Presented byNitika singh(22)

Pallavi gupta(23)Dhaval parmar(25)Pradeep kumar(26)

IntroductionThe study of organizational behavior relates to the

expected behavior of an individual in the organization. No two individuals are likely to behave in the same manner in a particular work situation.

A very important aspect of an individual’s behavior in an organization is “exit behavior” or attrition.

IntroductionExit Behavior or Attrition rate in turn affects

the organizational effectiveness.The success of any business has significantly

become people dependent and employee attrition is the biggest challenge that is impacting organizations across Indian industries. 

Attrition stats……..Employee attrition is about 20-30 per cent

across industries (Source – CII)Average Attrition Rate in BPO sector is

hovering around 35% in FY 2007Average Attrition Rate in BFSI sector rose

from 32% in FY 2006 to 44% in FY 2007

The manufacturing sector is also facing an Attrition Rate of 20%. (Source: ASSOCHAM

WHAT IS ATTRITION?Defining attrition: "A reduction in the number of employees

through retirement, resignation or death“

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

Types of Attrition

Attrition is not bad alwaysSome times attrition is desirable and

necessary for organizational growth and development.

The only concern is how organizations differentiate “good attrition” from “bad attrition”.

BAD ATTRITIONIn 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 form means 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.

OTHER TYPES OF ATTRITIONMarket Driven – Based on the demand for a

particular skill.The typical initial reaction by employers to

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

OTHER TYPES OF ATTRITIONProcess Driven - variables associated with

job design and/or the organization.

Workload or Stress Driven – on the actual capacity to perform the work required. This is when there are not enough of the right people.

Causes of AttritionHigher PayJob or work place is

not what they expected

Job & person mismatch

Less growth opportunities Lack of appreciation

Lack of trust and support in coworkers, seniors and management

Stress from overwork and work life imbalance

CompensationNew job offerPlans for further

studiesWomen Workers

Reasons For AttritionPersonal Reasons

Financial Reasons

Other Reasons

Reasons for Attrition

Higher Packages, 55%

Satisfaction, 35%

Others, 10%

ATTRITION RATESAttrition rates

Australia, 19%Europe, 14%

India, 10%

Global Average, 25%

USA, 32%

TOP FIVE I.T COMPANIESTOP FIRING COPANIES

I.IBMII.AccentureIII.WiproIV.IntelV.CTS

TOP SECURE COMPANIES

I.MicrosoftII.EDSIII.HPIV.TCSV.Google and Yahoo

Impact of AttritionAttrition 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 impactA high attrition indicates the failure on the

company’s ability to set effective HR priorities.

Clients and business get affected and the company’s 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.

Indirect impactDifficulty 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 cycle—attrition brings decreased productivity, people leave causing others to work harder and this contributes to more attrition.

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Reducing attritionTraining and Development

Employees should be given adequate training regarding new technology domain behavior skills and succession plans.

This will improve their efficiency in their respective fields as well as provide an opportunity for the advancement within an organization.Analyze Employee Background

Developing a synergy between the work and the employee’s innate talents will help to bring down the attrition rates.

Reducing attritionFeedback

Learning what employees want in their workplace allows employers to cater to these needs, creating a more productive work environment.

In addition exit interviews should allow managers to understand why employees are leaving that these shortcomings can be remedied.MotivationPositive reinforcement including compliments and rewards for exemplary work, encourage employees to reach their potential. Pay and BenefitsProviding employees with adequate salary extra perks, incentives and insurance will encourage them to continue with their current job.

Singapore Airlines : A Case

Selection And Training Overview

Selection Phase2 – 4 Months

Training Phase2.3 – 4 Years

Attributes

Factors Leading to Attrition

– Reserved behaviour– Lack of group participation– Stuck in the First Officer Mode– Wrong perception of command

role– Looking for fixed templates– Low profile– Underdeveloped handling skills– Technical grounding – Composure

Desired Qualities

Good communication skills Appreciates the big picture Able to think on his feet Confidence and assertiveness Takes responsibility

What was Done?Outward Bound School Training

21 day course conducted in Lumut, MalaysiaFocus on developing leadership qualities,

teamwork, character building, and bonding among cadets

Singapore Flying College

18 months basic and advanced flying training conducted in Singapore and Australia

Cadet Buddy Program for First Officers to mentor and guide new cadets, and to supplement soft skill development of cadets by the college.Enhances cohesiveness and bonding to the pilot

community in the airlineInstills strong SIA values

Effect On Personal Qualities

The training at OBS and SFC fosters bonding and camaraderie among us. We are also equipped with the fundamental skills of an airline pilot in this phase.

The Cadet Buddy Program provided additional motivation for us to succeed in the course, to be able to perform our duties as pilots, just like our mentors.”

Cadet Pilot Kelvin Seow

‘Attrition at Call Canters’

Attrition of employees in the call centre industry is mind-boggling and it is creating havoc for the industry.

The attrition rate varies from minimum 30 per cent to a maximum 90 per cent per annum.

Wonder why the attrition rate was not so high in any other new industry like telecom, retail stores, banking etc.

ReasonsExternal inequity of compensationCareer GrowthHigh aspirations that the industry cannot

meetRole stagnationWork life imbalance Lack of recognition Under-utilization of skillsInternal inequity of compensation 

WAYS TO CONTROL ATTRITION

Providing Something Extra to your employees

Honoring Performers

Building Relationship

HR PracticesConsider feed

back

Quality of work life

Transparent work culture

Office-Tiger: A Role Model BPO to Follow

Communication

INTERPRETATION AND ANALYSIS Reason : People are joining with a short-term

view and as a stepping stone to something else. Strategy: Create a culture and work

environment that encourages people to think of a call center job as a long-term career option.

Reason : Call center employees have an average age profile of 20-24 years, so they are highly emotional, impulsive and immature when taking career decisions.

Strategy: Constant counseling.

INTERPRETATION AND ANALYSIS Reason : A lot of young people are taking up call

center jobs just to earn some money on the side and not as a serious and long-term career option.

Strategy: Create a culture and work environment that encourages people to think of a call center job as a long-term career option.

Reason : Long-term or intangible or contingency benefits such as PF or medical coverage do not have much attraction for call center employees as they want everything in cash.

Strategy: Redesign the compensation package for call center employees and try to pay as much as possible in hard cash. Work out if necessary a new pay structure highly skewed towards cash benefits.

COMPANIES INITIATIVES For ATTRITION

ICICI OneSource has introduced a career diversification programme whereby employees working with the company for more than 18 months can switch to positions in the ICICI group after passing internal tests.

Future growth of employees. it highlights that skills learnt in the BPO

industry such as customer friendliness and rapid response to customer problems have wider applications in today's competitive markets.

COMPANIES INITIATIVES For ATTRITION

Wipro's Spectra mind has introduced medical insurance for their employees.

Intel Technology has a direct communication programme running, wherein the president, Intel Technology India, is meeting all the employees face to face in small groups.

They have an internal committee to ensure retention of highly qualified employees by offering them alternative groups to work in.

Consultants were hired to find jobs in other organizations for the employees who were made to leave the company.  

COMPANIES INITIATIVES For ATTRITION

Adobe India promotes the spirit of research by giving moral and financial support to employees who have business ideas.

If the idea is successful, the company absorbs it into its business; else the employee goes back to the usual job.  

COMPANIES INITIATIVES For ATTRITION

IBM executive MBA programmes and Web based learning tools help in training the employees to be better managers.

The company sends the senior level employees to Wharton, Stanford and Harvard.

It also has an anonymous feedback programme (one of the first of its kind in the country), through which the employees can give feedback freely.