1. ATTRITION IN HEALTH CARE INDUSTRY By Major Kabita Biswas

2. DEFINITION The reduction in staff and employees in a company through normal means, such as retirement and resignation. This is natural in any business and industry

3. CAUSES OF ATTRITION Essentially, there are two causes of attrition, which can be grouped into two broad categories - Functional attrition - Preventable attrition. 1. Functional Attrition Functional attrition is unavoidable, inevitable turnover. Examples include employees who retire, employees who leave for a spouse's job transfer, and employees who leave because of health problems or to care for sick relatives. In other words, functional attrition is caused by circumstances that can't be controlled. You must expect and accept this type of turnover.

4. CAUSES OF ATTRITION 2. Preventable attrition Preventable turnover, on the other hand, can usually be controlled and avoided but often isn't. Poor hiring practices, misguided policies, and inflexible corporate attitudes are some of the preventable reasons people leave companies. a) Lack of job satisfaction b) Stressful work environment

5. CAUSES OF ATTRITION c) Outside influences d) Conflict with a manager Preventable turnover occurs when your company can change a policy or find a solution to keep employees from leaving but doesn't. People leave companies for a variety of reasons.

6. RATE OF ATTRITION Attrition rate There is no standard formula to calculate the attrition rate of a company. This is because of certain factors as: 1. The employee base changes each month. 2. Many company firms may not include attrition of fresher's who leave because of higher studies or within three months of joining. 3. In some cases, attrition of poor performers may also not be treated as attrition.

7. RATE OF ATTRITION The attrition rate has always been a sensitive issue for all organizations. Calculating employee turnover rate is not that simple as it seems to be. Calculating attrition rate: Attrition rates can be calculated using a simple formula: Attrition =(No. of employees who left in the year / average employees in the year) x 100 Thus, if the company had 1,000 employees in April 2004, 2,000 in March 2005, and 300 quit in the year, then the average employee strength is 1,500 and attrition is 100 x (300/1500) = 20 percent.

8. THE PROBLEM IN HEALTHCARE SECTOR Employee turnover in the healthcare sector is extremely high; so high in fact that in some US states it is more than double the national average of 15.6%. Small talent-supply pool leading to a whirlwind of aggressive headhunting amongst competing healthcare organizations. ThinkShed's view, however, that the real cause of this crippling turnover is poor human capital management in the healthcare sector. Certainly, the severe shortage of talent does not help matters, but it is a compounding factor rather than the cause itself. Although many healthcare organizations may not recognize it, high turnover will be the difference between corporate success and failure.

9. THE PROBLEM IN HEALTHCARE SECTOR 1. The average age of nurses is climbing rapidly. In 1980 more than 50% of RNs were younger than 40, in 2000 that figure has dropped to 31% In 2000 the average age of the RN population was 45.2 years nearly 1 year older than in 1996 2. The number of nurses entering the profession is declining 3. The average salary of Registered Nurses is not growing at an alarming rate The “real” average salary of RN’s has remained flat since 1992.

10. THE PROBLEM IN HEALTHCARE SECTOR The bottom line is that not only are fewer nurses entering the profession, they are doing so later in life. A shrinking, aging, talent pool is a crisis since 1992 indicating that organizational loyalty is practically non-existent in this sector. Simply not “attached” enough to their current employers which make headhunting them difficult.

11. THE PROBLEM IN HEALTHCARE SECTOR A shortage of RN staff has been found to impact 1. Patient “Length Of Stay” by up to 12%, 2. The “Risk of Failure” surgical environments by up to 14%. Put another way, every RN role that remains unfilled has a significant and traceable adverse impact on the bottom line of patient care. The current practice of simply trying to recruit more aggressively does not address the real issue. The real issue is that most healthcare organizations are the equivalent of a badly leaking bucket.

12. CONTROL MEASURES Right person into the right job. Identify the challenges and addressing each with clarity. Assessment tool which gives a clear picture with reliability factor rating. Recruitment must be correctly done. Training of employee through in service education. Personal development of individual.

13. CONTROL MEASURES contd. Team building. Interpersonal communication skills. Employee involvement. Family involvement. Mentor allocation for new joinees. Varity of retension polices by HR collabration with department head.

14. CONCLUSION Motivate employee in right direction to develop the moral to contribute happier management employee relation. If an employee’s values and abilities are close to those defined as “core” by the hospital they are more likely to be productive, motivated, satisfied, and well rewarded - the 4 critical elements to long-term tenure of employees of Health Care Industry.

15. Any Questions ?