Ttl Khushboo Shah 2 (1)

7/27/2019 Ttl Khushboo Shah 2 (1)

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SUMMER TRAINING PROJECT REPORT

ON

EMPLOYEES ATTRITION AND RETENTION IN

TATA DOCOMO

UNDER THE GUIDANCE OF: UNDER THE SUPERVISIONOF:

Mr. RAJKUMAR SINGH Miss SHRUTI MEHTA

(HR Assistant manager)TTL,LKO.

SUBMITTED BY:

KHUSHBOO SHAH

ZAINAB FATIMA

MBA-HR/IR (2ND

Sem) 2012-14

LUCKNOW UNIVERSITY

INSTITUTE OF MANAGEMENT SCIENCES (IMS)


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PREFACE

MBA program is one of the most professional courses in the field of management.

This course includes both theory and application content of curriculum.

Project work is an integral part of MBA program at INSTITUTE OF

MANAGEMENT SCIENCES each student is required to do project and has to

prepare and submit report on the work conduct by the student.

This report is the continuation of above tradition. The topic of the project

work was EMPLOYEE ATTRITION AND RETENTION IN TATA

DOCOMO.


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ACKNOWLEDGEMENT

To complete the project is not a easy thing, you have to take the help of others. I

would l ike to add a few heartfelt words for the people who are the part of this

project in numerous ways people who gave unending support r ight f rom the

stage the project data was conceived

My special thanks to MR. RAJKUMAR SINGH (HEAD OF THE

DEPARTMENT) that provides gentle encouragement and constant support.

I am extremely thankful to MS SHRUTI MEHTA(H r assistant manager

at TTL ) for providing me with sense of dir ection in bui lding thi s methodical

approach in this report, continuous source of inspiration throughout the project.

I sincerely thank them for the constant cooperation, guidance and incessant

inspiration and their guidance without which this project would have been l ike a

rudderless boat. Well to put in a nutshell, wi thout their guidance and support

this project would have been futi le.

Zainab Fatima

Khushboo Shah

M.B.A II-Sem


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DECLARATION

I, zainab fatima, student of M.B.A at INSTITUTE OF MANAGEMENT SCIENCES,

LUCKNOW, hereby declare that the project report on EMPLOYEES ATTRITION AND

RETENTION AT TATA DOCOMO at Lucknow is an original and authenticated work done

by me.

I further declare that it has not been submitted elsewhere by any other person in any of the

institutes for the award or any degree or diploma.

ZAINAB FATIMA

Date :3/7/13


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INDEX

S.No TOPIC PAGE NO.

1. Preface

2. Acknowledgement

3. Companys profile

Tata Teleservices Ltd

4. Employee Attrition

5. Employee Retention

6. Attrition and retention in different sectors

7. Employee attrition and retention in Tata Docomo

8. Conclusion

9. Bibliography

10.


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THE INDIAN TELECOM SECTORIndia is the fourth largest telecom market in Asia after China, Japan and South Korea. The Indian

telecom network is the eighth largest in the world and the second largest among emerging

economies. At current levels, telecom intensiveness of Indian economy measured as the ratio of

telecom revenues to GDP is 2.1 percent as compared with over 2.8 percent in developed

economies.

Indian telecom sector has undergone a major process of transformation through significant policy

reforms. The reforms began in 1980s with telecom equipment manufacturing being opened for

private sector and were later followed by National Telecom Policy (NTP) in 1994 and

NTP'1999. Historically, the telecom network in India was owned and managed by the

Government considering it to be a natural monopoly and strategic service, best under state's

control. However, in 1990's, examples of telecom revolution in many other countries, which

resulted in better quality of service and lower tariffs, led Indian policy makers to initiate a

change process finally resulting in opening up of telecom services sector for the private sector.

Policy reforms can be broadly classified in three distinct phases" The Decade of 1980's saw

private sector being allowed in telecommunications equipment manufacturing. Mahanagar

Telephone Nigam Limited (MTNL) and Videsh Sanchar Nigam Limited (VSNL) were formed

and a Telecom Commission was set up to give focus to telecommunications policy formation.

" In 1990s, telecommunications sector also benefited from the general opening up of the

economy. NTP 1994 was the first attempt to give a comprehensive roadmap for the Indian

telecommunications sector.

Availability of telephones on demand (targeted by 1997).
http://www.iimahd.ernet.in/ctps/pdf/ntp1994.pdfhttp://www.iimahd.ernet.in/ctps/pdf/ntp1994.pdfhttp://www.iimahd.ernet.in/ctps/pdf/ntp1994.pdfhttp://www.iimahd.ernet.in/ctps/pdf/ntp1994.pdfhttp://www.iimahd.ernet.in/ctps/pdf/NTP1999.pdfhttp://www.iimahd.ernet.in/ctps/pdf/NTP1999.pdfhttp://www.iimahd.ernet.in/ctps/pdf/NTP1999.pdfhttp://www.iimahd.ernet.in/ctps/pdf/ntp1994.pdf


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Universal service covering all villages and one PCO per 500 persons in urban areas at theearliest (targeted to be achieved by 1997).

Telecom services at affordable and reasonable prices. World standard quality of services. NTP 1999 brought in the third generations of reforms in the Indian telecommunications

sector.

1. KEY MARKET PLAYERS1 Tata Teleservices Ltd2 Mahanagar Telephone Nigam Ltd (MTNL)

3 Bharat Sanchar Nigam Ltd (BSNL)

4 Reliance Communications Ltd

5 Bharti Airtel Ltd

6 Vodafone

7 Idea Cellular

8 Spice Communication Private Ltd9 Aircel10 Uninor


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TATA TELESERVICES LIMITEDTata Teleservices Limited spearheads the Tata Groups presence in the telecom sector. The TataGroup includes over 100 companies, over 450,000 employees worldwide and more than 3.8

million shareholders.

Incorporated in 1996, Tata Teleservices Limited was the pioneer of the CDMA 1x technology

platform in India, embarking on a growth path after the acquisition of Hughes Tele.com (India)Ltd [renamed Tata Teleservices (Maharashtra) Limited] by the Tata Group in 2002. Over the last

few years, the company has launched significant services CDMA mobile operations in January

2005 under the brand name Tata Indicom, market-defining wireless mobile broadband services

under the brand name Tata Photon in 2008 and 2G GSM services under the brand name Tata

DOCOMO in 2009.

Tata Teleservices Limited also has a significant presence in the 2G GSM space, through its jointventure with NTT DOCOMO of Japan, and offers differentiated products and services. Tata

DOCOMO was born after Tata Groups strategic alliance with Japanese telecom major NTT

DOCOMO in November 2008. Tata DOCOMO received a pan-India license to operate GSMtelecom services and rolled out GSM services in all the 18 telecom Circles where it received

spectrum from the Government of India in the quick span of just over a year.

One of the key milestones in October 2011 was the brand integration exercise at TTL, which saw

the Companys many brands being consolidated under its single flagship brand, Tata DOCOMO.

This helped TTL leverage the benefits of brand synergies and capitalize on its vast retail and

distribution network, which is the largest amongst all private telecom operators in the country.

Tata DOCOMO marks a significant milestone in the Indian telecom landscape, and has alreadyredefined the very face of telecoms in India, being the first to pioneer the per-second tariff option

part of its Pay for What You Use pricing paradigm.

Tata Teleservices Limited also became the first Indian private telecom operator to launch 3G

services in India under with the launch of services in November 2010 in all nine telecom Circleswhere the company bagged the 3G license. In association with its partner NTT DOCOMO, the c

Company finds itself favorably positioned to leverage this first-mover advantage. With 3G, Tata

DOCOMO is one of the worlds leading mobile operators in Japan, the company is the clear

market leader, used by nearly 55 per cent of the countrys mobile phone users.


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TTL entered into a strategic partnership agreement with Indian retail giant Future Group to offer

mobile telephony services under a new brand name T24, on the GSM platform. Tata Teleservices

also has a strategic tie up with Virgin Mobile that primarily caters to youth segment offering

mobility services on both CDMA and GSM platform.

Tata Teleservices is the undisputed market leader in the fixed wireless telephony market amongstprivate operators. In the wireless mobility space, the company in the past has been rated as the

Least Congested Network in India for eight consecutive quarters by the Telecom Regulatory

Authority of India through independent surveys.

Today, Tata Teleservices, along with Tata Teleservices (Maharashtra) Limited, has a reach inmore than 450,000 towns and villages across the country, with a bouquet of telephony services

encompassing Mobile Services, Wireless Desktop Phones, Public Booth Telephony and Wireline

Services.

In December 2008, Tata Teleservices announced a unique reverse equity swap strategic

agreement between its telecom tower subsidiary, Wireless TT Info-Services Limited, and Quippo

Telecom Infrastructure Limited with the combined entity kicking off operations with 18,000towers, thereby becoming the largest independent entity in this space and with the highest

tenancy ratios in the industry. Today, the combined entity which has been re-christened as VIOM

Networks has a portfolio of nearly 60,000 towers.

1.The company in the recent past has won many awards. TTSL was named The Best EmergingMarkets Carrier by Telecom Asia, and received 8 awards at the World HRD Conference,

including 5th Best Employer in India. The company also received 3 awards at the Telecom

Operator Awards 2010 from Tele.net; Best Company, CEO of the Year and Best Quality of

Service, and Business Standard award for 'Most Innovative Brand of the Year'. Tata DOCOMOwas recently recognized as the best Utility VAS Service Provider and Best Mobile Broadband

Service Provider for the year 2012 by Frost & Sullivan.

Tata DOCOMO is Tata Teleservices Limited's telecom service on the GSM platform-arising out

of the Tata Group's strategic alliance with Japanese telecom major NTT DOCOMO in November2008. Tata Teleservices has received a license to operate GSM telecom services in 19 of India's

22 telecom Circles-and has also been allotted spectrum in 18 telecom circles. Of these, it has

already rolled out services in all the 18 Circles that it received spectrum in from the Government

of India-Tamil Nadu, Kerala, Orissa, Karnataka, Andhra Pradesh, Maharashtra, Mumbai,Madhya Pradesh-Chhattisgarh, Haryana-Punjab, Kolkata, Rest of West Bengal, Jharkhand,

Bihar, UP (East), UP (West), Gujarat, Himachal Pradesh and Rajasthan.

Tata DOCOMO has also become the first Indian private operator to launch 3G services in India,

with its recent launch in all the nine telecom Circles where it bagged the 3G license.

MAIN PRIORITY OF TATA DOCOMO:

TATA DOCOMO has singled out customer satisfaction as its main priority. It has visibly

allocated additional attention on product differentiation and subsequently it has been successful

in giving itself a very energetic and vibrant brand image.


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MISSION OF TATA DOCOMO:

Simplifying and ensuring people lives. Truly loyal customer Customer retention High value customer affection

VISION OF TATA OCOMO:

TATA DOCOMOs vision is to empower every Indian to connect with the world affordably andtrusted service 100 million happy customer by 2013

PRODUCTS AND SERVICES

TATA Teleservices works under 3 brand names i.e

Tata indicom-incorporated in 1996,tata teleservices limited is the pioneer of the CDMA(CODEDIVISION MULTIPLE ACCESS)technology platform in india.

TATA DOCOMO-Is tata teleservices ltd telecom service on the gsm(global system for mobile

communications)platform arising out of the tata groups strategic alliance with the Japanese

telecom majot NTT DOCOMO IN NOV 2008.

VIRGIN MOBILE

TATA WALKY

TATA PHOTON


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SWOT ANALYSIS

STRENGTH

BRAND TATA NO ROAMING CHARGES EXTENSIVE ADVERTISING

NATIONALLY

PAY PER SECOND PLAN(first moveradvantage)

GLOBAL PRESENCE

WEAKNESS

NETWORK IS WEAK SINCE ITSNEW

LACK IN COMPETITION AS MANYOPTIONS ARE THERE.

HAS TO FOLLOW INNOVATIVE ORDIE MANTRA

OPPORTUNITY

INTODUCTION TO MOBILENUMBER PORTABILITY CANENABLE SWITCHING OF

OPERATORS WITH EASE. CUSTOMER SATISFACTION ON

THE BASIS OF OUTPUT

GROWTH IN TEL;ECOM SECTORDUE TO LOW TELEDENSITY AND

INCREASING AFFORDABILITY.

THREATS

ETISALAT, VIDEOCON HADBECAME A BIG THREAT FOR TATADOCOMO.

TECHNOLOGICAL GROWTH ANDADAPTABILITY FOR CHANGES

HAD BECAME A MAJOT THREAT.


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ATTRITION

Employee attrition is a situation faced by an organization or employer when new employeesjoined leaves the organization to join other organization when he gets offers. Generally employee

attrition will be very high when there is a pressing need of employees in a particular industry due

to mass retirements or expansion of organization. Normally company faces higher attrition rate

when there are more employment opportunities in the market by employers. At one point of timesoftware industry has faced high attrition rate by employers due to large openings globally in the

software industry due to the demand for software products by all industries. Employee attrition is

one of the critical problem which is faced by an HR manager during these days. In an idealsituation an employee consider multiple comfort level while working in a office for e.g.

employer's goodwill in the market, remuneration, future growth, working condition, co-workers,

current role's scope in the market & most important future stability with the organization. In a

survey, approximate 70% of the working population in India is not happy at all due to one of theaspect (as mentioned aforesaid) which is not fulfilled while working in a organization which

caused higher attrition rate.

In broad term, attrition is a situation which employer face when employee left the organization

due to job dissatisfaction, new opportunity in the market, retirement & natural cause

(death/illness).

Now a days this is one of the most important question which is asked by higher authority to HR

people."Why our attrition rate is higher than other company". Earlier it wasn't important forthe organization, whether their employees are committed or not, but now the time has been

changed. The company cannot afford to lose its best employee to competitors. Therefore, HR

team conducts EXIT interview when an employee left the job to get the information about one'sdecision to leave an organization. It is a paramount consideration for a HR team to think, why

people are vacating their positions. Still Human Resource team face the challenge due to wronginformation provided during EXIT interview.

Employee attrition refers to the loss of employees through a number of circumstances, such as

resignation and retirement. The cause of attrition may be either voluntary or involuntary, thoughemployer-initiated events such as layoffs are not typically included in the definition. Each

industry has its own standards for acceptable attrition rates, and these rates can also differ

between skilled and unskilled positions. Due to the expenses associated with training new

employees, any type of employee attrition is typically seen to have a monetary cost. It is alsopossible for a company to use employee attrition to its benefit in some circumstances, such as

relying on it to control labor costs without issuing mass layoffs. There are many different ways

for a company to lose employees, most of which are typically taken into account to ensure thatthe organization is able to operate efficiently. Attrition refers to the loss of employees due toreasons other than firing and other employer-initiated events. This means that an employer has

no direct control over how many personnel are lost to employee attrition. Retirement is one

major cause of employee attrition, and since people tend to retire around a specific age this is afactor that can be accounted and planned for. Other causes of employee attrition, such as

personnel who quit due to prolonged illness, dissatisfaction with the company, or other reasons,

can be more difficult to estimate...


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Employee attrition refers to the loss of employees through a number of circumstances, such as

resignation and retirement. The cause of attrition may be either voluntary or involuntary, though

employer-initiated events such as layoffs are not typically included in the definition. Eachindustry has its own standards for acceptable attrition rates, and these rates can also differbetween skilled and unskilled positions. Due to the expenses associated with training new

employees, any type of employee attrition is typically seen to have a monetary cost. It is also

possible for a company to use employee attrition to its benefit in some circumstances, such asrelying on it to control labor costs without issuing mass layoffs.


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There are many different ways for a company to lose employees, most of which are typically

taken into account to ensure that the organization is able to operate efficiently. Attrition refers to

the loss of employees due to reasons other than firing and other employer-initiated events. Thismeans that an employer has no direct control over how many personnel are lost to employee

attrition. Retirement is one major cause of employee attrition, and since people tend to retire

around a specific age this is a factor that can be accounted and planned for. Other causes ofemployee attrition, such as personnel who quit due to prolonged illness, dissatisfaction with thecompany, or other reasons, can be more difficult to estimate.

The percentage of employees that leave a company in a given period of time due to attrition is

sometimes referred to as the churn rate, though that term can also include personnel who are

fired. A high churn rate can adversely affect a company due to the costs of training new workers,

though higher rates are often more acceptable for unskilled laborers than more highly skilled ortrained workers. Churn rate is often lower in industries that employ highly skilled workers, and

companies often use lucrative employment contracts and other tactics to prevent some forms of

attrition.

There are also circumstances where employee attrition can be used to benefit a company. In

some circumstances, it becomes necessary for a company to cut labor costs to remain profitable.One method of dealing with this type of issue is to to lay off a number of workers, though this

can present morale problems for the remaining employees. If the attrition rate is known, then

simply not hiring new employees can present a long term method of dealing with the same

problem. Since some employees will retire or resign over time through attrition, a hiring freezecan eventually result in fewer employees and a similar savings in labor costs.


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BENEFITS OF ATTRITION:-

If all employees stay in the same organization for a very long time, most of them will beat the top of their pay scale which will result in excessive manpower costs.

When certain employees leave, whose continuation of service would have negativelyimpacted productivity and profitability of the company, the company is benefited.

New employees bring new ideas, approaches, abilities & attitudes which can keep theorganization from becoming stagnant.

There are also some people in the organization who have a negative and demoralizinginfluence on the work culture and team spirit. This, in the long-term, is detrimental to

organizational health.

Desirable attrition also includes termination of employees with whom the organizationdoes not want to continue a relationship. It benefits the organization in the followingways:

It removes bottleneck in the progress of the company It creates space for the entry of new talents It assists in evolving high performance teams

There are people who are not able to balance their performance as per expectations, lack

potential for future or need disciplinary action. Furthermore, as the rewards are limited, business

pressures do not allow the management to over-reward the performers, but when undesirable

employees leave the company, the good employees can be given the share that they deserve.

Some companies believe attrition in any form is bad for an organization for it means that awrong choice was made at the beginning while recruiting. Even good attrition indicates loss as

recruitment is a time consuming and costly affair. The only positive point is that the realization

has initiated action that will lead to cutting loss.

Reasons for Leaving

Those days are gone when salary was the sole motivator for an employee to leave anorganization. According to a survey there are three main reasons that are followed by other

common reason:

In equity in compensation. Non payment and irregularities in payment of salaries. Limited career opportunities.


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Lack of career growth. Role stagnation.

KINGFISHERAIRLINES due to non payment of wages for a long period, almost 40% of its

staff quit for other jobs between march 2012 and September 2012. Strength of staff gone down to

3766 employees from 6185 employees in between aforesaid period.Non payment of salaries wasonly reason for quits by Kingfisher airlines staff. Finally kingfisher airlines became king of

attrition.

Common reasons experienced by HR manager are discussed here:

Mismatch of job profile. Job stress and work-life imbalances. Odd working hours/Early morning-night shifts. Job hopping. Lack of authority provided to accomplish ones task. Monotony of job.

Lack of proper facilities provided by employer Lack of proper environment. Poor concern about employees by their employer. Poor promotion policies or lack of promotion for long time.


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The list can be endless but the reason why employees leave the organization is vary according to

the nature of the business. The work should give to them the level of the employees and the

nature of the responsibility he/she can handle. Therefore it's very challenging task for an HRexpert to cope up with this situation and retain talent with an organization.

Reasons for high attrition at BSF & CRPF

Facts

44000 paramilitary personnel have quit the force since 2009. 36,000 of them belonged to CRPF & BSF. 70% rise in CRPF & BSF attrition rate in 2011 over 2012.

Reasons For Quits

Postings at difficult areas. Fighting with dual enemies Maoists and malaria. Long working hours leading to sleep deprivation. Lack of leave availability in time they required. Lack of basic healthcare.


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Poor promotional policies and salary revisions

Adding to the existing reasons for attrition, IIM study found that delay in Promotions is also a

major trigger for quits by the BSF personnel. Normally it takes 24 years of service to get

promotion for next position whereas in the Army it takes 13 years to reach same position whichis major demotivating factor and motivating factor for quits in BSF.

These existing grievance made senior BSF officers to approach Honourable the High Court ofNew Delhi especially regarding delay in promotions.

Facts [+]

In India especially in insurance sector, period between 2002 and 2008 was rapid expansion due

to stepping of many member of players into this insurance sector. this has caused high inflationin employee salaries and also high attrition in insurance sector due to many number of openings

offered by new entrants. In this period due to abundant openings there was an unprecedented war

of talent in the insurance sector to find the right people to join their organization especially forthe key positions.

India. In the first three quarters of the financial year 2011-12, more than 3 lakhs active insurance

agents have quit the profession. Insurance companies such as Life Insurance Corporation of India(LIC), ICICI Prudential and HDFC Life have seen mass exodus owing to lesser incentive to

agents when compare with other similar sophisticated industries.

Associated cost with high Attrition:

Talent loss:

It includes the cost of lost knowledge, skills and contacts that the person who is leaving istaking with them out of your door.

Recruitment cost:

The cost of advertisements; agency costs; employee referral costs; internet posting costs. Calculate the cost of the manager who has to understand what work remains, and how to

cover that work until a replacement is found.

cost of the various candidate pre-employment tests to help assess candidates' skills,abilities, aptitude, attitude, values and behaviors.

Training Cost

It includes the cost of orientation in terms of the new person's salary and the cost of theperson who conducts the orientation.

It also consists of the training. Calculate the cost of various training materials needed including company product

manuals, computer or other technology equipment used in the delivery of the training.


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Motivational cost:

It refers to the cost arises because of motivating the other employees to retain them in theorganization in terms of increasing their salary and time.

Lost Productivity Costs:

As the new employee is learning the new job, the company policies and practices, etc. theyare not fully productive. Use the following guidelines to calculate the cost of this lost

productivity..

Highest attrition in hospitality, aviation sectors: Survey2012:

Hospitality and aviation sectors are witnessing the highest attrition rates among employees,

making retention of critical manpower resources a key challenge, says a survey.According to a study by MyHiringClub.com, the average attrition rate in aviation and

hospitality in fourth quarter of 2011-12 was 22 per cent across sector, a rate that has increased by8 per cent from the from the year-ago period. In comparison, attrition rates in IT and ITeS sectorhad fallen from 24 per cent in fourth quarter 2010-11 to 18 per cent in same period in 2011-12.

Similarly, in the auto sector, attrition rates fell to 10 per cent in January-March quarter from 11

per cent in the corresponding period in 2010-11. "At the entry and mid-management level,attrition rates in aviation and hospitality industry have doubled over the last three years. This ishappening due to perceptions of being poor pay masters, delay in salaries, job insecurities and

little concern for employee welfare


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RETENTIONRetaining employeeshas always proved to be fruitful across many industries rather than to

search for new & efficient talent. So to gain the fruit of this tree, different companies devisedifferent strategies for retaining their employees. simply hiking ones salary in an endeavor to

retain your valuable employee will serve no purpose as today's workforce has a lot going during

his/her decision making process and its certainly not restricted to just pay.

Insurance schemes for the employees and some of there family members Leased accommodation Transportation facilities to & from office. Personal healthcare like medical attention for self & family Recognition of merits & rewards Participation in decision making Memberships of prominent social clubs.

Attrition goes down in IT's top 4

Fewer employees left the top four Indian software companies in the quarter ended December 31,2011.

In other words the top four companies, including Tata Consultancy Services and Infosys, saw a

drop in employee attrition during the quarter.

Attrition in the industry reduced after a spate of lateral hiring (those hired from other companies)

in 2010. This has been contained in the last couple of quarters, said Mr Siddharth Pai, partner

with Information Services Group.

Wipro witnessed a sharp decline in its employee attrition to 14.2 per centthis means for every

100 people only 14.2 left the company. It was 21.7 per cent in same quarter a year ago.

We have reduced attrition by about 9 per cent in the last two quarters to 14.2 per cent, which
http://www.whatishumanresource.com/employee-retentionhttp://www.whatishumanresource.com/employee-retentionhttp://www.whatishumanresource.com/attrition/Attirition%20rate1.jpg?attredirects=0http://www.whatishumanresource.com/employee-retention


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was the lowest in the last eight quarters. This is a reflection of the fact that employees have

embraced a new direction, and our engaging measures are making a difference, Mr T. K.

Kurien, CEO of Wipro's IT business, in a conference call with analysts said.

According to Mr E. Balaji, CEO, Ma Foi Randstad, a recruitment company, two factors

attributed to the decline in attrition. The first was the prevailing pessimistic macro-economicoutlook, which makes people more risk averse. Employees would like to retain their existing jobsand big brands give them a safety feeling.

Employee retention refers to the ability of an organization to retain its employees.

Employee retention can be represented by a simple statistic (for example, a retention rate of 80%

usually indicates that an organization kept 80% of its employees in a given period). However,

many consider employee retention as relating to the efforts by which employers attempt to retainemployees in their workforce. In this sense, retention becomes the strategies rather than the

outcome.In abusinesssetting, the goal of employers is usually to decreaseemployee turnover, thereby

decreasing training costs, recruitment costs and loss of talent and organizational knowledge. Byimplementing lessons learned from.
http://en.wikipedia.org/wiki/Businesshttp://en.wikipedia.org/wiki/Businesshttp://en.wikipedia.org/wiki/Businesshttp://en.wikipedia.org/wiki/Turnover_(employment)http://en.wikipedia.org/wiki/Turnover_(employment)http://en.wikipedia.org/wiki/Turnover_(employment)http://en.wikipedia.org/wiki/Turnover_(employment)http://en.wikipedia.org/wiki/Business


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DEFINITION OF EMPLOYEE RETENTION:-

Employee retention refers to the various policies and practices which let the employees

stick to an organization for a longer period of time. Every organization invests time and

money to groom a new joined, make him a corporate ready material and bring him at par with

the existing employees. The organization is completely at loss when the employees leave theirjob once they are fully trained. Employee retention takes into account the various measures

taken so that an individual stays in an organization for the maximum period of time.

Why do Employees Leave ?

Research says that most of the employees leave an organization out of frustration and

constant friction with their superiors or other team members. In some cases low salary, lack

of growth prospects and motivation compel an employee to look for a change. The managementmust try its level best to retain those employees who are really important for the system and are

known to be effective contributors.

It is the responsibility of the line managers as well as the management to ensure that the

employees are satisfied with their roles and responsibilities and the job is offering them a newchallenge and learning every day.

Hiring employees is just a start to creating a strong work force. Next, you have to keep them.High employee turnover costs business owners in time and productivity. Try these tactics to

retain your employees.

Offer a competitive benefits package that fits your employees needs. Providing health

insurance, life insurance and a retirement-savings plan is essential in retaining employees. But

other perks, such as flextime and the option of telecommuting, go a long way to show employeesyou are willing to accommodate their outside lives.

Provide some small perks. Free bagels on Fridays and dry-cleaning pickup and delivery mayseem insignificant to you, but if they help employees better manage their lives, theyll appreciate

it and may be more likely to stick around.

Use contests and incentives to help keep workers motivated and feeling rewarded. Done right,

these kinds of programs can keep employees focused and excited about their jobs.

Conduct stay interviews. In addition to performing exit interviews to learn why employees

are leaving, consider asking longer-tenured employees why they stay. Ask questions such as:Why did you come to work here? Why have you stayed? What would make you leave? And

what are your nonnegotiable issues? What about your managers? What would you change orimprove? Then use that information to strengthen your employee-retention strategies

. Promote from within whenever possible. And give employees a clear path of advancement.

Employees will become frustrated and may stop trying if they see no clear future for themselves

at your company.


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Foster employee development. This could be training to learn a new job skill or tuition

reimbursement to help further your employees education.

Create open communication between employees and management. Hold regular meetings in

which employees can offer ideas and ask questions. Have an open-door policy that encourages

employees to speak frankly with their managers without fear of repercussion.

Get managers involved. Require your managers to spend time coaching employees, helping good

performers move to new positions and minimizing poor performance.

Communicate your businesss mission. Feeling connected to the organizations goals is oneway to keep employees mentally and emotionally tied to your company.

Offer financial rewards. Consider offering stock options or other financial awards for

employees who meet performance goals and stay for a predetermined time period, say, three orfive years. Also, provide meaningful annual raises. Nothing dashes employee enthusiasm more

than a paltry raise. If you can afford it, give more to your top performers. Or, if you dont want tobe stuck with large permanent increases, create a bonus structure where employees can earn anannual bonus if they meet prespecified performance goals. Make sure employees know what you

expect of them. It may seem basic, but often in small companies, employees have a wide breadth

of responsibilities. If they dont know exactly what their jobs entail and what you need fromthem, they cant perform up to standard, and morale can begin to dip.

Hire a human-resources professional. If your company is nearing 100 employees, considerhiring a human-resources director to oversee and streamline your employee structure and

processes. Putting one person in charge of managing employee benefits, perks, reviews and

related tasks takes a huge load off of you and makes sure employees are treated fairly. HR

managers are also more up to date on employment laws and trends. They can set up variousprograms and perks you may not have known existed keyorganizational behaviorconcepts

employers can improve retention rates and decrease the associated costs of high turnover.

However, this isn't always the case. Employers can seek "positive turnover" whereby they aim tomaintain only those employees who they consider to be high performers.

10 reasons why organizations are not able to

retain employees:

Reading Zoe's post I was inspired to come up with reasons why people leave organizations.People don't get integrated. Most organizations have an orientation program which is more of

data-dump or focused on compliance trainings being completed. The focus should be more on

enabling employees to form networks within themselves. Performance goals are unclear. In a fast

growing team or business the focus is on getting the thing done today, but rarely are performance

goals thought through and employees told as to which resources to approach for help.
http://en.wikipedia.org/wiki/Positive_organizational_behaviorhttp://en.wikipedia.org/wiki/Positive_organizational_behaviorhttp://en.wikipedia.org/wiki/Positive_organizational_behaviorhttp://jobsyntax.com/blogs/jobgals/archive/2006/05/08/176.aspxhttp://jobsyntax.com/blogs/jobgals/archive/2006/05/08/176.aspxhttp://en.wikipedia.org/wiki/Positive_organizational_behavior


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Development is always tomorrow's job. Culturally Indians are focused on learning. If learning

adds value only to the job and not to the overall career goals of the individual then the

organizations seems too transactional for the employee

The personal touch is missing. How comfortable are managers building personal bonds with their

subordinates? A lot of managers shy away fearing a bond will make delivering hard messagesdifficult. I would argue that it's the other way round! Knowing employees on personal level

makes a manager know their strengths and weaknesses. Work allocation and employee

development become easier.

Reward systems are not transparent. Most employees who get salary increases because they have

a rare skill at a particular point of time think they got their raise for excellent performance. Can

you share details about how they have been compensated?

Perceived equity of reward systems is low. Like it or not, employees discuss salary details and if

there is any perceived lack of equity then you have an issue !

Goal setting process is not scientific. Most organizations impose a normal curve fitment, but do

not train managers to set realistic goals or goals that tie up with organizational or functional

goals. This also leads to point number 6

External equity is missing too. Don't do an annual compensation survey when the market moves

every 3-4 months. If your practitioners feel that externally comparable professionals are being

valued more, then they will leave.

No communication around total value. If you offer benefits apart from only monetary terms do

you communicate that to employees too. Things like being a global or niche industry leader,value of the brand of the organization, should also be made explicit.

No career planning. Are people aware of the ways in which they can grow in the organization?

Who are the role models within the organization? Do they know what they have to do to gain the

competencies to move to various levels?

Latest Trends in Retaining Top Talent :

Successful employee retention requires companies to take a multifactored approach that includeseffective organizational systems (for example, compensation and benefits, career movement

systems), managers behavior with employees, and managers accountability for their retention(or attrition) rates. However, and unfortunately, the scenario in many organizations is the same.Someone who is invested in the business, such as a senior line manager or human resources

professional, raises the red flag of attrition, recognizing its potentially devastating impact on the

companys strategic position. Then someone scrambles to pull an initiative together that fails to

respect one or more of the critical factors that are required to reduce attrition. The result is thatthe organization experiences mediocre results, or no results at all.


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With the assistance of Sun Microsystems, one of Silicon Valleys largest high-tech companies,

our company examined the retention practices of more than 500 managers and divided the group

into those with high versus low turnover rates. We interviewed subgroups of these managers,their direct reports, and their customers to identify the critical behaviors that differentiated the

managers with excellent retention records. This preliminary study uncovered six quantifiable and

behavioral managerial practices associated strongly and positively with a low intention to quit,high job satisfaction, and low work-related stressbehaviors that spell TALENT.

Targeted Recruiting and Hiring. This practice concerns the managers ability to hire talentwho will stay with the company, not just recruit talent for a particular job or project task.

Management practices such as hiring for cultural fit and giving realistic job previews were highly

correlated with employees who stayed longer at the company.

Achievement. What is the manager doing to make sure the employee is winning and succeeding

at work? Does the manager make sure the employee has the right tools and training to

accomplish the desired results effectively? Does work assigned take the employees strengths

into account?

Learning and Professional Growth. How familiar is the manager with the learning desires ofthe employee? Is there a proactive plan in place to make sure the employee is learning and

growing in areas of interest as well as future needs of the business?

Ensuring Recognition. One of the most frequently cited reasons given by employees who

voluntarily leave a company is that the employees perceived contribution to the enterprise failed

to be recognized by management.

Nurturing Careers. To what degree does the manager help connect the employee to people in

the company who can influence the employees career? Does the manager help the employeetake a look at next steps in the employees career? Are job assignments given that will ultimately

promote the career of this person? If yes, you get a more committed employee who stays longer.

Team Collaboration. A manager who hires competent people who work well together and get

along will have a leg up in keeping top talent. Employees today report that those they work with

and whether they feel the rest of the group is contributing equally goes a long way in providingthe glue that makes them stick to the organization.

The data clearly indicated that employees who are managed by people who are highly effectivein these management retention practices are less likely to leave the job.


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The Importance of Retention

Although a moderate level of staff turnover can be good for a business, every organization needsto have a strategy in place to retain the high performers that give it a competitive edge.

Employee retention refers to the techniques employed by the management to help the employees

stay with the organization for a longer period of time. Employee retention strategies go a long

way in motivating the employees so that they stick to the organization for the maximum time and

contribute effectively.

The cost of not doing so can be severe, as high employee turnover can be very expensive. It

lowers internal morale and it could harm an organizations external reputation.

Its essential to try to understand more about the reasons why people are resigning. There may be

positive reasons such as an attractive new job or a chance to reshape their lifestyle by working on

projects outside of mainstream work. However, more likely is that their departure signifies some

dissatisfaction with the present job


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ATTRITION AND RETENTION IN

DIFFERENT SECTORS

Reasons for Attrition in BPO & ITES Industries:

BPOs are the highest job provider in the IT sector employing a total of more than 8 lacsprofessionals. Notwithstanding the initial glamour of this sector as a harbinger of opportunities

and an attractive career option, today with the vast number of players in the arena and easy

availability of lucrative software jobs, the sector is smitten with the problem of attrition. Even

big firms like Infosys and Wipro have an attrition rate of close to 20% in their BOP arms whichis very high.As a quality workforce is crucial for business success, employers have started taking

this very seriously and a lot of initiatives are being taken to curb attrition. As Kamal Karanth of

Kelly Services India puts it, The workforce is the backbone of the BPO industry and the

attrition rates have becoming alarmingly high for the industry. Most of the companies arepromoting within to ensure that talent remains.

According to NASSCOM, the cost of attrition in the Indian BPO & ITES is 1.5 times the annual

salary. So it becomes all the more necessary for BPO industry to explore into the reasons for this

high attrition rate.

The main reasons which have led to this problem are: -

Improper Work Timings

Family Pressure

Health problems due to imbalance in work-life pattern

Peer Pressure

Lack of growth options within the company

Other Career options like pursuing further education, joining other sectors.

Salary (at lower levels)

The specific reasons for attrition are varied in nature. A list of issues, some very prominent and

some even trivial, are identified below: -

1. No growth opportunity / lack of promotion: Only one in 10 people will ever make

consultant; one in 100 will make it to line / practice manager.


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2. Organizational matters: The knowledge employees always assess the management values,

work culture, work practices and credibility of the organization. The Indian BPOs do have

difficulties in getting the businesses and retain it for a long time. When there is no focus, and inthe absence of business plans, non-availability of the campaigns make people to quickly move

out of the organization.

3. Work environment: In the Indian BPO industry, rigid rules and strict monitoring are the

norm. Employees often feel that they are being constantly spied upon. Sometimes, it even

infringes on the employee's private space, thereby forcing them to look for other opportunities.

4. Job matters: A number of job related reasons contribute to the high attrition levels in this

industry. These are given below: -

(a). Stress Levels: These jobs bring lots of pressure and the stress levels are high. Hence,

employees leaving the job due to too much pressure on performance or any work related pressure

are quite common.

(b). Adjustment problems: Often employees are moved from one process to another. They taketime to get adjusted with the new campaigns, and few employees find it difficult to get adjusted

and they leave immediately. Many a time, the employees move out if there are strained relationswith the superiors or with the subordinates or any slightest discontent.

(c). Nature of the job: Monotony sets in very quickly and this is one of the main reasons for

attrition. Besides the induction and project training, not much investment has been done toevolve a "continuous training program" for the employees.

(d). Attitude of employees: Youngsters look at call center jobs as temporary and they quickly

change the job once they get in to their own field.

5. Salary and other benefits: Moving from one job to another for higher salary, better positions

and better benefits are among the most important reasons for attrition.

6. Personal reasons: The personal reasons are many and only few are visible to us. The

foremost personal reasons are getting married or change of place. The next important personalreason is going for higher education. Health is another aspect, which contributes to attrition.

Employees do get affected with health problems like sleep disturbances, indigestion, headache,

and throat infection and lose interest in work.

7. Poaching: Poaching of trained and competent manpower from rival companies is very high.

Most of the BPO organizations have employee referral schemes and this makes people spread

message and refer known candidates from their previous companies, and earn too in the bargain.

The reason are various behind leaving an organization & any attempt to find one comprehensiveexplanation for this phenomenon would be futile. Though the rising attrition within industries is

a well-discussed topic but very few HR executives have been able to pinpoint the 'exact' reason

for this growing trend. A recent Hewitt 'Attrition & Retention' survey shows one of the top

reasons for talent attrition to be "external inequity in compensation". They also show that

27% of the employees in their EXIT interview mentioned compensation as the primary reason. It


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comes no surprise to many that money is an important factor but what besides this, there are

several factors that influence an employee's decision to leave.

The much-hyped "work for fun" tag normally associated with the industry has in fact backfired,

as many individuals (mostly fresh graduates), take it as a pass-time job. Once they join the sectorand understand its requirements, they are taken aback by the long working hours, and later,

monotony of the job starts setting in. This is the reason for the high attrition rate as many

individuals are not able to take the pressures of work.

The inexperienced middle and frontline management is also one of the key causes of attrition.

Strategies to Address Attrition

Attrition is the biggest problem faced by BPOs these days. Attrition rate in BPOs is more thanthe attrition rate in any other sector. It is very important to control this attrition rate. Many

retention schemes are applied in BPOs for retention.

A single tool like training alone is not sufficient for employee retention. The best results for

employee retention can be achieved by applying different tools strategically. Let us now learn

about various strategies which can boost successful employee retention in BPOs.

First know the cost. This is the most basic and initial part of the retention process. A good

retention plan needs all the facts. The turnover cost includes cost of selection process, hiring,induction, training, lost productivity, etc.

Hire from known sources like employee referrals through trustworthy employees.


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Hire the right people. Retention starts with recruitment itself. Identify the characteristics of the

people you want to hire who fit in organizations culture. To retain employees, the people who

are productive and are likely to stay for a longer time should be hired.

Focus on employee orientation. It is the first impression that the employee takes home with him.

A proper welcome form the management will encourage the employee to stay with theorganization.

Individual development. Develop career plans for employees. Initiate mentorship and highereducation programs to keep the learning and development moving.

Training for managers. An important factor that keeps the employee in the organization is the

manager. Employees need a manager who manages them well. A manager should be a good

listener and motivator. Proper training should be given to the managers.

Find the reason why employees are leaving. Conduct exit interviews with the employees after 3-

4 months of leaving the job. This is because most of the employees would not like to reveal thetrue reason of quitting the job as long as they are in the organization and are associated with thejob. The exit interviews can be conducted online. Then the employees can talk straight-from-the-

shoulder.

Employee recognition. Star of the month, top performer, picture on bulletin boards, appreciation

cards and certificates, etc, increase employee moral and confidence. This is a great way to retain

employees of a call center.

We propose the following solutions to tackle the acute problem of attrition in BPO industry.

BPO companies are still grappling with the issue of keeping agents motivated in a rather

monotonous job. To resolve this problem the high achievers in the company should be moved upthe hierarchy (refer figure) as systematically as possible, to keep them motivated.

The Indian BPO companies have realized the importance of employee retention and are looking

for ways and means to keep a check on employee attrition. For this, some measures that can be

adopted by the BPO firms are: -

Besides the induction and project training, a "continuous training program" should be launched

for the employees, which should also involve motivational training.

BPO companies can look beyond the traditional areas of recruitment and some thought could be

given to employ physically challenged people and housewives. This would also earn thecompanies good reputation with compliance of CSR objectives.

Companies need to go in for a diverse workforce, which does not only mean race, genderdiversity, but also includes age, experience and perspectives. Diversity in turn results in

innovation and success.


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Age should not be a barrier for training employees and could in fact bring in more stability to

the company.

Better Customer-Agent Communication should be encouraged by adopting a mix of various

media like e-mail, phone and fax. Today BPOs deploy voice-call, e-mail, web-chat and fax to

"collaborate" or interact with customers. However, even after tapping all these media, BPOshave largely failed to deliver uninterrupted agent-customer communication. The customer-agent

interaction is still plagued by various bottle-necks, which directly result in customer

dissatisfaction. This has a direct bearing on employee attrition.

A fun factor could be brought in this operation, which becomes boring and repetitive after some

time. This can be done by blending all the media. That way an agent can switch betweenanswering queries over the phone, e-mail or fax. It will lure employees to stay in the organization

for a longer period by giving them exposure, experience and education. It also addresses a

professional's most important need: the need to grow. Besides, it will help remove the monotony

and boredom from an employee's job as he would be performing all the processes, as opposed to

being restricted to just one.

Besides these, some innovative employee retention techniques already being employed in some

BPO firms are stated below: -

Shift rotation - It is said that "Permanent night birds fly away faster". To retain them, suitable

day-shift opportunities should be provided from time to time

Flexi Timing

Monthly Party

Shop till you drop - Tie-up with a shopping mall for an evening outing and distributing prizesbased on that.

Housing

Cash Incentives (good rewards)

Career Guidance

Bonding Techniques

Pressure Relievers

Flexible Working Hours

Stronger Career Path


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Growth Opportunities (within the company)

Education (learn while you earn)

Another strategy that BPOs are employing is the go-ahead to indulge in "small talk" between

customers and agents. BPOs such as Amex, HCL, Convergys, Spectra-mind and EXL are someof the few companies that have reaped dividends from implementing this strategy.

In small talk the agent is not restricted to just fixing the problems of the customer. It rather gives

the agent sufficient room to discuss things other than business. For BPOs, small talk helps in

striking a good agent-client rapport. A happy customer means an agent who feels elated at a jobwell done. For BPO companies, it is a win-win situation - being successful in retaining both

employees and clients.

Housing

Hire outstationcandidates (preferably

non-metro) and put

them up in shared

company

accommodation. As an

incentive, pick up utility

bills. If the employee

leaves, he or she loses

the apartment

Who is doing it

exl Service.com

Education

Offer managementdiplomas and MBA

courses as most fresh

graduates want to

study further. Also

give incentives like

scholarships. If they

leave in between,

they have to

discontinue the

course

Who is doing it

GE, Wipro

Spectramind

Cash Incentives

As only 5 out of150 employees

become team

leaders in a year,

cash incentives are

a great way to get

employees to stay

on. The bonus -

performance boost

Who is doing it

Daksh e-Services,

Global Vantedge

Career Concerns

Use various filterslike psychometric

tests to get people

who can work at

night and handle

the monotony.

Career counseling

and planning career

paths also helps

Who is doing it

HCL Tech BPO

Services, GTL,

Tracmail, Vertex

India


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Also it has been found that there are two key dimensions that influence the sustenance of an

individual in the organization; they are individual motivation and work involvement. Based on

these two dimensions the employees can be divided into four categories:

Detached: There are people who are woefully inadequate in both dimensions i.e. neither arethey involved in the work, nor are they motivated to perform. They are very difficult to

retain as they leave the organization for no apparent reason

Disgruntled: These people are the ones who are involved in their work but lack themotivation to carry the work through

Strugglers: These people develop on the higher level of motivation spectrum, but lackinvolvement. They can be retained by increasing the involvement component by increasing

their work responsibility and giving more decision making authority

Stars: These people are the ones who are the easiest to retained as they rate high both on jobinvolvement and intrinsic motivation

Reciprocity: Employees invest a lot of time and resources in the company and expect areturn on investment. Companies need to understand this and reward them with properrecognition, empowerment and authority

Organization culture: Successful organizations have retention woven into organizationalvalues and culture and this is one of the main reasons which makes them different from

the rest

Loyalty: Loyalty is never a given so it is essential to develop a sense of loyalty among theemployees


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Recognition: It is not sufficient to acknowledge only the top10% of star performers, infact anyone who sticks with the company through thick and thin and adds value should be

appreciated

Generation centric approach: For the first time in organizations varied generations areworking alongside each other. It is important to realize that every generation has a

different reason for staying with the organization and it is imperative for organizations to

realize this while developing the retention strategies

Development culture: Career development is perhaps the most critical component of anyretention plan. Today moving up the ladder is a crucial aspect for almost all employees

and organizations should be able to provide this if they wish to retain the right talent.

Figure 4: Job Involvement vis-a-vis Intrinsic MotivationDisgruntled and Strugglers are the two categories that the company needs to retain by pulling

away all the non-retentive forces and kicking in all the retentive forces into high gear. This resultis analogous with all the established theories of motivation viz. Herzbergs theory, Maslows

theory, Alderfers Theory, McClellands Theory. According to all these theories, the higher order

needs revolve around self esteem, or self actualization in one way or the other.

Organizations have to be a proactive retention strategy in order to reduce employee turnover.

The strategies adopted have to be different for different categories of employees as their needs;


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aspirations and motivational levels vary with every level in the organization. Also one has to

account for various demographic variables, age, sex, marital status, education and geographical

factors. Ideally a retention strategy adopted by a company should incorporate the following

aspects.

BPO Industry - Positive Outlook

As the industry moves up the value chain, attrition rates are expected to decline.

For BPO service providers, moving up the value chain is critical, given the attrition rates in the

industry, which are on an average higher in low value-added segments (in call centers) ascompared to higher value-added segments like engineering.

It will not be possible for the industry to arrive at a blanket agreement on poaching but bilateral

agreements between companies are being signed. Basic norms are being put in place and code of

ethics is being stressed upon by industry. Companies are being encouraged to adopt responsible

behavior in order to ensure that the industry does not become a victim of its own actions.Industry needs to go aggressive but not cannibalistic.

In order to ensure a consistent flow of trained manpower in the future, the industry needs to work

with the government to introduce courses at a school and college level, which are in line with the

requirements of the ITES-BPO industry. India has one of the largest pool of English speaking

graduate workforce.

The challenge for the industry is not in employment but employability. The industry is also

hiring professionals from outside the industry in order to meet its steady supply of manpower.

High attrition rate, price wars, poor infrastructure and lack of data protection laws could derailIndia's booming outsourcing industry. All this has induced the companies to take necessary steps,

both internally and externally. Internally, most HR managers are busy putting in efforts on the

development of their employees, building innovative retention and motivational schemes (which

was more money oriented so far) and making the environment livelier. Outside, the focus is oncreating awareness through seminars and going to campuses for recruitment.

Companies which have not been able to tackle this image could take a cue from ICICIOneSource, which gives employees who have been with the company for more than 18 months

an option to switch to positions in other ICICI group companies.

The system works as a big assurance for BPO employees that the skills they have learnt such as

customer friendliness and rapid response to customer problems have wider applications and

market demand.


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It is clear that there are massive costs associated with attrition or turnover, and while some

of these are not visible to the management reporting or budget system, they are none the less

real.

Pay cheques alone are not enough to retain employees. Management also needs to consider other

aspects like secure career, benefits, perks and communication. The attrition battle could be wonby focusing on retention,

making work a fun place, having education and ongoing learning for the workforce, and treatingapplicants and employees in the same way as one treats customers.

A better agent-client interaction using latest technologies would also help in establishing a good

rapport with the employees as well as customers, resulting in win-win situation for the company.

It is not easy to find out as to who contributes and who has the control on the attrition ofemployees. A pin-pointing of the prominent causes is the first step towards addressing the issueof attrition. Two studies in this regard are worth mentioning.

1. DQ-IDC's BPO Employees' Satisfaction Survey 2003 cites some of the reasons for attrition

the industry has identified. A good 42% of the respondents said they are likely to leave for higher

education. "33% also said they would leave when they got married!!

Considering that only 26% of these were women, and assuming all women said they would leaveafter marriage for cultural issues peculiar to India - that is still a substantial chunk of men saying

they would leave once they had other responsibilities at home." A good 35% said they would

leave because they cannot handle the timings. 27% employees said they would leave eitherbecause ork stress or the sheer physical strain was too much to handle.

2. A recent study by Hill and Associates, security and risk management consultants, on the

attrition rate in the BPO sector, threw up some interesting insight. The study was conducted on

targeted respondents that included the young population employed in the outsourcing businessand with undergraduate, graduate and post-graduate education and who had changed their job at

least once in the past three years.

Some of the findings of the study are: -

Exits from BPO happen because of reasons like lack of growth avenues, expectation mismatch,dissatisfaction with organizational policies, and the quest for a better job profile.

Not night shifts, monotony of work and lack of salary hikes. Where the HR department took

steps to deter exits such as giving salary hikes, promotions, shift changes and other incentives, it

did not succeed completely.


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The survey revealed that respondents were overwhelmingly in favor of better career growth

opportunities and improved company policies.

The survey indicated that more than 60 percent of the employees join a BPO after seeing job

advertisements in newspapers or through manpower consultant references. The study found that

the communication pattern of advertisements positioned the BPO job at a level much higher thanits real delivery.

An overwhelming 75 percent of the respondents were financially independent of their families.Yet, a sizeable section among them turned to their families for support if they felt the need to

quit their jobs. This cushion provided by the social support system often drove the respondents to

quit their jobs at the first hint of any inconvenience on the job.

High attrition, suicides in the Indian Boarder Security Force

SurprisinglyBoarder Security Force (BSF) of the India has experienced high attrition rate for

this the Indian Government have commissioned study by IIM (Indian Institute of Management)Ahmedabad to know the reasons behind. The finding of the study revealed very basic reasons for

high attrition in The Indian BSF that includes core reasons like poor working condition. Longworking hours in their job with postings in difficult areas such as remote locations like forest

areas where there are no proper facilities which is effecting their health and sometimes

threatening their life, especially in forest areas BSF personnel are much exposed to risk bymalaria due to mosquitoes bites rather than enemies bullets. IIM study also found other reasons

like lack leave availability when required by BSF, most of situations leave was granted after

requirement is over, that leads to dissatisfaction and feeling of deprive form family altogether

eventually triggering unbearable stress amongthem, sometimes there were suicides out of extreme depression but known to outsiders.


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.

Low attrition and higher retention in ITC(FMCG

COMPANY):

Half of ITC's 7,000-odd managers have been with the tobacco, hotels and consumer productsenterprise for more than a quarter of century. Attrition at senior management levels - from chief

executive officer to business heads - has been zero for at least 15 years now.

The last time ITCBSE 0.53 % hired to fill up the top deck was 23 years ago when it roped in SSivakumar from a farmers' co-operative to conceptualize the path-breaking e-Choupal model.

And perhaps fittingly, Anand Nayak, chief of human resources, has been with the Kolkata-

headquartered consumer goods giant for almost four decades.

Meet the lifers at perhaps the only corporation amongst the top tier of India Inc that has so many

managers who dedicate their entire professional life to a single company. Hindustan UnileverBSE -0.12 % (HUL) is the only other sizeable Indian operation that comes close to matching

ITC's ability to keep the brass together in such huge numbers for as long a time. Half of HUL's

1,500 managers are lifers.

At senior management levels, it goes up to 60% although if you combine mid- and senior-level

managers, it comes down to a third. HUL's overall attrition rate is 5% and of late it has lost

senior managers to rivals. The Unilever subsidiary has also displayed a new-found willingness tohire for top positions - for instance, former PepsiCo ED Geetu Verma recently came on board as

head of foods. .

In financial services, organizations such as ICICI Bank BSE -2.29 %, HDFCBSE -2.82 % and

Kotak Mahindra BSE -1.31 % have had closely-knit teams over decades. Yet, these companies

can't hold a candle to ITC for two reasons. One, while ICICI has not felt the need to headhunt forcore positions, it has lost people in the top deck after they didn't win the race to succeed former

chief executive officer KV Kamath.

And, two, while the core team at companies such as Kotak Mahindra has remained more or less

intact, the difference at ITC is that it does not have lifers only in the top management but at the

second- and third-rung levels, too.

Chairman YC Deveshwar joined as a management pupil (or trainee) way back in 1968, and even

though he worked as the chairman and managing director of Air India during 1991-94, it was onlien.

Among the three executive directors on the board, Nakul Anand (hospitality, travel and tourism)and PV Doable (paperboards, speciality papers and packaging) are lifers; Kurush Grant

(cigarettes and FMCG) joined after spending less than a year as a management trainee at DCM.


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The EDs have been identified as potential successors to Deveshwar.

At the divisional chief executive and functional head level in ITC, the heads of tobacco, foods,lifestyle retail, personal care, paperboards and speciality papers, education and stationery

products, hotels and R&D are all lifers.

Clearly, ITC believes there are business benefits with such a structure. HR chief Nayak says the

lifer workforce has become its DNA.

One major reason for such low attrition is a compensation structure that rewards retention

handsomely, although Nayak does point out that "we don't pay what Unilever or P&G does".


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BIBILIOGRAPHY

1. BOOKResearch Methodology - Kothari C.

2. MAGAZINEBusiness Today

3. WEBSITESwww.tatadomo.com

www.wikipedia.com
http://www.tatadomo.com/http://www.tatadomo.com/http://www.tatadomo.com/

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