Right Management and faculty at the Villanova School of Business found that employee turnover levels as high as 100% in some industries is the largest workforce challenge hindering performance for organizations operating in India. According to a press release, based on feedback from 4,800 employees, a major cause for such extreme turnover is that managers lack the fundamental skills necessary to effectively lead and engage their teams.
Study results revealed a significant deficit in managements’ skills needed to lead their teams, mentor talent, and manage effectively, with many managers promoted before they are ready to manage. In addition, results revealed that a lack of engagement was the strongest single factor leading to intent to leave an organization, and job satisfaction, commitment to the job and organization, pride and advocacy lead to higher levels of engagement.
Opportunities for growth and development provide the incentive employees need to stay, while compensation is less important. According to the press release, an employee’s sense of progress, competence, influence, and opportunity to do meaningful work are also more important than compensation.
“High attrition levels can impair an organization’s ability to build relationships with clients and to run its operations efficiently. What’s more, multinationals may experience the ultimate irony: due to the high cost of hiring and retraining, they may not be able to reap the cost savings that led them to India in the first place,” said Michael Haid, Senior Vice President and Global Leader for the Attract & Assess Center of Excellence for Right Management, in the press release.
For a copy of the complete study findings and best practice recommendations from “Stemming the Tide of Attrition in India: Keys to Increasing Retention,” contact Helene Cavalli at firstname.lastname@example.org .