Success Mantra for Low Attrition Rate

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 “Employees are the greatest assets of your business – clientele come second.”

There is a well-known fact that if you take good care of your employees, they will reproduce this feeling to your customers and clientele making your business stand out in the horde. A large number of reputed MNC’s like Facebook, Google, Microsoft, Amazon, TATA and all the other great establishments you can think of have one thing in common – they hire right talent and then retain them. Henceforth it makes sense to have some tactics in place to hire and keep your top talent.

What is attrition rate and how to calculate the attrition rate in your organization?

Employee attrition means the reduction of the workforce by voluntary (reduction through expected means like retirement, or it can be due to resignation, end of contract) and involuntary motives (when a business decides to make a position laid off, unsatisfactory performance poor culture fit, doing a terminable offence)

You can calculate the attrition rate by using the formula:

Attrition rate = [(Number of employees you have in a month)/ (Number of employees who left in a month)] * 100

Note: While calculating attrition rate includes employees who were on leave for that month. Do not include employees that are hired through agencies and contractors.

How to reduce employee attrition rate?

Put stress on hiring the correct fit

Keeping workforces starts by employing the correct candidates. You likely hire staffs who have correct abilities to match your open position. But then again, how well does your candidate fit in with your industry’s culture?

You must hire candidates whose personality fits for the job. You can ask candidates for mental and social interview questions to find out how they react in certain circumstances. Also, during recruitment, be sure to show applicants around your corporate and tell them about your office culture. Candidates will expectantly exclude themselves from joining if they don’t fit in. If staffs don’t fit in with your work atmosphere:

  • It is assured they won’t be happy
  • They won’t get along with their co-workers, and they’ll feel lonesome.
  • Won’t stay around long.
  • They’ll join some organization where their personality fits in.

Support new joiners through orientation and induction programs

The first few days at a new organization can be very overpowering. A new member of staff has to know and absorb how things work at a new place. They are getting familiarized with a new culture. Instead of leaving the candidate to figure their way around, HR must create an on-boarding plan for the first week at least to let employee sync into the new ambiance. An introduction program helps a new employee feel less like a stranger and more like a part of the association they have just joined.

The on-boarding plan can include

  • Brief of the workplace
  • Allocate a buddy
  • Introduction with the team that employee must be working with,
  • Brief about organization policies.

 Be flexible with your workforces.

When we talk about work flexibility, we link it with working from home. Flexibility at workplace also occurs when top managers permit staff members to carry their work with them as long as they have connectivity to the internet – be it at the cafe or while on a holiday. People feel endowed to produce better outputs when they’re given the independence to work according to the time and atmosphere in which they’re most creative. Flexibility pleas most to the newer generation employees – millennial.

Offer a competitive benchmarked packages

There is no doubt that pay is a significant factor when an employee is deciding among the offers, but the overall benefits offer letter includes, can also play a chief role.

As an employer, it is significant to offer a well-rounded remunerations package that targets the exact requirements of your candidates. A good way to measure what elements of a benefits package are vital to your candidates is to have a good conversation with your current employees to get a deeper thought for what they wish. If possible, use compensation management software to design your benefits package to line up with those requirements.

Rewards and recognition goes a long way

A yearly increment based on employee valuation is at times not enough to keep your team member inspired. Everyone loves a pat on the back time to time. There is a feeling of achievement when your work is cherished by your seniors and peers. Appreciations can be spread within the company with references in fortnightly or monthly news sheets. You can launch reward and recognition programs to appreciate an individual or a team. Good work when rewarded outcomes in more good work.

Happy workers will be loyal to the company. Announce small but profitable incentives to inspire a competitive attitude. Make the member feel that there is more to work than getting his monthly incomes.

Employee engagement

When you have capable staffs, you need to look out for the ways that you can benefit them to increase their skill set. Give your response, let them know what you feel about their work. Pay consideration, and let them feel that you are there to enhance their skill sets.  If you don’t get involved with them, they will get uninterested and bored and will think that they are not developing any skills within the company.

A great boss knows how to challenge their employees to achieve tasks that may seem difficult. Be the boss that can push employees out of their comfort zones and help them attain their goals.

Final Word

It is difficult to entirely prevent employee turnover. At times, it is just outside your control. Though, knowing why and how it occurs, and meeting the challenge of reducing attrition can help minimalize its results on your business.

Taking small steps will help you to go a long way in increasing the success and growth of an association.

Would you like to share any of the workforce retention plans that you have effectively used for your business or may be thinking of to implement in the future?

Copyright @ PayReview 2018. Evoque Advisory Private Limited is a company registered in India operating under brand name PayReview.