1.

Introduction

In the recent decades the Indian industry has changed its outlook. The employment scene has changed its
appearance. The factors like skill sets, job satisfaction drive the employment and not just the money. The
employer hence faces the heat of continuous employee turnover. Continuous efforts are made by
organizations to control the employee turnover rate as it directly affects the performance of the organisation
as many key people leave the organisations for various reasons at crucial points. This turnover is normally
known as ATTRITION.

Defining attrition:
A reduction in the number of employees through retirement, resignation or death. Attrition is also called
total turnover or wastage rate.

Defining Attrition rate:

The rate of shrinkage in size or number.

Attrition is the function of demand and supply. The industry has continuous demand of experienced
employees and globalization has created the need of fresh talent for incorporating new ideas. The demand
comes from the growth of the industry and the impolicy of the company. These two things decide whether
there is a demand of fresher or experienced employees.

On the other hand, the supply comes from the educational institutions and the market. The supply from the
educational institutions is enough to meet the demands of the various industries but there is a lack of
experienced people in the industry, which I turn has created an imbalance.

1.1 Impact of attrition

Direct impact: A high attrition indicates the failure on the company’s ability to set effective HR priorities.
Clients and business get affected and the company’s internal strengths and weaknesses get highlighted.
New hires need to be constantly added, further costs in training them, getting them aligned to the company
culture, etc. all a challenge.
Indirect impact: Problem for the company in attracting potential employees. Typically, high attrition also
leads to a chronic or systemic cycle—attrition brings decreased productivity, people leave causing others
to work harder and this contributes to more attrition. All this has a significant impact on the company’s
strength in managing their business in a competitive environment.

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1.2 Kinds of Attrition

 Voluntary attrition- Voluntary attrition takes place when the employee leave the organization by their
own will. Pull factors like higher emoluments elsewhere, better opportunities of growth and promotion etc.
are responsible for this kind of attrition.
 Involuntary attrition- Involuntary attrition takes place when the employees leave the organizations
due to some negative forces or push factors like faulty promotion policy, biased performance appraisal etc.
 Compulsory attrition- It takes place due to the rules and regulations of the government and that of the
organization as well. It includes attrition taking place due to attaining the age of retirement, completion of
tenure etc.
 Natural attrition- It takes place due to the causes and factors that are beyond the control of the
individual and organization as well. These factors may include end of life, insanity etc.

2. Industry Profile

The Fast-moving consumer goods (FMCG) sector is the 4th largest sector of the Indian economy. It is
characterised by high turnover consumer packaged goods, i.e. goods that are produced, distributed,
marketed and consumed within a short span of time. FMCG products that dominate the market today are
detergents, toiletries, tooth cleaning products, cosmetics, etc. The FMCG sector in India also includes
pharmaceuticals, consumer electronics, soft drinks packaged food products and chocolates. Since the sector
encompasses a diverse range of products, different companies dominate the market in various sub-sectors.
However, some of the top FMCG companies in India are- Dabur (60%), Colgate (54.7%), Hindustan
Unilever (54%).

2.1 Demographic Support

An FMCG industry overview indicated that India’s demographic profile plays a major role in the growth of
this sector. Not only is India’s demographic young, but this segment is also characterised by increased
urbanisation and higher expenditure. Urban development initiatives by the government, as well as the
increasing middle class of India, has led to an increase in the number of attractive markets in the country.
Ernst & Young’s research on the cities of India highlights the emergence of 30 ‘new wave’ cities such as
Jaipur and Surat. Consumption in these cities is growing at a faster rate than that of many of India’s metros.
India’s young population is also characterised by a high degree of technological awareness. Growing
penetration of smart phones and better internet connectivity in India has led to a burgeoning E-Commerce
sector, which has, in turn, helped formalise large sections of the unorganised retail sector. The E-Commerce
segment is projected to contribute 11% of overall Indian FMCG companies’ sales in 2030. The online
FMCG market is projected to reach $ 45 bn in 2020. This has been a major catalyst in the development of
the FMCG sector in rural India.

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2.2 FMCG Market in India

The FMCG sector is one of the largest sectors of the Indian economy. According to an FMCG industry
overview, revenues of the FMCG sector reached $ 52.75 bn in FY18, and are estimated to reach $ 103.7 bn
in 2020. As consumption in India grows at an unprecedented rate, the FMCG industry remains a key sector
for investors. Acknowledging these trends in the FMCG industry profile, the Government of India has
undertaken various initiatives to promote the sector. For instance, 100% FDI is permitted in SBRT and
cash-and-carry models of retail, and the minimum capitalisation for foreign FMCG companies to invest in
India is $ 100 million. Even the implementation of GST in India has had far-reaching consequences for the
sector, as the highest selling FMCG products such as soap, toothpaste and hair oil now come under the 18%
tax bracket (as opposed to the previous 24%)

3. Company Profile

In the backdrop of excessive and harmful usage of pesticides began the story of Sresta. In 1992, when
founder Raj Seelam was working in an agricultural products company he observed the alarming use and
spread of chemical usage on farms, and the deep impact it had on rural indebtedness. Investment in
pesticides and synthetic fertilizers meant farmers had to borrow money, which in turn was affecting the very
sustainability of the farmer’s life and standard of living. This sowed the seeds for us at Sresta. With a group
of inspired colleagues, we set out on a lifelong journey of passion and commitment. We named our products
24 Mantra. Delving into the ancient Upanishads of India and sourcing from the Rig Veda, we drew upon
the primary elements of nature.

Tvam Bhumir Apo Analo Anilo Nabha – You alone are Earth, Water, Fire, Air & Ether is the blend of all
basic elements that compose wholesome food. And what better way to wholesome food than organic food.
Sresta took small steps starting 2004. With the focus on creating means of sustainability for the farmers, we
set about addressing two key areas- farmers and the products. For the farmers our efforts addressed issues of
creating communities for farmers who are committed to the cause of organic farming, ensuring continuing
means of livelihood and building mutually beneficial relationships with the farmers. For products, we
adopted a unique farm to fork approach to ensure farmers produce 100% Organic products and the same
was brought to our customers.

It has been a challenging journey from 2004 to now… Today 45,000 farmers cultivate 2,25,000 acres
across 15 States. And our goal is to expand this circle of sustainability by reaching 500,000 acres under
Organic farming by 2020.

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3.1 Products

Sresta has invested considerably in product development capabilities. As a result new products are
launched almost every quarter with focus on health, nutrition and great taste.
Sresta have a strong R&D team focused on food products and also work with many Research Institutions
and experienced food consultants to create new and unique products. Over the last two years it has been
successful in launching over 200 products ranging from different flours, to differently milled rice,
processed products like Chutneys, Ready to Eat (RTE) & Ready to Cook (RTC) products, Condiments
(Jams, Pickles, Masalas), Nutrition Bars, Ayurvedic Cookies, health drinks etc.
Sresta is working with more than 25,000 farmers on 1,50,000 acres of land following Farm to form
Approach to maintain the Organic Integrity.

4. Review of Literature

Saleem and Affandi (2014) investigated the impact which Human Resources practices have on the
employee attrition. Fairness of rewards and growth opportunities were considered to be the key factors
influencing the employees‟ decision to leave an organization.

Vinit (2013) highlighted that factors like appraisal, openness, training, and flexibility act as key influencers
for employee turnover. Thus these are the parameters on which an employee thinks before deciding to
leave an organization.

Zahra (2013) have highlighted the significance of commercialization of education which leads to faculty
turnover. As the number of Universities are increasing there is a paradigm shift which is increasing the staff
turnover because of abundant opportunities.

Kim and Stoner (2008) emphasized that employees intend to leave because of factors related to individual
(e.g. demographic factors or personality), job (e.g. nature, content or design of job) or organization (e.g.
pay, supervisor or co-worker). Social support and job autonomy might have a direct negative impact on the
employee turnover intention.

Udechukwu and Mujtaba (2007) gave a mathematical model that explained employee turnover by focusing
on internal (employer) and external (social affiliate) determinants which influence an employee’s decision
to leave an organization.

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5. Methodology

Research methodology is a way to systematically solve the research problem. It is understood as a science
of studying how systematically a research is done scientifically. In it we study steps that are generally
adopted by the researcher in studying the research problem along with the logic behind them.

5.1 Research Problem:

Managing attrition does not mean reducing attrition only. It could also mean bringing down the negative
effects of attrition. To do this the organizations should put up appropriate retention and capacity
utilization or talent utilization tactics. There are various retention strategies used by the organizations
today. The aim of the present report is to study factors like salary, superior – subordinate relationship,
growth opportunities, facilities, policies and procedures, recognition, appreciation, suggestions, co-
workers by which it helps to know the Attrition level in the organizations and factors relating to retain
them. This study also helps to find out where the organizations are lagging in retaining.

5.2 Objectives of the study:

Following are the objectives of study:

 To evaluate and analyze the factors that influences the employee attrition.

 To understand the underlying factors that retains the employee in 24 Mantra.

 To analyze the steps taken to reduce attrition in 24 Mantra.

5.3 Need for the study:

Attrition rate is increasing day by day, which is affecting the most. Why an Employee leaves a
company is the question asked by most of the employers. Companies even hire Private HR professionals
to study the company's work and find out why an employee is dissatisfied.

Employee attrition costs a lot to the company. There are various costs which are borne by the company at
the start when the employee is under training period. Costs such as –

1). Conveyance Cost.

2). Cost of lodging of the new employee.
3). Trainers cost.
4). Cost of venue where training will be conducted.
5). Materials to be supplied during training process.

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 A company has a training period of 3 to 6 months. During this time an employee is not fruitful
for the company. If an employee leaves the company when he starts working, company suffers a big
loss in terms of money as well as workforce. Every company takes measures to hold the talented
workforce by means of perks, Increments, Bonus and extra facilities. No one wants to lose good brains
to their competitors.

Attrition rate cannot become completely obsolete but it can surely be minimized.

5.4 Hypothesis:

Null Hypothesis H0: There is no significant relationship between evaluating the factors that influences
the employee attrition and to analyze the steps taken to reduce attrition.

Alternate Hypothesis H1: There is significant relationship between evaluating the factors that influences
the employee attrition and to analyze the steps taken to reduce attrition.

5.5 Scope of the study:

The scope of the study is confined to the data collected from the ex-employees worked in 5 states i.e
Telangana, Andhra Pradesh, Madhya Pradesh, Karnataka, Maharashtra using questionnaire. Therefore the
scope of the study is limited to the geographical location of the sample size.

5.6 Sources of Data:

Normally two types of data are used for the purpose of carrying out research.

a. Primary data
b. Secondary data

a. Primary data

Primary data is one, which is collected from fresh sources and for the first time while conducting the
research.
For this project, primary survey will be undertaken through a survey instrument consisting of
structured questionnaire filled by employees by the way of personal interviewing

b. Secondary data
Secondary data is that data which has been collected for some other purpose. There are two types of
sources for collecting secondary data:

i. Internal sources
ii.External sources

i.Internal sources of secondary data includes the data generated within the organisation
E.g. Employee Engagement Survey Result
ii.External sources of secondary data are the sources outside the organization
E.g. Annual Publications, Books, Magazines and Internet etc.

For this project, secondary data will be collected through journals, articles, magazines, research
papers.

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5.7 Sample Size and Profile of the Sample:

 Sampling unit for this study are the ex-employees of 24 Mantra.

 The sample size is 100

5.8 Tools for Analysis:

 Descriptive statistics
 Correlation analysis

5.9 Limitations Of The Study:

 Since the project is of qualitative nature there was the participant’s bias in some cases.
 Some information cannot be accessed due to its confidential nature.
 The findings of the study are solely based on the information provided by the respondent’s
findings of the research may change due to area, demography, age condition of economy
etc.
 There will be time constraint and sample size constraint.

6. Bibliography and References:

 International Journal of Management (IJM)

Volume 8, Issue 1, January-February 2017, pp.196-201,Article ID:IJM_08_01_ 023
 International Journal of Marketing and Human Resource Management (IJMHRM)
Volume 7, Issue 1, January-April (2016), pp. 01-14, Article ID:IJMHRM_07_01_001
 www.ijarcsms.com
 http://www.scribd.com/Attrition/d/21430807

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