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CHAPTER 1
1.1 Introduction 7
1.2 Industry Profile 21
1.3 Company Profile 22
1.4 Objectives of the study 31
1.5 Need for the study 32
1.6 Scope of the study 33
1.7 Limitation of study 34
CHAPTER 2
2.1 Review of literature 35
CHAPTER 3
3.1 Research methodology 37
CHAPTER 4
ANALYSIS AND INTERPRETATION
4.1 Percentage analysis 42
4.2 Chi-square analysis 74
4.3 Weighted average analysis 78
CHAPTER 5
5.1 Findings 81
5.2 Suggestion 84
5.3 Conclusion 86
CHAPTER6
6.1 Annexure -Questionnaire A1
6.2 Bibliography A2
LIST OF TABLES
Page no
Table no TABLE NAME
NO
4.1.1 Table showing the Gender Classification 42
Table showing the Age Group
4.1.2 44
Table showing the Educational level of the respondent
4.1.3 46
4.1.7 Table showing the major reasons for quitting the organization 54
4.1.10 Table showing ranking the factors for non acceptable factors 60
4.1.7 Table showing the major reasons for quitting the organization 55
4.1.10 Table showing ranking the factors for non acceptable factors 61
DEFINITION:
In the best of worlds, employees would love their jobs, like their co-workers, work hard
for their employers, get paid well for their work, have ample chances for advancement,
and flexible schedules so they could attend to personal or family needs when necessary.
But then there's the real world. And in the real world, employees, do leave, either because
they want more money, hate the working conditions, hate their co-workers, want a change,
or because their spouse gets a dream job in another state. So, what does that entire
turnover cost? And what employees are likely to have the highest turnover? Who is likely
to stay the longest?
7
organizational issues such as training time and investment, costly candidate search etc., are
involved. Hence, failing to retain a key employee is a costly proposition for any
organization.
THEORITICAL REVIEW
Attrition is one of the biggest issues which the growing ITES industry in India is facing.
The effects of attrition are wide varying and impacts the firms in terms of losses (due to
training and administration cost, high recruitment cost), incompetent processes, inability to
offer services for highly technical process
Attrition though a nuisance also has some associated benefits along with such as low cost
of operation, knowledge sharing amongst the firms benefiting the overall industry in
increasing its competencies. Attrition usually occurs on two fronts - people leaving the
industry and people shifting jobs inside the industry. Both of them have separate causes
which have been identified in this paper.
8
Attrition in IT/ITES
The Indian business process outsourcing industry, roughly around 4-5 years old, is
growing at a phenomenal pace. The number of IT/ITES companies in Indian cities has
mushroomed from a handful a few years ago to about 500 in 2004. The size of the
IndianIT/ITES market is likely to be around $9-12 billion by 2006 and will employ around
400,000 people (ICRA, Indian IT/ITES industry report). For a fresh college graduate, a
call centre job pays about 2.5 times as much as other job openings. And the boom shows
all signs of continuing considering that the cost per transaction in India is estimated to be
the lowest at 29 cents compared to 52 cents in China.
Even after displaying impressive statistics about the growth and future, the IT/ITES
industry in India is bleeding with heavy attrition. According to several recruitment firms in
the country, attrition in the ITES (IT enabled services)-BPO industry is close to 35-40 %.
The worse news is that, this is only the reported figures and the actual figures are much
higher and can be as high as 80% annually. Nasscom in a report said the outsourcing
industry was expected to face a shortage of 262,000 professionals by 2012. This
impediment is likely to affect the industry severely in the long run by creating a man
power shortage as well as bringing up the cost arbitrage on which the Indian industry is
playing at the moment.
Attrition cannot be blindly classified with a negative connotation. A healthy attrition rate
in any industry is necessary for new ideas and innovation to flow in as well as to facilitate
the overall growth of the industry in terms of knowledge sharing. But after a particular
level the same boon becomes a bane.
9
Cost Factor
Recruiters explain that the high attrition rates significantly increase the investments that
are made on the employees. The problem of losing funds in employee acquisition is more
prominent in the high-end IT/ITES segment. Companies invest a lot of time and money in
training a candidate for the first four months. But these investments do not always get
converted into actual profits. In case of the IT/ITES industry, each agent level recruitment
roughly costs the company Rs. 5000/-. This is the amount which a company needs to pay
the job recruitment agency. Other than the direct cost, an associated cost of training and
administrative service is also involved. Each agent works is non-productive or partly
productive in the organization for nearly the first 2-3 months. Hence an employee leaving
the organization within the first 6 months is a bad investment for the company. Also, as
stated earlier the cost of attrition in the industry is 1.5 times the annual salary.
However, there is another perspective for attrition which is specific to the IT/ITES
industry in India. India at the moment is working on low end Business Processes which do
not require quite a lot of amount of high skills. The reason for India's success has been
primarily the low cost, high quality labor which India provides. Compared to other
competitors such as Philippines, South Africa, Ireland; India is the only country where we
have a balance between the cost involved and the quality provided till now. For Indian
companies to remain successful in future they would have to keep the cost low. Since the
tasks performed by an agent are pretty standard and does not require added skills, there is
no benefit in retaining a highly experienced employee. At the floor level operation, a non-
experienced candidate could work with the same efficiency of a 2-3 year experienced
employee after minimal training. Hence the industry players consider the present attrition
as a positive attrition which is serving the industry by keeping the cost low
10
Attrition Survey in Indian Industry
The Indian IT industry has grown from US$ 0.8 billion in 1994-95 to US$ 20.1 billion in
2005-06. The figure below illustrates the growth of the Indian IT sector. Software and
services exports are expected to account for more than 50 per cent of the sector turnover in
2005-2006.
• Despite a slowing global economy, Indian Software exports grew by 35 percent in 2007-
08, while overall exports fell down by 2 per cent.
• India currently exports software to around 95 countries around the globe and more than
250 Fortune 500 companies have outsourced some part of their software requirements
from India. North America and Europe accounted for 86% of Indian exports in 2006-2007.
• The growth of India as a software hub has also been facilitated by the initiatives taken by
the Union and State Governments. Many State Governments have set up Hi-Tech Parks
and implemented e-governance projects.
• Many global software majors have set-up operations in India. They include Microsoft,
Oracle, and Adobe among others.
• The government has also announced incentives for adhering to Quality Standards such as
ISO 9000, SEI CMM by providing import duty concessions. Similarly, Exim bank
subsidizes the cost of acquiring the quality standard by around 50%.
• The growth of the sector has also been enhanced by a flourishing venture capital (VC)
industry. The VC industry was estimated to be worth around US$ 408 million in 2000 and
is expected to grow to US$ 10 billion by 2010. This shows a CAGR of around 50 per
cent.Today, India exports software and services to nearly 95 countries around the world.
11
The share of North America (U.S. & Canada) in India’s software exports is about 61%.In
1999-2000, more than a third of Fortune 500 companies outsourced their software
requirements to India.
NASSCOM – Attrition
In spite of its problems, India is quietly becoming an international software giant. The
government appears to have provided the right combination of incentives along with a
relatively low hassle support (a radical change for this government, I'm told.) What has
evolved is something like a coordinated, rational strategy for industrial policy. The
preferred strategy does not seem to be "off-shore" development (i.e., lots of cheaper body
shops) but the establishment of many highly capable software product organizations that
can develop and support complex systems. A concern for quality and desire to make
effective use of state of the art technologies was evident. It seems the lessons of software
engineering have been well studied. The pig head ness and ignorance that plagues many
software development organizations here (see Ed Yourdon's The Decline and Fall of the
American Programmer) may have been avoided. I sensed a kind of "We Try Harder" at
work -- the better to offset (western) concerns about quality. There is a very conscious
effort to adopt best practices and a strong work ethic.
Software & Services will contribute over 7.5 % of the overall GDP growth of India
IT Exports will account for 35% of the total exports from India
IT industry will attract Foreign Direct Investment (FDI) of U.S. $ 4-5 billion
13
Attrition Rates
The attrition rates in different sectors for the year ended 2008 are shown in the following
table: -
Sector Attrition Rate
FMCG 17
Manufacturing 20
Capital Goods 23
Construction 25
Non Voice IT/ITES 25
IT - ITES 27
Telecom 30
Pharmaceuticals 32
Bio Technology 35
Services 40
Financial 44
Aviation 46
Retail 50
Voice – Based IT/ITES 50
Above given are the different rates of attrition in various sectors. While the attrition rate is
highest in Voice Based IT/ITES’S and Retail industry where the pressure and stress are
high, the attrition rate is low in FMCG and Manufacturing industries where the risk is low
and they can earn a constant income.
14
ATTRITION RATES AROUND THE WORLD
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.
15
Indirect impact: Difficulty in the company retaining remaining employees and to what
extent? 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.
The process of Employee retention will benefit an organization in the following ways:
The Cost of Turnover: The cost of employee turnover adds hundreds of thousands of
money to a company's expenses. While it is difficult to fully calculate the cost of turnover
(including hiring costs, training costs and productivity loss industry experts often quote
25% of the average employee salary as a conservative estimate.
Loss of Company Knowledge: When an employee leaves, he takes with him valuable
knowledge about the company, customers, current projects and past history (sometimes to
competitors). Often much time and money has been spent on the employee in expectation
of a future return. When the employee leaves, the investment is not realized.
Turnover leads to more turnovers: When an employee terminates, the effect is felt
throughout the organization. Co-workers are often required to pick up the slack. The
unspoken negativity often intensifies for the remaining staff.
Goodwill of the company: The goodwill of a company is maintained when the attrition
16
rates are low. Higher retention rates motivate potential employees to join the organization.
Regaining efficiency: If an employee resigns, then good amount of time is lost in hiring a
new employee and then training him/her and this goes to the loss of the company directly
which many a times goes unnoticed. And even after this you cannot assure us of the same
efficiency from the new employee
Employees do not leave an organization without any significant reason. There are certain
circumstances that lead to their leaving the organization. The most common reasons can
be:
17
Job is not what the employee expected to be: Sometimes the job responsibilities
don’t come out to be same as expected by the candidates. Unexpected job
responsibilities lead to job dissatisfaction.
Employees leave an organization for more pay: Money may be the motivating
factor for some but for many people it is not the most important factor. Money
matters more to the low-income-employees for whom it’s a survival issue. Money
can make an employee stay in an organization but not for long. The factors more
important than money are job satisfaction, job responsibilities, and individual’s
skill development. The employers should understand this and work out some other
ways to make employees feel satisfied.
Employee retention would require a lot of efforts, energy, and resources but the
results are worth it.
Benefits of Attrition 19
If all employees stay in the same organization for a very long time, most of them
will be at the top of their pay scale which will result in excessive manpower costs.
20
1.2 INDUSTRY PROFILE:
Software & Services will contribute over 7.5 % of the overall GDP growth of India
IT Exports will account for 35% of the total exports from India
Potential for 2.2 million jobs in IT by 2009
IT industry will attract Foreign Direct Investment (FDI) of U.S. $ 4-5 billion
Market capitalization of IT shares will be around U.S. $ 225 billion
21
Introduction:
Innovates was founded on the principles of creating leadership and excellence in the
industry; with value and wealth for the stakeholders that comprise of our investor, clients
and employees. The promoters have extensive experience in the Information Technology
industry and have done excellent pioneering work in the technology and successfully
spearheaded different business strategies. Having participated, the IT industry’s growth in
India in the last 25 years, the management team brings rich domestic and international
experience to the table at Innovates.
This focus has already paid rich dividends in the last 3 years of our existence. The
success and growth is underlined by negligible attrition, sustained business growth and
establishment of operations in India. We have been profitable since our inception and
have grown organically to a team of over 3000 professionals. We pride ourselves with
being able to retain motivated talent pool in an industry which is known for rapid attrition.
The graphic below illustrates our development and delivery methodology. The
Innovates Methodology is a hybrid model based on the Waterfall and iterative model of
development. The Rapid prototyping phase allows us to design and develop a prototype
before starting any full scale development. The concept of rapid Prototyping helps reduce
effort spillage and also allows change incorporation and management at early stages of the
project.
Management Consulting
23
o Customer Relationship Management
o Finance & Performance Management
o Human Performance
o Supply Chain Management
Information Technology Consulting
o Enterprise Solutions
o Information Management Services
o Infrastructure Consulting Services
o IT Strategy & Transformation
o Research & Development
o Service Oriented Architecture
Outsourcing
o Application Outsourcing
o Business Process Outsourcing
o Infrastructure Outsourcing
Innovates is one of the fast growing consulting firm & Information Technology
development firm in the world and is one of the largest computer services and software
companies
Solution services:
Since our inception, we have developed numerous commercial products for clients in a
wide range of industries, with a strong vertical focus on publishing,
pharmaceuticals/biotechnology, material sciences, and financial services.
Our software engineers, project leaders, and managers, have a proven track record of
24
implementing state-of-the-art development methodologies and managing the delivery of
best-of-class products on time and within budget. With our cutting-edge, global project
execution strategy, Innovates can handle projects of any size or any level of complexity
and deliver top-quality solutions at very competitive rates. We invite you to explore our
service offerings, technical capabilities, and industry experience and learn more about how
GGA can serve your company's specific needs. Innovates offers specialized services for
every aspect of SAP. Our main areas of emphasis are SEM, financials, SCM, business
intelligence and Net Weaver.
o Custom ERP software application development
o Upgrading existing ERP systems
o Web enabling ERP solutions/ERP integration to ecommerce
o Providing constant support and maintenance to the ERP solution developed.
Innovates set out to develop software tools that help people do what they need to get the
job done. Innovates believes in creating tools that work the way people do. Not the other
way around. This philosophy is incorporated into every software product created and
client served.
The core of our solutions services are the same industry-best delivery processes and
methodologies that support our professional services offerings. We can quickly assemble a
project team from among the best technical talent in the world for almost any type and
scale of project.
Solutions, however, provide an additional level of value to our clients because we provide
these exceptional production resources plus exceptional project management and required
tools to complete the entire project. Innovates can perform a turnkey implementation - a
solution - that meets your cost, technical, and time objectives.
25
Innovates Engagement Models
This model provides the low risk assurance of both a guaranteed fixed price and delivery
date. This approach can be employed when the scope and specifications of the project are
reasonably clear.
Deliverables, costs and timelines are precisely documented in order to support the strong
project management methodology required to meet delivery terms. A phased approach that
includes scoping, development, implementation and business support is followed.
Additionally, by combining the fixed price/fixed time model with our "right-site" globally
distributed implementation capabilities, we can offer customers a tremendous cost
advantage while providing low-risk and effective control of the implementation process.
In this business model, Innovates forms project teams with the required resources and
project managers. The teams are provided equipment and infrastructure based on project
requirements. Customers pay periodic charges based on the applied resources.
This model offers the ability to adjust team size and composition at any point if variations
in the project plan occur. Because of the immediate control this approach affords, most of
our services that are delivered on-site, at the client's location, use this business model.
Time and materials engagements most often include the largest opportunity for interfacing
and collaboration between Innovates and client resources. Innovates resources are
selected based on reviews of both technical skills and interpersonal qualities. They are
motivated, highly-competent consultants who work seamlessly with client teams to
achieve project objectives while making a positive contribution to the Work environment.
26
C. Modularized Hybrid
Within a Time and Materials engagement, Innovates can perform individual phases of a
project on a fixed time / fixed price basis. The remaining phases and tasks outside the
scope of the fixed bid would remain under the T&M arrangement. In such hybrid
engagements, the client has precision and flexibility in mixing cost, risk, and control with
respect to each stage or task of an implementation.
E. BOT model
Build: Setup the facility and infrastructure, staff the development center, and establish
knowledge transfer. Operate: Manage the offshore organization including program
management, development, QA, maintenance, enhancements, and product support.
Considering some clients' specific needs, Innovates also offers the option of converting an
ODC (Offshore Development Center) model into a BOT model after a mutually agreed
(usually 2 years or greater) duration without any additional transfer fees
Strategies
Innovates long-standing commitment to high standards of corporate governance and ethical
business practices is a fundamental shared value of its Board of Directors, management and
employees. The Company's philosophy of corporate governance stems from its belief that timely
disclosures, transparent accounting policies, and a strong and independent Board go a long way in
preserving shareholders trust while maximizing long-term shareholder value.
Good corporate governance flows out of the commitment of the Management and the Board of
Directors. When the commitment is backed by the fundamental beliefs of maximizing value
for stakeholders; transparent actions in the business; values of a corporate; and mutual trust
amongst all constituents of the business, the organization
28 transforms itself into a higher plane of
leadership. The forward-looking approach of Innovates has always helped it, in achieving the
desired results. This approach has transformed the company's culture to one that is relentlessly
focused on the speedy translation of scientific discoveries into innovative products. Innovates
commitment towards Corporate Governance started well before law mandated such practices. The
company has identified and established its core purpose, mission and core values for achieving
corporate excellence.
Safety and Health
At Innovates, the safety, health and physical well being of people represent an important
driver of its sustainability. It guarantees an environment in which our intellectual capital is
adequately protected at all times, serving as an inducement for others to join.
This sets into motion a virtuous cycle of insight retention, driving sustainability in the
process. This safety aspect has been captured in the incidence and frequency rates
comprising a part of the Safety, Health and Environment report. As a forward-looking
organization, we are also encouraging the reporting of near misses with a view to
eliminate the root causes of accidents, representing the base of our safety pyramid. They
have also implemented an internal guideline for contractor safety, a training manual for
contract workers covering job safety, tool inspection and other initiatives.
As an additional initiative, all our manufacturing locations are adequately equipped with
occupational health centers. Medical checks are carried out regularly and workplace
monitoring is a routine activity, to ensure that exposure limits are not exceeded.
CMD
VCMD
WD DCPD
SGMM
SGMHRS DW EDM DMF EDF
CS
30
1.4 OBJECTIVES OF THE STUDY
PRIMARY OBJECTIVE:
To spread the training costs over the years of employee’s stay in the organization
To helps the HR department of the organization to concentrate on other important
things like training, apart from recruitment.
32
1.6 SCOPE OF THE STUDY
Recent employee’s surveys suggest that most common factor which caused employee
attrition during last couple of years has been a disliking for “Immediate Supervisor”. This
trend is strikingly different from previous trends, where monetary compensation and
challenging work was considered to be the main attrition factor. Before we blindly accept
the results of these surveys, we need to ask some questions.
The survey was limited to the organization; hence the result obtained from the
The method used for data collection is by using questionnaire and the main draw back of
this method is the chance of biases is high.
34
CHAPTER- 2
Employees today are different. They are not the ones who don’t have good
opportunities in hand. As soon as they feel dissatisfied with the current employer or the
job, they switch over to the next job. It is the responsibility of the employer to retain their
best employees.
“Any attrition in any form is bad for an organization. It means that a wrong choice
was made at the beginning" says NR Ganti Chairman and MD, SQL Star International.
Studies from the Gallup organization show that employees who have an above-
average attitude toward their work will generate 38 percent higher customer satisfaction
scores, 22 percent higher productivity, and 27 percent higher profits for their companies.
High attrition implies that certain necessary skills are vulnerable or are not present
due to employees being lost" says Vikram Bhardwaj, Managing Director, and Redileon
A survey from NAUKRI says Employees do not leave an organization without any
significant reason. There are certain circumstances that lead to their leaving the
organization. The most common reasons can be:
Job is not what the employee expected to be
Job and person mismatch
No growth opportunities
Lack of appreciation
Lack of trust and support in coworkers, seniors and management
Stress from overwork and work life imbalance
Compensation
New job offer
Findings:
Any attrition in any form is bad for an organization.
Employee Retention is the key to organization success.
Employees leave the company mostly for the above reasons.
Employee leaving the organization will result in huge cost.
Satisfied employees make more profit to the company.
It is the responsibility of the employer to retain their best employees.
“Employees are the real assets to any organization”.
36
CHAPTER-3
3.1 RESEARCH METHODOLOGY
RESEARCH:
Research is an academic activity and as such the term should be used in a technical
sense. According to Clifford Woody “research comprises defining and redefining the problem,
deduction and reaching conclusion, and at last carefully testing the conclusion to determine
scholars have defined the term research as a scientific and systematic search for pertinent
actually a voyage of discovery. Thus research is an original contribution to the existing stock
of knowledge making for its advancement. It is pursuit of truth with the help of study,
hypotheses; collection, organizing and evaluating the data; making the conclusions; and
testing the conclusions to determine whether they fit the formulated hypotheses. The primary
procedures.
RESEARCH DESIGN: 37
data in a manner that aims to combine relevance to the research purpose with economy in
procedure. Research design is the conceptual structure with in which research is conducted.
The design which is used in this study is descriptive research design. Descriptive
research includes survey and fact finding enquiries of different kinds. The major purpose of is
The design in such study must be rigid and must focus attention on the following
Formulating the objectives of the study,
SAMPLING DESIGN:
SAMPLING METHOD:
The date collected from the respondents through the convenience sampling, which
SAMPLE SIZE: 38
The sample size for this study is taken as 150 for the interview and issue questionnaires.
The work does not end by framing the design. It is necessary to acquire the various
details. The collected information is aimed at getting a truthful & clear result. The results can
be further analyzed selection of best possible method for collecting data becomes very vital
Data is basically collected in two methods. They are classified in two years.
Primary data
Secondary data
PRIMARY DATA
SECONDARY DATA:
These are data which were already collected & available for other purposes then
OBSERVATION METHOD
INTERVIEW METHOD
THROUGH QUESTIONNAIRES
THROUGH SCHEDULES
Questionnaire, Observation. This method of data collection is quite popular. In this method a
set or a series of questions in logical order is asked to the respondents and the researcher
collects the desired information. The questions may be asked verbally or in writing and the
responses may be either form and it is mainly constructed for the purpose of mailing.
Questionnaires need to be carefully developed, tested and debugged before they are
administered on a large scale. The research instrument used there is the questionnaire
type.
STATISTICAL TOOLS:
The methods followed for the analysis and interpretation of data are:
Percentage
Chi square
Weighted average
Percentage Method:
Percentage refers to a special kind of ratio. It is used to make comparison between two or
more series of data. They can be used to compare the relative items, the distribution of two
or more series of data, since the percentages reduces every thing to a common base and
there by allow meaningful comparisons to be made.
1. Percentage = No of respondents x 100
Total respondent
Chi square test:
40 establishes the independence between variables. It is
Chi square test is a non-parameter test that
measured by comparing the observed with those of expected frequencies based on the
hypothesis. It is given by
(i) Chi – square = (Oi – Ei) ²
Ei
Oi = OBSERVED PREQUENCY
Ei = EXPECTED FREQUENCY
Expected frequencies for any cell can be calculated using the formula
(ii) E = RT x CT
N
Where,
E =Expected frequency
RT =the row total for the row containing cell
CT =the column total for the column containing cell
N =the total number of operation.
(ii) Degree of freedom (d.o.f) = (Row - 1) * (column - 1)
Weighted average:
X1W1+X2W2+X3W3…
W1+W2+W3….
41
CHAPTER-4
FEMALE 32 32%
Inference:
The above table shows that 68% of the respondents are Male whereas 32% of the
respondents are Female.
42
Chart 4.1.1
Chart Showing Gender Distribution of the Respondents
Table 4.1.2 43
Table showing the age distribution of respondents
PARTICULARS RESPONDENTS PERCENTAGE OF
THE RESPONDENTS
18-25 45 45%
25-35 22 22%
35-50 22 22%
ABOVE 50 11 11%
Inference:
The above table shows that 45% are in the age of 18-25 and 22% each are in the age of 25-
35 and 35-50 while 11% above 50 years
44
Chart 4.1.2
Chart showing age distribution of the respondents
45
Table 4.1.3
Table showing educational level of the respondents
PARTICULARS RESPONDENTS PERCENTAGE
HSC 18 18%
DEGREE 36 36%
PG 36 36%
OTHERS 10 10%
TOTAL 22 100
Inference:
From the above those who studied forms are 18% while those who did their degree forms
36%, pg forms 36% and others forms 10%
Chart 4.1.3 46
Chart showing the educational level of the respondents
47
Table 4.1.4
Table showing the occupational status of the respondents
PARTICULARS RESPONDENTS PERCENTAGE
STUDENT 23 23%
BUSINESS 23 23%
PROFESSIONAL 27 27%
OTHERS 27 27%
Inference:
The above table shows that 23% each of the respondents are either students or doing
business 27%professionals and remaining 27% forms others.
48
Chart 4.1.4
Chart showing the occupational status of the respondents
RESPONDENTS
27% 23%
STUDENT
23% BUSINESS
27% PROFESSIONAL
OTHERS
Table 4.1.5 49
INFERENCE
The above table portrays that 19% of the respondents earn less than 1 lakh while 36% earn
between 1-5 lakh, 31% earn between 5-10 lakh and rest above 10 lakh.
50
Chart 4.1.5
Chart showing annual income level of the respondents
51
Table 4.1.6
Table showing what is attrition?
TERMINATIONS 27 27%
OTHERS 18 18%
Inference:
The above table shows that 19% each of the respondents says that attrition means it is
resignation or others while 27% say it is terminations and 36% say it means employee
leaving.
Chart 4.1.6 52
Chart indicating what is attrition?
Table 4.1.7 53
Table Showing the Major Reasons for Quitting the Organization
PARTICULARS RESPONDENTS PERCENTAGE OF
RESPONDENTS
No growth opportunity 23 23%
Inference
The above table shows that 23% each of the respondents say that there is no growth
opportunity, 23% of the employees said compensation system with the current
organization is reason for quitting, 27% said there are no good relations with managers,
and 27% said personal reasons.
Chart 4.1.7
54Organization
Chart Showing the Major Reasons for Quitting the
Table 4.1.8 55
Table showing-what could have been done to avoid attrition from a company
PARTICULARS RESPONDENTS PERCENTAGE OF
RESPONDENTS
Fair compensation 23 23%
Recognition 18 18%
Inference
From the above table 23% thinks of providing fair compensation can 32% of challenging
job while 27% of work style and 18% of recognition.
56
Chart 4.1.8
Chart showing - what could have been done to avoid attrition from a company
Table 4.1.9 57
Table showing the internal transfer process acts as one of the factor
PARTICULARS RESPONDENTS PERCENTAGE OF
RESPONDENTS
YES 64 64%
NO 36 36%
Inference
From the above table, 64% said internal transfer process act as one of the factor of attrition
while 36% say no.
58
Chart 4.1.9
Chart showing the internal transfer process acts as one of the factor
59
Table 4.1.10
Table showing the factors for non acceptance of offer letter
PARTICULARS RESPONDENTS PERCENTAGE OF
RESPONDENTS
Accepted offer from another employer 23 23%
Inference
From the above table, 23% each say they accepted offer letter from others or due to
personal factors and 27% say that they are not willing to commute long or not willing to
relocate.
Chart 4.1.10 60
Chart showing the factors for non acceptance of offer letter
Table 4.1.11 61
Table showing the industry with more attrition
PARTICULARS RESPONDENTS PERCENTAGE OF
RESPONDENTS
IT/ITES 64 64%
FMCG 9 9%
Manufacturing 13 13%
Others 14 14%
Inference
From the above table, Attrition in IT/ITES industries is the most says 64% of the
respondents while 13% each said that attrition is in manufacturing and others industries
while attrition in FMCG is least.
Chart 4.1.11 62
Chart showing the industry with more attrition
Table 4.1.12 63
Table showing the relieving procedures provide room for attrition
PERCENTAGE OF
PARTICULARS RESPONDENTS RESPONDENTS
YES 68 68%
NO 32 32%
Inference:
From the above table, 68% said the relieving procedures provide room for attrition and the
rest 32% say No
Chart 4.1.12 64
Chart showing the relieving procedures provide room for attrition
65
Table 4.1.13 table showing the worst situations which lead to attrition
No transparency 22 22%
Inference:
From the above table, Problems with sub ordinates is the main trouble which leads to
employee walking out of the company says 32% of the respondents while 28% thinks of
groupism and politics, 18% of heavy workload and rest due to no transparency.
66
Chart 4.1.13
Chart showing the worst situations which lead to attrition
Table 4.1.14 67
Table showing the satisfaction with the existing retention practices
PARTICULARS RESPONDENTS PERCENTAGE OF
RESPONDENTS
YES 52 52%
NO 48 48%
Inference:
From the above table, 52% of the employees are satisfied with the existing retention
practices in the organization and the rest 48% are not satisfied.
Chart 4.1.14 68
Chart showing the satisfaction with the existing retention practices
69
Table 4.1.15
Table showing the feedback towards the higher level organization is heard
PARTICULARS RESPONDENTS PERCENTAGE OF
RESPONDENTS
Action taken 42 42%
Inference:
From the above table, Almost 42% of the respondents say their feedback is heard while
36% thinks it is just a formality and 22% say it is never heard.
Table 4.1.15 70
Table showing the feedback towards the higher level organization is heard
71
Table 4.1.16
Table showing - achieving organization goal
PARTICULARS RESPONDENTS PERCENTAGEOF
RESPONDENTS
YES 82 82%
NO 18 18%
Inference:
From the above table, 82% of the employees said that the organization is achieving its goal
and their goals in same hand, 18% of the employees snub this.
72
Chart 4.1.16
Chart showing - achieving organization goal
4.1 CHI SQUARE ANALYSIS
73
Chi square between the age of respondents and factors for non acceptance of offer letter
H0 (Null hypothesis) = There is no dependency between the age of respondents and
factors for non acceptance of offer letter
FORMULA:
CHI SQUARE = ∑ [(O-E) 2 / E]
O – Observed frequency
E – Expected frequency
(O – E) = Difference between observed frequency and expected frequency.
(O – E) =Square of the difference
OBSERVED FREQUENCY:
Total 45 22 22 11 100
74
CALCULATION:
Interpretation:
Hence there is significant difference between the age of respondents and
factors for non acceptance of offer letter
OBSERVED FREQUENCY:
Challenging job 6 18 9 3 36
Work style 8 8 5 10 31
Recognition 2 1 7 4 14
Total 23 32 27 18 100
FORMULA: 76
CHI SQUARE = ∑ [(O-E) 2 / E]
O – Observed frequency
E – Expected frequency
(O – E) = Difference between observed frequency and expected frequency.
(O – E) =Square of the difference
CALCULATION:
O E O-E (O-E)2 (O-E) 2/ E
7 5 2 4 0.8
5 4 1 1 0.25
6 7 -1 1 0.14
1 3 -2 4 1.33
6 8 -2 4 0.5
18 16 2 4 0.25
9 8 1 1 0.12
3 4 -1 1 0.25
8 4 4 16 4
8 10 -2 4 0.4
5 7 -2 4 0.57
10 10 0 0 0
2 6 -4 16 2.66
1 2 -1 1 0.5
7 5 2 4 0.8
4 1 3 9 9
77
Degree of freedom = (R-1) (C-1)
= (4-1) (4-1)
= 9
Calculated value = 21.59
H0 is rejected
Interpretation: Hence there is significant difference between the income of the
respondents and avoidance of attrition.
Accepted offer from Not able / Not willing to Personal Aggregate Weighted
another employer willing to commute long Factors Average
relocate distances
23 27 23 27 254 2.54
SCALE REPRESENTATION:-
Accepted offer from another employer - 1
Not able / willing to relocate - 2
Not willing to commute long distances - 3
Personal Factors - 4
78
═ (23*1) (27*2) (23*3) (27*4)
═ 23+54+69+108
---------------------
100
═ 254
100
═ 2.54
INTERPRETATION:-
From the above table it is clear that weighted average is 2.54 the value of the weighted
average is in between 2-3.Hence, most of the respondents are not able/willing to relocate.
28 22 18 32 254 2.54
79
SCALE REPRESENTATION:-
Groupism and politics -1
No transparency -2
Heavy workload -3
Problem with sub ordinates -4
═ 28*1+22*2+18*3+32*4
═ 28+44+54+128
---------------------
100
═ 254
100
═ 2.54
INTERPRETATION:-
From the above table it is clear that weighted average is 2.54 the value of the weighted
average is in between 2-3. Hence, most of the respondents said there is no transparency.
80
CHAPTER - 5
5.1 FINDINGS:
The table (4.1.1) indicates that 68% of the respondents are Male whereas 32% of
the respondents are Female.
The table (4.1.2) indicates that 45% are in the age of 18-25 and 22% each are in
the age of 25-35 and 35-50 while 11% above 50 years
The table (4.1.3) indicates that 18% while those who did their degree forms 36%,
pg forms 36% and others forms 10%
The table (4.1.4) indicates that 23% each of the respondents are either students or
doing business 27%professionals and remaining 27% forms others.
The table (4.1.5) indicates that 19% of the respondents earn less than 1 lakh while
36% earn between 1-5 lakh, 31% earn between 5-10 lakh and rest above 10 lakh.
The table (4.1.6) indicates that 19% each of the respondents says that attrition
means it is resignation or others while 27% say it is terminations and 36% say it
means employee leaving.
The table (4.1.7) indicates that 23% each of the respondents say that there is no
growth opportunity, 23% of the employees said compensation system with the
current organization is reason for quitting, 27% said there are no good relations
with managers, and 27% said personal reasons.
The table (4.1.8) indicates that 23% thinks of providing fair compensation can 32%
of challenging job while 27% of work style and 18% of recognition.
The table (4.1.9) indicates that 64%81said internal transfer process act as one of the
factor of attrition while 36% say no.
The table (4.1.10) indicates that 23% each say they accepted offer letter from
others or due to personal factors and 27% say that they are not willing to commute
long or not willing to relocate.
The table (4.1.11) indicates that Attrition in IT/ITES industries is the most says
64% of the respondents while 13% each said that attrition is in manufacturing and
others industries while attrition in FMCG is least.
The table (4.1.12) indicates that 68% said the relieving procedures provide room
for attrition and the rest 32% say No
The table (4.1.13) indicates that Problems with sub ordinates is the main trouble
which leads to employee walking out of the company says 32% of the respondents
while 28% thinks of groupism and politics, 18% of heavy workload and rest due to
no transparency.
The table (4.1.14) indicates that 52% of the employees are satisfied with the
existing retention practices in the organization and the rest 48% are not satisfied.
The tables (4.1.15) Almost 42% of the respondents say their feedback is heard
while 36% thinks it is just a formality and 22% say it is never heard.
The table (4.1.16) 82% of the employees said that the organization is achieving its
goal and their goals in same hand, 18% of the employees snub this.
From the table (4.3.1) it is clear that weighted average is 2.54 the value of the
weighted average is in between 2-3. Hence, most of the respondents said there is
no transparency.
83
5.2 SUGGESTIONS AND RECOMMENDATIONS
1. Pay/ Salary structure should be reviewed and appropriate action should be taken.
Possible actions include:
Offer fair and competitive salaries on the basis of current market surveys;
Tailoring benefits to individual requirements and preference;
Ensuring that employees understand the link between performance and reward;
Reviewing performance-related pay schemes to ensure that they operate fairly.
2. Career opportunities for employees in the concern, needs to be revised in an effective
and satisfactory way for the employees.
It can plan to provide career opportunities by:
Implement a career ladder and make sure employees know what they must do to
earn a promotion;
Conduct regular performance reviews to identify employees' strengths and
weaknesses, and help them improve in areas that will lead to job advancement. A
clear professional development plan gives employees an incentive to stick around.
Encouraging promotion from within;
Providing advice and guidance on career paths.
Conduct employee satisfaction surveys periodically.
3. Recognize outstanding achievements of employees promptly and publicly, but also take
time to comment on the many small contributions that staff makes every day to the
organization's mission.
4. The concern can provide Mediclaim for employees and their family members, as many
employees said it as a factor for leaving IT 84
and ITES industries and taking up the new
assignment in another company.
5. The long term of agreement in IT industries can to be reduced to a certain period. The
company has to take more steps in being lenient to the candidates on agreement issues.
6. The company can make travel arrangements for employees, as most of the employees
feel distance matters.
7. Annual increment for the employees can be made still more attractive to make
employees satisfied.
9. Companies can look into various options like good rewards, bonding programme,
flexible working hours and stronger career path.
10. Management also needs to consider other aspects like secure career, benefits, perks
and communication.
11. Making work a fun place, having education and ongoing learning for the workforce
and treating applicants and an employee in the same way as one treats customers.
12. Companies need to go in for a diverse workforce, which does not only mean race,
gender diversity, but also include age, experience and perspectives.
5.3 CONCLUSION
85
The study has concentrated on finding the reasons for Attrition and developing
Employee Retention strategy in the concern, the study has been conducted using the Exit
Interview information given by the employees and through the questionnaires. The
Company seems to be moving it right lines in many factors, however a few drawbacks
were found and remedies are suggested.
Since Attrition is a serious issue, if the management takes my suggestion through my
project report so that it will make the company to give proper care to the drawbacks found
and take corrective actions to make employees retain in the organization. This will certainly
increase the job satisfaction level of employees, in future it helps management to increase the
employee morale, will also reduces the overall costs by reducing replacement costs, it helps
the HR department of the organization to concentrate on other important things like
training, apart from recruitment and this will make them more profitable.
Employees are the life blood of the organization; therefore proper feedback should be
made from the employees such that it would ultimately help in the development of the
organization.
This study has concluded that the employee attrition has some more alterations and also
some motivational or recreational activities can be induced to the employees in order to
retain the employees which would reduce the burden of the recruitment process, with this
the company can save training cost, recruitment cost by retaining the employees with the
organization for the maximum period of time or until the completion of the project.
6.1 ANNEXURE
86
19. What other kind of offers did the employer grant to stop you from quitting?
a) Increase in pay b) Promotion c) Transfer d) Extra benefits e) none
6.2 BIBLIOGRAPHY
www.google.com
www.citehr.com
www.managementparadise.com
www.coolavenues.com
www.financialexpress.com
economictimes.indiatimes.com
A2