Is there any method of control the attrition rate in a manufacturing company?

In todays scenario,Attrition is one of the major problems companies are facing & this is not with any specific sector, but everywhere.could you contribute new ideas for controlling the growing attrition rate.

It is not possible to control inspite of so many prescriptions in the popular press. Honestly, when somebody wants to leave, inspite of good pay package, inspite of many benfits planned, inspite of good mission and vision of the company, inspite of being fair and good in treating, still he/she will leave. I am not skeptical but realistic. You can to some extent manage, anticipate with your informaiton skills, and ensure that some stability in the staff.
By the way, what mechanism do we have to stop people when there are plenty of opportunities suitable to the needs of the people.

One way to some extent contorlling is possible that is companies have to network and prevent.

„Ï Enhancing employee involvement and engagement :
Exploring how to learn together invites participatiom, which is a key concept to retain employees. Many of the organizations also have culture of employee participation in decision making which not only motivates the employee but also adds to its commitment towards the organization.

„Ï Compensation survey :
Salary survey of similar kind of companies or same turnover companies must be taken into account to match the salary structure with market rates. It will help to retain the employees.

„Ï PMS :
The incentives given to employees must be based upon the performance + experience + loyalty, so that it is done fairly and all key aspects are included.

„Ï Recruitment and Selection :
Recruitment and selection procedure must be enlarged and also made strict so that right person is selected on right time with right skills and right knowledge.

„Ï Training and Development :
Training must be given in work related area and a proper system must be developed to measure effectiveness of training program so that the worth of training can be determined. Also steps must be taken for longterm development of employees viz, learning organization, knowledge management.

„Ï Monetary Gifts:
Monetary gifts along with a momento can be given to employees who have been loyal for years. This will induce other employees to retain in order to achieve that status and gift. Long term loyalty awards can also be given.

„Ï Keeping ¡§ young and the restless generation¡¨ committed :
young generation,which is less committed, special attention must be given to this group. Introspection of skills and capabilites of this group and retaing them with monetary or non-monetary benefits will help to develop commitment among them.

„Ï Role of HR :

„« HR can make a vital difference by ensuring effective communication.

„« Raising Self-Esteem :-
Self-Esteem" which is a positive self-regard emerges from the concept of ¡§self¡¨ which is an important dimension of personality. It means we regard ourselves highly. .If we do that we expect more out of ourselves. It is a process which often results in more impressive achievements arising out of greater expectations out of ourselves .It is in this sense that it becomes an auspicious circle of ¡¥expectations¡¦ and ¡¥achievements¡¦ and ¡¥achievements¡¦ to further ¡¥expectations¡¦.

Role of HR executives in developing self-esteem can be in following ways :-

Recognizing the contributions of outstanding achievers will induce others to try hard . Criteria for selecting outstanding achievers should be transparent . Effective HR measures in the areas of training ,career development etc, equip the workforce better on the professional front and also increases their self-esteem .,confidence, morale and motivation .

Swati, you have given really wrthfull points for controlling attrition, its very useful!

Hi Anjali

I came across these points for controlling Attrition. They should be helpful to you:

1. Offer fair and competitive salaries. Fair compensation alone does not guarantee employee loyalty, but offering below-market wages makes it much more likely that employees will look for work elsewhere. In fact, research shows that if incomes lag behind comparable jobs at a company across town by more than 10 percent, workers are likely to bolt. To retain workers, conduct regular reviews of the salaries you offer for all job titles — entry-level, experienced staff and supervisory-level. Compare your department's salaries with statistically reliable averages. If there are significant discrepancies, you probably should consider making adjustments to ensure that you are in line with the marketplace.

2. Remember that benefits are important too. Although benefits are not a key reason why employees stick with a company, the benefits you offer can't be markedly worse than those offered by your competitors

3. Train your front-line supervisors, managers and administrators. It can't be said often enough: People stay or leave because of their bosses, not their companies. A good employee/manager relationship is critical to employee satisfaction and retention. Make sure your managers aren't driving technologists away. Give them the training they need to develop good supervisory and people-management skills.

4. Clearly define roles and responsibilities. Develop a formal job description for each title or position in your department. Make sure your employees know what is expected of them every day, what types of decisions they are allowed to make on their own, and to whom they are supposed to report.

5. Provide adequate advancement opportunities. To foster employee loyalty, implement a career ladder and make sure employees know what they must do to earn a promotion. Conduct regular performance reviews to identify employees' strengths and weaknesses, and help them improve in areas that will lead to job advancement. A clear professional development plan gives employees an incentive to stick around.

6. Offer retention bonuses instead of sign-on bonuses. Worker longevity typically is rewarded with an annual raise and additional vacation time after three, five or 10 years. But why not offer other seniority-based rewards such as a paid membership in the employee's professional association after one year, a paid membership to a local gym after two years, and full reimbursement for the cost of the employee's uniforms after three years? Retention packages also could be designed to raise the salaries of technologists who become credentialed in additional specialty areas, obtain additional education or take on more responsibility. Sign-on bonuses encourage technologists to skip from job to job, while retention packages offer incentives for staying.

7. Make someone accountable for retention. Measure your turnover rate and hold someone (maybe you!) responsible for reducing it. In too many workplaces, no one is held accountable when employees leave, so nothing is done to encourage retention.

8. Conduct employee satisfaction surveys. You won't know what's wrong ... or what's right … unless you ask. To check the pulse of your workplace, conduct anonymous employee satisfaction surveys on a regular basis. One idea: Ask employees what they want more of and what they want less of.

9. Foster an environment of teamwork. It takes effort to build an effective team, but the result is greater productivity, better use of resources, improved customer service and increased morale. Here are a few ideas to foster a team environment in your department:
• Make sure everyone understands the department's purpose, mission or goal.
• Encourage discussion, participation and the sharing of ideas.
• Rotate leadership responsibilities depending on your employees' abilities and the needs of the team.
• Involve employees in decisions; ask them to help make decisions through consensus and collaboration.
• Encourage team members to show appreciation to their colleagues for superior performance or achievement.

10. Reduce the paperwork burden. If your technologists spend nearly as much time filling out paperwork, it's time for a change. Paperwork pressures can add to the stress and burnout that employees feel. Eliminate unnecessary paperwork; convert more paperwork to an electronic format; and hire non-tech administrative staff to take over as much of the paperwork burden as is allowed under legal or regulatory restrictions.

11. Make room for fun. Celebrate successes and recognize when milestones are reached. Potluck lunches, birthday parties, employee picnics and creative contests will help remind people why your company is a great place to work.

12. Write a mission statement for your department. Everyone wants to feel that they are working toward a meaningful, worthwhile goal. Work with your staff to develop a departmental mission statement, and then publicly post it for everyone to see. Make sure employees understand how their contribution is important.

13. Provide a variety of assignments. Identify your employees' talents and then encourage them to stretch their abilities into new areas. Do you have a great "teacher" on staff? Encourage him/ her to lead an in-service or present a poster session on an interesting case. Have someone who likes planning and coordinating events? Ask him to organize a departmental open house. Know a good critical-thinker? Ask him/ her to work with a vendor to customize applications training on a new piece of equipment. A variety of challenging assignments helps keep the workplace stimulating.

14. Communicate openly. Employees are more loyal to a company when they believe managers keep them informed about key issues. Is a corporate merger in the works? Is a major expansion on the horizon? Your employees would rather hear it from you than from the evening newscast. It is nearly impossible for a manager to "over-communicate."

15. Encourage learning. Create opportunities for your technologists to grow and learn. Reimburse them for CE courses, seminars and professional meetings; discuss recent journal articles with them; ask them to research a new scheduling method for the department. Encourage every employee to learn at least one new thing every week, and you'll create a work force that is excited, motivated and committed.

16. Be flexible. Today's employees have many commitments outside their job, often including responsibility for children, aging parents, chronic health conditions and other issues. They will be loyal to workplaces that make their lives more convenient by offering on-site childcare centers, on-site hair styling and dry cleaning, flexible work hours, part-time positions, job-sharing or similar practices. For example, employees of school-age children might appreciate the option to work nine months a year and have the summers off to be with their children.

17. Develop an effective orientation program. Implement a formal orientation program that's at least three weeks long and includes a thorough overview of every area of your department and an introduction to other departments. Assign a senior staff member to act as a mentor to the new employee throughout the orientation period. Develop a checklist of topics that need to be covered and check in with the new employee at the end of the orientation period to ensure that all topics were adequately addressed.

18. Give people the best equipment and supplies possible. No one wants to work with equipment that's old or constantly breaking down. Ensure that your equipment is properly maintained, and regularly upgrade machinery, computers and software. In addition, provide employees with the highest quality supplies you can afford. Cheap, leaky pens may seem like a small thing, but they can add to employees' overall stress level.

19. Show your employees that you value them. Recognize outstanding achievements promptly and publicly, but also take time to comment on the many small contributions your staff makes every day to the organization's mission. Don't forget — these are the people who make you look good!

Dear Dinesh,

Very valuable suggestions. These are useful for all.

Thank you very much.

Swapna

One possible solution could be...

***Applicable to only relocating employees

Each and every Company should give the accommodation facilities to the employees who are relocating OR getting transferred.

It is really very difficult to find a house in a strange place. Companies provide with the guest house facilities for few days. But sometimes it is really not helpfull enough.

Attrition is a problem which is being faced by all the sectors.
A employee never thinks about the consequences and the losses the company will face. A basic solution is to make the candidates sign a bond and introduce some programmes where you can bring awareness about attrition and what the company goes through.
In this way the candidates will also feel loyal to the company and will think 100 times bofore leaving the current job and hopping on to another job.

There is nothing known as loyalty these days.
everybody just runs behind money.
These days no candidate picks up a co. that puts forth the bond funda.
Pay the employee well and increase the employee welfare fund.
this is the best way one curb attrition.

I agree with Lata.

The thing is you OVER-PRICE them.


Thank You..........

I don't think we should over-price an employee to control attrition.
Attrition is something which should be controlled keeping in mind the budget of the company too.