Dynamic Happenings

Stop the ‘Brain Drain’! How Successful Companies do it?

We all know that high attrition rates cause organizations to bleed talent. Having
to bear the burden of high employee turnover rate, you can get trapped in a
constant need to hire and train new talent. Economists estimate this can easily
cost your organization 1/5th of an employee’s annual salary. To make matters worse,
it demoralizes current employees and can affect their company outlook, thus adding
more fuel in the already blazing attrition situation.

But that’s not the only side effect of a higher attrition rate. While it affects the insiders including your employees, investors, and clients, it also influences outsiders- the potential job seekers applying for a job. It should not come as a surprise that, as per HR experts, one of the most sought after question that a job seeker wants to ask is “Can you tell me about your company’s attrition rate?”

The ‘brain’ drains the moment it realizes it doesn’t belong. So the foremost need for any company is to create an environment that produces a sense of belonging. Human resources should remember the psyche of Gen Y job seekers- they are looking for jobs that fulfil not only their professional needs but also their emotional needs of being listened to, being appreciated, and giving back to society. 

When it comes to hunting for the best talent, it’s not a game anymore. It’s a war and the winner takes it all. The key to winning every time is creating a rewarding, positive working environment that promotes communication.

High attrition rates can threaten the very integrity of your company. Now that we know the real costs of the Brain Drain, the question is what companies can do to stop the bleeding. The challenge is to retain the top talent and keep new talent streaming in.

Here is a smart 5-point strategy to put a halt to the Brain Drain from your organization: 

1. Have their Say in Company’s Decisions – Today’s generation seek employers where lively discussions are happening and their ideas are valued. The employers need to involve the workforce in their key decisions, be it related to innovation, investment or production.

2.  Create a Learning Environment for Employees - Being born and raised in a competitive environment, the new generation of job seekers continuously seek to improve their skills. They want their workplaces to nurture their unique talents through comprehensive training programs. 

3.  Give Back to Society - Generation Y is more socially conscious and seek to bring a positive change through their work. Why else have campaigns like BatKid and ALS Ice Bucket Challenge gone viral? Generation Y will always opt for a socially conscious organization over one that isn’t. 

4.  Make Sure the Work Culture is Sync with the Brand – Brand consciousness is higher among Gen Y job seekers. They identify with their company’s brand instantly. Every company is known for its brand image. If the job seeker discovers any sign of incoherence between the company’s brand and its work culture, it simply turns them off.

5.  Show’em the Money – Money might not be the most important factor, but it really counts as a motivating factor. In today’s market, it’s not just the competitive pay package that matters. Candidates are looking for creative compensation plans such as profit sharing and long term incentive plans that might mean benefits as well.  With all that is happening in the world of health care this has also become an every higher level of importance to some than actual pay.

If there’s one thing that defines today’s workforce most perfectly, it is diversity, be it in terms of gender or ethnicity. If you think a one-size-fits-all retention strategy will help you retain your workforce, think again. Retention packages have to be customized according to the individual employee’s mind set, knowing what drives them and what their pain points are. For some employees, it’s a larger pay check that will stop them from looking for employment elsewhere, a higher commission or bonus opportunity based on personal performance, personal recognition, while for others it might be making an adjustment in their working hours.

The Anatomy of an Ideal Working Environment

In today’s job market, the priority for employers is to cultivate an environment that allows the workforce to enhance their skill sets, allow for professional growth, and foster creativity among employees. Try to find professional talents from diverse backgrounds. This will enable the employees to see and appreciate unique perspectives to a given situation. Design development tools and programs to help each individual realize his full potential. Give them the space to let them be what they are and make positive changes in their own unique ways.

Creating a work culture that reflects your company’s vision and philosophy will ultimately create an environment that creates growth and innovation that will lead to the success of your employees and your organization.