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Murthy Palakodeti

Attrition today is a gnawing problem but effective management of the issue definitely helps to some extent.

It is today an established fact that attrition is plaguing the IT, BPO and other industries. The reasons for this trend are market-centric thinking on the part of employees, who are better informed than ever before about the progress of the economy and that smart career moves bring quick riches. This results in the free flow of information on career prospects and rapid advancements. People seem to have re-defined the old maxim to read: Rolling stones gather no mass!

New mantra

Concepts such as loyalty and life-time employment are being given the go-by. Faster, better and quicker are the criteria for progress. Terminal benefits such as PF and gratuity, which drove the earlier generation, are no longer attractive. Drucker's principle of "Planned Abandonment" seems to be the modern mantra. Employees do not want to stick to one job or career path and systematically hone their skills to be able to move on.

And they certainly have an array of choices, so they can pick and choose and move ahead, all of which is accepted professional behaviour. In IT, especially in an ERP context, people often work far from their home-towns, and keep hoping to move back. At the same time, if there are no onsite (read abroad) postings, the attrition coefficient works adversely for the company.

What to do about attrition?

First and foremost is to accept the fact that attrition is here to stay. While a higher pay could be one way to remedy the attrition problem, one must understand that it does affect the company's bottom-line and, also that money is not always everything.

Attrition must be treated as a management problem and not only as a `numbers' issue. Always monitor the employees' pulse and check for warning signals. Have frequent formal and informal interactions with the staff to gauge their mood. Appreciate genuine work, however small it may be. Recognise the employee quickly, and in public.

Instant reward

Instant reward in cash or in kind is in place. Do not wait till the completion of the project. Important milestones achieved, major wins and kudos from customers must be announced at once and the team . The rewards might range from a small gift voucher to an I-Pod to an expensive holiday for the team. Anything to ensure that the staff stay motivated and bonhomie prevails.

The advantage of a small organisation is that it provides opportunities to work in uncharted areas. There are hardly any barriers and employees have free access to those working in other related disciplines and this gives rise to cross-functional teams.

Empowering potential leaders at an early stage in their career enhances their commitment to the company and often motivates them to stay with the company. Treat employees as co-creators of value and show this in action. Liberal bonuses for longer associations, long service awards, handed over in the presence of the staff-members' families will make them rededicate themselves to the company's future.

(The author is General Manager (Strategy and Operations), SEAL InfoTech Pvt Ltd. The views are personal.)

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