Attritions, retention policies, HR trends in smaller firms

The outlook of corporate India about the rate of attritions, retention policies, HR trends etc., is talked about in business circles most frequently. However, in this outlook we tend to ignore other industry chains like the fashion industry the restaurant business, small recreational organizations etc. Though not considered to be a part of the official corporate India, these organizations too, consider HR to be a very integral part of their daily business. For time, it is all about how well they can manage their small yet close knit group of employees and retain through their own way.

For most corporate companies across Indian Inc one of the major issues faced is that of attrition. While industry experts say that attrition in corporate India is on the rise, the same is the case with other industries as well. Even though it is not talked about, these businesses feel that they too, are a part of this growing problem. In line of business, the rate of attrition is growing at a fast pace. Attrition in the hospitality industry is up by 15-20 per cent and it is expected that by the year 2010, it will increase by another 50 per cent. As of now, attrition rate is 10 per cent per annum and this in not only in the senior positions but also across various verticals of the industry.

Pharmaceutical industry, has seen major attrition in to medical sales representative level, which has an attrition rate of 35 per cent

Though attrition rates vary, experts say that almost all the time, the reasons for quitting a job is the same. Many employees within their field tend to jump jobs in a quest to fit in better positions or due to salary. People don’t stay on for too long if they aren’t too satisfied with their work. They tend to jump jobs to find their true calling.

For every organization, it is all about having the best practices and training people through their policies. While corporates can boast about their achievements, other industries believe that they too have implemented some practices within their organization and into line of business. One organization encourages carpooling as also help employees who are not financially stable with their children’s educational needs. They also have occasional yoga and calming sessions that help their employees to remain clam, thus taking a break from the routines of office stress.

Every organization today has crèche services for their employees. Just like them, The backpacker Co., a recreational company has also initiated something on those lines. They encourage their children to work. They have one big coloring area, some story books etc for the children who come in with their parents. However, this is not like an organized crèche but a place where employees can just get their children and have fun. And for reading enthusiasts, they also have a collection of books on management, self help, travel etc, which anyone can take and read.

Every top notch organization within India Inc had come in terms with the idea of the open door. To make employees feel comfortable with this concept, one organization decided that none of their offices would have any doors so that the employees can voice out his/her concern/opinion at any time they want.

‘Vitabiotics’ also has implemented seething on similar lines. For their employees to feel satisfied, every quarter have a company meeting where senior management and the CEO talk directly to every member of staff about company’s progress vision and success. They also have heads of departments talk to everyone about their accomplishments and tasks. This helps improve the internal communication within the company because if each person understands how other departments work they are more sympathetic and tolerant when it comes to interacting with them.

The facilities are not the only implementation that these organizations have done, they too believe that rewarding their employees no matter how small, helps them to have a happy workforce.

Especially in the hospitality industry a little appreciation across all units goes a long way. Appreciation should not just be limited to certain levels of people but across the organizations. There is a need for appreciation and recognition for the employees on a daily basis. Whenever an employee has done considerably well, they not only inform other employees of the organization but also the family of the well performing employees. Also, they try to show appreciation everyday by sending employees an appreciation card.

In the fashion industry, where the paycheck varies with every passing minute, they have made sure that all their employees are kept in par with the industry.

Apart from that every time one of their employees has done a commendable job, they get rewarded in cash bonuses. Students from various fashion institutes who intern with the firm are allowed garments to reward them for exceptional work..

It is a matter of fact that these organizations cannot compete with corporate India when it comes to their practices and policies. However, they have well beyond broken the shackles of being just a small organization and have implemented HR within their organization in their own way.