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Attrition Rate in IT & Steps to Reduce it

  1. Why Attrition Rate is more in IT- Sector & what are the steps taken to reduce it?
  2. Attrition: A reduction in the number of employees through retirement, resignation or death. Attrition rate: The rate of shrinkage in size or number. Introduction: In the best of worlds, employees would love their jobs, like their coworkers, work hard for their employers, get paid well for their work, have ample chances for the advancement, and the flexible schedules so they could attend to personal or family needs as and when necessary.
  3. But then there’s the real world. And in the real world, employees ,do leave, either because they want more money, hate their co workers, want a change or because their spouse gets a dream job in another state.So,what does all the turnover cost? And what employees are likely to have the highest turnover? Who is likely to stay the longest? Information Technology as an industry is very dynamic, lots of staunch competitors in the same field. IT as an industry is segmented into Global Consulting or Product Development companies. With the increased offshore projects hitting, a lot of technological companies are trying to acquire as many projects as possible. Lots of Projects coming to INDIA, due to cheap labour and professional excellence proved.
  4. If you compare the increasing demand for the IT professionals and the jobs that need to be offshore in India, there is a huge dissonance in the demand and the supply.Naturally,acquirrng talents become difficult in such a situation. Since the inflow of fresh talent is relatively less, the same professionals in the market keep moving from one companies to another.
  5. Lot of things attract such individuals as well as there are reason for attrition as follows: Salary hike Promotion Less onsite opportunities Brand Job satisfaction Facilities Working Environment Work Pressure.
  6.  Work culture and management-IT industry is known for its high pressure work atmosphere and long working hrs, which create high levels of stresss,employee and high attritions rates.  Transformation in lifestyles, identity and family  Lack of good leaders who can motivate and guide their team well-IT managers lack both the time and tools needed for assessing their team members and taking corrective action to improve their performance which is directly related to job satisfaction.  Increasing percentage of women employees-Most women leave their job either after marriage or because of long working hours, work stress and other social pressures.
  7. Attrition is higher because salary is dynamic… There is more demand and less supply so people are getting what they want. One sure way to prevent this is to provide excellent working condition and make the organization a people centric place. PDC-Product Development Companies(Most of the IT people in IT services would like to move PDC as the kind of work would be challenging & exciting) Some companies & their domain are exciting. Quality of the work Some companies are offering its employees the high end quality work. Most employees don’t leave but quit because they did not like their job, they quit because they did not like their boss.
  8. Steps to Reduce Attrition: 1) Focus on Exit-interviews Employers should not ask why are you leaving? rather they should ask when you start searching for a job? Getting an insight and inside scoop can really help. It gives information about internal problems, employee’s perceptions of the organization, underlying workplace issues and colleagues. 2) Let employees know that their opinions are valuable. Ask them to open up. Listen to employees ideas; never ridicule them. 3) Compliment and Thank your employees for their valuable contribution. Recognize and celebrate their success.
  9. 4) Setting up a feedback mechanism to maintain consistency in performance and high motivation levels. Offer performance feedback and praise good efforts and results. Criticize but Praise publicly. 5) Give them job security 6) Providing opportunities of learning by constantly upgrading the skills of employees 7) Paying attention to employees personal needs and participation 8) Gauging the needs of the employees through open communication and polls.
  10. 9) Communicate goals, roles and responsibilities so that people know what is expected from them and feel a part of crowd. 10)Keep employees informed about the happening in the company so that they will be confident about the future or not to look for better option. 11) Encourage humor & laughter in workplace to deal with stress which will ensure that the employees are happy which gets reflected in their services especially critical in voice based transaction.
  11. 12)Feeling valued by their managers or superior in the workplace is a key to high employee motivation and morale. 13)Not hiring employees who have a history of jumping from one job to other. Recognizing the contributions of achievers would also inspire others to try hard and put in their best. 14)Group cohesiveness also helps in copping with the attrition. Built teams and generate competition between them.
  12. 15)The attrition battle could be won by focusing on retention, making work a fun place, ongoing learning and treating applicants and employees in the same way as subordinate. 16)Infusing creativity in the ‘routine’ job and communicate the firm’s larger objectives and goals to each employee to achieve that objective. 17)It has been observed that attrition rate was lower when employees perceived their workplace as a ‘fun environment’ and viewed their jobs as enjoyable.
  13. 18) Monotony and stress have contributed to increased attrition rate. So keep changing the duties or position of employees after fixes period. 19) Induction program and Exit interview are very important. 20) Identify the key employees of the firm or categorize the employee according to need of the firm. It will help you to customize your retention program.
  14. 21)Your staff members must feel rewarded, recognizes and appreciated. Monetary rewards, bonuses and gifts make the thank you even more appreciated.Undersstanble raises tied to accomplishments and achievements help to retain staff. Offer an attractive, competitive, benefits package. 22)Select the right people in the first place through behaviour-based testing and competency screening.
  15. 23) Demonstrate respect for employees at all times. Treat the employees well & provide a dignity of job. 24)If a key employee resigns, it should be taken up on a priority basis and kept confidential as far as possible and the senior management should meet the employee to discuss his reason for leaving and evaluate if his issues bear merit and whether they can be resolved. 25)People want to enjoy their work. Make work fun.Engage,employ the special talents of each individual.
  16. So if we want to reduce attrition we can take the points mentioned above for the same and can do best from our end to reduce attrition rate in IT-Sector.