One of the major problems that every HR manager or a staffing services firm faces irrespective of the work sector and domain is employee attrition. Employee attrition can be simply defined as the reduction of staff by voluntary or involuntary reasons. These reasons can be rooted in many things like retirement, resignation, termination of the contract, or when a company closes a position.
Unfortunately, too many managers have tied all tourniquets around the wrong limbs, yet they’re wondering why their teams keep bleeding. Here are a few reasons that can be leading to attrition in your company. Knowing them can help you work around a solution.
- It can be an immediate manager. Many a time’s employees believe that their manager’s expectations are unclear. Or there may be a case when a manager provides inadequate equipment, materials, or resources. Sometimes employees also feel a lack of opportunities for progress and development. Watch out if that’s the case. Trouble is definitely on the way.
- Wrong fit to the job. Another sign of trouble appears when there is an aspiration and opportunity mismatch. Employees perceive that they do not get the right opportunities to do what they do best every day.
- Co-workers not committed to quality. Business is about teamwork. It may sound cliched but people are one of the key reasons why employees leave jobs. There might be a case in your organization where employees perceive that their co-workers are not committed to a high standard of work. And that affects their productivity and results as well.
- Pay and benefits not satisfactory. This issue is closely related to the above problem where pay and benefits become a big issue if employees feel that their co-workers aren’t committed to quality. They may feel entitled to extra compensation because their peer is getting the same pay for not working as hard.
- Connection to the organization’s purpose. Another key sign that attrition may be looming appears when employees don’t feel connected and driven by the organization’s mission or purpose or its leadership.
- Lack of training. Lack of training and growth opportunities may trigger dissatisfaction among employees and influence them to look for greener pastures. Learning and growth go hand in hand. It is often a good idea to make employees undergo well-designed training sessions with real-time instructors and online courses. Staffing firms may offer these services easily.
Irrespective of the reason, attrition results in draining of top talent in the company and hurts the bottom line because the cost of employee attrition is very high. It is estimated that replacing an employee costs a business one-half to five times that employee’s annual salary. A lot of effort, time and energy are invested in getting the employee on board, training, integration and communicating the values, culture, and nuances of the company.
It obviously does not make business sense to invest in recruiting and training employees only to have them stay for a short period of time. As a responsible HR professional, you have to focus on getting a return on your investment.
How can companies reduce attrition?
Companies have to shift from the traditional performance management approach to performance development approach. To retain top talent, managers should be trained to handle employees and make the job more interesting and rewarding. Skill building programmes, regular feedback, and appreciation from various levels of management can help employees stay engaged and motivated.
This shift requires managers to become a coach, not a boss. They need to create an ongoing dialogue about performance with the employee. The dialogue should be individualized to the needs and unique talents of each employee. To master this new approach, managers must take ownership of their employees’ development and growth in the company.
They can start by setting clear expectations aligned with the organization’s goals. Thanks to technology disruption and cost pressures, workplace priorities are changing very rapidly. An organization should make sure that the employees do not get confused with conflicting priorities and shifting goals. Even the best managers have frequent collaborative dialogues with employees to clarify performance needs and define a path forward together. This helps the manager and employee stay aligned with each other, with the team and with the organization.
But there’s a fine line between frequent dialogue and micromanagement. Managers should know how to walk this thin line. Conversations should be about areas that inspire and energize employees for the future and not about breathing down their necks and constantly checking on their work.
And last but not the least; managers should create accountability that is fair and accurate, as well as developmental and achievement-oriented. While it is extremely essential to hold employees accountable for their work, how you do that needs to be seen. An effective approach would be to use proper metrics and evaluation processes to evaluate and recognize work. An effective review is the one that focusses not just on ratings, pay and promotions but also development goals.
Can a staffing Services Company help?
There is no harm in finding out if you need an IT staffing services partner to solve the problem of attrition in your company. Competitive strategies, innovative ideas, and seamless execution are key to control the growing employee attrition rate. Taking the help of a reputed employment company can help you achieve your objectives faster.
Remember, even experienced and seasoned employees require recognition, support, training, and guidance to learn diverse modern skills. And its employment agency is an expert in delivering these because it is their core competency.