ABSTRACT yet there are situations where their expectations

 

ABSTRACT

Employee turnover is a serious issue which is
prevailing and it is the scaling down of employees in the organization. This
may be voluntary and it occurs because of resignation, retirement or death of
an employee. The employees try to leave the organization due to many reasons like
he is attracted towards higher package, increasing the status of their
positions in some other company or he may want to change his profession and
start a new business and there is a lot of career growth opportunities
incorporated. This scenario is booming now in IT sector. This situation is
mostly common among the young professionals who are under the training session
and they try to compare with the other organizations and easily jump to it
within a one year span. It lies in the hands of the recruiter who is hiring the
staff for their company. It has been keenly observed that the job opportunities
are more in number than the skilled employees i.e. demand is more than supply.
Due to high employee turnover, cost of the organization increases due to new
recruitment and providing them proper training and development, identifying
their specialization and also it directly affects productivity and disturbs
teamwork and team spirit. This paper aims to explain why Indian IT sector like
Surya Informatics Solutions is facing high employee turnover and some of the
retention strategies to avoid or reduce the turnover rate. This study is an
outcome of the topic called “A Study on Employee Turnover and Retention in
Surya Informatics Solutions”. The main objectives of this study is to know the reasons,
why employee turnover occurs, to identify various factors which make employees
dissatisfy towards their work and environment and to find the areas where IT
industry like Surya Informatics Solutions is lagging behind and what are all
the remedial measures to be taken to retain the employees in the organization
to portray their goodwill in the society.

Keywords: Employee Turnover, IT industry, Retention Strategies.

 

1. INTRODUCTION

Employee turnover is defined as when an employee voluntarily leaves
the organization by handing over his resignation or he may leave the
organization because of his retirement or an unusual occurrence of his death
probably. The rate of shrinkage of number of employees in an organization is
known as turnover. The employees do perform all the services to the
organization and yet there are situations where their expectations are not
fulfilled and it’s the scenario where they try to quit. The causes of employee
turnover in Indian IT sector may be either voluntary or involuntary. Firing an
employee may be an involuntary turnover taken by the management due to his
misbehavior. Neither the organization nor the employer have no direct control
over how many potential employees are lost due to turnover.

There are many causes of employee turnover, it may be dissatisfaction
with company, quit due to higher positions in other companies or may be due to
death. Turnover of a potential employee can bring huge losses to an
organization as a whole. Therefore turnover can be very costly to the
organization because it takes lot of time and effort, resources to train and
develop employees, so that they work effectively and efficiently for that
particular organization and in case employees leave their jobs it cause great
loss to the company because then they have to train another employee with all
the sources again. That is the reason why organizations are in a motive to
retain potential employees by improving their policies in favor of the employee
to an extent.

The prominent reason for employee turnover in an organization are a
lot more and may be the probability is measured at each exit of an employee to
achieve the retention rate. Some employees leave their organization due to
location preference and they get a lot of stress during the travelling time and
it may be lead to inefficient work of the employee. Sometimes they feel that
they are doing monotonous work and get tired and bored because of the
repetitive nature of the work where the employees expect a change in their
working climate so the outcome will be positive.

Turnover varies according to the nature of business, the level of
the employees and the nature of the responsibility shouldered by them. Obviously,
the discomfort experienced by the employees and the functional incompatibility
between management and the employees are the main drive factors for the
employee turnover. Sometimes there are situations where an employee finds that
he is not able to cope up with his colleagues and superiors. Or he finds
himself totally out of tune in his functions with the employee’s functional
requirement, failing to rise to the employer’s expectations.

There exists a scenario in almost all the organization where the
employee is left with lack of career option and he feels that there is no
growth of opportunity prevailing rather than sustaining in the same field. Sometimes
the skewed timings are totally inconvenient for the employees to work with. There
is a lot of job stress going on and is characterized as internal, external or
even personal problems.

Lack of investment by the organization in employee development
plans, there is no place for technological up gradation and innovation will
make the employees feel low and when there is always a passive approach from
the organization, the employees feel that they are still in dormant stage and
there is no way in improving their career and automatically they tend to leave
the organization.

When the responsibilities of an employee is not defined properly by
the organization he is not able to achieve the target within the stipulated
time and there arises conflict among their team members which is naturally a
driving factor to stress and absenteeism. The mutual relationship which has to
be prevailed within the management and the employee is broken down gradually.

Ignoring a deserving employee at the time of promotion and not
noticing and giving importance to his achievements will eventually affect his
future engagement of work. This is also an important factor in employee
turnover when there is lack of motivational factors and moreover favoritism is
the blocking factor between the skilled and unskilled employees.

Retaining employees is a critical and ongoing effort. One of the biggest
challenges every organization is facing in retaining skilled and highly
experienced employees and it always stick with the manager’s responsibilities. Employee
requires reinforcement, direction and recognition to grow and remain satisfied
in their positions. Managers must recognize this and understand that
establishing such fundamentals demonstrates their objectives to support nature
and motivate their employees.

Establishing career development institute and indulging employees
in growth opportunities will mould them to become a better employer. When there
is acknowledgment in the achievement of the employees, this will be reflected
in the employee engagement and in turn leads to commitment and retention rate
increases naturally.

In order to retain a potential employee he should be pinned with 3R’s
namely Respect, Reward and Recognition. When all these are channelized properly
there will not be any critical scenarios prevailing in the organization to
retention.

“Stay interviews” will help the managers and the organization in
enabling a positive approach in reducing employee turnover by formulating
policies and plans by bringing in attractive salary, beneficiaries, retention
bonus to the employees who stay longer and loyal towards the organization.

The organization is trying to reduce the cost of hiring an
employee, giving training and development by hiring a specialist. So to
overcome this new strategies are to be followed to retain the employees by
reducing the factors of employee turnover and analyzing the personal factors
like career growth ,family mobility, marriage and there are few people who get
bored and fatigued easily and frequently by changing their jobs.

Job related factors like the nature of job and the roles and
responsibilities of the employee has to be mentioned with clarity. When there
exist bad boss and the management style is not pleasing to his personality
there will turnover from the employees by absenteeism. When the decision making
is not independent and further more there is no support from the team members
the employee will tend to quit the organization and look for better status in
other organization.

Economic factors like salary, fringe benefits, housing and
travelling facilities are to be framed according to the convenience of the
employees probably to reduce the turnover rate.

These are the various factors and strategies that are present to
overcome the turnover rate of the employees and by looking onto the working
environment, career development of the employees, monetary satisfaction and
managerial aspects like recognition of achievements, appreciation will tend the
employees to retain in the same organization.