine day after day and years..and never a moment he felt dull..everyday he thought about the process/machine as how he would make it easier to operate the machine..how much force and pressure to apply !

The fact of the matter is that we all need to have similar approaches and HR professionals in conjuction with line Managers need to instill this attitude..and many times Customer Support Associates have forgotten as how the present job can be a source of joy and scope for innovation as well. A participant shared the fact that she spent over four years and she said that whenever I speak to the customer – visualize his/her face and culture they live in ..gives me an immense pride that am able to connect to the person staying on other side of the world and try to solve their problems..

Essence of the matter is that we all need to learn that our life and our job can be as exciting & interesting as we perceive them to be irrespective of the situations if we try to look beyond the obvious see the things through the scheme of wonderful Life!..

Have a great day...

Rajat

Hi Rashmi,

Retaining good employees is always a challenge in today's competitive environment, but keeping employees who are geographically dispersed adds even more complexity.

There are three ways to handle this vexed issue:

1. Make the supervisors responsible for achieving the retention goals, especially the leaders. I am sure you have heard that people don't leave the company, but the bosses. So, set the retention goals for the leaders and track the same by way of rewarding or consequences.

2. Provide the leaders retention training and coaching to achieve their goals.

Has anyone analyzed what people want from their bosses? Trust. Have the ability to share credit and not blame.

3. Ensure that supervisors have retention discussions with the far-flung employees by asking the following:
- What they expect from them.
- What are the grey areas/issues that need to be resolved.
- By asking the question, what would make you leave this organization?

Let me share one example from Sapient where the company takes pain to project itself as a caring organization. Here is one of the employees, Mr. Menon, soon after his marriage in 2004, was sent to the UK on an assignment, which had to be extended by a number of days. According to Mr. Menon, "I was really surprised when my boss called to say that I should ask my wife to join me there at the company's expense" (source Business Today, Nov 5, 2006; The Best Companies to work for in India).

Hope this provides some pointers to start with.

Regards,
Rajat Joshi

Dear Rajat,

Could you please help me once again? 😊 We are facing a very high attrition rate with the tune of 30 employees leaving in a week! I have been assigned to assess the process of exit interviews and suggest steps for containing the attrition rate to the management.

Would appreciate your inputs.

Thanks,
Bhawana

Hi Bhawana,

Am really sorry for late response as I was traveling and had a hectic schedule on work front!

Your point is as how to assess the exit interview to prevent the attrition rate ..

Please first tell us as how do you conduct the exit interview in the first place.

Am sure your typical response as followed in BPOs is to have the employee to fill up the questionnaire and have a one to one discussion..but I guess due to sheer numbers one gets lost in the din of the responses and overlook the essentials.

What I suggest is the following :-

1. Assess or audit the previous exit interviews in terms whether it is giving the appropriate response .

2. make the resignees very comfortable in the meetings and make sure that there are no powerplays or any resort to make them stay as it is too late instead utilize this opportunity to get the real truth! Which often doesn't happen.

3. Would recommend – please conduct the exit interviews NOT at the workplace but at a neutral place like a coffeeshop etc.

4. Make sure that you show the resignee his/her F&F settlement alongwith the cheque and sort out the queries and also the relieving letters.

5. Here depending upon the how you conduct yourself in step 4 ( above one)..can make the difference between the predictable response and the actual reality as it exists.

6. Divide your exit interview process in two parts – one portion objective type questions and rating of the various parameters like work environment, pay , growth opportunity etc with a space for suggestion. Part two – is your questionnaire on open ended ones on various issues like Why are you leaving the organization ? what could we have done to make sure you had stayed for a longer period etc..here it is very important to read between his lines and frame questions accordingly yet assuring him very well that his response would no way used against individuals and you are merely trying to understand the situation/problem to be resolved.

7. After two months again conduct the process through the third party to validate your findings and check if there are any new points put across.

Guess above ideas may help you to address the problems you are facing.

Best Wishes,

Rajat Joshi

Hi Hayjon,

Thanks for your appreciation.

Am sorry to disappoint you as I don't have the depth knowledge of the same. Please post your query under the following columns – Talk to your seniors or Compensation and Benefts. Also use the search facility on the top left.

Regards,

Rajat

Hi Rajat,

Thank you for your valuable advice! :D :D :D

I have started implementing the same approach for exit interviews as we did for the initial interviews, holding them at a neutral venue. This change has given us more accurate insights compared to conducting the interviews at the office. My seniors were a little surprised by this new approach but appreciated the valuable inputs provided by the interviews.

I believe the credit for improving my work goes to you. It's truly awesome of you to share these tips and guide us. The way you handle things is deserving of the Cite Knight honor.

Thanks once again.

Cheers,
Bhawana

Dear all,

I am updating you all on BPO employees' health issues. If members from Chennai can attend this and inform us about the issues discussed, it would be great!

I am sure we, as HR professionals, can find innovative ways to deal with such vexed issues, which are more often created by vested interests for their own publicity. Much needs to be assessed on the authenticity of such results.

Regards,

Rajat Joshi

Sexual disorders rising among BPO employees

Chennai: Sexual disorders are increasing among Indian men, and such problems are more prevalent among BPO professionals, says sexologist Dr. Prakash Kothari.

This would be one of the topics to come up for discussion at the two-day international sexology conference beginning in Chennai on Saturday, he told reporters on Friday.

He said changes in the food habits of BPO employees, especially the intake of more refined carbohydrates, mostly at unusual hours, were resulting in sexual disorders among them. This was affecting their health and physical activities.

Another factor causing sexual problems among BPO employees was stress due to work pressure and a lack of time to relax, an issue that would be discussed in detail at the conference, he said.

Dr. T. Kamaraj of the Indian Institute of Sexual Medicine, which is organizing the meeting, said about three crore Indian men were estimated to have erectile dysfunction. This was due to the increasing prevalence of diabetes.

Kamaraj said the focus of the conference would be on sexual dysfunctions, disorders, and infertility, besides discussions on removing misconceptions about sex and educating people to live a sexually healthy and happy life. Treatment of Sexually Transmitted Diseases would also be discussed.

"Take up one idea. Make that one idea your life - think of it, dream of it, live on idea. Let the brain, muscles, nerves, every part of your body, be full of that idea, and just leave every other idea alone. This is the way to success."

- Swami Vivekananda

Dear all,

I have always taken the stance that retaining staff is better than recruiting. Here is the article to reaffirm the same.

Regards,

Rajat Joshi

Retaining is Better than Recruiting

By Pon Mohaldeen Pitchal

Significant money is often spent on hiring new employees. In current economic circumstances, it can be higher than that devoted to retention. Yet employers do not bother to analyze the manpower cost in a prudent way. In fact, they should compare both recruitment as well as retention costs.

Employers should try to utilize their current workforce in a productive way. Yet, on the contrary, the majority of employers simply do not enforce the best HR practices.

As an organization gets new businesses, the employer tends to opt for external sourcing. This is due to the lack of qualified manpower available within the company. Such external sourcing brings many challenges to HR managers, reflecting the scarcity of manpower in the local market and the demand for higher packages.

Moreover, mobilization of manpower is not taking place within the recruitment plan. If the time cycle is more than the planned target, naturally the expenses are higher. There is no mechanism to mirror this cost.

Expenses

The management information report generated by the finance department does not focus on this hidden cost but contains actual expenses against those budgeted.

It is evident that the local market is not capable of supplying all the required skills. To get talent from overseas is not so easy a task as it has been in the past. Now the world is on the verge of widespread manpower shortages.

The labor-supplying countries themselves face acute shortages. Increasing salaries and skills shortages are the fruit of globalization. Forecasts by headhunters say that employers in the Gulf will witness huge shortages in managerial skills.

Skilled technicians and professionals are hesitant these days towards accepting an offer from the Gulf. This is notably true now in respect of the Indian market. Indian employers pay almost a UAE-equivalent salary in India itself.

"Unfortunately, managers pay [more] attention to hiring new staff. In my bank, the attrition rate is 20 percent a year. Managers must be cautioned about the cost of replacement, which is almost 30 percent higher than retaining old staff," says one recruitment manager with a leading local bank in Dubai.

Retaining staff, as has been said many times, is key to successful business. Cost analysis will prove that the best retention practices would save significant money. It would mean we wouldn't have to recruit new staff on such a regular basis.

The writer is a Dubai-based HRD consultant.

Dear Sir,

My name is Deepti Sharma. I am working in the Multinational Telecom Industry. I have read your article on Employee Retention. As per your article, we have many motivational programs in our company and, although not very high, a good compensation package too. However, we still face attrition on a daily basis.

I conducted an Employee feedback survey through which we discovered that the reasons for attrition are a lack of appreciation by the seniors and inadequate training.

While we have begun to address the training aspect, concerning the lack of appreciation, after discussions with the Heads of the Departments, we learned that they have implemented measures. However, employees have expressed that these efforts are only visible in front of you.

I have now decided to develop a Retention Policy and seek assistance from my seniors. I would be grateful if you could help me with this and guide me on how to commence this process and what aspects I should include in the Policy.

I await your response.

Thanks & Regards,

Deepti

Hi Deepti,

Am extremly sorry for delayed response.. :D

May we suggest that you re-work on the exit interview process to assess whether you are getting the genuine feedback and many times would be ex-employees give general answers..

Less appreciation by seniors :

It is very subjective and grey area to work on..if it were so then HR doesn;t need the feedback from employees..it should be visible ! :D

I think you(HR) should be able to judge it from the day to day workplace observations..

This reminds of the article i just read today on " Are HR Professionals in the people Business any longer ? " Really hillarious one but a true picture of the state of HR processes in today's world which appeared in the Hindu paper which says..

"As a human resource consultant, I have had the unenviable task (on more than one occasion) of introducing my clients' HR manager to their own employees! If you find this hard to believe try this test - ask a random sample of employees in any large organisation to list the names of their HR team members. If they do pass this test, ask them if they have seen them at least once, face-to-face. If they pass this test too, they are blessed."

Rest is reproduced at the end of this posting..

Here what we would suggest is that you have to focus on the culture on Manager catching the employees doing the RIGHT things!..which requires the MINDSET change on the part of the supervisors

Therefore incorporate the following :-

1. Employee of the month scheme.

2. Make sure that your frontline & second tier of employees who are important drivers of the business get the opportunity to meet the HODs or the CEO on a one to one basis say for lunch atleast once a month.

3. If there is less appreciation by the supervisors - then may be you need to analyse the same as they charity begins at the top( or home). Discuss the same with the Top Management highlighting this factor as how they impact the attrition rate and the company's bottomline!.

4. HR to be actively alert to the latent & pressing needs of the organizations.

Hope these provide some pointers..

Regards,

Rajat Joshi

Are HR professionals in the people business any longer?

Ganesh Chella

A sound grounding in the science of human behaviour will help today's HR professionals diagnose people issues better and strike a better balance between business demands and people's needs.

As a human resource consultant, I have had the unenviable task (on more than one occasion) of introducing my clients' HR manager to their own employees! If you find this hard to believe try this test - ask a random sample of employees in any large organisation to list the names of their HR team members. If they do pass this test, ask them if they have seen them at least once, face-to-face. If they pass this test too, they are blessed. The rest may read on ...

The reason for the `invisibility' that I have implied in the example is the fundamental shift in the way today's HR professionals are seeing their roles. They seem to be taking a "hard" and "business like" view of their roles to the exclusion of the "softer" championship, advocacy and connect dimensions. As a result, many of today's HR professionals are not dealing with "people" as "people" and that is worrying.

While the transformation of HR as a serious partner in today's business environment is welcome, leaving behind the "humanness" is not. While HR professionals are busy designing and implementing programmes that are intended to benefit people, their current mode of relating with people seems to be what psychologists would call "agentic" ¡ª a cold approach, caring less about their feelings but more about what one wants from them.

This is what has prompted me to ask if HR professionals are in the people business any longer?

The five drivers

I see five factors driving this new "HR attitude towards people".

The preoccupation with becoming a strategic partner

It looks like some HR folks read only parts of Dave Ulrich's landmark book. While he spoke with as much gusto about the employee champion role as he did about the strategic partner role, most seem to consider the latter more attractive. In fact, the preoccupation is so severe that "being in touch with employees" is seen as totally non-strategic.

In my opinion, being champions and advocates is indeed strategic. It is for this reason that HR professionals were traditionally groomed in the "employee relations" role before being moved into "corporate" roles.

The frustration with the lack of reciprocity

In the past, the people-friendly attitude and actions of the HR professional met with a fair amount of reciprocity from the employees. Using the depth of this relationship, HR leaders were able to solve sticky people problems, negotiate with unions and hire and retain employees. In the emerging employment arrangements that we are witnessing, the relationship and persuasive powers of the HR Manager is unable to match the harsh forces of the labour market.

This is obviously leading to a certain level of frustration and anger among the HR folks with employees and their attitudes. The empathy and Theory Y assumptions needed among HR professionals to deal with the situation are not evident. Nor is there reflection about how they seem to have contributed to these changing (read bad) employee attitudes!

Disconnected by design

As organisations scale like never before, HR professionals have to spread themselves thinner than ever before. Spread thin beyond a point, HR presence becomes meaningless and leads to complete disconnect. The need for focus and specialisation is also driving the HR functions into silos. Like the super-specialist medical professional, each vertical within the HR looks only at one aspect of the employee - talent acquisition, talent engagement, talent development and so on. No one seems to be seeing the whole human being!

Feverish HR outsourcing, recourse to self-help technologies, emphasis on managerial responsibility for people and other such actions are also making HR more and more disconnected from people.

The modern HR manager has fewer and fewer touch points with his or her employees and this does not seem to cause any worry. Right from selection interviews to exit interviews, external service providers are taking over.

Mistaking a `Talent mind-set' for a `people mind-set'

HR is now called talent management and HR professionals prefix or suffix these words to their titles. Many believe that this gives the function and the professional a greater sense of purpose.

The only problem is that "Human" is now missing not only in spirit but also in "letter"!

The way the term talent is used also gives me the sense that HR is in the business of materials management and not in the business of people!

While the urgency to compete and establish supremacy in the labour market is high, the orientation seems more mechanistic and less humanistic.

Less science more techniques

Many of today's HR professionals lack knowledge about the basic science of human behaviour which forms the edifice for understanding people and their motives.

On the other hand they are overwhelmed with what today's HR consulting firms dish out - talent assessments methodologies, engagement models, criteria for becoming the "best in the list" and so on.

A sound grounding in the science of human behaviour would have helped today's HR professionals diagnose people issues better and strike a better balance between business demands and people's needs. Without this understanding of people, the empathy and concern are hard to come by.

The HR profession is undoubtedly under a lot of pressure given that most of today's business problems revolve around people. Merely being the warm and fuzzy guy around will not do. Giving up the people agenda altogether will not do either!

So... .

Let's get in touch with our own humanness

Let's understand the people behind the talent

Let's reconnect with these people as people

(The author is the founder and CEO of totus consulting, a strategic HR consulting firm that designs and implements systems and processes for organisations across diverse industries. He can be reached at [Login to view])

Hi Rajat,

This article has really helped me enhance my final year project on recruitment and selection. Could you please suggest some relevant points on recruitment and selection in the IT industry?

Thanks & Regards,
Radhika

Hi Rajat,

Since this subject is close to your heart..thought i share this news/trend on the same.

Regards,

Bhawana

HR Must Think Beyond Boundaries

Attrition is a reality and HR now has to shift focus from battling attrition to retention of key talent. With a shortfall of 15-20 pct expected in mid-level managers, HR should seriously consider effective retention methods and let go of the bottom 5-10 pct that are leaving the company, said Mr Ahmed Ali, Managing Director, Cornucopia, a Bangalore-based HR consultancy firm.

He was speaking at a seminar on `Retention — Biggest Business Challenge', organised by the Bangalore Chamber of Industry and Commerce, Bangalore. Mr Rajeeva Kumar, Director, Omam Consultants, who presented survey data on a compensation study, said that variable pay is increasingly becoming a bigger component of the salary of Indian executives. "Senior and top management receive the highest percentage of variable pay (17-30 pct). Variable pay has increased across sectors this year: in banking from 13 to 24 pct, in IT from 13 to 18 pct, manufacturing from 10 to 16 pct, FMCG from 14 to 18 pct."

Source: 03-03-07 The Hindu Business Line New Delhi Edition

Dear Mr. Joshi,
Greetings of the day..
Please help me with this issue;when i ask my line staff/managers to recognize or thank their people.
Managers say, “Why should I recognize or thank him? He's just doing his job.” And, life at work is busy, busy, busy....et all
Yes, we gave Employee Recognition Systems & policies in place..
Regards,
Bhawana

Hello Rajat:
Greetings of the day and hope thatyou are feeling better :)
Please help me with this issue;when i ask my line staff/managers to recognize or thank their people.
Managers say, “Why should I recognize or thank him? He's just doing his job.” And, life at work is busy, busy, busy....et all
Yes, we have Employee Recognition Systems & policies in place..
Regards,
Bhawana

Hi Bhawana,

My ideas have helped you, and please share the results with us.

Regards,

Rajat

Dear all,

The prophetic words of Winston Churchill when Britain agreed to give freedom to India sometimes ring true :D ... especially when you find the government interfering in the operations of the private sector, especially when they can't put their own house in order and issues like Ram Setu seem a priority... read on.

Don't Demean BPO Staff, Leave Personal Lives Untouched: Nasscom

Software industry body Nasscom on Friday reacted sharply to the reported statement of Health Minister A. Ramadoss on the habits and health hazards of employees in the BPO sector, saying the government should not interfere in the personal lives of the people.

"Nasscom is deeply distressed by the comments, as reported in the media, made by the Minister of Health. This is a generalized slur on half a million youngsters working in this industry," the association said in a statement.

It said that allegations of bad diet, excessive smoking, and drinking were "exaggerations that demean BPO employees." Personal lifestyle of adults is for them to choose as long as it is within the law, Nasscom said.

"We do not think it is for companies or the government to interfere in the personal life of adult Indians," it said.

ITeS-BPO exports rose 33.5 per cent to USD 8.4 billion in 2006-07 and are expected to rise to 10.5-11 billion dollars this fiscal year, according to Nasscom projections.

The IT-ITeS industry is the largest and fastest-growing employer in the organized sector. It directly employs more than 1.6 million and has indirectly created job opportunities for an additional 6 million people in related industries.

Ramadoss is reported to have expressed shock at the young BPO workers facing health hazards at the workplace and lifestyle leading to heart attacks and other major ailments.

"We are, therefore, finalizing a blueprint of India's first dedicated health policy for the BPO sector," he was quoted as saying in a newspaper report.

Dear Mr. Joshi,

I trust this post finds you in the best of spirits. 😊

Please advise me as I have received an offer from a reputed manufacturing firm, and the key assignment is to work on retention strategies and implementation. They are facing a 35% attrition rate.

Please advise whether my limited experience in the BPO industry would be relevant and help me take on this assignment.

Thanks,
Bhawana

Hi Bhawana,

Am traveling at the moment and I would not be able to respond to your question in detail and be elaborate.

I refer to your query whether your experience on Retention Strategy in BPO Industry would be helpful in the new assignment viz Manufacturing sector.

Well, it¡¯s difficult this question right away as it depends on two factors :

1.Your experience and expertise on Retention Strategies gained in BPO Sector

2. Your would be company¡¯s work culture and the support you get from the Top Management ¨C here I would lay emphasis on the dyadic relationships.

Retention strategies is no rocket sciences and the cornerstone of retaining staff is based on 3 R¡¯s viz Respect, Recognition and Rewards. These should be aimed to make the organization ¨C a great place to work!

One needs to be in sync with the organization¡¯s dynamics as one cannot write the strategies in Ivory Tower! Also one needs to develop the good working relationship with the Top Management to convince of the same and very well understand the nuances of the organizational dynamics.

Let me share an example, if you come across the profile of the employee in the job portal, first thing you should do is to have a discussion with his/her supervisor about his performance and possible reasons for a change. Assess the same first in detail and then have an interview with the aforesaid employee with a plan in mind as what should the company do to make their stay at the company worthwhile with a win-win situation. Please remember compensation is not always the topmost reason !.

Best wishes in your new assignment!.

Regards,

Rajat Joshi

Hi Bhavana,

Coming to your query regarding your new assignment as well as your job profile...

As presently you are working with a BPO.. in current scenario the attrition rate of BPO Industry is very high, and handling HR department is a real challenge.. because in BPO, the work group comprises of mostly 12th pass students or college going students and they are unmatured, who doesn't know where to move.. whats good for them..

So retaining such an employee is in real a great task for HR..

If you have handled the things well at your end and played a good part in increasing the retention in BPO.. then its a good platform to move on.. you can do a wonder there..

To help further, Here are some interesting Retention Tools which I came across-

1. Offer fair and competitive salaries. Fair compensation alone does not guarantee employee loyalty, but offering below-market wages makes it much more likely that employees will look for work elsewhere. In fact, research shows that if incomes lag behind comparable jobs at a company across town by more than 10 percent, workers are likely to bolt. To retain workers, conduct regular reviews of the salaries you offer for all job titles — entry-level, experienced staff and supervisory-level. Compare your department's salaries with statistically reliable averages. If there are significant discrepancies, you probably should consider making adjustments to ensure that you are in line with the marketplace.

2. Remember that benefits are important too. Although benefits are not a key reason why employees stick with a company, the benefits you offer can't be markedly worse than those offered by your competitors

3. Train your front-line supervisors, managers and administrators. It can't be said often enough: People stay or leave because of their bosses, not their companies. A good employee/manager relationship is critical to employee satisfaction and retention. Make sure your managers aren't driving technologists away. Give them the training they need to develop good supervisory and people-management skills.

4. Clearly define roles and responsibilities. Develop a formal job description for each title or position in your department. Make sure your employees know what is expected of them every day, what types of decisions they are allowed to make on their own, and to whom they are supposed to report.

5. Provide adequate advancement opportunities. To foster employee loyalty, implement a career ladder and make sure employees know what they must do to earn a promotion. Conduct regular performance reviews to identify employees' strengths and weaknesses, and help them improve in areas that will lead to job advancement. A clear professional development plan gives employees an incentive to stick around.

6. Offer retention bonuses instead of sign-on bonuses. Worker longevity typically is rewarded with an annual raise and additional vacation time after three, five or 10 years. But why not offer other seniority-based rewards such as a paid membership in the employee's professional association after one year, a paid membership to a local gym after two years, and full reimbursement for the cost of the employee's uniforms after three years? Retention packages also could be designed to raise the salaries of technologists who become credentialed in additional specialty areas, obtain additional education or take on more responsibility. Sign-on bonuses encourage technologists to skip from job to job, while retention packages offer incentives for staying.

7. Make someone accountable for retention. Measure your turnover rate and hold someone (maybe you!) responsible for reducing it. In too many workplaces, no one is held accountable when employees leave, so nothing is done to encourage retention.

8. Conduct employee satisfaction surveys. You won't know what's wrong ... or what's right … unless you ask. To check the pulse of your workplace, conduct anonymous employee satisfaction surveys on a regular basis. One idea: Ask employees what they want more of and what they want less of.

9. Foster an environment of teamwork. It takes effort to build an effective team, but the result is greater productivity, better use of resources, improved customer service and increased morale. Here are a few ideas to foster a team environment in your department:

• Make sure everyone understands the department's purpose, mission or goal.

• Encourage discussion, participation and the sharing of ideas.

• Rotate leadership responsibilities depending on your employees' abilities and the needs of the team.

• Involve employees in decisions; ask them to help make decisions through consensus and collaboration.

• Encourage team members to show appreciation to their colleagues for superior performance or achievement.

10. Reduce the paperwork burden. If your technologists spend nearly as much time filling out paperwork, it's time for a change. Paperwork pressures can add to the stress and burnout that employees feel. Eliminate unnecessary paperwork; convert more paperwork to an electronic format; and hire non-tech administrative staff to take over as much of the paperwork burden as is allowed under legal or regulatory restrictions.

11. Make room for fun. Celebrate successes and recognize when milestones are reached. Potluck lunches, birthday parties, employee picnics and creative contests will help remind people why your company is a great place to work.

12. Write a mission statement for your department. Everyone wants to feel that they are working toward a meaningful, worthwhile goal. Work with your staff to develop a departmental mission statement, and then publicly post it for everyone to see. Make sure employees understand how their contribution is important.

13. Provide a variety of assignments. Identify your employees' talents and then encourage them to stretch their abilities into new areas. Do you have a great "teacher" on staff? Encourage him/ her to lead an in-service or present a poster session on an interesting case. Have someone who likes planning and coordinating events? Ask him to organize a departmental open house. Know a good critical-thinker? Ask him/ her to work with a vendor to customize applications training on a new piece of equipment. A variety of challenging assignments helps keep the workplace stimulating.

14. Communicate openly. Employees are more loyal to a company when they believe managers keep them informed about key issues. Is a corporate merger in the works? Is a major expansion on the horizon? Your employees would rather hear it from you than from the evening newscast. It is nearly impossible for a manager to "over-communicate."

15. Encourage learning. Create opportunities for your technologists to grow and learn. Reimburse them for CE courses, seminars and professional meetings; discuss recent journal articles with them; ask them to research a new scheduling method for the department. Encourage every employee to learn at least one new thing every week, and you'll create a work force that is excited, motivated and committed.

16. Be flexible. Today's employees have many commitments outside their job, often including responsibility for children, aging parents, chronic health conditions and other issues. They will be loyal to workplaces that make their lives more convenient by offering on-site childcare centers, on-site hair styling and dry cleaning, flexible work hours, part-time positions, job-sharing or similar practices. For example, employees of school-age children might appreciate the option to work nine months a year and have the summers off to be with their children.

17. Develop an effective orientation program. Implement a formal orientation program that's at least three weeks long and includes a thorough overview of every area of your department and an introduction to other departments. Assign a senior staff member to act as a mentor to the new employee throughout the orientation period. Develop a checklist of topics that need to be covered and check in with the new employee at the end of the orientation period to ensure that all topics were adequately addressed.

18. Give people the best equipment and supplies possible. No one wants to work with equipment that's old or constantly breaking down. Ensure that your equipment is properly maintained, and regularly upgrade machinery, computers and software. In addition, provide employees with the highest quality supplies you can afford. Cheap, leaky pens may seem like a small thing, but they can add to employees' overall stress level.

19. Show your employees that you value them. Recognize outstanding achievements promptly and publicly, but also take time to comment on the many small contributions your staff makes every day to the organization's mission. Don't forget — these are the people who make you look good!

Wish you all the best..

Regards,

Amit Seth.

Hi Rajat,

That was an interesting read, but have you also tried to find out about the other sectors i.e., IT/Banking, etc.? There is a flight of talent crisscrossing barriers and borders. Just looking at the BPO industry won't suffice; attrition is such a sensitive topic these days that it must be understood at a socioeconomic level.

A survey completed by an analysis spanning all the sectors, taking into account profession, academics, age, gender, income levels, aspiration levels, needs, etc., must be considered. After all, we are talking about the productivity levels that contribute to the GDP. Your article is good, and I quite appreciate the hard work that went into it.

Looking forward to reading all your articles.

Thanks.

Best regards, Mohan

Email: mpothur@yahoo.com

Hi Rajat,

The information shared by you is quite informative. I would really appreciate it if you could share a sample format for a Retention Policy considering an IT organization with a strength of 1000 employees. Although the attrition rate is very low in our company, I am formulating a new policy on the same, so I need a sample format and key areas to cover. Your help in this regard would really be appreciated.

Regards,
Bhawna Kumar
sachdeva.bhawna@gmail.com

Hi Mohan,

Thanks for your appreciation!

Yes, I agree with you that the attrition rate in the BPO industry is sensitive and quite high. I must reiterate the fact that most of the retention strategies, as followed by the companies in other industries, have been used or benchmarked by non-BPO industries.

Has anyone wondered that retention strategies have gained importance in recent times and why no one talks about the same as prevalent in the 1980s or 1990s?

Regards,

Rajat

Hi Amit,

Thanks for your valuable inputs.

Regards,

Rajat

Hi Bhawana,

Hmm. There is no such sample format as it needs to be prepared at the ground realities level and tempered with organizational needs.

This is somewhat akin to what I advocate - to have a black book at the time of war as to what action needs to be taken in the time of crisis! rather than a knee-jerk reaction at the last minute without a game plan.

Also, this has to be supported by the top management; otherwise, it would just become a paper exercise. For instance, discussions with the employees and their supervisors would reveal to you what needs to be done to retain the employee and come out with the template on a micro and macro level!

Best wishes,

Rajat

Cos have to chart HR retention strategies'

Our Bureau

Hyderabad

WITH technology companies scaling up operations and expanding the scope of work out of India, they are faced with the challenge of low supply of employable talent, calling for a paradigm shift in their approach to manage and retain the exiting talent pool.

At an IT industry meeting organised by the National Association of Software and Services Companies (NASSCOM) on "Human Capital management — Key success factors for knowledge-based industry," the President and CEO of Pinexe, Mr J.A. Choudary, said, "As MNCs and Indian companies take to intellectual property creation here presently from relatively lower-end services work a few years ago, we are faced with human resources crunch, particularly in high-end technology work. In fact, some reports suggest that attrition levels are as high as 40 per cent. The only way out is to develop appropriate retention strategies.

The Chief Operating Officer of Nipuna Services, Mr Sandeep Madan, described HR as a soft funky area, where it was always difficult to establish a right equation between demand and supply.

The Founder of Kenexa, Mr Rudy Karsan, said that the overall costs of human resources had rapidly increased; from about 26 per cent of the overall revenues, this has moved up to 62 per cent. The HR challenges could partly be tackled with better training and in-house retention moves.
The Director of Human Resources, Convergys, Mr Anthony Jose, said that there was a paradigm shift in the way human capital, the main resource in the software services industry, is managed. While corporations focus on external issues to sort out some of the day-to-day HR challenges, often the problem is within the organisation.

Hi Rajat,

You are awesome with the knowledge of retention and also the widespread knowledge you have. I was engrossed in the details of the topic and all the valuable replies the members have shared over here. But my humble request would be, "Please do not refer to the 'BIBLE'." I hope I did not hurt your sentiments. Cheers Senior, and awaiting the next issue of brainspread.

Regards,
Lionel.

Hi Lionel,

Thank you for your warm compliments, and I am glad that you enjoyed reading the posts.

I sincerely apologize for hurting your sentiments, which was absolutely unintentional on my part.

I am working on the next series, which is getting delayed on account of a huge pile-up of work! :(

Regards,

Rajat

Dear Mr. Joshi,

Please advise me on how to deal with the situation.

A senior leader of the organization who is very aggressive in his behavior is driving away good people, yet the management is keen on him as he is a star salesperson.

I look forward to hearing from you on this issue, please.

Regards,

Bhawana

Dear Rajat,

Just got to know through my seniors that you had conducted a session on the best and innovative HR practices on retention strategies last year at the HR meet, which I had missed out on.

Would appreciate if you could take up the same again, and I shall coordinate with others for the session.

Regards,

Bhawana

Hi Rajat,

Thank you for the write-up; it is very informative. I would like to commend you as the mastermind behind the scenes. Cheers! I would appreciate it if you could shed more light on operational issues regarding man/people management.

Regards,
Lionel.

Hi Lionel,

Thanks for your kind words. I really appreciate your comments.

Hello Bhawana,

I trust this message finds you in high spirits. I am proposing to have a knowledge-sharing session this Saturday, 21st March 2009. The topic will be:

Best Practices on Retention Strategies: Future Trends

The session will last for about an hour, followed by another 30 minutes for discussion.

Time: 6:00 p.m.
Venue: I have reached out to some people regarding the same and they should revert to me by Tuesday.

Regards,
Rajat Joshi

Dear Mr. Joshi,

Would you please share more insight on this subject as it has been a while since we last heard from you.

Regards,
Bhawana

Dear all,
This is an interesting article about the changes that would happen once the American economy improves.

Lessons From the JetBlue Debacle
by Simon T. Bailey

When flight attendant Steven Slater dramatically "gave notice" to his employer by departing via a JetBlue airplane's emergency chute earlier this month, he became a harbinger of what may become one of the most chaotic employment scenarios: a mass exodus of the workforce.

While some may be quick to dismiss the flight attendant's rant as a random tirade that has no probability of happening in their own organization, savvy leaders should take a closer look at the sentiments registered by an MSNBC.com poll following the incident, in which half of the 91,000-plus voters deemed Slater a hero and only 10 percent suggested he was an "idiot."

It also portends another undercurrent in the American workforce: a serious case of wandering-eye syndrome that's going to lead to an influx of professional divorce if we're not careful.

Pay cuts, increased workloads, and dispassionate leadership have resulted in a disturbing level of employee frustration. According to a January 2010 report by The Conference Board, job satisfaction in the U.S. is at a 22-year low—55 percent of employed Americans are dissatisfied with their job and, as a result, they're seriously contemplating divorcing their employer.

For now, they're biding their time, but only until the economy rebounds just enough to follow Slater's lead and leap for something else. Granted, it's unlikely to be on par with the spectacle that played out on the tarmac at JFK, but it will happen.

A Salary.com survey of 14,000 workers and almost 400 HR managers found that economic growth, coupled with shifting employment options, has recently led 65 percent of U.S. workers to consider launching some sort of job search.

Here's a caution to leaders: Your partners are looking for new mates. What are you going to do about it?

It's true that leaders may have been focused on making sure the future is secure, but they've been neglecting their most important relationships, and their employees have developed a wandering eye. Like an unhappy spouse in a failing marriage, their employees are asking themselves, "Am I happy, appreciated, satisfied, and cared about? Or are we merely going through the motions?"

For leaders who are seriously committed to avoiding a messy divorce and rebuilding their professional marriage, the best place to start is by honestly answering the following questions:

a) Do I care about the person behind the employee?

b) Am I the least bit interested in understanding what ignites employees' spirits and engages their hearts and minds?

c) When was the last time I had lunch in the employee break room or greeted my staff in the lobby upon arrival in the morning?

Individuals who have ever been in a long-term relationship know that little things make a big difference. Since small is the new big, what can leaders do on a small scale, but consistently, that will make a big impact to keep talent happily married to the company?

[About the Author: Simon T. Bailey is an organizational thought leader for Brilliance Institute, Inc. and author of "Release Your Brilliance."]

Regards,
Rajat Joshi

This is a cool article. Though retention strategy varies across industries and functions, what an employee expects from the company is "good recognition." Here, the rocket science is "how happy your employee is."

Regards,
Dinesh L.