Reducing Staff Attrition

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Innovation Case Study: Reducing Staff Attrition for BFSI company

Innovation Case Study: Reducing Staff Attrition

Objective: To reduce the staff attrition Process: Human Resource Management Organization and Industry: Banking, Financial Services, Insurance (BFSI) Case Background: A Fortune-50 organization in the BFSI space wanted to identify the drivers of staff
attrition and bring down the value significantly.

Challenges facing the organization

Staff attrition leads to incurring an expense in ramp up of new resources as well as the loss in productivity and knowledge of the organization in the long run While the organization had adopted six sigma framework through QAI, the conventional tools of six sigma

were found to be inadequate in providing answers to the complex situation. The annualized staff attrition
was at 84% at the start of the project and management wanted a fresh perspective to the problem.

Project Success criteria defined by Management

Management was exploring a structured approach to innovation that was low on complexity without compromising the rigor and effectiveness. The following criteria were defined for evaluation of the ideas

1. Structured approach towards identifying the vital few parameters of importance to the customer
2. Cost of implementation should be low

3. Ease of Implementation
4. Maintainability in the long run should be easy

QAIs Consulting Approach

The project was executed in the three phases shown in the figure.

Confidential 2008 QAI Global

Innovation Case Study: Reducing Staff Attrition for BFSI company

1. Information Gathering a) The primary objective of Information Gathering phase is to

1. Understand the Main

Parameters of Value from a customer perspective i. Main Parameters of Value (MPV) are those attributes for product or service that will have the greatest significance in the customers purchasing decision. ii. Innovation requires a precise understanding of value: the who, what, when, where, how, and why of the customers need. It then means getting that value to them without complexity creeping in. 2. Study the solutions proffered by the industry to satisfy those parameters by doing prior art search and 3. Obtain insights into the under-served opportunities.

For the Staff attrition reduction project the information gathering was carried out at different
levels 1. Collation of voice of management including senior management 2. Information on the current situation as obtained from the Innovation Situation Questionnaire 3. Data of staff who have left the organization and those who have not 4. Focus Group Discussions covering target employees using tools of Innovation. 2. Analysis a) The primary objective of Analysis is to obtain insights from the Information Gathering phase on under-served Main Parameters of Value.

Confidential 2008 QAI Global

Innovation Case Study: Reducing Staff Attrition for BFSI company

b) It further involves a rigorous analysis of the process to determine the opportunities for

improvement in service delivery.

Summary for Good MD - CMB
Anderson-Darling Normality Test A-S quaredP-V alue Mean 0.98529
-1 -3 -5 -1 -1 -3 -5 -1 -1 Trng ad eq uate to perfo rm job -1 C omp en & b en efits v s. in d ustry

Main Effects Plot (data means) for Signal to Noise Ratio - CMB
0.600.114
Satisfaction with work content Jo b ch allen gin g en o ug h Recog and Rewards by Superv. Relatio n ship with Su perv iso r

c) QAIs team made use of advanced multi-variate analysis to identify the

0.3 0.6 0.9 1.2 1.5

StD evVariance Skewness -0.229223 Kurtosis -0.824298 N 68 Minimum 1st Quartile Median 3rd Quartile Maximum 1.55375

0.340290.11580

Op p ortu nity fo r person al d ev an Opportunities for career enhanc

0.238570.74992 0.974871.30145

-1 C omp en con sisten t with p erf

-1 Excessiv e wo rklo ad

-1 C o. in fo received fro m sen iors

-1 Foo d Facility

vital few factors and their percentage impact on staff attrition. The sample
Mean Median 0.90

95% Confidence Interv al for M ean 0.90293 1.06766 95% Confidence Interval for Median 0.88040 1.10985 95% Confidence Intervals 95% Confidence Interv al for S tDev 0.29116 0.40953

-1 -3 -5

-1 Tran spo rt Facility -1 -3 -5 -1

-1

-1

-1

0.95

1.00

1.05

1.10

output of the exercise is shown in the images. 3. Concept Development a) 67 Improvement projects were initiated including 4 six sigma Green Belt projects. b) Secondary problems identified were resolved using principles of innovation 4. Deployment of the recommended changes

a) The implementation of solution directions was

monitored over a period of 4 months.

Benefits Obtained
Evaluation Parameter Annualized Staff Attrition Annualized Saving on account of reduction in Staff Attrition Before 84% After 42% $900,000

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