5 Strategies That Will Increase Employee Retention

Mobile technology and the digital revolution have become ubiquitous enough that education poses no barrier to frequent and significant mobile phone use. In today’s time and age of technology-driven environment, there is a significant shift in the way blue-collar workers or informal workers are approaching jobs or are being approached for a job.

The overall process of identifying, sourcing, screening, shortlisting, and interviewing candidates for jobs, within an organization, has gone through some changes over the recent years. This change is visible not just amongst the organized sector job aspirants, but also becoming popular for the largely unorganized blue-collar work aspirants.

Causes of Attrition in Low-Paying Jobs

Employee Attrition has become a significant phenomenon, wherein, employees might leave their jobs owing to life circumstances, or general dissatisfaction. It may come off as unpredictable and uncontrollable but generally is a reduction in the workforce.

On the other hand, there are significant hardships that blue-collar workers are exposed to which remain unaddressed. Wages are the primary one.

According to a study conducted by the International Labour Organization (ILO), around 60% of India’s workers earn less than Rs. 10,000 per month. This payment system is insufficient to sustain a lifestyle and leads to massive inconsistency and a lack of motivation in employment.

Another notable challenge is the hazardous working conditions. Many workers do not have access to key facilities such as clean drinking water, a safe working environment, proper sanitation, and safety gear. This not only exposes them to work-related illnesses and injuries but also further contributes to job dissatisfaction and low motivation.

Furthermore, the lack of growth opportunities is another significant challenge faced by blue-collar workers in India.

What We Know About Employee Attrition:

• Voluntary – When an employee chooses to leave the company on their own accord. The resignation may happen for reasons ranging from pregnancy, health reasons, caretaking, life hardship or a willingness to switch to another job.
• Involuntary – The case where the company ends the term of employment. This usually happens when companies eliminate positions to reduce staffing costs or determine the position is no longer needed. This cost-cutting method of layoffs happening all over the globe is also due to the overestimation of organizations and the work resources required. At present, layoffs and terminations have resulted in an uncertain job market internationally.
• External – This instance comes in when an employee leaves to go work for another company. Usually, it happens when there’s an opportunity to take a position that more closely aligns with the employee’s career path or to get higher pay. There may be other reasons involved such as a shorter commute, work-life balance, and better learning opportunities.
• Internal – When employees accept another position within the same company whether to work in another department or receive a promotion.

Attrition in low-paying jobs, if voluntary, may also negatively impact the remaining employees, as the workload would increase. It may also lead to, limiting opportunities regarding the promotion of other employees, ensuing an unhappy workplace or even more attrition than intended.

According to research by Better Place, “It is in employers’ interest to reduce friction and improve engagement at various transition points, so that the attrition rates improve from the current levels of 50-150% depending on the industry.”

How to Address Job Retention Challenges?

• Recruit and hire the right people for the right job: This will increase retention and lower the attrition rate.
• Ensuring competitive compensation and benefits: One of the most commonly addressed issues is the payscale gap and irregularities in the compensation.
• Ensuring employee engagement: Ask for feedback, be it about the management, workload or the workplace. Create a positive environment where they feel valued and heard.
• Giving regular recognition to employees: A small token of appreciation goes a long way. Recognition in the workplace is usually a subdued activity, however, it is crucial to keep employees motivated and committed to work.
• Offer career progression opportunities: Through skill upgrades, courses, or the right guidance and work exposure the employees seek to benefit and so does the company. Investing in growth opportunities is a must to scale up with the current market. This greatly improves morale, motivation and productivity.
• Verification and validation of prospective employees: This, to ensure employee reliability and lower the possibility of fraud.
• Regular performance reviews

Even with the best efforts, if the employee wants to leave, then exit interviews can be conducted, to learn why they are leaving. And, if a pattern is observed then adjustments can be made accordingly.

Skill Development in the Blue-Collar Workforce

Blue-collar employees belong to the working class which may involve skilled or unskilled labour. This usually misrepresented workforce is in actuality the backbone of the economy, comprising over 500 million workers.

These workers are largely employed in sectors such as retail, logistics, delivery and manufacturing. In an industry like that of manufacturing, with time progress happens in skill upgradation.

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Employees are now getting jobs which not just provide a specific salary but also come with social standing, confidence, and a purpose. Such skills-based growth opens the doorway to a better lifestyle, providing their children with qualitative school education, an awareness of healthcare and other such opportunities.

Presently, specialized skills will help to identify one’s strengths and weaknesses, which will further help in deciding the kind of industry one would want to proceed in. However, despite the changing work scenario, the outlook for the blue-collar economy is optimistic. The economic turmoil and layoffs that have plagued the entire scene, somehow have managed to stray away from drastically affecting this cohort.

From manufacturing to waste removal, blue-collar workers are the people doing physical labour. In fact, now, there are certified electricians, mechanics, technicians, home help tailors, drivers, security guards, nursing assistants, carpenters, plumbers, etc. The pandemic has exposed the need for various blue-collar job roles that will survive the rise of technology.

Digital Recruitment on the Rise: Know How

As per research by Glassdoor Economic, 56 per cent of job seekers with a high school education used mobile devices to search for jobs while 42 per cent of job seekers with a doctoral degree used their mobile devices. This runs parallel to the common perception that only college-educated and tech-savvy workers are likely to search for and apply for jobs from their mobile phones.

With the onset of the pandemic and recurrent lockdowns, many blue-collar workers have been striving to keep their jobs stable, or seeking out more secure opportunities.

On the other hand, finding qualified talent remains challenging for many small companies. Reviewing applications, interviewing candidates and negotiating salaries all take precious time away from a business/organisation owner’s existing obligations, which may end up hurting the business in the long run.

That’s why some employers may now partner with platforms, or job candidates may directly start the search at the tip of their fingers on mobile applications.

Next steps in Digital Hiring

In this scenario, OTU is redefining blue-collar hiring and blue-collar jobs.

We offer refined options for finding the appropriate courses needed to reskill and upskill the employee. These skills will be suggested based on the professions or labour one will be subjected to. These skill development courses will either be paid or free of cost. And, on a need basis, there will be skill training courses and sessions in partnership with skill development and training institutions. These skills may vary from exposure to technology to digital literacy.

OTU India, a technology-driven digital platform will save time, and money by simplifying job search process. The ultimate vision boils down to helping India’s expanding workforce of blue and grey-collar workforce with safe and simple solutions for employment opportunities. Download the App now!

Join the bandwagon of digital growth and upgrade yourself to outshine in an evolving workplace. We now transition from traditional recruitment to online hiring and with the fluctuations of covid waves, the digital job market is the new normal.