BBA-MBA Integrated

Term – II

Division – A

Group assignment: Report on High Attrition Rate

Submitted to:

Prof. Priyatna Basu

On:

01-03-2022

Submitted by:

Name Roll no.

Aakarsh Sinha 217101

Aarushi Wadhwa 217102

Aastha Dave 217103

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Topic: Causes of Growing Attrition and Recommendations to

Solve the Problem

Written By: Divyansh Mehra, HR Manager

Written to: General Manager

Name of the Company: Groupon Finances

Date of Submission: 01 March 2022

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Table of Contents

Summary............................................................................................................4

Terms of Reference...........................................................................................5

Introduction.......................................................................................................6

Detailed Findings...............................................................................................7

Recommendations.............................................................................................9

Conclusion.......................................................................................................10

Appendix.........................................................................................................11

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Summary
This report is an analysis of the reasons due to which the company is facing high attrition. Of

the 50 newly recruited employees approximately 50% have left the jobs in around nine

months of joining. This report also suggests measures that can be implemented to prevent the

exit of the employees. These findings were done through the questionnaire circulated during

the exit interviews which gave us an insight into the statistics of the newly recruited

employees and the turnover rate to help measure the seriousness of this attrition. Two of the

major concerns that have been observed are:

 The outdated work culture, and

 The tasks given were not according to the job description.

A few recommendations have been suggested which include:

 A meeting amongst the top managers to discuss issues regarding the DEI Policy and

the Workday Policy, and

 Being regular in providing training and development sessions.

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Terms of Reference
The General Manager has requested this report to examine the causes for the high attrition

rate of the newly inducted employees within a few months of their joining and recommend

measures to prevent the situation in the future. The information in this report was gathered by

my team within a span of financial year 2021-22. We have analysed the records of employees

recruited in the current year, their working conditions and thereafter have interviewed them.

In this report, the possible causes and recommendations to minimise the high attrition rate

among the newly inducted employees are specified.

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Introduction
It has been observed that the newly inducted recruits of the company are leaving the job a

few months after their joining. Following data represents the recent attrition:

Number of Recruits Who Left

30

25

20

15

10

0
3 Months 6 Months 9 Months

Batch 1 Batch 2

Out of the total 50 new recruits planned for the year 2021-22, 25 have resigned only after the

first three months. To make up for the resigned employees, 25 new recruits were hired. Out

of the 25 employees left in the first batch, 10 resigned after 6 months and other 5 resigned

after 9 months. Of the newly recruited 25 people, 10 of them resigned after 6 months.

Therefore, out of 50 employees recruited, only 25 managed to stay.

The Employee Turnover Ratio (ETR) is a ratio which tells us the risk of an employee leaving

and our opportunities. It is calculated as follows:

Employees who ¿ ¿
Average no . of employees x 100 = ETR

If calculated for our organization, the ETR would be 12.5% whereas an ideal ETR is to fall

below 10%, when it comes to prospective new employees this acts like a setback.

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Detailed Findings
From the questionnaire and exit interviews conducted of the total of 25 people who left, we

have concluded that the two most common reasons for increasing attrition are:

work cultrure tasks did not mention job description others

Work Culture
43%
Others
10%

Tasks did not meet job description

47%

 Outdated work culture

 Lack of Recognition

Following are the detailed reasons that have caused attrition:

1. DEI Policy: One of the major concerns that has come forward is the lack of the DEI -

Diversity, Equity, and Inclusion-Policy. The employees find that the core values and

practices at our company differ from these ideas. They find our promotional system

faulty and believe that the opportunities given are not merit-based rather on the

employees’ relationships with the superiors. The employees feel that they are not

given equal opportunities and do not feel safe working in an environment that

threatens their career opportunities simply based on favoritism.

2. Number of Working Days: Most of the young employees have been leaving this firm

because the company still has a 6-day work policy whereas other companies have

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 implemented a 5-day work policy which is arguably more efficient and comfortable

for the employees.

3. Tasks did not match the job description: When interviewed most of the employees

stated that the job allotted to them was either way above or way below their caliber.

Often the task allotted to the employee did not meet their job description, which was

explained to them in the induction program. Even when the task matched their job

description, they were not aware of the work standards they should maintain. Without

any clear and set guidelines employees did not feel inclined to take initiative and work

at a higher level.

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Recommendations
1. There is an urgent need to draft and enact a DEI Policy that will help all the

employees feel safe. We need to publicize and present this to all the employees and

encourage them to suggest improvements so that the employees feel secure and

supported.

2. A meeting among the top managers should be arranged to discuss about the workday

policy and agree upon a policy that is efficient for both the company as well as the

employees.

3. The first step should be to clarify what the organization expects from an employee.

Daily tasks that need to be accomplished and the accountability process should be

clear to the employee. Also, the managers should define standards and their

expectation from the employee by giving them a set of goals to be achieved in a

limited time frame, the reason why they need to perform their task should also be

made clear by the manager so that the employee could have the whole picture in mind

and understand the importance of his/her work.

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Conclusion
This report findings, guidelines recommendations will assist us in addressing the

challenging but critical task the major reasons for the attrition of new recruits are outdated

working culture, the tasks allotted not meeting with the job requirements. The measures

to overcome these challenges have been discussed in the report and if these measures are

undertaken by the organization, then the attrition rate will decrease significantly.

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Appendix

I. Questionnaire:

1. Did you receive sufficient training for your job?

o YES

o NO

2. Was the orientation program faulty?

o YES

o NO

3. Did you feel that equal work opportunities were given at our firm?

o YES

o NO

4. Did you think your efforts were recognized by the management?

o YES

o NO

5. Were you given the tasks according to your job description?

o YES

o NO

6. Did you think you completed tasks given to you with responsibility?

o YES

o NO

7. Were your expectations in terms of salary and exposure met?

o YES

o NO

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8. Did you feel that the salary given to you was in par with the efforts you put in?

o YES

o NO

9. Did you feel that there was an unhealthy competition amongst the employees?

o YES

o NO

10. Were you provided with sufficient furniture and resources for the tasks given to you?

o YES

o NO

Figure 1

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II.

No. of Recruits Who Left

30

25

20

15

10

0
3 Months 6 Months 9 Months

Batch 1 Batch 2

Figure 2

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 work cultrure tasks did not mention job description others

Work Culture
43%
Others
10%

Tasks did not meet job description

47%

Figure 3

III.

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