Why Low Attrition Rate is Priceless for Any Outsourcer
Attrition rate pertains to the number of personnel that leaves a company within a specified period of time. It is also otherwise known as the “staff turnover”. There is a high attrition rate when more employees resign or leave their company for various reasons.
Why is a high attrition rate a bad thing for an outsourcing company?
A waste of valuable resources
Talent acquisition is a costly and exhaustive process. From hiring to training, the time, money, and effort spent on molding applicants to become reliable and competent staff can be considered to be worthwhile investments. Hires who can perform their tasks efficiently and effectively can add value to the success of your organization.
When these very same people leave, the toll to your organization is huge. Not only these departing employees take away with them any experience and knowledge they might have gained, the resources spent on them while they are with the company go to waste as well. All those expensive signing bonuses, online courses, seminars, trainers, allowances, free lunches … all gone, swiftly flushed down the drain.
Decline in performance
When people with the necessary skill-set and experience departs from the company, it leaves behind a hole that the rest would struggle to fill in. The remaining staff would, of course, have to cover all the work left behind. Even worse if the tasks the former employee used to do requires specialized technical skills and know-how that no one else in the office is equipped to perform- the quality of output would be forced into an inevitable downward spiral until a suitable replacement is found and sufficiently trained.
Gives off the wrong impression
An outsourcing company’s public image is important not just for the acquisition of more employees, but for attracting more clients as well. And when you see a mass exodus of staff does not exactly shine a positive light on a company’s name.
The reasons we brought up are just some of the many nasty disadvantages that high attrition rate brings into a company. It is a curse that not just the BPO sector suffers from, but it also affect almost every other fields in business as well.
What exactly causes high attrition rate?
No. 1 — Low salary
The employees might feel like they are not being paid enough for the amount of work that they are doing.
No. 2 — Toxic work environment
There are a few that would argue that the only thing worse than a company that hurts the pocket, is a firm that hinders personal growth. Being treated like objects, unprofessional behavior by other employees, constant and incessant gossiping, bullying in the workplace are more than enough reason to make anyone want to leave.
No. 3 — Lack of recognition
Another thing that might sour the employees’ affections is the fact that their successes and accomplishments are not even being noticed.
No. 4 — Poor employee selection
The person that have been hired might not have been the candidate matched for the position after all.
No. 5 — Overworked
Employees might feel like they are being made to do far more than the amount of work that they should be doing or not compensated enough.
No. 6 — Inequality
Being treated as less important than someone else is never a good feeling. Some might feel like this is reason enough to burn bridges and move on to a better place.
No. 7 — Aversion to administrative and/or management staff
There is a saying that goes “bad managers lose good employees”. Perhaps this can also be the case nearest to when there is a toxic work environment. The bottom line is that no matter how great the compensation might be, if the management does not treat its employees well, its very likely that they would look for others who will.
No. 8 — Poor working conditions
Perhaps the employees find that the workplace is not up to their expectations of an pro-employee company. Some of the things that might contribute to poor working conditions are the following: unmanageable stress and noise levels, lack of basic amenities, lack of security, untidy spaces, etc.
Answers to High Attrition Rate
There is technically no way for a company to hold people from leaving when they thought it’s game over with that organization. However, there are some preventive measures that can be put in place to prevent them from wanting to leave in the first place.
- Optimize the hiring process — The best way to keep employees from leaving is to select the right people in the first place. Make sure that the candidates are screened and tested rigorously, to identify which ones meet the qualifications and skillset requirements.
- Offer a competitive compensation and benefits package — If the reason your staff is leaving is due to their search for a greener pasture, imple- be the greener pasture. Make yourself the more attractive option. Keep your people from leaving by giving them a good enough reason to stay.
- Make work enjoyable — Monotonous, repetitive tasks are boring. They stifle creativity and passion of employees, which eventually can lead to being unproductive. Make sure that the job is simulating and challenging. Jobs that are something to look forward to rather than a dread sound awesome.
- Promote a healthy working environment — Team buildings, company lunches, recreational events, even simple parlor games all serve a purpose. They not just boost the morale, bu a healhty workplace can easily promote camaraderie and create friendship within the workforce. By holding events, your company not only promotes a healthy working environment. Even starting positive little practices like saying good morning everyday before the shift starts could contribute a lot to the improvement of the overall positive vibe in the workplace.
- Communicate your vision — Give employees a goal to achieve or reach. A motivated person performs twice or thrice as much when there is a finish line and deadline that he or she must race on.
- Fire people who don’t fit — It might seem like an odd thing to do when trying to keep the attrition rate down, but there are people who, instead of adding to the company, detract from it. These are the people who start trouble that can sometimes lead other employees to resign. It is like cutting off a diseased limb because it will be healthier for the entire body in the long run.
- Provide opportunities — Give employees the chance to grow and to move up the ranks. There is nothing more motivating than the promise of being rewarded after working and spending quality time for your work. An equal-opportunity company easily surfaces a positive impression towards new recruits.
- Engage your employees — Get to know employees and the work that they do. Gain a bit of knowledge about the tasks that they routinely perform. Ask for their opinion for important decisions that would ultimately affect them. Let your talent feel like actual people who have a say and stake in the company’s success.
- Honor achievements — When your team reaches a milestone, show them that you appreciate their hard work. When a personnel surpasses a record, give him the recognition he deserves. When a staff attains breakthrough success, award her. Ultimately, let your people know that the work that they so hardly put in are not disregarded, ignored nor being taken for granted. Openly acknowledge every progress and accomplishments. It doesn’t have to be a trophy or a certificate. It can be as simple as a “thank you” card, a “well done” or a “good job” pat in the shoulder. Positive reinforcement works wonders.