RSSWipro’s Apporach to Attrition
Attrition & People are the greatest concern for IT Services firms, just read the article on Wipro's revised approach – People Pulse , the people tracker colour-codes every Wipro employee – red, amber and green. Red means highly likely to leave. Amber is the middle zone, and green the ones who are most unlikely to leave. They are tracked all the time. The colour zone helps the company focus on them better. Those in the high-risk zone, red, are under constant watch.
"This has helped us forecast how our employees are going to behave, track attrition and better manage it by timely interventions," says Prateek Kumar, HR head, Wipro Technologies.
The attrition forecast, with an error margin of 2%, has been fairly accurate.
Every employee at Wipro is mapped and his future growth path is identified fairly soon. The best managers are recognised with RSUs and special assignments. 'An evening with Azim Premji' is another way of making them feel special.
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I reckon that this coding is keep confidential. I mean it would affect employer employee relationship if this be known.
also I think it woudl be a great help how you tackle if the person is on the amber or green zone.
do you give better compensation or attention to those who aremost likely to stay or most likely to leave?
Thanks for the comment – Wilson
i think you make a valid point, on the treatment of the green tags, sad they wont be considered for all the perks just because they are not likely to leave
….doesnt seem right.
But i believe the tagging will be useful for the business also, as TM & PM’s can be aware of the possible attrition risk and put in place required mitigation plans.
This coding will really help them out in tracking the attrition. But tracking the attrition is not enough for the company. You should make the employee feel that the company is best in the market to work with, so that they themselves will be reluctant to leave the company.
Mark thanks for the comment, “Best in the market to work for”, well i think most companies still need to a lot of things right to get to that status. but also remuneration / price escalation are huge factors for movement….Dont know when that is going to settle.
Wipro or any other IT services company in India kinda has got used to the fact that people will leave no matter what you do.
This traffic signal type of approach should be used as only one of the tools to measure employee satisfaction rather than the norm de rigeur.
Think about it, why people in India leave for other pursuits.
1. More money (it could also mean the person is paid less compared to the market value)
2. Bad manager
3. Very few projects, more bench time
4. Company’s direction is not sound
5. Exciting technology project which would catapult this person to higher demand in the future.
6. Negativity in the team
7. Chances of going abroad on short-term projects (maybe the individual was never sent on overseas projects and itching to go now)
In my opinion “Best in the market to work for” status is far from visible future as there are still some challenging practices followed openly even in big companies like Wipro. For e.g. up unitl Dec-2006, onsite US employees on L1 visa were paid significantly less salary than those with H1 visa. Also recently they have linked a TM/PM’s salary directly with the cost of his account. So now any TM/PM will not let more money go to employees as it will cost them in terms of their reduced pay check. Also very higher ups in the management have their commissions/bonuses linked to company’s profit. This way everyone in the management will be worried about their pay check and their Bonus and their commission. This accompanied by very high salaries offered by MNCs in India will put immediate pressure on mid-senior employees to leave companies like Wipro.
Is it legal to “map” employees ? I get the idea but it’s like spying on them in some way. I guess it’s better to communicate constantly with them find their needs and try to solve them.
Every IT company has similar models in place. Hiring practices of Wipro and other IT companies are more to blame than anything else. Every IT company pays more to the new hires, lures them and within the company (as validated by Wipro’s policy) guys who are always on the look out or ready to leave – are given better care..! And then all IT companies wonder why we have such a high attrition rate – because no IT Company in India is willing to care for or to reward high performing guys who are loyal / have been with the organisation for years. Companies assume these guys are not worth caring for. They (IT Comapnies and Managers) always assign blame to other companies but forget the last hiring by their own company broke the same rules and caused the same impact to the other IT Company and the project this guy was working on.! All these Indian IT Companies are building a bubble (of lower utilization by hiring more and more for future growth and to address attrition) which will burst sooner or later!
Red means highly likely to leave. Amber is the middle zone, and green the ones who are most unlikely to leave.
Wipro is Government company no management is there. Its sucking blood of existing employee by giving them less salary. The company is only manage by banglore in rest of the places there is no works.