Employee
Retention
Issues & Analysis

Issues
• Too much attrition can result in
 Uneven workloads
 Lower employee morale or
engagement
 Loss of business knowledge
 Lack of continuity, particularly in
customer or supplier relationships
 Problems with quality or productivity
• As a general rule, while turnover rates
vary with the economic climate, most
organizations try to keep turnover below
15%
Reasons for Attrition
Reasons
• Personal
 Marriage and subsequent relocation
 Higher Education
 Need to relocate nearer to family
 Medical and Personal Reason
• Work
 Salary and Perks (Loans, Vehicles etc)
 Overseas deputation/Travel
 Promotion and Career Growth path
 Desired roles, skills, responsibility, project
 Better offer from competitor
• Facilities
 Commuting and transportation issues
 Food & Canteen
 Timing and Shift-related issues
 Working conditions and facilities
• Supervisor
 Issues with Supervisors/colleagues;
grievances
 Appraisal related issues
 Lack of appreciation; harassment
 Work Culture
 Leadership & Company Image / Brand Values
Attributes to predict attrition
Attributes
• Personal
 Age, Gender, Marital Status, Number of dependents
• Education
 Degree, Specialization, College/University, Grade,
Marks, and so on
• Current Project
 Projects location, Type of Project, Type of work in
Project, Role in Project, Turnkey project flag, Domain,
Functional Area, Business Unit, Business sub-unit,
Client, HW Platform, SW Platform, SW sub-platform,
Employee home location, Duration spent overseas,
Total duration in project, Number of role changes in
project, Promoted in last year and so on
• Past Projects
 Similar data as above
• Experience
 SCurrent designation, current grade, current role,
previous experience, BT experience, Total experience,
number of job changes, average job duration and so on
• Performance
 Date of last designation change, Date of last grade
change, Last performance rating, current performance
rating, last gross salary, current gross salary, percentile
salary fit against employees in same grade, average
gross salary expected in markets, awards received,
current appraisal disagreement raised, papers
published, conferences attended, patents applied, and
so on
• Leaves related
 Current leave balance for various type of leaves, leaves
in current quarter, leaves in last quarter, and so on

StrategiesforEmployeeRetention
• When an employee indicates the desire to resign, HR can
offer
 A Higher Salary (Make a Counter Offer)
 A Promotion
 Overseas Deputation
 Transfer to a location of choice
 A change of role, or one with higher responsibility
 Financial assistance or loans
 Project rotation
 Training and other competency building initiatives
 Redressal to any specific grievances
 Conduct Stay Interviews
 Conduct Exit Interviews (3rd party after 60 to 90 days
from LWD)
 Get to know what’s important to your employees
 Focus on Talent Management best practices
• Broader means to reduce impact of attrition
 Pro-active identification of employees at high risk of
attrition
 Training and deployment for “back-up” team members
for critical tasks and core employees
 Improved and effective knowledge transfer mechanisms
 Creation and implementation of succession plan for
leadership positions etc
 Preparation of a comprehensive and optimal attrition-
handling plan, to mitigate the after effects of predicted
attrition
• Build People skills of middle management
• Focus on Capability building and creating an ecosystem
where people development is at the fore-front of leadership
mindset
• Communication on Compensation & Benefits
• Engage employees over & beyond their day to day job and
ensure that their insecurities and vulnerabilities are
addressed appropriately and timely through various
programs and practices which could be designed keeping in
view organization context and requirements
• Provide Growth Opportunities and communicate about them
• Managing expectation of employees is a key
• Provide opportunities for skill up-gradation through training
intervention or internal job assignment / movement
• Career Pathing plays a key role
• Creating Training Academies with in and also do tie up with
institutions
• Effectiveness of Reward & Recognition
Waystomitigateattrition

Tracking Attrition Metrics
• One of the best ways to put an effective employee
retention strategy in place is to track your turnover
metrics
• What you really need is segmented turnover data.
 By examining turnover data by location,
department and manager, you can identify
trends, uncover root causes and take corrective
action. You also need to segment your turnover
data by employee performance or value.
Turnover of low performers might be a good
thing for the organization; but you don’t want
to be losing an inordinate number of high-
performing, high-potential employees, or even
a large number of your solid performers.
• One final metric that is important to track:
 Turnover of your top talent compared to
turnover for your solid and low performers.
Higher turnover rates for your top performers
can signal serious organizational problems that
need to be addressed.
Employee Retention Rate
• Employee retention rate is a statistic
used by organizations to measure the
effectiveness of how well they retain
their employees.
• Employee retention rate is calculated by
dividing the number of employees who
left during a period by the total number
of employees at the end of a period.
Attrition Analysis
• Attrition Rate
 Existing Employee Attrition (Aging analysis)
 How many of my employees who worked here a year ago
today have left
 view is more important to look at because it tends to
show you where slightly more tenured employees leave.
This leaves out those that joined and quit in 3 months
which is more of a localized recruiting issue rather than a
systematic issue in the company.
 Total Employee Attrition
 This type of a view displays total attrition by month. It
does not discriminate as to which employees quit,
whether they were new hires or they were 3 year tenured
employee
• Employee Tenure
 Tenured Employee proportion
 Higher the tenured proportion the better job the
company is doing at retention
 Tenured Employee actual
 In a growing company however just looking at the
proportion of tenured employees to new is not enough.
As new hires come in to increase the employee base the
Tenured employee proportion would auto-decline. Hence
we should also look at the actual number of employees
who are tenured
• Batch-wise Churn Analysis
 Is every batch of new hires that join your company the same. Do
they perform identically? A view of that can be very useful to
study the 'employee lifecycle' to see how they start off and how
they perform as they mature. This information can be critical
when cross-referenced with the hiring sources and may also be
used for recruitment performance.