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Information about Attrition
Business & Mgmt

Published on February 20, 2014

Author: LizaDsouza1



A company is facing high attrition rate. The major concerns being motivation and attitude of the employees.
There might be no clear links between attitude and attrition, in this study we will try to assume some attitudes of employees that could lead to attrition in an organisation. And also discuss some motivational measures that could be used to reduce the attrition rate in the company.

Introduction The efficiency and success of an organization lies not only in the products or services it delivers, but in its resources. Organizations perform on the basis of the efficient use of their resources, which are available in both physical and financial. Resources are therefore directly related to organizational behavior, such as qualities, expertise, knowledge, ability of decision making & performing tasks assigned effectively. People within the organization hold a high value behind the successful operation of the company. This is the reason why it is very important for organizationsto takes special care to ensure the happiness and satisfaction of their employees with regard to their jobs, regardless of the importance the job holds in the organization. The people behind the scenes, operating and running the organization are the most valuable resource the company has to utilize. "Attrition rate in India is at 14 per cent, which is marginally higher than global and Asia Pacific countries (11.20 per cent and 13. 81 per cent, respectively)" –Economic Times. High turnover is related to employee dissatisfaction with the job. A few reasons for an organization to have a high attrition rate includes poor pay, working conditions, putting in long hours, not enough benefits provided by the organization or a negative atmosphere mostly due to strict authority figures. High attrition rates is economically costly to an organisation because it needs to spend more time and resources filling the post and training new employees. This cost can be about 30% of the positions annual salary.High turnover could lower employee morale and cause an increase in the number of people leaving because they see their colleagues doing the same thing. High turnover can also make the remaining employees more stressed out because they have to make up for the tasks and duties of the employee who left until a new employee is hired and trained.

Background A company is facing high attrition rate. The major concerns being motivation and attitude of the employees. There might be no clear links between attitude and attrition, in this study we will try to assume some attitudes of employees that could lead to attrition in an organisation. And also discuss some motivational measures that could be used to reduce the attrition rate in the company. Attrition Analysis Exit Interviews An Exit Interview is very essential while dealing with high attrition rate. The organisation should firstly conduct exit interview of employees before leaving the organisation as it will help the company to be sure about what factors influence an employees to leave their organisation. The questions asked in the Exit Interview could be with related to the motivation level of the employee. A question set could be prepared based on the following factors: Reasons for leaving the job. Factors in the organisation that satisfy the employee. Factors that lead to dissatisfaction of an employee. Would the employee recommend his friend to join the organisation The actions the company could take in order to prevent you from leaving the job. Questions with Yes/ No options or Rating from 1-5 Did our company compensate you fairly Did you enjoy the job responsibility assigned to you Was the position you were placed in compatible to your skill-set Did you need more training and development programs

Work conditions/ environment good enough Security in the job position Company policies satisfying? How did you gel with you superiors? How did you gel with your teammates? Were you ever discouraged? Measuring the attitude levels of an employee The attitude of the employees in the organisation can be judged using a combination of indirect and direct method of attitude measurement. The direct method of Thematic Appreciation Test could be used, in which a person is given a picture and told to tell a story about the picture, in this case the picture could be of a person leaving the company. Based on the response o story told by the employee about the picture we can judge what’s going on in the mind of the employee. To more accurately judge the results indirect methods like Likerts Scale should be used, as it will give us a quantitative figure to back our findings. Likerts Scale is a type of scale in which a statement about something is made and is then followed by a series of numbers which people can choose to show how much they agree with something. The scale could be ranging from 1-5 or 17. Judging the attitude levels of the employee. Through the exit interview we could get to know the behavior and attitude of the people toward the job. The ABC model can be used to classify the attitudes of the employees and also know from where the attitudes arise. The ABC Model has 3 components: Affective component The affective component refers to the emotional reaction one has toward an object. An attitude that is originated by an emotion is called an affectively-based attitude. Attitudes about issues

such as gender, politics, caste, religion are affectively-based, because they usually come from a person's values. This type of attitude is used to express and validate our moral belief or value systems. Behavioral Component Another constituent of an attitude is the behavioral component, it refers to the way one behaves when exposed to a particular object. Sometimes, people are unsure of their feelings about a particular topic. When an attitude is determined by observing a person’s behavior, it is called a behaviorally-based attitude. Cognitive Component It refers to the thoughts and beliefs one has about an attitude object.An attitude that is built through facts instead of emotions or observations of people’s behavior is a cognitively-based attitude. This may result in an emotion (such as frustration), the attitude may be based on your thoughts of the properties of the object. It is important to note that while judging the attitude levels of an employee it is not necessary that the above factors may influence the attitude of a person. It may be the combination of the above components. After classifying the attitudes in the above components we can formulate a way in which major attitude issues among superior-subordinate and colleagues in the organisation can be tackled. These issues in attitudes can be related with the reasons of the person leaving the organistaion so as to relate how attitude affects decisions in a person’s life Assessment of data- Motivation Tools The data of the questions asked or the questionnaire filled by the employees could be classified into 2 factor in relation with the Herzberg’s Motivation- Hygiene Theory. Herzberg’s theory divides the factors affecting the employees in 2 segments.

This could help us identify the core problem faced by the employees working in the organisation. It will also help us identify what the organisation is failing to provide to its employees. It would lead to the understanding whether workers are satisfied on the job, whether they are not satisfied or dissatisfied. Herzberg’s Model will identify whether the problems are concerned with the work environment or concerned with the work itself. The so called Hygiene factors can dissatisfy an employee by their absence but they cannot satisfy them with their presence. Here the organisation would have to improve on their work environment, the culture followed by the organisation, the security given to the employees, the pay etc. The motivators that Herzberg defined were factors that created highly motivating situations. People generally respond positively to these factors. Such as giving the employees recognition, achievements, possibility of growth. These factors if present in adequate amount bring satisfaction to the employees whereas if present in inadequate levels do not cause dissatisfaction but instead brings no change to the attitude of the employee. According to these results we could frame an appropriate training program to motivate the employees. Recommendations Absenteeism: on the basis of the absenteeism record of an employee, the H.R personnel could be alerted and could approach the employee or keep a record of the employee’s performance. If necessary training and counseling could be provided to the employee Job Satisfaction: a survey should be taken wherein the identity of the worker I not disclosed, this survey should be with a view to find out the satisfaction level of the employee.

Shareholders: the employees could be given stake in the company’s shares so as to increase the belongingness feeling of an employee. Safety: Safety is the most important factor that influences an employee. More than 70% of the employees see security and emotional comfort as the major source of motivation. Most employees seek long term contracts with the company, a sense of belongingness and good personal relations with colleagues Personnel development: this is a very crucial step as, if the reason for the employee leaving the organisation is not esteem needs the company may incur additional cost. Therefore only after studying the reasons for leaving the organisation this component can be implied. Top level management: the top level management should be trained to handle the problems faced by the employees, they should not ignore the grievances of the employees. Conclusion Every person is unique in his/her own way, therefore it is not possible to approach everyone in the same manner. Motivation techniques and attitudes of an employee may differ from person to person. Therefore developing the most suitable motivation tool is very time consuming. So also judging a person’s attitude accurately is not possible. In order to reduce attrition rate in the organisation Exit Interview is very essentially conducted. As it forms the basis of what the problem really is.

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