Managing attrition in Start-ups

Managing attrition in Start-ups

Attrition in an organization maybe due to high salary expectations, growth prospects, unfavourable workplace settings, job satisfaction, job location etc.

In the current settings, the job market is titled towards the candidate as there is a high demand due to the move towards technology considering covid. This demand and companies vying for the candidates with specific skill sets has created unprecedented salary increases disproportionate to the actual skills. Peer pressure has added to the candidates trying to get higher salaries thus changing jobs for any upside in salary.

The other problem is that companies are looking within the same candidate pool e.g., looking at a hand handful of job sites instead of looking beyond and not trying to forecast demand and skilling newer resources or identifying talent from a different pool. Let’s consider the scenario, on one side, Skill India and Sector Skill Councils provide training to resources but many in the industry don’t know of its existence nor the candidate pool in it. So, on one side we have skilled resources and the other side companies want resources, but both don’t get matched. Companies should adopt technologies such as hrapi.in to overcome such challenges.

Also read: Without adequate computer skills, employability will remain a challenge

Startups have for a long time acted as nurturing grounds for new talent by helping them learn and practice their skills. The larger companies hire the cream of the candidates from top universities with startups picking up the crumbs who they groom only to be picked up later by the larger players with higher salaries. Poaching is a rather common practice among the start-up and IT circle where niche talent can make the difference between executing or giving up on a project.

The HR face a tough time managing these resources who suddenly have come to realise that they are in demand, no more look at career growth but merely seek financial growth in most cases. This has led to issues such as moonlighting, violating notice periods, breaking contract terms, etc. The adoption of an employee registry like TRST Score hopefully can help HR manage the issues faced currently.

PWC in a recent survey identified that 74% of employees would not be open to working from the office on all 5 days of the week. Working from home has also created a vacuum in the bonding that was otherwise created with the organization. Many employees, and in many cases with the wrong intent, also try to exploit the current scenario. Managing employees in work-from-home scenarios is always a challenge. Although many monitoring tools have evolved, it is a delicate balance between freedom and control.

An inability to adapt quick enough has left HR functions across industries in a tough situation reeling with the Great Resignation.

HR’s also have the task of ensuring job satisfaction which they themselves may not be directly responsible for but must rely online managers to create a conducive environment for the employees reporting to them. This means training line managers and potentially sensitizing them to the newer ways of working with Gen – Z. Peer pressure management is another worry the HR’s faces. The salary discrepancy between loyal employees and their new entrant peers is another nightmare for the HR.

On one side, costs must be controlled, and other side demands have to be met while balancing the salary of the old and new.

Based on the newer expectations of these younger generations, companies need to create systems that can accommodate them. HR must focus on creating an engaging work environment and offering competitive benefits and compensation packages. This could include offering more flexible work arrangements, competitive salaries, and benefits.

Working with global and teams and ensuring diversity and inclusion helps in building a workforce that brings many different views to the table. This is necessary to scale.

HR will need to rely on tools and platforms that are efficient in collecting talent from across the globe including gig workers who could form a great substitute for the talent shortage. Gig worker’s economy will see an uptick and could even be a boon for companies which don’t want to take on the risks of full-time employees who they may need only for a short duration.  History has shown that the economy falls every 4 years which gig workers can help to mitigate. Platforms like TRST Score help HR teams hire with ease and speed. HRapi.com and other such platforms help create streamline the hiring process across industries and platforms.

Instant appreciation and reward models need to be evolved in order to create a sticky workforce. Managers have to be educated and sensitized to these newer models including the appreciation for a diverse workforce and act swiftly where needed to nip any issues that might cause cultural tremors. An inability to adapt quick enough has left HR functions across industries in a tough situation reeling with the Great Resignation. Once this storm settles and companies can get the formula right, we will see the start of the Great Onboarding or Great Firing.

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Sudhakar Raja

Founder and CEO of TRST Score: World's Only Employees Trust Score Platform

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Sudhakar Raja

Founder and CEO of TRST Score: World's Only Employees Trust Score Platform

December 2024

Work Pressure & Burnout - Dec. 24
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