Higher Employee Engagement Today Does Not Necessarily Reduce Attrition

http://blog.nasscom.in/emerge/2008/09/01/higher-employee-engagement-today-does-not-necessarily-reduce-attrition/

The story about Employee Attrition in India - a Special Coverage in Business Today

THE FIRST SIGNS APPEARED IN the mid-90s with the advent of the software services industry. By the turn of the century, this problem had reached epidemic proportions as the IT industry matured and ITES-BPO sector kicked into high gear. We’re, of course, talking about attrition, a crippling HR headache that has plagued organizations across India Inc. Although attrition has been spiraling out of control for some time, especially in fast-growing industries such as IT, BPO, retail and infrastructure, few companies have been willing to discuss this hot button issue, instead preferring to sweep it under the carpet. What was a problem restricted to just a couple of sunrise sectors has today become a widespread problem. While dozens of surveys were conducted on the rise and rise of attrition in Indian industry, few have been able to get to the heart of this menace and suggest meaningful and long-term solutions.

While attrition in India Inc. is high as 20 per cent (up to 40 per cent in the booming services sector), it is now accepted that the decision to quit rarely happens overnight. Initiatives such as exit interviews have become de rigueur across industries, but results are not yet fully understood. Even today, there isn’t a single comprehensive survey that provides an in-depth look into the reasons behind growing attrition and provides meaningful and sustainable solutions to this problem.

To try to address these issues, Business Today has teamed up with PeopleStrong, an HR outsourcing provider and, for the first time, plans to survey at least 100 companies across 12 sectors for the “India Attrition Study 2008.” Already, 50 per cent of this capacity has been filled and companies across industry are queuing up to participate. This study will use three methods—exit survey, employee voice and people processes to cover—to collect data. Then using PeopleStrong’s ADIEU (Affiliation, Development Initiative, Employability and Work Environment) model, this data will be analysed to crystallise findings on attrition. The results of this study, including Predictive Practices and Employee Experience Scores, will be published in one of Business Today’s forthcoming issues, and will lead to the emergence of best practices to curb attrition.

Original Stories on Business Today.