Reaping
the Rewards
of
Employee Retention
In
this age of
globalization,
new and challenging
avenues have
emerged in terms
of opportunities,
professions
and interlinked
technologies.
Specialization
is not only
the need of
the day but
the only way
to survive!
In the magical
blend of men
material and
money, men have
begun to play
a very vital
and critical
role and for
some industries
the very concept
of business
continuity or
the assumption
to carry on
as a going concern
is being endangered
by the growing
rate of attrition.
More and more
companies are
now taking additional
steps to ensure
that they retain
their core management
in order to
overcome the
problem of attrition.
Gone are the
days when the
lower level
of employees
used to be in
awe of their
top bosses and
hardly used
to converse
with them. In
today's business
culture, interaction
within the organization
is given paramount
importance and
inter and intra
communication
channels are
specially designed
to keep both
formal as well
as informal
modes of communication
alive. Dissemination
of information
is always crucial
and often sensitive
issue to an
employee and
the mode and
manner of its
communication
is equally sensitive
to the employee.
Hence today,
organizations
take measures
of arranging
for informal
gatherings where
the top bosses
directly address
the employees,
make important
announcements
and publicly
recognize and
award good services
of employees.
Building good
relationships
is an investment
that is a must
for continued
support and
loyalty from
your key personnel.
The traditional
employer-employee
model has faded
away and it
has been replaced
by a model that
talks of partnership
with the organization.
Hence the birth
of esop has
proliferated.
Attrition is
the result of
many factors
that have been
brought forward
by e-commerce
and the introduction
of global markets.
Human resource
is an essential
ingredient in
the success
and building
up and survival
of huge business
houses having
a presence in
multiple countries
with multifarious
locations making
the structure
as complex as
can be. The
existence of
trading partners
and strategic
relationships
with vendors
and members
of the same
industry has
necessitated
building of
telecommunication
links to connect
people all over
the world. Just
as business
has grown and
multiplied,
so have opportunities
for educated
and ambitious
professionals
to spread their
wings in their
quest to soar
higher. In the
face of competition
it becomes extremely
difficult for
organizations
to match the
aspiration levels
of their key
personnel and
hence mobility
of people across
the industry
cannot be contained.
To control this
shortfall in
aspirations
organizations
come up with
lucrative schemes
to lure the
employees to
continue. Experts
in the human
resource department
devise new methods
of having constant
interaction
with key personnel
and trying to
gauge their
level of motivation
and work culture.
Different factors
motivate different
people differently.
So care to be
taken to see
that the personal
touch should
remain in the
evaluation of
individual and
realistic goals
to be set for
them according
to the benchmarked
standards. Thus
these goals
become achievable
and result in
personal development
together with
organizational
development
as both are
interdependent
on each other;
one cannot take
place without
the other. For
some people
monetary gains
are a motivating
factor, for
some personal
training and
advancement
are important,
for some others,
work and nature
of work and
the authority
to do it is
important. Organizations
strive to meet
expectation
levels to the
best possible
and through
that they aim
to control the
attrition rate.
In our information-driven,
networked economy,
companies build
their wealth
through a driving
focus on the
active accumulation
of “soft
assets”
such as patents,
processes, brands,
customer loyalty,
and employee
satisfaction.
Soft assets
are the currency
of the new economy
and they are
developed by
one method and
one method alone:
through the
creative minds
of a group of
highly talented
people. Attracting
and retaining
top talent is
a major concern
of most companies.
For these and
many other reasons,
the senior managers
of today's most
productive and
profitable companies
need to take
an active role
in developing
strategies to
retain their
top talent because
they cannot
create sustainable
value and wealth
for their respective
companies without
these people.
The role of
the human performance
technologist
in these circumstances
is to educate
and support
senior management
in structuring
and implementing
the programs
and processes
that keep valuable
people on the
job.
Attrition's
Costs: The costs
of unplanned
attrition can
be catastrophic
for a company's
well-being.
Most managers
are aware of
the disruptive
nature of the
loss of a valued
employee. However,
there are several
factors that
represent additional
costs of attrition
that often go
overlooked.
These include
the lost productivity
of a vacant
position and
subsequent recruiting
and training
costs for a
new employee,
as well as the
costs of lost
opportunities
with the company's
clients and
the lag time
in getting innovative
new products
and services
to market.
Retention's
Benefits: How
do companies
use good employee
retention practices
to improve their
business performance?
It's not just
through the
reduction of
attrition costs
that improved
business performance
is achieved.
There is an
intimate connection
between successful
employee retention
and greater
continuity of
productivity,
efficiency in
executing work
processes, effective
use of intellectual
capital, speed
to market, consistent
customer service,
and, most important,
increased customer
retention and
loyalty. For
example, Nortel
Networks®
of Toronto has
found a causal
link between
customer and
employee attitudes
about the company.
By improving
employee satisfaction
through streamlining
frustrating
work processes,
giving better
training on
customer needs,
and focusing
on management
development,
customer satisfaction
with the company
rose and, in
turn, financial
results improved.
Inevitably,
this connection
leads to both
short- and long-term
successes in
the marketplace.
Latest Trends
in Retaining
Top Talent:
Successful employee
retention requires
companies to
take a multi-factor
approach that
includes effective
organizational
systems (for
example, compensation
and benefits,
career movement
systems), managers'
behavior with
employees, and
managers' accountability
for their retention
(or attrition)
rates. However,
and unfortunately,
the scenario
in many organizations
is the same.
Someone who
is invested
in the business,
such as a senior
line manager
or human resources
professional,
raises the red
flag of attrition,
recognizing
its potentially
devastating
impact on the
company's strategic
position. Then
someone scrambles
to pull an initiative
together that
fails to respect
one or more
of the critical
factors that
are required
to reduce attrition.
The result is
that the organization
experiences
poor results
or no results
at all.
One more way
concerns the
manager's ability
to hire talent
who will stay
with the company,
not just recruit
talent for a
particular job
or project task.
Management practices
such as hiring
for cultural
fit and giving
realistic job
previews were
highly correlated
with employees
who stayed longer
at the company.
Management provides
the right tools
and training
to employees
to encourage
employees to
win and succeed
at work. Work
allocation is
done keeping
in mind employees'
strength to
perform. Nowadays
employers familiarize
themselves with
the learning
desires of the
employees and
plan to make
sure the employee
is learning
and growing
in areas of
interest as
well as future
needs of the
business.
One of the most
frequently cited
cause for attrition
is a failure
on the part
of the management
to undermine
good contribution
made by the
employee and
lack of recognition
for his work.
Management should
publicly recognize
and award good
performance
as it will motivate
employees and
create a sense
of belonging
towards the
organization.
Further job
assignments
should be so
made that will
ultimately promote
the career of
a person. For
this will ensure
that the more
committed employee
will stay longer.
A well formulated
group fully
aware of their
tasks and responsibilities
and who possess
a perfect understanding
of each other
and work as
a team towards
fulfillment
of common organizational
goal work as
a glue and would
stick to each
other. The extent
of attrition
would be much
lesser in such
a work environment
and this kind
of environment
should be promoted
by the management.
Emerging trends
in today's fast-changing
corporations
are pointing
urgently to
the needs that
business and
human performance
experts must
address: not
only survival
and security
needs, but also
the higher-level
needs for respect,
recognition,
achievement,
and life-long
learning. These
workplace motivators
and satisfiers
are potent determinants
of retention
or attrition.
By infusing
the manager
direct report
relationship
with high-impact
retention practices,
attrition can
be significantly
decreased. When
these managerial
behaviors are
utilized to
retain top talent,
the results
are rewarding.
Last but not
the least, money
is the best
motivator. The
first is a good
work-life balance,
and the second
is exciting
products and
work. These
higher-level
needs are enduring
aspects of human
nature, and
employers who
redesign jobs
accordingly
will realize
considerable
returns on their
investment.
In this fast-paced,
cutthroat, world
of work, performance
improvement
and bottom-line
performance
both depend
on retaining
the top talent.
Companies can't
take on the
work, collect
revenue, and
grow unless
there are people
in place to
do the work.
The maxim for
control of attrition
would be “Rise
to retain, reap
the reward”
(Author is a
HR Consultant
with People
Management specialization.
E-mail-pankajroy1@rediffmail.com)
