Wednesday, September 12, 2007

Itís about retaining right, not all

Attrition is good as it indicates growth of the economy, growth of industries and also an increasing number of talent with different options to tap, top HR heads of leading companies said in Mumbai recently.

"Attrition is not bad for organisations. It is important to retain the right people and not all people," Infosys' Global HR Head, Mohandas Pai, said at SaHveeRyam, a human resource management conclave organised by the S.P. Jain Institute of Management and Research.

"If the attrition level is high, then educational institutions will be pushed to create more talent," Covansys, Global HR Head, G Ravindran, said.

Pai said 800 employees had left Infosys this year as they opted for higher studies. Last year, around 650 employees had quit the company.

He said attrition is not a problem but a reality for the organisations and they should be selective in handling it.

Ravindran said "that for the next seven to eight years this trend would continue and you should try and keep back the talent you want to keep." "In the process, talent is not getting lost; rather the mobility is good," he said.

Whirlpool's HR Head, Asia, Sanjay Singh, said it is not only salaries for which employees leave their 

Employees should be given a role ahead of what they are capable of so that they are comfortable in the 
organisation. ó PTI

... But it is not good for revenue

Leading IT companies are a worrisome lot these days as high attrition rate is slowly but gradully eating into their revenue.

Indiaís two biggest IT players ó TCS and Infosys Technologies ó currently spend about 4 per cent of their total revenues on training. Infosys said the company has spent $ 5,000 per fresher in FY-07, while Wipro spends 2 per cent of its revenue on training.

Hema Ravichandar of Infosys termed this as a ''cyclical phenomenon''.

''Traditionally, Q1 and Q2 are periods when people leave for higher studies, so these are also times when attrition is slightly higher than the rest of the quarters,'' she added.

A recent study on the attrition level of the company found that the maximum attrition took place among the employees who are in age group of 26 to 30 years. It found that the segment of employees who are most vulnerable to change, are those whose experience ranges between 2 and 4 years.

The most stable chunk of employees was found to be in the age group of 39 to 45 as they find themselves to be unsettled in their jobs and companies that they have been associated.

Attrition trend also revealed that women employees were less prone to frequent job changes than their male counterparts. For every 10 males jumping the fence by changing the job, there were only two females crossing over.

The immediate gains in salary package was found to be also responsible for job change in almost all the sectors. However, the growth potential remains an important reason, prompting the employee movement. ó UNI