Feature

Combating high attrition

Alarm bells are ringing loudly in corporate corridors as attrition rates in IT organisations average 22 percent as per a study conducted by the Indian Institute of Technology, Bombay (IIT-B) with a sample of 1,028 IT companies in the country. Another survey done by People—a Gartner group company specialising in the management of human capital in IT organisations—has observed that the average tenure of an IT professional is less than three years.

Below the surface

Being a people-intensive industry, it is characterised by knowledge workers who are professionals. The HR issues here are quite different from those in other people-intensive industries. We therefore need to understand them in the context of various forces affecting the industry both directly and indirectly. Going by the opinions of industry analysts, as well as exit interviews conducted by different companies, IT professionals are switching jobs for either money, career satisfaction or the opportunity to work with newer technologies. However, when attrition is dealt with microscopically, other reasons surface. Says Dr Nandkishore Rathi, placement officer of IIT-B, “After doing the survey, we found that the lack of match between personal requirements and organisational culture was quite prevalent.” Along with the three main reasons mentioned earlier, an employee may be concerned about the environment in the organisation, his compatibility with his supervisors, the attention paid to him, and so on.

Money is not everything

Although the importance of higher packages is slowly diminishing, among freshers or laterals with less than three years of work experience, money is still considered to be the highest priority. Observes Rakesh Tiku, vice-president, deliveries, Infinite Computer Solutions, “With the overall package, the demand for performance-based salaries is going up. Employees want not only work recognition, but also extra perks.”

A number of IT professionals are looking at more challenging jobs, exposure to newer technologies, expansion of their domain capability, and movement from offshore to onsite. Adds V Bharathwaj, vice-president, global marketing, 24/7 Customer, “In several cases, faced with a choice between more money and a challenging job, employees have opted for the latter as it allows them to learn new technology and increase domain expertise.” People analyse the training programmes of prospective companies with those of their current organisation, which means that how an organisation grooms an employee is weighed to a greater extent. This is because they know that developing next-level skills will keep them ahead in the job market, and finally result in better compensation. They also look for a job with higher levels of responsibility.

Hence, the reason for an employee leaving a company could be nothing other than his growth—both vertical and horizontal. If companies take proper steps and adopt methods to serve their employees’ needs, the challenge of managing attrition will remain low.

Treat employees like customers

Companies should have a similar approach to employees and customers. A company should strive to retain an employee in the same way it tries to retain a customer Bijay Sahoo Vice-president Talent Engagement & Development Wipro Technologies	Some employees prefer development to being in a support and maintenance job. To hold back these people, we give first preference to training them Rakesh Tiku Vice-president Deliveries Infinite Computer Solutions

Even while companies strive to understand which organisational, job, and reward factors will contribute to holding back employees, industry experts have found several loopholes at the top management and HR management level. Says Bijay Sahoo, vice-president, talent engagement and development, Wipro Technologies, “Companies should have a similar approach to employees and customers. If a company strives to retain an employee in the same way it tries to retain a customer, him leaving the organisation could be out of question.”

Since software professionals have different priorities at different points of time, organisations need to structure their offer-mix while recruiting new hires, as well as promoting potential ones. Communication is the foundation for the entire process of managing attrition. This communication begins right from recruitment. In cases of peer pressure, an employee aims to join a well-known company. This could be achieved by brand building, which attracts the right talent and helps in retention as well.

The next level of communication, a crucial part of retention, starts with acquainting employees with the company’s vision and objectives. As Rathi puts it, organisations successful in retaining employees clearly pass on their goals and achievements. Adds Rajeev Malik, director, HR, McAfee Software (India), “Conducting regular meetings and updating employees, especially new entrants, about the company’s status and achievements is a must.”

Vision and objectives

Observes R Natarajan, vice-president, finance and HR, Tavant Technologies India, “Mentoring and handholding new recruits from day one to four months are important tasks; during this period, they should be familiarised with the culture of the company. It is at this time that new entrants experiment with different options. Hence they should be exposed to the best values the company has.” If they are informed about regular happenings in the company, employees will be confident about the future and not try to look for better options. Notes Satish Venkatachaliah, head of HR at SAP Labs India, “We communicate SAP’s goals and mission to employees at all levels on a regular basis…this has brought down the attrition level.”

Understanding an employee’s needs at various levels is a recommended HR practice. The Meet Your People Programme carried out at Wipro aims to increase the effectiveness of supervisors. Under this initiative, all team leaders meet regularly to exchange information about the challenges and successes of their respective teams. “Through this, we are able to adopt best HR practices and tackle attrition to a great extent,” explains Sahoo.

Exposure to newer technologies and well-managed succession plans cannot be ruled out in managing attrition. Training in the employee’s area of specialisation can glue him to the company. The training and development should involve domain-specific, technology-specific and behavioural skills. Identifying the right training for the right person is very important. “Some employees prefer development to being in a support and maintenance job. To hold back these people, we give first preference to training them,” adds Rakesh.

Further, the use of new technologies, the support of learning and training, and a challenging environment rank higher than competitive pay structures as effective retention practices.

Consider feedback

Offering medical insurance, taking care of employees’ families, and a good overall package should make sure these processes are not derailed. Going to onsite locations matters a lot to IT workers, so organisations should allow all employees to avail of this chance on a rotational basis.

It is important to take feedback from employees through different means and work with the HR department to iron out differences. As industry experts point out, feedback can be got in two ways—during the employee’s tenure, and through exit interviews. Inputs can be secured from existing employees through various employee relationship management tools. The Wipro Listens and Responds initiative at Wipro aims to capture the concerns and grievances of its employees. “The feedback we get through this tool will be analysed, and action will be taken on it. Our employees are very excited that their feedback is being taken seriously,” says Sahoo. Exit interviews help management learn the reasons why employees leave the company; based on their revelations, the organisation can address the problems of existing employees, thereby curb attrition.

Employee’s advocate

One of the main reasons why employees leave IT companies is because of problems with their managers. An HR professional can be termed an employee’s advocate and a bridge between top management and employees at all levels. There is a huge gap between HR professionals and IT professionals in terms of understanding challenges and delivering requirements. “HR has not really understood the problems associated with employees’ careers and jobs,” opines Rathi. The company’s overall plans and strategies also depend on HR professionals as they voice employees’ problems and requirements. Says Dr Solomon Suresh, vice-president of HR at HTMT, “The HR department should have genuine interest in the employees’ welfare…it is responsible for making sure that their expectations are met. By doing this it is easier to meet the company’s business targets.”

vinutha@expresscomputeronline.com