The Hindu Business Line : Perot works on loyalty factor in HR practices

Bangalore, July 6 While the Human Resource department in most companies is finding ways to beat the attrition challenge, Bangalore-based software services firm, Perot Systems, has decided to shift its focus from attrition to retention.

The company’s ‘Voice of Associates’, a study of top performers - about 750 people- who have stayed on for more than five years, revealed factors that drive their loyalty.

The study, done through surveys, focussed group meetings and one-on-one meetings, also indicates a pattern in retention and the company plans to strengthen those factors by institutionalising them, according to Dr Pallab Bandhyopadhyay, Vice-President and Head, HR, Asia Pacific, Perot Systems.

What fits

The study is based on the person-environment fit model which gives out not only individual behaviour but also organisational behaviour, with a focus on attraction, retention and attrition on the basis of the fit achieved by the associate in that environment.

The company has used the retention factor to its advantage in its recruitment process too.

In the last three months, Perot Systems has doubled its hiring numbers through employee referral programmes, cutting down substantially on consultant referrals.

Over 48 per cent of the recruitment now happens through employee referrals while it was about 28 per cent earlier, and consultants who contributed to about 32 per cent of the hiring needs now give only 13 per cent of the new hires, says Dr Bandhyopadhyay.

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