At Gislen Software, we have a very low employee attrition rate. Typically, it is within 2-5%/year. However, the Indian IT industry has a very high attrition rate. Some studies indicate a rate that is as high as 23%. At Gislen Software, we have, at the same time, only had an employee attrition rate of 2-5% per year. However, IT employee attrition is usually very high in India and worldwide. Some of India’s top IT companies have had employee attrition rates as high as or above 20%.
Many of our staff have stayed for more than ten years. Some have even been with us almost from the beginning, more than two decades ago. Why have we managed to have such a low employee attrition rate at Gislen Software? We cannot claim to have found the silver bullet. However, we believe we have done something right since our employee attrition is as low as it is.
The advantage of being smaller
Of course, being a smaller company is an advantage when you want to have a lower employee attrition rate. It is much easier to see every person when the crowd is small. Employees get a broader perspective. They can see the wholeness and not a tiny part. Seeing the big picture is often impossible when working with a larger company. Since the personal relationship is essential, a lower employee attrition rate is more to be expected.
At the same time, a small company does not have the financial muscles and brand recognition in the employment market. Therefore, recruiting top talents may be more challenging for a small business. Some of the big companies have given up on retention. Instead, They are trying to recruit great people and get the most out of them as fast as possible. We believe that this is a short-term solution. We think clients will appreciate working with a supplier who has a low attrition rate. Among other advantages, a lesser attrition rate will reduce the cost and time lost on knowledge transfer over time.
Hygiene factors
Many important factors are affecting the employee attrition rate:
- Paying market-salaries
- Fairness
- Transparency
- Integrity
- Equal opportunities
Any company serious about retaining its employees must ensure these factors are in place. If not, then the employees will not see management as credible. No initiatives can make up for not doing good groundwork. If these things are not in place, employees will not stay. In other words, you can’t fake it. A low attrition rate doesn’t come without effort. It is mainly the result of leadership and culture.
Higher Engagement
We don’t use a formal appraisal system. Instead, our managers meet and regularly interact with everyone reporting to them. Since we use agile methodologies, our self-managed teams ensure that every team member gets recognition and feedback. The informal communication of a non-hierarchical organisation creates natural support networks where every person is seen and valued. We also try to add a fair amount of fun to how we work and even outside work.
More Flexibility
We recognise that people have different needs, and we try to understand these. Young people may not mind working extra hours monitoring the client’s system during late evenings. Additional income or time off may motivate them more. Employees with children may value regular work hours, a work-from-home option, or bringing children to the office. Higher autonomy and flexibility are the primary reasons for our low employee attrition rate.
Constant Learning
When new employees join our company directly from college, they undergo formal training initially. However, we generally don’t believe that classroom or formal training is the best way to learn. Instead, learning happens all the time, mainly on the job. We organise tech groups to ensure our staff continuously acquire new knowledge and competence. These groups jointly study and research a topic and build proof of concepts. After learning the area, they present what they have learned to their colleagues. It is also essential that staff have the opportunity to rotate and get exposure to new technologies over the years.
Making a difference
We decided early to be a different company. That does not mean that we can’t learn from others. But we are not in the business of copying what others do. We wanted to lead. Therefore, from the beginning, we decided to be an ethical company in many ways. Becoming an ethical company has been a journey, and we are not ready. We can always do more and do better.
A few initiatives that stand out over the years:
- Our CSR initiative involves giving and supporting the less fortunate in our community, mainly via Little Lambs School.
- Solar panels and inverters on our roof to manage power cuts instead of a diesel generator
- We wanted to lead towards a more sustainable and environmentally friendly business. As a result, we have volunteered to manage garden areas in our export zone. Waste segregation is another of our pet projects.
- We want to inspire our staff and others to live healthier lifestyles. We have a gym at the office and participate in various marathon races in the city.
If the company takes social responsibility, it will make it a better workplace. A socially responsible company is attractive both for existing staff and attracts new employees. If your employer is a responsible corporate citizen, it creates pride. It also strengthens our brand recognition. It allows us to stand out in a way that more considerable companies can’t always do.
Recruiting the right people and growing the right way
Low attrition would not be the only way to be a great company. We have to source the right people and train them in how we work. If we fail to do this, it will not make any difference if we manage to keep them. We believe we should hire most of our future leaders from our company. Sticking to such principles has limited how fast we can grow. However, that may be a good one. We want to keep our unique culture and atmosphere and stand out in all we do.
Motivation theory
One of the most talked-about contemporary motivation theories says that what motivates employees the most is autonomy, mastery, and purpose. Money is just a hygiene reason. If you feel you are underpaid, you may leave because you feel the employer is unfair. However, if you think you receive a fair salary, money stops being an important motivator.
Conclusions for why we have low employee attrition
To become a better company is not so much an endpoint as a journey. We want to engage with each employee and treat them as individuals continually. We always try to give each staff member the flexibility he or she need. They should always be learning and growing both as professionals and people. They must also feel like they are part of an organisation that wants to make a difference. Our employees should feel that they are working with great colleagues. We believe that we can become an even more outstanding company.
D&B, Federal Bank, and Times Group rewarded us for excellence in our sector in 2014. We must take this as a challenge to improve where we are. We never stop aiming for higher levels of excellence. In the process, we hope to keep our great staff and stand out as a great company. We are working hard to continue maintaining our low attrition rate.
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