Attrition

Looking at IT industry in Bangalore, one would say that the employee attrition rate is crazy.  You see so many people switching jobs every now and then, causing serious concerns for the management.  Large organizations maintain bench (or beach – additional resources than required) to solve part of the problem (of course, not solely to address this problem alone).  But can this additional cost be avoided?  Can we build that trust between employer and employee?  Can we avoid conflicts and arrive at an agreeable resolution with in the industry? 

 

I remember sometime back, when the situation was worse in the BPO industry, organizations signed *treaties* not to poach people from neighbors.  Of course, it was of very little effect as practical implementation of the same was very hard.  Employee turn over is definitely the symptom.  What is the cause?

 

Now, is a lack of employee turnover cause for celebration? 

 

I read an article recently which questioned lack of employee turn over.  And I found interesting answers too.  It is true that when people asked what they like about their jobs, they give politically correct answers – which *you* want to hear.  But some reasons could be:

 

• Business is down and other companies are not hiring.
• Your employees have skills so specific that there are few companies that require them.
• The current pay level has reached a point that other companies would be hard pressed to meet it.
• The compensation is level throughout the industry, making it impossible to switch jobs for more pay.

 

This is very interesting argument.  I think it’s more painful for the employer to have people around – who want desperately to move on, but can’t – for whatever reasons.  While all of us can discuss the reasons, I agree with Tana that it’s not those *reasons* we need to look at, but the *people*.  How can we address this?