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Final dissertation presentation

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Attrition rate

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Final dissertation presentation

  1. 1. 15-10-2016 1
  2. 2. A STUDY ON EMPLOYEE ATTRITION IN IT INDUSTRY IN INDIA SUBMITTEDBY: MISS.BELANDIPTID. GUIDE:PROF.PADHAMNABHANH.K. 15-10-2016 2
  3. 3.  Introduction  Literature Survey  Theorization of Research Topic  Research Design/ Research Methodology  Data Analysis  Finding  Suggestion  Conclusion  References 15-10-2016 3
  4. 4.  All businesses, large and small, have some way of keeping track of their finances.  Businesses are constantly looking for more ways to keep expenses low.  One factor that is often overlooked, however, is the cost of employee Attrition.  High employee turnover can cost a company more than they might realize in the long run.  Employee Turnover occurs when employees voluntarily leave their jobs and must be replaced.  Attrition is expressed as an annual percentage of the total workforce. 15-10-2016 4
  5. 5.  This study helps the company to understand more on the Attrition rate in the company, helping them to reduce the employee Attrition.  The study educates the causes for Attrition of employees in an organization.  The study also helps to find the drawbacks of the current retention strategies.  This study will also help the organization to know about the satisfaction level of the employee on different aspects of the job in order to satisfy. 15-10-2016 5
  6. 6.  To identify the rate of Employees Attrition.  To identify the causes of employees Attrition.  To suggest measures to reduce the rate of Attrition.  To study the trend in employee Attrition in IT companies. 15-10-2016 6
  7. 7.  Data collected is based on secondary data.  The research exercise was conducted within a limited duration. So a detailed study could not be made.  The result would be varying according to time. 15-10-2016 7
  8. 8.  The study throws light through valuable suggestion to decrease attrition level in the organization.  This study can help the management to find the weaker parts of the employee feels towards the organization and also helps in converting those weaker part in to stronger by providing the optimum suggestions or solutions.  This study has a wider for scope in any kind of organization since “attrition” is general one and makes the employees to put forth their practical difficulties and need factors in the organization.  This study can help the management to know for which the reason employees tend to change their job, through dissatisfaction factors faced in the organization and also helps to recover by providing the optimum suggestions or solutions. 15-10-2016 8
  9. 9. “EMPLOYEE TURNOVER: PRESENT SCENARIO OF INDIAN IT INDUSTRY” published by the author Ms.S.Janani in the Indian Journal of Applied Research Volume: 4 | Issue: 3 | Mar 2014 | ISSN - 2249-555X. “EMPLOYEE TURNOVER IN IT INDUSTRY WITH SPECIAL REFERENCE TO CHENNAI CITY-AN EXPLORATORY STUDY” published by the author Mrs. E. Deepa &Mrs. M. Stella in the International Journal of Multidisciplinary Research Vol.2 Issue 7, July 2012, ISSN 2231-5780. “EMPLOYEE ATTRITION: INEVITABLE YET MANAGEABLE” published by the author Ms. Gayatri Negi in the International Monthly Refereed Journal of Research in Management & Technology Volume II, July’13 ISSN 320-0073. 15-10-2016 9
  10. 10. “ATTRITION IN INDIA – CAUSES & REMEDIES” published by the author Mr. Savneet Kaur in the International Journal of Emerging Research in Management &Technology ISSN: 2278-9359 (Volume-2, Issue-6),June 2013. “INFANT ATTRITION IN INDIAN IT SECTOR: AN INDICATION” published by the author Dr. Sneha Mankikar in the International Journal of Scientific and Research Publications, Volume 3, Issue 9, September 2013 1 ISSN 2250-3153. “A STUDY ON THE EMPLOYEE TURNOVER INTENTION IN ITES/BPO SECTOR” published by K.R.SreeRekha & Dr.T.J.Kamalanabhan International Conference - Frontiers of Management – Encore Feb 2013 9th February 2013 - Chennai, India ISBN No: 978-81-926045-0-3 15-10-2016 10
  11. 11.  A reduction in the number of employees through retirement, resignation or death.  Employee Attrition is an enormous problem for any company and creates negative bottom-line impacts.  Employee Attrition costs can amount to thousands of dollars, annually.  It can also prevent companies from pursuing their growth opportunities and acquiring new business & Attrition rate is the rate of shrinkage in size or number. 15-10-2016 11
  12. 12. ATTRITION A reduction in the number of employees through retirement, resignation or death is called Attrition .Attrition is also called total turnover or wastage rate. ATTRITION RATE The rate of shrinkage in size or number of employees is known as Attrition rate. It is usually expressed in percentage. 15-10-2016 12
  13. 13. Attrition Rate = ((No. of attritions x 100) / (Actual Employees + New Joined)) /100 15-10-2016 13
  14. 14.  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. 15-10-2016 14
  15. 15. Voluntary attrition Involuntary attrition Natural attrition Compulsory attrition 15-10-2016 15
  16. 16. Causes of attrition Drive Attrition Drag Attrition Employer Policy Quality Policy Holiday Policy Lack of importance Of Job Limited Promotions Stressful Job 15-10-2016 16
  17. 17.  Loss of productivity  Replacing qualified employees  Poor retention creates a “revolving door” culture within the organization lowering morale and confidence.  Cost of overtime or temporary help  Recruiting costs  Interviewing costs  Time spent in orientation 15-10-2016 17
  18. 18.  RESEARCH PROBLEM A STUDY ON EMPLOYEES ATTRITION IN INDAN IT INDUSTRY  RESEARCH DESIGN The nature of this report is Descriptive.  DATA COLLECTION The data is collected from secondary sources. 15-10-2016 18
  19. 19. 15-10-2016 19 Table1. Employee Attrition Rate of Various Industries in India INDUSTRY Education Manufacturing Capital Goods Construction IT % 17 20 23 25 30
  20. 20. 15-10-2016 20 Table 2. Employee Attrition Rate in Different Country Country India Russia Indonesia Brazil US Chin a UK % 26.9 26.8 25.8 24.4 21.8 21.3 14.6
  21. 21. 15-10-2016 21 Table 3.Attrition Rate Top 6 IT company Company Name 2012 2013 Cognizant 10.7 14.5 HCL Technologies 13.1 15.3 Infosys 15.1 18.1 TCS 11.2 10.9 Tech Mahindra 16.0 17.0 Wipro 12.9 16.3
  22. 22. 15-10-2016 22 Table 4. Impact of Age on Attrition Age 20-25 26-30 31-35 36-40 40-45 % 13 61 19 7 0
  23. 23. 15-10-2016 23 Table 5. Impact of Experience on Attrition Experience in years 0 - 2 2 - 4 5 & above % 19 640 17
  24. 24. 15-10-2016 24 Table 6. Causes of Attrition. Causes of Attrition % Compensation 42 Career Advancement 23 Relocation to Another Area 2 Nature of Job 8 Boss Relation Problem 12 Working Hours 5 Location of the Organization 2 Family Problem 4
  25. 25. 15-10-2016 25  IT companies are facing attrition problem.  Employee Attrition rate of IT Company is high in India.  Employee Attrition is high in between age 26-30.  After Some year Experience Employee Resignation the job because higher opportunity to develop the career.  Majority of employees (42%) left the job due to dissatisfaction with pay,  23% employees left the job due to lack of career advancement,  2% employees left the job due to relocation to another area
  26. 26. 15-10-2016 26  8% employees left the job due to nature of job.  Dissatisfaction with pay, Lack of career advancement, Relationship with other colleagues, Working hours, working conditions, Job related Stress these are organizational reasons.  Higher education, Personal problem, Problems with management, Location of the organization, Maternity these are the personal reasons.  IT companies have a young & dynamic workforce because more than 93% of the employees have not crossed 35 years.
  27. 27. 15-10-2016 27  Offer fair and competitive salaries  Developing a Good Training Program  Reward and Recognition of employees  Stock Options  Strengthen the Recruitment Process  Career opportunities  Exit Interviews  Work Life Balance
  28. 28. 15-10-2016 28  Attrition is becoming a serious problem in today’s corporate environment.  Employee attrition has been the silent killer for improving the organizational productivity.  Attrition cost for many organizations are very high and can significantly affect the financial performance of an organization.  From results it can be concluded that there are various reasons behind employee attrition. These reasons are best offer next door, overseas opportunities, Boss relation problem, higher package, further overseas studies, shifting of cities due to marriage, family and personal problem, improper time schedule and parent’s health requires moving to other cities.
  29. 29. 15-10-2016 29  Voluntary attrition rate is high between the ages of 24-28 years  After getting the 2-4 years’ experience IT professionals got higher opportunity so the growth opportunity is the main reason of the voluntary attrition.  This research proposed a measure if implemented and executed properly would help concern organization to understand their employees‟ needs with regard to their career, job, and family and follow the above mentioned remedies and retained their talented workforce, thereby meeting their expectations and requirements, and thus reducing employee attrition.
  30. 30.  Aswathappa, HUMAN RESOURCES AND PERSONNEL MANAGEMENT, TATA McGraw Hill, 2003  Research Methodology in Management – V. P. Michael  http://www.ermt.net/docs/papers/Volume_2/issue_6_June2013/V2N6-130.pdf  http://www.abhinavjournal.com/images/Management_&_Technology/Jul13/8.pdf  http://www.theglobaljournals.com/ijar/file.php?val=March_2014_1394790379_a111e_7 8.pdf  http://www.ametjournal.com/attachment/ENCORE%20-%20ARTICLES%20- %202013.pdf  https://ebstudies.wordpress.com/2013/04/10/attrition-in-it-industry  http://www.ijsrp.org/research-paper-0913/ijsrp-p21118.pdf  http://www.whatishumanresource.com/attrition  www.citehr.com 15-10-2016 30
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