High Attrition: At Entry Level Jobs in Sales Organizations

Attrition is prime concern for organizations all over the world but percentage of attrition in sales organization and that also at entry level job is alarming. It seems HR is only doing entry and exit formalities in these organizations.  In era of GPL talented workforce is scarce resource. Hiring right person is very difficult and retaining them is not an easy task. There is no single reason for high attrition and there is no universal solution (At least not with me) every industry and every organization has their own causes which lead to high attrition.

In sales organization at entry level major churning is during honey moon period (First 3 months).  Now big question is why employee leaves organization just within 3 months of his join?  What going wrong? According me there are two prime reasons for employee leaving the organisation during honeymoon period they are as following:

I. Wrong Hiring

"When hiring key employees, there are only two qualities to look for: judgement and taste. Almost everything else can be bought by the yard." — John W. Gardner

In most of the cases there is wrong selection of candidate by HR. There is mismatch between what they were looking for and what they had received? There are various reasons for wrong hiring and few are mentioned below:

1.      Urgency – Hiring team are so eager and in rush to close the vacancy that they overlook crucial points and importance is given to quantity and quality of people is sidelined.

2.      Not properly trained – In most of the organization no special training is given to hiring managers for selecting rights candidates. Hiring managers is on there on and they take decision on their assumptions and perceptions which is not always right.

3.      Traditional approach - Still organization are using outdated process like in interview asking personal and professional questions. Which are thoroughly mugged by candidates due to which most of the time hiring manager are not able to know true person which is sitting just front of him.

4.      Lack of effort – Hiring manager high dependency on consultants which most of the time recommends active candidates who are looking for job and due to lack of efforts passive candidates are missed. As you know fruits which are comparatively low in quality are found on lower branches of tree and it’s not big thing to grab them. Kids can also through stone and have it but quality fruits are at top branches of tree and more efforts required to have them.

5.      Over Selling by Hiring manager – To have a deal hiring manager sometime over sell to candidates and make castle in the air. Post joining when candidate meet reality promises are nowhere and employee too gone with wind.

6.      Applicants at junior level are more concerned with packages and not role so they grab the fish without knowing whether they will able to digest it or not.

II. Lack of Proper Hand-holding

In initial period employee requires care and support from manger and organization but organizations are having just old paper induction which is of no use other then documentation.  New joinee faces issues in settling due to which he frustrate and leave the organization.  Some of the reasons for lack of hand holding are:

1.      Untrained Manager – "Employee don't expect manager to be perfect. They do expect manager to fix things when they go wrong." Written by unknown.  In most of the organization managers are not properly trained to motivate and lead the reportees. They don’t know how to build repo and groom new employees and HR is also not much helpful.

2.      Lack of training – Impasses is given on targets and new joinees are bombarded with so called SMART targets and lack of importance is given to HOW to achieve them. Training is lacking in spirit and it is considered just formalities.

3.      Lack of Respect – When new joinees do not achieve their targets they are not treated properly by their managers. Lot of pressure is put on them which lead to lack of interest and finally exit.

4.      Lack of Time – New joinee are not given enough time to settle and learn the rule of game. They are expected to bring business from dayone.  If management wants sustainable performance from employee then they have to give them breathing space and time. Long term goals cannot be achieved by short term approach. Most of the employees take time in performing and management must know this and support and groom the employees.

"If you suspect a man, don't employ him, and if you employ him, don't suspect him." - chinese proverbs

Hiring manager should be very cautious while hiring new employees. He should not only know about the candidate but understand the candidate and if have any doubt then he should not hire. Selecting right person is mixture of art and science which managers have to learn. Post selecting the candidate manager must have faith and trust in employee. Provide proper support, time and most important lead them, say goodbye to attrition and most important:

"Your most unhappy employees are your greatest source of learning." - Unknown

Identify your interest, Enrich your career

You are best to judge yourself. There is no need to be part of rat race.......read full article @ http://www.chrmglobal.com/Articles/665/1/Identify-Your-Interest-Enrich-Your-Career.html

Must Dos….for corporate employees

Every one of us has dreams, needs and desires. Buying a dream house, best education to children’s, great time after retirement and many more……but if we fail to do proper planning….Then soaring cost, mounting inflation, uncertain and unforeseen events of life can put brakes on our dreams turning into reality. To help us and to solve most of our financial worries Mr Manikaran Singal in his article “Must Dos….for corporate employees” shared few valuable things in very simple language which will improve financial lives of many people….you can read full article at given link… http://marvelinvestments.com/blog/item/14-must-dos-for-corporate-employees.html

Must read for young employees and remember one of the famous quote “He who fails to plan, plans to fail” by unknown.

World Day against Child Labour 2011

The International Labour Organization is to mark this year’s World Day against Child Labour (June 12) with events in more than 50 countries, along with a new report on children in hazardous work.


The report analyzes the latest trends and estimates of children in hazardous work, and the risk to their health from a developed and developing country perspective. It also offers a series of policy recommendations to address child labour problem.


For Report and more information please refer ILO website or you can also check given link: http://www.ilo.org/ilc/ILCSessions/100thSession/media-centre/press-releases/WCMS_156353/lang--en/index.htm

MSI: Sacked the workers

New Delhi, June 06, 2011 India leading carmaker Maruti Suzuki India had sacked 11 workers. These workers were allegedly the ring leaders of the strike, which began on June 04, 2011. According to Maruti Suzuki India Chairman R C Bhargava, “The services of 11 persons, who were inciting workers to go on an illegal strike and created an atmosphere where safety of people were in danger, have been terminated,"

He said the workers had gone on strike without any notice but added the management is continuing the dialogue with the striking workers.

According to workers sources, the sacked employees include eight office bearers of the newly formed union, Maruti Suzuki Employees Union (MSEU), besides three other workers. The workers said the company currently has one union, Maruti Udyog Kamgar Union, which is mainly dominated by those working at the Gurgaon facility.

Striking workers are demanding:

• The recognition of a new union Maruti Suzuki Employees Union (MSEU) formed by those working at the Manesar plant.
• Retaining contract labourers for the two upcoming new units inside the complex.
• Refraining from any disciplinary action against the 11 office-bearers of the new union is another demand.

The last time the company witnessed a major strike was when workers stopped production for three months between November 2000 and January, 2001. Strikes aren’t unknown in north India’s auto belt. In 2009, workers at some 60 factories in Gurgaon and Rewari in Haryana went on strike, protesting the death of a worker.

It will be beneficial for all if any amicable solution is reached between both the parties. Company had incurred a production loss of about 1,200 units on operational day and there is huge unrest among the employees. Hope government is keeping eagle eye on the situation there is inside information that external factor (outside union) are trying leverage this situation.

Source

http://www.thehindubusinessline.com/companies/article2081371.ece?homepage=true
http://www.livemint.com/2011/06/06125932/Maruti-sacks-11-workers-refus.html
http://timesofindia.indiatimes.com/business/india-business/Maruti-Suzuki-strike-disrupts-production-shares-fall/articleshow/8745352.cms
http://economictimes.indiatimes.com/news/news-by-industry/auto/automobiles/maruti-suzuki-india-sacks-11-striking-workers-stalemate-continues/articleshow/8746946.cms
http://www.news24online.com/ViewDetails.aspx?NewsID=27906
http://www.financialexpress.com/news/maruti-suzuki-sacks-11

Positive Move: NFLMW to be made statutory

Every state in India have their own minimum wage and there is huge disparity between floor minimum wage of states. If we agree with sources then it will be history. To ensure a uniform wage structure and to reduce the disparity in minimum wages in the country center government had proposed the National Floor Level Minimum Wage statutory and recently which is agreed by states also.


Once new amendment come into force, the national floor level minimum wage will become binding on all states and they will have to ensure that unskilled workers are paid the minimum wages fixed by the Center. If state wants to give more than floor level wages then they are most welcome and free to do so.


This is positive move and it will benefit around 360 million workers across the country, most of who are from agriculture and other related activates.


Source:
1). http://articles.economictimes.indiatimes.com/2011-05-28/news/29593995_1_minimum-wages-act-national-floor-wage-floor
2). http://corporatelawreporter.com/national-floor-level-minimum-wage-statutory-2273.html

Confirmation Queries

I joined a large organization as a lateral. My probation period was given as 12 months. However, I have heard that the company does confirm people with probation period 12 months in 6 months itself "without any consent from the employee'. Is that correct? What is the best way to approach this situation (if I dont want to be confirmed)?

Every organization has confirmation policy and on bases of confirmation policy and performance of employee. Organisation confirms the employees and it is also favorable for employee to be confirmed because he will receive more benefits and rights on confirmation. When management is confirming any employee before stipulated probation period that means management is honoring the employee and his performance and it’s achievement for employee.

There are rare cases where employee works hard and at time of enjoying the fruits of his hard work he doesn’t want to have it. When employer confirms the employee before his/her probation period then it cannot be implied confirmation from implied confirmation I mean without informing/expressing to employee. Management has to inform this to employee and employee has choice to accept it or reject it but when employee rejects his confirmation then he have to leave the organization because it will be treated as end of contract. (Assuming management will not be happy to keep employee who do not want to associate with the organization)

So if employee doesn’t want to be confirmed then at a time confirmation he must expressly do not accept the confirmation. In India bonded labour is not permitted so if employee doesn’t want to work with employer then no one can force him but if in employment contract there is compensation clause for exit then both the parties have to fulfill it.

Fire Drill and Safety Program: Saved life

Mumbai, March 08, 2011 - A fire had broken out in shipping firm building but major loss and any causality were avoided because employees were aware what to do in such emergency. Thanks to management and HR who had had prepared the employees by continuous fire drill and safety programs.

Safety and Security of employees are not only responsibility of HR it is responsibility of each employee. We have to take safety drill and programs seriously they are not just time pass program but they small and basic program which save human life and property in emergencies.

As a HR we must carry out fire drills and safety program at regular interval.

Source: http://www.mumbaimirror.com/article/2/20110409201104090343219002f6ecf62/Routine-fire-drills-lunch-hour-save-day-for-staff.html

Applicability of ESI Act is extended for Delhi Area

ESIC, Delhi office had issued a notification on March 30, 2011 under Section 1(5) of the ESI Act, w.e.f April 01, 2011 in Delhi ESIC Scheme has been extended to shops, hotels, restaurants, cinemas, preview theatre, road motor transport undertakings, newspaper establishment, Private Medical and Educational Institutions wherein 10 or more persons are, employed, or were employed, on any day of the preceding twelve months.

For more information pls refer www.esic.nic.in/CIRCULARS/PnD30-310311reductionofcoveragelimit.pdf

IR – Bully Union Issue

One of my friend who is working as Executive - HR & Admin in one of the reputed organization his company is into engineering business. The said HR - Executive was used to take round check in that he found that some mathadi workers were not doing their work but rather wandering here & there so he would shout at them as these mathadis are local people so they uesd to do "Gundagardi "

Due to all these complaints the management had decided to sack the mathadi union. By this the Mathadi Union Leader got angry ( Who is a " Local Gunda ") he came to company alongwith 10-15 drunked ruffians he without asking anything to the HR - executive slapped the HR personnel & gave him "Galiz"

So with reference to above this what do you think what should be the take of Management on this???

I am sorry for your friend but these are some ground realities in IR. There are cases where some union mob killed the management persons. So dealing with bully unions are not easy task they are not only having support of workers but political nexus also. Each organization and situation requires different solution and expert persons.

Senior HR person must take lead in this case in place of sending fresh HR in dealing with this sort of cases.

Now coming directly to your question what management should do?

First Management must take action against person who had done such serious misconduct. Manhandling/Slapping must not be tolerated in any form. If today management will not take any action then in future slapping can lead killing of person.

Second Management has to find out long term solution of these issues. They have to do self analysis, engage more and more directly with people, build a free, transparent culture where any employee can raise his concern without any fear and any support of mob and so called leaders.