attrition

“A STUDY OF ATTRITION AS A CHALLENGE AND TRENDS IN IT/ITes SECTOR”

INDEX

S.NO CONTENTChapter 1 INTRODUCTION

Definition

What is attrition analysis

Kind of Challenges Faced By Orgnisation

a model of turnover process

top 3 reasons why talent say I quit

reasons for employee attrition

ten reasons why attrition arises

cost of attrition

factors affecting attrition

attrition rate

how to manage attrition

employees quit bosses and not organizations

inadequate career opportunities

how to improve retention

Chapter 2 COMPANY PROFILE

Chapter 3 OBJECTIVE OF THE STUDY

Chapter 4 INDIAN SCENARIO

Chapter 5 WHERE IS ATTRITION OCCURING

Chapter 6 ANALYSIS

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Chapter 7 FINDING AND CONCLUSIONS

Chapter 8 SUGGESTIONS AND RECOMENDATIONS

Chapter 9 BIBLIOGRAPHY

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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

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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 reaction—a 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 ‘disclose’

their employee turnover.

:: DEFINATION :::: DEFINATION ::

A reduction in the number of employees through retirement,

resignation or death.

A reduction or decrease in numbers, size, or strength.

A wearing down or weakening of resistance, especially as a result of

continuous pressure or harassment.

Attrition is also called Total Turnover Or Wastage Rate.Total Turnover Or Wastage Rate.

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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.

WHAT IS WHAT IS ATTRITION ANALYSISATTRITION ANALYSIS ??

Attrition analysis is a study in which an analysis gives the data on

what is the current attrition trend in the company. Its an analysis

done by taking time, manpower strength & no. of people resigned

into consideration to derive the final outcome.

i.e., Attrition % = (No. of separations/Total employees) *100

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:: VOLONTARY VS. INVOLUNTARY

TURNOVER ::

Instances of voluntary turnover, initiated at the choice of the employee,

and involuntary instances where the employee has no choice in their

termination ( such as long term sickness, death, moving overseas, or

employer-initiated termination).

Typically, The Characteristics Of Employees:

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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.

:: KIND OF CHALLENGES FACED BY ORGNISATION & PARADIGM SHIFT ::

THE INTERNAL CHALLENGE: Who is going to do the work ?

What knowledge are we about to lose ?

What skills will we lose ?

What traditions will change? Is this is good ?

THE EXTERNAL CHALLENGE: The market place for good talent will be competitive.

The good people will be able to pick and choose their

working environment.

How do we create an organization in where people want to

stick around.

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:: A MODEL OF THE TURNOVER PROCESS :: :: A MODEL OF THE TURNOVER PROCESS ::

:: TOP 3 REASONS WHY TALENT SAYS I:: TOP 3 REASONS WHY TALENT SAYS I QUIT ::QUIT ::

“I don’t think my Boss “They are offering me “I don’t know where I m know how to similar job wid handed in this place” handle people” good bugs”

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Causes of job dissatisfaction Job dissatisfaction

Thinking about leaving

Looking for alternative

Intension to quit

Actual turnover

Compare alternative


:: REASON FOR EMPLOYEE ATTRITION ::

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.

1) EMPLOYEE AS A REASON FOR ATTRITION:

Only 8% HR professionals felt that employees leave organizations on

their own. Except in a few cases such as personal reasons, family issues,

location preference, company brand and peer relationships, employees

are not self-motivated to leave the company they are working in.

Nevertheless it is important to find out common causes for employee

initiated exits where supervisors and/or Job Profile / compensation are

not the cause.

HR Heads are worried about employees leaving their organizations. Not

only is it costly to lose trained employees but their replacements are not

easy to come by. Hence the HR strives hard to keep attrition at the

minimum.

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Reason for exit % of respondents

Employee 08.03%

Supervisor or line manager 38.15%

Compensation & Job Profile 53.82%

2) SUPERVISOR AS A REASON FOR ATTRITION:

A large majority of HR professionals polled that immediate managers are

a bigger reason for attrition. It confirms Wayne Hochwarter [an associate

professor of management in the College of Business at Florida State

University] theory that "Employees don't leave their job or company,

they leave their manager".

Meeting employees' expectations is a difficult task, and most managers

cannot do it effectively and consistently.'Satisfying employee needs' often

gets lower priority in a manager's quadrant of activities. Further

managers do not have appropriate tools to manage employee related

tasks and this leads to further dissatisfaction.

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3) COMPENSATION OR JOB PROFILE AS A REASON

FOR ATTRITION:

HR Managers voted unanimously that 'Compensation and Job Profile'

are the primary cause of attrition.

With a war for talent, disparity in the compensation packages is bound to

occur and a mis-matched job profile increases the likelihood of an exit.

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.

TEN REASONS WHY ATTRITION ARISES

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INADEQUATE COMPENSATION:

Inadequate compensation is by far the number one reason that

dissatisfied employees want to leave their job. It has been proven time

and again that fair pay practices benefit not only the employee, but

also the employer (by reducing unwanted and unanticipated turnover

costs). Employees who are paid competitively, relative to their specific

market, are generally much happier.

INADEQUATE OPPORTUNITIES FOR CAREER ADVANCEMENT:

Opportunity for career advancement is a major factor in retaining

employees and keeping them happy. Dissatisfied employees cited

inadequate opportunities for career advancement as the reason they want

to quit. Empty promises by upper management, such as promotions that

don't pan out, have led many employees to give up on moving up the

corporate ladder at their particular company.

INSUFFICIENT RECOGNITION OR APPRECIATION

"There is no recognition of my creative talent, training, or skills." The

three major portions of an employee's total rewards package are

compensation, benefits, and the work experience. The work experience

includes things like company culture, dress code, and how employees are

recognized and appreciated for individual contributions and

accomplishments. Dissatisfied employees are disgruntled because of

insufficient recognition or appreciation shows the importance of elements

of the work experience, such as employee recognition programs. This

proves that rewarding top performers with cash or gift certificates, or

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even just a pat on the back, goes a long way toward improving employee

retention rates.

BOREDOM

"My job duties have gone from being challenging to boring."

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 BENEFITS

"The insurance premiums I pay cut deep into my paycheck."

In 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.

INADEQUATE OPPORTUNITIES FOR PROFESSIONAL

DEVELOPMENT

"I'm probably too experienced and educated for this organization."

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

professional growth, opportunity for professional development proves

to be an important factor in retaining and satisfying employees.

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INSUFFICIENT JOB SECURITY

Insufficient job security is a result of a variety of different factors,

including outsourcing, industry decline, lack of profits, competitive

threats, and rumors that the company may be sold. Many

employees are searching for new jobs in response to the fact, or

rumor, that their company or job is going under. Many of the

11.8% of respondents who cited insufficient job security as their top

reason for leaving lack confidence in upper management's ability to

save the company.

UNDESIRABLE IMPACT ON HEALTH OR STRESS LEVEL

"This is bad for my health- my knees are hurting due to 12 hour shifts."

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.

NO INTERNAL NETWORKING OF EMPLOYEES

Internal networking of employees must be encouraged to create team spirit across the organisation. Lack of this kind of approach leads to attrition.

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:: FACTORS TO CONSIDER IN THE COST OF

ATTRITION ::

What You Want To Identify Are Your Organization's Costs For:

New employee recruitment, especially for recruiting the kind of diverse

staff a great organization wants?

Management time for trips to job fairs & colleges, screening applications

time, interviewing, meetings to make decisions?

Newspaper, journal, Internet and other ads

Technology specialist time for placing recruitment and job info on the

organization web site

Brochure and flyer printing, folding, addressing, and mailing

Personnel staff time processing applications, answering phones, dealing

with certifications, and other inquiries, etc.

New employee initial orientation

New employee training during the first year or two? (both that just for

new employees and all other organization training)

Reduced results when an employee leaves with what they have learned

from trial and error, and a different new employee is hired without that

hard won experience and starts over at the beginning again.

Loss of work flow continuity when employees leave or are not rehired

because they are not as successful as required?

Management time spent orienting, evaluating, coaching, developing, and

supporting new employees who are not retained?

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::FACTORS AFFECTING ATTRITION::

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.

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.

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Hence it is important to understand and manage attrition. There can be

various reasons for people leaving their current jobs.

1. AMBITIONS OR CAREER ASPIRATIONS : It is but natural in a

growing society and growing economy that employees at all levels aspire

to build their career. There are economic, professional, family aspirations

and all kinds of aspirations and ambitions that affect a persons desire to

move. It is rare not to have such career aspirations.

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

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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.

3. PARENTAL AND FAMILY MOBILITY ; Sometimes the desire to be

with the closed ones also pushes the person to move. Although we have

largely moved away from the joint family concept, there are still strong

affiliations and affections. Need for being close with the family, spouse,

children, parents etc. at different stages of ones life to fulfill different

types of affiliation needs prompt a few people to leave their jobs and

move from one city to another.

4. PERSONALITY FACTORS: Some people have a high need for

variety. They get bored and fatigued easily. They need to change their job

or what they are doing at periodic intervals. Otherwise they are restless

and create morale problems with others working with them. They waste

others time discussing organizational politics and polluting the

atmosphere. They are highly achievement driven and want to achieve new

heights in the shortest time. They have either been socialized so or fulfill

their own power or other motives. Some may have a different motivation

or value profile which may not be matched by the current job or the

company and hence the decision to leave.

5. JOB RELATED FACTORS : The job related factors that cause the

decision to leave are many these include the following:

a) Inability to use ones’ competencies.

b) Lack of challenge.

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c) Boss and his styles.

d) Lack of scope for growth in terms of position’ salary, status and

other factors.

e) Role clarity.

f) Job Stress.

g) Lack of independence or freedom and autonomy.

h) Lack of learning opportunities.

6. ECONOMIC FACTORS : This deal with the aspirations in relation to

salary and perks, housing, quality of living, need for savings etc. In

addition to these there could be many other factors that affect decisions:

a) Mobility of partner

b) Fatigue

c) Family reasons like having to look after old parents.

:: ATTRITION RATE ::

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DEFINITION: The rate of shrinkage in size or number of employees is

known as Attrition rate. It is usually expressed in percentage.

An attrition rate, also known as a churn rate, can be a measure of two

things. It can be a measure of how many customers leave over a certain

period of time or how many employees leave over a certain period of

time. An attrition rate can also be a combination of these two factors.

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.

HOW TO CALCULATE ATTRITION RATE?

“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. After this, annual attrition figures should be measured and

accounted for. This is the optimum within the services industry as

companies tend to have different challenges at different stages of their

business lifecycle; also, maturity achieves stability around a company’s

10th anniversary.”

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Number of employee separations-involuntary separations X 100-------------------------------------------------------------------------------------

*Average employee count(*Avg. employee count = January month strength + December month strength

Total Terminations in a month-------------------------------------------------------------------------------------

(Total Head Count at the beginning of the month) + (Total New Hires)

Total No.of employee left X 100-------------------------------------------Total No .Of employees present


WHAT IS THE HR ATTRITION RATE FORMULA?

The Most Commonly Used Formulae Are :

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Total Number of Resigns per month (Whether voluntary or forced) X 100-----------------------------------------------------------------------------------------

(Total Number of employees at the beginning of the month + total number of new joinees - total number of resignations)

((no. Of attritions x 100) / (Actual Employees + New Joined)) /100.


EXAMPLE:-

Actual Employees=150

No. Of new Joined=25

Attritions=20

Current Headcount=155

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.

Attrition = (No. of employees who left in the year / average employees in the year) x 100

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::CONSEQUENCES OF ATTRITION::

The labour turnover can have a number of serious consequences, both negative and positive.

On The Negative Side, Turnover Can Have The Following Consequences:

significant replacement costs.

significant operational disruption.

loss of key skills, knowledge and experience.

employee dissatisfaction and loss of morale.

further turnover may be stimulated by an increase in the workload, or pressure on, those who remain.

a service contractor’s ability to take on new work may be impeded.

productivity and creativity may diminish.

On The Positive Side, However, Turnover May Have The Following Consequences:

vacant posts provide opportunities for re-structuring sections or

departments.

vacancies in key posts will increase internal promotion prospects.

promotion of innovation, flexibility.

reduction of paybill costs – initial employment cost of replacement staff

may be lower.

displacement of poor performers.

adjustment of staffing mix to provide greater flexibility.

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::DIAGONISING ATTRITION::

Commonly Used Techniques In The Industry:

SURVEY : Surveys are a reasonable way of obtaining relevant

information, though response rates are often disappointing.

Questionnaires need to be designed carefully to be effective. They

should be easy to use, anonymous and fairly brief. Questions can be

open or closed, multiple choice answers, ranking of items or

checklist format.

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.

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HOW TO MANAGE ATTRITION?

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.

1. Compensation And Management: Compensation and Management

must be managed based on the KSAs (Knowledge, Skills, Attitude and

Experience) of the employees.

2. Create Opportunities For Employees: The Company has to create

growth opportunities for employees to enhance their learning experience

and earning abilities.

3. Engaging Employees: Employees must be engaged on continuous basis

and they should not get bored with their work, which can be managed

through internal transfers and training from time to time.

4. Review Recruiting Practices: Selection and Recruitment policies must

be reviewed to suit the growing needs of the organization.

5. Technology Opportunities: Leveraging technology to manage the

organization and enhancing the technical expertise of the employees will

help organization grow without much problem of attrition.

6. Career Path For Employees: Employee career path must be declared

during the recruitment process and should be explained to the recruited

people.

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7. Feel Valued In Organization: Non-financial rewards, a pat on the back

in time and celebrating small achievements with great fan-fare will help

employees feel valued in the organization.

8. Contact With Senior Management: Senior Management should

address employees periodically and should make them feel like a family.

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.

10. Attendance : Policies with regard to attendance must be creative and

flexible.

11. Educate Employees On Their Impact: Educate employees regularly

on what kind of impact they are creating on organization through their

contribution.

12. Flexibility: Immediate bosses, middle level managers must be flexible

and act as Chief Happiness Officers to avoid triggers of attrition.

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

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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.

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.

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:: EMPLOYEES QUIT BOSSES AND NOT:: EMPLOYEES QUIT BOSSES AND NOTORGANISATIONS ::ORGANISATIONS ::

Key management positions being given to younger people has given

rise to inexperienced people managers.

Don’t look at attrition merely as a statistics. Read the story behind the

numbers.

Identify the underlying issues contributing to attrition.

Attrition is not only an HR issue.. Sensitize line managers towards

people issues.

Equip front line and first time managers to manage talent related

issues.

“ There is a

strong correlation

between employee

attrition and

front line

management. A

good manager

can reduce

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attrition within his/her team to near zero-level if he/she keeps sight of

the touch point.”

::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

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.

2. ALLOW EMPLOYEES THE ROOM TO DEVELOP THEIR

SKILL: Many employees find themselves trapped in a narrow job

function so mission-critical that the organisation cannot afford to move

them. Frustrated employees, unable to satisfy their need for growth,

resign, leaving holes that disrupt the company’s workflow in the short

term. The company also loses strong performers who could have filled

other, more important, roles over the long term.

3. GIVE EMPLOYEES A CLEAR IDEA OF THE LONG TERM

GOALS OF THE COMPANY: Three quarters of unhappy employees do

not believe that their company knows where it is going. Companies

should endeavour to change their perceptions by communicating

effectively to employees the direction it wants to take. This should be

followed up with behaviour that is consistent with what they have told

employees..

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4. MEASURE SOFT SKILL: Many companies say they value people

and train their management team to cope with people issues. Yet these

same managers are rewarded based on their technical skills and financial

results. Too often, people skills are not rewarded and no measure exists to

evaluate them. Employees get the message that, “people skills don’t

matter” and so neither do people.

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.

7. WEED OUT POOR PERFORMERS IN NON-MANAGEMENT

RANKS: Managers often under-estimate how strongly employees resent

the presence of underperformers within their work group. The

productive employee often has to take on more work to compensate for

the poor performance of others, and they can feel that management is

either turning a blind eye to unjust practices, or does not have sufficient

interest in what goes on “below decks” to notice any disparity in working

practices amongst employees. When the slackers are weeded out, both

morale and retention improve.

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“INADEQUATE CAREER OPPORTUNITIES“INADEQUATE CAREER OPPORTUNITIES CAN DRIVE YOUR EMPLOYEES OUT OFCAN DRIVE YOUR EMPLOYEES OUT OF

THE DOOR”THE DOOR”

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 “Solid Citizens” 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.

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HOW TO MINIMISE ATTRITION

Segment attrition data to understand who is it that you are losing

and target accordingly.

Spend time during recruitment to explain your culture and

expectations.

Build a value proposition in terms of learning and career growth.

Make your line managers equally responsible for attrition.

Ensure that when people leave the organisation, their knowledge

doesn't leave with them.

ARRESTING ATTRITION

Train your recruiters to find the perfect match between company's

requirement and employee aspirations keeping in mind the culture

fit of the employee.

Look at and communicate career development initiatives of the

employee from the day he is taken onboard.

Ensure a work environment for the employees which is truly

appreciated by them.

Focus attention on equipping the front line managers with

necessary skills so that they are able to manage people issues

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skillfully. Drive accountability for retention out to front-line

managers.

Look at an aggregate industry wide solution in conjunction with

individual strategies.

CHAPTER. 2

COMPANY PROFILE

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GlobalLogic is the leader in software R&D services, GlobalLogic Inc.

partners with technology and software-enabled businesses to deliver

quality products to market rapidly and cost-effectively. GlobalLogic has

created a network of global innovation hubs in the US, India, Ukraine,

China & Argentina that involve 3,000 of the brightest & most innovative

software minds. Connecting GlobalLogic’s hubs & clients is an award-

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winning platform (GlobalLogic Velocity™) that cultivates rapid Agile

collaboration.

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.

GlobalLogic has been ranked an Inc. 500 company and was recognized as

a top global employer by IDC and Hewitt Associates. Globallogic Is

Headquartered In Vienna, Virginia And Is Backed By Sequoia Capital And

New Enterprise Associates.

MISSIONS AND VALUES:

GlobalLogic’s mission is to partner with the world’s emerging and

established software leaders to help them bring great products to market

in less time and at less cost. To do this, GlobalLogic is committed to

providing:

World-class software engineers who partner with and extend the

capabilities of our clients’ existing engineering teams to take on new

areas of development

Rigorous product engineering method and platform based on

distributed Agile software development and open source tools to

ensures complete visibility and accountability at each stage during

the product development lifecycle

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http://www.nea.com/Home/

http://www.sequoiacap.com/

http://globallogic.com/focusareas/on-demand.shtml

http://globallogic.com/focusareas/on-demand.shtml

http://globallogic.com/focusareas/open_source.shtml

http://globallogic.com/focusareas/business_intelligence.shtml

http://globallogic.com/focusareas/cloud-computing-enablement.shtml

http://globallogic.com/focusareas/cloud-computing-enablement.shtml

http://globallogic.com/indus-diff/velocity_overview.shtml


Structured partnerships that fully incorporate client objectives

while guaranteeing quality, cost savings and time-to-market

satisfaction.

Furthermore, GlobalLogic adheres to a strict business philosophy based

on the following values:

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

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true partnership assumes an intimate understanding and alignment of

each other’s goals and requires each party to actively care for and trust

the other. We always strive to treat our clients, investors and colleagues

as partners.

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.

GLOBALLOGIC SERVICES :

GlobalLogic has created solutions designed to meet the growth stage-

specific needs of our clients, enabling them to build on their own unique

strengths while leveraging GlobalLogic’s experienced product engineers,

delivery innovation, global engineering centres and platform for

distributed software product development.

GlobalLogic Product Engineering Lab SM (PEL) - For technology

companies that lack a product engineering team or want to

establish a global team to support a single product or entire

product line, GlobalLogic can rapidly set up an offshore lab in

India, China or Eastern Europe.

GlobalLogic Product Engineering Team SM (PET) - GlobalLogic

PET enables clients to rapidly extend product development and

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support resources to a global level while building teams that

specialize in product verticals including Telecom, Healthcare,

Consumer and Enterprise.

GlobalLogic Product Engineering Project SM (PEP) - For

technology companies that already have a local software

development and support team, GlobalLogic enables clients to

quickly access and apply product engineers on a project basis.

GlobalLogic PEP enables clients to integrate talented engineers into

discrete projects that are “time-boxed”, and require product

vertical and technology expertise in Telecom, Healthcare,

Consumer and Enterprise, as well as J2EE, RoR, .NET or open

source.

GlobalLogic Professional Services SM (PS) - GlobalLogic’s

Professional Services offering provides clients with on-site or

offshore product engineer’s on-demand. Our award-winning HR

team works with our clients to identify the exact skill-sets needed,

sourcing candidates from GlobalLogic’s product engineering

centers in India, Ukraine, China and the US.

P roduct Vertical & Technology Expertise - Over the years,

GlobalLogic has gained technical expertise and conceived of

methodologies in emerging technologies and domains. We have

implemented excellence centers that consistently provide innovative

solutions to our client partners.

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CHAPTER. 3

OBJECTIVE OF THE STUDY

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To fulfill the future needs and aspirations of employees in the

organization.

To verify the satisfaction level of employee in the organization.

To ensure co-ordination between the employees and the

organization.

To protect the interest of the employees in the organization.

To bring out proper working between employees and organization

to improve the company’s image.

To make employees proud of their own company.

To take efforts and measures to improve the situation and

conditions of employment.

To understand the rules and policies followed by the organization.

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CHAPTER. 4

INDIAN SCENARIO

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::EMPLOYEE ATTRITION IN INDIA::

Staff attrition (or turnover) represents significant costs to technology and

business process outsourcing (BPO) companies. High attrition rates drive

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.

:: ATTRITION RATES & COST IN INDIA ::

In India, the average annual attrition rate in the business process

outsourcing (BPO) sector hit a high of close to 50% a few years ago.

Better attrition management and the 2008-2009 global economic slow

down have helped reduce the figure to 24-30%, but this still has a

significant impact on costs and quality. Furthermore, attrition rates in

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http://www.sourcingline.com/resources/salary-costs-in-india/


India’s business process outsourcing (BPO) industry are about 8 percent

higher than the national average.

Some companies believe that the attrition rates in India—and the costs

associated with them—are 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 ‘ticket’ (the cost of

processing a query) was double in India “due 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 attrition—

people do not stay long enough to be taught or to learn the job.

India’s government is acutely aware of the attrition issue and has

introduced several initiatives to create BPO jobs in rural areas of the

country.

:: MANAGING ATTRITION IN INDIA ::

To ensure that attrition rates are kept to a minimum, businesses need to

redesign their reward and recognition packages to help the industry hold

onto staff and to find the right kind of people who can keep pace with the

unique work patterns.

According to Oscar De Mello, country head of Hay Group’s Reward

Information Services in India, adjusting pay might not automatically lead

to higher operating costs for BPO companies. By creatively designing

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their total reward package towards more short-term incentives and

benefits, and linking the package to performance, companies can ensure

that they get higher productivity without hefty increases in salary costs

and minimize attrition costs and issues at the same time. Hay’s Group

recommends providing a better balance of short- and long-term benefits

such as performance bonuses, employee stock option plans and retention

bonuses; effectively communicating details of compensation plans to

encourage employee buy-in; and promoting non-financial benefits such as

career development, job rotation and transparent performance

management systems.

First, if you are working on a longer-term project, understand your

partner’s attrition rates and their management practices. Some firms

manage attrition well, while others simply try to hide it. Second, review

your team structure and ensure that there is sufficient information

sharing and collaboration so that the loss of any one person does not set

you back. Finally, get to know your key team members. Not only will this

help reduce attrition, but help you minimize the down side if you do lose a

key team member

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CHAPTER. 5

WHERE IS ATTRITION OCCURING?

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Is it more in males than females? What levels? Is there anything in

common among those who leave? Is it related to some disciplines or

people from a particular region or linguistic group? Is it more among

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.

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In one study by the author of an engineering services company the

attrition was found to be more among certain section of engineers who

faced the stress due to changing technologies and requirements of the

company. Until the study was conducted it was assumed that people left

because they did not like the style of their manager. The survey revealed

that on the contrary employees stayed longer because of the task centered

but developmental style of their manager.

In another study of a software services company the root cause for

attrition was found to be the differential wage structure of the permanent

employees as compared to the temporary employees. Temporary

employees were paid on an hourly rate at double the amount of hourly

rate calculated for permanent employees by dividing the cost to the

company by 2000 hours. However they were not properly informed of

the amounts spent by the company through various benefits and the

outsourcing fee that was paid to the agency. Later the company had to

undertake a program to change the CTC structure and also to educate

the permanent employees.

Once the source/cause of attrition is identified, solving the problem

becomes relatively easy. At least the organization can then determine if

any internal interventions will help reduce attrition.

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CHAPTER. 6

ANALYSIS

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ATTRITION RATE

13.4 11.8 12.1 13.9

23

43

15.8 12.3

15.8 16.821.4

42

0

10

20

30

40

50

INFOSYS TCS WIPRO HCL GENPACT WNSCOMPANY NAME

A T T RI

TI O N

R A T E ( % )

Q4(FY10)Q1(FY11)


:: AN OVERVIEW OF ATTRITION RATE IN:: AN OVERVIEW OF ATTRITION RATE IN

IT & ITeS SECTOR IN INDIA ::IT & ITeS SECTOR IN INDIA ::

IT COMPANIES:

Infosys

TCS

Wipro

HCL

ITeS COMPANIES:

Genpact

WNS

According to the above graph, we observed that the attrition rate in

IT Companies is increasing & so of ITeS is decreasing.

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CHAPTER. 7

FINDINGS & CONCLUSIONS

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The recruitment and selection through walk in interview only.

They try all possible ways to retain their employee but if not

then……

Retention polices followed provides the employee both monetary

and non monetary benefits.

Various other workshops conducted which helps the employee to

be motivated and keep working.

Other welfare program are also conducted for them.

The exit interviews were conducted as and when required by the

company.

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CHAPTER. 8

SUGGESTIONS AND RECOMMENDATIONS

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Companies can look into various options like good rewards,

bonding programme, flexible working hours and stronger career

path.

Management also needs to consider other aspects like secure

career, benefits, perks and communication.

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.

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CHAPTER. 9

BIBLIOGRAPHY

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Nasscom Strategic Review 2010

Cite Hr .Com

Hewitt

b p o india .org

contentwriter.in

NAUKRIHUB

Economictimes.Indiatimes.Com

www.Chrmglobal.Com

Www.Bpoindia.Org

Www.Chrmglobal.Com

Www.Siliconindia.Com

Www.Livemint.Com

Www.Nasscom.In

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http://www.nasscom.in/

http://www.livemint.com/

http://www.siliconindia.com/

http://www.chrmglobal.com/

http://www.bpoindia.org/

http://www.Chrmglobal.Com/


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