Grappling with high rates of attrition is becoming an acute problem for organisations at large. To solve it, companies are using tools that have been around for a while, but are coming in handy now. Using Six Sigma tools, several companies have been able to reduce attrition to manageable levels. ?Our goal statement was to reduce the attrition to 14% by April 2007. We have been able to bring it down to 13.8% by June 2007 by using fish-bone analysis, Voice of Customer, SIPOC, all of which form part of the Lean Six Sigma methodology,? says Ravi Kartham, general manager, Xerox India Ltd.
Xerox India is not the only one that has turned to Six Sigma to make its human resources processes more effective and error-free. Known for its effectiveness in process manufacturing, Six Sigma is being embraced by more and more HR professionals. Agrees Kishore Velankar, senior vice-president, human capital management, Integreon, ?Organisations today come up with various retention strategies but the question to ask is, do these retention strategies address the root cause as to why people leave an organisation? Six Sigma provides the framework for identifying probable causes, collecting data on them and through statistical analysis discover the most probable causes that would lead to defects in a process.?
Integreon uses the Six Sigma framework to draw its retention strategies. Data collected from employee-satisfaction surveys and exit interviews are analysed, probable causes are identified and based on that the HR team suggests retention strategies. And it is not just retention strategies where Six Sigma methodologies are used?it finds uses in the entire cycle includes the entire process from identifying the right candidate through to hiring them. ?We have been running projects on Six Sigma in the recruiting process, where we aim at capturing the impact that the recruitment process has on employment branding for the client, talent pool generation, candidate?s assessment process and client satisfaction. As we basically take care of the senior and middle-management recruitment, it is easier for us to take care of both the quality and the time. Six Sigma as a tool has helped us and our clients a great deal in generating quality awareness and delivery excellence,? points out Jacob Samuel, associate partner, Elixir Web Solutions, a recruitment process outsourcing firm.
What started as a tool used mostly in manufacturing and production outfits, has found its way into the service sector and has resulted in huge savings and better process evolutions in the service industry as well. Six Sigma has a very objective and logical approach which is based on statistical analysis of data and gives a great deal of input on how can things can be done better, quicker, easier and cheaper. A process that performs at Six Sigma produces only 3.4 defects out of every million opportunities. The tool, therefore, enables professionals to employ this approach and generate quality consciousness.
Six Sigma helps in conducting Voice of Employees (VOE) survey capturing all the important aspects driving employee satisfaction leading to retention. ?Every root cause is validated for its impact on satisfaction level so that company resources?time, money and people are aligned to work on a prioritised list of actions. These actions and thereby improvements are monitored and tracked through data represented in the form of dashboards,? explains Ujjwal Majumdar, head, quality, at WNS Global Services.
The selection process needs to be mapped correctly to ensure that employees stay in an organisation for the long haul. This helps to have the right person for the right job. This reduces post-recruitment dissonance for an employee. The head of departments lists quantifiable objectives within a month of the associate joining and this helps the associate really understand the direction and expectations of the team. Explains Sachin Y Puntambekar, senior manager, Spykar Lifestyle, ?Getting the right job descriptions from the head of departments helps human resources personnel narrow down on candidates and helps in selecting the right profile for a job.?
A clear example of how Six Sigma has helped BPOs in containing attrition is seen in the recruitment of differently-abled people by the industry today. Says Malini Deekshit, vice-president, HR, HTMT Global Solutions. ?BPOs today look at differently-abled people as assets instead of a CSR initiative that is forced upon them,? she says.
Meanwhile, some typical projects within human resources where Six Sigma is being increasingly used include remodelling the hire versus overtime dilemma. This is done by balancing the cost of entry point wages and salaries and the cost of induction and learning, against the cost of overtime. It takes into account burnout, fatigue and additional allowances and breaks. Cross-functional mapping of various HR processes is often a precursor to improvements in those processes, with single-point data entry, elimination of redundant tasks and automation of some of the more tedious and time -consuming work.
?People working in Six Sigma commonly quote the hiring process as one with rich rewards for mapping, understanding, reengineering and streamlining, rewarding both the people being hired and the organisation,? points out Deekshit. Payroll is another process in HR where the application of Six Sigma will reap rich dividends.
Implementing Six Sigma, however, is not devoid of problems. Since implementation of Six Sigma requires a mindset change and a cultural transformation, it proves to be a challenge sometimes, especially in legacy companies.
Says Sashi Kumar, general manager, Microsoft India Global Technical Support Centre, ?People do not adopt the framework and make it as part of the day-to-day operations overnight, so there is a need for complete commitment and time investment from employees and the management to make it happen. While initially, it did take some time for adoption, but I think over a period of time it has been set in place as an ongoing rhythm.?
At the ITES firm Avaya Global Services Delivery, though there was no resistance to implementation of these initiatives. ?It was a challenge since the benefits are accrued over a period of time after sustained focus and follow up,? says its senior vice-president, Rajeev Shroff. ?However, as employees start understanding the benefits, they come up with new ideas for process improvement, thereby having a positive influence on the overall effectiveness of the organisation,? he added.
Implementing Six Sigma, like all good things in life, needs single-minded, top management focus and follow-up. It?s tough going in the initial years since it increases data work and documentation. But not all are complaining.
Says Narendra Puppala, vice-president, global HR, Birlasoft, ?But the best benefits are seen when the mindset gets perpetuated as an inherent organisation culture of approaching everyday work. Yes, it takes a lot of discipline, commitment and hard work to get there, but the benefits of doing so outweigh any other consideration by a wide margin.?