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Created by : Gargi Sinha, Senior Consultant, Hewitt Associates  | 08 19 2010 08:41:26 +0000
Industry : Human Resources (HR) ConsultingFunctional Area : Organizational Development(People Management)
Activity:  2347 views;  last activity : 01 11 2012 16:47:16 +0000

It is a general situation everywhere. Employee attrition is on rise with companies losing their best employees. Hr employees are banging their head to retain their best employees but at the end of the day they fail. Employees are not able to compromise with the policies of the organization & companies are not ready to change their policies to retain employees.....

So, should companies change their HR policies to control attrition??

 
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Top Argument
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Attrition is a universal phenomenon.  This happens due to various factors, viz., monotonous working conditions, ubiquitous controls, neglecting good work, subjective evaluation and assessment, rigorous monitoring and surveillanc, etc.  In case of efficient workers, some of the controls should be relaxed and the HR policies should be altered to retain them.


By S. Muralidharan, Executive Director, Knowledge Foundation & Campus Around the Corner  08 19 2010 10:01:16 +0000
 
Top Argument
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Gargi agreed that attrition is serious issue but company can't change as per individual requirements. HR policies are framed as the industry standard & applies to all employees. But to some extent flexibility can be given to motivate employees..but if employees expect beyond what they deserve then the company can't help them.


By Kriti Das, HR Manager, ANZ Information Technology  08 19 2010 08:56:34 +0000
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I suggest that all the HRs and recruiters in India must be changed A.S.A.P as they don't know whom to hire and whom not to they are just good for absolutely nothing. Recently I went to an interview and the interviewer asked a very stupid question that was :- "Why are you serious?" Now come on this is the matter of my career and life and how can be I a joker there? I answered that I am serious because it is the time to be serious but the HR or the recruiter turned back by saying that he is not good in English....... Oh! what the crap that she gave.


By Ardhendu Pal, Technical Support Officer, Convergys India Services  | 01 11 2012 16:48:55 +0000
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Yes the companies should change their traditional policies. They should try to take the viewpoint from employees as to what they want to have in the policies which can benefit to the employee and to the company
By Parag Mishra, Senior Systems Engineer, Emerson  | 01 11 2012 15:55:25 +0000
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All organization can expect some degree of absence and attrition. Indeed a certain degree of attrition may be declarable since it creates opportunities to introduce new ideas and expertise to the organization, as well as providing career development opportunities for existing employees. Persistently high levels of attrition, however, are costly both to the individual, organization and the economy as a whole and adversely affects efficiency, productivity, profitability and morale.

 

..................................

 

Personnel policy should be

*         Scientific requirement & selection and adequate training of personnel

*         Fair wages/salaries & attractive incentives and welfare measure.

*         Job security as well as Social security measures.

*    Periodic performance appraisal & its use in reviews of increments, promotions etc.

*    Proper counseling & training for improvement in performance

*    Provision of career development opportunities & execution of a service bond

*    Personnel dept must prepare periodical report relating to causes of attrition & suggest remedies.

*    Favoritism should be avoided.

*    An effective grievance procedure is to be adopted.

*    Considerable attention to made updated personnel policy manual and it make it available to all employee.

*         Company should separate hr function from personnel/ admin dept. in order to make effective functioning.


By Avinash kumar, HR Manager  | 01 11 2012 15:43:57 +0000
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yes, i Think an alteration to could achieve wonders,In terms of satisfying the clients & reducing non other than "Attrition rate"
By VISHWA DEEPAK MISHRA, HR-Talent Acquisition Cum Business Development Manager, Leading IT Giant.  | 04 28 2011 11:07:29 +0000
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Changing HR policies only will not help in bringing down the attrition rate.This change in policies should be accompanied with change in employee involvement n empowerment level.You have to make them feel that they are important cog in the success wheel of organisation.
By Abhimanyu Chauhan, Manager H.R.(Recruitment), Siddhivinayak Corporate Services  | 04 28 2011 07:49:05 +0000
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Changing is the proof of ur downfall...change in policy cant lead u have control over attrition, rather understand and execute as per the demand and supply theory.
By Shibu , BDM, International Business developement  | 04 28 2011 06:01:58 +0000
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to hell with attrition; The HR's should control policies to identify or create - talents - and maintain them. If they cant - KINDLY STEP DOWN - and give way for those waiting outside. The HR's should look out for mentors and faithful followers and not policy suckers or leg grabbers. There is no best or worst employee, there is one to lead and others to follow and take lead in his/her absence. If there is no one to follow, then find/create talents to follow. If there is no one to lead, then find/create leads. Make sure those in control don't indulge in rat race but contribute to common interests of the company. Make sure no one is left behind or cast out. Be a living proof of your expectations in other words - INSPIRE -. There is no point in keeping escapees inside the fence for the sake of headcount or whatever unless your organization is a wayside bus stop where any ass can roam in and out. Nobody wants to work there. Finally, as long as there is a variable called tax and inflation none can attract by shining more paisa for long. The effort should always be in improving a team not in replacing them. There should a balance between points earned in money, career, social status or whatever that makes his/her life worth living. So make sure the company is not hampering the balance.
By Basil Cheriyamadathil, IT Specialist ( System Testing ), Genting Malaysia Berhad  | 04 27 2011 10:11:08 +0000
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generally not but if an organisation suffering with such kind of problems at that time it is necessary to change regarding policies.
By Chetan Pancholi, Project Engineer, Tamboli Castings limited  | 04 27 2011 08:03:22 +0000
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yes policies to be changed but also think as a employee.Why a employee change his job. reasons are well known, due to boss interaction, slow career growth path, working environement and welfare activities etc. We need to solve these problems also. In the current scenerio most HR peoples misguides about the things in organisation. But when employee join the all things open and create environement to employee to search a new job. So the conclusion is this that change the policies but also think about employee also, give him a better work environment there he can be more productive and stay in job longer time.


By Jagdeep Ohlan, Engineer Maintenance, ACPL  | 03 05 2011 09:53:05 +0000
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companies should not change their HR policies because company should have hold on his employees.but in a critical situation company can modify his HR policies but not totally change.
By Satish Sharma, CEO/MD/Director, Appin Technology Lab  | 12 27 2010 09:04:13 +0000
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yes it will
By ranjan singh, HR Executive, Summit Information Technologies  | 12 27 2010 07:57:51 +0000
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Not chged but modified in best suited way to organization to help reduce attrition
By Isha Jain Oswal Jain Oswal, Consultant, Hexagon Executive Search  | 10 25 2010 04:01:53 +0000
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PDCA Plan, Do, Check, Act) is applicable everywhere.By the process of checking , we will realize the black spots & will give us a chance to rectify it. In fact, all policies are to be reviewed at a periodical interval to assess it effectiveness in its implementation. Say, may be at the interval of an YEAR. This revision may be with effect of the feed-back from people / of the organizational change. Hence, we need to revise our HR policies periodically with a special attention on reducing the ATTRITION. Merely , driving the old policy is also an NCR in Quality Audit system.


By KALIYAMOORTHY , Oil & Gas Area Coordinator, Undisclosed  | 10 24 2010 14:58:55 +0000
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Attrition or its reverse retention depends on both the internal as well as the external environment of an organization. For instance, earlier when the employment market for many industries was tight and jobs were not easy to get personnel did not move out frequently. Now with job prospects improving in many industries such as the IT industry companies have to face the challenge of attrition. Adapting HR policies through technique such as flexitime, better compensation, better working environment and facilities are necessary to retain employees. For higher positions, some companies also pay a joining bonus to attract employees. These are all examples of how companies are adapting their HR policies to the changing environment.


By Azhar Kazmi, Professor, King Fahd University of Petroleum & Minerals  | 10 01 2010 20:09:24 +0000
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Companies should consider humans as humans and not as automatons. In that sense, it makes sense to leave place for error.
By neha singh, Content Editor, Avestia Corp  | 10 01 2010 16:09:47 +0000
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HR Policies should be tweaked in such a way it goes with the Human resource you are dealing with,nature of the job,the industry etc.It isn't possible to to have universal HR Policy,It isn't wise to follow the best practice of other company...You should build up a policy which is suitable to your company.


By Ramya Chandran, Executive Assistant, Sasken Communication Technologies Limited  | 09 30 2010 16:59:08 +0000
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Changes in situations should entail policy changes too. It doesnt have to suit individuals specifically but can be changed overall to reflect current market sentiments. Otherwise it is organisations that are going to suffer. On one hand they are going to utilise precious time and resources in training new staff and on the other hand there is the issue of business secrets and practices going out of the fold with too many trained men out in the field who could fall prey to competitors.

So, it is clear that if you are not going to change the policies over time, it is going to do more harm to companies than good.


By Jaygopal Raghavan, Marketing Manager, Landmark Group  | 09 07 2010 19:23:09 +0000
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We all know the saying "Change is the only constant." There are changes in the world and they - in turn - affect us. So when there is a recession, the management expects employees to help the organization by tightening their belts and accepting a reduction in salaries. For example, many in IT were forced to accept a 30% reduction in CTC or leave the job. Now let us look at the flip side: When the market is doing well and other companies are willing (in some cases, going all out) to poach an organization's talent, what should the management do? Well, it should step up and change w.r.t. the market conditions. So, policies must change - whether they are HR, Production, Training, Marketing, Finance. No branch or department is exempt. Ultimately, the organization must be competitive and thus profitable.
By Isaac Madhavan, R & D Manager, Test prep company  | 08 30 2010 09:20:48 +0000
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HR policies are not the main factors to controll attrition but related to pay packeges,managements authority,company's financial position etc.If required,some times HR policies are also to be modified.
By R N Bhattacharyya, Freelancer, Freelancer  | 08 20 2010 17:23:52 +0000
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It is the other name of employee turn over, a debate is already going on the subject. 

Factors that may contribute to higher turnover  include:

  • pay - is the rate fair or below your competitors
  • policies on equal opportunities, diversity and discrimination

You can be proactive about some things and prepared for others.

  • employee consultation - consult regularly with staff about general morale and how satisfied they are with their work and working conditions
  • succession planning - put together and regularly review your plans for covering and replacing leavers, and training and inducting new starters

Conduct exit interviews to understand the reasons for the trend and to prepare plans on how to retain the employees of the organization.

 


By Srinivas suravajhala, Asst. Manager.  | 08 20 2010 06:17:47 +0000
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attrition is a undesirable situation faced by many firms today. but in growing economies and populous country like india its difficult to retain talent as the demand is too high... HR policies definately need a rework customised at individual level to retain talent. Every employee has a different attribute that keeps him associated with a job
By Omkar Nandi, Business Analyst Merchandise planning TARGET  | 08 20 2010 04:23:07 +0000
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Well, Not only money and many factors make the employee to leave company, Hr has to participate in interactive discussion with him/her when he leaves the company and if really needs to change policies then the management has to look into.
By Yugandhar , Assistent Manager - Accounts  | 08 20 2010 03:54:31 +0000
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Yes, a simple one to answer.. HR conducts "Exit Interview" to know the reason why employee is leaving and if all employees raise Policy as a reason for their move I believe company should re-visit their policies...

But on the other hand what come to my mind is 10%-15% attrition is good for any company because if people would leave the company than only the organisation would be able to hire the BEST TALENT AVAILABLE in the market...


By Nipoon Tandon, Associate Manager HR Shared Service, Control Components Inc  | 08 19 2010 12:54:00 +0000
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the question is quite limited and so easy to answer! 

YES companies must proactively change their hr policies to better attract and retain employees. There is no doubt about it.


By RAMESH KANDADAI, Principal Consultant, ARM Consultants  | 08 19 2010 11:04:23 +0000
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In my opinion this is the high time that companies should change their HR policies to retain the best talents. Companies should see that employees feel secured & comfortable about their immediate future & can rely on the company for a long time.

Also HR must ensure that the employees are kept happy and also motivated to work for the organization and in order to do that HR must come up with various innovative tools and techniques which would help in retaining employees.


By Gargi Sinha, Senior Consultant, Hewitt Associates  | 08 19 2010 08:41:26 +0000
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A GOOD HEAD AND A GOOD HEART ARE ALWAYS A FORMIDABLE COMBINATION
By sudhakar , BUSINESS CONSULTANT  | 04 29 2011 06:30:09 +0000
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its the workload not the HR policies in most of the cases...the reason for high attrition rate...worst affected is healthcare sector where we receive resignation every coming month...
By Suyashi , HR Recruiter/Consultant  | 04 29 2011 04:48:13 +0000
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In most of the cases the HR policies are not the reason to change the Job .That's the boss or money factor.. Attrition control is not at all dependent on HR policies the other factors should be taken into consideration.
By Gurveer Singh, Analyst  | 04 27 2011 08:56:20 +0000
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Policies cannot be changed just because a few people leave. It is the foundation of a company
By V. Srinivas, Freelancer, Information Technology  | 04 27 2011 06:35:08 +0000
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You are spot on aravind...even if you change your HR policies 100 times to suit your employees' needs, employees will find other ways to enforce more policy changes till the company runs out of fuel.So let the company policies be as simple as possible that will benefit both the employer and employee within its financial capability. Its not logical to copy others' policies which is not going to work for you till you are actually comfortable with it, operationally and financially. Be yourself and let the market dictate your attrition rate.
By Saibal Ray, SQA, confidential  | 12 26 2010 09:45:49 +0000
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What ever policies you change if a person finds any other copnay offerig better emoluments or positions is going to go.. So why change policies rather than maintain the standard policies.
By ARAVIND KRISHNA, Ph.D/Doctorate student, Department of Management Studies (IIT), Madras  | 12 26 2010 09:16:32 +0000
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Some companies practiced this one by having different policies for different people.  Because of this, things didn't change.  Instead of that, the people who were not benefited got the message that they were less important and it paved the way for their departure.


By Prafulla , CTO/CIO, EL TechInventio  | 09 30 2010 09:01:47 +0000
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How can there be change in policies of one organisation for the benefit of oneself!!! HR policies are the standards & benchmark for organisations and its flexibility in changing is not at all expected..
By BIBHASH ROY, Assistant Professor(CSE), TIT Narsingarh  | 08 30 2010 09:57:36 +0000
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Changing/Modifying the HR policies may not be the best solution, because First we cannot change HR policies now and then as per the dynamics of the market. Second this will increase the volatility to next level as the attrition has already diluted the systems and remaining we will dilute if we change the policies.

We have to accept the fact that people were expecting a good appraisal in the current season , whereas in most of the companies its been a flop show, as the ones who had been rated in top from bell curve perspective have picked new jobs on the base of current credentials and ratings and those who were not marked in top already decided then and there to move on.

Infact, the attrition is been seen on all the available caders, leaving no anchor to hold the vessel, all the layers have surrendered the control. Few organisations have imbibed "2-3 Months notice period" clause but that has also back fired as people with moderate exp have started going ABSCOND.

There is a big list of raesons why people are leaving, ranging from low salary vs higher offer to vertical growth in role to onsite assignments, its practically not feasible to meet all corners as the cost to do the same would be exponentially high.

As per my understanding the best option at this point is to be a patient listener and pen down all the reasons for the attrition and once this Attrition Tsunami is over then we can sit and analyse the factors and can roll out more effective and compatible HR Policy charter.

Any tweaking in the middle of turmoil can cause high wave tides and can be more detrimental.


By Vikas Malhotra, Resource Management, Manpower Planning , Birlasoft Limited  | 08 21 2010 16:02:10 +0000
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TODAY MOST OF THE COMPANIES ARE NOT RUN BY THE PROMOTERS BUT BY CEOS,VPS GMS ETC.POLICIES ARE INTERPRETED TO THEIR CONVENIENCE.MOST EMPLOYEES AT ALL LEVELS  JOIN OR LEAVE COMPANIES BECAUSE OF THE MANAGEMENT.IN MANY INSTANCES BECAUSE ONE PERSON AT THE TOP COULD NOT SAY NO,MANY DOWN THE LINE SUFFER.HR POLICIES MAY HAVE TO BE CHANGED IN THE SENSE THEY CAN BE MORE GENEROUS,FLEXIBLE TO ENCOURAGE,MOTIVATE THE STAFF AT ALL LEVELS SO THAT ATTRITION LEVEL COMES DOWN.


By s.baalu , Consultant, XYZ LTD  | 08 20 2010 12:39:48 +0000
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Different companies of different industries do have their own HR policies, For every thing their are pros and cons. If the present policy is prepared with much vision and understanding of employee and organization benefits, why should we change the policy. Even if we change the HR policy also there may other after effects too. I say it is the duty of the HR professionals to be more skillful and talented to convince the employees of not quitting the job and keep them retained.Or else should be able to recruit the new employee who is at per with employee who had quit it.


By Murali , Placement Executive, ITM Business School,  | 08 20 2010 11:32:46 +0000
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if the HR person of the company is thinking ..?? and is with the company ..he/she can convince the kabootar to stay put similarly ..

 


By Ajay Ziz, Dy. Registrar,, University of Jammu  | 08 20 2010 05:03:16 +0000
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As the study shows...employees do not leave companies, they leave managers, a motivated employee will rethink before leaving company, and motivation does not only comes with money, it comes from various other factors which have more weightage than money, one of them is the immediate supervisor, as long as an employee can see he or she is being given ample opportunities, growth prospects, recognition, accountability, respect, the chances of such employees leaving the company are minimul and all these factors are well within the control of the manager or the immediate supervisor. Revising HR policies can not make everyone happy, if some people are leaving because of present policies, others will leave because of revised policies.


By Gaurav Sharma, Manager - HR, Mphasis  | 08 19 2010 14:47:36 +0000
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