When an employee resigns, retires, or is being terminated from work, it is an employee exit
There are 5 Forms of Employee Separation /Exits:
Retirement means termination of employment reaching a defined Age in the appointment letter or company policy as applicable.
Resignation:
Resignation is the termination of service by an employee by serving a notice, called ‘resignation’ on the employer.
Layoff:
Lay-off is a practice whereby the employer cannot give employment to workmen for various reasons. Including shortage of raw materials, coal or power, accumulation of stocks, break-down of machinery, etc, or. any other connected reason.
Retrenchment:
The termination of the service of a workman by the employer which is not by way of disciplinary action or which is not a case of voluntary retirement, superannuation, or termination of service of a workman on non-renewal of the contract of an employee is called retrenchment.
Dismissal or Discharge:
Discharge is the most drastic disciplinary step that a manager can take. Dismissal is the termination of the services of an employee as a punitive measure for some misconduct. The discharge also means termination of the service of an employee, but not necessary as a punishment. Discharge is serious because it impairs the learning and image of the employees.
Attrition Analysis & How to Use it
Attrition refers to the number or percentage of employees who are leaving a company to work for other companies or who have decided to pursue other opportunities. The attrition rate is the measurement you use to determine the percentage of employees who have left a company in a given period.
As it is understood that the attrition rate is the percentage of employees who leave the company in a particular period, we have to analyze it as per the relevance of the figures.
Generally, Attrition takes place in different buckets likewise, Gender ratio, Millennial, Middle to Senior Level Management Staff, Star performers, Tenure Wise, etc.
Attrition gives you insights about your organization and helps to amend or devise the policy or programs that would help to retain the employees.
Let’s take a brief view:
Gender Ratio: The gender ratio in attrition may provide you insights into your management of Gender diversity in the organization.
Tenure wise: The attrition rate at different levels of tenure may give you different inputs to correct with your induction or career growth plans. If the attrition rate is too high in the new joiners then your recruitment and selection process will be in question or your induction and onboarding process would require a revamp to place these newcomers smoothly in your organization.
Generation M, X, Y: The attrition rate in the Generation of employees in your organization may lead to you understanding that the diverse requirements at these generations are not being fulfilled within your organization leading to attrition.
Compensation & Benefit: If your organization is set up in an intensively competitive environment then your compensation plans may play a leading role in retaining the employees.
Toxic environment: an environment of no dignity and respect is also a measure reason for attrition. You will have to keep a close eye on the kind of environment your organization is nursing in.
Career Growth and Challenging Environment: Organizations have to identify their STAR performers and always keep a career road map for them with challenges to motivate them to perform and an engaged atmosphere will help the organization to retain these STAR performers.
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Author / Educator – Nishikant Tayade, Deputy General Manager – Human Resources & Admin, Banswara Syntex Ltd., Surat
He is capable of adopting a new working environment and has gained comprehensive HR Professional knowledge by working in different demographical regions like Gujarat, Daman, MP, CG & Maharashtra with industries like Textiles & Garments and Media. He has been associated with companies like GHLC Ltd., Birla Century, BRFL, and Dainik Bhaskar Group.
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