Effective Retention Policy- The baseline of Attrition control

The HR's have been bothered by the retention issues and specifically the current trend of hopping over has become a mess now. It largely depends on the fact that what motivates your associates. Trying finding out that and also what is the core reason of their leaving the company. Probably after that you can design retention strategy effectively. 

Retention policy has to be framed by taking many factors into consideration; Understanding the fact all organisations need fresh and new brains to a certain extend. So the retention strategies need to be planned & executed in such a way where the attrition can be set at an optimum level. Optimising the attrition will reduce HR concerns and will give fair opportunity for the juniors to grow horizontally & vertically. Very few companies have done it, it will be advisable to have a Welcome Back program for employees so that we will be able to monitor, assess and formulate retention practices more effectively. 

My idea is take a sample group of associates and run through a survey / psychometric test / feedback about supervisors & initiate conducting Exit Interviews and maintain a strong analysis on the same. Basis of such reports, formulate something unique. Although there are no quick-fix & no magic formulas but a persistent effort can create remedial solutions. 

Firstly format the Exit interview to provide you the basic cracks to work on (I have experienced that some of the organizations never take it seriously & blame it on HR & its practices), secondly design the HR Survey and analyze it with the feedbacks given in the exit interviews and then you will come to certain conclusions on what your associates are expecting from organization. Most of the exit interview's I've taken reveal a deeper need for recognition by the immediate managers.

It is actually all about Employee Engagement and how are they engaged with the organisation? For engaging them, organisations should have fair-play policies like a fun clubs, learning clubs along with calculated performance recognition policies. Supporting associates with further Education programmes (MBA, Diploma, Technical studies on company costs) has proved quite beneficial for many companies although it can be immensely expensive for SME's. Good communication pattern also helps to drive engagement like periodical feedback on performances. These all has to be driven by people but HR has to support and put all things in right directions. We have a habit of conducting quite a few engagement activities and we have a good response from our employees, however the responses I receive from the departing employees is that these activities are impersonal. Even b-day cakes / cards are not considered personal if everyone else is getting the same. We've introduced an early warning system which ensures managers have a one on one meeting with their reportees atleast once a month to talk about things other than work. The improved bonding helps employees feel recognised, aligned with the org goals and helps the manager understand where the employee is from an attrition point of view. 

In an active market, you have to expect a reasonable degree of turnover - some employees you cannot retain, no matter what and others may just be average performers and more easily replaced. If your turnover rate exceeds, say, 10% do an analysis to determine if it is across the board or confirmed to certain units and/or job classifications. Employee opinion surveys administered by 3rd party firms followed by focus groups can be extremely effective in understanding and merging the concerns of employees and management. Out of this the information can be obtained which can guide you in determining what company policies, if any, to add or modify 

All we need is to develop a positive correlation amongst these factors namely, Performance, Rewards & Development.                                                                          

Authored by:

Kushagr Agarwal (Researcher) - KNR   http://www.linkedin.com/company/knr-management-consultants