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Ramblings of a citizen and experiences of an entreuprener

This is about my way of life. It has two parts, one is related to the world around me and the other part is my experiences as an entrepreneur. Check out our website www.shaktiindia.com

Thursday, August 13, 2015

The Reluctant Entrepreneur: Beating Attrition




The last few weeks have been particularly laden with resignations. Possibly the new found hope generated by the “make in India” policy of PM Modi has begun to generate opportunities and new jobs. My early decision not to allow either myself or the Company to be demoralised by a resignation has paid rich dividends. Instead we decided to accept resignations as part and parcel of a growing company and looked at ways to 'resignation proof' the company.

The key to having an attitude of acceptance is the fact that each of us has reached a position of responsibility in the Company where we accept resignations because we have ourselves resigned to take advantage of opportunities in the past. Basically leaving one job and taking up another is part of development of a career and harvesting rich experience. This is beneficially to the Company when it hires a new person with experience, obviously he has resigned from some other place.

The most obvious answer is pay a salary much higher than industry average. The reason this does not hold water is because the best paying companies also have resignations and two if your Company is paying higher than its capacity, you know where it is headed and you will have resignations faster than rats deserting a sinking ship. So paying more or less is not a solution. We have tried the concept of loyalty bonus. We pay a lumpsum at the end of three years if the employee is still working with us, that too is not a foolproof method.

Creating an environment with opportunities for growth and developing a sense of camaraderie through team work. This too will not stop people moving on but one good side effect is that it definitely creates a good environment for the people who are still working in the Company.

I regret having to change one policy that we started with. Initially our appointment letters did not require the employee to give notice when they wished to leave. The logic being, once an employee has decided to change, his commitment and involvement reduces, in such a situation it is better he leaves immediately. However, we now insist on notice period or pay in lieu of same to allow for transition and to ensure our customers are not inconvenienced.

Fast changing technology whose acquisition cost is reducing everyday gives us the best opportunity to beat attrition. Yes if you can afford it, robots would be a high end solution, operations like welding painting are done by robots, for smaller companies this may not be feasible.

What is feasible is using menu driven systems which allow anyone to operate with minimum training. We used to record orders and make invoices manually. When a new person joined it took a while for them to understand the products, variations, customers and most difficult was making an excise invoice correctly, added to that was the complication of sales tax. Often, we used have issues at the border because the tax authorities would stop the vehicle as the CST no was not incorporated in the invoice. Today the story is different, it is menu driven, with drop downs for selection, certain information has to be filled and calculations and printing automated and therefore error free.

So while we cannot stop anyone from leaving we have made the process a little less painful for us and our customers by adopting technology and putting systems in place. These IT driven systems ensure easy training and consistent process. Now the focus is not on retention but on pushing to finds ways to reduce dependency on human intervention and ultimately reducing the issues involved with attrition. Merry Christmas and happy hiring in 2015.












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