In the current scenario, major challenge for an organization is to create new strategies to retain its valuable, experienced and talented employees. The management can control employees quitting within no time, but can’t put a complete full stop to it. India became a hub for IT services from the last decade, where knowledge oriented population getting increased. On the other side opportunities for fine talent with experience is also rising. Employees have more options within & outside the country. They expect good working Environment, challenging projects, perks and a decent package, & support for their higher studies from the employer. Because of this it’s becoming a nightmare for the employers to retain the experienced / talent employees. This study focus on, Analyzing the attrition rate, it’s effect on the IT sector, Role of the HR manager, Challenges, how they are managing to retain the talented employees, a few suggestions to create new strategy to retain a talented employee.
Key words: Attrition, retention strategies & challenges, suggestion to face challenges
Research says that most of the employees leave an organization out of frustration and constant friction with their superiors or other team members, not able to adjust with company culture. In some cases low salary, Stress, lack of growth prospects and motivation compel an employee to look for a change. The management must try its level best to retain those employees who are really important for the company and are known to be effective contributors. It is the responsibility of the HR managers & the management to ensure that the employees are satisfied with their roles and responsibilities and the offering them a new challenge and learning every day.
Refers to the ability of an organization to retain its employees. Employee retention can be represented by a simple statistic (for example, a retention rate of 80% usually indicates that an organisation kept 80% of its employees in a given period). However, many consider employee retention as relating to the efforts by which employers attempt to retain employees in their workforce Employee retention is one of the primary measure of the organization..
Definition of Retention Management
The workforce planning for Wisconsin State Government (2005) defines retention management as “a systematic effort by employers to create and foster an environment that encourages current employees to remain at the same employer having policies and practices in place that address their diverse needs”.
This is not an exhaustive list, one can add or delete any of the below mentioned strategies. Secondly, the need of the hour is to have "right basics". Every individual is different, his needs are different, and his emotions, his problems are different. So, dear HR-Professionals…sit down and concentrate on your basics. I have classified retention strategies into two parts: Main and Ancillary.
Main retention strategies
•Communications - Getting Your People to Care
•Set Clear Expectations
•Reduce entitlements and link as many rewards as possible to performance •Increase the longevity of your reward
Ancillary Retention Strategies
•The quality of the supervision of an employee
•The ability of the employee to speak his or her mind freely within the organization is another key factor in employee retention. •Talent and skill utilization
•The perception of fairness and equitable treatment is important in employee retention.
The procedure of Retention Management
i.Identification of the target and actual needs of the staff ii.Analysis of the fluctuation risk of the staff