Have you also noticed that IT and startups are facing a major HR management challenge? The high rate of attrition is becoming a big problem for the industry.
It seems like talented employees are always on the move, looking for better opportunities elsewhere. With so many companies out there vying for the same talent pool, it’s hard for employees not to get swayed by better offers. Are the employees right in doing this? What are some factors that push them to do this?
Let’s discuss some of the major factors causing these problems
One of the biggest reasons is intense competition. Companies are constantly trying to outdo each other and attract the best talent in the market. This leads to the poaching of employees, and when this happens often, it results in a high attrition rate. Another reason is a lack of work-life balance. With the industry’s demanding work culture, employees often end up working long hours and burning out. And let’s face it, no one wants to work at a place that doesn’t allow them to have a life outside of work.
Career growth opportunities also play a significant role in this issue. Employees feel that there are limited opportunities for career advancement within their company, leading them to seek employment elsewhere. In some cases, employees feel that their compensation and benefits do not reflect their contributions or the market value of their skills, leading them to look for greener pastures.
Finally, culture and values are important for employee retention. One would think that companies that prioritize employee well-being, career growth, and work-life balance tend to be more successful at retaining employees than those that don’t. Yes, it plays a role in 40% of cases but unfortunately, that is not the case in 60% of the cases which is why HR is challenged. What is the magic sauce, other than salary, that can retain an employee?
The issue of HR is further complicated by working from home; they are unable to create a company culture or define values/ethos. Peer pressure, friends and family members influence and complicate the issues even further.
So, what can companies do to address these issues? Well, there are several strategies that can help
Firstly, companies should prioritize developing and implementing an employee retention strategy. This strategy should focus on providing employees with opportunities for career growth and development, regular feedback and recognition, work-life balance, and fair compensation and benefits packages. In short, make employees feel valued and create the space for them to express their feedback so that they can be addressed in a timely manner.
Transparency is also important. Platform like TRST Score helps bring accountability from the employee. Just like credit scores made sure that people became responsible with their credit behaviour by acting as a deterrent, TRST Score can ensure that the values and ethics that are currently lacking in the ecosystem can be brought about and deter acts like Accepting Offers and Not Joining, Absconding, Fraud, connivance etc.
Organizations also find it difficult to embed their values in consultants, gig workers and other part-time workers considering the nature and duration of their employment. This is where a platform like TRST Score can create a single standard across the organisation for how issues of ethics are dealt with.
The problem of peer pressure is a strong issue for employees. Mentorship programs and one on ones with senior leaders to discuss their career and development in not just the context of performance but also career and future planning is necessary for employees to be able to see the path that is ahead of them and appreciate the journey that they need to take as part of their growth. They must be guided to realise that wildly jumping from one organisation to another may lead to short-term growth in income, but it is not a sustainable method to grow one’s career.
Companies should provide employees with opportunities for career growth and skill development. This can include access to online courses, mentoring programs, and opportunities for cross-functional training.
Finally, prioritize employee well-being. Providing access to mental health support, wellness programs, and work-life balance initiatives can help reduce stress levels and promote a healthier work environment. Employee assistance programs that offer confidential counselling services, support for substance abuse or addiction, and financial advice can also benefit employees.
Wellness programs that offer access to fitness classes, healthy food options, and wellness coaching can also be a great addition. Work-life balance initiatives can include flexible work arrangements, such as remote work options or flexible working hours. Employees must also use these facilities correctly and not overextend themselves by moonlighting in a manner that ruins their productivity.
In conclusion, the IT and startup industry is facing an HR management challenge and high attrition rates. But companies can address this issue by implementing employee retention strategies, investing in training and development, promoting transparency, and prioritizing employee well-being. By creating a workplace that attracts and retains top talent, companies can drive business success and growth in the long term.
