Human Capital Musings!

a peek into the human capital world…

Are we right-sizing attrition?


With the advent of the Gen Y employee composition, attrition is one thing that keeps haunting any talent management/HR professional, in any part of the world. May be, this challenge is more pronounced for the HR pro who is in an India or China or Philippines, the famed off-shoring destinations of choice.

Too often, we keep seeing HR bodies and top employers dishing our statistics about the rate of their attrition, and how well it is contained or well within acceptable standards or international norms. One always wonders if there are any stated accepted norms which say so much % of employee attrition is healthy for the competitive survival of the organisational animal.

Here, is’nt it important that for competitive survival, rightsizing attrition would be a more appropriate and relevant objective. We must be hearing HR people and employers state that, for this fiscal we have achieved the goals of rightsizing the attrition which will have a positive contribution to the top-line and bottom-line of the organisation.

With right-sizing as a HR and organisational objective, the tasks also get inseparably tied with the performance management process, putting in place the systems for an effective performance improvement program (whatever be your organisational nomenclature) – one that is clearly focused on measurably improving individual contribution, and then planning the exit management of those whose goals and skills are not in alignment with the organisation goals.

Assuming that the Jack Welch theory on  the effectiveness of people in the organisational pyramid stands, the minimal healthy attrition rate is 10-15%, depending upon factors like the type of industry, skills sets, engagement factors and so on.

When right sizing attrition is in play, with the combination of all HR factors and tools, on the bottom percentile of non-performing or under-performing employees, the HR program interventions make some % of this bottom to move up one notch – make them  as acceptable level of performers.

Then, the resulting attrition related information gets stated like this – In our employee strength of so many people, about 200 were seen to performing below acceptable standards; thanks to our effective HR programs and interventions, we could move 70 of them into the ‘desirable performance zone’. By this, we could rightsize attrition to so many percentage, which we deem as desirable owing to factors that are unique to us an as employer!

The rightsized attrition figures also give a whole different perspective to the way attrition is looked at, from the organisational perspective.

Lets now on get to right-sizing attrition that the usual fight to bring down attrition.

 

 

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