“Assessment Pulse from the
Careersindia team brings to you
the happenings in the
assessment space which are of
high relevance."
Assessment Pulse from the Careersindia team brings to you
the happenings in the assessment space which are of high
relevance. We welcome your feedback and are ready to
incorporate need-based changes in the content, format and
frequency. Happy reading.
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Employee Retention – Cover Story
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HR – Industry Research Initiative
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New Product Release – Exit Pulse
ERM – A Systematic and an Analytical Approach
In an age of highly competitive talent engagement, more and
more companies appreciate that their most precious asset is the
existing talent base. This evolution has resulted in an increase in
attention to employee retention management. The financial
value of employee retention is widely accepted.
"Employee attrition could eat up
to 40% of an organization's
profits
.“
‘According to a research by Accenture, on an average, employee attrition costs
companies 18 months' salary for each manager or professional who leaves, and 6
months' pay for each hourly employee who leaves. Attrition has surged by more
than 25% over the past five years, and unemployment and joblessness rates
remain quite low.
… Tekara Organizational Effectiveness Inc.
With recruitment becoming more complex and users becoming more
sophisticated, the need for periodic checks on attrition is growing. Many
international companies have
structured third party support
and have found
them to be a significant revenue generator. Because of such support,
organisations are retaining the highly skilled, motivated, able to learn and willing
employees to lead their companies in providing world-class service.
According to experts, the cost of
attrition is 1.5 times the annual
salary.
With attrition rates ranging
between 30-60 % in the BPO
industry, HR specialists feel that
a
scientific and analytical
approach
should be
implemented.
Attrition in voice processes is
higher that the non voice
processes.
"The NASSCOM ITES-BPO forum has identified HR as one of
the key challenges of the industry. To arrest a steady
increase in attrition rates, companies can look into various
options like good rewards, bonding programs, flexible
working hours and stronger career paths.
The tremendous turnover rate is undeniably one of the main
problems faced by the industry globally. Pay cheques alone are not enough to
retain employees. Management also needs to consider other aspects like secure
career, benefits, perks and communication.
The attrition battle could be won by focusing on retention, making work a
fun place, having education and ongoing learning for the workforce and treating
applicants and employees in the same way as one treats customers. Over the
past several years, recruitment has been a pressure zone in most service
organisations. For many BPO companies – HR cost is what differentiates them
from the competition."
Attrition news in the recent
past
...staff attrition, rather than
pricing pressure, is …
biggest
challenge
this year.
Computer Business
Review, UK - Sept 20th 2006
…
the (engineering) industry
is
facing an average attrition rate of
25 per cent now, compared to
five per cent about five years ago.
Business Standard, India -
Sept 21st 2006
...After
information technology
(IT), the
pharmaceuticals
industry i
s grappling with the
highest level of attrition. The fast
growing knowledge-based sector
suffers an
annual attrition rate
of 30 to 35
Business Standard, India –
Aug 20th 2006
..In India, the average attrition
rate in the BPO sector is
approximately
30-35 percent….
BPO India.org
“Retaining human resource, especially on whom much has
been spent to hone their skills, is a headache for not only IT
companies but also other firms. Job satisfaction is something
that varies from individual to individual.
Job satisfaction and employee loyalty are better in
companies that allow their staff the freedom to unleash their
creativity and never fail to appreciate a job well done. Too much of interference
and bossing stifles growth and creativity. Finding themselves baulked at every
turn, the motivation levels of employees plunges and they look for the exit. An
atmosphere of distrust too could lead to employee attrition. It would also not be
wholly correct to surmise that long hours of work are a disincentive, as in most
sectors, including IT and call centres, those who sign up know what they are in
for.
It is in the institution's interest to provide a congenial atmosphere and take
initiatives that would keep the workforce morale high. Contentment and job
satisfaction certainly matter more than fat pay packets and perquisites though
with the usual exceptions."
…The HINDU Business Line 2006
Some of the rewards of Successful ERM
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Reduces the need for seeking new and potentially risky employees.
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Enhances the company’s focus on its performers through effective
engagement measures.
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Creates a pool of loyal, trained and productive employees
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Induces positive word-of-mouth new employee referrals
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Reduces Recruitment effort which is significantly more expensive and time
consuming than initiating employee retention methods.
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Helps reduce ‘Early bucket attrition’ by identifying performers
After implementing ERM, attrition will no longer be viewed
as a loss but rather as an opportunity cost due to reduced
productivity and also due to an increased need for
attracting new employees as replacements.
HR – Industry Research Initiative
National HRD Network, Chennai Chapter along with
Careersindia as its Knowledge Partner is currently undertaking a
nation wide attrition survey. The study is designed to collate and
analyze the HR community’s perception on attrition, to identify and
understand causative factors for attrition and also get insights into
the current practices being deployed by HR professionals to combat
and manage attrition effectively.
If your organisation is interested in taking part in the current survey
click here...
“Exit Pulse – an online
assessment service that collates
and analyzes reasons for
employee attrition."
Careersindia New Product Releases
ExitPulse
: As an extension to our pre employment assessment
process, the Research team at Careersindia has developed Exit
Pulse - An online assessment service to support its client
understanding of the causes and trends of attrition within the
organization which can lead to the formulation of effective
strategies to manage attrition.
Features:
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Online with continuous monitoring capability
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Monthly / Quarterly reporting
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Automatic Report Generation
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Industry-wide trends and benchmarking
Careersindia Pvt. Ltd.
Phone
:
Chennai - 044 28260337
Mumbai – 022 56267844
Delhi – 011 41600856
Bangalore - 098441 59952
E-mail:
response@careersindia.com
Website
:
www.careersindia.com
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