A STUDY ON ATTRITION RATE IN STANDARD CHARTERED BANK

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF MASTER OF BUSINESS ADMINISTRATION, DISTANCE EDUCATION GURU JAMBHESHWAR UNIVERSITY, HISAR

ACKNOWLEDGEMENT

I would like to take this opportunity to thank Ms. whose kind patronage the project would have never started in the first place. I am indebted to the staff of Standard Chartered Bank for their kind words and help given to me during the course of my summer training.

INDEX

Preface

Executive Summary of the Project Profile of the Company

Introduction History Product profile Sales figures / Market share Organizational chart

3 8 11 25 27

Research Methodology
Objectives of the study Scope of the study Types of the data Data collection Limitation of the study 28 29 35 37 38

Finding and Analysis Conclusions Annexure

Bibliography Questionnaire

39 66

67 68

PREFACE

I sincerely believe that one always learns from experience. This project is a step towards gaining knowledge about the real world and putting theory into practice. I shall greatly look forward and greatly knowledge all suggestions on this small step I have taken. This project deals with study of increasing attrition rate in STANDARD CHARTERED Bank.

EXECUTIVE SUMMARY

I have done my summer internship in STANDARD CHARTERED BANK. In my training I have to analyze the reasons for high attrition rate of employees in STANDARD CHARTERED BANK (NOIDA). The following project starts with an idea regarding the banking sector and also the profile of STANDARD CHARTERED.

INTRODUCTION
INDIAN BANKING SECTOR The Reserve Bank of India (RBI) is acts as a centralized governing body. Though public sector banks currently dominate the banking industry, numerous private and foreign banks exist. India's government-owned banks dominate the market. Their performance has been mixed, with a few being consistently profitable. Several public sector banks are being restructured, and in some the government either already has or will reduce its ownership. PRIVATE AND FOREIGN BANKS The RBI has granted operating approval to a few privately owned domestic banks; of these many commenced banking business. Foreign banks operate more than 150 branches in India. The entry of foreign banks is based on reciprocity, economic and political bilateral relations. An interdepartmental committee approves applications for entry and expansion. CAPITAL ADEQUACY NORM Foreign banks were required to achieve an 8 percent capital adequacy norm by March 1993, while Indian banks with overseas branches had until March 1995 to meet that target. All other banks had to do so by March 1996. The banking sector is to be used as a model for opening up of India's insurance sector to private domestic and foreign participants, while keeping the national insurance companies in operation. BANKING India has an extensive banking network, in both urban and rural areas. All large Indian banks are nationalized, and all Indian financial institutions are in the public sector. 3

RBI BANKING The Reserve Bank of India is the centralized governing body. It is the sole authority for issuing bank notes and the supervisory body for banking operations in India. It supervises and administers exchange control and banking regulations, and administers the government's monetary policy. It is also responsible for granting licenses for new bank branches. 25 foreign banks operate in India with full banking Licenses. Several licenses for private banks have been approved. Despite fairly broad banking coverage nationwide, the financial system remains inaccessible to the poorest people in India. INDIAN BANKING SYSTEM The banking system has three tiers. These are the scheduled commercial banks; the regional rural banks, which operate in rural areas, not covered by the scheduled banks; and the cooperative and special purpose rural banks. SCHEDULED AND NON SCHEDULED BANKS There are approximately 80 scheduled commercial banks, Indian and foreign; almost 200 regional rural banks; more than 350 central cooperative banks, 20 land development banks; and a number of primary agricultural credit societies. In terms of business, the public sector banks, namely the State Bank of India and the nationalized banks, dominate the banking sector.

REGULATIONS ON FOREIGN BANKS

Foreign banks in India are subject to the same regulations as scheduled banks. They are permitted to accept deposits and provide credit in accordance with the banking laws and RBI regulations. Currently about 25 foreign banks are licensed to operate in India. Foreign bank branches in India finance trade through their global networks.

GOVERNMENT AND RBI REGULATIONS All commercial banks face stiff restrictions on the use of both their assets and liabilities. Forty percent of loans must be directed to "priority sectors" and the high liquidity ratio and cash reserve requirements severely limit the availability of deposits for lending. The RBI requires that domestic Indian banks make 40 percent of their loans at concessional rates to priority sectors' selected by the government. These sectors consist largely of agriculture, exporters, and small businesses. Since July 1993, foreign banks have been required to make 32 percent of their loans to this priority sector. Within the target of 32 percent, two sub-targets for loans to the smallscale sector (minimum of 10 percent) and exports (minimum of 12 percent) have been fixed. Foreign banks, however, are not required to open branches in rural areas, or to make loans to the agricultural sector. Commercial banks lent dols 8 billion in the Indian financial year (IFY, AprilMarch) 1997/98, up sharply from dols 4.4 billion in the previous year.

STILL.

There are several other worries about the banking sector, mainly confusion over ownership and control. Sometime soon India will be forced to apply the norms of developed countries and many banks (including some of the biggest) will show very poor return ratios and dozens of banks will be bankrupt. When that happens the two popular reasons to defend bad banks will disappear. These are: one, to save face in the remote hope of that fortunes will `revive' and two, some banks are too big to be allowed to fail, fearing social upheaval.

PROFILE OF STANDARD CHARTERED

Standard Chartered is the world's leading emerging markets bank. It employs 29,000 people in over 500 offices in more than 50 countries in the Asia Pacific Region, South Asia, the Middle East, Africa, United Kingdom and the Americas. The Bank serves both Consumer and Wholesale banking customers. The Consumer Bank provides saving a\c.s, credit cards, personal loans, mortgages, deposit taking activity and wealth management services to individuals and medium sized businesses. The Wholesale Bank provides services to multinational, regional and domestic corporate and institutional clients in trade finance, cash management, custody, lending, foreign exchange, interest rate management and debt capital markets. With 150 years in the emerging markets the Bank has unmatched knowledge and understanding of its customers in its markets. Standard Chartered recognizes its responsibilities to its staff and to the communities in which it operates.

HISTORY OF STANDARD CHARTERED

Standard Chartered is the world's leading emerging markets bank headquartered in London. Its businesses however, have always been overwhelmingly international. This is summary of the main events in the history of Standard Chartered and some of the organizations with which it merged.

THE EARLY YEARS Standard Chartered is named after two banks, which merged in 1969. They were originally known as the Standard Bank of British South Africa and the Chartered Bank of India, Australia and China. Of the two banks, the Chartered Bank is the older having been founded in 1853 following the grant of a Royal Charter from Queen Victoria. The moving force behind the Chartered Bank was a Scot, James Wilson, who made his fortune in London making hats. James Wilson went on to start the Economist, still one of the world's pre-eminent publications. Nine years later, in 1862, the Standard Bank was founded by a group of businessmen led by another Scot, John Paterson, who had immigrated to the Cape Province in South Africa and had become a successful merchant. Both banks were keen to capitalize on the huge expansion of trade between Europe, Asia and Africa and to reap the handsome profits to be made from financing that trade. The Chartered Bank opened its first branches in 1858 in Chennai and Mumbai. A branch opened in Shanghai that summer beginning Standard Chartered unbroken presence in China. The following year the Chartered Bank opened a branch in Hong Kong and an agency was opened in Singapore. In 1861 the Singapore agency was upgraded to a branch, which helped provide finance for the rapidly developing rubber and tin industries in Malaysia.

In 1862 the Chartered Bank was authorized to issue bank notes in Hong Kong. Subsequently it was also authorized to issue bank notes in Singapore, a privilege it continued to exercise up until the end of the 19th Century. Over the following decades both the Standard Bank and the Chartered Bank printed bank notes in a variety of countries including China, South Africa, Zimbabwe, Malaysia and even during the siege of Marketing in South Africa. Today Standard Chartered is still one of the three banks, which prints Hong Kong's bank notes. THE POST WAR YEARS In 1948 the Chartered Bank opened in Bangladesh and during 1957 it acquired the Eastern Bank. The Eastern Bank gave the Chartered Bank a network of branches including Aden, Bahrain, Beirut, Cyprus, Lebanon, Qatar and the United Arab Emirates. The Chartered Bank also entered into a joint venture to form the Irano-British Bank, which opened for business in 1959. The bank grew rapidly and had 24 branches when it was nationalized in 1981. By the mid 1950s the Standard Bank had around 600 offices in Southern, Central and Eastern Africa. Its network grew substantially in 1965 when it merged with the former Bank of British West Africa, which had some 60 branches in Nigeria, 40 branches in Ghana and eleven branches in Sierra Leone in addition to operations in Cameroon and Gambia. Despite these acquisitions and expansion into new countries such as Mexico, South Korea and Oman (1968), both the Standard and Chartered Bank networks were comparatively small. STANDARD CHARTERED FROM 1990S TILL.. Even within this period of apparent retrenchment Standard Chartered expanded its network, reopening in Vietnam in 1990, Cambodia and Iran in 1992, Tanzania in 1993 and Myanmar in 1995. With the opening of branches in Macau and Taiwan in 1983 and 1985 plus a representative office in Laos (1996), in 1999, Standard Chartered acquired the global trade finance business of Union Bank of Switzerland.

Standard Chartered also opened a new subsidiary, Standard Chartered Nigeria Limited in Lagos, acquired 75 per cent of the equity of Nakornthon Bank, Thailand; and agreed terms to acquire 89 per cent of the share capital of Metropolitan Bank of the Lebanon. Today Standard Chartered is the world's leading emerging markets bank employing 30,000 people in over 500 offices in more than 50 countries primarily in countries in the Asia Pacific Region, South Asia, the Middle East, Africa and the Americas. The new millennium has brought with it two of the largest acquisitions in the history of the bank with the purchase of Grind lays Bank from the ANZ Group and the acquisition of the Chase Consumer banking operations in Hong Kong in 2000. These acquisitions demonstrate Standard Chartered firm committed to the emerging markets, where we have a strong and established presence and where we see our future growth.

10

PRODUCT PROFILE OF STANDARD CHARTERED

Through the network of over 500 offices in more than 50 countries, Standard Chartered offers personal financial solutions relevant to you as an individual. Standard chartered treasure building a relationship with the customer, developing an understanding of customers changing financial needs at different stages of your life. Their long heritage of nearly 150 years has enabled them to change with time, offering quality products by means that are convenient to customer. Standard chartered offer includes: Personal Finance Credit Cards Priority Banking Investment Advisory Services 1. PERSONAL FINANCE Mortgages In many of the markets where standard chartered operate, especially in key markets of Hong Kong, Singapore, Malaysia, they are reported to be the market leader for mortgages. Their experienced and dedicated teams will guide the individual in every single step to enable him a smooth and hassle-free experience, offering him rates and repayment packages most suitable. Start by trying our "instant approval" service. Personal Investments Insurance Deposits and Retail Services

Retail FX Products

11

12

Unique Features:

Low interest rates, option of flat or reducing interest rates Low EMI (equated monthly installments) No hidden costs like processing charge. Everything is done up front. Quick approval and realization. Tax benefits. No unfair collateral demands. A simple mortgage process.

Personal Loans

Standard Chartered Bank helps the customer to be in control of his/her own finances. Personal Loans, without any guarantees or collaterals, are available to customer to meet specific credit needs. Choose Installment Loan or Revolving Loan, whatever suits best. Whether planning a vacation, re-decorating home, paying for child's college education, or simply wish to have a standby line of credit for unforeseen expenses, Standard Chartered Bank's Personal Loans can help fulfill the dreams. Personal loan is specially designed to get the money need in time, without having to answer unnecessary questions, and without any collateral or mortgages.

13

Unique Features:

Choose the repayment plan most convenient, ranging from a compact 12-month period to a comfortable 36-month span. Free to use the money for renovating house or meeting some unexpected expenses etc. No collateral or security. Quick and easy processing.

2. CREDIT CARDS Standard Chartered Visa and MasterCard credit cards

Standard Chartered credit cards provide financial flexibility, worldwide acceptance, and roundthe-clock convenience. Benefits:

Welcomed at the largest number of merchant outlets across the world. Revolving credit facility, allowing repaying card outstanding over time, at a convenience. Cash withdrawal in local currency at Visa and MasterCard linked ATMs across the world. Platinum, Gold or Classic cards to suit lifestyle and needs.

14

 Smart credit cards with special privileges and security. Attractive rewards programs. Affinity and co branded credit cards that give additional benefits from our partners. World-class service assistance and 24-hour customer help line.

3.

PRIORITY BANKING

Experience new standards in banking. And lead a life of privilege and preferred financial solutions tailored perfectly for you - with Priority Banking from Standard Chartered. Designed specially for those who appreciate only the finest things in life, Priority Banking offers the very highest levels of personalized banking to match unique status. By embracing a holistic approach to financial well being and commitment to personal Wealth Management with a full range of innovative products and services, a customer will find banking with a reassuring and secure experience. Bank is committed to helping a plan, build and protect wealth by offering individual attention as well as international banking and investment opportunities to meet current and future needs. Standard Chartered Bank Priority Banking is created specifically for a chosen few individuals, who will settle for nothing but the best and demand the highest standards of service in all your banking relationships.

15

Unique Features: Personalized Priority card will give instant recognition of priority status at all branches of Standard Chartered Bank, worldwide. A dedicated Customer Relationship Manager trained to understand specific financial needs and help to manage assets at home and abroad. It is as personalized as can be. Preferential pricing on our various products. Entitled to exclusive benefits.

A complimentary pre-approved Gold Standard Credit Card .

Commission free VISA traveler's cheques. Special foreign exchange rates. Special invitations to exclusive events. Many account facilities, which are absolutely free of charge.

4.

INVESTMENT ADVISORY SERVICES

The Standard Chartered Investment Advisory Services is comprehensive process that assists in planning for future. With this service, they can help to review financial goals, conduct a financial health check, evaluate risk profile and customize an asset allocation plan to realize financial aspirations. 5. PERSONAL INVESTMENTS Standard Chartered is the leading independent distributor of unit trusts and mutual funds in Asia. Because they don't actually manage their own investment funds, they are absolutely objective in fund evaluation process. Bringing unmatched skill, expertise and know how to seek the best

16

Performing investments around the world, it can be assured of different investment options and a wealth of informative and relevant updates. With trained Investment Services Consultants from countries around the globe, they can help to make the right investment decisions. Using a unique risk evaluation to gauge the level of risk customer can be comfortable with, coupled with a proprietary fund evaluation process to identify funds, assess risks and shortlist top-performing funds; customer can be ensured of a personalized investment portfolio catered to needs. Standard Chartered Bank Investment services puts a whole new world of possibilities within the reach of people who would like to achieve their financial goals but have many other demands on their time. Unique Features:

A one-stop shop offering a wide range of investment options to grow your wealth.

Available across 8 cities.

Trained investment services counselors. Sophisticated research franchise. Impartial and unbiased analysis on options best suited. Tailor made investment plans suited to risk taking ability.

17

6. INSURANCE Standard Chartered recognizes the things important to customer and his family. They are dedicated to protecting the customer, his family, and his hard earned assets and even his future earnings giving him the assurance he needs. Their strategic alliance with Prudential and CGU Insurance puts us in a very strong position to provide for Life and General Insurance needs. With a comprehensive range of products, Standard Chartered is set to protect the World. 7. DEPOSITS AND RETAIL SEVICES

Deposits Standard Chartered offers a wide array of deposit products in both local and foreign currencies to help to earn competitive interest rates. Their international network offers an extra convenience while abroad. In some countries, they offer premium interest savings plans like Higher Education Fund to turn the dreams into reality. Retail Services Standard Chartered offers a comprehensive range of retail services in many countries. These include: Automated banking services. Demand drafts. Foreign exchange services. Local and foreign currency cheque. Safe deposit boxes. Telegraphic transfers. Travelers cheque.

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8.

RETAIL FX PRODUCTS

Standard Chartered is now offering valuable customers an easy and flexible way to invest in foreign currencies. They provide high flexibility to enable sophisticated investors to capitalize on opportunities in the currency markets. Some of the Retail FX products include: FX Margin Trading. Currency Trading. Premium Currency Deposit. Principle Protected Currency Deposit.

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ADDITIONAL SERVICES
1. INTERNET BANKING

Youre banking needs now taken care of at the click of a mouse. With Secure Internet Banking ID and Password, a customer can login and take care of his/her banking and credit card needs at his/her convenience and time. No more queues, no more waiting. 2. PHONE BANKING

As part of commitment to meeting all needs, Standard chartered offer Phone Banking - a service that enables you to access a wealth of financial information, 24 hours a day, 7 days a week. Through Phone Banking: Check your account balance. Get details about specific transactions. Inquire about the status of a particular cheque. Order demand drafts. Transfer funds amongst your linked accounts. Get information on deposit rates, lending rates, exchange rates and bank charges. Access information on any of our products and services. Call Room Service to open your account. Make complaints and suggestions.

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3.

MOBILE AND E-MAIL ALERTS

Standard Chartered always try and make life simple. Mobile and E-mail Alerts' service is designed just for that. 4. SMARTFILL DEBIT CARD

Smart fill Debit Card, launched in association with Bharat Petroleum, will help to save on fuel purchases and even gets you free fuel. Unique Features:

Earn reward points every time you use the card to make purchases ANYWHERE, which you can then redeem for fuel at select Bharat Petroleum outlets.

When the card is use to make purchases at select Bharat Petroleum outlets, the customer don't have to pay the 2.5% surcharge levied on most credit or debit cards.

Smart fill Debit Card is globally valid. It gives access to 12 million merchant establishments worldwide and over 55,000 in India.

A customer can access over 3500 ATMs in India for FREE* and over 750,000 ATMs worldwide through the Visa ATM network.

The card gets an exclusive discount of 5% at select In & Out stores at Bharat Petroleum outlets, besides benefits at leading retail outlets and restaurant.

5.

ATM

Standard chartered ATMs give the freedom to conduct most of the banking transactions 24 hours a day, 365 days a year. The ATM card is and absolutely free. There are no transaction charges. What's more, use ATM card at any of the 70 ATM centers across the country. 21

6.

CREDIT CARD HELP-LINE

As part of commitment to meeting all needs, Standard chartered offer the facility of calling them over the phone to access a wealth of information on credit cards, 24 hours a day, 7 days a week.

7. ELECTRONIC CLEARING SYSTEM

Standard Chartered introduces ECS (Electronic Clearing System), an innovative facility for busy people. With this facility, Card bill amount automatically gets debited from your savings bank account, so that customer doesnt have to worry about the last minute payment rush. Since this entire process happens through the Reserve Bank of India's electronic clearing mechanism, customer can enjoy the advantages of ECS. 8. FAX BANKING Its the most efficient way to stay on top of the business finance. Every day, Standard chartered fax a report of all transactions made the previous day. Customer will still receive his/her regular monthly statements.

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MAINTANING ACCOUNTS WITH STANDARD CHARTERED

DEPOSITS

Demand deposits

Time deposits

Saving account

Current account

Fixed deposits

Individual Saving account

Twin-one account

Parivaar account

DEMAND DEPOSITS 1. SAVING ACCOUNT

Standard Chartered introduces aXcessPlus - a revolutionary savings account that provides with unparalleled axcess to money. An account primarily opened for and operated by individuals, wherein the numbers of transactions are few and which give the customer liquidity, with the facility to earn some interest on the residual balances.

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With the aXcessPlus account the customer can now aXcess cash at over 1800 ATMs in India to free and at over 650,000 ATMs worldwide through the Visa network. Besides, he can use his account to shop for goods and services at over 25,000 outlets in India and at 10 million outlets worldwide, without ever having to carry cash! The aXcessPlus account provides with a globally valid debit card that provides these and a host of other exciting benefits. Unique Features: There are several unique features about the Standard Chartered Bank's aXcessPlus account, each designed to provide the most convenient banking experience can ever get! Free aXcess to cash at over 1800 ATMs in 35 cities in India Globally valid debit card The debit can be used to make purchases at over 25,000 merchant outlets in India and at over 10 million outlets worldwide. Phone banking, Internet banking, Multi-city banking, 365 days branches, extended banking hours, lockers facility and doorstep banking. Unique free insurance benefits - lost card insurance, purchase protection and personal accident cover. Exciting usage benefits such as Travel Cash Back - discounts on airfare, Rasoi - ongoing privileges in restaurants, Fab Deals - special privileges for shopping at select merchant outlets, discounts at all BPCL IN & Out stores and special rates on BPL electronic items plus a host of other discounts vouchers.

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2-IN-1 ACCOUNT

The best of both worlds: A unique account that offers you double advantage, letting you earn the High interest rate of a fixed deposit while you enjoy the flexibility of a savings & current account. PARIVAAR ACCOUNT One-stop solution for your entire family's banking needs: A unique Wealth Management Solution that offers the family flexibility and tools for wealth accumulation and preservation. 2. CURRENT ACCOUNT

An account opened and operated primarily by corporate for commercial use, wherein the numbers of transactions are much higher than a normal savings account. No interest is paid on these accounts.

Unique Features:

High Liquidity Unlimited transactions Zero Interest Any branch banking TERMS DEPOSITS

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A term deposit is a deposit held for a contracted period of time and a contracted rate of interest. The Rate of interest for term deposits is higher than that applicable for a normal savings account and Penal rates of interest is applicable if the deposit is withdrawn before the contracted period.

SALES FIGURES
Net Revenue (US $ Millions) H1 H2 Full Year 2004(IFRS) $2,725 $2,657 $5,382 2004 $2,722 $2,645 $5,367 2003 $2,340 $2,400 $4,740 2002 $2,285 $2,254 $4,539 2001 $2,164 $2,241 $4,405 2000 $1,968 $2,093 $4,061 1999 $1,908 $1,940 $3,848 1998 $1,988 $1,937 $3,925

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STANDARD CHARTERED DEPARTMENTS

DIFFERENT DEPARTMENTS

Middle market Global Banking Mutual Funds Payments Cash Management ITSM Customer service Trade Service Home Loan Personnel Loan HR Corporate Sales 29

Locker Credit cards

National Sa les Manager

Regional Sa les Manager (Market ing) Area Sales Manager

Assistant Manager

Team Leader

Sales Officer

Junior Officer Trainee

Sales Executive

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OBJECTIVE OF THE SURVEY

The following survey was mainly done with an objective to analyze employees psychology in respect to STANDARD CHARTERED BANK and opportunities they have in outer market.

SUB-OBJECTIVE OF THE SURVEY

Reasons to find why STANDARD CHARTERED employees turnover is so high. To recommend possible suggestions in order to have a control on attrition.

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SCOPE OF THE PROJECT

The following study was done to find high attrition rate in STANDARD CHARTERED BANK (NOIDA). The study helps us to know the state of mind of employees in STANDARD CHARTERED BANK that why they think for leaving the job and what can be done to reduce the increasing attrition rate.

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ATTRITION
Attrition refers to a method of achieving a reduction in personnel by not refilling positions that are vacated through resignation, reassignment, transfer, retirement or means other than layoffs. Attrition is transactional referring to its dependency on both environmental & personal variables. PRIMARY REASONS FOR EMPLOYEE TURNOVER Benefits Lack of proper peer support Lower support Lower salary package Less promotional opportunities Work environment Less job opportunities Compensations & advancement associated with job Increased strain placed on employees Do not feel valued Organization culture Emotional exhaustion Increased sense of depersonalization 33

SEVEN FUNDAMENTAL REASONS FOR EMPLOYEE DISENGAGEMENT There are seven hidden reasons: THE JOB WAS NOT WHAT THE EMPLOYEE EXPECTED This is the No. 1 reason for turnover in first six months & happens because employees have

unrealistic expectations when they are hired, have misconceptions about the worker are sometimes mislead during the interview process. Employee share the blame for not checking out the job or workplace before signing on, but employers are also guilty, they are in too big hurry to hire or eager to sign on a new recruit failing to describe the everyday job reality or give pre hire tours of the workplace. As a result new hires feel betrayed or realize that they dont fit the job. THE MISMATCH BETWEEN JOB & PERSON The main culprit is the pressure to hire in a hurry. Those who hire often Assume that because a job is at a lower level, anyone can do it, forgetting excellence can be found in all jobs & that is worth taking time to assess Who has right stuff to succeed, in every job in an organization. Another contributing issue is that managers assign & promote workers into wrong jobs, erroneously thinking that anyone can be trained to do anything or overlooking the fact that job satisfaction may be more important to an employee than getting promotion. TOO LITTLE COACHING OR FEEDBACK By a training magazine it was found that manager feedback and coaching skills were consistently rated as mediocre. This is major reason gen-xers leave in there first year of the

job. Way too managers skill practices once a year coaching at the annual performance appraisal.

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 TOO FEW ADVANCEMENT AND GROWTH OPPORTUNITY This is the number one frustration of younger top performers. When employees rated todays manager on leadership competencies the ability to develop direct report ranks near the bottom. 85% of employees say career growth is the key reward only 45% percent say there organization provide it. FEELING DEVALUED AND UNRECOGNIZED. This reason for leaving encompasses a world of sins. These include not being paid fairly not receiving a simple thank you for job well done, being treated with disrespect, being ignored, being put down, instead of valued for being different not getting the right tools and resources to do the job and having to work in an unacceptable environment. STRESS FROM OVERWORK AND WORK LIFE IMBALANCE. A family and work survey reported that 705 of all workers dont think that there is healthy balance between their work life and professional lives. A research study found that 61% of workers are willing to sacrifice pay in exchange for more personal and family time. LOSS OF TRUST AND CONFIDENCE IN SENIOR LEADERS. It was found that companies with high trust levels outperforms with company with low trust levels by 186% and less than half of the workers trust there senior leaders. Because their senior executives are self interested short term focused ego driven, and greedy. But when employees there senior leader are committed to their well being they tend to return that commitment by staying and becoming more engaged and productive.

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SOME OTHER REASONS FOR EMPLOYEE TURNOVER

There are two main reasons for employee turnover:1. Quality of selection system 2. Quality of leadership SELECTION SYSTEM QUALITY No single selection system is right for all organizations. Before making changes, Organizations must determine there current levels of sophistication and use of best Practices. There are 5 practices associated with selection systems: BEHAVIOURAL BASED INTERVIEWS Asking candidates to provide specific examples of past behaviors that illustrate their ability to demonstrate required job knowledge, skills & abilities.

TRAINING & EXPERIENCE EVALUATION Providing a checklist or other tool that measures candidates experience in specific skills or situations. ABILITY TESTS Testing candidates mental, clerical, mechanical, physical or technical capabilities.

BIOGRAPHICAL DATA Requesting information about candidates life experiences (e.g. families, hobbies, attitudes) that correlate with job performance. 36

 MOTIVATIONAL FIT INVENTORIES Measuring candidates preferences for job, the organization, and location qualities. LEADERSHIP QUALITY Two factors driving retention are:1. 2. Quality of relationship a person has with his supervisor or manager Amount of meaningful work

There are many things that an organization can do to improve these factors. Some solutions directly improve leadership skills, while others improve systems & the work environment.

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TYPES OF DATA
The Research was conducted in two stages: QUALITATIVE QUANTITATIVE QUALITATIVE RESEARCH: Here an effort was made: To understand the product & the information which helped to frame the questionnaire. QUANTITATIVE RESEARCH: A questionnaire was prepared for this purpose, keeping in mind the important factors which would enable to meet the objectives of the project. Database of employees was prepared with the help of which those employees were approached who had left the job & from them the required information was gathered. The Research details were summarized as follows: Type of research Sample size : DESCRIPTIVE RESEARCH : 50 QUOTA SAMPLING

Sampling technique : Source of Data Primary Data Secondary Data :

: QUESTIONNAIRE : INTERNET, NEWSPAPERS

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PRIMARY DATA: Primary data is that kind of data which is collected by investigator

himself for purpose of specific study. The data such collected is original form of questionnaire. SECONDARY DATA:

in character. The

advantage of this method of collection is authentic. A set of questions were put together in the

When an investigator uses the data it has been already collected by others. The secondary data could be collected from Newspapers, Journals, Reports & various publications. The advantages of secondary data can be in terms of money & time spent. The researcher of the report also did the same and collected secondary data from various internet sites like GOOGLE.COM, YAHOO. COM. The researcher of the report also visited various libraries for collection of the introduction part.

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DATA COLLECTION
Data is collected from various internet sites like GOOGLE.COM, YAHOO.COM. Data is collected with help of various employees in the organization. Sample size taken for the survey is 50.

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LIMITATIONS

Unreliable response from the organization at times due to lack of time. Unavailability of concerned person at the time of survey. Time and other factors which are beyond the human limitations, have also a bearing on the study.

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ANALYSIS OR FINDINGS
I have conducted a survey to know what are the reasons of increasing attrition rate in STANDARD CHARTERED BANK. The survey process involved two phases: The response that is generated during this exercise is converted in the form of percentages to have a comparative outlook, as the numbers itself cannot explain the true picture. These percentages are then represented through the simple tools like bar graphs, pie charts, etc. (see appendix).

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APPENDIX
PRIMARY REASON FOR LEAVING THE ORGANIZATION

Primary Reason For Leaving

Benefits Better job opportunity Commute Conflict with other employees Conflict with manager Family reasons Job expectations Not challenging Pay personal reasons Relocation/move Working condition

No. Of Employees 5 7 0 0 1 2 10 5 15 0 0 5

PIE CHART REPRESENTATION

Benefits

PRIMARY REASON FOR LEAVING

Better job opportunity Commute Conf lict w ith other employees Conf lict w ith manager Family reasons Job expectations Not challenging Pay personal reasons Relocation/move Working condition

0% 0%

10%

10%

14% 0% 0%

30% 20%

2% 4% 10%

INTERPRETATION This shows that pay is the primary reason for employee turnover .

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DURATION FROM WHICH EMPLOYEE IS THINKING OF LEAVING

Time duration One Month Or Less One To 5 Months More Than 5 Months

No. of employees 13 20 17

GRAPHICAL REPRESENTATION

TIM E FROM WHICH EM PLOYEE IS THINKING OF LEAVING No. of employees

25 No. of employees 20 15 10 5 0 one month or less 13

20 17

one to 5 months

more than 5 months

INTERPRETATION This shows that most of employees are thinking of leaving the organization from 1 to 5 months.

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SATISFACTION OF EMPLOYEES TOWARDS COMPANY

Satisfaction level Extremely Dissatisfied Very Dissatisfied Neither Satisfied Nor Dissatisfied Very Satisfied Extremely Satisfied

No. of employees 10 10 23 5 2

PIE CHART REPRESENTATION

Satisfaction level of employees

Extremely dissatisfied 10% 4% 20% Very dissatisfied Neither satisfied nor dissatisfied Very satisfied Extremely satisfied

46%

20%

INTERPRETATION This shows that employees are neither satisfied nor dissatisfied with the company.

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WORKING EXPERIENCE OF EMPLOYEES

Working Conditions Much more positive than negative More positive than negative More negative than positive Much more negative than positive

No. Of Employees
4 25 15 6

GRAPHICAL REPRESENTATION

Working Condition of Employees

30 25 20 15 10 5 0 25 15 4 Much more positive than negative More positive than negative More negative than positive 6 Much more negative than positive

No. of Employees

Working Conditions

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INTERPRETATION This shows that working condition of employees is much more positive than negative. FACTORS RESPONSIBLE FOR NEGATIVE EXPERIENCE OF EMPLOYEES

Factors For Negative Experience My Performance Evaluation And Outcome My Role, Responsibility And/Or Title Job Training My Boss My Co-Workers My Compensation Change In Compensation Package Company Savings Plan Medical Benefits And Insurance Relocation Vacation Time Other

No. Of Employees
0 2 2 1 0 6 2 0 1 1 0 0

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PIE CHART REPRESENTATION

Factors responsible for negative experience

7% 0% 0% 13% 13% 7% 0% 40% 7% 0% 13%

Factors for negative experience My performance evaluation and outcome My Role, Responsibility and/or Title Job Training My boss My co-workers My compensation Change in compensation package Company savings plan Medical benefits and insurance Relocation Vacation time Other

INTERPRETATION This shows that compensation is a major factor for negative experience of employees.

FLEXIBILITY OF COMPANY TOWARDS FAMILY RESPONSIBILITIES

Flexibility of company Very Inflexible Somewhat Inflexible Neither Somewhat Inflexible Very flexible

No. of employees 10 8 10 20 2

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GRAPHICAL REPRESENTATION

Flexibility of company
25 20 15 10 5 0 20 10 8 10 2 Very Inflexible Somewhat Inflexible Neither Somewhat Inflexible Very flexible

No. of employees

Flexibility

INTERPRETATION
This shows that company is somewhat inflexible towards family responsibilities.

CAREER ADVANCEMENT OPPORTUNITIES

Career advancement opportunities Strongly Disagree Somewhat Disagree Neither Agree or Disagree Somewhat Disagree

No. of employees 3 10 25 10

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Strongly Agree

GRAHPHICAL REPRESENTATION
Career advancement opportunities
30 25 25 20 1 5 1 0 1 0 5 0 Strongly Disagree Som ewhat Disagree Neither Agree or Disagree Som ewhat Disagree Strongly Agree 3 1 0 No. of em ployees

Advancement opportunities

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INTERPRETATION
This shows that career advancement opportunities are neither very good nor very bad.

SATISFACTION LEVEL TOWARDS POSITION AT THE COMPANY

Satisfaction level Very dissatisfied Somewhat Dissatisfied Not satisfied or Dissatisfied Somewhat satisfied Very satisfied

No. of employees 8 18 10 12 2

GRAPHICAL REPRESENTATION

Satisfaction level of employees

No. of employees

20 15 10 5 0

18 8 10

12 2

Somewhat Dissatisfied

Satisfaction level

Not satisfied or Dissatisfied

Very dissatisfied

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Somewhat satisfied

Very satisfied

INTERPRETATION
This shows that employees are somewhat dissatisfied with their position in the company.

ROLE PLAYED BY PAY IN TURNOVER

Percentage of pay 20-40% 40-60% 60-80% 80-100%

No. of employees 8 12 30 10

PIE CHART REPRESENTATION Percentage of role played by pay in turnover

17% 13% 20% 50% 20-40% 40-60% 60-80% 80-100%

INTERPRETATION This shows that pay plays 60-80% role in employees turnover.

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ROLE PLAYED BY WORKING CONDITIONS IN TURNOVER

Working conditions No. of employees Yes No

25 15

PIE CHART REPRESENTATION INTERPRETATION

Working Conditions of Em ployees

38% 62%

Yes No

This shows that working conditions of employees plays a major role in employee turnover. .

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RATE OF MORALE IN COMPANY

Rate of morale Low Very low High Very high

No. of workers 22 12 10 6

GRAPHICAL REPRESENTATION

Rate of morale in company

30 20 10 0 22 12 10 6 Very high No. of workers

No. of employee s

Low

Very low

High

Rate of morale

INTERPRETATION This shows that rate of morale is low in company.

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RETENTION PROGRAMS TAKEN BY COMPANY

Encouragement to stay Yes No

No. of workers 10 40

PIE CHART REPRESENTATION

Retentation programs taken by company

20% Yes No 80%

INTERPRETATION Nothing has been done to prevent employee turnover.

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SUGGESTIONS & RECOMMENDATIONS REDUCING TURNOVER

Turnover rate measures the percentage of employees that leave the organization in a given time period. Turnover can include resignations, terminations, retirements, transfers, and promotions. Agent turnover rate is also referred to as attrition, retention rate or agent churn. Turnover should be tracked in order to:

Control costs Raise employee morale

Cost Impacts of Turnover Turnover increases costs in a variety of ways including:

recruiting and hiring temporary staffing lower productivity of new agents overtime costs for current staff while the job is vacant unemployment insurance premiums

Supervisors confront a major challenge with turnover and cost control. This challenge includes balancing the cost of new hires.

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Employee morale Finally, turnover is a good indicator of employee morale. Although employee morale is difficult to quantify, it has consequences productivity, and overall performance. Areas to consider for reducing turnover rate . Factors that can impact turnover are as follows: 1. Recruitment, screening, and orientation programs Recruiting techniques that simply bring in 'warm bodies' will raise turnover, while targeted recruiting will result in higher retention levels. Screening processes should identify people that are a good match for the job requirements. Finally, company orientations that provide a positive introduction to the company and an understanding of company values establish a good relationship with employees. 2. Training and support of new graduates Poor training programs raise turnover when agents don't have the tools to do their job Well. 3. Quality of direct supervision Good supervision ensures improve their skills, as well as support with challenging job Tasks. If management is biased, uncommunicative, turnover will increase.

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4. Competitiveness of pay scale Wages should be competitive with other job opportunities will be lost to better-paying jobs. 5. Other employment opportunities in the area Other job opportunities with better advancement opportunities, challenges, and skill development may cause turnover. 6. Level of job satisfaction and rewards Sales regularly deal with a stressful job. Burnout levels are high and can be aggravated if there are few instances of job recognition and reward for excellent performance. Agents also can be unsatisfied with their job when they do not have the tools and work processes to do a good job for their customers. 7. Attractive advancement opportunities within the company Advancement motivate employees to stay with a company. 8. Unplanned change Poorly-managed change can lead to attrition. When should turnover be addressed? So how do you know when turnover is severe enough to warrant special focus? In addition to employee morale/productivity, there are some other factors to consider. The loss of highly skilled employees is one consideration. The attrition of first-rate employees can be an irreplaceable loss for companies. In addition, constant turnover and recruiting can create a negative impression about the company.

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Finally, turnover warrants extra focus if a clear pattern begins to appear. For example, if there has been 50% turnover in the past year due to resignations, chances are that some fundamental problems exist at the company and need to be addressed. If employees are always leaving because of negative circumstances, this is a red flag that significant problems exist within the organization and that management practices, training, and HR policies need to be revisited. How can turnover be reduced? High turnover is a major problem to identify causes of attrition. Know why turnover is happening. It is important to know the exact reasons why agents leave in order to:

identify 'controllable' reasons why agents leave (to focus attention on reducing the causes of these departures)

accurately plan ahead for recruiting, hiring, and training replacements at the same pace as you expect agents to leave

Some reasons for agent turnover are beyond the control of management. These departures will occur regardless of how attractive management makes it for agents to stay. 'Non-controllable' turnover includes:

retirements promotions transfers to other departments within the company illness

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'Controllable' turnover includes resignations due to:

job stress low pay lack of advancement possibilities lack of support and reward on the job

Action steps you can take 1. Evaluate the 8 areas identified in the section "Areas to consider for reducing turnover rate" to determine where the greatest contribution to agent turnover may be taking place. 2. Conduct exit interviews to identify why they are leaving. 3. Conduct focus groups with managers, supervisors and employees to brainstorm the root cause of employee turnover. 4. Use the results of the data from steps 1 through 3 to prioritize the root causes for employee turnover. Develop action plans to address these root causes. 5. Implement these action plans and measure the results.

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ATTRITION AREA The job was not clearly explained to them

SOLUTIONS A realistic job preview (RJP) tool has been proven to establish honest Expectations about the job. RJP can reduce Attrition between 5-15%. A biographical data assessment review previous work history to Help eliminate those candidates with poor prior work history. A mental alertness test can measure the job candidates ability to think & solve problems. A behavioural phone interview,simulation, role play,or in-person interview should help you evaluate the job candidate against this criteria. A job related personality assessment can measure job fit & job preferences.

Poor prior work history that leads to Poor future work

Do not have right cognitive ability for job Cannot manage the interpersonal requirements for job

New hire job preferences do not match required job preferences

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What are the best ways to combat turnover? Our model of turnover would suggest there are seven major areas of intervention. They are:

Early Interventions Skill Interventions Leadership Interventions Communication Interventions Reward/recognition Interventions Job Enrichment Interventions Selection Interventions

I want to touch on each area briefly and offer some practical advice and describe some tried and proven strategies. 1. Early interventions The fact that large numbers of employees turnover in the first six months of employment suggests that this is a critical time for helping people adjust to new roles. Managing employees expectations should actually start before employment. As we describe in our earlier article, realistic job previews can help ensure that employees walk into their jobs with their eyes wide open. Orientation programs should not be a one-day event; they should span the first three months of employment. A good orientation program helps prevent misunderstandings, and gradually introduces the employee into the organization. By providing just-in-time information and training, rather than a one-day "core dump" of information, your training efforts will yield much better results. After detailing the organizational chart, take time to clearly explain the importance of the 62

employees job. Most importantly, establish a support system for the new employee. A good practice is to set up a "buddy" system for new employees. A "buddy" is a seasoned employee who volunteers to "look out for the new employee", making introductions, providing advice, and helping avoid early pitfalls. 3. Skill interventions

Keep employees motivated and committed by enthusiastically offering both training and development opportunities. Smart companies know the importance of personal development in employee retention. In fact, the top-rated companies to work for have several qualities in common. They spend considerable time in training their people, they have low turnover rates, and 4. they have impressive numbers of applicants per job opening.

Leadership interventions

Better Bosses mean lower turnover. Establishing performance expectations, providing coaching and positive feedback, and interacting in a fair and considerate manner are all things that good leaders do to help new employees be successful and receive enjoyment from their jobs. To impact turnover, make sure that supervisory promotion and training programs have interpersonal skills as part of their focus. Measure employee perceptions of leadership behaviors and incorporate behavioral expectations into leaders performance management expectations. 5. Communication interventions A good case study of how focusing on communications can help improve employee retention is New York Citys Tavern on the Green. In a recent article (source: Ragan Communications), the training director for the restaurant offered numerous suggestions for opening up communications, including:

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Hold open forums. Set up monthly or at least quarterly forums in which employees can talk with decision-makers on issues important to them.

Improve Credibility. Do what you say you are going to do or offer a good reason why you can't.

Find ways to communicate. Eliminate fear of reprisal. Share important information. Treat employees as partners. Communicate numbers, [both] good and bad. Dont hoard data on successes that might make workers feel a sense of accomplishment or on problems that might encourage them to go the extra mile.

6. Rewards/recognition interventions Money can talk volumes, but the creative use of money is key to retention. Various kinds of contingent bonus strategies can be used to help with retention. Deferred bonuses are paid out incrementally with a significant back-end payoff for a combination of performance and retention. This type of bonus system can help guarantee service for a finite number of years but doesnt address long term retention. Performance bonuses can help an employee reach high levels of income providing they can consistently demonstrate superior levels of performance. This type of bonus can be very effective if performance metrics are readily available and additional costs are consistent with the value of superior performance. A third option besides the use of bonuses is to regularly make salary adjustments for your star performers or individuals with key skill sets so that they are not tempted to go elsewhere for bigger paychecks. Obviously, this strategy can only be used for a small percentage of key players. If you cant afford to pay more, or to offer contingent pay, dont forget the value of nonmonetary or symbolic rewards like time-off, awards, and other recognition programs.

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6. Job enrichment Increasing the job satisfaction of high turnover jobs can reduce turnover. For individuals who have a need for growth, the following job design strategies are associated with increased job satisfaction:

Increase the variety of tasks performed Provide greater ownership and decision-making on how the job is performed and hold the job holder accountable for quality of outputs Add more significant responsibilities Improve the accuracy and quality of feedback on performance

6. Selection Improved selection may be the most powerful weapon against turnover.. Improving interviewing procedures reduced turnover rates on average a whopping 42%. Selection is a preventive technique for reducing turnover. By improving the initial fit between an individual and a job, you can have a huge impact on turnover.

REDUCING TURNOVER: THE EFFECTS OF COMMONLY-USED METHODS

Senior Level Better compensation & benefits Stock options More careful selection in hiring Profit-sharing Retention bonus 67% 52% 47% 27% 26% Middle Managers Better compensation & 61% benefits More careful selection 54% in hiring Tuition reimbursement 41% Stock options Adoption of casual dress code 32% 31% Front Line Employees More careful selection 57% in hiring Better compensation & 50% benefits Tuition reimbursement 47% Improved training programs Better orientation programs 45% 39%

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Using the Wheel to Improve Employee Retention KEi's Employee Retention Strategy is based upon two primary beliefs: (1) It is difficult for employers to retain good employees if they don't have a process to hire the right people in the first place. (2) Retention processes must directly support the reasons that successful, satisfied employees stay. KEi's concentration on the center of the Employee Retention Wheel provides employers with Internet-based tools that give employees systematic, ongoing support to be successful in their work and satisfied with their employment.

The Center Of Employee Retention Wheel These eight central processes of the Employee Retention Wheel are the factors that are most critical to an employee's job performance success. ATTITUDE FOR EMPLOYING A process to clearly define the way supervisors are expected to interact with employees; a process to give employees a way to express what is most important to achieve job success; and a process to give employers a way to demonstrate "Employing Values" through employment policies. FINDING CANDIDATES A process that gives employers a comprehensive way to communicate to job seekers what it takes to achieve short-term and long-term job success, and to attract the candidates who fit this criteria.

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SORTING APPLICANTS A process that gives employers a way to confirm whether the attitudes and behaviors of job seekers are a match for their work environment. CHOOSING EMPLOYEES A process that gives employers a way to define the specific interview questions that prove job seeker abilities to successfully perform the target skills; and a process that gives employers a way to verify the accuracy of resume/application data and interview responses. STARTING EMPLOYEES A process that provides a way for new employees (before performing the job) to understand "why the employers business exists;" "what makes the business organization successful;" "why the employee's job exists;" and "what it will take for the employee to achieve job success." INFORMING EMPLOYEES A process that gives employers a way to provide essential information (from five critical information sources) that is needed by employees to make daily work decisions. IMPROVING EMPLOYEES A process that gives supervisors and employees a way to work together to build personalized plans for improving each employee's priority job skills; and a process that gives the employer a way to "deliver skills-improving training curriculum" and to "measure the learning effectiveness" from the training experiences.

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REWARDING EMPLOYEES A process that gives employers a way to define and communicate exactly how individual employee salaries are determined; and a process that gives employers a way to provide employees with extra incentive income that is earned through the achievement of cash generating business goals.

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CONCLUSION
The present report indicates that the following features:1. Better job opportunities in outer market & pay are the main reasons for increasing attrition rate. 2. The employees do not feel valued by their employer. 3. The working environment in the company also make them to leave 4. Performance Appraisals are not given at regular intervals so that the Employee feel motivated for its work. 5. The work schedule is very much inflexible & Stressful. If some possible measures are done to overcome these problems then Attrition rate can be decreased to a large extent. their job.

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BIBLIOGRAPHY

Search engines

www.google.com www.yahoo.com www.rediff.com

Websites www.standardchartered.com www.surveyz.com

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QUESTIONNAIRE (To Find the Various Reasons for Increasing Attrition Rate in Standard Chartered Bank)

NAME JOB TITLE

::-

ORGANISATION :CELL NO. :-

1.

What Is Your Primary Reason For Leaving The Company? Benefits Better Job Opportunity Commute Conflict with Other Employees Conflict with Manager Family Reasons Job Expectation Not Challenging Pay Personal Reasons Reallocation/Move Working Condition 2.. How Long Have You Been Thinking About Leaving The Company? One Month Or Less One To 5 Months More Than 5 Months 72

3.

How Satisfied Are You With The Company You Work For? Extremely Dissatisfied Very Dissatisfied Neither Satisfied nor Dissatisfied Very Satisfied Extremely Satisfied

4.

How Was Your Working Experience? Much More Positive than Negative More Positive than Negative More Negative than Positive Much More Negative than Positive

5.

If Your Experiences Are More Negative Than Positive, What Factors Are Responsible? Select All That Apply. My Performance Evaluation and the Outcome My Role, Responsibility and/Or Title Job Training My Boss My Co-Workers My Compensation Change in Compensation Package Company Savings Plan Medical Benefits and Insurance Relocation Vacation Time Other

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6.

How Flexible Is The Company With Respect To Your Family Responsibilities? Very Inflexible Somewhat Inflexible Neither Somewhat Flexible Very Flexible

7.

Do You Have A Clear Path For Career Advancement? Strongly Disagree Somewhat Disagree Neither Agree or Disagree Somewhat Agree Strongly Agree

8.

How Satisfied Are You With Your Position At This Company? Very Satisfied Somewhat Dissatisfied Not Satisfied nor Dissatisfied Somewhat Satisfied Very Satisfied

9.

What Part Of Pay Play In Your Decision To Leave The Organization? 20-40% 40-60% 60-80% 80-100%

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10.

Does Working Conditions Affect You To Leave Your Job? Yes No

11.

How Would You Rate The Morale In Your Company? Low Very Low High Very High

12.

Could This Company Have Done Anything To Encourage You To Stay?

Yes

No

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