Project Report On Employee Attrition

“A STUDY ON EMPLOYEE ATTRITION”
CHAPTER-1
INTRODUCTION
HUMAN RESOURCE
Meaning of Human Resource

Human resources or HR is the department of a company that hires, administers,
and trains personnel. Human resource is a significant asset to a business or organization
regarding abilities and skills.
The term also refers to the people who make up an organization’s workforce at the
company or national level.
HR plays a key role in helping companies deal with a fast-changing environment

and the greater demand for quality employees.
John R. Commons, a pioneering economist, first coined the term “human

resource” in his book "The Distribution of Wealth," which was published in 1893.
However, it was not until the 19th century when the developed HR departments to
address misunderstandings between employees and their employers.
Research conducted by The Conference Board has found six key people-related

activities that HR must effectively do to add value to a company.
These include:
 Determine the need of employees

 Train employees both internally and externally
 Recruit new workers
 Manage workforce’s payroll, compensation and benefits.
 Developing competencies that enhance individual and organizational
performance
 Increasing the innovation, creativity, and flexibility necessary to enhance
competitiveness
 Applying new approaches to work process design, succession planning,
career development, and inter-organizational mobility
 Managing the implementation and integration of technology through
improved staffing, training, and communication with employees
HR (HUMAN RESOURCE) MANAGER

HR Manager is a person who is incharge of the department that deals with the
employment, training, support, records and other activities of a company’s employees.
Duties of human resource manager
 Helping and advising line managers.

 Prepare job analysis, job description and job specification.
 Searching for prospective employees.
 Conducting various selection test.
 Conducting induction program.
 Identifying training needs.
 Administering salary and employee benefits.
 Maintaining sound relationship between employees.
HUMAN RESOURCE MANAGEMENT
Meaning
Human Resource Management or HRM is the practicing of managing people to
achieve better performance.
Human Resource Management is the process of recruiting, selecting, inducting
employees, providing orientation, imparting training and development, appraising the
performance of employees, deciding compensation and providing benefits, motivating
employees, maintaining proper relations with employees and their trade unions, ensuring
employees safety, welfare and health measures in compliance with labour laws of the
land.
Definition of human resource management
“Human Resource Management planning, organizing, directing, controlling of

procurement, development, compensation, integration, maintenance and separation of
human resources to the end that individual, organizational and social objectives are
achieved.”
BY EDWIN FLIPPO
Features of Human Resource Management
Everything you need to learn about the features and characteristics of human
resource management.
According to V. P. Michael, the feature of the human resource management is to

“reflect a new philosophy, a new outlook, approach and strategy, which views an
organization’s manpower as its resources and assets and not as liabilities or mere hands”.
Thus, human resource or manpower is considered today to be the vital resource to
develop the organization.
 It is decision oriented
 It is employee oriented
 It focuses on providing opportunities
 It is concerned with People policies
 It covers all levels of human resource
 It is concerned with development of human resource
 Comprehensive function
 It is an multidisciplinary activity
 Integration of goals
 It is performance oriented
 It is challenging function
Objectives of human resource management
 To achieve the organizational goals by proper utilization of human

resources.
 To develop and maintain healthy working relationships among all the
employees and to adopt sound, desirable organization structure.
 To integrate individual and group goals within an organization.
 To create opportunities and facilities for individual or group developments
according to the growth and development of the organization.
 To identify and satisfy individual and group needs, such as fair wages and
salaries, incentives, welfare facilities, social security, prestige, recognition,
security, status etc.
 To motivate the employees and keep their morale high.
 To develop and maintain healthy relations between management and
employees.
 To develop the human assets continuously through the training and
development programme.
 To contribute in minimization of socioeconomic evils such as
unemployment problems, in equal distribution of income and wealth. More
employment opportunities for women etc.
 To provide an opportunity to employees to participate in management.
Scope of human resource management
The scope of Human Resource Management refers to all the activities that come
under the banner of Human Resource Management. These activities are as follows.
 Human resources planning: Human resource planning refers to a

process by which the company to identify the number of jobs vacant, whether
the company has excess staff or shortage of staff and to deal with this excess or
shortage.
 Job analysis design: Another important area of Human Resource
Management is job analysis. Job analysis gives a detailed explanation about
each and every job in the company.
 Recruitment and selection: Based on information collected from job
analysis the company prepares advertisements and publishes them in the
newspapers. This is recruitment. A number of applications are received after the
recruitment, interviews are conducted and the right employee is selected thus
recruitment and selection are yet another important area of Human Resource
Management.
 Orientation and induction: Once the employees have been selected
an induction or orientation program is conducted. This is another important area
of Human Resource Management.
 Training and development: every employee goes under training program
which helps him to put up a better performance on the job training and
development is one area where the company spends a huge amount.
 Performance appraisal: Once the employee has put in around 1 year of
service, performance appraisal is conducted that is the Human Resource
department checks the performance of the employee. Based on these appraisal
future promotions, incentives, increments in salary are decided.
 Compensation planning and remuneration: There are various rules
regarding compensation and other benefits. It is the job of the Human Resource
department to look into remuneration and compensation planning.
 Motivation, welfare, health and safety: Motivation becomes important to
sustain the number of employees in the company. It is the job of the Human
Resource department to look into the different methods of motivation
 Industrial relations: Another important area of Human Resource

Management is maintaining co-ordinal relations with the union members. This
will help the organization to prevent strikes lockouts and ensure smooth
working in the company.
Importance of Human Resource Management
 To provide, create, utilize and motivate employees to accomplish

organizational goals.
 To secure integration of individual and groups in securing organizational
effectiveness.
 To create opportunities, to provide facilities, necessary motivation to
individual and group for their growth with the growth of the abortionist by
training and development, compensation etc.
 To employ the skills and ability of the workforce efficiently, i.e., to utilize
human resources effectively.
 To increase to the fullest the employee’s job satisfaction and self-
actualization; it tries to prompt and stimulate every employee to realize his
potential.
 To create a sense and feeling of belongingness team-spirit and encourage
suggestions from employees.
 To help maintain ethical policies and behaviour inside and outside the
organization.
Evolution of human resource management
Human resource management is evolved from the Personnel management which

was erstwhile management system which used to manage employees. To know evolution
of personnel management one needs to see the history of centuries of research by great
psychologists on human behaviour and their response at particular situations. One among
them was Elton Mayo who was a psychologists from the Australia, did many
experiments on human behaviour at different situations in 1924. He strongly believed in
work life balance for improving productivity of workers and did emphasis on human
relations influence the productivity of workers and finally he has been regarded as father
of Human resources management.
Going back to roots of evolution Personnel management, Robert Owen was

regarded as creator and originator for introducing reforms for workers in his own Lanark
cotton mills. He created a principle of 8 hours day work, 8 hours rest and 8 hours sleep.
Owen identified the importance of better working conditions at workplace and its impact
on the productivity and efficiency of the workers. Owen after implementation of better
working conditions at workplace, he observed change in the productivity of his workers
as their efficiency increased. He in those olden days implemented many social and
welfare practices for his workers and saw his workers got happy, motivated and worked
better. Therefore he was referred as father of Personnel management.
It's believed that the first personnel management department (later evolved as
Human resource management) began at the National Cash Register Co. in the early
1900s, according to a Human Resource Magazine article. After several strikes and
employee lockouts, NCR leader John H. Patterson organized a personnel department to
handle grievances, discharges, and safety, as well as training for supervisors on new laws
and practices.
Process of Human Resource Management
The general HRM processes are as follows:
1.Recruitment-
It is a positive process of posting job openings and attracting prospective
employees to apply for their desired job openings in an organization.
2.Selection-
Selection involves eliminating the unsuitable candidates through the
process of tests or interviews and identifying the suitable ones, which are the best fit
for the positions.
3.Hiring-
This entails to the process of officially offering the job to the ideal
candidate and giving them the date of joining.
4.Training and development-
The hired candidates are given training and their skills are brushed so that
they become more efficient in their work and handle future challenges.
5.Performance management-
There should be proper management of the work done and the future goals.
Performance management refers to appraising the performance of the employees and
enhancing it. For such a management, it is necessary to encourage the employees so
as to raise their confidence levels
6.Remuneration to employees and benefits-
Fair salary or remuneration plays a very important role in motivating an
employee to accomplish organizational goals. The rewards not just includes salaries,
but it also includes incentives and fringe benefits.
7.Employee Relations-
There should be a sound relation between the employee and the
organization. There are various factors which motivate as well as demotivate the
employees to stick with the organization. These factors include working
environment, labour law and relations, compensation, etc.
Recent Trends In HRM

 Alteration in the rules of overtime.
 Increment in the utilization of data and analytic tools
 Requirement of integrated work force management system
 Priority- engagement of employees

 More millennial merging of business
 Remaking performance reviews
 Development in the human side
 Clouds remains in the projection
 Going mobile
EMPLOYEE ATTRITION
1.1. Introduction
In the best of worlds, employees would love their jobs, like their co-workers,
work hard for their employers, get paid well for their work, have ample chances for
advancement and flexible schedules so they could attend to personal or family needs
when necessary.
Normally, number of employees’ leaves organization is always high. So for HR

manager it is a big challenge to maintain the attrition rate of their organization. HR
Manager is not only required to fulfil this responsibility, but also find the right kind of
people who can keep pace with the unique work patterns in the industry. The toughest
concern for an HR Manager is However the attrition rate.
Employee Attrition is the reduction of staff by voluntary or involuntary reasons.

These can be through natural means like retirement, or it can be through resignation,
termination of contract, or when a company decides to make a position redundant.
Employee movement is unavoidable aspect of doing business. Workers graduate

from school, leave the area or move on to other opportunities better suited their skills.
All of these are signs of healthy employment patterns and are not indicators that the
company has a problem with attrition. However, issues can sometimes manifest in the
workplace that cause employees to leave for other reasons.
Reducing staff by attrition naturally is less devastating to company morale.

However, it can still have a negative impact on the remaining employees if it leads an
increase in their workload. It also can limit promotional opportunities and movement
with the company, resulting in an unhappier in a workplace or more attrition than
intended.
1.2. MEANING AND DEFINITION OF EMPLOYEE

ATTRITION
Meaning
Attrition in business describes a gradual but deliberate reduction in staff numbers

that occurs as employees retire or resign and are not replaced. The term is also
sometimes used to describe the loss of customers or clients as they mature beyond a
product or company's target market without being replaced by a younger generation.
Attrition is one way a company can decrease labour costs without the disruption
of layoffs. The wearing down of an Adversary, making him weaker by repeal attacking
them or wearing down of resources i.e. the process of reducing the number of people
who are employed by an organization by not replacing people who leave the job.
Definition
 “A reduction in the number of employees through retirement, resignation or

death”
 “Normal and uncontrollable reduction of a work force because of retirement,

death, sickness, and relocation. It is one method of reducing the size of a workforce
without management taking any overt actions.”
-dictionary of business terms
 “A gradual reduction in work force without firing of personnel, as when workers

resign or retire and are not replaced”
-Phill and Ralph peters
How Attrition Works

This type of reduction in staff is called a hiring freeze. It is one way a company can
decrease labour costs without the disruption of layoffs.
Reducing staff by attrition naturally is less devastating to company morale. However, it

can still have a negative impact on the remaining employees if it leads to an increase in
their workload. It also can limit promotional opportunities and movement within the
company, resulting in an unhappier workplace or more attrition than was intended.
Attrition versus Layoffs
Changes in management, company structure, or other aspects of a company's operations

can cause employees to leave voluntarily, resulting in a higher attrition rate.
Laying off employees results in attrition as long as the company doesn't immediately hire
as many new employees as it laid off. For example, a company might reduce its
administrative staff by six in order to create a new internet team of six.
Turnover occurs in a company for many reasons. It can only be called attrition if the
company decides not to fill the vacated position.
When a company is faced with a financial crisis, it must make tough calls and cut back
its workforce in order to stay afloat. In these cases, the company might implement a
layoff with no intention of filling those positions again.
In less drastic cases, such as changes in the company structure or business model or a
merger, certain departments are trimmed or eliminated. This usually requires layoffs
rather than attrition.Unlike layoffs, a reduction in staff due to attrition is voluntary. The
employee has decided to take a new job, retire, or move to another new city. An attrition
policy takes advantage of this inevitable changeover to reduce overall staff.
1.3. Attrition cycle

Drivers of Decreased
attrition Productivity
DECREASING
CYCLE OF
ATTRITIONS
cost
Reductions/A
Greater
usterity attrition
Increased
costs/
Reduced
Revenue
 Attrition brings decreased productivity.

 People leave causing others to work harder.
 This contributes to more attrition, which contributes to increased costs and
lower revenue.
 This forces additional cost reduction and austerity measures.
 This in turn makes working more difficult, causing the best performers
with the most external opportunities to leave.
Employee Attrition a big cause for concern for firms, ranges between 15 percent
and 20 percent. A company is not hurt because a certain people has left. The company is
hurt when he/she takes away certain knowledge, and there is no ready replacement in the
market. Attrition, as such, is not a bad phenomenon. It has been known to exist all along.
However, when jobs were scarce, the technology change was less rapid, voluntary
attrition was small and companies managed it. However, with technology changing
rapidly and manpower costs increasing, attrition is high and hurts badly.
Large players often use money power to lure talent from smaller players.
Companies also use the location bait to attract employees. While a certain percentage of
manpower turnover is desirable to keep fresh blood coming in, and removing dead wood,
higher percentages are definitely not good indicators of an organization’s culture and
people practices.
It is a challenge to find the right talent within constraints such as location, nature
of work compensation and benefits.
Fresh graduates joining an organization make it a point to live within the first
year. They equip themselves not for performing there current job but for attracting a new
one. Many a time, there is a migration from bigger companies to smaller companies too,
mainly because of the prestige associated with a certain project or a particular client. In
some cases, smaller companies are even better pay masters than larger brands. The
success rates of retention programs are much higher if the management uses direct-
employee-focused, approach and is ready to invest resources for the same.
1.4. Types of attrition

1. Good attrition-
When less productive employee leaves organization automatically.
2. Bad attrition-
When high productive or an employee who is a performer leaves
the organization.
3. Market driven attrition-
Attrition occurs when the organization is influenced by market
changes.
4. Process driven attrition-
When employees leave organization because of current systems.
1.5. Importance of attrition

High attrition is a cause of concern for a company as it presents a cost to the

company. The company loses on the amount it spent to recruit and select these
employees and to train them for their respective jobs. The company may also have to
spend additional money to fill the vacancies left open by these employees. Hence it
becomes critical for a company to keep a tad on the attrition rate which down-sizes the
employee base.
1.6. Reasons of attrition
There are a few ways in which attrition happens:
1. Voluntary resignation:
this is the type of attrition where the employees leave on their own.
The employees leaving the company generally leave due to a variety of reasons.
a. Better pay in a different organization.
b. Mismatch of job role and skill of the employee.
c. Limited growth opportunities.
d. Lack of appreciation.
e. Stress and work life imbalance.
f. Expectations is not shaped properly.
g. Odd working hours/Early morning-night shifts.
These few points mentioned are very well known when it comes to voluntary
resignation.
2. Involuntary attrition:
involuntary attrition is when an employee gets terminated from his
job due to lack of performance or due to ethical misconduct.
These kinds of attrition can be actually aid in the professional development of
organization as the less productive employees gets filtered out of the system.
3. Retirement:
it is also untouched facet of involuntary attrition. Once an
employee finishes his/her tenure at a company and retire, it is also counted as attrition.
Employee retirement is usually a big blow to the company if they are not prepared for it.
Any potential employee getting ready for the retirement should be identified before by
the organization.
4. Natural attrition:
it takes place due to the causes and factors that are beyond the
control of the individual and organization as well. This factors may include end of life,
insanity etc.
1.7. Cost of attrition
Employee attrition could affect 40% of company profits. Around 150% of

employee’s salary. Tangible recovery costs includes recruiting, rehiring and retraining.
In fact, a new employee typically is a cost to the company until he or she reaches a
threshold of productivity. In higher level technical and management positions this can be
exceed 6 months. For companies that have cut all expenses not deemed mission critical,
such as training and recruitment efforts, the lag in performance, additional cost, and
stress on remaining employees creates a vicious downward spiral.
 Cost of person(s) who fills in while the position is vacant. This can be
either the cost of a temporary or the cost of existing employees performing the
vacant job as well as their own.
 Cost of lost productivity at a minimum of 50% of the person’s
compensation and benefits cost for each week the position is vacant, even if
there are people performing the work.
 Cost of conducting an exit interview to include the time of the person

conducting the interview, the time of the person leaving, the administrative
costs of stopping payroll, benefit deductions, benefit enrollments and the cost of
various forms needed to process a resigning employee.
 Cost of the manager who has to understand what the work remains, and
how to cover that work until a replacement is found.
 Cost of training that the company has invested in that employee who is
leaving. It includes internal training, external programs and academic education.
 Cost of severance and benefits continuation provided to employees who
are leaving that are eligible for coverage under these programs.
1) Recruitment costs
Cost of internal recruiter’s time to understand the position requirements,
develop and implement a sourcing strategy, review candidates background,
preparation and conducting interviews, conduct reference checks, make
employment offer and notify unsuccessful candidates.
Cost of the hiring department (immediate supervisor, next level managers,
peers and others) time to review and explain position requirements, review
candidates’ background, conduct interviews, discuss their assessments and
select a finalist.
Cost of various candidate pre-employment tests to help assess a
candidates’ skills, abilities, aptitude, values and behaviour.
Cost of advertisements.
2) Training costs
Cost of orientation.
Cost of departmental training.
Cost of supervisory time spent in assigning, explaining and reviewing
work assignments and output. This represents lost productivity of the
supervisor. Consider the amount of time spent at 7 hours per week for at least 8
weeks.
3) Lost Productivity Costs

As the new employee is learning the new job, the company policies and practices,
etc. they are not fully productive. Use the following guidelines to calculate the cost of
this lost productivity:
Cost of co-workers and supervisory lost productivity due to their time
spent on bringing the new employee “up to speed”.
Cost of mistakes the new employee makes during this elongated
indoctrination period.
4) New Hire Cost

Cost of bring the new person on board including the cost of the person on
the payroll, establish computer and security password and identification cards,
business cards, internal and external publicity announcements, telephone hook-
ups, cost of establishing email accounts, costs of establishing credit card
accounts, or leasing other equipment such as cell phones, automobiles.
1.8. Positive side of attrition
Attrition is not always negative, it may have some positive results also. Some
employee turnover positively benefits organization. This happens whenever a poor
performer is replaced by a more effective employee, and can happen when a senior
retirement allows the promotion or acquisition of welcome ‘fresh blood’. Moderate
levels of staff turnover can also help to reduce staff costs in organization where business
levels are unpredictable month on month. In such situations when business is slack it is
straight forward to hold off filling recently created vacancies for weeks.
Some of the positive results may include the following-
 Advantages of new knowledge- New employees bring new knowledge; their
knowledge and skill may open new avenues for the organization.
 Advantage of new technology-It will decrease the cost, thus the price of
final goods/ service will be cheaper; further leading to increase in demand and profits.
 Introduction of new ideas:New ideas may help in increasing product
line and product mix or they may become helpful in starting new joint-
ventures and working in collaboration.
 Lesser negative impact of groupies-Sometimes the existing groups may be
rigid/group members may be reluctant towards others, in such a case attrition of a group
member may be positive for the organization.
 Reduction in surplus staff- It will lead to reduction in cost of
maintaining the surplus employees ultimately leading to total cost.
1.9. Mature approach towards Employee Attrition
Managers usually look for their own and for their company’s self interest in
retaining highly capable employees. It would be rare if they also keep their employees’
interests in view, and facilitate their exit, in case the promising employees want to leave
the company to pursue the next step in their careers. That would mean turning over your
best employees who could otherwise have contributed to your organization’s
profitability
1. Keeping in View the Employees’ Interests:
A manager, who genuinely cares for the employees’ interests, discusses

openly and honestly facilitates their career development, is largely responsible for the
acquisition, engagement and retention of bright and entrepreneurial employees. An
honest approach is the key to build mutual trust and to ensure longer job tenures. In fact,
the managers who do not have the employees’ best interests in mind end up in driving
them away. The employees who leave the job for professional development or to start
their own business, actually enhance the brand image of your company as a great starting
point for an excellent career.
2. Entrepreneurial Workers:
Entrepreneurs are those capable individuals who are driven by innovative

ideas and are prepared to take calculated risks. The entrepreneurial workers can add
great value to the companies that hire them. These bright employees, if they leave the
company to start their own business, they can continue to benefit the parent company by
providing valuable insights and in a variety of other ways. The employers cannot
acquiesce happily to the idea of losing their bright employees. But, instead of making it
difficult for smart and hardworking entrepreneurial workers to leave, the companies can
encourage them to stay and work at flexible timings while building their own business,
so long as it does not conflict with the parent company’s interests. The transition period
can also be used to train new employees to take up their positions.
3. The Detrimental Effects of Attrition:
Uncontrolled attrition lowers the employees’ morale, triggers more

attrition and worsens the company’s performance. Furthermore, the reduction in the
workforce overburdens the remaining employees, who may not be properly trained or
well-suited to perform the additional tasks. Losing valued employees is never a
beneficial proposition to any organization. But with adequate planning and preparedness,
it need not be an indomitable situation. Here are some ways to make Employee Attrition
less detrimental to the smooth functioning of the organization:
 Adequate Training
 Managing the Employees’ Needs and Expectations
 Quick and Efficient Recruiting Solutions
1.10. ATTRITION RATE
Definition of attrition rate
A common Attrition Rate (Churn Rate) refers to an employee or staff turnover,

but in a broader sense, the 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.
Computing organismic employee’s attrition rate enables to decide the level of

workers left over a predefined time frame, typically one year. Attrition rate incorporates
all representatives who leave the organization, regardless of whether the leaving was
deliberately and automatically.
Best formula to calculate attrition rate is:
[(number of Attrition * 100) / (actual employees + new joined)] / 100
Suppose an organization has 100 employees working. In a particular month 50

new employees join and subsequently 30 employees leave the company.
Plugging the value in formula (30/100+50-30)*100=25%. This is a very high

attrition rate. Ideally, the organization’s rate should be less than 10%.
1.11. Methods to deal with Employee Attrition
Having a straightforward approach can help reduce attrition. Here are a few
ways in which Employee Attrition gets minimized. Few pointers on how to deal
with the cost of attrition.
1. Do not skim out on the compensation:
We know it is not easy to reward your employees with a handsome

pay check. It takes a toll on the pockets of company. The organization should not to
drop below the standard norms or the average compensation awarded by your
competitors. The organization should have statistical model of the compensation
they providing and compensation provided by their competitors. Balancing the
model will see a dip in attrition and turnover rates of the company. If there are
considerable differences then they should consider re-evaluating compensation
structure.
2. Structured retirement and resignation plans:
Employers should have an idea about the employees who are about to
retire or resign. In fact, it is desirable to have an estimate of the people who are
retiring a few years in ahead. This will give the company time to prepare and
strategies for the layoff of the experienced employees. But they should be careful
while enquiring about the retirement of employees. They might get the idea of them
being bias against them due to their age. The Age Discrimination in Employment
Act (ADEA) protects employees above the age of 40 against possible
discrimination. So the company should really careful while developing a retirement
structure.
3. Professional recruitment strategy:
The recruitment is one of the more important areas the company want

to master in. This is the area in which human resource management should be very
critical in dealing with. An unclear requirement process sends mixed messages to
employee regarding his role and job due. This leads to a frustrating on boarding and
work experience for the new employee and motivates him to search for alternate
options. Establish a proper connection with previous work experience to aid
professional development. Any previous work experience in a field not related to
this organization should have a justifiable reason. If the job requires handling
finance or any tangible resources, then there should be a proper background check.
4. Change of departments:
The most important factor of Employee Attrition is the fact that

employees want a change in their career. Having an option of a change of
department in the company itself gives employees lots of freedom. This should
reduce some amount of voluntary resignation and turnover rates. Having a clear and
structured program for any employees who want to change departments goes a long
way.
5. Reward astounding effort and failure:
What makes the difference between success and failure? This is the
questions employees need to understand. Most people are so scared of failure and
setbacks that they don't really strive for an imaginative project. And those who
actually undertake these aspirational projects and fail, they are usually canned.
6. Train middle managers:
92% of employees leave their job due to unapologetic and rude

bosses. Middle managers and supervisors should be properly trained to handle their
subordinates to reduce attrition. Conduct sessions for middle managers with the
human resource management team to develop people skills.
7. Engaging employees:
A great boss knows how to get his employees excited for even the
mundane of activities. It is not possible to reduce turnover rates without engaging
employees. Conduct periodic feedback session to evaluate the state of your
employee. A disengaged employee is like a bad apple. The remaining employees
are likely to feed on his negativity. Disengaged workforce increases the attrition
rate. Identify potential employees who are likely to leave. After identification
comes rectification. The organization can also go a reward based system at
workforce to engage employees further. On top of it, a general discount program
will work wonders.
8. Professional development through learning atmosphere:
70% of millennial s would quit their job if the learning potential

was saturated. Create an atmosphere of learning for all the departments.
Introducing new techniques and technology at workplace will not only aid
professional growth but also help to keep in check the attrition rate. Conduct
seminars and short courses to enhance employee's skill. This will not only
reduce employee turnover but also make company for new talents. Take
frequent feedback from employees on whether they are happy with their
profession. Ask them the direction in which they would like to see their career
move and whether the company is doing enough to satisfy their professional
hunger.
1.12. EMPLOYEE RETENTION
Employee retention refers to the various policies and practices which let the
employees stick to an organization for a longer period of time.
It is a process in which the employees are encouraged to remain with the

organization for the maximum period of time or until the completion of the project.
Employee retention is beneficial for the organization as well as the employees.
What is RETENTION all about?

R- REMUNERATE COMPETITIVELY
E-ENCOURAGEMENT AND EXPECTATION
A-TRAINING AND DEVELOPMENT
I-INFORM AND INVOLVE
N-NURTURE
Strategies for Retention
 Fostering a Culture of Management Concern-
Companies today must show an interesting 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.
 Providing Relevant Training:
Companies should think of training as career development.
 Job Enlargement:
Employees should not be locked up into positions because they’re
“so good at it” managers must continually ask: “what’s the next step for this employee?”
In other words more tasks and responsibilities should be assigned to make the position
more challenging.
 Realistic goals
 Define career path and demystifying career growth- proper succession
planning
 Rewarding Managers:
Many companies say they value people and train their management
team to cope up with people issues. Yet these same managers are too often rewarded
solely on their technical skills and financial results.
 Strengthening the Team:
Marginal performers in management must be weeded out.
 Participation in Management
 Profit sharing
 Gain sharing
 Fair Performance Appraisal
 Clearly identify the people you want to keep-
Many executives have focused on whom they should get rid of
rather than whom they should keep. Unfortunately, those who decide to leave are often
high impact performers who can find other work quickly.
 Effective Communication System-
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 should be eliminated, and growth opportunities should be provided.
Other retention strategies
 Corporate social responsibility towards employees

 Applying emotional intelligence
 Change in leadership style
 Flexibility
 Conducting stress interview.
ATTRITION IN PPMS
In PPMS it is a big challenge of HR manager to maintain the attrition rate of the

organisation. The main reason in the attrition in the PPMS is employees pursuing for new
opportunities and also regarding compensation and other benefits. It is mandatory to serve
a notice period in PPMS.
PPMS conduct several counselling programs for employees. There are certain policies in
PPMS to retain the employees. And there is also a open flow communication in the
organisation which helps employees to be free to express everything to their superiors and
subordinates.
PPMS promotes employees at regular interval according to their work without any bias.
They use promotions, special training, and support and motivation of employees as a tool
to retain the employees of the organisation.
CHAPTER-2
RESEARCH DESIGN
RESEARCH DESIGN
2.1. TITLE OF THE STUDY
“A STUDY OF EMPLOYEE ATTRITION IN PPMS MERCHADISING AND

FIELD MARKETING”
2.2. STATEMENT OF THE PROBLEM
The study is mainly undertaken to identify the level of employee’s attitude,

dissatisfaction factors they face in organization and for what reason why they leave the
current job and why they prefer to change their job.
2.3. SCOPE OF THE STUDY
The aim of this study was to analyse the factors which are central to Employee
Attrition. The study was conducted on employees of PPMS merchandising and field
marketing, Bangalore. Employees were interviewed with questionnaires which had
structured questions on their importance attached to various factors behind Employee
Attrition. The study focused on the Employee Attrition and an in depth look into reasons
for attrition, and its effect on organization and how to retain employees etc.
2.4. OBJECTIVES OF THE STUDY
 To understand the factors central to attrition.

 To calculate and analyse the attrition rate.
 To take efforts and measures to improve the situation and conditions of
employment for retaining key talent.
 To suggest the activities that they might undertake in order to decrease
attrition rate and retain employees.
2.5. SAMPLING
The sample is a basic unit consisting of the elements of the population to be

sampled. Sample population includes employees from PPMS merchandising and field
work, Bangalore. The population includes employees from the various department in the
organization.
Sampling method: a formal descriptive study was conducted and questionnaire

is based on descriptive analysis hence a systematic RANDOM sampling is used for
analysis.
Sample size: sample size means the number of sampling units selected from the
organization for investigation. The total sample size taken for this study was 70.
Target respondents: employees of PPMS merchandising and field marketing.
2.6. METHODOLOGY
The methodology used in this study is convenience sampling. The questionnaire

consists of number of questions written in a definite order on a form. The questionnaire
is given to respondents who are expected to read, understand and write down in the
space meant for the purpose in the questionnaire itself. In this study, the questionnaire
are presented with exactly the same wordings and in the same order to all the
respondents. The study is random sampling where each and every person in the
population has an equal chance of includes in the sample. The survey includes all kinds
of age groups, professions, social classes etc.…
A) Data Base of the Study
Field of the study
The field of the study is Employee Attrition and selected to the study the
Employee Attrition in PPMS.
Survey undertaken
The survey was undertaken at PPMS, India’s largest, most professional, and most
established fully compliant managed merchandising, promoter and field execution
services provider.
Research procedure
1. Questionnaire forms were distributed to the existing customers for the
collection of data.
2. Spot study was undertaken.
Approach study
The respondents were kindly requested in order to fill up the questionnaire.
B) METHODS OF DATA COLLECTION

The data for the study was obtained from both primary and secondary sources.
Primary data
The tools used for the primary data collection is purely questionnaires.
Secondary data
The secondary data is collected with the help of various strategies.
Questionnaires
With the help of questionnaires, the data was collected from the existing
customers.
Website
The website www.PPMS.com was made use of to collect the information
regarding PPMS.
Survey
In this survey questionnaire forms were distributed to all kinds of people of
different age group, of different professions, major residential areas of Bangalore
district. Immediately the questionnaire forms were collected from the respondents.
Field work
70 respondents have filled the given questionnaire and it has been
distributed to people of various age groups. This has been done by distributing
questionnaires to the respondents.
2.7. Purpose of the study

The purpose of this study was to analyse the factors which are central to
Employee Attrition. The study was conducted on employees of PPMS merchandising
and field marketing, Bangalore. Employees were interviewed with questionnaires which
had structured questions on their importance attached to various factors behind
Employee Attrition. The study focused on the Employee Attrition and an in depth look
into reasons for attrition, and its effect on organization and how to retain employees etc.
2.8. Limitations of the study
The study focused on the need to understand how Employee Attrition influenced in
PPMS. The study was characterized by the employees in PPMS.
1. The study was only limited to the Bangalore region, hence its result cannot
explain Employee Attrition in other region.
2. Another potential restriction that could have been encountered was that
participants might not have disclosed all the information related to their
experiences.
3. Participants feared they would be victimized by PPMS Pvt Ltd
administrators despite their being given the assurance of the privacy of the
process of collected data.
4. In addition, another limitation that was noted was the study could not keep
the originality of study due to transcription of tape recorded data; this led to the
loss of the social encounter.
5. Employees may not give the correct answers for some questions due to
hesitation.
6. Time has been a major constraint throughout the study as it has been only
for less duration.
CHAPTER 3
COMPANY PROFILE
PP MERCHANDISING SERVICES PVT. LTD

The company was founded in 1999, this is India’s largest, most professional, and
most established fully compliant managed merchandising, promoter and field execution
services provider. At PPMS Field Marketing Services, they shape buyer behaviour along
the path to purchase. they are a leader in end-to-end in-store execution through
promoter-based, shopper connect and merchandising, specializing in bringing customers
products and communication to the fore and creating engaging experiences for shoppers
by deploying skilled people and technology.
Retail is a dynamic environment – they’ve continuously innovated and built

capabilities to deliver best-in-class in-store execution. Think of them as a one-stop-shop
for customer merchandising, promoter, sales and field-marketing needs! They are
pioneers in the field of mobile reporting – their superior reporting solution FRAMe is
customize and can be implemented for all front-line employees. They know the
challenges modern-day brands and retailers face and how to solve them by reaching
beyond merchandising and extending services in kitting and repacking, auditing, and
point-of-purchase execution.
Managing scale and spread come naturally to them – they cover 1,40,000+ stores,
make over 600,000 calls every month and have a national footprint reaching beyond 800
cities. They’ve partnered with leading brands in the FMCG, FMCD, mobile, beverages,
telecom, e-commerce, banking, broadcasting and other industries. They’re trusted by the
finest brands in the country such as HUL, ITC, Marico, Nestle, Dabur, J&J, Samsung,
Vodafone, and PepsiCo, Diageo, etc. They take complete ownership of the execution
process for our clients, removing complexity and leaving them free to focus on their
sales process. Collaboratively, they deliver significantly enhanced results.
About Company
PP Merchandising Services PVT. Ltd. is a leader in offering merchandising and

field marketing services. The company was founded in 1999, this is India’s largest, most
professional, and most established fully compliant managed merchandising, promoter
and field execution services provider. PPMS is a private incorporated on 04 December
2009. It is classified as Non-government Company and is registered at registrar of
companies, Chennai. Its authorized share capital is Rs.1, 000,000 and paid up capital is
Rs.430, 530.
The company has 4500 employees, a national footprint of 600+ towns and works
with some of the marque brands in the country. Their business model supports all needs
that a customer may have at the store and includes POP design and production. One of
the only companies that offers online reporting of its filed work, PPMS works to create
benchmarks that stand out as great execution in for its customers.
Excellence in Execution is the only aim PPMS strives for. In 2007, PPMS created
the first field reporting application that any merchandising company in India had. It is
today widely applied for some of their largest clients and records close to 500000 calls a
month. They are now looking at enhancing technology capabilities to benefit from their
understanding of the retail ecosystem. In line is a POS application and then various top
notch opportunities that are hidden within the Indian retail environment. At PPMS Field
Marketing Services, they shape buyer behaviour along the path to purchase. they are a
leader in end-to-end in-store execution through promoter-based, shopper connect and
merchandising, specializing in bringing customers products and communication to the
fore and creating engaging experiences for shoppers by deploying skilled people
and technology. 20+ Years of Delivering Execution Excellence in Every Call
With 6000 employees in 800+ towns and cities, covering 140,000 + stores and
making over 600,000 calls and capturing over 1.4 million photos every month.
 Collaboratively delivering significantly enhanced results

 Demonstrated success in raising shopper engagement, sales, and revenue
 Pioneers in the field of mobile reporting with our superior reporting solution
FRAMe
 Long-term partnerships with leading brands in the FMCG, FMCD, mobile,
beverages, telecom, e-commerce, banking and other industries.
 Complete Legal Compliance including being certified by SEDEX
Directors of PPMS
 Mahimm Gupta
 Mahendra Prakash Gupta
Values
Winning at Retail Starts Here with 20 years of Delivering Execution Excellence in
Every Call. Their values are their DNA. They guide the way to work and act as strength,
helping them to build India’s largest, most professional, and most established, fully-
compliant managed merchandising, promoter and field execution services provider.
Transparency
 Working transparently with their customers and internally

 Working in collaboration with their customers
 Focus on finding solution and achieving results
Ownership
 Taking ownership of their actions and results

 Unwavering dedication and passion for the work they do
 Delighting their customers through execution excellence
Knowledge
 Investing in the best and brightest people

 Continuously building on their capabilities
 Cutting edge technology that promotes agility and quick decision making
Integrity
 Complete legal compliance including being certified by SEDEX

 Committing to the highest standards of moral and ethical business conduct
 Seeking to continually simplify and improve processes, procedures and activities
Services of PPMS
They are the India’s leading end to end in-store promoter merchandising services
and a field marketing company, delivering results by owning and managing execution
delivery, bringing transparency and immediacy in action through mobile reporting.
In-Store Promoters
In-Store Promoters provide the best opportunity to turn a shopper into a buyer by
being able to meet and engage with them face-to-face. Over half of their 6000-strong
team serve as in-store promoters focused on delivering excellence in In-store execution –
providing that extra focus needed to assist customers brand visibility, along with other
retail initiatives.
Detailing, up-selling, cross-selling and building brand by actually placing it in

the hands of the shopper is what they do best. Finding and placing the right people with
proper training, coaching and guiding them to achieve the brand’s in-store goals is what
they strive for and live to do.
Having bodies’ in-store is not good enough. Each resource is a cost and each
promoter has to be able to deliver a certain ROI to be able to justify the investment the
brand makes in that promoter in the store. Over-viewing performance, helping the
promoter contact shoppers, and being able to convert shoppers into buyers is what we
measure, review and act upon to justify the ROI for each promoter in each store.
Merchandising
Bringing products and communication to life at the store is our core strength.
They entice buyers to purchase through planogramming, positioning, displays, signage,
grouping, sampling and spotlights. From organizing planograms to the execution of
branding, fixtures, and assets – they do end-to-end field merchandising.
Their merchandisers take ownership of the output and engage with all
stakeholders to ensure that the execution is done brilliantly, on time and within
guidelines, always maximizing sales.
PPMS expertise in merchandising lies across categories such as FMCG,

Consumer Durable s, Beverages, Mobility, Telecom, Technology and others.
Across each of the following businesses, they merchandise across every type of
channel:
 Modern Trade
 Traditional or General Trade
 Kiosks
 Brand stores
 Multi-brand stores
 Others
PPMS understands the landscape of each of these channels and devises effective
merchandising plans to execute efficiently across each one them. Merchandising across
more than 140,000 stores and making over 600,000 calls/month, across 800+ towns is a
demonstration of understanding and reach across channels and geographies.
They help brands and retailers sell more – attracting shoppers and improving
sales. They leverage their field merchandising software, FRAMe, and a trained and
motivated workforce to maximize retail execution efficiency.
Channel activation
PPMS understands how boots on the field work and what processes drive field
marketing activation. PPMS has demonstrated its capabilities in many such activities,
facilitating clients’ businesses to reach new opportunities and manage channels more
efficiently.
Building new opportunities with new channels
 Using Kirana stores to become points of redistribution for E-commerce shipments

 Using traditional stores to become facilitation points for placing online orders
Building new opportunities in existing channels
 Selling Bluetooth based POS devices into traditional trade stores

 Enlisting stores to become neighbourhood hyper-local partners
Introducing a new product
 UPI based payment solutions across channels

Channel Expansion
 Increasing points of sale for beverages during season time

Channel Consolidation
 Building direct communication with distribution partners to increase subscription

and viewing of particular channels of a broadcasting client.
Auditing
Validation of execution, availability of stocks and assets, promoter working and

knowledge are key to driving a strong field operation. Utilizing field and backend photo
audits, they capture and validate data on execution health. Leverage their photo audit
expertise and technological tools to optimize quality of execution and stay ahead of
competition.
Field Auditing
With the length and breadth of their experience, they understand the KPIs and
benchmarks for success. Audit assignments can be as complex as tracking the movement
of assets from manufacturing points to installation, as large as validating thousands of
visi-coolers placed across a large geography, or as simple as verifying availability of
stocks or merchandising compliance – and each one requires subject matter knowledge
and capable hands to conduct the audit. Given PPMS’s experience in field execution and
its vast network, placing the right resources to carry out the task correctly is taken for
granted.
Back-end Photo Audit.
Using the photo audit feature in the PPMS FRAMe reporting tool, each photo
taken on a field visit can be audited through a back-end audit team. The Audit feature
enables manipulating photos to not only validate the work done and score an in-store
execution, but also allows viewing details to identify false reporting.
Kitting and bundling

PPMS Field Services can help you solve one of the biggest challenges retail can
face – kitting and bundling solutions.
One of the biggest challenges in the organized trade and increasingly in the
independent self-service stores, is the supply of pre-packaged promotions for non-factory
packed SKUs. The challenge is one of projection, volume, distribution, and delivery in
relatively small quantities over a very short time.
PPMS Field Marketing leverages its expertise to build and execute bundling and
kitting solutions. They offer the following services:
 Promo Packing Concept & Design

 Promo Pack Communication
 Packaging Material
 Packing and Labour
Their experience and expertise range from suggesting the appropriate solution and
concept, designing the packing solution, sourcing the pack-mat, printing the collateral s,
and executing the physical task of putting the products together on-the-ground.
In the past, they’ve successfully conceived and managed some of the largest
kitting operations for promo repacking for organizations such as HUL, ITC, Marico, and
Reliance Retail.
Field Reporting
A proprietary mobile field reporting tool to EMPOWER the performance of

people and retailers, FRAMe is currently used to make over 400,000 calls/month and
captures over 1.4 million photos per month
Manage all front-line employee, merchandisers and promoters reporting needs

through their mobiles using simple mobile UI and fully customizable dashboard. A full-
featured field reporting app, FRAMe can manage attendance, route journeys, increase
efficiency on calls, offer guides and resources, and provide live reporting through Geo-
location and images. Some key features are:
 Selfie-based Attendance Capturing

 Route-Planning and Call-Efficiency Prompting
 Daily work allocation and execution based on pre-set routes & journey plans
 Geo-Location (GPS) capturing for each call
 Mobile field reporting data capturing with images
 Resource centre and Guided work completion
 Bar-code Scanning & Mobile Signature Capability
 Fully Customizable Dashboard with Live Reporting

 Meaningful In-Built Analytical Reports and Insights, Exportable to Excel
 Additional Features such as Auto E mailers
Manage business by connecting all the dots viewing the data on a web dashboard
or extracting to excel to help to create own analytic s in the way they like. They can also
enable the posting of the data to in-house BI tool or server so that they can seamlessly
integrate it with other data sets and build a bigger picture of success.
Mobile Field Reporting – FRAMe
PPMS was the first to deploy large-scale, mobile-based reporting in 2008.

FRAMe (Field Reporting and Analysis Module) is proprietary mobile technology that
enables real time field reporting, helping monitor and maintain field operations
efficiently, in real time. GPS-enabled, and with an easy intuitive user interface – FRAMe
allows for daily work allocation, journey/route planning, and guided work completion
for front-line employees.
Managing attendance, recording metrics on availability, forward shelf shares,

execution, assets, GPS and time stamping, scanning, signature and anything else may
want are easily configurable to deliver a data collection and reporting experience par
excellence. Link the tool to FRAMe’s back-end photo audit functionality and that
provides a 360 degree control on operations.
Field Reporting and Analysis Module

CLIENTS OF PPMS
They are personally invested in the success of the companies that they work with.
CHAPTER 4
DATA ANALYSIS AND INTERPRETATION

1.1 TABLE
Table showing the Age group of the Respondents.
NO. OF
PERCENTAG
PARTICULARS RESPONDENT
E
S
20-30 years 27 38.6 %

30-40 years 18 25.7%
Above 40 years 25 35.7%
Total 70 100
ANALYSIS:
From the above table it can be analyzed that 38.6% of respondents are between the age
group of 20-30 years, 25.7% of respondents are between 30-40 years and 35.7%
respondents are above 40 years.
1.1 Graph
Graph showing the age group of the respondents

AGE GROUP OF THE RESPONDENTS

45
40
38.6
35
35.7
30
25 27
25.7 25
20
18
15
10
0
20-30 years 30-40 years Above 40 years
NO. OF RESPONDENTS PERCENTAGE
INTERPRETATION:
It is observed from the above graph that 38.6% of respondents are 20-30 years of age
group, 25.7% of respondents are 30-40 years and 35.7% of respondents are above 40
years. Thus, it is concluded that highest number of respondents are of 20-30 years age
group.
1.2 TABLE
Table showing the work experience of the respondents
NO. OF PERCENTAG
PARTICULARS
RESPONDENTS E
Less than 1 year 30 42.85%
1-3 years 17 24.28%
3-5 years 13 18.57%
More than 5 years 10 14.28%
Total 70 100
ANALYSIS:
From the above table it can be analysed that 42.85% of respondents have less than 1 year
of experience, 24.28% of respondents have 1-3 years of experience, 18.57% of
respondents have 3-5 years of experience and 14.28% of respondents have more than 5
years of experience in PPMS.
1.2 GRAPH
Graph showing the work experience of the respondents

WORK EXPERIENCE
Number of Employees
30
4
3
17
2 13
10
4
1 3
2
1
less than 1 year 1-3 years 3-5 years more than 5 years
INTERPRETATION:
From the above graph it is observed that 42.85% of respondents have less than 1 year of
experience, 24.28% of respondents have 1-3 years of experience, 18.57% of respondents
have 3-5 years of experience and 14.28% of respondents have more than 5 years of
experience in PPMS. Thus, it is concluded that highest number of respondents have less
than 1 year of experience.
1.3 TABLE
Table showing the reason for attrition according to the

respondents
PARTICULAR NO. OF
PERCENTAGE
S RESPONDENTS
Health 12 17.14%
Shift timings 13 18.57%
Stress & personal

8 11.42%
issues
Compensation and
12 17.14%
benefits
Pursuing new
18 25.71%
opportunities
Other reasons 7 10%
Total 70 100
ANALYSIS:
From the above table it can be analysed that 17.14% employees leave the organization
due to health issues, 18.57% due to shift timings, 11.42% due to stress and personal
issues, 17.14% due to compensation and benefits, 25.71% due to pursuing new
opportunities and remaining 10% due to other reasons.
1.3 GRAPH
Graph showing the reason for attrition according to the

respondents
REASON FOR ATTRITION
10%
17%
health issues
shift timmings
stress and personal
26% issues
19% compensation and
benefits
pursuing new
opportunities
11% others
17%
INTERPRETATION:
From the above graph it is observed that 17.14% employees leave the organization due
to health issues, 18.57% due to shift timings, 11.42% due to stress and personal issues,
17.14% due to compensation and benefits, 25.71% due to pursuing new opportunities
and remaining 10% due to other reasons. Thus, the highest percentage of employees
leave the organisation by pursuing new opportunities.
1.4 TABLE
Table showing whether there is a mismatch between

respondents and their job profile.
NO OF
PARTICULAR PERCENTAG
REPSPONDENT
S E
S
Yes 03 4.28%
No 67 95.71%
TOTAL 70 100
ANALYSIS:
From the above table it can be analysed that 95.71% of respondents does not find
mismatch between them and their job profile, and 3% of respondents find mismatch
between them and their job profile.
1.4 GRAPH
Graph showing whether there is a mismatch between

respondents and their job profile.
MISMATCH BETWEEN RESPONDENTS AND THEIR JOB PROFILE.

100
90
80
70 no ; 67
60
50 95.71
40
30
20
10 yes; 3
0 4.28
yes no
no of employees Series 3
INTERETATION:
From the above graph it is observed that 95.71% of respondents does not find mismatch
between them and their job profile, and 3% of respondents find mismatch between them
and their job profile. Thus, the highest percentage of respondents does not find mismatch
between them and their job profile.
1.5 TABLE
Table showing whether respondents are comfortable with the

nature of the job
Particular No of respondents Percentages
Highly
10 14.28%
comfortable
Comfortable 20 28.57%
Neutral 30 42.85%
Uncomfortabl
10 14.28%
e
Total 70 100
ANALYSIS:
From the above table it can be analysed that 14.28% of respondents feel highly
comfortable with their nature of job, 28.57% of respondents feel comfortable, while
42.85% respondents feel neutral and 14.28% of respondents feel uncomfortable with the
nature of the job.
1.5 GRAPH
Graph showing whether respondents are comfortable with the

nature of the jobs
COMFORTABLE WITH THE NATURE OF THE JOB

50
45
40
35
neutral; 30
30
25
comfortable; 20
20
15
highly comfortable; 10 uncomfortable; 10
10
0
highly comfortable comfortable neutral uncomfortable
INTERPRETATION:
From the above graph it is observed that 14.28% of respondents feel highly
comfortable with their nature of job, 28.57% of respondents feel comfortable, while
42.85% respondents feel neutral and 14.28% of respondents feel uncomfortable with the
nature of the job. Thus it is concluded by the study that the highest number of
respondents feel neutrally with the nature of the job.
1.6 TABLE
Table showing whether respondents feel stressed doing their

job
Yes 30 42.85%
No 40 57.14%
Total 70 100
ANALYSIS:
From the above table it can be analysed that 42.85% of respondents feel stressed with
their work while 57.14% of respondents does not feel stressed with their job.
1.6 GRAPH
Graph showing whether respondents feel stressed doing their

job
WHETHER RESPONDENTS FEEL STRESSED DING THEIR

JOB
no
yes
43%
57%
INTERPRETATION:
From the above graph it is observed that 42.85% of respondents feel stressed with their
work while 57.14% of respondents does not feel stressed with their job. Thus it is
concluded from the study that the highest number of respondents does not feel stressed
with their job.
1.7 TABLE
Table showing whether serving a notice period is mandatory

for employees or not?
No of
Particular Percentages
respondents
Yes 52 74.28%
No 18 25.71%
Total 70 100
ANALYSIS:
From the above table it can be analysed that 74.28% respondents agreed that serving a
notice period is mandatory for employees, while 25.71% employees say it is not
mandatory to serve a notice period for employees.
1.7 GRAPH
Graph showing whether serving a notice period is mandatory

for employees or not?
MISMATCH BETWEEN RESPONDENTS AND THEIR JOB PROFILE.

100
90
80
70
60
yes; 52
50
40
74.28
30
20 no ; 18
10 25.71
0
yes no
INTERPRETATION:
From the above Graph it is observed that 74.28% respondents agreed that serving a
notice period is mandatory for employees, while 25.71% employees say it is not
mandatory to serve a notice period for employees. Thus, the highest number of
respondents agreed that serving a notice period is mandatory for employees in PPMS.
1.8 TABLE
Table showing expectation of respondents apart from

compensation
Recognition 10 14.28%
Job security 32 45.71%
Moral support 8 11.42%
Self-respect 12 17.14%
Recreational
8 11.42%
activities
Total 70 100
ANALYSIS:
From the above table it can be analysed that 14.28% of respondents expect recognition,
while 45.71% of respondents expect job security, 11.42% respondents expect moral
support, 11.42% respondents expect recreational activities and remaining 17.14%
respondents expect self-respect apart from compensation.
1.8 GRAPH
Graph showing expectation of respondents apart from

compensation
11%
14%
Recognition
17% Job security
Moral support
Self-respect
Recreational
activities
11%
46%
INTERPRETATION:
From the above graph it is observed that 14.28% of respondents expect recognition,
while 45.71% of respondents expect job security, 11.42% respondents expect moral
support, 11.42% respondents expect recreational activities and remaining 17.14%
respondents expect self-respect apart from compensation. Thus it is concluded by the
study that highest number of respondents expect job security apart from compensation.
1.9 TABLE
Table showing whether respondents are satisfied with the

working condition
No of
respondents
Highly satisfied 12 17.14%
Satisfied 35 50%
Neutral 15 21.42%
Dissatisfied 8 11.42%
Total 70 100
ANALYSIS:
From the above table it can be analysed that 17.14% of respondents are highly satisfied
with the working condition, while 50% of respondents are satisfied, 21.42% of
respondents are neutral, and 11.42% are dissatisfied with the working condition provided
by PPMS.
1.9 GRAPH
Graph showing whether respondents are satisfied with the

working condition
Whether Respondents Are Satisfied With The Working Condition

60
55
50
50
45
40
35
35
30
25
21.42
20 17.14
15
15 12 11.42
10 8
5
0
Highly satisfied no ofSatisfied
employees Column1
Neutral Dissatisfied
INTERPRETATION:
From the above graph it is observed that 17.14% of respondents are highly satisfied with
the working condition, while 50% of respondents are satisfied, 21.42% of respondents
are neutral, and 11.42% are dissatisfied with the working condition provided by PPMS.
Thus, it is concluded that highest number of respondents are satisfied with the working
condition provided by PPMS.
1.10 TABLE
Table showing whether PPMS providing counselling program

for the respondents
No of
respondents
Always 20 28.57%
Sometimes 40 57.14%
Rarely 10 14.28%
Not at all 0 0%
Total 70 100
ANALYSIS:
From the above table it is analysed that 28.57% of respondents agreed that PPMS will
always provide counselling programs to the respondents, while 57.14% says sometimes,
14.28% says rarely and 0% respondents says not at all.
1.10 GRAPH
Graph showing whether PPMS providing counselling program

for the respondents
Whether PPMS Providing Counselling Program For The

Respondents
Always
13%
Sometimes
Rarely
55% 26% Not at all
6%
INTERPRETATION:
From the above graph it is analysed that 28.57% of respondents agreed that PPMS will
always provide counselling programs to the respondents, while 57.14% says sometimes,
14.28% says rarely and 0% respondents says not at all. Thus, it is concluded that highest
number of respondents says that PPMS provides counselling programs sometimes.
1.11 TABLE
Table showing how likely respondents to be working in this

organisation (PPMS) 2 years from now
No of
respondents
Like very much 20 28.57%
Neutral 39 55.71%
Dislike 11 15.71%
Total 70 100
ANALYSIS:
From the above table it is analysed that 28.57% of respondents like very much, 55.71%
of respondents feel neutral, and 15.71% dislike to be working in this organisation
(PPMS) 2 years from now.
1.11 GRAPH
Graph showing how likely respondents to be working in this

organisation (PPMS) 2 years from now
How Likely Respondents To Be Working In This Organisation

(PPMS) 2 Years From Now
60
50
40
30 28.57
55.71
20
20 39 15.71
11
10
0
like very much Neutral Dislike
percentage Series 3
INTERPRETATION:
From the above graph it is observed that 28.57% of respondents like very much, 55.71%
of respondents feel neutral, and 15.71% dislike to be working in this organisation
(PPMS) 2 years from now. Thus, the highest number of respondents feel neutral to be
working in this organisation (PPMS) 2 years from now.
1.12 TABLE
Table showing whether PPMS is providing all statutory

welfares to employees.
No of
respondents
Yes 60 85.71%
No 10 14.28%
Total 70 100
ANALYSIS:
From the above table it is analysed that 14.28% of respondents disagreed,
and where 85.71% of respondents agreed that PPMS is providing all statutory welfares
to the employees.
1.12 GRAPH
Graph showing whether PPMS is providing all statutory

welfares to employees.
Whether PPMS is pr ov iding all statutory w elfares to employees
14%
86%
Yes No
INTERPRETATION:
From the above graph it is observed that 14.28% of respondents disagreed,
and where 85.71% of respondents agreed that PPMS is providing all statutory welfares
to the employees. Thus, it is concluded from the study that the highest number of
respondents agreed that the PPMS is providing all the necessary statutory welfares.
1.13 TABLE
Table showing type of reward respondents prefer for their

performance
No of
respondents
Monitory rewards 12 17.14%
Holidays voucher 08 11.42%
Medals and trophies 06 8.57%
Special training 08 11.42%
Scholarship 09 12.85%
Promotion 27 38.57%
Total 70 100
ANALYSIS:
From the above table it is analysed that 17.14% of respondents prefer
monitory rewards, 11.42% prefer holidays voucher, 8.57% prefer medals and trophies,
11.42% of respondents prefer special training, 12.85% of respondents prefer
scholarships, and 38.57% of respondents prefer promotion as a reward for their
performance.
1.13 GRAPH
Graph showing type of reward respondents prefer for their

performance
Ty pe o f rewa rd respo ndents prefer fo r their

perfo rma nce
17%
Monitory rewards
Holidays voucher
39%
11% Medals and trophies
Special training
9%
Scholarship
Promotion
13% 11%
INTERPRETATION:
From the above graph it is observed that 17.14% of respondents prefer monitory
rewards, 11.42% of respondents prefer holidays voucher, 8.57% of respondents prefer
medals and trophies, 11.42% of respondents prefer special training, 12.85% of
respondents prefer scholarships, and 38.57% of respondents prefer promotion as a
reward for their performance. Thus, from the study it is concluded that highest number
of respondents prefer promotion as a reward for their performance.
1.14 TABLE
Table showing whether PPMS is treating their employees as

an assets of the organisation.
No of
respondents
Yes 49 70%
No 21 30%
Total 70 100
ANALYSIS:
From the above table it is analysed that 30% of respondents disagree, where 70% of
respondents agrees that PPMS is treating their employees as an asset of the organisation.
1.14 GRAPH
Graph showing whether PPMS is treating their employees as

an assets of the organisation.
whether PPMS is treating their employees as an assets of the

organisation.
80
70
60
50
40
70 30
30
yes; 49
20
10 no; 21
0
yes no
INTERPRETATION:
From the above graph it is observed that 30% of respondents disagree, where 70% of
respondents agrees that PPMS is treating their employees as an asset of the organisation.
Thus, highest number of respondents agrees that PPMS is treating their employees as an
asset of the organisation.
1.15 TABLE
Table showing whether PPMS takes necessary steps to retain

the employees of the organisation.
No of Percentage
Particular
respondents s
Yes 50 71.42%
No 20 28.57%
Total 70 100
ANALYSIS:
From the above table it is analysed that 28.57% of respondents disagree, where 71.42%
of respondents agrees that PPMS takes necessary steps to retain the employees of the
organisation.
1.15 GRAPH
Graph showing whether PPMS takes necessary steps to retain

whether PPMS takes necessary steps to retain the

employees of the organisation.
80
70
60
50
40
71.42
30
50
20
28.57
10 20
0 no of respondents
yes noSeries 3
INTERPRETATION:
From the above graph it is observed that 28.57% of respondents disagree, where
71.42% of respondents agrees that PPMS takes necessary steps to retain the employees
of the organisation. Thus, highest number of respondents agrees that PPMS takes
necessary steps to retain the employees of the organisation.
1.16 TABLE
Table showing type of retention strategy PPMS is

implementing
Recognition 10 14.28%
Training 12 17.14%
Support 13 18.57%
Promotion 20 28.57%
Motivation 8 11.42%
Others 7 10%
Total 70 100
ANALYSIS:
From the above table it is analysed that 14.28% of respondents says PPMS implements
recognition as a retention strategy, whereas 17.14% says training, 18.57% says support
to their employees, 28.57% says promotion, whereas 11.42% of respondents says
motivation, and 10% of respondents says PPMS use other retention strategy to retain
employees of their organisation.
1.16 GRAPH
Graph showing type of retention strategy PPMS is

implementing
Type of retention strategy PPMS is implementing
Recognition
Others Recognition
10% Training
14%
Motivation Support
11%
Training
Promotion
17%
Motivation
Others
Promotion
29% Support
19%
INTERPRETATION:
From the above graph it is observed that 14.28% of respondents says PPMS implements
recognition as a retention strategy, whereas 17.14% of respondents says training, 18.57%
of respondents says support to their employees, 28.57% of respondents says promotion,
whereas 11.42% of respondents says motivation, and 10% of respondents says PPMS
use other retention strategy to retain employees of their organisation. Thus, from the
study it is concluded that PPMS use promotion as a retention strategy in their
organisation.
1.17 TABLE
Table showing whether there is an open flow communication

in PPMS
Particula No of
Percentages
r respondents
Yes 63 90%
No 7 10%
Total 70 100
ANALYSIS:
respondents agrees that there is an open flow communication in PPMS.
1.17 GRAPH
Graph showing whether there is an open flow communication

in PPMS
Whether there is an open flow communication in PPMS

100
Yes; 90
90
80
70
Yes; 63
60
50
40
30
20
No; 10
10 No; 7
0
Yes No
no of respondents Series 3
INTERPRETATION:
respondents agrees that there is an open flow communication in PPMS. Thus, from the
study it is concluded that there is an open flow communication in PPMS.
1.18 TABLE
Table showing whether respondents are satisfied with their

work life balance
No of
respondents
Highly
7 10%
satisfied
Satisfied 13 18.57%
Neutral 45 64.28%
Dissatisfied 5 7.14%
Total 70 100
ANALYSIS:
From the above table it can be analysed that 10% of respondents are highly
satisfied with the working condition, while 18.57% of respondents are satisfied, 64.28%
of respondents are neutral, and 7.14% are dissatisfied with their work life balance.
1.18 GRAPH
Graph showing whether respondents are satisfied with their

work life balance
whether respondents are satisfied with their work life

balance
70
60
50
40
30
64.28
45
20
13
10
10 7 18.57 5
2.8
0
Highly satisfied Satisfied Neutral Dissatisfied
INTERPRETATION:
From the above graph it is observed that 10% of respondents are highly satisfied with
the working condition, while 18.57% of respondents are satisfied, 64.28% of respondents
feel neutral, and 7.14% are dissatisfied with their work life balance. Thus, it is concluded
that highest number of respondents feel neutral with their work life balance.
1.19 TABLE
Table showing whether PPMS have policy attempting to retain

employees
Particula No of
Percentages
r respondents
Yes 65 92.85%
No 5 7.14%
Total 70 100
ANALYSIS:
From the above table it is analysed that 7.14% of respondents disagree, where 92.85% of
respondents agrees that there is a policy attempting to retain employees in PPMS.
1.19 GRAPH
Graph showing whether PPMS have policy attempting to

retain employees
Whether PPMS have policy attempting to retain

employees
7%
yes no
93%
INTERPRETATION:
From the above table it is analysed that 7.14% of respondents disagree, where 92.85% of
respondents agrees that there is a policy attempting to retain employees in PPMS. Thus,
it is concluded that highest number of employees agrees that there is a policy attempting
to retain employees in PPMS.
1.20 TABLE
Table showing whether PPMS provide equal treatment to all

the employees in the organisation
Particula No of Percentages
r respondents
Yes 66 94%
No 4 6%
Total 70 100
ANALYSIS:
respondents agrees that PPMS provide equal treatment to all the employees in the
organisation.
1.20 GRAPH
Graph showing whether PPMS provide equal treatment to all

the employees in the organisation
whether PPMS provide equal treatment to all the employees in

the organisation
no; 6
yes
no
yes; 94
INTERPRETATION:
respondents agrees that PPMS provide equal treatment to all the employees in the
organisation. Thus, from the study it is observed that highest number of respondents
agrees that PPMS provide equal treatment to all the employees in the organisation.
CHAPTER-5
FINDINGS, SUGGESTIONS AND CONCLUSION
[Grab your reader’s attention

with a great quote from the
document or use this space to
FINDINGS
 It is observed that highest number of employees are of age 20-30years.
 It is observed that most of the employee leave the organisation by pursuing new
Opportunity, health issues and due to personal issues.
 It is observed that highest number of employees feel comfortable with the nature
of job.
 It is observed that highest number of employees does not feel stress doing their
job.
 It is observed that employees expect job security and self-respect apart from
compensation.
 It is observed that employees are satisfied with working condition provided by
PPMS.
 It is observed that respondents prefer monitory rewards and promotion as a reward
for their performance.
 It is observed that highest number of employees agreed that they are treated as the
assets of the company
 It is observed that necessary measures will be taken by the organisation to retain
 It is observed that the employees are treated equally by the organisation.
 It is observed that organisation have certain policy attempting to retain employees.
 It is observed that most of the employees are satisfied with the work life balance.
 It is observed that PPMS provide a proper training facilities to the employees of
the organisation.
 It is observed that promotion, moral support to the employees and training are the
retention strategy used by the organisation to retain employees.
SUGGESTIONS
 Employee performance can be recognized as most of the employees expect it
from the organisation to render apart from compensation.
 The compensation package can be revised.
 Management should be able to find the people who have intention to leave the
organisation and has to enquire about the reason and try to meet their expectation in
order to retain them.
 Promotion and the monetary rewards can be considered more as the reward for
the performance.
 Management should help the employees to overcome from their personal
barriers and helping him to perform well in his work.
 The management should provide training and other measures for the career
development of the employees in the organisation.
 Each and every employees in the organisation should be treated equally without
any bias.
 Management should consider employee’s valuable suggestions and should be
able to implement it.
 The organisation should conduct the survey about the employees’ satisfaction to
check the functioning of the company and ask the employees what they want less of and
what they want more of.
 Management should find out the main reason for grievances and create an
effective grievance settlement mechanism to solve a problems or organisational
grievances.
CONCLUSION
The study helped in understanding the relative important factors responsible for
employee attrition. Attrition cannot be removed, but it can be reduced. If Initiative is
taken towards this step, as per the recommendations of this research, then the attrition
rate can be lowered, so that the expenditures towards hiring and training a new joiner
which exceeds the cost of retaining an employee can be drastically brought down.
Human resource management practices at both the strategic and day to day levels.
That is, to be effective, human resource management practices must be grounded in two
ways. First, they must reflect companywide commitments as to how it will manage and
relate to its employees. Secondly, HR must implement these commitments so that the
deals of the enterprise and deeds of its agents are congruent. In order to ensure consistent
flow of trained manpower in the future, the industry needs to work with the government
to introduce courses at a school and college level.
To ensure organization's growth, HR manager should give close attention to why

attrition is occurring in the present. To ignore why people are leaving the organization is
to ignore the organization greatest assets - its people. People in organization are needed
to perform the task, but they are not just machine but more than that. They are
organization dreams, hopes, ambitions, creativity and innovation. And to retain these
valuable assets is one of the surest ways to build an organization rather than just to go in
global markets. So factors such as training, goal awareness, career succession planning
are important aspects to the employees and they prefer the organizational goals to
objectives should have their interest in their continuous growth Regular feedback and
support also been involved in the attrition rate causes. And this is the only way an
organization can lower its attrition rate.
CHAPTER-6
BIBLOGRAPHY
BIBLOGRAPHY
HUMAN RESOURCE MANAGEMENT- ASHWATHAPPA
KOTHARI C R, RESEARCH METHODOLOGY: VISHWA PRAKASHAN
NEWSPAPER
WEBSITES
HTTP://WWW.ARTICLESBASE.COM/HUMAN-RESOURCES-ARTICLES/ATTRITION.
WWW.PPMS.COM
WWW.WIKIPEDIA.COM

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“A STUDY ON EMPLOYEE ATTRITION”

Meaning of Human Resource

HR plays a key role in helping companies deal with a fast-changing environment

John R. Commons, a pioneering economist, first coined the term “human

Research conducted by The Conference Board has found six key people-related

 Determine the need of employees

HR (HUMAN RESOURCE) MANAGER

Duties of human resource manager

 Helping and advising line managers.

HUMAN RESOURCE MANAGEMENT

Definition of human resource management

“Human Resource Management planning, organizing, directing, controlling of

Features of Human Resource Management

According to V. P. Michael, the feature of the human resource management is to

 It focuses on providing opportunities

 It is concerned with People policies

 It covers all levels of human resource

 It is concerned with development of human resource

Objectives of human resource management

 To achieve the organizational goals by proper utilization of human

Scope of human resource management

 Human resources planning: Human resource planning refers to a

 Industrial relations: Another important area of Human Resource

Importance of Human Resource Management

 To provide, create, utilize and motivate employees to accomplish

Evolution of human resource management

Human resource management is evolved from the Personnel management which

Going back to roots of evolution Personnel management, Robert Owen was

Process of Human Resource Management

The general HRM processes are as follows:

Recent Trends In HRM

 Increment in the utilization of data and analytic tools

 Requirement of integrated work force management system

 Priority- engagement of employees

 More millennial merging of business

 Remaking performance reviews

 Development in the human side

 Clouds remains in the projection

Normally, number of employees’ leaves organization is always high. So for HR

Employee Attrition is the reduction of staff by voluntary or involuntary reasons.

Employee movement is unavoidable aspect of doing business. Workers graduate

Reducing staff by attrition naturally is less devastating to company morale.

1.2. MEANING AND DEFINITION OF EMPLOYEE

Attrition in business describes a gradual but deliberate reduction in staff numbers

 “A reduction in the number of employees through retirement, resignation or

 “Normal and uncontrollable reduction of a work force because of retirement,

-dictionary of business terms

 “A gradual reduction in work force without firing of personnel, as when workers

-Phill and Ralph peters

How Attrition Works

Reducing staff by attrition naturally is less devastating to company morale. However, it

Attrition versus Layoffs

Changes in management, company structure, or other aspects of a company's operations

1.3. Attrition cycle

 Attrition brings decreased productivity.

1.4. Types of attrition

1.5. Importance of attrition

High attrition is a cause of concern for a company as it presents a cost to the

1.6. Reasons of attrition

There are a few ways in which attrition happens:

1.7. Cost of attrition

Employee attrition could affect 40% of company profits. Around 150% of

 Cost of conducting an exit interview to include the time of the person