attrition exit new

7/31/2019 Attrition Exit New

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What is attrition ???.....

Human resources are the only source of long term competitive advantage for any

business organization. It plays a key role in helping companies deal with a fast-changing

competitive environment. According to Wayne F Cascio, people are a major component

of any business and the management of people is a major part of every managers job. It

is also the specialized responsibility of the HR department. Thus Human Resource

Management (HRM) is the strategic and coherent approach to the management of an

organizations most valued assets. Human Resource Management involves five major

areas: staffing, retention, development, adjustment and managing change. Together they

compose the HRM system, for they describe a network of interrelated components1.

However, rising business competition has led to high attrition rates in many sectors and

retaining the employees is proving to be a herculean task for most organizations in the

modern era of globalization and competitive business.

Attrition is a normal and uncontrollable reduction in the

workforce because of constant stress, retirement, death, sickness and

relocation. In simple words, attrition refers to the number or rate at which the

people leave an organization. It is one method of reducing the size of workforce

without management taking any overt actions. The drawback to reduction by attrition is

that reductions are often unpredictable and can leave gaps in an organization. Attrition is

one of the biggest challenges and it represents significant costs to most organizations. A

high attrition reflects poorly on an organizations ability to hold on to its people. The

toughest concern for an HR manager is the high attrition rate.

Attrition level can also be more, due to rigid and unpopular HR policies pursued by the

corporate. All companies are working day and night to find out a long-term solution of

this complex issue.

The study of attrition is very important because the excess of it tells about the

productivity of the organization. It is obviously difficult for any organization to operate

smoothly and to attain its objectives if employees leave the organization. Level of

attrition beyond the normal range in any organization can have a direct impact on that

organizations effectiveness and efficiency. Most employees leave their work for reasons


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other than money; they want more meaning in their work. Employees seek opportunities

that allow them to use and develop their skills. They often indicate that they want to usetheir qualities and skills in challenging proper working teamwork led by capable leaders.

There are numerous reasons which may drive an employee to quit. Some of them are:

career opportunities, environment, psychological satisfaction, unfair practices in

organization, stress job & person mismatch etc. Among management-level employees,

the key attrition drivers are such as opportunities for management, ability of top

management, use of skills and abilities and work/family balance. For professional level

employees, the key attrition drivers are concern about coaching and counseling from

ones supervisor, clear sense of direction from the company and chance to do interesting

and challenging work. Among clerical level employees, the key attrition drivers are

concern about type of work, use of skills and abilities and opportunity to learn new skills.

Definition of Attrition:

A reduction in the number of employees through retirement, resignation

or death is called Attrition. Attrition is also called total turnover or

wastage rate.

Definition of Attrition Rate:

The rate of shrinkage in size or number of employees is known as Attrition rate. It is usually expressed in percentage.

Types of Attrition

Attrition is not bad always if it happens in a controlled manner. Some attrition is always

desirable and necessary for organizational growth and development. The only concern is

how organizations differentiate good attrition from bad attrition.

Good Attrition-

Less productive employees voluntarily leaving the organization. This means if the one


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who have left the organization fall in the category of low performers, the attrition in

considered being healthy or good attrition.

Attrition rates can be beneficial in some ways:- When certain employees leave, whose continuation of service would havenegatively impacted productivity and profitability of the company, the company is

benefited.

If all employees stay in the same organization for a very long time, most of themwill be at the top of their pay scale which will result in excessive manpower costs.

New employees bring new ideas, approaches, abilities & attitudes which can keepthe organization from becoming stagnant.

Desirable attrition also includes termination of employees with whom theorganization does not want to continue a relationship. It benefits the organization

in the following ways:

o It removes bottleneck in the progress of the company

o It creates space for the entry of new talents

o It assists in evolving high performance teams

o Business pressures do not allow the management to over-reward the

performers, but when undesirable employees leave the company, the good

employees can be given the share that they deserve.

Bad Attrition: -

In the performance analysis of the ones who have left, if the proportion of high

performers leaving is higher, the attrition is bad attrition. Attrition in any formmeans that a wrong choice was made at the beginning while recruiting. Even good

attrition indicates loss as recruitment is a time consuming and costly affair.

In addition to the above two types, there are-

Market Driven Attrition


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Based on the demand for a particular skill- The typical initial reaction by

to market driven attrition is to increase wages, offer better benefits, escape the market byrelocation or site migration or relax hiring standards.

Workload or Stress Driven Attrition -

On the actual capacity to perform the work required. This is when there are not

enough of the right people.

Process Driven Attrition

Variables associated with job design and/or the organization. In some industries

and organizations there is a belief that attrition has always been there and rigidprocess is also responsible.

Causes of Attrition

Employees do not leave an organization without any significant reason. There are certain

circumstances that lead to their leaving the organization. Among management-level

employees, the key attrition drivers are such as opportunities for management, ability of

top management, use of skills and abilities and work/family balance. For professional

level employees, the key attrition drivers are concern about coaching and counseling

from ones supervisor, clear sense of direction from the company and chance to do

interesting and challenging work. Among clerical level employees, the key attrition

drivers are concern about type of work, use of skills and abilities and opportunity to learn

new skills.

Higher Pay:The most obvious reason for employees leaving any organization is higher salaries

offered by other Organization with better job opportunity.

Job or work place is not what they expected:


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Sometimes the job responsibilities dont come out

to be the same as expected by the candidates. Unexpected job responsibilities lead to

job dissatisfaction.

Job & person mismatch: A candidate may be fit to do a certain type of job which

matches his personality. If he is given a job which mismatches his personality, then he

want be able to perform it well and will try to find out reasons to leave the job.

Less growth opportunities:

No or less learning and growth opportunities in the current job will make candidates

job and career stagnant. Only 20% of employees are able to go to senior levels. The

remaining 80% of employees look for other organization where they can get

opportunities for growth.

Lack of appreciation-

If the work is not appreciated by the supervisor, the employee feels de-motivated and

loses interest in job.

Lack of trust and support in coworkers, seniors and management:

Trust is the most important factor that is required for an individual to stay in the job.

Non-supportive coworkers, seniors and management can make office environment

unfriendly and difficult to work in. When employees are happy with their superiors

they choose to stay, if not they look for a switch.

Stress from overwork and work life imbalance:

Job stress can lead to work life imbalance which ultimately many times lead to

employee leaving the organization. If employees feel stressed out due to the workload

trusted on them they tend to look for a change. The major stress factors are: -

Work Timings

Repetitive Nature of WorkWork Load & Pressure to PerformIrritative CustomersTravel TimeLong Working HoursInsufficient BreaksHealth Issues


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Compensation:

Better compensation packages being offered by other companies may attractemployees towards themselves.

New Job Offer;An attractive job offer which an employee thinks is good for him with respect to

job responsibility, compensation, growth and learning etc. can lead an employee to

leave the organization.

Plans for further studies: These days, in many organizations, employees are joiningat very young age because of lucrative salaries being offered. But with time, they

apply for higher education and try to move on to other organizations or sectors to

occupy top positions.

Women Workers:The percentage of women workers is very high, around 30%. Generally, women

workers leave the organization after marriage to take up their house-hold duties,

irregular work hours et al. Even when someone relocates with their spouse orpartner, it comes outside the control of any employer.

Calculating Cost of Attrition

Costs are often broadly categorized as follows:

Recruiting and hiring costs

The cost of advertisements; agency costs; employee referral costs; internet

posting costs.

The cost of the internal recruiter's time to understand the position

requirements, develop and implement a sourcing strategy, review

candidates backgrounds, prepare for interviews, conduct interviews,

prepare candidate assessments, conduct reference checks, make the

employment offer and notify unsuccessful candidates. This can range from

a minimum of 30 hours to over 100 hours per position.

Calculate the cost of the various candidate pre-employment tests to help

assess candidates' skills, abilities, aptitude, attitude, values and behaviors.


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Training and orientation costs

Calculate the cost of orientation in terms of the new person's salary and thecost of the person who conducts the orientation. Also include the cost of

orientation materials.

Calculate the cost of departmental training as the actual development anddelivery cost plus the cost of the salary of the new employee. Note that the

cost will be significantly higher for some positions such as sales

representatives and call center agents who require 4 - 6 weeks or more of

classroom training.

Calculate the cost of the person(s) who conduct the training.

Calculate the cost of various training materials needed including companyor product manuals, computer or other technology equipment used in the

delivery of training.

Lost Productivity Costs As the new employee is learning the new job, thecompany policies and practices, etc. they are not fully productive. Use the

following guidelines to calculate the cost of this lost productivity:

Upon completion of whatever training is provided, the employee iscontributing at a 25% productivity level for the first 2 - 4 weeks. The

cost therefore is 75% of the new employees full salary during thattime period.

During weeks 5 - 12, the employee is contributing at a 50%productivity level. The cost is therefore 50% of full salary during that

time period.

During weeks 13 - 20, the employee is contributing at a 75%productivity level. The cost is therefore 25% of full salary during that

time period.

Calculate the cost of mistakes the new employee makes during thiselongated indoctrination period.

New Hire Costs

Calculate the cost of bring the new person on board including the cost to put theperson on the payroll, computer and security passwords and identification cards,


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telephone hookups, cost of establishing email accounts, or leasing other equipment such

as cell phones, automobiles.

Calculate the cost of a manager's time spent developing trust and buildingconfidence in the new employee's work.

Lost Sales Costs

Calculate the revenue per employee by dividing total company revenue by theaverage number of employees in a given year. Whether an employee contributes directly

or indirectly to the generation of revenue, their purpose is to provide some defined set of

responsibilities that are necessary to the generation of revenue. Calculate the lostrevenue by multiplying the number of weeks the position is vacant by the average

weekly revenue per employee. Reduced loyalty and outright defections to competitors.It is clear that there are massive costs associated with attrition or turnover and, while

some of these are not visible to the management reporting or budget system, they are

none the less real.

The approach to calculate attrition might vary from organization to organization. While a

few techniques are common, there are no proven theories. The most commonly used

formulae are:

Total Number of Resigns per month (Whether voluntary or forced) X

100

--------------------------------------------------------------------------------------------------------

(Total Number of employees at the beginning of the month+ total number of

new joiners - total number of

resignations)

Total Terminations in a month

-------------------------------------------------------------------------------------------------------

(Total Head Count at the beginning of the month) + (Total New

Hires)


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Total No. of employee left X 100 ----------------------------------------------------------------------------------------------------

---

Total No .Of employees present

Number of employee separations-involuntary separations X 100

------------------------------------------------------------------------------------------------------

*Average employee count

(*Avg. employee count = January month strength + December month strength)

Types of attrition calculation

Fresher attrition:

The number of freshers who left within one year. It tells you how many

are using the company as a springboard.

Infant mortality:

Percentage of people who left within one year. This indicates the ease

with which people adapt to the company.

Critical resource attrition:

Key men exit.

Low performance attrition:

Those who left due to poor performance.

Impact of Attrition


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Attrition normally brings decreased productivity. People leave causing others to work

harder. This contributes to more attrition, which contributes to increasing costs, lower

revenue. This often forces additional cost reductions and austerity measures on an

organization. This in turn makes working more difficult, causing the best performers with

the most external opportunities, to leave.

Direct impact:

A high attrition indicates the failure on the companys ability to set effective HR

priorities. Clients and business get affected and the companys internal strengths

and weaknesses get highlighted. New hires need to be constantly added, further

costs in training them, getting them aligned to the company culture, etc.,all a

challenge.

Indirect impact:

Difficulty in the company in retaining remaining employees. Problem for the

company in attracting potential employees. Typically, high attrition also leads to a

chronic or systemic cycleattrition brings decreased productivity, people leave

causing others to work harder and this contributes to more attrition. All this has a

significant impact on the companys strength in managing their business in a

competitive environment.

Need to Curb Employee Turnover / Attrition

There are massive costs associated with attrition or turnover and, while some of these are

not visible to the management reporting or budget system, they are none the less real. The

attrition rate is an indicator of many things intrinsic to the organization, and revealing it

may affect it negatively. Attrition figure has direct impact on stock markets, employee

morale and customer confidence. There is too much at stake. Now is it just to reduce the

turnover costs? Its not only the cost incurred by a company that emphasizes the need of

curbing employee turnover rates but also the need to retain talented employees from

getting poached


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This curbing in turn will benefit the organization in the following way:

The Cost of TurnoverThe cost of employee turnover adds hundreds of thousands of money to a

companys expenses. While it is difficult to fully calculate the cost of turnover

(including hiring costs, training costs and productivity loss), industry experts often

quote 25% of the average employee salary as a conservative estimate.

Loss of company KnowledgeWhen an employee leaves, he takes with him valuable knowledge about the

company, customers, current projects and past history (sometimes to competitors).

Often much time and money has been spent on the employee in expectation of afuture return. When the employee leaves, the investment is not realized.

Interruption of customer ServiceWhen an employee leaves, he takes with him valuable knowledge about the

company, customers, current projects and past history (sometimes to competitors).

Often much time and money has been spent on the employee in expectation of a

future return. When the employee leaves, the investment is not realized.

Turnover leads to more turnoverWhen an employee terminates, the effect is felt throughout the organization. Co-workers are often required to pick up the slack. The unspoken negativity often

intensifies for the remaining staff.

Goodwill of the companyThe goodwill of a company is maintained when the attrition rates are low. Higher

retention rates motivate potential employees to join the organization.

Regaining efficiencyIf an employee resigns, then good amount of time is lost in hiring a new employeeand then training him/her and this goes to the loss of the company directly which

many a times goes unnoticed. And even after this you cannot assure us of the same

efficiency from the new employee.


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OBJECTIVES OF THE REPORT-

The objective of any report holds its purpose for what its research is being conducted , so

the primary and secondary objectives for this report are as follows

Primary Objectives-

To investigate and identify the various causes of attrition in

Insurance sector especially in BAJAJ ALLIANZ LIFE INSURANCE

COMPANY Ltd.

To help in retention of such employees who attired from BALIC

.

Secondary objective-

To study the concept of attrition

To check satisfaction level of employees of BALIC.


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RESEARCH METHODOLOGY

Research Methodology is a systematic method of

discovering new facts or verifying old facts, their sequence, inter-relationship, casual

explanation and the natural laws which governs them. Research Methodology explained

by Redman and Mory are as follows systematized effort to gain new knowledge Research

Methodology is original contribution to the existing stock of knowledge making for it

advancement. It is the purist of truth with the help of study.

Observation, comparison and experiment. In short also covers the systematic method of

finding solution to a problem is research. It also covers the systematic approachconcerning generalization and the formulation of the theory. Different stages involved in

research consists of enacting the problem, formulating a hypothesis, collecting the facts

or data, analyzing the facts and reaching certain conclusion either in the form of solution

towards the concerned problem or in generalization for some theoretical formulation.

In Research Methodology mainly Data plays an important role. The Data is divided in

two parts:

a) Primary Data.

b) Secondary Data.

Primary Data

Is the data, which is collected directly by direct personal interview, interview, indirect

oral investigation, Information received through local agents, drafting a schedule,

drafting a questionnaire, job portals.

Secondary Data -

Is the data, which is collected from the various books, magazine and material, reports,

etc. The data which is stored in the Organization and provide by the HR people are also

secondary data. The


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various information is taken out regarding that subject as well other subject from various

sources and stored. The last years data stored can also be secondary data. This data iskept for the internal use of the organization. The HR manual is for the internal use of the

organization they are secondary data which help people to gain information.

The well specified and identifiable group is known as a population, and selected number

of persons or objectives is known as a sample. Population may be of two types ie; finite

and infinite population.

Finite population-

Is one where all the members can be easily counted .

Infinite population

Is one whose size is unlimited and therefore its members cannot be

counted.

Sample and sampling method -

Is a smaller representation of the population , it is any number of persons selected to

represent the population , according to some rules or plans .ON the basis of sample

sampling methods are identified which method to choose generally there are two methodsof sampling ie; probability sampling method and non-probability sampling method.

The sampling method used in this project report is that clearly specifies the probability or

likelihood of inclusion of each and every element or individual in the sample. Thus

sampling technique used is the present project report is SIMPLE RANDOM SAMPLING

technique .

Some features of simple random sampling are as follows-

The size of the parent population or universe from which the sample is to be takenmust be known to the investigator. Each element or individual must have an equal chance of being included in the

subsequent sample.

The desired sample size must be clearly specified.The sampling method used in the present project is Random Sampling Method.

In this method each and every individual have chances of being included.


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Research methodology portion captures a unique blend of the possible Causes of Attrition

, in the industries , corporate houses ,and especially in the insurance sector . In this

process , the number of causes or variables which directly or indirectly increases the rate

of attrition and leads towards dump of employees turnover debt were sorted out on thebasis of those dimensions or causes a well structured questionnaire was prepared named EMPLOYYEE ATTRITION RATING SCALE , the questionnaire had its two parts ie;first part as closedform questionnaire which was based on the dimensions sorted down

, consisting of thirteen statements and second part as open- ended questionnaire which

included suggestions provided by the attired employees , followed by the process of data

collection by two sources ie; primary source which included telephonic interview of exit

employees and by secondary source which included drawing information from the

website of BALIC and also by talking to the existing employees of BALIC to understandthe current problem across the insurance sectors .

The variables which were identified to understand the causes of attrition and exit in the

fiscal year (2009-2010) in BALIC were the primary, and statistical data provided by

BALIC were divided into four basic areas of UP-2 region which is based on the basis of -

Division basis,

Tenure basis ,

Departmental basis,

Monthly work basis .

The division basis basically includes the four regions of UP-2 ie ; Allahabad Gorakhpur

,Jaunpur and Varanasi . The departmental basis included all its sales and non-sales

departments which marked attrition rate also including exits on the tenure and monthly

basis .

The variables identified to understand the causes of attrition are :-

1) Organizational Culture which includes in itselfa) Relationship with colleagues,b) Leadership style,c) Flow of communication.

2) Job Satisfaction which includes in itselfa) Work Motivation,b) Stress.

3) Growth and Development which includes


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a) Learning and development ,b) Growth prospects.

4) WorkLife balance.The questionnaire was thus prepared by keeping these dimensions as basis , then

followed by the process of data collection with the help of structured interview and

thus data was recorded in standardized form on the basis of Likert scale ie; 5-point

rating scale ranging from strongly agree to strongly disagree . The questionnaire was

standardized by using Factor Analysis method and then in order to draw conclusion

the data was interpreted and analyzed by using systematic statistical forms and also

they are represented with the help of charts and graphs.

Sample

Population-The wel identified and specified group is known as a population. It may be of two

types ie;

Finite population-Is one where all the members can be easily counted. Whereas

Infinite populationIs one where size is unlimited and therefore its members cannot be counted.

In this report population is finite in nature and population size is 452.Sample-

It is the representative of population which holds all the characteristics of

population .

Sample size of this research report is 117. Out of which it was divided

into three parts ie

Cases of voluntary resignation - 91

Cases of involuntary absconding -22

Cases of involuntary termination -4So our sample size is 91 as report is based on the cases ofresignation only

For the process of collecting data the structed interview was conducted in which all

the 13 statements where asked to the to the exited employees and they were asked

to reply on the basis of 5- point rating scale ie; LIKERT SCALE and also subjective


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responses were provided by them in the form of suggestions .after the process of

data collection these 13 statements where arranged accordingly on the basis of

dimensions. These 4 dimensions are as below-

Organizational culture-This dimesion includes in it some sub-dimensions :

Relationship with colleagues including statement (10).

Leadership styles including statements (2 , 12).

Communication including statement (13) Job satisfaction

It also includes some sub-dimensions along with it:

Work motivation including statements (1, 5, 6, )

Stress including statements (7, 11). Work life balance which includes statements (3, 9). Growth & development

It also includes some sub-dimensions along with it:

Learning & development which includes statements (8).

Growth prospects which includes statements (4).

After they were assembled together their average was taken out and thus their data was

also shown in the form of bar graph


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0

0.5

1

1.5

2

2.5

3

Job Satisfaction OrganizationalCulture

Growth &Development

Work lifebalance

a

verage

score

dimensions

Dimensions


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Measuring scale

Measuring scale taken for this project report is 5- point rating scale, ie; LIKERT SCALE .thus the scaleconstructed with the title employees attrition rating scale:

STATEMENTS

strongly agree neutral disagree strongly

agree disagree

1. Were you clear about your role in your

job

2. Did you had harmonious relationship

with your boss.

3. Were you able to develop harmonybetween

your personal & professional life .

4. Are there good growth prospects for you

in the organization.

5. Do you think that your knowledge 7 skill

was

properly utilized .

6.Were you satisfied with the salary

provided to

you according to your job .7. Were you demanded to work more than

what

was required out of your job .

8. Had you been provided enoughopportunities

for development through training

programmers.9. Did you had continuous hectic work

schedule

10. Did you had harmoious relationshipwith your

colleagues at workplace.

11. Is work pressure main reason for you to

leave

organization .

12. Did you had autonomy of your own self


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to take

decisions in your organization .13. Were you able to communicate directly

to your

boss regarding your professional problems.

Data interpretation

Employees Attrition Rate in BALIC

After the detail Analysis of Attrition in context of meaning, Types, Calculation of

Attrition rate & impact of Higher Attrition on Organizational growth. Now I am focusing

on, why attrition rate is higher in Bajaj Allianz life insurance Company Ltd.? And what

are the main factors responsible for higher Attrition rate.

Data provided by the organization of exit employees of financial year2009-2010 is as

below-

Attrition rate across the Departments/ Channels for FY 2009-2010

MENT TOTAL

EMPLOYEES

NEW

JOINERS

EXITS

EMPLOYEES

TOTAL

EMPLOYEES

AVERAGE

EMPLOYEES

Attri

420 242 193 662 469% 41.15

23 16 16 39 23% 69.57

urance 0 2 0 2 2% 0.00%

ent 23 8 8 31 23% 34.78

arketing 262 45 201 307 106% 189.6

16 0 1 16 15% 6.67%

esource 2 0 0 2 2% 0.00%Audit 1 0 0 1 1% 0.00%

n 46 6 2 52 50% 4.00%

1 3 0 4 4% 0.00%

ministration 6 0 0 6 6% 0.00%

Initiative 9 33 26 42 16% 162.5

12 4 3 16 13% 23.08


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otal 829 359 452 1188 736% 61.4

Total No. of Employees as on 1st April 2009 (Across The Department/ Channels)= 829

Total No. of New Joiners (Across The Department/ Channels) =359

Total No. of Exit Cases (Across The Department/ Channels)=452

Total Attrition Rate Of UP2 Region is 61.41%

The Departments/ Channels having higher Attrition Rate (more than 100%) areDirect marketing Channel & Strategic Initiative Followed by Alternate, Agency,

And Business Procurement. Departments With zero Attrition /Exit are Bancassurance, Human Resource,

Internal Audit, Renewals and Sales & Administrative Thus I excluded these

Departments/ Channels for Further Exit Analysis.

Departments/ Channels having Attrition Rate are-

Departments Attrition in %

Agency 41.15%

Alternate 69.57%

Bancassurance 0.00%Business

Procurement34.78%

Direct Marketing 189.62% (max.)

Finance 6.67%

Human Resource 0.00%

Internal Audit 0.00%

Operation 4.00%

Renewals 0.00%

Sales Administration 0.00%

Strategic Initiative 162.50%

Training 23.08%

Region Total 61.41%

Highest Attrition-

Directive Marketing-189.92%,


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Strategic Initiative -162.50%

Alternate- 69.57%

Agency-41.15%.

Lowest Attrition-

Operation - 4.00%,

Finance- 6.67%

Division wise attrition rate in BALIC for FY (2009-2010)

7% 12% 0%

6%

32%

1%0%0%1%0%

0%

27%

4% 10%

Department - Wise

Agency AlternateBancassurance Business ProcurementDirect Marketing FinanceHuman Resource Internal AuditOperation RenewalsSales Administration Strategic InitiativeTraining Region Total

Divisions No. of

exits

Allahabad 1 23Allahabad 2 34 (max.)

Azamgarh 14

Ballia 9 (min.)

Gorakhpur 1 26

Gorakhpur 2 18

Jaunpur 11

Mughalsarai 14


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Varanasi 1 21

Varanasi 2 23

Total exits 196


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Attrition on basis of tenure for FY (2009-2010)

12%

18%

7%5%

13%

9%

6%

7%

11%12%

Division - UP 2

Allahabad 1 Allahabad 2 Azamgarh Ballia

Gorakhpur 1 Gorakhpur 2 Jaunpur Mughalsarai

Varanasi 1 Varanasi 2

Tenure in

months

No.of

exits

0-1 month 35(min.)

1.1-3 months 76

3.1-6 months 99

6.1-9 months 41

9.1-12 months 85

12 < months 116

(max.)Total exits 452


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8%17%

22%

9%

19%

25%

Tenure Wise

0-1 mnt 1.1-3 mnths 3.1-6 mnths

6.1-9 mnths 9.1-12 mnths 12 < mnths


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Attrition on basis of Month for FY (2009-2010)

Months No. Of Exits

April 09 22 (min.)

Aug. 09 47

Dec.09 28

Feb. 10 22 (min.)

Jan. 10 22 (min.)

July 09 61

June 09 62 (max.)

Mar. 10 27

May 10 58

Nov. 09 30Oct. 09 43

Sep. 09 30

Total Exits 452

5% 10%6%

5%

5%13%

14%

6%

13%

7%9%

7%

Month - Wise

9-Apr Aug. 09 Dec.09 Feb. 10 Jan. 10 9-Jul

9-Jun Mar. 10 10-May Nov. 09 Oct. 09 Sep. 09


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Nature of exits

Mode Of Exits

Absconding

Termination

Involuntary total

Voluntary -

Resignation

Mode of exit Total

Involuntary -

Absconding 66

Termination 53

Involuntary total 119

Voluntary -

Resignation 333

Voluntary total 333

Grand total 452


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Now the data is being interpreted on the basis of statement

wise and dimension wise , so from here starts the interpretation on basis of statements,data is also represented graphically-

Statement 1-

Were you clear about your role in your job.

Analysis

Most of the employees rated 2 showing that to some extend they do agree

that they were clear about roles accepted from them to do. Showing the average of 1.72

Statement 2-Did you had harmonious relationship with your boss.

Analysis-

Mostly employees rated on 2 showing they slightly agreed that their

relationship with their boss was quite harmonious . presenting the average score of 2.01.

They replied with statements like

0

1

2

3

4

5

6

0 20 40 60 80 100

5-p

ointRatigScale

No. Of Exit Employees

statement 1


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They had very good relations with their colleagues and boss too. Some responded

totally different Some had their boss as their main reason to leave BALIC , he used to use abusive

language .

Statement 3-

Were you able to develop harmony between your personal and professional

life

Analysis-

Most of the employees rated their answers at 3 showing that they had

neutral response on this statement with the average score of 2.74.

They replied with the statements If we are in the job so have to work hard so sometimes it happened that were able and

sometimes were not able to establish harmony , some replied differently

Few bosses give so much work pressure that it becomes tough to create harmony.

0

1

2

3

4

5

6

0 20 40 60 80 100

5-pointRating

Scale

No. Of Employees

Statement 2


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30

Statement 4-

Are there good growth prospects for you in the organization .

Analysis

Most of the employees agreed that there are very good growth prospects for

them in the organization, most of them rated at 2 followed by 1 showing their strongly

agreed and agreed response , showing average score of 2.21.

They replied in statements like-

I feel very proud of being part of BALIC , some replied

* Today I am whatever its just possible being part of BALIC.

0

1

2

3

4

5

6

0 20 40 60 80 100

5-pointScale

No. Of Employees

Statement 3

0

1

2

3

4

5

6

0 20 40 60 80 100

5-pointScale

No. Of Employees

Statement 4


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31

* Statement 5-

Do you think that your knowledge and skill was properly utilized.

Analysis

In this statement scores scattered more towards point 2 as well to point 4

also, people showed different responses , some agreed that their ability was utilized for

best and some disagreed from this point ,showing the average score of 2.26 they replied

in different manner .

Individual statements came out as

Yes I started as junior and resigned from the post of BDF. Few responded totally in

contrast way like,

After having experience of 4 years I was posted as ASM but as per requirement

and experience I should be posted as SSM.

0

1

2

3

4

5

6

0 20 40 60 80 100

5-pointScale

No. Of Employees

Statement 5


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32

Statement 6-

Were you satisfied with the salary provided to you according to your job. Analysis

In this area also variations are being shown people mostly rated at 2 showing

that they were satisfied but few were also there who were not satisfied so left job ,

showing the average score 2.42 they gave statements as follows ;

Our boss used to cease checks of employees till they submit (full and final) ,if they

dont submit then he dont give salary.

Salary was not satisfying but as incentives were high salary also goes high. Some

replied totally contrast as- Ya salary was quite good I was satisfied.

Statement 7-

Were you demanded to work more than what was required out of your job.

Analysis-

In this statement most of the employees agreed that they were demanded towork more, showing the average score of 2.52 , giving statements like

If you are working so you will be required to work more, some replied in other

wat

No not at al but ya in times of closing work load was increased .some repied

differently

0

2

4

6

8

0 20 40 60 80 100

5-po

ntscale

No. Of Employees

Statement 6


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33

Boss used to shout dhandha karo dhandha any how

* Statement 8-

Had you been provided enough opportunities for development through training

programs.

Analysis-

Mostly employees agreed that they were provided trainings but beside that they

also replied that level of training was not up to mark ,they rated 2 and 3 in agreement that

they were provided training , also showing average score of 2.12 . they gave statements asfollowing

It was only the formality of training it dint enhanced skills, some replied

SMs should also be provided trainings and also our bosses be taught managerialskills.

In the experience of 4 years joined only two times.

0

1

2

3

4

5

6

0 20 40 60 80 100

5-pointscale

No. Of Employees

Statement 7


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34

0

1

2

3

4

5

6

0 20 40 60 80 100

5-pointscale

No. Of Employees

Statement 8


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35

Statement 9-

Did you had continuous hectic work schedule throughout.

Analysis

Most of the respondents responded on 3 followed by 2 slightly agreeing

that they had hectic schedule , showing average score like 2.61 showing their work

schedule to be tight. They gave statements like-

Give at least time of one month to prepare IC report .

Being employee in rural area it was not possible to give daily attendance at officeso being it main reason to leave BALIC.

Statement 10-

Did you had harmonious relationship with your colleagues at workplace. Analysis

Most of the employees strongly agreed that their relationship with their

colleagues were very good rating at 1 followed by 2. Scoring average score of 1.75 with

statements like;

We were very close to each other .

We had very good relations like family

0

1

2

3

4

5

6

0 20 40 60 80 100

5-

pointScale

No. Of Employees

Statement 9


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36

z

Statement 11-Is work pressure main reason for you to leave organization.

AnalysisMostly employees varied in responses either extremely agreed or

disagreed for showing results that work pressure was main reason for Sis or DMCsto leave BALIC , showing average score of 2.84.

0

1

2

3

4

5

6

0 20 40 60 80 100

5-pointratings

cale

No. Of Employees

Statement 10

0

1

2

3

4

5

6

0 20 40 60 80 100

5-po

intscale

No. Of Employees

Statemet 11


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37

Statement 12-

Did you had autonomy of your own self to take decisions in your

organization.

AnalysisMostly responses from employees are rated on 4 showing their that they were not

provided autonomy to take decisions of their own their rating ranged from 4

followed by 3 and 2 , also showing average score of 2.81 , they stated as ; Not at all , our boss used to treat us as dogs .

Statement 13-Were you able to communicate directly to your boss regarding your

professional problems.

Analysis

0

1

2

3

4

5

6

0 20 40 60 80 100

5-point

scale

No. Of Employees

Statement 12


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Mostly employees rated at 1 followed 2 showing that they were able to

communicate their problems directly to their boss , also showing the average score of2.18 , they gave different statements like;

Yeh I Used To Share Each And Every Either Personal Or Professional Problem

With My Boss.

0

1

2

3

4

5

6

0 20 40 60 80 100

5-pointscale

No. Of Employees

Statement 13


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39

Average scores in form of chart -

Now showing here the representation of all 13

statements in a graph in the form of average scores clearly representing their problem

area of employees as their reason to leave BALIC. On the basis of this chart it is clearly

visualized that the different 13 items holds different value.

In the chart its clearly shown that the

statement 11 (is work pressure main reason for you to leave organization.) with theaverage score of 2.85 which clearly shows that work pressure is the main reason for most

of the employees to leave organization , followed by statement 12 ( did you had

autonomy of your own self to take decisions in your organization) showing average score

of 2.81 which shows that leadership style can also be one of the causes to leave the

organization, in statement 3 ( were you able to develop harmony between your personal

0

0.5

1

1.5

2

2.5

3

Average

Statements

Statement- Wise


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40

and professional life ) also employees showed that they were not able to develop

harmony in their personal and professional life with the average score of 2.74 .

On the flip side we find that the employees showed positive attitude towards statements

like 10 (did you had

Harmonious relationship with the colleagues at workplace ) , with the average score of

1.71 they agreed positively that their relationship with their colleagues was very good ,

followed by statement 1 ( were you clear about your role in your job ) they agreed here

also that their roles were clear to them with the average score of 1.73

Interpretation on the basis of dimensions

Here data will be interpreted on the basis of 4

dimensions with its all sub dimensions .

In this diagram its clearly shown that the dimension

of WORK LIFE BALANCE shows average score of 2.71 , which means that this

0

0.5

1

1.5

2

2.5

3Job Satisfaction

OrganizationalCulture

Growth &

Work lifebalance

Dimension -Wise


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dimension is most prominent where the employees are dissatisfied , followed by the

average score of 2.35 in the dimension of JOB SATISFACTION with the average scoreof 2.82 in its sub dimension and average score for statements 11 and 2.52 for the

statement 7 which shows that the employees felt more stressed and under pressure which

can be the main cause of their attrition from the organization .

On the other side we find that the dimension of

ORGANIZATIONAL CULTURE is the dimension where employees were more satisfied

with the average score of 1.71 and in its sub dimension i.e.; relationship with colleagues ,

here employees are more which can be assumed that the employees are satisfied and

happy in the area of organizational culture but still one dimension of organization culturei.e.; leadership style shows average score of 2.81 which tells that the relationship with the

boss is not as good and it can also be the cause of attrition for many employees assuming

that it could be cause of attrition .

00.5

11.5

22.5

3


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DISCUSSION

In this portion we will find that each and

every statement as well as dimension has been clearly interpreted. In our project report

we took four dimensions along with its sub dimensions.

Organizational Culture which includes in itselfa) Relationship with colleagues,b) Leadership style,c) Flow of communication.

Job Satisfaction which includes in itself

d) Work Motivation,e) Stress.

Growth and Development which includesf) Learning and development ,g) Growth prospects.

WorkLife balance.

In the same manner the four dimensions were also

randomized and scoring was done. WORK LIFE BALANCE is the dimension where

employees were more dissatisfied and it could the cause of their attrition from the

organization. As it being the structured interview , process of collecting data in which

detailed investigation was done with the employees . Among those there was a case in

which individual employee wanted leave from organization in emergency as his sister

was very serious and was hospitalized , he had to go urgently but he was not provided

leave so he left the organization. He said he dont have any grievances from the BALIC,

among those their was another case in which the employee needed some financial help

from the boss as he was to pay money for emergency operation of his wife but o help was

provided to him so he also left the organization.

As in dimension of job satisfaction it also showed

dissatisfaction, there are many cases in which employees showed work pressure to be the

main reason to resign or abscond. Among many cases one case is being employee of

Statistic Initiative his working area is in Kaushambhi and working office is in Allahabad

and reporting office in Varanasi , so it becomes for hi hectic for him to report daily and


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43

daily attendance was compulsory which was not possible for him to report daily , and

many other employees left due to regulations of attendance. And many other employeeswant that the time to prepare ICs should be provided

For 1 month .

In the dimension of organizational culture

leadership style is where employees were dissatisfied, there are many cases among them

few are. In many cases employees are satisfied and happy with BALIC but due to

behavior of boss they had to leave BALIC, in one case the boss was a main cause to leave

organization .He used to treat employees like dogs and uses slangs for employees as well

as for their family members .and also, provides no training and only shouts Dhanda karo

Dhanda and even used to cease checks of employees till they submit (full and final )if in

case they dont give so he used to cease salary also. In one case it was found that the BMs

takes some amount of salary of SMs.

There was also one cause which comes out after

the analysis of detailed interview that employees wanted the concept of psychological

contract from the organization . psychological contract is the unwritten contract between

a employee and his organization that if employee is doing something for theorganization so organization should also do something for the employee and vice versa.

as there are many cases where employees said in words

Company should give commitment to employees.

If company could not complete the commitment so should not give wrong

commitment , it downs the trust level .

Among such cases one case is that the individual was top-5 performer and he was told

that if you complete 50 policies within a month then you will be promoted from SM to

SSM but his commitment was not completed and he was promoted to the post of ASM by

saying that your performance was not good .


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44

On the flip side the dimension of organizational

dimension i.e., its sub dimension Relationship with colleagues was very good and theyhad very good and familiar relationship with each other .


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45

Limitations

Here in this portion it includes all the

limitations which all were faced while conducting the interview , they are as follows

As it being structured interview not to create biases as a result of fatigues we were

not allowed to include ore sentences.

We were bounded due to length of questionnaire to include dimensions like

psychological contract and emotional labour.

Random sampling failed as we were not able to contact all the employees due to

unavailability of their contact numbers. Data obtained could not be generalized to all Insurance sector.

Contact was made only to front line managers .

In such kind of survey its very difficult to get 100% correct responses as

individuals can attribute to organization for his/her failure.

Some individuals were not able to understand each and every statements in

questionnaire.

Misinterpretation of the concept of statements.

Due to busy and hectic schedule few gave fake responses. Individual differences in the collection of data.


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46

Conclusion

One of the biggest asset of any industry or

organization is its manpower. As this organization BALIC deals in Insurance sector , so

its main power is manpower to launch new products , introduce to customers and even

to attract the customers towards our products .

Insurance sector is facing high attrition rate

because the rate at which its loosing its employees is just the double of the rate at which

they hire . in todays scenario where companies are fighting to combat global business

competitions , and struggling to survive , employee turnover becomes as double.In todays knowledge economy, managing

human resources has been the most difficult task undertaking the project at BALIC I

have learned about company induction, attrition and causes of attrition that would not

been learned in books , because causes keeps on changing from organization to

organization.

This is not possible for any organization to

vanish the attrition rate for any organization but human resources are taking steps to

reduce the attrition rate. The project captures the unique blend of causes of attrition for

organizations especially in Insurance sector with reduction in dumb of employee

turnover debt.

In the end of the project it lies the main cause of

attrition in BALIC in the form of pie-charts and bar-graphs and I received in very

professional manner from BALIC , Varanasi . The learning experience I got during my

entire project work will really help me in my career throughout my life

With this from here I am concluding y project

report.


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47

Recommendations

Some recommendations which are provided on the basis

of the suggestions given by attired employees, they are

Provide 1 month time to prepare ICs.

Remove top-up policies.

Give salaries in the hands of SMs and not in the hands of BMs.

Should complete the psychological contacts of the employees , if the organization

provides.

Daily attendance must be removed.

Try to know the problems of ISOs and call them back as many still want to rejoin

the BALIC.

Need to advertise in rural areas .

Enhance growth prospects for statistic Initiatives.

Provide managerial skills to the managers , as they are just promoted on the basis

of experience but they lack in possessing managerial skills.

Enhance policies for grow of BALIC in rural areas and establish more branches.

Remove the concept of LG.

Focus on rate of resignation in Sultanpur.

Improve the level of training provided to the employees.


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References

*

* Books-

Human Resources in a Globally Competitive Business Environment,

Wayne F. Cascio, Managing Human Resource, Tata Mc Craw Hill Edition,

pp: 26-29.

Tests ,measurement and research methods in Behavioral sciences,A.K.SINGH, 5

thedition , Bharti Bhawan.

Fundamentals of Human Resource Management , Decenzo D.A. &

Robbins Stephen P. , eighth edition, Wiley India 2009.

Organizational Behavior , Lthans Fred , 11th edition , McGRAW HILL

International Edition .

Training Instruments in HRD and OD, Pareek Udai,

Communication in Organization , Fisher D. 2nd Edition ,JAICO Publishing

house, 2007.

garrett

* Websites-

www.google.com

www.wikkepedia.com

www.balic.co.in

www.bajajauto.com

www.bajajallianzlife.co.in
http://www.google.com/http://www.google.com/http://www.wikkepedia.com/http://www.wikkepedia.com/http://www.balic.co.in/http://www.balic.co.in/http://www.bajajauto.com/http://www.bajajauto.com/http://www.bajajallianzlife.co.in/http://www.bajajallianzlife.co.in/http://www.bajajallianzlife.co.in/http://www.bajajauto.com/http://www.balic.co.in/http://www.wikkepedia.com/http://www.google.com/

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