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Over
1 billion people & the largest
democracy in the world

Less
than a third in size of US- almost four
times the population

Largest
English speaking workforce after
USA…nearly 25% with higher secondary
education

Averageage: 26 yrs(China-36 years). 67%

people are below 35 years
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Add2m graduates and 460000 engineers
every year…1.5x China and 2x of US

World renowned higher education institutes ,

e.g. IITs, IIMs

GDP growth 2x of US and UK

1m IT Enabled Services (ITES) jobs and the

forecast is 2m by 2008

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“India is a democracy with a young & large
English speaking middle class, with strong
technical and mathematical aptitude and
good work ethic.”

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Attritionof HR can be defined as reduction in
the number of employees through retirement,
resignation or death

In other words, attrition can be defined as the
number of employees leaving the organization

"Why
our attrition rate is higher than other
company?".

The
company cannot afford to lose its best
employee to competitors.

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An ideal situation while working in a office :

Employer's goodwill in the market

Remuneration

Future growth

Working condition

Co-workers

Future stability with the organization

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HRteam conducts EXIT interview when an
employee left the job to get the information
about one's decision to leave an organization

Zero Attrition

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Causes of Attrition

Attrition Rates

Effects
of attrition on employees and
organization at large

Cost

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Advantages and disadvantages of attrition

Key to reduce attrition

Current scenario

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Adjustment with different cultures

Encountering new problems

Exposure to new challenges

Healthy competition

Low morale

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Brand Image

Customer relationship

Disruption in work

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Loss of knowledge capital

Delay in execution of projects

Loss of production

Increasing cost of recruitment

Burden burn-out on existing employees

Internal knowledge is being shared outside

Existing team may get defocused

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Attrition is a boon in
disguise…!!

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 Benefits

Removes bottle-neck

Creates space for the entry of new talents

Assists in evolving high performance teams

Infuses new blood into the organization

Enhances ability for execution

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 Benefits

New thoughts, ideas, and hence, more
innovation and creativity

Knowledge of best practices from across the

industry is brought in

Challenging status quo

lower cost with fresh skills and competencies

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Growth opportunities

Mismatch of job profile

Organizational culture

People “Quit their Boss”

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Job stress and work life imbalance

Working hours

Ethical issues

Lack of recognition

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Talent lost

Recruitment cost

Training cost

Motivational cost

Lost Productivity cost

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Attrition =
(No. of employees who left in the year /
average employees in the year)
x 100

Thus, if the company had 1,000 employees in

April 2004, 2,000 in March 2005, and 300 quit
in the year, then the average employee
strength is 1,500 and attrition is 100 x
(300/1500) = 20 percent

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Retention : Managing People

Employee retention is a process in which the

employees are encouraged to remain with
the organization for the maximum period of
time.

Employee retention is beneficial for the

organization as well as the employee.

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Keys to effective retention:
Compensation:

Salary

Bonus

LTA or Paid Holidays

Health Insurance

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Recognition:

Employee Evaluation

“Never punish harshly for mistakes but
always reward for good work”

Not only money but RESPECT matters

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Motivation:

Importance

Good work culture

Recreation facilities

Employee bonding

Second Home
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Fun @ Workplace:

Occasional Stress Relievers

Events

Picnics

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Growth opportunities:

Challenging projects

“ Be a leader and not follower ”

Creative and Competitive work culture

Training & Development

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Employee Empowerment:

Responsibilitiesshould match with authority

Participative Decision Making

Communication with top management

Encouraging suggestions and employee
engagement in the organization

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Transparent Work Culture:

Facilitates
accountability, trust,
communication & responsibility

Discourages work-politics

Healthy work environment = Satisfied
employees = Success of Organization

No communication errors

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Current Scenario:

Global Meltdown

Negative growth

GOOD NEWS FOR THE RECRUITERS:

“The Best Time to Recruit”
&

“Employees dare not feel to leave the
organization”

The attrition rates in single digit figures

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For IT Industry which had attrition rate
between 20-40 % is now below 20%.

HR Executives are now less concerned about
Attrition and they are planning Layoffs to
maintain profitability

Eventhe IIM Graduates are Experiencing
the Heat

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g{tÇ~ lÉâ

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