a research study

8/9/2019 A Research Study

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INTRODUCTION

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 and never

leave.

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 coworkers, 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?

Major problem in industry is of attrition. Attrition is said to be "A reduction in the number of

employees through retirement, resignation or death" and attrition rate is said to be "the rate of

shrinkage in size or number"

The attrition rate has always been a sensitive issue for all organizations. Calculating

employee turnover rate is not that simple as it seems to be. No common formula can be used

by all the organizations. A formula had to be devised keeping in view the nature of the business and different job functions. Moreover, calculating attrition rate is not only about

devising a mathematical formula. It also has to take into account the root of the problem by

going back to the hiring stage.

There can be different reasons for attrition. During times when budgets are tight it¶s usually

not money that makes valued people stay with or leave a job for another opportunity. Data

suggests that employees who are planning to leave are most likely to do so for opportunities

that allow them to use and develop their skills ± or for opportunities in a company with strong

leadership.

While issues of "career growth" and "leadership" are major factors that drive attrition and

promote retention, there are important nuances related to occupation level and industry. For

instance:



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Among management-level employees, the key attrition drivers are such concerns as

"opportunities for management," "ability of top management," "use of skills and abilities" and

"work/family balance."

For professional-level employees, the key attrition drivers are concerns about "coaching andcounselling from one¶s supervisor," "company having a clear sense of direction" and "chance

to do interesting and challenging work." Among clerical employees, the key attrition drivers

are such concerns such as "type of work," "use of skills and abilities" and "opportunity to

learn new skills."

Attrition measures the amount of recurring revenue lost during a particular time frame,

expressed on a monthly/annualized basis. Attrition can be measured in many different ways.

The nomenclature used to describe the measurement tool and methodology can vary widely.

Gross attrition is the absolute of customer losses without the inclusion of any offset or

reduction activity such as price increases, acquisition RMR or other ³add backs´ to the

customer base. Net attrition is the result of offsetting ³like customer´ gains from the gross

attrition losses within both residential and commercial markets, there are various types of

companies that utilize different marketing strategies, which ultimately tend to yield different

³built in´ averages of attrition by channel. In the residential market there are the traditional

security installation companies versus high-volume companies. As for the commercial

market, there is the traditional outright sale versus the leased system. On average, there are

industry ranges for net attrition.

Before determining the appropriate method of measuring attrition, we need to know what is

³in´ and ³out´ of each company¶s calculations. The measuring of customer losses on a gross

basis seeks to identify customer losses regardless of what actions caused the loss and what

actions were taken to mitigate or reduce those losses. Gross attrition is the purest of the

measurement tools, as it doesn¶t allow for any qualitative decisions or processes to obfuscate

the loss. Net attrition seeks to measure the qualitative impact of management¶s effort to

control and minimize customer losses. There is a fine philosophical/cost assessment line

between including ³like customer´ re-signs as an offset to gross attrition versus as part of the

³cost to create a new customer´.



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Formula to calculate attrition rate

ATTRITION RATE = ((No. Of Attritions x 100) / (Actual Employees + New Joined)) /100.

Example:

1) Actual Employees (Opening BAL) - 150

2) No. Of people left (Attritions) - 20

3) No. Of Joined - 25

So according to the formula: ((20 x 100) / (150 + 25)) / 100

Which comes to 0.1142 i.e. 11%

Now as you had 150 previously and now 25 joined so it makes 150 + 25 =175

Now if you calculate 11.42% of 175 i.e. 175 x 0.1142 = 20

Which clearly shows that 175 ± 20 = 155, which is your current headcount and at the same

time you can say my attrition is 11.42%.

That shows you lost 20 employees of 150 and 25 more joined which makes count to 175.

FACTORS AFFECTING ATTRITION

There are various factors that affect an individual¶s decision to leave a job. While an

employee¶s leaving the job is considered attrition by one organization, it is looked at as talent

acquisition by the new organization and to the individual it means a career move, economic

growth and enhanced quality of life/convenience or closeness to family etc. Hence, what is a

problem for one may be an opportunity for another.

This research study examines the key reasons for attrition and explores µwhat enhances

retention¶ as well as outlines some of the factors that can control attrition. There are various

reasons why people leave their current job. These reasons may vary from individual to

individual and when data are collected from a large number of individuals leaving or who

have left an organization, some consistencies may be observed-providing more insights as to

why people leave in large numbers.



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If these are controllable-one attempts to control. If these are not within the control of the

organization, the organization should prepare itself for managing attrition.

Managing attrition does not mean reducing attrition only. It could also mean bringing down

the negative effects of attrition and increasing the positive effects of attrition.T

o increase the positive effects of attrition and reduce the negative effects, appropriate retention and capacity

utilization or talent utilization tactics should be used. Today when a person leaves it causes a

lot of disturbances in the organization. If it is a small organization the disturbance is even

greater. Hence it is important to understand and manage attrition. There can be various

reasons for people leaving their current jobs.

Some of these include:

FACTORS AFFECTING ATTRITION

INDIVIDUAL ORGANISATIONAL

Role Related

OTHERS

Peer pressure

Environment

Ambitions/Career

aspirations

Parental/Family

mobility

Personality factors

No challenge

No learning

Style of boss

Role clarity

Culture

Growth and

career paths

Pay packets

FIGURE1.1:- FACTORS AFFECTING ATTRITION



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Ambitions or Career Aspirations: It is but natural in a growing society and growing economy

that employees at all levels aspire to build their career. There are economic aspirations,

professional aspirations, family aspirations and all kinds of aspirations and ambitions that

affect a person¶s desire to move. It is rare not to have such career aspirations. In the past,

organizations grew at a pace and stability and individuals mostly saw their career in the

current organization and stuck to the same. Now days either organizations don¶t grow at the

pace at which the individual career aspirations grow or other organizations grow at a pace

that matches the individual causing individuals to move. When you treat all the world as a

large space for growth and building a career, it is futile for any organization to all the time

compete with the rest of the world and try to provide careers for all the employees at the same

pace at which the entire world or the best of the organizations in the world is moving. It is

better to appreciate the growth and mobility and movement of the mind and take attrition as a

natural phenomenon than to be agitated about it and have sleepless nights. However, if the

organization can do something to create new opportunities, that meet the growing aspirations

of competent people, it should certainly be attempted. However, such attempts require correct

diagnosis of the situation.

Comparisons and Equity Considerations: Comparisons with peers or classmates from the

same college, batch, age group, organization, first job, city, etc. there are numerous

dimensions on which similarities can be picked up and compared. Individuals today are

flooded with such comparisons. Business magazines, compensation surveys by consultants

and MNC companies have only aggravated this situation and enhanced comparisons.

Organizations in their zeal to compete with one another in the market places commission

such compensation surveys and further fuel the situation instead of controlling it.

Unfortunately some of these organizations have to suffer the consequence of what they have

created in their hay days.

Parental and family mobility; Sometimes the desire to be with the closed ones also pushes the

person to move. Although we have largely moved away from the joint family concept, thereare still strong affiliations and affections. Need for being close with the family, spouse,

children, parents etc. at different stages of one¶s life to fulfil different types of affiliation

needs prompt a few people to leave their jobs and move from one city to another.



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Personality factors: Some people have a high need for variety. They get bored and fatigued

easily. They need to change their job or what they are doing at periodic intervals. Otherwise

they are restless and create morale problems with others working with them. They waste

others time discussing organizational politics and polluting the atmosphere. Some people are

constantly searching and seeking. They are highly ambitious and restless. They are highly

achievement driven and want to achieve new heights in the shortest time. They have either

been socialized so or fulfil their own power or other motives. Some may have a different

motivation or value profile which may not be matched by the current job or the company and

hence the decision to leave.

Job related factors: The job related factors that cause the decision to leave are many these

include the following:

1. Inability to use ones¶ competencies

2. Lack of challenge

3. Boss and his styles

4. Lack of scope for growth in terms of position¶ salary, status and other factors

5. Role clarity

6. Job Stress or role stress or role stagnation

7. Lack of independence or freedom and autonomy

8. Lack of learning opportunities

9. Lack of excitement and innovation, novelty etc. in the job

These factors may be intrinsic and job related or extrinsic and job related or job chemistry

related. Intrinsic factors are the factors related to the characteristic of the job. These are in

plenty in BPOs where the work conditions (night work, work at odd hours, the nature of

clients to deal with, etc) pose difficulties.

Extrinsic factors are factors like role clarity, independence and autonomy, bad boss, wrong

chemistry of the team, work conditions that can be changed easily, lack of respect shown to

the individuals, etc. A large number of the extrinsic factors can be controlled.

Economic Factors: this deal with the aspirations in relation to salary and perks, housing,

quality of living, need for savings etc.



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In addition to these there could be many other factors that affect decisions:

Mobility of partner

Fatigue

Family reasons like having to look after old parents

Closeness to kith and kin ROI in education

Factors affecting Individual decision to leave:

The factors can be classified as the following:

1. Individual related factors

2. Role or job related factors

3. Organization related factors4. Professional factors

5. Societal factors including Peer pressure factors and socio-economic environment

related factors



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LITERATURE REVIEW

Attrition means a. reduction in the number of employees through retirement, resignation or

death. According to Sanjeev Sharma the toughest concern for an HR manager is however the

high attrition rate.

Causes of attrition

In a study on ³Reasons for attrition from occupational therapy´ the reasons why occupational

therapists have left the field of occupational therapy was examined. The purpose of the study

was to find ways to prevent attrition and to bring back those who have left the field as a

means to address the profession's personnel shortage. Questionnaires from 696 therapists who

have left the profession were analyzed. The therapists' most common reasons for leaving

were (a) childbearing and child rearing; (b) geographic relocation and subsequent inability to

find a job; (c) excessive paperwork; (d) desire for increased salary and promotional

opportunities; (e) high caseloads, stress, and burnout; (f) the actual practice of occupational

therapy not being what was expected; (g) dissatisfaction with bureaucracy; (h) the chronicity

and severity of the clients' illnesses; and (i) an inability to find part-time work. Most

therapists who left the profession did not return to practice because they felt professionally

out of date and unable to compete with younger therapists.

In emergency services, team stability and reliability in responders is essential to safely and

efficiently mitigate the variety of dangerous situations faced daily. Turnover of personnel can

definitely affect this although the effect may not be easily measurable. Many other

consequences are tangible as noted by Peter W. Ham and Rodger W. Griffith it Employee

Turnover .

The authors list separation costs, replacement costs and training costs that result when

Personnel separate. The first include exit interviews, administrative costs in records

adjustments, disbursement of unused vacations and more. The second item listed specifies

advertisements, personnel recruitment, application processes, entrance examinations,

interviews and so on. Number three above refers, among others, to concerns such as formal

orientation, formal occupational training and on the job training to develop proficiency.

In the book Recruitment, Retention and Employee Relations , D. Keith Denton contends



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that the problem of turnover should be addressed pro-actively. One of the most effective

ways of both recruiting and retaining employees is to be the employer of choice. Denton adds

that employees can be attracted and retained by offering them career opportunities, job

variety, responsibility, training and giving them a sense of ownership.

David L. Stum writing for the magazine Human Resource Focus expounds on the sense of

ownership when he speaks of a fearless culture and an organizational direction where

employees can comment openly about the status quo, even challenge it without fear of

retribution because they know where the organization is headed and how the employee fits in

and contributes to the chosen strategy.

Some in personnel management resort to reward plans to promote retention of employees.

The article, ³S even Dimensions of S uccessful Reward Plans,´ authors Jamie Hale and George

Bailey (1998) explains that workers are willing to invest their intelligence, talent and

creativity in support of the company strategy if they can expect a fair return. Many such

programs are used throughout the nation by departments. These include ³Fire-fighter of the

year,´ ³Outstanding fire-fighter award´ and more. Hale and Bailey authors of the above-

mentioned piece in Compensation and Benefits Review add that the greatest reward is the

work itself. Hale and Bailey add, ³At times a heartfelt µthank you¶ may be much more

appreciated than a cash reward . . .´

Any discussion of employee loyalty which, ideally, results in retention, must include the

Executive leadership¶s influence on the employees. In a 1993 study by Ethan Winning for his

book ³ Labour Pains: Employer and Employee Rights and Obligations, 77 percent of 121

employees surveyed reported that their sense of loyalty to the job decreased over a five-year

period (Selnow and Gilbert, 1997). Among reasons for this was that corporate leadership is

undermining employee loyalty in a variety of ways. Sixty-three of 900 large and mid-sized

companies surveyed used surveillance and monitoring procedures with and without the

knowledge of the employees. (Selnow, 1997) This did not sit well with the higher calibre,

productive worker who simply seeks to be the best he or she can be, nor did it inspire the

mediocre one to excel as this worker feared erring while under observation and

avoided trying any innovative approaches. In the fire service one must ask, ³In the use of the

Incident Command System, how many chiefs constantly monitor incidents by radio in order

to maintain control at the highest level? And, how does this affect the field commanders¶

performance and morale?´



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Ideal for improving retention and reducing attrition is the aligning of the goals of the

individual to those of the employer. Barbara M. McGuiness explains, in ³The Change in

Employee Loyalty,́ that today¶s younger generation places a higher value on personal

achievement over corporate goals they divert their loyalties inward. As already discussed, the

important values do not, necessarily include pay as a high priority. Still, Aon Consulting

Loyalty Institute¶s study on employee loyalty revealed that while 80% of the workers

surveyed would recommend theirs as the best place to work, 40% of this same group would

go elsewhere for a slight pay increase (McShulski, 1992).

Repeated throughout the literature review was the importance to the employee of family

issues and how their employment allows them the deal with these. In a recent survey US

West indicated that 80% of their employees dealt with family issues while on duty, 70% said

that balancing home and work was stressful and one-third of all employees had taken a day

off in the prior year due to some family concern. (McCormmick, 1992).

The answer to employee retention is simple, hire wisely, train well and, what is most

important, value the employee and let them know it (Franklin, 1997). The executive

leadership can demonstrate the value of the employee to the organization by setting high

expectations, communicating constantly, empowering, investing in employees¶ financial

security, giving recognition as often as possible, counselling people in their careers and

educating them (Brewer, 1995).

Every company strategies unique compensation and benefits plan to curb their employee

turnover figures. Some companies also have employee bonds that legally prohibit employees

from resigning for a specified period. Despite such measures, companies find people jumping

ship and as a result the company has to be embroiled in a number of litigations.

It is not just the loss of the employees that can be worrisome. Companies spend enormous

amounts of money in training employees. All the investment gets wiped out in one stroke.

Attrition shakes the very foundations of the organization structure. Often, when senior

managers resign, some dedicated subordinates also walk out in a show of solidarity along

with the manager. This can have a disturbing effect on the department.

Organizations waste a lot of time settling down their new employees and drafting new

procedures and policies. It is not OK to simply accept attrition levels as a way of life.

Attrition needs to be checked, and specific measures must be taken to pull the breaks on

attrition. HR managers should probe into the root causes of attrition and find creative

solutions to boost employees' interest in the company.



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One of the biggest cited reasons for resigning was: 'My boss is lousy'. Very often HR people

don't want to get into the messy details and hence shirk from finding out the real reasons of

failure. When there is a communication problem and employees don't feel 'heard out', there is

a risk of mass exodus. Look into the organization behaviour to probe into the trigger factor.

It is not worth losing your employees on flimsy grounds. Human capital is the most

remunerative resource of any organization in the long run. Companies should ensure that they

don't treat attrition figures as inconsequential records. Attrition levels can be brought down

provided the organization has the will to follow through.

Costs due to a person leaving

1. Calculate the cost of the person(s) who fills in while the position is vacant. Calculate

the cost of lost productivity at a minimum of 50% of the person's compensation and

benefits cost for each week the position is vacant, even if there are people performing

the work. Calculate the lost productivity at 100% if the position is completely vacant

for any period of time.

2. Calculate the cost of conducting an exit interview to include the time of the person

conducting the interview, the time of the person leaving, the administrative costs of

stopping payroll, benefit deductions, benefit enrolments.

3. Calculate the cost of the manager who has to understand what work remains, and how

to cover that work until a replacement is found.

4. Calculate the cost of training your company has invested in this employee who is

leaving.

5. Calculate the impact on departmental productivity because the person is leaving. Who

will pick up the work, whose work will suffer, what departmental deadlines will not

be met or delivered late.

6. Calculate the cost of lost knowledge, skills and contacts that the person who is leaving

is taking with them out of your door. Use a formula of 50% of the person's annual

salary for one year of service, increasing each year of service by 10%.

7. Subtract the cost of the person who is leaving for the amount of time the position is

vacant.



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Recruitment Costs

1. The cost of advertisements; agency costs; employee referral costs; internet posting

costs.

2. T

he cost of the internal recruiter's time to understand the position requirements,develop and implement a sourcing strategy, review candidates backgrounds, prepare

for interviews, conduct interviews, prepare candidate assessments, conduct reference

checks, make the employment offer and notify unsuccessful candidates. This can

range from a minimum of 30 hours to over 100 hours per position.

3. Calculate the cost of the various candidate pre-employment tests to help assess

candidates' skills, abilities, aptitude, attitude, values and behaviours.

Training Costs

1. Calculate the cost of orientation in terms of the new person's salary and the cost of the

person who conducts the orientation. Also include the cost of orientation materials.

2. Calculate the cost of departmental training as the actual development and delivery

cost plus the cost of the salary of the new employee. Note that the cost will be

significantly higher for some positions such as sales representatives and call center

agents who require 4 - 6 weeks or more of classroom training.

3. Calculate the cost of the person(s) who conduct the training.

4. Calculate the cost of various training materials needed including company or product

manuals, computer or other technology equipment used in the delivery of training.

Lost Productivity Costs

As the new employee is learning the new job, the company policies and practices, etc. they

are not fully productive. Use the following guidelines to calculate the cost of this lost

productivity:

1. Upon completion of whatever training is provided, the employee is contributing at a

25% productivity level for the first 2 - 4 weeks. The cost therefore is 75% of the new

employee¶s full salary during that time period.

2. During weeks 5 - 12, the employee is contributing at a 50% productivity level. The

cost is therefore 50% of full salary during that time period.



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3. During weeks 13 - 20, the employee is contributing at a 75% productivity level. The

cost is therefore 25% of full salary during that time period.

4. Calculate the cost of mistakes the new employee makes during this elongated

indoctrination period.

New Hire Costs

1. Calculate the cost of bring the new person on board including the cost to put the

person on the payroll, establish computer and security passwords and identification

cards, telephone hook ups, cost of establishing email accounts, or leasing other

equipment such as cell phones, automobiles.

2. Calculate the cost of a manager's time spent developing trust and building confidence

in the new employee's work.

Lost Sales Costs

1. Calculate the revenue per employee by dividing total company revenue by the average

number of employees in a given year. Whether an employee contributes directly or

indirectly to the generation of revenue, their purpose is to provide some defined set of

responsibilities that are necessary to the generation of revenue. Calculate the lost

revenue by multiplying the number of weeks the position is vacant by the average

weekly revenue per employee.

Various sectors

The problem of attrition not just plagues the IT industry. Several other industries have

reported in high employee turnover. Pharmaceuticals, call centres, media and

communications businesses have all been suffering from growing employee turnover.



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Source: file:///C:/Users/hp/MBA/RM/attrition-rates-in-different-sectors.html

FIGURE 2.1:- ATTRITION RATES IN DIFFERENT SECTORS



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0% 20% 40% 60% 80% 100%

Us

¡ ¢ assess£ e ¡ ¤ tools for hiring

Improving ne¥ hire training and

nesting

Increasing training and

communications

Implementing supervisor-agent

coaching

Improving/Creating mentoring

Programs

Focusing on career growth

oppurtunities

Incresed salary

Very eff ective

Eff ective

Somewhat eff ective

¦ ot very eff ective

§ ot eff ective at all

Method not in use

Method effectiveness against attrition

FIGURE 2.2:- ME ̈

H©

EFFECTIVE ESS AGAINST ATTRITION



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RESEARCH METHODOLOGY

PROBLEM IDE NTIFICATION

Defining attrition: "A reduction in the number of employees through retirement, resignation

or death"

Defining Attrition rate: "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 and never

leave.

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 coworkers, 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?

Major problem in industry is of attrition. The attrition rate has always been a sensitive issue

for all organizations. Calculating employee turnover rate is not that simple as it seems to be.

No common formula can be used by all the organizations. A formula had to be devised

keeping in view the nature of the business and different job functions. Moreover, calculating

attrition rate is not only about devising a mathematical formula. It also has to take into

account the root of the problem by going back to the hiring stage.

There can be different reasons for attrition. During times when budgets are tight it¶s usually

not money that makes valued people stay with or leave a job for another opportunity. Data

suggests that employees who are planning to leave are most likely to do so for opportunities

that allow them to use and develop their skills ± or for opportunities in a company with strong

leadership.

While issues of "career growth" and "leadership" are major factors that drive attrition and

promote retention, there are important nuances related to occupation level and industry. For

instance:



17

Among management level employees, t e key att ition dr ivers are such concerns as

"oppor tunities for management," "ability of top management," "use of sk ills and abilities" and

" ork /family balance."

For professional level employees, the key attr ition dr ivers are concerns about "coaching and

counselling from one¶s supervisor," "company having a clear sense of direction"and "chance

to do interesting and challenging work."

Among cler ical employees, the key attr ition dr ivers are such concerns such as "type of work,"

"use of sk ills and abilities" and "oppor tunity to learn new sk ills."

Impact of attrition on achieving goals

Gets in the

way f success

70%

Has little

effect n

success 13%

D esn't effect

success at all 2%

Maj r reas n f r

lack f success

FIGURE 3.1:- IMPACT OF ATTRITION



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OBJECTIVES AND HYPOTHESIS

CONCEPT AND CONSTRUCT:

Concepts are abstract ideas which have been "defined" according to particular characteristics

or generalizations (constructs) about them. A construct is based on concepts, or can be

thought of as a conceptual model that has measurable aspects. This will allow the researcher

to "measure" the concept and have a common acceptable platform when other researches do a

similar research. Concept is general notation, abstract ideas. Construct is a make by fitting

together; build; things constructed; especially by the mind.

In our research Construct is Business Organisations and Concept is Factors Kindling Attrition



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R ESEARCH DESIGN

The formidable problem that follows the task of defining the research problem is the

preparation of the design of the research project, popularly known as the ³research design.´

Decisions regarding what, where, when, how much, by what means concerning an enquiry or

a research study constitute a research design. ³A 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. The research design is the conceptual

structure within which research is conducted; it constitutes the blueprint for the collection,

measurement and analysis of data.

The type of research designs are

1. Research design in case of exploratory research studies;2. Research design in case of descriptive and diagnostic research studies;

3. Research design in case of hypothesis-testing research studies.

The research design that we are dealing with is descriptive type of research study. Descriptive

research studies are concerned with describing the characteristic of a particular individual, or

a group. Examples of descriptive research design are studies concerned with specific

predictions, with narration of facts and characteristics concerning individual, group or

situation. In our research we defined clearly that we want to study factors causing attrition in

the business organization. The population which we concerned was people working service

sectors. We obtained complete and accurate information for our study. The research design

have enough provision for protection against bias and maximize reliability, with due concern

for the economical completion of the research study. The design is rigid and not flexible and

focuses attention on the following:

a. Formulation the objective of the study (what the study is about and why is it being made?)

b. Designing the method of data collection (what techniques of gathering data will be

adopted?

c. Selecting the sample (how much material will be needed?)

d. Collecting the data (where can the required data be found and with what time period

should the data is related?)

e. Processing and analyzing the data

f. Reporting the finding



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Research design Descriptive research design

Overall design Rigid design (design must make enough

provision for protection against bias and

must maximize reliability)

i. Sampling design Probability sampling design (random

sampling)

ii. Statistical design Pre-planned design for analysis

iii. Observational design Structured or well thought out instruments

for

collection of data

iv. Operational design Advanced decisions about operational

procedures.

METHOD OF DATA COLLECTION

Collection of data was done through questionnaire. This method of data collection is quiet

popular, particular in case of big enquiries. It is being adopted by private individuals,

research workers, private and public organizations and even by governments. A questionnaire

consists of a number of questions printed or typed in a definite order on a form or set of

forms. We personally approached the respondents and asked them to carefully go through thequestionnaire and fill the same according to their responses.

The method of collecting the data by questionnaires to respondents is most extensively

employed in various economic and business surveys. The merits of this method are as

follows:

1. There is low cost even when the universe is largely and is widely spread geographically.

2. It is free from the bias of the interviewer; answers are in respondents own words.

3. Respondents have adequate time to give well thought out answers.4. Respondents, who are not easily approachable, can also be reached conveniently.

5. Large samples can be made use of and thus the results can be made more dependable and

reliable.



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The main demerits of this system can also be listed here:

1. It can be used only when respondents are educated and co-operating.

2. The control over questionnaire may be lost once it is sent.

3. There is inbuilt inflexibility because of the difficulty of amending the approach once

Questionnaire has been dispatched.

4. There is also the possibility of ambiguous replies or omission of replies altogether to

certain questions; interpretation of omissions is difficult.

5. It is difficult to know whether willing respondents are truly representative.

6. This method is likely to be the slowest of all.

Sampling technique:

Our research involved deliberate sampling technique. It is also known as purposive or non-

probability sampling. This sampling method involves purposive or deliberate selection of

particular units of the universe for constituting a sample which represents the universe.

Non-probability sampling: Non probability sampling is that sampling procedure which does

not afford any basis for estimating the probability that each item in the population has of

being included in the sample.

Under non-probability sampling the particular units of the universe are selected for

constituting a sample on the basis that the small mass will be representative of the whole. In

such a design, personal element has a great chance of entering into the selection of the

sample.

YULE¶S COEFFICIE NT OF ASSOCIATION

This is the most popular method which determines not only the nature but also the degree or

extent of association between the two attributes. Yule¶s coefficient (Q) is given by,

Q= [(AB) (ab)-(Ab) (aB)]/ [(AB) (ab) + (Ab) (aB)]

NOTE: - (-1<= Q <= +1), there is perfect positive association, if Q=-1 there is perfect

negative association (i.e. perfect dissociation), if Q=0, the two attributes are independent and

if Q=+1 there is perfect positive association (i.e. perfect association). This coefficient is

independent of the relative proportions of A¶s and a¶s in the data



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FINDINGS AND SUGGESTIONS

BETTER OPPOR TUNITY

Majority of the sample size was found to quit their organizations for better

opportunity somewhere else but better opportunity varied with people with different

numbers of years of experience.

y Finding:-

It was found that for people with less than five years of work experience

better opportunity was higher education. It is usually found that people with

some working experience opting for higher education tend to do well with

their higher studies as otherwise.

y Suggestion:-

The organisation on their part can encourage higher education among their

employees by partly funding their education.

Assuring them a job after completion of their higher education.

They can also encourage the employees to go for correspondence courses.

Additional weekly offs can be given to the employees opting for the

correspondence courses.

y Finding: -

It was found that people with work experience between 5-15 years looked

for better opportunities to work due to workload and conflicts in their existing

organization. It was found that apart from being individual reasons many

respondents¶ checked both the options simultaneously which indicates that

increase in workload leads to increase to in conflicts in the organizations.

y Suggestions:-

Counsel the employees

Take strict action against the problem creating employees.

Transfer some employees to a new department.



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To reduce the stress levels of the employees the organisations should take

appropriate measures to provide recreational facilities to keep employees

fresh and motivated.

Efficient distribution of the workload by forming teams.

y Finding: -

For majority of the people with work experience greater than 15 years

better opportunity invariably meant a higher post in some other organisation.

As higher post bought along with them higher financial and administrative

powers.

y Suggestion:-

The organizations can retain their employees by initiating a practice of

periodic increase in salary packages of the employees and their

administrative powers.

DISAGR EEME NT WITH OFFICE POLICIES

y Finding:

11.4% of the respondents were found to disagree with the office policies.

y Suggestion:

A survey should be conducted by the organisations to find out whether

their workforce was content with the office policies if that was not found

to be the case then, the management should take steps to review its

policies, as a discontented workforce will not be motivated enough to put

in their best efforts.

If only few people are unhappy then they should be made to understand

the rationale behind the office policies.

LACK OF CO-OPERATION

y Finding:

9.5% of the respondents left their organisation due to lack of co-operation at

their workplace.

y Suggestion:



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People should be grouped into teams and efficient work distribution should

be done.

The employees should be made to understand that if they do not co-operate

then it ultimately affects the work in turn the organisation and ultimately

the workforce itself

Feedback should be taken from the employees

If there exists any difference of opinion among the employee¶s steps

should be taken by the management to resolve the issues.

The management should give an ear to problems faced by the employees

and help them overcome these issues in the most effective and efficient

manner.

NO GROWTH IN THE ORGANISATION

y Finding: -

21% of the people left their job because they felt their growth was seized in

the organisation.

y Suggestion: -

Have an interaction with the employee and figure out the aspect of growth

being talked about and provide suitable remedies such as allocating

different kinds of projects etc.

MARRIAGE AND PR EGNANCY

y Finding: -

8.6% of the respondents left their job because of household problems namely

marriage, pregnancy.

y Suggestions: -

Maternity leave should be extended and leave without pay can be granted.

HIGHER POST

y Finding: -

For majority of the people with work experience greater than 15 years

better opportunity invariably meant a higher post in some other organisation.



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As higher post bought along with them higher financial and administrative

powers.

y Suggestion:-

The organizations can retain their employees by initiating a practice of

periodic increase in salary packages of the employees and their

administrative powers.

FUTUR E OF THE ORGANIZATION

y Finding:-

6.7% of the people left their job as they felt that the future of the organization

was uncertain.

y Suggestion:

The management should conduct exit interview, if future of the

organisation was found to be a reason then one of the member of senior

management level should have a one-on-one talk with the employee and

put his/her fears to rest.

HOUSEHOLD PROBLEMS

y Finding:-

6.7% of the responses were that left their jobs due to household problems,

females chose this option more as compared to the male counterparts. This

problem arose especially after marriage and pregnancy

y Suggestion: -

The company should provide little flexible timing if it is possible.

If managing children is a problem, and there are a large number of females

working in the organization then a crèche or a babysitting service can be

provided,

Get together can be kept for families so that families get to know each

other, there might be chances of decrease in household problems.

LACK OF LIKING FOR THE JOB

y Finding: -

5.7% of the people left their job due to Lack of liking of the job



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y Suggestion: -

If the employee¶s true vocation is in some other department within the same

company then the employee should be shifted to that department.

If the employee is in such a field which he/she does not enjoy and is in that

field due to some compulsion then in such cases the organisation cannot do

anything it should in fact motivate the employee to find his true vocation.

SALARY

y Finding: -

4.8% of the responses constituted salary as a reason for leaving the job

y Suggestion: -

Performance Evaluation should be conducted on a regular basis and if an

employee has done well then he should be given adequate incentive for that

There should be a certain increment in the salary every year.

Bonus should be paid on a regular basis.

If there is a case that the company is enjoying a good share of profit in a

particular year then it should share a generous amount of profit with the

employees.

VALUED PAR T OF THE ORGANISATION

y Finding: -

3.8% of the responses said that they left the organisation as they did not feel a

valued part of the organisation

y Suggestion:-

Either everyday or at least twice in a week meetings should be conducted for

every department or every shop floor level, apart from discussing whether set

targets have been met, employees should be allowed to voice their grievances

and best effort should be taken by immediate supervisor to solve the problem.

The supervisor should take some time and praise the employees and motivate

them



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ORGANISATION ATMOSPHER E

y Finding: -

2.9% of the responses were due to atmosphere in the organisation

y Suggestion: -

Small but effective steps can be taken by the organisation, celebrating

birthdays, festivals; milestones achieved by the company can greatly improve

the atmosphere in the organisation.

A feeling of positive energy can be instilled by having some recreational

facilities like yoga, art of living, meditational centers.

CONSTANT SUPERVISION

y Finding: -

Though scant but a few reasons of people leaving their jobs is due to constant

supervision

y Suggestion:

It should be realized by the organisation that supervision is required in the

right measure. Too much of supervision causes irritation in the employees; the

employees hired by the organisation are well qualified.

MAXIMS FOR R ETE NTION

Insight from years of employee surveys has yielded "truisms" for management regarding

attitudes and approaches that are proven to fend off attrition and build employee loyalty and

engagement. They include:

1. Fostering a Culture of Management Concern ± Companies today are too often sending a

message to employees that ³you are in charge of your own career; we will not go out of our

way

to help you develop.´ Management must show an interest in helping people develop to their

fullest potential.

2. Providing R elevant Training, And Early On ± Companies should think of training as

career development, and be sure it¶s relevant to an employee¶s job and offered early in a

worker¶s

career.



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3. Permitting Job Enlargement ± Don¶t lock people into positions because they¶re ³so good

at it.´ Managers must continually ask: ³What¶s the next step for this employee?´

4. Walking the Talk ± Having a strong strategic vision and communicating it to employees

is not enough to guarantee high retention. Behavior must be consistent with strategy.

5. R ewarding Managers Also On People Skills ± Many companies say they value people

and train their management team to cope with people issues. Yet these same managers are too

often rewarded solely on their technical skills and financial results.

6. Strengthening the Management Team ± According to one expert: "People don¶t leave

jobs, they leave bosses." Marginal performers in management must be weeded out.



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CONTRIBUTION

While organizations lament the challenges that they have to constantly encounter as aconsequence of employee turnover, the truth is that all attrition is actually not detrimental for

an organization. It is in fact a myth that every time an employee walks out of the door, the

organization suffers. Some attrition is desirable and necessary for organizational growth and

development. The point is how to differentiate between what is commonly known as ³good

attrition´ from ³bad attrition´. It is a thin line, which is not always easy to understand.

We did a survey to find the causes, impacts towards the organization and society and how it

can be controlled. It benefits an organization when certain employees leave, whose

continuation of service would have negatively impacted productivity and profitability of the

company. There are also some people who have a negative and demoralizing influence on the

work culture and team spirit. This, in the long-term, is detrimental to organizational health.

On the contrary, when the departure of certain employees creates a setback (most often

temporary) in terms of work continuity and progress, is commonly considered bad attrition.

The time and investment lost in hiring and developing these people along with the cost of

finding a replacement and bringing him up to the productivity level, all come at a high price.

The term ³healthy attrition´ is used to signify the importance of less productive employees

voluntarily leaving the organization. In the performance analysis of the ones who have left, if

the proportion of high performers leaving is higher, the attrition is not good or healthy. Plain

numbers and attrition figures do not signify anything without a deeper analysis

Desirable attrition also includes termination of employees with whom the organization does

not want to continue a relationship. It can be through resignation or by employer, a few

advantages:

y Removes bottleneck in the progress of the company

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

y Helps planting ³ambassadors´ in the ecosystem who can have a positive impact on the

growth of the organization

y Assists in evolving high performance teams



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IMPACT OF ATTRITION

y Direct impact: A high attrition indicates the failure on the company¶s ability to set

effective HR priorities. Clients and business get affected and the company¶s internal

strengths and weaknesses get highlighted. New hires need to be constantly added,

further costs in training them, getting them aligned to the company culture, etc.,²all

a challenge.

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

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

high attrition also leads to a chronic or systemic cycle²attrition brings decreased

productivity, people leave causing others to work harder and this contributes to more

attrition. All this has a significant impact on the company¶s strength in managing their

business in a competitive environment

ANALYZING THE IMPACT

y Productivity and profitability are both impacted, either negatively and positively,

according to the type of attrition. Even good attrition is indicative of loss asrecruitment is a time consuming and costly affair. ³It is tantamount to investment that

has gone astray. Having said that, good attrition minimizes the adverse impact on business while bad attrition accentuates the loss,´ stated Nair. The cost of hiring is

sometimes not less than two to three times the salary of the employee.

y The impact on work progress is tremendous, particularly if a project is underway and

one of the key people leaves. ³It leads to dip in entire organizational efficiency, and a

lot depends on how it is able to cover the setback,´ pointed out Rao.

y Organizations should execute top of the line retention policies in the right earnest and

consistency. They should be more employee-centered and look for further ways to

³bond´ employees to their companies. ³Company performance is optimally aligned to

the skills its employees possess.

It is very important to know and understand as to why people decide to leave theorganization. Is it a certain discontent in any area that is forcing them to take this drastic step?

Because in that case it might grow to an extreme level within the other members and peers as

well.

Secondly, money is not the only issue when members within the organization look for a

change. Also, job dissatisfaction and stagnation are the key issues that may prompt anemployee within the organization to look for an opportunity. Mentoring and career planning

opportunities have played a major role in controlling attrition rates, as also job rotation

wherein the interests and strengths of the employees are taken care of. The only fact being

that there should always prevail a sense of ownership and job satisfaction amongst all. Once

the sense of ownership & job satisfaction is achieved, the employees also get an opportunity

to set right their goals and objectives in line with the career objectives. The organization can

then look forward to providing right opportunities to the right employees at the right time.



Once the employees are clear on the career path, then attrition can be controlled to much anextent. As well, with career planning and mentoring, attrition rates can definitely be

controlled. Also, an environment that gives an employee an opportunity to learn are essentialin any organization development activity since any individual at any point of time is in a

learning process and hates tasks that are too monotonous and behind the present strategies

and technologies implemented by other organizations.

Last, the performance of each member has to be given due credit since any human always

craves for appreciation. Since, it is this where the employee derives the sense of security and

also a satisfaction of being an integral part of within the organization.

LIMITATIONS

1. The sample size was small.

2. Less number of female respondents.

3. Less number of people with work experience more than 10 years.

4. Some reasons for attrition such as marriage, future of organization, lack of liking for

the job cannot be controlled.

a research study

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