A

DISSERTATION REPORT ON

“A Study on the Factors Affecting the Attrition Rate in IT Sector India”

SUBMITTED BY

KIRAN PANDURANG BHAGAT

UNDER THE GUIDANCE OF

PROF. ANGSHUPRIYA DATTA

SUBMITTED TO

SAVITRIBAI PHULE PUNE UNIVERSITY

In the partial fulfillment of the requirements for the award of

Masters in Business Administration (MBA)

Through

Dr. D. Y. Patil Unitech Society's

Dr. D. Y. Patil Institute of Management & Research,
Sant Tukaram Nagar, Pimpri, Pune – 411018

BATCH 2018 - 20

0
 STUDENT DECLARATION

I, the undersigned Kiran Pandurang Bhagat, a student of Dr. D.Y. Patil Institute of
Management and Research, Pimpri hereby declare that the dissertation report entitled “A
Study on the Factors Affecting the Attrition Rate in IT Sector India” is a genuine and
benefited work presented by me under the guidance of Prof. Angshupriya Datta.

It is hereby declared that all the facts and figures included in the dissertation is a result of my
own research and investigations including formal analysis of the entire project work and the
same has not been previously submitted to any examination of this University or any other
University.

The project is submitted to Savitribai Phule Pune University in the partial fulfillment of
requirement for the award of degree of Master of Business Administration (MBA). This
declaration will hold good and in my wise belief with full Consciousness.

DATE - Signature

PLACE - Kiran Pandurang Bhagat

1
 ACKNOWLEDGEMENT

I would like to express immense gratitude towards our institution DR D.Y. PATIL
INSTITUTE OF MANAGEMENT AND RESEARCH , PIMPRI , PUNE which created a
great platform to attain the managerial and technical skills in the field of MBA , thereby
fulfilling our most cherished goal. I would also like to acknowledge my gratitude to Dr.
Rakesh Dholakia (Director of DYPIMR) and Dr. Meghana Bhilare (HOD) to motivate me a
lot in carrying out this project.

I am also desirous of mentioning my profound indebtedness to my mentor Prof.

Angshupriya Datta for her valuable guidance and encouragement given during the period of
my project work. It would have been difficult to achieve the results in such a short span of
time. She has always shown me the right direction for going ahead with the project. Her
suggestions were really helpful for me for the completion of the project.

I am also indebted to my parents and friends for their support for completing this project
successfully.
 EXECUTIVE SUMMARY

The fastest growing industry is the Information Technology Industry. The Indian IT industry
is growing, although faster and has gained a lot of importance in the global market. The
Information Technology industry in India is made up of software industry and the ITES
industry. Both of them have added a lot revenue and advantage to the Indian economy.
Technology has proven to be quite beneficial for the citizens of the country. With the
development of technology in the world, it has become easy and efficient to be connected
every time with others.

Employees are the most valuable assets of an organization. It is they who add value to the
organization in terms of quantity and quality as well. To find, attract, develop and retain the
right talent is a major part of management. Therefore, it is indispensable to maintain a
permanent and promising workforce; which over the years has become a tough task for
employers and thereby increased attrition in the organizations.

Attrition is a major problem which highlights in all the organizations. “Attrition is said to be
the gradual reduction in the number of employees through retirement, resignation or death. It
can also be said as Employee Turnover or Employee Defection”. Whenever a well trained
and well-adapted employee leaves the organization, it creates a vacuum. So, the organization
loses key skills, knowledge and business relationships. Modern managers and personnel
administrators are greatly interested in reducing Attrition in the organization, in such a way
that it will contribute to the maximum effectiveness, growth, and progress of the
organization. Attrition costs a lot. It's one of the largest costs in all types of organizations, yet
it's also one of the least understood. Organizations need to find new approaches to retain the
most effective manpower. Retaining the employees involves understanding the intrinsic
motivators as individuals differ a lot. Retaining employees is a critical and ongoing effort.
Staff requires reinforcement, direction and recognition to grow and remain satisfied in their
positions. Managers must recognize this and understand that establishing such fundamentals
demonstrates their objectives to support nature and motivate their employees.
This study is an outcome of the topic “A Study on the Factors Affecting the Attrition Rate in
IT Sector India”.

This research is an attempt to find out the causes of attrition from different dimensions and
have proposed some ways in which this issue can be addressed. It undertakes the effect of the
same on employer and employee both. In this research, I have made an attempt to bring out
employee retention approaches, strategies for retention. Following this some strange reasons
for attrition have been discussed in this regard. The positive side of attrition has also been
discussed upon. Further, the remedial measures have been discussed herein. Managing
attrition is not just a 'nice thing to do, it is the route to survival.
 INDEX

S.NO. CHAPTER PAGE NO.

1. INTRODUCTION 6-9

2. OBJECTIVES 10-11

3. SCOPE AND LIMITATIONS 12-13

4. INDUSTRY PROFILE 14-17

5. THEORETICAL 18-25
BACKGROUND

6. LITERATURE REVIEW 26-29

7. RESEARCH METHODOLOGY 30-39

8. RESEARCH METHODOLY 40
ADOPTED

9. DATA ANALYSIS AND 41-54

INTERPRETATION

10. FINDINGS 55-56

11. SUGGESTIONS 57-58

12. CONCLUSION 59-60

13. LEARNINGS THROUGH 61-62

PROJECT

14. BIBLIOGRAPHY 63-64

 Chapter 1
INTRODUCTION
 Introduction

Attrition is a reduction in the number of employees through retirement, resignation or

death refers to attrition. In the best of words, employees would love their jobs, like their co-
workers, work hard for their employers, get paid well for their work, have ample chances for
the advancement, and the flexible schedules so they could attend to personal or family needs
as and when necessary. But then there’s the real world in which employees do leave. Attrition
measures the amount of recurring revenue lost during a particular time frame, expressed on a
monthly/annualized basis.

What is “ATTRITION”?

Attrition is defined as a gradual reduction of the size of workforce through normal

means, such as retirement, resignation or death. This is normal in any business and industry.
Attrition rate is defined as the rate of shrinkage in size or number. This type of reduction in
staff is one way a company can decrease labor costs: the company simply waits for its
employees to leave and freezes hiring. Attrition of employees in a limited measure is
desirable for influx of new ideas in any type of organization. It helps organizations to
maintain their agility in fast changing environment. It brings in new blood, opens up new
vistas for change, development and improvement, shows avenues to expand operations and
add to the creative lines of the organizations. Attrition in a limited measure can thus bring
gains to the organization. However if attrition increases beyond a certain level, the gains are
transformed into pains. Recruiters explain that high attrition rates significantly increase the
investment made on. Significant investments in time and money need to be made for
acquiring employees in any organization. These can never be translated into profit when
attrition is high.

The organization is fully at loss when employees leave their job once they are fully trained.
Employee retention takes into account the various measures taken so that an individual stays
in the organization for the maximum period of time. It is beneficial both for the organization
as well as the employee.
In short retention is all about:

R - REMUNERATE COMPETITIVELY

E- ENCOURAGEMENT AND EXPECTATION

T- TRAINING AND DEVELOPMENT

A- ANNUAL REVIEW CYCLES

I- INFORM AND INVOLVE

N- NURTURE

Defining Attrition:

 "A reduction in the number of employees through retirement, resignation or death"

 “Attrition is the Ratio comparison of the number of employees a company must
replace in a given time period to the average number of total employees”

Defining Attrition rate:

 "The rate of shrinkage in size or number"

A strong retention strategy becomes a powerful recruitment tool. Retention of key

employees is critical to the long-term health and success of any organization. It is a known
fact that retaining your best employees ensures customer satisfaction, increased product sales,
satisfied colleagues and reporting staff, effective succession planning and deeply imbedded
organizational knowledge and learning. Employee retention matters as organizational issues
such as training time and investment; lost knowledge; insecure employees and a costly
candidate search are involved. Hence failing to retain a key employee is a costly proposition
for an organization. Intelligent employers always realize the importance of retaining the best
talent.
Will try understanding and knowing the various influencing factors for attrition of
professional in above fields. Some of the factors to be considered are.

1. Career Growth.
2. Financial Growth.
3. Working environment.
4. Work life balance.
5. Family issues.
6. Community/Social issues.

Detailed explanation will be found in Data Analysis & Interpretation.

 Chapter 2
OBJECTIVES
 OBJECTIVES OF THE STUDY :

1. To study the factors affecting the attrition rate of organization.

2. To understand the retention techniques.

3. To study the impact of attrition rate on an organization

 Scope for Future Research

Based on the discussions in this dissertation report , it can be said that the scope for future
research can be the study conducted in different geographic regions like different countries,
states, different industries with more variations in the socio-economic profiles, between
Indian IT companies and MNC’s etc. Future research can take place so as to enrich the
research work as over a period of time, factors like employees’ awareness and information
about the strategies may change. Researchers will be encouraged to create and develop new
constructs related to the retention of employees in the IT Service Industry.
 Limitation of the study

1. Since the research report is totally based on secondary information data hence the
authenticity of gathered information was not sure in terms of percentage & statistics.

2. The findings of the study are solely based on the information collected via articles and
referring books theoretically. It may be change due to area, demography, age
condition of economy etc.

3. The study is only related with IT Sector India.

 Chapter 4

INDUSTRY PROFILE
 INDUSTRY PROFILE

In this dissertation repot I have included 3 Big IT firms of India those are follows:

1. Infosys

2. Wipro

3. TCS
Some basic information about company as followes:

1. Infosys:

Infosys Limited (formerly Infosys Technologies Limited) is an Indian

multinational corporation that provides business consulting, information technology and
outsourcing services. It has its headquarters in Bengaluru, Karnataka, India. Infosys is the
second-largest Indian IT company by 2017 revenues and 596th largest public company in
world in terms of revenue. On June 30, 2017, its market capitalization was $34.33 billion.
The credit rating of the company is A- (rating by Standard & Poor's).

Infosys was established by 7 engineers in Pune, India with an initial capital of $250
in 1981. It was registered as Infosys Consultants Private Limited on July 2, 1981. In 1983, it
relocated its office to Bengaluru, Karnataka, India.

2. Wipro:

Wipro Limited (Western India Palm Refined Oils Limited or more recently,
Western India Products Limited . It is an Indian Information Technology Services
corporation headquartered in Bengaluru, India. In 2013, Wipro demerged its non-IT
businesses into separate companies to bring in more focus on independent businesses.

The company was incorporated on 29 December 1945 in Amalner, Maharashtra by

Mohamed Premji as 'Western India Vegetable Products Limited', later abbreviated to 'Wipro'.
It was initially set up as a manufacturer of vegetable and refined oils in Amalner,
Maharashtra, India under the trade names of Kisan, Sunflower, and Camel.

3. TCS:

Tata Consultancy Services Limited (TCS) is an Indian multinational information

technology (IT) service, consulting and business solutions company headquartered in
Mumbai, Maharashtra. It is a subsidiary of the Tata Group and operates in 46 countries.
TCS is one of the largest Indian companies by market capitalization. TCS is now placed
among the most valuable IT services brands worldwide. TCS alone generates 70% dividends
of its parent company, Tata Sons. The parent group recently decided to sell stocks of TCS
worth $1.25 billion in a bulk deal.

In 2015, TCS is ranked 64th overall in the Forbes World's Most Innovative
Companies ranking, making it both the highest-ranked IT services company and the top
Indian company. It is the world's 9th largest IT services provider by revenue. As of 2017, it is
ranked 10th on the Fortune India 500 list.

On 12 January 2017, N.Chandrashekaran was elevated as the chairman for Tata Sons.
 CHAPTER-5

THEORITICAL BACKGROUND
 THEORITICAL BACKGROUND

Definition of Attrition Rate

A common attrition rate definition refers to employee or staff turnover, but in a broader
sense, attrition rate is a calculation of the number of individuals or items that vacate or move
out of a larger, collective group over a specified time frame.

Attrition rate is also commonly referred to as churn rate. A term often used by human
resources professionals to determine a company’s ability to retain employees, attrition rate is
increasingly used in the marketing world as a figure that points to the company’s ability to
retain customers or to project the number of new sales necessary to maintain the status quo,
accounting for customer churn or customer attrition.

What Is Employee Attrition?

Employee attrition occurs when the size of your workforce diminishes over time due to
unavoidable factors such as employee resignation for personal or professional reasons.

Employees are leaving the workforce faster than they are hired, and it is often outside the
employer’s control. For example, let’s say that you have opened a new office designated as
the Sales Hub for your company. Every salesperson must work out of this office – but a few
employees cannot relocate and choose to leave the company. This is a typical reason for
employee attrition.

But there are other reasons for attrition as well, including the lack of professional growth,
a hostile work environment, or declining confidence in the company’s market
value. Weak leadership is another factor that often drives attrition among employees.
Employee attrition vs. turnover

When defining attrition, remember not to confuse it with turnover. Vacancies left by attrition
aren’t immediately filled up. This is because a lot of factors can contribute to attrition,
including retirement, planned resignations, and structural changes.

Turnover, in contrast, is a more short-term metric. The dent made by turnover must be
addressed immediately through rehiring.

What Are the Different Types of Attrition?

There are five types of employee attrition that you need to know of:

1. Attrition due to retirement

If two or three people have retired from your company this year, this is statistically too small
an employee group to count under attrition. However, if a sizable chunk of your workforce
retires at the same time, this can cause attrition. Attrition due to retirement shouldn’t be swept
under the rug – your senior professionals may choose to retire early or become independent
consultants due to factors other than age.

2. Voluntary attrition
This is the most common type of attrition, where employees decide to simply quit their jobs.
There can be many reasons for voluntary attrition (more on that later) and most of them are in
your control. You should proactively try to curb voluntary attrition among high-value talent,
as this can bring down your productivity over time. For example, if a company sees its
marketing experts moving out of different business units, it’s a clear cause for concern.

3. Involuntary attrition

In this scenario, it is the company and not the employee that initiates the exit. For example,
the employee may have shown instances of misconduct in the workplace – a common reason
for involuntary attrition. Structural reasons could also cause attrition. Mergers and
acquisitions are often followed by a wave of involuntary attrition.

4. Internal attrition
Here, employees are quitting their jobs in one department to join another department. In some
cases, internal attrition is desirable, as it routes talent towards more profitable areas. It also
ensures better employee-job fitment. But if a specific department has witnessed a high rate of
attrition one year, it merits an investigation. Is there something missing in the job? Is the
manager inadequately skilled? These are questions that HR needs to ask and find answers to.

5. Demographic-specific attrition
This is a significant concern for progressive companies trying to build an equal-opportunities
workplace. Demographic-specific attrition means that employees from a single group
women, ethnic minorities, people with disabilities, veterans, or older professionals – are
leaving the company in droves. You need to immediately deploy employee surveys to
identify the root cause of demographics-based attrition before it affects your workplace
culture.

What Is Employee Attrition Rate?

Attrition measures how many people left a company/office/department compared to the

average number of people employed in that year. This takes into account fresh hires as well.
Here’s a simple formula to help you calculate attrition:

 Conduct a headcount to know how many employees you started with at the
beginning of the year. Let’s say this number is 1,000.

 Keep track of how many people leave throughout the year. Let’s say 200
employees left the company due to voluntary and involuntary reasons.

 Keep track of the employees you hire across the year, and conduct a final headcount
at year-end. Let’s say that you hired 400 people that year – this means your final
headcount is 1,400.
  Now, calculate the average number of employees for that year. In our example, this
will be (1000+1400)/2 = 1,200.

 Finally, calculate the number of employees who left as a percentage of the

average number of employees. This will give you the attrition rate: (200/1200) x
100 = 16.66%.

Simply put,

 Attrition Rate = Number of Attritions/Average Number of Employees x 100

As you can see, the impact of attrition cannot be negated by going on a hiring spree. This
is what makes it such an important metric for companies.

Factors Affecting Employee Attrition

1. Personal motivation

There has been a change in an employee’s personal life that compels them to switch jobs.
New parents might want to move to a city with better schools, a mid-career professional
may want to return to school – these reasons are endless. By conducting detailed exit
interviews, you can keep in touch with these employees and ensure that they consider your
company in the future, whenever they have an opportunity.

2. Professional motivation

This is where HR could play a massive role in controlling attrition. An employee might
leave because they felt there simply aren’t enough opportunities for career progression in
your organization. This is the case in several technology companies, where technical
talent is forced to fight for managerial positions as they move up the ladder.
 3. Challenges with the workplace

This is another common reason for attrition. Challenges in the workplace can range from
uncollaborative leadership to the lack of requisite tools for work. This type of attrition is
relatively easy to fix. Ask for regular feedback, listen to the voice of the employee, and
address any gaps in their employee experience. Typically, someone who is happy with their
job won’t quit if most of their workplace requirements are met.

4. Poor employee-to-job fitment

the job was not right for that candidate, to begin with. You can address attrition arising from this factor by finetuning your j
Causes of Employee Attrition

There are several reasons why employees consider the option of moving out of the current
organization. Some of the main reasons why attrition amongst employees exist are as follows:

1. Better pay & job opportunities outside the organization.

2. Improper work life balance can cause a high attrition rate.

3. Impolite behaviour of manager and peers & ineffective team management.

4. Lack of employee recognition or limited growth in current role.

5. Stagnancy in career growth & poor quality of work life can lead to higher attrition rate.

6. Inadequate and poor working conditions leading to lack of motivation.

7. Retirement or untimely death of employees when at job.

Steps to Control Attrition

Companies can take several corrective actions in order to ensure that employees stay in the
company and can reduce the attrition. Some of the employee retention strategies to control
attrition are mentioned below:

1. Motivating employees through a growth plan can help reduce attrition.

2. Recognize employee accomplishments through rewards.

3. Expose employees to newer roles and promote training and development within the
organization which helps them build their careers.

4. Taking constant feedback from employees can help control attrition from unsatisfied staff

5. Continuously strategize organizational structure to remove irrelevant job positions to

reduce misfit recruitment.
Attrition can also be used to refer to customer attrition which is the no of customers which a
company has lost in a given period of time. Attrition, in general, refers to loss or decrease
in no of personnel, material etc.

Attrition Rate Formula

Attrition rate refers to the rate at which employees are leaving an organization. Attrition rate
can be calculated as:

Attrition Rate (%)= (Number of separations/ Number of employees) * 100

Attrition rate gives an idea as to how many employees are leaving the company at any given
time period. It is an important factor as companies have to prepare to start recruiting for the
positions which are critical and cannot be left vacant.
 Chapter 6
LITERATURE REVIEW
 Literature Review

International Journal Of Core Engineering & Management (IJCEM), Volume 2, Issue

1, April 2015, Retreived from,
http://ijcem.in/wpcontent/uploads/2015/05/Attrition_in_IT_Sector.pdf Attrition is when an
employee leaves his/her current job due to various different reasons. It is when an employee
ends his membership in an organisation where he or she received monetary compensation for
the work done. It is reduction in the number of employees through retirement, resignation or
death. Attrition takes place due to non fulfillment of employees expectations from the
organisation in return of services provided to them. Many factors play a role in the employee
attrition rate of any company, and these can stem from the employer and the employees.
Wages, company benefits, employee attendance, and job performance are all factors that play
a significant role in employee turnover.

Nancy Kumari ,May, 2018 , Factors Influencing The Retention Of Employees In The It
Services Industry In Bengaluru, Attrition – A Big Challenge - Attrition on the rise in IT
firms, Retrieved from, https://www.iujharkhand.edu.in/Nancy-Kumari-Thesis.pdf Reducing
employee turnover is a strategic and vital issue. It is well known by an employer that it takes
a considerable amount of time and resource to hire a workforce and later replacing them with
new ones causes a huge loss of money, productivity, time etc. Get Les Mckeown’s employee
retention is define - employee retention is a systematic effort by employers to create and
foster an environment that encourages current employees to remain employed by having
policies and practices in place that address their diverse needs

Denvir and McMahon (1992) define labor turnover as “the movement of people into and out
of employment within an organization “while Mobley (1982) defines turnover as “voluntary
cessation of membership in an organization by an individual who receives monetary
compensation for participating in that organization”.
Forbes (1971) states that labor turnover means separation from an organization and included
promotion, transfer or any other internal movement within the institution. Meaghanetal
(2002) draws attention on controlling attrition; he states that the value of employees to an
organization is a very crucial element in The success of the organization, He further states
that this value is intangible and cannot easily be replicated; therefore, the managers should
control attrition. Mobley (1977) suggests a measure to predict attrition, he says that tenure of
an employee is one of the best measures that can be used to predict turnover.

Journal of Applied Management and Investments Volume 3, Number 1, 2014

Attrition/retention of employees has always been a perennial problem for Indian IT/ITeS
companies. Their major challenge is to design their incentives/retention strategies to ensure
that they retain qualified professionals with the right mix of skill sets and experience. This
study focuses on the factors affecting attrition in the Indian IT majors. Compensation-related
factors were identified as the most important factors affecting attrition, followed by career
growth factors, job satisfaction factors, and work environment factors. Further, attrition due
to work environment factors and attrition due to compensation-related factors were the only
factors with significant impact on the attrition rate.

Hom & Griffith (1995) state that several investigations in the past have revealed that
organizational commitment and job satisfaction are crucial factors that influence
turnover intention. Wanous (1992) focuses on new employee attrition and says that
new employees often leave the organization because their expectations are not met which
results into a violation of their psychological contract resulting into turnover.

Abassi et al (2000) conclude that there are other factors like inefficient and poor
recruitment practices, style of management, lack of recognition, work place
conditions, and a lack of competitive compensation system that cause employees to
quit the organization.
Labour Turnover Rates: The Hay study of 500,000 employees in 300 companies in 50
countries (Hay, 2001) found that employee turnover has increased by 25% in the last five
years and one third of people in current employment plan to move within the next three years.
Key employee turnover is running at historically high levels in South Africa. The P-E
Corporate Services survey (2001) of 700 South African companies shows that the turnover
rate in general has risen from 7% in 1994 to 14% in 2001.

In summary, if it is assumed from the literature that there is a 15% labor turnover amongst
knowledge workers a year and that the total costs are equal to eighteen months salary, then
the cost of knowledge worker turnover to an organization is equal to 22% of the total annual
salary bill for these workers. Because of these costs, Maertz and Campion (2001) suggest
studies be done on the avoid ability of turnover, i.e. on the means of retaining knowledge
workers.

(Morrell, Loan-Clarke & Wilkinson, 2001). The literature review set out below shows that
fifty years of academic research on labor turnover has, in many ways, led to more questions
than answers. Most studies have tested extremely highly focused hypotheses, were carried out
in single companies or industries, looked at turnover and not retention factors, and/or were
carried out prior to the new knowledge economy (Morrell, Loan-Clarke & Wilkinson, 2001).
Thus the aim of this research was to determine what the underlying retention factors are that
are important to knowledge workers and whether or not these factors are universal, or if there
are segments in the population of knowledge workers that desire different retention devices.
 Chapter 7
RESEARCH METHODOLOGY
 RESEARCH METHODOLOGY (THEORY)

7.1 Meaning of Research

Research may be very broadly defined as systematic gathering of data and information and its
analysis for advancement of knowledge in any subject. Research attempts to find answer
intellectual and practical questions through application of systematic methods. Webster’s
Collegiate Dictionary defines research as "studious inquiry or examination; esp: investigation
or experimentation aimed at the discovery and interpretation of facts, revision of accepted
theories or laws in the light of new facts, or practical application of such new or revised
theories or laws". Some people consider research as a movement, a movement from the
known to the unknown.

It is actually a voyage of discovery. We all possess the vital instinct of inquisitiveness for,
when the unknown confronts us, we wonder and our inquisitiveness makes us probe and
attain full and fuller understanding of the unknown. This inquisitiveness is the mother of all
knowledge and the method, which man employs for obtaining the knowledge of whatever the
unknown, can be termed as research.

7.2 Research Design

Research design is defined as a framework of methods and techniques chosen by a researcher

to combine various components of research in a reasonably logical manner so that the
research problem is efficiently handled. It provides insights about “how” to conduct research
using a particular methodology. Every researcher has a list of research questions which need
to be assessed – this can be done with research design.

The sketch of how research should be conducted can be prepared using research design.
Hence, the market research study will be carried out on the basis of research design. The
design of a research topic is used to explain the type of research
(experimental, survey, correlational, semi-experimental, review) and also its sub-type
(experimental design, research problem, descriptive case-study). There are three main
sections of research design: Data collection, measurement, and analysis.
An impactful research design usually creates minimum bias in data and increases trust on the
collected and analyzed research information. Research design which produces the least
margin of error in experimental research can be touted as the best. The essential elements of
research design are:

1. Accurate purpose statement of research design

2. Techniques to be implemented for collecting details for research

3. Method applied for analyzing collected details

4. Type of research methodology

5. Probable objections for research

6. Settings for research study

7. Timeline

8. Measurement of analysis

7.3 Types of Research Design

A researcher must have a clear understanding of the various types of research design to select
which type of research design to implement for a study. Research design can be broadly
classified into quantitative and qualitative research design.

Qualitative Research Design: Qualitative research is implemented in cases where a

relationship between collected data and observation is established on the basis of
mathematical calculations. Theories related to a naturally existing phenomenon can be proved
or disproved using mathematical calculations. Researchers rely on qualitative research design
where they are expected to conclude “why” a particular theory exists along with “what”
respondents have to say about it.

Quantitative Research Design: Quantitative research is implemented in cases where it is

important for a researcher to have statistical conclusions to collect actionable insights.
Numbers provide a better perspective to make important business decisions. Quantitative
research design is important for the growth of any organization because any conclusion
drawn on the basis of numbers and analysis will only prove to be effective for the business.

Further, research design can be divided into five types –

1. Descriptive Research Design: In a descriptive research design, a researcher is solely

interested in describing the situation or case under his/her research study. It is a theory-based
research design which is created by gather, analyze and presents collected data. By
implementing an in-depth research design such as this, a researcher can provide insights into
the why and how of research.

2. Experimental Research Design: Experimental research design is used to establish a

relationship between the cause and effect of a situation. It is a causal research design where
the effect caused by the independent variable on the dependent variable is observed. For
example, the effect of an independent variable such as price on a dependent variable such as
customer satisfaction or brand loyalty is monitored. It is a highly practical research design
method as it contributes towards solving a problem at hand. The independent variables are
manipulated to monitor the change it has on the dependent variable. It is often used in social
sciences to observe human behavior by analyzing two groups – affect of one group on the
other.

3. Correlational Research Design: Correlational research is a non-experimental research

design technique which helps researchers to establish a relationship between two closely
connected variables. Two different groups are required to conduct this research design
method. There is no assumption while evaluating a relationship between two different
variables and statistical analysis techniques are used to calculate the relationship between
them.

Correlation between two variables is concluded using a correlation coefficient, whose value
ranges between -1 and +1. If the correlation coefficient is towards +1, it indicates a positive
relationship between the variables and -1 indicates a negative relationship between the two
variables.

4. Diagnostic Research Design: In the diagnostic research design, a researcher is inclined

towards evaluating the root cause of a specific topic. Elements that contribute towards a
troublesome situation are evaluated in this research design method.
There are three parts of diagnostic research design:

 Inception of the issue

 Diagnosis of the issue

 Solution for the issue

1. Explanatory Research Design: In exploratory research design, the researcher’s ideas

and thoughts are key as it is primarily dependent on their personal inclination about a
particular topic. Explanation about unexplored aspects of a subject is provided along
with details about what, how and why related to the research questions.

7.4 Research Process

1. Formulating research problem

2. Extensive literature survey

3. Development of working hypothesis

4. Preparing the research design

5. Determining sample design

6. Collecting the data

7. Execution of the project

8. Analysis of data

9. Hypothesis testing

10. Generalization and interpretation

11. Preparation of the report

7.5 DATA

Data is the information, especially facts or numbers, collected to be examined and considered
and used to help decision-making.
7.5.1 PRIMARY DATA

Primary data is information collected through original or first-hand research. For example,
surveys and focus group, discussions etc .In this project the primary data was collected
through questionnaire in which the questions were both open ended and close ended. Data
that has been collected from first-hand-experience is known as primary data. Primary data has
not been published yet and is more reliable, authentic and objective. Primary data has
not been changed or altered by human beings; therefore its validity is greater than secondary
data. Importance of Primary Data: In statistical surveys it is necessary to get information
from primary sources and work on primary data. For example, the statistical records of
female population in a country cannot be based on newspaper, magazine and other
printed sources. A research can be conducted without secondary data but a research based
on only secondary data is least reliable and may have biases because secondary data has
already been manipulated by human beings. One of such sources is old and secondly they
contain limited information as well as they can be misleading and biased

Sources of Primary Data: Sources for primary data are limited and at times it becomes
difficult to obtain data from primary source because of either scarcity of population or
lack of cooperation.

Following are some of the sources of primary data.

Experiments: Experiments require an artificial or natural setting in which to perform

logical study to collect data. Experiments are more suitable for medicine, psychological
studies, nutrition and for other scientific studies. In experiments the experimenter has to keep
control over the influence of any extraneous variable on the results.

Survey: Survey is most commonly used method in social sciences, management,

marketing and psychology to some extent. Surveys can be conducted in different methods.

Questionnaire: It is the most commonly used method in survey. Questionnaires are a

list of questions either open-ended or close-ended for which the respondents give answers.
Questionnaire can be conducted via telephone, mail, live in a public area, or in an institute,
through electronic mail or through fax and other methods.
Interview: Interview is a face-to-face conversation with the respondent. In interview
the main problem arises when the respondent deliberately hides information otherwise
it is an in depth source of information. The interviewer can not only record the statements
the interviewee speaks but he can observe the body language, expressions and other
reactions to the questions too. This enables the interviewer to draw conclusions easily.

Observations: Observation can be done while letting the observing person know that s/he
is being observed or without letting him know. Observations can also be made in natural
settings as well as in artificially created environment.

7.5.2 SECONDARY DATA

Secondary data is information which has been collected in the past by someone else. For
example, researching the internet, newspaper articles and company reports. These data were
collected from some research papers, company website, journals, articles, internet from
where I collected the basic information related to company profile and for literature review.
Data collected from a source that has already been published in any form is called as
secondary data. The review of literature in any research is based on secondary data. It is
collected by someone else for some other purpose (but being utilized by the
investigator for another purpose). For examples, Census data being used to analyze the
impact of education on career choice and earning. Common sources of secondary data for
social science include censuses, organizational records and data collected through
qualitative methodologies or qualitative research. Secondary data is essential, since it is
impossible to conduct a new survey that can adequately capture past change and/or
developments.

Sources of Secondary Data: The following are some ways of collecting secondary data –

1. Books

2. Records

3. Biographies
4. Newspapers

5. Published censuses or other statistical data

6. Data archives

7. Internet articles

8. Research articles by other researchers (journals)

9. Databases, etc

7.6 Sample Size

Sample size measures the number of individual samples measured or observations used in a
survey or experiment. For example, if you test 100 samples of soil for evidence of acid rain,
your sample size is 100. If an online survey returned 30,500 completed questionnaires, your
sample size is 30,500. In statistics, sample size is generally represented by the variable
"n".
Types of Sampling: Sampling Methods

Any market research study requires two essential types of sampling. They are:

1. Probability Sampling: Probability sampling is a sampling method that selects

random members of a population by setting a few selection criteria. These selection
parameters allow every member to have the equal opportunities to be a part of various
samples.

2. Non-probability Sampling: Non probability sampling method is reliant on a

researcher’s ability to select members at random. This sampling method is not a fixed
or pre-defined selection process which makes it difficult for all elements of a
population to have equal opportunities to be included in a sample.
Research Methodology Adopted

My project is based on Descriptive Research type.

 Descriptive Research: It is used to describe characteristics of a population or

phenomenon being studied. It does not answer questions about how/when/why the
characteristics occurred. Rather it addresses the "what" question.

The data is collected while undergoing any kind of research to collect facts and figures.

DATA COLLECTION:

 Secondary Data: Secondary Data is collected from various Journals, books,

websites, newspapers and other research reports. Refer Bibliography

SR NO. PARAMETERS DESCRIPTION

1. Type of Research Descriptive Research

2. Research Instrument Research papers, Journals ,

Articles

3. Sources of Data Collection Secondary Data

4. Secondary Data Research papers, Journals ,

Articles, company website,
Reference Books
 Chapter 9
DATA ANALYSIS &
INTERPRETATION
 A. Attrition rate of 3 Big IT Companies in India as follows for FY 2018-2019

1. Infosys – 23.4 %

2. Wipro – 17 %

3. TCS –11.8 %

Attrition Rates 2018-19

23.40%
25.00%
20.00%
17%
15.00%
10.00%
11.80%
5.00%
0.00% Attrition

Infosys Attrition
Wipro
TCS

Fig. 1

Interpretation for each companies as follows:

1. Infosys:

Infosys' annualised consolidated attrition stood at 23.4 percent, up 3 percent from the
quarter ended March 2019.

Even as India's second-largest IT services company Infosys kickstarted FY20 with strong
growth momentum, its attrition rate continues to be high at 23.4 percent, up 3 percent from
20.4 percent for the quarter ended March 2019. The company's attrition for quarter ending
June 2018 stood at 23 percent. UB Pravin Rao, Chief Operating Officer, told mediapersons
that the high attrition could be attributed to seasonality and high involuntary attrition.
"We are living at a time where there are technological disruptions happening and there has
been a shortage of skills. We are seeing high degree of attrition due to shortage of talent.
Once it stabilises and talent gap minimises we will go back to 13-15 percent. Till then it is
likely to continue," Rao said. He said the company has put in several measures to address the
issue. He informed that the company has launched an employee value proposition focusing
on engaging better with employees, enabling them and creating better career opportunities.

"During current compensation review, we will address some of it," he added.

However, there have been some concerns about wage hikes this quarter at the senior
management level. Rao explained that at the lower level people start getting hikes a little
early in July and senior management starting October. "That is something that the
management has been following in the recent years and there has not been any change in that
approach," he added. On the hiring front, the company has hired 8000 people so far, 2500
being freshers. "We are planning to hire 18,000 people from campuses for FY20," Rao said.

Infosys has completed its promise to hire 10,000 people in the US. However, there are no
new targets for US hiring. Despite the increased hiring numbers in the US, subcontracting
cost continues to be high at 7.5 percent of revenues. "It is become an integral part of the
supply chain," Rao said, adding that it helps fill the talent gap as and when needed. Infosys is
also looking beyond STEM and is hiring, especially in the overseas market, to overcome the
skill gap. "The key is to retain industry growth and have their career with us for the long run,"
he said. Profit for the quarter ended June 2019 stood at Rs 3,802 crore, down from Rs 4,078
crore in March 2019 quarter. The company registered revenue of Rs 21,803 crore, up 14
percent from Rs 19,128 crore for the comparable quarter last year.

2. Wipro:

Wipro's attrition rate reportedly stood at 17 percent, 60 basis points lower than in the
previous quarter, during the quarter ended September.

In July this year, Wipro had offered to pay retention bonus of Rs 1 lakh to the freshers hired
by the company this year in a bid to counter the high attrition rates. After offering Rs 1 lakh
retention bonus in July this year, Information Technology major Wipro may promote around
5,000 employees in the coming quarters this year in a bid to retain the young talent and to
prepare the company future-ready, said media reports.

“Attrition (rate) has been a good story for wipro as compared to others. They have given
salary hikes and now are looking at a huge number of promotions in the coming quarter.
Around 5,000 people in the experience range of five to eight years will get promoted,” the
report said quoting Saurabh Govil, president and chief human resources officer at Wipro.
In July last year, Wipro had offered to pay retention bonus of Rs 1 lakh to the freshers hired
by the company this year in a bid to counter the high attrition rates existing in the IT sector.

Wipro has promised a retention bonus of Rs 1 lakh to the junior employees who have been
recruited through campus placements this year and will complete one year with the company.

3. TCS:

The total attrition rate in Tata Consultancy Services (TCS) fell to 11.8%, while that of
IT fell to 11% in the fourth quarter of the fiscal year 2018-19.

It stands 3rd in attrition rate. The total attrition rate in Tata Consultancy Services (TCS) fell to
11.8%, while that of IT fell to 11% in the fourth quarter of the fiscal year 2018-19. India’s
largest IT services company, beating estimates, posted a net profit of 4.5% on year to Rs
6,904 crore in the quarter ended March.

The company said that its progressive HR policies have resulted in best in class employee
retention rates. TCS had 394,998 employees at the end of the fourth quarter on a
consolidated basis. “Our core values, progressive policies, people-centric culture and
continued investment in competency development empowers Individuals and helps them
realize their potential,” said Ajoy Mukherjee, Executive Vice President and Global Head,
Human Resources.

These companies are progressing in the retention rate than the past years. On beginning of
the year 2018, industry leader TCS reported just 3,657 employee addition in the first nine
months of this financial year on a net basis, signaling an 85 per cent year-on-year drop in
hiring’s, but reported a drop on attrition and improvement in productivity.

B. Reasons of attrition of employees in Infosys, TCS, Wipro as follows:

The private sector and MNCs in Indian market has shown tremendous growths in last
previous years, ample of job opportunities are available now so the employees quit the job
easily. The employee turnover depends upon the market conditions. If the supply is more than
the demand and effective workforce is available at reasonable costs then high quality services
can be attained even if the turnover rate is high. But, if the requirement is costly and the
demand is more than the supply of workers then it can become problematic for the
organization as a risk of losing the employees to competitor increases especially when
these employees have good relations with customers. There are several reasons that can
contribute to attrition in the companies. Sometimes, individuals leave their companies
because their skills are in demand, and therefore they are lured away by other companies for
higher pay and better benefits. Unfortunately, there are not much that companies can do
to keep their employees from leaving for higher pay and better benefits. However, if
unhappiness is the primary reason why employees leave, there is a lot that companies can do
to prevent the turnover. Some of the common reasons for high attrition are as follows:

Reasons in for attrition of employees

5 3 Less Pay
7
35 Career opportunities
9 Work tasks Organisation reputation
11

10 Work life balance

20
Recognition Transport Work Process

Fig. 2

Interpretation:

The major reason of attrition rate is less pay followed by the career opportunities. Very less
amount of people leave organization for the reason of transportation and work process. This
show the employees are ready to work with any process with required efforts if they are
getting fair salary and growth opportunities.

1. Infosys:

The major reason of attrition rate in Infosys is Less Pay followed by the Less Carrier
Opportunities for young & dynamic talent.
 2. Wipro:

Very less amount of people leave organization for the reason of Organizational Ethics
and Work process. This show the employees are ready to work with any process with
required efforts if they are getting fair salary and right domain work.

3. TCS:

TCS is also been grasp by Less Pay & Carrier Opportunities to its employees. but
Ajoyendra Mukherjee, executive vice-president and global head for human resources at
TCS, however, said the number shortfall was largely because the company has stopped
advance hiring’s. "A year prior, we were building capacity in advance. We made 40,000
campus offers. We made a gross addition of over 78,912 and net addition of 33,000-34,000.
We are now looking at just in-time hiring," he explained.

C. What Infosys, Wipro & TCS has done so far to limit attrition rate in
organization for FY 2017-18 as follows...

1. Infosys:

To keep attrition rate low but that has helped the industry improve per-employee
productivity and control attrition. Infosys claimed it managed to keep its attrition rate low,
(Despite heavy attrition in FY2018-19 for almost 23.4%) thanks to salary hikes and higher
variables which were awarded to employees.

2. Wipro:

Wipro launches staff retention plan to tackle attrition; to facilitate further academic
pursuits. The "Notch Up" programme is the second major initiative by India’s third largest
software exporter this year to retain employees with five or more years of experience, as the
rate of people leaving the company from this group is higher than Wipro’s overall attrition
level of 17%.

3. TCS:
  Taking forward the re-skilling programme, which experts say, are crucial especially
for I-T industries to cope up with emerging technologies such as Artificial
Intelligence, TCS trained 247,000 employees on digital technologies in FY18, the IT
behemoth said in earnings filing on exchanges.

 Besides, it also trained 208,000 employees agile methodologies. Moreover, TCS’

board recommended a dividend of Rs 29 per equity share of face value of Re 1
with a bonus issue of equity shares in a ratio of 1:1.

 For the first time in several years, TCS headcount went down by 1,414 employees
from the fourth quarter of last year to the first quarter of the current financial
year. And this reduction in headcount may soon become a norm even as the
company vows not to fire any employees. This kind of tactics being used to
reduce attrition rate and it becomes so successful far for the organization

.
 Benefits of Attrition:

Attrition is not bad always if it happens in a controlled manner. Some attrition is

always desirable and necessary for organizational growth and development. The only
concern is how organizations differentiate “good attrition” from “bad attrition”. The term
“healthy attrition” or “good attrition” signifies the importance of less productive employees
voluntarily leaving the organization. This means if the ones who have left fall in the category
of low performers, the attrition in considered being healthy.

Attrition rates are considered to be beneficial in some ways:

1. 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.

2. When certain employees leave, whose continuation of service would have negatively
impacted productivity and profitability of the company, the company is benefited.

3. New employees bring new ideas, approaches, abilities & attitudes which can keep
the organization from becoming stagnant.

4. 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.

5. 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:

a) It removes bottleneck in the progress of the company.

b) It creates space for the entry of new talents.

c) It assists in evolving high performance teams.

Attrition can refer one or two trends. The first involves slowly reducing productivity
and staff through a constant barrage of poor treatment or unfavorable working conditions. It
can also involve the reduction of employees through retirement or the elimination of a
position. Attrition's most distinguishing characteristic is that when an employee leaves, no
effort is made to replace him. Either way, attrition is a major problem that needs to be
examined and addressed before it harms the organization's bottom line.

 What are the causes of Attrition?

Job Attrition can be very costly to the organizations as a whole. Therefore, managers
should constantly be on the lookout to reduce job Attrition. The same factors that cause low
morale and absenteeism contribute to high Attrition. Basically, if the employees are not
interested in their jobs, they will leave. Being unhappy is not the only reason why workers
leave their jobs. There are several other reasons that can contribute to Attrition in the
companies. Sometimes, individuals leave their companies because their skills are in demand,
and therefore they are lured away by other companies for higher pay and better benefits.
Unfortunately, there are not much that companies can do to keep their employees from
leaving for higher pay and better benefits. However, if unhappiness is the primary reason why
employees leave, there is a lot that companies can do to prevent the turnover. The solutions
will be discussed later in this research. In this section, the primary focus will be on the causes
of turnover.

 Some of the more common reasons for high attrition turnover are as follows:

1. Employee’s Skills and the Job:

One of the major reasons why employees decide to leave their companies is their
qualifications for the job itself. Employees who are placed in jobs that are too
demanding or not challenging enough may become discouraged and quit their
companies. This usually happens when the job descriptions are not clearly
communicated to the applicants during the interviews. Therefore when the applicant
accepts the job offer, he will end up facing a cultural shock after starting the new job
realizing that the job is not challenging enough and he may be overqualified. The reverse
is also true. When the companies do not do an adequate job in the interviewing process
and will end up hiring someone who’s actually under qualified for the position. The
individual may feel the pressure of handling the new job and end up leaving the
company for another.
2. Lack of Opportunity for Advancement:
In many cases the main reason why an employee decides to leave the company is
the lack of advancement. This is also called career plateauing in the Organizational
 Behavior, fifth edition by Robert Kreitner and Angelo Kinicki. This happens when the
job is a dead end position. This is when employees feel that there is no possibility of
Volume No: 1 Issue: 44 promotions; they lose interest in their jobs and leave the
company. Again since job Attrition can be very costly to the organizations, the hiring
managers should explain the future of the position to the applicants clearly to avoid any
conflicts.

3. Inadequate Training and Ineffective Management:

Other reasons that lead to job Attrition are inadequate training and ineffective
management style. Many employees need training and directions to do their jobs. These
trainings and directions should be provided by the company and the management team.
Without proper training, workers feel lost in their positions leading to unproductive
performance, which may affect the confidence and self esteem of the individuals. Also,
sometimes bad management could lead to high Attrition as well. In most cases, workers
would like to be involved in some of the decision Makings and would appreciate
delegations. They also love to be rewarded and recognized for the good work they do. If
the managers do not have the 21st century skills, they may overlook the performance of
their good employees. This would definitely discourage employees from continuing to
work for the same manager and the same company leading to their departure.

4. Lack of Acknowledgement:
Employees need to feel appreciated. If management does not recognize an
employee's existence -- let alone her contributions -- she is not likely to stay with the
company. Lack of advancement -- a "dead-end job" -- for example, makes employees
feel like they are not working toward anything, resulting in low ambition and
productivity. Employees may also feel that their compensation does not accurately
reflect their work, making things like raises, bonuses and promotions an effective
countermeasure. Even a simple verbal congratulation is enough to make an employee
realize that management values her work.

5. Autocratic Management:
A serious issue faced by many organizations is the dictatorial attitude that some
managers display. Criticisms -- even when warranted -- can be harsh enough to be
 labeled as bullying or abuse. Naturally, no employee wants to be intimidated by his
supervisor. A worker living in fear cannot be expected to remain productive or raise
concerns. The end result is chronic lateness, depression, burnout and resignation. An
autocratic supervisor may also terminate employees quite liberally, reducing the
workforce and placing greater stress on staff. It is imperative for all managers to be open
to discussion and approach discipline in a professional manner.

6. Working Conditions:
Sometimes, the job itself is the reason for high attrition. According to Kristen
Gerencher of "Market Watch," jobs that involve frequent customer contact for low
wages -- such as fast food, entry-level retail, hospitality, telemarketing and inbound call
centers -- lead to high attrition, mainly because employees do not feel the compensation
is proportionate to the stress they endure. Even more prestigious jobs, such as childcare,
nursing and accounting all experience high attrition rates due to excessive pressure
caused by staff shortage or excessive regulations.

7. Low Challenge:
Employees often have much more potential than management gives them credit
for. Workers who feel that their job is meaningless are only likely to stay as long as they
have to. The same applies to underemployment. A 2012 Gallup poll shows that one-third
of American youth are underemployed as of April of that year. Naturally,
underemployed individuals will not stay with the company any longer than necessary.

 Tips & Strategies to Prevent Attrition in an Organization (Retention Techniques)

1. Fostering a Culture of Management Concern:

Companies today must show an interest in helping people develop to their fullest
potential. In addition to reducing bureaucracy, high performing, high-tech companies
provide freedom in scheduled hours, and lifestyle choices.

2. Rewarding Managers / Job Enlargement:

 Don’t lock people into positions because they’re “so good at it.” Companies
should give freedom to them at workplace. Many companies say they value people and
train their management team to cope with people issues. Yet these same managers are
too often rewarded solely on their technical skills and financial results.

3. Strengthening the Team / Providing Relevant Training:

Marginal performers in management must be weeded out. Clearly identify the
people you want to keep in recent years; many executives have focused on whom they
should get rid of rather than on whom they should keep. Unfortunately, those who
decide to leave are often high impact performers who can find other work quickly. To
retain top talent in the future, executives will need to clearly identify, develop, involve,
and recognize key people. Traditional compensation plans must be challenged,
needless bureaucracy eliminated, and growth opportunities provided. Executives who
create a dynamic, new human resource model will retain the high knowledge talent
needed to succeed in tomorrow’s globally competitive environment.

4. Hiring Attitude:
When hiring, you may not always find the skills you want in an employee, but if
you screen for good attitude, you can reduce your attrition rate. Look for employees
with a strong work ethic, the ability to get along with others and a willingness to learn.
You can train such an employee and have a vital worker that is not only less likely to
quit but less likely to cause others to quit.

5. Providing Growth:
Recognize employees who contribute positively to your company by giving
them increased responsibilities. This does not always have to mean a raise. Give
employees more say in decisions, the work environment and ways to improve
productivity and quality, and you will engage them in their work more. Such
employees can develop loyalty for you and your company and greatly reduce attrition.

6. Showing Respect:
Train your managers to show respect for employees, even in conflicts. When
employees feel they work in an environment where they are respected, they are more
likely to stay in that environment.
 7. Providing for Work/Life Balance:
Today’s employees seek jobs that allow them to have a personal life. Make sure
you allow time off for family emergencies, personal business and vital errands, such as
picking up kids from school. Don’t make overtime a way of life, and respect an
employee’s days off when scheduling special projects. Employees are more likely to
stay on jobs that blend well with their lives.

8. Pay Packages:
One of the main reasons employees leave a job is higher pay elsewhere. Survey
the job market occasionally to make sure that the wages you offer are competitive.
Also look at the value of your benefits package from time to time to see if it offers
employees value. Remind employees of the value of their benefits, so they will keep
this in mind when weighing job offers from competitors.

High Attrition but Infosys, Wipro & TCS say 'No Problem'...

Tata Consultancy Services (TCS), Wipro and Infosys, the three bigwigs of the Indian
IT space, it seems that that employees are jumping the ship at a rate faster than ever. The
annual attrition rate at Infosys stood at 23.4%, Wipro average at around 17% and TCS shed
nearly 48,000 employees last year, averaging at 11.8% in the last quarter of fiscal year 2018-
19.

Subhash Khare, Vice President, Human Resources, Wipro Ltd. told DNA "We find that
there is a higher percentage of attrition at the junior levels, as compared to middle or senior
management. The reasons would range from higher studies to or relocation to another city or
better opportunities which usually come with more compensation." Infosys spokesperson,
too, seconded Khare of Wipro and said, "The industry does see seasonal increases in attrition
usually due to employees opting for higher education or an increase in opportunities arising
out of industry growth. Over a period of time, the numbers tend to average out."

TCS's Executive Vice President and Head of Global Human Resources, Ajoyendra
Mukherjee, told DNA on April 18 the reasons for high attrition rate are the buoyant job
market. "Job opportunities in the market are good," he said. The reasons for this high attrition
rate in Indian IT are many. The sector believes that most of the hiring is taking place
laterally, i.e. within services industry as the prospects in the sector are growing. Khare said,
"While there is a segment of talent in the IT industry, which is exploring opportunities at
start-ups, it is a relatively small number.

Most people who leave usually join another services organization." Over the past year,
companies like TCS and Infosys have relied on bonuses and special rewards to its employees
but the effects of those in stemming attrition are yet to be seen. TCS, which celebrated its
10th anniversary of its listing on the Indian stock markets gave out a hefty Rs 12,750 crore
payout as dividends to its shareholders, decided to give a one-time bonus of Rs 2628 crore to
its employees as part of the same celebrations. Although, the company claimed that the aim
of this bonus isn't to check attrition but it expects a positive impact on voluntary separations.
In January this year, Infosys said that the company offered 100% bonus to its employees and
doled out 3000 iPhones to best performers, in order to stem attrition.

Manik Taneja and Ruchi Burde of Emkay Research had written in their report on
“Infosys’s recent steps in restoring regular wage hike cycle, better variable pay-outs as well
as increased promotions should temper attrition over the next few quarters in our view.”

The three, however, are not bogged down by the numbers. Infosys spokesperson said, "We
have not seen any significant impact on our business performance as we have a robust talent
fulfillment model that operates real time to cover gaps caused by attrition."

Whatever the case may be, it is clear that the companies are uncomfortable with the high
churn out rate of its employees and are trying various incentives including hefty bonuses.
How long will these strategies work and whether the high attrition rate will have an impact on
the business going forward is something only time will tell. Infosys however, appears to be
having a particularly difficult time with staff as it undergoes a restructuring aimed at lifting
growth to match rivals including sector leader Tata Consultancy Services Ltd and third-
ranked Wipro Ltd.
CHAPTER-10
FINDINGS
 Findings

 The major reason of attrition rate is less pay followed by the career opportunities.

 Very less amount of people leave organization for the reason of transportation and

work process.

 Employees are ready to work with any process with required efforts if they are getting

fair salary and growth opportunities.

 Infosys, appears to be having a particularly difficult time with staff as it undergoes a

restructuring aimed at lifting growth to match rivals including sector leader Tata

Consultancy Services Ltd and third-ranked Wipro Ltd.

 Chapter 11
SUGGESTIONS
 Suggestions

1. Management should change autocratic management style in order to reduce the job
attrition.

2. Provide some activity or programs for stress relieving for its employees.

3. Repeated Work should be avoided and recognitions of talent should be top priority for
management. The study found out that all three big IT companies which I included in
this report lacks it.

4. Provide opportunities for career development & Bias free management to take steps to
reduce the gap in personal work.
 Chapter 12
CONCLUSION
 Conclusion

1. With more clients of the IT services companies are shifting to digital technology such as
cloud computing-led or artificial intelligence-driven operations, companies are rushing
to bridge the skills gap, the report said.

2. Less pay and no growth opportunities are the major reasons for employee to leave the
organization.

3. The employees are ready to put efforts in the work if they are getting paid very well.

4. Transportation & Work Process very less matters employees to perform their tasks.

5. Workers are the assets of the organization. If the employees are not satisfied by the
services and benefits provide for them then that can worstly impact to the work
environment and obviously the efficiency.
 Chapter 13
LEARNINGS THROUGH
PROJECT
 Learnings

1. Companies are growing their employee retention rates by studying the employee
behavior and the psychology.

2. The money and growth opportunities are the expectation from the employees to work
efficiently.

3. Attrition is obvious and it does not affect to the organizational reputation.

4. Comparing to the huge population and the unemployment rate, the attrition of employee
is not such a big issue but that is required to retain the critical & right talent of the
organization
 Chapter 14
BIBLIOGRAPHY
 BIBLIOGRAPHY

BOOKS AND REFERENCES:

1. Mobley, W. H. (1982). Employee Turnover: Causes, Consequences & Control

Reading, MA: Addison Wesley.
2. Chandramohan A and Vasnthikumari K (2006), "Attrition: A Predicament for ITES in
India", Journal of Management Matters, Vol. 1, No. 6, pp. 25-31.

JOURNALS:

 https://www.financialexpress.com/industry/tcs-q4-results-2018-total-
attrition-rate-falls-to-11-8-has-about-4-lakh-employees/1138639/

 https://economictimes.indiatimes.com/tech/ites/infosys-wipro-tcs-lose-over-
100000-people-in-last-four-quarters-as-automation-kicks-
in/articleshow/48258813.cms

 https://www.ibtimes.co.in/tcs-beats-infosys-wipro-attrition-rates-687306

 http://ijcem.in/wpcontent/uploads/2015/05/Attrition_in_IT_Sector.pdf

 https://www.iujharkhand.edu.in/Nancy-Kumari-Thesis.pdf

WEBSITES:

 www.tcs.com
 www.wipro.com
 www.infosys.com
 www.shodganga.com
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