EXECUTIVE SUMMARY

Information Technology is touted to be the next major deciding factor in which the
companies do their businesses and ultimately stay above water. As is with the regular trends with
many booms and busts in the market place, this bubble is here to stay for a long time. This is also
evident from the fact that IT related placement today in industries is at a record high, barring the
recent financial meltdown of 2008 and the resultant aftermath. However, it must be noticed that
no sooner did the market look up, the demand for work force in the IT industry looked up.
This leads to a problem for the companies starting from on boarding the right talent to the
final off boarding. These functions are the prerogative of the Human Recourses. It is correct to
assume that the task at hand for the HR is not easy and they need to constantly evolve the right
and the best practices for the functions and the processes they follow. This is important from
many aspects such as being up to date in the processes your company follows in order to attract
and retain the right talent.
“Talented persons are like frogs in a wheelbarrow, which can jump at any point of time
when they sense opportunities”. Attracting the best professionals is never easy no matter what
industry segment we consider. There is some truth in saying that what the Middle East is to oil,
India is to software professionals. So, in a predominantly manpower intensive software industry,
issues of the manpower availability, its cost, turnover and productivity are critical issues. A
major proportion of the turnover issue is attributed to movement of manpower to the so-called
“land of opportunities-USA”.
The average stay of a software consultant in any given IT company is not more than two
years which has further dropped down to one year. HR managers in India are realizing that
employee retention is a Herculean task for the IT industry, even for big players.
In such a scenario, where companies are fighting to combat global business competition,
and struggling to survive, employee turnover comes as a double blow. The scenario is becoming
worse. Companies are facing “double-edged sword-to recruit and to retain talent”.
We cannot forget that “Talented men leave, dead wood doesn't”. Philosophically,
employee retention is important. In almost all cases, it is senseless to allow good people to leave
your organization. When they leave, they take with them intellectual property, relationships,

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investments (in both time and money), an occasional employee or two, and a chunk of your
future.
As stated earlier, any organization has to be more responsive to the changing scenario
through the up gradation of the methodologies used for Recruitment and Selection of candidates,
formulating recruitment policy and in designing an effective HR Plan as any failure in HR
Planning will be a limiting factor in achieving the objectives of the organization. Objectives in
the present day of stiff challenge from competitive market, it is ongoing process which requires
proper identification of organizational manpower requirement and also ways of hiring the
efficient and right person at the right time.

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 INTRODUCTION

Success of every business enterprise depends on its human resource. Money, material and
machines are inert factors; but man with his ability to feel, think, conscience and plan is the most
valuable resource. At the same time human elements are most difficult to be inspired, controlled
and motivated. The upcoming competition in India will demand high motivational level of its
employees.
Growth of an enterprise is vital for the economic development of the country. This is
possible only by maintaining the enthusiasm and motivation of the employees, which is vital for
carrying out the operations in most efficient manner. The most successful companies, all over the
world have designed their business policies to achieve higher productivity by using potentiality
and strength of people.
The basic aim of human policies is the genuine concern for the people. Proper design of
human policies is based on the higher responsibilities, personal and positive approach in the total
perspective of organizational interest. The world's best companies have established their strength
with their people. The employees identify themselves with the company they are working for.
This also helps in building up their spirit, morale and espirit-de-cops which becomes strength of
the company. The culture of excellence thus nurtured contributes to growth with stability and
continuous improvement in productivity.
Finding the right man for the job and developing him into a valuable resource is an
indispensable requirement of every organization. Human resources are capable of enlargement
i.e. capable of providing an output that is greater than the sum of the inputs. Proper recruitment
helps the line managers to work most effectively in accomplishing the primary objective of the
enterprise. In order to harness the human energies in the service or organizational goals, every
manager is expected to pay proper attention to recruitment, selection, training, development
activities in an organization. Proper promotional avenues must also be created so as to motivate
employees to peak performance. Thus, personnel functions such as manpower planning
recruitment, selection and training, when carried out properly, would enable the organisation to
hire and retain the services of the best brains in the market.
The human resource management is very crucial in respect of information technology
services than other manufacturing or marketing enterprises. The IT services are technical in

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nature and at every stage the human touch is involved. Hence it is well motivated and devoted
manpower which is very much essential for the success of IT industry.

THE CURRENT SCENARIO IN THE IT SECTOR:

India has the largest pool of manpower, second only to the US. According to a study
conducted by the National Association of Software and Services Companies (NASSCOM)-
quantity of skilled knowledge workers in India seems to be a non-issue, and it would be so at
least for another couple of years.
The arithmetic out of 1.22 lakh engineering graduates qualifying every year in India,
about 73,000 are software engineers from IITs and other RECs. Thus, around 73,000 fresh
software engineers are expected to be available annually. Total demand for software
professionals during the next couple of years is estimated at 1.40 lakh. Against this, India is
expected to have a pool of 1.46 lakh software engineers. Besides, quite a few Indian universities
have started courses leading to Masters in computer Applications and there are private Training
Institutes which offer high level software engineering courses.
According to an AIMA survey, 60% of the IT Companies have a written job description
of all levels of employees. The rest 40% either have a partly written job description or they don’t
have anything written at all making it difficult for both the employee and the employer.
Most CEOs site lack of skilled professionals as one of the major hindrances to growth in
the Indian Software Industry. Reputed software companies might get people at the base level but
getting somebody with an experience of more than 4-6 yrs is a problem. The problem of
retention was more prevalent in the telecom, IT and the Services sector than manufacturing and
traditional sector.
When asked about employee retention, the majority among HR professionals of IT felt
that it was all about retaining good people in the company and creating such situations for the
non-performing employees that they quit on their own. It was felt that employee retention was a
collective responsibility of the HR department, top management and individual departments in
an ascending order with the HR Department having the maximum and individual department
having minimum accountability.

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 Data shows that in companies with more than 1000 employees, the HR Department was
strong whereas in mid-sized companies, the individual department was responsible along with
the top management.
Large companies with growth rate higher than 10% did not face serious retention
problems, but large companies with lower growth rates had acute problems in retaining their
employees. In all industry segments, the employee attrition rates at the junior level were on the
higher side compared to that at the top management level.
Studied over the last two years, retention levels have either increased or remained same
due to better compensation, healthy competitive environment, higher profitability of the
company, and good working conditions. But the case is not so with the IT sector, where the key
motivator is the lure of U.S market.

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 RESEARCH DESIGN

OBJECTIVE OF RESEARCH:

The focus of this study is to find out the challenges faced by the HR professionals
especially in the IT industry where the attrition rate is so high and also to analyze the major
causes of employee turnover in an IT sector and the measures that can be adopted to retain the
knowledge workers in the company.

The project focuses on:

 The importance of retention in the IT companies.
 Most effective methods to find the cause of turnover.
 Factors favoring retention.
 Innovative methods adopted by companies to retain people.
 Constraints faced by the organization in implementation of retention strategies.
 Effectiveness of the methods used to retain people.

RESEARCH METHODOLOGY:

The study was exploratory in nature. All published and unpublished data available on the
subject matter was consulted. Interview and discussions were held with the various executive/
Managers/ staff employed in IT sector. The HRD functions/ activities being undertaken in
different IT organizations were also studied. Primary and secondary data available with these
organizations was also used for this project study.
In order to measure the employee’s perceptions of emerging HR trends in different IT
organizations, the survey was undertaken. The survey was based on structured questionnaire.
The questionnaire was mainly based on objective type close-ended question, but few open ended
questions were also included.
Firstly, the pilot survey on ten randomly selected respondents was undertaken. Then the
questionnaire was modified accordingly, if desired.

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 The final questionnaire was administered in person to the extent possible and through
mail if needed. The 50 respondents were selected among the executives and staff working in
various IT organizations. The convenient random sampling technique was used for the selection
of the respondents.
Finally, the results of the survey has been analyzed and interpreted to meet the required
needs of this project study and presented in Report form.

TOOLS FOR ANALYSIS:

The research was conducted through collection of primary as well as secondary data. It was
collected through a well-framed questionnaire, of which later a detailed analysis was done using
various statistical I.T. tools like MS Word and MS Excel.

LIMITATIONS OF RESEARCH:

The research faced the following unavoidable and uncontrollable factors while conducting the
survey:-

 Due to time constraints, the sample size of only 50 respondents has been used. Such a
small sample size may not represent an accurate data.
 Also due to the limited resources, the study was conducted within the boundaries of
India.
 The reluctance on the part of respondents to share the accurate and confidential
information.

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 ROLE OF HR PROFESSIONAL

Some industry commentators call the Human Resources function the last bastion of
bureaucracy. Traditionally, the role of the Human Resource professional in many organizations
has been to serve as the systematizing, policing arm of executive management. In this role, the
HR professional served executive agendas well, but was frequently viewed as a road block by
much of the rest of the organization. While some need for this role occasionally remains you
would not want every manager putting his own spin on a sexual harassment policy, as an
example - much of the HR role is transforming itself. The role of the HR manager must parallel
the needs of his changing organization. Successful organizations are becoming more adaptable,
resilient, quick to change direction, and customer-centered. Within this environment, the HR
professional, who is considered necessary by line managers, is a strategic partner, an employee
sponsor or advocate, and a change mentor.

1. STRATEGIC PARTNER:
In today’s organizations, to guarantee their viability and ability to contribute, HR
managers need to think of themselves as strategic partners. In this role, the HR person
contributes to the development of and the accomplishment of the organization-wide business
plan and objectives. The HR business objectives are established to support the attainment of the
overall plan and objectives. The tactical HR representative is deeply knowledgeable about the
design of work systems in which people succeed and contribute. This strategic partnership
impacts HR services such as the design of work positions, hiring; reward, recognition, and
strategic pay; performance development and appraisal systems; career and succession planning;
and employee development.

2. EMPLOYEE ADVOCATE:
As an employee sponsor or advocate, the HR manager plays an integral role in
organizational success via his knowledge about and advocacy of people. This advocacy includes
expertise in how to create a work environment in which people will choose to be motivated,
contributing, and happy. Fostering effective methods of goal setting, communication, and
empowerment through responsibility build employee ownership of the enterprise. The HR

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professional helps establish the organizational culture and climate in which people have the
competency, concern, and commitment to serve customers well. In this role, the HR manager
provides employee development opportunities, employee assistance programs, gain sharing and
profit-sharing strategies, organization development interventions, due process approaches to
problem solving, and regularly scheduled communication opportunities.

3. CHANGE CHAMPION:
The constant evaluation of the effectiveness of the organization results in the need for the
HR professional to frequently champion change. Both knowledge about and the ability to
execute successful change strategies make the HR professional exceptionally valued. Knowing
how to link change to the strategic needs of the organization will minimize employee
dissatisfaction and resistance to change. The HR professional contributes to the organization by
constantly assessing the effectiveness of the HR function. He also sponsors change in other
departments and in work practices. To promote the overall success of his organization, he
champions the identification of the organizational mission, vision, values, goals, and action
plans. Finally, he helps determine the measures that will tell his organization how well it is
succeeding in all of this.
Research proves that many change models don't consider the human experience during
change. The overriding concern seems to be to downsize. It was found that most change
processes go through four fundamental stages:
 People try to resist or deny change.
 They adapt, participate in the change.
 They attempt to add value.
 The culmination or formation of a new status-quo.
A number of presentations revealed that leaders who initiate change must do so with one
foot in the future and the other planted in past values. Forgetting tradition can devalue existing
strengths. The success of a change process depends on the skill of the facilitator to create a
participatory process to enlist the support of people and address the issue of grief.

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 DILEMMAS FACED BY AN HR HEAD

CHANGING ENVIRONMENT:
Issues facing HR are expected to change dramatically in the next decades. Thus, HR
professionals must play special roles in dealing with these changes and must develop specific
competencies to support these roles.
Workplace flexibility is expected to be on the rise as the future workplace, the ‘virtual
office’ is characterized by creative and flexible work arrangements. There is an emphasis on
performance and results as opposed to the number of hours worked, as more employees work
off-site. Specified work has become much more collaborative and management spends nearly all
its time managing cross-functional work teams who enjoy a lot of autonomy. In essence, there is
a movement, a trend towards a decentralized model of HR.

GLOBAL BUSINESS:
Another change in HR is the ‘Global Business’ concept. World trade knew a major
growth during the last years and there is forecasted as well the growth of international
businesses, especially among small firms. Organizations rely more and more on HR specialists
as the facilitators of work across borders and among different cultures. Therefore, they must be
knowledgeable of other cultures, languages and business practices. They are required to develop
and manage an international workforce, maintain written and unwritten corporate polices for
transportability to other cultures, keep top management informed of the costs of not paying
attention to the transnational issues and provide their services to a variety of locations
worldwide.
An organization that recognizes and promotes cultural diversity will benefit because it
will be employing the market that it serves. With increasing globalization and competition within
the market, a diverse workforce is conducive to attracting and retaining a strong client base.
While competing in an international market, employees from diverse national backgrounds
provide language skills and understanding of other cultures. HR professionals are also
responsible for providing cultural sensitivity training for the organizations employees and for
managers throughout the entire organization.

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ALIGN HR TO BUSINESS:
 Unlike the other industries where HR is considered as a functional need, there is a need
to view HR as a partner or a business enabler in IT industry. One of the constant challenges
faced in this area is to align HR to business. The five R’s therefore, assume utmost significance
in HR strategy. The HR team needs to get in right from the stage of defining the business
strategy to Resourcing, Recruiting the right talent, Retaining the talent, Retraining and
Restructuring.

FLEXIBILITY:
If we see the scenario of HR in IT Company, we find that flexibility appears to be the
key for success and survival as IT has become such a dynamic field due to the constant
developments and up gradation in the area of technology and changing customer requirements.
Topping all these reasons is also the trend of globalization, which tries the HR test of endurance.
The ability and the willingness to modify job structure, job classification and the organizational
structure as often and as quickly as necessary are important elements in a successful recruitment
and retention strategy for IT professionals. This challenges of managing expectations and change
puts constant pressure on the professionals.

MANAGING PERFORMANCE:
The challenge does not stop with recruiting the right person but with how we are going to
manage the performance of our employees. The challenge would be to create a performance
culture where in opportunities are provided for enhanced performance and where giving out
optimum performance becomes a way of life.

TRAINING AND DEVELOPMENT:

Training and development is another area. In the IT industry training takes on a new
connotation. It is not just about identifying training needs and giving the required training. It is
foreseeing and anticipating the requirements and developing suitable training so that the
employees are well-equipped to handle the challenges.

Challenges faced by HR professionals in an IT industry Page 11

ROLE OF A FACILITATOR:
Another major challenge is how we are able to incorporate all the sub-systems in HR and
help them in achieving the ultimate goal – exceptional performance. People have to be groomed
to get in tune with the performance culture. Creating an environment that stimulates the creation
of knowledge and its sustenance throughout the organization is big challenge. No longer can the
HR department carry on with its traditional functions. However, Human Resource Information
Systems (HRIS) is to be put in place – to build and sustain a performance – driven culture. The
role will shift to that of facilitator. HR will have to involve the whole organization in this process
and act as a counselor and facilitator and that is the most gigantic challenge the HR of any
organization faces.

RETENTION:
One of the biggest challenges companies are facing is the attraction and retention of good
employees and top performers. The concept of employee retention developed as a response to
increasing voluntary employee turnover. After visualizing the shot, a golfer rejects all but the
appropriate club to achieve the result visualized: a driver for a tee shot, a putter for the green, a
sand wedge for getting out of bunkers, and so on. Likewise, to retain employees, you must
choose the right tools to achieve your goals. The possibilities are numerous – compensation
schemes, crèches, pension plans, cars, bonuses, fresh paint, coaching, 360-degree assessments,
barbecues, to name just a few.
Each day, the competition is out to steal your most talented employees. The best defense
is to create a total work experience so attractive that your brightest star would never consider
leaving. The best managers understand that the contributions of excellent employees are what
make the difference between success and failure and they take actions to retain those people.
Nothing feels better than having a productive and happy workforce which is collectively focused
on the organization’s success.
The retention work should not only serve the company but also satisfy the employee. As
Companies that can recruit the best talent and retain them will have an edge in the long run.

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 LITERATURE REVIEW: RETENTION

Effective employee retention is a systematic effort by employers to create and foster an

environment that encourages current employees to remain employed, by having policies and
practices in place that address their diverse needs. A strong retention strategy, therefore, becomes
a powerful recruitment tool.
Retention of key employees is critical to the long-term health and success of any
organization. It is a known fact that retaining the best employees ensures customer satisfaction,
increased product sales, satisfied colleagues and reporting staff, effective succession planning,
and deeply embedded organizational knowledge and learning. Employee retention matters as
organizational issues such as training time and investment, lost knowledge, insecure employees,
and a costly candidate search are involved. Hence, failing to retain a key employee is a costly
proposition for an organization. Various
estimates suggest that losing a middle
manager in most organizations costs up to
five times his salary.
Intelligent employers always realize
the importance of retaining the best talent.
Retaining talent has never been so important
in the Indian scenario; however, things have
changed in recent years. In prominent Indian metros at least, there is no dearth of opportunities
for the best in the business, or even for the second or third best. Retention of key employees and
treating attrition troubles has never been so important to companies.
In an intensely competitive environment where HR managers are poaching from each
other, organizations can either hold on to their employees tight or lose them to competition. For
gone are the days when employees would stick to an employer for years for want of a better
choice. Now, opportunities are abound. In fact, some reports suggest that attrition levels in IT
companies are as high as 40 percent.
Clearly, the only way out is to develop appropriate effective retention strategies.

Challenges faced by HR professionals in an IT industry Page 13

 IMPORTANCE OF EMPLOYEE RETENTION

The challenge of keeping employees and its changing face has stumped managers and
business owners alike. How do you manage this challenge? How do you build a workplace that
employees want to remain with and outsiders want to be hired into? Successful managers and
business owners ask them these and other questions because, employee retention matters.

The importance of retaining key employees is highlighted below:

 When they leave, they take with them intellectual property, relationships, investments (in
both time and money), an occasional employee or two, and a chunk of your future.
 Employee retention strategies help organizations provide effective employee
communication to improve commitment and enhance workforce support for key corporate
initiatives. These strategies also provide full support to the marketing-communication
efforts by helping the organization build customer loyalty by distinguishing and positioning
the organization’s unique products and services in today’s crowded marketplace.
 High turnover often leaves customers and employees in the lurch; departing employees take
a great deal of knowledge with them. This lack of continuity makes it hard for the
organizations to meet their goals and serve customers well.
 Replacing employee costs money. The cost of replacing an employee is estimated at up to
twice the individual’s annual salary (higher for positions based on their level within the
inter-organizational hierarchy, such as middle management) and this does not even include
the cost of lost knowledge.
 Recruiting employees consumes a great deal of time and effort, much of it futile. There is
not just one organization out there vying for qualified employees, and job searchers make
decisions based on more than the sum of salary and benefits.
 Bringing employees up to speed takes even more time and when an organization is short-
staffed, they often need to put in extra time to get the work done.
 Top talent attracts other top talent - a company with talented executives is more likely to
attract other such candidates.

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 ATTRITION ANALYSIS

High employee turnover, as a consequence of quick career advancement and multiple job
opportunities, has come to be known as a negative "spill-over effect" of industrial growth. On the
face of such large scale volatility of labour, today's employers prefer to have a stable, committed
and yet flexible workforce, the employees who are willing to learn and develop; employers also
face the strategic problem of choosing incompetent staff for retrenchment and quality staff for
retention.

3 MAJOR REASONS BEHIND LEAVING THE EARLIER JOB:

Through the various instruments used, an attempt was made to understand why IT
employees surveyed had left their earlier jobs to join the current job. Compensation, lack of
challenges and opportunities in one's position and dissatisfaction in job were cited as the 3 main
reasons along with various other factors.

I. COMPENSATION:
Majority of the IT professionals cite poor compensation packages in earlier jobs
as the main reason behind leaving such jobs, compensation clearly continues to be the age-
old mechanism of retention; organizations try to hold back their talented employees by
paying them even more than market-defined salaries. If pay levels do not match others or
the best in the industry, it may be a cause of dissatisfaction.
Organizations may also insulate their key performers from moving over to their
rivals by signing bonuses in installments, so that they can be sure of having such employees
on rolls till the payment is effected; moreover, such pay-spreads can always be matched
with the required period of retention of such skills in the organisation (Murty, 2004). They
may also offer 'hot skills' premium to attract knowledge workers who are short in supply,
though such strategies are meant only for the short term and are found to manage migration-
driven skill gaps.

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 II. CAREER DEVELOPMENT OPPORTUNITIES:

Appropriate and well designed career development opportunities may prove to be

a vital tool to enhance the level of motivation of the workforce. A survey says that 27.3 per
cent of the IT professionals have revealed lack of such opportunities as the reason behind
leaving their earlier job.
IT organizations thus need to consider individual learning needs of employees and
address them suitably by creating learning opportunities for them. Realizing that employees
have definite career needs, organizations should not only chart different career paths in
accordance to such needs, but also make such paths known to all employees. Besides,
promotion routes within the organization should also be made public. Openness should be
the hallmark of an effective organization in this area. Such internal motivators may help
organizations retain their quality workforce.

III. JOB DISSATISFACTION:

Traditionally defined to be a positive emotional state reflecting affective

attitude or response towards the job situation, job satisfaction, or for that matter, job
dissatisfaction has been another major cause behind switching jobs. Such dissatisfaction has
stemmed from factors like dearth of challenging projects and absence of a suitable work
environment.
Positive changes in the physical work environment can help in staff retention;
designing working conditions that may suit the needs of different employees may prove to
be a vital retention strategy. The key issues herein may be the organization's posture towards
work hours and environment, communication concerning projects and their employment and
forms of supervision. Variables like telecommuting, compressed workweeks, work sharing
and flexible work hours may be introduced to suit specific needs of employees. Recognition
of professional work by way of awards and appreciation in public may also motivate
employees.

Challenges faced by HR professionals in an IT industry Page 16

ATTRITION ANALYSIS AT SIEMENS INFORMATION SYSTEMS LTD.:

The attrition rate at Siemens Information Systems Ltd is around 35%. However risk
factor analysis indicates that 75% of exits are either “Can Manage” or “Welcome Attrition”
Out of around 100 exit interview forms surveyed mentioned below are the top reasons for
attrition.

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 10 REASONS WHY ORGANISATIONS ARE NOT ABLE TO
RETAIN EMPLOYEES?

1. PEOPLE DON'T GET INTEGRATED:

Most organizations have an orientation program which is more of data-dump or focused

on compliance trainings being completed. The focus should be more on enabling employees
to form networks within themselves.

2. PERFORMANCE GOALS ARE UNCLEAR:

In a fast growing team or business the focus is on getting the thing done today, but rarely
are performance goals thought through and employees told as to which resources to approach
for help.

3. DEVELOPMENT IS ALWAYS TOMORROW'S JOB:

Culturally Indians are focused on learning. If learning adds value only to the job and not
to the overall career goals of the individual then the organizations seems too transactional for
the employee

4. THE PERSONAL TOUCH IS MISSING:

How comfortable are managers building personal bonds with their subordinates? A lot of
managers shy away fearing a bond will make delivering hard messages difficult. I would
argue that it's the other way round! Knowing employees on personal level makes a manager
know their strengths and weaknesses. Work allocation and employee development become
easier.

5. REWARD SYSTEMS ARE NOT TRANSPARENT:

Challenges faced by HR professionals in an IT industry Page 18

 Most employees who get salary increase think they got their raise for excellent
performance. Manager should share details about how they have been compensated and why
are they been rewarded or not rewarded.

6. PERCIEVED EQUITY OF REWARD SYSTEMS IS LOW:

Like it or not, employees discuss salary details and if there is any perceived lack of equity
then you have an issue!

7. GOAL SETTING PROCESS IS NOT SCIENTIFIC:

Most organizations impose a normal curve fitment, but do not train managers to set
realistic goals or goals that tie up with organizational or functional goals. This also leads to
point number problem of perceived equity of rewards.

8. EXTERNAL EQUITY IS MISSING:

Don't do an annual compensation survey when the market moves every 3-4 months. If the
practitioners feel that externally comparable professionals are being valued more, then they
will leave.

9. NO COMMUNICATION AROUND TOTAL VALUE:

If you offer benefits apart from only monetary terms communicate that to employees too.
Things like being a global or niche industry leader, value of the brand of the organization,
should also be made explicit.

10. NO CAREER PLANNING:

Are people aware of the ways in which they can grow in the organization? Who are the
role models within the organization? Do they know what they have to do to gain the
competencies to move to various levels?

Challenges faced by HR professionals in an IT industry Page 19

 SOLUTION TO THE PROBLEM

FINDING THE CAUSE OF ATTRITION

Conduct a survey among employees to find the reasons for attrition. If possible, conduct
exit interviews to know the reasons for resignations. If a key employee resigns, it should be
taken up on a priority basis and the senior management should meet the employee to discuss his
reasons for leaving and evaluate whether his issues bear merit and whether they can be resolved.
Steps can be taken to avoid similar situations from occurring in the case of others, in similar
positions.

WHAT CAN BE DONE?

Though, it is impossible to scrap problems totally, there are certain ways by which HR
managements can tackle attrition. Since every organization is unique, these companies need to
develop innovative ways to tackle their problems. Human Resources department of companies
must address these issues, and along with the management need to evolve strategies to retain
employees at all levels.

AT THE TIME OF RECRUITMENT:

 Select the right people through competency screening.

 Use psychometric tests to get people who can work at night and handle the monotony.
 Offer an attractive, competitive, benefits package.
 Make clear discussions about performance enhanced incentives and other benefits.
Keep these promises, later.

AT THE OFFICE:

Challenges faced by HR professionals in an IT industry Page 20

  An employee’s work must be communicated to him clearly and thoroughly. The
details of the job, its importance, the way it should be done, maximum time that can
be allotted to complete it etc., must be made clear. If there are changes to any of
these, let the employee know at the earliest.
 Give the employees necessary tools, time and training. The employee must have the
tools, time and training necessary to do their job well - or they will move to an
employer who provides them.
 Have a person to talk to each employee at regular intervals. Listen and solve
employee complaints and problems, as much as possible. Fairness and impartial
treatment by seniors is important. Help employees manage stress, both at work and if
possible, off work too. Give them special concessions, when in need. Treat the
employees well & provide dignity of job.
 The quality of the supervision an employee receives is critical to employee retention.
Frequent employee complaints arise on this issue.
 Provide the employees a stress free work environment. People want to enjoy their
work. Make work and work place cheerful and fun-filled as possible.
 Make sure that employees know that their work is important for the organization.
Feeling valued by their employer is the key to high employee motivation and morale.
Recognize their strengths and help them to improve those they lack.
 Employees must feel rewarded, recognized and appreciated. Giving periodical raise in
salary or position helps to retain staff.
 Offer excellent career growth prospects. Encourage & groom employees to take up
higher positions/openings. If they don’t get opportunity for growth within the
organization, they will look elsewhere for it.
 Work-life balance initiatives are important. Innovative and practical employee
policies pertaining to flexible working hours and schemes, granting compassionate
and urgency leave, providing healthcare for self, family and dependants, etc., are
important for most people. Work-life balance policies would have a positive impact
on retaining skilled employees, as well as on attracting high-caliber recruits.
 Implement competency models, which are well integrated, with HR processes like
selection & recruitments, training, performance appraisal and potential appraisal.

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NIGHT SHIFTS:

 Have doctors to advise them about

health problems and the ways and
means to deal with them. Provide
dietary advice: Do’s and don’ts.
Help them to maintain their health.
 Organize programs where people
from other professions, who have
night shifts talk to the employees
about their experiences. Other
organizations like Army,
Railways, Hospitals and various
government services etc., also
have night shifts.
 Organize training, counseling and development programs for employees. Tell them that
their work is important. Encourage the best performers to share their experiences with
others and guide others. The emphasis is to create the desire to learn, enjoy and be
passionate about the work they do.
 If needed, provide special lights in the office/workplace to ensure that their bodies get
sufficient vitamin D.

One distinct disadvantage of night shifts is the sense of disorientation with friends and family
members. Concentrate on this problem and develop innovative solutions and ways to deal with it.

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 3 R’S OF EMPLOYEE RETENTION

To keep employees and keep their satisfaction levels high, any organization needs to
implement each of the three R’s of employee retention: Respect, Recognition, and Reward.

RE
SP
EC
T
RECOGNITION

REWARD

Respect is esteem, special regard, or particular consideration given to people. As the

pyramid shows, respect is the foundation of keeping your employees. Recognition and rewards
will have little effect if you do not respect employees.
Recognition is defined as “special notice or attention” and “the act of perceiving
clearly.” Many problems with retention and morale occur because management is not paying
attention to people’s needs and reactions.

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 Rewards are the extra perks you offer beyond the basics of respect and recognition that
make it worth people’s while to work hard, to care, to go beyond the call of duty. While rewards
represent the smallest portion of the retention equation, they are still an important one.

You determine the precise methods you choose to implement the three R's, but in general,
respect should be the largest component of your efforts. Without it, recognition and rewards
seem hollow and have little effect – or they have negative effects. The magic truly is in the mix
of the three.

When implemented, the “3 R's” approach yields reduced turnover and the following benefits:

 Increased productivity,
 Reduced absenteeism,
 A more pleasant work environment (for both employees and management/employer),
 Improved profits.

Furthermore, an employer who implements the three R's will create a hard-to-leave
workplace, one known as having more to offer employees than other employers. It becomes a
hard-to-leave workplace – one with a waiting list of applicants for any position that becomes
available – purposefully, one day at a time.

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