One in two Indian employees is looking to leave their current job according to a recent study. Employee attrition has been a consistent concern as past trends indicate. A 2012 Mercer study also had more than half of employees actively considering quitting their jobs. The study also highlighted that as compared to older employees, a higher percentage of Millennials were looking to leave their current jobs. Evidence also links such intentions with actual turnover rates.
As per 2018 Statista figures, the turnover rate was as high as 18% across different industries including retail, banking, insurance, IT and finance.
An SHRM study showed that employers have to spend a sum equal to nine months of the ex-employee’s salary to find a suitable replacement. The cost of replacing a highly trained executive in a senior role could be much higher.
Ways to curb attrition
Recruiting: Many times, the recruiting process is flawed or unstructured and fails to capture the critical skills of a candidate. If your company is experiencing a high attrition rate, it is worthwhile to examine your recruitment process, particularly when the employee leaves within months of hiring. Evaluating if the job description, desired profile and skills are aligned with the company objectives and the candidate’s career expectations is the first step to addressing the turnover.
Background verification: The most critical aspect of hiring is the background verification process. Background verification can reveal the employment history and credibility of the candidate besides checking if all the information provided in the resume is true. A comprehensive background verification carried out by a trusted background screening provider can conduct in-depth reference checks, education background checks, identity checks, criminal record checks and past behaviour at the workplace. Such pre-employment screening can be valuable in making the right hiring decisions.
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Define the career path: A Forbes article stresses the importance of clarifying the growth and career path within the company and refraining from “window dressing” the job opportunity. Employees need to own their career paths and clearly understand what they need to do to achieve their goals.
Onboarding: A whitepaper by Dr Frederick P. Morgeson highlights the critical importance of onboarding in strengthening the relationship between new hires and employers. Human resource professionals or managers need to hand hold for the first thirty days to ensure the employee gains confidence in the new role.
Learning and training: Training programs help employees feel the company is invested in their professional development and personal well-being. Offer relevant training programs to facilitate and encourage a learning culture within the company.
Engagement: Employee engagement is key to retaining the right talent. Studies show 54% of disengaged employees plan to leave the company as opposed to 31% of engaged employees.
One way to enhance engagement levels is to invest in the workplace atmosphere. Creating a healthy, pleasant and happy atmosphere at work can go a long way in boosting the morale and enhancing the productivity of employees. Health and well-being are the most critical aspects that can affect productivity as well. Designing well-being programs and offering incentives for achieving health targets are some of the popular ways to boost engagement levels. The Gensler’s Workplace Index study shows that the workplace should feature exclusive spaces for collaborating, socializing, learning and for focused activities.
An effective reward and recognition policy can also help retain the right talent. Perks, bonuses and praise delivered formally or informally can all help make the employee feel valued and appreciated.