A Comparative Study on Push vs. Pull Process using Employee Turnover of Maruti Suzuki and Ford

1. Comparative Study on Push Pull Process
By: Bhanu Arora

2. Comparative Study on Push Pull Process
Employee Turnover:
Employee turnover refers to the number or percentage of workers who leave an organization and
are replaced by new employees. Measuring employee turnover can be helpful to employers that
want to examine reasons for turnover or estimate the cost-to-hire for budget purposes. Blanket
references to turnover can be confusing; therefore, specific definitions and calculations for
employee turnover may be useful to human resources practitioners.
This statistic shows the share of average share of staff turnover among Indian companies, by
industries in the fiscal year 2018.

3. About Maruti Suzuki
• Maruti Suzuki India Limited, formerly known
as Maruti Udyog Limited, is an automobile
manufacturer in India.
• It is a 56.21% owned subsidiary of the Japanese car
and motorcycle manufacturer Suzuki Motor Corporation. As of July 2018, it had a market
share of 53% of the Indian passenger car market.
• Maruti Suzuki manufactures and sells popular cars such as the Ciaz, Ertiga, Wagon
R, Alto K10, Swift, Celerio, Swift Dzire, Baleno and Baleno RS, Omni, Alto
800, Eeco, Ignis, S-Cross.
• The company is headquartered at New Delhi. In May 2015, the company produced its
fifteen millionth vehicle in India, a Swift Dzire.
Employee Turnover of Maruti Suzuki
• Thanks to strong demand for its new products, Maruti Suzuki’s workforce has been
growing steadily over the past few years. During 2016-15, the total number of employees
at India’s largest passenger car company stood at 25,161.
• Between 2013-14 and 2015-16, the company increased hiring of contract workers by
61.5% from 6,578 workers to 10,626 workers. During the same period, MSIL increased
its permanent employee strength by 5.67% from 12,547 to 13,259.
• Currently the total strength of Maruti Suzuki is 40,000
Reasons of Employee Turnover at Maruti
• Maruti plans to induct younger professionals into to the senior management cadre and
devise salaries linked to performance even as it hikes entry-level pay, and throws in novel
incentives to hold on to its executives on the fast track.
Maruti has increased performance-linked pay from junior levels to the top management

4. by between 10% and 25%. "We have linked our variable pay to the financial performance
of the company with a greater focus on cash variables as the liability is lower,"
Strategies used by Maruti Suzuki for employee turnover
• Pay structure
• Work load
• Recreation facility
• Accommodation facility
• Transport facility
• Rewards & Recognition
• Holiday packages

5. About Ford
• Ford India Private Limited is a wholly owned
subsidiary of the Ford Motor Company in India.
• Ford India Private Limited began production in
1926 as a subsidiary of the Ford Motor Company
of Canada, but was shut down in 1954 as the
company was in loss. Ford re-entered the market in October 1995 as Mahindra Ford
India Limited (MFIL), a 50-50 joint venture with Mahindra & Mahindra Limited. Ford
increased its interest to 72% in March 1998 and renamed the company Ford India Private
Limited.
Employee Turnover of Ford India
• Between 2013-14 and 2015-16, the company increased hiring of contract workers from
1,100 workers to 5,000 workers. During the same period, Ford India increased its
permanent employee strength from 4,000 to 5,000.
• Currently the total strength of Ford India is 10,000.
Reasons of Employee Turnover at Ford
In a series of focus groups across all regions, employees were attracted to Ford:
• Ford’s history, reputation and brand value
• The development and career opportunities available
• The range of both formal and informal training opportunities
• The importance of diversity
• The people, the family culture and Ford values
Strategies used by Ford for employee turnover

6. Push Vs. Pull Factors
• There are many reasons that employees leave an organization, and it is important to
understand, track, and analyze those reasons. In order to retain and engage employees,
your organization should make an effort to understand if employees are being pushed or
pulled out of your organization.
Push Factor
• Push factors are aspects that you, as an organization, have control over. These factors
include poor leadership, lack of career development and unclear career paths, lack of

7. recognition, non-competitive pay and benefits, and/or poor communication to name a
few. These are the factors you should be focusing on improving.
Pull Factor
• Pull factors are factors from the outside of your organization. These factors include
another company’s total rewards package, an employee’s desire to change careers, family
obligations, and office location to name a few.

8. Conclusion
• Both of the companies are using pull factor as there employee factor. Thus, providing
Employee Satisfaction.
• While Ford India provides employee welfare, maruti suzuki has a completely different
thought process of providing early promotion and opportunities to freshers.