Every year over three million graduates and postgraduates are added to Indiaâs workforce. In 2015, close to one-fourth of total new job opportunities posted on job portals were for freshers and professionals with less than three years of working experience. At the same time, some of the employment sectors that absorb them are unable to retain talent for a long term. In such a scenario itâs imperative that candidates applying for freshersâ positions understand the demands of industry while the recruiters adopt strategies to prevent attrition. âIf you donât take care of your employees, somebody else will! Itâs a war for talent out there. As clichÃ©d as it sounds, it is true because every organization is eyeing the same talent in the market. All organizations would hence want to ensure that their talent is kept engaged with the work that is interesting, that adds value to them as a professional and also ensures that their remuneration is right,â says Rupali Sharma, Head of Recruitment at redBus, Indiaâs largest bus ticketing firm.
Why is employee retention important?
Some of the sectors that have witnessed high attrition rate in India in the last few years have been IT, ITES, healthcare and banking in the range of 20-25 percent. Pay packages, career trajectory, new employees commanding more salary and relationships with supervisors going sour are some of the reasons that force people to switch jobs.
Workforce retention is important as employee replacement costs can reach as high as 50 to 60 percent of an employeeâs annual salary. Good strategies help offset employee replacement costs and reduce indirect costs such as decreased productivity and loss of clientele. Moreover, recruiting and training new employees take time.
Better ambience, lucrative salary, comfortable timings, growth prospects are some of the factors which prompt an employee to look for a change and vice versa in case an employee stays with an organization. Some of the sectors that have witnessed least attrition thanks to better environment are services, hospitality and retail. âIn a rapidly evolving business ecosystem, talent has supplanted capital as the most important resource for organizations. Businesses now understand the vital role employee retention can play in their success. To begin with, retaining employees allows organizations to cut down on time and money spent on replacing them,â explains Pushpa Bector, Head Premium Malls â DLF, a big name in retail.
Head Premium Malls â
In a rapidly evolving business ecosystem, talent has supplanted capital as the most important resource for organizations. Businesses now understand the vital role employee retention can play in their success. To begin with, retaining employees allows organizations to cut down on the time and money spent on regularly replacing them.
Initiatives in hospitality industry
Various sectors have their own demand and skill sets requirements. As per Ministry of Tourism, the hospitality sector requires 2.03 lakh professionals annually against a supply of 18,000 hospitality graduates. However, big brands like ITC, Oberoi and Taj witness stiff completion even at entry-level positions which means that quality is what the recruiters seek. âRight proportional mix of standards, deliverables and commitment towards our guests and employees certainly makes it a wishful career opportunity for many aspirants who are groomed and nurtured in the organization and suitably recognized and rewarded for their invaluable contribution,â says Megha Saxena, Head HR, Radisson Blu MBD Hotel Noida.
Hospitality industry puts a premium on talent. âWe welcome any aspirant who exudes the right attitude â Motivation, Belief and Determination and can embrace our culture. We visit all top Hotel Management Institutes that promises talent,â Saxena added.
Radisson Blu MBD Hotel
Right proportional mix of standards, deliverables and commitment towards our guests and employees certainly makes it a wishful career opportunity for many aspirants who are groomed and nurtured in the organization and suitably recognized and rewarded for their invaluable contribution.
The organized retail sector contributes 2-3% to Indiaâs GDP. This has created demand for skilled employees within the sector. âTraditional functions such as operations, marketing, finance, planning, logistics, merchandising, and store designing are being complemented by newer hiring profiles such as floor manager, category manager, HR, supply chain management, customer service etc. There is now sufficient demand for trained professionals with good interpersonal, communication, planning and organisational skills. Retailers are also investing in mobile app developers and warehouse workers to keep up with the changing model of the retail sector,â said Bector.
âEmployee retention can help businesses scale and grow rapidly, as the longer employees stay in one job, the more skills they tend to acquire. Organizations, on the other hand, are not affected by the loss of momentum caused by a perpetually changing workforce,â she added.
Changing rules of the game
To retain employees, companies are coming up with innovative mechanism and offering various types of practices like ESOP (Employee Stock Options), Management Development Programs, free food and even âsummer hoursâ policy in which an employee can choose to work half-an-hour more each day from Monday through Thursday and take off early on Friday at noon. Start-ups and more so the ones working in the web space have entirely changed the rules of the hiring game with their unconventional approach and employee retention policies.
Prof. Uday Salunkhe
Mitigating the risk of losing candidates
During campus placement, the parameters increasingly being used by recruiters include steady academic record, quality and learning insights from summer internship/prior work experience, learning agility beyond the classroom, whether the person interesting to be hired, preparation done by the student on the specific company and the industry, his/her cultural fit with the employing organization etc.
As told to Aeshwarya Tiwari
Stay tuned to university.careers360.com for more feature stories and updates on Indian recruitments