Dissertation Project

Analysis of motivation factors at work and managing workforce attrition crisis in IT Companies.
Panel Name: Ms Soumi Rai
4th Dec 2011

Submitted By: Name: Aastha Bhatia PRN: 10020241001 HR Specialization MBA IB 2010-12

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SYMBIOSIS INSTITUTE OF INTERNATIONAL BUSINESS [SIIB] Title: Analysis of motivation factors at work and managing workforce attrition crisis in IT Companies. Brief Note: On average, attrition costs companies 18 months salary for each manager or professional who leaves. This amounts to major organizational and financial stress, considering that one out of every three employees plans to leave his or her job in the next two years in IT companies, according to a study completed by Ipsos-Reid. The retention of talented, experienced managers and executives is one of the biggest strategic challenges facing organizations today as they strive for high performance. The subject of managing employee retention and reducing attrition involves a companys strategic actions to keep employees motivated and focused so they choose to remain employed and fully productive for the benefit of the organization. In order to generate such organizational commitment from the employees, the knowledge about what motivates and satisfies them is essential. The knowledge about needs and expectations of employees at work represents the basis for their motivation. The purpose of this research is to investigate what are the critical motivation and satisfaction factors for IT employees, what causes them to stay and what are the main reasons for leaving their current or previous IT employers. Understanding their motivation and needs will help IT companies to lower their turnover, attrition costs and retain valuable employees by satisfying their needs. Objectives of the project: To study and understand the work culture in IT companies. To investigate the motivation factors for employees working in IT sector. To do root cause analysis and find out the possible reasons for high attrition rate in IT sector. To determine the essentials for retaining employees.

Scope of the project: In todays hyper-competitive marketplace, understanding the factors that foster employee motivation and, thus organizational performance is very critical. The scope of the project will be limited to the IT companies in India. The research will provide a fundamental basis for a focused
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approach to manage attrition crisis by understanding motivation factors for IT employees. This study will give an insight into the factors and the things that are valued by the employees. Most IT companies suffer high employee turnover. Identifying motivation and satisfaction factors for IT employees is therefore of great importance in increasing employee retention. Methodology for project development: The research will be based on theories, best practices, case studies, interviews and questionnaires. The methodology followed for the project is outlined below: First of all, an exploratory research will be carried out to understand the work culture in IT companies. Through secondary sources, an extensive search will be carried out to explore the motivating factors for IT employees and the secondary research will also be extended to find out the employee retention practices to reduce attrition rate in IT companies. Through secondary research, a tentative list of motivation factors will be drafted which will form the foundation for carrying out primary research. The next phase will be carried out only if sufficient time and appropriate sample size is available for primary research. The questionnaire will be launched online in the form of a survey by using the online survey software Qualtrics. It can also be asked through personal interviews with employees. The most challenging step will be, finding the point of contact in IT companies and finding the correct respondents who could give us information by filling up the survey correctly. The last phase will be the data interpretation phase. On the completion of the data collection process, the data analysis will be carried out to find the critical motivation factors for the employees and the factors that lead to higher employee turnover in IT companies. The concluding part will be about the research findings based on the above results and scope for future research. Data Collection: Secondary Research The various sources for carrying out secondary research are as follows: Ebsco host Emerald HBR Mckinsey Quarterly Reports
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Knowledge@Wharton Relevant readings from library Other Internet sites

Primary Research This will be carried out only if there is sufficient time and appropriate sample size. The approach here will be: Cold calling: Data will be collected by cold calling officials in key positions who are authorized to give the information on the research topic. The contact details of these officials will be collected from personal/direct contacts and information available on the internet. Questionnaire: Questionnaires both in online and paper form will be distributed and filled up by the current and ex IT employees to give detailed information about the motivation factors. The questionnaire will be prepared to elicit responses from IT employees with diverse background and varying experience levels. Analysis of data: Qualitative Data Investigation of literature review will be done by using, understanding and applying concepts of motivational theories. Quantitative Data MIS Reports will be generated from the received responses and statistical analysis will be performed to draw out key trends in motivation and attrition factors. Microsoft Excel will be used to analyze the results, and graphs will be drawn to compare results for various factors. SPSS might also be used for grouping the responses and carrying out factor analysis.

Findings: The findings through both primary and secondary research will lead to the factors that motivate employees to stay and perform to their maximum capabilities. Also it will help us to find reasons for high attrition rate in IT companies. Conclusion: The research will help the IT companies manage and decrease their employee turnover rates by understanding the factors that motivate them to stay with their current employer.
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