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Ayesha Khan is Senior Vice President- HR at ElixirMicrobes Pvt Limited, a leading bio technology firm. Elixir has been witnessing a very high attrition rate of 47% versus the industry average of 14.06%. At the same point of time, sales have grown moderately at the rate of 6% year on year. Ayesha feels that a large part of the attrition rate is due to the poaching activities done by its bigger rival RealMedicines, which commands about 35% of market share.
The recent sexual harassment charges hurled by an employee on Mr. K. Ramesh, one of the promoters of ElixirMicrobes, has also tarnished the image of the company a great deal. So far, the board has not taken any action against Mr. Ramesh.
She decides to undertake further analysis of the matter and decides to start an initiative “Employee is King” to boost employee morale and reduce attrition rates in 2015. She is due to submit her proposal next week to the Board of Directors and feels this holds the key in meeting the manpower requirements of ElixirMicrobes this year. She feels the focus of the initiative should be only on salary hikes and timely bonuses.
Exhibit 1: Attrition Rates in ElixirMicrobes
Year 2011 – 7% (Industry Avg – 9%)
Year 2012- 11% (Industry Avg – 12%)
Year 2013- 33% (Industry Avg – 14.5%)
Exhibit 2: Gender Diversity at ElixirMicrobes
Year 2013- Male 68% Female 32%
Year 2014- Male 83% Female 17%
Exhibit 3: Sales Growth Rate at Elixir
Year 2012- 14% (Industry Growth rate : 8%)
Year 2013- 12% (Industry Growth rate: 4%)
Year 2014- 6% (Industry Growth Rate: – 3% )
How should Ayesha formulate her “Employee is King” proposal and tackle all the challenges?
The discussion is now Open !
To tackle any problem it would be wise and essential to understand exactly how things are on the ground and especially among employees, so to start with, she can initiate a feedback mechanism in company, questions touching all parts of employee relation w.r.t the company- it would be a kind of an employee’s reflection of the company. I feel more than half of the problem of high attrition could be solved through this, as an effective questionnaire (an anonymous one) would alone give the clear picture as to what exactly are tempting employees to leave the company .
After reflecting upon the data from the questionnaire significant steps with immediate effect needs to be taken.
For eg 1) if salary is an issue( if below the industry average) then it should be revised,
2) apart from salary and timely hikes there could be a reward point system( as we have it in supermarkets after every purchase of 100 rs , there is a reward of 1-2 pts), may be after successful completion of projects employees in the team may be attributed points apart from bonuses, to instill a healthy participation
Secondly, a great degree of skewness in gender diversity is detrimental to a thriving workplace and this current case of sexual harassment needs to be dealt immediately with an iron hand (after through investigation of the issue) ,the accused shouldn’t be spared ,moreover the company needs to come out with measures which may initiate a sense of safety and reliability among women
for eg. 1) start with a private taxi service completely for women to ply from home to office and back ,
2) give them equal footing in assignments, projects should have women in the core-member list , to make it loud and clear that their say is equally important
I know I may have missed in alot of points , would love to hear from fellow participants 🙂
I feel more than half of the problem of high attrition could be solved through this, as an effective questionnaire (an anonymous one) would alone give the clear picture as to what exactly are tempting employees to leave the company .
Yes, this is a good approach . Looks Methodical. +1 for this.
Secondly, a great degree of skewness in gender diversity is detrimental to a thriving workplace and this current case of sexual harassment needs to be dealt immediately with an iron hand (after through investigation of the issue) ,the accused shouldn’t be spared ,moreover the company needs to come out with measures which may initiate a sense of safety and reliability among women for eg. 1) start with a private taxi service completely for women to ply from home to office and back , 2) give them equal footing in assignments, projects should have women in the core-member list , to make it loud and clear that their say is equally important I know I may have missed in alot of points , would love to hear from fellow participants
Started on a good note again but lost it mid-way. Too much diversion from topic. No use of the data given. :negative:
@all: This case has several dimensions to it. Lets see who all can take the discussions to next level.
The company, Elixir Microbes private limited is facing higher attrition rate than the industry average. Due to the harassment case against one of the promoters of the company, the morale has been at an all time low. Moreover, employees with low morale also have the option of being poached by their bigger rival RealMedicine. Ayesha who plans to start employee is king program must address these concerns.
As exhibit 2, shows that gender diversity is more skewed in favour of males (Males- 83%, Feamales- 17%). During the recruitment season, more weightage should be given to female candidates without compromising on other parameters of selection.Women should be provided with special counselling every month with the HR department, so that the company can understand their needs. In order to encourage and retain female employees, Ayesha should start handing out bonuses to female employees, who have performed to the expectation of the company.
A formal investigation should be launched against the promoter Mr K. Ramesh, against whom an employee has hurled sexual harrassment charges. After the investigation correct action must be taken by the management of the company. This will show that such matters are dealt with seriousness.
In order to reduce the high attrition rate of 33%(exhibit 1),every year the company should hand out year end bonuses to employees who remain with the organisation for more than 2 years. This would also nullify any poaching tactics employed by RealMedicine.
Since sales growth are at 6%, a special target based bonus must also be initiated in the “employee is King” scheme. This will provide the sales team with the incentive to work harder and multiply sales.
The company, Elixir Microbes private limited is facing higher attrition rate than the industry average. Due to the harassment case against one of the promoters of the company, the morale has been at an all time low. Moreover, employees with low morale also have the option of being poached by their bigger rival RealMedicine. Ayesha who plans to start employee is king program must address these concerns.
Impressive Start +2 :good:
As exhibit 2, shows that gender diversity is more skewed in favour of males (Males- 83%, Feamales- 17%). During the recruitment season, more weightage should be given to female candidates without compromising on other parameters of selection.Women should be provided with special counselling every month with the HR department, so that the company can understand their needs. In order to encourage and retain female employees, Ayesha should start handing out bonuses to female employees, who have performed to the expectation of the company.
Good suggestion +2 :good:
A formal investigation should be launched against the promoter Mr K. Ramesh, against whom an employee has hurled sexual harrassment charges. After the investigation correct action must be taken by the management of the company.
Well put forward +1
This will show that such matters are dealt with seriousness. In order to reduce the high attrition rate of 33%(exhibit 1),every year the company should hand out year end bonuses to employees who remain with the organisation for more than 2 years. This would also nullify any poaching tactics employed by RealMedicine.
You missed a stat. Read the passage carefully. You have not mentioned 2014 figure.
Since sales growth are at 6%, a special target based bonus must also be initiated in the “employee is King” scheme. This will provide the sales team with the incentive to work harder and multiply sales.
This one is not as simple as it seems. Read between the lines ! :wacko:
Overall a great attempt ! Great improvement compared to first case yesterday ! :good: :yahoo:
Looking at the stats that Ayesha has in her hand, she must first concentrate on attrition rate since it is the most depressing figure among all. She can include various measures in her “Employee is king” initiative. The first of them includes a thorough study of the market strategy adopted by other companies of the industries. Also a comparative analysis of the salary and hikes of different companies would help in formulising any hike if needed. Secondly, small measures such as awarding certificates for “Best Employees” per month or for smart work in project can motivate the employees greatly. Time to time, asking for employee opinion on various matters and their feedback would definitely make them feel important. Creative initiatives by any employee should always be greatly welcomed and rewarded. There should also be bonuses for contribution in project by employees.
Another step which can go a great way in reducing attrition rate would be helping an employee balance his work life and personal life. Increasing no of leaves or by allowing an employee for work from home can help in this regard.
Also various higher educational policies can be rolled out to encourage the freshers to retain them in the company as well as helping them in fulfilling their dreams.
Sexual harassment case should be investigated thoroughly and proper action must be taken in order to prevent any repeat of the same event.
Apart from the attrition rate, the gender ratio must also be concentrated upon. Recruitment must be carried out with special attention given to balance the gender ratio.Looking at the stats that Ayesha has in her hand, she must first concentrate on attrition rate since it is the most depressing figure among all. She can include various measures in her “Employee is king” initiative.
Wonderful suggestions. +5 for innovative thinking ! :yahoo:
Sexual harassment case should be investigated thoroughly and proper action must be taken in order to prevent any repeat of the same event. Apart from the attrition rate, the gender ratio must also be concentrated upon. Recruitment must be carried out with special attention given to balance the gender ratio.
Well thought. But there is something about the data in the exhibits that everyone seems to miss. @prajeshgupta made a great attempt … lets see if someone can find that.
Looking at the current situation of the Elixir, the focus should be on minimizing the attrition. Also, strict action is to be taken against sexual harassment. While recruiting the new employee company should maintain equilibrium in terms of gender ratio. Despite the employee is girl company should not give more preference to it. Male as well as female employees both should be cede equal rights.
As far as to implement “Employee is King” initiative, professional along with humanitarian ambiance should be maintained so that it will ease the employees to work. Furthermore, some new facilities should be ascribed to employees which will be beneficial to them in some way like flexible shift timings, over time, cab with trusted and registered chauffer facility for employees who are leaving at late nights etc.
Looking at the current situation of the Elixir, the focus should be on minimizing the attrition. Also, strict action is to be taken against sexual harassment.
Few good points. But largely beating around the bush. Nothing much substantial added. :scratch:
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