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Monday, November 2, 2009

Attrition Rate in Steps to cope with it

article is an attempt to deal with the increas­ing Attrition Rate in IT
sector & how to cope with the situation . It is basically to highlight some points to the Freshers as well as the expe­rienced who are continuing or are interested to make career in IT sector . Before dealing with in details one should know what is Attrition
Attrition: A reduction in the number of employees through retirement, resig­nation or death.
Attrition rate: The rate of shrinkage in size or number.
Introduction: In the best of worlds, employees would love their jobs, like their cowork­ers, work hard for their employers, get paid well for their work, have ample chances for the advancement, and the flexible schedules so they could attend to person­al or family needs as and when necessary.
But then there's the real world. And in the real world, employees ,do leave, either because they want more mon­ey, hate their co workers, want
a change or because their spouse gets a dream job in another state.So,what does all the turnover cost? And what employees are likely to ha':e the highest turnover? Who is likely to' stay the longest?
Information Technology as an industry is very dynamic, lots of staunch competitors in the same field. IT as an industry is segmented into Global Consulting or Product Development companies. With the increased offshore projects hitting, a lot of tech­nological companies are try­ing to acquire as many proj­ects as possible. Lots of Projects coming to INDIA, due to cheap labour and pro­fessional excellence proved.
If you ~om pare the increas­ing demand for the IT pro­fessionals and the jobs that need to be offshore in India, there is a huge dissonance in the demand and the sup­ply.Naturally,acquiring tal­ents become difficult in such a situation. Since the inflow of fresh talent is relatively less, the same professionals in the market keep moving from one companies to anoth­er. Lot of things attract such
individuals as well as there are reason for attrition as fol­lows:
Salary hike Promotion
Less onsite opportunities Brand
Job satisfaction Facilities
Working Environment Work Pressure.
Work culture and man­agement-IT industry is known for its high pressure work atmosphere and long working hI'S, which create high levels of stresses,employ­ee and high attrition rates.
Transformation in
lifestyles, identity and fam­ily
Lack of good leaders who can motivate and guide their team well-IT managers lack both the time and tools need­ed for assessing their team members and taking correc­tive action to improve their performance which is direct­ly related to job satisfaction.
Increasing percentage of women employees-Most women leave their job either after marriage or because.of long working hours, work stress and other social pres­sures.
Attrition is higher because salary is dynamic ...
There is more demand and less supply so people are get­ting what they want. One sure way to prevent this is to provide excellent working condition and make the organization a people centric place.
PDC-ProductDevelopment Companies(Most of the IT people in IT services would like to move PDC as the kind of work would be challenging & exciting)
Some companies & their domain are exciting.
Quality of the work Some companies are offering its employees the high end qual­ity work.
Mostemployeesdon11eave but quit because they did not like their job, they quit because they did not like their boss ..
Steps to Reduce Attrition:
Focus on Exit-interviews
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