Employee seperation means ending the employer-employee relationship between an employer and employee. Termination of employment can be initiated by any of the parties to a contract of employment. Lawful termination of employment under common law includes: * Termination of employment by agreement: When the employer and employee agree to bring a contract of employment to an end in accordance with an agreement. For example, if there is a contract for a period of one year and the agreed period expires then the contract will obviously come to an end. * Automatic Termination: A contract of employment may be terminated automatically in circumstances such as death or loss of business of the employer. * Termination of employment by the employee/Resignation: This happens when an employee due to material breach of the contract by the employer decides to resign from her employment. this is also called attrition. * Termination of employment by an employer: An employer may also terminate the employment of an employee but there is a need to comply with the provisions of the law and contract relating to termination. Attrition – A business perspective
Attrition is a phenomenon affecting any business organization in the industry. Over the past few years, organizations have taken an increased interest in aligning their HR practices to their business goals. What was originally seen as the time-keeping, records-maintaining department of the has today metamorphosed into the equivalent of a dynamic business consultant, providing strategic support. Managing a highly discerning, mobile and independent workforce has thrown up exciting challenges for the HR fraternity. Important questions on how well an organization integrates its people practices to its business objectives and the resultant pitfalls of a poor marriage of the two – are the focus of many research studies. Deficiencies like inability to influence employee perception of growth; not aligning employees to roles based on their individual talent, inflexibility in leadership styles, are causing conflicts at a very intrinsic level, resulting in knowledge employees choosing the proverbial “easy way out.” Employees thus attempt to change the manager or the work environment, resulting in employee attrition. Though the current environment in terms of Talent demand and supply, presents enough opportunities for people with relevant skill sets as also enough manpower for organizations to choose from, employee turnover without doubt, bleeds value out of any organization, both in terms of time and money. As such Employee Attrition is a major Organizational issue, which different Knowledge industries manage in varying ways.
Attrition is a dynamic that impacts business performance in more ways than the usually perceived Human Resource development angle. It is an issue which gives rise to questions like Organizational health, morale and motivation and leads up to very tangible aspects such as shareholder return and value. Attrition as a problem is also seen as the origin of further dialogues about Talent management and sourcing. Thus today, HR as a strategic partner in any organisation has lots to do in terms of metrics, HR analytics, prediction of trends and quantifying Human Capital measures.Since attrition is one of the main problems for any organisation struggling to retain its expertise and knowledge base, an analytical approach to the same would also help in prediction and necessary remedies.
Reason for Leaving:-
The reason are various behind leaving an organization & any attempt to find one comprehensive explanation for this phenomenon would be futile. Though the rising attrition within industries is a well-discussed topic but very few HR executives have been able to pinpoint the 'exact' reason for this growing trend. A recent Hewitt 'Attrition & Retention' survey shows one of the top...