EVALUATION & COMPARATIVE STUDY OF IMPACT OF EMPLOYEES ABSENTEEISM & ATTRITION RATE

TITLE

A PROJECT SUBMITTED IN PART COMPLETION OF MASTERS IN MANAGEMENT STUDIES TO TIMSR

BY Balajee S Cashvinkutathil

Under Prof. Francis Lobo

TIMSR MHRDM BATCH 2009-12 Shyamnarayan Thakur Marg, Thakur Village, Kandivli (E), Mumbai - 400 101

CERTIFICATE

This is to certify that the study presented by Mr. Balajee S Cashvinkutathil to Thakur Institute of Management Studies and Research in part completion of Masters in Human Resources and Development Management under Evaluation & Comparative Study of Impact of Employee Absenteeism an Attrition Rate has been done under my guidance in the year 2009-12

The Project is in the nature of original work that has not so far been submitted for any other course in this institute or any other institute. Reference of work and relative sources of information have been given at the end of the project

Signature of the Candidate

Forwarded through the Research Guide

Signature of the Guide

(Name of the Guide)

Acknowledgment

I have taken efforts in this project. However, it would not have been possible without the kind support and help of many individuals and organizations. I would like to extend my sincere thanks to all of them. I am highly indebted to First Advantage Private Limited for their guidance and constant supervision as well as for providing necessary information regarding the project & also for their support in completing the project. I would like to express my gratitude towards my parents & member of First Advantage Private Limited for their kind co-operation and encouragement which help me in completion of this project. I would like to express my special gratitude and thanks to HR Department of my Organization for giving me such attention and time. My thanks and appreciations also go to my colleague in developing the project and people who have willingly helped me out with their abilities.

EXECUTIVE SUMMARY

OBJECTIVE

INDEX

Chapter

Topic

Page Number

Absenteeism

8-16

Profile of the company

17-20

Theories of Absenteeism

21-30

Research Methodology

31-34

Analysis & Interpretation

35-59

Findings

60-61

Attrition Rate

62-75

Attrition Rate Calculation

76

Conclusion, Bibliography

77-79

10

Questionnaire

80-85

CHAPTER 1

ABSENTEEISM

1.1 INTRODUCTION

Absence is the failure of worker to report for work when he is scheduled to the work. A work is to be treated as absent for the purpose of this absenteeism statistics even when he does not turn up for a week after obtaining prior permission. Absenteeism is classified in to two types viz., authorized absenteeism and unauthorized absenteeism. Authorized absenteeism is permitted absenteeism i.e., taking leave prior permission of an employer. Unauthorized absenteeism means taking leave without prior permission of an employer. Absence of worker on account of strike or lock out or layoff i.e., involuntary absent is not considered as absence for the purpose of absenteeism study. Absenteeism rate is the percentage of man days lost due to voluntary absent (both authorized and unauthorized) to the corresponding total man days schedule to work. It can be expressed as under: Man days lost (both authorized and unauthorized) ------------------------------------------------------------------Man days scheduled to work X100

According to K.N Vaid absenteeism can be measured with the help of the following formula

Persons not working due to Authorized leave + unauthorized leave Absence Rate = -------------------------------------------------------------------X100 Man shifts actually worked

According to the view of K. Aswathappa, Absenteeism costs money to the organization besides reflecting employee dissatisfaction with the company. Absenteeism is unavoidable

when the employee himself or herself falls sick, His or her dependents at home suddenly become unwell or there is an accident inside the plant. Unavoidable absenteeism is accepted by managers and is even sanctioned by labor laws. Avoidable absenteeism arises due to night shifts, opportunities for moon lighting and earning extra income, indebt ness, lack of job security, unfriendly supervision and job dissatisfaction. This absenteeism needs intervention by the management. Absenteeism is of two types: 1. Innocent absenteeism - Is one in which the employee is absent from work due to genuine cause or reason. It may be due to his illness or personal family problem or any other real reason 2. Culpable Absenteeism - is one in which a person is absent from work without any genuine reason or cause. He may be pretending to be ill or just wanted a holiday and stay at home.

Many employees will, on occasions, need a few days off work because of illness, however, when absences become more frequent or long term and reach an unacceptable level, action by management is necessary. Absence from work can be expensive i n b o t h m o n e t a r y include: (i) Replacing the employee or requiring other staff to cover the absence; (ii) Inability to provide services, or achieve section and and h u m a n t e r m s . The c o s t s i n c u r r e d w h e n a n employee is absent from work may

departmental objectives;

(iii) Low morale and general dissatisfaction from other staff, particularly if the absence is perceived as unwarranted.

10

Effects of absenteeism on Industry

Absenteeism Affects production targets Increases the work load of inexperienced & less experienced Leads to rejection of finished products Increases the cost of production Lowers the Profit margin Affects Industrial growth

11

Effects of absenteeism on the employees

Absenteeism Reduces his earnings Adds his indebtedness Decreases the Purchasing power Leads to family problems Increases mental stress Leads to inefficiency in his job Loss of employment

12

PECULIA FEATURES OF ABSENTEEISM: On the basis of micro studies undertaken in different parts of the country, certain observations may be made. a. The rate of absenteeism is the lowest on pay day; it increases considerably on the days following the payments of wages and bonus. b. Absenteeism is generally high among workers below 2 5 years of age and those above 40. The younger employees are not regular and punctual, presumably because of the employment of a large number of newcomers among the younger age groups. While the older people are not able to withstand the strenuous nature of the work. c. The rate of absenteeism varies from department to department within a unit. As the size of the group increases, the rate of absenteeism goes up. This difference in the rate of absenteeism is believed to be due to the peculiar style and practices of management, the composition of the laborer force and the culture of the organization. d. The percentage of absenteeism is generally higher in the day shifts. e. The percentage of absenteeism is much higher in coal and mining industries than in organized industries f. Absenteeism in India is seasonal in character. g. It is the highest during March-April-may, when a land has to be prepared for monsoon saving, and also in the harvest season,
13

when the rate goes as high as 40 percent. 1.2 STATEMENT OF THE PROBLEM

First Advantage Pvt. Ltd is a company with 800 employees and it is a developing company getting a new reputation in the field of e-publishing. So it is very essential for the company to concentrate in the employees commitment towards the work assessed for him. It is also easier to find the employees satisfaction towards his job by conducting a study on employee absenteeism which thereby helps the company to retain its employee, since it is found that there is a low rate of labor turnover in this company. So, this study will help the company to adopt measures to reduce absenteeism and to increase the employees commitment towards his job by knowing the factors which remains as a hindrance for the employee to be punctual towards his job.

14

1.3

NEED FOR STUDY

One of the major problems affecting the precious resource of any organization is absenteeism. Absenteeism is not only an individual problem but also a social as well as economic problem of our country. When absenteeism becomes a habit there is not only general lowering of morale, but also results in loss and deterioration of skill and efficiency. This may lead an organization to attain reduced productivity. Decrease in production will affect the profits of the company. To control the rate of absenteeism we should know what absenteeism is and study the factors such as personal factors, social factors and environmental factors responsible for absenteeism. Reducing the rate of absenteeism is not a simple task. So, there is a great need for the research and analysis of absenteeism in the organization.

1.4

OBJECTIVES OF THE STUDY

15

To study the general causes for employee absenteeism To analyze the workplace factors which leads to employee

absenteeism in the organization? To find out the most prominent general and work life factors that

leads to absenteeism in the organization

1.5 LIMITATIONS OF THE STUDY The information provided by them may be subjected to personal bias. Some of the respondents were not interested to express their views. It is possible that some of the respondents feel that the management has backed the study and hence the reliability of the response. Due to time constraints and busy schedules it was difficult to interact with the employees completely.

CHAPTER-2

PROFILE OF THE COMPANY

16

2.1Introduction First Advantage Pvt. Ltd the largest provider of employment background screening services in the Asia Pacific region, now provides a full spectrum of risk mitigating talent acquisition solutions. Operating in Asia Pacific since 2000 and starting in Hong Kong, over the last ten years we have seen expediential growth. First Advantage now has 14 offices and over 1,600 employees in the Asia Pacific region including Australia, China (Beijing, Shanghai and Zhuhai), Hong Kong, India (Mumbai, Chennai, Gurgaon and Bangalore), Japan, Korea, Malaysia, Philippines and Singapore. Widely recognized as the leader in background services in Asia Pacific, by combing our global reach and local expertise, First Advantage has now expanded its risk mitigating services to include solutions that complement the expertise we have nurtured. Our comprehensive range of new solutions helps reduce the risk, time and cost associated with recruiting, applicant tracking, and candidate screening. Learn more about acquiring qualified, ready-to-work candidates.

2.2 Leadership team Wayne Tollemache, CEO, FADVs core management group consists of professionals with several years experience in the Background verification industry. This group is backed up by a team of around 800 highly qualified professionals, working together effectively with a
17

willingness to explore new ideas and enhancing value for our clients.

and learn

endlessly, setting

exceptional standards of performance and productivity, creating

2.3 Vision By 2013 it plans to emerge as the worlds leading provider of end-toend background and verification, profitable delivering solutions to superior returns to shareholders customers through

empowered and professionally skilled employees.

2.4 Clients First Advantage Pvt. Ltd has built its clients base in the past 17years out of its sheer focus in customer satisfaction. First Advantage Pvt. Ltd which is a leading background verification company in India quotes that this client list was accomplished only by maintaining schedule integrity, providing high quality deliverables, being flexible and adaptable and forging bonds of long lasting nature.

Their clients are, 1) JP Morgan Chase 2) Delloite 3) HUL 4) Future Group

2.5 Company Working Hours

18

General shiftFirst shiftSecond shiftThird shift-

9 am to 6 pm 10 am to 2 pm 2 pm to 10 pm 10 pm to 6 am

2.6 STRUCTURE OF HUMAN RESOURCE DEPARTMENT

eneral Manager

General Manager

Recruitment

Employee Relations Admin

L&D

19

Manager nager

Manager

Manager

Senior

Senior Senior Executive

Senior Executive

Senior Executive

Executive

Executive Executive

Executive

Executive

20

Senior executive S CHAPTER-3

REVIEW OF LITERATURE THEORIES OF ABSENTEEISM: Absence behavior is discussed in terms of theories on absences such as the notion of the informal contract, perceived inequity, and withdrawal from stressful work situations, dynamic conflict, social exchange, withdrawal, non-attendance, organizationally excused vs. Organizationally unexcused, involuntary v/s Voluntary and lastly four-category taxonomy.

3.1 INFORMAL CONTRACT: Gibsson (1966) attempted to explain some of the main features of absence behaviour by means of the notion of an informal contract. The contract is viewed as being made between the individual and the organisation. Gibsson (1966) was especially interested in absences that were n o t long enough to activate f o r m a l l e g it im is in g (certification) procedures. He used the concept of valence, referring to a persons positive or negative relationships to a work situation and pointed out that if the combined valences of a work situation are weak, it will be easier for people to legitimise their absences to themselves.

Gibsson (1966) remarks that a plausible idea relating to the size of the organisation influences absence rates; in larger is organisations, since there is greater division of labour, there

also more concealment of the contributions of individuals, thus permitting latitude for absence from work. He also mentions the importance of the employees identification with the organisation, as in the case of longer-service employees, and argues for the importance of the authenticity of the work contract (Gibsson, 1966). In other words, the organisation should be seen to offer a fair deal to the individual, whose feelings of obligation would thus be strengthened.

In this research Gibssons (1966) concept of valence, referring to an individuals positive and determine whether negative relationship attitudes with low toward (Job job a is work to situation has relevance, as the aim of this research work-related

Involvement involvement

and Organisational Commitment) predict employee absenteeism. It i s h y p o t h e s i s e d tha t employees and organizational commitment (negative relationship to the

work situations) will have higher levels of absenteeism.

3.2 RESOLVING PERCIEVED INEQUITY: Adams (1965), Hill and Trist (1953) and Patchen (1960) have made notable theoretical contributions towards the study of absenteeism. No recent literature has been identified which has built on this perspective. Adams (1965) suggested that absences may be a means of resolving perceived inequity; the probability of absence behaviour will increase with the magnitude of inequity and if other means of reducing inequity are not available. Patchen (1960) had tested this kind of hypothesis; producing evidence of a relationship between absences and perceived fairness of pay, that is, employees feelings about how fairly they had been treated in regard to their pay levels and promotions. 3.3 WITHDRAWAL FROM THE STRESS OF WORK SITUATIONS: In their study on absence, Hill and Trist (1953; 1962) contributed a theory of absence as being the withdrawal from the stress of work situations. Withdrawal is the central explanatory concept; thus, individuals unsanctioned Hanisch and experiencing conflicts of satisfaction and obligations absences Hulin (this is, absences that without Trist formal (1962), and tend to express them through labor turnover, accidents, and permission). In addition to the views of Hill and (1991) theorized

absenteeism

other withdrawal behaviors reflect invisible attitudes such as job dissatisfaction, low level of organisational commitment, or an intention to quit. According to this view, an employee who is absent from work is consciously or unconsciously expressing negative attachment to the organization.

3.4 DYNAMIC CONFLICT: The withdrawal explanation offered by Hill and Trist (1962) had some subsequent influence on theoretical discussions by s (1962) and Knox (1961). Gadourek (1965) described the latter as dynamic conflict theories. The conflict is located within the individual, and whether a person stays or withdraws is the result of a complex in incentives and stresses. 3.5 SOCIAL EXCHANGE: Chadwick-Jones step (1982) presented a case for the theory of

absenteeism that is social, not individual in emphasis. As a first Chadwick-Jones (1982) assumed the interdependency of members of work organisations. It seems obvious that individuals do have some mutual obligations to peers, subordinates, and superiors (as well as other relationships outside the work situation). In this context the rights and duties of individuals are both subject to, and representative of, a set of rules about activities in the work situation. What individuals do is therefore likely to be in answer to, on behalf of, in defense of, as well as achieving a compromise with the rules of the group. The second assumption made by Chadwick-Jones (1982), is that under the employment contract, exchange is taking place some between form o f s o c i a l employers and

employees. Whatever they exchange in this situation whether it is their time, effort, or skill or money, security, congenial friends or anything else- it will be only what is possible for employees in the organisation. individuals and Exchanges may be conceived as between work groups, or between work groups and

management, but it would not be realistic to conceive of the exchange between the individual and the organisation while

disregarding the social conditions and rules. Chadwick-Jones think of social exchange between employees and employers as developing in, or as revealed by, a pattern of behaviour in the work situation that includes absences with all the other factors that constitute the contract, formal and informal, between employers and employees. Formal factors include pay, hours, disciplinary rules, job duties, and promotion lines. Informal ones include supervisory styles, peer group relations, and salient to their analysis absence from work. Chadwick-Jones (1982) however, do point out that absences may not enter into the exchange at all, insofar as some employees or employee groups, especially those with higher status supervisors in factories, managers in banks are absent very little or hardly at all. It is quite possible, however, that managers possess greater control over the allocation of their working time and may take periods of time out that are not recorded. 3.6 WITHDRAWAL: According to Chadwick-Jones (1982), absence from work, where work is defined by the employees presence at a particular location (office or workshop) for a fixed period each day, can be interpreted as an individual act of choice between alternative activities; as withdrawal or escape from surveillance; as individual or group resistance to an inflexible system. Thus, absence may also be viewed as a stratagem in inter-group relations, as a defensive or aggressive act in inter-group conflict (Chadwick-Jones et al., 1982). For the purpose of this research this theory has relevance, as the reasons for absence behaviour could be related to a choice of alternative activities instead of attending work.

3.7 NON-ATTENDANCE: Another definition of of absenteeism refers to the non-

attendance from

employees of

for scheduled work (Gibons, 1966; that are arranged in

Johns, 1978; Jones, 1971). The definition distinguishes absenteeism other forms non-attendance advanced (e.g. vacations) and specifically avoids judgments of legitimacy associated with absent events that are implied by as sick leave. This definitional emphasis seeks to focus on the key organisational consequences of unscheduled non-attendance instability in the supply of labor to the organisation resulting in the disruption of scheduled work processes and the loss of under utilisation Nicholson, 1977). For this research this definition will be applicable, as the researcher will not take into account absences due to vacation leave and sick leave taken over more than three days. 3.8 EXCUSED VS UNEXCUSED: In terms of distinguishing among types of absence, one simple distinction that previous studies (Blau, 1985; Cheloha & Farr, 1980; Firzgibbons & Moch, 1980) made is between organisationally excused versus organisationally unexcused absences. Based on these studies, it seems that organisations operationalise excused absence to include (within defined limits) categories such as personal sickness, jury duty, religious holidays, funeral leave, and transportation problems. However, as Johns and Nicholson (1982) noted, absence behaviour can have a variety of meanings for individuals. This research will focus on the organizationally unexcused type of absenteeism. of productive capacity (Allen, 1981; Jones, 1971,

3.9 INVOLUNTARY VS VOLUNTARY: March and Simon (1958) on the and other hand, distinguished vocation,

between two basic types of absences: involuntary (e.g. Certified sickness, funeral attendance) voluntary (e.g. uncertified sickness). Voluntary absences are under the direct control of the employee and are frequently utilised for personal aims. Conversely, involuntary absences are beyond the employees immediate control. Hence, voluntary rather than involuntary absences from work may reflect job dissatisfaction and lack of commitment to the organization. 3.10 A FOUR-CATEGORY TAXONOMY: Blau and Boal (1987) presented a four-category taxonomy

describing the meanings of absence. These categories are medical, career enhancing, normative and calculative. In the medical category infrequent , absence is viewed as a response to various and uncontrollable events (illness, injury, fatigue, and such an absence (medical) occurred, it

family demands). If

probably would be operationalised as a sporadically occurring excused absence (Blau & Boal, 1987). In the career enhancing category, absence is depicted as a mechanism that gives the employee a further choice to pursue task- and career-related goals. For the normative category, absence is viewed less as a motivated behaviour and more as a habitual response to the norms of the work group (organisation) regarding absence (Blau & Boal, 1987). As such, this type of absence probably would operationalise as a consistently occurring excused absence. Thus, for this group, it would be expected not only to predict frequency, but also when absenteeism will happen.

Finally the calculative absence is viewed as a coin of exchange (Blau and Boal, 1987; Johns & Nicholson, 1982) in either fulfilling or modifying the implicit social contract between the employee and employer, and as a time allocation strategy for enhancing nonwork outcomes. This type of absence would be operationalised in terms of the employee using a certain number of excused and unexcused absences permitted by the organization, depending on how much the employee felt he or she should modify the implicit social contract. It c o u l d b e p r e d i c t e d that a n extremely apathetic employee (low j o b involvement and organizational commitment) would take full advantage by using both kinds of absence. Thus, the absolute frequency and total number of days absent should be greatest for workers who are the most apathetic. 3.11 ACTIONS TO REDUCE ABSENTEESISM: The industrial society survey found that the top ban most effective ways of managing attendance adopted by the 486 respondents were. 1. Accurate Monitoring 2. Return to work policy 3. Written absence policy 4. Training of line managers 5. Motivation 6. Discipline 57% 50% 50% 37% 37% 36%

7. Communicating absence rates 8. Senior Management commitment 9. Performance appraisal 10. Team working -

33% 26% 21% 27%

Jackson (1994) in study based upon a sample of 550 employees found that the causes of excessive absenteeism were as follows

A. Poor work habits B. Personal C. Dissatisfaction adjustments D. Irresponsibility E. Outside difficulties F. Sickness or fatigue

6% 9% 16 %17% 17% 35%

1.

Mann and Baumgartner (1952) report a study typical of the

University of Michigan Group. They compared the attitudes of high and low absentee rate employees. The investigators found that a more favorable attitude toward supervisor and a more favorable feeling about work associates accompanied lower absentee rates for both blue and white-collar workers. According to their study absenteeism rises as supervising quality decreases 2. Ram In a study of absenteeism of 4 major textile mills in Delhi Centre for industrial relations, the following facts were covering a period of 4 years-1960 to 1963 Made by The Shri revealed.

About 40% of total yearly absences occurred with the permission of management.

About 25% were due to sickness and accidents and were granted by ESI. The remaining 35% were caused by workers unauthorized absenteeism.

CHAPTER-4 RESEARCH METHODOLOGY 4.1 Research Design

A research design is the arrangement of conditions for collection and analysis data in a manner to combine relevance to the researcher purpose with economy in procedure It constitutes the blueprint for the collection, measurement and analysis of data. As such design includes an outline of what the researcher will do form writing the hypothesis and its operational implications to the final analysis of data. As such the design includes an outline of what the researcher will do from writing the hypothesis and its operational implications to the final analysis of data. More explicit, the decisions happen to be in respect of: What is the study about? Why is the study being made? Where will the study be carried out? What type of data is required? Where can the data found? What periods of time will the study include? What will be the sample design? How will the data be analyzed? In what style will the report be prepared? What techniques of data collection will be used?

The Research Design undertaken for the study is Descriptive one. A study, which wants to portray the characteristics of a group or individuals or situation, is known as Descriptive study. It is mostly qualitative in nature. The main objective of Descriptive study is to acquire knowledge. 4.2 Source of Data Data are the raw materials in which marketing research works. The task of data collection begins after research problem has been identified and research design is chalked out. Data collected are classified into primary and secondary data. Primary data In this study, the primary data is collected to understand the main reasons behind the absenteeism of the employee. This is collected using a questionnaire specifically designed for the employees of all levels. Secondary data Secondary data were collected from the companys annual publications, memorandums of settlements, newspapers, journals, websites, and from library books

4.3 Sampling Methodology Research work was conducted by taking a sample of 100

employees of 1300 (excluding apprentice trainees and contract labors). To study the problem clearly numbers of employees from each department were selected on the basis of the size of the department as well as nature of the work. Questionnaires w e r e di s t ri bu te d t o t h e e m pl oy e e s individually and lot of efforts had to be taken to collect the required data from the selected sample of employees representing the population. The questions in the questionnaire are framed on the basis of the factors responsible for absenteeism

4.4 Description of statistical tools used Percentage method Percentage Analysis In this project Percentage method test was used. The percentage method is used to know the accurate percentages of the data we took, it is easy to graph out through the percentages. The following are the formula No of Respondent Percentage of Respondent = Total no. of Respondents Weighted average method: Weighted average can be defined as an average whose x 100

component items are multiplied by certain values (weights) and the aggregate of the products are divided by the total of weights. One of the limitations of simple arithmetic mean is that it gives equal importance to all the items of the distribution. In certain cases relative importance of all the items in the distribution is not the same. Where the importance of the items varies it is essential to allocate weight applied but may vary in different cases. Thus weight age is a number standing for the relative importance of the items.

CHAPTER-5

ANALYSIS AND INTERPRETATION Analysis using simple random sampling Demographic details: AGE OF THE RESPONDENTS Age 20-30 31-40 41-50 Total No of Percentage 79 19 2 100

79 19 2 100

Chart 5.1

20-30

31-40 50

41-

INFERENCE It is inferred that 79% of the employees who participated are in the age group of 20-30, 18% come under the category of 30-40 and only 2% belongs to the category of40-50.

SEX OF THE RESPONDENTS Sex Male Female Total No of Percentage 38 62 100

38 62 100

Chart 5.2 SEX OF THE RESPONDENTS

male 38% female 62%

m INFERENCE It has been inferred that 62% of the employees who participated in the survey are female and the remaining 38% come under male category

MARITAL STATUS OF THE RESPONDENTS Marital status Single Married Divorced Widow(er) Total No of Percentage 64 33 0 3 100

64 33 0 3 100

Chart 5.3 MARITAL STATUS OF THE RESPONDENTS

single

married

Widow

INFERENCE It has been inferred that 64% of the employees who participated in the survey are single and 33% of the respondents are married. Rest of them is categorized under the category of widows.

General causes for employee absenteeism:

Table 5.1

N o 1

Causes

Strongl y agree 15

Agre e 14

Neutr al 44

Disagr ee 10

Strongl y disagre 16

Other source of income

2 3

Higher studies Time for personal activities Health problems Employees commitment

40 41

39 20

17 22

2 14

4 5

12

6 19

48 35

26 23

16 6

Transportation problems

31

34

18

Family responsibilities

11

41

32

Lack of interest

31

23

11

15

12

Chart 5.4 Other source of income

50 45 40 35 30 25 20 15 10 5 0 Strongly agree Agree Neutral Disagree Strongly disagree

INFERENCE It has been inferred that 15% and 16% of the employees absent themselves because of other businesses, since their income is not enough for their family expenses. Whereas among the remaining some are neutral and some strongly disagree to this statement. This clearly shows that very minimum numbers o f p e o p l e a r e engaged in some other business.

Chart 5.5 Higher studies

45 40 35 30 25 20 15 10 5 0 Strongly agree Agree Neutral Disagree Strongly disagree

INFERENCE 40% of the respondents strongly agree that they had to

concentrate in their higher studies which make them to take leave, since most of the employees working in the organisation are fresher, coming under the age group of 20-30 and they just work here to gain some experience.

Chart 5.6

Time for personal activities

45 40 35 30 25 20 15 10 5 0 Strongly Agree Agree Neutral Disagree Strongly disagree

INFERENCE 41% of the respondents strongly agree that they dont get time for their personal activities because of their tight schedule and heavy work which becomes a major factor to make them absent.

Chart 5.7 Health problems leading to absenteeism

60 50 40 30 20 10 0 Strongly agree Agree Neutral Disagree Strongly disagree

INFERENCE Most of the employees disagree to the fact that health problems make them absent from their work and only 6% of them agree that their health gets affected often.

Chart 5.8

Employees commitment towards the work

Strongly agree Agree

Neutral

Disagree

Strongly disagree

INFERENCE This pie chart shows that 23% and 6% percent of the employees disagree and strongly disagree to the fact that their absence doesnt affect the companys output. Anyway this ratio is less because only employees at high level are really feeling committed towards their work.

Chart 5.9 Transportation problem

Strongly agree disagree

Agree

Neutral

Disagree Strongly

INFERENCE

Only 4% and 7% of the employees strongly agree and agree to this statement whereas the remaining are comfortable reaching their workplace since most of the employees recruited were residing close to their workplace and most of them were found to have two wheelers and four wheelers.

Chart 5.10 Work Vs Family responsibilities

Strongly agree disagree

Agree Neutral Disagree

Strongly

INFERENCE 41% and 32% of the employees disagree and strongly disagree that their work life is affected by their family responsibilities this shows that they were able to able their work and family because the company doesnt give any home assignments and projects to the employees.

Chart 5.11

Lack of interest

Strongly agree disagree

Agree

Neutral Disagree

Strongly

INFERENCE 31% and 23% of the employees strongly agree and agree to the statement that they are not into the right job since most of them were engineering and science graduates who were doing the job of diploma holders and typewriters.

Factors responsible for employees absenteeism at the workplace:

Table 5.2

No

Causes

Strongl y agree

Agree

Neutra l

Disagre e

Strongl y disagre 14 3 3 15 10 56 56 12 10 14

1 2 3 4 5 6 7 8 9 10

Employees satisfaction Stress level of the employees Pay scale Loneliness at the workplace Routine work causes Working conditions Welfare measures Shift basisDrawback Lack of motivation Colleagues cooperation

20 58 50 8 12 2 40 28 11

26 22 27 3 41 20 11 5

28 10 15 40 11 34 29 12 10 -

11 5 2 30 21 4 6 8 32 60

Chart 5.12 Employees Satisfaction towards the job

30

25

20

15

10

5 0 Strongly agree Agree Neutral Disagree Strongly disagree

INFERENCE It has been inferred that 20% and 26% 0f the respondents were dissatisfied with their job because most of them felt that they didnt fit in with the task allotted to them and some felt that they were dominated by their higher officials and didnt get any freedom to share their views.

Chart 5.13

Stress level of the employees

70 60 50 40 30 20 10 0 Strongly Agree Agree Neutral Disagree Strongly disagree

INFERENCE Nearly 58% and 22% of the respondents have agreed that their work is heavy and tiresome which causes stress and due to stress they absent themselves to relax. This was found to be the major reason for most of the employees to be absent.

Chart 5.14

Salary and allowances

60 50 40 30 20 10 0 Strongly agree disagree Agree Neutral Disagree Strongly

INFERENCE 50% and 27% of the employees feel that the salary given to them is not satisfactory since their work is stressful and they dont get any performance pay even if they work for overtime. They feel that the work assessed to them is greater and their pay scale is lesser.

Chart 5.15 Loneliness at the workplace

45

40 35 30 25 20 15 10 5 0

Strongly agree

Agree

Neutral

Disagree

Strongly disagree

INFERENCE Only 8% and 3% of the respondents feel lonely at their workplace. This shows that this is a very minor reason for absenteeism in the company. Because, most of the employees were from the same locality and were found to have been college mates or schoolmates.

Chart 5.16 Boredom due to routine work

45 40 35 30 25 20 15 10 5 0

Strongly agree disagree

Agree

Neutral

Disagree

Strongly

INFERENCE 41% agree and 12% strongly agree that the same routine work allotted to them causes boredom towards their work which makes them to absent. This will also lead to lack of interest towards the work.

Chart 5.17

Satisfaction with the existing working condition

60

50

40

30

20

10

Strongly agree disagree

Agree

Neutral

Disagree

Strongly

INFERENCE None of the respondents are dissatisfied with their existing working conditions. This shows that they are satisfied with the infrastructure and atmosphere in which they work.

Chart 5.18

Satisfaction with the welfare measures

60 50 40 30 20 10 0

Strongly agree disagree

Agree

Neutral

Disagree

Strongly

INFERENCE It has been found that only 2% of the employees are

dissatisfied with the welfare measures adopted by the company and the rest of them strongly disagree to this statement.

Chart 5.19

Shift basis - Drawback

45 40 35 30 25 20 15 10 5 0 Strongly agree Agree Neutral Disagree Strongly disagree

INFERENCE 20% and 40% of the respondents agree and strongly agree to that shift basis is a strong reason for their absence. This is because 62% of the respondents who participated in the survey were female, who feel that they are not comfortable with the night shifts.

Chart 5.20 Lack of motivation

Strongly agree

Agree

Neutral

Disagree

Strongly disagree

INFERENCE Only 11% and 28% of the respondents agree and strongly agree that they dont get proper motivation from their superiors, whereas 32% of the employees disagree to this statement.

Chart 5.21 Colleagues Co-operation

Strongly agree Agree

Neutral Disagree

Strongly disagree

INFERENCE Only 11% of are the respondents strongly agree that their

colleagues

not

co- operative, whereas 60% of the

respondents disagree to this fact, so it is evident that this factor doesnt play a major role in absenteeism.

Ranking the general causes using weighted average method:

Table 5.3

N 1 o 2 3 4 5

Causes Other source of income Higher studies Time for personal activities Health problems Employees commitment

Total 299 score 411 379 236 293

Averag e 2.99 4.11 3.79 2.36 2.93

Rank 4 1 2 6 5

Transportation problems

227

2.27

7 8

Family responsibilities Lack of interest

191 322

1.91 3.22

8 3

INFERENCE: From the above table we can infer that the reason of higher studies was ranked first among the other causes, most of the employees also feel that they dont get ample time for their personal activities so it has been ranked second. them expect the right kind of job to be allotted to them. Lack of interest towards the job has been ranked third, since most of

Ranking the workplace factors using weighted average method:

Table 5.4

No 1 2 3 4 5 6 7 8 9 10

Causes Employees satisfaction Stress level of the employees Pay scale Loneliness at the workplace Routine work causes boredom Working conditions Welfare measures Shift basis- Drawback Lack of motivation Colleagues cooperation

Total 324 score 421 410 247 309 166 165 344 288 209

Averag e 3.24 4.21 4.10 2.47 3.09 1.66 1.65 3.44 2.88 2.09

Rank 4 1 2 7 5 9 10 3 6 8

INFERENCE The first main workplace factor was found to be the stress level of the employees. It was also found that most of the employees were not satisfied with their pay scale. Therefore it has been ranked second. Shift basis was also found be the third main reason for the employees absenteeism in this company.

CHAPTER-6 6.1 FINDINGS General factors responsible for absenteeism: Since most of the employees are working in a temporary basis

and pursuing their studies, they tend to be absent to a greater extent. Lack of time for recreation and personal needs due to work pressure encourage them to take leave. Lack of interest towards the job due to over qualification and mismatch of the job makes them to be absent. Work life factors responsible for absenteeism: Employees experience a higher level of stress since their work is heavy and tiresome, which makes them to be absent. Most of them feel that they are underpaid because they feel that for the same qualification other companies give them better compensation. The female employees dont feel comfortable with all the shifts, mainly the night shifts.

6.2 SUGGESTIONS: The company itself should provide support and back-up to its employees by having tie-up with educational o rg a n is a t io ns and conducting training programme and seminars once in a while. The company can help the employees have get together or peer

groups at the end of every month The people who are overqualified and not suitable for that particular job should not be recruited. The company should allot some time for entertainment in addition to the lunch break and it was found that most of the employees needed a break at least for alternate Saturdays. The company can conduct performance appraisal once in 2 months. It can give overtime incentive for people who work for the organisation in Saturdays. It should also revise and increase the pay scale based on the profits of the company.

CHAPTER 7 FACTORS AFFECTING ATTRITION AND STRATEGIES OF RETENTION Why Do People leave Jobs?

There are various factors that affect an individuals decision to leave a job. While an employees leaving the job is considered attrition by one organization, it is looked at as talent acquisition by the new organization and to the individual it means a career move, economic

growth and enhanced quality of life/convenience or closeness to family etc. Hence, what is a problem for one may be an opportunity for another.

This short note examines the key reasons for attrition and explores what enhances retention as well as outlines some of the factors that can control attrition. It also touches up those factors that are beyond ones control.

Factors Affecting Attrition and Retention

There are various reasons why people leave their current job. These reasons may vary from individual to individual and when data are collected from a large number of individuals leaving or who have left an organization, some consistencies may be observed-providing more insights as to why people leave in large numbers. If these are controllable-one attempts to control. If these are not within the control of the organization, the organization should prepare itself for managing attrition.

Managing attrition does not mean reducing attrition only. It could also mean bringing down the negative affects of attrition and increasing the positive affects of attrition. To increase the positive effects of attrition and reduce the negative affects, appropriate retention and capacity utilization or talent utilization tactics should be used. In one of the organizations, attrition has been used as brand building opportunity. Thus an organization may say that we provide talent for other companies or they may say that if you join us your brand value goes up and you get good jobs etc.

Today when a person leaves it causes a lot of disturbances in the organization. If it is a small organization the disturbance is even greater. Hence it is important to understand and manage attrition. There can be various reasons for people leaving their current jobs. Some of these include:

FACTORS AFFECTING ATTRITION FACTORS AFFECTING ATTRITION

INDIVIDUAL

ORGANISATIONAL

OTHERS

Ambitions/Caree r aspirations Parental/Family mobility Personality factors

Role Related
No challenge No learning Style of boss Role clarity Role stress

Culture Growth and career paths Pay packets

Peer pressure Environme nt

Lack of independence

Ambitions or Career Aspirations: It is but natural in a growing society and growing economy that employees at all levels aspire to build their career. There are economic aspirations, professional aspirations, family aspirations and all kinds of aspirations and ambitions that affect a persons desire to move. It is rare not to have such career aspirations. In the past, organizations grew at a pace and stability and individuals mostly saw their career in the current organization and stuck to the same. Now a days either organizations dont grow at the pace at which the individual career aspirations grow or other organizations grow at a pace that matches the individual

causing individuals to move. When you treat all the world as a large space for growth and building a career, it is futile for any organization to all the time compete with the rest of the world and try to provide careers for all the employees at the same pace at which the entire world or the best of the organizations in the world is moving. It is better to appreciate the growth and mobility and movement of the mind and take attrition as a natural phenomenon than to be agitated about it and have sleepless nights. However, if the organization can do something to create new opportunities, that meet the growing aspirations of competent people, it should certainly be attempted. However, such attempts require correct diagnosis of the situation.

Comparisons and Equity Considerations: Comparisons with peers or classmates from the same college, batch, age group, organization, first job, city, etc. there are numerous dimensions on which similarities can be picked up and compared. Individuals today are flooded with such comparisons. Business magazines, compensation surveys by consultants and MNC companies have only aggravated this situation and enhanced comparisons. Organizations in their zeal to compete with one another in the market places commission such compensation surveys and further fuel the situation instead of controlling it. Unfortunately some of these organizations have to suffer the consequence of what they have created in their hay days.

Parental and family mobility; Some times the desire to be with the closed ones also push the person to move. Although we have largely moved away from the joint family concept, there are still strong affiliations and affections. Need for being close with the family, spouse, children, parents etc. at different stages of ones life to fulfill different types of affiliation needs prompt a few people to leave their jobs and move from one city to another.

Personality factors: Some people have a high need for variety. They get bored and fatigued easily. They need to change their job or what they are doing at periodic intervals. Other wise they are restless and create morale problems with others working with them. They waste others time discussing organizational politics and polluting the atmosphere. Some people are constantly searching and seeking. They are highly ambitious and restless. They are highly achievement driven

and want to achieve new heights in the shortest time. They have either been socialized so or fulfill their own power or other motives. Some may have a different motivation or value profile which may not be matched by the current job or the company and hence the decision to leave.

Job related factors: The job related factors that cause the decision to leave are many these include the following: 1. 2. 3. 4. 5. 6. 7. 8. 9. Inability to use ones competencies Lack of challenge Boss and his styles Lack of scope for growth in terms of position salary, status and other factors Role clarity Job Stress or role stress or role stagnation Lack of independence or freedom and autonomy Lack of learning opportunities Lack of excitement and innovation, novelty etc. in the job

These factors may be intrinsic and job related or extrinsic and job related or job chemistry related. Intrinsic factors are the factors related to the characteristic of the job. These are in plenty in BPOs where the work conditions (night work, work at odd hours, the nature of clients to deal with, etc) pose difficulties. Extrinsic factors are factors like role clarity, independence and autonomy, bad boss, wrong chemistry of the team, work conditions that can be changed easily, lack of respect shown to the individuals, etc. A large number of the extrinsic factors can be controlled.

Economic Factors: this deal with the aspirations in relation to salary and perks, housing, quality of living, need for savings etc.

In addition to these there could be many other factors that affect decisions: Mobility of partner

 Fatigue Family reasons like having to look after old parents Factors affecting Individual decision to leave:

The factors can be classified as the following: 1. 2. 3. 4. 5. Individual related factors Role or job related factors Organization related factors Professional factors Societal factors including Peer pressure factors and socioeconomic environment related factors

Some of the Potential methods of managing retention and employee engagement or skill utilization include the following:

First Find the Source of Attrition- where and why?

Any method of controlling attrition or increasing retention should be based on a good understanding of the factors leading to attrition. The factors may be some times very simple and could be reveled by an examination of the statistical data. The statistical data could answer simple questions like the following:

Where is the attrition occurring?

Is it more in males than females? What levels? Is there anything in common among those who leave? Is it related to some disciplines or people from a particular region or linguistic group? Is it more among candidates from certain colleges or institutions? Age groups? Etc. Simple demographic analysis among those who leave could reveal some insights.

Once the source/cause of attrition is identified, solving the problem becomes relatively easy. At least the organization can then determine if any internal interventions will help reduce attrition. Some of the possible interventions that could help in enhancing retention are as follows:

Compensation, Financial restructuring and New Incentive schemes- including Salary and perks restructuring, ESOPs, PLPs, etc. ILFS introduced a new Performance Linked pay in mid nineties to manage retention at all levels. In this system all employees received a performance linked pay at the end of the year depending on the company performance (financial), departmental performance and individual performance. Combining all the three performance parameters it was possible to get as much as a years salary or more as PLP depending on the financial performance of the company. Introducing small recognition schemes may go a long way.

Loyalty pay is a good mechanism of retaining the employee. In the loyalty pay the individual gets his share of the performance linked pay or enhanced incentive pay proportionate to his stay. For example in the ILFS case only a part of the PLP was given at the end of the first year and the remaining part is given proportionately at the end of the second and third years. Organizations use most of the time compensation surveys and hike up the salaries. The tendency to use Golden handcuffs with deferred compensation, investment options etc. are useful. However in a competitive world often they artificially hike up the salaries as the recruiters also work out mechanisms of buying out such handcuffed people at any cost. Hot skills premium is paid by some companies for those who have crucial skills in short supply. They premium can be removed as the skill availability increases or the need goes down.

ESS and OC interventions: Organizational climate and employee satisfaction surveys help in indicating the factors affecting attrition and help organizations take corrective action. In the case of one manufacturing company a climate survey revealed the lack of schooling facilities, commuting facilities to a nearby town; schooling facilities could improve the tenure of its employees. In another study the technological innovations were found to create tension and resulting is decisions to leave in fresh and junior levels of management. Such climate schemes may indicate small things like organizational communications, social get together and celebrations could inculcate a sense of identity and belonging ness and enhance the we feeling and thereby retention. Climate surveys also indicate those aspects of the personnel policies that need to be revamped for enhancing retention. In one company such a survey indicated that too much of differentiation and discrimination between the workmen and officers in terms of the canteen food, leave facilities and other work conditions reduced the resentment to management an enhanced commitment to the company. The attrition was more psychological than physical in this company. Psychological attrition and retirement are particular problems in Indian PSUs.

It is interesting to have such a program in an organization where the jobs are contractual. In a development organization it is considered all the more essential to have motivated staff all the time.

Celebrations and Social and cultural Networks: By encouraging employees to have picnics, social gatherings, celebrations and festivals etc. we encourage some amount of social networking and sense of belonging ness. Tata and Birla group of companies are known for doing these in their own ways. Some of these organizations have created a sense of belongingness through their clubs, cultural forums and group celebrations and activities. When the person and is family feel at home with a company and have developed a social network retention goes up. Loyalty to colleagues can be thus made a significant retention force. New forums and methods need to be thought of to suit the requirements and chemistry of a given group. Thus in one case there may be an investment club, in another Golf Club, and a third cooperative society a fourth a charitable group to assist local community and so on.

Assimilation and Integration Studies have linked the retention capacity of a firm to the induction and assimilation process. The new Economy industry and the need to be competitive require that the person needs to be indicted into the company even before he/she joins it. If the new employee joining at the top level joins the organization with full understanding of the culture, and the role he is supposed to handle a lot of employee turn over can be contained.

According to studies in the US while firms go to great lengths to hire new employees, only 20% of them stay two years. Nearly 70% of the newly hired seniors leave within two years .There is only a 50% chance that when some one takes up a new job he will be with the company for more than two years. In a 3 month period in the year 2000 alone 350 CEOs in the US let their jobs. According to a HBR article (2000, issue 78) 80% of a pool of executives changed their jobs within two years. Another study reports that 47% of executives appointed as presidents left within four years. In a study of 359

positions listed in resumes it was found that 68% left their previous jobs within twelve months. (Smart, 1999)

Bradford Smart (1999) estimates that the cost of mis-hires are perhaps.. 40 times base cost at top levels. When you consider recruiting, actual compensation expenditures, severance, and additional cost of lost productivity, the time it takes for some one to become productive, business mistakes and missed opportunities etc. Research by Sibson & Co in four high turn over four high turn over industries found that replacement costs have reduced the earnings and stock process by an average of 38%. The estimated cost of replacement has to be multiplied at least three fold for every top leader who does not make it failed or left the origination)

Effects of losing a leader ripple through out the organization. Loss affects the organization's competitive position due to leadership vacuum Triggers turnover at other levels Creates loss of developmental and intellectual resources Disrupts and weakens customer relationships Employee turnover has a significant effect on companies bottom-line by inhibiting their ability to keep current customers, acquire new ones, increase productivity, and pursue growth opportunities

People dont quit companies. They quit bosses. Numerous studies have indicated the correlation between job satisfaction and direct supervisors and managers. According to new study 41% of high value employees who intend to leave their jobs are dissatisfied with their managers or supervisors. Gallup of 2 million employees form 700 companies indicated that strong links between employee tenure and employee-supervisor relationships.

When a new leader joins the team they join three types: Functional team they lead

Executive team they collaborate with including the senior leaders Project related cross functional teams When leader turnover is high the working alliances across the organization are not in place long enough to embed any changes that are introduced

The purpose of induction and assimilation therefore is to ensure that leaders will adapt and become full contributors in the new organization faster, better and with fewer destabilizing effects to the individual and the organization. A successful assimilation is one in which both the individual and the organization are transformed for the better and are able to leverage each others strengths to achieve mutually beneficial goals. The individual and the organization need to treat together for this purpose.

Assimilation of new leaders occurs in four stages: It begins with point of hire and completes when the individual is a full contributor and no longer an outsider. The assimilation journey is a continuous negotiation between the two extremes and they need To be balanced. The balance needs to be between:

Being patient and becoming productive Setting ones own pace versus following organizations pace Trusting intuition versus making data based decisions Pleasing various stake holders versus meeting ones own priorities Implementing change versus respecting the culture of the organization Demonstrating competence versus seeking advice when one needs it Building relationships based on trust versus testing assumptions about others Intervening appropriately versus waiting until you have all information Drawing on the past versus not letting the past bind you

Acting with authority versus staying in learning ode Not leading ego versus staying with confidence Making your position clear versus seeking feedback Affiliating with people versus maintaining boundaries

The HR Departments as well as the top management and other line manager have a responsibility to ensure that the managers indicted at the top levels assimilate the culture, role and other things of the company fast and manages the contradictions mentioned above. This will only ensure that the retention is higher and top management recruited newly into the firm give their best and high ROI.

Assimilation is both fluid and dynamic. It can be influenced by different factors at different points of time of the organizational life cycle. New leaders are most likely to leave when they lack support they need to their best work. Attrition is usually the result of not being able to contribute what they were hired to make. They are most likely to stay if they feel a deep commitment and affiliation to an organization.

Effective assimilation strategy: Acknowledges difficulties of entry into a new organizations Legitimizes and individuals adjustment period Builds in multifaceted supporting mechanisms an institutional level (peer support, tips on bridging organizational knowledge, and learning gaps) to asset the new leader through the process

Assimilation savvy organizations should: Focus on assimilation as a tool for retention and leaderships strategy Have a formal system and program of assimilation Use coaches for assimilation Use HR for assimilation process

People join an industry that is perceived as leader but stay only if they meet intellectual and emotional needs.

Coaching services: With increased competition and scope for career enhancement the world of executives is becoming a busy world. It is a world of work pressures, competition. Organizations pay more and put pressures on employees to perform as they need to get their ROI on CTC. The young manager is busy proving to his company that he can make a difference and serves what he is being paid. There is no time for family and self. This is resulting in increased stress and frustration. The world is becoming some times and for some people most of the time lonely world. In such a situation making available mentors, coaches and guides will go a long way in helping the individuals get the right type of counseling and advice. Such advise with a group of mentors and experienced counselors could go a long way in helping employee get realistic picture of what he is likely to get or dont get from the change he makes.

Employee Engagement: The best way to retain is to provide work motivation. Challenge, job satisfaction, treating the employee with significance, being sensitive to his needs, making the organization predictable with systems and practices that are not bent or changed to accommodate any individual at any time etc. may help retention. Using task forces could be constituted to examine the sources of attrition. When employees are adequately engaged and care is taken to see that they enjoy their job ad their families are taken good care of and adequate social and financial security is provided retention goes up on its own. There is no substitute for an engaging company with a secure and protective atmosphere. The engagement should come from challenge. There are many examples of HR practices that have been found to engage employees. Providing periodic training, learning opportunities, freedom and autonomy at the work place, recognition of contributions, supportive boss, recognition of contributions etc. will make a lot of difference in enhancing retention rates.

Market Driven Approach: Prudential introduced a building management capability program which integrates recruitment, retention and training efforts. The program is anchored by a

sophisticated planning model that enables business managers to develop highly targeted retention programs that create cost-effective contingency plans for filling potential gaps in skills. Prudential has begun to assess how long the organization would like the employees to stay on board. They decide those whom the company wants to have indefinitely, those who should be there for a shorter period and those on whom retention investments dont make any sense. Then they use a number of mechanisms depending on the categories of employees. They tailor the programs for the retention requirements rather than employing them across the board (Cappelli, 2000)

Job Design and OB Customization: This method involves assessment of which tasks to be included in what jobs. For example the united parcel service mentioned earlier redesigned the job of drivers by separating the loading job from that of the drivers. Though it increased the turnover of the loaders it decreased the turn over of drivers which are considered an important role. The loaders could be replaced with ease. Designing the jobs for specified periods of time is another way of managing retention. If a person is appointed for a period of three years and the organization is prepared for the same and the employee is also prepared part of the issues resolved. CARE India and many other international NGOs use this approach. In customization programs the employees are given scope to define their job after an assessment of their skills and interests. Key employees might undertake a formal self-assessment of their work and non-work goals and how those goals could best be achieved in the context of company; operations. The assessments would form the basis for individual employment agreements, which might be created using cafeteria-style programs similar to those in allocating employee benefits (Cappelli, 2000 p 107).

Change of Styles through 360 Degree Feedback and Internal Customer satisfaction Surveys: Some times the style of manager may be responsible for employees in certain departments to leave. With supportive managers and Head of departments employees think several times before they leave. Some managers may not realize that their coercive style, excessive task centeredness, and the way they assign tasks including the clarity with which they give instructions, respect etc to employees have tremendous impact on their staying with the company. By recognizing the roles they play and the styles

they exhibit and seeing the impact they are making senior managers can at least reduce the push factors for attrition. There are several cases of Senior Managers realizing the impact of their style in the 360 degree Feedback programs conducted by TVRLS.

Other Methods:

Start with recruitment. Dont recruit those people who will be the most difficult to retain. Pay attention to this aspect from recruitment stage itself. Adapt to Attrition. Attrition is the order of the day. Market forces are too strong. Focus on what you can change. Dont focus on what you cant change and lose your sleep. Some times you dont have to recruit all high powered staff. In the olden days some of the business houses did not go to business schools where the graduates are expensive and are job-hoppers. These included a highly rated business schools. They recruited from the less popular business schools and found them to contribute a lot and stay loyal.

Simplify and standardize jobs and use multi-skills to help meet any contingencies. Focus on retaining intellectual capital even when employees leave. Think of appropriate mechanisms and build organizational memories and knowledge systems to retain talent and intellectual capital. Teamwork task forces and standardized systems help. IT support helps. Electronic records of employee knowledge helps in many cases.

Cooperate with competitors. Form clubs and associations. Work with local schools and communities and develop a large source of skill base by giving projects and grants to local colleges.

CHAPTER 8

ATTRITION RATE CALCULATION

(The formula and correct logic behind calculation of ATTRITION RATE)

((no. Of attritions x 100) / (Actual Employees + New Joined)) / 100.

Examples:

1) Actual Employees Employees (Opening BAL) (Current Headcount) 150 155

No. Of people left (Attritions) 20

No. Of Joined

Total

25

So according to the formula: ((20 x 100) / (150 + 25)) / 100

Which comes to 0.1142 i.e. 11%

Now as you had 150 previously and now 25 joined so it makes 150 + 25 =175

Now if you calculate 11.42% of 175 i.e. 175 x 0.1142 = 20

CHAPTER-9

9.1 CONCLUSION First Advantage Pvt. Ltd should be very cautious while recruiting the employees. The company should not solely concentrate in getting the work done by the employees; it should also give its employees some time for fun and entertainment. Since this is a fast developing company here in India, it has to look after that its employees are satisfied with salary and compensation given to them. The company can try adopting the suggestions given above to reduce absenteeism in the company. Since most if the employees working here are coming under the age group of 20-30, they will like to socialize in their weekends with their friends or family, so the company can free them in their Saturdays.

9.2 BIBILIOGRAPHY

Aswathappa, Management, limited.

Human Tata

Resource

and

Personnel

MC GRAW- Hill Publishing Company

Paneerselvam.R., Research Methodology Methods and Techniques, Second Edition. Likert Rensis, The Human Organisation published by Mc Graw Hill Book Company Limited. Flippo Edwin B Personnel Management published by Mc Graw Hill Book Company Limited. Tripathi P C Human Resource Development published by Sultan Chand &Sons, Educational Publishers. Tapomoy D e b Strategic A p p r o a c h e s t o H u m a n R e s o u r c e M a n a g e m e n t published by Atlantic publisher. Dwivedi R . S ., H u m a n behavior, ltd., New Delhi. relations and organizational

5th edition, publisher by Beri fore Macmillan India

Biswajeet pattanayak, Human resources management, second edition, published by prentice Hall of India Private Ltd., New Delhi. Lewis R. Gomez-Mejia, David B. Balkin, Robert L. Cardy,

Managing human resources,Third edition, published by rajiv Beri fore Macmillan India ltd., New Delhi.

Websites:

http://www.citehr.com/register.php?do=signup

http://www.managementparadise.com/forums/archive/index.php/t 13788.html

http://www.sciencedirect.com/

http://www.absenteeism.com/

http://www.wikipedia.com/

http://www.integra-india.com/

http://www.scribd.com/

http://www.oppapers.com/

ANEXXURE

QUESTIONNAIRE: A Study on Employee Absenteeism with reference to First Advantage Pvt. Ltd, India Name: Age a.) 20-30 Sex a.) Male Marital Status a.) Single General factors: 1. I have some other source of income which prompts me to take b.) Married c.) Divorced d.) Widow(er) b.) Female b.) 31-40 c.) 41-50

leave a.)Strongly agree b.)Agree disagree 2. I concentrate more on my higher studies when compared to c.) Neutral d.) Disagree e.) Strongly

my work a.) Strongly agree b.)Agree e.) Strongly disagree c.) Neutral d.) Disagree

3.

I am not into the job assigned to me and I am seeking for the

appropriate job a.) Strongly agree b.)Agree e.) Strongly disagree 4. I dont get enough time to spend with my family b.) Agree e.) Strongly disagree 5. I feel that sickness makes me absent from work often b.) Agree c.) Neutral d.) Disagree c.) Neutral d.) Disagree c.) Neutral d.) Disagree

a.) Strongly agree

a.) Strongly agree

e.) Strongly disagree 6. I feel that my worklife is affected by the family responsibilities b.) Agree c.) Neutral d.) Disagree

a.) Strongly agree

e.) Strongly disagree 7. I feel that my absence doesnt affect the companys output b.) Agree c.) Neutral d.) Disagree

a.) Strongly agree

e.) Strongly disagree 8. I do absent myself often because of transportation problems b.) Agree c.) Neutral d.) Disagree

a.) Strongly agree

e.) Strongly disagree

Worklife factors: 1. I am not satisfied with my works a.) Strongly agree b.)Agree c.) Neutral d.)Disagree

e) Strongly disagree 2. Stress is a part of my work life a.) Strongly agree b.) Agree c.) Neutral d.) Disagree

e.) Strongly disagree 3. I am not satisfied with the salary and allowances a.) Strongly agree b.) Agree c.) Neutral d.) Disagree

e.) Strongly disagree 4. I feel lonely while working with others (in your workplace) a.) Strongly agree b.)Agree c.) Neutral d.) Disagree

e.) Strongly disagree 5. I feel bored with the same routine work a.) Strongly agree b.)Agree c.) Neutral d.)Disagree

e.)Strongly disagree

6. I dont feel satisfied with the existing working condition a.) Strongly agree b.) Agree c.)Neutral d.) Disagree

e.) Strongly disagree 7. I am not satisfied with the welfare measures adopted by the company a.) Strongly agree b.) Agree c.)Neutral d.) Disagree

e.) Strongly disagree 8. Shift basis is a stumbling block for my regularity a.) Strongly agree b.) Agree c.) Neutral d) Disagree

e.) Strongly disagree 9. I dont get proper motivation from my superiors a.) Strongly agree b.) Agree c.) Neutral d.) Disagree

e.) Strongly disagree 10. I am not getting sufficient co-operation from my colleagues a.) Strongly agree b.) Agree c.) Neutral d.) Disagree

e.) Strongly disagree

Any other reasons, for your absence, please specify Any suggestions to reduce absenteeism in your company .