Is It All About Money


By

Mrs. Madhuri Mathur
Faculty (Marketing)
ICFAI National College
Kota
 


' In the best of worlds, employees would love their jobs, like their coworkers, work hard for their employers, get paid well for their work, have ample chances for advancement, and flexible schedules so they could attend to personal or family needs when necessary and never leave their jobs' .

But then there's the real world - and in the real world employees do leave either because they want more money, hate the working conditions, hate their coworkers, want a change, or because their spouse gets a dream job in another city.

Employee Retention is one of the biggest challenges for the H R today .Almost all the sectors are hit by attrition the biggest hit is to the BPO and the IT Industry.

Two major trends point to the growing importance of employee retention as a relevant HR issue.

  • Ongoing rise in employee turnover rates in virtually every economic sector and region that, if left unaddressed, can have a significant impact on bottom-line results and organizational success.
  • The ever-climbing cost of turnover, especially when it involves high performers.

Though the direct costs associated with losing an employee are well documented ranging anywhere from one to three times the employee's salary-these calculations often fail to factor in the hidden costs of turnover. These include lost productivity and missed revenues, as well as intangible repercussions such as reduced morale and diminished company reputation. If the lost employees are high performers, then the turnover costs could rise dramatically.

According to McKinsey & Co., only 40% of the HR executives in major corporations track the departure of high performers or document their reasons for leaving.

The best way to manage turnover and retain high performers is to implement a well-planned and coordinated retention strategy, which sometimes requires fundamental changes in how a company selects, develops, and rewards its employees.

Employees today carry here today, gone tomorrow' attitude

Employees today would like to climb the corporate ladder as fast as they can. To prevent employees from job hopping, companies should provide vistas for personal and professional growth. If people can accomplish their growth objectives with one employer over a long period of time, they will usually continue in the same place.

It is not the competitive compensation or benefits but the way the employees are treated that makes them work and stay.

Enthusiastic and efficient employees are always keen to do something different and wacky. It's tough to keep them shackled under defined processes and single job profiles. If the company does not offer them enough excitement and challenge, they are more likely to respond to the competitor's overtures.

People need to feel wanted, valued, appreciated. They want to do meaningful work and have some say in how their jobs are designed, managed, and measured.
 


Mrs. Madhuri Mathur
Faculty (Marketing)
ICFAI National College
Kota
 

Source: E-mail May 22, 2006

     

Back to Articles 1-99 / Back to Articles 100-199 / 200 onwards / Faculty Column Main Page

 

Important Note :
Site Best Viewed in Internet
Explorer in 1024x768 pixels
Browser text size: Medium