This document is a report submitted by waQas ilYas to Sir Khawaja Imran on the topic of employee turnover. It begins with an acknowledgement, abstract, and dedication. The main body defines employee turnover and discusses factors that affect turnover such as compensation, communication, competency, and advancement opportunities. It also covers the costs of turnover and ways to reduce it such as consulting employees, incentive programs, and flexible work hours. Different types of turnover like involuntary and voluntary are also compared.

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Submitted to: Sir Khawaja Imran
Submitted by: waQas ilYas(BA582702)
ALLAMA IQBAL OPEN UNIVERSITY
Course Human Resource Management
Code (8502)
Semester Autumn, 2014
Level MBA Marketing (3½ Years)
Tutor Sir Khawaja Imran
Name waQas ilYas
Roll # BA 582702
Assignment # 02
Topic = Employee Turnover

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Submitted to: Sir Khawaja Imran
Submitted by: waQas ilYas(BA582702)
ACKNOWLEDGEMENT
All gratitude and thanks to almighty “ALLAH” the gracious,
the most merciful and beneficent who gave me courage to
undertake and complete this task. I am very much obliged
to my ever caring and loving parents whose prayers have
enabled to reach this stage.
I am grateful to almighty ALLAH who made me able to
complete the work presented in this report. It is due to HIS
unending mercy that this work moved towards success.
I am highly indebted to my course instructor for providing
me an opportunity to learn about the “which is vital
ingredient” of MBA program. I am very grateful to my
teacher (Sir Khawaja Imran) for providing me guideline for
the completion of this report.
I feel great pride and pleasure on the accomplishment of
this report.

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Submitted to: Sir Khawaja Imran
Submitted by: waQas ilYas(BA582702)
ABSTRACT
This report is the Practical part of the most vital practice of
our MBA-Marketing program. The sole objective of my
activity is to familiarize with the practical manipulation of
business organization. This report has been written to know
how big organizations like Habib Bank Limited manage their
teams to achieve their common goals.
In the first phase of the report there is the general
introduction about the company and then different terms
have been explained, then the mission, values, different
services and different strategies of the organization have
been explained. In the next part, SWOT analysis of the firm
have been done by the help of which it is identified that
what are the strong areas of the company and where it
lacks so that it can improve, and then in the end most
important my experience while visiting in the HBL.

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Submitted to: Sir Khawaja Imran
Submitted by: waQas ilYas(BA582702)
DEDICATION
This report is dedicated to the greatest man in the world
that shows us the right path. Who is the great patron of the
mankind that is Holy Prophet Hazrat Muhammad (PBUH).
I would also like to dedicate this small effort of extract to my
Parents and Teachers. They have always been a shining star
to look upon, to give light and to show me the directions
whenever I am lost. May Allah give them more strength and
long life to guide me forever. Ameen!

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Submitted to: Sir Khawaja Imran
Submitted by: waQas ilYas(BA582702)
Table of Contents
Introduction of Topic 06
Practical Review of Company 13
Vision Statement 15
Mission Statement 15
Application of Topic 16
SWOT Analysis 20
Conclusion 21
Recommendations 21
References 22

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Submitted to: Sir Khawaja Imran
Submitted by: waQas ilYas(BA582702)
Introduction of Topic:
Employee Turnover
Employee turnover is a measure of how many employees
leave an organization and are replaced each year. A
turnover rate of 25 percent would mean that 25 percent of
employees who were working at the start of the year had left
the company by the end of the year. Some employee
turnover is inevitable in any organization, but a high turnover
rate can cost your business money and lead to a dissatisfied
and unproductive workforce.
High staff turnover costs your company money in terms of lost
production and the costs to recruit new employees.
Excessive turnover metrics can vary from industry to industry,
but 20 percent employee attrition is considered high
turnover, according to Judy Capko, writing on the Academy
of American Family Physicians website. When you
understand what causes high turnover rates, you can
develop policies that will reverse the trend and maintain
productive staffing levels.
Industry Variations
Turnover can vary greatly from industry to industry. For
example, turnover in the fast-food industry can be as high as
50 to 75 percent, and fast-food restaurants may build high

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Submitted to: Sir Khawaja Imran
Submitted by: waQas ilYas(BA582702)
turnover into their cost calculations. The U.S. Bureau of Labor
Statistics reports that average yearly turnover in all industries
is close to 32 percent. Public sector organizations are also
affected by turnover. For example, a study by the National
Commission on Teaching and America's Future found that
the national teacher turnover rate, as of 2008, was almost 17
percent. High teacher turnover causes schools to spend
scarce resources on finding and training new teachers and
can reduce the effectiveness of the school.
Important sub topics
Important sub topics are:
Factors Affecting Turnover
High turnover tends to occur in jobs where employees view
themselves as undervalued. Low pay is one factor, but
turnover also increases when employees feel they are not
treated with respect and where there is a lack of teamwork,
or where management is viewed as arbitrary and overly
demanding. A lack of flexible work scheduling can also
cause employees with families, especially women, to leave a
job. Turnover can also increase when there is a change to
the corporate structure, such as a merger or a major
organizational restructuring. Jobs where there are high levels
of stress or injury, such as police officer, child-care worker and
construction worker, may also have higher level of turnover.

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Submitted to: Sir Khawaja Imran
Submitted by: waQas ilYas(BA582702)
Costs of Turnover
Costs associated with employee turnover include covering
the vacancy, advertising the position and training new hires.
The loss of experienced employees can also lead to a "brain
drain," which can make your company less competitive. In
addition to these obvious costs, there are hidden costs of
employee turnover. These include stress on existing staff who
have to cover the position, lower productivity and reduced
customer service. In offices with high employee turnover, staff
morale may be low, as employees view the business as a
career dead end or a depressing place to work, and this can
also affect productivity.
Reducing Employee Turnover
If your business has a high rate of employee turnover, consult
staff to find out what they makes them unhappy. Train
management to deal appropriately with staff grievances
and discipline. Consider incentive programs, such as
productivity bonuses or offering employee stock options.
Providing more flexible work hours and conditions may also
prevent staff, particularly those with young children, from
leaving.
Advancement
Employees need to feel challenged and have career goals
to work toward in order to feel motivated. When your small
business is unable to provide career advancement to your
staff, you may start to experience high levels of turnover.

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Submitted to: Sir Khawaja Imran
Submitted by: waQas ilYas(BA582702)
Advancement can come in the form of expanded
responsibility that an employee can use to improve her
resume. For example, creating teams to handle special
company projects is an opportunity to allow some
employees to be team leaders, while others get the chance
to work on something that is different than their usual job
duties.
Communication
To retain employees, company management needs to
reach out and communicate with the staff. Field input and
suggestions from staff members and implement the ideas
that work best for the company. Allow employees to affect
the work environment and give employees a chance to
have a hand in determining the company's success.
Alienating employees with closed-door management
policies and ignoring employee input will lead to high
turnover.
Competency
When employees are consistently assigned work duties that
they do not feel competent enough to complete, it can lead
to employee attrition, according to Capko. Managers need
to regularly evaluate employee skill levels and assign work
that is in line with the employee's qualification. If
management would like to add to an employee's job duties,
the employee needs the necessary training before job duties
can be assigned. Consistently putting employees in a position

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Submitted to: Sir Khawaja Imran
Submitted by: waQas ilYas(BA582702)
to fail by not paying attention to skill sets results in a frustrated
staff.
Compensation
Analyse your current pay structure to make sure it is
competitive in your industry. If you are experiencing high
turnover, and exit interview results indicate that
compensation is a problem, you may find that your pay
structure is not making your company a competitive
employer.
Create a base pay structure that entices employees to stay,
and use performance bonus programs to motivate
employees to be more productive. Performance bonuses
also help employees to feel that their hard work was noticed
by the company and they can help improve morale.
Comparison
Although different types of turnover exist, the general
definition is that turnover occurs when the employment
relationship ends. Turnover and attrition -- terms that are
sometimes used interchangeably or together when
describing the departure of an employee -- are different.
Attrition generally refers to the end of the employment
relationship due to retirement, job elimination or employee
death, and is distinguishable from turnover because when
attrition occurs, the position is not filled with a new employee.

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Submitted to: Sir Khawaja Imran
Submitted by: waQas ilYas(BA582702)
Involuntary Turnover
Employee termination for poor job performance,
absenteeism or violation of workplace policies is called
involuntary turnover -- also referred to as termination, firing or
discharge. It's involuntary because it wasn't the employee's
decision to leave the company. Layoffs could also be
considered involuntary terminations, though layoff
procedures usually are handled differently from termination.
Some layoffs have certain federal and state provisions that
aren't afforded to employees who are fired because of
performance or policy violations.
Voluntary Turnover
When an employee leaves the company of her own volition,
it's called voluntary termination. Employees give a number of
reasons for leaving their jobs. They may be accepting
employment with another company, relocating to a new
area or dealing with a personal matter that makes it
impossible to work. When an employee voluntarily terminates
the employment relationship, she generally gives the
employer verbal or written notice of intent to resign from her
job.
Desirable and Undesirable
Turnover
Turnover often has a negative connotation, yet turnover isn't
always a negative event. For example, desirable turnover
occurs an employee whose performance falls below the

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Submitted to: Sir Khawaja Imran
Submitted by: waQas ilYas(BA582702)
company's expectations is replaced by someone whose
performance meets or exceeds expectations. It's desirable
because poor job performance, absenteeism and tardiness
are costly -- replacing a poor performer with an employee
who does his job can improve the company's profitability.
Desirable turnover also occurs when replacing employees
infuses new talent and skills, which can give an organization
a competitive advantage. Conversely, undesirable turnover
means the company is losing employees whose
performance, skills and qualifications are valuable resources.
Turnover Calculations
Basic turnover calculations are relatively simple. If your
company employs 100 employees and 15 employees are
fired or quit, your turnover is 15 percent. Most organizations
use more detailed calculations to determine what underlies
turnover. Assume five employees leave in January, one
employee leaves in May and four employees leave in
November. Your annual turnover rate is 10 percent, and
your average monthly turnover is 8.3 percent. Employee
turnover calculations may also factor in different types of
turnover, such as involuntary and voluntary, or even more
specific reasons why employees leave, such as poor
performance, absenteeism or employees accepting new
jobs elsewhere. Turnover calculations are helpful to
determine hiring costs, training requirements or estimating
staff time devoted to recruitment activities.

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Submitted to: Sir Khawaja Imran
Submitted by: waQas ilYas(BA582702)
Case Study
Habib Bank Limited Pakistan
Introduction:
HBL was the first commercial bank to be established in
Pakistan in 1947. Over the years, HBL has grown its branch
network and become the largest private sector bank with
over 1,600 branches and 1,700 ATMs globally and a
customer base exceeding eight million relationships.
The Government of Pakistan privatized HBL in 2004 through
which AKFED acquired 51% of the Bank's shareholding and
management control. HBL is majority owned (51%) by the
Aga Khan Fund for Economic Development, 42.5% of the
shareholding is retained by the Government of Pakistan
(GOP), whilst 7.5% is owned by the general public i.e. over
170,000 shareholders following the public listing that took
place in July 2007.

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Submitted to: Sir Khawaja Imran
Submitted by: waQas ilYas(BA582702)
With a global presence in 29 countries, HBL is also the largest
domestic multinational. The Bank is expanding its presence
in principal international markets including the UK, UAE,
South and Central Asia, Africa and the Far East.
Key areas of operations encompass product offerings and
services in Retail and Consumer Banking. HBL has the largest
Corporate Banking portfolio in the country with an active
Investment Banking arm. SME and Agriculture lending
programs and banking services are offered in urban and
rural centers.
HBL established operations in Pakistan in 1947 and moved its
head office to Karachi. Our first international branch was
established in Colombo, Sri Lanka in 1951 and Habib Bank
Plaza was built in 1972 to commemorate the bank’s 25th
Anniversary.
With a domestic market share of over 40%, HBL was
nationalized in 1974 and it continued to dominate the
commercial banking sector with a major market share in
inward foreign remittances (55%) and loans to small
industries, traders and farmers. International operations were
expanded to include the USA, Singapore, Oman, Belgium,
Seychelles and Maldives and the Netherlands.
On December 29, 2003 Pakistan's Privatization Commission
announced that the Government of Pakistan had formally
granted the Aga Khan Fund for Economic Development
(AKFED) rights to 51% of the shareholding in HBL, against an
investment of PKR 22.409 billion (USD 389 million). On
February 26, 2004, management control was handed over
to AKFED. The Board of Directors was reconstituted to have

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Submitted to: Sir Khawaja Imran
Submitted by: waQas ilYas(BA582702)
four AKFED nominees, including the Chairman and the
President/CEO and three Government of Pakistan
Nominees.
Vision Statement
Enabling people to advance with confidence and success.
Mission Statement
To make our investor(s) prosper, our staff excel and to
Create value for our stakeholders.

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Submitted to: Sir Khawaja Imran
Submitted by: waQas ilYas(BA582702)
Review of Theoretical and
Practical Situation
 Involuntary Turnover is Necessary to Maintain the Image
of HBL Brand.
 HBL Always Busy into Analyzing and Preparing the HR
Policy.
 HBL Always look into Tradeoff between Company and
Employee benefits.
 The Main purpose of HBL is to provide best Perks and
Benefits to the Employee on Reasonable cost, as the
Employee work for the Betterment of HBL with Creative
and Fresh mind.
I Take a Survey at Habib Bank Limited Bilal Park Br. 1512
Lahore. I Met the Branch Manager Mr. Sarfaraz Nawaz
Malik. He Fully Cooperate With me to complete my Report. I
Take Interview the Manager and Employees on the Topic of
“Employee Turnover” Following Are the Few Important
Question Listed Here:

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Submitted to: Sir Khawaja Imran
Submitted by: waQas ilYas(BA582702)
Survey of HBL Branch Bilal park Lahore
some important Questionare mention
43%
57%
Gender
Male
Female
29%
29%
14%
14%
14%
Age
18-24
25-34
35-44
45-55
Over 55
15%
14%
57%
14%
Satisfied with Job
Extremely
Disagree
Disagree
Agree
Extremely
Agree
29%
57%
14%
Feel Freedom
While Working
Disagree
Agree
Extremely
Agree

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Submitted to: Sir Khawaja Imran
Submitted by: waQas ilYas(BA582702)
43%
43%
14%
Factors most
Influence your
Decision to leave
the Job
Low Salary
Bad Work
Condition
Others
15%
14%
57%
14%
Satisfied with
Salary Package
Extremely
Disagree
Neutral
Agree
Extremely
Agree
86%
14%
Boss Encourages
your Work
Always
Sometimes
Yes
14%
14%
72%
HR Department
Provide Career
Counseling on your
Job Progression
Extremely
Disagree
Disagree
Agree

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Submitted to: Sir Khawaja Imran
Submitted by: waQas ilYas(BA582702)
At the end of Assignment the Questionnaire is
attached.
Data collection methods
The Primary & Secondary data of this Assignment
come from the:
 Interviews of Personnel of HBL
 Different Websites
 Newspapers
57%29%
14%
Comparison to
Reward or
Facilities, my work
Load is….
Equal
More
Extremely
Less
86%
14%
Overall, I am Happy
with Organizational
Culture and Work
Environment
Agree
Extremely
Disagree

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Submitted to: Sir Khawaja Imran
Submitted by: waQas ilYas(BA582702)
SWOT Analysis:
STRENGTHS:
 Professional and well trained staff.
 Wider space for healthy work.
 Stronger ambition.
 Higher Cooperative Workforce.
WEAKNESSES:
 Difficult to maintain same environment in each branch.
 Low job satisfaction.
 Loss of Cost When Hire New Employee.
OPPORTUNITIES:
 HBL HR Department Makes Back Up Systems when
Employee Leaves an Organization.
 Manager Makes Good Relation with Employee to Work
Better.
 Level up the Salary Slabs.
THREATS:
 Offer Competitive Wages & Benefits.
 Leak the Information & Polices When Employee Leaves.

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Submitted to: Sir Khawaja Imran
Submitted by: waQas ilYas(BA582702)
Conclusion:
HBL is clearly the first choice of every one who believe in
qualitative approach of banking an environment of highly
responsible people. Bank is enjoying a healthy market share
and taste of good status in terms of its operative features
and customer support. HBL is clearly the best bank
operating in Pakistan. Personal loan is a distinguished
feature of HBL experiencing a good reputation and
reasonable mark up with respect to prevailing market mark
up with assurance of satisfaction and support. HBL has more
customers as compare to other banks, if they give proper
attention to every customer then in few years it will be the
leading bank of the country.
Recommendations:
 The management should try to decrease job insecurity
among the employees.
 Training program should be started for internees and
newly appointed employees.
 There should be transport facility for the employees.
 The number of employees should be increased in order
to decrease the workload.
 The bank charges high service charges as compared to
the other banks, so these should be lowered down.

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Submitted to: Sir Khawaja Imran
Submitted by: waQas ilYas(BA582702)
 Surveys must be conducted regarding customer
satisfaction level and all employees of this dept. should
look forward to getting feedback whenever possible.
 Adding of value added features that offer competitive
advantage is also a means of avoiding customer
dissatisfaction.
 Quick response to customer queries is necessary to
maintain a healthy relationship with the customer.
 Proper training of customer handling should be given to
employees. Training workshops and coaching clinics
should be considered as an option that would provide
adequate results.
References
www.hblasset.com
www.hbl.com
Wikipedia
Relevant text book of AIOU
Personal observations
Discussion by HBL Branch Manager
Teacher discussion