{"id":303,"date":"2019-08-01T16:23:24","date_gmt":"2019-08-01T14:23:24","guid":{"rendered":"http:\/\/globalbusinessacademy.hosting-cluster.nl\/?p=303"},"modified":"2021-06-23T17:51:50","modified_gmt":"2021-06-23T15:51:50","slug":"blog","status":"publish","type":"post","link":"https:\/\/globalbusiness.academy\/india\/2019\/08\/01\/blog\/","title":{"rendered":"The Costs, Reasons, Indicators and Solutions to Churn in India"},"content":{"rendered":"<a href=\"https:\/\/www.ssonetwork.com\/talent-management-leadership-and-culture\/columns\/the-costs-reasons-indicators-and-solutions-to-churn-in-india\" target=\"_blank\" class=\"button primary\" rel=\"noopener\"  >\n\t\t<span>Link to SSON network<\/span>\n\t<\/a>\n\n<p class=\"p1\"><span class=\"Apple-converted-space\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-604\" src=\"https:\/\/globalbusiness.academy\/india\/wp-content\/uploads\/sites\/2\/image-1.png\" alt=\"\" width=\"526\" height=\"268\" \/><\/span><\/p>\n<p class=\"p2\"><i>\u201cI finally got my Indian peer up to speed and we\u2019re working well together. But now he is leaving and I have to start all over again\u2026\u201d<\/i><\/p>\n<p class=\"p2\">Churn is a big headache in India. The cost of attrition is 18 months\u2019 salary and hiring externally hikes up salary costs by 20%. Aside from the tremendous costs, it has a huge impact on international team performance and satisfaction.<\/p>\n<p class=\"p2\">I once met a company in China where churn was so high that they broke jobs down into tasks that took only 30 minutes to train. Churn is not solely an Indian problem but with RPA, job complexities in India are only getting bigger, not smaller.<\/p>\n<p class=\"p2\">Since 30-minute job training is not an option, let\u2019s dive into this subject.<\/p>\n<p class=\"p3\">What are normal attrition rates in India?<\/p>\n<p class=\"p2\">Job-hopping is widely accepted in India. A recent survey by KPMG India shows a 13,4%. attrition rate across industries. In some industries such as professional services however, a 25% rotation every single year is normal. Multiple heads of GBS in India reported an average churn of 17-18%.<\/p>\n<p class=\"p3\">Why is churn so high?<\/p>\n<p class=\"p2\"><span class=\"s1\"><b>Millennials:<\/b><\/span>\u00a0You\u2019ve probably noticed that your Indian colleagues are very young. On average, Indian employees are 29 years old. Over 50% of the population is under 25. You\u2019re working with an almost exclusively Millennial workforce. So, how do Indian Millennials compare to their peers across the globe?<\/p>\n<ul class=\"ul1\">\n<li class=\"li4\"><span class=\"s3\">Tracking whether you are\u00a0<b>keeping up with the Joneses and the Kumar\u2019s<\/b>\u00a0has become easier than ever. Carlijn Boerrigter at EY found that social media has a huge impact on job hopping. How does your career progress compare to your class mates? The answer is only a mouse click away. Is your career not progressing fast enough? A new job is only one mouse click away, too.<\/span><\/li>\n<li class=\"li4\"><span class=\"s3\"><b>Job hopping is normal all around the world<\/b>. Nicole Solleveld from YourConnect found that Dutch Millennials stay in a job for 28 months. KPMG UK reported a maximum tenure of 3 years. The US calls Millennials the \u2018job hopping generation\u2019. India isn\u2019t such an outlier.<\/span><\/li>\n<li class=\"li4\"><span class=\"s3\">Whether a Millennial lives in India, Europe or America, they want to<b>\u00a0learn, grow and know where their career is going<\/b>. What is happening on a large scale in India now will be happening in the West, too, as more Millennials join the ranks.<\/span><\/li>\n<li class=\"li4\"><span class=\"s3\"><b>Once Millennials settle down, they job hop less<\/b>. In India, that\u2019s at around 30 years of age.<\/span><\/li>\n<\/ul>\n<p class=\"p2\"><span class=\"s1\"><b>High demand for skills:<\/b><\/span>\u00a0There are more graduates than jobs in India, so you would expect low attrition. Unfortunately, many Indians received substandard education. Their skills are limited, therefore, and so is their ability to fit into a job. Real talent is in short supply and employers are fighting for it. If\u00a0<i>you<\/i>\u00a0don\u2019t create a career development and compensation path for your talent,\u00a0<i>someone else<\/i>\u00a0will.<\/p>\n<p class=\"p3\">Tell-tale signs that your organisation has problems<\/p>\n<p class=\"p2\"><span class=\"s1\"><b>Check the data:<\/b><\/span>\u00a0Churn rates vary per industry. Reputable recruitment companies in India know industry data so you can compare your churn to companies in a similar field. They can also tell you whether external factors such as location could be contributing to your churn.<\/p>\n<p class=\"p2\"><span class=\"s1\"><b>Interview your source:<\/b><\/span>\u00a0Why are your people leaving? Anjali Raghuvanshi, Chief People Officer at Randstad India, recommends companies hold\u00a0<i>stay interviews<\/i>\u00a0to prevent staff from leaving in the first place. Should they hand in their notice, Anjali finds that face-to-face exit interviews work better in India than an online survey, because you\u2019ll get more genuine answers. Staff often cite personal circumstances: getting married, relocating etc. Sometimes these are genuine. However, medical circumstances are often used to escape the notice period.<\/p>\n<p class=\"p2\"><span class=\"s1\"><b>Detect a pattern:<\/b><\/span>\u00a0Anjali always looks for patterns. If almost everyone is citing personal circumstances for leaving, you need to ask yourself\u00a0<i>why<\/i>. Is the manager too strict? Once you detect a pattern, alarm bells start should start ringing.<\/p>\n<p class=\"p3\">The key ways to retain talent<\/p>\n<p class=\"p5\"><span class=\"Apple-converted-space\"> <img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-606\" src=\"https:\/\/globalbusiness.academy\/india\/wp-content\/uploads\/sites\/2\/image-123.png\" alt=\"\" width=\"779\" height=\"603\" srcset=\"https:\/\/globalbusiness.academy\/india\/wp-content\/uploads\/sites\/2\/image-123.png 1124w, https:\/\/globalbusiness.academy\/india\/wp-content\/uploads\/sites\/2\/image-123-600x464.png 600w, https:\/\/globalbusiness.academy\/india\/wp-content\/uploads\/sites\/2\/image-123-800x619.png 800w, https:\/\/globalbusiness.academy\/india\/wp-content\/uploads\/sites\/2\/image-123-400x310.png 400w, https:\/\/globalbusiness.academy\/india\/wp-content\/uploads\/sites\/2\/image-123-768x594.png 768w\" sizes=\"auto, (max-width: 779px) 100vw, 779px\" \/><\/span><\/p>\n<p class=\"p2\">This graph shows the drivers for retention: what motivates professionals to stay at a company. The thousands of answers can be broken down into age, region, gender, seniority and more.<\/p>\n<p class=\"p2\"><i>Source: Global Business Academy\u2019s India e-learning program.<\/i><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>Career growth:<\/b><\/span>\u00a0With 16%,\u00a0<i>career growth<\/i>\u00a0tops the list for why Indian staff choose to stay with their employer. The older Indians are, the more important career growth becomes. A few points:<\/p>\n<ul class=\"ul1\">\n<li class=\"li4\"><span class=\"s3\">In this age of Holacracy, Western organisations like to reduce hierarchy structures. In India however, organisations with more hierarchical layers and titles create an illusion of growth. The consequence of cutting out layers and titles, therefore, is that staff stay on the same level for much longer. As a result, managers need to do a lot of convincing that staff are growing.<\/span><\/li>\n<li class=\"li4\"><span class=\"s3\">Anjali advises organisations to provide more clarity on career planning and compensation. Managers lack in informing their employees on how they are doing or where they stand.<\/span><\/li>\n<li class=\"li4\"><span class=\"s3\">Indian employees usually voice their dissatisfaction with their feet, not with their mouth.<\/span><\/li>\n<\/ul>\n<p class=\"p2\"><span class=\"s1\"><b>Flexible work schedules plus work-life balance:<\/b><\/span>\u00a0In India, organisations expect staff to work long hours. As a result, private and work lives are intertwined. Just as employees are willing to work evenings and weekends, they demand flexibility at work to take care of personal matters, go for long lunches or get time off for celebrations. Whilst this is less important for 20-29 year olds, it is increasingly important for 30-39 (22%) and 40-49 (31%) year olds.<\/p>\n<p class=\"p2\"><span class=\"s1\"><b>Salary<\/b><\/span>: Moving into a new job means an average incremental pay of 25% (Randstad). Indians often support the entire family: spouse, children, parents, school fees and hospital bills. And despite the lower average salaries in India, Mumbai is the second most expensive real estate market globally! In other words: every rupee counts.<\/p>\n<p class=\"p2\"><span class=\"s1\"><b>Communication and\u00a0leadership:<\/b><\/span>\u00a0Indian staff want to be involved in the strategy of the organisation or else they get disengaged (Randstad). Managers need to ensure that staff feel aligned to the vision, offer opportunities to learn and grow, and develop their key talent. In other words: Indian managers need to move from IQ to EQ. However, not all of them have these skills.<\/p>\n<p class=\"p3\">So, what do you do when you have a problem in your Indian office?<\/p>\n<p class=\"p2\">You have detected a pattern. The issue is internal, not external. Your Indian management says the churn is normal but you don\u2019t think it is. Or you hear a lot of excuses. You\u2019ve asked for action plans but you don\u2019t see results. You have an uneasy feeling that you don\u2019t have a grip on what\u2019s going on.<\/p>\n<p class=\"p2\">So, what do you do? Fire people? Accept it?<\/p>\n<p class=\"p2\">Before taking any action, you need to check if your global policies work for India. Secondly, you need to understand what you are dealing with. And that means immersing yourself with knowledge about the Indian way of working. You need to be able to answer whether you have the right people \u2013 which means this is a case of skill development \u2013 or if you have the wrong managers \u2013 who are perhaps a little\u00a0<i>chalta hai<\/i>, or old school, driving performance but also churn.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>\u201cI finally got my Indian peer up to speed and we\u2019re working well together. But now he is leaving and I have to start all over again\u2026\u201d Churn is a big headache in India. The cost of attrition is 18 months\u2019 salary and hiring externally hikes up salary costs by 20%. Aside from the tremendous<\/p>\n","protected":false},"author":3,"featured_media":208,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[60],"tags":[11,12,13],"class_list":["post-303","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-india","tag-churn-attrition","tag-india-workforce","tag-talent-management"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>The Costs, Reasons, Indicators and Solutions to Churn in India - India Business Academy<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/globalbusiness.academy\/india\/2019\/08\/01\/blog\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Costs, Reasons, Indicators and Solutions to Churn in India - India Business Academy\" \/>\n<meta property=\"og:description\" content=\"\u201cI finally got my Indian peer up to speed and we\u2019re working well together. But now he is leaving and I have to start all over again\u2026\u201d Churn is a big headache in India. The cost of attrition is 18 months\u2019 salary and hiring externally hikes up salary costs by 20%. Aside from the tremendous\" \/>\n<meta property=\"og:url\" content=\"https:\/\/globalbusiness.academy\/india\/2019\/08\/01\/blog\/\" \/>\n<meta property=\"og:site_name\" content=\"India Business Academy\" \/>\n<meta property=\"article:published_time\" content=\"2019-08-01T14:23:24+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-06-23T15:51:50+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/globalbusiness.academy\/india\/wp-content\/uploads\/sites\/2\/Scroll-Group-29.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1150\" \/>\n\t<meta property=\"og:image:height\" content=\"582\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Ilse Kerling\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Ilse Kerling\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"6 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/globalbusiness.academy\\\/india\\\/2019\\\/08\\\/01\\\/blog\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/globalbusiness.academy\\\/india\\\/2019\\\/08\\\/01\\\/blog\\\/\"},\"author\":{\"name\":\"Ilse Kerling\",\"@id\":\"https:\\\/\\\/globalbusiness.academy\\\/india\\\/#\\\/schema\\\/person\\\/686bb6e9586fd63b91fb7865025384d1\"},\"headline\":\"The Costs, Reasons, Indicators and Solutions to Churn in India\",\"datePublished\":\"2019-08-01T14:23:24+00:00\",\"dateModified\":\"2021-06-23T15:51:50+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/globalbusiness.academy\\\/india\\\/2019\\\/08\\\/01\\\/blog\\\/\"},\"wordCount\":1199,\"image\":{\"@id\":\"https:\\\/\\\/globalbusiness.academy\\\/india\\\/2019\\\/08\\\/01\\\/blog\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/globalbusiness.academy\\\/india\\\/wp-content\\\/uploads\\\/sites\\\/2\\\/Scroll-Group-29.png\",\"keywords\":[\"Churn Attrition\",\"India Workforce\",\"Talent Management\"],\"articleSection\":[\"India\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/globalbusiness.academy\\\/india\\\/2019\\\/08\\\/01\\\/blog\\\/\",\"url\":\"https:\\\/\\\/globalbusiness.academy\\\/india\\\/2019\\\/08\\\/01\\\/blog\\\/\",\"name\":\"The Costs, Reasons, Indicators and Solutions to Churn in India - 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