We all saw how in 2009 enterprises across industry verticals witnessed a severe financial crunch affecting profitability, bottom-line and productivity. Companies crashed head-on in the backdrop of skyrocketing crude oil prices and plummeting consumer demand. For those of you who think the worst is over, think again.
The market has started showing signs of recovery and organisations are faced with a big problem of retaining momentum in growth. The only way this can be achieved is by investing in human capital. The increase in investments in human capital has not only increased wages, but also thrown up employee retention challenges.
Employees become exposed to more lucrative offers from competing companies, poaching becomes conspicuous, and retaining talent a gruelling task for leaders.
IMPACT ANALYSIS
When a key employee leaves an organisation, productivity and profitability, both are impacted, directly or indirectly. Though it is almost impossible to stop attrition, team leaders can make sincere efforts to minimise it. The CIOs who are perceived as the men who look after the IT health of their organisations are also entrusted with the responsibility of looking after the IT team and take necessary measures to retain them.
"Attrition is bound to happen, and we as
CIO have to live with it,"says John Nadar, the IT head of Tata Chemicals.
Though attrition causes an exodus of underperformers, average performers and spoilt brats, the exit of high performers leave CIOs in the lurch as it is sometimes very difficult to find suitable replacements in time.
"In IFFCO, we had faced an acute situation in early 2000 when every month one or two professionals quit without notice,"says S C Mittal,
CIO of IFFCO. But CIOs have now mastered the art of adapting to such situations and hence always have a back-up strategy in place.
"We learnt how to overcome the situation by outsourcing our needs in times of crisis. Since the last five years, we have hardly one or two professionals leaving in a year,"adds Mittal.
Moreover, it is also taken for granted that talented high fliers will move on to greener pastures, but while they are with you they will provide returns in exponential proportion.
MANAGING ATTRITION
There is no magic formula to deal with attrition as this phenomenon varies from industry to industry and company to company. However,
CIO can always try to glue the team together by various means like regular engagements with the team, taking care of the team and ensuring that the team is rewarded.
"Instill a value system that each employee should strive for excellence and that the output should always be of the highest quality,"suggests Nadar.
"Also, staying abreast with the times helps the CIOs immensely as the team members then look up to you for advice," he said. "Your team members should feel that under your leadership they will learn something new all the time,"says Nadar, adding that a CIO should not be bothered by under performers leaving the organisation.
Mittal of IFFCO has a slightly different view on handling the situation. He says a CIO can deal with most of these issues by being truthful and giving his team parental treatment. "Consider your employees as your own team,
Toread more visit
http://www.thectoforum.com/search/node/Fewer%20People%20more%20startups
