Attrition Case

Contents

Introduction 3

What is Attrition? 3

Harmful effects of Attrition 3

Attrition is not always bad 3

Executive Summary 3

Methodology 3

Factors impacting Attrition 3

Salary 3

Work environment 3

Career growth 3

Flexibility of working hours 3

Work life balance 3

Job security 3

Rewards and recognition 3

Relationship with boss 3

Type of work assigned 3

WORK CULTURE IN THE SECTORS 3

IT/ITES 3

MANUFACTURING 3

FINANCE/BANKING/TRADING 3

CONSULTING/RESEARCH 3

BPO 3

SURVEY 3

Respondent's profile 3

AGE 3

Gender 3

Sector of Work Experience 3

Duration of Work Experience 3

SURVEY RESULTS 3

Most Important Motivational Factor 3

SECTORWISE ANALYSIS 3

Analysis of IT professionals 3

Side Factors 3

Manufacturing 3

Side Factors 3

Finance/banking 3

Consulting/research 3

Aviation 3

BPO 3

Defense/ Security Services 3

Key Learning 3

References 3

INTRODUCTION

What is Attrition?

* The reduction in staff and employees in a company through normal means, such as retirement and resignation is called attrition.

* Attrition leads to loss of employees.

Harmful effects of Attrition

* Attrition leads to loss of employees who have thorough knowledge of the company and its practices.

* Experience in a field is very important for better performance.

o New employees lack this and this might lead to some pitfalls during their work.

* If there is high attrition, it also results in a negative impact on existing employees about the work environment of the company.

* Appointing new employees in place of old involves cost of recruiting and training them.

* costs of employee turnover

* hiring costs: time spent in screening, verifying credentials, references, interviewing, hiring, and training the new employee

* hard costs of productivity loss

* Loss of customer, customer confidence and business

Attrition is not always bad

Some attrition is always desirable and necessary for organizational growth and development.

* The term "healthy attrition" or "good attrition" signifies the importance of less productive employees voluntarily leaving the organization.

o This means if the ones who have left fall in the category of low performers, the attrition in considered being healthy.

* Also, new employees bring new ideas, approaches, abilities & attitudes which can keep the organization from becoming stagnant.

* In this era of globalization, it is very important for a company and its employees to be updated with the latest developments around the world and act accordingly.

* An organization can achieve this better with new generation employees.

EXECUTIVE SUMMARY

Recent studies have proved that attrition rates have been increasing in Indian companies.

Employees today are different. They are not the ones who don't have good opportunities in hand. As soon as they feel dissatisfied with the current employer or the job, they switch over to the next job. The reality of hiring freezes and possibly even layoffs during economic slowdowns means it is critical to focus on retaining and enabling our remaining people to reach peak performance. Lean organizations are heavily dependent upon the performance and quality of current employees. Current employees have specialized, institutional knowledge.

Replacement costs usually are 2 ½ times the salary of the individual, and may include lost customers and business and damaged morale.

In order to create a successful company, employers should consider as many options as possible when it comes to retaining employees, while at the same time securing their trust and loyalty so they have less of a desire to leave in the future.

Our primary target during the designing of the project was to define attrition, how attrition can be good for an organization and how it impacts any organization in a negative way. Additionally, we were studying various factors impacting attrition. While, some factors like motherhood could not be preventable and expected, while others like dissatisfaction with salary could be prevented and brought under control. Factors impacting attrition rates could vary with demographic changes like Age and Gender and motivational factors like salary, working hours and growth opportunities. The assumption that motivational factors would vary with demographic bifurcations was also to be validated.

During the course of project, we realized how another unnoticed factor of classification of Industry also impacted all other factors. For