Reduction in workforce is a main cause of worry for every organization. It skews up management planning and other processes for the company. Also, prompts several hidden elements that cause and effect organization perniciously. Voluntary attrition can be described as departure of employees on its own. It happens because of employee’s personal or professional reasons. If voluntary attrition is on the rise in any company then it becomes one of the major pain points for company’s fall.
*As per the survey by Mercer in 2015 – it was found that 37% of all workers, regardless of their satisfaction level leave their organization. Older workers, who face several family and financial obligations are less likely to switch their jobs. Younger generations of workers, particularly Millennials, use ‘here and now’ work philosophy in their careers.
Here are some of the reasons:
Employees quit because of their managers
Primary reason for people to exit from the organization is not their monthly pay but their immediate bosses. Employees want to feel more valued and should be able to provide meaningful contribution to their company. They want opportunity to learn, grow and work for a manager who is encouraging and supporting. “The general perception is that employees leave because of compensation but it is not so. It is not the initial trigger. I agree that compensation needs to be fair and competitive but it stops at that as there are lot of other things (non-monetary) that act as a contributing factor. Apart from monetary benefits, their individual aspirations and goals matters to employees. What matters to them is – how they are able to work towards achieving their goals. And it is here, where their Managers play a very crucial role. A manager is a whole world for an employee. Their relations with managers have a huge impact on their lives. It is very important for companies to sensitize their managers. We in our company try to help managers to become more humane. They need to understand employees before they can extract work from them,” explained Ajay Bhatia, Global Head HR, Innodata at Delhi HR Conclave 2016.
Lack of Inspiration
Many of the workplaces today -lack inspiration. Absence of it makes the routine job work more mundane and dreary. Without ample inspiration it is difficult to motivate the staff and steer them towards better performance.
Sharat Bhattatiripad, Vice President, Programming, Fever 104 FM, also spoke at Delhi HR Conclave 2016 says “Young and creative people don’t want to work under anyone. They want to have their own setup- investing their time and money in it. What stops them from doing so is their personal obligations and financial instability. Many of them need to pay their EMI’s on time and other related compulsions. So, every day I enter into the office knowing this reality and I think of the ways of how to inspire employees. So that they stay in the organization for long and give best output.”
Dilip Karan Singh Rathore, Vice President HR, NIIT Limited, stresses on the need for good leaders and how they can lessen voluntary attrition in the company at Delhi HR Conclave 2016, “Attrition will happen for sure. It is undeniable, no matter what we do. Reasons can be many. Some of them can be identified and others cannot. But good leaders can help in reducing attrition. Currently we are breeding very poor quality culture. Crop that is coming of new leaders is not so good. I feel companies should have very strong leaders who are inspiring and can be followed by employees as role model.”
Non-existence of need based rewards and recognition
Every organization needs to understand– what can benefit their employees both at personal and professional level. Also, they need to identify their needs and goals, and design reward system accordingly. “You can never pay any person enough to lewd him/her to stay longer in the organization. I believe that there is always somebody in the market who is willing to pay you more than your current job role. But that should not stop you from doing the right thing. Employers need to give employees the choice of how they want to be recognized. For example – offering employees monetary award of worth Rs.25000 and letting them decide how they want to use it. If they want to give it to the charity, help them to give it to the charity. If anybody wants cash, give them cash. If one wants to invest on education or some course, aid them for that. If any employee wants to go on a holiday, arrange for that. Don’t ask where they want to spend that money. Efforts need to be made to make it personal. Need based reward system can be really helpful in reducing attrition,” says Amit Malik, Chief People Officer, Aviva India spoke at Delhi HR Conclave 2016.
*Source – Mercer - http://www.mercer.com/newsroom/mercer-2015-inside-employees-minds-research.html