Office Workouts | LG’s career road map cuts attrition rate

Office Workouts | LG’s career road map cuts attrition rate
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First Published: Mon, Mar 09 2009. 09 38 PM IST

Y.V. Verma, Director, Human Resources, LG Electronics, India
Y.V. Verma, Director, Human Resources, LG Electronics, India
Updated: Mon, Mar 09 2009. 09 38 PM IST
What: Employee capability-building initiative by LG Electronics India Pvt. Ltd. The objective is to nurture, develop and retain talent and build a capable workforce in the organization.
Y.V. Verma, Director, Human Resources, LG Electronics, India
When:Since July 2007.
Why: For today’s employees, the foremost concern is their career and professional development. LG recognized this need well in time. “The company was quick to create a talent pool and this helped sustain our growth,” says Y.V. Verma, director, human resources, LG Electronics India. However, this pool turned into a poaching ground for competitors. “Attrition became a major challenge and we worked on a strategy to stem it,” he says. Accordingly, LG laid out a career and competency development road map for each employee, right from front-line executives to senior leaders, for the next four-five years.
How: The company charted out a seven-step framework to map each employee’s existing competencies, competency development and career plan.
• Behavioural assessment of each individual through an assessment centre.
• Functional assessment of employees based on role-specific competencies.
Building loyalty: The company says employee motivation has gone up.
Asking every employee about career aspirations.
Preparing a five-year career development and competency development plan.
Communication of this plan to each employee in consultation with the employee as well as the functional superior and human resource manager.
Preparing a training calendar for competence-building.
Follow-up for correct implementation of the plan.
The result: Employees were clear about career growth in the organization for the next four-five years. Attrition came down from 12% in 2006 to 8% in 2008.
Employee motivation has gone up, which is reflected in the Net Promoters Score (a feedback mechanism about people’s views on this initiative). “In order to build loyalty among its employees, a firm should provide opportunities for their career growth,” says Verma.
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First Published: Mon, Mar 09 2009. 09 38 PM IST