‘EMPLOYEE ATTRITION’

At

Submitted By: Chandan Priyadarshi

“If employees are to be products,their shelf-lives are getting shorter”

Attrition: "A reduction in the number of employees through retirement, resignation, death or because of some other reason it can be personal or organizational“

Defining Attrition rate: “The rate of shrinkage in size or number"

Reasons for Employee Attrition

Organizational mattersWorking environmentJob mattersSalary and other benefitsPoachingEmployee’s advocate Performance reviewPersonal reasons

Common methodology in calculating Attrition Rate

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)

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

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

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

Costs of TurnoverAdministration & Sourcing costs

Process Administration Resignation Administration Recruitment Administration

Sourcing Costs: Agency expenses Advertising costs

Interview Costs: Interview Testing Travel

Cost of New Hire

Induction Administration Induction Fixed Costs Induction Training Relocation Expenses

Lost productivity

Excluded costs Employee Demoralization Impaired Quality of Service Turnover reason & cost impact

Dysfunctional and avoidable turnover

Handling attrition

Innovative HR practices :Providing stimulating work environmentFree transport and free foodGood rewards and recognition programsRecreation clubs, Canteens, Entertain programs , fun activities

within the work areaGood pay and benefitsOther practices include

- Promotions and salary increase on a regular basis- Better learning opportunities, Encourage enroll for distance learning programs- Regular holiday packages, gifts, outings etc

How to save high attrition rates?

How much would you invest to keep your employees focused and happy? 

People are not easily replacedDrivers of Turnover

Drivers of TurnoverResearch shows the reasons for employee departures are (in descending order)

1.Employee/manager relationship2.Inability to use core skills3.Not able to impact the organization's goals, mission4.Frequent reorganizations; lack of control over career5.Inability to grow and develop6.Employee/organization values misalignment7.Lack of resources to do the job8.Unclear expectations9.Lack of flexibility; no ‘Work life balance'10.Salary/benefits

How to curb attrition?Money is not everythingVision and objectivesTreat employees like CustomersFiringConsider feedbackSpend Time Developing and Benchmarking IncentivesSubsidize Education and CertificationChange LocationsRotate EmployeesCombat Poaching by Encouraging ReferralsSpend More Time RecruitingAre Your Employees Satisfied? – RETENTION!!!

Consequences of Attrition

•The Brighter Side of Attrition

Commonly Used Techniques in the Industry

SurveysExit Interviews

Research Methodology

Objective:To study ‘Employee Attrition’ at Mahindra Finance

Scope:To study attrition rate in the financial year 2009-10By collecting, studying and analyzing the data from the

Exit Interview Form

Research Method used:Exit Interview method

Mahindra & Mahindra

Mr. Keshubh MahindraChairman

Mr. Anand MahindraVice-Chairman

Mahindra & Mahindra in various sectors

AutomotiveFarm-equipmentFinancial servicesSys-techAfter-marketInformation TechnologyInfrastructure developmentTrade, retail & logistic

Strength

In depth knowledge of the rural and semi-urban market

The relationship with Mahindra and Mahindra

The branch networkThe association with dealersThe client baseThe ability to borrow at cheaper

rates

Loans Provided

Utility vehicle loansTractor loans Car loansTwo-wheeler loansRefinanceCommercial vehicle loanInvestment advisory services- Mutual funds distributionPersonal loans

Levels at Mahindra FinanceExisting Grades

Revised Grades Bands Revised Designation

L1 L1-SBStrategic Band

Executive Vice President

L2L2-SB Sr. Vice President

L2-EBExecutive Band

Vice President

L3L3-EB Senior General Manager

L3-DH

Departmental Head

General Manager/Head

L4 L4-DH Dy General Manager

L5L5-DH Dy General Manager

L5-MB

Managerial Band

Senior Manager

L6 L6-MB Manager

L7L7-MB Manager

L7-OB

Operational Bands

Dy Manager

L8 L8-OB Asst Manager/Secretary

L9 L9-OB Executive/Secretary

L10 L10-OB Officer/Secretary

Competitor: Shriram Transport Finance Company Limited (STFC)

Area of operation - All IndiaBranch Offices - 482Employees - 12196Customers - 1.4 millionAgency Force- 15,000 plus Resident Representatives -1300Funds Managed (as at 31st March 09) - Rs.23281.11 crores ($4.95

billion)Net worth (as at 31st March 09) - Rs.2316.61 crores ($492 million)

Main ProductsCommercial Vehicle

FinancePassenger Commercial

Vehicle FinanceMulti Utility Vehicle

FinanceThree wheeler FinanceTractor FinanceConstruction Equipment

Finance

Competitor: Shriram Transport Finance Company Limited (STFC)

Other ProductsTyre LoanEngine Replacement LoanWorking Capital LoanCo-Branded Credit CardFreight bill discounting 

Employee Attrition at Mahindra Finance

Employee Attrition at Mahindra Finance in the previous financial year 2009-10

Employee Attrition at Mahindra Finance in the previous financial year 2009-10

Employee Attrition at Mahindra Finance in the previous financial year 2009-10

Employee Attrition at Mahindra Finance in the previous financial year 2009-10

Employee Attrition at Mahindra Finance in the previous financial year 2009-10

Employee Attrition at Mahindra Finance in the previous financial year 2009-10

Employee Attrition at Mahindra Finance in the previous financial year 2009-10

Employee Attrition at Mahindra Finance in the previous financial year 2009-10

Employee Attrition at Mahindra Finance in the previous financial year 2009-10

Employee Attrition at Mahindra Finance in the previous financial year 2009-10

Employee Attrition at Mahindra Finance in the previous financial year 2009-10

Employee Attrition at Mahindra Finance in the previous financial year 2009-10

Employee Attrition at Mahindra Finance in the previous financial year 2009-10

Employee Attrition at Mahindra Finance in the previous financial year

2009-10

For Better Prospects 398Personal 280Non Performance 180Terminated 92Integrity 61Not Reporting 55Transfer 39Health Issue 33Work Pressure 28Higher Studies 20Family Issue 18RBMI 17Eligibility Criteria 13Revoked 10Job Profile 9Compensation 5 Death Case 4Work Culture 4Own Business 3DRONA Failed 2Appraisal 1 Business Closed 1Retained 1

Employee Retention

Awareness of existing opportunitiesInternal Job PostingCareer counselingPerformance AppraisalsTraining Need AnalysisCareer enhancement programs