The challenge of finding, attracting, developing and retaining the right talent is taking up a major part of management and once the right talent is found the next demanding job is to retain that talent
Hence the following gains importance
Describe the scope, intensity and cost of attrition.
Determine the risk of attrition.
Identify the level and cost of turnover and benchmarking it against competitors
Number of employees who left in the year / average employees in the year x 100. Thus,
if the company had 1,000 employees in April 2006,
2,000 in March 2007, and 300 quit in the year,
then the average employee strength is 1,500 and
attrition is 100 x (300/1500) = 20 percent.
Method for Monthly attrition & Annualized attrition...
Monthly = Actual Attrition Numbers / average (open headcount & close headcount) *100
Yearly attrition % = Total attrition numbers of last 12 month / ( average headcount of last 12 month) *100
Different perspectives of Attrition
Recruiter is bothered about the following aspects since he is the person who carried out the process of “procureing”, “processing” and finally assigning the role by matching the person with the job
• Turnover rate
• Quality of hire
• Person – Job fit / Person – Organisation fit
• New hire failure rate
• Manager satisfaction
• Succession planning
• Salary expectation / market rate
Recruiting Head’s perspective
Weighted turnover rate
– employee performance
– Top level employees
Succession planning by department
Attrition by department
Headcount by department
Critical terminations and open positions list
Decline in productivity
Higher overtime – sign of attrition risk
Absenteeism – sign of attrition risk
Give away or take away ratio
List of hi-performing employees that are at risk of leaving
SHRM requires the HR department to its contribution to the business in order to play a role of strategic partner. Hence the HR department has the task of building a HR brand which can attract & retain talent which are key to success. • HR - strategic partner
• Cater to the future needs of the company with right people at right time • Drivers – Key resources
• Attrition -- Industry average, competitors
• Intangible assets are core competencies
• Qualified well trained people provide competitive advantage
Do we have the talent needed to succeed?
Vacancies v filled positions
Retention of Key employee is critical to the long term health and success of any business. Overall employee turnover
Performance turnover in key jobs (where performance turnover means that top performer turnover is “weighted” more heavily and bottom performer turnover more lightly than average worker turnover) Preventable turnover in key jobs (where a sample exit survey is used to identify the real reasons individuals left the organization and whether the turnover could have been reasonably prevented) Diversity turnover in professional, managerial, and technical positions
Retention has an often Unrecognised Impact on the Customer.
In commercial organizations the most severe costs can be those associated with poor customer service - lost sales, reduced loyalty and outright defections to competitors due to attrition. Guard against attrition which may trigger CUSTOMER CHURN
Percent of employees who voluntarily and involuntarily left the organization during the survey period. First Year of Service Turnover Rate
Percent of employees who voluntarily or involuntarily
left the organization during their first year of service.
Executive Voluntary Separation Rate
Percent of Executives that voluntarily left the organization during the survey Manager Voluntary Separation Rate
Percent of Managers that voluntarily left the organization during the survey period. Professional Voluntary Separation...
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