Why
do employees leave?
Answers
are plenty but they do not provide complete solutions as different individuals
have different needs and requirements. Some employees prefer to leave a job because
they don’t like the work culture. Some may not be satisfied with the salary or
appraisals. Some are not happy with their co-workers while some may have some
other problems.
Say
for instance, you hire a new employee and his training period runs for six
months. During these months, he simply adds to the cost-to-the-company as he is
not fully involved in the production.
If
the same employee leaves after 2-3 months of being confirmed then this
investment turns into a loss for the company as it fetches the company
virtually no returns.
Attrition
to some extent is good for the organization as it helps you get rid of
non-performing resources. However, it becomes a real problem when it goes
beyond the desired limit or draws away your performing workers.
In
this blog, we will discuss the major reason of attrition – the lack of
motivation – which in turn, results in employee dissatisfaction.
Controlling
attrition is not just about retaining employees. In fact, it is the act of
retaining the resource you actually want to retain or in other words,
identifying workers who are actual assets to the company!
‘How
to motivate employees’ is an oft-repeated question. Is appraisal a foolproof method?
But then, you can’t appraise every employee equally. Then how do you recognize
the deserving person?
According
to an article by Josh Bersin, published in Forbes,
“tenure-based rewards systems have
virtually no impact on organizational performance”.
The
article further states, “companies that
scored in the top 20% for building a “recognition-rich culture” actually had
31% lower voluntary turnover rates (this is when good people leave on their
own).”
Make the appraisal system more
flexible and broad
Most
companies recognize and reward their employees on the basis of productivity
numbers, which however, should not be the only criteria for appraisal. You can
satisfy and motivate some employees by evaluating and rewarding them under
these criteria.
But
going simply by numbers and output to judge performance may make you ignore
other deserving employees, who have say expertise in client handling or trouble-shooting
during crisis, as such qualities are not exactly quantifiable. When such
performances go unnoticed, it suppresses their skill and desire to work in the
company.
Recognize
employees who are result-oriented as well as self-motivated and most importantly,
well-behaved. You can reward an employee when he deals with customers
efficiently at the time of a particular problem.
This
way, you can satisfy and motivate a broad set of employees who are specialized
in one or other domain.
