[MTC Global] Employee Attrition Reports?

Write up shared byMr. Annappa G, HR Expert:

HOW EMPLOYEES ATTRITION REPORTS FAIL THE SANITY TEST?

You see a typical pie chart of any attrition analysis, it slices the  reasons for exit into 3 to 4 broad categories.:  Better Options Outside,  Compelling Personal Reasons, Higher Education, Own Venture, etc.  But how are we sure that these are reasons that caused employee exit? 

There are factors from employee side as well as Organisation side that limit the sanity of attrition analysis. Let me explain them.  
Employee Factors:

Take a case of an employee who, for some reason, happens to strain his  relationship with his Manager. Consequently, his Manager becomes  unsupportive. This makes the employee's continuance in the Organisation  tough. He eventually finds an alternative job outside and leaves the  Organisation.

What do you think he would cite as the cause for his exit? Most of them, from my view, would prefer to cite better opportunity outside as the cause, over the strain in relationship. Why do they do so?   There are several reasons for this
Gracious Exit:

1. Employee prefers to go out graciously without ruffling the feathers.

2. Employees prefer to cite PULL factors over PUSH factors:

Citing a PULL factor (factors that attract an employee into  prospective Organisation) like better salary, better position or  better growth would reflect positively on employee's market value  and demand, while the PUSH factors (factors that push an employee out  of his current Organisation) like strain in relationship with Manager,  or denial of promotion or lesser increment, etc., if cited as  reasons, would negatively reflect on his capabilities and performance.

3. Background Verification:

Employees would like to keep their record withthe current employer  as positive as possible, so that if there is a background verification  by the prospective employer, there are no negatives recorded.

Organisational  Factors:

1) Intent of Attrition Analysis:

Most important among the Organizational is the intent or objective  of attrition analysis. If the intent is just to send a monthly report to senior management, then one cannot expect any serious efforts to  unravel the truth. 

On the other hand, if the intent is to make a serious introspection  at Organizational level to find rough patches and clean them up, then  the expectations would force a deep-cut analysis. Such an honest  intent and introspection would create trust and confidence among  employees that they are valued in the Organisation and empower  them to be frank with their issues and concerns. This would also  make Managers to be extra sensitive towards their reports, which  can avert many potential exits.

2. _Role HR plays:

The other critical Organizational factor is the role of HR. A friendly, mature and committed HR can play a vital role in  sensing issues and resolving them proactively before they can escalate  into exits. 

On the other hand, a mere compliant HR will just be  satisfied with reporting whatever cited in exit discussions and  will not gain the trust of employees to be frank.

3. Exit Norms:

Tough exit norms like service of full notice period,  mandatory completion of projects on hand and/or inducting the incumbent  employee before getting relieved, may force the employees to hide the  real cause and search for certain emotional and compelling personal  reasons to get a smoother exit. 

It could be ageing parents  necessitating the employee to return home and take care of family  business or an ailing parent needing ward's personal attention, etc. Such reasons sometimes may be able to get a smoother release for  the employee, but it would not be long, in these days of LinkedIn  and other social media, before one could find out if he joined any  other Organisation. Even if he did so, on exit records, the cause  remains unchanged with compelling personal reason.

4. Exit Discussions:

Organisations normally have a specified person to  conduct exit discussions on a specific format that may not be incisive  enough to dig out real cause behind exit. What could help Organisations is to find a right person in each case, with whom  the employee would be emotionally comfortable. 

At the same time, the person should be mature enough to traverse beyond specified  format and dig deeper to elicit the exact cause for exit..

With all this, it is possible to sanitize our attrition analysis, if we make each of exit a trigger point for serious introspection  at Organizational level, which requires a robust process to ensure  we get deeper into the root-causes and find remedial measures backed  by sincere execution.
Best wishes 
Dr A Jagan Mohan Reddy
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