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Miss SHRUTI MEHTA (HR Assistant manager)TTL,LKO.



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.

To complete the project is not a easy thing, you have to take the help of others. I would like to add a few heartfelt words for the people who are the part of this project in numerous ways people who gave unending support right from 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(Hr assistant manager at TTL) for providing me with sense of direction in building this 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 like a rudderless boat. Well to put in a nutshell, without their guidance and support this project would have been futile. Zainab Fatima Khushboo Shah M.B.A II-Sem


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

1. 2. 3.

Preface Acknowledgement Companys profile Tata Teleservices Ltd


4. 5. 6. 7. 8. 9. 10.

Employee Attrition Employee Retention Attrition and retention in different sectors Employee attrition and retention in Tata Docomo Conclusion Bibliography


India 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).

Universal service covering all villages and one PCO per 500 persons in urban areas at the earliest (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 Tata Teleservices Ltd

2 Mahanagar Telephone Nigam Ltd (MTNL) 3 Bharat Sanchar Nigam Ltd (BSNL) 4 Reliance Communications Ltd 5 Bharti Airtel Ltd 6 Vodafone 7 8 9 Idea Cellular Spice Communication Private Ltd Aircel

10 Uninor


Tata Teleservices Limited spearheads the Tata Groups presence in the telecom sector. The Tata Group 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 (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 joint venture 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 GSM telecom 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 already redefined 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 Circles where 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.

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 amongst private 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 in more 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 18,000 towers, 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 Emerging Markets 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; Best Company, CEO of the Year and Best Quality of Service, and Business Standard award for 'Most Innovative Brand of the Year'. Tata DOCOMO was 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 November 2008. 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.

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 and trusted 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(CODE DIVISION 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






Employee attrition is a situation faced by an organization or employer when new employees joined 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 time software 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 ideal situation 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 the aspect (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 for the 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's decision 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 wrong information 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, though employer-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 also possible 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 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. 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 a factor 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...

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. 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 also possible 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 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. 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 a factor 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. 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 or trained 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 freeze can eventually result in fewer employees and a similar savings in labor costs.

BENEFITS OF ATTRITION: If all employees stay in the same organization for a very long time, most of them will be at the top of their pay scale which will result in excessive manpower costs. When certain employees leave, whose continuation of service would have negatively impacted productivity and profitability of the company, the company is benefited. New employees bring new ideas, approaches, abilities & attitudes which can keep the organization from becoming stagnant. There are also some people in the organization who have a negative and demoralizing influence 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 organization does not want to continue a relationship. It benefits the organization in the following ways: 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 a wrong 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 an organization. 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.

Lack of career growth. Role stagnation.

KINGFISHER AIRLINES 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 was only 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.

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 HR expert to cope up with this situation and retain talent with an organization. Reasons for high attrition at BSF & CRPF


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.

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 which is major demotivating factor and motivating factor for quits in BSF. These existing grievance made senior BSF officers to approach Honourable the High Court of New 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 inflation in 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 for the 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 is taking 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 the person 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.

Motivational cost:

It refers to the cost arises because of motivating the other employees to retain them in the organization 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. they are 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, 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 by 8 per cent from the from the year-ago period. In comparison, attrition rates in IT and ITeS sector had 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 is happening due to perceptions of being poor pay masters, delay in salaries, job insecurities and little concern for employee welfare

Retaining employees has 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 devise different 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 cent this 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

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-economic outlook, which makes people more risk averse. Employees would like to retain their existing jobs and 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 retain employees in their workforce. In this sense, retention becomes the strategies rather than the outcome. In a business setting, the goal of employers is usually to decrease employee turnover, thereby decreasing training costs, recruitment costs and loss of talent and organizational knowledge. By implementing lessons learned from.

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 their job 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 management must 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 new challenge 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 employees you are willing to accommodate their outside lives. Provide some small perks. Free bagels on Fridays and dry-cleaning pickup and delivery may seem 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 or improve? 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.

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 one way 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 or five 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 to be stuck with large permanent increases, create a bonus structure where employees can earn an annual 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 from them, they cant perform up to standard, and morale can begin to dip. Hire a human-resources professional. If your company is nearing 100 employees, consider hiring 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 various programs and perks you may not have known existed key organizational behavior concepts 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 to maintain 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.

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 messages difficult. 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 includes effective 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 that the organization experiences mediocre results, or no results at all.

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 talent who 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 of the 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 employee take 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 providing the glue that makes them stick to the organization. The data clearly indicated that employees who are managed by people who are highly effective in these management retention practices are less likely to leave the job.

The Importance of Retention

Although a moderate level of staff turnover can be good for a business, every organization needs to 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


Reasons for Attrition in BPO & ITES Industries:
BPOs are the highest job provider in the IT sector employing a total of more than 8 lacs professionals. 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 which is 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 are promoting 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.

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 in the 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 take time 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 relations with 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 to evolve 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 personal reason 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 comprehensive explanation 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

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 sector and 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 than the 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.

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 the organization. Individual development. Develop career plans for employees. Initiate mentorship and higher education 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 34 months of leaving the job. This is because most of the employees would not like to reveal the true reason of quitting the job as long as they are in the organization and are associated with the job. The exit interviews can be conducted online. Then the employees can talk straight-from-theshoulder. 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 up the 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 the companies good reputation with compliance of CSR objectives. Companies need to go in for a diverse workforce, which does not only mean race, gender diversity, but also includes age, experience and perspectives. Diversity in turn results in innovation and success.

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, BPOs have 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 between answering 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 prizes based on that. Housing Cash Incentives (good rewards) Career Guidance Bonding Techniques Pressure Relievers Flexible Working Hours Stronger Career Path

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 some of 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 job well done. For BPO companies, it is a win-win situation - being successful in retaining both employees and clients. Housing Hire outstation candidates (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 Education Offer management diplomas 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 of 150 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 filters like 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

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 are they 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 the motivation to carry the work through Strugglers: These people develop on the higher level of motivation spectrum, but lack involvement. 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 job involvement and intrinsic motivation Reciprocity: Employees invest a lot of time and resources in the company and expect a return on investment. Companies need to understand this and reward them with proper recognition, empowerment and authority Organization culture: Successful organizations have retention woven into organizational values 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 the employees

Recognition: It is not sufficient to acknowledge only the top10% of star performers, in fact 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 are working 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 any retention 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 Motivation

Disgruntled 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 result is 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;

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) as compared 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 derail India'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 on creating awareness through seminars and going to campuses for recruitment. Companies which have not been able to tackle this image could take a cue from ICICI OneSource, 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.

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 won by focusing on retention, making work a fun place, having education and ongoing learning for the workforce, and treating applicants 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 of employees. A pin-pointing of the prominent causes is the first step towards addressing the issue of 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 leave after 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 either because 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 business and 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.

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 than its 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 Surprisingly Boarder 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. Long working 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 by malaria 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 among them, sometimes there were suicides out of extreme depression but known to outsiders.

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 products enterprise 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 S Sivakumar 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 Kolkataheadquartered 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 Unilever BSE -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 to hire 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 for core 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 on lien. 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.

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".



BOOK Research Methodology - Kothari C.


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