INSTITUTE OF MANAGEMENT STUDIES GHAZIABAD

SYNOPSIS FOR THE DISSERTATION REPORT ON EMPLOYEES ATTRITION AT ITEs SECTORS

SUBMITTED TO:
DR. ANITA SINGH FACULTY, HR

SUBMITTED BY:
SURBHI SHARMA PGDM II BM011225

DISSERTATION REPORT ON EMPLOYEES ATTRITION AT ITeS SECTOR

INTRODUCTION
Human Capital is the most crucial resource on which the Information Technology & Information Technology Enabled Services (IT & ITES) industry in India depends. Next to them location advantage that India has, the factor for the country's immense success in the overseas markets, is its abundant & cost effective human capital which is one of the key asset that has kept India sustain its edge in the ITES sector Human Resource (HR) professionals all over the world, working in Call-Center or Contact Center or BPO industry are leaving no stone unturned to formulate strategies to retain human capital, but nothing is working in their favor. In spite of all their trials the average attrition rate in the BPO this sector is still very high. In the best of worlds, employees would love their jobs, like their coworkers, work hard for their employers, get paid well for their work, have ample chances for advancement, and flexible schedules so they could attend to personal or family needs when Attrition is beginning to significantly affect off shore return on investment(ROI.) Just as businesses faced a scarcity of talented IT resources during the dotcom era, organizations in offshore countries such as India are experiencing similar pains. Skilled employees are hopping from job to job and taking with them the customer knowledge and technical expertise that any company needs. Their salaries are increasing, along with their perks, benefits, and bonuses. Global outsourcing and the astounding amount of foreign direct investment pouring into China, Russia, and India have created tremendous opportunities and competition for talented IT professionals in these countries. The downside of this increased competition is a rising rate of attrition, particularly in India. Fiscal first-quarter 2012 results filed by Infosys, Wipro, Satyam, and TCS listed IT and ITeS sector's attrition level stood at 13 per cent according to Times of India.

OBJECTIVE OF THE STUDY: to understand the retention strategies adopted by various Indian BPO companies (especially the call centers) to know the reason for attrition in employees to know the innovative strategies that these companies can adopt to get a better solution to this Herculean problem that the BPO industry is facing. Though the issues and options analyzed are with respect to Indian service providers, the same may be applied to service providers across the globe as the issues and options remain the same irrespective of place of operation.

SCOPE OF THE STUDY Although the development of motivation model to tackle the problem of attrition in the BPO sector has inputs from a variety of sources including primary and secondary sources, the study will be confined to the data collected from the national capital region of India. Moreover, only selected facets of job characteristics will be considered for the study. Therefore the scope of the study will be limited to the geographical location of the sample size and also to the selected dimensions of personal characteristics.

SIGNIFICANCE OF THE STUDY The significance of the study lies in the detonation of the BPO industry in the recent years. Where on one hand the sector is growing with leaps and bounds, on the other the employee turnover has been alarmingly high, thus costing a lot to the company. The middle level and low level employees are victims of dearth of motivation and employee satisfaction also seems to be brandishing. The study will be an attempt to assess the patterns of attrition in BPO and analyze the relationship among employee motivation, job satisfaction and employee retention, so as to utilize employee motivation to retain employees in an organization. Thus, not only is it significant for academicians but also for professionals who can exploit it to control the employee turnover.

LITERATRE REVIEW With the boat of success steaming ahead in the global markets, India has already become the most privileged destination for Business Process Outsourcing. Employee attrition and candidate absconding are significant business concerns for organizations, one even bigger than attracting talent. A survey of 33,000 employers from 23 countries found that 40% of them had difficulty finding and hiring the desired talent (Manpower Inc, 2006) and approximately 90% of nearly 7,000 managers indicated talent acquisition and retention were becoming more difficult (Axelrod, Handfield-Jones and Welsh, 2001). Employee attrition is a serious issue, especially in todays knowledge-driven marketplace where employees are the most important human capital assets; attrition impacts an organizations competitive advantage. The tangible costs of employee attrition would be the cost of training new employees, the recruitment and selection costs, adjustment time, possible product and/or service quality problems, costs of agency workers/ temporary staff (Morrell, Loan-Clarke, and Wilkinson, 2004a), the cost of training, the cost of loss productivity, the cost of lost knowledge and the cost of the position remaining vacant till a suitable replacement is found. (Sharma 2007). The intangible costs, which may be even more significant than the tangibles, involve the effect of turnover on organizational culture, employee morale, social capital or organizational memory (Morrell, Loan-Clarke, and Wilkinson 2004a). Development, Design and Implementation of an assessment model that can predict EARLY attrition (06 months) risk candidates would results in significant shareholder value by increasing managerial effectiveness, HR organizational productivity and better manpower planning Global Talent Metrics Pvt. Ltd Center for Talent Research Indian Institute of Management, Bangalore 2 The organizational costs associated with turnover in terms of hiring, training, and productivity loss costs can add up to more than 5% of an organizations operating costs according to a study by Waldman, Kelly, Aurora & Smith, 2004).

RESEARCH METHODOLOGY Research Design: An exploratory research design is used for the project

2.7 Techniques Of Data Collection: PRIMARY SOURCE: primary source of data will be Questionnaire SECONDARY SOURCE: secondary data will be collected from Journals Books Websites

QUESTIONNAIRE Employee Attrition Survey 1. Occupation: ________________________ 2. Work environment: A. Excellent B. Good C. Satisfactory D. Bad

3. I feel I am a valued part of my office: A. Strongly agree E. strongly disagree B. somewhat agree C. neutral D. somewhat disagree

5. Communication among staff in this office is effective A. Strongly agree E. strongly disagree B. somewhat agree C. neutral D. somewhat disagree

6. My offices atmosphere is generally friendly A. Strongly agree E. strongly disagree B. somewhat agree C. neutral D. somewhat disagree

7. Morale in this office is high A. Strongly agree E. strongly disagree B. somewhat agree C. neutral D. somewhat disagree

8. There is a spirit of cooperation among staff in this office: A. Strongly agree E. strongly disagree B. somewhat agree C. neutral D. somewhat disagree

9. This office has policies that are supportive of its staff A. Strongly agree E. strongly disagree B. somewhat agree C. neutral D. somewhat disagree

10. My workload and expected completion times are reasonable: A. Strongly agree E. strongly disagree B. somewhat agree C. neutral D. somewhat disagree

11. I receive constructive feedback about the quality of my work: A. Strongly agree E. strongly disagree B. somewhat agree C. neutral D. somewhat disagree

12. This office reasonably accommodates personal needs A. Strongly agree E. strongly disagree B. somewhat agree C. neutral D. somewhat disagree

13. I feel heard when I communicate with others in my office: A. Strongly agree E. strongly disagree B. somewhat agree C. neutral D. somewhat disagree

14. I like my job: A. Strongly agree E. strongly disagree B. somewhat agree C. neutral D. somewhat disagree

15. What is the extent of work pressure at your work place? 1. Heavy pressure 2. Moderate Pressure 3. Light Pressure

16. How long do you travel to work every day? 1. Up to 10 km 2. 11-19 km. 3. > 20 km. 4. Cant say

17. Do you face any problem when to wish to take a break? 1. Yes- Problem to break 2. No - Problem to take break 3. Refused

18. Do you work overtime? If yes, then for how many hours? 1. 1-2 hrs. 2. >2hrs. 3. Refuse

19. Are you paid for the hours you work overtime? 1. Yes 2. No

20. Which is the break where you consume much time? 1.Tea/Coffee/Refreshment break 2.Lunch Break 3.Break fast 4.Dinner 5.All other break reasons 6.Not specified

21. Is your work a reason for your health problems 1. Yes. 2. No.

22. Do you have canteen at your work place? If yes, then how is the quality of the food ? 1. Good 2. Average 3. Poor 4. Cant say

23. I think often about seeking employment elsewhere: A. Yes B. No