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Thursday, May 05, 2005

Why Employees Leave Organisations? 

WHY EMPLOYEES LEAVE ORGANISATIONS? - Azim Premji

Every company normally faces one common problem of high employee turnout
ratio. People are leaving the company for better pay, better profile or
simply for just one reason' pak gaya '. This article might just throw some
light on the matter...


Early this year, Arun, an old friend who is a senior software designer, got
an offer from a prestigious international firm to work in its India
operations developing specialized software. He was thrilled by the offer.
He had heard a lot about the CEO of this company, charismatic man often
quoted in the business press for his visionary attitude.


The salary was great. The company had all the right systems in place
employee-friendly human resources (HR) policies, a spanking new office, and
the very best technology, even a canteen that served superb food. Twice
Arun was sent abroad for training. "My learning curve is the sharpest it's
ever been," he said soon after he joined. "It's a real high working with
such cutting edge technology."


Last week, less than eight months after he joined, Arun walked out of the
job. He has no other offer in hand but he said he couldn't take it
anymore. Nor, apparently, could several other people in his department who
have also quit recently. The CEO is di stressed about the high employee
turnover. He's distressed about the money he's spent in training them. He's
distressed because he can't figure out what happened.


Why did this talented employee leave despite a top salary? Arun quit for
the same reason that drives many good people away. The answer lies in one
of the largest studies undertaken by the Gallup Organization. The study
surveyed over a million employees and 80,000 managers and was published in
a book called First Break AllTheRules.


It came up with this surprising finding: If you're losing good people, look
to their immediate supervisor. More than any other single reason, he is the
reason people stay and thrive in an organization. And he's the reason why
they quit, taking their knowledge, experience and contacts with them.
Often, straight to the competition.


"People leave managers not companies," write the authors Marcus Buckingham
and Curt Coffman. "So much money has been thrown at the challenge of
keeping good people - in the form of better pay, better perks and better
training - when, in the end, turnover is mostly manager issue." If you have
a turnover problem, look first to your managers. Are they driving people
away?


Beyond a point, an employee's primary need has less to do with money, and
more to do with how he's treated and how valued he feels. Much of this
depends directly on the immediate manager. And yet, bad bosses seem to
happen to good people everywhere. A Fortune magazine survey some years ago
found that nearly 75 per cent of employees have suffered at the hands of
difficult superiors. You can leave one job to find - you guessed it,
another wolf in a pin-stripe suit in the next one.


Of all the workplace stressors, a bad boss is possibly the worst, directly
impacting the emotional health and productivity of employees. HR experts
say that of all the abuses, employees find public humiliation the most
intolerable. The first time, an employee may not leave, but a thought has
been planted.


The second time, that thought gets strengthened. The third time, he starts
looking for another job. When people cannot retort openly in anger, they
do so by passive aggression. By digging their heels in and slowing down. By
doing only what they are told to do and no more. By omitting to give the
boss crucial information.


Dev says: "If you work for a jerk, you basically want to get him into
trouble. You don't have your heart and soul in the job."


Different managers can stress out employees in different ways - by being
too controlling, too suspicious, too pushy, too critical, but they forget
that workers are not fixed assets, they are free agents. When this goes on
too long, an employee will quit - often over seemingly trivial issue.


It isn't the 100th blow that knocks a good man down. It's the 99 that went
before. And while it's true that people leave jobs for all kinds of
reasons- for better opportunities or for circumstantial reasons, many who
leave would have stayed - had it not been for one man constantly telling
them, as Arun's boss did: "You are dispensable. I can find dozens like
you." While it seems like there are plenty of other fish especially in
today's waters, consider for a moment the cost of losing a talented
employee. There's the cost of finding a replacement.


The cost of training the replacement. The cost of not having someone to do
the job in the meantime. The loss of clients and contacts the person had
with the industry. The loss of morale in co-workers. The loss of trade
secrets this person may now share with others. Plus, of course, the loss
of the company's reputation. Every person who leaves a corporation then
becomes its ambassador, for better or for worse.


We all know of large IT companies that people would love to join and large
television companies few want to go near. In both cases, former employees
have left to tell their tales. "Any company trying to compete must figure
out a way to engage the mind of every employee,"


Jack Welch of GE once said. Much of a company's value lies "between the
ears of its employees". If it's bleeding talent, it's bleeding value.
Unfortunately, many senior executives busy traveling the world, signing new
deals and developing a vision for the company, have little idea of what may
be going on at home.


That deep within an organization that otherwise does all the right things,
one man could be driving its best people away.
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