ATTRITION

ATTRITION

Attrition

is when the employees working in any organization leave their jobs and thus the size of the employees tends to shrink in number. This can be due to many reasons on account of which the employees eventually leave their jobs.

REASONS FOR ATTRITION

FACTOR: - If the employees would be offered a job in some other organisation at either a high wage amount or at piece rate, it is probable that they leave the organisation. This is because if they work at piece rate system, they can earn more if they work on a monthly wage basis.
MONEY
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REASONS FOR ATTRITION

FESTIVE SEASON: - 50% of the attrition is reported at the time of arrival of the festive seasons when the employees especially those who have immigrated from their hometowns leave their jobs to return to their homes for the celebration of these festivals. This problem also becomes evident at the time of other occasions such as marriages.
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CONTD

Some of the festivals when the employees in the export house are observed (by the HR department) leaving their jobs are: y y y y y y

EID DIWALI HOLI HARVESTING SEASON CHATT PUJA The workers also leave their jobs at the time of summer vacations of their children when they had planned to go to their villages.
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CONTD

Attrition

reported at the level of the middle and the top management people is on account of their dissatisfaction with their work especially when they feel that the work done by them is not fruitful enough to upgrade their skills or is not challenging. That is when they tend to loose interest in their jobs.

REPERCUSSIONS OF ATTRITION
Conducting fresh hires are required by the organisation to recruit and add more people in the organization in accordance to the manpower planning done previously by the HR and R&D department. This means additional costs in carrying the recruitment and selection procedure, induction procedures, further training costs and at the same time ensuring that they are able to adjust with the companys working environment, policies and most importantly with their coworkers.

The above procedure also demands and consumes time. Also the worker appointed now would take time in understanding and doing his job efficiently in accordance to the quality requirements. Thus the productivity and profitability are both impacted. The organisation also faces problems at times in retaining remaining employees. Besides retaining the employees working, the newer recruitment does not always ensure that a potential employee has been selected who can deliver good quality, would be able to maintain an amicable relationship with the co-workers and his employer..

This also does not ensure that the one who has been recruited would not leave the export house in future Apart from the above stated effects of attrition in the organization, the employees who have left their job leads to a reduced productivity and creates an imbalance for some time. During this tenure mentioned above, those left in the organisation have to work harder and at times for longer duration. This can further reduce the quality of output generated by them. This can further contribute to more attrition. Thus it is a vicious cycle.

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Additionally if any employee leaves his/her job it leads to zero productivity till the time any other person is not recruited at their place. Also there would be no productivity from that particular work station till the time the new person is undergoing training for the job or has not moved up the learning curve to yield an average quality. Another effect of attrition is that it can also lead to the leakage of information from one company to the other. This is more intense at the level of the management level.

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REMEDIES
The organisation through its welfare department in the HR has made provisions to offer medical insurance, social security to the workers through ESIC, PF etc. thereby ensuring medical assistance and future insurance to the employees respectively. In addition to these, the committees ensure to address and solve the grievances of the employees so that they dont feel discomfort and eventually leave their job.

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The incentives and additional benefits provided to the employees are made more employee-centered which focuses further into designing ways to bond employees to the company. The company through its Suggestion box takes feedback from its employees. These are reviewed and discussed with the HR department to iron out differences and bring out with possible remedies. This would help them believe that the company makes all possible attempts to solve their grievances and to ensure that they face no problem of any kind.

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Thus the company focuses on developing strong human skills with their employees to reduce any instance of friction with them. The company also attempts to know the family background as well as the surrounding of the applicants at the time of recruitment. Thus they try to ensure that only the right talent is inducted into the company. This also helps them reduce absenteeism as a person coming from an unhygienic environment is more likely to fall sick and thus not come to the company. Those found lacking in particular skills or competence are informed of the expectations from them and also they are supervised in between their work and required input of knowledge and assistance is given to them. 13

They are also put into training processes and additional working sessions are organized for them where they are worked for the enhancement of their skills. However, during these skills up-gradation programs, an attempt is made not to make them feel inferior to their co-worker or overstressed with work. Apart from this, the company follows a stringent system where no person working can use abusive language for their co-worker or for their subordinates and if found so they are suspended. This helps to reduce the rate of attrition as it reduces the prospects of the labor force to leave the company 14 on account of any misconduct of behavior shown towards them especially in the case of female workers.

There is a proper induction program where all the newly hired people are introduced with the company policies, the additional benefits which they would get, reward systems, payrolls and the facilities provided to them so that it does not prove to be a matter leading to dissatisfaction amongst them at a later stage Also, there is a transparent performance appraisal system to boost the confidence of the employee and motivate the others to perform better. This system of appreciation practiced by the export house also helps to reduce attrition to a large extent. The employees are free to interact or give their suggestions to their seniors which helps them to relate themselves with the organization so that they do not feel isolated in the company or as merely paid workers but 15 as an integral part of the organization.

POSSIBLE SUGGESTIONS TO FURTHER REDUCE ATTRITION

A feedback should also be conducted at the time when the employees leave their job apart from those conducted during their working tenure. For this purpose, they should be asked to fill up a questionnaire stating the reason of their leaving the job. A general discussion with the H.R. manager of the company can also be organized for the same
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However, for ensuring free and indiscriminate response of those filling the questionnaire or giving interviews, they should be assured that their responses would be kept confidential and would only be utilized for the benefit of the export house. The inputs and responses given by them can be secured. These if found to be relevant and appropriate should also be implemented at the same time. This is also important as the exit interviews helps the management to learn reasons why employees left the company and based on their revelations, the organization can address the problems of existing 17 employees, thereby curbing attrition.

CONTD
We also suggest that the company should make an attempt of not making the workers feel inferior to their co-workers or feel overburdened with work which can also lead them to leave the job. Every individual has higher aspirations and wants to realize them faster. Thus it is for companies to communicate to their employees that they can achieve their aspirations and goals faster if they continue to work with them. This can help them prolong the time their employees would spend with the company.

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ADVANTAGES OF ATTRITION
Because of attrition, there is a greater crossfertilization of people. This benefits the entire industry as it ensures increased exposure to the people and also gives them better opportunities to gain more skills Thus as it ensures a circulation of people with different skill levels and knowledge, thus the organization also becomes dynamic and not static with the old view of the people working in it. Also, people who are not desired in the organization themselves resign. Thus in this term attrition proves to be good for the organization

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CONCEPTUALISED BY:PROF. S.C.KAPOOR MADE BY:ANKIT ARORA 20 ABHISHEK SHAH NITASHA KAPOOR