bishnupriya baral project on hr

7/30/2019 Bishnupriya Baral Project on Hr

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Submitted in partial fulfillment for the requirement of the MBA degreeawarded byBiju Patnaik University of Technology

Submitted by:Name: Bishnupriya Baral

Reg. No.:0906276033

Under the guidance ofMr. Parashar Das

HR Faculty (BRMIMIT)

BRM INSTITUTE OF MANAGEMENT AND INFORMATION TECHNOLOGY

PUBASASAN, KOUSALYA GANGA. BHUBANESWAR


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CONTENT

1.Executive Summary

2.A brief Introduction about Topic

3.Company profile

4.Literature survey

5.Objectives & Research methodology

6.Data analysis and interpretation

7.Findings

8.Conclusion & Suggestion

9.Bibliography & Annexure


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EXECUTIVE SUMMARY

In the growing global competition, the productivity of any business concern dependsupon behavioral aspects consumers. This topic deals with the managers feedback

towards Attrition.

I am doing this project in to gain practical experience in coordinations with the

theoretical knowledge & its correlation with practice. It also helps to have concreteknowledge about human resource development.

A. To gain practical knowledge about the attrition rate infinancial sectors.

B. To know the cause behind the attrition by building a structured retentionplan.

Attrition may be defined as gradual reduction in membership or personal as throughretirement, resignation or death.

In other words attrition can be defined as the number of employees leaving theorganization which include both voluntary and in voluntary separation. The employeegradually reduces his/her ties with the company than crib about the underlying factorcausing attrition. It is symptomatic of a much deeper malaise that cuts deeper into the

innards of organization. Attrition is rife across the corporate landscape in India Today.Attrition rates vary from section to section and industry to industry.

Attrition is not a new phenomenon. It has existed all along. In earlier times, jobs werefew and the evolution of technology was excruciating by low. In 1980s and early 1990s

people still believed in shibboleths like jobs-for-life and a career within a company.

But in the late 1990s, the pendulum started swinging wildly. The unspoken, writtenlakshman rekha between employer and employee got irretrievably broken.Corporate culture was in the cusp of major transformation. Companies in their bidto rest riuture the operations and reduce the bloating workforce took to slash and

burn business practices with diabolic vengeance. Employees got the deafening

message that no one is indispensable and doing a good job is not a protection

enough.


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By 2000, the basic covenant governing employer and employee got turned onits head. Employees emerged as free agents and corporate vagabonds focused moreon boosting their employability and the attendant gain tan becoming sensitive toemployers concerns and triumphs.

For controlling of attrition company should consider most in these following

factors. Reward and recognition Organizational culture Proper promotion policy


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I ntroduction to Topic


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INTRODUCTION TO TOPIC

Attrition is not a new phenomenon. It has existed all along. In earlier

times, jobs were few and the evolution of technology was excruciating by low. In1980s and early 1990s people still believed in shibboleths like jobs-for-life and a

career within a company.

But in the late 1990s, the pendulum started swinging wildly. The unspoken, written

lakshman rekha between employer and employee got irretrievably broken. Corporate

culture was in the cusp of major transformation. Companies in their bid to rest riuture

the operations and reduce the bloating workforce took to slash and burn business

practices with diabolic vengeance. Employees got the deafening message that no one is

indispensable and doing a good job is not a protection enough.

By 2000, the basic covenant governing employer and employee got turned on

its head. Employees emerged as free agents and corporate vagabonds focused more

on boosting their employability and the attendant gain tan becoming sensitive to

employers concerns and triumphs.

Around the same time, Indias IT and ITES industry scripted a fantastic

story and needless to say much of its competitive advantage hinged on its vast, high

quality, cost effective and knowledgeable base of its workers. Clearly, India emerged asa magnet for overseas software clients by virtue of its vast pool of talented manpower.

At one level the skilled employee is at premium. At another level, an attrition level is

showing.

Now a day its a burning topic and to find out the cause why attrition rate is

increasing day by day for tat I have chosen this topic for my project.

Scope:

To know the level of attrition rate and the cause behind it. To control the attrition bybuilding a structured retention plan.

Purpose:


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As we know attrition is a burning topic and most people are not well aware of it.

To give them a clear picture of attrition and attrition rate and what is the cause

behind it.

It is also beneficial and gives clear idea to the students who want to do a project

on attrition. It helps us to know in which sector the attrition rate is high.

Problem/Cause:

Attrition rate is increasing day by day and its a big headache for the employers.

Employees quit an organization for several reasons. They may get attracted to a new job

or for better prospect which pulls them on the other hand disappointment in their present

job they are pushed to seek alternative employment. Sometimes it may be a mixture of

both pull and push factions. The attrition may be caused due to both internal and

external factors. Internal factors include partisan and/or authoritative behavior of theimmediate boss, feeling of role or career stagnation , managements hypocrisy in

handling employee grievances, back-dated policies and procedures, strenuous job profile

etc. the external factors include the growing employability due to the advent of

multinational players with the promise of fat pay package.


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Company prof i le


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Company Profile

2.1 ADECCO GLOBAL :

Adecco S.A. is ranked 265 in Fortune Global 500 List of Companies and the global

leader in HR Solution with a Turnover of 27.4 Billion Euros in the year 2007.Adecco

was created in 1996 The Adecco Group network connects over 700,000 associates with

business clients each day through its network of over 37,000 employees and 7,000

offices in over 70 countries and territories around the world, having more than 150,000

Client served every day. Registered in Switzerland, and managed by a multinational

team with expertise in markets spanning the globe, the Adecco Group delivers an

unparalleled range of flexible staffing and career resources to corporate clients and

qualified associates. Adecco S.A. is registered in Switzerland and listed on the SwissStock Exchange with trading on Virt-x (SWX/VIRT-X: ADEN), the New York Stock

Exchange (NYSE:ADO) and Euronext Paris - Premier March (EURONEXT: ADE).

3

1957 1964 1996 1997 ... 1999...... 2000 ... 2004

Adia was founded

Ecco was founded

Number 1 worl dwide fol lowing Adia + Ecco merger

+ TAD

+ Career Staff + Delphi

Adecco + Olsten merger

+ PeopleOne!

MCH F 128 M CH F 395

MCHF 2598

MCHF 570

The genesis of a world leader


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Adia a Switzerland Personnel Service Company was formed in the year 1957 and

Ecco, the French Company was created in the year 1964. And these two leading

personnel services firms with complimentary geographical profiles were merged and

Adeccowas created in 1996. Then there took series of mergers with different HR

Outsourcing companies in the successive years and in 2004 it enters the Indian HROutsourcing industry with the takeover of Peopleone, the Indian HR Outsourcing

Company, there by forming Adecco Peopleone having its Indian headquarter in

Bangalore.

2.2 ADECCO INDIA:

Adecco India, Headquartered in Bangalore, is a leading end-to-end HR Solution

Company with a focus on executive search, Recruitment, Training & Learning and

Temporary Staffing Services to client organizations With a National Presence in 40

4

1,800

1,6001,500

827 800

319 264 253

Source: Bloomberg, company websites

Number of employees per company (000)

India

Rail

Wal-

Mart

US

postal

service

Adecco IBM NestleToyotaChina

Post

Adecco plays a major role in the global economy


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branches across India and the Middle East. Adecco is the fastest growing HR Company

in India.

Rapid growth with the largest company-owned branch network of 40.

Over 55000 associates on assignment everyday, Nationally

Distinguished list of clients across all segments

Placement of around 4000 candidates per month, across India.

Over 800 trained and specialized consultants to customize your HR Solutions.

Consistent investments in information Technology and Infrastructure to upgrade

service quality.

Global resources of Adecco complement local intelligence and delivery ability.

Domain expertise across specific industries;

Information Technology

IT Enabled Service

Telecom , Media & Entertainment

Engineering , Process & Infrastructure

Consumer Services & Retail

Banking , Financial Services & Insurance

2.3 PORTFOLIO OF ADECCOS SERVICES:

1. Recruitment Solutions:

Connecting great talent with great opportunities

Recruitment is a defining activity for both, companies as well as, candidates. For

companies, it sets the pace and creates the operational horsepower for growth. For

individuals, it defines the quality of life.

Adecco India, a market leader in specialist recruitment services, provides tailor- made

recruitment solutions across verticals, with a branch network that has extensive

geographic coverage in India.

As a corporate partner to clients, we source professionals with high intellectual

capabilities to help enhance the clients human capital on one hand, and on the other, we

help individuals optimise their career choices.

Why Adecco - Recruitment Solutions?


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Trust, confidentiality and dependability are our key values

Outstanding and trained Recruitment Consultants committed to delivering the

best

Our widespread geographic coverage and diversified portfolio of services

Automated Work Flow Management System that allows online and real-timematching of profiles with clients needs

Consultative approach with clients

Trustworthy and dependable association with candidates

Consistency in robust selection process

Recruitment at all levels in a client organisation

2. Staffing Solutions:

Permanent solutions for Temporary Staffing

People are the most powerful assets of a company and the ability to choose the right

people is most strategic for any company, today. Companies across the globe lay critical

emphasis on their human resources and in the process, newer methods have evolved to

enable them to get the right people for the right job at the right time.

Need to contain headcount, seasonal increase in business, need to lower employment

costs and demand for niche skill sets are some of the underlying reasons that have madecompanies opt for temp staffing. Today, HR Outsourcing, also known as Temporary

Staffing, has become a globally accepted norm.

The Staffing Solutions division of Adecco India is a leading provider of end to end

solutions in temporary staffing.

Service Offerings:-

Just-in-time recruitment Temporary to permanent recruitment

Complete Outplacement

Why Adecco - Staffing Solutions?

Quality just-in-time staff for all requirements


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Domain- specialist consultants with first-hand experience and knowledge of the

sectors they represent

Tailored solutions based on specific client requirements

Nation- wide presence

End-to-end back end support for clients Online HR-MIS access for clients and associates

Highly cost effective staffing solutions

Headcount flexibility

Statutory compliance

3. Training & Learning:

Enhancing learning through effective training

Adecco Learning is the training, development and learning division of Adecco India. It

is a single-point contact centre for all expertise related to learning. The Learning Group

benefits from the experience, infrastructure, and globally benchmarked training content

of Adecco whilst delivering high quality training to clients across India.

Adecco Learning is a strong propagator of Adult Learning Principles to improve:

Knowledge

Skills

Attitude of people

Why Adecco - Learning Solutions?

Nation-wide presence with 36 branches across India and therefore, a wider reach

Delivery StyleMaking Training Dynamic!

ConsultantsKey to Our Success!

Process Followed:


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Intervention Evaluation

4. Executive Search:

The power of options

Cornell International is a leading international executive search firm, headquartered in

the US. Cornell International is the only retained executive search firm with a fully

integrated set of recruiting solutions in middle-management, leadership and consulting.

With 23 partner offices in 16 countries, some of our major clients, globally, include

NASDAQ, Reuters, Bloomberg, Dow Jones, BNY Securities, Lynch Jones and Ryan.

Cornell International India with 3 offices located at Mumbai, New Delhi and Bangalore,

we are strategically located to service your Executive Talent needs. Our experienced and

sector-specialised search consultants have successfully completed searches at the CEO

and Board levels and across all functional disciplines. We have an enviable track record

in the Indian sub-continent for over two years, building leadership teams for corporate

clients. Our familiarity and in-depth knowledge of the industrys latest developments,

operations, key executives and management needs, makes us best suited to handle

retained search assignments.

Some of our clients include Bajaj Auto, 3i, Prudential ICICI, Google and Tata

Consultancy Services BPO.

This is measured by:

Speed of execution

Quality of candidate match

Market coverage


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Post hire candidate integration

2.4 ADECCO-PUNCH LINE:

Better work, better life

Our aim is to give everyone involved with Adecco the opportunity to improve their

situation, be it at work, at home, in leisure activities or in life.

We are the world leader in connecting people both globally and locally with the talent

they need and the work that they want.

We seek those motivated to make change and know that, as partners we can help them

to shape and achieve their personal and professional goals.

We offer life skills, career progression and specialized expertise. We continually seek

new approaches and we partner with the best trainers. We use technology to create real

advantages. We want associates and clients to truly benefit from working with us and we

continually invest to sustain our position as innovators.

Our responsibility is to connect people both globally and locally. To accomplish this,

we must be easily accessible by our clients and associates at all times. We must provide

them with a thorough understanding of how we can work with them and the services that

we offer.

We encourage the situation where individuals have greater choice and want to work with

a partner who demonstrates they have the relationships and skills that fit their exact

requirements. We are confident that, as Adecco, we will help to inspire our colleagues,

clients and associates to achieve better work, better life.
http://adecco.co.in/index.html


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2.5 ORGANIZATION STRUCTURE:

For the every concern a structure is necessary on which the complete

organization should be founded. The existence of a structure as obvious in every

organization whether planed/unplanned or ill planed. To have a structure is not a choice

of the organiser. The choice is only of the form and pattern of the organization. Planed

organization structure may be proved logical clear-cut and streamlined in order to meet

the present requirement. Otherwise it will merely be a makeshift arrangement and the

management is rendered difficult and ineffective because organizational structure affects

everyone in the organization. A good organizational structure facilitates managements

management and the operation of enterprise and it encourages growth. It helps

organization to reach its common goal. In order to make the organizational structure

more effective one structure that can meet the demand of various factors namely

environment, technology, size and people.

ADECCO INDIA AT NATIONAL LEVEL:

MD

CEODIRGM

RBMMO, AM

CSMTL/DM (Process), TL/DM (Recruitment)

PE , RCOE


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MD : Managing Director

CEO : Chief Executive Officer

DIR : Director

GM : General Manager

RBM : Regional Business ManagerAM : Account Manager

MO : Manager Operation

TL : Team Leader

DM : Delivery Manager

PE : Process Executive

RC : Recruitment Consultant

OE : On boarding Executive

2.6 ADECCO STAFFING CYCLE:

14

Flexi Delivery Model


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Sourcing Methodology:

There are various steps in Sourcing, which is depicted below:

Transition

----------------------------------

Finding people is what Adecco does. Every minute of every day, in 63 countries around

the world, its unique combination of people, systems and experience consistently

provide you with personnel that are tested, trained and ready to shine.

Internet Recruiting: - Its internet site links candidates with available positions via the

state of the art job database, promotes the benefits of working for Adecco and provides

office locations - all available 24 hours a day!

Certified Recruiters: - Adecco has made an unprecedented investment in the training and

development of its recruiting personnel. Supporting the professional development is the

industry's most comprehensive arsenal of recruiting strategies, tactics and tools. The

skills and ingenuity of the certified recruiters, combined with aggressive recruitment

advertising, means we have the candidates - temporary or full time.

Open all hours: - Adecco understands that in today's rapidly changing world of work, the

clients require its assistance 24 hours a day, 7 days a week. Its 24 Hours Service Centreand nationally networked database of candidates and clients ensures the information is

available on demand.

Qualified candidates: - In an intensely competitive marketplace, it knows that delivering

people with the right skills is just the beginning of a successful HR solution. Adecco's

exclusive Expert Online assessment system allows it to assess candidate skills as well as

Defining the job

Description

RecruitmentConsultant-

Short-listingCandidates

Client Interview

Selection

Completing the formalitiessuch as HRIS forms, ID,

cards, Insurance A/c no., etc

Offer

Acceptance

Reporting


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looking at motivation and working styles. Further, the Adecco Safety Assurance

Program seeks to assess and inform candidates about the responsibilities.

Global business lines:

Our new global business lines, defined by occupational field take us closer to bothassociates and clients. These closer relationships are vital to our ability to serve client

needs and benefit all stakeholders, including associates. In a volatile labour market with

both pressures and incentives to adopt portfolio careers, many individuals will value a

supportive and highly informed partner through whom they are consistently able to

access work that is right for them.

Our Business Lines

general

Staffing

Accounting

&

Legal

Office

Support

IT

Staffing

Professional

Staffing

Staffing

Low-end

performance

Recruitment

Associates Permenent

Staff

Adecco

Clients

Other

Corporate

Training Payroll

management

Services

Customized

Solutions

Value-added

Services

Adecco Staffing

Solutions

2.7 ADECCO STAFFING SOLUTION, BHUBANESWAR :

Adecco Bhubaneswar has mainly three divisions:

Recruitment

Process Payrolling

Client Acquisition

Recruitment:


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Recruitment is the most critical part in client services for a staffing organization. Just in

time delivery of required man power helps the client to focus on its core activities.

Hence getting adequate benefit to outsource, the staffing requirement client requirement

varies from various verticals like: customer service, sales, back office, IT staffs, front

office etc. As we believe good people make better organization, hence providing theright kind of human resources fulfills the mission of the organization.

In Adecco sourcing of human resources is not just a selection process rather it involves

aggressive headhunting to fulfill the clients needs. In order to select right persons media

campaign like newspaper, TV advertisement, participation in job fairs are most effective.

In addition Adecco provide access to the job portals to its recruitment division. Adecco

believes that the large mass of unemployed youths and job seekers have to be reached

through a strong recruitment division in order to fulfill the tempting requirement.

Adecco Youth Connect:

Adecco India recently introducing a concept named Adecco youth connect AYC ,which

main motto is to make tie up with various Educational Institutes and get their complete

students database and assist them to make their path smoother in searching a job and

making our database strong.

Process Pay rolling:

Pay rolling of the outsourced staffs falls under a separate division in Adecco. The

process executive and process team leaders are responsible for this entire pay rolling

system. The process starts with receiving and verifying the time sheet obtained from the

client by 18th

of every month. Next comes the processing and calculation of salaries as

per the time sheet. After this has been completed the data is input into the billing system

to generate salary adding any commission and statutory cost, which includes service fees

and the service taxes. The process team rechecks to ensure that the entire data is correct.

After the verification an invoice is raised and submitted to the client by 22nd of every

month. The client then pays Adecco the invoice amount by 29 th of the same month.

Lastly the salary is paid to the staffs by bank transfers or by cheques within 48 hours,

thereby putting a deadline by 1st

of every month. This completes the entire payrolling

process.


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Client Acquisition:

The business development team continuously seeks for business opportunities in there

respective territories. Good services offered to the existing clients enable them to give

more responsibilities to Adecco in terms of more business games.

World no.1 staffing organization.

Top player in tempting industry.

Quality services to existing customer.

Domain expertise across vertical levels.

Over 1000 corporate clients.

Providing just-in-time human capital.

Adecco was launched in Orissa on 1st

august 2005 and presently operating with around2000 associates working for different organization. The consistent growth of Adecco,

Bhubaneswar branch is due to the services offered to the clients by strong recruitment

and error free process pay rolling. Thus efficient customer service has led to increase the

client base, thereby significant growth since the day of inception and hence making

Adecco a market leader in temporary staffing business in Orissa.

2.8 ADECCOS SWOT ANAYSIS

STRENGTH:

The Company is rapidly growing because of its quality service and strong

database.

The Brand Image is increased because of its Just-In-Time Service.

Adecco is the No.1 staffing company Globally

Adecco is the Global Leader in HR Solution.

World-wide presence of Adecco.

Adecco plays a major role in the Global Economy.

Adecco makes their associates more Professional.

Proper Training programme is provided through Adecco to its employee.

Adecco domain expertise across all verticals and at all levels

Adecco is very strong in extensive utilization of Technology.

Adeccos growth has been from migration due to quality of backend

operation.


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Adecco believes in verticalization for focused delivery.

Compliance with Statutory Norms.

Working with ERP

Transparency in process

VEDAbuilding a nationalized data bank. Effective and accurate customer response system.

Adecco Youth Connect Why to get student database from various

educational Institutes.

WEAKNESS:

While Recruiting candidate for client in a territory like; Orissa, there is lack

of quality manpower as per Client requirements.

Not able to reach the rural mass.

Getting candidates for lower salaried job.

OPPORTUNITY:

Adecco provide Training programmes to its Employee.

Offering various Training programmes to the Educational Institutes.

Large potential of Temporary and Permanent Staffs

Industry growth rate is more than 100%.

Increasing number of Unemployed Job seekers. Training and Development needs value addition to its services.

THREAT:

Local Companies evade certain statutory compliance like service tax to the

clients operates with lower operating charges.

Increasing competition from MNC.

Local unorganized sector entering into Staffing Business.

Govt. Compliances and Policies.

Market needs a thrust in the form of better Regulation & Legislation.


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L iterature Survey


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Literature Survey

1. What is Attrition?

Attrition may be defined as gradual reduction in membership or personal as through

retirement, resignation or death.

In other words attrition can be defined as the number of employees leaving the

organization which include both voluntary and in voluntary separation. The employee

gradually reduces his/her ties with the company than crib about the underlying factor

causing attrition. It is symptomatic of a much deeper malaise that cuts deeper into the

innards of organization. Attrition is rife across the corporate landscape in India Today.

Attrition rates vary from section to section and industry to industry.

1. Meaning:

In a human resources context, attrition (turn over or labour turnover) is the rate at

which an employer gains and loses employees. Simple ways to describe it how long

employees tend to stay. Turnover is measured for individual company and for their

industry as a whole. If an employer is said to have a high turnover relative to its

competitor, it means that employees of that company have a shorter average tenure than

those of other companies in the same industry. High turnover can be harmful to acompanys productivity if skilled workers are often leaving and the workers population

contains a high percentage of no voice workers.

3. Objectives:

Attrition is not bad always if it happens in a controlled manner. Some attrition is

always desirable and necessary for organizational growth and development. The only

concern how organizations good attrition signifies the importance of less productive

employees voluntarily leaving the organization. This means if the ones who have leftfull in the category of low performers, the attrition in considered being healthy. Attrition

rates are considered to be beneficial in some ways:

1. If all employees stay in the same organization for a very long time, most of them are at

the top of their pay scale which will result in excessive manpower costs.


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2. When certain employees leave, whose continuation of services would have negatively

impacted productivity and profitability of the company, the company is benefited.

3. New employees bring new ideas approaches, abilities and attitudes which can keep the

organization from becoming stagnant.

4. There are also some people in the organization who have a negative and demoralizinginfluence on the work culture and team spirit. This in the long term is detrimental of

organizational health.

5. Desirable attrition also includes termination of employees with whom the organization

doesnt want to continue a relationship. It benefits the organization in the following

ways:-

It removes the bottle neck in the progress of the company.

It creates space for the entry of a new talent.

It assists in evolving high performance teams.

There are people who are not able to balance their performance as per expectation, lack

potential for future or need disciplinary action. Furthermore, as the rewards are limited,

business pressure dont allow the management to over reward the performer, but when

undesirable employees leave the company, the good employees can be given the share

that they deserve.

4. Reasons/causes:

In the opinion of industry analysts and the exit interviews conducted by variousorganizations is anything to go by, attrition happens due to variety of reasons. Job

hopping due to moolah factor , lack of career mobility and challenges, high levels of

stress and lack of confidence in supervisors, lack of employee- job fit and lack of

coaching and feedback and crushing organization culture are some of the reasons for

employees to leave the organization.

5.factors affecting attrition:

(1) Individual

Ambitions/careers aspirations

Parental/family mobility

Personality factor

(2) Organizational


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Culture

Growth career paths

Pay packets

Role related

No challenge No learning

Style of boss

Role of clarity

Role of stress

Lack of independence

(3) Others

Peer pressure

Environment

6. Examples :

Various relationships with attrition are shown below:

a. attrition and opportunity:

With the market throwing job opportunities every next day,

Everyone wants to grab them. The job mobility is like to get even more prominent in the

coming daysbad news for employees. The rate of attrition reflects a definite change in

peoples attitude about their choices of careers. The organization with low paying

capacity in the competitive hiring market especially when the MNCs are head-hunting

with their hard currency advantage. The growing economy throws new challenges to

those firms and sudden upsurge of pay package across the board may use the financial

health of the organization. The differential package also leads to industrial unrest, the

least desirable for any firm.

b. attrition and age factor

In the corporate circles the common saying is, Dead wood stays with talent flies

away.The employees in their 20s are very mobile and have high ambitious career. They

keep changing jobs and reach the top of the career in a very short period. The following

graphical presentation will help us to note the correlation between age of the employeeand level of attrition.

It is evident that during the early years of employment attrition level is at its peak and

gradually drops and finally at the fag end of employment of the employees leaves due to

VRS or medical reasons.


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The organizational life cycle also has its determining effect over the attrition rate. The new

generation organization with a young set of employees has more attrition than the old

generation oraganisation. In the life cycle as the organization reaches maturity the attritionescalates mostly out of exodus of its matured top level aspiring talent with better scope.

The firm must show sufficient respect and evolve target specific career development device

to retain these grey cells within its office walls. Te following graphical presentation is

explanatory in this regard.

c. Attrition and ethics issueOften organizations face the problem of non-compliance of resignation related

formalities by the quitter and raises ethical issues related to the mentality of moving out

only to gain a better package/ position on the part of ex-employee.

They also propose legal contract to stop employees from joining the organization

from joining the organization of competitors. By and large, it remains a debatable issue


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what is right or what is wrong, especially when a good number of employees resort to

hire-n-fire practice and hardly bother about employee loyalty. It is the turn of employees

to retaliate. Ethically, the move from one job to another with the right reasons is fine but

definitely not at the cost of the ex-employer. The organization better pronounce its

policy to release the employee is open about it and tenders sufficient notice so that thesuccessor could be groomed before the employee leaves.

(7) How does attrition level stack up in India?

Following table shows the attrition level stack up India

Serial no. sector/industry Attrition percentage

1 Retail 20-25

2 Animation 20-303 Telecom 30-40

4 Knowledge processin 30

5 Aviation 46

6 Hospitality 25-35

7 BPO 40-45

8 Pharmaceuticals 35-40

9 Facial services 44

10 Construction 25

Sources: compiled from various sources

(8) Attrition rates in Asia:

In Asia, organizations faced on overall attrition rate of 16% in 2005. Attrition rate was

14% in 2004 and 10% in 2003.

According to Hewitts attrition and retention study Asia Pacific 2006, the no. 1 reason

for this growing attrition rate is compensation unfairness. 21% of the organization who

took part in the survey said that their employees left the organization offering better pay

packages. The no. 2 reason was less growth opportunities and no. 3 was role stagnation.


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The study also revealed that the top employee retention strategy being used by the

organization in Asia was to pay above the industry standards, providing opportunities to

employees to learn new skills and provide work life balance.

(9)ATTRITION AT DIFFERENT LEVELS:


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(10) Attrition scenario in India:

Almost all the sections in India are facing attrition, but the reason and effects are

unique to each sector. The attrition rates in different sectors are depicted in figure. Whilethe voice based BPO has the highest attrition rates, often sectors that are currently facing

significantly high attrition are retail, aviation, pharmaceuticals, telecom, IT/ITES etc.

As a result every organization is now striving to put into practice several measures

to counter attrition, right from identifying the root cause to making the right hires.

Though there is no specific data available on the gender differences in attrition levels, it

has been found that women employees are less likely to switch job merely for a modest

(10-15%) hike in salaries. If given the right environment, which implies work-lifeflexibility, women tend to stay longer than men in job.

The fact that the IT/ITES sector faces high rates of attrition is a matter of

grave concern given the contribution of the IT sector to the Indian economy.

For example, according to Nasscom , the Indian IT/ITES industry recorded $39.6 bn

revenue in 2006-07 and is projected to grow at 24-27% in 2007-08 to realize total

revenue earnings of about $49.50 bn. Though the IT/ITES sector is booming, it is

constantly facing attrition rates in the range of 25-30%, with even the big brands facingits wrath.

A survey conducted by people, a company of the Garther group looking after human

capital management in IT organization, revealed that the average tenure of and IT

professional was less than three years. In view of this, there are certain industry-specific

issues which need to be looked at to rein in the high attrition in this sector.


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All the sectors are facing attrition. But the reasons and effects of attrition in every sector

different.

Banking, finance, insurance sector:

Indian banking and finance sector is currently experiencing high growth rate. With

increased FDI and high inflation rates, finance sector is enjoying high deposits.

Financial institutes and commercial banks are expanding their business and going forlarge scale recruitments. The banks are collaborating with insurance units to provide

insurance coverage to their clients. Few of the banks are also dealing in gold and silver.

Nationalized banks are preferred more as they provide for job security. Compensation

packages in banks have always been lucrative. Incentives, special allowances, travel

leaves, concessions, paid vacations, paid leaves, retirement benefits are also offered


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along with basic salary and other allowances such as house rent allowance transportation

vehicle etc. Compensation package in finance and banking sector depends on the level of

knowledge and experience an individual have.

Top players such as nationalized banks- Bank of India, SBI, Indian Overseas Bank,Bank of Baroda, Punjab National Bank, HDFC, ICICI and other private banks, financial

institutes such as Bajaj Capital, Kotak Mahindra, etc, are offering high salary packages

with lucrative incentives to attract and retain their talented work forcer

e

Now that there is ample of opportunities for employment in sectors like banking, real

estate, infrastructures and pharmaceuticals the problem if attrition will increase. This is a

persisting problem which is being faced and will be faced by any growing industry.

Many of the new generation banks like HSBC bank, Centurion bank and Yes bank have

made an entry into the major cities and are now penetrating to the rural market. The rural

population is migrating to the cities looking for a better quality of life.The rural population with high aspirations likes to have their dreams turn into

reality at high velocity. So these banks are not the one looking out for hiring manpower

from old private banks.

The private insurance sector that had opened its doors to the young aspirants five

years ago is also witnessing attrition in India. Motivated with the returns, the sale force

starts knocking the doors of their close relatives, friends and neighbors.


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At one point of time the list get exhausted then the exodus starts. Although this is

a career that gives huge amount of money in a short span of time, one need to remember

that it is a job which demands greater degree of discipline in networking and acquiring

new relationships with the world around. This is also a sector that works on 20:80 ratios

where 20% of the work force brings in 80% business.


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Objectives of the Study&

Research Methodology


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Objective:Every research is done with some purpose in mind and mine was no different. The

following were my research objectives.

a) Primary objective is to know the cause of attrition rate in finance sector.

b) To identify the nature of job where attrition rate is higher.

c) To generate ideas regarding the steps taken by organizations to curb attrition.

d) To gain some practical knowledge and as well as to find out the solution for

Attrition.

Research Methodology:

2. Sample Selection:

Sample was selected from finance sector i.e. banking, insurance andMutual fund. The sample was taken from all most all the HR managers of different

finance sectors.

3. Sample Size:

It has been fixed to 28. This sample size was only collected from private sectors.

4. Sample Unit:

The data has been collected from Bhubaneswar.

5. Data Collection:

Primary Sources:

Primary data were collected directly from my external guide.

Secondary Sources:

Regarding secondary data, the information has been collected from

company profile, journals, annual report, HRM review report & different literature

sources and different financial sectors such as TATA AIG life insurance, BARCLAYS

FINANCE.


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TATA AIG LIFE INSURANCE

Tata AIG life insurance company limited and Tata AIG general insurance company

limited are joint ventures of the Tata Group and American International Group,

Inc.(AIG). Tata AIG combines the strength and integrity of the tata group with AIGsinternational expertise and financial strength. Tata AIG life insurance company, Ltd.

provides life insurance solutions to individuals and corporations. It also provides

underwriting service for commercial and industrial insurance in America.

BARCLAYS FINANCE

Barclays finance move,lend invest and protect money for more than 50 million

customers in over 50 countries and have over 300 years of history and expertise in

banking . their services include retail and commercial banking,credit cards,investmentbanking,wealth management,and investment management services across Europe ,

Africa ,Asia and United state of America.

They have been in India for nearly three decades,through Barclays capital, a leading

investment bank and more with our retail and our commercial banking services in

Mumbai , New Delhi, Kanchipuram near Chennai,Junagarh and Neelamangala near

Banglore.

6. Data analysis and techniques:

The data collected through questionnaires has been tabulated. The tabulated data is alsoshown in graphical form like bar or pie charts.

Limitation

It is only useful to those people who are literate.

Due to short span of time i.e. 2 months is not enough data has been collected as per the

ratio which was shown may or may not be relevant as its shown in the internet.

This method can be adopted only where the informants are literate so that they can

understand written questions and give the answers in writing.

It involves some uncertainty about the response. Co-operation on the par of informants

may be difficult to presume.

The information supplied by the informants may not be correct and it may be difficult to

verify be accuracy.


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Data analysis & I nterpretation


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Data analysis & Interpretation

The analysis part is done by the help of the company survey done through the questionnaire

prepared to know the awareness of the Adecco. I have covered 28 financial sectors (Private),which is present in Bhubaneswar. In that analysis, I have focused only 3 sectors like; banking

sector, insurance sector and mutual fund. The questionnaire along with the diagrammatic

representation and interpretation is as under:

Q.1Your Company has a provision of making study why talented people leave theorganization

Total sample Rating scale Respondents Percentage (%)

28

Strongly disagree 3 10.71

Slightly disagree 4 14.28

Neither agree nordisagree

5 17.85

Slightly agree 4 14.28

Strongly agree 8 28.57

It can be shown by following chart.

Interpretation: From the above analysis it was found that eight were respondentsstrongly agree and three were strongly disagree out of twenty eight respondents.

0

1

2

3

4

5

6

7

8

9

storngly

disagree

slightly

disagree

neither agree

nor disagree

slightly

agree

strongly

agree

Series1


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Q.2 Your Company takes into account the various reasons for presentable

attrition like better compensation available


28 Strongly disagree 4 14.28


Neither agree nor

disagree

6 21.42




Interpretation:

From the above analysis it was found that five were respondents strongly agree and fourwere strongly disagree out of twenty eight respondents.

0

1

2

3

4

5

6

7

8

9

10

storngly

disagree

slightly disagree neither agree

nor disagree

slightly agree strongly agree

Series1


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Q.3 Do you think organization culture plays a vital role in retaining employees?


28 Strongly disagree 2 7.14Slightly disagree 0 0.00


0 0.00




Interpretation:From the above analysis it was found that twenty were respondents strongly agree andtwo were strongly disagree out of twenty eight respondents.

0

5

10

15

20

25

storngly

disagree


nor disagree


Series1


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Q.4 do you think reward and recognition of an employee plays a vital role in

employee retention?


28 Strongly disagree 2 7.14Slightly disagree 0 0.00


0 0.00




Interpretation:From the above analysis it was found that twenty three were respondents strongly agreeand two were strongly disagree out of twenty eight respondents.

0

5

10

15

20

25

storngly

disagree


nor disagree


Series1


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Q.5 Do you think frequent motivational training session reduce the rate of

employee of your organization?




Neither agree nor

disagree

4 14.28

Slightly agree 7 25



Interpretation:

From the above analysis it was found that three were respondents strongly agree and

eight were strongly disagree out of twenty eight respondents.

0

1

2

3

4

5

6

7

8

9

storngly

disagree


nor disagree


Series1


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Q.6 Do you think to maintain a healthy balance between work and personal

life is very important for employee retention?




Neither agree nor

disagree

0 0.00




Interpretation:From the above analysis it was found that thirteen were respondents strongly agree and

five were strongly disagree out of twenty eight respondents.

0

2

4

6

8

10

12

14

storngly

disagree


nor disagree


Series1


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Q.7 do you think company goals are aligned with individual goals is a factor

of reducing attrition?




Neither agree nor

disagree

6 21.42




Interpretation:From the above analysis it was found that twelve were respondents strongly agree and

three were strongly disagree out of twenty eight respondents.

0

2

4

6

8

10

12

14

storngly

disagree


nor disagree


Series1


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Q.8 Do you think that adequate knowledge about the interpersonal

relationship between employee and employer is important for controlling the

attrition?




Neither agree nor

disagree

0 0.00




Interpretation:From the above analysis it was found that fifteen were respondents strongly agree and

two were strongly disagree out of twenty eight respondents.

0

2

4

6

8

10

12

14

16

storngly

disagree


nor disagree


Series1


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Q.9 Do you think improper promotion policy affects the organization to leave the

employees?




Neither agreeNor disagree

1 3.57




Interpretation:From the above analysis it was found that nineteen were respondents strongly agree andtwo were strongly disagree out of twenty eight respondents.

0

2

4

6

8

10

12

14

16

18

20

storngly

disagree


nor disagree


Series1


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Q.10 Do you think pay cut is more preferable rather than job cut?

Total sample Rating scale Respondents Percentage (%)28 Strongly disagree 3 10.71


Neither agree

Nor disagree

2 7.14

Slightly agree 7 25

Strongly agree 14 50


Interpretation:

From the above analysis it was found that fourteen were respondents strongly agree andthree were strongly disagree out of twenty eight respondents

0

2

4

6

8

10

12

14

16

storngly

disagree


nor disagree


Series1


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FINDINGS

FINDINGS


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1. The survey revealed that more than half of the companies do have mechanism

like exit interview to generate idea about why talented people leave organization.

2. It was not surprising to find out the most of the companies did disclose that the primarycause of people leaving the organization is either lower salary they are getting in the

present organization or higher salary they might have been offered by some other

organization belonging to same industry or sector.

3. Majority of the respondent had the view that organization culture plays a major role in

retaining employees. Stronger the value and culture of the organization higher the

satisfaction level amongst employee working in organization. If the employees are

satisfied with the job they are doing, they Sheldon leave their job

4. Majority of the respondent had the view that the reward and recognition of an

employee plays a vital role in retaining employees. High the reward and recognition of

the employee, higher the satisfaction level amongst employee working in organization

5. The survey revealed that more than half of the companies dont think that the frequent

motivational training session reduces the rate of the employee in their organization.

6. Majority of the respondent carried the opinion that it is necessary to maintain a healthy

balance between work and personal life is very important for employee retention.

7. It can be inferred from the study that if company goals can be aligned with individual

employees goal it can be a great factor to reduce attrition.

8. Majority of the respondent had the view that adequate knowledge about the

interpersonal relationship between employee and employer is important for controlling

the attrition.

9. Moreover many respondents did have the view that faulty promotional policy can be aserious reason for a quitting their job & a sizable had the outlook that pay cut is more

welcomed than job cut.


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Conclusion & Suggestion


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Conclusion:

It is true that study of human psychology is a critical aspect, and needs trial and error

methodology to reach into a productive conclusion. Human asset is the most vital element of

an organization as it is only the single resource available to an organization which is living in

nature, other resources such as money, material, and technology can be controlled up to some

extent but controlling human capital is a real challenge before organizations.

Apart from proper training and development, compensation management and performance

appraisal, Transparency in organizational policies and effective communication are the keys

to overcome the problem of employee turnover.

After completion of my one month survey I have found that many respondents arestrongly

agreed in different situation.8 respondents are strongly agree while 5 are neither agree nordisagree in the situation where company has the provision of making study why talented

people leave the organisation.9 respondent are slightly agree for preventable attrition like

better compensation whereas one respondent is slightly disagree. Organizational culture plays

a vital role in retaining employees and that proves by strongly agree of 20 respondents. 23

respondents were strongly agreed for reward and recognition whereas 2 were strongly

disagreeing for retention of employees. There was a mix response of respondent for frequent

motivational training session reduces the rate of employee of an organization. 13 respondent

were strongly agree where as 2 were slightly disagree to maintain a healthy balance between

work andpersonal life.12 respondent are strongly agree , 2 were strongly disagree whereas 6were neither agree nor disagree for company goals aligned with individual goals.19

respondent were strongly agree and 1 respondent was strongly disagree with the promotion

policy affects the organization to leave the employees.14 respondent were strongly agree and

7 were disagree with the pay cut more preferable rather than job cut.

Finally I conclude that reward and recognition plays a vital role for retention of

employee. So in my point of view company should take care of this point for controlling of

attrition.


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Suggestions

(1)Strengthen the recru itment processEmployee retention invariably depends upon effective recruitment. When an

organization hires an employee who has the right mix of skill set and personality, he is

pretty much likely to stick to his job. It is quite necessary for an organization to have

clear, accurate and a very transparent recruitment process.

(2)Employees referral helpsExisting employees are one of the most valuable sources of providing manpower.

Companies can contemplate introducing employee referral scheme where, employees are

awarded a cash prize to recommend another employee.

(3)Career opportun it iesWorld class training, development, career management is effective tools that will

help an organization to retain its talent.

Companies shouldprovide an opportunity to put the employees career and high growth

trajectory mode.

(4)Working environmentWorking environment and organization culture play a decisive role in retaining the

talent.

(5)El iminate the poor managersLeadership style of the boss has a strong impact on the employees. The way forward

is to ease out the weak managers and rope in a new manager who can script a

compelling vision, communicate it to people down the line and spearhead initiatives in

line with the broader strategy of the company.

(6)Train ing and developmentCompanies can combat attrition with smart training. Companies desirous of retaining

employees should keep two key aspects in mind. Training should be highly relevant and

should sufficiently broad-base the employees perspective and experience.


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(7)Show deadwood the doorEmployees often hate the presence of underperformers under their work units.

Companies treat such underperformers with kid gloves, leading to huge build up of

resentment and consequently high attrition.

(8)I nvolvement of employees in decision making processEmployees like to b a part of an organization where their voices are heard and

opinion really matters. The greater the involvement of employees in decision making

process betteris the organizations ability to retain its talent.

(9)Employee satisfaction sur veys: A way forwardCompanies should conduct employee satisfaction surveys at periodical intervals.

Such surveys may throw up the potential flash points so much so that an organization

can galvanize itself into action and take remedial measures forthwith .

(10)Workli fe balance

Achieving a good balance between work and personal life and responding to the

needs and expectations of an employee play a very crucial role in employee retention.

(11) Making the organization very transparent

Employees are more comfortable working in a more transparent organization where

much of the details regarding its functionality, development and performance are freely

available to the employees.

(12)ESOPthe best retention tool

The new millennium powerful aphrodisiac for the despondent, disillusioned and

distraught HR practitioners is the ammunition called Employee Stack Option Plan.

The underlying objective of ESOP is to attract, reward and retain the best of the

talents and generate a strong sense of ownership in the company. ESOP is such a

dynamic HR tool for retaining the best talent.

(13) Employment branding holds the key

Employment brand can help build the perception about an organization as employer

of choice. This will help bring down the attrition rate.


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Bibliography

&

Annexure


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Bibliography:

Websites

1. Icfaihr review magazines2. www.bpoindia.com3. www.icmrindia.org4. www.nasscom.org/in5. www.humanlinks.com6. www.knowledgecomission.gov.in7. www.fundoodata.com8. Company websites

Other Information sources1. Company Manual2. Datacraft Intranet3. HR Documents

JOURNALS:

1. Business Line (Catalyst)

2. Journal of HRM Review (ICFAI publications)

ANNEXURE
http://www.icmrindia./http://www.nasscom.org/inhttp://www.humanlinks.com/http://www.knowledgecomission.gov.in/http://www.fundoodata.com/http://www.fundoodata.com/http://www.knowledgecomission.gov.in/http://www.humanlinks.com/http://www.nasscom.org/inhttp://www.icmrindia./


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Questionnaire

Q.1 Your company has provision of making a study about why talented people leavethe organization?

Strongly Agree

Slightly Agree

Neither Agree not disagree

Slightly Disagree

Strongly Disagree

Q.2 Your Company takes into account the various reasons for preventable attrition likebetter compensation available?

Strongly Agree

Slightly AgreeNeither Agree not disagree

Slightly Disagree

Strongly Disagree

Q.3 Do you think organization culture plays vital role in retaining employees?

Strongly Agree

Slightly Agree


Slightly Disagree

Strongly Disagree

Q.4 Do you think rewards and recognition of an employees plays a vital role inemployee retention?

Strongly Agree

Slightly Agree


Slightly Disagree

Strongly Disagree

Q.5 Do you think frequent motivational training season reduce the rate of employeesof your organization?

Strongly Agree


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Slightly Agree


Slightly Disagree

Strongly Disagree

Q.6 Do you think, to maintain a healthy balance between work and personal lifeis very important for employee retention?

Strongly Agree

Slightly Agree


Slightly Disagree

Strongly Disagree

Q.7 Do you think, company goes aligned with individual growth is a factor of reducingattrition?

Strongly Agree

Slightly Agree


Slightly Disagree

Strongly Disagree

Q.8 Do you think that adequate knowledge about the interpersonal relationshipbetween employee and employer is important for controlling the attrition?Strongly Agree

Slightly AgreeNeither Agree not disagree

Slightly Disagree

Strongly Disagree

Q.9 Do you think improper promotion policy affects the organization to leave theemployees?Strongly Agree

Slightly Agree


Slightly Disagree

Strongly Disagree

Q.10 Do you think pay cut is more important than job cut?

Strongly Agree

Slightly Agree


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Slightly Disagree

Strongly Disagree