Identify the factors associated with Employee Attrition and bring retention as a Strategy for Increasing Organizational Competitiveness

CHAPTER 1 1.1. INTRODUCTION The purpose of the research is to identify the factors associated with employee attrition and suggesting the strategies for employee retention for organizational competitiveness. The study is at Mani India Technologies Pvt. Ltd and it especially applicable or similar to the Small and medium scale IT Companies located in two or three tier cities. To find out this the researcher has approached IT professionals, who are working with the company and collected the data in a questionnaire. Three categories of employees have been identified. 1. Satisfied employees Retention 2. Indifferent employees Neutral 3. Dissatisfied - Attrition To find out the factors associated with the employee retention, the researcher has classified number of employees comes under the above three categories in to three other categories; Viz.
1. Salary perks and Monitory benefits are important factors for their attrition. 2. Physical and Behavioral working environment are the main aspects of their

attrition.
3. Career plan along with the organization and Current jobs value addition on

their competencies is important factors to leave the organization. A questionnaire survey has been conducted and classified the respondents in to respective categories. Chi square tests (test for independence) has been

conducted to find out the relationship between satisfaction, dissatisfaction and Indifference to the perception of benefits of the employees.

The Factors Affecting the Employee Attrition 1. Intra organizational Factors. Factors which affect the job satisfaction of the employee inside the organization for example; strained superior subordinate relationship.
2. Personal reasons; these reasons are specific to each employee such as family

responsibilities, personal preference for location of job etc. 3. Extra organizational factors When an employee compares his/her position with that of same position in another company, this may lead to an inequity in the mind of employees, this will result in employee attrition, for e.g. An employee comparing his salary, position, work environment, and benefits with that of same position in another company may lead to preference for the other company. The study concentrates only on extra organizational (3rd reason) reason which is conventionally perceived to be uncontrollable. The researcher has formulated three new strategies to control this perceptional gap. The strategies are based on Adams Equity theory. Retention A Big Challenge Fundamental changes are taking place in the work force and the workplace that promise to radically alter the way companies relate to their employees. Hiring and retaining good employees have become the chief concerns of nearly every company in every industry. Companies that understand what their employees want

and need in the workplace and make a strategic decision to proactively fulfill those needs will become the dominant players in their respective markets. The fierce competition for qualified workers results from a number of workplace trends, including:

A robust economy Shift in how people view their careers Changes in the unspoken "contract" between employer and employee Corporate cocooning A new generation of workers Changes in social mores Life balance

Concurrent with these trends, the emerging work force is developing very different attitudes about their role the workplace. Today's employees place a high priority on the following:

Family orientation Quality of life issues Autonomy Social status of the job

To hold onto your people, you have to work counter to prevailing trends causing the job churning. Smart employers make it a strategic initiative to understand what their people want and need -- then give it to them.

1.2 INDUSTRY PROFILE IT Industry Problems Faced by SMEs Small and Medium Enterprises (SMEs) are often confronted with problems that is uncommon to the larger companies and multi-national corporations. problems include the following: Lack of IT Support IT personnel are in high demand and are often attracted to bigger companies and MNCs. It is very difficult for SMEs to attract good IT personnel. It is even more difficult to retain them. Moreover, good IT personnel are expensive and may not be affordable by most SMEs. Lack of IT Literacy Many of the employees in SMEs started from the ground up after working with the company for many years. Some of them are often holding supervisory and managerial positions. These employees may not be IT literate and often have high resistance to the changes in the working process that they are comfortable with after many years. Lack of Formal Procedure and Discipline Most SMEs do not have formal procedure or often these are not documented. Furthermore, there is tendency for these procedures to change frequently. This makes it difficult for third party and newcomer to understand the existing business practices and match them with the IT process. These

Uneven IT Awareness and Management Skill As company grows, new managers are often introduced into the company. There will also be old managers who are promoted from the rank and file. Some of these managers may not been trained in the leadership and management skill. These uneven skill among the managers often caused conflicts during the implementation. Lack of Financial Resources As a SME/SMI, financial resources are often limited. This often force company to select a solution, which appear to be cheap initially. However, the hidden costs will start to emerge during implementation. This sometime causes the project to be abandoned or sometime sent the company into further financial crisis. Lack of Human Resources Implementations of some bigger scale IT project especially those that involve business process across different departments or require large amount of initial data entries require human resource during the implementation. Some SMEs are often in the stage of frequent fire fighting and shortage of manpower. This makes it very difficult for them to allocate time to carry out implementation. Furthermore, there is always a conflict between getting the daily routing work going and to do the Extra IT implementation. Lack of Experience of Using Consultants A good consultant often save time and effort, and help to prevent pitfalls during the IT projects. However, most SMEs are lacked of experience in working with consultants. The lack of knowledge in the field of IT makes them difficult in

identifying good consultant for the projects. They often feel that the consultant costs are too high and they can handle it with their own staff. If the company has no staff that are experience and knowledgeable in the IT project, avoiding external help often costs more to the company eventually.

Control Employee Attrition A New Challenge Submitted on September 3, 2010 by hema Nowadays, organizations are facing major challenges in terms of employee retention. Todays generation does not believe in doing things over and over again. They look for growth and development at every stage of their career. This is the reason for increasing employee attrition. Now, the question is how can we stop employees from leaving the company? Its their wish if they do not want to continue working with the organization. However, theres lot a manager can do to control attrition. Before recruiting people it is essential for human resource department to ensure that the skill set of the people match with the available profile. If an employee is highly qualified and the profile is not challenging enough for his he will feel the need to look for a change. Thus, ensuring that the skill set is properly matched to the profiles is very important. Its the job of human resources to ensure that the competitive salaries are paid to the employees. If the salaries are lower than the salaries offered by the competitive organizations then theres a huge possibility of employee attrition.

Its also very important that the goals of all the employees are well defined. They should know what is expected out of them. In case the employees are not on the right track , the management should guide him at regular intervals and provide adequate advancement opportunities. Its also very important to hold employees satisfactions surveys time to time. This is necessary as the management will come to know beforehand of any concerns and can address them timely which will result in preventing employees from leaving the organization. Remember, employees are not always concerned with the compensation part only. They also look for flexibility in the job. Many organizations nowadays provide employees with flexible working hours, work from home facility, and education at work. Employees also take into account these factors apart from the compensation part Last but not the least, show your employees that you value them and they are irreplaceable. Never forget to recognize them if they have achieved something. Also, its very important to keep your employees motivated at all times if you want to retain them

1.5 OBJECTIVE OF THE STUDY:

To identify the factors that most significantly influence employees attrition at Mani India Technology

To suggest some retention practices to retain the employees in increasing the organization competitiveness

1.6 SCOPE OF THE STUDY:

Through this study the researcher is trying to probe the applicability of three factors which is associating with the employee attrition and probe the relevance of addressing retention as HR strategies in context to retain employees in small and medium IT company.

This will help the SMEs to retain the talent pool.

CHAPTER 2 Literature Survey Article-1: Mid-tier IT cos battle attrition: Published on: TNN, Oct 27, 2010, 04.04pm IST Source: http://timesofindia.indiatimes.com/tech/careers/job-trends/mid/tier-IT-cosbattle-attrition/articleshow/6821557.cms BANGALORE: Scrambling to regain double-digit growth rates and compete better with larger rivals, mid-tier software firms such as Mind Tree, Sasken and HPowned MphasiS are now facing an uphill task in attracting and retaining staff, threatening to disrupt ongoing projects. For mid-tier software exporters aspiring to join the billion-dollar club, the attrition rates are already in high double digits, as bigger rivals apart from multinational firms including Accenture and Cap Gemini woo their staff with higher salaries. In many ways, the outsourcing recovery is making it tougher for smaller firms to retain staff. "Post the recession, suddenly a lot of elbow room was created and employees started getting out of the caged feeling," said Elango R, HR head at MphasiS. At a time when customers are beginning to send more IT and back-office projects offshore to save costs, the war for talent is becoming intense and smaller IT firms are finding themselves on a defensive. Until few months ago, these firms were busy offering salary hikes and other incentives to software engineers in order to

retain them as demand improved. However, some of them are now battling attrition as high as 40% among their project managers. Unlike large firms such as TCS, Infosys and Wipro, which keep hundreds of employees on bench in anticipation of potential business, maintaining bench for mid-tier firms is a forbidden luxury. For companies such as Sasken, the client deliverables too get impacted because of attrition. For instance, if a team of five are working on a project and two walk out, both the client and the company are staring at major road blocks. "Customers start getting worried about whether they can be serviced when the attrition is high and this results in revenue decline as opportunities are lost," said S Ramesh, VP HR of Sasken. Experts say high attrition is worrying for customers too. "Mid-tier companies also do not have a strong succession planning in place because of which when people move out, the order gets hit," Sameer Krayi, consultant at Stanton Chase International added. "The impact is felt at the operational level. There are problems also with the knowledge transfer process. Especially in times like these when the demand is more, it affects more," said Rohit Kumar Anand, senior research analyst, Pinc Research. Another challenge is that since they focus on specialized skills, they are unable to hire freshers from colleges. This makes retention of skilled staff even more critical because a lot is riding on them. "The company faces the challenge of retaining employees", Ramesh added. Elango of MphasiS said that it is important to concentrate on the high performers instead of everybody in the company. "

It is these high performers who influence the majority and would prevent an exodus," he said. MphasiS employs around 38,000 people and with new business deals being struck, the firm will have to plan for attrition. Companies like Mind Tree have seen an attrition of 21.9% this quarter, which is one of the main perils for the company aspiring to become a billion-dollar firm in a few years. Article-2: Attrition demands introspection: Published on: TNN, Dec 24, 2010, 09.57pm IST Source: http://timesofindia.indiatimes.com/articleshow/7158819.cms How has Q3 been and how do you expect 2011 to pan out? I had said in the beginning of Q3 that this would be amongst the biggest quarters predominantly because the winds are changing from headwinds to tailwinds and at this juncture all I can say is that I was right. You will see that in the Forrester Gartner report, it has been reported that the number of deals which happened in October, November and December would be amongst the highest for a long-long time. You must have an indication of 2011 client budgets now. Are you seeing spending at the level of how it was at the beginning of 2008? Let's just look at what exactly is happening across the world. In the US, there is a significant upswing in investment based on hope. People, based on macroeconomic indicators which have started looking well - especially on manufacturing side have started assuming that the recession is behind us and therefore the investment in transformation, investment in new products and services have dramatically increased because they believe that the only way to capture market share post recession would be by getting ready for the post-recession scenario.

Therefore, we are seeing a lot of transformation kind of IT budget upswing within the US, which is backed by very sharp return and investment analysis on each business model. Europe, because of the debt crisis or debt fear, is under fear and, therefore, there are significant cost-cutting initiatives happening in Europe, which had happened in the US in 2008. Especially in Continental Europe, you are seeing some fairly large deals coming with cost-cutting initiatives. Asia is happening on the base of a party. A lot of Asian companies want to globalise, they believe they have a competitive advantage compared to European and American companies in America and Europe. Therefore, they wish to globalise and a significant upswing in IT investment is happening in Asia on that count. Never before have so many tailwinds been felt with the IT industry and, therefore, if you have the right solution, the right approach to the market space, it is a good time for you to be able to grow. So I am quite bullish in the medium term and the long term and the short term also for the IT industry. Right propositions, right services, right management teams, right people attitude, and you would win. Do you believe pricing will show improvement? Has it shown improvement in Q3 or would it show improvement in 2011 if at all? One thing which the recession has taught us is a new normal in pricing. We have to learn to live with it. Customers have discovered that they can get away with lower prices because the margins of most IT companies across the world have largely remained intact. Therefore, I would call this a new normal in pricing. With the competitiveness as it is - at its best in intensity - you cannot expect the pricing to

go back to old days because it had inbuilt significant amount even if you see from the vendor side which was being passed onto the customer. So we have to get used to this new normal pricing and figure out ways of cutting costs further so that we can maintain or increase margins. That would be my view on this rather than wishing and waiting for a price increase which I do not think is going to come. Would this be for the foreseeable future as well? Are you saying that hereon for the next 12 months at least, if not more, it will be a volume driven game and pricing would remain stable at the constant levels? There are two elements of pricing. One is a COLA increase which is adjustment for inflation. I do not call that a pricing increase. One is absolute recognition of what you are delivering as a service should be higher priced than what you are delivering. I do not see that happening. Unless we change our business model into an output-based business model or transformation services, the realization per person will not go up. It is not going to go up based on similar products and services we are supplying to customers which we supplied at a particular price for the last 2 years and suddenly say sorry customer, we were wrong and that price needs to be increased. It is not going to increase. Yes, there will be some customers who will give you a COLA increase for inflationary purposes, but that is not a pricing increase. Are you witnessing increased discretionary spend now? What is your outlook for enterprise application services segment which benefits from discretionary spend and is a big revenue contributor for HCL? I do not want to give a specific guidance because it is a very interesting space where 50% of our revenue comes from discretionary spend which is enterprise

applications and engineering services and 50% comes from 'run the business'. Irrespective of whether people want to do cost out because of which 'run the business' will increase or they want to increase discretionary spend because the 'change the business will increase', HCL will win either way. There is an upswing in discretionary spend largely driven from the strategy of hope which we are seeing around the US. You handed out higher than industry average wage hikes this year to stem attrition. Do you think attrition will taper in the coming months and what metrics are you really using to tackle the problem? The issue of employment, employability, motivation and ability for us to use the resources at our command to deliver the value our customers are seeking are going to be No. 1 challenge in the next 5 years. Our current business model of taking freshers from colleges, training them on Dot Net and Java and deploying them on projects is going to have to change to be able to drive transformation at customer project-end. Therefore, to be able to retain, motivate and enthuse, empower, encourage our employees is going to be the centre of the strategy which all of us are going to execute in the coming years. Current attrition is an indication of 2 or 3 facts. No. 1, our employees are not happy with what they are doing. So they want to do something better. They are not happy with the way they are treated within the company and the way they are structured which is not getting the best out of them. They are also indicating that they get better options outside which is richer job content at more compensation. So it is definitely a matter of limited labour pool, but it is also a matter of introspection for us at HCL and us as an industry to try and think about innovative ways of how we can engage our employees in a more holistic fashion so that we

can get the best out of them and they feel good about being part of the IT industry and part of our company. Going ahead in 2011, keeping in mind the client budgets, keeping in mind the pricing scenario that you mentioned, would you believe that you are more upbeat at the start of 2011 than you were at the start of 2010? Of course, that is quite obvious. All tailwinds are behind us, there are a few headwinds. There is US protectionists' attitude, increasing tax within India, some concerns around Europe, but there are more tailwinds than headwinds which is very different to what it was in 2010.Do you think that the hike in visa fees will also not spoil the party, right? We in India have to think about how we are going to deal with trade agreements, especially if different countries try and increase their trade barriers and we continue buying from them. We will have to have a debate within our country as to what are the implications of trade barriers being increased in other countries and how is India going to respond to that. That needs to be debated within our country more than what we are doing right now. Article-3: IT giants hire, small cos suffer: Published on: TNN, Dec 16, 2010, 05.30pm IST Source: http://timesofindia.indiatimes.com/tech/careers/job-trends/IT-giants-hiresmall-cos-suffer/articleshow/7112104.cms BANGALORE: As attrition rates in the IT sector rises, the worst hit are the midsized and smaller companies as a consequence of the massive recruitment drive undertaken by their larger rivals. Over the last two-three quarters there has been a sudden spurt in movement of employees from smaller companies to larger sized ones.

Industry estimates that the attrition levels in smaller IT companies average around 25-30 %, levels that are a nightmare for them. In the case of large technology firms, though there has been a sequential growth in attrition rates, they are at manageable levels of around 14-17 %. With global IT spends gathering pace, the biggest beneficiaries have been the large IT companiesTCS, Infosys, Wipro , HCL, Cognizant and MNCs like IBM . Owing to their large resources and technical expertise they have been able to corner most of the big contracts over the last three quarters. Large companies are able to attract employees from smaller rivals through better pay packages and other incentives. "Larger companies are offering employees about 10-12 % hike and also promising better career prospects," said E Balaji, CEO of Ma Foi Management Consultants. Most of the recruitment is happening at the middle level. IT companies generally recruit freshers during the campus recruitment cycle, and they typically have a stable top management team that does not switch organizations regularly. "A bulk of the hiring happening now is for people with 4-8 years of experience. Due to the recession, the bench strength of most companies shrank and therefore they are now ramping up," said Sudhakar Balakrishnan, CEO of HR solutions company Adecco India. Article-4: Focus on employee engagement: Published on: Friday, Sep 10, 2010 Source: http://www.hindu.com/2010/09/10/stories/2010091053711500.htm KOCHI: Experts at a discussion on emerging trends in employee engagement organized by Ma Foi Randstad, human resources consultancy firm, here on Wednesday pointed out that organizations had to move from employee satisfaction

to employee engagement, combining employee-centricity with organizationcentricity for higher employee retention and commitment. Emphasizing that HR function has to become a service provider, where the service is offered to internal customers, the experts said that bringing together the best people and technology would help organizations serve their clients better, thus creating more profitable customer relationships. It was important for organizations to invest in training and development, which was critical for both engaging and retaining employees and the success of the organization, they said. The speakers also shared their experience on how implementation of special measures to maintain healthy employee engagement programmes had led to higher customer engagement and satisfaction. The panel included George Sleeba, Joint Managing Director, V-Guard Industries Ltd; Surekha Zachariah, Director-HR, Sutherland Global Services; M. S. Sreekumar, General Manager, HRD, Binani Zinc and president, National HRD Network, Kochi; and Jolly Antony, Deputy General Manager, HR, Federal Bank Ltd. E. Balaji, president and director, Ma Foi Randstad, moderated the event. The discussions were based on the findings of the Ma Foi Randstad Work Monitor Survey released in June. Mr. Balaji said the demand for quality customer service across all sectors had increased considerably over the recent years. We are confident that employee engagement will be the key solution for organizations to stand apart from their counterparts in the customer-focused environment that we are in today, he said.

CHAPTER 3 3.1 RESEARCH METHODOLOGY RESEARCH MEANING Research means a search for knowledge. Sometimes, it may refer to a scientific and systematic search for pertinent information on a specific topic. In fact, research is an art of scientific investigation. RESEARCH DESIGN The research design followed in this study is descriptive research. Descriptive research includes surveys and fact - finding enquiries of different kinds. Descriptive study is concerned with describing the particular characteristic of individual or a group. The purpose is description of the state of affairs as it exists at the present. SOURCES OF INFORMATION The research is used primary data and secondary data. Primary data The information of data was collected for the first time by the researcher; it is referred to primary data. The data sources used in this study primary data collected from the employees of Mani India Technologies (P) Ltd.

Secondary data Secondary data are the data that already exists which could be utilized accordingly. Secondary data for this study are collected through the organization library, brouchers, and reports and from company website. Data collection tool Primary data was collected using a well structured questionnaire. Closed ended questions have been used in the questionnaire. In this closed ended questionnaire, Richards 5 point scale is used. Population Size: All the items under consideration in any field of inquiry constitute the universe or population. Population size of Mani India Technology is around 200, and we took the response of existing employees-60 SAMPLING PROCEDURE i. Sampling technique

In this study convenience sampling was done. When the population elements are selected for the inclusion in the sample based on the ease of the access, it can be called convenience sampling. ii. Sample size

The Sample size consists of existing employees-60 respondents of Mani India Technology (P) ltd.

Tools used for data analysis: The collected information has been exit interview and with the help of computers and analyzed suitably. The following statistical tools are used in this study, 1. Simple percentage analysis. 2. Chi square. SIMPLE PERCENTAGE ANALYSIS Simple percentage analysis refers to a ratio, with the help of absolute figures it will be difficult to interpret any meaning from the collected data, but when percentages are found out then it becomes easy to find the relative difference between two or more attributes. Percentage =
N . of respondent s o 100 Total no . of respondent s

CHI SQUARE TEST In many of the statistical test we have to assume that samples come from normal populations. But this procedure is generally referred to as non-parametric methods. The 2 is based on 2 distributions which was first used Karl-Pearson in the year 1900. The chi-square describes as the magnitude of discrepancy between theory and observation.

If 2 is zero, it means that the observed and expected frequencies completely coincides. Greater the value of 2 greater would be the discrepancy between observe d and expected frequencies.

The statistics used 2 =

(o e ) 2 e

Where o = observed frequency. e = expected / theoretical frequency. Note: Appropriate correction factors are used

3.2 Limitations of the study

- All the responses of the employees may not be the true representation, their opinions depends on the recent happening inside the company.

CHAPTER 4 DATA ANALYSIS AND INTERPRETATION

S.No 1 2 3 4 5

Table 4.1.1 I have enough information to do my job well Opinion Number of Percentage Respondents (%) Strongly disagree 8 13% Some what disagree 10 17% Neutral 12 20% Some what agree 18 30% Strongly agree 12 20% Total 60 100% Chart 4.1.2 I have enough information to do my job well

35% 30% percentage 25% 20% 15% 10% 5% 0% Strongly Disgree Some What Disagree Neutral 13% 17% 20%

30%

20% Percentage

Some What Agree

Strongly Agree

5 Point s cale

Inference: From the above table it is clear that 30% of the respondents are agree that having enough information to do the job,20% of the respondents are strongly agree and 20% of the respondents are neutral. So the employees have enough information to do job.

Table 4.1.2 My work gives me a feeling of satisfaction S.No 1 2 Opinion Strongly disagree Some what disagree Number of Percentage Respondents (%) 7 3 12% 5%

3 4 5

Neutral Some what agree Strongly agree Total

13 17 20 60

22% 28% 33% 100%

Chart 4.1.2 My work gives me a feeling of satisfaction

35% 30% Percentage 25% 20% 15% 10% 5% 0% Strongly Disgree Some What Disagree Neutral Some What Agree Strongly Agree 12% 5% 22% Percentage 28% 33%

5 Point scale

Inference: The 33% of the candidates have strongly agreed that they have satisfied our work and 28% of the people agree, 22% of the people neutral. So the employees our works giving satisfied feel.

Table 4.1.3 My job makes good use of my skills and abilities S.No 1 2 3 Opinion Strongly disagree Some what disagree Neutral Number of Percentage Respondents (%) 3 5 10 5% 8% 17%

4 5

Some what agree Strongly agree Total

22 20 60

37% 33% 100%

Chart 4.1.3 My job makes good use of my skills and abilities

40% 35% Percentage 30% 25% 20% 15% 10% 5% 0% Strongly Disgree Some What Disagree Neutral 5% 8% 17%

37%

33%

Percentage

Some What Agree

Strongly Agree

5 Point scale

Inference:
Form the above table it is clear that 33% of the respondents are strongly agree that our job makes good use of our skills & abilities, 37% of the people are agree. So the employees skills and abilities are good.

S.No 1 2 3 4 5

Table 4.1.4 My job requirements are clear Opinion Number of Percentage Respondents (%) Strongly disagree Some what disagree Neutral Some what agree Strongly agree Total 9 10 8 23 10 60 15% 17% 13% 38% 17% 100%

Chart 4.1.4 My job requirements are clear

45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 38%

percentage

15%

17%

13%

17%

Series1

Strongly Disgree

Some What Disagree

Neutral

Some What Agree

Strongly Agree

5 Point scale

Inference: Form the above table it is clear that 38% of the respondents are agree that our job requirement are clear 17% of the respondents strongly agree to the above statement, so the job requirement are clear .

S.No 1 2 3 4 5

Table 4.1.5 I have a clear path for career advancement Opinion Number of Percentage Respondents (%) Strongly disagree Some what disagree Neutral Some what agree Strongly agree Total 13 5 15 10 17 60 22% 8% 25% 17% 28% 100%

Chart 4.1.5 I have a clear path for career advancement

30% 25% Percentage 20% 15% 10% 5% 0% Strongly Disgree Some What Disagree 8% 22%

28% 25% 17% Percentage

Neutral

Some What Agree

Strongly Agree

5 Point scale

Inference:

S.No 1 2 3 4 5

Table 4.1.6 There is good communication in my group Opinion Number of Percentage Respondents (%) Strongly disagree Some what disagree Neutral Some what agree Strongly agree Total 3 7 19 13 18 60 5% 12% 32% 22% 30% 100%

Chart 4.1.6 There is good communication in my group

35% 30% Percentage 25% 20% 15% 10% 5% 0% Strongly Disgree Some What Disagree 5% 12%

32%

30% 22% Percentage

Neutral

Some What Agree

Strongly Agree

5 point scale

Inference:

From the above table it is clear that 32% of the respondents are neutral that the communication level in the group. 35% of the respondents are strongly agree to the above statement, so the communication level among the employees only average level. Table 4.1.7 I receive enough opportunity to interact with other employee on an informal level S.No Opinion Number of Percentage Respondents (%) 1 2 3 4 5 Strongly disagree Some what disagree Neutral Some what agree Strongly agree Total
7 7

12% 12% 20% 23% 33% 100%

12 14 20 60

Chart 4.1.7 I receive enough opportunity to interact with other employee on an informal level

35% 30% Percentage 25% 20% 15% 10% 5% 0% Strongly Disgree Some What Disagree Neutral Some What Agree 12% 12% 23% 20%

33%

Percentage

Strongly Agree

5 Point scale

Inference: The 33% of the candidates have strongly agreed that they have enough opportunity to interact with other employee and 23% of the people agree, 20% of the people neutral. So the employee to interact with other employee on an informal level.

Table 4.1.8 I feel company pay more attention to incentives and perks S.N Opinion Number of Percenta o Responden ge (%) ts 1 Strongly 9 15% disagree 2 Some what 12 20% disagree 3 Neutral 16 27% 4 Some what 12 20% agree 5 Strongly agree 11 18% Total 60 100% Chart 4.1.8 I feel company pay more attention to incentives and perks

30% 25% Percentage 20% 15% 10% 5% 0% Strongly Disgree Some What Disagree 15% 20%

27% 20%

18% Percentage

Neutral

Some What Agree

Strongly Agree

5 point scale

Inference:

From the above table it is clear that 27% of the respondents are neutral that the company pay more attention to incentives and perks.20% of the respondents are strongly agree to the above statement, so the company pay more attention to incentives and perks level among the employees only average level. Table4.1.9 There is scope for three Rs (Rocognition, Reward, and Respect) in our company. S.No Opinion Number of Percentage Respondents (%) 1 2 3 4 5 Strongly disagree Some what disagree Neutral Some what agree Strongly agree Total 8 7 8 17 20 60 13% 12% 13% 28% 33% 100%

Chart 4.1.9 There is scope for three Rs (Recognition, Reward, and Respect) in our company.

35% 30% Percentage 25% 20% 15% 10% 5% 0% Strongly Disgree Some What Disagree Neutral Some What Agree 13% 12% 13% 28%

33%

Percentage

Strongly Agree

5 Point scale

Inference: The 33% of the candidates have strongly agreed that they have Recognition, Reward, and Respect in our company and 28% of the people agree, 13% of the people neutral. So the organization.

Table 4.1.10 Working environment is up to industry standards S.No Opinion Number of Percentage Respondents (%) 1 2 3 4 5 Strongly disagree Some what disagree Neutral Some what agree Strongly agree Total 8 8 6 18 20 60 13% 13% 10% 30% 33% 100%

Chart 4.1.10 Working environment is up to industry standards

35% 30% Percentage 25% 20% 15% 10% 5% 0% Strongly Disgree Some What Disagree Neutral 13% 13% 10%

33% 30%

Percentage

Some What Agree

Strongly Agree

5 oint scale

Inference: The 33% of the candidates have strongly agreed that working environment is up to industry standards and 30% of the people agree, 10% of the people neutral. So the organization

Table 4.1.11 Fair &open environment inside the company working environment S.No Opinion Number of Percentage Respondents (%) 1 2 3 4 5 Strongly disagree Some what disagree Neutral Some what agree Strongly agree Total 8 8 14 10 20 60 13% 13% 23% 17% 33% 100%

Chart 4.1.11 Fair &open environment inside the company working environment

35% 30% Percentage 25% 20% 15% 10% 5% 0% Strongly Disgree Some What Disagree Neutral Some What Agree 13% 13% 23% 17%

33%

Percentage

Strongly Agree

5point scale

Inference:

Table 4.1.12 Companys welfare measures meeting the employee expectation S.No Opinion Number of Percentage Respondents (%) 1 2 3 4 5 Strongly disagree Some what disagree Neutral Some what agree Strongly agree Total 3 10 28 10 9 60 5% 17% 47% 17% 15% 100%

Chart 4.1.12 Companys welfare measures meeting the employee expectation

50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0%

47%

Percentage

17% 5%

17%

Percentage 15%

Strongly Disgree

Some What Disagree

Neutral

Some What Agree

Strongly Agree

5 Point scale

Inference:

Hypothesis Testing 1: Salary, Perks and other monitory benefits are the important factors for employees Attrition Step 1: HOa: Salary Perks and other Monitory Benefits are not associated with employee attrition. H1a: Salary Perks and other Monitory Benefits are associated with employee attrition. Step 2:

The level of significance is 5% Step 3: Test Statistics Chi2 test table for the Salary, Perks and Other monitory benefits Retentio 1) n Salary Perks and other Monitory Benefits are not associated with employee attrition. 4 Salary Perks and other Monitory Benefits are associated with 13 17 8 29 8 14 29 60 employee attrition. Total 21 6 31 Neutral Attrition Total

Note: With Yates correction factor The correction factor is being used because some of the values in the chi squire table are below 5 Chi2 = [(|Oij-Eij|-.5)2 Eij]

Calculation table for chi square test:

OijOijOij 4 21 6 13 8 8 Eij 8.78 14.98 7.23 8.22 14.02 6.77 Eij -4.78 6.02 -1.23 4.78 -6.02 1.23 OijEij 4.78 6.02 1.23 4.78 6.02 1.23 0.50 0.50 0.50 0.50 0.50 0.50 OijEij-.5 4.28 5.52 0.73 4.28 5.52 0.73 [OijEij]-.5]2 18.32 30.43 0.53 18.35 30.47 0.53 total Eij-.5]2/ Eij 2.09 2.03 0.07 2.23 2.17 0.08 8.68 8.68>5.99

Step 4 Degrees of freedom = (r-1). (c-1), here r= number of rows and c = number of columns (2-1). (3-1) = 2 Chi2 (.05, 2) = 5.99 Step 5 Since Chi2 value calculated is higher than the critical value, the hypothesis has been rejected. And H1 is being accepted. Chi2 (calculated) > Chi2 (Critical value) 8.68 > 5.99 Critical value = Chi2 (Probability under Ho, Degrees of freedom)

Conclusion From the above test we can conclude that the Salary, perks and other monitory benefits are associated to attrition of the employee.

Hypothesis Testing 2: Existing Physical and Behavioral Environment are not Associating with employee retention

Step 1: HOa: Existing Physical and Behavioral Environment are not associated with employee Attrition. H1a: Existing Physical and Behavioral Environment are associated with employee Attrition. Step 2: The level of significance is 5% Step 3: Test Statistics Chi2 test table for the Existing Physical and Behavioral Environment benefits

Retentio 2) n Existing Physical and Behavioral Environment are associated with employee Attrition. 4 Existing Physical and Behavioral Environment are not associated with employee Attrition. Total 13 17 18 29 4 14 35 60 11 10 25 Neutral Attrition Total

Note: With Yates correction factor The correction factor is being used because some of the values in the chi squire table are below 5 Chi2 = [(|Oij-Eij|-.5)2 Eij] Calculation table for chi square test: OijOijOij 4 11 10 13 18 4 Eij 7.08 12.08 5.83 9.92 16.92 8.17 Oij-Eij -3.08 -1.08 4.17 3.08 1.08 -4.17 Eij 3.08 1.08 4.17 3.08 1.08 4.17 0.50 0.50 0.50 0.50 0.50 0.50 OijEij-.5 2.58 0.58 3.67 2.58 0.58 3.67 [OijEij]-.5]2 6.66 0.34 13.47 6.66 0.34 13.47 total Eij-.5]2/E ij 0.94 0.03 2.31 0.67 0.02 1.65 5.62 5.62<5.99

Step 4 Degrees of freedom = (r-1). (c-1), here r= number of rows and c = number of columns (2-1). (3-1) = 2 Chi2 (.05, 2) = 5.99 Critical value = Chi2 (Probability under Ho, Degrees of freedom)

Step 5

Since Chi2 value calculated is less than the critical value, the H1 has been rejected. And hypothesis is being accepted. Chi2 (calculated) > Chi2 (Critical value) 5.62 < 5.99 Conclusion From the above test we can conclude that Existing Physical and Behavioral Environment are not associating with employee attrition.

Hypothesis Testing 3:

Career plan and value addition to your current job is important factors for employee attrition. Step 1: HOa: Career plan and value addition to your current job is not the factors associated with employee attrition H1a: Career plan and value addition to your current job is the factors associated with employee attrition Step 2: The level of significance is 5% Step 3: Test Statistics Chi2 test table for the Career plan and value addition to your current job is important for the employees Note: With Yates correction factor Retentio 3) n Career plan and value addition to your current job is not the factors associated with employee attrition 3 Career plan and value addition to your current job is the factors associated with employee attrition Total table are below 5 Chi2 = [(|Oij-Eij|-.5)2 Eij] 14 17 15 29 4 14 33 60 14 10 27 Neutral Attrition Total

The correction factor is being used because some of the values in the chi squire

Calculation table for chi square test: OijOijOij 3 14 10 14 15 4 Eij 6.3 9.35 6.3 9.35 15.95 7.7 Eij -3.3 4.65 3.7 4.65 -0.95 -3.7 OijEij 3.3 4.65 3.7 4.65 0.95 3.7 0.50 0.50 0.50 0.50 0.50 0.50 OijEij-.5 2.80 4.15 3.20 4.15 0.45 3.20 [OijEij]-.5]2 7.84 17.22 10.24 17.22 0.20 10.24 total Eij-.5]2/E ij 1.24 1.84 1.63 1.84 0.01 1.33 7.90 7.90>5.99

Step 4 Degrees of freedom = (r-1). (c-1), here r= number of rows and c = number of columns (2-1). (3-1) = 2 Critical value = Chi2 (Probability under Ho, Degrees of freedom) Chi2 (.05, 2) = 5.99

Step 5 Since Chi2 value calculated is higher than the critical value, the hypothesis has been rejected. And H1 is being accepted.

Chi2 (calculated) > Chi2 (Critical value) 7.90 > 5.99 Conclusion From the above test we can conclude that Career plan and value addition to your current job is not closely associated with employee attrition.

QUESTIONNAIRE DATA ANALYSIS TABLE FOR CHI-SQUIRE TESTS

Res pon dent Q1 Sum (Q4+ Rete Neu Attr Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11 Q12 Q13 Q14 Q15 Q15) ntion tral ition

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48

1 1 1 0 0 1 1 1 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0 1 0 1 0 0 0 1 0 0 1 0 1 0 0 0 1 0 0 0 1 0 0 1 0 1

1 1 1 1 1 0 0 1 0 0 1 1 0 0 1 0 1 0 0 1 0 0 1 0 1 1 0 1 0 1 0 1 1 1 0 1 0 0 1 0 0 0 1 0 1 0 1 0

1 1 0 1 1 1 1 1 1 1 1 1 1 1 1 1 1 0 0 0 1 1 0 1 0 1 0 1 1 1 0 0 0 1 0 0 0 0 0 1 0 0 0 0 0 0 1 0

1 2 2 1 2 1 2 3 2 3 1 2 2 2 1 2 2 3 1 3 3 3 1 3 5 4 1 4 5 3 5 4 4 3 5 4 5 4 4 5 4 3 5 4 3 4 4 3

3 3 5 3 5 1 2 3 4 3 1 4 3 2 4 1 3 5 2 1 3 5 3 1 3 5 5 1 5 3 5 5 1 3 5 5 3 5 5 4 4 5 4 5 5 4 4 5

4 3 3 3 3 4 3 2 4 3 2 4 3 1 4 2 3 5 5 1 5 3 2 5 3 5 5 1 5 5 5 2 5 5 5 5 4 4 4 4 4 4 4 5 5 4 5 5

4 4 4 3 4 3 4 4 3 4 3 4 4 4 4 3 4 3 4 4 4 3 4 4 3 4 4 2 4 4 1 4 4 1 2 1 2 5 5 1 2 5 1 2 5 1 5 2

1 5 2 5 1 2 2 4 1 2 4 2 1 4 3 3 3 3 1 3 3 3 1 3 3 3 1 3 3 3 1 3 3 4 4 4 1 4 4 4 4 1 5 5 1 5 5 5

1 5 1 5 5 1 5 2 5 2 5 5 2 5 5 5 2 5 5 2 5 5 2 5 5 2 5 5 4 3 4 4 4 3 4 4 4 3 4 4 4 3 3 3 3 3 3 3

1 3 4 3 1 4 3 3 4 2 4 1 4 3 3 4 3 4 3 1 4 3 4 2 4 3 4 4 1 4 3 2 4 3 5 1 5 2 5 5 5 5 5 5 5 1 2 5

3 2 3 5 2 3 5 3 2 5 3 5 2 5 3 5 2 3 2 5 3 1 2 5 3 1 2 3 5 3 2 1 3 2 5 1 2 3 1 5 2 4 1 3 4 3 4 1

3 4 1 3 4 4 1 3 4 3 4 1 3 2 4 3 1 4 4 1 4 4 2 4 3 1 4 2 4 3 4 2 5 5 1 5 2 1 2 5 2 5 5 5 5 5 5 5

5 5 1 2 3 5 1 2 3 5 5 1 2 3 5 5 1 2 3 5 5 4 1 2 3 4 1 2 3 4 4 4 1 2 4 4 4 5 2 1 5 4 4 5 4 5 4 5

3 3 3 3 1 2 3 1 2 3 1 2 3 1 2 3 1 2 1 2 3 1 2 3 1 2 3 3 3 3 5 5 5 5 5 4 5 5 5 5 5 4 5 4 5 4 5 4

4 4 2 4 4 2 4 4 2 4 1 4 2 4 1 4 2 5 1 3 2 3 3 3 2 3 3 3 3 2 3 2 3 3 3 3 2 3 3 3 5 3 5 3 5 3 3 5

33 43 31 40 35 32 35 34 36 39 34 35 31 36 39 40 27 44 32 31 44 38 27 40 38 37 38 33 45 40 42 38 42 39 48 41 39 44 44 46 46 46 47 49 50 42 49 48

1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

49 50 51 52 53 54 55 56 57 58 59 60 1 0

0 0 0 1 0 1 0 0 0 0 0 0 21 22 38

0 1 0 0 0 0 0 0 0 0 0 0 32 28

0 0 0 0 0 0 0 0 0 0 0 1 27 33

5 4 5 5 4 5 4 4 5 4 4 4

4 5 4 5 4 5 4 4 4 4 4 4

4 4 4 4 4 4 5 4 5 4 4 5

1 5 2 5 2 1 5 2 1 5 2 5

1 5 5 5 5 1 5 5 5 5 5 5

4 4 3 4 3 3 3 3 3 3 3 3

5 5 5 5 5 2 5 5 5 5 5 2

4 3 4 4 1 4 4 4 4 4 1 4

5 4 5 4 5 5 4 5 5 5 5 5

4 5 4 5 4 5 4 5 4 5 4 5

5 4 5 4 5 4 5 4 5 5 4 5

3 5 3 5 3 5 3 5 3 3 3 3

45 53 49 55 45 44 51 50 49 52 44 50

1 1 1 1 1 1 1 1 1 1 1 1 17 29 14

Summary of Findings

Suggestions

Conclusion The research shows that there is a relationship between Salary, perks and other Monitory Benefit and employee attrition in the organization. It also concluded that the other factors viz. Physical and Behavioral working environment, career

growth and value addition gained on their competencies is not associated with the attrition. Though there is a belief that current salary benefit are meeting the life style of the IT professional staying in tier three city , the research reveals that there is a significant association between the employee attrition and the Salary benefits. My dissertation for retention strategies in the software industry was highly informative and supportive to my future it has helped me to gain knowledge of conducting study of human resource function in an organization. Many HR professionals feel that work performance is a contemplation of how employees feel about themselves and their work, If an employee experience a sense of pride in the job then the work quality, efficiency, and retention increases significantly. Employees who suffer from low self esteem and display lack of enthusiasm exhibits negative feelings at the work place. Protecting the self esteem of the employee will be top agenda for future organization. One of the best ways to achieve that is by providing socially acceptable positions titles to the employees

Bibliography

References:

 Statistical analysis Statistics for Management Dr. P.N. ARORA, Mrs. S. ARORA Websites: www.citehr.com www.wikipedia.com www.managementparadise.com www.scribd.com 5. www.askforhrd.com 6. www.maniindiatech.com
1. 2. 3. 4.

Questionnaire

1. If you look for a new Job, (in a new company) what will be your preference?
1 0
Salary benefits, Perks and Other monitory benefits are important factors Salary benefits, Perks and Other monitory benefits are not important factors

2.What is your opinion on the existing physical and behavioral working MIT ID environment Name
1 0

Designation Department 3.You are well aware of career plan and your current job is adding value in terms of Knowledge skill and ability
1 0 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1
I have a well planned career plan and My current job is adding value in terms of knowledge skill and ability I Dont have a planned career plan and my current job is not adding any value in terms of knowledge skill and ability

Helping to perform better at the work place Not helping to perform better at the work place

4) I have enough information to do my job well.

Strongly disagree. Somewhat disagree. Neutral. Somewhat agree. Strongly agree. Strongly disagree. Somewhat disagree. Neutral. Somewhat agree. Strongly agree. Strongly disagree. Somewhat disagree. Neutral. Somewhat agree. Strongly agree. Strongly disagree. Somewhat disagree. Neutral. Somewhat agree. Strongly agree. Strongly disagree. Somewhat disagree. Neutral. Somewhat agree. Strongly agree. Strongly disagree.

5) My work gives me a feeling of satisfaction.

6) My job makes good use of my skills and abilities.

7) My jobs requirements are clear.

8) I have a clear path for career advancement.

9) There is good communication in my group.

2 3 4 5

Somewhat disagree. Neutral. Somewhat agree. Strongly agree.

10) I receive enough opportunity to interact with other employees on an informal level.
1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 Strongly disagree. Somewhat disagree. Neutral. Somewhat agree. Strongly agree. Strongly disagree. Somewhat disagree. Neutral. Somewhat agree. Strongly agree. Strongly disagree. Somewhat disagree. Neutral. Somewhat agree. Strongly agree. Strongly disagree. Somewhat disagree. Neutral. Somewhat agree. Strongly agree. Strongly disagree. Somewhat disagree. Neutral. Somewhat agree. Strongly agree. Strongly disagree. Somewhat disagree. Neutral. Somewhat agree. Strongly agree.

11) I feel company pay more attention to incentives and perks.

12) There is scope for three Rs (recognition, reward, respect) in our company.

13) Working environment is up to industry standards

14)Fair & open environment inside the company working environment

15) Companys welfare measures meeting the employee expectation

Thank you for completing this questionnaire