Documentos de Académico
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Attrition Rate in
Indian Pharmaceutical Sector
Faculty of Commerce
Vadodara
2009 -10
ACKNOWLEDGEMENT
I owe thanks to many people who helped and supported me during the writing of this
research report. My deepest thanks to Ms.Poonam Purohit,the Guide of the project for
guiding and correcting various documents with attention and care. She has taken pain to
go through the project and make necessary correction as and when required.
The Maharaja Sayajirao University of Baroda for extending their support. My deep sense
of gratitude to Mr Praharsh Mehta, Vice President HR, Alembic Chemical Works Co.
Thanks and appreciation to the helpful people of various pharmaceutical companies who
spared time to fill the questionnaire and for their support. I would also thank my
Institution and my faculty members without whom this project would have been a distant
of money for their recruitment, selection & training and what happens to company if
these Talents or Employees leave the organization in short while seeking new
therefore, any pharma company's assets because they are the source of ideas which drives
research.They are trying to have their talent management strategies in place to manage
and retain their best people. Thus attrition in the Indian pharma sector is one of the
Most of the employers believe their employees leave them for money reasons. Many a
times we have heard people saying, “If only I could have paid her more, she would have
stayed.” Yes, we’ve lost people because of money, but this research finds that people
leave for one major reason and several subordinate ones.The answers is that most people
leave their jobs because of their supervisor or team leader! What is it about this
workplace relationship that makes it the number one reason so many people leave their
jobs. Basically, it’s a lack—of trust, of communication, of relevant and timely feedback,
1. Introduction
Terminologies
Attrition Costs
Reasons for Attrition
Life Cycle Approach
Calculating Employee Attrition
Controlling Growing Attrition Rate
The True Picture
Causes & Analysis
The Brighter Side of Attrition
2. Pharmaceutical Sector
Global Pharmaceutical Sector
Pharmaceutical Sector in India
Pharmaceutical Sector in Gujarat
3. Methodology
4. Results
5. Discussion
6. Conclusion
7. Recommendation
References
Annexure
TABLE OF GRAPHS
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 dream job in another state. So,
what does that entire turnover cost? And what employees are likely to have the highest
Defining Attrition:
countries such as India are experiencing similar pains. Skilled employees are hopping
from job to job and taking with them the customer knowledge and technical expertise that
any company needs. Their salaries are increasing, along with their perks, benefits, and
bonuses.
The attrition rate has always been a sensitive issue for all organizations. Calculating
employee turnover rate is not that simple as it seems to be. No common formula can be
used by all the organization. A formula had to be devised keeping in view the nature of
the business and different jib functions. Moreover, calculating attrition rate is not only
about devising a mathematical formula. It also has to take into account the root of the
Attrition Costs:
One of the best methods for calculating the cost of turnover takes account expenses
( a ) Recruitment Cost
( c ) Adminstrative Cost
( a ) Recruitment Cost:
The cost to the business when hiring new employees includes the following six factors
• Background/reference screening
be taken into consideration. This will mean direct and indirect costs, and can be largely
• Training Materials
• Technology
• Employee Benefits
• Trainers’ Time
( b )Administrative Costs:
They include
• Set up communication systems
the prevailing attrition. Attrition does not happen for one or two reasons. The way the
industry is projected and speed at which the companies are expanding has a major part in
attrition.
The specific reasons for attrition are varied in nature and it is interesting to know why the
people change jobs so quickly. Even today, the main reason for changing jobs is for
higher salary and better benefits. While attrition cannot be attributed to employees alone,
1.Organizational matters
The employees always assess the management values, work culture, work practices and
credibility of the organization. The Indian companies do have difficulties in getting the
businesses and retain it for a long time. There are always ups and downs in the business.
When there is no focus and in the absence of business plans, non-availability of the
2.Working environment
Working environment is the most important cause of attrition. Today’s Gen Next
environment. They expect a friendly and learning environment. Employees look for
freedom, good treatment from the superiors, good encouragement, friendly approach
from one and all, and good motivation.
3.Job matters
No doubt the jobs today bring lots of pressure and stress is high. The employees often
switch jobs if there is too much pressure on performance or any work related pressure. It
is quite common that employees are moved from one process to another. They take time
to get adjusted with the new processes while few employees find it difficult to adjust and
consequently leave. Monotony sets in very quickly and this is one of the main reasons for
attrition. Job hopping is very common among youngsters who look at jobs as being
temporary. Another commonly looked option is to move to such other process where
there is little or no pressure of sales and meeting service level agreements (SLA). The
employees move out if there are strained relations with the sup
the most important reasons for attrition. The salaries and benefits offered by MNCs are
generally higher than their Indian counterparts. The employees expect salary revision
Moving from one job to another for higher salary, better positions and better benefits are
the most important reasons for attrition. The salaries and benefits offered by MNCs are
generally higher than their Indian counterparts. The employees expect salary revision
5.Personal reasons
The personal reasons are many and only few are visible to us. They vary widely from
getting married to relocating for health/family reasons. The next important personal
reason is going for higher education. Health is another aspect, which contributes for
attrition.The personal reasons are many and only few are visible to us. They vary widely
from getting married to relocating for health/family reasons. The next important personal
reason is going for higher education. Health is another aspect, which contributes for
attrition.
6.Poaching
The demand for trained and competent manpower is very
high. Poaching has become very common. The rise in the number of placement agencies
has led to a boom in poaching. Most of the organizations have employee referral schemes
and this makes people to spread message and refer known candidates from the previous
7.Employee’s advocate
One of the main reasons why employees leave companies is because of problems with
One of the main reasons why employees leave companies is because of problems with
between top management and employees at all levels. There is often a huge gap between
requirements. HR sometimes does not really understand the problems associated with
employees’ careers and jobs. The company’s overall plans and strategies also depend on
department should have genuine interest in the employees’ welfare; it is responsible for
making sure that their expectations are met. By doing this it is easier to me
A Lifecycle Approach
The key to long term results against attrition is a comprehensive approach that attacks all
of the root causes of attrition across the agent lifecycle. Attrition occurs at all stages,
combination of performance and fit of current employees. The following chart lays out a
method for assessing attrition risk. In this model job performance is based on
performance against key matrices and fit is based on personality traits and cognitive
abilities. Personality traits and cognitive abilities are “hard-wired” and have the largest
combined with poor job fit results in highly early attrition rates during new hire training,
nesting and the first 90 days on the floor. This quadrant is typically filled with new hires
when a hiring process is not optimized for attrition. A typical response to this risk is to
add assessments to the hiring process. Knowlagent’ survey illustrates this trend as centers
addressing attrition use assessments twice as often as those who have not yet dealt with
the issue. But pharmaceutical sector need to be diligent to avoid using assessments to
automate an ineffective, manual hiring process. To truly change the hiring process, they
must first determine the most critical areas impacting attrition and assess candidates
against them. In this way candidates with the least chance at success are eliminated from
the process. This is in contrast to using best overall fit as a gauge since it tends to mask
critical gaps in personality, cognitive ability and skills. Additionally, since unclear job
expectations was highly ranked as a causal factor by respondents, a standardized way of
setting realistic job expectations should be integrated into the hiring process. Other
• Moving high risk agents to more suitable roles, if movement within the
organization is possible.
• Where possible, building skills and mitigating fit gaps that may respond to
After this highest risk category is addressed, a lifecycle approach to attrition would mean
turning attention to the quadrants with lower risks. The makeup of the agent population
will change overtime as natural attrition occurs, but specific actions may be needed based
may be home to many new hires before adequate training and coaching are provided if a
hiring process is effective. Specific action items for new hires are:
• Provide tailored new hire training plans based on agents’ existing skills
• Provide tailored coaching and training plans for nesting and post-nesting
environments
Targeted training and coaching can also be used to improve existing agents’ skills in this
quadrant.
of agents in this quadrant cannot be moved to the upper right quadrant without a position
change. It is not possible to change an agent’s underlying traits, but training and coaching
can be used to mitigate fit gaps in conjunction with other incentives to reduce attrition
risk. The best chance for retention is to look for opportunities in other call center
these agents since a good-fit agent who is not provided with appropriate training and
coaching can slip down into the lower right quadrant if the job changes without adequate
training. An agent in this upper right quadrant can move to the upper left quadrant if job
responsibilities substantially change and he/she does not have the underlying traits to
perform the job. This situation is possible in many centers transitioning from a service
Talent cost:
It includes the cost of lost knowledge, skills and contacts that the person who is leaving is
-Calculate the cost of the manager who has to understand what work remains, and how to
-Cost of the various candidate pre-employment tests to help assess candidates' skills,
Training cost
-It includes the cost of orientation in terms of the new person's salary and the cost of the
-Calculate the cost of various training materials needed including company product
manuals, computer or other technology equipment used in the delivery of the training.
Motivational cost:
It refers to the cost arises because of motivating the other employees to retain them in the
of much analysis and debate. Organizations 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. While a few techniques are common, there are no
proven theories. Furthermore, the approach to this calculation might vary from
organization to organization. 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 off a chain reaction-a high attrition rate will lead to more people leaving the
organization, while a lower rate will act as a retention strategy. It is not surprising that
most industry observers are skeptical when organizations disclose their employee
turnover.
compliment!
Ideally, attrition should be calculated on a monthly basis for companies that have over 50
employees for the first five years of its business. Subsequently, a quarterly index should
be applied till a company's 10th anniversary. Post this, annual attrition figures should be
measured and accounted for. This is optimal within the services industry as companies
tend to have different challenges at different stages of their business life-cycle, and also
• The employee base changes each month. So if a company has 1,000 employees in
April 2004 and 2,000 in March 2005, then they may take their base as 2,000 or as
1,500 (average for the year). If the number of employees who left is 300, then the
attrition figure could be 15% or 20% depending on what base you take.
• Many firms may not include attrition of freshers due to higher studies or attrition
• In some cases attrition of poor performers may also not be treated as attrition.
Varied theories are also applied as organizations like to brand themselves differently
policies, procedures and management styles that directly impact retention or attrition
and hence the absence of a homogenous system. Also, in scenarios where a common
attrition measurement formula is applied, companies find a way to justify their results
to position their statistics differently from their peers on account of having differing
operating practices.
Formula for Attrition
While different organizations follow different formulae for calculating attrition
depending on their size and nature of services, some of the commonly used formulae
3.) Attrition = (No. of employees who left in the year / Average employees in the
year) * 100.
Controlling Growing Attrition Rate
1. Offer fair and competitive salaries. Fair compensation alone does not
guarantee employee loyalty, but offering below-market wages makes it much
more likely that employees will look for work elsewhere. In fact, research shows
that if incomes lag behind comparable jobs at a company across town by more
than 10 percent, workers are likely to bolt. To retain workers, conduct regular
reviews of the salaries you offer for all job titles — entry-level, experienced staff
consider making adjustments to ensure that you are in line with the marketplace.
2. Remember that benefits are important too. Although benefits are not
a key reason why employees stick with a company, the benefits you offer can't be
employee satisfaction and retention. Make sure your managers aren't driving
technologists away. Give them the training they need to develop good supervisory
know what is expected of them every day, what types of decisions they are allowed to
strengths and weaknesses, and help them improve in areas that will lead to job
stick around.
three, five or 10 years. But why not offer other seniority-based rewards such as a paid
membership to a local gym after two years, and full reimbursement for the cost of the
employee's uniforms after three years? Retention packages also could be designed to
encourage technologists to skip from job to job, while retention packages offer
encourage retention.
conduct anonymous employee satisfaction surveys on a regular basis. One idea: Ask
employees what they want more of and what they want less of.
customer service and increased morale. Here are a few ideas to foster a team
• Involve employees in decisions; ask them to help make decisions through consensus
and collaboration.
performance or achievement.
10. Reduce the paperwork burden. If your technologists spend nearly as
much time filling out paperwork, it's time for a change. Paperwork pressures can add
to the stress and burnout that employees feel. Eliminate unnecessary paperwork;
staff to take over as much of the paperwork burden as is allowed under legal or
regulatory restrictions.
11. Make room for fun. Celebrate successes and recognize when milestones
are reached. Potluck lunches, birthday parties, employee picnics and creative contests
will help remind people why your company is a great place to work.
staff to develop a departmental mission statement, and then publicly post it for
important.
session on an interesting case. Have someone who likes planning and coordinating
events? Ask him to organize a departmental open house. Know a good critical-
thinker? Ask him/ her to work with a vendor to customize applications training on a
workplace stimulating.
the works? Is a major expansion on the horizon? Your employees would rather hear it
from you than from the evening newscast. It is nearly impossible for a manager to
"over-communicate."
discuss recent journal articles with them; ask them to research a new scheduling
method for the department. Encourage every employee to learn at least one new thing
every week, and you'll create a work force that is excited, motivated and committed.
16. Be flexible. Today's employees have many commitments outside their job,
often including responsibility for children, aging parents, chronic health conditions
and other issues. They will be loyal to workplaces that make their lives more
convenient by offering on-site childcare centers, on-site hair styling and dry cleaning,
months a year and have the summers off to be with their children.
senior staff member to act as a mentor to the new employee throughout the
orientation period. Develop a checklist of topics that need to be covered and check in
with the new employee at the end of the orientation period to ensure that all topics
18. Give people the best equipment and supplies possible. No one
wants to work with equipment that's old or constantly breaking down. Ensure that
and software. In addition, provide employees with the highest quality supplies you
can afford. Cheap, leaky pens may seem like a small thing, but they can add to
19. Show your employees that you value them. Recognize outstanding
achievements promptly and publicly, but also take time to comment on the many
small contributions your staff makes every day to the organization's mission. Don't
forget — these are the people who make you look good!
Employee attrition continues to affect organizations large and small, local and multinational and
may impact the growth and prosperity of the company. Similarly, the exit of experienced fund
managers also affects the performance of the fund temporarily as the style differs from one fund
manager to another. Intimate knowledge about the corporate world is very vital for the fund
The employee attrition problem is a global issue and at times may be difficult to manage but can
be tackled by careful planning and well thought out proactive HRD policies.
the correct picture. This is because the figure has direct impact on stock markets,
employee morale and customer confidence. Attrition rate has always been a sensitive
issue for all organizations as it can have major fallout on the bottom-line. This is because
the attrition rate is an indicator to many things intrinsic to the organization, and revealing
it may affect it negatively. In fact at times, disclosing this data can be like a self-fulfilling
prophecy-if you tell the fact that the attrition is high, it may actually become higher. It is
also not uncommon to find companies proclaiming an attrition rate that is much less than
Companies often project their attrition rate incorrectly as it tends to affect their brand
image both internally and externally. Internally, it sends a wrong signal to their
employees and the board of members and externally, it can affect in various ways such as
developing a bad image or dissuading talent. However companies do not realize that
necessary to take into account the root of the problem, by going back to the hiring stage.
Most organizations in practice do not evolve robust measurements for calculating cost of
a bad hire or labor turnover. The detail of information required and the measurement
metrics are not common formulae, but have to be designed dependent on the nature of
disclosing statistics which may not be true, it is just that perhaps they believe those to be
true.
Organizations will however know what their real attrition figures are as this has a huge
impact on business. Like with most data, attrition too can be interpreted in different ways
and it is up to each organization how and what they wish to share. Organizations are
generally much concerned about regretted voluntary attrition. These are people who leave
at their own will and those whom the organization would have loved to retain. Similarly,
organizations measure managed attrition. These are people made redundant, laid off or
managed attrition if on the higher side may show the organization in poor light and does
Attrition does not only reflect the hiring policies of an organization, but also induction
and retention strategies, training methodologies, work culture and many other factors. It
costs the company valuable time, money and often credibility (especially where
employees develop relationships with customers). Some companies just look at the
employee turnover in terms of the cost involved in the hiring and training of the
unproductive staff to leave its fold. It makes way for career progression, new thinking
and innovation.
poor performer is replaced by a more effective employee, and can happen when a senior
retirement allows the promotion or acquisition of welcome 'fresh blood'. Moderate levels
of staff turnover can also help to reduce staff costs in organizations where business levels
straightforward to hold off filling recently created vacancies for some weeks
Chapter : 2
Pharmaceutical Sector
Talent or human resource is a major asset for any company. Company invest high amount
of money for their recruitment, selection & training and what happens to company if
these Talents or Employees leave the organization in short while seeking new
therefore, any pharma company's assets because they are the source of ideas which drives
research.They are trying to have their talent management strategies in place to manage
and retain their best people. Thus attrition in the Indian pharma sector is one of the
For the purpose of research work and clearly understanding the pharmaceutical sector, I
Accounting for two percent of the world's pharmaceutical market, the Indian
pharmaceutical sector has an estimated market value of about US $8 billion. It's at 4th
rank in terms of total pharmaceutical production and 13th in terms of value. It is growing
Over the last two years the pharmaceutical market value has increased to about US $ 355
million because of the launch of new products. According to an estimate, 3900 new
generic products have been launched in the past two years. These have been by and large
launched by big brands in the pharma sector. And in the year 2005 Indian pharmaceutical
As in the present scenario, only a few people can afford costly drugs, which have
increased price sensitivity in the pharmaceutical market. Now the companies are trying to
capture the market by introducing high quality and low price medicines and drugs.
With the Product Patent Act, which came into action in January 2005, this industry is
able to attract big MNCs to India. Earlier these big firms had apprehensions in launching
with foreign firms for in-license drugs. GlaxoSmithKline is among the top choices for the
firms that wish to launch their product in India, but do not have any branch over here.
Contract research and pharmaceutical outsourcing are the new avenues in the
US$6-10 billion.
Indian multinational companies like Dr.Reddy's Lab, Cipla, Ranbaxy, etc have created
awareness about the Indian market prospects in the international pharmaceutical market.
Approvals given by Foods and Drugs Administration (FDA) and ANDA (Abbreviated
New Drug Application)/DMF (Drug Master File) have played an important role in
making India a cost-effective and high quality product manufacturer. Furthermore, the
changes that took place in the patent law, change of process patent to product patent,
Strength:
Weaknesses:
• Fragmented capacities
Opportunities:
• Globalization
• Drug delivery system management
• Increased incomes
• Contract manufacturing
• Drug molecules
Threats:
- Richard Gerster
The Indian Pharmaceutical Industry today is in the front rank of India’s science-based
industries with wide ranging capabilities in the complex field of drug manufacture and
worth $ 4.5 billion, growing at about 8 to 9 percent annually. It ranks very high in the
third world, in terms of technology, quality and range of medicines manufactured. From
Playing a key role in promoting and sustaining development in the vital field of
medicines, Indian Pharma Industry boasts of quality producers and many units approved
by regulatory authorities in USA and UK. International companies associated with this
sector have stimulated, assisted and spearheaded this dynamic development in the past 53
years and helped to put India on the pharmaceutical map of the world.
The Indian Pharmaceutical sector is highly fragmented with more than 20,000 registered
units. It has expanded drastically in the last two decades. The leading 250 pharmaceutical
companies control 70% of the market with market leader holding nearly 7% of the market
orals and injectibles. There are about 250 large units and about 8000 Small Scale Units,
which form the core of the pharmaceutical industry in India (including 5 Central Public
Sector Units). These units produce the complete range of pharmaceutical formulations,
i.e., medicines ready for consumption by patients and about 350 bulk drugs, i.e.,
formulations.
Following the de-licensing of the pharmaceutical industry, industrial licensing for most of
the drugs and pharmaceutical products has been done away with. Manufacturers are free
to produce any drug duly approved by the Drug Control Authority. Technologically
strong and totally self-reliant, the pharmaceutical industry in India has low costs of
with its rich scientific talents and research capabilities, supported by Intellectual
Strengths:
Opportunities:
• Growing incomes.
• Globalization
Weakness:
• Very low level of Biotechnology in India and also for New Drug Discovery
Systems.
• Low level of strategic planning for future and also for technology
forecasting.
Threats:
Alembic Chemical Works Co. Ltd., one of the oldest pharmacompanies in India, was set
up in Vadodara in 1907, just six years afterIndia’s first domestic pharmaceutical unit –
Bengal Chemical and Pharmaceutical Works was set up in Calcutta. Srabhai Chemicals
The industry had received strong support from the academic fiels. In 1940, the Drugs
in 1989, the B.V. Patel Education Trust, Ahmedabad and Gujarat Branch of Indian
In the last few decades, the invested capital to labour ratio has risen significantly. The
employment almost doubled between 1978-80 and 1997-98. over the years, the industry
has developed strong linkages with related sectors and industries such as chemicals,
There are currently approximately 3,500 drug manufacturing units in Gujarat. The state
houses several established companies such as Torrent Pharma, Zydus Cadila, Alembic,
industry has been significant. The state commands 42 percebt share of India’s
For any successful industry, one of the driving forces is the pressure of Small and
is good examples of a well-developed ecosystem with strong building blocks that have
behemoth- with scale and infrastructure on par with international standards, that will
pharma AP/intermediates, can be utilized to boost the high growth of CRAMS sector.
This could make Gujarat a strong sourcing base for global pharma companies.
Emerging Opportunities
Medical Tourism: With India rapidly emerging as an attractive medical tourism hub,
Gujarat is also making big strides in this segment. It is fast competing with other places
such as Delhi, Maharashtra and Andhra Pradesh in this segment. The state offers high
quality and specialized healthcare services and infrastructure at very low costs, thus
facilities and relatively real estates costs has lured many global and local CROs to set up
shop in the state. Globally, contract research is a high growth segment led by establishing
management centres-which can facilitate and boost R&D and other high-end activities.
Pharmacetical Machinery: There is a strong local and global opportunity for Gujarat
in the manufacturing of pharmaceutical machinery, given its strong and well established
the pharmaceutical exports segment and growing demand from the domestic market,will
segment. Due to the highly fragmented nature, there is a dearth of pricing power and
critical scale. This in turn restricts the ability to produce the technology-driven products
required for operating in the global markrts. The pharma machinery manufacturing
industry in Gujarat needs to consolidate and synergise the skills to be able to create worls
class players with the scale and resources required,to tap the global as well as local
demand.
Many pharma companies in Gujarat have adopted the inorganic route to participate in the
global markets. However, operating in the world markets is not just about acquiring
global assets but also about having a global mindset. In order to benefit from the on-
going integration of the world pharma markets, the pharma industry and companies have
to change interbal mindsets to think and compete globally, and create an environment of
innovation. Companies would have to imbibe a culture that enhances its efficiency while
be a start in this direction. The enterprise-wide use of global IT solutions is another areas
Globalisation model
for
Gujarat’s Pharmaceuticals Industry
Chapter : 3
Methodology
Objectives Of Study
• To study the reasons of high attrition rate in the Indian pharmaceutical sector and
the need, aspiration, interest, satisfaction level of the employees so as to know the
• To find out the impact of high attrition in the Indian Pharmaceutical Sector.
Sample
50 employees were randomly selected from below listed pharmaceutical industries. The
industries were:
• Pfizer Limited
• Cipla Limited
• Ranbaxy
• GlaxoSmithKline Pharma
• The employees taken into consideration held different positions and played
Variable
• Independent Variable:
• Dependent Variable:
• Control Variable:
Hypothesis
Hypothesis 1:
Salary, Organization’s Brand and Outer image of the organization has effect on attrition
Hypothesis 2:
High attrition in the pharmaceutical sector is due to poor job satisfaction and weak
organizational culture
Tools
Research Procedure:
The procedure is to enumerate all the steps of the research process in a chronological
order. The emphasis has been placed on the steps taken to assert the nature and size of
sample. Specific details also have been included in this section regarding the study.
1. Data Collection
This study involved the collection of data. First step involved making a
questionnaire suitable for the the level of employees in the organization. Secondly
getting the permission from the organization’s head to conduct the research and
collect the appropriate data. The objective of the study was made clear to all so
that they could give free and frank replies to all the questions without any fear in
either by e-mails or personal visits on a given date for their responses. Whenever
necessary, time was spent with them to explain the instructions for the
busy or were reluctant to give their responses. The higher officials of the
2. Data Analysis
To help in further analysis the data was also graphically represented by using Bar
Graph.
Chapter : 4 Results
Strongly Agree 20 40 %
Agree 13 26 %
Neutral 6 12 %
Disagree 3 6%
Strongly Disagree 8 16 %
Total 50 100 %
25
20
Number of Employees
20
15 13
10 8
6
5 3
0
Strongly Agree
Somewhat Neutral Somewhat Strongly
Agree Disagree Disagree
Thus we can analyze that sense of community among the co-workers in the organization
is a very important to retain them. Their motivation, job satisfaction all adds up to
become the resistant force against attrition in the Indian pharmaceutical sector.
“I feel I am valued in this organization.”
Strongly Agree 30 60 %
Agree 12 24 %
Neutral 5 10 %
Disagree 1 2%
Strongly Disagree 2 4%
Total 50 100 %
35
30
30
25
Number of 20
Employees 15
12
10
5
5 2
1
0
Strongly Agree Somewhat Neutral Somewhat Strongly
Agree Disagree Disagree
Majority of the employees have agreed that they are in their respective organization,
happy and satisfied in their job because they are valued there for the person they are or
for their skills, talent or ability. Acknowledgement, Appreciation, Feedback or Respect is
what an employee seeks to gain not only from his superiors but also from his peer
members and subordinates.
“Promoting respect & fair treatment among all staff is higher priority of this
organization”
Strongly Agree 25 50
Agree 12 24
Neutral 8 16
Disagree 2 4
Strongly Disagree 3 6
Total 50 100 %
30
25
25
Number of Employees
20
15 12
10 8
5 3
2
0
Strongly Agree Somewhat Neutral Somewhat Strongly
50% of the employees strongly believe that
Agree they are been properly treated in the
Disagree Disagree
organization. It also says a lot about the culture, values, attitude and belief of the
organization as well as the employees working in it.
For people who feel they are not been treated well, proper grievance procedure should be
held for them
“Communication among staff in this organization is effective.”
Strongly Agree 25 50 %
Agree 18 26 %
Neutral 4 5%
Disagree 2 4%
Strongly Disagree 1 2%
Total 50 100 %
30
25
25
Number of Employees
20 18
15
10
4
5
2
1
0
Strongly Agree
Somewhat Neutral Somewhat Strongly
Agree Disagree Disagree
Communication is the back bone for any organization. If proper two way channel of
communication is not there then a lot of problems will occur and the organization cannot
run smoothly. From this analysis we come to know almost 75% employees belief that
they have a good communication system in their respective organization so high attrition
due to poor communication is ruled out.
“I have a clear sense of the future direction of this organization.”
Strongly Agree 24 48 %
Agree 17 34 %
Neutral 8 16 %
Disagree 1 2%
Strongly Disagree 0 0%
Total 50 100 %
30
24
25
Number of Employees
20 17
15
10 8
5
1
0
0
Strongly Agree
Somewhat Neutral Somewhat Strongly
Agree Disagree Disagree
For making any organization successful it is necessary that the organizational, team and
individual goals are aligned. If interest of any one is different from the rest then
deviations may occur. All employees should have knowledge about the organizations
mission, objective and goals. On the other hand even the employer should have
knowledge of the employee’s objectives and future direction.
“This organization’s atmosphere is generally friendly.”
Strongly Agree 25 50 %
Agree 18 36 %
Neutral 5 10 %
Disagree 1 2%
Strongly Disagree 1 2%
Total 50 100 %
30
25
25
Number of Employyes
20 18
15
10
5
5
1 1
0
Strongly Agree
Somewhat Neutral Somewhat Strongly
Agree Disagree Disagree
If the organization’s atmosphere is friendly then work becomes a play, this is what all
organization strives for. There is a cut to throat competition in the pharmaceutical sector
so all HR people try to lessen the burden the work and create an healthy organizational
environment.
“Morale in this organization is high”
Strongly Agree 25 50 %
Agree 17 34 %
Neutral 1 2%
Disagree 3 6%
Strongly Disagree 4 8%
Total 50 100 %
30
25
25
Number of Employees
20
17
15
10
5 4
3
1
0
Strongly Agree Somewhat Agree Neutral Somewhat Disagree Strongly Disagree
Almost 90% of the employees believe that morale in their organization is high.
“I feel there are leaders in this organization that I can trust.”
Strongly Agree 26 52 %
Agree 15 30 %
Neutral 5 10 %
Disagree 1 2%
Strongly Disagree 3 6%
Total 50 100 %
Chart 8: Employees feel there are leaders in the workplace they can
trust
30
26
25
Number of Employees
20
15
15
10
5
5 3
1
0
Strongly Agree Somewhat Agree Neutral Somewhat Disagree Strongly Disagree
Trust is the most important thing if people are working in a group for achieving a
common objective. Without trust no organization can work in a stable manner.
Organizational leaders should always work for the better interest of their members and
employees as members should show their trust in them and should support them. Through
this graph it can be clearly stated that majority of the employees trust their leaders.
“There is a spirit of co-operation among staff in this organization”
Strongly Agree 30 60 %
Agree 18 36 %
Neutral 2 4%
Disagree 0 0%
Strongly Disagree 0 0%
Total 50 100 %
35
30
30
Number of Employees
25
20 18
15
10
5 2
0 0
0
Strongly Agree Somewhat Agree Neutral Somewhat Disagree Strongly Disagree
All the employees agreed that there is a spirit of co-operation among its co-workers. This
also indicates the congenial and healthy organizational atmosphere of all the organization
as well as of the pharmaceutical sector as a whole.
If there are too much to conflict among the staff members then maximum time, resources
and human efforts are wasted solving those problems.
“I know how my job fits in the larger picture of the pharmaceutical affairs”
Strongly Agree 25 50 %
Agree 15 30 %
Neutral 5 10 %
Disagree 5 10 %
Strongly Disagree 0 0%
Total 50 100 %
C hart 10: Employees know how their job fits in the larger picture of the
pharmaceutical affairs
30
25
25
Number of Employees
20
15
15
10
5 5
5
0
0
Strongly A gree Somewhat Agree Neutral Somewhat Disagree Strongly Disagree
In this competitive world it becomes necessary that an employee has a good career graph.
For this graph, an employee individually has to prepare a career path. The organization
can also help him prepare his career map with the organization. This would him both the
organization and the person. If a person feels he has good opportunities of growth in this
organization then he will never hunt for a job anywhere else.
“This organization has policies that are supportive of its staff”
Strongly Agree 23 46 %
Agree 19 38 %
Neutral 5 10 %
Disagree 1 2%
Strongly Disagree 2 4%
Total 50 100 %
25 23
20 19
Number of Employees
15
10
5
5
2
1
0
Strongly Agree Somewhat Agree Neutral Somewhat Disagree Strongly Disagree
Organizational policies, norms, rules and regulations are made so that there is a normal
code of conduct for all working in the organizations. It is necessary that these rules and
regulations are enforced properly and at the same time they are supportive of their staff,
because if they are too rigid people might feel uncomfortable and leave their job and if
norms are too loose then their importance will go away.
“Policies in this organization are clearly articulated to its staff.”
Strongly Agree 20 40 %
Agree 15 30 %
Neutral 11 22 %
Disagree 2 4%
Strongly Disagree 1 2%
Total 50 100 %
25
20
20
Number of Employees
15
15
11
10
5
2
1
0
Strongly Agree Somewhat Agree Neutral Somewhat Disagree Strongly Disagree
Making a policy doesn’t make things rolling; it’s the communication and articulation that
makes the difference. 40% of employees believe that whatever policies their organization
implements is also articulated. Controlling is very necessary so that deviation don’t crop
up.
“Disciplinary procedures in this organization are consistently enforced.”
Strongly Agree 21 42 %
Agree 20 40 %
Neutral 7 14 %
Disagree 2 4%
Strongly Disagree 0 0%
Total 50 100 %
25
21
20
20
Number of Employees
15
10
7
5
2
0
0
Strongly Agree Somewhat Agree Neutral Somewhat Disagree Strongly Disagree
All the organizations have to act by the laws and rules of the state, the particular industry
or by the disciplinary laws enacted by Industrial Dispute Act. If they don’t abide them
then heavy penalty or punishments have to be borne.
According to this survey major segment of the employees believe the organization is
ethically implementing all disciplinary procedures as and when required.
“Workload in this organization is equally distributed.”
Strongly Agree 19 38 %
Agree 16 32 %
Neutral 11 22 %
Disagree 3 6%
Strongly Disagree 1 2%
Total 50 100 %
20 19
18
16
16
Number of Employees
14
12 11
10
8
6
4 3
2 1
0
Strongly Agree Somewhat Agree Neutral Somewhat Disagree Strongly Disagree
One person cannot do all the work. So division of labour is done. Work is equally
distributed among all the employees so that the work pressure and stress is reduced from
one employees head and distributed. Their efficiency increases as a result productivity
and profitability also increases. There are many employees who are neutral about this
statement.
“This organization has regular staff meetings to plan and co-ordinate the
work and makes announcements.”
Strongly Agree 30 60
Agree 13 26
Neutral 3 6
Disagree 1 2
Strongly Disagree 3 6
Total 50 100 %
Chart 15: Regular staff meetings to plan & co-ordinate work & make
announcement are done
35
30
30
Number of Employees
25
20
15 13
10
5 3 3
1
0
Strongly Agree Somewhat Agree Neutral Somewhat Disagree Strongly Disagree
An employee gets a clear direction of what is to be done, feedback of his past and present
work as well as the scenario going in the organization from the meetings. Staff meeting
creates a friendly environment within the organization. 60% of employees strongly agree
that their organizations have these staff meetings on a regular base and they are helpful.
“I know exactly what is expected of me as an employee.”
Strongly Agree 35 70
Agree 8 16
Neutral 5 10
Disagree 2 4
Strongly Disagree 0 0
Total 50 100 %
40
35
35
Number of Employees
30
25
20
15
10 8
5
5 2
0
0
Strongly Agree Somewhat Agree Neutral Somewhat Disagree Strongly Disagree
86% of employees of the Indian pharmaceutical sector have a clear understanding of
what is expected out of them. There is no one who strongly disagrees to this statement,
with this we can say that the employees are well aware about where they are and what is
to be done to go to the next position. Clarity of mind is the most important thing.
“I have a clear understanding of how my job performance is measured.”
Strongly Agree 31 62
Agree 16 32
Neutral 3 6
Disagree 0 0
Strongly Disagree 0 0
Total 50 100 %
35
31
30
Number of Employees
25
20
16
15
10
5 3
0 0
0
Strongly Agree Somewhat Agree Neutral Somewhat Disagree Strongly Disagree
Performance Appraisal is important for all the organizations. By this method performance
of employees is measured. Almost everyone knows the methods and means of how the
performance is measured in the organization. The method should be a standard method
and communicated to all. If the employee is appraised according to his potential then he
won’t think of any other job so risk of attrition lowers down.
“I received orientation to this organization and my job when I started.”
Strongly Agree 23 46 %
Agree 17 34 %
Neutral 7 14 %
Disagree 3 6%
Strongly Disagree 0 0%
Total 50 100 %
25 23
20
Number of Employees
17
15
10
7
5 3
0
0
Strongly Agree Somewhat Agree Neutral Somewhat Disagree Strongly Disagree
Strongly Agree 18 36
Agree 19 38
Neutral 8 16
Disagree 5 10
Strongly Disagree 0 0
Total 50 100 %
20 19
18
18
16
Number of Employees
14
12
10
8
8
6 5
4
2
0
0
Strongly Agree Somewhat Agree Neutral Somewhat Disagree Strongly Disagree
An employee especially in the pharmaceutical sector has to always polish his skills and
abilities because everyday there is a change and scope of development and learning. An
employee gets motivated when his organization, his peers support them to develop his
professional skills and motivates him to participate in external programs.
“This organization reasonably accommodates personal needs.”
Strongly Agree 12 24 %
Agree 25 50 %
Neutral 10 20 %
Disagree 3 6%
Strongly Disagree 0 0%
Total 50 100 %
30
25
25
Number of Employees
20
15
12
10
10
5 3
0
0
Strongly
A person works Agree hisSomewhat
to fulfilling Agree If these
personal needs. Neutral
needs are notSomewhat
fulfilledDisagree
he tries toStrongly Disagree
hunt new jobs where he can satisfy these needs. By this graph it is clearly indicated that
by working in these organizations an employee can somewhat accommodate with his
personal needs.
“I feel fairly compensated for the work I do in this office as compared to
other similar position across the sector.”
Strongly Agree 15 30 %
Agree 16 32 %
Neutral 11 22 %
Disagree 5 10 %
Strongly Disagree 3 6%
Total 50 100 %
Chart 31: I feel fairly compensated for the work I do in this office
compared to other similar positions across the sector.
18
16
16 15
14
Number of Employees
12 11
10
8
6 5
4 3
2
0
Strongly Agree Somewhat Agree Neutral Somewhat Disagree Strongly Disagree
Sometimes an employee get job satisfaction from the monetary compensation received to
him in the particular organization as compared to other jobs in the organization or similar
jobs in other organization.
Compensation is the primary driving force for people to work or to increase their
productivity.
“I like my job and my co-workers. My organization is one of the best places
to work in the pharma sector.”
Strongly Agree 30 60 %
Agree 9 18 %
Neutral 2 4%
Disagree 9 18 %
Strongly Disagree 0 0%
Total 50 100 %
Chart 33: I like my job and co-workers. My organization is the best place
to work in the pharma sector.
35
30
30
Number of Employees
25
20
15
9 9
10
5 2
0
0
Strongly Agree Somewhat Agree Neutral Somewhat Disagree Strongly Disagree
60% of the people are satisfied and happy with their current organization. Though there
are 18% of people who are not very satisfied, other 18% are not at all happy with their
organization and 4 % are neutral towards it.
“I think often about seeking employment elsewhere.”
NO – I don’t think 16 32 %
about seeking
employment elsewhere
YES – A higher rank 22 44 %
position in same
organization
YES – Elsewhere in the 6 12 %
same organization
YES – Outside this 6 12 %
organization
Total 50 100 %
25
22
Number of Employees
20
16
15
10
6 6
5
0
no - I don't think about yes - a higher rank yes - elsewhere in the yes - outside the org
seeking employment position in same org same org
About 44% of theelsewhere
employees are
seeking a higher rank in the same position. 12% want to
move out of the from their existing department. Other 12% want to move out of the
organization. While the rest 32% are not looking for any changes.
Chapter : 5 Discussion
The study was done to find out the reasons for high attrition rate in the Indian
companies. There were 50 samples randomly selected for conducting the research work.
In all the organizations there are different ways and methods of finding the attrition rate.
There are different formulas used. Moreover attrition rate varies from organization to
organization, also attrition rates changes in different organizational strata’s i.e top level
management, bottom level management and lower level management. On the average of
these rates the organizational attrition rate is calculated. The attrition of each organization
Higher the attrition, higher is the cost to be borne by the organization so all organization
strives to lower their attrition rate. The employee leaving not only increases the cost but
also takes the company’s knowledge, customers, current projects details and business
A person works to fulfill his personal and social needs. If he is not compensated well
according to his skills and abilities then his morale goes down and he is no more
motivated to work hard. The survey also shows that employees in the Indian
pharmaceutical sector give importance to monetary benefits and about 30% to 35% of
employees believe that they are not compensated as per their skills and abilities.
Employees of big and branded companies do not show an inclination to leave their
organization as they know that they are working with one of the best organization. Only
12% of the employees want to quit their organization, whereas 44% of the employees
want to stick to the same organization but may be at a higher position. This implies that
Monetary compensation may be the prime criteria as to why an employee joins the
organization but the ultimate reason to remain in the organization is his job satisfaction.
Job satisfaction cannot be attained from a single thing but many factors are behind it like
An employee spends 1/3rd of the day in the organization so he should be provided with a
comfortable environment where he feels at valued so that he can give his 100%
performance. His grievances should be heard to with positive results. A healthy relation
among the organization should be maintained.26% of the employees feel that they are
properly heard in the organization. 58% of employees believe they are being supported
by other staff members and management. Thus from we can conclude our second
we have heard people saying, “If only I could have paid her more, she would have
stayed.”
Yes, we’ve lost people because of money, but this research finds that people leave for
The answer is that most people leave their jobs because of their supervisor or team
leader! What is it about this workplace relationship that makes it the number one reason
so many people leave their jobs? Basically, it’s a lack—of trust, of communication, of
In many organizations the size of the company becomes the reason for the “lack ofs.”
research indicates that once a business entity grows to more than 150—200 people the
“lack ofs” grow into “issues” because managers, supervisors and/or team leaders get too
far away from their people.When you go higher in the organization, you begin to “see” a
• Salary, Organization’s Brand and Outer image of the organization has effect on
• High attrition in the pharmaceutical sector is due to poor job satisfaction and
Thus from the above discussion we can conclude that both our hypothesis have been
proved correct.
1. Sample Size
Since the sample size was small, numbering only 50 subjects, the exposure to the
subject was also small. Bigger sample size would have given more responses
leading to a better and broader idea of the outcomes. The study was limited to
2. Time Constraint
employees fill the questionnaire or give any information about the attrition stating
it to be a sensitive issue.
4. There are chances that the study undertaken is not 100% correct. So the allowable
• The organization must try to empower the employees so that they can make their
own decision and have autonomy. This would not only increase their job
satisfaction, it would reduce the dependency on the management and hence the
• Communication amongst all levels must be transparent and speedy so that it leads
• The organization must avoid being bias to few influential people, and hearing out
only the stronger employees. A fair chance must be given to all employees and an
• The organizational culture should be made enabling i.e it should create a sense of
• Continuous updating of the employees skills and knowledge through training and
workshops would boost their job satisfaction and also create a positive
organizational culture.
• The employees are not always comfortable to express their opinions freely. To
systems and remove employees do not always feel free and comfortable.
Reference
• Wilipedia, the free encyclopedia
• www.livemint.com
• www.citehr.com
• www.managementguys.com