- Haryana: 75% reservation to locals in private jobs applicable from Jan’22
- Amid Centre prodding, 9 states finalise rules for 4 labour codes
- Labour laws come into focus amid protest threat
- Gurugram’s loss becomes Noida’s gain?
- EPFO moots entry of former members with minimum contribution of Rs 500 a month
- Manufacturing activity with 10 or more workers with power is essential to be a factory. (SC)
- Service conditions can’t be altered during pendency of industrial dispute. (Delhi HC)
- Communication sent at a recorded address will be deemed to have been received. (Delhi HC)
- For holding enquiry under section 7A of the Act, complaint is not necessary. (MP HC)
- Coercive action for recovery can be converted into installment on the request of the employer. (Madras HC)
- G20 Framework On Global Tax: What Does It Mean For India?
- 15 Best Employee Retention Tools in 2022
- 2022 Workplace Trends
- How to Effectively Incentivize Your Sales Team
- 6 stay interview questions that top employers ask
The Great Indian Attrition
Recently, New Jersey-based Cognizant Technology Solutions Corp., which has more than two-thirds of its overall employees in India, was in news for a steep quarterly annualized voluntary attrition rate of 33% during the September quarter, the highest among peers in the industry. The high attrition rate is not just limited to Cognizant or the IT sector. The trend of voluntary attrition is on the rise in India as well as worldwide.
Commonly referred to as a ‘churn rate,’ a company’s attrition rate is the rate at which people leave. It is the number of people who have left the company, divided by the average number of employees over a period of time. Typically, it is expressed as a percentage (%). Ideally, your attrition rate should be below 10%.
| Type Of Attrition | What It Means |
| Voluntary Attrition | When an employee chooses to leave |
| Involuntary Attrition | When an employee is dismissed |
| Internal Attrition | When employees move internally |
| Demographic-specific Attrition | When a specific group (age, gender, ethnicity) leaves |
Why does it matter?
Exiting employees can cost your business. The first impact can be felt in hiring cost. Given that you invested resources into hiring, training, and certifying highly-trained employees in the course of their employment, replacing a highly-trained employee can vary between 120% of their annual salary to more than 200%, according to some sources. Those investments immediately vanish into thin air once an employee resigns.
Unfortunately, your company’s turnover woes don’t stop there. When good employees quit and less experienced workers are retained, overall business conditions might be put at risk due to the negative reputation owing to the high attrition rate. Your clients and employees won’t trust you as much as you would want them to and might consider looking for more reliable companies. Whenever someone leaves it definitely changes the dynamics of a team and can even hurt the company’s employer brand and even employer value proposition (EVP).
Usually it starts at the reputation and ends with poor quality and quantity of work. The truth is experienced, put simply, gives you an edge. Experienced workers bring a level of experience, critical thinking and sheer knowledge that cannot be taught.
Moreover, the new employee has to go through a period of adjustment in the workplace, which means tasks may take longer to finish as far as the new hire is concerned. Consequently, there might also be delays within teams who are relying on their newbie members to help them get things done.
Calculate Your Company’s Attrition Rate
Hence, keeping a check on the attrition rate is indispensable to ensure a great business. Once you know your turnover or churn rate, you’ll be able to find out why people are leaving and develop relevant and effective retention strategies to keep your employees happy and loyal.
A simple formula for figuring out your employee attrition rate is dividing the number of full-time employees who have left per month (called “separations”) by the average number of employees, and then multiplying that figure by 100.
Attrition rate = (No. of separations / Avg. No. of employees) x 100
You can also calculate year-to-date and annual attrition rates by adding all 12 months together.
Tips to increase employee retention
Create a happy, productive, inclusive culture. Forget micromanagement. Modern employees expect nothing less than an inclusive, tech-savvy environment, where collaboration is encouraged, autonomy is allowed, and innovation is celebrated.
To achieve this, it’s important to focus on every aspect of the employee lifecycle – from attracting the right talent, and integrating them into the fiber of your organization, to nurturing their growth and giving them opportunities to advance within your organization – and ensuring that performance is well managed throughout.
Provide opportunities to advance. Employees need to know that they will have the opportunity to advance at your company. You can make this clear, and help them reach their aims by assisting them in drawing up a career map.It need not be a five- or 10-year plan but it should give employees the chance to focus on the skills they’d like to develop.
Developing a culture of continuous learning and giving your employees the opportunity to develop their careers through training is a valuable retention strategy, which can be achieved via microlearning.
Recognize and reward employees. It plays a vital role in employee retention and job satisfaction. A simple act of appreciation shows employees that they matter, and that their thoughts, ideas, input and work are valued. And, when people feel valued, they stay longer and perform better.
While the IT Firms are squabbling to retain employees, Tata remains a leader with the lowest attrition rate in the country. However, it is still quite high as per desired below 10% rate.
Image Source: Indianexpress.com
HR & Business Essentials
1000+ Editable Documents for HRs
HR Documents are vital to record all the transactions, activities, and events related to the organization. You need to have all the Important HR Documents to make sure that your business administration is smooth and the Internal Control System is strong.
Let’s face it, though important, the documentation process is not the most amazing experience of the job.
To overcome this monotonous problem, we have created a HR & Business Essentials Kit which includes HR Documents that has 1000+ important forms, templates and documents which will make HR / Business owners work a lot easier. All forms and templates are ready to edit, just download the template and edit according to your needs.
Key Features
- 200+ Ready to edit HR Forms
- 50+ HR editable letters
- 60+Editable Employee Policies
- Recruitment related templates
- Employee Performance Management Templates
- Employee Compensation Templates
- Appraisal Certificates
- Intern Related Templates
- 15+ ready to edit NOC’s (No Objection Certificates)
- Experience or Relieving Letters
- Editable Warning Notice
- Employee Settlement Templates
- Resignation Related Templates
- Employee Onboarding Templates
- And many more ready to use templates
Click here to get your HR & Business Essentials Kit today!