Digital Fluency Bangalore University NEP Notes

Unit 1 Overview of Emerging Technologies [Book]
Artificial Intelligence VIEW
Machine Learning VIEW
Deep Learning VIEW
Database Management for Data Science VIEW VIEW
Big Data Analytics VIEW VIEW
Internet of Things (IoT) VIEW VIEW
Industrial Internet of Things (IoT) VIEW
Cloud computing and its Service Models VIEW VIEW
Cyber Security VIEW
Types of Cyber attacks VIEW
Unit 2 Applications of Emerging Technologies [Book]
Artificial Intelligence VIEW VIEW VIEW
Big Data Analytics VIEW VIEW
Internet of Things (IoT) VIEW
Cloud computing VIEW
Cyber Security VIEW VIEW
Unit 3 [Book]
Effective Communications Skills VIEW VIEW VIEW
Creative Problem Solving VIEW VIEW
Critical Thinking VIEW VIEW
Collaboration VIEW VIEW
Teamwork Skills VIEW VIEW
Innovation Thinking VIEW VIEW
Design Thinking VIEW VIEW
Use of tools in enhancing Skills VIEW VIEW

Models of Employee Engagement

The Deloitte Model

Engage employees by creating a culture where people are involved, respected, and challenged.

The premise of the Deloitte employee engagement model is to create a workplace that’s “irresistible” to workers somewhere they want to work every day.

The key to following this model, according to Deloitte, is culture. There are five core elements to this culture, each with its own accompanying actions.

As in Zinger’s model, the foundational element of engagement is work that employees find meaningful. Deloitte identifies four key elements that are necessary to help employees find meaning in their work:

  • Autonomy: People thrive when given greater independence and control over their work. Give employees ownership in order to make their work more meaningful.
  • Cultural hires: Academic accolades and impressive job histories won’t tell you whether or not someone will connect to your organization’s goals and purpose. Prioritize hires who fit your culture and are interested in the work itself.
  • Small, empowered teams: Small teams encourage camaraderie, autonomy, and fast decision-making in a way that large teams simply can’t. Follow Jeff Bezos’s “two-pizza rule” to keep your team at the most productive size.
  • Time for slacking: Employees who are run ragged are likely to face burnout. Create room for rest, whether it’s something like Google’s 20% rule (providing company-sponsored time for passion projects) or simply enforcing time off and providing personal days.

Hands-on management

Managers make or break an employee’s experience at your company. Align and empower management to engage your employees with these actions:

  • Setting clear, transparent goals: The goals that managers set for teams and employees must be simple and regularly revisited. Otherwise, employees and managers can quickly become misaligned and frustrated. Consider a goal-setting process like objectives and key results (OKRs), championed by companies like Google and Intel.
  • Coaching: Managers who work alongside their employees and provide regular feedback will likely see improvements in performance and engagement. Equip managers with the employee engagement tools and training they need to coach their teams.
  • Investing in management development: Given the importance of managers to employee engagement, organizations should prioritize creating the best leaders possible. This starts by hiring the right managers. But don’t stop there; provide mentorship for first-time managers, and prioritize ongoing learning and development for management.
  • Managing performance: Traditional performance reviews are too infrequent and formal to really help managers and employees develop. Rethink performance management to emphasize growth opportunity over “grades.”

Positive work environment

If you want employees to look forward to coming to the (virtual or physical) office every day, you need to create an environment where they feel comfortable, respected, and appreciated. To create this kind of workplace, you’ll need the following:

  • A flexible, humanistic work environment: Your employees aren’t robots, and their personal lives don’t disappear at the office door. Respect the fact that your employees are human that they sometimes have bad days, too much on their plate, or work/life conflicts. Offer policies (such as working from home or flexible schedules) that allow people to work in the way that’s most productive for them.
  • A culture of recognition: Develop a peer-to-peer recognition program to foster a culture that continually celebrates progress and accomplishments.
  • An inclusive, diverse work environment: Create a culture where everyone feels more empowered to share their ideas, knowledge, and skills. Take steps to build a more inclusive workplace, and everyone will reap the rewards.

Trust in leadership

The final, critical element is leadership that is committed to their employees. This commitment breaks down into four factors:

  • Mission and purpose: Leaders must clearly understand—and clearly communicate—the company’s purpose. Deloitte’s research shows that “mission-driven companies have 30 percent higher levels of innovation and 40 percent higher levels of retention, and they tend to be first or second in their market segment.”
  • Continuous investment in people: Leaders must invest time and resources in their people. We already mentioned the importance of learning and development, but time is just as important. Executives in high engagement companies take the time to get to know individuals, offer feedback, and involve themselves in the life of the company.
  • Transparency: Modern employees aren’t content to be a cog in the wheel. A culture of transparency helps employees feel involved in the company and fosters trust.
  • Inspiration: Leaders set the tone for the organization. Their words, actions, and vision for the company drive employee morale.

Growth opportunities

Employees who stagnate at work lose the drive to do their job. Avoid this scenario by providing the following:

  • Training and support on the job: Comprehensive employee onboarding processes, continual peer and managerial support, and adequate training are all essential to growth for both employees and the company.
  • Facilitated talent mobility: Employees need to know their career is going somewhere with your company otherwise, they’ll likely look for opportunities with other employers to move forward. Emphasize internal hiring, and be transparent with employees about growth opportunities.
  • High-impact learning culture: Give employees resources (an education stipend, for example) and cultural support to independently build their knowledge. Provide opportunities to learn from other teams, try new tasks, and build new skill sets.

Zinger Model of Employee Engagement

David Zinger, a well-known global management consultant, introduced the Zinger Model of Employee Engagement.

With over 25 years of experience in this field, Zinger’s work focuses on improving employee engagement by building meaningful workplace relationships.

The David Zinger model illustrates the modern workplace’s various features, including employee experience, motivation, and commitment. In addition, the Zinger model provides leaders with 14 critical strategies that have the potential to enhance the employee experience.

This model balances three inputs:

  1. Organizational

Organizational input is the development of a culture where employee engagement is valued, prioritized and shared amongst all employees.

Recognition and appreciation are key aspects of this. At the top levels of management, support should be given, as well as investment in organizational resources and education, to increase engagement.

  1. Leadership

Leadership input is the development of leaders who are themselves engaged.

Zinger’s model states that employees will not become engaged if their leaders are not, so this is a key step.

Leaders must engage authentically with their employees, paying close attention and working enthusiastically to develop their team’s strengths and helping them overcome weaknesses.

  1. Individual

Individual input is the employee’s own engagement contributions.

Employees should work to focus on the positive aspects of engagement, channeling their energy in the correct direction while making space to include fun in their work life. Ownership of one’s own work and contributions to the organization are key factors here.

Zinger’s model posits that when those three inputs are developed, employee engagement will increase.

The Zinger engaged model is arranged like a pyramid, with the bottom four blocks representing the leveraging of employee strengths, making meaning in work, leveraging employee energy, and employee well being. The next level consists of three blocks that represent living in the moment, fostering a strong workplace community, and proper recognition of employee effort. The third level is two blocks, representing the path of career development and excelling at a performance. The final level, which is the culmination of all the levels below it, is the achievement of results.

Uniting the company

The second row of the pyramid builds upon the essentials to connect individuals with the larger organization. The key actions here are to build relationships, foster recognition, and master moments.

  • Build relationships. We all know good teamwork is essential to achieving outcomes, but generic team-building and platitudes aren’t enough for engagement. Leaders need to create and encourage opportunities for employees to develop connections at work through in-person or virtual team building exercises. People who make friends at work are more than twice as likely to be engaged as those who don’t make friends.
  • Foster recognition. This tactic doesn’t mean giving an occasional promotion or a good performance review; it means creating a culture where both employees and managers contribute positive employee recognition ideas to keep employee engagement high.
  • Master moments. To be engaged, employees must be mentally and emotionally present in their work. Managers can facilitate this by using daily interactions to enhance connection, solicit input, and understand challenges. The point is to keep employees present by creating meaningful, useful touchpoints throughout the workday.

The necessities

The bottom of the Zinger pyramid focuses on the essentials that every human needs in order to do good work. The key actions at this stage are to enhance well-being, leverage strengths, make meaning, and enliven energy. Here are some employee engagement ideas that you should implement:

  • Enhance well-being. Employees can’t do their best work if they’re sacrificing their physical and mental well-being for the job. Building a culture around psychological safety (not fearing harassment or discrimination), respectful managers, ample vacation time, and provisions for sick leave all improve employee engagement setting the stage for success.
  • Enliven energy. The goal here is to seek to create a work environment where employees bring energy to their work and gain energy from their work. The first is largely tied to well-being. The second is up to managers. Regularly check in with employees to monitor energy levels. Then, look for patterns to identify barriers and energy drains.
  • Make meaning. To stay engaged long-term, employees must find purpose in their work. In fact, 90% of people rank meaningful work as more important than the size of their paycheck. Leadership must help their employees understand the why behind their work how their role contributes to the larger company and its impact on the world to keep them motivated.
  • Leverage strengths. Leadership must create an environment where employees can exercise and grow in their individual strengths. This fosters engagement and makes your organization stronger by enhancing the existing strengths of your workforce.

Boosting performance

The third pyramid row turns building blocks of individual and communal engagement into practical ways to reach results. The focus here is on tracking progress and maximizing performance.

  • Maximize performance. Employees get frustrated when they feel like management blocks their ability to do their best work. Sometimes, this is in the form of processes and tools that create barriers for employees. Often, the problem is that management poorly communicates performance targets (if they communicate at all). To keep employees engaged, provide them with a goal and clear reasoning behind that objective.
  • Mark progress. We all like recognition and success, but sometimes success is a long haul. To keep employees engaged, even between promotions and achieved goals, you must create a system for tracking and communicating progress. A focus on progression helps employees develop their skills and creates a sense of movement and purpose.

The AON Hewitt Model

Track the relationship between engagement drivers and business outcomes in order to create more holistic employee engagement strategies.

The Aon Hewitt employee engagement model brings business outcomes into the equation. It recognizes that employee engagement directly affects metrics across the organization from customer satisfaction to profits and beyond. The research makes this connection very clear, but it’s still too easy to get lost in the weeds of engagement initiatives and forget the big picture.

The Aon Hewitt model connects the dots between business targets and engagement drivers by adding a middleman: engagement outcomes. These are essentially goalposts to help leaders gauge the level of engagement.

There are three engagement outcomes, summed up in the catchy shorthand of “say, stay, and strive.” Each details a characteristic of the engaged employee:

  • An engaged employee says positive things about the organization—be it to their coworkers, network, or customers.
  • The employee also wants to stay with the company. They’re not just there for the paycheck—they feel loyal to the organization, connected to the people, and satisfied with the work.
  • Last but not least, engaged employees strive to do their best work. They are motivated and inspired and tend to contribute above and beyond what’s required of them.

The foundational engagement drivers focus on core company infrastructure. These are core, make-or-break elements you need for engagement:

  • Employees won’t engage with your company if you don’t provide for their basic needs. Job security, competitive compensation, safety, and a good work/life balance are essential to happy employees.
  • Company practices, like communication, staffing, tools, and inclusion efforts, provide a great opportunity to support your employees. Evaluate and update these with a mind toward what is best for your people.
  • Last but not least, the work itself must be tailored to drive engagement. Encourage collaboration and autonomy, and provide employees with mentally stimulating tasks.

Benefits and Challenges of Employee Engagement

A lot of people believe that to be engaged as an employee it to be satisfied and committed. I believe that engagement does include these things but also involves a sense of pride and a willingness to be an advocate on behalf of your employer. It involves speak highly of your organisation, saying what a good place it is to work and how good the services and products are.

Since improving employee engagement can prove to be such a challenge, the first step to improving engagement is to identify what drives engagement in the first place. Employees need to:

  • Feel committed to the organisations values
  • Know that customers think highly of their products
  • Know that their opinions count
  • Know what is expected of them
  • Be fairly rewarded
  • Feel valued by leaders
  • Be part of a respectful work culture
  • Have their personal objectives linked to the business plan.

Benefits:

Better workplace culture and improved employee wellbeing

Engaged employees are happy employees. Companies that understand the drivers of employee engagement heavily invest in employee recognition, career development, valuable and frequent feedback, diversity and inclusion, employee wellbeing, and other initiatives that people care about. Consequently, these companies tend to have employees who naturally shape positive workplace culture and a healthy work atmosphere.

Higher employee productivity and company profitability

The ultimate goal of every organization is to improve its profitability and efficiency. While technology and other resources may help you improve organizational productivity, people are the most important asset to focus on.

Employers that manage to keep their people motivated and engaged are, in general, more successful. Research shows that engaged employees are 17% more productive than their peers, and this engagement also leads to higher organizational profitability.

Lower employee turnover and absenteeism

If you are an HR professional, you know very well that 2020 and 2021 were the years of great resignation. People leave their jobs more than ever before. They are looking for something more meaningful and aligned with their personal values.

Organizations that align their core company values with employees’ beliefs witness one of the biggest benefits of high employee engagement high employee retention.

Better sales and customer service

Besides acquiring new customers, we know how important it is to retain the existing ones. This can be done only by providing a memorable and positive customer experience. Plenty of research shows the correlation between positive employee experience and positive customer experience.

Meaning, the better impression your customer service teams have of your company, the better experience they will provide to the customers.

Improved employee safety

Due to COVID-19, employee safety has become one of the biggest priorities for many organizations across the world. Construction, healthcare, retail, and similar industries spend enormous amounts of money every year to protect their workforce.

The best and most natural way to ensure higher employee safety is to increase employee engagement.

Challanges:

Lack of insight or commitment from the top management

There goes a lot in keeping a business afloat, and it might become difficult to prioritize concepts like employee engagement over other more tangible issues. It requires a lot of groundwork to keep the communication reliant and constant between different hierarchical levels, and the infrastructure required might not be in place.

Align the leadership around a unified business strategy keeping in mind employee engagement and the importance of positive workplace culture.

Lack of clarity

The first barrier that presents itself is the lack of clarity amongst the staff and the management. People associate engagement with all sorts of concepts like job satisfaction, happiness, high employee morale, etc. but it is all this and much more. An engaged workforce is satisfied with their jobs with high productivity and loyalty to the organization. They are attached to their place of work and their job recommending other people as well.

Educate the management and workforce about the concept of employee engagement and what it constitutes through measures like training sessions, seminars, group discussions, etc.

Generalization

More often than not, employers try a one-size-fits-all approach for their employees, which might not work for everyone on a similar level. Different things engage different people, for example, it could be anything from autonomy or variation in their scope of work to flexibility in their work schedule.

Decipher the strengths and requirements of your employees based on their preferences and work accordingly.

Growth and recognition

Lack of appreciation is one of the principal reasons for employees quitting from their jobs. A culture that doesn’t promote recognition and rewards alienates the workforce disregarding one of the most fundamental needs of social recognition. Employees also tend to leave the workplace that stifles their growth, with the same monotonous line of work. A work culture promoting recognition and rewards with a continual learning phase appeals well to everyone, consequently leading to an engaged workforce.

Lack of work-life balance

A lot of organizations do not pay heed to the concept of work-life balance, expecting employees to place their work first, in most cases. A healthy work-life balance is imperative to let employees work with their utmost productivity. Perks like on-site gyms, flexible work hours, offsite work, etc., work tremendously in making employees feel that they are cared for by the management, and as we all know, a content workforce and a satisfying work culture make for a prospering business.

Meaning and Definitions of Attrition, Reasons for attrition, Types of attrition

Attrition refers to the normal phenomenon of the employees leaving the company/organization voluntarily (or involuntary) due to reasons which can be professional or personal pertaining to the company’s environment and culture. Attrition in a company is usually measured with a metric called attrition rate, which simply measures the no of employees moving out of the company (voluntary resigning or laid off by the company). Attrition Rate is also referred as churn rate or turnover.

Though turnover tends to be more short term as compared to attrition. Internal job role movement may or may not be part of overall attrition but can be part of a particular unit’s attrition.

Reasons:

Workforce demographics: If your company is filled with Baby Boomers, their upcoming retirements may result in a loss of staff that you cannot easily replace.

Low unemployment: If your area or industry has low unemployment rates, you may not be able to replace employees who leave, even if you wanted to. You can either leave the positions vacant (attrition) or reduce your hiring standards or expand your search.

Reorganizations/Restructuring: This type of attrition is the goal of these company reorganizations. Positions are intentionally and carefully eliminated with the plan of never refilling them.

Toxic workplace: If your business is not a good place to work, you may find it challenging to keep positions filled. You may wish to lower your attrition rate but find it challenging to do so because people leave quickly, and your company’s reputation as a toxic employer spreads. If you’re experiencing a high level of attrition, this is one of the first areas you should investigate. Listen to employees in exit interviews and pay attention to your online reviews. If your Glassdoor reviews are negative, take them to heart and work to correct them.

Types:

Voluntary attrition: When an employee chooses to leave the company that is voluntary attrition. This can include any reason an employee leaves on their own accord, whether it’s truly voluntary or not. True voluntary terminations, such as resignations for a new job or to move across the country, are the ones you’re probably most familiar with. But an employee who leaves due to health reasons or only quits because the work situation is toxic can also fall under voluntary attrition. The company retains the decision not to replace the employee although there are some times the company would like to replace someone but cannot.

Involuntary attrition: When the company decides to part ways with an employee, this is involuntary attrition. This can be through a position elimination, for example, due to reorganization or layoffs, for cause (such as stealing or fighting), poor performance, or termination when someone abandons their job. (You can argue the last one is a voluntary termination, but the company makes the final call to terminate.) The company then doesn’t backfill the position or eliminates it.

Involuntary attrition through position elimination is the most common form of attrition, as the company decides proactively to eliminate a position. For other types of termination, the company usually decides after the termination to leave the job vacant.

Differences between Promotion and Transfer

Promotion helps employees in several ways. It provides higher status, salary, and satisfaction to existing employees, motivate employees to higher productivity and loyalty to the organisation, to retain the services of qualified and competent employees, to recognise, appreciate and reward the loyalty and efficiency of employees, to support the policy of filling higher vacancies from within the organisation, to raise employees morale and sense of belongings.

There are many types of transfers such as replacement, versatility, shift and remedial transfer. In organisations, promotions are done as horizontal, vertical and dry level.

Principles of good Promotion Policy: Rules of promotions such as qualifications, experience and other terms should be perfect and specific. Wide publicity should be given to promotion policy. Company must not follow partiality, favouritism or injustice. It should be based on scientific performance appraisal of employees and opportunity should be provided to every worker. Promotion policy should be prepared for long period and should not be forced to accept by an employee. Promotion should be given from within the same department. Grievance relating to promotion.

Transfers

 There is no change in rank, responsibility and remuneration.

  • Transfer means shifting of an employee from one place to another.
  • It involves horizontal movement of the employee.
  • Transfer may be for shifting surplus staff from one factory, branch or office of the organisation to fill the job vacancies in another factory, branch or office.

Promotions

  • It leads to increase in status, responsibility and remuneration.
  • It involves a vertical movement of an employee.
  • Promotion means shifting of an employee from a lower post to a higher post.
  • Promotion may be on the basis of merit or seniority of employees to fill a higher post.

Meaning and need of Rightsizing of the workforce

Rightsizing the workforce means redefining job descriptions and reorganizing employee structures to maintain efficiency and properly equip the company to meet its objectives.

This process doesn’t always entail a net loss of workers. While some employees may be let go to avoid redundancies, new employees may be hired to fill a new gap in expertise.

Methods:

Ratio Analysis

Ratio analysis reveals the financial health of an organization by comparing past financial statements to current records and calculating the change. You can then compare your financial progress with that of competitors and predict how your company may perform in the future.

Activity Analysis

An activity analysis is a study of the amount of time each person spends on their main activities. You’d then compare these results to an employee survey in which they explain what their job duties are meant to be. If there are any discrepancies, like a group of employees completing a plethora of extra tasks, then restructuring might be in order.

Driver analysis

Ratio and activity analysis are both extensions of driver analysis. This strategy investigates the motivations or drives behind people activities. Because any change in these parameters will result in a shift in personnel activities.

For example, the quantity of calls, call flow, service levels demanded, talent required, and so on are all drivers for a call centre. These drivers will supply information on the quantity of people who are truly required in the system.

Mathematical Modelling

This approach is the most difficult of the bunch. Mathematical models are created as part of this process to calculate the exact and precise quantity of workers necessary in the organisation.

Challenges when rightsizing

Redundancy can undermine morale among the employees who are not dismissed, as well as leading to job insecurity this causes high attrition.

If reducing the workforce is not well managed, those who are made redundant may complain bitterly online in forums and social network websites. Newspapers and other media soon pick up on this, and the bad news spreads rapidly. Applicants who are offered jobs in the company may be less keen about joining.

Rightsizing can have a negative effect on a company’s brand image, which makes recruitment and the selection of new resources more difficult. In fact, even sales may be harmed.

Steps involved in rightsizing organizations

  1. Conduct structural diagnostics

The first step in the rightsizing process is to perform a thorough examination of the company’s current structure. Understanding the current condition is crucial because you cannot offer appropriate changes, initiatives, and objectives, or rightsizing without first understanding the current situation.

As a result, performing a thorough investigation is critical. It will aid the organization’s understanding of each role’s purpose.

‍2. Identifying key roles of employees

Businesses should also be aware of the goals of each function inside the organisation. The first question any senior management will address is if each role in the organisation is justified. Every position, every title, is linked to a set of precise goals that must be met. 

  1. Defining job operational requirements

Prior to beginning the rightsizing process, management will perform a thorough investigation to determine the role-objective fulfilment ratio.  The company will then try to figure out if the individual has the requisite abilities and experience for his position. They will be subjected to a series of interviews before receiving performance scores. 

Organizations must also downsize in order to avoid errors of effort. It is a waste of the organization’s resources if two distinct employees are executing the same task and end up accomplishing more or less the same thing.

  1. Adapting to the change as needed

Employees may become anxious and unsure about their place in the organisation when the rightsizing process is applied. This uncertainty may lead to the departure of some high-performing staff, producing even more anxiety among the remaining employees. As a result, the company must comprehend the link between rightsizing and employee retention. 

The ideal strategy is to maintain open lines of communication with your team and keep them informed about the right sizing of workforce. This is to guarantee that there are no misunderstandings or employee assumptions about rightsizing.

Need of Rightsizing:

  1. Rightsizing managers know where things are probably headed, which help them in making more effective hiring decisions and provides direction for training/retraining current employees who want to learn new skills to prepare for the future.
  2. Rightsizing helps the managers to know their priorities and provides them a better chance to create an organization structure that is conducive to success.
  3. Rightsizing helps the management in taking the decision in relation to how many people and efforts are required for any set of activities. It provides the staff profile and resource plan as an outcome i.e. the information regarding how many personnel are required in each area in organization is provided by the rightsizing.

Meaning of Open Promotion, Closed Promotion and Dry Promotion Systems

Promotion becomes a delicate problem not in the matter of selection of the right incumbent for the right job, but it poses a constant challenge to executives at all levels and impels them to chalk out a well thought-out programme by which the best and the most capable individuals may find an opportunity to go up to the top.

The procedure for promotion, therefore, starts right at the bottom from the shop-floor and ends with the managing director of a company.

All promotions should be on a trial basis (from 6 months to one year) for if the promoted person is not found capable of handling his job, he may be reverted to his former post and former pay scale.

Promotion may be temporary or permanent, depending up on the needs of an organisation, an employee is promoted.

Open and Closed Promotion:

Open Promotion is a situation where in every individual of an organization is eligible for the position. Closed Promotion is a situation wherein only selected team members are eligible for a promotion.

Dry Promotion Systems

When promotion is made without increase in salary, it is called ‘dry promotion’. For example, a lower level manager is promoted to senior level manager without increase in salary or pay. Such promotion is made either there is resource/fund crunch in the organisation or some employees hanker more for status or authority than money.

Horizontal promotion:

When an employee is shifted in the same category, it is called ‘horizontal promotion’. A junior clerk promoted to senior clerk is such an example. It is important to note that such promotion may take place when an employee shifts within the same department, from one department to other or from one plant to another plant.

Vertical Promotion:

This is the kind of promotion when an employee is promoted from a lower category to lower category involving increase in salary, status, authority and responsibility. Generally, promotion means ‘vertical promotion’.

Purposes:

The following are the purposes or objectives of promotion:

  1. To recognize an employee’s skill and knowledge and utilize it to improve the organisational effectiveness.
  2. To reward and motivate employees to higher productivity.
  3. To develop competitive spirit and inculcate the zeal in the employees to acquire skill, knowledge etc.
  4. To promote employees satisfaction and boost their morale.
  5. To build loyalty among the employees toward organisation.
  6. To promote good human relations.

Measures to overcome high rate of attrition

When an employee resigns from an organization, its attrition rate increase. It can be beneficial to reduce attrition to retain the professionals your business already employs. Learning methods to control attrition can help you better appeal to your employees’ ideals and evaluate how to strengthen the internal functions of your company. In this article, we define attrition and its significance and explain techniques for managing it.

Foster a pleasant work environment

The work environment is the space where employees fulfill their job responsibilities. When it’s pleasant, professionals may feel excited to come to the office, connect with their coworkers and deliver high-quality work. Build an atmosphere that makes employees feel comfortable and inspired to develop innovative ideas. For example, you can implement open floor plans, which can make the managers more accessible and encourage collaboration with coworkers.

Besides the physical layout, assess the compatibility between the personalities of members of your team. Some employees may prefer working independently, allowing them to concentrate more on the assignments. Others may flourish when like-minded individuals surround them. Create an atmosphere that promotes mental and physical health while sustaining productivity. The more appeal the environment, the fewer the employees that may decide to stop working at the company.

Appoint the right leadership

Leadership can have a large impact on the experiences employees have working for an organization. If they feel their managers support them and offer flexibility, then they may want to continue their tenures. Appoint supervisors that can develop meaningful connections with associates and make positive impacts on the agency. When making hiring decisions, you can consider the communication competence and emotional intelligence of the candidates. Here is a list of questions to ask yourself as you assess their qualifications:

Employees can handle their assignments well when they know exactly what their manager is looking for and the steps to achieve their goals. Inquire if the candidate can explain complicated projects to promote understanding among their staff members.

Are they capable of delivering constructive criticism? Constructive criticism shows employees the status of their work performance and the measures to strengthen their skills. Select the candidate that can communicate transparently without interfering with their relationship with the employee.

Give employees creative freedom

Creative freedom is the ability to fulfill your occupational tasks as you deem fit. Each of your employees may have different educational and professional backgrounds, which influence their approaches to their assignments. Instead of requiring them to conform to the company’s standards, consider giving them the option to use their own strategies. As a manager, you can provide direction as needed, but your flexibility can make employees more enthusiastic about their projects. The results may be more innovative, and you can manage your attrition levels by showing associates you trust their judgment.

Prioritize professional growth

Professional growth empowers staff members to become more competent at their jobs as their career advances. Provide opportunities for employees to develop their skill set. They can acknowledge that their employer wants to see them succeed, which can contribute to the impression that your company is a positive place to work.

You can offer free enrollment in an educational course that teaches how to operate a technological device or implement a training program. Another option is to create occasions for employees to practice their abilities. For example, you can recruit a potential manager to spearhead a small project to increase their confidence in leading their peers. Launching diverse topics can prevent burnout on your team. They may want to stay employed with the company when they feel they’re constantly learning new things.

Offer competitive compensation and benefits

It can be important for your compensation plans and benefits packages to reflect the job responsibilities and credentials of the employee. When staff members recognize they’re receiving fair wages, their satisfaction with the employer may increase. Research the average salaries of professions in your industry. If the earning potential is comparable to other companies, then you can contemplate how to offer extra benefits to distinguish your employment from competitors. Examples include:

  • Health, medical and dental insurance
  • Tuition reimbursement
  • Gym membership
  • Generous vacation days
  • Paid holidays
  • Relocation reimbursement
  • Paid travel and hotel accommodations

Tips for managing attrition

Distribute Satisfaction surveys

The results of satisfaction surveys can indicate how professionals feel about working for the agency. Their anonymous responses may encourage them to be honest, which can help you gain insight into how to make the organizational culture more comfortable for them. Pose questions that ask them to rate their satisfaction with management, training opportunities and salaries. Evaluate the responses to identify patterns and apply the feedback to your employee retention strategies. You can resolve the issues before they escalate, allowing the attrition to reduce.

Consider internal promotions

Suppose a manager leaves the organization, requiring you to search for a qualified replacement. Before posting the job description online, consider asking if any of your current employees are interested in fulfilling the position. The associates may appreciate that you recognize their leadership potential, and they can continue working at your company instead of seeking an equivalent role elsewhere. When you promote internally, other employees may feel inclined to continue employment, since they now know advancement is possible. Their established knowledge of the company’s operations can also make it easier for them to adjust to the role.

Examine new hire orientation

The effectiveness of your orientation for new employees can influence employee attrition. After professionals have surpassed their probationary periods, contemplate administering a forum that asks them to discuss how prepared they felt for their jobs. Find out if they felt welcomed by other employees during the first months of their tenure, and inquire about their first impressions of the organizational culture. Channeling the associates’ perspectives can enable you to reorganize their workspace to meet their needs and nurture their interests. A change in your onboarding process may be necessary if recently hired employees contribute the most to your company’s attrition.

Conduct exit interviews

An exit interview is a conversation between the employer and an employee on their last day working at the company. It represents another opportunity to gain firsthand knowledge of the employment experience. Ask the associate to describe the circumstances that led to their decision to resign. Perhaps they’ve received a job offer with a higher salary for the same position, which can inform you of the impact of your organization’s compensation plans. They also may feel their managers’ close supervision stifled their creativity, illuminating a management issue. Evaluate how you can rebuild the office space to avoid future resignations.

Purposes and Basis of Promotion

Promotion means the advancement of an employee to a higher job involving more work, greater responsibility and higher status. It may or may not be associated with the increment in salary. Sometimes, salary of the employee also increases with the promotion. Sometimes it is not so. When an employee is promoted but his salary does not increase it is known as dry promotion. Promotion means the placement of an employee on a higher post involving greater amount of responsibility, better status, more pay and more perks.

Some people think that promotion means the increment in pay. The reality is not so. If the salary of an employee increases or the pay scale changes to a higher one, it is only known as up grading or salary increment. However, it can now be regarded as promotion. Generally, promotion is associated with the increase in salary, status, facilities, responsibilities and job.

Performance appraisal forms a basis for HR decisions on training, salary increase, promotion, transfer and separation. Of these, promotion, transfer and separation functions are effective methods to adjust the size of the workforce of an organisation. Promotion, transfer and separation provide workforce flexibility and mobility required to meet the needs of the organisation.

Promotion is one of the best forms of incentives and it provides higher responsibilities, better salary, high morale and job satisfaction to the employees. Practically, all the employees aspire for career advancement and promotion is an advancement of the employee in the organisational hierarchy.

Edwin B. Flippo, “A promotion involves a change from one job to another that is better in terms of status and responsibilities.”

Scott & Spriegal, “A promotion is the transfer of an employee to a job that pays more money or that enjoys some better status.”

In the words of Paul Pigors and Charles Myers, “Promotion is an advancement of an employee to a better job, better in terms of greater responsibilities, more prestige or status, greater skill and specially increased rate of pay or salary”.

(a) To recognize and reward the efficiency of an employee.

(b) To attract and retain the services of qualified and competent people.

(c) To increase the effectiveness of the employee and of the organisation.

(d) To motivate employees to higher productivity.

(e) To fill up higher vacancies from within the organisation.

(f) To impress upon those concerned that opportunities are available to them also in the organisation if they perform well.

(g) To build, loyalty, morale and sense of belongings in the employees.

Watkins, Dodd and others mention the purposes of promotion as under:

(a) To reduce discontent and unrest.

(b) To furnish an effective incentive for initiative, enterprise and ambition.

(c) To conserve proved skill, training and ability.

(d) To attract suitable and competent workers.

(e) To suggest logical training for advancement.

As Youder and others observe, “Promotion provides incentive to initiative, enterprise and ambition, minimizes discontent and unrest, attracts capable individuals, necessitates logical training of advancement and forms an effective reward for loyalty and cooperation, long service, etc.”.

Basis:

Seniority:

Seniority of an employee refers to the relative length of service in an organization. When seniority is considered as the basis of promotion, the rule is to promote the employee having the longest length of service, irrespective of the employee is competent to occupy a higher post or not.

The reason behind seniority as the basis of promotions is that there is a positive correlation between the length of service in the same job and the amount of knowledge and the level of skill acquired by an employee in an organization.

This practice of promoting employees is followed in unionized industrial establishments, government-owned undertakings and sometimes in private corporate and educational institutions.

This basis of promotion has the following advantages and disadvantages:

Advantages:

  1. Seniority being quantifiable provides an objective means of identifying the personnel eligible for promotion.
  2. It is easy to measure the length of service and administer the rule.
  3. There is less scope for subjectivity or arbitrariness in fixing seniority.
  4. It gives a sense of certainty of getting promotion to every employee and their turn of promotion.
  5. It is also considered that seniority and experience go hand in hand. Hence it is right to have promotions on this basis.
  6. Subordinates are interested to work under a senior and experienced boss.
  7. As promotion is predictable under this system, it generally reduces employee turnover.

Disadvantages:

  1. Seniority always does not indicate competence.
  2. The idea that employees learn more with length of service is not valid.
  3. Employees learn up to a particular stage. After that grasping power diminishes.
  4. This basis of promotion de-motivates the young and competent employees.
  5. It kills the zeal and interest to learn and develop.
  6. It does not guarantee quality staffing of promotional vacancies as merit or ability is altogether ignored.
  7. Judging seniority practically is a difficult task.
  8. It discourages creativity and innovation in the organization.

Competence/Merit:

In this case an employee is promoted on the basis of excellent and superior performance in the current job. This is known through performance appraisal done by the organization. Merit indicates an employee’s knowledge, skills, abilities and efficiency measured from the employee’s educational qualifications, experience, job performance and training records.

To get promotion on the basis of merit requires hard work and sincerity on the part of the employee. In non- unionized organizations promotions are made on the basis of merit. In unionized organizations merit is the basis of promotion for non-productive employees. Seniority should be considered as the basis of promotion, when there are more than one employees of equal merit.

According to Peter and Hull (1969) the members of an organization where promotion is based on achievement, success, and merit will eventually be promoted beyond their level of ability. Employees tend to be given increasing responsibility and authority until they cannot continue to work competently. This is commonly known as Peter Principle.

The principle holds that in a hierarchy, members are promoted so long as they work competently. Eventually they are promoted to a position at which they are no longer competent (their level of incompetence), and there they remain, being unable to earn further promotions and thus reach their careers’ ceiling in the organization.

Advantages:

  1. It motivates the employees to work hard, improve their knowledge, acquire new skills and become a part of increasing organizational efficiency and effectiveness.
  2. Efficiency is encouraged, recognized and rewarded.
  3. Competent employees are retained.
  4. It motivates the competent employees to exert all their resources and contribute them to the organizational efficiency and effectiveness.

Disadvantages:

  1. This creates unhappiness among the senior employees.
  2. Many senior and experienced employees leave the organization.
  3. This basis of promotion leads to favouritism and jealousy.
  4. It is not easy to measure merit. Personal prejudices, biases and union pressures usually come in the way of promoting the best performer.
  5. Loyalty and length of service are not rewarded.

Seniority-Cum-Merit/Merit-Cum-Seniority:

Managements mostly prefer merit as the basis of promotion as they are interested in enriching organizational effectiveness by enriching its human resources. But trade unions favour seniority as the sole basis for promotion in order to satisfy the interests of majority of their members. Both seniority and merit as the bases of promotions have their advantages and disadvantages.

Hence it is necessary for the organizations to give due weightage to both seniority and merit while promoting their employees. A combination of both seniority and merit can be considered as the basis of promotions, there by satisfying the management for organizational effectiveness and the employees and trade unions for respecting the length of service.

There are various ways for striking a balance between seniority and merit which are as follows:

  1. Minimum Length of Service and Merit:

Under this method all those employees who complete the minimum years of service, say five years, are made eligible for promotion and then merit is taken into consideration for selecting the employees for promotion from the eligible employees. Most of the commercial banks in India follow this method of promoting employees from clerk positions to officers.

  1. Measurement of Seniority and Merit through a Common Factor:
  2. Due weightage is given to seniority and merit (for example 30% for seniority and 70% for merit).
  3. Length of service is measured by points with the help of assigned weightage (for example one point for every six months of completed service) with a maximum of 40 points.
  4. Merit is also measured by points with the help of assigned weightage.
  5. Points assigned to a candidate under both the heads of seniority and merits are added up.
  6. Merit list is prepared and employees for promotion are selected on the basis of their ranks(for example if there are four employees for one post i.e. A, B, C and D and if their merit points are 50,60,85, and 65 respectively then the third employee i.e. C is selected for promotion.
  7. Minimum Merit and Seniority:

A minimum score of merit which is necessary for the acceptable performance on the future job is determined and all those employees who secure minimum score are declared eligible. Employees are selected for promotion based on their seniority only from the eligible pool.

The National Commission on Labour has suggested that as a general rule, particularly among the operative and clerical categories i.e. lower levels, seniority should be the basis of promotion. In respect of middle management, technical, supervisory and administrative personnel, seniority- cum-merit should be the criterion for promotion. For the top level management, merit should alone be the guiding factor for promotion.

Employee Transfer, Reasons, Types, Drawbacks

Employee Transfer is the process of moving an employee from one position, department, or location to another within the same organization, without changing the overall job level or salary. It can be voluntary or involuntary, depending on the company’s needs or the employee’s request. Transfers can occur for various reasons, such as filling vacancies, addressing skill shortages, improving employee morale, or providing developmental opportunities. While transfers typically do not involve a change in compensation, they can offer employees new challenges and growth prospects, fostering a more dynamic and flexible workforce.

Reasons for Employee Transfer:

  • Filling Vacant Positions

One of the primary reasons for employee transfers is to fill vacancies in different departments or locations. If an employee leaves or is promoted, organizations often transfer an existing employee who possesses the required skills and experience to take over the vacant role. This helps ensure continuity within the organization and minimizes the time it takes to fill the position.

  • Employee Development and Career Growth

Transfers can be a part of an employee’s career development plan. By moving employees to different roles or departments, organizations provide them with new challenges and learning opportunities. This exposure to diverse functions can help employees expand their skills, experience different aspects of the business, and prepare for higher-level positions in the future.

  • Addressing Skill Gaps

When certain departments or teams experience a shortage of specific skills, employees can be transferred from areas where they are underutilized to those in need. This helps balance workloads and ensures that employees with specialized skills are utilized where they can contribute most effectively, thus improving overall productivity.

  • Improving Work-Life Balance

Sometimes, employees may request a transfer for personal reasons, such as relocation needs or to reduce commute time. Transfers can help employees maintain a healthier work-life balance by moving them to a more convenient work location or a role that better suits their personal circumstances, which in turn can lead to increased job satisfaction and retention.

  • Organizational Restructuring

During times of restructuring or changes in business strategy, employee transfers may be necessary to realign resources and meet the new objectives. Transfers can help the organization adapt to new roles, responsibilities, or locations that better align with the company’s long-term goals. Employees may be moved to different departments or roles to ensure optimal resource allocation.

  • Performance Improvement

If an employee is struggling to perform in their current role, a transfer may be seen as a way to help them succeed. For example, an employee who faces challenges in a highly technical role may be transferred to a position that better matches their abilities. This gives the employee an opportunity to start fresh, build confidence, and improve their performance in a more suitable environment.

  • Job Enrichment and Employee Motivation

Transferring employees to different roles can add variety to their work, reduce monotony, and provide a new set of challenges. Job enrichment through transfers helps to keep employees engaged and motivated. A change of environment or responsibility can reignite an employee’s passion for their work, leading to improved morale and productivity.

  • Retaining Talent

Employee transfers can also help organizations retain top talent. When an employee feels stagnant or bored in their current position, they may look for new opportunities elsewhere. A transfer allows the organization to keep the employee engaged and satisfied, which prevents turnover. By offering employees a fresh perspective or new responsibilities, organizations can show that they are invested in their growth and success.

Types of Employee Transfer:

  • Lateral Transfer

Lateral transfer involves moving an employee to a different position at the same level, without a change in salary, job title, or status. It typically occurs when an employee is moved to a different department or location to gain new experience, take on different responsibilities, or address a specific organizational need. The primary objective is to provide variety or solve problems within the organization.

  • Promotional Transfer

Promotional transfer occurs when an employee is moved to a new position with a higher level of responsibility, salary, or job title. This type of transfer is typically linked to an employee’s performance and development. It’s a form of recognition for the employee’s growth, where they take on a more challenging role within the organization, often leading to career advancement.

  • Demotion Transfer

Demotion transfer happens when an employee is moved to a position of lower responsibility, salary, or rank. This is usually the result of performance issues, behavioral concerns, or operational restructuring. Demotion transfers allow employees to retain employment with the organization while adjusting to a role that better suits their capabilities.

  • Temporary Transfer

Temporary transfer involves moving an employee to a different position or location for a specific period, often to fill a temporary vacancy or manage a short-term business need. The employee’s role may revert back to its original position once the transfer period ends. These transfers are commonly seen in cases like maternity leave replacements or project-specific roles.

  • Voluntary Transfer

In a voluntary transfer, the employee requests or expresses interest in being moved to a different role, department, or location. This is often done to align with the employee’s career goals, personal circumstances, or professional development. Such transfers are usually based on mutual agreement between the employee and the organization.

  • Involuntary Transfer

An involuntary transfer occurs when the organization initiates the transfer without the employee’s consent. This could happen for various reasons, such as a change in business needs, restructuring, or the employee’s performance issues. While involuntary transfers are less popular, they are sometimes necessary for organizational efficiency.

  • Geographical Transfer

Geographical transfer involves moving an employee from one location or office to another, typically across different cities, regions, or even countries. Such transfers may be initiated for business expansion, the need for expertise in a new location, or personal employee requests, such as relocation due to family reasons.

  • Cross-functional Transfer

In a cross-functional transfer, an employee is moved from one department or function to another. The aim is to diversify the employee’s skills, enhance their experience, and make them more versatile within the organization. This transfer may be part of a broader talent development strategy, as it helps employees gain exposure to different aspects of the business.

  • Rotational Transfer

Rotational transfer is a type of transfer in which employees are periodically rotated across different roles, departments, or locations within the organization. The goal is to give employees a broader range of experiences and ensure they develop a comprehensive understanding of the business. Rotational transfers are often used in leadership development programs or employee training initiatives.

Drawbacks of Employee Transfers:

  • Employee Resistance and Discomfort

One of the most common drawbacks of employee transfers is the resistance employees may show to change. Employees who are comfortable in their current role or location may feel unsettled or demotivated by a transfer. They might resist the move due to personal reasons, reluctance to change, or fear of the unknown, leading to decreased morale and job dissatisfaction.

  • Disruption of Personal Life

Transfers, particularly geographical ones, can cause significant disruption to an employee’s personal life. Relocating to a new city or office may require an employee to uproot their family, change schools for children, or find new housing. These disruptions can cause stress and dissatisfaction, especially if the transfer is involuntary, which may lead to lower employee engagement and a potential decline in productivity.

  • Increased Costs for the Employee and Organization

Transferring employees, especially across regions or countries, can incur significant costs. The organization may need to cover relocation expenses such as moving, temporary accommodation, or transportation. These costs can add up, especially in cases of multiple transfers, and the organization may also face administrative costs in managing the logistics. Additionally, employees might face personal costs, such as adjusting to a new cost of living.

  • Loss of Expertise in the Original Role

When an employee is transferred from one department or role to another, the original role may be left vacant, leading to a temporary loss of expertise. This disruption can affect the productivity and performance of the team or department left behind, especially if the transfer was not planned properly, resulting in a gap in knowledge or skills in the previous role.

  • Adjustment Period and Reduced Productivity

Even though a transfer may offer new challenges, it typically comes with an adjustment period. During this time, the employee may not be as productive as they were in their previous role, as they need time to learn new tasks, adjust to a different team dynamic, or understand the nuances of a new location or department. This temporary dip in productivity can affect team performance and organizational efficiency.

  • Potential for Career Stagnation

While transfers can sometimes be beneficial for career growth, they can also lead to stagnation if the transfer is perceived as a move to a less important role or department. In some cases, employees may feel that a transfer is a step backward, especially if it’s due to underperformance or disciplinary issues. If the transfer leads to less challenging work or fewer opportunities for advancement, it may harm the employee’s career development and motivation.

  • Negative Impact on Team Dynamics

When an employee is transferred to a new department or team, it can disrupt existing team dynamics. The employee may not fit well into the new team, causing friction or a breakdown in communication. This can also create feelings of resentment among team members who feel the new person is receiving preferential treatment or that their established working relationships have been disturbed. Managing the new dynamics can require extra effort from management, and if not handled carefully, it can lead to tension within the team.

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