Attrition and Measures to ControlAttrition and Measures to Control
Presented by :Presented by :
""A reduction in the number of employeesA reduction in the number of employees
through retirement, resignation or deaththrough retirement, resignation or death""
How many people are leaving each yearHow many people are leaving each year
TurnoverTurnover = Number of staff leaving per year x 100 /= Number of staff leaving per year x 100 /
average number of staffaverage number of staff
Attrition RateAttrition Rate
• A factor, normally expressed as a percentage, reflecting the
degree of losses of personnel due to various causes within a
specified period of time
• The rate of shrinkage of manpower in size or number.
• Reduction of employees by retirement, resignation & layoff.
• A term used to describe voluntary and involuntary terminations,
deaths, and employee retirements that result in a reduction to
the employer's physical workforce.
The formula and correct logic behindThe formula and correct logic behind
calculation of ATTRITION RATEcalculation of ATTRITION RATE
• [(No. Of attritions x 100) / (Actual
Employees + New Joined)] /100.
1) Actual Employees No. Of people left No. Of Joined Total Employees
150 20 25 155
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.
2) Actual Employees No. Of people left No. Of Joined Total Employees
100 50 0 50
• This is the special case where we are considering attritions only keeping into
mind that nobody has joined in particular month.
• So according to the formula: ((50 x 100) / (100)) / 100
• Which comes to 0.5 i.e. 50%
• Now as you had 100 previously and now 0 joined so it makes 100 + 0 =100
• Now if you calculate 50% of 100 i.e. 100 x 0.5 = 50
• Which clearly shows that 100 - 50 = 50, which is your current headcount and
at the same time you can say my attrition is 50% that shows you lost 50
employees of 100 and 0 joined which makes count to 50.
Sector wise attrition rate/no.of yearsSector wise attrition rate/no.of years
Business Process OutsourcingBusiness Process Outsourcing
One of the fastest growing segments of the
Major Challenge: Employee Satisfaction
Biggest challenge in the industry
Service oriented industry
Loss of 25% revenue due to attrition
As per NASSCOM – cost of attrition in Indian
BPO is 1.5 times the annual salary
Continued …..Continued …..
Attrition in 2011 – 55%
Attrition rates in the industry:
Infosys BPO 28%
Wipro BPO 18%
TCS BPO 21-22%
Tesco HSC has seen a 6% drop in attrition
Causes of AttritionCauses of Attrition
Lack of importanceLack of importance
Of JobOf Job
Specific Causes for AttritionSpecific Causes for Attrition
Use of referral schemes
1/10 is made a
1/100 is made a
Change of place
Salary & benefits
High Stress Levels
Nature of the job
What is Employee Retention?What is Employee Retention?
Employee retention is a process inEmployee retention is a process in
which the employees are encouragedwhich the employees are encouraged
to remain with the organization for theto remain with the organization for the
maximum period of time or until themaximum period of time or until the
completion of the project. Employeecompletion of the project. Employee
retention is beneficial for theretention is beneficial for the
organization as well as the employeeorganization as well as the employee..
Importance of Employee retention.Importance of Employee retention.
The cost of turnoverThe cost of turnover
Loss of company KnowledgeLoss of company Knowledge
Interruption of customer ServiceInterruption of customer Service
Turnover leads to more turnoverTurnover leads to more turnover
Goodwill of the companyGoodwill of the company
Regaining efficiencyRegaining efficiency
Key Areas in Employee Retention
Compensation Environment Growth
Retention Strategies used in theRetention Strategies used in the
Daksh services and Global Vantedge –
GE, Wipro Spectramind –
management diplomas and MBA courses
Exl Service.com and ICICI one source –
hire outstation candidates
HCL Tech BPO Services, GTL –
career counseling and planning career paths
RECRUITMENT PLANNING MODEL TO
CONTROL THE RATE OF ATTRITION
• Evaluating the Recruitment Channels
• Careful Analysis of the Background of the Employee
• Assessing the Reasons for opting the Job
• Selecting the Right person for the Right Job
• Clarity about the Job Profile and Appraisal System
• Change the employable target audience
• Innovative Techniques to Recruitment
• Changing perception of employees from life style to career
• The multi-billion dollar BPO industry is racking its brains to solve the
crisis, a complicated one that could prove to be disastrous in the
• Brand building has come up as a good panacea for the attrition
problem. The Indian BPO industry is focusing on the process of
brand building with a view to create respect and awareness of the
job among the people.
• Today, most of the BPOs are on the look out for freshers and agents
with more than one-and-a-half to two years of work experience,
rather than graduates with no prior experience in the industry.
• The attrition rate which goes as high as 50-60% can be reduced to
as low as 10-15% considering the recruitment planning model. If the
present attrition rate goes on the outsourcing industry is likely to
face a shortage of 262,000 professionals by 2012.