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Just to complement what Dave Jeff has just said...

Money is important for people to work and make a living; however, there are a few things that contribute to retaining people. Employees would like to be respected, expect fair treatment, need to feel proud, and have to feel secure in their jobs. Remember, they have a personal life too, so they should be assisted in balancing their work and life. You can't afford to have them stressed at work because they need to maintain good mental and physical health. They should not be micromanaged; instead, they should be helped to deliver by being encouraged and coached. They need to be appropriately trained to improve their skills to meet and surpass the competition. Finally, they need to feel celebrated.

From India, Hyderabad
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Employee attrition rate becomes a huge challenge in every industry. A company should take generalized feedback from every department every month to understand their employees' needs. Additionally, top management should maintain a trust factor, value proposition, focus on career growth, and provide compensation (dependent on employee performance) to sustain their employees for a long period of time.
From India, Delhi
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Programmers care deeply about remaining relevant, so it's important to cater to that need by providing training programs and sending them to conferences, which can help them remain relevant and grow.

It is important for programmers to develop skills that help them face clients directly. If you can facilitate that based on seniority, it would be helpful. The idea is to let juniors have a clear view of where they are heading.

One of the primary reasons for attrition is usually unrealistic expectations. This often occurs when management staff makes unrealistic promises to clients and expects the technical staff to deliver. Client interface needs to have proper technical advisory so that the promises made are realistic.

Technical people are usually very capable of keeping a lookout for better opportunities, primarily online. Have them focus on clear goals and rewards within the company.

Brand matters. Develop a name in the industry for whatever your company does. Without that, you will only attract people looking to stay employed while they look for better opportunities.

Projects matter. Who is assigned to which project is crucial. Make sure you are pushing the right people to the big projects, and the reasons are fair and known. If anyone feels alienated, they will leave.

The recruiter needs to have some technical knowledge when recruiting technical expertise, even at the initial stages. This will create a filter for people generally looking to fill gaps in their career while they search for better opportunities. It would be a good idea to find and involve someone from the technical team in recruiting. This can additionally make the technical team members feel involved in the company processes and help reduce attrition.

From India, Gurgaon
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I work in an IT Services and Consulting firm. As these days, employees are being poached or they are leaving on their own so frequently, we have decided to have a retention policy. Kindly help me in framing one.
From India, Gurgaon
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