Why can't the companies sustain trained Employees...

I feel these are the major reasons why an employee leaves the company. Normally companies don't think of their employees and understand what they want. When the company grow the employees should also grow this is what I believe. But most of the companies don't understand this, so attrition happens. So try to grow your employees as your company grows this will help to retain your valuable employees.

:)  

If an employee is promoted to a higher designation from a lower one, he is given raise, but the gross salary he draws post promotion is much less than the amount that would be drawn by a person joining fresh in the company, at that higher designation.

Also there is a hindi saying: Ghar ki murgi daal barabar". ie. an employee's worth is unrecognized till he is a part of the system, it is realized only when he leaves.

A saw a recent Ad of Harvard Business School Executive MBA program.Diversity in each class,based on origin,based on experience and based on field of work was projected as the biggest plus point of the course.

Now,if you just leave this-company-and-that-company debate ,its just a natural flow of talent across the market.Someone who leaves your company has probably already contributed to it as in the process of doing so only,he has gained enough knowledge and confidence to be eligible to be hired by another company.Now,the other person who is joining does have all the prerequisite for the said job for which you are hiring him but more important than that is the diversity he is bringing in you system.

PS: Stagnant water stinks. 

Earlier people were very scary of this Hire and Fire Policy of the companies. Time changed, Things changed. The same thing is now applicable to the company by employee. The employees are confident that they are not going to be longer in a particular company. If they stay there for a long time they will not be in a position to move higher. Their idea is to jump more to get more.

All companies have in place career systems for management positions.

Not the same is happening (genrally speaking) about an equivalent career for experts: people who growth in professional competence without taking other people managemnt responsibilities.

This generate lack of career opportunities, not clear compensation policies...and at the end retention risks

I think , most companies do not understand the basic objective of training !

Training is for just one objective - to increase the employee's value to the company.

But what is the side effect of this ? It may also increase the employee's market value !

Once the employee realises this , and makes full use of the training made available to him / her , then what prevents him / her from leaving for greener pastures , if there is some lingering dissatisfaction ?

Some companies put a bond in the contract forcing the employee to work for the company for a certain period of time , but even this does not guarantee that the employee will stay for the bond period.

The only solution is to evaluate the employee thoroughly , before imparting training. Thereafter , if the responsibility assigned to the trained employee is satisfying , and the employee is monetarily rewarded for getting the most out of the training , then the chances of him / her leaving the company can be reduced.

Eventually , it comes down to an employee's sense of loyalty and ethics.

There is no transparency about the evaluation. Most of the times there are no measurable indicators.  The employee should know where he stands in any day during his tenure in a particular company he/she is working with.  This is equivalent to be knowing one's own performnace before the boss evaluates it.

If an employee knows that the progress is for sure in case of performance, then he/she will spend time in the company.  The training keeps on happening all the time during the tenure. A trained and experienced employee will have independent view point in camparison to a newly recruited staff which can be  a subject of friction and there are obvious mechanisms in the HR polcies to ignore such a staff.

Bewildered in the wilderness for some time, the staff leaves at the first opportunity from outside.

 Types of incentives :

1. Annual  individual incentives

• Paid Holiday packages
• Gift certificates
• Family TA/DA for 30 days for emergency postings
• A combination of  the above

2. HR incentives

• Recognition
  • Establishing a national cadre  
    • Structure before strategy :  Identification of  a ‘who’ for a particular assignment before deciding on ‘what’
    • Assessment based on
• Measurable indicators decided at the beginning of the assignment
• Disciplined thought and action
• Consistency
• Level 5 leaders (who need to be at the happening places). They are with a compelling modesty, are self effacing and understated, fanatically driven infected with an incurable need for sustained results. 

• Children education facilities
• Health insurance
• Pay incentives
• Reward systems

3. Professional incentives

• Promotion design
  • Measurable indicators for quality and quantity
  • Number of measurable indicators for a particular position ( This is an effective counter to the time required to be spent in a particular position in some companies. The other option is to have an extraordinary performance pay in order to qualify for promotion.  In difficult areas of work, both these scenarios need to be revised)
• Increments
  • Same as in case of completion of a professional course
  • Achieving the next grade ( For example, Asst Manager:  grade C  for newly promoted, Asst manager grade B  for one year old   and  Asst manager A: for two year old and Asst manager  grade O are due for next promotion)

There is a big gap between an employee and the management in any organization. Both stay as Silos or islands finding out each other shortcomings. A personal bonding is missing between employees and management at large.