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The pangs of
employee attrition
Employee retention is a top priority for organizations globally. In this highly
competitive world, the cost of employee turnover turns out to be not only very steep,
it also reflects strongly on the fact that organizations are probably not investing
adequately in their people
- by Dr. Poornima Gupta
Dear Sir,
Please accept this letter as notice of my resignation from
the position of assistant manager Production at FCMC.
As per the terms of my employment contract, I will continue
to work for the company for the next one month.
I have enjoyed being a part of the team and am thankful
for the opportunities you have given me during my time
here.
I hope that I can rely on you for a positive reference in
future.
Yours sincerely,
Rajeev Mehra
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September 2015
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Relations and Personnel
Management from a reputed
University. He had met most of
the top management before
coming on board and was
impressed with the close knit
family atmosphere and
commitment to quality.
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1 lakh
10 kg
1 size
1 lakh
7.8 kg
2 size
1 lakh
6.2 kg
3 size
1 lakh
5.8 kg
4 size
1 lakh
4.0 kg
LWP
Absenteeism
Employees
%
2009
451
2.57
2010
630
3.64
2011
305
1.69
2012
397
2.12
2013
739
3.97
2014
1203
6.41
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of May 2014 the comparable
figure was 7.29 hours per machine
per day.
i. Training and
development
Training and development activities
are limited to induction
(orientation) training for contract
workers. It consists of three day
on the job training after which the
supervisor submits a report.
Depending on the report either
the employee is absorbed or is
asked to leave if found
unsatisfactory. More recently some
ad-hoc training for ISO
certification purposes has been
provided to the employees.
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September 2015
Employee survey
Chanda was trying to review some
of the existing policies as well as
develop others.
During the informal discussions
with the workers, Chanda got the
impression that the employees at
FORT CAPS have mixed feelings
towards management. To get a
clear picture a number of
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a number of incentive schemes
which were suddenly withdrawn
without given any reason
immediately after his death in late
2014. The only benefit that
continues to be offered is the
reimbursement of the children's
education at the rate of Rs
300 per child upto two
children for workers
and Rs 600 per child
up to two children for
staff. This scheme has
been found to be
extremely beneficial to
all the employees.
The contract
workers are not made permanent
even though they had given
satisfactory output for more than
two years. This had caused most
of the trained operators to leave
just as a new opportunities came
along. If an employee leaves, no
questions are asked and no
attempt is made to retain trained
employees. While the provision of
overtime exists, and it is equally
distributed, payment of overtime
is not done in time or along with
the monthly salary. For example,
the overtime for the last six
months has not yet been paid.
By and large employees
seemed to be quite satisfied with
the working conditions. they raised
some issues related to working in
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Anjali Byce
Director Human Resources
SKF India
Anjali Byce is the Director Human
Resources at SKF India. She has made
significant contributions including
multiple Business Partnership
programs, implementation of a
culture based HR Strategy, capability
building, Six Sigma and diversity
initiatives. She has also championed
multiple change management
programs. She has worked with Tata
Motors, Allianz Bajaj Life Insurance
Co, Cummins and Thermax.
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ensure 'pay for performance and
skill' will be a long-term
investment. Discrepancies on
payouts linked to experience/ skill
of employees needs to be
corrected. All of these will do
wonders in driving visibility to
principles of 'fairness and
transparency' as a critical
operating culture.
Recruit - train- evaluate promote: Chanda needs to ensure
that every element of people
management is driving the set of
behaviors that will make FCMC a
winning organization.
Having purely a 'buy' strategy
for acquiring talent is not
sustainable. Instead of getting
talent through head-hunting or
recruiting consultants, Chanda
should build a plan to get fresh
talent infused in the company
through college recruits. She can
then top it up with a 'build'
strategy that focuses on capability
building to drive business results.
Capability building of course
should not be construed as limited
to skill building, but also
leadership and people
management. Every line manager
should be trained to be a people
manager (this will have a direct
influence on retention). A
development center approach can
be used. Since most of the
managers (except four) are less
than four years in the company,
Chanda needs to focus on building
a strong leadership talent pipeline
as well.
The workers should be urged
to move towards multi-skilling as
a method that drives transparent
selection and career growth. Not
taking trained contract workers
due to a non-transparent selection
process is not the answer. The
right answer is to build a
transparent selection and
promotion process linked to skill
and consistent performance that
provides a career path to all
trained resources. A natural off
spin, is that multi-skilling will
provide growth and contribute to
business through enhanced
productivity.
A transparent and measurable
Performance management system
should be designed. This system
should measure both - an
employee contribution to overall
company goals and additionally
how these goals were achieved. A
robust feedback mechanism;
institutionalized as a part of
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