Y
 





  

°
 
  
 
 
 

÷
  "A reduction in the number of

employees through retirement, resignation, death
or because of some other reason it can be
personal or organizational³

x
÷
 
  ³The rate of shrinkage

in size or number"
easons for Employee Attrition
ëOrganizational matters
ëWorking environment
ëJob matters
ëSalary and other benefits
ëPoaching
ëEmployee¶s advocate
ëPerformance review
ëPersonal reasons
jommon methodology in calculating Attrition ate
Total Number of esigns per month (Whether voluntary or forced) X 100
-----------------------------------------------------------------------------------------
(Total Number of employees at the beginning of the month + total number of new joinees -
total number of resignations)

Total Terminations in a month

-------------------------------------------------------------------------------------
(Total Head jount at the beginning of the month) + (Total New Hires)

Total No. of employee left X 100

-------------------------------------------
Total No .Of employees present

Number of employee separations-involuntary separations X 100

-------------------------------------------------------------------------------------
*Average employee count
(*Avg. employee count = January month strength + December month strength)
josts of Turnover
ÿ Administration & Sourcing costs ÿ jost of New Hire

Process Administration ëInduction Administration

ë esignation Administration ë Induction Fixed josts
ë ecruitment Administration ë Induction Training
ë elocation Expenses
Sourcing josts:
ë Agency expenses ÿLost productivity
ë Advertising costs
ë Excluded costs
Interview josts: ë Employee Demoralization
ë Interview ëImpaired Quality of Service
ë Testing ëTurnover reason & cost impact
ë Travel
ÿ Dysfunctional and avoidable turnover
Handling attrition
Ô   

   :
ë Providing stimulating work environment
ë Free transport and free food
ë Good rewards and recognition programs
ë ecreation clubs, janteens, Entertain programs , fun activities
within the work area
ë Good pay and benefits
ë Other practices include
Ä Promotions and salary increase on a regular basis
Ä Better learning opportunities, Encourage enroll for distance
learning programs
Ä egular holiday packages, gifts, outings etc
How to save high attrition rates?
ëHow much would you invest to keep your employees
focused and happy?
ëPeople are not easily replaced
ëDrivers of Turnover
Drivers of Turnover
esearch shows the reasons for employee departures are
(in descending order)

1. Employee/manager relationship
2. Inability to use core skills
3. Not able to impact the organization's goals, mission
4. Frequent reorganizations; lack of control over career
5. Inability to grow and develop
6. Employee/organization values misalignment
7. Lack of resources to do the job
8. Unclear expectations
9. Lack of flexibility; no µWork life balance'
10. Salary/benefits
How to curb attrition?
ë Money is not everything
ë Vision and objectives
ë Treat employees like justomers
ë Firing
ë jonsider feedback
ë Spend Time Developing and Benchmarking Incentives
ë Subsidize Education and jertification
ë jhange Locations
ë otate Employees
ë jombat Poaching by Encouraging eferrals
ë Spend More Time ecruiting
ë Are Your Employees Satisfied? ± ETENTION!!!
jonsequences of Attrition
è The Brighter Side of Attrition
jommonly Used Techniques in the Industry

ëSurveys
ëExit Interviews
esearch Methodology

ÿ„
 
To study µEmployee Attrition¶ at 
[



ÿ2  
ëTo study attrition rate in the financial year 2009-10
ëBy collecting, studying and analyzing the data from the
Exit Interview Form

ÿ  
  
Exit Interview method
Mahindra & Mahindra


  
 
÷



  Ä

Mahindra & Mahindra in various sectors
ëAutomotive
ëFarm-equipment
ëFinancial services
ëSys-tech
ëAfter-market
ëInformation Technology
ëInfrastructure development
ëTrade, retail & logistic
ÿ 2
  ÿ m
  

ë In depth knowledge of the rural ëUtility vehicle loans

and semi-urban market ëTractor loans
ë The relationship with Mahindra ëjar loans
and Mahindra ëTwo-wheeler loans
ë The branch network ëefinance
ë The association with dealers ëjommercial vehicle loan
ëInvestment advisory services-
ë The client base
Mutual funds distribution
ë The ability to borrow at cheaper
ëPersonal loans
rates
Levels at 
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jompetitor: Shriram Transport Finance
jompany Limited (STFj)
ë Area of operation - All India
ë Branch Offices - 482
ë Employees - 12196
ë justomers - 1.4 million
ë Agency Force- 15,000 plus esident epresentatives -1300
ë Funds Managed (as at 31st March 09) - s.23281.11 crores ($4.95
billion)
ë Net worth (as at 31st March 09) - s.2316.61 crores ($492 million)
jompetitor: Shriram Transport Finance
jompany Limited (STFj)

 
„ 

 
ë jommercial Vehicle Finance ëTyre Loan
ë Passenger jommercial ëEngine eplacement Loan
Vehicle Finance ëWorking japital Loan
ë Multi Utility Vehicle ëjo-Branded jredit jard
Finance ëFreight bill discounting
ë Three wheeler Finance
ë Tractor Finance
ë jonstruction Equipment
Finance
Employee Attrition at 
[


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 in the previous
financial year 2009-10
Employee Attrition at 
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financial year 2009-10
Employee Attrition at 
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Employee Attrition at 
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financial year 2009-10
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financial year 2009-10
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financial year 2009-10
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financial year 2009-10
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financial year 2009-10
Employee Attrition at 
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financial year 2009-10
 For Better Prospects 398
Employee Attrition at 
 Personal 280
[

 in the previous financial year Non Performance 180
Terminated 92
2009-10 Integrity 61
Not eporting 55
Transfer 39
Health Issue 33
Work Pressure 28
Higher Studies 20
Family Issue 18
BMI 17
Eligibility jriteria 13
evoked 10
Job Profile 9
jompensation 5
Death jase 4
Work julture 4
Own Business 3
DONA Failed 2
Appraisal 1
Business jlosed 1
etained 1
 Employee etention
ëAwareness of existing opportunities
ëInternal Job Posting
ëjareer counseling
ëPerformance Appraisals
ëTraining Need Analysis
ëjareer enhancement programs