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Attrition Vs Retention

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  • #35320

    J
    Member

    Hi Forum,
     
    Currently I am doing a project on high employee exit ratio in a Call Center.
     
    I am caught in a situation. My BB suggests that I should look at Retention ( Tenure of the employee) as the CTQ for my project, where as my business leaders says since business measures Attrition as metric, that should be the CTQ. 
     
    Though, both sound to be same, I feel my improvement strategy and analysis data collection etc would be different. 
     
    Has any one done any SS projects on the above.. any suggestions what should be the approach.
     
    Regards
     
    Sri

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    #99978

    chandni
    Participant

    Attrition should be the metric. Tenure of an employee would be one of the attributes.
     
    P:S: Please send me a copy of your project.

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    #99979

    Prof.Vedu Mitter
    Participant

    Critical to Quality Requirement is Retention Ratio; however Attrition is the defect. Therefore Attrition is the metric to be tracked for improvement.
    Prof.Vedu Mitter
     
     

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    #99984

    Mamloo Fernandes
    Participant

    While measuring attrition ,tenure of the employee is important as it shows the quality of attrition and will give you insights on its causes especially considering a contact center environment.
    If the above assumption is true,growth prospects of a senior rep. in your org. will have to be looked into.
    You have to create avenues for growth and responsibilities in the org. for deserving candidates. 
    If the assumption is false,the work environment or the management involved need to be questioned as they could be responsible for bringing monotony which is a major cause of attrition in a contact center among fresh graduates.  
     

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    #99990

    Pawan Anand
    Participant

    Dear Sri,
    Deliverable is reduction in attrition, hence it becomes CTQ.
    However, studying the root causes will lead to causes for retention, hence it becomes important. It may help you in finding out what made these people stick around and others leave.
    e.g. locals donot leave as frequent so solution may be getting more locals in your centre.
     

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    #99994

    Sreekanth.AK
    Member

    Tenure of employees is one of the critical Xs. Lot of research have proven that tenure of employees is correlated with attrition. Especially in call centre environment highest attrition happens in first few weeks (due to reality shock & inability to cope with night working) and also after 18months (due to boredom, health issues & perceived lack of growth).
    I have done extensive work on retention. I have developed few analysis tools to calculate retention Vs rehire cost. Etc. I have published few of my articles. In the latest NHRD magazine, I have published an article on engagement & retention.
    I have also developed a Six sigma score card on HR which drills down to vital Xs.
    A gist from my latest article is given below:
    The point at which an organization begins to incur cost in excess of incremental replacement costs is dependent on three factors:
     

    Turnover rate
    Experience quotient
    Size of the Organization
     
    Each factor can worsen or mitigate the effect of the others. So, for example, even a very high turnover rate at an organization with a large number of tenured employees may be manageable, whereas a much lower level of turnover may trigger the “chaos point” at a site with few experienced workers to train and coach the newcomers.
     
    There is a real need here for retention metrics that can capture performance loss to the organization from turnover, not merely by head count. High performers contribute at different levels,
    so the aggregate turn over numbers always mask the true impact of turn over.
     
    By weighing employee turn over data based on the performance of  ‘As’,  “Bs’ and ‘Cs’ who depart, organization can better understand lost contribution to the organization, not simply volume of turn over.
     
    In pockets of severe talent shortage, some firms can afford to pay more for skilled employees than others because of their ability to leverage it better than labor market competitors.
     
    With out some assessment of this leverage, premium firms risk paying more to retain special talents than is economically rationale; for companies not leveraging scares skill set in a core competency area, retaining even a ‘A’
    players may be too expensive.   
     
     
    Logic for Talent Mix Management
     
    Employee Performance is skewed in any organization: Companies over compensate (and retain ) ‘C’ talent and under compensate “A” talent, driving it out of the organization. By better understanding  the  magnitude of the performance skew, organization can craft performance management system more suited to retaining “A” talent.
     
    Declining productivity with tenure: After reaching peak, productivity in much position begins to decline over time. Companies recognizing productivity tails-offs can manage tenures, structure rewards that do not retain people past peak productivity.
     
    Bidding Wars in Labor market “Hot Spots”: When in sufficient talent exist to meet demand, some corporate bidders are  at an advantage because they can leverage talent better than others. Companies that can not leverage as well premium to keep it.
     
    Talent Insularity: Confident of the quality of internal talent pool relative to external market, many companies rely primarily on internal grooming. Insularity to the external market, however, can have the effect of reducing creativity, flexibility to changing external environment; most damaging in companies where internal talent falls below market average.
     
    Internal Churn over: In an effort to maintain division economics, some business units trying to manage down both external turnovers in high- churn areas. These overall retention reduction goals   may stifle internal churn that is beneficial to the organization.
     
    The Cost of inexperience: intuitively, HR executives and line managers have long recognized that sustained high levels of turnover have a significant negative effect on productivity .High turnover, resulting in fewer experienced employees, means a smaller portion of the work performance has the institutional knowledge and organizational learning to do their jobs effectively.
     
    However, beyond the mere shrinkage of the poll of effective workers, turnover has a more long lasting effect on the productivity of the entire organization. As experienced employees leave, they take with them years of training and learning, and leave vacancies for new hires that must start at ground zero. These new employees require acculturation by the remaining cadre of tenured employees. At excessively high levels of turnover, too few tenured employees remain to train the too quickly growing numbers of new hires, resulting in a discontinuous plunge in productivity.

    You can see more details in the article.
     
    Regards,
     
    Sreekanth AK

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    #100022

    Reva
    Participant

    The business case here is to bring down the high Attrition Rate. So attrition % would be the ideal CTQ(Y metric) in this case.
    As far as tenure is concerned, it would be one of the X’s around which our analysis would be based. We can use the results to conclude as to which tenure category shows highest attrition rate. This would be followed by the action plans for retention of employees comensurate with their tenure category.

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    #100027

    Yadav
    Participant

    To my knowledge the attrition is the key metric for ur management performance. Where as attrition is a ratio i.e. rate at which employees are leaving the companies, retention is an absolute term – how long the employee works in the organization?.
    Ultimately u need to understand – what is expected out of the project ? Reducing the attrition rate or increasing the retention period ? For both the cases what is the benefit to ur organisation and ultimately the metric which makes sense should be choosen. To my knowledge the X’s for retention couldbe significantly different from those of attrition.
    Example : Attrition might be related to one particular dept. and retention has a much wider scope. In both the cases we need to understand the impact on the business or function of that area which is affected.
    Regards
    Ajit

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    #100074

    Arora
    Participant

    Hi!
    The CTQ is Retention. This is because, with retention being Y, we will be able to understand the requirements of an employee as a parameter of F(X).by achieving high levels of retention, attrition rate is automatically controlled.Though the scope of the project might differ by fixing the CTQs as attrition or retention, the parameters governing these factors are almost same.It is obvious that the critical to quality factor is retention and the defect is attrition.
    Retaining a contact center employee is extremely diffiult considering the demand a 6 months experienced call center executive.Personally, I am seeing lot of people offered about 60-70% more than what they get in their current companies.this is partially because of the fact that these companies dont offer high income growth/period to existing employees in comparison with what they offer to someone equally competent willing to come from another company.This creates an environment where the employees start feeling staying in this company for 2 years would only fetch them a fraction of what they could accomplish by hopping 2-3 companies in the same period.This can be reduced by making commitments to emplolyees that x% hike will be given during every appraisal and that x% should be geater than of equal to what they would offer to someone who comes from another company for the same position.
    also remember that attrition involves uncontrollable parameters -for eg, a call center agent might be interested in software and might have got a software job, he might simply prefer to work in a low-paid day shift job, he simply doesnt like the idea of cal cneter etc.These factors cannot or neednot be addressed at al.whereas retention will have more fruitful factors to work on.

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    #101566

    nancy
    Participant

    Sreekanth,
    How

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    #101567

    nancy
    Participant

    Sreekanth,
    Let’s try this one more time…How can I obtain a copy of your article on Retention.  We are having an almost 90% monthly turnover in our contact center!
    Thank you!

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    #101603

    Arora
    Participant

    Hi Sreekanth!
    Your findings seem very interesting.Can you send me a copy of your project?. My email ID is [email protected] .
    Thanks.

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    #101657

    Gagan Sethi
    Participant

    Very intresting thoughts and study, Can you please mail me a copy of the project at [email protected]
    Regards
    Gagan

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    #103423

    Adarsh
    Participant

    Hi Sreekanth!
    The clip of your article was very intersting. Could I have the complete article. Could you mail me at [email protected]
    Thanks

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    #104187

    Fauzia
    Participant

    Hello Mr Sreeknath, I agree with others and would like a copy of this article as well. Cud you pt me to it or email the same to me at [email protected].
    Much thanks!
     

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    #106674

    Titu John
    Member

    Critical to Quality Requirement is Retention of employees & Attrition is the metric to be tracked for improvement.

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    #107995

    Belkhede
    Participant

    Hi,
    Kris, in your case although you have suggested taking into account retention as the CTQ, while we are studying the attributes for retention we would typically focus on X’s due to which employees stay in the organisation. The same X’s are also applicable for the employees who choose to quit. For such cases we need to find the X’s which have resulted in their attrition. Hence what we need to focus on would be attrition and not retention. By addressing the X’s which influence attrition we will be in a better position to increase retention, rather than vice versa.
    Yours views on this please.

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    #110901

    Ravi Rana
    Participant

    I am curious to know if there are any method or formule to calculte attrition rates. Is there any specific models to support the theory.
    Your help would be highly appreciated.
    Thanks in Advance
    Regards
    Ravi

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    #114825

    Diorio
    Member

    Can I get a copy of your project?
    Rich
    [email protected]

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    #114834

    Mikel
    Member

    I have also done a lot of work on this and I think your analysis is all wet.
    You don’t have a way of screening for the right personality at the front end is why you lose so many in the first few weeks. Your company is not addressing training and growth is why you are losing so many at 18 months.

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    #152775

    Shabi Shahul
    Member

    I just want to highlight one of the critical X’s that you might overcome while doing an attrition six sigma project.
     
    The “negative reference checks” who are been managed out of the company after the background verification is a overhead cost in which most companies now-a-days shed their money a lot. Addressing this issue by reducing the mean number of the days spent by these employees in the organization would considerably reduce the overhead cost. The project leader would have to work on reducing these days.

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    #152776

    Whitehurst
    Participant

    Hi,
    I have been viewing and listening to many people talking about attrition project specially in service industry. Some claims they found the right x’s and reduced attrition, some has already initiated a project etc. The amount of malpractices in service industry will never allow anyone to reduce attrition.
    I have seen people initiating a project on attrition, have attrited themselves.
    One of the first thing one should do is to list down Demings Laws and see where your organiszation stands with respect to those laws. Just making your organization follow those laws is a project by itself and I am sure it will also take care of attrition plus some other problems also.
    Good Luck !!
     
    regards
    joe
     
     
     
     
     
     
     
     
     

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    #152817

    PV
    Participant

    Drop the project right now-too many similar projects have started in the call center industry and have failed as there are too many qualitative parameters involved and more often than not poor management is the cause for attrition and then there are some causes which will never be in the organizations control. This is a “solving world hunger project”
    Sorry to discourage you but this is the truth but I understand that you might have been TOLD to do the project and guys above you do not understand better

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    #163559

    Gaurav Kapil
    Participant

    Hi
       Attrition is your project “Y” and retention is one of the CTQs……If u r doing a project in voice process then take avail time also as one of the factor impacting attrition…..also take UL(Unapproved leaves)……..stack ranking ….becoz in some orgn franework for stack ranking is inadequate resulting in showing wrong agent as poor performers….and in long term attrition…

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    #167147

    prathyusha
    Participant

    hi sreekanth,
    i am planning to do my p.hd will you send u r article and can u suggest me any other topic and objectives of it
    thank u
    prathyusha

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    #171313

    Ayinwi
    Participant

    Sreekanth,I’m researching attrition, root causes, and various calculation methods across industries. I think your article would provide great context. Could you please send me a copy? [email protected]

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