Innovative Retention Strategies
Sarita Hegde shared an interesting article named HR Baits To Hook Job Hoppers:
Faced with rising attrition companies are exploring ways to keep employees hooked and engaged while delaying their departures.
From innovative insurance schemes, subsidized degrees and diplomas from top colleges, to deferred bonuses and in-house mutual funds… HR is doing everything they can to retain their employees.
High attrition sectors like retail, telecom, financial services, IT and ITeS are party to these innovative schemes more than anyone else.
Companies not listed on stock exchanges are using shadow options to retain employees. Candidates are being provided the book value of the shares over a period of 3-5 years, a part in third year, a part in the fourth year and subsequently the rest, provided they stick on for the fifth consecutive year in the company.
Kicker bonuses — performance-linked bonuses paid over a period of time are also being used as a strategy for the senior management. Retention bonuses have also worked well for companies to reduce attrition.
Pantaloon Retail has introduced a unique insurance plan, where relatives of an employee, in the event of the employee’s death, get his/ her pay package as the insured sum for the service period left in the company. This is particularly beneficial as the pay packages are revised at equal intervals. It has received immense response from the employees and families. It is specifically targeted at the Tech companies are saying hello to psychometric tests as they look at capping attrition and hunting for new means of efficient hiring. These tests, which are usually given in the top three levels, starting from store managers.
Subsidizing management development programmes for entry and mid-management levels are drawing attention. Some even sponsor the spouses along with employees for management programmes at Harvard, and pay back a certain percentage of the fees after completion of the course or when returning to their respective companies.
GE Money has tied up with Mudra Institute of Communications, Ahmedabad, to offer a marketing course for graduates who have spent more than 6 months in the organization. About 75% of the fees for the one-year course gets reimbursed if they stay back.
