2 Avoid culture shock with values-led assessments
As well as assessing new hires for skills, you also need to identify if they will thrive in your company culture. Asking questions around motivation, purpose, values and working style can also help you build trust and connection during the recruitment process.
“People will stay with a brand they feel aligned with, and with an employer they feel cares about them,” says Mohanty. “That can be a real differentiator. Especially if you are attracting talent from other cities—the organization becomes their family if they have left their hometown.”
3 Deliver on your EVP promise
Ultimately, the employee value proposition should be the compelling reason people join your organization—and stay. So how genuine, relevant and up to date is your employer brand?
Part of your promise to employees will include rewards and at the graduate level, salary is a factor driving attrition. “We see entry level people jump ship for what seems like a small amount, but proportionately for them it is big,” says Makkar.
However, career progression is another lever with a lower payroll budget impact.
“One of our clients, a professional service consultancy, was struggling with the cost of attrition—a major competitor was luring their top talent away,” explains Mohanty.
They were particularly worried about losing the ‘top 300’—the 300 potential future leaders, who were receiving differentiated rewards and career paths.
However, they hadn’t told that group they were in that group. That difference wasn’t visible.
“So, we created the Talent Magnet Program, which empowers the managers of the top 300 to give them a sense of purpose and meaning, provide career development and mentoring,” Mohanty says.
As Talent Magnets, those managers are now the glue that binds the top talent to the organization.
Learning to live with attrition
Mohanty believes we may need to learn to live with a world of high attrition, just as we are coming to terms with living in a higher inflationary environment. “It’s not uncommon to see attrition rates of 35% in knowledge processing outsourcing companies, or even higher in hospitality and service industries,” he says.
India may believe it has a population advantage with an abundant prospective talent pool for employers, but Mohanty says the big challenge is in job-readiness of that talent.
“There is still a much smaller pool of people capable of taking on global roles. People who can deal with ambiguity. Those who are not just order takers, but self-starters.”
Those are the people you need to take care of and retain. It all begins with setting the right expectations during the interview and onboarding process, and making sure you deliver on those expectations from day one.
Learn more about how to reduce the risks of talent attrition in this insight paper.