INDEX

CHAPTE R I II III IV INTRODUCTION RESEARCH METHODOLOGY LITERATURE REVIEW EMPLOYEE TURNOVER 4.1) T !"# O$ E%!&o "" T'()o*"( 4.2) C+'#"# O$ H,g- A). Lo/ T'()o*"( 4.0) C+&1'&+2,o) O$ T'()o*"( R+2,o 4.4) M"+#'("# To R".'1" T'()o*"( V WIPRO TECHNOLOGY LTD. 4.1) SWOT A)+& #,# 4.2) C+'#"# O$ E%!&o ""# T'()o*"( I) WIPRO VI INFOSYS LTD. 6.1) SWOT ANALYSIS 6.2) CAUSES OF EMPLOYEES TURNOVER IN INFOSYS VII VIII EFFECT OF EMPLOYEES TURNOVER MEASURES RETENTION IX EMPLOYEES RETENTION STRATEGIES
1

TABLE OF CONTENTS

Pg.No. 4 6 12 14 14 16 13 21 24 25 23 02 00 04

05 44

TO

IMPROVE

EMPLOYEES

45

STEPS

TA6EN

TO

REDUCE

EMPLOYEES

41

TURNOVER XI COMPARATIVE ANALYSIS DATA ANALYSIS AND INTERPRETATION FINDINGS RECOMMENDATIONS CASE STUDIES 8 ARTICLES CONCLUSION 9UESTIONNAIRE REFERENCES 44 45 66 67 63 54 54 57

CHAPTER 1

INTRODUCTION
All businesses, large and small, have some way of keeping track of their finances. Businesses are constantly looking for more ways to keep expenses low. One factor that is often overlooked, however, is the cost of employee turnover. High employee turnover can cost a company more than they might realize in the long run. his report explains some causes of high employee turnover, who it affects the most, and ways companies can decrease employee turnover in order to cut hidden costs.
3

!mployee turnover occurs when employees voluntarily leave their "obs and must be replaced. urnover is expressed as an annual percentage of the total workforce. #or example, $% percent employee turnover would mean that one&'uarter of a company(s workforce at the beginning of the year has left by the end of the year. urnover should not to be confused with layoffs, which involve the termination of employees at the employer(s discretion in response to business conditions such as reduced sales or a merger with another company. he severity of turnover varies widely by type of business and the economic health of the region where companies are located. )nnovative high&tech companies and the most successful manufacturers fre'uently experience low turnover rates while fast&food restaurant managers expect turnover to be as high as %* to +% percent. As another example, coal mining companies in sparsely populated regions experience lower rates of turnover because there are few other "ob opportunities.

CHAPTER 2

RESEARCH METHODLOGY
$., R"#"+(1- o:;"12,*"# abcdo identify the rate of turnover of .employees o identify the causes of employees turnover o suggest measures to reduce the rate of turnover o identify the employee turnover at various ) companies with special focus on /ipro and )nfosys
5

4.1 RESEARCH DESIGN

0A research design is the arrangement of conditions for collection and analysis data in a manner that aims to combine relevance to the researcher purpose with economy in procedure1. )t constitutes the blueprint for the collection, measurement and analysis of data. As such the design includes an outline of what the researcher will do form writing the hypothesis and its operational implication to the final analysis of data. 2ore explicitly, the design decisions happen to be in respect of3 4 /hat is the study about5 4 /hy is the study being made5 4 /here will the study be carried out5 4 /hat type of data is re'uired5 4 /here can the data are found5 4 /hat periods of time will the study include5 4 /hat will be the sample design5 4 How will the data be analyzed5 4 )n what style will the report be prepared5 4 /hat techni'ues of data collection will be used5 T-" R"#"+(1- D"#,g) ')."(2+<") $o( 2-" #2'. ,# D"#1(,!2,*" o)" . A study, which wants to portray the characteristics of a group or individuals or situation, is known as 6escriptive study. )t is mostly 'ualitative in nature.

4.2 TYPES OF DATA COLLECTED

4 P(,%+( D+2+

7uestionnaires are prepared and personal interview was conducted. 2ost of the 'uestions are consist of multiple choices. he structured interview method was undertaken. he interview was conducted in !nglish as well as in elugu. 8roper care was taken to frame the interview schedule in such a manner it should be easily understood in view of educational level of the employees. 9enerally $% 'uestions are prepared and asked to the employees. 4 S"1o).+( D+2+

:econdary data was collected from )nternets, various books, ;ournals, and <ompany =ecords.

4.0 9UESTIONNAIRE CONSTRUCTION

7uestionnaires were constructed based on the following types

4 4 4

Open ended 'uestions <lose ended 'uestions 2ultiple choice 'uestions

4.4 SAMPLING PLAN

A sampling plan is a definite design for obtaining a sample from the sampling frame. )t refers to the techni'ue or the procedure the researcher would adopt in selecting some sampling units from which inferences about the population is drawn. :ampling design is determined before any data are collected. :elective :ampling techni'ue was adopted. )n this method the researcher select those units of the population in the sample, which appear convenient to him or the management of the organization where he is conducting research.

4.6 SAMPLE SI=E

7

>early ,** samples are taken in /)8=O? )>#O:@:

4.3 DESCRIPTION OF STATISTICAL TOOLS USED

8ercentage method <hi&s'uare test

4.3.1 PERCENTAGE METHOD )n this pro"ect 8ercentage method test was used. are the formula he percentage method is used to know the

accurate percentages of the data we took, it is easy to graph out through the percentages. he following

>o of =espondent 8ercentage of =espondent A otal no. of =espondents #rom the above formula, we can get percentages of the data given by the respondents. x ,**

4.3.2 CHI>S9UARE TEST

)n this pro"ect chi&s'uare test was used. his is an analysis of techni'ue which analyzed the stated data in the pro"ect. )t analysis the assumed data and calculated in the study. he <hi& s'uare test is an important test amongst the several tests of significant developed by statistical. <hi&s'uare, symbolically written as x$ B8ronounce as Ci&:pare-, is a statistical measure used in the context of sampling analysis for comparing a variance to a theoretical variance.

#ormula
BO&!- 2 $A ! 8

O !

A A

Observed fre'uency !xpected fre'uency

NEED FOR THE STUDY

he success of any manufacturing organization depends largely on the workers, the employees are considered as the backbone of 8ondicherry 8olymers 8rivate Dtd.

he attrition rate of the company is ,,.EF. :o this study focused on why the Attrition occurs and the possible ways to reduce it.

he study was mainly undertaken to identify the level of employeeGs attitude, the dissatisfaction factors they face in the organization and for what reason they prefer to change their "ob. Once the levels of !mployeeGs attitude are identified, it would be possible for the management to take necessary action to reduce attrition level. :ince they are considered as backbone of the <ompany, their progression will lead to the success of the <ompany for the long run.

his study can be helpful in knowing, why the employees prefer to change their "ob and which factors make employee dissatisfy.

4 :ince the study is critical issue, it is needed by the originations in order to asses the overall interest and the feelings of the employees towards their nature of "ob and organization.

his study can be helpful to the management to improve its core weaknesses by the suggestions and recommendations prescribed in the pro"ect.

his study can serve as a basis for measuring the organizationGs overall performance in terms of employee satisfaction.

he need of this study can be recognized when the result of the related study need suggestions and recommendations to the similar situation.

10

CHAPTER 0

LITRETURE REVIEW
R"*,"/ o$ &,2"(+2'(" o) E%!&o "" T'()o*"(? ,. /illiam H. 8rice ? =ichard Ciekbusch ? ;ohn heis in his study on causes of employees turnover have talked about the causes and the implementation. #urther he highlighted that providing a challenging "ob, and offering realistic promotion opportunities. Other variables that have less impact are schedule input, insurance and family income. 9ood communication and "ob satisfaction.
11

$. Beri 9.<., Human =esource ata 2c9raw >ew 6elhi, in his study on the cause of factor influencing turnover and retention of staff and retention problems for professional have talked about the /orking hours, workload and work schedules which are also common concerns to both groups. )n addition, career development, promotion and Eappreciation of contribution were important retention factors, while a supportive professional environment, reduction in workload and working hours and more flexible work patterns were important to consultants.

H. <ari 2cDean, Dabour 2anagement in Agriculture, in her study knowing the reason why workers leave or edge in improving working condition and have talked about dissatisfaction with work or working condition, select and train new personnel, conducting workers satisfaction survey, find specific problem area to watch and improve .

12

CHAPTER 4

WHAT IS EMPLOYEE TURNOVER@

!mployee turnover is technically and mathematically defined as .the ratio of the number of workers that had to be replaced in a given time period to the average number of workers. 8ut simply, it is an instance when an employee leaves their position at their workplace and needs to be replaced. !mployee turnover is a ratio comparison of the number of employees a company must replace in a given time period to the average number of total employees. A huge concern to most companies, employee turnover is a costly expense especially in lower paying "ob roles, for which the employee turnover rate is highest. 2any factors play a role in the employee turnover rate of any company, and these can stem from both the employer and the employees. /ages, company
13

benefits, employee attendance, and "ob performance are all factors that play a significant role in employee turnover. )n a human resources context, turnover or labor turnover is the rate at which an employer gains and losses employees. :imple ways to describe it are Ihow long employees tend to stayI or Ithe rate of traffic through the revolving door.I urnover is measured for individual companies and for their industry as a whole. )f an employer is said to have a high turnover relative to its competitors, it means that employees of that company have a shorter average tenure than those of other companies in the same industry. High turnover can be harmful to a company(s productivity if skilled workers are often leaving and the worker population contains a high percentage of novice workers 4.1T !"# o$ E%!&o ""# T'()o*"( 1. I)2"()+& *#. "A2"()+& 2'()o*"( Dike recruitment, turnover can be classed as (internal( or external. )nternal turnover involves employees leaving their current position, and taking a new position with the same organization. Both positive Bsuch as increased morale from the change of task and supervisor- and negative Bsuch as pro"ectJrelational disruption,- effects of internal turnover exist, and thus this form of turnover may be as important to monitor as its external counterpart. )nternal turnover might be moderated and controlled by typical H= mechanisms, such as an internal recruitment policy or formal succession planning. 2. S<,&&". *#. ')#<,&&". "%!&o ""# Knskilled positions often have high turnover, and employees can generally be replaced without the organization or business incurring any loss of performance. he ease of replacing these employees provides little incentive to employers to offer generous employment contracts3 conversely, contracts may strongly favour the employer and lead to increased turnover as employees seek, and eventually find, more favorable employment. However, high turnover rates of skilled professionals can pose as a risk to the business or organization, due to the human capital Bsuch as skills, training, and knowledge- lost. >otably, given the natural specialization of skilled professionals, these employees are likely to be re&
14

employed within the same industry by a competitor. disadvantage to the business. H. Vo&')2+( *#. ,)*o&')2+( 2'()o*"(

herefore, turnover of these individuals

incurs both replacement costs to the organization, as well as resulting in a competitive

,. I)*o&')2+( L & )n this case, the employee ceases to work for the company due to being laid off or terminated. )t could be because the company is trying to cut costs, or the employee has violated company policy. $. Vo&')2+( L & Moluntary turnover is when an employee terminates employment on their own accord. here are several possible causesL& $., relocation $.$ going back to school $.H starting a family $.E taking care of an elderly relative $.% general "ob dissatisfaction such as low pay, lack of benefits, or poor management 4.2C+'#"# o$ E%!&o "" T'()o*"( here are several factors that cause high turnover within companies. his report will focus on voluntary turnover, because voluntary turnover is something that companies are more able to control. !mployees voluntarily 'uit for several reasons, specificallyL ,. pay is too low

15

$. lack of benefits H. tasks are too repetitive E. <ircumstances listed above such as family, school, or moving. %. poor management N. lack of advancement +. burnout O. <ompensation package differences ;ob and employee skill mismatchL the "ob may be less or more satisfying and challenging according o the employee. P. )nferior facilities, tools, etc ,*. Dess recognition ,,. Dess or no appreciation for work done ,$. Dess growth opportunities ,H. 8oor training ,E. 8oor supervision Dess work and life balance practices T-"(" +(" #o%" o2-"( )'%:"(# o$ $+12o(# 2-+2 1o)2(,:'2" 2o "%!&o "" 2'()o*"(. W" "A!&o(" #o%" o$ 2-"#" $+12o(# ,) %o(" ."2+,& :"&o/?>
16

,. T-" "1o)o% & in exit interviews one of the most common reasons given for leaving is the availability of higher paying "obs. :ome minimum wage workers report leaving one "ob for another that pays only %* cents an hour more. Obviously, in a better economy the availability of alternative "obs plays a role in turnover, but this tends to be overstated in exit interviews. $. T-" !"($o(%+)1" o$ 2-" o(g+),B+2,o) & an organization perceived to be in economic difficulty will also raise the specter of impending layoffs. /orkers believe that it is rational to seek other employment. H. T-" o(g+),B+2,o)+& 1'&2'(" & much has been written about organizational culture. )t is sufficient to note here that the reward system, the strength of leadership, the ability of the organizations to elicit a sense of commitment on the part of workers, and its development of a sense of shared goals, among other factors, will influence such indices of "ob satisfaction as turnover intentions and turnover rate. E. T-" 1-+(+12"(,#2,1# o$ 2-" ;o: & some "obs are intrinsically more attractive than others. A "ob(s attractiveness will be affected by many characteristics, including its repetitiveness, challenge, danger, perceived importance, and capacity to elicit a sense of accomplishment. A "ob(s status is also important, as are many other factors. %. U)("+&,#2,1 "A!"12+2,o)# & Another factor is the unrealistic expectations and general lack of knowledge that many "ob applicants has about the "ob at the time that they receive an offer. /hen these unrealistic expectations are not realized, the worker becomes disillusioned and decides to 'uit. N. D"%og(+!-,1# & empirical studies have demonstrated that turnover is associated in particular situations with demographic and biographical characteristics of workers. But to use lifestyle factors Be.g. smoking- or past employment history Be.g. many "ob changes- as an explicit basis for screening applicants, it is important for legality and fairness to "ob
17

applicants to verify such biodata empirically. C+'#"# o$ H,g- +). &o/ "%!&o "" 2'()o*"( H,g- 2'()o*"( often means that employees are unhappy with the work or compensation, but it can also indicate unsafe or unhealthy conditions, or that too few employees give satisfactory performance Bdue to unrealistic expectations or poor candidate screening-. he lack of career opportunities and challenges, dissatisfaction with the "ob&scope or conflict with the management has been cited as predictors of high turnover. High rate of turnover may lead to decrease inL ,. 8roductivity $. :ervice delivery H. :pread of organizational knowledge

Lo/ 2'()o*"( indicates that none of the above is trueL employees are satisfied, healthy and safe, and their performance is satisfactory to the employer. However, the predictors of low turnover may sometimes differ than those of high turnover. Aside from the fore&mentioned career opportunities, salary, corporate culture, management(s recognition, and a comfortable workplace seem to impact employees( decision to stay with their employer. A little rate of employee turnover may result intoL ,. Bringing in new ideas and skills from new hires. $. Better employee&"ob matches.

18

H. 2ore staffing flexibility. E. #acilitate change and innovation.

E.H HOW TO CALCULATE THE TURNOVER RATIO S2"! 1. <alculate the average number of employees the number of employees is calculated by adding the number at the start of the period, to the number at the end of the period. hen dividing by $ to arrive at the average number of employees. Fo( "A+%!&"? At the start of the year the firm employed ,*** people. At the end of the year the firm employed ,$**. o arrive at the average we add together ,*** Q ,$** A $$**. hen divide by $ to get our answer $$**J$ A ,,** this figure is the average number of people employed during the period. S2"! 2. <alculate the number of departures during the period he key here is to make sure that we only include those departures that are actually relevant. hat means those that come within the definition we are using. :o for the definitions we are using in this example the relevant figures areL otal number of exits A $$* Moluntary A ,,* !arly A %% S2"! 0. 6ivide departures by number of employees to arrive at our final figures, we divide the number of relevant departures by the average number of employees. hen multiply by ,** to get the percentage rate. #or total turnover we haveL $$* J ,,** Bx ,**- A $*F for voluntary turnover we haveL ,,*J,,** Bx,**- A ,*F for early turnover we haveL %%J,,** Bx,**- A %F <alculating !mployee urnover. Ho/"*"(C !&"+#" <""! ,) %,). 2-+2 2-"(" +(" + )'%:"( o$ 1o%!&,1+2,o)#L Det(s say there were ,** employees at the beginning of the year, and ,** employees at the end of the year, and at the end of the year, OE of those employees were the same ones as were there the previous year. @ou might say that the turnover rate was ,NF.
19

But suppose one of those ,N who left was actually replaced three times. he employee 'uit in ;anuary, the replacement 'uit in April, and another person was hired who lasted only until >ovember. hen you might want to count every time an employee left the company and another one was hired & in this case you(d get ,OF. Another complicationL suppose the work force is ,** at the beginning and P* at the end of the year. 8erhaps ,N people have left, but only N have been hired during the year, while $ more were hired and retired within the same year. @ou might define turnover as ,OJ,** or as ,OJP*, or as ,OJP%, since P% is the average of P* and ,**. )nstead of P%, you might want to do a fancier average, where you actually add up the number of employees on each day of the year, and divide the total by HN%. One more complicationL who decided it was a calendar year that we should use for sampling the turnover rate5 8erhaps there was no turnover at all for H years prior, and then a shift in management caused a lot of people to leave this year. hen a more representative measure would average over $ or H or E years. 2aybe you(d want to average the turnover in each month of the last EO, but weight recent months more heavily than earlier months. M"+#'("# 2o R".'1" 2-" R+2" o$ T'()o*"( ,. B")"$,2#. Offering employees an affordable medical, dental, and vision package in this day and age is a great way to keep employees happy. Healthy employees are happy employees, and being able to provide affordable health care for their spouses and families as well is something every company should offer. $. An added bonus could be vacation time, sick leave. On&site child care would be extremely helpful for parents who have to work long or late hoursRespecially single parents. H. H,g-"( !+ . 9iving employees regular raises and paying well over minimum wage
20

would be an incentive for them to stay. E. A #"2 #1-".'&". )n food service and retail, and most service industries as well as health care, employees are forced to work six or moreReven up to ten days in a row without a day off. 6ays off may even be split up, so the employees never really get a chance to rest. 9iving them the opportunity to choose which days off they want, or at least giving them two in a row and not working them more than five, would be extremely beneficial in employee retention. his would also increase productivity and would be beneficial to the company. %. Do: *+(,+2,o). !mployees get burned out on performing the same "ob every hour of every day, day in and day out for years, even months. <ross&training should be done, especially in food service and retail, in order to avoid burnout. N. A !o#,2,*" +22,2'." $(o% #'!"(,o(#. 2ost employees donGt like negativity from their superiors. )nstead of always being told what theyGre doing wrong, they need positive reinforcement as well as constructive criticism. 2anagers and supervisors should always have a positive attitude toward their employees and never insult, criticize, or berate them. P(o!"( 2(+,),)g $o( %+)+g"%")2. 2anagers should be trained thoroughly and consistently. he policies from location to location should be the same, and every manager and supervisor in the company should be trained the same way and be in agreement and consistent with company policies. 2anagers should be trained to treat their employees with respect, because without those employees, the business could not operate

21

CHAPTER 4

22

INTRODUCTION 2o WIPRO
/ipro echnologies Dimited is a multinational

information technology services corporation head'uartered in Bangalore, )ndia. /ipro is the third&largest ) services company in )ndia and employs more than PO,HP, people worldwide as of $**P.)t has interests varying from information technology, consumer care, lighting, engineering and healthcare businesses. Azim 8rem"i is the <hairman of the board. /ipro Blargely an acronym of I/estern )ndia 8roductsI- started as a vegetable oil trading company in ,PE+ from an old mill at Amalner, 2aharashtra, )ndia founded by Azim 8rem"i(s father. /hen his father died in ,PNN Azim, a graduate in !lectrical !ngineering from :tanford Kniversity, took on the leadersh imeline 1344 & )ncorporation as /estern )ndia Megetable 8roducts Dimited 1345 & !stablishment of an oil mill at Amalner, 2aharashtra, )ndia 136E & 2anufacture of laundry soap +O+ at Amalner 135E & 2anufacture of Bakery :hortening Manaspati at Amalner 1354 & 6iversification into engineering and manufacture of hydraulic cylinders as /)> =OD
23

Bnow called /ipro #luid 8ower- division in Bangalore. 1355 & >ame of the <ompany changed to /ipro 8roducts Dimited 137E & 6iversification into )nformation echnology 133E & )ncorporation of /ipro&9! medical systems 1332 & 9oing global with global ) services division 1330 & Business innovation award for offshore development 1334 & /ipro gets ):O P**, 'uality certification 1335 & /ipro gets :!) <22 level H certification, enterprise wide processes :tart of the :ix :igma initiative, defects prevention practices initiated at pro"ect level. 1337 & /ipro first software services company in the world to get :!) <22 level % 1333 & /ipro(s market capitalization is the highest in )ndia 2EEE & :tart of the :ix :igma initiative, defects prevention practices initiated at pro"ect level. /ipro listed on >ew @ork :tock !xchange. 2EE1 & #irst )ndian company to achieve the I DP*** certificationI for industry specific 'uality standards /ipro ac'uires American 2anagement :ystemsG global energy practice. Becomes world(s first 8<22 Devel % <ompany.
24

8rem"i established Azim 8rem"i #oundation, a not&for&profit organization for elementary education. /ipro becomes only )ndian company featured in Business /eekGs ,** best&performing technology companies. 2EE2 &/ipro ac'uires :pectra mind. =anked the +th software services company in the world by Business /eek B)nfo ech ,**, >ovember $**$-. 2EE0 >/ipro ac'uires >erve. /ipro echnologies /ins 8restigious )!!! Award for

:oftware 8rocess !xcellence. /ipro echnologies awarded prestigious ) :2A award for services marketing excellence . /ipro wins the $**H Asian 2ost Admired Cnowledge !nterprise Award. 2EE4 &<rossed the S, Billion mark in annualized revenues. /ipro launches )ndiaGs first =#)6 enabled apparel store. /ipro echnologies named Asian 2ost Admired Cnowledge !nterprise second year in a row )6< rates /ipro as the leader among worldwide offshore service providers 2EE4 & /ipro ac'uires m8ower to enter payments space and also ac'uires !uropean :ystem on <hip B:o<- design firm >ew Dogic 2EE6 & /ipro ac'uires !nabler to enter >iche =etail market 2EE5 & /ipro ac'uires K:(s )nfo crossing for N**mn

25

2EE7 & /ipro ac'uires 9allagher #inancial :ystems to enter mortgage loan origination space. 2EE3 >/ipro stops <onnectivity )8 and closes >ew Dogic :ophia&Antipolis =?6 center /ipro echnologies deals in following businesses.

4.1 SWOT A)+& #,# o$ WIPRO TECHNOLOGY L2.. ,. S2(")g2-# ,., :killed manpower ,.$ 6iversified skill base across service line ,.H delivery capabilities ? client satisfaction ,.E 2ulti domestic market philosophy ,.% <ommitment to go the extra mile ,.N =esearch and 6evelopment ,.+ echnological partnership with other software companies ,.O Dow cost advantage ,.P Ability to continually reduce the cost of service s $. W"+<)"## ,., >ot a proactive company
26

,.$ 6omestic market was huge but was underdeveloped ,.H :mall player in global market ,.E >o exposure to standard work ,.% Dimited domain ,.N /ipro provided very limited number of services. Also :tandard international 'uality practices like :ix :igma and <22) are not in place ,.+ <lients not trusting the capabilities of )ndian :oftware <os. H. O!!o(2'),2,"# ,., Huge global market ,.$ he <ompany has entered into the global market so now itGs the biggest opportunity available to the company. ,.H Huge 8otential in 6omestic 2arket ,.E @$C <risis E. T-("+2# ,., <ompetition by )ndian companies in domestic market ,.$ 8resence of big companies in global market

27

,.H !xchange rate his can be a threat to the company as the company is making profits due to the high exchange rate and if this rate comes down in future it can lead to a ma"or problem for the company 4.2 CAUSES OF EMPLOYEE TURNOVER IN WIPRO TECH LTD ,. T-" "1o)o% & in exit interviews one of the most common reasons given for leaving is the availability of higher paying "obs. :ome minimum wage workers report leaving one "ob for another that pays only %* cents an hour more. Obviously, in a better economy the availability of alternative "obs plays a role in turnover, but this tends to be overstated in exit interviews. $. T-" !"($o(%+)1" o$ 2-" o(g+),B+2,o) & an organization perceived to be in economic difficulty will also raise the specter of impending layoffs. /orkers believe that it is rational to seek other employment. H. T-" o(g+),B+2,o)+& 1'&2'(" & much has been written about organizational culture. )t is sufficient to note here that the reward system, the strength of leadership, the ability of the organizations to elicit a sense of commitment on the part of workers, and its development of a sense of shared goals, among other factors, will influence such indices of "ob satisfaction as turnover intentions and turnover rate. E. T-" 1-+(+12"(,#2,1# o$ 2-" ;o: & some "obs are intrinsically more attractive than others. A "ob(s attractiveness will be affected by many characteristics, including its repetitiveness, challenge, danger, perceived importance, and capacity to elicit a sense of accomplishment. A "ob(s status is also important, as are many other factors. %. U)("+&,#2,1 "A!"12+2,o)# & Another factor is the unrealistic expectations and general lack of knowledge that many "ob applicants has about the "ob at the time that they receive an offer. /hen these unrealistic expectations are not realized, the worker becomes disillusioned and decides to 'uit.
28

N. D"%og(+!-,1# & empirical studies have demonstrated that turnover is associated in particular situations with demographic and biographical characteristics of workers. But to use lifestyle factors Be.g. smoking- or past employment history Be.g. many "ob changes- as an explicit basis for screening applicants, it is important for legality and fairness to "ob applicants to verify such bio&data empirically.

29

CHAPTER 6

30

INTRODUCTION 2o INFOSYS

)nfosys is a Bangalore based company started in ,PO, has around %,%** employees. he highest rated script on the )ndian bourses & )nfosys is the most admired company on the B:!. )t is the face of the )ndian software industry. he company was the first in )ndia to register on the American stock exchange & >A:6A7 with an issue of two million American depository shares BA6=- that raised S+* million. As a part of )nfosys globalization efforts the company has set up a global development centre in oronto. )t also established two proximity centres at #reemont, <alifornia and Boston, 2assachusetts. )nfosys continues to expand in !urope. )n )ndia the development centre are to be opened at 2ohali, 2angalore, 2ysore, Hyderabad, 8une, <hennai and Bhubhaneshwar. one of the largest issuers of credit cards, is a new addition to the company(s clientele. company has pioneered the !mployee stock option plan B!:O8- in )ndia. ,PPO&PPBcourtesy <omputers he he companies top clients include >ordstrom, >ortel and 9oldman :achs. <apital One :ervices )nc., he company has

grown spectacularly with soaring profit margins that stood at =s.$O% crore, up from ,H$ crore in oday-. Amongst its ma"or products are the banking software popularly known as #innacle, Banc$*** and Bank Away. he company was also "udged as the %th best managed company in Asia. he company(s <hairman 2r.>.=.>arayan 2urthy was selected as one of the %* most powerful people in Asia for the year $*** in a poll conducted by Asia week. he company provides H month training to the new recruits in Bangalore. here is also a service agreement for a year. he pay package is around =s.,+, ***Bapprox.- for the year $*** recruits

31

6.1 SWOT A)+& #,# o$ INFOSYS L2.. ,. STRENGTHS?> ,., he company has bases in EE global development centers most of which are located in )ndia, although the company has offices in many developed and developing nations. his means )>#O:@: becoming a global brand but also it has the capacity to support operations of multinationals clients ,.$ )>#O:@: has a strong financial position. )t has the capital to expand and also the basis to leverage potential. $. WEA6NESSESL& ,., )>#O:@: on struggles in the K: market and has the particular problem in securing Knited :tate #edral 9ovt. contract in >orth America since these contract are highly profitable and tend to learn for a long period of time. )>#O:@: is missing out on lucrative business added to this is the fact that its competitors do well in the term of securing the same fedral business. ,.$ 6espite being a huge ) companies )>#O:@: is much smaller than its global

competitors. As a discussed above, )nfosys generate SEbillion in $**O which is comparatively very low to the other ) companies. H. OPPORTUNITY?> ,., here is a new and emerging market in <hina as the country undergoes a huge industrial revolution ,.$ he strategic alliance between )>#O:@: ? :<HDK2B!=9!= gives the ) company access to lucrative business in the oil and gas industries. At the time of the recession in the global economy it may appear that some companies will
32

reduce take up of services that )>#O:@: offers. However in tough times client tend to focus upon cost reduction and outsourcing, so hard times could be profitable for )>#O:@:. E. THREATS?> ,., <onsumer may switch to other offshore service companies in other countries such as <hina or Corea. Other global have to compete for skilled labor and this may have the effect of driving up wage levels, and making it more difficult to recruit ? retain a staff. ,.$ )ndia is not only the country that is going the rapid industrial expansion. <ompetitors may come from the other countries like such as <hina or Corea where there are a large pools low cost labor, and developing educational infrastructures such as Kniversities and technology colleges. 6.2 CAUSES OF EMPLOYEE TURNOVER IN INFOSYS 2ost environmental contributors to turnover can be directly traced to management practices. urnover tends to be higher in environments where employees feel they are taken advantage of, where they feel undervalued or ignored, and where they feel helpless or unimportant. <learly, if managers are impersonal, arbitrary, and demanding, there is greater risk of alienation and turnover. 2anagement policies can also affect the environment in basic ways such as whether employee benefits and incentives appear generous or stingy, or whether the company is responsive to employees( needs and wants. 2anagement(s handling of ma"or corporate events such as mergers or layoffs is also an important influence on the work environment afterwards. :ome turnover is demographically specific, particularly for women who are balancing significant work and family duties at the same time. :uch women Bor men- may choose to leave a company instead of sacrificing their other interests and responsibilities in order to make the "ob work out. :ome women elect to 'uit their "obs at childbirth, rather than simply taking a maternity leave. /omen(s perceptions of their career paths might also be tinted by their awareness of the glass
33

ceiling, which may lower their level of commitment to any particular firm, since they believe they(re not in contention for top&level "obs. hese factors translate into higher turnover rates for women in many companies. =etirement of experienced employees can cause high rates of turnover and extreme loss in productivity.

34

CHAPTER 5

EFFECT OF EMPLOYEES TURNOVER

High turnover can be a serious obstacle to productivity, 'uality, and profitability at firms of all sizes. #or the smallest of companies, a high turnover rate can mean that simply having enough staff to fulfill daily functions is a challenge, even beyond the issue of how well the work
35

is done when staff is available. urnover is no less a problem for ma"or companies, which often spend millions of dollars a year on turnover&related costs. #or service&oriented professions, such as management consulting or account management, high employee turnover can also lead to customer dissatisfaction and turnover, as clients feel little attachment to a revolving contact. <ustomers are also likely to experience dips in the 'uality of service each time their representative changes. )n general, reducing employee turnover saves money. 2oney saved from not having to find and train replacement workers can be used elsewhere, including the bottom line of the company(s profit statement :ome research studies have found that turnover from transient workers has lasting effects on loyal employees who stay with a company. One study tested productivity among workers who were exposed to a management&planted person who 'uit in the middle of a task, citing dissatisfaction with the "ob and the company. A second group of employees worked with another planted person who had to leave the task because of illness. he group exposed to the employee who 'uit had lower productivity levels than the group exposed to the ill employee. he employees apparently took the complainer(s statements to heart while the ill employee had nothing bad to say about the company. !mployee turnover is defined as employees who voluntarily leave their "obs and must then be replaced. urnover is shown as an annual percentage, so if $% people leave a company with ,** people, that is $% percent turnover a year. !mployees often leave companies for higher pay elsewhere, but many other factors contribute as well, and the negative effects of employee turnover should motivate managers to increase retention ,. H,(,)g P(o1"## A study published in I!ntrepreneurI magazine in $**, looked at the effects of hotel employee turnover and discovered the high price of recruiting, interviewing and hiring new workers, in addition to lost productivity Bsee =esources-. $. A12'+& Co#2 he K.:. 6epartment of Dabor estimates that it costs about HH percent of a new employee(s salary
36

to replace the worker who left. his means ma"or companies can spend millions of dollars a year on turnover costs. H. L+1< o$ S2+$$ High turnover rates can create a lack of staff to complete essential daily functions of a company. his can result in overworked, frustrated employees and dissatisfied customers. E. Lo## o$ P(o.'12,*,2 >ew employees take some time to get up to speed, particularly in complex "obs. %. C'#2o%"( D,##+2,#$+12,o) #or service&oriented careers such as account management and customer service, high turnover can lead to customer dissatisfaction. >ewer representatives lack expertise and knowledge, and customers have. COSTS DUE TO A PERSON LEAVING ,. R"1(',2%")2 Co#2# ,. he cost of advertisements Bfrom a S$**.** classified to a S%,***.** or more display advertisement-3 agency costs at $* & H*F of annual compensation3 employee referral costs of S%**.** & S$,***.** or more3 internet posting costs of SH**.** & S%**.** per listing. $. he cost of the internal recruiter(s time to understand the position re'uirements, develop and implement a sourcing strategy, review candidates backgrounds, prepare for interviews, conduct interviews, prepare candidate assessments, conduct reference checks, make the employment offer and notify unsuccessful candidates. his can range from a minimum of H* hours to over ,** hours per position. H. <alculate the cost of a recruiter(s assistant who will spend $* or more hours in basic level review of resumes, developing candidate interview schedules and making any travel arrangements for out of town candidates. E. he cost of the hiring department Bimmediate supervisor, next level manager, peers and other people on the selection list- time to review and explain position re'uirements,
37

review candidates background, conduct interviews, discuss their assessments and select a finalist. Also include their time to do their own sourcing of candidates from networks, contacts and other referrals. his can take upwards of ,** hours of total time. %. <alculate the administrative cost of handling, processing and responding to the average number of resumes considered for each opening at S,.%* per resume. N. <alculate the number of hours spend by the internal recruiter interviewing internal candidates along with the cost of those internal candidates to be away from their "obs while interviewing. +. <alculate the cost of drug screens, educational and criminal background checks and other reference checks, especially if these tasks are outsourced. 6on(t forget to calculate the number of times these are done per open position as some companies conduct this process for the final $ or H candidates. <alculate the cost of the various candidate pre&employment tests to help assess candidates( skills, abilities, aptitude, attitude, values and behaviors. $. T(+,),)g Co#2# ,. <alculate the cost of orientation in terms of the new person(s salary and the cost of the person who conducts the orientation. Also include the cost of orientation materials. $. <alculate the cost of departmental training as the actual development and delivery cost plus the cost of the salary of the new employee. >ote that the cost will be significantly higher for some positions such as sales representatives and call center agents who re'uire E & N weeks or more of classroom training. H. <alculate the cost of the person who conduct the training.

38

E. <alculate the cost of various training materials needed including company or product manuals, computer or other technology e'uipment used in the delivery of training. %. <alculate the cost of supervisory time spent in assigning, explaining and reviewing work assignments and output. his represents lost productivity of the supervisor. <onsider the amount of time spent at + hours per week for at least O weeks. H. Lo#2 P(o.'12,*,2 Co#2# As the new employee is learning the new "ob, the company policies and practices, etc. they are not fully productive. Kse the following guidelines to calculate the cost of this lost productivityL ,. Kpon completion of whatever training is provided, the employee is contributing at a $%F productivity level for the first $ & E weeks. employeesG full salary during that time period. $. 6uring weeks % & ,$, the employee is contributing at a %*F productivity level. he cost is therefore %*F of full salary during that time period. H. 6uring weeks ,H & $*, the employee is contributing at a +%F productivity level. he cost is therefore $%F of full salary during that timeperiod. E. <alculate the cost of coworkers and supervisory lost productivity due to their time spent %. <alculate the cost of mistakes the new employee makes during this elongated indoctrination period. N. <alculate the cost of lost department productivity caused by a departing member of management who is no longer available to guide and direct the remaining staff. +. <alculate the impact cost on the completion or delivery of a critical pro"ect where the departing employee is a key participant.
39

he cost therefore is +%F of the new

O. <alculate the cost of reduced productivity of a manager or director who looses a key staff member, such as an assistant, who handled a great deal of routine, administrative tasks that the manager will now have to handle. E. N"/ H,(" Co#2# ,. <alculate the cost of bring the new person on board including the cost to put the person on the payroll, establish computer and security passwords and identification cards, business cards, internal and external publicity announcements, telephone hookups, cost of establishing email accounts, costs of establishing credit card accounts, or leasing other e'uipment such as cell phones, automobiles, pagers. $. <alculate the cost of a manager(s time spent developing trust and building confidence in the new employee(s work. %. Lo#2 S+&"# Co#2# ,. #or sales staff, divide the budgeted revenue per sales territory into weekly amounts and multiply that amount for each week the territory is vacant, including training time. Also use the lost productivity calculations above to calculate the lost sales until the sales representative is fully productive. <an also be used for telemarketing and inside sales representatives. $. #or non&sales staff, calculate the revenue per employee by dividing total company revenue by the average number of employees in a given year. /hether an employee contributes directly or indirectly to the generation of revenue, their purpose is to provide some defined set of responsibilities that are necessary to the generation of revenue. <alculate the lost revenue by multiplying the number of weeks the position is vacant by the average weekly revenue per employee.

40

41

CHAPTER 7

M"+#'("# To I%!(o*" E%!&o "" R"2")2,o)

)t is worth considering the following elements, all of which have been shown to play a positive role in improving retentionL ,. Do: !("*,"/# & give prospective employees a (realistic "ob preview( at the recruitment stage. ake care not to raise expectations only to dash them later. Advances in technology present employers with increasing opportunities to familiarize potential candidates with the organization before they accept a position. $. M+<" &,)" %+)+g"(# +11o')2+:&" & for staff turnover in their teams. =eward managers with a good record for keeping people by including the sub"ect in appraisals. rain line
42

managers in people management and development skills before appointing or promoting them. Offer re&training opportunities to existing managers who have a high level of turnover in their team. H. C+(""( ."*"&o!%")2 +). !(og("##,o) & maximize opportunities for individual employees to develop their skills and move on in their careers. /here promotions are not feasible, look for sideways moves that vary experience and make the work more interesting. E. Co)#'&2 "%!&o ""# & ensure wherever possible that employees have a (voice( through consultative bodies, regular appraisals, attitude surveys and grievance systems. his will provide dissatisfied employees with a number of mechanisms to sort out problems before resigning. /here there is no opportunity to voice dissatisfaction, resigning is the only option. %. B" $&"A,:&" & wherever possible accommodate individual preferences on working hours and times. /here people are forced to work hours that do not suit their domestic responsibilities they will invariably be looking for another "ob which can offer such hours of a culture of (presenteeism( & where people feel obliged to work longer hours than are necessary simply to impress management. !valuation of individual commitment should be based on results achieved and not on hours put in. N. Do: #"1'(,2 & provide as much "ob security as possible. !mployees who are made to feel that their "obs are precarious may put a great deal of effort in to impress, but they are also likely to be looking for more secure employment at the same time. :ecurity and stability are greatly valued by most employees. +. T("+2 !"o!&" $+,(& & never discriminate against employees. A perception of unfairness, whatever the reality when seen from a management point of view, is a ma"or cause of voluntary resignations. /hile the overall level of pay is unlikely to play a ma"or role unless it is way below the market rate, perceived unfairness in the distribution of rewards
43

is very likely to lead to resignations.. O. D"$"). o'( o(g+),B+2,o) & against penetration by headhunters and others seeking to poach your staff. Ceep internal e&mail addresses confidential, refuse to do business with agents who have poached your staff, and enter into pacts with other employers not to poach one another(s staff.

44

CHAPTER 3

EMPLOYEE>RETENTION STRATEGIESL
,. =ecognize your impact as a manager $. )mplement effective workJlife programs H. 8rovide personal productivity training E. Ad"ust or establish constructive Human =esources policies. 1. R"1og),B" o'( ,%!+12 +# + %+)+g"( As an office manager, you must specifically communicate to employees that you appreciate their contributions, rather than talking to them only when they do something wrong. Kse charts and graphs distributed through electronic bulletin boards and e&mail groups to keep your team
45

informed of results and how they are moving toward company goals. 2. I%!&"%")2 "$$"12,*" /o(<F&,$" !(og(+%# 2ore and more organizations are looking to workJlife programs to help employees cope with workplace stress. 2any of Fortune(s I,** Best <ompanies to /ork for in AmericaI cite workJlife programs as one of their top tools to attract and retain the best employees and give their companies a competitive edge. 0. P(o*,." !"(#o)+& !(o.'12,*,2 2(+,),)g hrough proper productivity training, many people who work a %*Thour week can achieve those same results in E* hours. @ou create mutual value for the company and employees when youL ,. )dentify key employees, whose production rate and results are superior. $. Help employees learn to achieve the same results in less time through productivity training. H. Det employees leave the office earlier and get home to their lives. E. )mprove employee morale and "ob satisfaction to increase retention. Both sides benefit from this win&win productivity proposition. E%!&o "(#? ,. Achieve the results they need without pushing employees over the edge. $. Become an employer of choice.

46

H. =educe staff turnover. E%!&o ""#? ,. Achieve more results in less time. $. Balance work and personal lives. H. !xperience less stress. 4. A.;'#2 o( "#2+:&,#- 1o)#2('12,*" H'%+) R"#o'(1"# !o&,1,"# he methods described below can be technical and often have legal ramifications, so you should consult with H= and legal resources before implementing these policies. S+&+( >&"*"& 1+!# :tructure pay levels by "ob categories so that long&term employees don(t price themselves out of their "obs. 8roperly structured salary&level caps prevent this situation because the salary for a given "ob will never be higher than the "ob is worth. P-+#".>,) :")"$,2 !&+)# !stablish retirement plans that aren(t fully vested until employees have many years on the "ob. his encourages people to stay. #or example, an employee is $%F vested after two years, %*F after five years, and ,**F after ,* years. Also award additional vacation time for each year an employee is with the company. P"($o(%+)1">:+#". #+&+( ,)1("+#"# <reate performance&planning and review programs that help you retain desirable employees.
47

#re'uent reviews and positive reinforcement reward and encourage high&performing employees. 8oorer performers can be identified and assisted, then rewarded when they improve.

CHAPTER 1E

48

W-+2 I),2,+& S2"!# C+) B" T+<") To R".'1" T'()o*"(@

,. F,(#2C -,(" 2-" (,g-2 !"o!&" +). 1o)2,)'" 2o ."*"&o! 2-",( 1+(""(#. 6oes your company have an ongoing career development program, tuition reimbursement, or skills training program5 An investment in upgrading the workforce is one of the best investments a company can make when looking at long&term growth. Hiring the people that are a good IfitI with the culture of the organization R meaning that their values, principles, andgoals clearly match those of the company R and then training as necessary will go a long way toward ensuring employee loyalty and retention. $. S"1o).C %o#2 1o%!+),"# /,2- &o/ 2'()o*"( (+2"# +(" *"( "%!&o "" o(,")2".. hey

solicit input and involvement from all employees and maintain a true Iopen&doorI policy that avoids closed&door meetings. !mployees are given an opportunity for advancement and are not micro&managed. )ntrinsic rewards are critical. !mployees must believe they have a voice and are recognized for their contribution. =emember that ItrustI and IloyaltyI are a two&way street. 6oes your company(s culture encourage open communication and employee input5 H. T-,(.C ."*"&o! +) o*"(+&& #2(+2"g,1 1o%!")#+2,o) !+1<+g" that includes not only base and variable pay scales, but long&term incentive compensation, bonus and gain&sharing plans,
49

benefit plans to address the health and welfare issues of the employees, and non&cash rewards and perks as well. o be competitive in today(s labor market, most companies find it necessary to offer a standard benefit package, including health, dental, and life insurance, vacation and leave policies, and investment and retirement plans. But what more could be done that would be cost effective toward creating an employee&oriented work environment5 E. C("+2,*,2 ,) 1o%!")#+2,o) +). :")"$,2# can make 'uite a difference to the welfare of the employee. A company should assess overall employee needs when addressing retention issues. %. Co)#,."( o2-"( o!2,o)# R such as alternative work schedules or flextime, or perhaps preventative health care and wellness programs such as fitness center memberships R as possible cost&effective benefits. 6on(t forget that perks or non&cash rewards to recognize exceptional performance can be critical. :ervice recognition, event tickets, trips, and public recognition can send strong messages to the public regarding company culture and values. :imply examine the issues and needs of your employees and try to develop creative programs to address these needs.

50

CHAPTER 11

51

Co%!+(+2,*" S2'. o$ Bo2- 2-" Co%!+),"#

hrough the comparative study of both the companies ) have found that companies have facing the problem of employees turnover because of the pay is too low, lack of benefits ,tasks are too repetitive circumstances listed above such as family, school, or moving, poor management ,lack of advancement, burnout, less recognition, less or no appreciation for work done, less growth opportunities, 8oor training, 8oor supervision, Dess work and life balance practices which are almost the same in both companies.

52

CHAPTER 12

53

CHAPTER 10

54

D+2+ A)+& #,# +). I)2"(!("2+2,o)?

A)+& #,# U#,)g P"(1")2+g" M"2-o. ,. <lassification of the respondents based on their AGE LEVEL

:.>o

Age

>o. of =espondents

8ercentage

,O&$%

H%

+*

$N&H%

,$

$E

HN&E%

*H

*N

Above E%

otal :ourceL 8rimary 6ata I)$"(")1"?

%*

,**

55

he above table infers that, +* percent belongs to the age group of ,O&$% years, $E percent belongs to the age group of $N&H% years, and N percent belongs to the age group of HN&E% years.

P E R C E N T A G E

70 60 50 40 30 20 10 0 18-25 26-35 36-45 Above 45

AGE LEVEL

$. <lassification of the =espondents based on their MOTIVATION :.no , Devel of Attitude Highly :atisfied BH.:*+ $ 2oderately :atisfied B2.:$N H >eutral B>,% E 2oderately 6issatisfied B2.6*$ % otal Highly 6issatisfied BH.6* %*
56

>o. of =espondents

8ercentage

,E

%$

H*

*E

* ,**

:ourceL 8rimary 6ata I)$"(")1"? he above table shows regarding 2otivation that, ,E percent of the respondents are highly satisfied, %$ percent of the respondents are moderately satisfied, H* percent of the respondents are neutral.

60
P E R C E N T A G E

50 40 30 20 10 0 H.S M.S N M.D H.D

LEVEL OF ATTITUDE

57

H. <lassification of the =espondents based on their APPRAISAL :.no , $ H E % otal :ourceL 8rimary 6ata I)$"(")1"? he above table shows regarding Appraisal that, ,* percent of the respondents are highly satisfied, HO percent of the respondents are moderately satisfied, EO percent of the respondents are neutral. Devel of Attitude Highly :atisfied BH.:2oderately :atisfied B2.:>eutral B>2oderately 6issatisfied B2.6Highly 6issatisfied BH.6>o. of =espondents *% ,P $E *$ * %* 8ercentage ,* HO EO *E * ,**

50
P E R C E N T A G E

40 30 20 10 0 H.S M.S N M.D H.D

LEVEL OF ATTITUDE

E. <lassification of the =espondents based on their DISSATISFACTION FACTOR

58

:.no

6issatisfaction #actor

>o of =espondents

8ercentage

/ork 8ressure B/.82anagement 6ecisions

*P

,O

B2.6-

*N

,$

/ork !nvironment B/.!-

*+

,E

8ay :tructure B8.:-

,*

$*

Others

,O

HN

otal :ourceL 8rimary 6ata I)$"(")1"?

%*

,**

he above table shows regarding 6issatisfaction factor that, HN percent of the respondents are dissatisfied due to Other personal factors, $* percent of the respondents are dissatisfied due to 8ay :tructure, ,O percent of the respondents are dissatisfied due to /ork 8ressure.

59

MAKE EMPLOYEES TO GET DISSATIS IED

40

30

20

PE/0ENTAGE

10

0 )o#* P#e$$'#e )o#*+,- E,v+#o,.e,! P%& S!#'(!'#e O!"e#$ M%,%-e.e,! De(+$+o,

:.no

<onsideration s

>o =espondents

of 8ercentage

@es

HP

+O

>o

,,

$$

otal

%*

,**

60

%. <lassification of the =espondents based on their CONSIDERATIONS FOR EMPLOYEE CREATIVITY I)$"(")1"? he above table shows regarding <onsiderations for employee creativity that,+O percent of the respondents say @es and $$ percent of the respondents say >o.

P E R C E N T A G E

80 60 40 20 0 Ye$ No

CONSIDERATIONS FOR EMPLOYEE CREATIVITY

ANALYSIS USING CHI>S9UARE TEST> 2 N'&& H !o2-"#,# here is no significance difference between #reedom to convey problems and <onsiderations for employee creativity factors. OBSERVED COUNT

61

#reedom to <onvey problems :.no !mployee <reativity @es >o otal

, $ otal

@es >o

HH *N HP

*$ *P ,,

H% ,% %*

:ourceL 8rimary 6ata EXPECTED COUNT #reedom to <onvey problems :.no !mployee <reativity @es >o otal

, $ otal

@es >o

$+.H ,,.+ HP.*

+.+ H.H ,,.*

H%.* ,%.* %*.*

:ourceL 8rimary 6ata FORMULA BO&!- 2

62

$A ! O ! A A Observed fre'uency !xpected fre'uency

COMPUTATION OF CHI>S9UARE G 2 ) :.>o O , $ H E HH $ N P O AD :ourceL 8rimary 6ata he calculated value is ,O.*H 6egree of freedom A B=&,- B<&,- A B$&,- B$&,A, Devel of significance A %F able value , of 69# and %F level of significance A H.O%E ,O.*H U H.O%E & <alculated Malue is greater than abulated Malue Hence, >ull hypothesis is re"ected. INFERENCE E $+.H +.+ ,,.+ H.H GO>E) %.+ &%.+ &%.+ %.+ GO>E)2 H$.EP &H$.EP &H$.EP H$.EP GO>E)2 FE ,.,P E.$$ $.+O P.OE ,O.*H

63

hus <hi&:'uare test infers that there is significance difference regarding #reedom to convey problems and <onsiderations for employee creativity factors.

FINDINGS
6uring the pro"ect ) found that the company should adopt these strategies to come up the problem of employeesG turnoverL& ,. B")"$,2#. Offering employees an affordable medical, dental, and vision package in this day and age is a great way to keep employees happy. Healthy employees are happy employees, and being able to provide affordable health care for their spouses and families as well is something every company should offer. An added bonus could be vacation time, sick leave. On&site child care would be extremely helpful for parents who have to work long or late hoursRespecially single parents. $. H,g-"( !+ . 9iving employees regular raises and paying well over minimum wage would be an incentive for them to stay. H. A #"2 #1-".'&". )n food service and retail, and most service industries as well as health care, employees are forced to work six or moreReven up to ten days in a row without a day off. 6ays off may even be split up, so the employees never really get a chance to rest. 9iving them the opportunity to choose which days off they want, or at least giving them two in a row and not working them more than five, would be extremely beneficial in employee retention. E. Do: *+(,+2,o). !mployees get burned out on performing the same "ob every hour of
64

every day, day in and day out for years, even months. <ross&training should be done, especially in food service and retail, in order to avoid burnout. %. A !o#,2,*" +22,2'." $(o% #'!"(,o(#. 2anagers and supervisors should always have a positive attitude toward their employees and never insult, criticize, or berate them. N. P(o!"( 2(+,),)g $o( %+)+g"%")2. 2anagers should be trained thoroughly and consistently. he policies from location to location should be the same, and every manager and supervisor in the company should be trained the same way and be in agreement and consistent with company policies. 2anagers should be trained to treat their employees with respect, because without those employees, the business could not operate.

65

RECOMMENDATIONS
urnovers can detrimental effect on an organization and its employees if company management allows it. here are a tool to assist in addressing the causes of turnover is often used as a performance indicator may be preventive measure should be as well. )t is impossible to eliminate turnover altogether therefore management must learn how to deal with it and the effect it has on a company. )n addition management should be better prepared to take the proper action after the turnover event occurs. All effort should be focused on maintaining "ob satisfaction and managing controllable caused of turnover. he list of recommendation to prevent turnover in companies areL ,. 9et involved in finding out the causes of turnover $. Bring attention to bottom fig. ? how turnover affect everyone H. Have an open door policy style of managing to allow employee to comment on what might be bothering then about the "ob.

E. =ealize there is more than one problem and pay attention to all stay alert.

%. !xecute periodic audits of "ob satisfaction.

N. Have a :trict hiring standard do not "ust fill opening and.

+. 6evelop and constantly update training strategies.

66

C+#" S2'.,"# +). A(2,1&"#

C+#" S2'. o) W,!(o

) ma"or /ipro echnologies that employs around ,$$,HO% people, has announced salary hikes effective ;une ,, $*,,, in an effort to retain its manpower. he wage hike is in the range of ,$ to ,% per cent for its )ndia&based staff and H to E per cent for employees working at client locations. As high attrition rate is alarming the ) and B8O ma"ors in the country, /ipro said it is working towards employee retention and keeping the employee spirits high. 8lans to increase on&site working opportunities 0!mployees are an important aspect of the company(s health. /e want our employees to be more excited about their company and they should see a career growth opportunity here. /e want to give them opportunity to go out there, see the customer and learn their technology,1 he said after the financial results were anounced here on /ednesday. his could be an interesting move for the company in ensuring employee retention at the entry and mid range level, since engagement programs, on&site opportunities and salary hikes are considered accelerators of employee satisfaction. Moluntary attrition $$.+ p.c. in #@ ,*&,, 8ratik Cumar, executive vice president, human resources, /ipro Dimited and president, /ipro )nfrastructure !ngineering, shared that the company is looking at increasing employee communication by organizing events and engagement programs. He said, 0/e are giving salary hikes effective ;une ,, $*,,. C and the team has built up a calendar transparently communicating that every year the cycle for work review and salary appraisal will happen effective ;une ,.1

67

he ) services division saw the voluntary attrition going up to $$.+ per cent in #@ ,*&,, against ,$., per cent on #@ *P&,* )n the fourth 'uarter it came around $*.P per cent, marginally lower than $,.+ per cent last 'uarter.

A(2,1&" o) WIPRO
/ipro continued the trend of bumper results from ) companies. :e'uential and year&on&year growth is the highest in the past eight 'uarters. /ipro(s sale was up EHF @o@ to =s H,%%O crore and ,HF se'uentially. 8rofits rose E+F @o@ and ,HF 7o7 to =s +** crore. However, the story on margins is that they are flat. he company(s profitability has been impacted by *.$F compared to previous 'uarter. his impact would have been much more if the company had not seen a massive improvement in profitability of its ac'uisitions. he company has got some relief from improving margins in the B8O business. he share of )ndia in the total revenue mix of the company has grown in this 'uarter. However, this is one area where the company is showing a lot of variations over the 'uarters. Apart from this, the rest of the geographies show uniform growth. Attrition in /ipro has been creeping up for the last six 'uarters. )t currently stands at ,OF. )t stood at ,%.PF for the last ,$ months. he company has added %,H$O employees during the 'uarter. utilization numbers going forward. his large addition has led to utilisation rates falling to NPF. 8ast trends suggest that there could be further fall in the he

management lists visa costs and forex gains as two more areas providing some relief on margins.

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C+#" #2'. o) INFOSYS

here were a lot of shocking numbers in )nfosys( 'uarterly earnings. But one that stands out the most is the ,E.P percent attrition rate&this is even given that an industry facing a slowdown typically records low attrition figures. An !conomic imes report suggests that close to O,*** employees left )nfosys in the past three months mainly due to wage&hike issues. he management however during the company(s earnings last week said that there is nothing alarming about the attrition rate as a lot of people leave for higher studies during this 'uarter. he company had also said that it will hire people laterally to combat this attrition. An earlier Business :tandard report in 2ay said that the number of )nfosys employees looking to move was on the rise. hat report had signaled this announcement in 2ay. !xperts note that this is definitely a tough time for )nfosys and the system is undergoing a shake up. I hese numbers Battrition- are thrice as much as the general industry rate. )t(s pretty bad. he company is undergoing a overhaul and maybe the company also laid off people given the demand environment,I said a recruitment expert who spoke to #irstpost on the condition of anonymity. A"it )saac, 26 and <!O at )kya Human <apital :olutions, a Bangalore&based recruitment agency also suggested that the company said that the company might have laid off level H and level E B"unior employees- since their utilization rate, or employees working on live pro"ects was close to N+ percent. I)n the next few 'uarters, ) attrition will come down because of the slowing demand. ) believe that a company like )nfosys will recover from this,I he told #irstpost.

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A(2,1&" o) INFOSYS
)nfosys, )ndia(s >o $ software services provider, is working on expanding the scope of technical tests in lateral recruitment to include candidates across the experience spectrum. /hile technical tests have always been part of the selection process, not all lateral recruits currently re'uire technical tests. he company is rolling out a plan to make sure all lateral positions re'uire a corresponding technical test, )nfosys said, in response to a 'uery from ! . his would mean even senior level lateral hiring will involve tests, which currently form part of various interview rounds that candidates face, depending on the level at which they are being considered. )nfosys is doing this to ensure it hires top 'uality talent but there are concerns that this will also make hiring at senior levels more difficult, two persons within the company with knowledge of the discussions said. he persons didn(t want to be named as the discussions were internal, but added that founder >= >arayana 2urthy was keen to go ahead on the plan despite the concerns. I2urthy wants to improve the 'uality of lateral hires,I said one of the persons. IHowever, there is a worry that senior talent might resist taking such tests and )nfosys will lose out on good talent.I )n a statement, )nfosys saidL IAs the technology landscape has changed, we have also modified the technical assessments to ensure we bring the best and relevant talent into the company. At this time, technical assessments are administered as part of the interviews conducted by our panel of experts with potential lateral hires as applicable.I )ndia(s S,,O&billion ) outsourcing industry has some H million employees, and recruiting

experienced staff is an enormous exercise that has been made more complicated with potential recruits being on social media. <ompetition is fierce for talented people, and every percentage point improvement in the selection ratio represents significant cost savings.
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)n the three months ended 6ecember H,, )nfosys(s attrition, or staff churn, went down in absolute terms, but the company has a much higher attrition rate compared with larger rival <onsultancy :ervices. <:(s ,*&,,F attrition is the best among the top five )ndian providers. I he first&level supervisors, pro"ect leads, tech leads, team leads, there is 'uite a bit of demand across the ) services industry,I said Aditya >arayan 2isra, staffing director at the )ndian unit of 6utch staffing firm =andstad. I hat(s the first line which can create an impact with the customers and business directly.I 2urthy(s mulling tests could also be an indication of the type of work clients are expecting of )nfosys that has always prided itself on its superior execution ability. As )nfosys seeks to automate more processes, work that needs to be done by humans would arguably re'uire leaders with greater technical competency as well self assurance in handling teams under stressful deadlines and in dynamic situations when things go wrong. here are two things that companies look for in a lateral hireL technical competency and soft skills related to managing people. Darge ) services companies typically don(t conduct tests for the first level lateral recruits, with E&% years experience, unless a particular pro"ect or assignment they are recruiting for calls for such a test, 2isra said. /ith interviews, the most common tool used to assess a potential recruit, however, Ithe success rate is not very good ... we have seen many cases where companies are distressed, after calling in many people for interviews and then not finding anyone suitable.I <ompanies used to shy away from these technical testing, but today technology has developed to the level where these tests can be cost effectively administered. Mideo interview based tests are increasing, and companies such as )nterview !xchange with targeted tools and tests help employers expedite their recruitment plans, he added. 2isra added, Iin the last couple of years, the incidence of using some of these tests as an elimination tool has increasedI. ata

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CONCLUSION
) have found through the analysis that most of the industries have faced the problem of turnover because of dissatisfaction with work or working condition, the /orking hours, workload and t h e t h e worker is industri es reduces their employees turnover problem, are given belowL& not up to the marks, as per the analysis the various way through which work schedules, incentives, salaries and the facility which are provided to

,. =emove the barriers and biases which create unfair workplace $. conducting workers satisfaction survey, find specific problem area to watch and improve H. =eduction in workload and working hours and more flexible work patterns were important to consultants. E. 8roviding a challenging "ob, and offering realistic promotion opportunities. %. Help employees learn to achieve the same results in less time through productivity training. N. 8rovide as much "ob security as possible. +. #re'uent reviews and positive reinforcement reward and encourage high&performing employees.
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O. 2aximize opportunities for individual employees to develop their skills and move on in their careers. P. Offering employees an affordable medical, dental, and vision package in this day and age is a great way to keep employees happy.

9UESTIONNAIRE
PERSONAL DATA? ,. >ameL $. 6esignationL H. AgeL a- ,O &$% E. 2arital statusL a- 2arried b- unmarried b- $N T H% c- HN &E% d- above E%

%. !ducational 7ualificationL a- Below Hr. :ec. e- Others N. @ears of !xperienceL a- * T $ years b- H T % years c- N T O years d- Above O years b- Hr. :ec c- K9 or 89 d- ) ) or

+. <ontact >o ? AddressL

OTHER DATA?
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O. )dentify your role in &&&&&&5 V op level mgt V Dower level mgt V 2iddle level mgt V <ontracted person

P. How long you are working here5 V W, year V ,&$ years V $&H years V U H years

,*. How well do you understand your "ob and the role it plays in achieving your vision 5 V >ot at all V 8retty much V >ot really V :ome what V otally

,,. =ate the following factors Highly satisfied 2otivation Appraisal :atisfied >eutral 6issatisfied Highly 6issatisfied

,$. /hich of the following makes you to get dissatisfied..5 V /ork 8ressure V 2anagement 6ecisions V others

V /orking !nvironment V 8ay structure

,H. 6o you believe that there is a decrease in your 6issatisfaction level &&&&&5 V >ot at all V :omewhat ok
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V Average

V =eally good

,E. #or which reason, you prefer to change the "ob..5 V Health condition V 9rowth V Others V #amily issues V 2onetary benefits

,%. )s there any considerations for the employeeGs creativity..5 a- @es b- >o

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REFERENCES

BOO6S a- =odger 9riffeth B$**O- ,Managing Employee Turnover b- A<A:. B$**H-, Managing attendance and employee turnover. c- )><O2!: 6A A :!=M)<!:.,B$**O-, Improving staff retention. H= :tudies dA@DO=, :. B$**$-, The employee retention handbook. 6eveloping practice.

WEBSITES a- www.infosys.com b- www.wiproltd.com c- www.retention.naukrihub.com d- www.empturnover.com

DOURNALS
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a- DA/D!=, !.!. B$**O- /hy are we losing all our good people5 Harvard Business =eview. b- 2A<A#!!, 2. B$**+- How to conduct exit interviews. 8eople 2anagement. c- =A>C)>, >. B$**O- he drivers of staff retention and employee engagement. d- =A>C)>, >. B$**P- Dabour turnover rates and costs in the KC in $**O. eA@DO=, :. B$**N- Are you keeping your employees happy5 he H= 6irector.

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