A case study on reducing talent attrition & creating alignment in

people policies

Context&Background.TheclientorganizationisareasonablylargemanufacturingorganizationwithaturnoverofapproximatelyRs2,500crores.With4SBUs,9manufacturingUnitsacrossthecountryand3jointventures,themanagementstructurewasacomplexandclassicalSBUstructure.TheSBUstructurewasadoptedtofacilitategrowthandtomovetherevenueCAGRfromthetraditional12-13%toamoreaggressive22-24%.

ThereweremanytransitionsquietlytakingplacewithintheGroupalongwiththeintroductionoftheSBUstructure.Newleadership.Shiftfrombeingadeliverybasedproductionshoptoamoresustainableandprofessional/processbasedwaysofrunningthebusiness.RolebasedstructuresandKRAbasedaccountability.

HRwasaclassicalhubandspokemodelacceptforthefactthatthespokeswerebrokenandthestronghubhadnohandsandlegsandtendedtodriftduringimplementation.ThegeneralmanagerialroleoftheSBUHeadsandplantheadswasstillsettlinginandinsomeareasthereweresharpcapabilitygaps

ProblemStatement.Overtheyears,peoplemanagementpracticeshadnotkeptpaceandamongotherthingsthisshowedupinrisingattritionofstaff.Theproblemexistedearlierbutitwasnotnoticed,notmeasuredinaconsistentwayandnevercameontheradaroftheseniorleadership.Byandlargeitwastakenasthecostofdoingbusinessinthisindustry.In2017TalentonicHRSolutionwasinvitedtostudythe

phenomenonofattrition,createanactionplanandassistintheimplementation.TalentonicestablishedaconsistentmethodologyacrosstheGroupandastandard,internationallyacceptedwayofcalculatingattrition.

Fortheyear2017-18theattritioncametoawhopping29%.25%voluntaryand4%involuntary.Onelevelofproblemwashowhightheattritionwas,anditsdamagetothebusiness.Thebiggerlevelofproblemwasnobodyknewhowhighitwas,whatwascausingit,whatwastheindustrypracticeandwhattodotobringitdown.Thestandardwayofdealingwithitwasto

pretendthattherewasnoproblemandtocriticizeHRfornotrecruitingreplacementsfastenough!Badqualityofrecruitment.Badattitude.Competitionhiring.Compensationproblems.Alltheusualexcusestoavoidowningup.Firststepwastodoadeepdiveintotheissuetoidentifythebigthemes,whichneededtobetackled.

TheBigThemes&Causes1. Completelackofaccountability.ItwasonnoonesKRA.Itwasnotontheagendaoftheexecutivecouncil.Noone.Literallynooneintheorganizationwastaskedtodealwiththisissue.

2. Highinfantmortality.36%oftheemployeesjoiningthefirmwerelikelytoleavewithin6months.

3. ThehighestattritionlevelswereinHR–58%.Thefiremenwhoweresupposedtofightthefirewerethemselvesrunningaway.

4. 84%ofthetotalattritioncamefromthebottomtwolevels.Therewasdefinitelyaweaknessinthepeoplemanagementcapabilityofmidmanagement.

5. Withinthebusinessunits&factorylocationstherewasreallynoanalysisanddiscussionofpeopleissues.AttritionwasdiscussedonlyatCorporate.Engagementwasignored.

TheSolutions1. Establishsharpaccountabilities.MonthlyMISbythe6thofeverymonth.Targetof12%attritionestablishedfortwoyears.AttritionKRAwith20%weightage.TrackingofattritionatthelevelofindividualleadersuptoN-2level.

2. PeopleConnectsubstantiallyimproved.Pre-joiningplanning.Buddyscheme.Skipmeetings.One-onOnes.

3. Firsttimeleadershipdevelopment.Signatureprogramlaunchedwithmultipleshortmodules.Projectworkandperiodicdiscussionstoreinforcethemodule.Leadershipreview.

4. PeoplecommitteeconstitutedineverybusinessunittobechairedbySBUHeadtodiscussallexitsbynameandtheprogressofallinitiatives.

5. Anintegratedactionplancreatedwithattritionandemployeeengagementtocreateasingleplatformfordealingwithpeopleissues.

6. Targetedimprovementinemployeerelatedinfrastructureattheplants.Latesitting.Travelapprovals.Transport.Canteen.Security.

BusinessBenefit.1. Attritiondroppedfrom29%in17-18to18%inQ1of18-19.Marchingtowards12%target.

2. Attritionofthebottom2levelsdroppedby8%3. Expectednumberofexecutivesleavinginfirst6monthsdroppedto12intheyear18-19downfrom46in17-18!

4. AcadreoftrainedfrontlineleadersemergedwhohavebeentrainedonJohnAdair’sactionLeadershipmodel.

Learning1. TheactionisatthelocationsandnotattheCorporateOffice.ToomuchtimespentatCorporateOfficediscussingstrategyandreviewingprogress.Youhavetobeatthelocationswheretheemployeeinteractionishappeningandtheopportunitycreatedforretention.

2. Deepdiagnosticishalfthebattlewon.Attritioncannotbetackledatagrosslevel.Bothforengagementaswellasforattrition,actionisatmultiplelevels.Insomecasespolicyneedstobefixed,andatsomeotherlevelsthereisanissueofimplementation,skill,localaction,leadershipstylethatneedstobefixed.

3. Decisiontoleaveisinfluencedbychallengeswithintheorganization.Theopportunityoutsideisaverysmallpartofthestory,andinanycaseisnotwithinyourcontroltoinfluenceorchange.

4. Involvementofemployeesanddialogueismoreimportantthanpolicy.Spendtimewithsmallgroups.Listentowhattheysayandseektheirsupport.

5. Cannotdivorceattritioncontrolfromleadershipdevelopmentatthemidmanagementlevel.Thereareinvariablyskillgapsatthatlevelindealingwithemployeeissues.

TalentonicHRSolutionsSuiteNo1007,10thFloor,ParkCentra.Sector30

Gurgaon-122001contactus@talentonic.com