Monday, December 01, 2014

Attrition a major challenge


Attrition simply means “A reduction in the number of employees through retirement, resignation or death. “Attrition can be conceptualized in many forms; the two prominent forms of attrition for the constraints of this endeavor are attrition due to employees leaving 
Attrition has always been a sensitive issue with firms. Despite offering the highest salaries across all business segments, the industry has been plagued with attrition across the board, particularly in the past few years. This ever-growing wage inflation and attrition rates have put financial pressures on firms.

For a generation used to constantly seeing and adapting to change, "getting bored" will happen quickly and easily. Jobs will be increasingly treated like projects and assignments that workers would like to complete and move on. And they would want to have the option of multiple employment contracts - full-time jobs, consultancy, and project-based jobs to retain them. Companies will have to either cater to these needs or lose them to competition.

It is not easy to find out, who contributes and who has the control on the attrition of employees. Various studies/survey conducted indicates that everyone is contributing to the prevailing attrition. Attrition does not happen for one or two reasons. The way the industry is projected and speed at which the companies are expanding has a major part in attrition. If you look within, the specific reasons for attrition are varied in nature and it is interesting to know why the people change jobs so quickly. Even today, the main reason for changing jobs is for higher salary and better benefits.

Employee attrition rate can be never being entirely eradicated. It can only be influenced to keep it in control. How a company can best retain its staff in a competitive environment is the topmost challenge of HR professionals. When employees leave, it is usually due to either lack of appreciation or due to an inability of nurturing employees according to their skills. Following are some strategies to combat the attrition problem

Some ways to curb the Attrition are:
o   Exit Interviews
o   Mentoring
o   Align Career to Business Goals
o   Strategic Compensation Package
o   Learning and Development

       The current scenario where every organization wants to be at its competitive best, high attrition rate can really act as a threat to success. Attrition is a very serious challenge.
         Especially to rapidly growing organizations. Before it explodes, the organizations should seriously workout strategies to reduce the turnover so that the organizations should not suffer. Organizations planning for the future should be giving close attention to why attrition is occurring in the present.

Attrition is not bad always if it happens in a controlled manner. Some attrition is always desirable and necessary for organizational growth and development. 


                                                                                                                         - Ajeya Krishna

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