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 experienced an employee attrition rate of 2-5% per year simultaneously. However, IT employee attrition is usually very high in India and worldwide. Some of India’s top IT companies have experienced employee attrition rates as high as 20% or higher.
Many of our staff have stayed for more than ten years. Some have even been with us for almost two decades, from the beginning. Why have we achieved 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, as our employee attrition rate 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, not just 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 expected.
At the same time, a small company lacks the financial resources and brand recognition in the employment market. Therefore, recruiting top talent may be more challenging for a small business. Some of the big companies have given up on retention. Instead, they are trying to recruit top talent and maximise their potential as quickly 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 lower 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 they supervise. 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 strive to incorporate a fair amount of fun into our work and personal lives.
More Flexibility
We recognise that people have different needs, and we strive to understand these. Young people may not mind working extra hours to monitor 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 the flexibility to bring their 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 do not believe that classroom or formal training is the most effective way to learn. Instead, learning occurs constantly, primarily 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, building 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 gain exposure to new technologies over time.
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 those in need within our community, primarily through 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 one 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 city marathon races.
If a company takes social responsibility, it will create a better workplace. A socially responsible company is attractive to both existing staff and potential 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 need to source the right people and train them in our working methods. 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 our ability to grow quickly. However, that may be a good one. We want to preserve our unique culture and atmosphere and stand out in all that we do.
Motivation theory
One of the most widely discussed contemporary motivation theories suggests that autonomy, mastery, and purpose are the factors that most motivate employees. Money is just a hygiene reason. If you feel you are underpaid, you may consider leaving because you believe the employer is unfair. However, if you think you receive a fair salary, money becomes less important as a 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 on a continual basis. We always strive to provide each staff member with the flexibility they 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 excellent staff and stand out as a great company. We are working hard to continue maintaining our low attrition rate.
Would you like to join us? If you are considering outsourcing a project or would like more information, please get in touch with us.