Adda | Peer-learning session | On labour attrition and retention

The Post Graduate Programme in Family Managed Business (PGPFMB) course at SPJIMR recently organised an enriching Adda session for the newly inducted batch 36. An Adda is a structured interaction amongst participants that aids peer-to-peer learning where participants collaborate to address a real-world business issue of their choice. The Adda session of PGPFMB batch 36 discussed the critical issue of labour attrition and retention. Moderated by participants Shivoy, Jaival, Vansh and Archit, it highlighted that approximately 80% of participants encounter challenges related to this topic in their organisations. The session discussed the causes of labour attrition and explored possible solutions. Below are the key insights:

Causes of labour attrition:

• Frequent HR changes: Our participant Jaival shared her experience in the pharmaceutical industry, where rapid turnover in HR leadership creates instability and unresolved issues.
• Skill gaps: Concerns were raised about quality engineers leaving due to overconfidence, leading to insecurity among newer engineers and increased job rotation.
• Organisational attitudes: Kanishq noted that retention issues are pervasive across departments. He suggested enhancing training for junior staff to foster a more positive culture.
• Competition with MNCs: Saharsh illustrated how smaller companies struggle to retain employees as larger firms like PepsiCo and Amul lure them.
• Training migration: A participant from the manufacturing sector pointed out that employees often leave after receiving training for better opportunities.
• Sales pressure: In a sales-oriented environment, pressure to meet targets can lead to demotivation and increased attrition when targets are not met.
• Seasonal employment: The real estate industry faces challenges with job stability due to seasonal demand fluctuations.
• Moonlighting issues: Concerns were raised about employees moonlighting, which creates conflict and can lead to resignation threats.
• Union dynamics: A steel industry participant discussed how union activities can influence worker attitudes, creating tension with management.
• Evolving labour attitudes: Government incentives shift labour expectations, leading to more demanding behaviours.

Proposed solutions:

• Value employees: Treat employees as investments rather than costs, fostering a culture of appreciation to encourage retention.
• Engagement from management: Top management should connect personally with employees to understand their concerns and build rapport.
• Diverse incentives: Introduce non-monetary incentives alongside salary to enhance job satisfaction.
• Management dynamics: Implement a “good cop/bad cop” strategy to balance management expectations and employee needs.
• Supervisor relations: Maintain strong relationships with supervisors and contractors in labour-intensive organisations to support workers effectively.
• Creative recognition: An innovative recognition system shared involves awarding the “Employee of the Year” prize to the employee’s spouse, thereby creating family support for continued engagement.
• Family atmosphere: Cultivate a workplace culture that feels like family, encouraging employees to feel a sense of belonging.
• Internal customer approach: Treat labourers as internal customers, prioritising their needs and satisfaction.

The session concluded with Prof. Tulsi Jayakumar, PGPFMB Programme Chairperson, sharing valuable insights. She emphasised the importance of authenticity in labour engagement: “Labour engagement should be done with utmost authenticity.” This reminder reinforces the necessity of genuine connections in fostering a motivated and committed workforce. The Adda session provided valuable insights and collaborative solutions to the ongoing challenge of labour attrition and retention, setting the stage for further discussions and initiatives in the FMB course. We look forward to more such interactive sessions that encourage innovative problem-solving among peers.