A STUDY ON “ ATTRITION RATE “

ABSTRACT
The study on attrition rate will be conducted on employees of Lanson Toyota. The
primary objective of the research study was to analyze the attrition rate and determine the
factors that contributes to employee dissatisfaction and the satisfaction level of employees
with the various facilities provided by the company. The factors that influences attrition rate
includes salary, superior-subordinate relationships, working conditions, welfare, working
hours, career growth, personal/family reasons. The study investigated job satisfaction and
demographic variables on the intention of employees to leave the organization. Three
variables were tested in the study, viz. job satisfaction, demographic variables and the
intention to leave. The factors that affect job satisfaction were measured by adopting items
from the Structured Questionnaire.
The Research design used in this study was Descriptive Statistics. The sampling
technique used was convenient sampling as it deals with the employees who had left the
organization due to various factors. The primary data was obtained using structured
Questionnaire through web. And the secondary data was obtained using the internal sources.
The data obtained was analysed using percentage analysis and statistical tools such as chi-
square, factor analysis, weighted average analysis.
 INTRODUCTION
Employee Attrition is a voluntary reduction in an organization’s manpower through
resignations. A high attrition rate causes a high employee turnover in an organization,
reducing quantity and quality of an organization’s manpower. This in turn causes a huge
expenditure on human resource, by contributing towards repeated acquisition, training and
development, and performance management. Attrition or voluntary turnover, although
undesirable to any firm, is not completely avoidable. Yet, by improving employee morale and
providing a satisfactory working environment, this problem can be nullified to a greater
extent. Employee attrition is the rate at which organizations and/or company's hiring and fire
employees to either represent their firm or leave their firms. It is also referred to the
employee turnover rate. Employee Attrition is the natural thinking of workers due to
retirement, layoffs, quitting or any other reason for leaving the job.
EMPLOYEE TURNOVER VS. ATTRITION
"Turnover" and "attrition" are business and human-resource terms that often are
confused. There are several types of turnover, but attrition usually can be described as a
reduction in workforce. Using these terms interchangeably or incorrectly can affect your
workforce data and skew measurements that are necessary for workforce planning. Employee
turnover and employee attrition both occur when an employee leaves the company. Turnover,
however, may result from a number of employment actions, such as discharge, termination,
resignation or job abandonment. Attrition occurs when an employee retires or when the
company eliminates his job. The major difference between the two is that when turnover
occurs, the company seeks someone to replace the employee. In cases of attrition, the
employer leaves the vacancy unfilled or eliminates that job role.
 OBJECTIVES OF THE STUDY
PRIMARY OBJECTIVE:
 To analyze the attrition rate in Lanson Toyota, Chennai.
SECONDARY OBJECTIVES:
 To examine whether there is any relationship between the job satisfaction level of
employees and certain demographic variables and turnover intentions.
 To identify the reasons behind employees voluntary resignation in Lanson Toyota.
 To identify the retention factors and their influence on turnover intentions of
employees.
 SCOPE OF THE STUDY
 This study can help the management to know for which reason the employees tend to
change their job through dissatisfaction factors faced in the organization.
 This study can serve as a basis for measuring the organization’s overall performance
in terms of employee satisfaction.
 This study can help the management to find the weaker parts that employee feels
towards the organization.
 This study throws light through valuable suggestions to decrease attrition level in the
organization.
 NEED OF THE STUDY
This study is aimed at identifying the attributes that led to employees voluntary
resignations which increase the employee turnover rate with respect to Service industry. It is
providing measures to achieve high employee retention rate with respect to Service industry.
The success of any manufacturing organization depends largely on the workers, the
employees are considered as the backbone of any company. The study was mainly
undertaken to identify the level of employee’s attitude, the dissatisfaction factors they face in
the organization and for what reason they prefer to change their job. Once the levels of
employee’s attitude are identified, it would be possible for the management to take necessary
action to reduce attrition level. Since they are considered as backbone of the company, their
progression will lead to the success of the company for the long run. This study can be
helpful in knowing, why the employees prefer to change their job and which factors make
employee dissatisfy. Since the study is critical issue, it is needed by the originations in order
to assess the overall interest and the feelings of the employees towards their nature of job and
organization.
 CHAPTER 2
LITERATURE SURVEY

2.1. LITERATURE REVIEW:

VP Thirulogasundaram and S A Senthil Kumar (2016) divided all factors into two
main factors: individual and propel factors. Individual factor is most significant which
contributes 17.5% in attrition whereas propel factors contribute only 1.3% in attrition.
Individual factors such as health problems and work stress, children’s education, unrealistic
expectation for organisation and fun. In propel factor no significant reasons were found
because of which employees quit.
Savneet Kaur (2015) says that there is no universal attrition management solution.
For every organisation there exists a particular kind of motivation technique that has to be
followed keeping in mind the type of employees and the set goals of the organisation.
Attrition should be kept a check on a regular basis along with the calculation of cost attached
to it.
Dr K. Malar Mathi and G. Malathi(2015) says that escaping the issue of attrition is
not a concept that is unattainable. Attrition can be reduced when employees are truly
committed and dedicated to their work. To reduce employee turnover, in depth hiring or exit
interviews helps to sustain employees
Yiu Lichia and Saner Raymond (2014), measured HR function by reporting on the
findings of a survey of attrition in Indian companies and discussed the possible strategies
chosen by Indian companies to counter costly labour turnover. Higher attrition can be
minimised through the payment of higher compensation packages. The researches suggested
that Indian companies should do more to strengthen the bonding of internal social networks
and deepen individual job satisfaction and organizational commitments to ensure talent
retention through competence development and career planning.
Jeen Dorance Batty S. (2014), aimed to the factors which may be the possible
reasons for an employee to leave an organization. Employee’s turnover intention and its
impact on organizational outcomes were analyzed and that was collected through
questionnaires from the first and middle line employees in selected organized retail outlets in
Bangalore. From the econometric analysis, it was found that turnover intention has influenced
attrition factors such as Quality of Work Life, career growth, working hours, personal/family
reasons, and relation with internal co – worker, welfare, working condition, and salary.
Supervising officer will more likely resign from the company due to a conflict with
the higher management than an employee who is in conflict with his immediate supervisor
(Diabelle Joy Macadangdang Pazcoguin 2013). He identified the determinant factors that
affect employee resignation from the company. Two sets of data gathering procedures were
conducted. An equal number of employee and officer respondents were asked to answer a set
of questionnaires that were categorized according to workload, goals, personality, career
advancement, and organizational management. The results of the two data gathering
procedures showed that the highest factor that contributes to employee resignation is financial
remuneration, followed by career advancement.
Rana Hussain, Aiza (2013), examined the influence of talent management (TM) and
employee turnover intention (ETO) on organizational efficiency (OE) in telecommunication
sector of Pakistan (TSP). It was found that by reducing ETO organizations efficiency can be
enhanced. Research results revealed an interesting dimension of talent management which
reflects negative relationship with organizational efficiency in TSP. This finding reflected
that TM sometime elevates ETO and reduces the OE. TSP needs to reduce employee turnover
rate by managing the talent properly to elevate OE.
Kanwal and Muhammad (2013), focused on the retention of employees in banks in
Pakistan. Research focused on the factors that are in relevance to the bonus and rewards,
satisfaction of employees with the job, training as a career exposure management team work,
are the major contributors towards the employee retention in an organization. It was found
that training and development had a significant impact on the employee retention. Other
factors that have been recognized in the literature review had a synergic effect on the
employees’ performance. Therefore it was suggested that both the employees and the
Manager must work in a team and had an effective collaboration with each other while
performing in the team work.
Mathur, Atul and Agarwal, P. K. (2013), aimed to understand the impact of
retention strategies on employee turnover in sugar industry in India. The focus of this study
was on dysfunctional turnover. Other variables such as welfare benefits, personal satisfaction
and organization culture, which are associated with the employee turnover, were also
investigated as a part of this study. It was found that the main reason for leaving the
organization by employees were compensation and working environment. Results of the
study revealed that retention strategies have direct impact on employee turnover. Researcher
suggested that by using different HR practices like effective compensation policy,
performance appraisal, training and development programme, feedback and assigning
competitive work the condition of employee retention can been increased.
Balakrishnan and Masthan, D. (2013), identified the drivers of the employee
engagement and also examined the relationship between employee engagement and employee
retention. It was observed that employee engagement leads to commitment and psychological
attachment and ref lects in the form of high retention (low attrition) of employees. The
study suggested that the level of engagement in employees can be enhanced by identifying its
drivers (influential factors). Organizations can design good practices in the light of findings
to retain their best talent (highly skilled and specialized human resources) without much
financial burden. Statistical evidence in the study confirm that the employee retention can be
improved by addressing nonfinancial drivers of employee engagement like communication,
recognition, manager/supervisor support (relationship), work engagement, team work and
role clarity.
Kwenin, O. D. and Muathe S. et.al (2013), analyzed the influence of employee
rewards, job satisfaction and human resource policies on employee retention in Vodafone
Ghana Limited. The results showed that organizations’ fair reward systems lead to equity and
increase retention. The findings also revealed that job satisfaction and favourable human
resource policies have positive link with retention. Moreover, the study also identified that
employee job satisfaction as a strong signal for retention. Consequently, the study
recommended that management of the organization should provide intrinsic values in the jobs
to make them more satisfying for the employees to stay.
Attrition in India today is alarmingly high. The striking aspect is the insights different
surveys and studies throw. According to Mercer‟s study (2011), almost 54% of Indians are
seriously considering leaving their organization. This may not be directly connected to
„satisfaction with their organization‟; The traditional understanding always points towards
satisfaction as the reason of attrition – if satisfaction is more, attrition should be less.
Horwitz (2008:1) points out that in Asia, China and Japan, the problem of lack of
skilled workers is seen to be the biggest threat organisations will face in the future. This
places more pressure on South African organisations to compete for skilled labour in the
global labour pool. In South Africa, according to Horwitz (2008:1), organisations are failing
to retain workers, owing to the fact that employees quit their jobs because of lack of career
advancement and ineffective utilization of their knowledge and skills.
 CHAPTER 3
METHODOLOGY

3.1. RESEARCH METHODOLOGY:

Research methodology is a way to systematically solve the research problem. It may
be understood as a science of studying how research is done scientifically. In this study,
various steps are adopted by a researcher in studying the research problem along with the
logic behind them. It is necessary for the researcher to know not only the research
methods/techniques but also the methodology.
RESEARCH DESIGN:
A research design is the arrangement of conditions for collection and analysis of data in a
manner that aims to combine relevance to the research purpose with economy in procedure.
Descriptive type of research has been used in this study. Descriptive research includes
surveys and fact-finding enquiries of different kinds. The major purpose of descriptive
research is description of the state of affairs as it exists at present.
 The research design used for the study was Description Research Design.
TYPE OF DATA:
PRIMARY DATA:
The primary data are those which are collected afresh and for the first time, and thus
happen to be original in character. In this study questionnaire has been used to collect
primary data. The questionnaire is close ended with a likert scale from 1 to 5 with loadings
starting from Strongly Agree to Strongly Disagree.
 In this study the primary data was collected using Structured Questionnaire through e-
mail.
SECONDARY DATA:
The secondary data are those which have already been collected by someone else. In this
study secondary data are collected from the feedbacks filled by the employees who left the
organization.
 The secondary data for this study was obtained from internal sources.
SAMPLING TECHNIQUE:
The sampling technique used in this study is convenience sampling under non
probability sampling. When population elements are selected for inclusion in the sample
based on the ease of access, it can be called convenience sampling. It is also accidental
sampling because the researcher includes the respondent whom he meets accidentally.
SAMPLE SIZE:
The total number of population in the organization is 244. A sample of 20
respondents was taken into consideration for my study and required data will be collected.
STATISTICAL TOOL USED:
1. Frequency analysis is used to determine the ratio of response by the respondents.
2. Factor analysis is a technique applicable when there is a systematic interdependence
among a set of observed or manifest variables and the researcher is interested in finding out
something more fundamental or latent which creates this commonality.
3. Chi-square is a statistical measure used in the context of sampling analysis for comparing a
variance to a theoretical variance.
4. Weighted average analysis helps to find out the level of employee satisfaction. A weighted
average is an average of factors when certain factors count more than others or are of varying
degrees of importance.
 CHAPTER -4
ANALYSIS AND INTERPRETATION OF DATA

Questions S.no Options Frequency Percentage

%
The working hours are 1 strongly agreed 36 30%
satisfactory
2 Agreed 60 50%

3 Neutral 18 15%

4 Disagreed 6 5%

5 strongly 0 0
disagreed

I am happy with my present 1 strongly agreed 0 0

salary
2 Agreed 48 40%

3 Neutral 54 45%

4 Disagreed 18 15%

5 strongly 0 0
disagreed

INTERPRETATION:
The findings reveal that majority (50%) respondents agreed that they are satisfied with their
working hours. This could mean that there was probability that management. Furthermore, it
was noted that the employees satisfaction towards their salary where majority (45%)
responded were neutral.
Questions S.no Options Frequency Percentage
%
Reason behind voluntary 1 strongly agreed 24 20%
resignation is to care for the
children.
2 Agreed 24 20%

3 Neutral 18 15%

4 Disagreed 24 20%

5 strongly 30 25%
disagreed

1 strongly agreed 18 15%

Reason behind voluntary
resignation is due to health or 2 Agreed 24 20%
medical issue.
3 Neutral 30 25%

4 Disagreed 36 30%

5 strongly 12 10%
disagreed

INTERPRETATION:
The findings reveal that majority (25%) respondents Strongly disagreed that the reason for
resignation was not because of their concern for children. Furthermore, it was noted that
majority (30%) respondents disagreed that the reason for resignation is not due to health or
medical issues.
Questions S.no Options Frequency Percentage
%
1 strongly agreed 36 30%
My supervisor is fair and
supportive.
2 Agreed 60 50%

3 Neutral 12 10%

4 Disagreed 6 5%

5 strongly 6 5%
disagreed

1 strongly agreed 30 25%

Welfare facilities are fair in the
organization. 2 Agreed 54 45%

3 Neutral 24 20%

4 Disagreed 0 0

5 strongly 12 10%
disagreed

INTERPRETATION:
The findings state that majority (50%) respondents agreed that there was a fair superior-
subordinate relationship. Furthermore, the welfare facilities of the organization are fair
enough to satisfy the employees which was agreed by 45% of respondents.
DEMOGRAPHIC OF THE RESPONDENTS

GENDER OF THE RESPONDENTS

gender of the respondents

Cumulative
Frequency Percent Valid Percent Percent

Valid Male 13 65% 65% 65

Female 7 35% 35% 100.0

Total 20 100.0 100.0

GENDER
14
12
10
8
6
GENDER
4
2
0
Male Female Others
1 2 3

INFERENCE:

The inference for the respondents of the gender majority (65%) were male and (35%)
were female in the respondents .
 CHAPTER 5
FINDINGS, SUGGESTIONS AND CONCLUSION
5.1. FINDINGS AND SUGGESTIONS:
 The findings reveal that majority (50%) respondents agreed that they are satisfied
with their working hours. This could mean that there was probability that
management has flexible working hours. Furthermore, it was noted that the
employees satisfaction towards their salary where majority (45%) responded were
neutral.
 The findings reveal that majority (25%) respondents Strongly disagreed that the
reason for resignation was not because of their concern for children. Furthermore, it
was noted that majority (30%) respondents disagreed that the reason for resignation is
not due to health or medical issues.
 The findings state that majority(50%) respondents agreed that there was a fair
superior-subordinate relationship. Furthermore , the welfare facilities of the
organization are fair enough to satisfy the employees which was agreed by 45% of
respondents.
 Furthermore, it was noted that majority (30%) respondents disagreed that the reason
for resignation is not due to health or medical issues. 20% of respondents has
responded as neutral which shows that it depends on the demographic variables.
 The findings state that majority(50%) respondents agreed that there was a fair
superior-subordinate relationship. This means that the management plays a major role
in reducing the attrition rate in the organization.
 Furthermore , the welfare facilities of the organization are fair enough to satisfy the
employees which was agreed by 45% of respondents. 25% of respondents strongly
agreed that they are satisfied with the facilities provided by the organization.
5.2. CONCLUSION:
The aim of this research was to primarily determine the impact of job satisfaction and
certain demographic variables on turnover intentions of the employees. Turnover is a burning
issue for any organizations. For the steady productivity of an organization it is essential to
maintain its skilled workforce. But most of the times it is very difficult to control the turnover
rate within organizations. There are so many factors that affect turnover.
The main reasons for attrition are higher studies, marriage, alternative job
opportunities and insufficient payment. The suggestions given by the employees who left the
organization are better working employment and job security. Insufficient payment, work
pressure, external pressure and personal factors greatly contributed to high employee turnover
rates in the organization . Finally it can be concluded that the organization should focus on
the measures that will attract employees to stay inside the organization.
First of all, obviously satisfactory salary structure helps to reduce turnover though job
security is also an important issue . A person does not stay in an organization only for salary
but he/she may stay for many other reasons such as, rearranging employees, good stream
relation, better working environment, preferable job location etc.
 REFERENCE

 Kothari, C. (2004). Research Methodology, Methods and Techniques. New Delphi:

International P Limited.
 Diabelle Joy Macadangdang Pazcoguin, January 2013, “The Effects of
Miscommunication between Supervising Officers and Supervised Employees on
Company Attrition and Employee Resignation”, International Journal of Science and
Research (IJSR), India Online ISSN: 2319-7064, Volume 2 Issue 1.
 Firth, L., David, J.M. Kathleen, A.M., & Claude, L. (2007). How can managers
reduce employee intention to quit? Journal of Management Psychology
 Griffith, R.W., & Hom, P.W. (2001). Retaining Valued Employees. London, Sage
Publication.
 Noe, R.A., Hollenbeck, J.R., Gerhart, B. & Wright, P.M. (2006). Human Resources
Management Gaining a Competitive Advantage. 4th ed. New York, McGraw Hill.
 ANNEXURE
1.Gender
a)Male b)Female c)Others
2.Age
a)18-28 b)28-38 c)48-58 d)58 and above
3.Educational Qualification
a)10th b)12th c)UG/diploma d)PG/Phd e)others
4.Marital status
a)Married b)Unmarried c)Widow d)Divorced
5.Income
a)Below 1 lakh b)1-3 lakhs c)3-5 lakhs d)5-10 lakhs e)Above 10 lakhs
6.Total number of years worked in the organisation?
a)Freshers b)0-2years c)2-5years d)5-10years
e)10 years and above.
Objective 1:
7.I am satisfied with the present job
a)Strongly agreed b)agreed c)neutral d)disagreed e)strongly disagreed
8.The training programs offered in lanson Toyota are helpful for effective performance
a)Strongly agreed b)agreed c)neutral d)disagreed e)strongly disagreed
9) I am happy with my present salary
a)Strongly agreed b)agreed c)neutral d)disagreed e)strongly disagreed
10)The working hours are satisfactory
a)Strongly agreed b)agreed c)neutral d)disagreed e)strongly disagreed
11)I am satisfied with the nature of my work
a)Strongly agreed b)agreed c)neutral d)disagreed e)strongly disagreed
12) Working in this organization is giving me a status in society.
a)Strongly agreed b)agreed c)neutral d)disagreed e)strongly disagreed
13) I don’t feel stressful inside the organization.
a)Strongly agreed b)agreed c)neutral d)disagreed e)strongly disagreed
14) I have strong work-life balance.
a)Strongly agreed b)agreed c)neutral d)disagreed e)strongly disagreed
15) My job is secured in the organization.
a)Strongly agreed b)agreed c)neutral d)disagreed e)strongly disagreed

Objective 2: Reasons behind voluntary resignation

16) To care for my children.
a)Strongly agreed b)agreed c)neutral d)disagreed e)strongly disagreed
17) To care for other dependents.
a)Strongly agreed b)agreed c)neutral d)disagreed e)strongly disagreed
18) Moving away from area.
a)Strongly agreed b)agreed c)neutral d)disagreed e)strongly disagreed
19) Returning from full time education (career break).
a)Strongly agreed b)agreed c)neutral d)disagreed e)strongly disagreed
20) Health or medical issues.
a)Strongly agreed b)agreed c)neutral d)disagreed e)strongly disagreed
Objective 3:
21) The management team is available to discuss job related grievances.
a)Strongly agreed b)agreed c)neutral d)disagreed e)strongly disagreed
22) The management is providing recognitions for employees achievements.
a)Strongly agreed b)agreed c)neutral d)disagreed e)strongly disagreed
23) The management is encouraging cooperation among the employees.
a)Strongly agreed b)agreed c)neutral d)disagreed e)strongly disagreed
24) The management is providing career development opportunities.
a)Strongly agreed b)agreed c)neutral d)disagreed e)strongly disagreed
25) My supervisor is fair and supportive.
a) Strongly agreed b)agreed c)neutral d)disagreed e)strongly disagreed
26) My colleagues are working with strong team spirit.
a)Strongly agreed b)agreed c)neutral d)disagreed e)strongly disagreed
27)I experience a very less work pressure and it is the least cause for leaving the job.
a)Strongly agreed b)agreed c)neutral d)disagreed e)strongly disagreed
28)I experience a very less External pressure and it is the least cause for leaving the job.
a)Strongly agreed b)agreed c)neutral d)disagreed e)strongly disagreed
29)Welfare facilities are fair in the organization.
a)Strongly agreed b)agreed c)neutral d)disagreed e)strongly disagreed