HCL: A Snapshot Employees 60,000 Financials* HCL Technologies Global Market Focus HCL Infosystems Indian Market Focus Hardware, System Integration, Networking Solutions, Managed ISP Services, Homeland Security & ICT Distribution Business Lines Industry sectors Product Engineering & R&D, Enterprise & Custom Applications, Enterprise Transformation Services Infrastructure Management, & BPO Services Manufacturing & Life sciences, Aerospace & Defense, Energy and Utilities, Government, Financial Services, Telecom, Media & Entertainment and Retail & Consumer Total Revenues - $ 5 Bn EBITDA - $ 550 Mn www.hclbpo.net Operations spanning 23 countries Global Presence USA, UK, Poland, Singapore and India Delivery Facilities Offices in 170 cities, 500 service centres reaching 4,000 towns India Presence 83,000 outlets in over 9,000 towns Distribution Network
HCL BPO: Technology Network www.hclbpo.net
What is Attrition ?
Attrition can be defined as reduction in the number of employees through retirement, resignation or death.
Sense of inner fulfilment and pride achieved when performing a particular job. Job satisfaction occurs when an employee feels he has accomplished something having importance and value worthy of recognition; sense of joy.
Employee attrition is a very big problem in India and outside India.
So a Question arises
“ Why an Employee leaves a company?”.
To Fig this out every Company calculates Employee attrition rate and takes measures to reduce it.
Attrition Rate Of Different IT Majors In India. Corrystone collated these figures from these IT-ITES companies’ official reports ending Dec, 2009. http://www.techgoss.com/Story/2270S14-IT--amp--BPO-attrition-rates.aspx
HCL Quarterly Attrition Report For 2010
June 28--India's fourth largest information technology (IT) firm, HCL Technologies Ltd, seems to be facing the brunt of an industry-wide spurt in attrition levels.
Annualized quarterly attrition at HCL has been rising from 14% in the three months ended June 2009 to 22% in the quarter ended March.
Attrition levels of other India's largest software services firm in ‘10
TCS is about 12% (Flat when Compared to June 2009 to 13% in the March quarter).
Infosys Technologies Ltd was 19% in the March quarter
Employee attrition costs 12 to 18 months’ salary for each leaving manager or professional, and 4 to 6 months' pay for each leaving clerical or hourly employee.
If Managers know the real causes of attrition, they may lead to better opportunities, which will help organizations evolve and obtain higher profits.
Reason For Attrition
Most employees leave their working Firm not only for money for the below reasons as well
To seek opportunities.
To develop their skills. (Technical / Non-Technical)
Need For The Study
To identify the causes of attrition and to suggest measures to control it.
To study the reasons why employees leave the organization.
If these problems can be identified and corrected further attrition can be reduced.
To know the working environment, satisfaction with co-workers and superiors, Stress at work place, remuneration and recognition, as a part of company policy which acts as the cause for attrition.
we need a different strategy if we are to create and adequately sustain the mentoring programs we know we need.
Rather than showing the less tangible benefits of increased retention, we must show the cost-effectiveness of decreased attrition
Staff attrition (or turnover) represents significant costs to technology and business process outsourcing (BPO) companies.
High attrition rates drive up
increase human resources
There are many causes for attrition including, retirement and death. However, most attrition is due to employee turnover.
Employees leave their jobs for a number of reasons including:
wanting more money,
poor working conditions,
irregular working hours,
lack of advancement opportunities,
lack of job security,
difficulties with coworkers,
desire for change, better opportunities,
and family reasons (e.g. their spouse gets a job in a new location, females leave the workforce after marriage or childbirth).
High wage inflation is another major factor in job hopping.
In India, the average annual attrition rate in the business process outsourcing (BPO) sector hit a high of close to 50% a few years ago. Better attrition management and the 2008-2009 global economic slowdown have helped reduce the figure to 24-30%, but this still has a significant impact on costs and quality.
In India there is an increasing demand and supply gap for professionals. It is sometimes difficult for HR managers to maintain consistency in performance and keep the motivation levels high especially when the work is monotonous
Workplace/ environmental influences
Vague vision and values: Senior management must articulate a clear and compelling vision for the organization in order for it to succeed.
Lack of positive direction: Poorly prepared management can potentially communicate an undesirable message of apathy and frustration to employees
Limited or lackluster training: Employees want to continually upgrade their skills and have come to expect that employers will help them do so. In fact, research shows that employees are three times more likely to leave a company that does not provide job-related training.
Hiring that misfires: It makes far more business sense to determine if a candidate fits the environment before you hire than have to deal with the consequences of a mismatch.
Mismatched measures and rewards : Recognition and reward are powerful motivators. It is virtually important to base a reward and recognition system on standards tat everyone understands and can choose to demonstrate.
Overwork and burnout: Unrealistic expectations are de-motivators, not incentives. Irregular hours and mealtimes, lack of rest resulting in physical strain, high stress environments etc cause employees to burn out and re-evaluate their willingness to work in places like call centers.
To find out the causes for the increasing rate of attrition in HCL Technologies.
Secondary objectives :
To study the interpersonal relationship as a cause of attrition
To study the balance between the personal and the career life as a influencing factor for attrition
To suggest measures to control attrition
A research design is the arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure.
Descriptive Research Design:-
Descriptive research includes survey and fact-finding enquires of different kinds. The major purpose of descriptive research is descriptive of the state of affairs, as it exists at present.
The main characteristic of this method is that the researcher has no control over the variables the researcher can only report what has happened or what is happening.
The sample size of the research is HUNDRED which comprises the employees of HCL Technologies. The study was mainly focused on the employees of HCL Technologies only
Two Types of Data Collection :
First time and Original source data
Data's were collected through Questionnaires which was fabricated keeping in mind the stated objectives. (direct personal interview, indirect or oral interview and information from employees).
Already proved and processed data
Helpful in analyzing, framing suggestions and recommendations for this Study.
Sources are the journals, information gathered by professional organization and internet.
Processing the Data
Analyzed, tabulate and processed through Bar charts, Line diagrams and Pie diagrams.
The method of selecting a portion of the ‘Universe’ for the study with a view to draw conclusion about the ‘Universe/Population’ is known as sampling.
A probability sampling is also known as “Random sampling or “Chance sampling”. Under the sampling design every item of universe has an equal chance of inclusion in the sample.
Random sampling form a finite population refers to the method of sample selection, which gives each possible sample combination on equal probability to have an equal chance of being included in the samples.
The sample size of the research is hundred which comprises the employees of HCL Technologies only.
Limitations of the study
Some of the respondents were unwilling to fill the questionnaire due to the fear of their personality being identified.
Few responses could have been biased as the respondents might have been influenced by the situation.
The largest contributor to employee attrition is a lack of “engagement” with their job.
The employee’s immediate supervisor plays the biggest role in affecting an employee’s satisfaction with her/his job.
The report cannot be used for other companies as its according to the strategies used in this company
Employee Satisfaction Survey
27% of the employees are in the range of dissatisfaction which may lead to attrition 15% of the employees comment neutral which shows they may or may not be satisfied 58% of the employees are satisfied A deeper look needs to be given on the 27% and necessary steps needs to be taken to reduce the attrition in near future
13% of Employees are dissatisfied with regards to Career development 11% of Employees are dissatisfied with regards to Recognition and Rewards Top contributor Second contributor
Findings and conclusion
“ Constant efforts were taken and everyone is finding a way to reduce attrition which is exactly opposite to what is put here in thought provoking way. It is believed that young generation of MBA's will improve their horizons at work place, and it will make them wiser in their life”