One of the most significant issues for Indian organizations is talent retention. Gallup recently released a report stating that only 14% of Indians feel they are thriving in their jobs (Gallup, 2024). When employees are not happy or feel that they are not performing well, they are likely to switch or leave, making this a pressing issue.
Knowing why employees leave goes beyond fixing attrition—it's about creating a sustainable, living culture. Actionable insights and strategies can help firms battle the alarming rise in turnover and encourage long-term employee engagement.
The blog outlines the key factors that drive high turnover rates in India.
The Drivers of Employee Turnover
There are many contributing factors to employee turnover, and these reasons often intersect. The primary factors are as follows:
Lack of Proper Career Growth Opportunities:
Employees often make a switch to other positions that they consider better for various reasons. Poor career trajectory within the current organization can be a major reason for this action. If there is career stagnation, employees lose morale and are more likely to turn to external opportunities. To tackle this, organizations must have concrete growth paths for retaining top talent.
Workplace Culture and Employee Well-being:
India has some of the highest levels of workplace stress; hence, a supportive environment would go a long way. Organizations that cultivate diversity and support mental health for employees enjoy better retention rates. For instance, companies that offer flexible work policies and mental health support programs have seen a marked improvement in their workers' satisfaction rates.
Remuneration and Benefits:
Fair compensation is more than just about pay—it's about recognizing employees' value to the organization. Compensation is one of the most prominent causes of attrition. However, in India, overemphasis on traditional monetary structures is contributing to employee dissatisfaction. Competitive pay is also an issue, as many workers feel that entry-level positions are often underpaid.
How Employers Can Tackle These Issues
Employee turnover and personalization for the Indian workforce are difficult to overcome. However, targeting specific workforce needs can go a long way in building a more productive and committed team. Here are some ways in which employers can overcome these issues effectively:
Invest in L&D:
Upskilling and reskilling are at their peaks. According to Gartner, organizations that focus on L&D functions seriously can improve employee performance by 26% (Gartner, 2024). Organizations in India must invest in programs that help employees acquire future-ready skills. This keeps them more engaged and prevents attrition as a result of layoffs due to skill gaps or resignations.
Foster a Positive Work Culture:
A great work culture is a binding force that keeps employees together, even in times of crisis. To create such an environment, organizations must communicate succinctly, provide ongoing feedback, and recognize workers. For instance, AI-based survey technologies can facilitate the collection of live insights so organizations can take preventive measures.
Compete for Competitive Compensation and Benefits
In addition to a market-aligned salary, relevant benefits structures are also essential to retaining the best talent in the organization.
Examples of pertinent benefit structures are:
Remote Work Allowances:
Employers should consider paying remote work allowances to remote employees. Internet and workspace allowances are a few initiatives that make employees feel valued and compel them to exhibit loyalty.
Health and Wellness Programs:
Employee wellness programs can immensely help in retaining employees. Companies can offer gym memberships, therapy sessions, or wellness days under this initiative. With an increasingly younger workforce that is health-conscious, such benefits can be a game-changer.
ESOPs (Employee Stock Ownership Plans):
SOPs emerge as the major winners among the employees in startups and mid-level companies. It can be added to the CTC to make it more competitive and attractive.
Conclusion
Effective employee retention requires an understanding of the root causes that compel employees to leave. A blend of multiple factors contributes to this challenging and concerning trend.
As solutions, companies in India can integrate technology to improve the experience for their workforce and focus more on developing clear trajectories, enhancing work culture, and providing holistic benefits. These corrective actions will contribute to the development of a thriving, loyal workforce. It is a forward-looking, employee-centric approach that aligns with the aspirations of modern, dynamic workforces.
With 42% of Indian employees feeling sadness, the need for robust retention strategies has never been so urgent (Gallup, 2024). Companies that prioritize employee satisfaction today will secure a competitive edge for tomorrow.
References
Gallup. (2024) Gallup's 2024 State of the Global Workplace report: The well - being of employees worldwide. Gallup. https://www.gallup.com/file/workplace/645608/state - of - the - global - workplace - 2024 - download.pdf
Gartner. (2024, February 5). The future of work: Insights on trends shaping the workforce of tomorrow. Gartner. https://www.gartner.com/en/human - resources/role/learning - development
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