vijayakumar.P vhm-156 (1)

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TABLE OF CONTENT

CHAPTER NO TITLE PAGE NO.

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


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LIST OF TABLES

Table no TABLE NAMEPage no

4.1.1 Table showing the Gender Classification 42

4.1.2Table showing the Age Group

44

4.1.3Table showing the Educational level of the respondent

46

4.1.4 Table showing the occupation status of the respondent 48

4.1.5 Table showing the annual income of the respondent 50

4.1.6 Table showing the what is attrition 52

4.1.7 Table showing the major reasons for quitting the organization 54

4.1.8 Table Showing the ways to avoid attrition in the company 56

4.1.9 Table Showing the internal transfer as one of the factor 58

4.1.10 Table showing ranking the factors for non acceptable factors 60

4.1.11 Table showing the industry with more attrition 62

4.1.12 Table showing the relieving factors as the reason to attrition 64

4.1.13 Table showing the worst situation which lead to attrition 66

4.1.14Table showing the satisfaction with the existing company

68

4.1.15Table showing the feedback towards the higher level

70

4.1.16 Table showing the achieving the organization goal 72


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LIST OF CHART

Chart no TITLE Page no.

4.1.1 Table showing the Gender Classification 43

4.1.2Table showing the Age Group

45

4.1.3Table showing the Educational level of the respondent

47

4.1.4 Table showing the occupation status of the respondent 49

4.1.5 Table showing the annual income of the respondent 51

4.1.6 Table showing the what is attrition 53

4.1.7 Table showing the major reasons for quitting the organization 55

4.1.8 Table Showing the ways to avoid attrition in the company 57

4.1.9 Table Showing the internal transfer as one of the factor 59

4.1.10 Table showing ranking the factors for non acceptable factors 61

4.1.11 Table showing the industry with more attrition 63

4.1.12 Table showing the relieving factors as the reason to attrition 65

4.1.13 Table showing the worst situation which lead to attrition 67

4.1.14Table showing the satisfaction with the existing company

69

4.1.15 Table showing the feedback towards the higher levelorganization

71

4.1.16 Table showing the achieving the organization goal 73


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CHAPTER 1

1.1 INTRODUCTION

DEFINITION:

Attrition can be defined as "A reduction in the number of employees through

retirement, resignation or death. While attrition rate is "the rate of shrinkage in size or

number"

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?

Corporate is facing a lot of problems in employee retention these days. Hiring

knowledgeable people for the job is essential for an employer. But retention is even more

important than hiring. There is no dearth of opportunities for a talented person. There are

many organizations which are looking for such employees. If a person is not satisfied by

the job hes doing, he may switch over to some other more suitable job.

Employees today are different. They are not the ones who dont 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.

If they dont, they would be left with no good employees. Employee retention matters, as,

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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

1.1 Introduction Attrition

In todays environment it becomes very important for organizations to retain their

employees. The top organizations are on the top because they value their employees and

they know how to keep them glued to the organization. Employees stay and leaveorganizations for some reasons. The reason may be personal or professional. These

reasons should be understood by the employer and should be taken care of. The

organizations are becoming aware of these reasons and adopting many strategies for

employee retention.

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.

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Attrition in IT/ITES

IT/ITES is the delegation of one or more IT-intensive business processes to an external

provider that in turn owns administers and manages the selected process based on definedand measurable performance criteria. IT/ITES is one of the fastest growing segments of

the Information Technology Enabled Services (ITES) industry.

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.

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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 moreprominent 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

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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 than250 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.

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The share of North America (U.S. & Canada) in Indias software exports is about 61%.In

1999-2000, more than a third of Fortune 500 companies outsourced their software

requirements to India.

NASSCOM Attrition

According to a NASSCOM-McKinsey report, annual revenue projections for Indias IT

industry in 2009are US $ 87 billion and market openings are emerging across four broad

sectors, IT services, software products, IT enabled services, and e-businesses thus creating

a number of opportunities for Indian companies. In addition to the export market, all of

these segments have a domestic market component as well.

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.

Other key findings of this report are

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

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Attrition Rates

The attrition rates in different sectors for the year ended 2008 are shown in the following

table: -

Sector Attrition RateFMCG 17

Manufacturing 20

Capital Goods 23

Construction 25

Non Voice IT/ITES 25

IT - ITES 27

Telecom 30

Pharmaceuticals 32

Bio Technology 35

Services 40Financial 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/ITESS 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.

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ATTRITION RATES AROUND THE WORLD

COUNTRY ATTRITION RATE

US 42%

AUSTRALIA 29%EUROPE 24%

INDIA 18%

Impact of Attrition:

Direct impact: A high attrition indicates the failure on the companys ability to set

effective HR priorities. Clients and business get affected and the companys internal

strengths and weaknesses get highlighted. New hires need to be constantly added, furthercosts in training them, getting them aligned to the company culture, etc.,all a challenge.

15Indirect impact: Difficulty in the company retaining remaining employees and to what

extent? Problem for the company in attracting potential employees. Typically, high


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attrition also leads to a chronic or systemic cycleattrition brings decreased productivity,

people leave causing others to work harder and this contributes to more attrition. All this

has a significant impact on the companys 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.

Interruption of Customer Service: Customers and clients do business with a company in

part because of the people. Relationships are developed that encourage continued

sponsorship of the business. When an employee leaves, the relationships that employee

built for the company are severed, which could lead to potential customer loss.

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

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rates are low. Higher retention rates motivate potential employees to join the organization.


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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 certaincircumstances that lead to their leaving the organization. The most common reasons canbe:

No growth opportunities: No or less learning and growth opportunities in thecurrent job will make candidates job and career stagnant.

Lack of appreciation: If the work is not appreciated by the supervisor, the

employee feels de-motivated and loses interest in job.

Lack of trust and support in coworkers, seniors and management: Trust is the

most important factor that is required for an individual to stay in the job. Non-

supportive coworkers, seniors and management can make office environment

unfriendly and difficult to work in.

Stress from overwork and work life imbalance: Job stress can lead to work life

imbalance which ultimately many times lead to employee leaving the organization.

Compensation: Better compensation packages being offered by other companies

may attract employees towards themselves.

New job offer: An attractive job offer which an employee thinks is good for him

with respect to job responsibility, compensation, growth and learning etc. can lead

an employee to leave the organization.

Job and person mismatch: A candidate may be fit to do a certain type of job

which matches his personality.

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Job is not what the employee expected to be: Sometimes the job responsibilities

dont come out to be same as expected by the candidates. Unexpected job

responsibilities lead to job dissatisfaction.

Myths on Employee Retention

The process of retention is not as easy at it seems. There are so many tactics and strategies

used in retention of employees by the organizations. The basic purpose of these strategies

should be to increase employee satisfaction, boost employee morale hence achieve

retention. But some times these strategies are not used properly or even worse, wrong

strategies are used. Because of which these strategies fail to achieve the desired results.

There are many myths related to the employee retention process. These myths exist

because the strategies being used are either wrong or are being used from a long time.

These myths prevent the employer from successfully implementing the retention

strategies. There are some of myths about Employee retention

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 its 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 individuals

skill development. The employers should understand this and work out some other

ways to make employees feel satisfied.

Incentives can increase productivity: Incentives can surely increase productivity

but not for long term. Cash incentives, volume work targets and speed awards are

old management beliefs. They can generate work speedily and in volumes but cant boost employee commitment. Rather speed can hamper the quality of work

produced. What really glues employees to their work and organization is quality

work, meaningful responsibilities, recognition, growth opportunities and friendly

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Employees run away from responsibilities: It is a myth that employees run from

responsibilities. In-fact employees feel more responsible if they are given extra

responsibilities apart from their regular job. They want opportunities to learn and

grow. Management can assign extra responsibilities to their employees and

appreciate them on the completion of these tasks. This will induce a sense of pride

in the employee and will improve the relationship between the management and

the employee.

Loyalty is a thing of the past: Employees can be loyal but what they need is an

employer for whom they can be loyal. There is no reason for the employee to hop

jobs if hes satisfied with the employer.

Taking measures to increase employee satisfaction will be expensive for the

organizations: The things actually required improving employee satisfaction like

respect, career growth and development, appreciation, etc. cant be bought. They

are free of cost. An employer or management that reacts well to the employees

ideas and suggestions is enough for the employees to be retained.

Employee retention would require a lot of efforts, energy, and resources but the

results are worth it.

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Benefits of Attrition

Attrition rates are considered to be beneficial in some ways:

Removes bottle-neck in the progress of the company

Creates space for the entry of new talents, external as well as internal

Helps planting "ambassadors" in the eco-system who can have a positive impact on

the growth of the organization

Assists in evolving high performance teams

Infuses new blood into the organization

Enhances ability for execution New thoughts, ideas, and hence, more innovation and creativity at work.

Knowledge of best practices from across the industry is brought in.

It is also an opportunity to induct employees at a lower cost with fresh skills and

competencies aligned to the current need of business.

The following can also be considered as the benefits of attrition

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.

When certain employees leave, whose continuation of service would have

negatively impacted productivity and profitability of the company, the company is

benefited.

New employees bring new ideas, approaches, abilities & attitudes which can keep

the organization from becoming stagnant.


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1.2 INDUSTRY PROFILE:

Indian IT/ITES Industry 2003-2009:

(US $ million)

2003-042004-05 2005-06 2006-07 2007-2008 2008-09*

Domestic software Market 490 670 920 1250 1700 2450

Software Exports 734 1085 1750 2650 4000 6300

Indian Software Industry 1224 1755 2670 3900 5700 8750

(* Source: NASSCOM Report 2009)

NASSCOMs survey during 2003-2009 indicates a reversal in the mode of

services offered by India. In 2003-04, offshore services accounted 5 per cent and on-site

services 95 % of the total exports. However, during 2007-2008 offshore services

contributed over 40 percent of the total exports.

India's IT Industry: A Current Scenario

According to a NASSCOM-McKinsey report, annual revenue projections for Indias IT

industry in 2009 are US $ 87 billion and market openings are emerging across four broad

sectors, IT services, software products, IT enabled services, and e-businesses thus creating

a number of opportunities for Indian companies. In addition to the export market, all of

these segments have a domestic market component as well.

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

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PROJECTED REVENUES 2010

($ US billion) - Exports of $50 billion in 2009

1.3 COMPANY PROFILE:

Introduction:

Innovates is a global information technology (IT) Development & consulting firm

focusing on areas of specialization which includes ... strengths for vision of the future andan insight into the core technical concepts in the IT and BPO industry.

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 industrys growth in

India in the last 25 years, the management team brings rich domestic and international

experience to the table at Innovates.

Ethics and fair play are the founding values of Innovates culture. Our corporate

value system is based on the LEARN paradigm and is characterized by Leadership

India

Based

India

Centric

Sub total

(International)

Domestic Total 2010

IT Services 23 7* 30 8.5 38.5 2.1

Software

Products8 2 10 9.5** 19.5 0.6

IT-enabled

Service15 2 17 2 19 0.4

E-business 4 1 5 5 10 0.2

Total 50 12 62 25 87 3.3

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through empowerment, Excellence in delivery, Adaptable to client needs, Respect for

client and employee and Nimbleness in responding to changing market needs.

This focus has already paid rich dividends in the last 3 years of our existence. Thesuccess 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.

Innovates offer Services through four disciplines for Consulting, Technology,

Outsourcing and Local Professional Services.

Innovates organizational structure includes divisions based on client industry types

and growth platforms. Industry divisions, referred to as Operating Groups, include

Products (e.g. consumer packaged goods or industrial equipment), Communications High

Technology and Media ('CHT'), Financial Services (e.g. banking, insurance), Resources

(e.g. utilities, chemicals, energy), and Public Service. The growth platforms are

respectively titled Management Consulting & Integrated Markets, Outsourcing, and

Systems Integration & Technology.

Management Consulting

o Customer Relationship Management23


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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:

Innovates offers world-class software engineering, algorithm development, content

development, and other consulting services to help your company meet all of its

information technology needs We excel in helping companies develop new technologies

and create new products based on those technologies.

Since our inception, we have developed numerous commercial products for clients in awide 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

implementing state-of-the-art development methodologies and managing the delivery of24


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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.

Innovates Engagement Models

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A. Fixed Price/Fixed Time

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 arereasonably 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.

B. Time and Materials

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.

C. Modularized Hybrid26


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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.

D. Partnerships and Revenue/Risk Share

IT projects are undertaken to provide cost savings, higher productivity, or increased

revenue opportunities. As with any strategic initiative, there are associated risks. We are

confident in our ability to deliver measurable business benefits. Therefore, in many cases

we can link our project fees with the actual business benefit our clients realize

Revenue/Risk Share models are popular amongst emerging businesses or technology

companies. Innovates can invest and share the development costs in return for jointly

owning the Intellectual Property (IP) and sharing revenue streams. Under this business

model Innovates shares the risks involved in developing and marketing a product along

with our customers

E. BOT model

Applying the Build-Operate-Transfer model, Innovates can rapidly establish an offshore

operation for a customer, and later transition the center to the client's control or

ownership

The phases of the B-O-T model include the following services

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.

BOT Extension to ODC model 27


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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

Vision and Values

Innovates strive for excellence in everything they think, say and do.

Quality: Innovates are dedicated to achieving the highest levels of quality in everything they do

to delight customers, internal & external, every time.

Respect for the Individual: Innovates uphold the self esteem and dignity of each other by

creating an open culture conducive for expression of views and ideas irrespective of hierarchy.

Innovation & Continuous Learning: Innovates create an environment of innovation andlearning that fosters, in each one of us, a desire to excel and willingness to experiment.

Collaboration & Teamwork: Innovates seek opportunities to build relationships and leverage

knowledge, expertise and resources to create greater value across functions, businesses and

locations.

Harmony & Social Responsibility: Innovates take utmost care to protect our natural

environment and serve the communities in which we live and work. Their business practices are

guided by the highest ethical standards of truth, integrity and transparency.

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 transforms itself into a higher plane of

leadership. The forward-looking approach of Innovates has always helped it, in achieving the

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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.

ORGANISATIONAL STRUCTURE MAIN OFFICE ORGANISATION

STRUCTURE (CHENNAI)29


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1.4 OBJECTIVES OF THE STUDY

CMD

VCMD

WD DCPD

SGMM SGMHRS DW EDM DMFEDFCS

SGMP SGMPSGMP

SGMGP GMP GMP

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PRIMARY OBJECTIVE:

To identify the broad reasons for Employee/staff attrition in Innovates.

SECONDARY OBJECTIVE:

To identify ways to improve Employee retention in Innovates

To suggest ways to improve employee retention.

1.5 NEED FOR THE STUDY

The project helps me to understand how a companys HR Department tries to

improve their business by keeping good relations with employees.

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To help organization in reducing the overall costs by reducing replacement costs.

To spread the training costs over the years of employees stay in the organization

To helps the HR department of the organization to concentrate on other important

things like training, apart from recruitment.

1.6 SCOPE OF THE STUDY32


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Recent employees 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.

It helps to identify the flaws in the current retention strategy.

It helps the organization to identify the effective retention practices needed to

retain the employees.

It helps organization to reduce the attrition rate.

1.7 LIMITATIONS OF STUDY 33


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The survey was limited to the organization; hence the result obtained from the

study may not be universally applicable.

It was difficult to meet all the respondents in the organization.

The respondents were reluctant to answer due to their busy schedule.

Some of the respondents might have answered in a biased manner.

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.

CHAPTER- 2

2.1 REVIEW OF LITERATURE

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Employee retention is a process in which the employees are encouraged to remain

with the organization for the maximum period of time .Employee retention is beneficial

for the organization as well as the employee.

The biggest challenge faced by an organization today is not one of growth or

profitability. Rather, it is about retaining one's best employees. Average organizations

spend more money on recruitment and replacement programs, while good organizations

invest in employee retention.

Employees today are different. They are not the ones who dont have good

opportunities in hand. As soon as they feel dissatisfied with the current employer or thejob, they switch over to the next job. It is the responsibility of the employer to retain their

best employees.

Greg Smith says Successful organizations realize employee retention is integral to

sustaining their leadership and growth in the marketplace. Becoming an Employer of

Choice by retaining high-caliber employees in today's labor market should be the highest

priority.

Any attrition in any form is bad for an organization. It means that a wrong choice

was made at the beginning" saysNR 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.

Bill Erickson reviews Failure to Employee Retention will result in Costs Due to a

Person Leaving, Recruitment Costs, Training Costs, Lost Productivity Costs, Loss of

Company Knowledge, Quality employees and New Hire Costs.

High attrition implies that certain necessary skills are vulnerable or are not present

due to employees being lost" saysVikram Bhardwaj, Managing Director, and Redileon

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A survey from NAUKRI says Employees do not leave an organization without any

significant reason. There are certain circumstances that lead to their leaving theorganization. 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.


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Employees are the real assets to any organization.

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,

formulated hypothesis or suggested solutions; collecting and evaluating data, making

deduction and reaching conclusion, and at last carefully testing the conclusion to determine

whether they fit for formulating the hypothesis.

Research in common parlance refers to a search for knowledge. Eminent research

scholars have defined the term research as a scientific and systematic search for pertinent

information on a specific topic. In fact, research is an art of scientific investigation. It is

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,

observation, comparison and experiment.

Technically speaking, research comprises defining the problems; formulating the

hypotheses; collection, organizing and evaluating the data; making the conclusions; and

testing the conclusions to determine whether they fit the formulated hypotheses. The primary

purpose of research is to discover answer to questions through the application of scientific

procedures.

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RESEARCH DESIGN:

A research design is the arrangement of conditions for collection and

analysis of 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 description if the state of affairs, as it exit in the present.

The design in such study must be rigid and must focus attention on the following

Formulating the objectives of the study,

Designing the method of data collection,

Selecting the sample,

Collecting the data,

Processing and analyzing the data.

SAMPLING DESIGN:

A sample design is definite plan obtaining a sample from a given

populations. It refers to the technique or a procedure, the researcher would adopt in

selecting items for the sample.

SAMPLING METHOD:

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The date collected from the respondents through the convenience sampling, which

belongs to the non- probability sampling.

SAMPLE SIZE:

The sample size for this study is taken as 150 for the interview and issue questionnaires.

DATA COLLECTION METHOD

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

for this type of study

Data is basically collected in two methods. They are classified in two years.

Primary data

Secondary data

PRIMARY DATA

This data helps in collecting first hand information

SECONDARY DATA:

These are data which were already collected & available for other purposes then

for solving the problem that is undertaken.

COLLECTION OF PRIMARY DATA

There are several methods of collecting primary data in descriptive research.

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OBSERVATION METHOD

INTERVIEW METHOD

THROUGH QUESTIONNAIRES

THROUGH SCHEDULES

COLLECTION OF PRIMARY DATA THROUGH QUESTIONNAIRES

This study undertaken needs fresh / first hand information. The data collected

appraisal falls under the primary data only.

They are different methods available in collection of primary data are

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

contained maximum of close ended questions. The instrument is of structured undisguised

type.

STATISTICAL TOOLS:

The methods followed for the analysis and interpretation of data are:

Percentage

Chi square

Weighted average

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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:

Chi square test is a non-parameter test that establishes the independence between variables. It is

measured by comparing the observed with those of expected frequencies based on the

hypothesis. It is given by(i) Chi square = (Oi Ei)

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:

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X1W1+X2W2+X3W3

=

W1+W2+W3.

CHAPTER-4

DATA ANALYSIS AND INTERPRETATION

4.1 PERCENTAGE ANALYSIS

Table 4.1.1

Table Showing Gender Distribution of the Respondents

PARTICULARS NO.OF RESPONDENTS PERCENTAGE OF

THE RESPONDENTS

MALE 68 68%

FEMALE 32 32%

TOTAL 100 100

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Inference:

The above table shows that 68% of the respondents are Male whereas 32% of the

respondents are Female.

Chart 4.1.1

Chart Showing Gender Distribution of the Respondents

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Table 4.1.2

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%

TOTAL 100 100

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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

Chart 4.1.2Chart showing age distribution of the respondents

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Table 4.1.3Table showing educational level of the respondents

PARTICULARS RESPONDENTS PERCENTAGE

HSC 18 18%

DEGREE 36 36%

PG 36 36%

OTHERS 10 10%

TOTAL 22 100

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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

Chart showing the educational level of the respondents

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Table 4.1.4

Table showingthe occupational status of the respondents

PARTICULARS RESPONDENTS PERCENTAGE

STUDENT 23 23%

BUSINESS 23 23%

PROFESSIONAL 27 27%

OTHERS 27 27%

TOTAL 100 100

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Inference:

The above table shows that 23% each of the respondents are either students or doing

business 27%professionals and remaining 27% forms others.

Chart 4.1.4

Chart showing the occupational status of the respondents

23%

23%27%

27%

RESPONDENTS

STUDENT

BUSINESS

PROFESSIONAL

OTHERS

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Table 4.1.5

Table showingannual income level of the respondents.

PARTICULARSRESPONDENTS PERCENTAGE OF

THE RESPONDENTS

LESS THAN I LAKH 19 19%

1-5 LAKH 36 36%

5-10 LAKH 31 31%

ABOVE 10 LAKH 14 14%

TOTAL 100 100

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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.

Chart 4.1.5

Chart showing annual income level of the respondents

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Table 4.1.6

Table showingwhat is attrition?


THE RESPONDENTS

RESIGNATIONS 19 19%

TERMINATIONS 27 27%

EMPLOYEE LEAVING 36 36%

OTHERS 18 18%

TOTAL 100 100

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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

Chart indicating what is attrition?

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Table 4.1.7

Table Showing the Major Reasons for Quitting the Organization

PARTICULARS RESPONDENTS PERCENTAGE OFRESPONDENTS

No growth opportunity 23 23%

Compensation system 23 23%

No good relations with managers 27 27%

Personal Reasons 27 27%

TOTAL 100 100

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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

Chart Showing the Major Reasons for Quitting the Organization

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Table 4.1.8

Table showing-what could have been done to avoid attrition from a company


RESPONDENTS

Fair compensation 23 23%

challenging job 32 32%

Work style 27 27%

Recognition 18 18%

TOTAL 100 100

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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.

Chart 4.1.8

Chart showing - what could have been done to avoid attrition from a company

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Table 4.1.9

Table showing the internal transfer process acts as one of the factor

PARTICULARS RESPONDENTS PERCENTAGE OFRESPONDENTS

YES 64 64%

NO 36 36%

TOTAL 100 100

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Inference

From the above table, 64% said internal transfer process act as one of the factor of attrition

while 36% say no.

Chart 4.1.9

Chart showing the internal transfer process acts as one of the factor

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Table 4.1.10

Table showing the factors for non acceptance of offer letter


RESPONDENTS

Accepted offer from another employer 23 23%

Not able / willing to relocate 27 27%

Not willing to commute long distances 27 27%

Personal Factors 23 23%

TOTAL 100 100

Inference

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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

Chart showing the factors for non acceptance of offer letter

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Table 4.1.11

Table showing the industry with more attrition


RESPONDENTSIT/ITES 64 64%

FMCG 9 9%

Manufacturing 13 13%

Others 14 14%

TOTAL 100 100

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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

Chart showing the industry with more attrition

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Table 4.1.12

Table showing the relieving procedures provide room for attrition

PARTICULARS RESPONDENTS

PERCENTAGE OF

RESPONDENTS

YES 68 68%

NO 32 32%

TOTAL 100 100

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Inference:

From the above table, 68% said the relieving procedures provide room for attrition and the

rest 32% say No

Chart 4.1.12

Chart showing the relieving procedures provide room for attrition

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Table 4.1.13 table showing the worst situations which lead to attrition


RESPONDENTS

Groupism and politics 28 28%

No transparency 22 22%

Heavy workload 18 18%

Problem with sub ordinates 32 32%

TOTAL 100 100

Inference:

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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.

Chart 4.1.13

Chart showing the worst situations which lead to attrition

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Table 4.1.14

Table showing the satisfaction with the existing retention practices


RESPONDENTS

YES 52 52%

NO 48 48%

TOTAL 100 100

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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

Chart showing the satisfaction with the existing retention practices

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Table 4.1.15

Table showing the feedback towards the higher level organization is heard


RESPONDENTS

Action taken 42 42%

Just A Formality 36 36%

Never Heard 22 22%

TOTAL 100 100

Inference:

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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

Table showing the feedback towards the higher level organization is heard

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Table 4.1.16

Table showing - achieving organization goal

PARTICULARS RESPONDENTS PERCENTAGEOF

RESPONDENTS

YES 82 82%

NO 18 18%

TOTAL 100 100

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.

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Chart 4.1.16

Chart showing - achieving organization goal

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4.1 CHI SQUARE ANALYSIS

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

H1 (Alternate hypothesis) = There is 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:

Age/Factors for non

acceptance of offer letter

18-25 25-35 35-50 ABOVE

50

Total

Accepted offer from another

employer

9 7 6 1 23

Not able / willing to relocate 11 10 4 2 27

Not willing to commute long

distances

15 4 3 1 23

Personal Factors 10 1 9 7 27

Total 45 22 22 11 100


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CALCULATION:

O E O-E (O-E)2 (O-E) 2/ E

9 7 2 4 0.57

7 9 -2 4 0.44

6 6 0 0 0

1 1 0 0 0

11 13 -2 4 0.30

10 8 2 4 0.5

4 4 0 0 0

2 2 0 0 0

15 11 4 16 1.45

4 3 1 1 0.33

3 5 -2 4 0.8

1 4 -3 9 2.25

10 14 -4 16 1.14

1 2 -1 1 0.5

9 7 2 4 0.57

7 4 3 9 2.25

[(O-E) 2 / E]= 76.15

Degree of freedom = (R-1) (C-1)

= (4-1) (4-1)

= 9

Calculated value = 76.15

At 5% level of significance the table value is 16.919

Table value


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Interpretation:

Hence there is significant difference between the age of respondents andfactors for non acceptance of offer letter

4.2.1 CHI SQUARE ANALYSIS:

Chi square between the income of the respondents and avoidance of attrition

H0 (Null hypothesis) = There is no dependency between the income of the

respondents and avoidance of attrition

H1 (Alternate hypothesis) = There is dependency between the income of the respondentsand avoidance of attrition

OBSERVED FREQUENCY:

Income/avoidance of

attrition

Less than 1

Lakh

1-5 Lakhs 5-10 Lakhs Above 10

Lakhs

Total

Fair compensation 7 5 6 1 19

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:

CHI SQUARE = [(O-E) 2 / E]

O Observed frequency

E Expected frequency

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(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 0.259 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 52 4 0.84 1 3 9 9

[(O-E) 2 / E]= 21.59

Degree of freedom = (R-1) (C-1)= (4-1) (4-1)

= 9

Calculated value = 21.59

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At 5% level of significance the table value is 11.070

Table value


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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.

WEIGHTED AVERAGE 4.3.1

WORST SITUATIONS WHICH LEAD TO ATTRITION

Groupism andpolitics

No transparency Heavy workload Problem withsub ordinates

Aggregate WeightedAverage


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28 22 18 32 254 2.54

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.

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.

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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% said internal transfer process act as one of the

factor of attrition while 36% say no.

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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 (4.2) chi square analysis

There is no significant difference or association between the gender and

satisfaction level of job opportunities.

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From the (4.2.1) chi square analysis

There is no significant difference or association between the marital status

of employee and satisfaction level of welfare measures.

From the above table (4.3) 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.

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.

5.2 SUGGESTIONS AND RECOMMENDATIONS83


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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 opportunitiesby:

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.

Suggestions on my point of view the company can also concentrate on these

issues;

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.

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4. The concern can provide Mediclaim for employees and their family members, as many

employees said it as a factor for leaving IT 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.

8. The communication channels between the employees and management needs to be

made still more effective and make sure that the employees feel their concerns reach the

management and the management cares for them.

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.

85


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5.3 CONCLUSION

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 certainlyincrease 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.

With these objectives in mind the study has been conducted.

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 hasconcluded 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.

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83/85

6.1 ANNEXURE

QUESTIONNAIRE ON EMPLOYEE ATTRITION RATE

1. Gender of the respondents

a. Male b. Female

2. Age group of the respondents

A.18-25 b. 25-35 c. 35-50 d. Above 50

3. Educational Level of the respondentsa. HSC b. Degree c. PG d. Others

4. Occupational Status of the respondents

a. Student b. Business c. Professional d. Others

5. Income level of the persons.

a. Less than 1 lakh b. 1-5 Lakh c. 5-10 Lakh d. Above 10 Lakh

6. What according to you is attrition?

a. Resignations b. Terminations c. Employees leaving c. Others

7. What are the major reasons for quitting an organization?

a. No growth opportunity b. Compensation system

c. No good relations with managers d. Personal reasons

8. What could have been done to avoid attrition from a company?

a. Fair compensation b. challenging job c. Work style d. Recognition

9. Whether internal transfer process acts as one of the factor?

a. Yes b. No


84/85

10. Rank the following factors for non acceptance of offer letter?

a) Accepted offer from another employer.

b) Not able / willing to relocate

c) Not willing to commute long distances.

d) Personal Factors

11. According to you in which industry attrition is most?

a. IT/ITES b. FMCG c. Manufacturing d. Others

12. Do the management follow easy relieving procedure?

a. Yes b. No

13. What are the worst situations which lead to attrition in a company?

a. Groupism and politics b. No transparencyc. Heavy workload d. Problem with sub ordinates

14. Are u really satisfied with the existing retention practices?

a. Yes b. No

15. Is your feedback towards the higher level organization is heard?

a. Action taken b. just a formality c. Never heard

16. Are you achieving organization goal and your goal in same hand?

a. Yes b. No

17. Exit Interviews are needed in an Organization?

a) Strongly agree b) Agree c) Undecided d) Disagree e) Strongly disagree

18. Your Employer Exhibit Concern While Talking To You About The

Problem You Faced There.

a) Strongly agree b) Agree c) Undecided d) Disagree e) Strongly disagree

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


85/85

6.2 BIBLIOGRAPHY

www.google.com

www.citehr.com

www.managementparadise.com

www.coolavenues.com

www.financialexpress.com

economictimes.indiatimes.com

Author

name

Year Name of the

book

Edition Publisher Name Page

number

William

David

Taylor

1997 Exploring the

Causes and

Cures of

Missionary

Attrition

2nd

Revised

Edition

William Carry

Library

38

Trevor N.

Dupuy

1990 Forecasting

Battle Casualties

and Equipment

Losses in

Modern War

3rd

Edition

Hero Books 73 - 74
http://www.google.com/http://www.citehr.com/http://www.managementparadise.com/http://www.financialexpress.com/http://www.google.com/http://www.citehr.com/http://www.managementparadise.com/http://www.financialexpress.com/

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