HRCI SPHR – Module 4. Chapter 3: HR Analytics

1. Module 4. Chapter 3: HR Analytics

Part Five Exit Management and we would be starting with retention. So, employees retention entails a strategic action to keep employees motivated and focused so that they keep engaged and productive for the benefit of the organization. If we do not retain our employees, then there would be a lot of costly turnover and company would be spending huge time getting new employees on board, train them and then the vicious cycle would continue of leaving and the following the entire cycle again. So comprehensive employee retention program plays a pivotal role in attracting and returning key employees as well as in reducing turnover and its related costs.

So what are the major reasons that we should focus on retention to reduce the turnover? Because turnover is costly and employee leaves, you have to get a new employee on board. You would be spending time on recruiting, branching, and then there would be a lag of getting a new employee on board and then train him to make him fully productive. Unwanted turnover affect the performance of the organization. So an unexpected attrition will hamper your productivity, will hamper your project deadlines and companies long term goals. As the availability of a skilled employee continues to decrease, it becomes increasingly difficult to retain the existing employees because if the employees are leaving, the current employees would have a huge pressure and stress to complete more work and it would be difficult to even retain them. So these are the major reasons where you should work on so that your retention rate is high and company is able to achieve its goals.

So, I have defined retention mechanisms in three buckets. One is the continuous one in which you have to continuously working so that you get a good time on board and keep them engaged. Then there are some proactive approaches to get the root cause promptly and work on them and then it’s active when the situation has happened and now you have to act on it. So the continuous ones are one where you get the right talent on board, which meets the skill set of the work requirement. You keep them aligned to the goals and the objective of the organization and this keep engaged and retained with the organization. You are continuously working on the development of the employees for their career growth and enhancement.

You’re providing them the right benefits so that they should not be focused about what are the benefits other competitors are giving. They should get their benefits that they are looking for and they remain motivated enhancing their current role. They are learning something new every day, so it helps them keeping engaged and they look forward to coming to the office. And the office culture is open where they can share their ideas. There’s open door policy, they can go to the senior management if they have new ideas and if they want to escalate something. So it’s an open culture, it’s a contributing culture. Then there’s some proactive approach so your companies to set the engagement survey to see how their employees are doing, what are the action areas that they need to work upon, what things are working right and where they need to improve.

Then HR do conduct focus or skip level meetings in which managers are not there, and they have a meeting with the team to understand what’s working right and where they need to work upon manager’s own development. So that they know how to keep the team retained and how to work on the team development and goal setting process so that the employees knows that what is expected out of them and they work towards the company goal. Now, in case employee has resigned, so what actions that company has to take? One, they have to conduct the exit interview once the employee has submitted the resignation. Second, after employee has left the organization for companies to post exit interview in which they connect with the employees after three months to understand how things have been and what they could have done better. Because there could be a scenario that during exit interview employee would have not been truly honest with the HR. So these days companies are doing post interview. Also, nowadays, big companies make an alumini network where they try to get engaged or retained with the ex employees, so that in case there’s any future we can see in the organization, they can rehire them, or just to add the branding of the organization so that they can refer any employee in case the company has an open position. So this is a few retention mechanisms that the company are using these days to keep the employees engaged and productive on board.

Now let’s talk about exit management. It is a separation process from the organization, ensuring a smooth transition for the employee and company with a minimal effect on the work. There will be some effect, we cannot deny that, but to make the process smooth so that there’s a minimal effect on the work. What is the purpose of exit management? To make the work hazard free for all the three parties involved. Employ HR and manager and the team. Clear communication, that how the process would run. Clear guidelines. What are the steps that needs to be followed? Effective transition so that the employee can share the backup with the person who is taking his role and completion of formalities. So there are two type of major attritions exit.

One is a voluntary and involuntary and in both buckets they are for the plant and unplanned. Starting with voluntary, the plant once would be person is retiring or they are resigning for better opportunities or higher study. They are transferring to a different country or a different office, they are relocating to a new place or their spouse is transferring somewhere and they have to leave the organization. This is a plan, one which the company can work on. The person gives a complete notice period and they can work on the transition. Things can be better managed in the unmanned even the things are not managed because suddenly things have come up and employee and company has to work on it.

So unforced even could be that employee has left suddenly without serving the notice or could be due to accident or some personal issues or god forbid for a death scandal. Employee has not reported to the office and has been absconding and there’s no information about the employee immediate resignation didn’t serve the notice period and immediately left the organization. So under the unplanned resignation companies has to manage the exit because there is not a proper transition and the exit formalities are not even being completed. So company has to manage the things in a speed up way to think so that the work can carry on in full and trade attrition one is planned. Where the Pip performance improvement plan was running for an employee was not successfully, an employee was asked to leave, they could be performance issue like attendance issue or not as a major major discipline issue but some issues were going on and employee was asked to leave. Unplanned is that some highly disciplined issue has come up and employee was immediately asked to leave.

So these were unplanned planned and won’t treat attrition. So companies has to manage this information or these attrition confidentially and has to see that the companies how the impact would be minimum on the team, on the work and in the overall company’s reputation. So how the exit management flow works. First the employee resigns manager discuss the reason of the resignation with the employee. Once the managers approved the resignation they include HR, HR discuss with the employees that why resigning, what went well, what could have been done better and then they discuss the exit formalities.

Employees notice period begins with the work transition is being done on the last day, the final clearance is being done by the delvin stakeholders, employees submit the laptop and all those things aspects of the company. Once the clearance is being submitted, clearance form has been submitted to the HR, then the HR issue, the relieving letter and once the employees FNF is being done, then FNF letter and the experience letter is being sent to the employee. So this should be a current flow of exit management for an employee. So what is the purpose of the overall objective of exit management? Process and policies have to be robust and effectively managed, roles and responsibility of each stakeholder should be clearly defined. HR should ensure that the process is smoothly driven, highlight management timely of exit key themes and data with recommendations. Well documentation of exit interviews for future legal cases could be or when they’re thinking of rehiring someone they can refer to the exit interview, introduce an effective management of exit interview tools and link it with the employee engagement portion. So there are many exit interview tools and they are linked with the employee engagement to see whether they are correlated or not. Now, what is the role of manager?

Timely, flag high attrition risk to HR and effectively action to retain and engage those employees. Continuously collaborate with HR to create backup for each role to manage, planned and unplanned attrition will. Effectively work transition during the resigned employees notice period. So there should be a plan in place or the transition would take place and resign. Employees should leave the organization in good terms so there should not be a last minute stress or unconscious biasness with the employees who are on notice. They should be left on the good terms so that in case there’s a good position in the future, they could be rehired. So this is all about strategic human resource management from my end. So strategic human resource management is a continuous cycle where the HR is deciding processes or policies in line to the organizational culture, trends, practices, goals, as well as industry. Three practices. That’s it. Thank you.

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