Dear Peers,
Good afternoon. We have seen many people leaving companies without notice, resigning but not serving the notice period. Also, some of them use mid-sized companies as a bridge to move to the next level. HRs undergo many problems in hiring and identifying people, and later in a very short term, we face these issues. How do we address this? Is there any common forum where all medical billing companies meet? We have to stop the wrong way of employment. Also, as employers, we must not entertain such people.
Thanks,
Latha.C
Senior HR
From India
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3Good afternoon. We have seen many people leaving companies without notice, resigning but not serving the notice period. Also, some of them use mid-sized companies as a bridge to move to the next level. HRs undergo many problems in hiring and identifying people, and later in a very short term, we face these issues. How do we address this? Is there any common forum where all medical billing companies meet? We have to stop the wrong way of employment. Also, as employers, we must not entertain such people.
Thanks,
Latha.C
Senior HR
From India
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Dear Latha,
Two things emerge from your post. One is that you do not have just the problem of employee attrition but people abscond from their duties. Their abscondment is upsetting the apple cart of your operations.
The second problem could be the intense poaching by rival companies. They are also equally running short of manpower. Therefore, they are recruiting even though the person has not relieved himself or herself properly.
In your post, you have given one of the solutions. Can all the companies in your business segment form a code of conduct and adhere to it? Yes, if your business rival stops employing a person if the candidate has not taken proper clearance, then it will be a big help to one another. As of now, all are bleeding one another.
From the HR Management point of view, you need to make the service conditions attractive. Once you do this, you will be able to improve employee retention. The lure of better pay will always be there. But then consider the top-notch IT companies. Why do people stick to their companies, though mid-segment IT companies are always waiting in the wings to offer better salary?
The next solution is keeping extra manpower. What percentage of people quit suddenly? Have you done any analysis? If yes, then instead of working with lean manpower, will the problem of the abandonment of duties be mitigated by keeping a little excess manpower?
One more solution could be the retention of academic certificates for a period of two years. However, it does not have any legal sanction, though many companies resort to these methods.
Going further, try to find out whether any process can be automated. With concepts like Artificial Intelligence (AI) and Machine Learning (ML) gaining momentum, will it be possible to reduce dependence on people?
Thanks,
Dinesh Divekar
From India, Bangalore
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Two things emerge from your post. One is that you do not have just the problem of employee attrition but people abscond from their duties. Their abscondment is upsetting the apple cart of your operations.
The second problem could be the intense poaching by rival companies. They are also equally running short of manpower. Therefore, they are recruiting even though the person has not relieved himself or herself properly.
In your post, you have given one of the solutions. Can all the companies in your business segment form a code of conduct and adhere to it? Yes, if your business rival stops employing a person if the candidate has not taken proper clearance, then it will be a big help to one another. As of now, all are bleeding one another.
From the HR Management point of view, you need to make the service conditions attractive. Once you do this, you will be able to improve employee retention. The lure of better pay will always be there. But then consider the top-notch IT companies. Why do people stick to their companies, though mid-segment IT companies are always waiting in the wings to offer better salary?
The next solution is keeping extra manpower. What percentage of people quit suddenly? Have you done any analysis? If yes, then instead of working with lean manpower, will the problem of the abandonment of duties be mitigated by keeping a little excess manpower?
One more solution could be the retention of academic certificates for a period of two years. However, it does not have any legal sanction, though many companies resort to these methods.
Going further, try to find out whether any process can be automated. With concepts like Artificial Intelligence (AI) and Machine Learning (ML) gaining momentum, will it be possible to reduce dependence on people?
Thanks,
Dinesh Divekar
From India, Bangalore
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Dear Sir, Thank you so much for your valuable inputs. We will work on them. Regards, Latha.C
From India
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From India
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Dear Latha.C,
Why people abscond is a big question and a problem in itself. Mr. Divekar, in the above comments, has stated solutions that are very practical. I would like to add my view as I did face the same situations when I was in the IT industry, where the competition was very high in terms of retaining and poaching.
I joined a company with a very high attrition issue, almost at 25% per month, which is indeed a high number. We were always on our toes to understand the reasons behind it; however, we were moving in the wrong direction as the root cause analysis was not in the correct context. I was new to the team and also new to the HR stream. For me, it was a chance to prove and learn simultaneously. What I did was I moved my seat from the HR floor to the operational floor to understand what lay beneath. I started spending time with people who were actually responsible for the business output. Their routine life was quite monotonous, and there were no breathers. I started having one-on-one sessions with them and organized skip-level meetings to connect with each of them personally. I met and associated with around 170 people. Not only did I meet with them, but I also managed my schedule to help and coordinate with them in their routine work. In return, people also started approaching me with their problems and suggestions. A close connection was established, and I noticed an improvement in retention percentage.
I found that employee engagement plays a tremendous role in attrition. We often make mistakes in understanding employee engagement, where most HR professionals assume or perceive its limitation to objective understanding. Routine tasks like delivering salaries on time, issuing slips, managing leave schedules, and preparing calendars are the generic work that an HR professional has to do. But what about connectivity with people, engaging with emotions? A certain part of it remains untouched in routine work, leading to trouble. So, believe me, if you have a problem with absconders, start engaging with them right from day one. Make them feel comfortable when they join, do not overload them with work, and make the operations managers understand the value of this, as it directly impacts the business.
From India, New Delhi
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Why people abscond is a big question and a problem in itself. Mr. Divekar, in the above comments, has stated solutions that are very practical. I would like to add my view as I did face the same situations when I was in the IT industry, where the competition was very high in terms of retaining and poaching.
I joined a company with a very high attrition issue, almost at 25% per month, which is indeed a high number. We were always on our toes to understand the reasons behind it; however, we were moving in the wrong direction as the root cause analysis was not in the correct context. I was new to the team and also new to the HR stream. For me, it was a chance to prove and learn simultaneously. What I did was I moved my seat from the HR floor to the operational floor to understand what lay beneath. I started spending time with people who were actually responsible for the business output. Their routine life was quite monotonous, and there were no breathers. I started having one-on-one sessions with them and organized skip-level meetings to connect with each of them personally. I met and associated with around 170 people. Not only did I meet with them, but I also managed my schedule to help and coordinate with them in their routine work. In return, people also started approaching me with their problems and suggestions. A close connection was established, and I noticed an improvement in retention percentage.
I found that employee engagement plays a tremendous role in attrition. We often make mistakes in understanding employee engagement, where most HR professionals assume or perceive its limitation to objective understanding. Routine tasks like delivering salaries on time, issuing slips, managing leave schedules, and preparing calendars are the generic work that an HR professional has to do. But what about connectivity with people, engaging with emotions? A certain part of it remains untouched in routine work, leading to trouble. So, believe me, if you have a problem with absconders, start engaging with them right from day one. Make them feel comfortable when they join, do not overload them with work, and make the operations managers understand the value of this, as it directly impacts the business.
From India, New Delhi
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Dear Latha,
One thing to understand is that many of your workforce are leaving their jobs without intimation or serving notice periods. One possible reason may be that the demand is higher than the supply, and they find better packages from other organizations.
This problem is mainly seen in organizations that do not maintain harmony. You know your organization better than us. Have you ever introspected into the causes of employees leaving the organization? Many organizations are not hiring individuals but rather groups who want to leave for their vested interests. While doing so, we do not consider the future aspects that this may happen to us. To prevent absconding, you need to consider the following: make the package (tangible & intangible) more competitive than others, improve the service contract to make employees think twice before taking any action.
As you mentioned, if all companies in your business segment should have a firm conviction to obtain a No Objection Certificate (NOC) before hiring employees, it could be a solution. However, this may not happen because you are an arch-rival.
From India, Mumbai
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One thing to understand is that many of your workforce are leaving their jobs without intimation or serving notice periods. One possible reason may be that the demand is higher than the supply, and they find better packages from other organizations.
This problem is mainly seen in organizations that do not maintain harmony. You know your organization better than us. Have you ever introspected into the causes of employees leaving the organization? Many organizations are not hiring individuals but rather groups who want to leave for their vested interests. While doing so, we do not consider the future aspects that this may happen to us. To prevent absconding, you need to consider the following: make the package (tangible & intangible) more competitive than others, improve the service contract to make employees think twice before taking any action.
As you mentioned, if all companies in your business segment should have a firm conviction to obtain a No Objection Certificate (NOC) before hiring employees, it could be a solution. However, this may not happen because you are an arch-rival.
From India, Mumbai
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Hi Latha,
Even though I am from the Medical Billing fraternity, I support your views that there is a heavy outflow of employees. The reasons, as I understand them, are that there is no thorough background check done, which is mandatory across all companies. Some big companies even encourage employees to abscond and join them immediately after salary disbursement. Moreover, with all medical billing companies working on tight margins, the teams have very little leverage to maintain the necessary buffer.
These conditions are causing the HR fraternity in medical billing companies to run around and fill almost 90% of manpower every year, covering nearly every position. The only solution is to increase the retention period of employees through various employee engagement activities, which will boost employee morale.
Regards
From India, Hyderabad
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Even though I am from the Medical Billing fraternity, I support your views that there is a heavy outflow of employees. The reasons, as I understand them, are that there is no thorough background check done, which is mandatory across all companies. Some big companies even encourage employees to abscond and join them immediately after salary disbursement. Moreover, with all medical billing companies working on tight margins, the teams have very little leverage to maintain the necessary buffer.
These conditions are causing the HR fraternity in medical billing companies to run around and fill almost 90% of manpower every year, covering nearly every position. The only solution is to increase the retention period of employees through various employee engagement activities, which will boost employee morale.
Regards
From India, Hyderabad
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Dear Prabhat Sir,
Can we do a service contract without paying statutory compliance with them? When the attrition rate is high, the withdrawal issue is also too high. Kindly suggest employee engagement programs for field staff.
Thanks,
Mili
From India, Vadodara
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Can we do a service contract without paying statutory compliance with them? When the attrition rate is high, the withdrawal issue is also too high. Kindly suggest employee engagement programs for field staff.
Thanks,
Mili
From India, Vadodara
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We have seen many people leaving companies without notice, resigning but not serving the notice period. People keep shifting companies in search of the best deal possible. Your company should try to pay more than the others in the field and engage employees in a manner that they may not quit suddenly. People abscond because company managements are not all that ethical in dealings with them, and they have not developed loyalty towards the company. It is just a job. Employee engagement is very vital.
"HRs undergo so many problems in hiring and identifying the people, and later in a very short term, we face these issues." Always try and keep a standby for every job - formally or informally by ensuring that job rotation is done. Sudden exit should not then cause a cessation or break in activities.
"We have to stop the wrong way of employment. Also as employers, we must not entertain such people." Background checks, behavioral tests, and proper screening will help in getting a better type of candidates. Your company can itself start the movement of No poaching, do not accept people who have left competitors without notice and documentation. Do interact informally with competitors to the extent possible and sound them out on these HR problems. Probably some common approach may result from such interactions.
In addition: Think of automating some routine processes and hiring some employees on a contract basis with notice periods specified among other clauses. Beyond all - try and make your company a happier place to work - giving flexibility to employees and a feeling of security and growth which can be achieved by maintaining a professional open atmosphere.
From India, Pune
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"HRs undergo so many problems in hiring and identifying the people, and later in a very short term, we face these issues." Always try and keep a standby for every job - formally or informally by ensuring that job rotation is done. Sudden exit should not then cause a cessation or break in activities.
"We have to stop the wrong way of employment. Also as employers, we must not entertain such people." Background checks, behavioral tests, and proper screening will help in getting a better type of candidates. Your company can itself start the movement of No poaching, do not accept people who have left competitors without notice and documentation. Do interact informally with competitors to the extent possible and sound them out on these HR problems. Probably some common approach may result from such interactions.
In addition: Think of automating some routine processes and hiring some employees on a contract basis with notice periods specified among other clauses. Beyond all - try and make your company a happier place to work - giving flexibility to employees and a feeling of security and growth which can be achieved by maintaining a professional open atmosphere.
From India, Pune
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