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How To Increase Employee Productivity?

If your company is facing inefficiency due to high attrition rate we have a solution to increase productivity.

Retention and Turnover
10 Min read
Last Updated on
April 5, 2021

Is your company one among those who are doing well yet among those succumbing to the effects of a high employee attrition rate? Well, then you need to understand how to fix the attrition rate and increase employee productivity.

Ways To Increase Employee Productivity While Fixing Attrition

Calculating Attrition Rates

If you do not know this already,

10% would be considered to be an average attrition rate. 

You can calculate the attrition rate for your company using the following formula –

Calculating Attrition rates
Source- eduCBA

Let us understand calculating attrition rate better with the help of an example –

Consider an IT company that had 300 employees as of July 1, 2018. Let’s say during that month, 30 employees voluntarily left the company and the company hired 35 new employees.

Step 1 – We should first calculate the average number of employees.

The beginning number was 300. If 30 people left and 35 people were hired, then the ending number was 305. The average number of employees for that month can be calculated with the equation [(300+305)/2] = 302.5.

Step 2 – We calculate the monthly attrition rate. 

In the month of July, 30 people left, and the average number of employees was 302.5. The monthly attrition rate can be calculated with the equation [(30/302.5)*100=.9.91%

So, the attrition rate for July 2018 was 9.91%, and the employee attrition for this company is about average. Now, if your employee attrition rate is higher than 10%, you need to find out what kind of employees are leaving you. If your employee attrition is somewhere around the golden number 10 and the majority of employees leaving you are low performers or perform not-so-significant jobs at your company, then there is not much to worry. But, if the employees leaving who are significant contributors to the company’s growth then here’s something you need to know.

Your employees are leaving because of you.

As an organization, In the race of reaching the shore before your competitors, it is very easy to get carried away and lose focus from the rest and land us in unfavorable situations like these. However, this is not something you need to stress too much about because, with just a few managerial corrections, your employee attrition will automatically come down in significant numbers. So, tighten your seatbelts and read till the end for this article can turn the tables of fortune for you by giving you a few actionable insights to reduce your employee attrition rate.  Not only that but applying these suggested strategies also has in it the potential to open doors of increased productivity by your employees.  And you know what is icing on the cake, none of the suggestions in this article recommend increasing your employees’ salaries.

Reasons Of Attrition And Fixing Them For Productivity

There is one single most powerful mantra to reduce employee attrition and increase workforce productivity in companies and that is to plan an impeccable employee engagement strategy.

Reasons Of Attrition And Fixing Them For Productivity
Source- HubStaff Blog

This might sound like a corporate buzzword you’ve heard a thousand times before, but practically speaking this is the one thing that can turn around the entire situation of employee attrition in your company. Let us look at factors that primarily contribute towards employee attrition in companies and learn how simple employee engagement techniques can make employees feel more inclusive and in turn reduce employee attrition –

1. Low loyalty towards the company –

This happens mostly when employees of a company perceive their relationship with that particular organization as a truly transactional one. This means, work in exchange for a salary. In such cases, the emotional affinity of employees towards the company is nil, and thus, there is no binding factor that compels them to make compromises or stay back at the cost of a few discomforts. Also, in such cases, the slightest of obstacles plant the thought of a job change in the minds of employees. 

This kind of employee attrition happens mostly when the company is making no efforts to form a healthy relationship with its employees. When employees receive no gratitude for the work they do, they feel no pressure to give the same to the company. Simple employee engagement efforts like regular communication of company updates, periodic discussions of employees performance, open-door policy to allow for employees to raise concerns or discuss their opinions, etc. make the employees feel like a part of the larger family . Imbibe in them a sense of wanting to give back to the company. When this feeling is secured right, the company will be fortunate to have employees backing them even in cases of a downfall.

Want to increase your employee productivity? Explore Xoxoday Empuls today

2. Zero motivation – 

Providing motivation is a mutual game, but the employer definitely needs to take the first step. It’s like this - 

When you invite a guest over to your place, having a nice time is an effect of both you and your guest’s mindsets, but you need to take the first step to make them feel at home and comfortable. 

You cannot be a bad host and expect the guest to feel comfortable and be proactive. Similarly, you need to be a good host to every new employee joining your firm and induct them into your organization and motivate them to contribute to their best efforts. This must include communicating to them the vision, mission and value system of the company, how their performance is going to impact the company, etc.

Planning rewards and recognition for the employees based on achievable milestones also keep the employees on their toes to perform better. Once you do this and make them realize that they are a significant part of the organization, they feel more inclined towards being a better contributor and also go an extra mile in case of unfavorable situations to make adjustments and stay back in the company. Imbibing motivation through employee engagement thus strikes out one primary cause that triggers employee attrition in the first place.

3. Unreasonable expectations –  

Gone are the days where the employer wore the hat of the king. In today’s world, all companies need talented employees for their survival just as employees need an employer to pay their bills. It is a symbiotic relation, and no one is above the other. So, know where to draw the line and have reasonable expectations.  That stated, it is understandable that the company needs to grow at an expected rate to keep up with the plans and expansions. The employers need to keep in mind those employees who are comparatively low performers. To solve this, introducing engagement strategies to build teams and let them work in close association under each other’s assistance makes sure the work you need is delivered. 

This additionally contributes towards solving another factor causing employee attrition, which is stunted growth. When employees of a company work in teams, there is always learning and exchange of knowledge between the members of the team. 

When there is good professional growth, there is a lesser chance they’re thinking about moving jobs.

4. Rigid rules – 

Rules are necessary to maintain a sane decorum in the company premises, but not at the cost of humanity and reasonability. There are several instances where rigid rules form the primary reason for employee attrition.  In these cases, employees decide to leave a company just because they feel obligated to unreasonable regulations put forth by the company. 

In traffic prone cities like Bangalore, Delhi or Mumbai, it makes absolutely no sense to have a zero tolerance walk in time every day. 

Other examples of stringent rules include fixed lunch hours, set working hours, a fixed number of breaks et al. Oh come on, are you worried about getting your work done or monitoring your employees like a school professor?  Also, people spend about 50 to 70% of their awake time in their working environment, and a rigid environment can only cause suffocation. Again, it is necessary to have rules but, the best way to go about this is to put in efforts to communicate why a particular practice has been imposed and also to find out if employees are finding any rule to be too hard or unreasonable to follow and make necessary exceptions.

5. Boredom – 

Now, this doesn’t need too much explanation. All work no play makes life no fun at all. Also, to keep your employees kicked about being part of your company, you need to plan out fun employee engagement initiatives.  A few exciting events could be an awards distribution ceremony where you give out fun titles to different employees, gaming nights at office, movie marathon days, a small trip bi-annually. You can look at other fun employee engagement ideas here

There are several companies that have risen to take your load of planning these employee engagement initiatives. Xoxoday is among the leading ones you can offload this responsibility on to. So, yes! Looking into employee engagement strategies wherever possible can lead your employees to perceive your company better and make them experience a sense of belongingness. This indeed increases workforce productivity by pushing them to take up more challenging work and perform better.

Think all this makes sense and need a good starting point? It’s best to start with a great giveaway.  Give us a call, and we’ll work out an offer your employees cannot resist or refuse. Be there any more additional inputs you have on the topic, we’d love to hear from you and discuss the same in the comments section below.

Xoxoday Empuls is the All-In-One Solution for Employee Engagement. Improve employee productivity, performance & retention with an easy to use engagement application. Want to know more? Book a demo or start a free trial.

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