ARRTITION

ATTRITION

"A reduction in the number of employees through retirement, designation or death"

Attrition, also known as employee turnover, or employee defection, is an industrial term

used to describe loss of employees or Man power.

Attrition Rate: "the rate of shrinkage in size or number"

DEFINING THE ATTRITION PROBLEM:

Attrition is beginning to significantly affect efficient production skilled operators and
employees are hopping from job to job and taking with them the customer knowledge and
technical expertise that any company needs. The downside of this increased competition is a
rising rate of Attrition, particularly in India.
At present the current attrition rate in garment industry is about 8-10%.

Why attrition should be prevented?

To put these attrition numbers into perspective, if a company has 100 programmers and an
attrition rate of 25%, then 25 of its staff will leave each year. Think about the time and money
it took to find, interview, hire, train, and coach those 25 people. Now think about losing them
and starting the hiring and training processes anew.
How do the hiring and training processes break down in terms of total costs in India?
The typical time for advertising, interviewing, screening, negotiating, and hiring a new
employee is about two weeks. Companies usually allot one week for programmers to become
familiar with the new business, two more weeks for technical training, and one last week for
customer training. Now imagine a 25% attrition rate and replacing 25 of these programmers
each year. Based on a yearly salary of $15,000 for the human resource person and $25,000
for the programmer, it would cost an additional $63,000 annually in acquisition and
employee training costs. After considering these figures, it quickly becomes apparent why
companies are investing in strategies to prevent attrition.
 CAUSES OF ATTRITION
It is not easy to find out as to which reason contributes and who has the control on the
attrition of employees. Studies/survey conducted indicates that everyone is contributing to the
prevailing attrition. Attrition does not happen for one or two reasons. The way the industry is
projected and speed at which the companies are expanding has a major part in attrition.

Work environment:
Working environment is the most important cause of attrition.
Employees expect very professional approach and international working environment. They
expect very friendly and learning environment. It means bossism; rigid rules and stick
approach will not suit the call centre. Employees look for freedom, good treatment from the
superiors, good encouragement, friendly approach from one and all, and good motivation.

Organizational Matters:
The employees always assess the management values, work culture, work practices and
credibility of the organization. There are always ups and downs in the garment industry.
When there is no focus and in the absence of business plans, non-availability of the
campaigns makes people to quickly move out of the organization

High job stress:

No doubt the jobs today bring lots of pressure and stress is high. The employees leave the job
if there is too much pressure on performance or any work related pressure. It is quite common
that employees are moved from one process to another. They take time to get adjusted with
the new campaigns and few employees even find it difficult and they leave immediately.
Monotony sets in very quickly and this is one of the main reasons for attrition. Youngsters
look jobs as being temporary and they quickly change the job once they get into their own
field. The other option is to move to work where there is no pressure of sales and meeting
service level agreements (SLA).

Salary and Other Benefits:

Moving from one job to another for higher salary, better positions and better benefits are the
most important reasons for attrition. The salaries offered from garment companies in
Bangalore, highly impossible for Indian companies to meet the expectation of the employees.
The employees expect salary revision once in 4-6 months and if not they move to other
organizations.

Family circumstances:

The personal reasons are many and only few are visible to us. The foremost personal reasons
are getting married or falling in love or change of place. The next important personal reason
is going for higher education.

Health is another aspect, which contributes for attrition. Employees do get affected with
health problems like sleep disturbances, indigestion, headache, throat infection.

Unsatisfied job position and company:

The demand for trained and competent manpower is very high. Poaching has become very
common. The big companies target employees of small companies. The placement agencies
have good days for doing more business.

Lack of growth opportunity:

An employee wants growth in career opportunities in their job. The employees with 4-6
months experience have very good confidence and dare to walk out and get a better job in a
week's time.

Lack of job clarity:

One of the main reasons why employees leave companies is because of problems with their
job. There is a lack of clarity in job among the employees. They should be clear in their job,
what operations they have to perform, at what time, to whom they should report, duties they
should perform etc.

Unsatisfied from salary:

Many operators and employees leave the job in search of a good salary. They expect a good
salary from the employer. Inadequate salary is an important reason for leaving the job.