Hiring the employees is just the start to create a strong workforce. The main concern is to retain those employees whom you have selected after a rigorous process of recruitment. We have cited some alarming numbers for you to understand how important & crucial it is to retain your employees. As per a survey report, nearly 40% of the workers plan to look for a new job within next six months of their joining, whereas 69% of employees are already passively looking. In this competitive working environment and changing economy, companies invest so much time and money in hiring & training their employees. So losing that employee will cost the same amount of time & money which one can save by retaining the employees.
Most of the big Indian IT companies have reported that the hiring of top companies like TCS, Wipro, Infosys, HCL, etc was at 13,100 down 12% on a year-on-year comparison. As we know, attrition is the serious concern for the many companies especially for analytics & data science industry where the average employee attrition stands for 24.4% annually.
Almost every sector in India is dealing with high rates of attrition which is either due to compensation reason or due to better growth opportunities. Even the big brands are also facing the high retention rates problem with 25% to 30% every year. So before we share few tips on retaining your employees let’s have a look on the industries dealing with highest attrition rate in India.
Seeking a spike in your company’s turnover will cause a spike in your blood. No one wants their businesses to get revolve around the door. That’s why there is the latest insight into the sectors, industries, and jobs which are seeing to be at the highest level of turnover. The sectors which are viewed as the most talent turnover are:
Industries Turnover Rate
Tech companies have the highest turnover over in 2017 with the rate of 13.2%. Within technology industry, computer games (15.5%), Internet (14.9%), and computer software companies (13.3%) carries turnover the most. This reflects how critical it is to retain the tech talent which is eager to jump on the next opportunity in market with competitive offer.
Retail industry follows Tech industry in turnover closely behind at 13.0%. Within retail restaurants (17.2%), retail (16.2%), and supermarkets (15.4%) industries are leading the way. It is one of those industries which traditionally sees high turnover and it is getting more affected by the rise of online. As per the reports only 35% of people who leave the job in retail stay in the same sector.
Following Technology & retail, media industries have a turnover of 11.4%.with newspapers (13.3%), online media (13.2%), and sports (13.2%) leading the way. Reports claim that most of the people in media and entertainment sector leave their job because of its extraordinarily project-focused factor.
According to the U.S. Bureau of Labor, the turnover can cost the employee over 33% of employee's total compensation which includes employees’ wages and their benefits. However, the impact is not only financial but also adversely affects the morale. For obvious reasons, it is important for an organization to reduce the turnover rates. However, in order to reduce the turnover rates for any organization, firstly it is important to understand the reasons for attrition. The answer to the big question why employees leave their job is here.
It has been studied in past, that everyday indignities have an adverse effect on the productivity and results in employees job quitting. Rudeness, assigning blame, back-biting, etc. are some of the reasons that aggravate employees turnover.
Increasing economic pressure, organizations demands the employee to do work of two or more person. This is especially a true fact that, when an organization downsizes, it results in long hours and weekend work. Hence, employees are forced to choose either a personal life or professional life.
It has become a common practice in every job to significantly vary from the initial description what was promised at the time of interview to the employee. When this happens, it leads to mistrust and eventually forcing employees to quit.
Organizations should never hire the employees unless they do not fit in the criteria & qualification for the job. Employee misalignment will result in unhappiness of employer & the employee with the difference in expectation & delivered result. Usually, it ends badly.
Reasons for Attrition
Everyone wants to be recognized and rewarded when they have done a good job. It is the part of human nature. Lack of proper recognition & appreciation for the work result in employee dissatisfaction.
Good managers have knowledge how to help their employees in improving their performance by giving feedback consistently and motivating their employees. Giving and getting honest feedback is important for growth and building of successful team.
Over the years, it is studied that money isn’t usually the primary reason for any employee to leave the organization, but it does rank high when an employee can find a job where they can earn 20 to 30 % more. Raises and promotions play a very important part in employee retention.
If an employee feels trapped in dead-end positions, a lot of good talent can be lost. Most successful organization finds ways to help employees developing new skills and talent and grow for their current position for future advancement.
After understanding the various factors responsible for high attrition rate, one need to analyse the factors responsible for the attrition in their organization and have to work on them.
To ease your trouble of retaining the valuable employees, here are few tips & guidelines to do the same.
There are few key factors that can inspire employees to stay at their job as:-
You must always show your employees that you trust them by giving them a responsibility which allows them to grow and also encourage them to gain new skills and talent. You should also provide ample continuous learning opportunities.
Every employee wants to know that they are respected and appreciated for their performance. People may forget the things that happen, but they might always remember the way you made them feel. Therefore, always make sure that your employees are respected and appreciated at their job.
Tips to Retain Employees
Tie a part of your employee’s wages to the performance of the company. This will align their interests with the revenue, profit, and goals of the company and will serve as inherent incentive to stay with the company it grows.
You must be generous with the time off. Despite the hard economy, you must provide sufficient time for sick days, family vacations, etc. Pacing workflow can be beneficial to endure the relationship with the employees.
Money is certainly not the only but definitely one of the biggest motivating factors for every employee. Therefore employees should be well compensated to keep them away from looking better alternatives. Apart from regular salaries, an organization should devise a formula of rewarding monetarily.
Hope applying these practices in your organization and working on the reasons behind your company’s high attrition rate will help you in building long, loyal & trustworthy relationship with your employees.