Attrition is one of the top challenges faced by any modern employer. Now, there may be several reasons why employees leave an organization. In the last decade, employers have begun to investigate the reasons why employees leave an organization via surveys during the tenure of an employee or information gathered during the exit interview. On average, an industry may face an attrition of anything between 14-18% per year, affecting the executive or individual contributors to mid-level management employees. Major reasons behind this are usually dissatisfaction or unfavourable treatment from the immediate manager, compensation or work environment. Other reasons consist of inconsistency of growth and compensation, lack of long-term vision for the company and individual growth plan of employees.
Having listed these reasons is not enough to tackle this challenge. Taking note of these possible reasons and resolving these concern points is what will bring the solution. Meeting every demand of every employee is also not the solution. It is an issue that is to be resolved at an organizational level. Many organizations now have an elaborated development plan for every employee at every level, and yet, there may be attrition that cannot be controlled and is beyond the reach of an organization.
We can, however, formulate ways on how to lessen the impact of employee turnover. Some of the things to be considered are:
1. Impact of attrition: Too much focus on skill sets led to missing out on candidates with the right attitude and personality.
How to handle: Spending more time on hiring talent by analysing the candidate’s individualism and personal perspective on the world and work.
2. Impact of attrition: An experienced and trained employee left the organisation with a pile of work unmanaged.
How to handle: Identify any resentment developing early on and tackle it.
3. Impact of attrition: Young talent leaves the organization after the training.
How to handle: Young talent should not be promised an early hike in compensation and should, instead, be given monetary and non-monetary incentives both, like badges, token of appreciation, sponsored training courses and more which benefits the company and retains the employees in the long run.
Having taken all the necessary precautions, there may still be room for some attrition. Eventually, it is the responsibility of the reporting managers and the HR department who need to be trained to handle workload management and attrition respectively, without letting it have an emotional impact on the team members.
Statistics source: https://www.statista.com/statistics/737996/average-voluntary-staff-turnover-by-industry-india
A very crucial part of an HR’s role is the on-boarding of a new employee, which is the process of interacting with the employee on their first day. It not only makes the employee feel welcome and happy to be a part of the organisation but also impacts their productivity positively. This process of on-boarding covers every step, like taking care of the preparations, arranging for an orientation to familiarize them with every aspect of their work and introducing them to the team. In addition to these, introducing them to the tools and software used in the organisation and evaluating their on-boarding experience afterwards is also important.
1. Hearty welcome
Make sure to congratulate the employee on receiving a new job so that they feel like they are a part of the team. Place an announcement that they are starting at your firm on your social media pages or even send out an announcement tweet.
2. Get started
Set up their new email with their correct full name as they can get into the swing of things on day one. Arrange a starter package for them that includes their mobile phone, laptop, new business cards and personalised message pads. These etiquettes will make them feel like they are already an important part of the company and motivate them to perform their best.
3. Familiarize them
Set up an introductory lunch with their immediate bosses and team members in a casual setting, to ease the employee’s nerves and familiarize them with everyone.
4. Make them feel at home
Send them the brand/company merchandise like T-shirts, phone cases or water bottles, etc to make them feel like a part of the organisation.
5. Give them a tour
Take them on an office tour to every room, the pantry, washrooms etc, so they are well acquainted with the office premises.
6. Have them come prepared
Send your employees the pre-training sessions before hand, so they spend less time with the training after they join and come prepared.
7. Update them
Make sure to email all the rules and regulations like office timings, dress code, holiday calendars and office etiquettes to the employee before they start work, so they know what to expect.
8. Encourage interpersonal interaction
Involve current employees in the process of pre-boarding too, so the employee can connect with their colleagues and be more comfortable on the job without feeling left out.
9. Store their information
Collect their personal information for the payday process like their bank account numbers so that they can receive their salary smoothly.
An HR has a huge role in employee retention and performance, as they are in charge to make them feel included and comfortable. These simple tips can facilitate smooth on-boarding to help make employees feel at ease even before they begin work and thereby, bring positive outcomes.
The biggest problem today is retaining good employees in a job for a long period of time, as employees look for opportunities to grow. They not only need job satisfaction but also development of a new and wider skill set, that will help them grow in their careers. Investing in your employees will make sure that your current employees do not switch jobs frequently, but are also motivated to work efficiently on the job.
Investing in current employees is also less costly than hiring new ones. Company image and policies also affect the influx of new employees in your company, as a company that invests in their employees will have better talent seeking to join it. There are many affordable ways a company can train their employees without shelling out big budgets. Mentor meetings and discussions with trainees help keep their motivation high, but also help them feel more at ease on the job which helps the employees performance. Investing in a great online tool kit will also make it easy for employees to track their progress and reflect on their weaknesses. There are several great LMS toolkits available that don’t break the bank, but help employees with their career goals.
Every employee sets goals for their careers along the way and wants to see them accomplished, that’s possible with trainings on the job and guidance from peers. Companies need to find an employee with great communication and knowledge, that can teach fellow employees what they’ve learnt. Keeping learning lunches where employees discuss different topics they want covered in an informal setting is also a great training idea. The efforts that the company puts into their employees don’t go unnoticed, as employees feel like they are an integral part of the company, which increase their job satisfaction as well as job loyalty.
When a business grows, it can be because of many factors like business strategies, market research, customer satisfaction, and more. But the most important factor is its people. They are the growth drivers of any company and it is them who impact the business in the long run. The kind of employees and the talent in a firm can make or break their place in the market. Given that, the human resource decisions are majorly responsible for the other decisions within the company, which directly impacts its profit or loss. Hence, it’s important that a company focuses on hiring the right kind of people for the right fitment of roles if they want to make the most of the employee’s skill and experience.
There are a few important factors to consider when it comes to talent management. One must consider the goals that the company wishes to achieve over time or till a period, before choosing the talent for it. Without the goals in mind, hiring the right individuals for the job is futile and the results that company is looking for cannot be achieved. The employees must be aligned with the company’s short-term or long-term goals, and they must be given clarity on the vision, mission, and values of the company. For instance, if one of the values of a company is “Customer-first approach,” it should trickle down to all levels of the organisation. Moreover, employees must have a sense of ownership that, in turn, instills a sense of responsibility for the company’s growth and betterment.
Once the goals have been laid down, it is time to understand the challenges faced by the workforce in the company, while also motivating your employees and maintaining job loyalty. The senior management needs to make sure to constantly support and motivate employees and help overcome the challenges they face in the organisation. They need to identify gaps so that training and development is given to non-performing employees as well. It is also imperative to mentor the juniors to keep them motivated and guide them in the right direction. A defined career growth and career path are very important for employees; they need to be able to see themselves growing in the organisation in the long run. There should also be clarity of roles with perpetual and persistent motivation.
The next step would be to measure the output before and after to understand how far the company has come and if the employees have made a great impact on sales. By evaluating the outcome one can understand the areas of improvement and learn from their mistakes.
To sum up the talent management in a business plays a massive role for the growth of a company. It is not just important to hire the right people but also to hire them for the right role and at the right time. Without efficient and appropriate talent in the company, all the other resources will be ineffective and will not help to achieve one’s goals.