In the contemporary environment of the Indian startup sector, growth is the main goal. However, a hidden threat lurks beneath the surface: employee turnover rate. It is observed that high levels of attrition affect new ventures adversely, which is why being proactive about it is important for startups. So, let us know how to curb attrition from becoming the real growth deterrent for startups.
Impact of Attrition
Research shows the ugly truth about how turnover impacts startups. According to a TechCrunch 2023 study, organisations with a turnover of more than 25% witnessed a decline in revenue growth by 40% compared to organisations with lesser turnover. This strongly points out the need for quality HR support for startups to tackle this major problem.
The strength of retention in business is a way of fostering development through improvement in institutional memory and team cohesiveness, enhanced customer interaction, decrease in cost, and healthy organisational culture. Moreover, senior workers gain firm-specific skills, which increase creativity and productivity.
Strategies to Curb Attrition
To combat high turnover rates, Indian startups can implement several strategies:
- Offer competitive compensation
- Ensure that the staff can clearly understand their career advancements achievable within the company.
- Promote work-life balance
- Understand the value recognition and rewards bring to employees
- Foster open communication
- Implement appropriate training and orientation processes
For many startups in India, it can be difficult to implement these strategies due to many reasons. This is where HR support for startup service providers comes in. Kutumbh Konnect deals in HR support solutions, which address issues regarding employee retention. These services are based on:
- Information collected through data analysis
- Development of individual as well as organisational work plans
- Polls that are intended to get feedback
Conclusion
Indian startups can address various HR issues by collaborating with companies that provide HR support services, without diverting attention from the main core business processes. Do not look at your employees as simply your resources; they drive your startup, from the idea, clients, and victory. Invest time in your people proactively and see your startup effectively compete in the cutthroat Indian environment.
