The
biggest challenge facing the corporate houses these days is
not attracting the prospective employee but retaining the
talent. Liberalization, gradual decontrol, opening up of various
sectors to the multiplayer regime and enormous technological
intervention have shifted the dynamics of labor market. The
employee, the "internal customer", has now an all-time
expectation because of alternative jobs availability. Despite
offering competitive remuneration across the board, the industry
has been overwhelmed with the growing list of left-out employees,
during recent years due to the booming demand in business
and demand-supply gap of labor market. A reduction in the
number of employees through retirement, resignation or death
is the simplest interpretation of attrition. But in the practical
sense the issue is not so straight. Rather a meticulous analysis
of the available information of the ex-employee in correlation
with the demography, age, experience and above all the level
of employability can help a firm to design its own unique
retention strategy.
Precisely
the term attrition is referred to the "actual number
of employees leaving through resignation, either voluntary
or forced, or some other reason like retirement, death, Voluntary
Retirement Scheme (VRS), etc". The attrition rate is
the rate at which the shrinkage occurs. The management can
foresee the retirement and chalk out its human resource planning
accordingly. The replacement issues related to forced resignation
and VRS issues also remain under the purview of management
but the voluntary resignation issue of employee is absolutely
unforeseen and most of the organizations struggle to cope
with the same. |
