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A

STUDY

ON

EMPLOYEE ATTRITION

IN

IT INDUSTRY IN INDIA

SUBMITTED BY: MISS .BELAN DIPTI D.

GUIDE:P ROF. PADHAMNABHAN H.K.

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Introduction

Literature Survey

Theorization of Research Topic

Research Design/ Research Methodology

Data Analysis

Finding

Suggestion

Conclusion

References

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All businesses, large and small, have some way of keeping track of their finances.

Businesses are constantly looking for more ways to keep expenses low.

One factor that is often overlooked, however, is the cost of employee Attrition.

High employee turnover can cost a company more than they might realize in the

long run.

Employee Turnover occurs when employees voluntarily leave their jobs and must

be replaced.

Attrition is expressed as an annual percentage of the total workforce.

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This study helps the company to understand more on the Attrition rate in the

company, helping them to reduce the employee Attrition.

The study educates the causes for Attrition of employees in an organization.

The study also helps to find the drawbacks of the current retention strategies.

This study will also help the organization to know about the satisfaction level of the

employee on different aspects of the job in order to satisfy.

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To identify the rate of Employees Attrition.

To identify the causes of employees Attrition.

To suggest measures to reduce the rate of Attrition.

To study the trend in employee Attrition in IT companies.

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Data collected is based on secondary data.

The research exercise was conducted within a limited duration. So a detailed study

could not be made.

The result would be varying according to time.

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The study throws light through valuable suggestion to decrease attrition level in the

organization.

This study can help the management to find the weaker parts of the employee feels

towards the organization and also helps in converting those weaker part in to stronger by

providing the optimum suggestions or solutions.

This study has a wider for scope in any kind of organization since “attrition” is general

one and makes the employees to put forth their practical difficulties and need factors in

the organization.

This study can help the management to know for which the reason employees tend to

change their job, through dissatisfaction factors faced in the organization and also helps

to recover by providing the optimum suggestions or solutions.

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“EMPLOYEE TURNOVER: PRESENT SCENARIO OF INDIAN IT

INDUSTRY” published by the author Ms.S.Janani in the Indian Journal of Applied

Research Volume: 4 | Issue: 3 | Mar 2014 | ISSN - 2249-555X.

“EMPLOYEE TURNOVER IN IT INDUSTRY WITH SPECIAL REFERENCE

TO CHENNAI CITY-AN EXPLORATORY STUDY” published by the author Mrs.

E. Deepa &Mrs. M. Stella in the International Journal of Multidisciplinary Research

Vol.2 Issue 7, July 2012, ISSN 2231-5780.

“EMPLOYEE ATTRITION: INEVITABLE YET MANAGEABLE” published by

the author Ms. Gayatri Negi in the International Monthly Refereed Journal of

Research in Management & Technology Volume II, July’13 ISSN 320-0073.

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“ATTRITION IN INDIA – CAUSES & REMEDIES” published by the author Mr.

Savneet Kaur in the International Journal of Emerging Research in Management

&Technology ISSN: 2278-9359 (Volume-2, Issue-6),June 2013.

“INFANT ATTRITION IN INDIAN IT SECTOR: AN INDICATION” published

by the author Dr. Sneha Mankikar in the International Journal of Scientific and

Research Publications, Volume 3, Issue 9, September 2013 1 ISSN 2250-3153.

“A STUDY ON THE EMPLOYEE TURNOVER INTENTION IN ITES/BPO

SECTOR” published by K.R.SreeRekha & Dr.T.J.Kamalanabhan International

Conference - Frontiers of Management – Encore Feb 2013 9th February 2013 -

Chennai, India ISBN No: 978-81-926045-0-3

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A reduction in the number of employees through retirement, resignation or death.

Employee Attrition is an enormous problem for any company and creates negative

bottom-line impacts.

Employee Attrition costs can amount to thousands of dollars, annually.

It can also prevent companies from pursuing their growth opportunities and

acquiring new business & Attrition rate is the rate of shrinkage in size or number.

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ATTRITION

A reduction in the number of employees through retirement, resignation or death is

called Attrition .Attrition is also called total turnover or wastage rate.

ATTRITION RATE

The rate of shrinkage in size or number of employees is known as Attrition rate. It is

usually expressed in percentage.

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Attrition Rate = ((No. of attritions x 100) / (Actual Employees + New

Joined)) /100

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So according to the formula: ((20 x 100) / (150 + 25)) / 100

Which comes to 0.1142 i.e. 11%

Now as you had 150 previously and now 25 joined so it makes 150 + 25 =175

Now if you calculate 11.42% of 175 i.e. 175 x 0.1142 = 20

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.

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Voluntary attrition

Involuntary attrition

Natural attrition

Compulsory attrition

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Causes of

attrition

Drive

Attrition

Drag

Attrition

Employer

Policy

Quality

Policy

Holiday

Policy

Lack of importance

Of Job

Limited

Promotions

Stressful

Job

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Loss of productivity

Replacing qualified employees

Poor retention creates a “revolving door” culture within the organization lowering

morale and confidence.

Cost of overtime or temporary help

Recruiting costs

Interviewing costs

Time spent in orientation

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RESEARCH PROBLEM

A STUDY ON EMPLOYEES ATTRITION IN INDAN IT INDUSTRY

RESEARCH DESIGN

The nature of this report is Descriptive.

DATA COLLECTION

The data is collected from secondary sources.

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Table1. Employee Attrition Rate of Various Industries in India

INDUSTRY Education Manufacturing Capital Goods Construction IT

% 17 20 23 25 30

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Table 2. Employee Attrition Rate in Different Country

Country India Russia Indonesia Brazil US Chin

a

UK

% 26.9 26.8 25.8 24.4 21.8 21.3 14.6

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Table 3.Attrition Rate Top 6 IT company

Company

Name

2012 2013

Cognizant 10.7 14.5

HCL

Technologies

13.1 15.3

Infosys 15.1 18.1

TCS 11.2 10.9

Tech

Mahindra

16.0 17.0

Wipro 12.9 16.3

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Table 4. Impact of Age on Attrition

Age 20-25 26-30 31-35 36-40 40-45

% 13 61 19 7 0

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Table 5. Impact of Experience on Attrition

Experience in years 0 - 2 2 - 4 5 & above

% 19 640 17

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Table 6. Causes of Attrition.

Causes of Attrition %

Compensation 42

Career Advancement 23

Relocation to Another Area 2

Nature of Job 8

Boss Relation Problem 12

Working Hours 5

Location of the

Organization

2

Family Problem 4

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IT companies are facing attrition problem.

Employee Attrition rate of IT Company is high in India.

Employee Attrition is high in between age 26-30.

After Some year Experience Employee Resignation the job because higher

opportunity to develop the career.

Majority of employees (42%) left the job due to dissatisfaction with pay,

23% employees left the job due to lack of career advancement,

2% employees left the job due to relocation to another area

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8% employees left the job due to nature of job.

Dissatisfaction with pay, Lack of career advancement, Relationship with other

colleagues, Working hours, working conditions, Job related Stress these are

organizational reasons.

Higher education, Personal problem, Problems with management, Location of

the organization, Maternity these are the personal reasons.

IT companies have a young & dynamic workforce because more than 93% of

the employees have not crossed 35 years.

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Offer fair and competitive salaries

Developing a Good Training Program

Reward and Recognition of employees

Stock Options

Strengthen the Recruitment Process

Career opportunities

Exit Interviews

Work Life Balance

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Attrition is becoming a serious problem in today’s corporate environment.

Employee attrition has been the silent killer for improving the organizational

productivity.

Attrition cost for many organizations are very high and can significantly affect the

financial performance of an organization.

From results it can be concluded that there are various reasons behind employee

attrition. These reasons are best offer next door, overseas opportunities, Boss

relation problem, higher package, further overseas studies, shifting of cities due to

marriage, family and personal problem, improper time schedule and parent’s

health requires moving to other cities.

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Voluntary attrition rate is high between the ages of 24-28 years

After getting the 2-4 years’ experience IT professionals got higher opportunity so the

growth opportunity is the main reason of the voluntary attrition.

This research proposed a measure if implemented and executed properly would help

concern organization to understand their employees‟ needs with regard to their

career, job, and family and follow the above mentioned remedies and retained their

talented workforce, thereby meeting their expectations and requirements, and thus

reducing employee attrition.

Aswathappa, HUMAN RESOURCES AND PERSONNEL MANAGEMENT, TATA

McGraw Hill, 2003

Research Methodology in Management – V. P. Michael

http://www.ermt.net/docs/papers/Volume_2/issue_6_June2013/V2N6-130.pdf

http://www.abhinavjournal.com/images/Management_&_Technology/Jul13/8.pdf

http://www.theglobaljournals.com/ijar/file.php?val=March_2014_1394790379_a111e_7

8.pdf

http://www.ametjournal.com/attachment/ENCORE%20-%20ARTICLES%20-

%202013.pdf

https://ebstudies.wordpress.com/2013/04/10/attrition-in-it-industry

http://www.ijsrp.org/research-paper-0913/ijsrp-p21118.pdf

http://www.whatishumanresource.com/attrition

www.citehr.com

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