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This chapter consists of a brief description of the title of the project, the
objective of the study and the scope of the study.


Title: Analysis of Attrition rate in Max Retails


Following is the objective of the study:-

The title of the project report suggests that the research intends to study
the Analysis of Attrition Rate in Max Retail Division


o To determine effect of attrition on the business.

o Determination of solutions to avoid or to control attrition in the stores.
o To understand the extent of job satisfaction among the employees.
o To suggest proper measures.

Keeping in mind the overall objectives it is necessary to adopt
primary as well as secondary sources.

The primary source will be by taking the actual facts and figures
from the Head HR of the company MAX that is from the Regional
Office (RO). By analyzing the data we can arrive at a proper pictorial
representation in the form of chart diagrams.

Generally it has been seen that employees who work in
organisations, expect the management to realise their full potential. In
spite of this, there are situations when either the employers ask his
employees to leave, or employees themselves leave the organisation.
The problem of attrition of employees bothers both-the employer and
the employees. At the same time employees attrition is unavoidable.
This is a very big challenge for all the sectors of the economy. Analysts
say that attrition rates vary between 20-40% in some organisations.
In India, the average attrition rate in the BPO sector is
approximately 30-35%. This is far less than the prevalent attrition rate
in the US market (around 70%). One of the reasons for high attrition
rate in this sector is, individuals are not able to take the pressure of
work, the toughness of the job and timing is not adequately conveyed.
Motivational training is still to evolve in this industry.
Indian Pharmaceutical industry is one of the fastest growing
knowledge based sector with annual attrition rate of near about 30-35%
compared to the global Pharmaceutical attrition rate of 10-12% per
annum. Current statistics show that higher attrition rate problem exists
in Marketing and R$D department. Major reasons for high attrition
rate stated by employees are poor management, uninterested job, and
lack of motivation, job lacking opportunity for future advancement and
inadequate salary or compensation plan.
The Indian FMCG sector demonstrated a steady rise in the
attrition rate over the past three years. The attrition rate was 9.8% in
2004. It moved to 10.8% in the 2005. In 2006, the attrition rate became
17%. The major companies in FMCG sector are Asian paints,
Britannia, Colgate, Cadbury, ITC, Marico, Nestle, P&G, Palmolive,
Pepsi, etc. In view of the above, this study has been conducted for one
sector of the economy-Retail sector. Currently India is the fifth largest
retail market in the world. The market size in 2008 was estimated at US
$ 511. Retailing has played a major role the world over increasing
productivity across a wide range of customer goods services.

From the Table: 1, below, it is clear that most of the sectors have an
attrition rate of less than 50%, whereas in the case of retail and voice
based BPO it is 50%.
High attrition rate increases the training cost, increases human
resources, recruiting and productivity costs. They also increase the
prospect of customer service complaints or quality problems.
Employees leave their jobs for a number of reasons including: wanting
more money, poor working conditions, irregular working hours, lack of
advancement, opportunities etc.

Table:-1 Attrition rate in different sectors

Attrition rate is good as long as the rate is at normal level. This
will help the organisation to get new blood into the organisation and for
the organisation to develop. But it becomes a problem when the
attrition rate is abnormal. Therefore, HR Department has the most
crucial role to play in any organisation. At the time of conducting
interviews, HR personnel try to bring candidate to the right job. Similar
is true when the attrition rate is abnormal, so they have a very crucial
role to play.

The Retail Sector of Indian Economy is going through the
phase of tremendous transformation. The retail sector of Indian
economy is categorized into two segments such as organized retail
sector and unorganized retail sector with the latter holding the larger
share of the retail market. At present the organized retail sector is
catching up very fast. The impact of the alterations in the format of the
retail sector changed the lifestyle of the Indian consumers drastically.
The evident increase in consumerist activity is colossal which has
already chipped out a money making recess for the retail sector of
Indian economy. With the onset of a globalized economy in India, the
Indian consumer's psyche has been changed. People have become
aware of the value of money. Nowadays the Indian consumers are well
versed with the concepts about quality of products and services. These
demands are the visible impacts of the Retail Sector of Indian
Economy. Since the liberalization policy of 1990, the Indian economy,
and its consumers are getting whiff of the latest national &
international products, with the help of print and electronic media. The
social change with the rapid economic growth due to trained personnel,
fast modernization, and enhanced availableness of retail space is the
positive effects of liberalization. The growth factors of the retail sector
of Indian economy:

Increase in per capita income which in turn increases the household

Demographical changes and improvements in the standard of living
Change in patterns of consumption and availability of low-cost
consumer credit
Improvements in infrastructure and enhanced availability of retail space
Entry to various sources of financing

The infrastructure of the retail sector will evolve radically. The

emergences of shopping malls are going steady in the metros and there
are further plans of expansion which would lead to 150 new ones

coming up by the year 2008. As the count of super markets is going up
much faster than rate of growth in retail sector, it is taking the lions
share in food trade. The non-food sector, segments comprising apparel,
accessories, fashion, and lifestyle felt the significant change with the
emergence of new stores formats like convenience stores, mini marts,
mini supermarkets, large supermarkets, and hyper marts. Even food
retailing has became an important retail business in the national arena,
with large format retail stores, establishing stores all over India. With
the entry of packaged foods like MTR, ITC Ashirwaad, fast foods
chains like McDonald's, KFC, beverage parlors like Nescafe, Tata Tea,
Cafe Coffee and Barista, the Indian food habits has been altered. These
stores have earned the reputation of being 'super saver locations'. With
the arrival of the Transnational Companies (TNC), the Indian retail
sector will confront the following round of alterations. At present the
Foreign Direct Investments (FDI) is not encouraged in the Indian
organized retail sector but once the TNC'S get in they would try to
muscle out their Indian counterparts. This would be challenging to the
retail sector in India.

The future trends of the retail sector of Indian economy:

The retail sector of Indian economy will grow up to 10% of total

retailing by the year 2010.
No one single format can be assumed as there is a huge difference in
Cultures regionally.
The most encouraging format now would be the hyper marts
The hyper mart format would be further encouraged with the entry of the

Retailing consists of the sale of goods or merchandise, from a fixed

location such as a department store or kiosk, in small or individual lots
for direct consumption by the purchaser. Retailing may include
subordinated services, such as delivery. Purchasers may be individuals
or businesses. In commerce, a retailer buys goods or products in large
quantities from manufacturers or importers, either directly or through a

wholesaler, and then sells smaller quantities to the end-user. Retail
establishments are often called shops or stores. Retailers are at the end
of the supply chain. Manufacturing marketers see the process of
retailing as a necessary part of their overall distribution strategy. Shops
may be on residential streets, shopping streets with few or no houses,
or in a shopping centre or mall, but are mostly found in the central
business district. Shopping streets may be for pedestrians only.
Sometimes a shopping street has a partial or full roof to protect
customers from precipitation. Retailers often provided boardwalks in
front of their stores to protect customers from the mud. Online
retailing, also known as e-commerce is the latest form of non-shop
retailing. Shopping generally refers to the act of buying products.
Sometimes this is done to obtain necessities such as food and clothing;
sometimes it is done as a recreational activity. Recreational shopping
often involves window shopping (just looking, not buying) and
browsing and does not always result in a purchase. Most retailers have
employees learn facing, a hyper real tool used to create the look of a
perfectly-stocked store even when it is not.

Retail industry has brought in phenomenal changes in the whole
process of production, distribution and consumption of consumer
goods all over the world. In the present world most of the developed
economies are using the retail industry as their vital growth instrument.
At present, among all the industries of U.S.A the retail industry holds
the second place in terms of employment generation. In fact, the
strength of the retail industry lies in its ability to generate large volume
of employment. Not only U.S but also the other developed countries
like U.K, Canada, France, and Germany are experiencing tremendous
growth in their retail sectors. This boom in the global retail industry
was in many ways accelerated by the liberalization of retail sector.
Observing this global upward trend of retail industry, now the
developing countries like India are also planning to tap the enormous
potential of the retail sector. Wal-Mart, the world's largest Retailer has
been invited to India. Other popular brands like Pantaloons, Big
Bazaar; Archies are rapidly increasing their market share in the retail
sector. According to a survey, within 5 years, the Indian retail industry
is expected to generate 10 to 15 million jobs by direct and indirect
effects. This huge employment generation can be possible because of
the fact that being dependent on the retail sector shares a lot of forward
and backward linkages.
Emergence of a strong retail sector can contribute immensely to
the economic development of any country. With a dominant retail
sector, the farmers and other suppliers can sell their produce directly to
the major retail companies and can ensure stable profit. On the other
hand, to ensure steady supply of goods, the retail companies can inject
cash into the production system.

Land Mark Group:

Micky Jagtiani

Founder and Chairman of the Land Mark Group

The Landmark group is one of the largest retailers in Middle

East, India & China. It was started in the year 1973, in Dubai with the
mission of becoming the foremost retailer in the Middle East, by
providing customers with a large variety of high quality products. From
a single childrens store in Bahrain, the Landmark group has expanded
exponentially to 600 stores across 10 countries with retail staff strength
of 20,000 & a turnover of 1 billion USD. The highlights of the
Landmark Group are its product & constant innovation. Today the
Business Model is focused on to:

Core Business : 5 fully developed Business including fashion, footwear,

children, home, health & beauty
Value Business : Family value stores including Apparel & Electronics
Brand Business : A portfolio of International brands
Hospitality Business : Budget hotels
Support Business : Leisure, pharmacy, spa, fitness centre & restaurants


In India it has revolutionized the concept of retailing by

offering a truly international shopping experience for discerning
shoppers with a youthful & vibrant LIFESTYLE. Launched in
Chennai in 1999 Lifestyle today is one of Indias largest department
store chains with over 4, 50,000 sq.ft of shopping space & 11 stores
across Chennai, Hyderabad, Bangalore, Delhi, Mumbai, Ahmedabad &
Pune with a total team size of over 2400. The entire retail experience
revolves around its core business Concepts which has been designed
& engineered to suit evolving customer needs & lifestyle. The five
concepts of Lifestyle stores are:

Infant basics, clothing,
toiletries, toys &
nursery products

Furniture & household


Footwear & Leather


Fashion Apparel Brand

Value department store

encompassing apparel,
footwear, household &

Cosmetics, Fashion accessories

& gifts


Look good, Feel good

Max is a fashion and footwear retailer in the Value segment.

It retails its own label clothing for men, women and children, as well as
footwear and house ware. Max is opening around 100 stores across
India, a division of Lifestyle International Pvt Ltd., which is a part of
US $ 1 billion Landmark Group. Stores are already opened in Indore,
Ahmedabad, Bangalore, Delhi, Agra, Hyderabad, Lucknow, Mumbai
and Noida. The Max India proposition is:

Core & contemporary merchandise at value pricing

Wide range in mid segment-apparel
Quality retail ambience & service

The Product Mix of Max India consists of: Men, Women, Ethnic,
Inner, Kids, Footwear, and Accessories & Home Dcor

The Price Segment of Max India falls between Economy & mid- price.
A good shopping experience and a great value at Max translate into
making customers Look good and Feel good to the maximum.

The core values:

Passion for Excellence: We are committed to setting industry

benchmarks-be it our product or practices. Our doctrine is to strive and
maintain the lead in whatever we do, with strict adherence to quality
and delivering value for money.

Integrity in everything we do: Our business is driven by trust, strong

ethics and mutual respect.

Empowering people to strive and deliver: Our core strength is our

employees. We believe in giving our personnel the opportunity and
responsibility that are integral to their professional development and
our Groups success.

Adapting to changing market and customer needs: We keep

ourselves abreast with industry trends and dynamic consumer
preferences. Our offerings keep evolving to address changing and
discerning consumer needs.

Micky Jagtiani, Chairman

Statement of purpose:
Creating exceptional value for all those whose lives we touch.

To be recognized as an international, diversified retail conglomerate

that encourages entrepreneurship and which consistently delivers
exceptional value to our customers and business partners. We believe
in delivering unmatched values- tangible and intangible-for all those
whose lives we touch.

Micky Jagtiani, Chairman

Envisioned statement:

To be among the top 100 retailers worldwide, with a top 20 ranking in

profitability by 2015.

Micky Jagtiani, Chairman


To become the leading Retail Group in the Middle East and

India; maintaining our constant growth through our core values and
international business.




Human resource management (HRM) usually means managing men or
people. HRM involves all managerial decisions, policies & practices
that influence human resource directly.
Let us understand it by dividing the term into its subparts.
Human people, us
Resource assets/cost of organizations
Management co-ordination & control to achieve set goals.

According to Wendell L French HRM refer to the philosophy, policies
procedures & practices related to the management of people within the
According to Leon C Megginson the term human resources can be
thought of as the total knowledge skill, creative abilities, talents &
aptitudes of an organization, workforce as well as the value, attitudes &
beliefs of the individuals involved.

HRM is relatively a new term, emerged during the 1970s. Many people
continue to refer to the discipline by its order, more traditional titles,
such as personnel management or personnel administration.
Experts of HRM in our country have tried to chronicle the growth of
the subject only since the 1920s. This was the period when state
intervention to protect the interests of the workers was felt necessary
because of the difficult condition which followed the First World War,
& the emergence of the trade unions.
The Royal Commission (1931) recommended the appointment of the
labour welfare officers to deal with the selection of the workers &
settle their grievances.

The Factories Act, 1948, made appointment of welfare officers
compulsory in the industrial establishments employing 500 or more
workers each.
In 1990s, the emphasis shifted to human values & productivity through
people. Thus, beginning in the 1920s, the subject of HRM has grown
into a matured profession.
Nature of H.R.M
HRM is concerned with the people dimension in organizations.
o Organizations are not mere bricks, mortar, machineries or inventories.
They are Peoples.
o HRM involves the application of management functions & principles
such as developing, maintaining & remunerating employees in
o Decision made must influence the effectiveness of an organization.

HRM objective are four fold- societal, organizations, functional &
o Societal Objective: To be ethically & socially responsible to the needs
& challenges of the society while minimizing the negative impact of
such demands upon the organization.
o Organizational Objectives: To recognize the role of HRM in bringing
about organizational effectiveness.
o Functional Objective: To maintain the departments contribution at a
level appropriate to the organizations needs.
o Personal Objective: To assist employees to achieve their personal
goals. At least insofar as these goals enhance the individuals
contribution to the organization.


To understand attrition analysis, one has to understand what attrition is.

Attrition, in simple industry terms is the number of people who quit the
services of an organization voluntarily. Attrition analysis, therefore, is
a method of finding out reasons as to why employees quit, what are the
contributing factors to it, what could have been done by the
organization to retain them, what can be done to prevent future attrition
for similar reasons, etc.

To do attrition analysis, there has to be an exit interview or discussions

(either formally or informally, but most organizations have a formal
process to do it). During exit interview/discussions, every employee
who is quitting the organization is asked about the reasons of his
leaving, what did go well and what did not, what the organization
should have done to retain him/her. When you compile the data of
every employee who quit the organization over a period of time, you
compile the reasons and see what the major reasons are. Based on that,
you can do your analysis and recommend corrective and preventive


Attrition analysis is a study in which an analysis gives the data on what

is the current attrition trend in the company. Its an analysis done by

taking time, manpower strength & no. of people resigned into

consideration to derive the final outcome.

i.e., Attrition % = (No. of separations/Total employees) *100


In order to understand this, it is important to question the very validity

of the data that is given by the employees it is only common sense
that an employee would not reveal the correct reason for leaving the
company at some point of time thus any action taken by the
organization to prevent attrition by altering the factors does not have
any effect, because perhaps the data itself is not valid.


Sudipta Dev reasons out why the rate of employee turnover in an

organisation does not always show the whole truth.

The high attrition rate in the IT industry has always been its greatest
concern and a subject of much analysis and debate. Organisations use
different methodologies for calculating their turnover rate. It is a known
fact that turnover calculation is a grey area which does not always depict
the true picture. While a few techniques are common, there are no proven
theories. Further, the approach to this calculation might vary from
organisation to organisation. Disclosure of the figure not only has a direct
impact on the business but also affects employee morale and
productivity. Significantly, it might also trigger a chain reaction - a high
attrition rate will lead to more people leaving the organisation, while a
lower rate will act as a retention strategy. It is therefore not surprising
that most industry observers are sceptical when organisations disclose
their employee turnover.

A high attrition reflects poorly on an organisations ability to hold on to

its people. Monisha Advani, CEO, Emmay HR, says that attrition is
unfortunately viewed as a management flaw when in fact it could well be
a recruitment error. In some cases it can be simply seen as an
organisations competitor appreciating its quality of hires, and its output,
post-training - almost a backhanded compliment.

Ideally, attrition should be calculated on a monthly basis for companies

that have over 50 employees for the first five years of its business.
Subsequently, a quarterly index should be applied till a companys 10th
anniversary. After this, annual attrition figures should be measured and

accounted for. This is the optimum within the services industry as
companies tend to have different challenges at different stages of their
business lifecycle; also, maturity achieves stability around a companys
10th anniversary, opines Advani.

Different theories

The attrition rate remains a debatable area as there is no standard formula

to calculate it. This can be described to many factors.

The employee base changes each month. So if a company has 1,000

employees in April 2004 and 2,000 in March 2005, then they may take
their base as 2,000 or as 1,500 (average for the year). If the number of
employees who left is 300, then the attrition figure could be 15 percent or
20 percent depending on what base you take.
Many firms may not include attrition of freshers who leave because of
higher studies or within three months of joining.
In some cases, attrition of poor performers may also not be treated as
Essentially, the attrition number is also a PR or stock/analyst statement
and is prone to dressing up.

Companies It is Unfortunate
do not realise imperative to ly, attrition
that hiding evolve the is viewed as
their attrition science of a
rate is never measurement managemen
a solution for before the t flaw when
reducing the measure in fact
same itself it could
well be a
Bijayinee Harish recruitment
Patnaik Bhattiprolu error
HR Head Director,Sales Monisha
Mahindra Kenexa Advani
Special Technologies CEO
Services Emmay HR

Varied theories are also applied as organisations like to brand themselves

differently as far as their HR and recruitment strategies are concerned.
Explains Advani, Each company positions itself uniquely in a common
market place by claiming to have exceptional HR policies, procedures
and management styles that directly impact retention or attrition; hence
the absence of a homogenous system. Also, in situations where a
common attrition measurement formula is applied, companies find a way
to justify their results to position their statistics differently from their
peers on account of having different operating practices.

However, Anil Noronha, Director, HR, Indian Subcontinent, Onward

Novell Software (I) states that most companies use a fairly standard
method - the number of employees who left during the year divided by
the average number employed for that year.


The attrition rate that is generally disclosed by most organisations does

not always show the correct picture. Nerurkar acknowledges this to be
true. I agree that the figure has a direct impact on stock markets,
employee morale and customer confidence. There is too much at stake
and neither the US GAAP (Generally Accepted Accounting Principles)
or SEBI requires that this be calculated in a particular way.

The attrition rate has always been a sensitive issue for all organisations as
it can have major fallout on the bottom-line. Kranti Munje, Senior
Manager, HR, Bristlecone India furthers, This is because the attrition
rate is an indicator of many things intrinsic to the organisation, and
revealing it may affect it negatively. In fact at times disclosing this data
can be like a self-fulfilling prophecyif you reveal that the attrition is
high, it may actually become higher.

Attrition rate is Attrition figure

an indicator to has direct
many things impact on
intrinsic to the stock markets,
organisation, employee
and revealing morale and
it may affect it customer
negatively confidence.

Kranti Munje Suhas

Senior Nerurkar
Manager, HR President
Bristlecone TVA Infotech

It is also not uncommon to find companies proclaiming an attrition rate

that is much less than that of others in the industry. Remarks Bijayinee

Patnaik, HR Head at Mahindra Special Services Group (MSSG),
Companies must be projecting their attrition rate incorrectly because it
tends to affect their brand image both internally and externally.
Internally, it sends a wrong signal to their employees and the board of
members; externally, it can affect the company in various ways such as
developing a bad image or dissuading fresh talent from joining. She
regrets that companies do not realise that hiding their attrition rate is
never a solution for reducing the same


While there are many techniques for calculating the cost of turnover, the
following is one of the best. It takes into account expenses involved to
replace an employee leaving an organization.

A. Recruitment cost
The cost to your business when hiring new employees includes the
following six factors plus 10 percent for incidentals such as background

Time spent on sourcing replacement

Time spent on recruitment and selection
Travel expenses, if any
Re-location costs, if any n Training/ramp-up time
Background/Reference Screening

Additionally, for the positions that are billable, there is a lost opportunity
cost. This can be done using the revenue factor.

B. Training and development cost

To estimate the cost of training and developing new employees, start off
by looking at the cost of new hire orientation. This will mean direct and
indirect costs, and can be largely classified under the following heads:

Training materials
Employee benefits
Trainers time.

C. Administration cost
Additionally, you may want to measure the per-employee cost to:

Set up communication systems

Add employees to the HR system
Set up the new hires workspace
Set up ID-cards, access cards, etc.

On the softer side, to estimate the learning curve or

productivity cost, estimate the average amount of time it takes an
employee in a new position to get up to speed and produce at the average
rate for the organization. If it takes a new employee six months to reach
average productivity, the average productivity loss is 50 percent. Use
your annual revenue factor result and multiply it by the productivity loss.

The result of these costs (and an additional 10 percent to cover other

hiring costs such as background checks, credit checks, drug screening,
and other administrative costs) can give you fairly accurate calculation of
turnover cost.


Hiring individuals who are truly fit to succeed in the position

for which they are hired will dramatically increase the chances of that
employee being satisfied with his or her work, and remaining with the
company for an extended period of time.
Communication of employees roles, job description and the
responsibilities within the organisation, new policies will help to retain

Participative Decision Making - It is incredibly important to
include employees in the decision making process, especially when
decision are related to employees. This can help to generate new ideas
and perspectives management might never have thought of.
Sharing of knowledge with others - Allow the members to
share their knowledge with others. This helps in retention of
information. This also lets a team member know that he is valuable
member of the organisation.
Pay Package - Any employee wants to be appropriately paid
and fairly for the work he or she does. For, this conducts a research to
find out the pay package in other similar type of organisation at
regional as well as at national levels.
Balance Work and Personal Life - No doubt family is
exceptionally important to employees. When work begins to put
pressure on one family, no pay package will keep an employee in the
organisation. Therefore, there should be a balance between work and
personal life. Small gestures like allowing an employee to take an
extended lunch once a week to watch his sons cricket game will result
in loyalty and helps to retain the employee.
Organisation Culture - Try to select the candidates who
believe in the organization culture and adopt with ease to organisation
Exit Interview with the employees who are leaving the
organisation will help the organisation to find out the reasons why
employees are leaving the organisation. This will also help to find out
any drawbacks in the organisation

This chapter deals with research design and the description of methods
used to obtain primary and secondary data.

The research design for the present study has the following steps
o Based on the needs of the organization and procedure a list of excel
sheet was provided for the data to be analyzed.
o The excel sheet consisted the data of the employees who has resigned.
o The data was of the employees who left the organization in between
April 2010 to February 2011.
o The data was then analyzed by using the present figures and reasons.
o The tabulated data was then represented using various styles of graphs.
o Based on data analysis and its interpretation finding conclusions were
o Based on this findings and conclusions recommendations and
suggestions were made.


Following are the sources used to obtain primary data.
o Excel Data Sheet directly from the Head HR of the Company

The secondary data required for the research consisted of literature that
composed the theoretical background necessary for the research.
Following are the secondary data used in the research.
o Company profile - for this the main source was LIFE STYLE website
and company manual.
o Review of literature the main source was books and websites. For
books libraries were visited and books referred.
o Books
o Internet


This chapter deals with data presentation and analysis.

No of employees
R2 R3 R4 R5 R5-1 R5-2 R6-1 R6-2


From the above graph it is being seen that from the grade R3 highest
number of employees has left the job. The reason behind it was mostly
either because of their personal reasons; further education, better
prospects or some of the reasons were that they went absconding. The
least removal of employees is from R6-1 grade, so comparatively with
the other groups in the grade compared with grade R3 the employees in
the other grade are satisfied with their job.

Series 1


From the above graph it can been seen that the highest number of
employees leaving their job are from Customer Relationship Executive
position and the next is from Senior CRE and Trainee CRE position so
the firm needs to take more consideration on these 3 positions because
these are the people who interact between customer and company.
Therefore, the company needs to focus more on attrition control and
also suggestion made by the employees for the betterment and to
control the attrition. This may be the case, since retail sector is
booming these days and there are huge competitors are entering into
the competitive market and it is being a growing sector. Therefore,
prospects and better salary package are being offered by the
competitors. The competitors poach employees from the same market
and want more experienced people and it may be one of the very strong
reasons behind attrition.






40 No of employees



From the above graph it can been seen that from Mumbai location most
of the employees have left the job since in Mumbai lot of retail stores
have been launched so employees take experience from one company,
leave the job and go away to another so satisfaction level of an
employee should be also considered and the following location is
Indore where there is high attrition.

5 Series 1

From the graph it can be seen that from Inorbit store has highest
number of employee leaving the job and the reason behind it is that
employees go absconding. The second reason is for further studies and
lastly for better prospects and the next store is from Indore so from
these two very important stores of Max Retail as per my knowledge the
highest number of employees leaving the job. Highest concentration
should be on these three stores so that the attrition rate does not affect
the sales and profitability of the company.




No of employees


From the above graph it can been seen that the highest number of
employees have left in the months like Jan, May, September and
December these shows that they have worked mostly in the gap period
of 4 to 5 months and then they have left so mostly in the job of
customer relationship it is found that mostly employees are not that
highly dedicated to take this as their career because of looking into
salary issue and the designation increment issue. Since it is been done
at a very huge gap. But the growth opportunity is there in this sector
but the employees should be taken into belief that depending on their
performance they would have a better opportunity further so that their
attrition rate would decrease.

Series 1


From the above graph it is been that the highest reason is because the
employees have gone absconding and the next highest reasons are
because of the relocation and for better prospects so the reason behind
the absconding should be analyzed like either the employees were not
performing properly or they may be there just to take some kind of


o Communication channel is effective in this organisation; if there is any

problem, the employee can openly discuss with the seniors to find a

o Newly joined employees are not satisfied with induction and

orientation programme.

o Employees are not satisfied with reward system because there is no

consistency in rewarding the staff.

o Some of the employees feel that there is no growth in the organisation.

o Floor staff feels that the daily meetings which are target oriented is
unnecessary and only increases stress in their life.

o Main reasons for employees leaving the organisation is inadequate

remuneration, working conditions like more working hours for the
same salary as compared to other organisations.

o Employees are not satisfied with leave policies because many times
their weekly offs are cancelled.

o There is no sufficient space for conducting meetings, eating food,

training and orientation program


o Attrition rate is good only when it is balanced. Attrition rate should be

maintained by providing adequate and competitive remuneration and
proper working hours to the employees.

o Stay-in interviews and regular counselling and mentoring help to find

out, whether the employee is satisfied with the working condition.

o Continuous development of the employees by way of trainings should

be implemented to retain the employees.

o Proper performance appraisal techniques should be implemented in the

organisation so that employees good performance is duly recognised
and rewarded. This motivates others to perform better.

o Proper training and orientation programs must be provided to the

employees about the product whenever needed so that they feel
confident in doing their job and be able to communicate to the

o There should be proper working hours for the employees and adequate
space should be provided to have their lunch, conduct meetings and
training programs.

o The employers need to handle employees in such a manner that they

dont get frustrated and over burdened by the work.

o Employee engagement is one of the options to reduce their stress and

to make them feel as a part of the organisation, also better training and
development can be provided. This can be done by way of conducting
cultural programs every week, sports, celebrating birthdays etc


At the end the conclusion says that attrition rate is observed

almost everywhere. The only main thing is that we should know the
proper tactics how to tackle it in a proper way.

For this we can engage the employees in a very good working

environment so that there will be very good human touch i.e. good
relations between the employee and the company.

Attrition rate is an indicator of many things intrinsic to the

organisation, and revealing it may affect negatively. So proper and
utmost care should be taken in order to avoid such situations in future.

o Human Resource Management K. Aswathappa.
o Personnel and Human Resource Management P. Subbarao