This article is written as requested by some in the Forums.
Attrition rate is calculated based on the total strength in the organization and percentage of employees leaving it during a specified period. For the same type of industry or business if the percentage is abnormally high then it requires a review by the employer what is wrong with the organization.
Attrition is a major challenge that many corporates have to overcome in today’s highly competitive business environment. Re-hiring can be a very costly affair; it can be a tedious process administratively too, as the entire process if hiring and training is very time consuming. Losing a key employee has some serious repercussions; it’s a loss of talent expertise and competencies and companies in today’s talent starved environment will find it difficult to find the perfect fit. Also, companies have to incur higher recruitment costs too to fill the vacant position. There are no quick fixes – the only way through which one can minimize risk is by effectively engaging with one’s most important stakeholder the employee.
Organizations will need to review their current retention plans in order to keep themselves abreast with the changing market demands. Companies need to ensure that quality talent is identified early on and put on a fast track program to grow within the organization. Learning and development are increasingly becoming key factors today towards ensuring increased retention. Also, performance linked pay will be an important parameter against which an employee will make his /her decision of staying on with the current company.
Providing new avenues for growth and learning through job rotation is a significant driver in everyday knowledge enhancement. Staff engagement is a key area of force and this driven through annual day celebrations periodic CEO chats and internal blogs on the intranet etc these align employees with the workplace and organizational goals. Companies also need to provide benefits which help an employee attain a good work life balance.
The value system of an organization is driven by the core beliefs in respect to individuals and transparency and these values are carried forward in their interactions with candidates aspiring to work with us. Interview is a commonly used term to describe the interaction that take place during the selection process; however at ADP they prefer to use the term discussion as this denotes the true culture of the organization. As part of the selection process at ADP, efforts are made to value the candidate as well as provide appropriate feedback as per the discussions conducted.
A feed back given constructively can work wonders for candidates. It helps them identify their development areas and also see their blind spots. This way, they are able to work on individual development besides what their current employers are doing are them. Also, sharing the result firstly leaves.
The simultaneous growth experienced in other sectors, including financial services, manufacturing and retail business, has created a huge demand for skilled labor across sectors. The experience of the Indian fish processing industry, a large foreign exchange earner, is an example of this problem. In recent years, the processing companies found it attract workers to their plants. The traditional workers prefer other employment avenues like the retail sector. Skilled labor shortage has also prompted the construction industry to source talent from abroad, for example, hiring carpenters from Korea.
Unlike the problem of the labor force getting older as experienced by countries like the United States and Europe, India faces the challenge of a young work force. The challenges of dealing with a young work force are different. Demographics consider that India is and will remain for some time one of the youngest countries in the world. In 2000, 33% of India’s population was aged below 15 years. By 2020, the average age is estimated to be 29.
It is argued, therefore that with careful planning, the population base of India can be used for its advantage, a demographic dividend, instead of viewing the expansion in population as a burden. This, however, requires efforts to improve skills and generate jobs that can absorb the young workforce.