Documentos de Académico
Documentos de Profesional
Documentos de Cultura
6
INDEX
S.NO CONTENT
Chapter 1 INTRODUCTION
î6 §
î6 a
î6 ¦
î6
î6
î6
î6
î6
î6 factors affecting attrition
î6 attrition rate
î6 how to manage attrition
î6 employees quit bosses and not organizations
î6 inadequate career opportunities
î6 how to improve retention
Chapter 6 ANALYSIS
Page 1 of 57
m
6
Chapter 9 BIBLIOGRAPHY
Page 2 of 57
m
6
CHAPTER.1
INTRODUCTION
In the best of worlds, employees would love their jobs, like their
coworkers, work hard for their employers, get paid well for their work,
have ample chances for advancement, and flexible schedules so they could
attend to personal or family needs when necessary. And never leave.
But then there's the real world. And in the real world, employees, do
leave, either because they want more money, hate the working conditions,
hate their coworkers, want a change, or because their spouse gets a
Page 3 of 57
m
6
dream job in another state. So, what does all that turnover cost? And
what employees are likely to have the highest turnover? Who is likely to
stay the longest?
The high attrition rate in the IT industry has always been its greatest
concern and a subject of much analysis and debate. Organisations use
different methodologies for calculating their turnover rate. It is a known
fact that turnover calculation is a grey area which does not always depict
the true picture. Further, the approach to this calculation might vary
from organisation to organisation. Disclosure of the figure not only has a
direct impact on the business but also affects employee morale and
productivity. Significantly, it might also trigger a chain reaction²a high
attrition rate will lead to more people leaving the organisation, while a
lower rate will act as a retention strategy. It is therefore not surprising
that most industry observers are sceptical when organisations µdisclose¶
their employee turnover.
:: DEFINATION ::
Page 4 of 57
m
6
Attrition is one of the most serious concerns of the organisations today,
irrespective of the industry in which they are operating. Attrition is all
about people leaving organisations with the slightest provocation and
having no respect and commitment to the company in which they are
working.
Page 5 of 57
m
6
Page 6 of 57
m
6
Who engage in involuntary turnover are no different from job stayers.
However, voluntary turnover can be predicted ( and in turn controlled)
by the construct of turnover intent.
Page 7 of 57
m
6
"#&$&%
()&
'
$&%
$&%&
Page 8 of 57
m
6
Employee attrition is a very big problem not only in India but outside
India too. Attrition rate is increasing day by day and its especially the
software industry which is affected the most. Why an Employee leaves a
company is the question asked by most of the employers. Companies even
hire Private HR professionals to study the company's work and find out
why an employee is dissatisfied.
Each and every company faces employee turn over problem whether big
or small. An employee leaves his present job for another job to get better
pay package and good working conditions.
Page 9 of 57
m
6
Reason for exit % of respondents
Employee 08.03%
Supervisor or line manager 38.15%
Compensation & Job Profile 53.82%
Page 10 of 57
m
6
managers do not have appropriate tools to manage employee related
tasks and this leads to further dissatisfaction.
Every company wants to become the 'best paying employer', but market
forces, tough competition and a slow economy dictate otherwise.
When all employees work on goals that are aligned to the company
objectives and there is a fair and transparent system to capture employee
performance, the likelihood of a satisfied and motivated workforce
increases and Compensation or Job Profile become manageable causes.
Page 11 of 57
m
6
INADEQUATE COMPENSATION:
Page 12 of 57
m
6
of the work experience, such as employee recognition programs. This
proves that rewarding top performers with cash or gift certificates, or
even just a pat on the back, goes a long way toward improving employee
retention rates.
BOREDOM
>
>
20.1% of dissatisfied employees are unhappy because of boredom.
There is only so much socializing with coworkers, surfing the Internet,
or simply spacing out that an employee can do before it's time to find a
new job.
INADEQUATE BENEFITS6
>ë >
n many instances, to adopt measures that lower employee take-home
pay. This has spurred some employees to start looking for work
elsewhere, perhaps at companies offering more generous employer
contributions towards the cost of basic medical coverage.6
>
>
15.3% of dissatisfied employees feel as if they have reached the
pinnacle of their professional development at the company at which
they are currently employed. Whether they are leaving to further their
education, start their own business, or find a job that promises more
Page 13 of 57
m
6
professional growth, opportunity for professional development proves
to be an important factor in retaining and satisfying employees.
Many employees are working long, hard hours and are finally
realizing the effect that their job is having on their overall health
and stress level. Some of these employees are opting to leave the
workforce entirely, while others are in search of a job that won't
give them an ulcer.
Page 14 of 57
m
6
Page 15 of 57
m
6
Management time spent orienting, evaluating, coaching, developing, and
supporting new employees who are not retained?
There are various reasons why people leave their current job. These
reasons may vary from individual to individual and when data are
collected from a large number of individuals leaving or who have left an
organization, some consistencies may be observed-providing more
insights as to why people leave in large numbers. If these are controllable-
one attempts to control. If these are not within the control of the
organization, the organization should prepare itself for managing
attrition. While an employee¶s leaving the job is considered attrition by
one organization, it is looked at as talent acquisition by the new
organization and to the individual it means a career move, economic
growth and enhanced quality of life/convenience or closeness to family
etc.
Managing attrition does not mean reducing attrition only. It could also
mean bringing down the negative affects of attrition and increasing the
positive affects of attrition. To increase the positive effects of attrition and
reduce the negative affects, appropriate retention and capacity utilization
or talent utilization tactics should be used. In one of the organizations,
attrition has been used as brand building opportunity. Thus an
organization may say that we provide talent for other companies or they
may say that if you join us your brand value goes up and you get good
jobs etc.
Page 16 of 57
m
6
Today when a person leaves it causes a lot of disturbances in the
organization. If it is a small organization the disturbance is even greater.
Hence it is important to understand and manage attrition. There can be
various reasons for people leaving their current jobs.
Page 17 of 57
m
6
2. COMPARISONS AND EQUITY CONSIDERATIONS: Comparisons
with peers or classmates from the same college, batch, age group,
organization, first job, city, etc. there are numerous dimensions on which
similarities can be picked up and compared. Individuals today are
flooded with such comparisons. Organizations in their zeal to compete
with one another in the market places commission such compensation
surveys and further fuel the situation instead of controlling it.
Page 18 of 57
m
6
5. JOB RELATED FACTORS: The job related factors that cause the
decision to leave are many these include the following:
Page 19 of 57
m
6
:: ATTRITION RATE ::
Attrition rate in Indian IT industry has gone down and it has reached a
level which was there in this industry 3 years back. This dip in attrition
rate is not sudden. It happened to recent slowdown in world market.
However experts are saying that the main reasons of the downfall of
attrition rate is lesser number of new jobs in industry and companies
preferring freshers over experienced employees as freshers are very
cheaper as compared to experienced employees.
Page 20 of 57
m
6
companies tend to have different challenges at different stages of their
business lifecycle; also, maturity achieves stability around a company¶s
10th anniversary.´
Page 21 of 57
m
6
EXAMPLE:-
Actual Employees=150
Attritions=20
Current Headcount=155
Page 22 of 57
m
6
So according to the formula: ((20 x 100) / (150 + 25)) / 100
Now as you had 150 previously and now 25 joined so it makes 150 + 25
=175
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.
::CONSEQUENCES OF ATTRITION::
Page 23 of 57
m
6
î6 significant operational disruption.
::DIAGONISING ATTRITION::
Page 24 of 57
m
6
should be easy to use, anonymous and fairly brief. Questions can be
open or closed, multiple choice answers, ranking of items or
checklist format.
î6 EXIT INTERVIEWS : Exit interviews are used by the majority of
companies. They tend to be conducted just before an employee
leaves, though some firms wait until after the departure. Exit
interviews will normally to be done in the form of a questionnaire,
though one to one interviews are also used.
Now days with the huge demand of Software Professionals around the
world and with the company willing to pay high salary package software
professional tend to switch companies. But companies can reduce the
employee attrition rates by taking few steps.
Page 25 of 57
m
6
1. Compensation And Management: Compensation and Management
must be managed based on the KSAs (Knowledge, Skills, Attitude and
Experience) of the employees.
Page 26 of 57
m
6
9. Feel Part Of The Company's Mission: The Company's mission must be
reiterated from time to time to reinforce the learning and experience of
the people.
13. Picnic/Outings: Too much work and stress takes a toll on the body
and smaller chunk of employee leave because of health issues, too much
stress, family pressure. Regular picnics and outing for Lunch/Dinner
makes him/her body relax and feels comfortable. Make the employee feel
that i am working from home and not from office.
14. Incentives For Extra Work Time: All the IT companies work on so
crunch time that there is limited scope for the companies and the
employee to save time. But this takes toll on the employee mental stamina
and so if the company can come up by curbing late working of the
employee during less work pressure and at the time of pressure delivery
of the product give them the confidence that working late will help them
by giving incentives.
Page 27 of 57
m
6
15. Satisfaction: All is human needs is they should be satisfied with what
they are doing. Need to counsel your employee whether they are satisfied
with their job by means of surveys etc.
Page 28 of 57
m
6
î6 Don¶t look at attrition merely as a statistics. Read the story behind the
numbers.
î6 Identify the underlying issues contributing to attrition.
î6 Attrition is not only an HR issue.. Sensitize line managers towards
people issues.
î6 Equip front line and first time managers to manage talent related
issues.
::HOW TO
IMPROVE
RETENTION
::
1.SHOW
EMPLOYEES
THAT YOU HAVE
AN INTEREST IN
THEIR SUCCESS:
60 to 70 % of
workers do not feel
that their
Page 29 of 57
m
6
companies help them to develop their career. Managers of successful
companies are acutely aware that even the most brilliant business model
will not work without skilled individuals motivated by a culture of
management concern.
Page 30 of 57
m
6
6. DEVELOP YOUR MANAGEMENT TEAM: People see good bosses
as the wind beneath their wings, and employees who lack confidence in
their bosses will leave the organisation sooner rather than later. A key
retention strategy is to weed out marginal managers. Replace them with
managers who can craft a compelling game plan, communicate it
effectively to their teams and deploy initiatives that are consistent with
company strategy.
Page 31 of 57
m
6
High Performers need to be retained; this is a universally accepted fact.
Organisations today focus a large part of their energy and resources to
retain high performers.
However the Average Performers« the so called m # $ are
actually the high risk group when it comes to attrition. This is a group
that feels neglected and disillusioned in our race to appease the high
performers. This group forms the bulk of the organisation, are easier
to retain, and probably a group where the company has made major
investments in terms of training and other employee costs overtime.
6
6
6
6
6
6
6
6
6
Page 32 of 57
m
6
î6 Spend time during recruitment to explain your culture and
expectations.
î6 Build a value proposition in terms of learning and career growth.
î6 Make your line managers equally responsible for attrition.
î6 Ensure that when people leave the organisation, their knowledge
doesn't leave with them.
6
ARRESTING ATTRITION
Page 33 of 57
m
6
CHAPTER. 2
COMPANY PROFILE
Page 34 of 57
m
6
The company has ongoing partnerships with more than 150 emerging and
established clients in markets such as Digital Media, Finance, Healthcare,
Infrastructure, Retail, Wireless and Telecom. GlobalLogic is also an
expert in cutting-edge tools and technologies, including Cloud
Computing, Business Intelligence, Open Source and Software-as-a-
Service.
Page 35 of 57
m
6
GlobalLogic has been ranked an Inc. 500 company and was recognized as
a top global employer by IDC and Hewitt Associates.
% & ' '
() ) & #(
* +, (
Page 36 of 57
m
6
INTEGRITY:
We believe in treating people with respect. We believe in always doing
what we say we will and when we say we will do it. We always hold
ourselves to the highest ethical standards and take personal responsibility
for our words and actions.
OPENNESS:
We greatly value our people and seek to empower them. We believe in the
free flow of information, regardless of rank or power, so that everyone
has access to the most complete data in order to make the best decisions.
We maximize transparency to create an environment where every
individual is accessible and encouraged to contribute, and where each
thought is valued and factored into making decisions.
TEAMWORK:
We believe that a good team is stronger than the sum of its parts. True
teamwork and
INNOVATION:
We believe in always learning and innovating. We encourage and reward
those who challenge conventional wisdom, take risks and speak out. We
believe that inspiring people to grow is good for the individual, good for
our clients and good for the business.
Page 37 of 57
m
6
GLOBALLOGIC SERVICES*
Page 38 of 57
m
6
vertical and technology expertise in Telecom, Healthcare,
Consumer and Enterprise, as well as J2EE, RoR, .NET or open
source.
Page 39 of 57
m
6
CHAPTER. 3
Page 40 of 57
m
6
î6 To ensure co-ordination between the employees and the
organization.
î6 To protect the interest of the employees in the organization.
î6 To bring out proper working between employees and organization
to improve the company¶s image.
î6 To make employees proud of their own company.
î6 To take efforts and measures to improve the situation and
conditions of employment.
î6 To understand the rules and policies followed by the organization.
Page 41 of 57
m
6
CHAPTER. 4
INDIAN SCENARIO
Page 42 of 57
m
6
up training costs, and increase human resources, recruiting, and
productivity costs. They also increase the prospect of customer service
complaints or quality problems, and create substantial continuity
problems for longer-lived projects.
There are many causes for attrition including, retirement and death.
However, most attrition is due to employee turnover. Employees leave
their jobs for a number of reasons including: wanting more money, poor
working conditions, irregular working hours, lack of advancement
opportunities, lack of job security, difficulties with coworkers, desire for
change, better opportunities, and family reasons. High wage inflation is
another major factor in job hopping.
Some companies believe that the attrition rates in India²and the costs
associated with them²are so high that they can override the benefits of
lower wage costs. For example; while wages in call centers in Indian are
less than one-eighth of those in Northern Europe, it has been reported
that Hewlett-Packard have found the cost per µticket¶ (the cost of
Page 43 of 57
m
6
processing a query) was double in India ³due to the inability of the staff
to resolve customer queries efficiently because of language barriers and
inexperience´. The issue is not with the quality or education of the staff
and still less with the investment in technology. It is simply attrition²
people do not stay long enough to be taught or to learn the job.
Page 44 of 57
m
6
career development, job rotation and transparent performance
management systems.
Page 45 of 57
m
6
CHAPTER. 5
WHERE IS ATTRITION OCCURING?
Page 46 of 57
m
6
candidates from certain colleges or institutions? Age groups? Etc. Simple
demographic analysis among those who level could reveal some insights.
For Example:
In one oil Exploration Company such an analysis revealed that
attrition is limited to those from the Drilling division and financial
services division. Those who left the drilling division were found to be
older in age and those who left Finance department younger in age. Those
who left the Drilling department left with VRS and got good jobs
elsewhere because experienced people are in demand. Those who left the
finance department left because the demand for young CAs and financial
managers had gone up in the outside environment. In both cases there
were push as well as pull factors operating simultaneously.
UPS found that they had a lot of attrition amongst its drivers who pick up
and deliver the parcel services. They were a very critical part of the
organization as they were most familiar with the routes and clients. They
then discovered that the driver's job included loading and unloading
which they hated. It then became easy for UPS to hire loaders and save
the drivers from this work. It reduced the attrition rate remarkably.
Page 47 of 57
m
6
that on the contrary employees stayed longer because of the task centered
but developmental style of their manager.
Page 48 of 57
m
6
CHAPTER. 6
ANALYSIS
IT COMPANIES:
î6 Infosys
î6 TCS
Page 49 of 57
m
6
î6 Wipro
î6 HCL
ITeS COMPANIES:
î6 Genpact
î6 WNS
66
6 6
ËÚ
Ú
Ú
Ú Ú
Ú Ú ËÚÚÚ
6666Ú ÚÚ
ÚÚ
Ú
p66
Page 50 of 57
m
6
CHAPTER. 7
Page 51 of 57
m
6
î6 Retention polices followed provides the employee both monetary
and non monetary benefits.
î6 Various other workshops conducted which helps the employee to
be motivated and keep working.
î6 Other welfare program are also conducted for them.
î6 The exit interviews were conducted as and when required by the
company.
Page 52 of 57
m
6
CHAPTER. 8
Page 53 of 57
m
6
î6 Management also needs to consider other aspects like secure
career, benefits, perks and communication.
î6 Making work a fun place, having education and ongoing learning
for the workforce and treating applicants and an employee in the
same way as one treats customers.
Page 54 of 57
m
6
CHAPTER. 9
BIBLIOGRAPHY
Page 55 of 57
m
6
î6 Y 6
6
66
î6 p
66p6
î6
6
î6 666
6 6
î6
6
î6 Y
î6 m
î6 p p
î6 a
î6 a p p
î6 a
p
î6 a
p6
î6 a Y
Page 56 of 57
m
6
6
6
6
6
6
Page 57 of 57