What are the effects of high attrition rate on company?
- May lose projects in hand - as clients are not happy with high attrition rate
- Financial burden on company
- Cost to recruit new employees
- Cost of new employee training
- Time for ramp-up in new projects
- Workload on existing employees
- Low employee productivity due to unstable work and overtime
These are few important drawbacks of high attrition rate.
How to reduce attrition rate?
First let’s go to root cause of “why employee leave the company?”
The main reason is “lack of appreciation for their hard work”. I mean if company is not caring about employees then why would they stay in such company?
Keep in mind ‘more money’ is not always the solution! Nowadays employees are more concerned about quality of life and their family needs.
Here are some solutions on high attrition rate:
- Hire the right people in right positions
- Understand the employee needs and provide it to them
- Respect them
- Always appreciate good work
- Regularly ask for employee input and take appropriate action
- Offer training opportunities to gain advanced knowledge
- Better to become employee oriented
- Pleasant working atmosphere
- Career growth opportunities
- Value employee creativity
- Job security
Last one is very important. Your employees should feel secure about their jobs. If you can’t provide job security or at least feeling of job security in employees mind then your company deserve for high attrition rate.
These are some one liner solution. Let’s take some practical solutions.
Any software team should consist of highly motivated and skilled people. Good motivation comes from good leadership. Good leadership provided by team leaders and managers can bring down the attrition rate. In my career I observe employees leave the company just because of their boss. Some unrealistic demands or lack of motivation and leadership can make employees think over their position and career.
So leaders should motivate and energize colleagues when they lost all hopes.
Give them a good compensation and benefit package.
Fun at work:
As I said money is not always the solution, fun at work is also important. Only more money can’t motivate the team if you don’t have fun culture in your company. I believe in “Work hard, Play hard” culture, so plan some sporting activities, outdoor trips, different competitions between different teams etc etc… There can be so many such activities, which can act as refreshment for employees.
Help to settle employee life:
What I mean from this is to help employees providing stability in their life. I know this is not going to be a simple task but company can help employees by providing medical insurance, medical facilities to employees. Housing is the first priority of most of the employees. So help them getting good accommodation.