Reducing Attrition in the organization A change process
People process and technology are the three main components of any organization. All these components are interrelated. In the case of technology and processes the best in the industry can be picked up and applied across various organizations but for these to succeed the third component (people) must respond accordingly. A finest process of the industry can fail if the people of that organization are not willing to perform or if the people are not competent to perform the given task.
The entire process of hiring is essentially getting the people who are a perfect fit for the requirement, willing to perform in the organization and most important those who are culturally fit for the organization.
For small and medium sized organizations it is a challenge to attract the right type of candidates at the right time and retain the talent force. This brings into picture the role of the human resources departments' role. Most often start-ups start with known faces from within the family or its extension and as they grow, they hire talent from the industry. This is where the problem begins. In a highly competitive global business, recruiting talents with technical skills is not enough anymore. The way the family members work together and the kind of professionalism expected by the new recruit are a complete. Moreover, as organizations' internal processes mature, so should workers' decision-making and implementation proficiency. This leads to increased attrition in the organization. Increased attrition will consequently increase the expenditure on recruitment and training and development deprive the company of the low cost benefits. Hence attrition has been an area of concern for many organizations as it affects their bottom-line. In sectors like IT/ITES and BPO firms there is huge hue-and-cry of talent shortfall and high attrition rates. On analyzing we can see that the fault lies in the first stage that is hiring the employee that is culturally a misfit for the organization. In such a scenario it can be noticed that a best practice of the industry cannot be copy pasted in any other organization
To prevent this situation the workforce in the organization needs to be trained to cope up with the change. For this the existing level of knowledge and skill in the organization workforce and the ability of workforce to apply them to improving business performance and the goals of the organization are to be assessed. The workforce's commitment to performance ability to perform activities performed needs to be taken into account for verifying the implementation of any process.
In a nutshell, it means helping workers help top managers steer project processes according to current and target capability levels and project directions, as well as providing a framework for optimising employee competencies for greater measurable value. For human resources and worker development practitioners, P-CMM serves as a framework for developing employees from mere knowledge workers to knowledge managers
Most organisations with little to no established internal processes, aside perhaps from those related to administrative matters, manage employee development in mostly ad-hoc fashion where workers are designated to positions and projects without much consideration for the impact on the long-term vision of the company.
Organizations that have achieved a certain level of maturity assign people development to immediate managers. There is still a certain degree of arbitrariness at this level, but the role that employees play in the smaller organization (for example, a project team or a department) is being reviewed and measured according to agreed-upon standards that managers expect from their subordinates. The focus is mostly on the performance of workers, not on the long-term competency development.
Things change for the better as participation is encouraged among workers. Career path and competency development gain more attention from top management, while collaborative activities are encouraged among staff members. Planning and analysis according to organizational goals are introduced in the people management process.
As people continue to gain further competencies through training and mentoring, it is expected that they become empowered to eventually make professional and organisation decisions. The workforce as a whole should develop integrated or complementary competencies and be able to manage their skill sets at organizational level. They must be able to make (or suggest) decisions based on what they know and the processes established within their organisations.
When organizations have developed integrated capability sets among workers, it is then that they can continue to innovate products, services, and processes. Innovation is nearly impossible when the people who should be championing new directions in their business domains have no clear course on how they can get from the basic service delivery level to top-class product development. Moreover, poaching by competing firms and high turn-over can be prevented if employees understand the value of their place and contribution to the organisation.
Also in today's time when the world is seen as a global village and companies are striving to tackle issues like multi-culture and multi-geographic workforce rapid growth and creating a favorable culture for all is a task for the HR professionals. And in the process creating value for the end customer moving up the value chain and handling the ever growing competition. It involves change in attitude of the leaders and team heads, the commitment from the managers a strong leadership that nurtures talent
The need of the hour is to take a holistic view of the organizations business, culture, technology, and talent needs and adapt solutions based on an integrated approach towards developing and engaging talent, growing the business and delighting the customers. To motivate attract and retain talented employees organizations need to create an environment of employee engagement by offering tangible rewards quality of work, future growth opportunities, inspirational values, work life balance and improved work force policies. This cannot be achieved by business process reengineering, employee stock options, and 360degree appraisal we need something more holistic and more sustainable.PEOPLE CAPABILITY MATURITY MODEL (PCMM)
People Capability Maturity Model (PCMM) developed at SIE (software engineering institute) provides the solution. This model guides the organization in improving their ability to attract develop motivate organize and retain talent based on the best current practices in fields such as human resource, knowledge management and organizational development. The PCMM guides the organization in improving their processes for managing their workforce and developing it. The PCMM helps the organization in assessing the maturity of their workforce and develop a program to enhance its workforce culture and improve the processes to achieve excellence .Peoples capability maturity model available to help the organizations to help them achieve their goals CMM helps organization to build optimal and standardized processes. However it was felt that lasting improvements in performance could not be achieved without involving workforce hence PCMM acts as a benchmark against which the present practices of the workforce are measured. It also serves as a template in designing and applying activities aimed at improvement. It helps organization in improve the skill and competencies of the manpower since it contains distinct levels from initial to optimum level it helps organization to assess its present level and make measurable and concrete steps to advance the levels. It acts as a guide in improvement programs within the organization it provides guidance at two levels viz. the strategic level for building the organization and guidance and practices which can be used in the organizations. Practices used in PCMM are from the past global experiences because they have significant impact on the individual team and organizational performance.
The main premise is that the workforce practices will not survive unless an organization behavior changes to support them. The people capability maturity model has five stages-evolutionary stages, through which an organizations workforce practices and processes evolve. At each level a new system is added to those implemented earlier level. Each overlay of practices raises the level of sophistication through which the organization develops its workforce. Within this environment individuals experience greater opportunity to develop their career potential and re more motivated to align their performance with the objectives of the organization.
PCMM is mainly used by IT/ITES companies. Historically, Mahindra holiday and resort India has been a pioneer in using PCMM being a non IT company. Table-I gives a picture of number of companies in each level of maturity level in India and table-II gives a list of companies that have completed the five stages of maturity and have received an accreditation from QAI
People CMM benefits
Strategic objectives of PCMM
Improve the capability of the organization buy increasing the capability of the workforce
Ensures the process capability is an attribute of the organization rather that n a few people
Aligns and motivates individuals with organizational goals
Retains human assets within the organization
The PCMM helps the organization to
Characteristic the maturity in the human resource practices of the organization
Guide a program me of continuous human resource management
Focus on improving individual and team capabilities
Establishes a culture
Aligns human resource with business goalsThe client
Our client has a pan India presence and its head office is located in Mumbai. It intends to follow industries best practices and metric based quality norms for all its operations and processesChallenge
High attrition rates in the industry and low availability of talent pool with skills for direct employment without prior training. Client could foresee the rise in expenditure in recruiting, training and development, depriving the client of low cost benefits. Managing attrition became a strategic priority. Client wanted to create an environment of employee engagement by offering quality of work future growth opportunities, inspirational values, work life balance and improved workforce policies.Solution
PCMM was identified as a global and well structured approach for assessing and improving the current people practices the augment of this process would enhance the existing people practices procedures. All the processes were reviewed against the PCMM model then they were changed and improved
A team was formed to define the road map and give a structure to the working. Domain experts and leaders were a part of the core team because the designing and implementation of the new process was to be done by them. Balanced score card approach was selected to design the KRA's of all the employees
The PCMM was initiated by developing the competency framework this was done with the help of team heads and leaders along with functional heads. This detailed information on the competency and the proficiency level was defined for each individual this information is crucial for recruitment and training and development.
Competency based development of employees was initiated. This helps the organization to look at the available talent pool and the future requirement. This gave a clear vision to the employees about their future growth prospects the client enhanced their recruitment and training practices and hired a better quality talent. This builds confidence in the employees and creates a positive image of the client
Reduction in attrition
Increased efficiency improved performance
Reduction in time required for each process
Revenue increasedWay ahead
The client aspires to attain level Five of the maturity level over a period of time.Annexure 1
Certification level-wise (as in March 2006)
Levels Number of Companies
Level -4 1
Level -5 18
PCMM Level 5 Companies in India (as on March 2006)
S.No. Name of Company
1. Accenture Services Pvt. Ltd.
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