Let me first introduce you to the meaning of Attrition. Since many of you might have no idea what it means.
Definition of attrition rate: It refers to an employee or staff turnover. In other words, it is the calculation of a number of individuals that vacate a larger group over a specified period of time.
It is also known as the churn rate. Human Resource (HR) managers use it to determine the company’s ability to retain employees. One calculates it by dividing the number of employees who left the company during the year by an average number of employees the company employed during the year. I hope I made myself clear in defining the term. Therefore, now you are familiar with the meaning of attrition rate.
If I go by the definition of the attrition rate, the growing attrition rate is not a good sign for the company. If more and more employees move out of the company, it brings bad fame to the company. Companies prefer a low attrition rate.
Companies having high attrition rate signifies the company is not capable enough to maintain their employees. They are not able to retain their employees for several reasons. For example, the dissatisfaction of employees, no better salaries, no motivation, and the list can be endless.
Many organizations face similar problems. Early signs are the warnings. Some organizations understand the warning signals and work upon it. But some fail to understand.
This, in turn, makes them fail as a company. So keep your eyes and ears open and detect the warning signals.
I Vijeta Goel, is a founder of an organization. 2 years back I started a business plan with the support of my two colleagues. I opened my organization known as WordPower. The vision and mission of my company were to share information through words that are writing.
We are basically a content marketing company. One of my colleagues is a prolific writer. He writes tremendously well. Give him any topic whether it is food, fashion, education, etc. he will come up with an excellent piece of writing.
Initially, I had a small company. But with God’s grace, we soon expanded and became a known brand. Hard work pays off. In our case, it paid off well. Now we were a big company with a workforce of more than 200 people working for us. So we were planning to come up with our new branches.
As we grew, developed and became bigger, problems also grew bigger. Managing everything single-handedly was cumbersome. It was difficult and I was lacking on some front. Above all, soon I realized that employees have started leaving my company.
The attrition rate was high. It was an unexpected situation for me. Also, it was alarming at the same time. As a result, it was bringing a bad name to my company.
It made me tensed, confused and did not know how to manage it. The inability to discover the reasons was the problem. How to retain my employees as earlier times was troubling me day and night. How to bring back those golden days.
I had to find a solution. And I did. I controlled the growing attrition rate with my wisdom, confidence, and determination. It took some time but I was able to conquer the situation.
Here are the tips on how I did:
1. Hiring Process: Hiring process is the most crucial and important. If this goes right everything will follow right. I started hiring people. But this time I was being more choosy.
I looked for particular skills, soft skills that the job required. The employees were chosen after a lot of consideration of all the skills and work ethics.
2. Training Program: All the employees including the old and new were given training programs according to the skills required. Though it was a timely affair. I invested in such training programs. So that they have the required skills for the effective completion of the job.
We sent new employees for orientation programs. Since training programs keep employees and organization ahead of time.
3. New Responsibilities for Employees: Employees were evaluated on a regular basis. I gave greater responsibilities to the employees showing growth due to skill training in the organization.
After all, the enhanced capabilities through training program lead to the productivity of the organization. So we gave them tough challenges to work upon.
4. Flexible Rules: Also, the organizational rules were revised and were made flexible this time. I gave them liberties but not at the cost of work and productivity. As a result, they took good care of their personal life and this step worked for the employees.
5. Growth Plans: The growth plans were devised for each employee. How can an individual grow in his/her areas?
What does the organization require to make the employees capable of every challenge? If you think about employees success, they too think about organizational success.
6. Updates/Changes in the Organization: The HR department was responsible for keeping up with the latest trends, updates, and changes. We had asked them to update themselves on the best practices of the industry on every front.
7. Fun with employees: Every month recreational activities were introduced for the employees. It helped them to gel along with each other. Hence it was an opportunity for the organization to understand its employees well and their needs.
8. Timely Feedback: Communication channels were devised. Encouragement of timely feedback. As a result, it helped to notice the shortcomings early in the process and to work on it.
9. Employee appreciation: Employees were appreciated on a regular basis on their performance level. We revised payment according to their performances.
In conclusion, I made these changes or new rules to control the attrition rate in my organization. I was able to create and retain a talented, satisfied workforce.
The organization should take early signs seriously and should work towards lower attrition rates. The lower attrition rate means high employee satisfaction and happiness. That’s all that matters at the end!