Abstract:

In private sector job attrition is a major problem for companies which cost big to the hr
department and overall performance of the company.the training to thenew recruited employes
costs approx 20% of hr funds.and their non-prenoticed resign costs its wastage

This case study refers to wipro technologies ltd.-the leading it company of india about the detail
Study why people leave an orgnisation and its cause.

Introduction
People are the most important part of any organization. An entrepreneur can test the company’s
success by measuring the cumulative experience and creative talent available in the company.
First year (for fresher it can be 2 to 3 years) with the company is learning phase where person
add industrial knowledge and existing competition into his thought process. It will take time to
understand the customer need, the company architecture, the technology used, the products
available and the overall USP of the company. It is always good to build on the existing strength
and new people need to understand the existing strength and add it to their thought dimensions.
In short people are the key.

Companies need to set targets for building people. Sales will happen if people are there.
Company will innovate if creative people stay. Jack Welch of GE once said, “A company’s value
lies between the ears of its employees”. Following table refers the statistics of wipro
technologies about employees who left job

year resignation retirement Death/physical loss

2004-05
2005-06
2006-07
2007-08
2008-09

Every company goes through this problem of losing good and bad people. Bad people leaving
the company is good but person who had worked for more than 1 year with company can’t be
bad. If they were bad why were they tolerated for one year they should have been fired earlier.
Good people can lose the motivation down the line and noone but company (the people
responsible) should take the blame. There can be various reasons but certainly it is not easy to
find and solve but here are some of thoughts from respected company creators Some reasons
why people leave companies

1. Immediate boss is the reason people stay and thrive in an organization. And he ’s the
reason why people leave. says Azim Premji
 2. For greener grass says Dr. Gopalkrishnan, Chairman TATA Sons.
3. Unhappiness in a workplace says Dr. Gopalkrishnan, Chairman TATA Sons.

Azim Premji, Wipro

Every company faces the problem of people leaving the company for better pay or profile. Early
this year, a senior software designer, got an offer from a prestigious international firm to work in
its India operations developing specialized software. He was thrilled by the offer. He had heard a
lot about the CEO. The salary was great. The company had all the right systems in place
employee-friendly human resources (HR) policies, a spanking new office,and the very best
technology,even a canteen that served superb food. Twice he was sent abroad for training. “My
learning curve is the sharpest it’s ever been,” he said soon after he joined.

Last week, less than eight months after he joined, he walked out of the job. Why did this talented
employee leave ? he quit for the same reason that drives many good people away.

The answer lies in one of the largest studies undertaken by the Gallup Organization. The study
surveyed over a million employees and 80,000 managers and was published in a book called
“First Break All The Rules”. It came up with this surprising finding:

If you’re losing good people, look to their immediate boss. Immediate boss is the reason
people stay and thrive in an organization. And he ’s the reason why people leave. When people
leave they take knowledge, experience and contacts with them, straight to the competition.
“People leave managers not companies,” write the authors Marcus Buckingham and Curt
Coffman. Mostly manager drives people away?

HR experts say that of all the abuses, employees find humiliation the most intolerable. The first
time, an employee may not leave, but a thought has been planted. The second time, that thought
gets strengthened. The third time, he looks for another job.

When people cannot retort openly in anger, they do so by passive aggression. By digging their
heels in and slowing down. By doing only what they are told to do and no more. By omitting to
give the boss crucial information. Dev says: “If you work for a jerk, you basically want to get
him into trouble. You don ‘t have your heart and soul in the job.”
Different managers can stress out employees in different ways - by being too controlling, too
suspicious, too pushy, too critical, but they forget that workers are not fixed assets they are free
agents. When this goes on too long, an employee will quit - often over a trivial issue.

Talented men leave. Dead wood doesn’t.

I will not putting my thoughts now but after putting another excerpt by
Dr.Gopalkrishnan,Chairman TataSons. According to him people leave for a greener field or due
to job dissatisfaction.

Mr.Gopalakrishnan succeeds Mr.Ratan Tata as Chairman of Tata Sons Ltd., the holding
company for many of the Tata Bluechips like Tata Steel, Tata Motors,Tata Power, Tata
Chemicals, Voltas, etc., Possibly he is the first non-Tata person to head the Tata Empire. The
below article is really interesting !

The grass isn’t always greener on the other side !!

Move from one job to another, but only for the right reasons. It’s yet another day at office. As I
logged on to the marketing and advertising sites for the latest updates, as usual, I found the
headlines dominated by ‘who’s moving from one company to another after a short stint’, and I
wondered, why are so many people leaving one job for another? Is it passe now to work with just
one company for a sufficiently long period?

Whenever I ask this question to people who leave a company, the answers I get are: “Oh, I am
getting a 200% hike in salary”; “Well, I am jumping three levels in my designation”;
“Well, they are going to send me abroad in six months”.

Then, I look around at all the people who are considered successful today and who have reached
the top - be it a media agency, an advertising agency or a company. I find that most of these
people are the ones who have stuck to the company, ground their heels and worked their way to
the top. And, as I look around for people who changed their jobs constantly, I find they have
stagnated at some level, in obscurity!

In this absolutely ruthless, dynamic and competitive environment, there are still no short-cuts to
success or to making money. The only thing that continues to pay, as earlier, is loyalty and hard
work. Yes, it pays!

Sometimes, immediately, sometimes after a lot of time. But, it does pay.

Does this mean that one should stick to an organisation and wait for that golden moment? Of
course not. After a long stint, there always comes a time for moving in most organisations, but it
is important to move for the right reasons, rather than superficial ones, like money, designation
or an overseas trip.

Remember, no company recruits for charity.

More often than not, when you are offered an unseemly hike in salary or designation that is
disproportionate to what that company offers it current employees, there is always an unseen bait
attached.

The result? You will, in the long-term, have reached exactly the same levels or maybe lower
levels than what you would have in your current company.

A lot of people leave an organisation because they are “unhappy”. What is this so-called-
unhappiness? I have been working for donkey’s years and there has never been a day when I am
not unhappy about something in my work environment-boss, rude colleague, fussy clients etc.

Unhappiness in a workplace, to a large extent, is transient.

If you look hard enough, there is always something to be unhappy about. But, more importantly,
do I come to work to be “happy” in the truest sense? If I think hard, the answer is “No”.

Happiness is something you find with family, friends, may be a close circle of colleagues who
have become friends.

What you come to work for is to earn, build a reputation, satisfy your ambitions, be appreciated
for your work ethics, face challenges and get the job done.

So, the next time you are tempted to move, ask yourself why are you moving and what are you
moving into?

Some questions are:

• Am I ready and capable of handling the new responsibility? If yes, what

could be the possible reasons my current company has not offered me the same
responsibility?
• Who are the people who currently handle this responsibility in the current
and new company? Am I as good as the best among them?
• As the new job offer has a different profile, why have I not given the
current company the option to offer me this profile?
• Why is the new company offering me the job? Do they want me for my
skills, or is there an ulterior motive?

An honest answer to these will eventually decide where you go in your career- to the top of the
pile in the long term (at the cost of short-term blips) or to become another average employee who
gets lost with time in the wilderness?

• .

Employees openion to Why people leave companies?

 Saikat says:

There might be several reasons for leaving a company too. I set my priorities this way:
1. Job satisfaction (includes how good my boss is)
2. Prospect
3. Money

I can even compromise with salary if I like the work and I like to work with my boss. However,
objectives change with time and money also matters when it comes to personal life.

 Anirudh says:

I personally feel money does not matter till a time. I being in that phase of my life only want to
learn new things gain knowledge. And job hopping is not at all bad if done smartly. Money
should not be the only reason for job change.

I also feel that the article by Azim Premji is much more practical then the second one.

Mr Gopalakrishnan says “Deserve Before you Desire”. But what if one doesn’t get the desired
when he deserves that? I guess then he is left with no option but to search for another job

 Arindam Sen says:

Talented men leave. Dead wood doesn’t. –Why do they need to ?

We do agree that money is not the only constraint to judge the higher attrition rate, these days !
There are a few more to add to it as rightly mentioned in these articles. But how do we bring
these managers to justice!
Simply offering them a couple of pointer articles won’t be of any good as they don’t mind
showcasing them for good. The infamous greed to gain corporate power tempts all managers to
hold back worthy people to come up and question their acts in the long run!

It holds good with a former US president’s views about India and Pakistan, that in these
countries you need to pull down others to make way for yourself. And you need to do it by hook
or by crook!

So, the medicine to curb this hankering disease has not yet been discovered…

 IndianPad says:
November 28, 2006 at 6:16 am

Why people leave companies? posted at IndianPad.com…

 Niranjan says:
Ever wondered if each and every person sticks his heels into the ground, how the hell is each
person going to reach the “top” simultaneously??!!! Its the basic funda of the pyramid, the base
is going to be broad, and it’ll reduce as you go up.

 Sukhdev says:

Ever heard of top guys lecturing from the ivory tower? Well, what led them to the ivory tower is
a different question altogether (perhaps sheer hard work, for which i respect the top folks -
perhaps through family name and sucking up, perhaps through just sheer market demand and
environmental leeways - e.g check all those technical managers in your indian software
companies, who have risen quite a number of undue levels just due to Y2K projects!)

Why the company cannot identify the potentials! I would say – guess the potentials to stay in
the business.

As far as pay package is concerned, I will just toss an Idea. Do you know what you are paid? Do
you have a clear idea of what you can do with your one month’s salary (if you do, you had
not been working for the last month.)! Isn’t there any difference between getting paid in
cash, cheque, or direct money transfer!

The next article by Dr.Gopalkrishnan is just a trash.

The first proposition was “Move from one job to another, but only for the right reasons” –
however, throughout the write-up, only the wrong reasons were mentioned. To add, these
Wrong Reasons seemed to me too weak to point to the Right Reasons.

Another comment haunted me a lot “What you come to work for is to earn, build a reputation,
satisfy your ambitions, be appreciated for your work ethics, face challenges and get the job
done.”

This is The Reason for which you come to work – the “state”, when you are “in” is
different. We have different ambitions, but won’t you want to be happy in a place where you
spend more than 50-60% of your time along with another 20% in preparation and travel.

“If you’re losing good people, look to their immediate boss.” – I will not work
under Gopalkrishnan for anything – I am sure about that if he is sure about his ideas.

 AjiNIMC says:
July 24, 2007 at 8:24 pm

Thanks for the comments Kamanashish,

>> The next article by Dr.Gopalkrishnan is just a trash.

Not exactly, this is a different viewpoint. There is time when you shift for money, their is time
when you shift for other reasons, just make sure you know the reason. As long as you don’t
regret for your decision it is good. Some people just leave for money without looking at the
overall gain/loss. I will explain with an example:

This is a true story. Recently one of my best team member (I have great respect for him for his
dedication towards work) knocked at my cabin with a little disappointed face. He told me that he
is leaving me. I then had a talk with him and helped him understand the realities. He was shifting
for a wrong reason, now I see him more committed towards work. When someone is paying you
something extra make sure they are paying it for your talent not for your blood. There are many
who are selling blood for money (outsourcing companies mainly). For them labor is cheap labor
and more blood means more money. So know why you are getting paid extra :).

As far as the immediate boss is concern, it is true as well. There are creative minds which want
to grow and if someone doesn’t allow them then they will break. It is very imp to have good
bosses and good team members. Read http://www.idealwebtools.com/blog/employee-questions/

I think I need to write a post on this topic.

 Manish Mohan says:

October 27, 2007 at 6:53 pm

Are job sites encouraging attrition?

http://manishmo.blogspot.com/2007/06/are-job-sites-encouraging-attrition.html

 Amit Bhatia says:

January 28, 2008 at 2:57 pm

I agree with both of their viewpoints, Aziz Premji and GopalKrishnan. They both share the same
story from different perspectives. The reason for their difference is that Aziz Premji was already
a CEO managing the company while Gopalkrishnan had to make his way up on the corporate
ladder. Aziz premji’s view is something like an observer outside the room who doesn’t know
exactly what is going in employee’s mind. He is only concerned with the what could have caused
this and how he should analyze by breaking down the components associated with it. So, the
manager’s role in employee’s success at the company has become a very crucial component
because of its direct relationship. While, on the other hand looking at Gopalkrishnan’s statement
talks about the mindset which employee should have while he/she is working in the organization.
He talks about the actual scenario because he has faced them all firsthand. He talks from the
perspective of the person who is inside the room rather than just cause-and-effect relationship
between boss and the employee.

If we are looking for the career/skill building in the same company, then we could follow
Gopalkrshnan’s advice else if we want to be at mercy of company’s manager for success then we
could go for Premji’s advice. Finally, it depends on us who we are and what are individual
personalities are.
 SUSHAMA NAYAK says:

Good things breed good work.Basically,all people like good things.

To an employee,a company is good if it breeds good things for its employees.For increasing
production and productivity of a company,negative punishment will never breed good result for
the company.If a company like wipro forces 500 employees to leave the job on the pretext of
performance,what more could be thought from the company.The real reasons might be to reduce
expenditre to cover up the incompetancy of the HR management wipro has created black spot on
it by removing its own staff on a trivial issue.Positive actions will motivate the morale of the
staff to better effectiveness.It is a fact that if employees are motivated they can do wonders not
only for the employer but for themselves also.Companies in Japan hves developed rapidly due to
their positive thinking,not taking action like TCS.,IBM,WIPRO.These companies should learn
positive thinking and employee freindly techniques.Mahatma Gandhi became famous not by
showing negative thinking.So,it is my earnest request to I.T.Companies to adopt and nurture
good HR techniques for employees.

conclusion

1) Money

everybody loves money but at the dawn of your career I just go only by money I look for the
future prospects like at the time of recruitment this company was offering lowest salary as
possible in our campus placement but I chose this b’coz of Brand name and and the
responsibilities, learning and kind of market exposure they promised me during the interview and
their presentation, but after six months I’m feeling lost and cheated by the company b’coz the
kind of work they offer suits 12th pass clerical JOB. with no time for learning only they keep us
busy on work that not at all add value to your MBA in marketing degree. so I’m not leaving this
company for money.

2) Job satisfaction (includes how good my boss is)

I give 10/10 to Job satisfaction if person would be satisfy with the job he would have dedicate
my whole life to this company, but currently he just want to tell that there is no such thing as Job
satisfaction in this company everybody wants to leave this company b’coz they are not
satisfy with the kind of work they are doing.

3) Boss Factor – Job satisfaction and kind of Boss is inter linked

, because if your boss is understanding and knows how to get work done by you with happy
ending and if he knows how to groom a new comer manager then you will be very happy with
him, -
- but if do not remember your name and you have to remind him 100 times that sir Iâm Rajesh
Rana not him
- if he knows what is the exact reason of your failure instead of blaming even his failure upon
you,
- if he knows you constraints properly and accordingly keep his expectations,
-Instead of keeping eye at his and your work he delegate his whole work upon you and at the end
of the month wants the results and if even any single thing goes wrong he blames that “Tum
logo ne mujhe Barbad kar Diya…” then it’s unfair.

4) Work Environment

this includes Boss, colleagues, subordinates, other parallel departments and your clients –
Work environment is another factor I’m leaving this job, I want to work in a professional
company where work is done on a professional way not like my company where you have beg
others to do their own job in proper manner, (what the hell) life become hell in such a company
where other employees don’t do their work properly. It’s like a Government office type
environment here.

5) Indian companies are not there at world’s TOP 100 companies – this is just because
what I’ve just mentioned and lack of team work , coordination and enthusiasm to give best
output among employees specially at manufacturing unit,