The study investigates factors affecting employee attrition in small scale industries in Coimbatore, identifying key reasons such as lack of opportunities for advancement, unpleasant working environments, and work-life imbalances. It employs descriptive research methodology, analyzing data from 150 respondents to determine perceptions of attrition factors and propose strategies to improve employee retention. The findings emphasize the importance of managerial support, training programs, and creating growth opportunities to mitigate attrition rates.

1. http://www.iaeme.com/IJMET/index.asp 55 editor@iaeme.com
International Journal of Mechanical Engineering and Technology (IJMET)
Volume 9, Issue 11, November 2018, pp. 55–60, Article ID: IJMET_09_11_007
Available online at http://www.iaeme.com/ijmet/issues.asp?JType=IJMET&VType=9&IType=11
ISSN Print: 0976-6340 and ISSN Online: 0976-6359
© IAEME Publication Scopus Indexed
FACTORS AFFECTING EMPLOYEE
ATTRITION IN SMALL SCALE INDUSTRIES IN
COIMBATORE DISTRICT – AN EMPIRICAL
STUDY
Dr. M. Nandhini
Associate Professor, Department of Management,
Karpagam Academy of Higher Education, Coimbatore, India
Dr. P. Palanivelu
Professor, Department of Management,
Karpagam Academy of Higher Education, Coimbatore, India
ABSTRACT
Employee attrition in an organisation is a serious issue and it will affect the
performance of the organisation. Impact of attrition on organisations performance
has to be considered for improving the concern. Managing the human resource is not
a simple task. Employees has to be convinced in terms of monetary and non-monetary
benefits. Cost of replacing an employee due to high level of attrition will be more for
an organisation. Employer has to take steps to reduce the level of attrition and
strategy has to be adopted to retain the employees in organisation. An investigation is
made in this study to find out the factors affecting the attrition and strategy to be
followed to retain employees in the organisation.
Key words: Attrition, Retention, Work Life Balance, Recognition, and Organization.
Cite this Article: Dr. M. Nandhini and Dr. P. Palanivelu, Factors Affecting Employee
Attrition in Small Scale Industries in Coimbatore District – An Empirical Study,
International Journal of Mechanical Engineering and Technology 9(11), 2018, pp.
55–60.
http://www.iaeme.com/IJMET/issues.asp?JType=IJMET&VType=9&IType=11
1. INTRODUCTION
Employees are the backbone of an organisation. The success of the concern depends up on the
performance, efficiency, ability and morale of the employees. The co-ordination between co-
workers and also with superiors is a main reason for success of the organisation. The level of
attrition may be varying from one organisation to another because may factors are there which
induce or influence the level of attrition viz., salary, promotion, recognition, increment etc.,
The employee’s turnover ratio will be high if they are not satisfied with the existing
organisational culture and environment. Employees must be retained in all forms of

2. Factors Affecting Employee Attrition in Small Scale Industries in Coimbatore District –
An Empirical Study
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organisation for growth prospective. The study aims to find out the intention and reason for
attrition.
2. REVIEW OF LITERATURE
Fitz-enz (1990) in his study observed that, employee commitment and retention is not
determined by a single issue but by a cluster of factors. Many previous researches had
identified a number of factors associated with employee retention have been identified.
Factors that are commonly cited are developmental opportunities and quality supervision, job
stress and colleague stress compensation and appreciation of work done, provision of
challenging work, promotion and development chances, attractive atmosphere within the
organization, relationships with colleagues, work-life balance, communication and
supervision
Ghapanchi and Aurum (2011) in their study, retention factors include remuneration and
benefits, training opportunities, fair and equal treatment, organizational culture.
Allen and Shanock (2013) stressed on relationship with colleague socialization, Andrews
and Wan (2009) emphasized on management style and leadership to increase an organization
retention capability . A group of researchers led by Loan-Clarke (2010) noted autonomy,
work-schedule flexibility and social support help organization to keep their employees for a
longer period of time.
Christeen (2014) in his study he identified 8 retention factors: management, conducive
environment, social support and development opportunities, autonomy, compensation, crafted
workload, and work-life balance
3. OBJECTIVES OF THE STUDY
 To know the reasons, why attrition occurs in an organisation
 To find the ways to reduce the attrition
3.1. Statement of Problem
This research article aims to find out the reasons for employee attrition and it also try to find
out the why the organisation is lagging in retaining the employees. Success of the
organisation depends upon the employees. Employees are the backbone of any organisation.
Once the attrition level of employees is identified, the management can take necessary action
to reduce the level of attrition.
3.2. Research Design, Sample Size and Sampling Method
Descriptive research design has been adopted. 5 small scale industries in Coimbatore district
have been selected for the study. The sample size is 150. Convenient sampling technique has
been adopted for selecting the sample. Questionnaire method has been adopted for collecting
the data from the respondents
4. FRAMEWORK OF ANALYSIS
The collected data have been analysed by applying the statistical tools by applying the
statistical tools like
 Percentage Analysis
 Mean
 ANOVA
 Chi-Square Test

3. Dr. M. Nandhini and Dr. P. Palanivelu
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5. RESULTS AND DISCUSSION
Table 1 Employees Opinion About Leaving the Organisation
OPINION/
ATTRIBUTES
VERY
HIGH
HIGH MEDIUM LOW VERY
LOW
TOTAL
(IN PERCENTAGE)
Employees Opinion about leaving
the organisation
28.1 5.4 19.9 29.5 17.1 100
It is clear from the above table that, 28.1 percent of employees are having the opinion of
leaving the organisation is very high and 19.9 percent of employee’s opinion about leaving
the company is medium. It is concluded that, 28.1 percent of employees having the opinion of
leaving the company is very high.
Table 2 Employee’s Opinion about Recognition
OPINION/
ATTRIBUTES
VERY
HIGH
HIGH MEDIUM LOW VERY
LOW
TOTAL
(IN PERCENTAGE)
Recognition for capability,
efficiency and good work done
34.1 15.7 36.3 13.9 0 100
Cash award/Increment/ Promotion
received for outstanding
performance
7.3 23.9 46.9 15.9 6.0 100
Table 2 clearly explains that, 36.3 percent of employees have the opinion that, recognition
received for capabilities, efficiency and good work done are medium. 23.9 percent of
employees says that cash award, promotion and increment received for performance are high.
Table 3 Employee’s opinion about Appreciation
OPINION/
ATTRIBUTES
VERY
HIGH
HIGH MEDIUM LOW VERY
LOW
TOTAL
(IN PERCENTAGE)
Appreciation received for the work done 18.8 46.8 19.8 14.6 0 100
Motivation received to earn new skills on the job 16.5 39.9 32.4 11.2 0 100
The above table reveals that, 18.8 percent of employees have the opinion that the 46.8
percent of employees have the opinion that the appreciation received for the work done are
high. 39.9 percent of employees have the opinion that motivation received to learn new skills
on the job is high.
Table 4 ANOVA - Age Vs Attrition Factor
H0: There is no significant difference between age and attrition factors of the employees.
Factors Mean Square F Sig.
Salaries 11.24 23.82 .000
Superior – Subordinate Relationship 4.32 9.36 .000
Growth Opportunities 4.83 11.17 .000
Facilities 5.57 17.55 .000
Policies and Procedures 3.38 5.52 .005

4. Factors Affecting Employee Attrition in Small Scale Industries in Coimbatore District –
An Empirical Study
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The above table reveals that, there is a significant difference among the different
categories of age group of employees with the attrition factors. Hence the alternative
hypothesis is accepted.
Table 5 ANOVA - Educational Qualification Vs Attrition Factor
H0 : There is no significant difference between educational qualification and attrition factors
of the employees.
Factors Mean Square F Sig.
Salaries 9.41 23.56 .000
Superior – Subordinate Relationship 2.79 31.17 .000
Growth Opportunities 3.89 19.54 .000
Facilities 4.39 26.61 .000
Policies and Procedures 2.35 23.66 .000
It is clear from the above table that, there is a significant difference between the
educational qualification of employees with the attrition factors. Hence, the null hypothesis is
rejected.
Table 6 ANOVA -Experience Vs Attrition Factors
H0 : There is no significant difference between experience and attrition factors of the
employees.
Factors Mean Square F Sig.
Salaries 13.42 4.03 .009
Superior – Subordinate Relationship 4.48 5.59 .001
Growth Opportunities 5.23 6.11 .001
Facilities 6.49 7.25 .000
Policies and Procedures 2.89 9.708 .000
It is interpreted from the above table that, there is a significant difference between the
work experience of the employees with the attrition factors. Hence the null hypothesis is
rejected and the alternative hypothesis is accepted
Table 7 Ranking - Attrition Reasons
Statements Mean Rank
Supervisor rude behaviour towards employees 3.54 VIII
Lack of opportunity for advancement 4.02 I
Lack of employee ability in decision making. 3.39 X
Present job did not meet employee expectations 3.97 II
Unpleasant working environment 3.69 VI
Work life imbalance 3.47 IX
Dampen the employees 3.79 IV
Insufficient skills of employees. 3.71 V
Lack of training facilities 3.66 VII
Lack of support from supervisors 3.81 III
It is interpreted from the table 7 that, lack of opportunity for advancement is main reason
for employee attrition, so it gets rank I.

5. Dr. M. Nandhini and Dr. P. Palanivelu
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Table 8 Chi-Square Test - Employees Opinion
Statement P Value Accepted /
Rejected
Unpleasant working environment is not reason 34.54 Accepted
Lack of opportunities for advancement is not reason 13.56 Rejected
Inadequate employee compensation is not reason 5.54 Rejected
Job did not meet employee expectation is not reason 9.17 Rejected
Lack of training facilities is not reason 5.95 Rejected
Employees were not given chance to express employees’
ideas
3.86 Rejected
Talented employees were not recognised 7.98 Rejected
Flexible working hours to employees are not provided 9.98 Rejected
The above table reveals the reasons for employee’s attrition and it is analysed by applying
chi-square test.
6. SUGGESTIONS
 Work life imbalances, Unpleasant working environment and lack of opportunity for
advancement are the main reason for employee attrition. Majority of the employees
recommended for improvement in working environment.
 Meetings must be regularly conducted to know the expectation of employees.
 Training programmes like personality development, self-development and stress management
must be organised regularly for employees. Employees must b reviewed before and after
conducting the programmes.
 Training to employee is insufficient it has to be improved
 Rewards can be provided for the employees
 Exit interview must be conducted and reasons must be identified and steps/strategy must be
taken to reduce or to eliminate the attrition in future.
7. CONCLUSIONS
The primary aim of any organisation is to be a market leader. To attain this goal the
organisation should concentrate more on employees and strategy must be adopted to retain
them for the long period. It is identified that lack of growth opportunities is the main reason
which force employees to change their jobs. This study concludes that to reduce attrition
industries should create some opportunities for the growth of their employees within the
organization by adopting new Innovative Technologies and Effective training programs.
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