A project report on attrition and retention stretegy


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A project report on attrition and retention stretegy

  1. 1. EMPLOYEE ATTRITION AND RETENTION STRATEGIES INDUSTRY OVERVIEW INTRODUCTION Brokerage firms are the business entities that deal with stock trading. India, with anincreasing capital market and a growing number of investors, has a number of brokerage firms.In Indian retail brokerage industry, the brokerage firms primarily work as agents for buying andselling of securities like shares, stocks and other financial instruments and earn commission foreach of the transactions. There are plenty of brokerage firms in India. Stock exchanges to some extent play an important role as indicators, reflecting theperformance of the country‟s economic state of health. Stock marketi s a p l a c e where securities are bought and sold. It is exposed to a high degree ofvolatility; prices fluctuate within minutes and are determined by the demand andsupply of stocks at a given time. Stock brokers are the ones who buy and sell securities onbehalf of individuals and institutions for some commission. The Securities and Exchange Board of India (SEBI) is the authorized body,which regulates the operations of stock exchanges, banks and other financial institutions. T h epast performances in the capital markets especially the securitiess c a m b y „Hasrshad Mehta‟ has led to tightening of the operations by SEBI.International trading and investment exposure has made it imperativeto better o p e r a t i o n a l e f f i c i e n c y . W i t h t h e v i e w t o i m p r o v e , d i sc i p l i n e a n d b r i n g g r e a t e r transparency in this sector, constant efforts are beingmade and to a certain extent improvements have been madeINDUS INSTITUTE OF TECHNOLOGY & ENGINNERING Page 1
  2. 2. EMPLOYEE ATTRITION AND RETENTION STRATEGIES HISTORY OF THE STOCK BROKING INDUSTRYIndian Stock Markets are one of the oldest in Asia. Its history dates back tonearly200 years ago. The earliest records of security dealings in India aremeagre and obscure. By 1830s business on corporate stocks and shares in Bank andCotton presses took place in Bombay. Though the trading list was broader in 1839, there wereonly half do z e n b r o k e r s r e c o g n i z e d b y b a n k s a n d m e r c h a n t s d u r i n g 1 8 4 0and1850.The1850s witnessed a rapid development of commercial enterprise and brokerage business attracted many men into the field and by 1860t h e n u m b e r o f b r o k e r s increased into 60.In 1860-61 the American Civil War broke outand cotton supply from United States of Europe was stopped; thus, the Share Mania in Indiabegun. The number of brokers increased to about 200 to 250. However, at the end of the American Civil War, in1865, a disastrousslump began (for example, Bank of Bombay Share which had t ouched Rs 2850could only be sold at Rs. 87). At the end of the American Civil War, the brokerswho thrived out of Civil War in 1874, found a place in a street (now appropriately called asDalal Street) where they would conveniently assemble and transact business. In 1887,they formally established in Bombay, the "Native Share and Stock Brokers‟ Association"(which is alternatively known as "The Stock Exchange"). In 1895, the StockExchange acquired a premise in the same street and it was inaugurated in 1899.Thus, the Stock Exchange at Bombay was consolidated. Thus in the same way, graduallywith the passage of time number of exchanges were increased and at currently it reachedto the figure of 24 stock exchanges. 2INDUS INSTITUTE OF TECHNOLOGY & ENGINNERING Page 2
  3. 3. EMPLOYEE ATTRITION AND RETENTION STRATEGIES INTRODUCTION OF COMPANY AnandRathi is a leading full service investment bank founded in 1994 offering a widerange of financial services and wealth management solutions to institutions, corporations, high–net worth individuals and families.The firm has rapidly expanded its footprint to over 350 locations across India with internationalpresence in Hong Kong, Dubai & London. Founded by Mr. Anand Rathi and Mr. Pradeep Gupta,the group today employs over 2,500 professionals through out India and its international offices.The firm‟s philosophy is entirely client centric, with a clear focus on providing long term valueaddition to clients, while maintaining the highest standards of excellence, ethics andprofessionalism.The entire firm activities are divided across distinct client groups: Individuals, Private Clients,Corporate and Institutions. AnandRathi has been named The Best Domestic Private Bank inIndia by Asia money in their Fifth Annual Private Banking Poll 2009. The firm has emerged awinner across all key segments in Asia money‟s largest survey of high net worth individuals inIndia.In year 2007 Citigroup Venture Capital International joined the group as a financial partner.INDUS INSTITUTE OF TECHNOLOGY & ENGINNERING Page 3
  4. 4. EMPLOYEE ATTRITION AND RETENTION STRATEGIES KEY GROUP COMPNIES Corporate Structure Anand Rathi Financial Services Limited Anand Rathi Anand Rathi AR Venture Funds AR Middle East Commodities Wealth Advisors Limited Management DMCC  Member, • Private Wealth • Member - NCDEX, • Real Estate Dubai Management MCX & NMCE Private Equity Gold & Commodities Exchange Anand Rathi Anand Rathi Share Rathi Global Anand Rathi Advisors and Stock Brokers Finance Insurance Brokers •Investment Banking • Member - NSE/BSE • NBFC • Insurance • Depository participant Broking NSDL/CDSL PRIVATE & CONFIDENTIALINDUS INSTITUTE OF TECHNOLOGY & ENGINNERING Page 4
  5. 5. EMPLOYEE ATTRITION AND RETENTION STRATEGIES VISSION & PHILOSOPHY OF ARGPHILOSOPHY OF ANANDRATHIWealth Management needs to be far more holistic than just investment advisory. We believe thatseparation of advisory from product manufacturing is critical to offering a conflict-free and trulyobjective advice to our clients. We therefore offer only third-party products and do notmanufacture any in-house products. As an extension to this philosophy, we do not hold anyproprietary stake in the markets.INDUS INSTITUTE OF TECHNOLOGY & ENGINNERING Page 5
  6. 6. EMPLOYEE ATTRITION AND RETENTION STRATEGIES CORE VALUES OF ARG  Business ethics  Customer focus  Speed and innovation  Professional pride  Mutual respect HR PHILOSOPHY AT ARG  A strong focus on our human resources operations is closely integrated into the firms business strategy.  At AnandRathi we believe in providing an entrepreneurial environment, within a strong focus on result orientation  At each level, AnandRathi employees have a pre-defined career path and hence an opportunity for continuous growth. They also believe in a complete meritocracy in deciding on promotions and reward systems  ARs ability to provide world-class financial services is a result of its talented manpower pool.INDUS INSTITUTE OF TECHNOLOGY & ENGINNERING Page 6
  7. 7. EMPLOYEE ATTRITION AND RETENTION STRATEGIES LIST OF NEW INVENTIONS IN SUCCESSIVE YEARYear Milestones1994: Started. activities in consulting and Institutional equity sales with staff of 151995: Set up a research desk and empanelled with major institutional investors.1997: Introduced investment banking businesses Retail brokerage services launched.1999: Lead managed first IPO and executed first M & A deal2001: Initiated Wealth Management Services.2002: Retail business expansion recommences with ownership model.2003: Wealth Management assets cross Rs1500 crores.Insurance broking launched. Launch of Wealth Management services in Dubai. Retail Branch network exceeds 50.2005: Real Estate Private Equity Fund Launched. Retail Branch network expands across 200 locations within India.2006: ANAND RATHI Middle East, WOS acquires membership of Dubai Gold & Commodity Exchange (DGCX) Ranked amongst South Asias top 5 wealth managers for the ultra-rich by Asia Money 2006 poll. Ranked 6th in FY2006 for All India Broker Performance in equity distribution in the High Net worth Individuals (HNI) Category. Ranked 9th in the Retail Category having more than 5% market share. Completes its presence in all States across the country with offices at 300+ locations within India.2007: Citigroup Venture Capital International picks up 19.9% equity stake Retail customer base crosses 100 thousand. Establishes presence in over 350 locations.INDUS INSTITUTE OF TECHNOLOGY & ENGINNERING Page 7
  8. 8. EMPLOYEE ATTRITION AND RETENTION STRATEGIES ARG’S CORE STRENGTHS  Breadth of Services In line with its client-centric philosophy, the firm offers to its clients the entire spectrum offinancial services ranging from brokerage services in equities and commodities, distribution ofmutual funds, IPOs and insurance‟ products, real estate, investment banking, merger andacquisitions, corporate finance and corporate advisory.Clients deal with a relationship manager who leverages and brings together the productspecialists from across the firm to create an optimum solution to the client needs.  Management TeamANAND RATHI brings together a highly professional core management team that comprises ofindividuals with extensive business as well as industry experience.  In-Depth ResearchOur research expertise is at the core of the value proposition that we offer to our clients.Research teams across the firm continuously track various markets and products. The aim ishowever common - to go far deeper than others, to deliver incisive insights and ideas and beaccountable for results.  Client TestimonyWe have been ranked thrice in a row as the #1 Private Bank - Domestic and #2 Private Bank -Overall BY OUR CLIENTS in an international Private Banking Poll (2009, 2010 & 2011)conducted by the Asia money publication. Asia money Polls is a unique survey run by Asiasregional financial publication that surveys the end-user i.e. our clients. It is the leading anddefinitive industry survey in the region. We believe that this honor would not have come our waywithout the goodwill, support and patronage of our clients and the trust they placed in us and ouradvisory.  Client-centric EthosOur belief is that there is a spark in every person that distinguishes him as an individual, anddefines his aspirations and goals. A Wealth Management solution for every individual istherefore unique. You deserve a customized solution for managing your wealth that is specific toyour needs and not a generic template – based offering.  Strong Research CapabilitiesOur Advisory process is rooted in the strength of our research team, giving us expertise acrossvarious asset classes. Our Economic Research team has been ranked among the top 20 in Asia byInstitutional Investor and is one among the only 2 teams from India to feature in this list.INDUS INSTITUTE OF TECHNOLOGY & ENGINNERING Page 8
  9. 9. EMPLOYEE ATTRITION AND RETENTION STRATEGIES TOP MANAGEMENT Mr. Anand Rathi Mr. Pradeep Gupta Mr.Amit RathiFounder & Chairman Co-Founder wise Chairman Managing Director• Gold medalist Chartered • Founder Partner •A rank holder CharteredAccountant Accountant and MBA fromwith over 40 years of •Over 20 years of Leonard N. Stern School ofindustry. experience in financial business, New York.•Formal Executive of Birla and services and capital Market. •Joined the group in 1998 andthe driving force behind setting was instrumental inup of Birla Groups Cement •Key driver of Retail & establishing the groupsand Financial Services Institutional Equities business private wealth managementbusiness among of the group. and investment bankingothers. businesses.•Instrumental in setting up the • Calling him a „FinancialOnline trading system and Guru, theTimes of IndiaCentral Depository Services group, listed Amit inLtd in India. 2008 amongst the top 51 young Marwari‟s in India (under the age of 40)INDUS INSTITUTE OF TECHNOLOGY & ENGINNERING Page 9
  10. 10. EMPLOYEE ATTRITION AND RETENTION STRATEGIES ARG’S REGINIONAL HUB Mumbai head office Central India Delhi and NCR Gujarat Andhra Pradesh Eastern India Rajasthan ROM Southern India U.P and Uttaranchal Dubai London Hong KongINDUS INSTITUTE OF TECHNOLOGY & ENGINNERING Page 10
  11. 11. EMPLOYEE ATTRITION AND RETENTION STRATEGIES INCOMPARABLE PRODUCTS RANGE UNDER ONE ROOF 1) Equities (NSE Cash & BSE cash) 2) Derivatives (NSE F&O) 3) Commodities 4) Currencies 5) E- Gold (Through National Spot Exchange Limited 6) DP (CDSL / NSDL) 7) Portfolio Management Services (PMS) 8) Mutual Funds 9) Fixed Deposits & NCD‟s 10) Loan against Shares (through External Agency) 11) IPO & IPO Funding 12) Life & Non Life Insurance 13) Premium Security (through Spread Co. 14) Specialized Currency Advisory Services etc. 15) Loans(Auto,Personal,Home&BusinessLoans,through External Agency)INDUS INSTITUTE OF TECHNOLOGY & ENGINNERING Page 11
  12. 12. EMPLOYEE ATTRITION AND RETENTION STRATEGIES ARG’S MEMBERSHIPEquity:  National stock exchange (NSE)  Bombay stock exchange (BSE)Commodities:  Multi commodities exchange (MCX)  National commodities exchange (NCDEX)Currency:  National stock exchange (NSE)  MCX-SX (multi commodities exchange- currency)E- Gold:  National spot Exchange Limited (NSEL)Depository participation:  Central depository Service limited (CDSL)  National securities Depository limited (NSDL)INDUS INSTITUTE OF TECHNOLOGY & ENGINNERING Page 12
  13. 13. EMPLOYEE ATTRITION AND RETENTION STRATEGIES SECTORS SERVEDIndustrial and Capital GoodsBusiness ServicesTechnologyTelecomMediaRetailReal EstateConsumer ServicesNatural ResourcesFinancial InstitutionsProfessional ServicesEducationClean EnergyHealthcareInfrastructureTransportation and LogisticsINDUS INSTITUTE OF TECHNOLOGY & ENGINNERING Page 13
  14. 14. EMPLOYEE ATTRITION AND RETENTION STRATEGIES AWARDS & RECOGNITION • Ranked No.1 Domestic Banker 2009, 2010 & 2011 (Wealth Management Company) by Asia Money Poll. • Ms. Priti Gupta got “Women Leader of the year Award" in 2010 in Financial Category by NDTV Profit. • Mr. D. D. Sharma awarded as Best Analyst 2010 by Zee Business. • “Best Contribution in Investor Education in Currency and Category Enhancement of the Year” in Bloomberg UTV Financial Leadership Awards. • Mr. Anand Rathi awarded by Zee Business for his contribution towards India‟s Capital market in January,2010. • Private Wealth Team was awarded for generating the „Highest AUM growth in 2010‟ for Kotak MF (by Mr. Uday Kotak himself) ARG’S CURRENT OPERATION  No(s) Of Clients : 350000+  No(s) Of Direct Employee : 2500+  No(s) Of Registered Sub-brokers : 1000+  Office Presence : 1200+  Location Presence : 320+  International Presence : 3INDUS INSTITUTE OF TECHNOLOGY & ENGINNERING Page 14
  16. 16. EMPLOYEE ATTRITION AND RETENTION STRATEGIES COMPITIORS OF ANANDRATHI SR.NO. COMPANY NAME 1 India Infoline 2 ICICI Direct 3 Share khan 4 India bulls Securities 5 Kotak Securities 6 Motilal Oswal Securities 7 HDFC Securities 8 Angel Trade 9 SBICAP Securities 10 Reliance MoneyINDUS INSTITUTE OF TECHNOLOGY & ENGINNERING Page 16
  18. 18. EMPLOYEE ATTRITION AND RETENTION STRATEGIES INTRODUCTION TO TOPIC EMPLOYEE ATTRITION AND EMPLOYEE RETENTION In the best of worlds, employees would love their jobs, like their co-workers, work hardfor their employers, get paid well for their work ,have ample chances for advancement andflexible schedules so they could attend to personal or family needs when necessary.Specifically at Brokerage industry normally No of employees leaves organization is always high.so For HR manger it is a big challenge to maintain the attrition rate of their organization. HRManager is not only required to fulfil this Responsibility, but also find the right kind of peoplewho can keep pace with the unique work patterns in industry. The toughest concern for an HRManager is However the Attrition Rate.MEANING OF ATTRITION:“The wearing down of an Adversary, making him weaker by repeal attacking them or wearingdown of resources i.e. the process of reducing the number of people who are employed by anorganization by not replacing people who leave the job.”WHAT IS EMLOYEE ATTRITION:“A reduction in number of employeesthrough retirement, resignation or death.”The action or process of gradually reducing the strength or effectiveness of someone orsomething through sustained attack or pressure. The gradual reduction of employees leaving andnot being replaced rather than by their being laid off.INDUS INSTITUTE OF TECHNOLOGY & ENGINNERING Page 18
  19. 19. EMPLOYEE ATTRITION AND RETENTION STRATEGIESWHAT IS ATTRITION RATE: “The rate of shrinkage in size or number.”The rate of shrinkage in size or number of employees is known as Attrition Rate. It is usuallyexpressed in percentage. An Attrition Rate also known as churn rate, can be a measure of twothings. It can be a measure of how many people leave over a certain period of time or how manyemployees leave over a certain period of time. Employee attrition is a serious issue, especially in today‟s knowledge-driven marketplacewhere employees are the most important human capital assets; attrition impacts an organization‟scompetitive advantage. CYCLE OF ATTRITION Decresed Productivity Drivers Greater of Attrition attrition Cost Incresed Reduction/ cost/Redus Austerity ed RevenueINDUS INSTITUTE OF TECHNOLOGY & ENGINNERING Page 19
  20. 20. EMPLOYEE ATTRITION AND RETENTION STRATEGIES  Attrition brings decreased Productivity.  People leave causing others to work harder.  This contributes to more Attrition, which contributes to increased costs and lowers Revenue.  This forces additional cost reduction and austerity measures.  This in turn makes working more difficult, causing the best performers with the most external opportunities to leave COST OF ATTRITION Cost of advertising for new positions the cost and time involved in interviews and background checks, costs associated with search firms or placement agencies, relocation costs of new employees Training and orientation costs The tangible costs of employee attrition would be the cost of training new employees, the recruitment and selection costs, adjustment time, possible product and/or service quality problems, costs of agency workers/temporary staff, the cost of loss productivity, the cost of lost knowledge and the cost of the position remaining vacant till a suitable replacement is found. The intangible costs, which may be even more significant than the tangibles, involve the effect of turnover on organizational culture, employee morale, social capital or organizational memory. All these costs would significantly take away the profitability and the competitive advantage of the firm.INDUS INSTITUTE OF TECHNOLOGY & ENGINNERING Page 20
  21. 21. EMPLOYEE ATTRITION AND RETENTION STRATEGIES REASONS FOR ATTRITION I. Deliberately Ruining the Relationship II. Persistently Annoying the Employee.III. Compelling OfferIV. Expectation is Not Shaped Properly V. Life cycle Changes Not ManagedVI. Developmental Needs Beyond the Functional Are Not MetVII. Wrong Hire THE BRIGHTER SIDE OF ATTRITION: Some employee turnover positively benefits organizations. This happens whenever apoor performer is replaced by a more effective employee, and can happen when a seniorretirement allows the promotion or acquisition of welcome fresh blood. Moderate levels of staffturnover can also help to reduce staff costs in organizations where business levels areunpredictable month on month. In such situations when business is slack it is straightforward tohold off filling recently created vacancies for some weeks.INDUS INSTITUTE OF TECHNOLOGY & ENGINNERING Page 21
  22. 22. EMPLOYEE ATTRITION AND RETENTION STRATEGIES DISADVANTAGES OF ATTRITION1. What’s Your Top Performing Employee Worth to You?Your best employees are invaluable – its as simple as that! For every penny they generate insales, contract negotiation, savings, or whatever it is that they do, theres an untold wealth beingtapped by their skills as ambassadors for your company. The goodwill they engender, therelationships they forge, can be worth more than you can calculate in profit alone.2. So What Do You Lose When One Of Your Top Performers Quits?When that time comes, the cost can be just as hard to calculate. Of course, youll lose the profittheyve been creating. But what about all that goodwill? What about the relationships? Whatabout the positive effect theyve been having on all those around them – inspiring greaterperformance from their colleagues as others aspire to be just like them? You need to know thatwhen you recruit that special person, that you have the systems in place to retain them, andallow them to blossom with you – not force them to take your training and investment and thenlook for a new employer whom they feel will really "appreciate" them!3. Our Employee Engagement Barometer Can Put An End To The Heartache Of Watching Your Top Guns Heading For The Door.The Employee Engagement Barometer TM is essentially an "off-the-shelf" solution, which canbe scaled and adapted to perfectly suit your needs, for a fraction of the cost of recruiting even asingle candidate. Beginning with an initial consultation, well work together to assess youremployee attrition rate, determine the scope of the project and agree the desired outcomes.Youll then have custom made post-induction and exit interviews crafted to get to the very heartof your business. Once the structure is in place, you can hand over the reins to us – freeing upyour time and allowing you to get on with what you do best!INDUS INSTITUTE OF TECHNOLOGY & ENGINNERING Page 22
  23. 23. EMPLOYEE ATTRITION AND RETENTION STRATEGIES EMPLOYEE RETENTIONWHAT IS EMPLOYEE RETENTION?Employee retention refers to the various policies and practices which let the employeesstick to an organization for a longer period of time.Every organization invests time and money to groom a new joined, make him a corporate readymaterial and bring him at par with the existing employees. The organization is completely at losswhen the employees leave their job once they are fully trained. Employee retention takes intoaccount the various measures taken so that an individual stays in an organization for themaximum period of time. It is a process in which the employees are encouraged to remain with the organization forthe maximum period of time or until the completion of the project. Employee retention isbeneficial for the organization as well as the employee. WHAT IS RETENTION ALL ABOUT?R- REMUNERATE COMPETITIVELYE-ENCOURAGEMENT AND EXPECTATIONT-TRAINING AND DEVELOPMENTA-ANNUAL REVIEW CYCLESI- INFORM AND INVOLVEN- NURTUREINDUS INSTITUTE OF TECHNOLOGY & ENGINNERING Page 23
  24. 24. EMPLOYEE ATTRITION AND RETENTION STRATEGIES NEED & IMPORTANCE OF EMPLOYEE RETENTIONLet us understand why retaining a valuable employee is essential for an organization. Hiring is not an easy process: An organization invests time and money in grooming an individual and makes him ready to work and understand the corporate culture: When an individual resigns from his present organization, it is more likely that he would join the competitors: The employees working for a longer period of time are more familiar with the company‟s policies, guidelines and thus they adjust better: It has been observed that individuals sticking to an organization for a longer span are more loyal towards the management and the organization It is essential for the organization to retain the valuable employees having high potential.INDUS INSTITUTE OF TECHNOLOGY & ENGINNERING Page 24
  26. 26. EMPLOYEE ATTRITION AND RETENTION STRATEGIES 2. ENVIRONMENT: Types of environment the employee needs in an organization: I. Learning environment: II. Supportive environment. III. Work environment. 3. GROWTH: Growth and Career Growth and development are the integral part of every individual‟s career. If an employee can not foresee his path of career development in his current organization, there are chances that he‟ll leave the organization as soon as he gets an opportunity. The important factors in employee growth that an employee looks for himself are: •Work profile •Personal growth and dreams •Training and development: 4. RELATIONSHIP  Relationship with the immediate manager:  Relationship with colleagues  Induce loyalty 5. SUPPORT: Employers can support their employees in a number of ways as follows: •By providing feedback •By giving recognition and rewards •By counselling them •By providing emotional supportINDUS INSTITUTE OF TECHNOLOGY & ENGINNERING Page 26
  27. 27. EMPLOYEE ATTRITION AND RETENTION STRATEGIES COMMON EMPLOYEE RETENTION STRATEGIESThe basic practices which should be kept in mind in the employee retention strategies are:1. Hire the right people in the first place.2. Empower the employees: Give the employees the authority to get things done.3. Make employees realize that they are the most valuable asset of the organization.4. Have faith in them, trust and respect them.5. Provide them information and knowledge.6. Keep providing them feedback on their performance.7. Recognize and appreciate their achievements.8. Keep their morale high.9. Create an environment where the employees want to work and have fun. A. These practices can be categorized in 3 levels: * Low * medium * high levelINDUS INSTITUTE OF TECHNOLOGY & ENGINNERING Page 27
  29. 29. EMPLOYEE ATTRITION AND RETENTION STRATEGIES ROLE OF HR IN EMPLOYEE RETENTION The Human Resource team plays an important role in employee retention. Let us find out their role in the same:  Whenever an employee resigns from his current assignments, it is the responsibility of the HR to intervene immediately to find out the reasons which prompted the employee to resign  It is the duty of the HR to sit with the employee and discuss the various issues face to face. Understand his problems and listen to his side of the story as well..  The HR person must ensure that he is recruiting the right employee who actually fits into the role. A right person doing the wrong job would never find his job interesting and certainly look for a change.  The human resource department must conduct motivational activities at the workplace. Organize various internal as well as external trainings which help the employees to learn something extra apart from their routine work.  The HR must launch various incentive schemes for the top performers to motivate them. This way the employees feel important for the organization and strive hard to perform even better the next time.  Performance reviews are a must. The HR along with the respective team leaders must monitor their team member‟s performance to ensure whether they are enjoying the work or not. The HR professional must try his level best to motivate the employees, make them feel special in the organization so that they do not look for a change.INDUS INSTITUTE OF TECHNOLOGY & ENGINNERING Page 29
  30. 30. EMPLOYEE ATTRITION AND RETENTION STRATEGIES CHALLENGES IN EMPLOYEE RETENTION  Monetary dissatisfaction is one of the major reasons for an employee to look for a change. Retention becomes a problem when an employee quotes an exceptionally high figure beyond the budget of the organization and is just not willing to compromise.  In the current scenario, where there is no dearth of opportunities, stopping people to look for a change is a big challenge. Employees become greedy for money and position and thus look forward to changing the present job and join the competitors..  Individuals speak all kind of lies during interviews to get a job. It is only later do people realize that there has been a mismatch and thus look for a change. Problems arise whenever a right person is into a wrong profile. The human resource department should be very careful while recruiting new employees.  Some individuals have a tendency to get bored in a short span of time. They might find a job really interesting in the beginning but soon find it monotonous and look for a change. The management finds it difficult to convince the employees in such cases.  Unrealistic expectations from the job also lead to employees looking for a change. An individual must not look for a change due to small issues. One needs time to make his presence feel at the organization and must try his level best to stick to it for a good amount of time and ignore petty issues.INDUS INSTITUTE OF TECHNOLOGY & ENGINNERING Page 30
  31. 31. EMPLOYEE ATTRITION AND RETENTION STRATEGIES HOW TO RETAIN THE KEY TELANT  Work should never become monotonous and must offer a new learning each day.  Every individual should enjoy privacy at the workplace  Every employee should be treated as one irrespective of his designation.  The management must formulate employee friendly policies.  Incentives, cash prizes, trophies, perks should be given to deserving employees to motivate them to perform up to the mark every time.  The performers must be made to participate in the decision making process.INDUS INSTITUTE OF TECHNOLOGY & ENGINNERING Page 31
  33. 33. EMPLOYEE ATTRITION AND RETENTION STRATEGIES RESEARCH METHODOLOGY Research methodology is a way to systematically solve the research problem. It may beunderstood as a science of studying how research is done scientifically. In it we study steps thatare generally adopted by a researcher in studying his research problem along with the logicbehind them.PROBLEM STATEMENT:- “ A STUDY ON ATTRITION ANDRETENTION STRATEGY AT ANANDRATHI”. SIGNIFICANCE OF THE STUDY  The significance of the study lies in the detonation of the BROKERAGE industry in the recent years.  Where on one hand the sector is growing with leaps and bounds, on the other the employee turnover has been alarmingly high, thus costing a lot to the company.  The study is an attempt to assess the patterns of attrition in ANANDRATHI and analyze the Key factors of attrition rate and retain the employees.INDUS INSTITUTE OF TECHNOLOGY & ENGINNERING Page 33
  34. 34. EMPLOYEE ATTRITION AND RETENTION STRATEGIES LITERATURE REVIEW Employee attrition, a big cause for concern for firms, ranges between 15 per centand 20 per cent. A company is not hurt because a certain person has left. The company ishurt because he/she takes away certain knowledge, and there is no ready replacement in themarket. However, when jobs were scarce, the technology change was less rapid, voluntaryattrition was small and companies managed it. However, with technology changing rapidly andmanpower costs increasing, attrition is high and hurts badly.Many research and articles have been made on factors affecting attrition and retention strategy.According to Employee vulnerable study by NFO India 83% of employees are likely to seek newemployment as the economy booms.48% of managers are likely to seek new employment withthe improving economy. 56% of HR professionals indicated it is likely that voluntary turnoverwould rise due to the improving economoy. According to Phillips and Connell (2003:7), major changes have occurred in organizationsboth internally and externally – making the employee retention issue more critical today than inprevious years. Unfortunately, these changes will only worsen the crisis in the future.The following are the external drivers of retention: Economic growth, slower growth of job seekers, Unemployment rate at low levels, Shortage ofspecial skill, Entrepreneurship, Job changes for more favorable climate.The following internal drivers, as highlighted by Phillips and Connell (2003:10) have atremendous impact on turnover:Lack of organizational loyalty, Desire for challenging and useful work, Need for autonomy,flexibility, and independence, Need for performance-based rewards, Need for recognition ofparticipation, accomplishments and contributions, Desire for all types of benefits, Career growth,need for caring supportive environment, need for work/life balance.Line managers have a key role in the employee retention process. As the person who has themost direct and immediate supervisory contact with the employee, the line manager is a criticalINDUS INSTITUTE OF TECHNOLOGY & ENGINNERING Page 34
  35. 35. EMPLOYEE ATTRITION AND RETENTION STRATEGIESplayer in the implementation of a job retention strategy (Thornton, 1998; Côte et al. 2000;Krause et al. 2001;Unger et al. 2002). Livermore et al. (2001), note that the behaviors of immediate supervisors and especiallytheir understanding of disability management and workplace accommodations plays a major rolein supporting employees. When supervisors have a poor understanding in these areas,employment retention processes often fail.In a study of 31,200 Boeing employees, Colledge & Johnson (2000) found a strong correlationbetween the incidence of lost-time soft tissue injuries and a poor supervisor relationship, whileForeman et al. (2006) identify low or inadequate support from supervisors and colleagues thathave a negative impact on job retention/return-to-work outcomes.Cunningham et al. (2003) recommend that the content of training delivered to managers shouldinclude the requirements of employment equality legislation and the possible implications of anemployer failing to take appropriate action to facilitate an employee‟s retention. Horwitz (2008:1) points out that in Asia, China and Japan, the problem of lack of skilledworkers is seen to be the biggest threat organisations will face in the future. This places morepressure on South African organisations to compete for skilled labour in the global labour pool.In South Africa, according to Horwitz (2008:1), organisations are failing to retain workers,owing to the fact that employees quit their jobs because of lack of career advancement andineffective utilization of their knowledge and skills. Attrition in India today is alarmingly high. The striking aspect is the insights differentsurveys and studies throw. According to Mercer‟s study(1) (2011), almost 54% of Indians areseriously considering leaving their organization. This may not be directly connected to„satisfaction with their organization‟; 66% of employees aged <25 are seriously consideringleaving, but lead all age groups in satisfaction with their organization at 82%. The traditionalunderstanding always points towards satisfaction as the reason of attrition – if satisfaction ismore, attrition should be less.INDUS INSTITUTE OF TECHNOLOGY & ENGINNERING Page 35
  36. 36. EMPLOYEE ATTRITION AND RETENTION STRATEGIES OBJECTIVE OF THE STUDY  To understand the factors central to attrition.  To calculate and analyse the attrition rate of Anandrathi..  To suggest the activities that they might undertake in order to decrease attrition rate & retain employees.  To take efforts and measures to improve the situation and conditions of employment for retaining key talent.  To understand the rules and policies followed by the organization of Exit interview. ASSUMPTIONS The assumptions made during the course of this project are as follows:  The information provided by the person contacted is not having any kind of bias.  The sample taken will represent the fair idea about study.  It is believed that the employees will provide the real and authentic information.INDUS INSTITUTE OF TECHNOLOGY & ENGINNERING Page 36
  37. 37. EMPLOYEE ATTRITION AND RETENTION STRATEGIES RESEARCH DESIGNResearch : ExploratoryData Source : Primary DataResearch Technique : Telephonic Interview(The list of questions used for survey is shown in Annexure and the type of questions is openended.)INDUS INSTITUTE OF TECHNOLOGY & ENGINNERING Page 37
  38. 38. EMPLOYEE ATTRITION AND RETENTION STRATEGIES SAMPLING PLAN: Sampling Unit: The sampling unit mainly consists of employees who had left Anandrathi in 2010-11 from overall Gujarat. Sample Size: We have done telephonic survey of about 150 employees out of which 120 have answered. So the sample size taken for analysis is 120. SOURCES OF DATA: Primary Data: Primary data has been collected through unstructured Questions having an informal talk with the employees who had left Anandrathi through telephone.INDUS INSTITUTE OF TECHNOLOGY & ENGINNERING Page 38
  39. 39. EMPLOYEE ATTRITION AND RETENTION STRATEGIES LIMITATION OF STUDY T LIMITATIONS:IONS:ATIONS: There are also some limitations of this project, which must be kept in mind, they are as follows: Time was the most critical limiting factor. The responses from the employees could be casual in nature. This may be due to lack of interest or time on their part. Sample size taken is of 120, due to which we may not get the proper results. The method of study was the unstructured questions by telephonic survey which has its own limitations.INDUS INSTITUTE OF TECHNOLOGY & ENGINNERING Page 39
  41. 41. EMPLOYEE ATTRITION AND RETENTION STRATEGIES ATTRITION RATE OF ANANDRATHI (The formula and correct logic behind calculation of ATTRITION RATE) ((No. Of attritions x 100) / (Actual Employees + New Joined)) /100Attrition rate of 2010: Actual Employees No. Of people left No. Of Joined Total Employees (Opening BAL) (Attritions) (Current Headcount) 180 75 30 135So according to the formula: ((75 x 100) / (180 + 30)) / 100Which comes to 0.3571 i.e. 36%So Attrition rate in 2010 is 36%Attrition rate of 2011: Actual Employees No. Of people left No. Of Joined Total Employees (Opening BAL) (Attritions) (Current Headcount) 135 44 23 114So according to the formula: ((44 x 100) / (135+23)) / 100Which comes to 0.2784 i.e. 28%So Attrition rate in 2011 is 28%INDUS INSTITUTE OF TECHNOLOGY & ENGINNERING Page 41
  42. 42. EMPLOYEE ATTRITION AND RETENTION STRATEGIES ATTRITON RATE 28% 36% 2010 2011INTERPRETATION OF ABOVE GRAPH:  From the above graph we can analyse that the attrition rate in 2010 was 36% whereas in 2011 it was 28%.  The attrition rate in 2011 has decreased by 8% which is a good thing for Anandrathi.INDUS INSTITUTE OF TECHNOLOGY & ENGINNERING Page 42
  43. 43. EMPLOYEE ATTRITION AND RETENTION STRATEGIES ANALYSIS DONE DURING OUR TRAININGWe have done analysis of employee attrition at Anandrathi for GUJARAT. There are total 7branches currently. But we have taken the 2010 and 2011 attrition data at that time there were 13branches and the no. of employees left the company according to the location are describedbelow:BRANCHES NUMBER OF EMPLOYEES LEFTAdajan 3Anand 8C.G.Road 12Chandkheda 3Jetalpur 29Sattelite 20Surat 24Surat-Ringroad 7Vadodara-1 2Vadodara-Commodities 5Vadodara-Retail 4Varachha 2Vyara 1INDUS INSTITUTE OF TECHNOLOGY & ENGINNERING Page 43
  44. 44. EMPLOYEE ATTRITION AND RETENTION STRATEGIES TELEPHONIC SURVEY TELEPHONIC SURVEY:We have done telephonic survey of total 150 employees out of which 120 have shared the TELEPHONIC SURVEY:reasons for their resignation. Their distribution is as shown below. SUB-DEPARTMENT NO. OF EMPLOYEES Client Acquisition 4 Sales 40 Dealing 24 Offline Broking 6 Cross Products 27 Franchisee Network 7 Online Services 8 Demat 2 Operation & Support 2INDUS INSTITUTE OF TECHNOLOGY & ENGINNERING Page 44
  45. 45. EMPLOYEE ATTRITION AND RETENTION STRATEGIES GRAPHICAL REPRESENTATION OF TELEPHONIC SURVEY 40 40 35 30 25 24 27 20 15 10 4 6 7 8 5 0 3 NO. OF EMPLOYEES LEFT 2 INTERPRETATION OF ABOVE GRAPH:  From the above graph we can analyse that maximum number of employees of Sales Department and Cross product department (have to sell third party product)leave the company and go for seeking better opportunity .  While least number of employees of Operation & support and de-mat department leave the job.INDUS INSTITUTE OF TECHNOLOGY & ENGINNERING Page 45
  46. 46. EMPLOYEE ATTRITION AND RETENTION STRATEGIES REASONS FOR ATTRITION OF EMPLOYEES AND THE NUMBER OF EMPLOYEES: REASONS NUMBER OF EMPLOYEESStress from overwork and work-life imbalance 20Better Salary And Opportunity 49Too few growth and advancement opportunities 19Own Business 21Problem With The Company Culture And Supervisor 10Behaviour GRAPHICAL ANALYSIS OF THE SURVEY 49 50 45 40 35 30 20 21 25 19 20 15 10 N0. of Employees 10 5 0 Stress Better Too few Own Problem from Salary- growth - Business With The overwork- Bank Culture-INDUS INSTITUTE OF TECHNOLOGY & ENGINNERING Page 46
  47. 47. EMPLOYEE ATTRITION AND RETENTION STRATEGIESINTERPRETATION OF THE GRAPH:  From the above graphical analysis we can conclude that the maximum number of employees leave the Company for better salary and opportunity.  The next most common reason is few growth opportunities and starting of their own business. 10 20 Stress from overwork and work- life imbalance 21 Better Salary And Opportunity Too few growth and advancement opportunities Own Business 19 49 Problem With The Company Culture-INDUS INSTITUTE OF TECHNOLOGY & ENGINNERING Page 47
  48. 48. EMPLOYEE ATTRITION AND RETENTION STRATEGIES RETENTION STRATEGIES USED AT ANAND RATHI  Gives Warm welcome to the new joined.  Provide them full information and knowledge about their products and Services.  Recognize and appreciate their achievements by giving Rewards ( gifts, certificates, monetary and non monetary rewards).  Gives an environment where the employees want to work and can have fun. During my 6 weeks training, I have noticed fun at work atmosphere at Anand Rathi.  Provides training and development and personal growth opportunities to the employees.  Intranet (intrarathi software) and internet is used as they provide full accesses to the information Newsletters, notice boards, etc.  Celebrate birthday and anniversary of employees. Sends them a birth card for warm wishes.  Med claim policy, travel expense policy, mobile expense policy, accidental policy, laptop policy are used for higher job satisfaction as well as to retain the employee.  Employee referral policy is also used in which they give incentive from 5000 to 25000 according to the post.  For retaining women employees they use special grievance policy.INDUS INSTITUTE OF TECHNOLOGY & ENGINNERING Page 48
  50. 50. EMPLOYEE ATTRITION AND RETENTION STRATEGIES FINDINGS TELEPHONIC SURVEY: TELEPHONIC SURVEY:  From the above analysis of attrition rate in Anandrathi we can conclude that the employees are facing different problems due to which they resign or leave their supervisor or company.  The attrition rate in 2010 was 36% that is decreased in 2011 and reached to 28% which is a good thing for anandrathi.  From the above study we can note that 41.83% of the employees resign for better salary and opportunity.  Highest no. Of employees left are from sales department.  The other most serious problems that arises is few growth opportunity is 15.83% and leaving the company for starting their own business is 15%.  As the company‟s structure is flat and work atmosphere is good the least number of employees left because of company culture and behaviour of the supervisor.INDUS INSTITUTE OF TECHNOLOGY & ENGINNERING Page 50
  51. 51. EMPLOYEE ATTRITION AND RETENTION STRATEGIES SUGGESTION TELEPHONIC SURVEY:  As maximum number of employees has left the company for better salary so company should TELEPHONIC SURVEY: time interval. give hike in their salary at regular  As per their salary the work load is too much for employees so the company should decrease the work load for employees.  As sitting arrangement is very congested at anandrathi so company should increase their space of working so the employees can feel relaxed and can enjoy work.  The company should increase their staff of HR department in whole Gujarat for effective working as well as for retaining the key talents.INDUS INSTITUTE OF TECHNOLOGY & ENGINNERING Page 51
  53. 53. EMPLOYEE ATTRITION AND RETENTION STRATEGIES CONCLUSION TELEPHONIC SURVEY:  The study helped in TELEPHONIC SURVEY: understanding the relative important factors responsible for employee attrition.  Our study helped in finding out the most critical reason of attrition at anandrathi that is salary better opportunity.  From our study we also found that maximum numbers of employees who leave the company were from sales department.  We also learned that though the salary might be high, employee would be willing to change their job for better development and opportunity as the second most critical reason is low growth and advancement opportunity.  Anandrathi can retain employees by dealing with the most two critical factors behind attrition.  Apart from the project there was also lots of things we learned at ananrathi which enhance our HR skills and gain a better understanding of functioning of HR.(like using the job portals like naukri.com, times job.com for job searching, job posting, mass mailing, Taking interviews, how to evaluate the candidates ,orientation, making offer letters etc.)INDUS INSTITUTE OF TECHNOLOGY & ENGINNERING Page 53
  54. 54. EMPLOYEE ATTRITION AND RETENTION STRATEGIES BIBLIOGRAPHY TELEPHONIC SURVEY: TELEPHONIC SURVEY: 1) Human resource management C.B.Memoria 2) Business Reserch methods Donald r copper, Pamela s schindler 3) Newspaper WEBLIOGRAPHY: (1) http://www.rathi.com (2) http://www.google.co.in/images?hl=en&source=imghp&q=electrotherm&gbv=2&aq=f&aqi=&a ql=&oq=&gs_rfai= (3) www.wikipedia.com (4) http://www.managementstudyguide.com/employee-retention.htmINDUS INSTITUTE OF TECHNOLOGY & ENGINNERING Page 54
  56. 56. EMPLOYEE ATTRITION AND RETENTION STRATEGIES ANNEXURE TELEPHONIC SURVEY:This list of the questions listed TELEPHONIC by the company for telephonic interview: below is suggested SURVEY: 1. Name of the employee: 2. Branch name in which they were working: 3. supervisor‟s name in which they were working: 4. At which post they are working in Anandrathi? 5. What salary they were offered in Anandrathi? 6. What are the reasons for leaving the bank? 7. Currently where they are working? 8. At which post and salary?INDUS INSTITUTE OF TECHNOLOGY & ENGINNERING Page 56
  57. 57. EMPLOYEE ATTRITION AND RETENTION STRATEGIES EXIT INTERVIEWName: Employee Code:Designation: Department:Reporting Authority: Department Head:(1 being lowest and 4 being highest)THE JOB 1 2 3 41. The Opportunity to use your abilities and skills.    2. Recognition for the work you did.    3. Duties and Responsibilities were in Line with IPMs set.    4. The opportunity to do challenging and interesting work.    COMMUNICATION, POLICIES & PRACTICES 1 2 3 41. The opportunity to talk with your Superior on a regular basis.    2. Information received on Company’s policies, programs and   projects through IWIN and your Superior.3. Performance Appraisal, HR Policies and setting of IPM.    WORKING CONDITIONS AND BENEFITS 1 2 3 41. Physical working conditions.    2. Opportunities to participate in decision-making.    3. Reception of new and original ideas.    4. Medical Benefits.    5. The Company as a place to work.   INDUS INSTITUTE OF TECHNOLOGY & ENGINNERING Page 57
  58. 58. EMPLOYEE ATTRITION AND RETENTION STRATEGIESWHAT DID YOU THINK OF YOUR SUPERIOR ON THE FOLLOWING POINTS? YES NO1. was consistently fair  2. Provided recognition  3. Resolved complaints  4. was sensitive to employees needs  5. Provided feedback on performance  6. was receptive to open communication  WHAT WERE YOUR MOST IMPORTANT REASONS FOR LEAVING?Primary Reasons (Compulsory) Secondary ReasonsBetter Pay Better PayBetter Prospect Better ProspectDissatisfaction with Job Dissatisfaction with JobHigher Study Higher StudyMedical Problem Medical ProblemPersonal Reason Personal ReasonRelocation RelocationPersonal Conflict with Superior Personal Conflict with SuperiorINDUS INSTITUTE OF TECHNOLOGY & ENGINNERING Page 58
  59. 59. EMPLOYEE ATTRITION AND RETENTION STRATEGIESEXIT INTERVIEW When did you start thinking of resigning from the Job? One thing/ policy you like about Anandrathi? One thing/ policy you would like to change in I Anandrathi? Would you recommend Anandrathi to a friend as a good place to work for? If No, why not? Would you consider working for Anandrathi in future? If No, why not? If we could change some things to get you back, what would they be?Signature of Employee DateSignature of Interviewer PlacePlease give your personal email id and contact number for future communication.E-mail: Tel/ Mobile:INDUS INSTITUTE OF TECHNOLOGY & ENGINNERING Page 59
  60. 60. EMPLOYEE ATTRITION AND RETENTION STRATEGIESEXIT FORMEmp. Name: _____________________________________ Emp. Code: ____________________Date of Joining: _____/______/___________ Date of leaving: _____/______/___________Notice period served(Y/N no of days): ________Notice period waived: _________________Leave taken: _________________ Accrued: _________________Dues Amount(Rs) Advances Amount(Rs) Net Payable (Amount Rs)Salary LoanReimbursement IOU takenOther OthersTotal TotalAmt Received in full settlement (Rs) By Chq No. _____________Drawn on Bank ______________________________________ Dated _________________I hereby declare that I am resigning from the company and above information is true andcorrect. I shall be personally responsible for any false information. I also undertake to informcredit card, bank and cell phone Company for discontinuation of my servicesAnd also undertake that payment of these outstanding will be my personal responsibility.I further declare that I have not violated any confidentiality conditions and shall comply withthem even after leaving the company. I confirm that I do not have any document or informationrelated to the company’s business, customer’s etc. I also confirm that all my dues have beenfully settled and there is no outstanding payable from the company to me._________________________________Signature of the Department Head Signature of the EmployeeINDUS INSTITUTE OF TECHNOLOGY & ENGINNERING Page 60
  61. 61. EMPLOYEE ATTRITION AND RETENTION STRATEGIES EXIT FORM For Office Use OnlyS.No Particulars Applicable Responsibilities Remarks (Yes/No) Name Signature 1 Exit Interview 2 Job responsibilities handed over to 3 HR related formalities 4 Company assets/documents returned to 5 Mail ID disconnected/ Web ID disconnected 6 Server/Other confidential Password Changed 7 IOU/Loan Cleared / Corp. credit card 8 ID Card Returned 9 Sim Card / Data Card 10 Handover of office keys/floppies etc 11 Desktop 12 Printer 13 Any Other Signature of the Dept Head ______________ Signature of the HR Dep_______________ INDUS INSTITUTE OF TECHNOLOGY & ENGINNERING Page 61