 Difference between Attrition and Turnover When does

it happens and Control Measures

Definitions-

Attrition- “A reduction in the number of employees through retirement

resignation or death”

“Rate of shrinkage in size or number”

Whereas

“The Turnover is Number of employees hired to replace those who left or

were fired during a 12 month period in an Organization.”

When does Employee Turnover and Attritions Happens

 There is no set level of employee turnover above which effects

on the employing individuals in organization become
damaging.

 . Everything depends on the type of lab our markets in which

they compete. Where it is relatively easy to find and train new
employees quickly and at relatively little cost (i.e. where the
labor market is loose), it is possible to sustain high quality
levels of service provision despite having a high turnover rate.

 Where skills are relatively scarce, where recruitment is costly

or where it takes several weeks to fill a vacancy, turnover is
likely to be problematic from a management point of view.

 This is especially true of situations in which you are

losing staff to direct competitors
 Where customers have developed relationships with
individual employees as is the case in many professional
services organizations.

 Some employee turnover positively benefits organizations. This

happens whenever a poor performer is replaced by a more
effective employee, and can happen when a senior retirement
allows the promotion or acquisition of welcome 'fresh blood'

. Moderate levels of staff turnover can also help to reduce staff

costs in organizations where business levels are unpredictable
month on month. In such situations when business is slack it is
straightforward to hold off filling recently created vacancies for
some weeks

Factors Affecting Attrition

1) External inequity of compensation

External inequity arises when an employee realizes that

some other employee form different organization put much
less efforts than he does but receive higher compensation
then him these would feel that he is not getting
compensation fairly causes him to quite him the job

2) Working Timing

BPO working timing is odd. Family life affects. Female

attrition rate in this sector is35%.

After marriage comes social and family pressure to adjust

work timing and take care of family
3) Career Growth

Employee look forward to change there job to other places

where they can get better opportunity for their progress also
problem of mismatch of expectation and qualification of
employee. Some see no career and change the job”’ They
don’t change the jobs but change the Boss “

4) Higher Education

These problem arises when employee are pretty young and

aspiring they join the firm becoz of attractive salary but with
time they try to move to other sector or higher education

5) Role Stagnation

Attrition Rate is higher at knowledge level ( middle clerks) in

which employee has to do same work again and again which
makes him work monotonous and due to lack of
responsibility and authority his growth is restricted so move
to other company for different roles.

6) Work Life Imbalance

The scientific approach toward mgmt and organization

resulted in structural hierarchy, Exhaustive specialization of
jobs, deployment of unskilled employees and unfavorable
 work conditions lead to high employee turnover, low
productive and abseentism

7) Lack of Recognisation

When employee feel that he is getting due recognition for his

achievement a feeling of demotivation and these can cause
him to leave the organization

8) Under Utilization of Skills

Proper utilization of skills has a tremendous impact on the

satisfaction of employee if a work Given to an employee it
must be supported by adequate policies and responsibites
which enables to move up the career ladder and when there
skills and policies is being develop they end leaving the job

9) Performance Assent

An Employee may feel disappoint by the performance

appraisal report and feel that he is not been appraised in an
unbiased manner. It may happen that he feels that the
appraisal process and appraisers are biased Then can cause
the employee to put in his papers and leave the
organization.

10) Internal Inequity of Compensation

Internal Inequity occurs when the employee feels that the

amount of efforts he puts in to his job are much more than
what he is rewarded. These cause him to demotivate and
nurture feeling of dissatisfaction and eventually resigning his
job
 11) Business Instability

Many a times when the organization faces some instability

with operations an employee might quit his job before he is
asked to leave When the organization is down size or
acquisitions. Takes place they quite in the worry of whether
the organization will retain them or not.

Control Measures For Attrition

In an Environment of rapid growth, globalization and expansion

the pressure to attract and retain outstanding employee has
become a scary reality for most of the organization

1) Providing something Extra

It’s always about providing something extra to your

employee good salary is something which is a standard in
the industry some perks must be giving to the employees for
good work performance Perks like foreign Tour sponsored
vacations are always welcome gifts

2) Honoring Performance

Performance based incentives is a must is BPO as the

employees get generally picked up with placement hunters

3) Building Relationship

Provide employee with ESOPS which give them feeling that

they are inseparable part of organization
4) HR Practices

HR is a critical department in an BPO Conduction

Recruitment so that right men fits in right position

5) Consider Feedback

To differentiate the work ethics and conduct

There are 2 ways

o Employee Tenur

o Exit Interview

6) Quality of Work Life

Success of organization depends on how it attracts

recruitment, motivates and retains it workforce develop
there talents and gain comminent

Elements Related to QWL

Tasks, Social Environment, Administrative Systems and

Relationships Employee and Employer

7) Transparent Work Culture Serves triggers facilitates

accountability, Trust building, Communications with peers
and seniors

8) Open Door Policies

Employee raises there doubts and feeling straight to

employer
 Frequent mailing, Encloses, Newsletters, Intranet and so
on…
EWAT
Early Warning Attrition Tracker

Divide employees into three categories:

1. Green
2. Yellow
3. Red
Green - who are not looking for a change
Yellow - who might look out after 6 months
Red - who are looking for a change at the moment

Have a discussion with Red ones, try to understand their needs and address.

If u need further info........feel free to discuss

Attrition rate with IT/ITES sector were 20-25% in india

infoys-10%
tcs-9%
niit-15%
hcl-12%

Examples

o ICICI – Initiative taken by the company

Career diversification- Employee with more than 18

months service are switched to positions in ICICI Group

o After passing the Internal test in BPO industry, skills like

customers full illness an rapid responses to customers
problems have wide application in competitative
markets.

o Neil Soft- Provides Crèches Facilities

o Wipro – Medical Insurance for their employee 24 hours

medical facilities

o Trans works information Services and Zenta

Technologies
 Accommodations to their senior staff and are
Competent for there lower level staff paying entire
deposit amount for flats or certain% of Registration fees

o Federal Express-Believes spotting talent and investing

Employee with leadership or management potential .

Graphical Representation Of Attrition Rates in Different

Sectors:-