Saturday, August 11, 2007


Attrition: A reduction in the number of employees through retirement, resignation or death.
It is assumed that every employee would love their jobs, like their coworkers, work hard for their employers, get paid well for their work, have an excellent , and flexible schedules so they could attend to personal or family needs when necessary, thereby never leave.However, in reality the biggest concern and challenge for an HR Manager is ATTRITION.

Common Reasons for attrition:

· Odd Work timings with night shifts being one of the most common reasons
· Compensation and benefits
· Monotonous work or no autonomy of work
· Company policies
· Lack of Career growth
· Strained relations with co-workers or seniors
· Dissatisfactory training facilities or work surroundings.

Unlike its counterparts the HR Manager in the BPO Sector sector has to bridge the ever increasing demand and supply gap of professionals. In the BPO Sector the HR professionals have to find the right kind of people who can keep pace with the unique work patterns in this industry. Adding to this is the issue of maintaining consistency in performance and keeping the motivation levels high, despite the monotonous work.

The toughest concern however for a HR Manager is to control the Attrition Rate.

Attrition Rate: "the rate of shrinkage in size or number"

Staff attrition (or turnover) and absenteeism represent significant costs to most organizations. It is odd, therefore, that many organizations neither measure such costs nor have targets or plans to reduce them. Many organizations appear to accept them as part of the cost of doing business - a sign of increasing job mobility and decreasing staff loyalty perhaps, a matter to be regretted but just 'one of those things.' They add a sum in their budgets for 'temp staff' and 'recruitment' and forget about it.
The attrition rate in the BPO Sector in India is as high as 35%.
However, it is one area where an HR can make a difference - and one that can be measured in quantifiable, financial terms against targets.

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