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Clear Communication & Expectations Management

Dr. Rathi of IIT Bombay has done pioneering five-year research on the topic titled, "Human Resource Challenges in Indian Software Industry: An Empirical Study of Employee Turnover".
The research won the Mercer Award 2003 specific to Asia-Pacific region. He is of the view that a communication strategy with intention of honoring commitments would go a long way in managing attrition.

The role of communication does not end with hiring. Once recruited, proper communication to employees is the primary step towards creating a conducive work environment. It should be the management's endeavor to provide employees with a good idea of how business has been, the potential issues and the important events affecting the company. Greater involvement in the affairs of the company breeds motivation and loyalty.

The organization should not only act as a paymaster but should adopt the role of a 'counselor' for its career-oriented workforce. This role of nurturing the talent and guiding them uplifts the motivational environment.

Compensation & Reward Management

Having employee reward policies and practices in the organization can help to attract, retain and motivate high-quality people. Rewards can be both financial and non-financial. Recognition is perhaps the most cost-effective way of motivating employees. While the high cost of other rewards forces companies to give them sparingly, recognition can be given any time, at very little cost. Thus, companies should strive to build in a high value of recognition into every reward. Movie-tickets, a coffee-mug or a T-shirt can have far more motivational power than what their prices would suggest, if they are given with the right kind of appreciation.

As far as possible, rewards should be linked to the performance of the employees. Today's employees have higher expectations for what work can and should be, and they want to receive rewards that reflect their personal efforts and contributions. Also, rewards need to be given as soon as possible after the performance has taken place. Immediate recognition of an effort most often ensures a better performance the next time. If delayed, the reward loses most of its motivational aspect.

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* Contributed by -
Anirban Majumdar & Kamal Poddar,
Indian Institute of Management,
Kozhikode, Kerala.