Employee Attrition: Attention can Help in Retention

In Depth

Employee Attrition: Attention can Help in Retention

Vivek Das | December 2021

With markets opening, thankfully, businesses have something to rejoice. But, unfortunately, while this is a great sign, It has always been a pertinent issue for years, and I see it becoming more acute in years to come.

During Covid-19, as several businesses were badly hit, many organizations had stopped hiring for obvious financial reasons, and attrition was at an all-time low for organizations in India. However, now that the economy is showing signs of recovery and organizations are gearing up to increase business activities, they are again facing the challenge of retaining employees.

According to recent reports, it is estimated that more than 15% of employees would prefer to explore opportunities outside their organization as soon as the pandemic subsides. It is further predicted that voluntary resignations will increase in 2021, improving the job market scenario. This will once again lead to the same supply and demand issue (we had before the pandemic) with less labour participation and more job openings.

According to experts, besides the specific career-oriented contributing factors like wanting a promotion or raise; the significant contributors for this attrition are:

Disengagement: As the pandemic continues, more and more employees feel disconnected from their organization and sense that the culture is diminishing. Through the pandemic, as the company leaders were knee-deep dealing with business issues, the organizations (not all) have failed to focus on employee engagement centering on work/life balance, transparent policies, and structures for recognition and growth.

Burnout: As remote working became a permanent fixture of our daily lives, employees – women, married with kids, and millennials, all reported higher burnout levels. Although remote work did allow flexibility, it never translated into better work/life balance. Worried about their manager – doubting their productivity, they stretched for long hours leading to burnout. With the labor market being healthier, moving out for better prospects will be an obvious choice.

New Opportunities: to work remotely and relocate to a more desirable place to live is another reason people are looking to make a job switch in the wake of the pandemic.

Health Reasons: With increasing health issues owing to Covid-19, care-giving for high-risk family members, to the feeling of exposure to the virus and health risk, early retirements have also gone high.

HIRING CONUNDRUM

Retention is a challenge, but hiring is equally tough with resources falling short of skills (considering they have been out of work) and further deciding on factors like where to work rather than just the salary on offer.

They are now inclined to learn more about the work environment, flexibility in working arrangements, transparent policies, career growth progressions, opportunities for learning and development with the organization, its proximity from home, client exposures, etc.

WHAT CAN EMPLOYERS DO?

While many organizations understanding these challenges have responded well; however, for those who haven’t, it is an excellent opportunity to present themselves as forward-thinking employers of choice by embracing change to win the highly skilled and productive employees. Thinking deeply, I feel organizations can do a lot to help their cause, starting with;

Engaging the top performers – constantly making them feel valued, pushing them to take required breaks to reduce burnouts, discussing their career progressions.
Involving employees in shaping the organization’s direction – Crisis always presents an opportunity to include employees and seek their input and feedback for significant policy changes. This gesture of being considered a part of the organization helps create more trust and bond, enhance better relations, and reduce attrition.
Keeping a transparent reward and career structure – Training Managers for recognizing contributing employees, helping them understand their career prospects, and effectively rewarding their contributions will go a long way for the strategic and financial success of the organization.
Supportive Environment – companies can create a supportive and healthy environment by conducting employee surveys, encouraging open-door exchanges, and providing mentorship opportunities.
Conducting external stay interviews – by third parties helps to understand the turnover risks. In addition, engaging them in such discussions yield better results as the employee responses tend to be more authentic, highlighting the fundamental factors.

To conclude, as the pandemic becomes weaker, companies will have to look at workforce planning differently and dovetail their business strategy to identify the talent, skills, and roles necessary for organizational growth. Identifying and cultivating new skills through upskilling, reskilling, and hiring practices will be key for a successful workforce strategy.

About Author

Vivek Das

Vivek is Founder of Pro-Consulting Solutions and has over 16 years of experience, specializing in Strategic Communications and Client Outreach; servicing some of the best brands in the Legal Sector. He has worked closely with the senior leadership, partners and practice groups of leading Indian law firms, assisting them on areas pertaining to branding & market visibility, internal communications, business development & network management, talent management and strategic growth.