STUDY ON EMPLOYEE TURNOVER AND

EMPLOYEE RETENTION IN USHA MARTIN

LIMITED

SUBMITTED TO: Mr. ARVIND KUMAR

SUBMITTED BY: SHAMBHAWI SINGH
 A PROJECT REPORT
ON
‘STUDY ON EMPLOYEE TURNOVER
AND EMPLOYEE RETENTION.’
IN USHA MARTIN LIMITE D
(Wire Ropes and Speciality HRD div, Tatisilwai, Ranchi)

[From 8th May 2023 to 8th June 2023]

Under the guidance of -

Mr. Arvind Kumar [D.G.M , HRD]

Mr.Manish Raj [HRD]

Submitted by-

SHAMBHAWI SINGH

St.Xavier’s College, Ranchi

Roll- 21PBBA049801
 ACKNOWLEDGEMENT

I would like to express my appreciation for the guidance and mentorship

that I have received from the experts at Usha Martin Limited. The
continuous support and encouragement from your team have motivated
me to push the boundaries of my research and strive for excellence.
I would like to extend my deepest gratitude for the research opportunities
that you have extended to me. The chance to collaborate with a reputable
and forward-thinking organization like Usha Martin Limited has been an
enriching experience.
I would also like to express my sincere gratitude towards Mr.Arvind
Kumar and Mr.Manish Raj for the time you have invested in me. I extend
my deepest appreciation to both of you for being outstanding mentors
and guides. Your commitment, support, and guidance have made an
indelible mark on my professional journey.
I am also thankful to the faculty members of St.Xavier’s College, Ranchi
for the help, guidance and suggestion in completing my internship.

SHAMBHAWI SNGH
 CERTIFICATE
This is to certify that Shambhawi Singh, a student of Bachelors in Business
Administration from St. Xavier’s College, Ranchi has undergone training in
our organization from 08.05.2023 To 08.06.2023

During this period she was assigned a project titled ‘a study on employee
turnover and employee retention at Usha Martin Ltd.’. It is a bonafied
work carried out by Shambhawi Singh under my guidance and supervision.

I wish all success in her future career.

NAME OF GUIDE:
SIGNATURE:

INDEX
SR. TOPIC PAGE NO.
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 INTRODUCTION
Employee turnover and retention are critical aspects of any organization's
human resources management. In today's dynamic and competitive
business landscape, attracting and retaining talented employees has
become more challenging than ever before.
Managing employee turnover is crucial for organizations to maintain
stability, productivity, and employee morale. High turnover rates can be
costly in terms of recruitment expenses, lost productivity during the
transition period, and the potential negative impact on team dynamics.
Organizations strive to minimize turnover by implementing effective
retention strategies, such as offering competitive compensation and
benefits, providing growth and development opportunities, fostering a
positive work culture, and promoting work-life balance.
Employee retention requires continuous effort and a proactive approach.
Regularly monitoring turnover rates, conducting exit interviews, and
gathering employee feedback can provide valuable insights into areas for
improvement. Organizations should foster open communication channels
and actively address concerns to demonstrate a commitment to employee
satisfaction and well-being.
By implementing effective retention strategies and reducing turnover,
organizations can build a talented and motivated workforce, resulting in
increased productivity, improved morale, and reduced recruitment costs.
Investing in employee retention not only benefits the organization but
also contributes to the professional growth and satisfaction of individual
employees.
COMPANY PROFILE
Usha Martin is a leading global manufacturer of wire ropes. Established in
the year 1960, the organization has grown from strength to strength to
establish itself as the market leader with its multi-unit and multi-product
portfolio. Usha Martin’s wire rope manufacturing facilities in Ranchi,
Hoshiarpur, Dubai, Bangkok and UK produce the widest range of wire
ropes that find application in various industries across the world. All of the
company’s infrastructural facilities are equipped with the latest state-of-
the-art high capacity machines to manufacture world-class products.

Our Global R&D center located in Italy is actively engaged in designing of

wire ropes and uses proprietary design software to develop products that
are the best in class. Usha Martin also has a comprehensive R&D facility in
their manufacturing unit at Ranchi in India.

Long standing application in diverse sectors like Oil & Offshore, Mining,
Crane, Elevator, Infrastructure etc. is the testimony of our expertise in
manufacturing high quality wire rope products. As a business entity, we
have always focused on delivering value added products and services. To
ensure that our commitment to quality percolates through every sphere
of our operations, we have built a robust network of capabilities spread
across the globe. Our distribution centers are located in the United
Kingdom, North America, South America, The Netherlands, Australia,
Russia, Singapore, South Africa, Indonesia, Vietnam, China, Kazakhstan,
Iran etc.
Usha Martin’s facility in Ranchi is one of the world’s largest wire rope
manufacturing units. Other than wire rope, this unit also manufactures
LRPC strands, customized for diversified applications in Infrastructural
development works, Renewable energy installations, Construction and
Maintenance of Bridges etc.
Usha Martin also has an enviable track record in manufacturing & supply
of pre-stressing machines and accessories, backed by expert installation
teams for Pre-stressing job. The facility in Ranchi also has an additional
set-up for manufacturing high quality conveyor cords.
The group’s cable business unit, UM Cables Ltd., at Silvassa in India,
manufactures Optical Fiber Cables, Copper cables, FRP rods etc. of the
highest quality.
For a few specific products, Usha Martin works in collaboration with
globally renowned companies like Joh Pengg of Austria and TESAC wire
rope.

VISION
Company's Vision-
“To be the global leader of rope of rope industry and the leading
specialty steel manufacturer in India by delivering customer delight
adopting modern technology and ensuring sustainable, inclusive growth
for all its stakeholders”.

EVOLUTION OF THE COMPANY

Mr. B.K.Jhawar, established Usha Martin Limited in 1960 with the wire
Ropes Plant in Ranchi. The firm was initially called as Usha Martin Black as
it started with the collaboration between M/S Martin Black, Scotland and
Usha Automobile and Engineering Pvt.Ltd, Calcutta in 1960.

STEEL DIVISON
The specialty steel division, established in 1971, today operates one of the largest
steel plant in India in long product segment near Jamshedpur. All its manufacturing
facilities are ISO 9000 certified and the steel plant was India’s first to receive the
TPM Excellence Award from JIPM,Japan.

WIRE ROPE BUSINESS

The company is a global giant in wire rope industry, with facilities in India
(near Ranchi, Punjab), Workshop(UK), Dubai and Bangkok. The company’s
facilities are equipped with the world class machine and equipment to
ensure best quality products for its customers.

RESEARCH AND DEVELOPMENT

Besides the dedicated R&D facility at Italy, Usha Martin has
comprehensive R&D facility in its manufacturing unit in Ranchi. It includes
full-fledged designed lab with specialized software for rope design.

CORPORATE SOCIAL RESPONSIBILITY

Usha Martin’s commitment towards social responsibility is reflected in

wide range of activities like women empowerment, education, healthcare
and agriculture and village development. These activities are undertaken
by the Krishi Gramin Vikas Kendra, an organization supported by the
company.

AWARDS AND REGOGNISTION

Usha Martin has been awarded in multiple segments and on various

parameters over and over again.

· TERI Corporate award for ‘Environmental Excellence and Corporate

Social Responsibility’ for the year 2004-2005.
· The Gaylin Group presented the ‘Top Supplier Award 2013’ to Usha
Martin Singapore Pvt. Ltd. in recognition of its product and service
 · National Award of Star Performer for FY 2013 by EEPC India.

INTRODUCTION TO HRM

Human resource management, or HRM, involves coordinating, managing,

and allocating human capital, or employees, in ways that move an
organization’s goals forward. HRM focuses on investing in employees,
ensuring their safety, and managing all aspects of staffing from hiring to
compensation and development.

Companies use HRM to invest in employees to boost job satisfaction and

improve employee performance. The methodology behind HRM
recognizes the value employees bring to an organization, also known as
human capital. Investing in employees and strategically supporting their
needs can improve job satisfaction and, therefore, greater success in their
role within an organization.

DEFINITONS
EMPLOYEE TURNOVER: Employee turnover refers to the rate at which
employees leave or are replaced within an organization over a specified
period of time. It is a measure of the number or percentage of employees
who exit an organization, either voluntarily (resignation, retirement) or
involuntarily (termination, layoff), and are subsequently replaced by
new hires.

EMPLOYEE RETENTION : Employee retention is the ability of an

organization to keep its employees for a certain duration of time. It is
commonly measured as the percentage of employees who remain in an
organization over a set period or the average length of time employees
stay with the company. Retention strategies aim to keep valuable
employees and reduce the number of employees leaving the company.
Unlike turnover, retention measures the number of employees who
continue to work for an organization over time.

TYPES OF EMPLOYEE TURNOVER

There are several types of employee turnover that can occur within an
organization. Here are some type of employee turnovers:
1. Voluntary Turnover: This type of turnover refers to employees who
choose to leave the organization willingly. They may resign due to
various reasons such as better job opportunities, career
advancement, dissatisfaction with the current job or work
environment, relocation, personal reasons, or retirement.

2. Involuntary Turnover: Involuntary turnover happens when

employees are terminated or laid off by the organization. It can occur
due to factors such as poor performance, misconduct, violation of
company policies, downsizing, restructuring, or economic factors.

3. Functional Turnover: Functional turnover occurs when low-

performing or dissatisfied employees leave the organization. In this
case, turnover can be seen as beneficial because it helps remove
underperforming individuals and allows for the recruitment of new
employees who may bring fresh skills and perspectives.

4. Dysfunctional Turnover: Dysfunctional turnover happens when high-

performing or valuable employees leave the organization. This type
of turnover can be detrimental as it leads to the loss of experienced
and skilled individuals, which can disrupt team dynamics and impact
organizational performance.
 5. Internal Turnover: Internal turnover occurs when employees move
to different positions or departments within the same organization. It
can be a result of promotions, transfers, or lateral moves. Internal
turnover can be beneficial as it helps retain talent, develop
employees' skills, and provide career growth opportunities

6. External Turnover: External turnover refers to employees who leave

the organization and enter the job market outside of the company.
They may join other organizations or pursue self-employment.
External turnover is a common type and can be influenced by factors
such as market conditions, industry trends, and competitive job
offers.

ADVANTAGES OF EMPLOYEE TURNOVER:

Understanding the different types of turnover can help organizations
identify the reasons behind employee departures, develop effective
retention strategies, and make informed decisions to maintain a stable
and productive workforce.
Employee turnover, while often viewed as a negative aspect, can also
bring some advantages to organizations. Here are a few potential benefits
of employee turnover:
1.Fresh Perspectives and Innovation: When new employees join an
organization, they bring fresh perspectives, ideas, and diverse
experiences. This influx of new talent can stimulate creativity and
innovation within the company. Different viewpoints and approaches can
lead to improved problem-solving, increased adaptability, and enhanced
competitiveness.

2.Skills and Knowledge Transfer: As employees leave, new hires bring in

their own unique skill sets and knowledge. This can contribute to the
transfer of new skills, technologies, and best practices within the
organization. By continuously introducing new employees, organizations
can promote a culture of learning and development, ensuring that skills
and knowledge are regularly updated.

3.Increased Diversity: Employee turnover can contribute to increasing

diversity within an organization. As employees with different
backgrounds, perspectives, and experiences join the company, diversity
and inclusion are enhanced. A diverse workforce can lead to greater
creativity, better decision-making, and improved problem-solving
abilities.’

4.Performance Improvement: In cases where turnover includes low-

performing or disengaged employees, their departure can lead to
improved overall performance. By removing underperforming individuals,
organizations could replace them with more qualified and motivated
employees who can contribute positively to the company's goals and
objectives.

5.Organizational Adaptability: Turnover can also provide organizations

with the flexibility to adapt to changing circumstances. It allows for the
restructuring of teams, the reallocation of resources, and the opportunity
to align the workforce with evolving business strategies and goals. This
adaptability can help organizations stay agile and responsive in a dynamic
business environment.

6.Promotes Healthy Competition: In competitive industries, turnover can

create a market for talent, leading to healthy competition among
organizations to attract and retain the best employees. This competition
can drive organizations to offer competitive compensation packages,
improved benefits, career development opportunities, and a positive
work environment to attract and retain top talent.

It's important to note that while turnover can bring these advantages,
organizations should still strive to minimize excessive turnover and retain
valuable employees. Striking a balance between retaining experienced
employees and introducing fresh talent is key to maintaining a stable and
high-performing workforce.

Why is employee turnover important?

Having a good employee turnover rate has multiple benefits for any
organization. Here are some of the core reasons a positive employee
turnover rate helps your business:

· Reduced Costs: When you have a low annual turnover rate, your
costs are lower throughout the business. With fewer resignations,
you have fewer new hires to recruit and train. Fewer resignations
also result in higher efficiency and productivity.
· Production Consistency.: With teams that are established and
functional, production is more streamlined, consistent, and accurate.
There’s less rework, and employees are not being pulled in different
directions, leading to poorer quality outputs.

· Stronger Customer Relationships: When your employees have been

around for many years, they forge deeper relationships with your
customers. Consistency in the workforce helps customers stay
connected to your brand and provides familiarity in ongoing
interactions. When top talent leaves, it will take a while for new
employees to forge those strong relationships.

· Better Morale: Teams that work together are often more connected
to one another. When turnover is low, teams don’t have to take on
additional workload or wonder when open positions will be filled.
This improves employee satisfaction.

· Shifting of resources: By choosing to not refill a position, employers

can assign new duties to other employees, change departmental
work flows or shift resources within an organization.
· New dynamics: Attrition offers opportunities for new ideas and
dynamics. It can refresh an organization and offer current employee's
new opportunities.
· Culture change: It’s not always easy to change the culture of an
organization, especially without replacing entire teams. Natural
employee turnover allows employees to refresh a company culture
without firing or layoffs.

FACTORS CAUSING EMPLOYEE RETENTION

 job Satisfaction: Job satisfaction is one of the most important factors
influencing employee turnover. Employees who are dissatisfied with
their current jobs are more likely to seek new opportunities. Good
pay and benefits, a positive work environment, opportunities for
 career advancement, and recognition and appreciation for their work
are all factors that can contribute to job satisfaction.

 Monetary Considerations: The expectations of employees are

increasing day by day. Many people leave the organization because
they have been offered a high salary in some other organizations.
In the current competitive scenario, it is easy for employees to
find positions that leverage their experience and pay better.

 Lack of Career Mobility and Challenges: Given the choice between

money and a challenging job, many employees may still prefer the
latter as it allows them an opportunity to broad base their domain
expertise and also provides an opportunity to work with cutting-edge
technology. If the organizations do not deliver on these expectations,
employee exodus cannot be contained.

 Opportunities for Advancement: Employees want to know that they

have opportunities for growth and advancement within an
organization. If an organization does not provide opportunities for
employees to advance their careers, they may seek opportunities
elsewhere.

 Working Environment: An employee may leave an organization if the

fairness of the system does not inspire his/her confidence. Turnover
 due to the work environment is typically due to a lack of trust in the
fairness of the system, issues around safety and care of
employees, effectiveness of the channels to address employee
grievances, accessibility of the senior management team and other
related environmental issues.

 High Levels of Stress and Lack of Work-Life Balance: Companies in

the zeal to squeeze out every little ounce of productivity from the
employees and further increase profitability. Sooner or later this
makes employees stressed out and they rethink about their priorities
and join an organization that promises a relaxed pace work and a
breathing space.

 Shift timings: The majority of the work offshored to India has

typically been from the United States (though share from Europe is
growing) necessitating night-shift work due to time zone
differentials. The proportion of employees who can work during the
Indian work-day is low. Continuous night shifts affect the health of
some, while others just cannot adjust to them. As a result of cultural
and social factors, some women employees leave because they
are not able to convince their families of the need to work nights

 Monotony: In general, work (especially work that has been

offshored) has been repetitive, mechanical, service-level-driven and
involves high transaction volumes. Younger recruits find it
monotonous once they have mastered the process.
  Inadequate training and development opportunities: Though not
one of the top reasons for turnover, the lack of ample opportunities
to learn new skills or undergo training or further education is
occasionally cited as a reason for leaving.

 Lack of Employee-job Fit: Employee’s innate talent & aptitude are

given a short shrift. There is a widespread notion that the employee’s
natural flair is not as important as new skills and knowledge acquired
on the job: that with the learning attitude and training employees
can do wonders in any job, but it is not true and it creates immense
frustration in employees, as employees demonstrate a good deal of
commitment, job satisfaction, self-motivation and productivity
when they are assigned a job that is in tune with their natural
talents.

• Lack of Role Clarity: Nothing can be more frustrating or discouraging

for an employee than the lack of a clear understanding of what is
expected of him on the job. In a performance driven workplace a lack of
clarity regarding job duties and expectations can cause fear and anxiety
among employees who are unclear of what is expected of them. Even
worse outright anger can occur when a team member receives a negative
performance evaluation based on expectations and job duties that he or
she was unaware of or unclear about.
  Management Style: How managers interact with employees can
have an impact on turnover. Managers who are authoritarian or
micromanage their employees may contribute to a negative work
environment and turnover. Managers who are supportive,
communicative, and empower their employees, on the other hand,
can promote a positive work environment and reduce turnover.

 Compensation and Benefits: Compensation and benefits are also

important factors affecting employee turnover. If an organization
does not offer competitive pay and benefits, employees may look for
better opportunities elsewhere.

 Personal Factors: Finally, personal factors can also contribute to

employee turnover. For example, employees may leave an
organization because they are relocating, experiencing health issues,
or pursuing other personal goals.

EMPLOYEE TURNOVER RATE: Employee turnover rate is defined as the

percentage of employees who leave an organization during a certain
period of time. it include voluntary resignations, dismissals, non-
certifications and retirements in their turnover calculations. They normally
don’t include internal movements like promotions or transfers. The
employee turnover rate is a metric of the effectiveness of the human
resources management system and the overall management of an
organization
HOW TO CALCULATE EMPLOYEE TURNOVER RATE:
The formula to calculate the monthly employee turnover rate is:
(Employees who left in a month / average number of employees in a
month) x 100 = monthly employee turnover rate
Here’s how to do it:
1.Determine both how many employees remain at the end of a month
and the average number of employees in the same month.
2.Divide the average number of employees by the number of employees
who left in the month.
3.Multiply this number by 100.

Example: In March, a company had an average of 50 employees. In that

same month, two employees left the company. This gives you the
following equation:
(2 / 50) x 100 = 4%
This means that in March, the company had a 4% employee turnover rate.

formula to calculate the annual employee turnover rate:

{Employees who left in a year / [(beginning number of employees +
ending number of employees) / 2]} x 100 = annual employee turnover
rate
Here’s how to calculate annual turnover:
1.Determine how many employees left the company in a given year.
2.Add the number of employees you had at the beginning of the year to
the number of employees had at year’s end. Divide this number by 2.
3.Divide the above number by the number of employees who left during
the year.
4.Multiply the total by 100.

Example: In 2021, a company had 100 employees at the beginning of the

year and 98 employees at the end of the year. During the same year, five
employees left the company. This gives you the following equation:
{5 / [(100 + 98) / 2]} x 100 = 5.05%
Using this formula, you can conclude that the employee turnover rate for
2021 was about 5%.

DEMERITS OF EMPLOYEE TURNOVER

Employee turnover can have several demerits, including:

1. Cost: Replacing an employee can be costly for an organization. The cost

of advertising, recruiting, and training a new employee can be high.
2. Loss of productivity: When an employee leaves, it can take time for the
replacement to get up to speed. This can result in a loss of productivity for
the organization.

3. Impact on morale: High employee turnover can negatively impact the

morale of existing employees. They may feel overworked and
undervalued, which can lead to decreased motivation and engagement.

4. Loss of institutional knowledge: When employees leave, they take with

them valuable knowledge and experience. This can be a significant loss for
the organization, particularly if the employee was in a key role.

5. Disruption to team dynamics: When a member of a team leaves, it can

disrupt the team dynamics. This can lead to decreased collaboration and
effectiveness, and can even cause other employees to leave.

EMPLOYEE RETENTION
Employee retention is crucial for businesses, as high turnover rates can be
costly. Companies that retain employees for a longer period can benefit
from better customer experiences, consistency across teams, a stronger
company culture, and an easier ability to attract new staff. To improve
employee retention, companies should focus on hiring the right people,
optimizing the onboarding process, creating a culture of recognition and
feedback, and developing employees. Additionally, providing competitive
rewards and developmental opportunities can help retain employees.
Other strategies include investing in employee wellness, communicating
clearly and effectively, and providing flexible work arrangements. [2]
recommends keeping employees engaged, giving them clear growth
opportunities, and making them feel valued to improve retention.

NEED FOR EMPLOYEE RETENTION:

1. Reduced costs: Turnover is expensive. Retaining skilled and reliable
employees is financially beneficial for an organization. Scouting,
recruiting, and onboarding new staff is expensive With lower employee
turnover costs, companies have more funding to invest in other parts of
the business.

2.Higher employee engagement: There is a direct link between employee

engagement and retention. Employees who are highly engaged are more
likely to say they will be working at their current organization a year from
now.
So, it’s no surprise that organizations who prioritize retention efforts have
highly engaged employees. And organizations who have highly engaged
employees reap many benefits, including:

· Better employee heath

· Happy and satisfied employees
· Lower absenteeism
· Greater employee loyalty
· Better customer service
 · Higher profitability

3. Reduced training time: Long-term employees are highly trained and

feel confident to carry out their daily responsibilities. They have built
effective communication channels with their manager and colleagues and
know how to deliver their projects on time. New employees require
training and time to adapt to the new environment and its requirements,
which can strain team productivity temporarily.

4. Sustained productivity flow: Professionals who work for long periods in

an organization add significant value to the company. They understand
the company’s vision at a deep level and know well how to fulfill their
role’s expectations. Plus, they have acquired all the important skills
needed to effectively complete tasks on a daily basis.

STATRERGIES FOR RETENTION OF EMPLOYEES

1. Employee Engagement: Engage employees by involving them in

decision-making processes and seeking their input on matters that affect
them. Conduct regular feedback sessions and performance evaluations to
provide constructive feedback and address concerns promptly

2.Employee compensation: It is absolutely essential in this competitive

labor market for companies to offer attractive compensation packages.
That includes salaries, of course, but also bonuses, paid time off, health
benefits, retirement plans and all the other perks that can distinguish one
workplace from another. Every employee should have a full
understanding of all the benefits they receive from the organization.

3. Recognition and rewards systems: Every person wants to feel

appreciated for what they do. Thanking the employees who go the extra
mile and explain how their hard work helps the organization. set up
formal rewards systems to incentivize great ideas and innovation.

4. Foster a positive work environment: Employees who feel valued and

respected by their colleagues and managers are more likely to stay with
an organization. Organizations can foster a positive work environment by
promoting open communication, recognizing employee achievements,
and providing opportunities for employee feedback

5. Provide work-life balance: Employees who feel like they have a good
work-life balance are more likely to stay with an organization.
Organizations can support work-life balance by offering flexible work
schedules, remote work options, and other benefits that support
employees' personal lives.

6. Improve management practices: Poor management can be a major

driver of employee turnover. Organizations can prevent turnover by
ensuring that managers are trained in effective leadership practices, are
able to provide clear feedback and direction, and are able to create a
positive work environment.

7. Conduct stay interviews: Rather than waiting for employees to leave,

organizations can conduct stay interviews to understand why employees
choose to stay with the company. This can help to identify areas of
strength as well as areas for improvement.

8. Build a strong organizational culture: A strong organizational culture

that aligns with employees' values and goals can help to retain
employees. Organizations can build a strong culture by promoting core
values, creating a sense of community and purpose, and supporting
employee well-being.

9.Training and development: In any position and industry, professionals

want the possibility for advancement. Smart managers invest in their
workers' professional development and seek opportunities for them to
grow.

10. Communication and feedback: Keeping open lines of communication

is essential for employee retention. The employees should feel that they
can come to the manager with ideas, questions and concerns, and
likewise, they expect them to be honest and open with them about
improvements they need to make in their own performance. Make sure
to connect with each staff members on a regular basis — don't let issues
build up for the annual review
11. Strong Leadership: Train and support managers to be effective
leaders. Good leadership is essential for creating a positive work
environment, motivating employees, and providing guidance and support.
Provide opportunities for leadership development and promote a culture
of mentorship.

12.Exit Interviews: Conduct exit interviews to understand the reasons

behind employee departures. Analyze feedback and take necessary steps
to address any recurring issues or concerns. Use this information to
improve retention strategies and make necessary organizational changes.

Reasons for Employee Turnover in Usha Martin Limited

1.Retirement: Employees reach a certain age and choose to retire. The employee

permanently leaves the workforce.

2.Resignation due to personal reasons: Employees may resign due to life

events unrelated to work. For example, an employee may relocate due to a spouse
or partner’s job, or bring a new child into their family and decide not to work.
Other employees may resign for other personal reasons not disclosed to an
employer.

3.Career change: Employees may go back to college or change careers for

better future. Employees who feel like they are stuck in their current role
without any potential for growth may be more likely to seek out new
opportunities.

4.Dissatisfaction with the current assignment: Employees can be

unsatisfied with the work or project they are assigned with.

5.Dissatisfaction with salary: Employees may not be happy with the

paycheck they get for the work they do. They might desire for more. If
employees feel like they are not being fairly compensated for their work,
they may be more likely to leave for a job with better pay and benefits.

6.Dissatisfaction with superior: When there is lack of support from the

superior employees can feel less motivated. If employees feel like they are
not being supported or that their manager is not effective, they may be
more likely to leave.

Employee Turnover graph of Usha Martin Limited

MAJOR CAUSES FOR EMPLOYEE RETENTION IN USHA MARTIN LTD:
DISSATISFACTION WITH PRESENT
ASSIGNMENT 1

DISSATISFACTION WITH SALARY 5

BETTER PROSPECTS 12

PERSONAL/DOMESTIC PROBLEMS 11

DISSATISFACTION WITH SUPERVISOR/HOD 0

ANY OTHER REASON 5

EMPLOYEE TURNOVER IN OTHER COMPANIES:

ASHOK LAYLAND

Ashok Layland announced a 3% attrition rate in the annual report for the
financial year 2021-2022, the manufacturing giant which is the second
most famous manufacturer of commercial vehicle.

Hero MotoCorp Limited

The company had an attrition rate of 5.1% in the FY 2021–22.

The data also suggests that the average employee tenure has dropped by
20% since 2020. The company is one of the largest two-wheeler
manufacturers in the world and also in India.

Maruti Suzuki Limited

In Maruti Suzuki, the attrition rate is 12 per cent for management

graduates and 10 per cent for technology hires. The company has a year-
long induction with outbound training, buddies and mentors thrown in.
Maruti has hired 210 graduate engineers, 20 management trainees and 15
executive trainees this year.

TATA GROUP
TCS' attrition rate inches lower to 21.3% in Q3, employees headcount
reduces by 2,197. In the September 2022 quarter, the Tata Group backed
employees' headcount stood at 616,171 with an attrition rate of 21.5.

ACCENTURE

Accenture announced a seven per cent drop in attrition rate in its

quarterly results on 13-01-2023. The IT giant announced a 13 per cent
attrition rate for the quarter in contrast to their 20 per cent reported in
the quarter prior. As of November 30th, 2022, Accenture had 7,37,719
employees

WIPRO

Wipro's attrition rate was at 23.3% in Q1 of the current fiscal. In the

fourth quarter of FY22, Wipro's attrition rate was at 23.8%. Thereby, the
company has seen consistent drop in attrition rate for third consecutive
quarters. For the overall fiscal of FY22, the company's attrition rate stood
at 23.8%.

SUGGESTION TO CONTROL EMPLOYEE TURNOVER:

While reducing turnover is difficult, preventing employee turnover

requires more skill. Employers can take the following steps:
 Encourage flexibility: Flexible Work Arrangements: Offer flexible
work options such as remote work, flexible hours, or part-time
arrangements. This can assist employees in managing personal
obligations or addressing specific needs while still maintaining their
employment.
 Employee Assistance Programs (EAP): Implement an Employee
Assistance Program that provides resources and support for
employees facing personal challenges. EAPs can offer counseling
services, financial advice, or other assistance to help employees
navigate difficult situations.
 Career Development and Advancement: Provide opportunities for
career development and advancement within the organization.
When employees see a clear path for growth, they may be more
inclined to stay even during personal challenges as they perceive
long-term benefits and career stability
 Empathy and Understanding: Demonstrate empathy and
understanding towards employees' personal challenges. Managers
should be approachable and supportive, taking the time to listen and
offer assistance where possible. Show flexibility and willingness to
accommodate reasonable requests.