Hi,
I am a student doing my MBA. At present i am doing a summer job for A LOGISTICE CO. The company is facing huge attrition. It has asked us to do a compensation survey to find out where it stands in terms of compensation. Assuming that compensation is the reason why employees are leaving the company.
Please tell me what else, apart from a compensation survey, should I do to study the reasons for attrition in the company.
JOAN
From India,
I am a student doing my MBA. At present i am doing a summer job for A LOGISTICE CO. The company is facing huge attrition. It has asked us to do a compensation survey to find out where it stands in terms of compensation. Assuming that compensation is the reason why employees are leaving the company.
Please tell me what else, apart from a compensation survey, should I do to study the reasons for attrition in the company.
JOAN
From India,
Joan,
I'd strongly suggest to you that although compensation may be a factor, there are obviously other issues at work here.
First, look at the direction of the company. Is it well managed? Is there proper communication between the leadership and the subordinates? Are the employees valued for their contribution and are they able to achieve goals? Are each of the employees goal oriented?
Next, assess where the leadership of the company is steering the business. Do each of the employees see where their individual efforts are contributing to the good of the whole? Is there any opportunity for advancement?
Finally, look at the compensation package as it compares to equivalent positions in the industry. I once had a situation where a government project was paying three times the amount of money my client was able to pay in the marketplace--we were competing for the same employee base. It was impossible to move the payscale of the client to match, pay for pay, the government project payment scale.
We learned, very quickly, that every aspect of compensation is not tied directly to money payments. A sense of self worth and a sense of accomplishment are strong drivers in the marketplace.
Email me directly with some of the answers to the questions you must have, and I'll attempt to assist you as I'm able.
Cheers!
Alan Guinn, Managing Director
The Guinn Consultancy Group, Inc.
From United States, Bluff City
5I'd strongly suggest to you that although compensation may be a factor, there are obviously other issues at work here.
First, look at the direction of the company. Is it well managed? Is there proper communication between the leadership and the subordinates? Are the employees valued for their contribution and are they able to achieve goals? Are each of the employees goal oriented?
Next, assess where the leadership of the company is steering the business. Do each of the employees see where their individual efforts are contributing to the good of the whole? Is there any opportunity for advancement?
Finally, look at the compensation package as it compares to equivalent positions in the industry. I once had a situation where a government project was paying three times the amount of money my client was able to pay in the marketplace--we were competing for the same employee base. It was impossible to move the payscale of the client to match, pay for pay, the government project payment scale.
We learned, very quickly, that every aspect of compensation is not tied directly to money payments. A sense of self worth and a sense of accomplishment are strong drivers in the marketplace.
Email me directly with some of the answers to the questions you must have, and I'll attempt to assist you as I'm able.
Cheers!
Alan Guinn, Managing Director
The Guinn Consultancy Group, Inc.
From United States, Bluff City
Hello Joan:
>I am a student doing my MBA.<
A worthy study in my opinion.
>i am doing a summer job for A LOGISTICE CO.
tHE CO IS FACING HUGE ATTRITION.<
What do you consider huge? Our clients considet anything over 10% to be too high.
> iT HAS ASKED US TO DO A COMPENDSATION SURVEY TO FIND OUT WHERE IT STANDS IN TERMS OF COMPENSATION.<
That is easy to do. How many job applicants withdraw their applications after they learn what it pays?
What percentage of new hires quit or get fired before their first scheduled pay review?
What percentage of employees quit or get fired after their first pay increase?
>ASSUMING THAT COMPENSATION IS THE
REASON WHY EMPLOYEES ARE LEAVING THE COMPANY.<
Why do we assume that?
>TELL ME WHAT ELSE, APART FROM A
COMPENSATION SURVEY, SHOULD I
DO TO STUDY THE REASONS FOR
ATTRITION IN THE COMPANY.<
Hire and outside firm to conduct interviews with former employees about 60 days after their last day. Former employees must be reassured that their former supervisors will not see their responses.
Unless your company is really unusual compensation isn't the reason for their huge attrition rate.
Be aware, managers seldom see themselves as the reason their employees quit.
From United States, Chelsea
>I am a student doing my MBA.<
A worthy study in my opinion.
>i am doing a summer job for A LOGISTICE CO.
tHE CO IS FACING HUGE ATTRITION.<
What do you consider huge? Our clients considet anything over 10% to be too high.
> iT HAS ASKED US TO DO A COMPENDSATION SURVEY TO FIND OUT WHERE IT STANDS IN TERMS OF COMPENSATION.<
That is easy to do. How many job applicants withdraw their applications after they learn what it pays?
What percentage of new hires quit or get fired before their first scheduled pay review?
What percentage of employees quit or get fired after their first pay increase?
>ASSUMING THAT COMPENSATION IS THE
REASON WHY EMPLOYEES ARE LEAVING THE COMPANY.<
Why do we assume that?
>TELL ME WHAT ELSE, APART FROM A
COMPENSATION SURVEY, SHOULD I
DO TO STUDY THE REASONS FOR
ATTRITION IN THE COMPANY.<
Hire and outside firm to conduct interviews with former employees about 60 days after their last day. Former employees must be reassured that their former supervisors will not see their responses.
Unless your company is really unusual compensation isn't the reason for their huge attrition rate.
Be aware, managers seldom see themselves as the reason their employees quit.
From United States, Chelsea
Too often Management tends to "throw money" at the problem. If your compensation/benefit package is fair and appropriate for your business/industry, it should be left alone.
Obviously, compensation is one factor in attrition. Others are lack of respect/appreciation; recognition of job performance (one "attaboy" goes alot farther than $$$); job has lost interest, employee no longer challenged; passed over/ignored for promotion; personal problems, at home/at work, and the like.
I suggest that your institute an "exit interview" process. Current employees who are contemplating leaving should be handed a survey and envelope before they depart. If no response after two (2) weeks from departure date, a follow-up letter/postcard should be sent. Employees who have left should be sent a survey, with a stamped return envelope, addressed to "Consultant", PO Box xxx, your town, your state.
Using this approach, employees will feel that a neutral third party has been retained to analyse the responses and make appropriate recommendations to management and will be more willing and forthcoming in their views/opinions.
The survey should address crucial issues such as communication (from & to supervisor; from & to upper management); training; recognition; culture; environment (working & physical); job stress/responsibilities; work v home life (balanced?), and the like.
The final comments on the survey should address:
"What would you change?"
"Rate the Company's benefit and compensation plans:
A. Better than most.
B. Same as most.
C. Worse than most.
D. Have no idea."
From United States,
Obviously, compensation is one factor in attrition. Others are lack of respect/appreciation; recognition of job performance (one "attaboy" goes alot farther than $$$); job has lost interest, employee no longer challenged; passed over/ignored for promotion; personal problems, at home/at work, and the like.
I suggest that your institute an "exit interview" process. Current employees who are contemplating leaving should be handed a survey and envelope before they depart. If no response after two (2) weeks from departure date, a follow-up letter/postcard should be sent. Employees who have left should be sent a survey, with a stamped return envelope, addressed to "Consultant", PO Box xxx, your town, your state.
Using this approach, employees will feel that a neutral third party has been retained to analyse the responses and make appropriate recommendations to management and will be more willing and forthcoming in their views/opinions.
The survey should address crucial issues such as communication (from & to supervisor; from & to upper management); training; recognition; culture; environment (working & physical); job stress/responsibilities; work v home life (balanced?), and the like.
The final comments on the survey should address:
"What would you change?"
"Rate the Company's benefit and compensation plans:
A. Better than most.
B. Same as most.
C. Worse than most.
D. Have no idea."
From United States,
Hi Joan,
In my opinion, compensation factors doesn't contribute much towards attrition, unless there is severe exploitation and the company not adhering to industry standards.
We need to look at the following areas:
1. What kind of work the employees are getting? Is it worth doing? Quality of work really matters.
2. Quantity of work in comparison to compensation. I've seen many IT companies where insufficiency of work is a cause for attrition. On the other hand, employees could also be overburdened with work.
3. What is the scope of self-development in the company?
4. how well the roles and responsibilities are spelled out?
5. Give a deeper look into the transparency in its policies and procedures.
6. Is there enough challenge in doing the kind of work they are doing?
7. The structure of the organisation also needs to be relooked at.
Above are some of the areas that you can look out for.
Thanks
From India, Mumbai
In my opinion, compensation factors doesn't contribute much towards attrition, unless there is severe exploitation and the company not adhering to industry standards.
We need to look at the following areas:
1. What kind of work the employees are getting? Is it worth doing? Quality of work really matters.
2. Quantity of work in comparison to compensation. I've seen many IT companies where insufficiency of work is a cause for attrition. On the other hand, employees could also be overburdened with work.
3. What is the scope of self-development in the company?
4. how well the roles and responsibilities are spelled out?
5. Give a deeper look into the transparency in its policies and procedures.
6. Is there enough challenge in doing the kind of work they are doing?
7. The structure of the organisation also needs to be relooked at.
Above are some of the areas that you can look out for.
Thanks
From India, Mumbai
Well. we were thinking of conducting an exit interview of people who have left our company to find out the reasons of high attrition.....But i was wondering what kind out ques to ask them other than"why did i u leave the org"
Can any one help me out wth it. Can a job satisfaction questionnaire be addressed to them ?
Pls help .
From India,
Can any one help me out wth it. Can a job satisfaction questionnaire be addressed to them ?
Pls help .
From India,
Hello Joan:
Is management prepared to act on what they'll learnr from a post exit interview?
Hire an outside firm that does post exit interviews so that they can assure your former employees that their former supervisors will not see their comments attached to their names.
From United States, Chelsea
Is management prepared to act on what they'll learnr from a post exit interview?
Hire an outside firm that does post exit interviews so that they can assure your former employees that their former supervisors will not see their comments attached to their names.
From United States, Chelsea
Hai Joan,
1. The work culture of a company should be sound.
2. Employees leave the company for various reasons.
a. Less Pay, Lack of recognition. Lack of opportunity to enhance knowledge , politics , lack of professional approach , Fringe Benifits, stress etc
b. Brand Name.
Hence compensation alone will not work. You've got to cover the above areas too.
Regards
N.Neelam
From India, Madras
1. The work culture of a company should be sound.
2. Employees leave the company for various reasons.
a. Less Pay, Lack of recognition. Lack of opportunity to enhance knowledge , politics , lack of professional approach , Fringe Benifits, stress etc
b. Brand Name.
Hence compensation alone will not work. You've got to cover the above areas too.
Regards
N.Neelam
From India, Madras
If we study the national corporate scene today , we will find an increasing number of Indian organizations are constantly trying to become and project themselves as truly “world class knowledge companies” (few have already set the benchmarks ) through which they are trying to constantly enhance “the self esteem” of their employees.
As the struggle for reducing the employee attrition rates in the knowledge-based organizations intensifies, the rise in methods to increase the self esteem of the employees can well be the answer for HR executives all over the world .The few measures to raise the self-esteem of the employees suggested are :
Recognizing the contributions of outstanding achievers will induce others to try hard .
Criteria for selecting outstanding achievers should be transparent .
Effective HR measures in the areas of training ,career development etc, equip the workforce better on the professional front and also increases their self-esteem .,confidence, morale and motivation .
Excerpts from Jerry Minchinton’s “52 WAYS OF RAISING YOUR SELF-ESTEEM” are also very relevant :
Focus on your strengths and not on your weakness .
Others should be treated as equals, regardless of their status in the society.
Be positive . Master the art of positive thinking .
Don’t worry much about impressing others, they are probably trying to impress you .
If you are relaxed you are more expected to come out better .
Try to accept and appreciate the yourself as you are .Remember if you underestimate yourself others will do the same to you .
The need of the hour is not only to enable the employees to grow in the ‘learning organizations’ the concept of which, is fast attaining celebrity status in this age of “knowledge economy” but also to take care that the employee has substantial growth in his “self-esteem” without which ,I fear, all the retention policies of the organizations will meet a sorry fate .
AR Sai
As the struggle for reducing the employee attrition rates in the knowledge-based organizations intensifies, the rise in methods to increase the self esteem of the employees can well be the answer for HR executives all over the world .The few measures to raise the self-esteem of the employees suggested are :
Recognizing the contributions of outstanding achievers will induce others to try hard .
Criteria for selecting outstanding achievers should be transparent .
Effective HR measures in the areas of training ,career development etc, equip the workforce better on the professional front and also increases their self-esteem .,confidence, morale and motivation .
Excerpts from Jerry Minchinton’s “52 WAYS OF RAISING YOUR SELF-ESTEEM” are also very relevant :
Focus on your strengths and not on your weakness .
Others should be treated as equals, regardless of their status in the society.
Be positive . Master the art of positive thinking .
Don’t worry much about impressing others, they are probably trying to impress you .
If you are relaxed you are more expected to come out better .
Try to accept and appreciate the yourself as you are .Remember if you underestimate yourself others will do the same to you .
The need of the hour is not only to enable the employees to grow in the ‘learning organizations’ the concept of which, is fast attaining celebrity status in this age of “knowledge economy” but also to take care that the employee has substantial growth in his “self-esteem” without which ,I fear, all the retention policies of the organizations will meet a sorry fate .
AR Sai
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