EMPLOYEE ATTRITION ANALYSIS AT APOLLO HOSPITALS, BHUABANESWAR

AND RETENTION STRATEGIES

Submitted by

ALKAGNEE SENAPATI.

PGP/SS/ISBE (B)/10-12

DECLARATIONI hereby declare that the following documented project report titled “EMPLOYEE ATTRITION ANALYSIS AT APOLLO HOSPITALS, BHUBANESWAR AND RETENTION STRATRGIES” is an authentic work done by me.

The study was undertaken as a part of the partial fulfillment of requirements for the degree of Master of Business Administration to IIPM, Bhubaneswar, and it is my original work.

DATE: ALKAGNEE SENAPATI

Acknowledgment

I have taken efforts in this project. However, it would not have been possible without the kind support and help of many individuals and organizations. I would like to extend my sincere thanks to all of them.

I am highly indebted to Mr. Devabrata Bhattacharya, Sr HR Manager of Apollo Hospitals, Bhubaneswar who gave me the golden opportunity to complete this summer internship program. My deepest sense of gratitude to Mrs. Nirlipta Mishra, Sr HR Executive, Apollo Hospitals, Bhubaneswar for her guidance and constant supervision as well as for providing necessary information regarding the project & also for her support in completing the project.

I would like to express my gratitude towards all members of Apollo Hospitals, Bhubaneswar for their kind co-operation and encouragement which help me in completion of this project.

I would like to express my special gratitude and thanks to Mr. Sainik Som, Faculty, IIPM for giving me such attention and time.

My thanks and appreciations also go to my colleague in developing the project and people who have willingly helped me out with their abilities.

ALKAGNEE SENAPATI

CONTENTS

Nomenclature Pages

About the company 5-6

Project Introduction 7-11

Objective of the project 12

Research methodology 13-15

Analysis and Findings 16-28

Retention Strategies 29-32

Conclusion 33

Appendix 34-35

Bibliography 36

EXECUTIVE SUMMARY

Indian healthcare sector is now one of the booming sectors in India. Apollo Hospitals Enterprises Limited (AHEL) is the largest player in this healthcare sector. As we know that in this sensitive service sector, employee satisfaction is the major issue now. It is now a difficult task to find and retain the good and skilled employees.

Apollo Hospitals, Bhubaneswar started its journey on 5th March, 2010. So it is now a new hospital with its structured and planned strategies. During the observation and employee satisfaction survey, it is found that there is some factors came out which may lead the attrition. These factors are low salary, gap in communicating, lack of appreciation/recognition, support from other departments, unaware about career advancement and growth as well as a cracked work and personal life balance. So mainly, these factors are leading attrition at Apollo hospitals, Bhubaneswar.

So now the success of this hospital has depended in various effective employee retention strategies. Apollo Hospitals, Bhubaneswar should focus on these attributes: fair salary, employee engagement, work motivation, focus on career growth, providing a clear and easy communication structure, recognize and appreciate employees’ achievement, feeling fun, friendship and a sense of community at this hospital. These tools surely help to retain the employees of Apollo hospitals, Bhubaneswar.

ABOUT THE COMPANY

It is often said that nothing happens, unless there is a dream first. At the genesis of the Apollo story there was a dream. A dream so powerful, that it helped transform the medical landscape in India.

The dream nurtured and grew within Dr. Prathap C Reddy, the founder Chairman of Apollo Hospitals, until the point of inflection happened in 1983. A young man succumbing to an ailing heart was what it took to a situation Dr. Reddy's vision into a reality - a vision where quality healthcare was given, where the pursuit of clinical excellence was daily endeavor, India a hub in the medical tourism map and where the Apollo family touches and enriches lives every minute, every day.

Today, with over 8500 beds across 54 hospitals, and a significant presence at every touch-point of the medical value chain, Apollo Hospitals is one of Asia’s largest healthcare groups. Commenced as a 150 bed hospital, today the group has grown exponentially both in India and overseas. Its growth is often said to be synonymous with India emerging as a major hub in global healthcare.

Apollo Hospitals is driven by a single thrust, to provide the best standards of patient care. It is this passion that has lead to the development of unique centers of excellence across medical disciplines, within the Apollo Hospitals network. Apollo Hospitals has JCI accreditations for 7 of its hospitals, the largest by any hospital group in the region.

True to its founding principles, the group has made quality healthcare accessible to the people of India, and even overseas. It has become an institution of trust, and a beacon of hope to so many searching for a cure for their ailments.

The legacy of touching and enriching lives stems from the pillars of the Apollo philosophy - experience, excellence, expertise and research. We pride ourselves for constantly being on the cutting edge, and going the extra mile to stay relevant and revolutionary.

The Apollo Hospitals Group is the pioneer of integrated healthcare delivery in India. This vision led the group to earmark time and resources to strengthen each vital cog in the process of healthcare delivery. As a result of these efforts, the group today is in a unique position to exponentially increase its healthcare cover. This will be critical in order to meet future requirements.

Apollo Hospitals Group, today, is an integrated healthcare organization with owned and managed hospitals, diagnostic clinics, dispensing pharmacies

and consultancy services. In addition, the group’s service offerings include healthcare at the patient’s doorstep, clinical & diagnostic services, medical business process outsourcing, third party administration services and health insurance. To enhance performance and service to customers, the company also makes available the services to support business, telemedicine services, education, training programs & research services and a host of other non-profit projects.

Apollo Hospitals, Bhubaneswar, is one of the newest facilities from the Apollo hospitals group. A 350-bedded tertiary care hospital with state-of-the-art technology, spread over a campus area of about 7.5 acres with a built-up area of approximately 206,158 sq.ft, it was inaugurated on the 5th of March, 2010.

The super speciality hospital offers all major medical and surgical specialties and superspecialities including Cardiology CT Surgery Orthopedics Neurology & Neuro Surgery Emergency & Trauma Nephrology & Urology Gastroenterology Neonatology Oncology (Med. & Surgical) Pediatrics Pulmonary/Chest Medicine Urology

INTRODUCTIONIn 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 turnover? Who is likely to stay the longest?

Defining Attrition: "A reduction in the number of employees through retirement, resignation or death"

Defining Attrition rate: "the rate of shrinkage in size or number"

Reasons for attrition

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 campaigns

makes people to quickly move out of the organization.

• Working environment:Working environment is the most important cause of attrition. Employees

expect very professional approach and working environment. They expect

very friendly and learning environment. Employees look for freedom, good

treatment from the superiors, good encouragement, friendly approach from

one and all, and good motivation.• Job matters:No doubt the jobs today bring lots of pressure and stress is high. The

employees leave the job 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

campaigns and few employees find it difficult to get adjusted and they

leave immediately. Monotony sets in very quickly and this is one of the

main reasons for attrition. • Salary and other benefits:Moving from one job to another for higher salary, better positions and better

benefits are the most important reasons for attrition. The salary and offered

from MNC companies in Bangalore, Delhi and Mumbai have gone up very

high (Rs 15000 to Rs 18000 per month) and it is highly impossible for

Indian companies to meet the expectation of the employees. The

employees expect salary revision once in 4-6 months and if not they move

to other organizations.• Personal reasons:The personal reasons are many and only few are visible to us. The

foremost personal reasons are getting married or falling in love or change

of place. The next important personal reason is going for higher education.

Health is another aspect, which contributes for attrition. Employees do get

affected with health problems like sleep disturbances, indigestion,

headache, throat infection and gynecological dysfunction for lady

employees. Employees who have allergic problems and unable to cope

with the AC hall etc will tend to get various other health problems and loose

interest to work.

• Poaching:The demand for trained and competent manpower is very high. Poaching

has become very common. The big companies target employees of small

companies. The employees with 4-6 months experience have very good

confidence and dare to walk out and get a better job in a week's time. Most

of the organizations have employee referral schemes and this makes

people to spread message and refer the know candidates from the

previous companies and earn too.

•Employee’s advocate:One of the main reasons why employees leave companies is because of

problems with their managers. An HR professional can be termed an

employee’s advocate and a bridge between top management and

employees at all levels. There is a huge gap between HR professionals

and employees in terms of understanding challenges and delivering

requirements. The company’s overall plans and strategies also depend on

HR professionals as they voice employees’ problems and requirements.

The HR department should have genuine interest in the employees’

welfare.

Cost of Attrition's Cost of advertising for new positions the cost and time involved in interviews and background

checks, costs associated with search firms or placement agencies, relocation costs of new employees Training and orientation costs

ATTRITION IN HEALTHCARE SECTOR

Healthcare has been one of the fastest growing industries in the last twenty years and the need for healthcare workers continues to escalate. Yet, most healthcare employers know that finding and retaining good healthcare workers is a difficult task. The widespread skilled employees shortage is affecting every hospital and healthcare organization.

Healthcare employees often cite the stressful work environment as one of the reasons they choose to leave the industry. The long hours and frequently demanding patients contribute to the physical and emotional stress of working in the field. Unhappy workers lead to unhappy patients. Patients who do not feel well cared for will go somewhere else. Quality of patient care decreases with higher turnover rate.

Thousands of rupees are spent on training new workers on subjects such as Universal Precautions, documentation, protocols, and critical pathways.

The maximum attrition takes place at middle level management as these are the people who hit the growth ceiling in a very short span of time and find that further growth in the system would be very slow. Also, when the new facilities find it difficult to get talent who has exposure to hospital industry, they attract them with better offers.

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OBJECTIVE OF THE PROJECT

To know about the functions of Apollo Hospital, Bhubaneswar

To find out the causes of attrition at Apollo Hospital, Bhubaneswar

By analyzing the findings, to get some effective retention strategies

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RESEARCH METHODOLOGY

Research refers to a search for knowledge. One can also define research as a scientific and systematic search for pertinent information on a specific topic. In fact, research is an art of scientific investigation. It is the pursuit of truth with the help of studies, observation, comparison and experiment. In short the search for knowledge through objective and systematic method of finding solution to a problem is research.

RESEARCH DESIGN

A research design is an arrangement of conditions for connections and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure. Research design is a plan that specifies the sources and types of information relevant to the research problem. It is a strategy specifying which approach will be used for gathering and analyzing the data. In fact, it is the conceptual structure with which research is conducted; it constitutes the blue print for the collection, measurement and analysis of data. The plan is an outline to research scheme on which the researcher id to work. The structure of the research is a more specific outline or the scheme. The strategy shows how the research will be carried out, specifying the method to be used in collecting data.

TYPES OF RESEARCH DESIGN

Research design is mainly of three types: -

Exploratory research

Descriptive research

Experimental research

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EXPLORATORY RESEARCH: -

It is often the initial step in the series of studies designed to supply information for decision-making. The main purpose of this research is for formulating the problem for more precise investigation or of developing a working hypothesis from an operational point of view. The major emphasis in such studies is on the discovery of ideas and insights.

DESCRIPTIVE RESEARCH: -

It includes surveys and fact-finding enquiries. The descriptive research is typically concerned with determining the frequencies with which something occurs or determining the degree to which variables is associated. It is guided by an initial hypothesis.

EXPERIMENTAL RESEARCH: -

In this some variables are manipulated to observe their effect on other variables. Experimentation is defined as a process where events occur in a setting at the discretion of the experiment and controls are used to identify the source of variants in the subject. Thus they are those where the researcher tests the hypothesis of the causal relationship between variables.

Data Collection MethodData for the present study is collected from two sources:

Primary Data The primary data are those which are collected a fresh & for the first times as these happen to be original in character. Primary data may be collected through observation method through questionnaire through schedule etc.Secondary data   The secondary data on the other hand are those which has already been passed through the statistical process. Secondary data may be collected through magazines, journals, newspapers etc.

The primary data can be collected by two methods: Survey Method Observation Method.

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The research undertaken by me in this project is a descriptive research.The research methodology adopted for the project can be stated as

follows –

An extensive study of the topic through various sources like internet, books and work done on some topics.

A questionnaire was prepared to analyze the level of dissatisfaction of employees of Apollo Hospitals, Bhubaneswar which are mainly focus to attrition.

Collection of questionnaire took place after a week to analyze data.

All the responses were studied and certain findings and recommendations are given.

In this study I have used Structural Questionnaire (see APPENDIX) for collecting primary data.

I am taking sample size as 25.

I have also made frequent interaction with the management and the employees during my training at Apollo Hospitals, Bhubaneswar.

I have also observed the employees and their surroundings.

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ANALYSIS AND FINDINGS

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I am here showing all the analysis in a bar chart form.

I am treating all questions in different attributes:

Compensation

Work environment

Communication

Career advancement

Cooperation

Appreciation

Job satisfaction

COMPENSATION

1) Does your salary commensurate with your contribution to the organization?

6) Does salary affects your work performance?

12) Does your compensation matches with your responsibilities?

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FINDINGS:

We can see here that 56% are not satisfied with their salary in order to their contribution. 44% are thinking that salary matters for performance. With 8% strong supports, 20% more also thinking that they are taking more responsibilities than their compensation. Overall we found that there is dissatisfaction on compensation.

WORK ENVIRONMENT

5) All employees are being treated fairly.

11) Work stress is reasonable.

16) Have you ever come across any harassment at AHEL?

Findings: 32% dishearten with the fairness of treatment in the hospital including 16% of strong support. Only 20% are thinking that work stress is not reasonable. 38% have come across harassment somewhere. So we found that there is not that much control on work environment. It may be big factor for attrition.

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COMMUNICAION

2) Is there any gap in communicating with all levels of staffs in your organization?

7) Are you aware about Leave Policy?

13) I am kept well informed about company plans and progress.

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18) The reporting structure is very easy and clear.

Findings: We can see here that 60% agreed on the existing communication gap. 38% are not aware about leave policy. 20% are unable to update about company’s plans and progress. 20% are thinking that there is a difficult procedure for reporting. The main and vital issue here is the communication gap.

CAREER ADVANCEMENT

3) I have a clearly established career path at AHEL.

10) Opportunities for advancement and growth.

Findings: 24% did not feel the established career path at Apollo hospitals, Bhubaneswar. 24% are thinking that there is not any opportunity for their career advancement and growth.

COOPERATION

14) We have good team spirit in our department.

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19) I get support from other departments in AHEL.

Findings: Only 8% are thinking that there is not team spirit in their own department. 25% are not getting support from other departments which may be a reason for dissatisfaction.

APPRECIATION

4) Employees’ performance is fairly evaluated.

8) My last performance appraisal accurately reflected my performance.

9) I feel I am valued at AHEL.

Findings: 16% are thinking that their performance is not fairly evaluated. 28% including 16% strong support are feeling that their last performance appraisal had not reflected their actual performance. Another issue is that 36% including 8% strong support are thinking that they are just a commodity for the organization. They have not any value at this hospital.

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JOB SATISFACTION

15) My job-expectations are full filled.

17) I maintain a proper balance between work life and personal life?

20) Overall satisfaction with the Organizational climate as an employee.

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Findings: Here we found that 44% have not met their job-expectation which is a big issue to attrition. 28% are not maintaining the balance between work life and personal life. 32% are not satisfied with the organizational climate here. It may be due to the employees here not that much professional. They always seek to excuses.

Comparing to the corporate culture here in Orissa and a big brand and very structured corporate culture like Apollo, it will take some time to adopt this disciplined culture. And the major issue is that most of the employees here from Orissa or neighbor states.

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RETENTION STRATEGY

RETENTION:

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Employee retention is a process in which the employees are encouraged to remain with the organization for the maximum period of time or until the completion of the project.

KEY AREAS IN RETENTION:

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RETENTION STRATEGIES 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. All employees cannot evaluate the big brand. Compensation includes salary and wages, bonuses, benefits, bonuses, vacations, etc. Compensation constitutes the largest part of the employee retention process.

Providing a clear communication

An employee’s work must be communicated to him clearly and thoroughly. The details of the job, its importance, the way it should be done, maximum time that can be allotted to complete it etc., must be made clear. If there are changes to any of these, let the employee know at the earliest. Management should have to talk to each employee at regular intervals. Listen and solve employee complaints and problems, as much as possible.

Recognize and appreciate their achievements

Employees must feel rewarded, recognized and appreciated for well done job. Giving periodical raise in salary or position helps to retain staff. This appreciation should be in public. It can be counted as an example for others.

Employee Engagement

The best way to retain is to provide work motivation. Challenge, job satisfaction, treating the employee with significance, being sensitive to his needs, making the organization predictable with systems and practices that

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are not bent or changed to accommodate any individual at any time etc.

may help retention.

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Focus on future career

Employees are always concerned about their future career. A manager should focus on showing employees his career ladder. If an employee sees that his current job offers a path towards their future career aspirations, then they are likely to stay longer in the company. Therefore, managers should play the role of career counselors as well.

Work-Life balance initiation

Work-life balance initiatives are important. Innovative and practical employee policies should apply to flexible working hours and schemes, granting compassionate and urgency leave, providing healthcare for self, family and dependants, etc. are important for most people. Work-life balance policies would have a positive impact on retaining skilled employees, as well as on attracting high-potential recruits.

Fun, friendship & a sense of community

Fostering of healthy friendships at work is a very important factor that helps employees stick to their jobs. Most people today want fun and friendship at work; they want to feel connected to their workplaces. Celebrate successes and recognize when milestones are reached. Birthday parties, employee picnics and creative contests will help remind people why your company is a great place to work.

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CONCLUSIONAttrition means “a reduction in the number of employees through retirement, resignation or death". 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.

The current situation of Apollo Hospitals, Bhubaneswar reveals various reasons why employees leave their job. Most of the employee at Apollo hospitals, Bhubaneswar left due to dissatisfaction in salary package, communication gap, lack of appreciation and unfilled job-expectation.

As retention strategies, Apollo hospitals, Bhubaneswar can make considerable improvement in term of salary package, benefits and motivation program, employee work engagement, work environment, communication procedure, providing opportunities for career advancement and growth as well as personal growth.

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APPENDIX

QUESTIONNAIRE ON ATTRITION ANALYSIS

Strongly agree Agree Disagree Strongly Disagree

1) Does your salary commensurate with your contribution to the organization?

2) Is there any gap in communicating with all levels of staffs in your organization?

3) I have a clearly established career path at AHEL.

4) Employees’ performance is fairly evaluated.

5) All employees are being treated fairly.

6) Does salary affects your work performance?

7) Are you aware about Leave Policy?

8) My last performance appraisal accurately reflected my performance.

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9) I feel I am valued at AHEL.

10) Opportunities for advancement and growth.

11) Work stress is reasonable.

12) Does your compensation matches with your responsibilities?

13) I am kept well informed about company plans and

progress.

14) We have good team spirit in our department.

Strongly agree Agree Disagree Strongly Disagree

15) My job-expectations are full filled.

16) Have you ever come across any harassment at AHEL?

17) I maintain a proper balance between work life and personal life?

18) The reporting structure is very easy and clear.

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19) I get support from other departments in AHEL.

20) Overall satisfaction with the Organizational climate as an employee.

Write your suggestions & recommendations to create a healthy work environment.

BIBLIOGRAPHY

WEBSITES

www.google.com

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www.apollohopitals.com

www.wikipedia.com

www.citehr.com

www.attririon.org

BOOKS

Human Resource Management by Gary Dessler and Biju Varkkey (11th Edition)

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