Exit Interview – A Way Out to Attrition
Deepshikha Satija MBA, MPhil.)
Research Scholar, Singhania University
Under Guidance of:
Dr. Parul Khanna
Assoc. Prof. &Dean R&D
Institute of Management & Technology, Faridabad
Prof. Deepshikha Satija, MBA (HRM & IT) from M.D.University Rohtak of 1999-2001 batch. She is currently working as an Assistant Professor in Indira School of Business Studies, Pune, since last five years. Before she had worked in various capacities in corporate world for more than five years in NCR. Contact: 9764257416, email@example.com
Objective: To understand the Attrition problems the organizations are facing today & to realize the importance of Exit Interviews, which can be a preventive tool in the hands of Management to retain the Human Assets who are indispensible in todays dynamic business environment. Attrition is voluntary and involuntary terminations, deaths, and employee retirements that result in a reduction to the employer’s physical workforce. There are several HR policies that companies currently follow such as providing a better work life balance, performance based benefits, career development programs to retain the workforce and inspite of this people do leave organizations, thus there is a huge pressure on the HR, to come up with some innovative tools, ideas to retain its manpower.
Attrition management thus has become all the more important in the present business scenario where organizations always seem to be in scarcity of talent. Exit Interviews can be one of the handy tools, if effectively planned and implemented.
This paper aims at understanding the importance of attrition management in today’s workplace, with reference to Exit Interviews as an effective tool to manage Attrition.
It’s all about proactive, engagement of an employer and employee along various delicate fault lines that every organization is based on, fault lines that may at any point threaten to turn into major churn-quakes if not taken care of at proper time. We'll take a deeper look at these fault-lines and the reasons that trigger talent losses.
Keywords: Exit Interview, Positive and Negative Attrition, Retention, Strategy, Turnover.
Is attrition important in your organization?
Employee attrition costs 12 to 18 months’ salary for each leaving manager or professional, and 4 to 6 months' pay for each leaving clerical or hourly employee. According to a study done by a Research firm, about 30% of employees plan to change jobs in the next two years. The figures obviously can change according to the market dynamics. Although employee turnover can help organizations evolve and change, an American Management Association survey showed that four out of five CEOs view employee retention as a serious issue for organizational success. If managers know the real causes of attrition, managers can control attrition and retain employees. Each retained employee can save money and lead to better opportunities.
Benefits of Attrition
Attrition is not bad always if it happens in a controlled manner. Some attrition is always desirable and necessary for organizational growth and development. The only concern is how organizations differentiate “good attrition” from “bad attrition”. The term “healthy attrition” or “good attrition” signifies the importance of less productive employees voluntarily leaving the organization. This means if the ones who have left fall in the category of low performers, the attrition in considered being healthy.
Attrition rates are considered to be beneficial in some ways:
• If all employees stay in the same organization for a very long time, most of them will be at the top of their pay scale...