CHAPTER 1 INTRODUCTION

INTRODUCTION
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 1

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 components. 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 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 use their qualities and skills in challenging teamwork led by capable leaders. There are numerous reasons which may drive an employee to quit. Some

of them are: career opportunities, proper working environment, psychological satisfaction, unfair practices in organization, stress 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. A study on employee attrition falls incomplete without probing into employee retention. Effective employee retention is a systematic effort by employers to create and foster an environment that encourages current employees to remain employed by having policies and practices in place that address their diverse needs. One of the major challenges of the Human Resource Management these days is to retain the organizations employees without letting the rot set in. However, sufficient steps should be taken towards achievement of this goal. The efforts should start right from the beginning, i.e., at the time of hiring. One should hire only those employees who can be retained easily. At the organizational level, adequate steps should be taken to ensure that there is a sense of belonging to the organization. The organization should also encourage social networks among employee groups. Rewards are another way of motivating employees. The top management of the organization should maintain a rapport with key knowledge workers. Employees should get the feel that the organization is concerned about their interests. The most frequent methods for increasing employee retention have been to provide orientation and some level of mentoring support and guidance. As the economy improves there are chances to hear more about the impact of employee attrition. Soon, retention will have to become a focus of employers and human capital management consultants and HR outsourcing providers. People usually dont leave for money or opportunity alone. Several situations work together to cause attrition. There are many possible root causes stemming from uncertain business conditions, the 3

work environment and external factors. In such an environment employees focus more on their career choices, sense of well being and personal safety. Attrition normally brings decreased productivity. People leave causing others to work harder. This contributes to more attrition, which result in increasing cost and lowering 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. The true cost of attrition to the organization is often substantially higher. Each time an employee is lost, hiring and selection cycle must start again. These costs can be significant: advertising costs to announce the job opening to the masses, cost of recruitment agencies, background checks, reference checks, drug testing, cost of overtime pay, temporary help and much more. Once hiring decision is made, the costs of turnover don't stop, but rather continue. Sign on bonuses, relocation costs and any increases in salary level necessary to attract new talent, all add up quickly. The time spent by HR managers to orientate and train the new employee can also be costly and unnecessary. Another serious cost to companies when they lose employees is the loss of organizational knowledge. These are all tangible costs that could be avoided with a better employee retention strategy. If managers know the real causes of attrition, managers can control attrition and retain employees. Each retained employee can save money and lead to better opportunities. Managers should always try to control attrition and promote retention. HINDUJA GLOBAL SOLUTIONS PVT LTD (HGSL) is one of the major players in the domestic BPO industry and it has an efficient labour force as its core element, but in spite of this it faces a crucial problem of loss of dedicated and key employees. As it is a key issue for any organization an attempt has been made to identify the major problems of employee attrition faced by HGSL and also to evaluate the effectiveness of employee retention program in reducing attrition. 1.1 SCOPE OF THE STUDY

The scope of this study is confined Hinduja Global Solutions Ltd. With respect to 4

the employees at all the levels of management. This study can help the management to know where the company is lagging behind and helps to improve its internal and external environment. The project throws light through valuable suggestion to decrease attrition level in the organization. This study can help the management to find the weaker parts of the employee feels towards the organization and also helps in converting those weaker part in to stronger by providing the optimum suggestions or solutions. This study has a wider for scope in any kind of organization since attrition is general one and makes the employees to put forth their practical difficulties and need factors in the organization. This study can help the management to know for which the reason employees tend to change their job, through dissatisfaction factors faced in the organization and also helps to recover by providing the optimum suggestions or solutions. This project can be base for the students who are doing the project in the related area

1.2 NEED FOR THE STUDY

 The success of any BPO industry depends largely on the employees are considered as the backbone of HINDUJA GLOBAL SOLUTIONS Ltd. This study focused on why the Attrition occurs and the possible ways to reduce it. The study was mainly undertaken to identify the level of employees attitude, the dissatisfaction factors they face in the organization and for what reason they prefer to change their job. Once the levels of Employees attitude are identified, it would be possible for the management to take necessary action to reduce attrition level. Since they are considered as backbone of the Company, their progression will lead to the success of the Company for the long run. This study can be helpful in knowing, why the employees prefer to change their job and which factors make employee dissatisfy. Since the study is critical issue, it is needed by the originations in order to asses the overall interest and the feelings of the employees towards their nature of job and organization This study can be helpful to the management to improve its core weaknesses by the suggestions and recommendations prescribed in the project.

1.3 OBJECTIVES OF THE STUDY:

 To know the reasons of attrition in HGSL. To identify the factors which make employees dissatisfy. To know the problems faced by the employees that lead to attrition. To know the retention measures followed at HGSL. To suggest ways and means to reduce attrition.

1.4 RESEARCH METHODOLOGY: Research design A research design is the arrangement of conditions for collection and analysis data in a manner that aims 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 the design includes an outline of what the researcher will do from writing the hypothesis and its operational implication to the final analysis of data. 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

1.5 TYPES OF DATA COLLECTED

Primary Data Questionnaires are prepared and personal interview as well as telephonic interview was conducted. The interview was conducted in English. Proper care was taken to frame the interview schedule in such a manner it should be easily understood in view of educational level of the employees. Generally 25 questions are prepared and asked to the employees of the Hinduja Global Solutions Ltd. Secondary Data Secondary data was collected from Internets, Articles in internet, and Company Records 1.6 QUESTIONNAIRE CONSTRUCTION: Questionnaires were constructed based on the following types Open ended questions Close ended questions Multiple choice questions

1.7 DEFINING THE POPULATIONS: The Population or Universe can be Finite or infinite. The population is said to be finite if it consist of a fixed number of elements so that it is possible to enumerate it in its totality. So In this projects consist of finite population.

1.8 SAMPLING PLAN:

A sampling plan is a definite design for obtaining a sample from the sampling frame. It refers to the technique or the procedure the researcher would adopt in selecting some sampling units from which inferences about the population is drawn. Sampling design is determined before any data are collected. Random Sampling technique was adopted. In this method the researcher select those units of the population in the sample, which appear convenient to him or the management of the organization where he is conducting research. 1.9 SAMPLE SIZE: Nearly 60 samples are taken in Hinduja Global Solutions Ltd. 1.10 FIELD WORK: The field works is done at Hinduja Global Solutions Ltd. Somajiguda, Hyderabad. 1.11 PERIOD OF SURVEY: The period is from March 2010 to May 2010 1.12 DESCRIPTION OF STATISTICAL TOOLS USED: Percentage method Weighted average method and Rank Correlation.

PERCENTAGE METHOD:

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 ______________________ *100 Total no. of Respondents

Percentage of Respondent =

From the above formula, we can get percentages of the data given by the respondents. WEIGHTED AVERAGE METHOD: Weighted average can be defined as an average whose 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 it may vary in different cases. Thus weightage is number standing for the relative importance of the item. RANK CORRELATION: Correlation analysis deals with the association between two or more variables. It does not tell anything about cause and effect relationship. Correlation is classified in two types as, Positive Correlation. Negative Correlation.

SPEARMAN Correlation method, it also can be said as Rank Correlation. It is defined by the symbol r

Formula, 10

6di2 r = 1- ___________ n (n2-1)

Correlation value shall always lie between +1 and-1. When r =1, it shows there is perfect positive correlation between variables. When r = 0, There is no correlation. 1.13 LIMITATIONS OF THE STUDY: This study has been conducted purely to understand employee attrition. Detailed study to the topic was not possible due to limited size of the project. Response from the employs was not up to the expectations. Due to change of existence of ambiguity in some of the answers provided by the respondents there may be a small chance for presence of error in analysis of questionnaire. Process of the study was limited to few employees not all. Survey has been conducted for short period so there is a time constraint.

11

CHAPTER 2 LITERATURE REVIEW

12

REVIEW OF LITERATURE
2.1 WHAT IS ATTRITION? "A reduction in the number of employees through retirement, resignation or death". Attrition, also known as employee churn, employee turnover, or employee defection, is an industrial term used to describe loss of employees or Man power. Attrition is pretty high in the industry these days. Attrition is a universal phenomenon and no industry is devoid of it, but the degree fluctuates from industry to industry. Attrition is a serious issue in the industries because the industry is knowledgebased and hence employees are its assets. Deficiencies like inability to influence employee perception of growth; not aligning employees to roles based on their individual talent, inflexibility in leadership styles, are causing conflicts at a very intrinsic level, resulting in knowledge employees choosing the proverbial easy way out. 2.2 ATTRITION IS BUSINESS PERSPECTIVE: Says ABRAHAM.T M, Head-HR, Veeda CR, Attrition is a phenomenon affecting any business organization in the industry. Over the past few years, organizations have taken an increased interest in aligning their HR practices to their business goals. Where as the deficiencies like inability to influence employee perception of growth; not aligning employees to roles based on their individual talent, inflexibility in leadership styles, are causing conflicts at a very intrinsic level, resulting in knowledge employees choosing the proverbial easy way out. Employees thus attempt to change the manager or the work environment, resulting in employee attrition.

13

2.3 Attrition occurs due do INEFFECTIVE MANAGERS: Says BEENA HANDA, Vice-President-HRM of Claris Life sciences. Attrition also happens when people hate their working conditions, do not like their team-mates or perhaps do not like what they are doing. There are also cases when people leave their job for family reasons or when they wish to migrate. For example, girls often leave their jobs when they get married and shift to another city, Beyond a point, an employee's primary need has less to do with money, and more to do with how he's treated and how valued he feels. Much of this depends directly on the immediate manager. And yet, bad bosses seem to happen to good people everywhere. A Fortune magazine survey some years ago found that nearly 75 per cent of employees have suffered at the hands of difficult superiors. A WORKFORCE MAGAZINE ARTICLE, "Knowing how to keep your best and brightest," reported the results of interviews with 20,000 departing workers. The main reason that employees chose to leave was poor management. HR magazine found that 95 percent of exiting employees attributed their search for a new position to an ineffective manager. 2.4 ATRITION IS A CRITICAL ISSUE: Whenever a well-trained and well-adapted employee leaves any organization, it creates a vacuum. The organization loses key skills, knowledge and business relationships. And it is not an easy task to find a sustainable substitute. Situation is worse when it happens at a critical (decision making) position, as there is a scarcity of such technical resources in the market, explains Head HR, who feels attrition directly affects the company. Employees want not only work recognition, but also extra perks. 2.5 COMBATING HIGH ATTRITION: Alarm bells are ringing loudly in corporate corridors as attrition rates in IT organizations average 22 percent as per a study conducted by the Indian Institute of Technology, Bombay (IIT-B) with a sample of 1,028 IT companies in the country.

14

Says Dr. NANDKISHORE RATHI, placement officer of IIT-B, After doing the survey, we found that the lack of match between personal requirements and organizational culture was quite prevalent. Along with the three main reasons as mentioned, An employee may be concerned about the environment in the organization, His compatibility with his supervisors, The attention paid to him.

Hence, the reason for an employee leaving a company could be nothing other than his growth, If companies take proper steps and adopt methods to serve their employees needs, the challenge of managing attrition will remain low. 2.6 TREAT EMPLOYEES LIKE CUSTOMERS: Companies should have a similar approach to employees and customers. A company should strive to retain an employee in the same way it tries to retain a customer. BIJAY SAHOO, Vice-president Talent Engagement & Development Wipro Technologies. Some employees prefer development to being in a support and maintenance job. To hold back these people, we give first preference for training them. RAKESH TIKU, Vice-president Infinite Computer Solutions. Says BIJAY SAHOO, vice-president, talent engagement and development, Wipro Technologies, Companies should have a similar approach to employees and customers. If a company strives to retain an employee in the same way it tries to retain a customer, him leaving the organization could be out of question. Communication is the foundation for the entire process of managing attrition. This communication begins right from recruitment.

15

Says RAJEEV MALIK, director, HR, McAfee Software (India), Conducting regular meetings and updating employees, especially new entrants, about the companys status and achievements is a must.

2.7 RATHIS RECOMMENDATIONS: Dr. NANDKISHORE RATHI, Placement officer, IIT-B, has a few steps to reduce attrition: For HR managers Consider both a persons culture-fit and job-fit. Understand the expectations at the entry level.

To curb a high attrition rate: Top management should communicate continuously with all the employees about the vision and mission of the company. Support HR initiatives aimed at retaining people. Line managers or project managers should establish a connection between the lower- level and top management. Manage the companys growth properly. Develop leaders at all levels. Train leaders in the skills they need to manage effectively

Reduce Attrition: Managers and Professional Employees: We can help you adjust your company vision and manager's performance reviews to reflect employee turnover, and provide mentoring and interpersonal training to inexperienced managers. Develop and communicate a strong strategic vision Provide relationship coaching and help people develop to their potential Reward managers for their relationship skills - not only on technical know-how and financial results. 16

2.8 LEADERSHIP CRISIS LEADS TO ATTRITION: Says DESIKAMANI.G is Chief Mentor of Mentor Consulting, Chennai, that LEADERSHIP CRISIS LEADS TO ATTRITION, Lack of good leaders who can motivate and guide their teams well is a significant reason for the high rate of attrition in the industry. Employees dont leave organizations but their managers. There has been a phenomenal change in employee perception of loyalty over the last decade and is especially true of knowledge workers. What the organization can expect from an employee has dramatically changed from loyalty to commitment-to-cause and so has the factors causing them. Deficiencies like inability to influence employee perception of growth; not aligning employees to roles based on their individual talent, inflexibility in leadership styles, are causing conflicts at a very intrinsic level, resulting in employees choosing the proverbial easy way out. They attempt to change the manager or work environment and hope for the best to happen. 2.9 FIVE PRINCIPAL REASONS FOR WHICH THE PEOPLE CHANGE JOBS 1. It doesn't feel good around here. This is a corporate culture issue in most cases. Workers are also concerned with the company's reputation; the physical conditions of comfort, convenience, and safety, and the clarity of mission. 2. They wouldn't miss me if I were gone. Even though leaders do value employees, they don't tell them often enough. If people don't feel important, they're not motivated to stay. No one wants to be a commodity, easily replaced by someone off the street. If they are regarded as expendable, they'll leave for a position where they're appreciated. 3. I don't get the support I need to get my job done. Contrary to opinions heard alltoo-often from management, people really do want to do a good job. When they're frustrated by too many rules, red tape, or incompetent supervisors or co-workers, people look for other opportunities. 17

4. There's no opportunity for advancement. No, we're not talking about promotions, although many deserving people would like to move up. The issue here is learning. People want to learn, to sharpen their skills and pick-up new ones. They want to improve their capacity to perform a wide variety of jobs. Call it career security. The desire is for training and development. If workers can't find the growth opportunities with one company, they'll seek another employer where they can learn. 5. Compensation is the last reason people most leave. That's a brash statement, but it's true. Workers want fair compensation, but the first four aspects must be strong. If they're not, but money's high, you'll hear people say "you can't pay me enough to stay here." By, BIJAY SAHOO, Vice-president Talent Engagement & Development Wipro Technologies. 2.10 MANAGING ATTRITION THROUGH CORPORATE ALUMNI Says CHANDRAPRAKASH LOONKER is Architect (Assistant Vice-president), Citigroup, corporate investment banks Trading Service Technology in New York. Instead of fighting attrition, organizations should manage it well by creating a network of corporate alumni says Loonker; Indian companies should adopt a model similar to an educational institute. Maintain and nurture good relations with employees who leave your company just as educational institutes do with their alumni. The word corporate alumni seems apt here. This can have following benefits: Alumni are brand ambassadors. People have special love for their first job as they learn the most from their first job. These employees will continue to help the organization even years after they have left it. Alumni are the best marketing people you can have. Larger the network, bigger the army of people working free of charge for the organization. Higher the attrition rate, faster the network grows. Corporate alumni can act as great mentors for your employees. Whenever an employee leaves, encourage his colleagues and juniors to maintain strong ties with him. 18

This keeps him attached to the organization. Also, your current employees will benefit from his experiences. High attrition has led to great networking between employees of different organizations. Besides helping in business development, alumni can be very helpful in talent sourcing. Remember, your alumni know your culture. Hence they can select the best fitting employee for your organization. 2.11 DONT CONFRONT ATTRITION: Dont push employees into signing contracts or bonds. Instead negotiate longer notice and transition periods with them. Disgruntled employee, even if he stays back due to a contract/bond will cause more harm to the organization than good. Instead of entering into non-poaching agreements in the industry, enter into longer transition period agreements, which the employees will be more open to. Dont hire overqualified people. Always make sure that each of your employee is stretched to the maximum of his capabilities. Any employee who finds his job boring will never be excited about his work. After recruiting a person if you find that he is overqualified, act fast and move him into jobs where you can stretch him out. Change culture from project-centric to a balance of project and people-centric. Encourage people to leave for better opportunities. Keep a very open culture about moving on. This will allow longer notice periods and hence no last minute transitions. This will increase outflow but it will increase quality inflow too. Remember that college presentation which had the list of whos-who, They are our alumni said the presenter. Dont restrict the scope by imposing educational pre- requisites. Hire them as trainees during summers and hire them full-time based upon performance. Higher training costs are usually compensated by lower salaries of newcomers. Add training costs to cost-to-company calculations.

19

2.12 HIRE ATTITUDE; TRAIN SKILLS We can help you hire and inspire appropriate employees... Build positive, friendly, teamwork attitudes and commitment to customer services Help new employees feel comfortable as they participate as valued team members Provide periodic refresher courses to maintain team purpose and functionality.

2.13 ATTRITION: A Key Element to a Successful Staffing Program Says KEN GAFFEY, employee of CPS Personal Services. Attrition is the loss of an employee though voluntary resignation, or involuntary resignation. (Sometimes due to illness or death, but even staffing has limits on what it can control.) It results in the loss of the investment made to hire this person and, based on the time they have been with the company, the loss of training and professional development invested in this person. As staffing professionals, our reaction to attrition is not unlike a fireman's response to fire, or a doctor's response to a fever. It is the enemy. Attrition may be the result of other companies offering better salaries and benefits, but that does not mean you have to feel the need to respond. Attrition, like everything else in life, has a price. If you throw enough money at it, you can make it go away. However, when the cost of preventing attrition exceeds the cost of hiring and training new employees, then the real enemy is the assumption that all attrition can and should be prevented. Attrition allows HR and Staffing to be exposed to a level of honest feedback via exit interview data that they would never get from an employee who intended to remain and hopefully build a career within the company. Attrition is not only a function of "how many" left this year, but "who" left this year

20

2.14 EXIT INTERVIEWS: Exit interviews provide an excellent source of information of internal problems, employees' perceptions of the organization, underlying workplace issues, and managers' leadership abilities. People dont leave jobs, they leave managers..! Replace managers who will not develop relationships skills 2.15 ATTRITION BECOMES PROBLEMATIC Turnover is likely to be problematic from a management point of view. This is especially true of situations in which you are losing staff to direct competitors or where customers have developed relationships with individual employees as is the case in many professional service organizations. Some employee turnover positively benefits organizations. This happens whenever a poor performer is replaced by a more effective employee, and can happen when a senior retirement allows the promotion or acquisition of welcome 'fresh blood'. When does employee turnover become problematic..? There is no set level of employee turnover above which effects on the employing organization becomes damaging. Everything depends on the type of labor markets in which you compete. Where it is relatively easy to find and train new employees quickly and at relatively little cost (i.e. where the labor market is loose), it is possible to sustain high quality levels of service provision despite having a high turnover rate. By contrast, where skills are relatively scarce, where recruitment is costly or where it takes several weeks to fill a vacancy. Moderate levels of staff turnover can also help to reduce staff costs in organizations where business levels are unpredictable month on month. In such situations when business is slack it is straightforward to hold off filling recently created vacancies for some weeks.

21

Like turnover rates, this can be used across an organization as a whole or for a particular part of it. The usual calculation for the stability index is: (Number of staff with one or more years service x 100 divided by Number employed a year ago). 2.16 ATTRITION OCCURS DUE TO Ineffective managers and management. Employees ineffective compatibility with supervisors. Inadequate working environment and conditions. Lack of pay for performance. Loss of opportunity for employees advancement. Pushing employees into contracts, agreements or bonds. Hiring over qualified people in corporate by the management Lack of attention paid to the employee. Lack of communication towards the superiors. Inadequate training to the employees. Loss of development in relationship between employees. Uncontrollable stress.

2.17 WHY DO EMPLOYEES LEAVE ORGANISATIONS..? Employees resign for many different reasons. Sometimes it is the attraction of a new job or the prospect of a period outside the workforce which 'pulls' them; on other occasions they are 'pushed' due to dissatisfaction in their present jobs to seek alternative employment. Every company normally faces one common problem of high employee turnout ratio. People are leaving the company for better pay, better profile. Sometimes it is mixtures of both pull and push factors. For a fourth group reasons for leaving are entirely explained by domestic circumstances outside the control of any employer, as is the case when someone relocates with their spouse or partner. Recent research strongly suggests that push factors are a great deal more significant in most resignations than most managers appreciate. It is relatively rare for people to leave 22

jobs in which they are happy, even when offered higher pay elsewhere. Most staff has a preference for stability. It is important to appreciate that the reasons people give for their resignations are frequently untrue or only partially true. The use of exit interviews is widespread yet they are notoriously unreliable, particularly when conducted by someone who may later be asked to write a reference for the departing employee. "People leave managers not companies," write the authors Marcus Buckingham and Curt Coffman. "So much money has been thrown at the challenge of keeping good people in the form of better pay, better perks and better training - when, in the end, turnover is mostly manager issue." If you have a turnover problem, look first to your managers. Are they driving people away..? Attrition refers to a method of achieving a reduction in personnel by not refilling positions that are vacated through resignation, reassignment, transfer, retirement, or means other than layoffs There are other factors one should keep in mind Attrition and span of service in the Company Attrition and Age level Attrition Job Level Band Attrition and Gender Attrition and Education Studying all these factors will help you to find the Remedial, corrective actions to reduce the Attrition 2.18 EMPLOYEES LEAVE ORGANIZATIONS FOR A RANGE OF REASON A Fortune magazine survey some years ago found that nearly 75 per cent of employees have suffered at the hands of difficult superiors. Most employees leave their work for reasons other than money - and your organization can correct these reasons. Most leaving employees seek opportunities that allow them to use and develop their skills. Leaving employees want more meaning in

23

their work. They often indicate that they want to use their qualities and skills in challenging teamwork led by capable leaders. A range of reasons are, Selection of the wrong job. Lack of proper induction / orientation, creates frustration. Lack of future scope. Lack of promotion opportunity. Poor perception / relation with boss. Lack of career planning. Poor implementation of performance appraisal Lack of performance management system. Lack of pay for performance. Travel hazard, prefer close to home. High expectation of the employee. Prefer self employment. A flat organization, hence limited scope for progress. Lack of proper induction / orientation, creates frustration

SOURCE:

http://www.scribd.com/doc/20001877/Study-on-Attrition-Level-in-Ppp

24

2.19 HIGH ATTRITION RATE: A BIG CHALLENGE Introduction: In the best of worlds, employees would love their jobs, like their coworkers, work hard for their employers, get paid well for their work, have ample chances for advancement, and flexible schedules so they could attend to personal or family needs when necessary. And never leave. But then there's the real world. And in the real world, employees, do leave, either because they want more money, hate the working conditions, hate their coworkers, want a change, or because their spouse gets a dream job in another state. So, what does all that turnover cost? And what employees are likely to have the highest turnover? Who is likely to stay the longest? Background of article: The IT enabled services (BPO) industry is being looked upon as the next big employment generator (Nasscom predicts 1.1 million job requirement by the year 2008). It is however no easy task for an HR manager in this sector to bridge the ever increasing demand and supply gap of professionals. Unlike his software industry counterpart, the BPO HR manager is not only required to fulfill this responsibility, but also find the right kind of people who can keep pace with the unique work patterns in this industry. Adding to this is the issue of maintaining consistency in performance and keeping the motivation levels high, despite the monotonous work. The toughest concern for an HR manager is however the high attrition rate. In India, the average attrition rate in the BPO sector is approximately 30-35 percent. It is true that this is far less than the prevalent attrition rate in the US market (around 70 percent), but the challenge continues to be greater considering the recent growth of the industry in the country. The US BPO sector is estimated to be somewhere around three decades old. Keeping low attrition levels is a major challenge as the demand outstrips the supply of good agents by a big margin. Further, the salary growth plan for 25

each employee is not well defined. All this only encourages poaching by other companies who can offer a higher salary. The much hyped "work for fun" tag normally associated with the industry has in fact backfired, as many individuals (mostly fresh graduates), take it as a pas-time job. Once they join the sector and understand its requirements, they are taken aback by the long working hours and later monotony of the job starts setting in. This is the reason for the high attrition rate as many individuals are not able to take the pressures of work. The toughness of the job and timings is not adequately conveyed. Besides the induction and project training, not much investment has been done to evolve a "continuous training program" for the agents. Motivational training is still to evolve in this industry. But, in all this, it is the HR manager who is expected to straighten things out and help individuals adjust to the real world. I believe that the new entrant needs to be made aware of the realistic situation from day-one itself, with the training session conducted in the nights, so that they get accustomed to things right at the beginning. The high percentage of females in the workforce (constituting 30-35 percent of the total), adds to the high attrition rate. Most women leave their job either after marriage or because of social pressures caused by irregular working hours in the industry. All this translates into huge losses for the company, which invests a lot of money in training them. If a person leaves after the training it costs the company about Rs 60,000. For a 300-seater call centre facing the normal 30 percent attrition, this translates into Rs 60 lakh per annum. Many experts are of believe that all these challenges can turn out to be a real dampener in the growth of this industry. This only raises the responsibility of "finding the right candidate" and building a "conducive work environment", which will be beneficial for the organization. The need is for those individuals who can make a career out of this. All this has induced the companies to take necessary steps, both internally and externally. Internally most HR managers are busy putting in efforts on the development of their employees, building innovative retention and motivational schemes (which was

26

more money oriented so far) and making the environment livelier. Outside, the focus is on creating awareness through seminars and going to campuses for recruitment. 2.20 MAJOR WORRIES FOR THE INDUSTRY:

Reckless Start-ups- a vast majority of the 310 start-ups are headed for a dead-end (according to Nasscom). Their capacity utilization is less than one of the three shifts. Many of these companies that converted their empty basements and warehouses into BPO units or firms with $10 million-20 million VC funds that ran out of cash without creating anything more than white elephants. They have driven down prices to grab business, but have failed to deliver. They were always clueless about people, processes or technologies- the three key elements of the BPO business.

Poor Infrastructure- the industry has more to worry about than just reckless startups. Primary among those is infrastructure. While telecom networks are state of the art, getting a connection still takes up to three months. Unreliable power supply is forcing units to create their own back-ups. Roads are bad and airports are in dire need of repairs and upgrades.

High Attrition-another major problem is the high attrition and growth aspirations of the workforce. At least 60,000 of the 171,000 workforce change jobs every year. About 80% of them look for better leaders. Team leaders want to upgrade to supervisors, quality professionals or operations heads. The HR problem threatens to soon become grave. Good agents are becoming hard to find and with tardy infrastructure, big moves to the much talked about smaller towns will take longer. This means costs will rise making it difficult for small VC-funded companies to survive.

27

Costs Due to a Person Leaving 1. Calculate the cost of the person(s) who fills in while the position is vacant. Calculate the cost of lost productivity at a minimum of 50% of the person's compensation and benefits cost for each week the position is vacant, even if there are people performing the work. Calculate the lost productivity at 100% if the position is completely vacant for any period of time. 2. Calculate the cost of conducting an exit interview to include the time of the person conducting the interview, the time of the person leaving, the administrative costs of stopping payroll, benefit deductions, benefit enrollments. 3. Calculate the cost of the manager who has to understand what work remains, and how to cover that work until a replacement is found. 4. Calculate the cost of training your company has invested in this employee who is leaving. 5. Calculate the impact on departmental productivity because the person is leaving. Who will pick up the work, whose work will suffer, what departmental deadlines will not be met or delivered late. 6. Calculate the cost of lost knowledge, skills and contacts that the person who is leaving is taking with them out of your door. Use a formula of 50% of the person's annual salary for one year of service, increasing each year of service by 10%. 7. Subtract the cost of the person who is leaving for the amount of time the position is vacant. Recruitment Costs 1. The cost of advertisements; agency costs; employee referral costs; internet posting costs. 2. 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

28

candidates. This can range from a minimum of 30 hours to over 100 hours per position. 3. Calculate the cost of the various candidate pre-employment tests to help assess a candidates' skills, abilities, aptitude, attitude, values and behaviors. Training Costs 1. Calculate the cost of orientation in terms of the new person's salary and the cost of the person who conducts the orientation. Also include the cost of orientation materials. 2. Calculate the cost of departmental training as the actual development and delivery 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. 3. Calculate the cost of the person(s) who conduct the training. 4. Calculate the cost of various training materials needed including company or 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, the company policies and practices, etc. they are not fully productive. Use the following guidelines to calculate the cost of this lost productivity: 1. Upon completion of whatever training is provided, the employee is contributing at a 25% productivity level for the first 2 - 4 weeks. The cost therefore is 75% of the new employees full salary during that time period. 2. 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. 3. 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.

29

4. Calculate the cost of mistakes the new employee makes during this elongated indoctrination period. New Hire Costs 1. Calculate the cost of bring the new person on board including the cost to put the person on the payroll, establish computer and security passwords and identification cards, telephone hookups, cost of establishing email accounts, or leasing other equipment such as cell phones, automobiles. 2. Calculate the cost of a manager's time spent developing trust and building confidence in the new employee's work. Lost Sales Costs 1. Calculate the revenue per employee by dividing total company revenue by the average 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 lost revenue by multiplying the number of weeks the position is vacant by the average weekly revenue per employee. Conclusion: 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 'rule of thumb' appears to be very inaccurate indeed and, while it depends upon the category of staff, it is probably better to estimate around 80% of salary as a truer rule of thumb - and this will be on the conservative side. What does this mean? Well it means that if a company has 100 people doing a certain job paid 25,000 and that turnover or attrition is running at 10%, the cost of attrition is:

30

(Total staff x attrition rate %) x (annual salary x 80%)

100 staff at 10% attrition means 10 people leave and are replaced each year. A replacement cost of 80% of a salary of 25,000 means the cost of each replacement is 20,000. The cost of turnover is therefore 10 x 20,000 or 200,000 a year. The on cost to the overall salary bill is 8%.

(Saving 8% of salary costs would make the average HR manager a hero.) SOURCE: By: Sanjeev Sharma Times News New York http://www.bpoindia.org/research/attrition-rate-big-challenge.shtml

31

CHAPTER 3 INDUSTRY & COMPANY PROFILE

32

3.1 INDUSTRY PROFILE: Business process outsourcing (BPO) is a form of outsourcing that involves the contracting of the operations and responsibilities of a specific business functions (or processes) to a third-party service provider. Business Process Outsourcing (BPO) is the delegation of one or more ITintensive business processes to an external provider that in turn owns, administers and manages the selected process based on defined and measurable performance criteria. BPO is typically categorized into back office outsourcing - which includes internal business functions such as Human resources or Finance and Accounting, and front office outsourcing - which includes customer-related services such as Contact center services. BPO that is contracted outside a company's country is called offshore outsourcing. BPO that is contracted to a company's neighboring (or nearby) country is called near shore outsourcing. Knowledge process outsourcing (KPO) and Legal process outsourcing (LPO) are some of the sub-segments of business process outsourcing industry. 3.1.1 INDUSTRY SIZE: India has revenues of 10.9 billion USD from offshore BPO and 30 billion USD from IT and total BPO (expected in FY 2008). India thus has some 5-6% share of the total BPO Industry, but a commanding 63% share of the offshore component. This 63% is a drop from the 70% offshore share that India enjoyed last year, despite the industry growing 38% in India last year, other locations like Eastern Europe, Philippines, Morocco, Egypt and South Africa have emerged to take a share of the market. China is also trying to grow from a very small base in this industry. However, while the BPO industry is expected to continue to grow in India, its market share of the offshore piece is expected to decline. Important centers in India are Bangalore, Hyderabad, Kolkata, Mumbai, Pune, Chennai and New Delhi. 33

According to McKinsey, the global "addressable" BPO market is worth $122 $154 billion, of which: 35-40 retail banking, 25-35 insurance, 10-12 travel/hospitality, 10-12 auto, 8-10 telecoms, 8 pharma, 10-15 others and 20-25 is finance, accounting and HR. Moreover, they estimate that 8% of that capacity was utilized as of 2006 3.1.2 Different Types of Services Being Offered By BPO's 1. Technical Support Services 2. Telemarketing Services 3. Employee IT Help-desk Services 4. Insurance Processing 5. Data Entry Services / Data Processing Services 6. Book Keeping and Accounting Services 7. Customer support services 3.1.3 Why people prefer to join BPO's? In general a person with any graduation can join any of the BPO. Some BPO's like to take people with MBA but then again the specialization are of an individual hardly makes any difference. Again, this is the industry, where there is no reference checks and very often people don't even specify there exact age. Lets me share with you some of the reasons as why people prefer to join a BPO: 1. Did not get a better job. 2. Find nothing better to do. 3. Education level doesn't matter 4. Good work environment 5. Good Benefits 6. Flexibility of time 7. Attractive life style 8. Transport facility

34

3.1.4 Why people leave the BPO's? When there are so many benefits associated with BPO industry.when there are so many privileges for the BPO employees than what makes them to change the company/industry?? Is it only MONEY that matters or anything else as well?? Here are some of the reasons for a BPO professional to change his/her job. 1. No growth opportunity/lack of promotion 2. For higher Salary 3. For Higher education 4. Misguidance by the company 5. Policies and procedures are not conducive 6. No personal life 7. Physical strains 8. Uneasy relationship with peers or managers 3.1.5 EVOLUTION OF BPO The evolution of Indian BPO industry: How the Indian BPO scene have changed over the years. From being a call center centric industry, the Indian BPO scene now covers a wide range of services, largely voiceless. In 1999, when the BPO boom had just taken off, voice-related services contributed to 85 per cent of the Indian BPO industry's share of business. Seven years down the line, voice accounts for just 35 per cent. Sunil Mehta, vice-president, Nasscom, the industry body for Indian IT and BPO companies, says "The services have moved from voice to non-voice like automotive design, insurance claim processes, and mortgage loans and so on." When BPOs started off in the 1990s, Indian BPOs offered many young graduates their first appointment letter. These fresh-out-of-college employees (called agents) were expected to call customers in the US or any European country to chase payments of credit 35

card defaulters. Otherwise, they received calls for troubleshooting --- issues ranged from PCs to Internet and travel services. But this low-cost advantage did not remain for long. As more and more Indian BPOs emerged, they started pitching in the same geographies (the US, the UK, Australia and so on) on the same "lower price" promise. The low-cost proposition was degenerating into a zero-sum game. So what's changed? From cost to consulting "Labour arbitrage used to be the main driver for outsourcing. Now the drivers are more business-related," says Ananda Mukerji, managing director and CEO, ICICI One Source. Simply put, BPOs are stepping in as advisors. And it's not just the BPOs who are claiming this change in function; even consultants agree. "Now BPOs are also becoming strategic partners of the client," says Kuchibhotla. Front is not the end It used to be that call centre agents were restricted to be being just the client's face (okay, voice) to the customer. But as BPOs realized, they were getting just a fraction of the outsourcing business from any single client. "Offering a platter of services enables BPOs to draw in bigger and better deals," explains a Delhi-based expert. Progeon, the Rs 379-crore BPO division of IT major Infosys, recently tied up with a mortgage company where Progeon offers end-to-end solutions, from the initial voice calls to managing monthly installments and even chasing loan defaulters.

36

3.2 COMPANY PROFILE Founded by Shri. Parmanand D. Hinduja in 1914, the Hinduja Group is a well known transactional business conglomerate with diversified operation in Banking, Finance, Transportation, Energy, Information Technology, Telecom, Infrastructure and Entertainment sectors. With billion dollar turnover, the Hinduja Group employs over 32,000 people spread over 90 countries.

3.2.1 Founders Principles

Work to Give ~ Work is Bond ~ Act Local; Think Global ~ Partnership for Growth ~ Advance Fearlessly

37

3.2.2 BRIEF PROFILE OF HGSL IT Division:Hinduja Global Solutions Ltd. (HGSL), one of Indias premiers IT houses, spearheads the Hinduja Groups efforts in the areas of Technology, Media and Telecommunications. HGSLs IT division has its delivery centers in Bangalore, Mumbai, Hyderabad, Chennai, Mauritius, Philippines, Canada and New Jersey and has marketing offices in USA, UK and France. It has world-class infrastructure in line with global standards of environment, resources and deliverables. Backed by a team of highly skilled IT professionals who deliver cutting edge, innovative solutions spanning a gamut of platform, technologies and domains, HGSL offers a complete range of end-to-end IT solutions. HGSL has large projects with multinational customers in various domains like Healthcare and Telecom, Banking and Insurance and Automotive/Manufacturing, and offers the following services:

3.2.3 BUSINESS PROCESS OUTSOURCING [IT ENABLED SERVIESITES]

Back Office Processing Processing of insurance claims; our clients include leading Healthcare Insurance Providers in the US and leading provider of claim reporting and customer Services in the US. Contact Center Operations Contact center solutions both inbound and outbound services; our clients include major telecom players leading healthcare insurance companies in the US.

38

Software services [it services-its] Systems Integration and Enterprise Application Services. Software Solutions and Consultancy Services. Engineering Design Services. Product Implementation. HGSL training academy The HGSL Training Academy was formed to meet the training needs of HGSL. Besides facilities provided for in-house training, the academy house HGSLs Mainframe Training Center, with a live IBM ES 9000 mainframe which allows students and corporate to work in a live environment. The center is situated in STPI, Electronics City. Interactive services group The interactive Services Group of HGSL, web and graphic design solution for a host of external clients, apart from servicing all Hinduja Group companies. 3.2.4 FRAMEWORK OF HGSL Customer relations: Customers are among our Companys most valuable assets. Every employees represents HGSL to our customers and the public. Nothing is more important than being courteous, friendly, helpful and prompt in the attention you give to customers. Our personal contact with the public, out manners on the telephone, and the communications we send to customers are a reflection not only of ourselves, but also of the professionalism of HGSL. Positive customer relations not only enhance the publics perception or image of HGSL, but also pay off in greater customer loyalty and increased business.

39

Employee relations: HGSL believes that the work conditions, salaries and benefits to its employees are competitive vis--vis that offered by other employers in this industry. It employees have concerns about work conditions or compensation; they are encouraged to voice these concerns openly and directly only to their supervisors and not discuss this in other forum. Our experience has shown that when employees deal openly and directly with supervisors, the work environment can be excellent, communications can be clear and attitudes can be positive. At HGSL, creating and developing human capital is at the heart of our value system. It is a fine balance of work and fun that motivates people to deliver total customer satisfaction. Business ethics and conduct: The successful business operations and reputation of HGSL is built upon the principles of fair dealing and ethical conduct of our employees. The continued success of HGSL is dependent upon our customers trust and confidence of the public. In general, the good judgment, based on high ethical principles, will guide you with respect to lines of acceptable conduct. If a situation arises where it is difficult to determine the proper course of action, the matter should be discussed openly with your immediate supervisor and, if necessary, with Human Resources Department for advice and consultation. Quality: We, at HGSL, shall continuously strive to build and nurture an organization where Customer satisfaction is the goal. Quality is the commitment. Process improvement is the norm. Team work is the spirit.

40

We take a top down approach to Quality where the commitment to quality begins right with the top Management which is manifested in our strong belief in doing things right the first time, on time, every time. Information security policy: Knowledge acquired, stored transferred and analyzed by HGSL will be safeguarded using adequate Security controls which will ensure confidentiality, integrity and availability of all such information as per laid down practices. All employees have to sign the End User Computing Policy document along with the Non Disclosure Agreement, which will be part of the joining formalities documentation. Open door policy: The Open Door Policy signifies open and honest communication among employees. Most concerns can be resolved with your superior. This is usually the best approach because issues are generally better understood and more easily resolved at the closest level of communication. If you do not feel comfortable discussing your concerns with your superior, you may bring your concerns to the attention of a HR representative, the Head of your Business Group or the CEO. Expressing your concerns through the Open Door is not a guarantee that you will agree with the ultimate solution. It is only to ensure that your suggestions and concerns will be heard and wherever applicable, addressed. Safety and housekeeping: Safety is everyones business. We need your help to ensure that your work place is and clean and that risks are minimized. In order to accomplish this goal, the Company has established the following safety requirements and housekeeping rules. These rules are not meant to be all-inclusive. We expect the employees to use their knowledge and exercise caution wherever necessary:

41

Know the location of and be able to use first aid, protection and safety equipment. Do not clean or make repairs or adjustments to computers or other equipment with out proper authorization. Report unsafe conditions and defective equipment immediately to your superior or the respective departments. Do not use equipment unless you have trained to do so. Do not lift the items that are too heavy for you. Keep your work area tidy. Ensure that you use the rest rooms hygienically. If you contract any contagious disease/s please inform your supervisor or HR Manager.

Harassment free workplace: HGSL is committed to providing a work environment that is free of discrimination, harassment and misconduct of any kind. Harassment includes verbal or physical conduct that insults or shows hostility or aversion towards an individual because of his of her race, color, religion, gender, national origin, age or disability, and that: Has the purpose or effect of creating an intimidating, hostile, or offensive working environment. Has the purpose or effect of unreasonably interfering, with an individuals work performance. Adversely affects an individuals work performance, or Otherwise adversely affects an individuals employment opportunities.

Misconduct is defined as that conduct for which an employee may be subjected to disciplinary action, which could also lead to termination.

42

Included are; Violation of written policies of the organization as specified in the employee handbook located on the network. Unauthorized absence. Insubordination\insolvent behavior. Abusive or threatening physical/ verbal acts against the management, colleagues or clients. Forgery, alteration, destruction or misuse of documents, records or any other material which is the property of organization.

If you ever feel there has been a harassment of any type mention above, you are responsible for bringing it to the attention of one of the following people: Your immediate superior Your Business Unit Head The HR Head

HGSL will not tolerate or condone any form of retaliation or reprisal against any employee who has made a good faith compliant of harassment or discrimination. All such claims will be investigated, and will be treated confidentially to the extent that confidentiality is consistent with a through investigation of the reported incident. Telephone: Personal telephone calls should be kept to a minimum. Dont use office phones for personal long distance calls. In case of emergencies, take your superiors permission and make the call.

43

Internet and e-mail: No e-mail messages/ internet records should be created or sent which may constitute intimidating, national origin of disability. Abuse of the e-mail or Internet systems will result in disciplinary action. HGSL reserves the right to monitor these systems to ensure they are being used for appropriate purposes only. Confidentiality: Our major assets besides people and physical assets include confidential data, reports, technology, and expertise in software- related areas, R&D activities and Market & Business plans. We expect you to refrain from divulging information of any sort that would impair the competitive position of HGSL. Protecting these against theft and misuse is the responsibility of every employee. Fulltime employment: Your employment at HGSL is full time. Refrain from taking up additional part time/full time employment, or engaging in any other/trade / business/profession. Any such activity should be pursued only after discussing and obtaining written permission of the Management. Joining formalities: A consolidated set of joining papers including a bank account opening from will provided to you. Please keep a note of the details provided by you in terms of nominees for Provident Fund and Dependants for Medical Insurance, for your personal reference. You will need submit copies of all educational certificates, proof of age, 8 passport size photographs, relieving letters from the previous employer, details of blood group and a copy of your passport along with the joining papers. It is your responsibility to keep the organization informed of any change in your residential address or residence phone number. Also let us know is any specific emergency contact information.

44

Working hours and attendance: All Call Center and Bank Office Employees will work as per their project schedules. Your colleagues depend on your attendance and punctuality, as do our clients. Being on time is not just an organizational requirement, but also a reflection of our regard for discipline and punctuality. Attendance tracking: An electronic time and attendance recording systems has been installed at the main entrance of the Company building on the ground floor. To mark your attendance, it is mandatory to flash your ID card when entering and leaving the office. If you attend the training within the premises of HGSL you will flash ID card at the entrance and also sign the attendance record collected in the training room. For training conducted outside HGSL premises attendance records will be collected from the respective training agency. Career development for employees: When an employee joins the organization, HGSL assesses the employees and feeds information into the skills database in the areas of interests, skills, educational preference and leisure activities to aid in career planning. Multiple avenues for career progression Linear Plan- This is for employees who are driven by motives such as power and achievement which will help them move in an upward direction within the organization. Expert Plan- This plan is for individuals who are keen on advancing their expertise in ones chosen field on the assumption that they are motivated by expertise, technical competence and security. Career management philosophy: HGSL believes in the capability of its home grown talent, primarily because of their understanding processes and exposure to the existing systems and procedures. As a philosophy, HGSLs endeavor to fill positions through internal growth, and external 45

search will only be done in instances in which it is unable to fill positions through internal growth. Career progression will be based purely on performance and NOT on number of years of experience and seniority in the organization. Performance management system: The Performance Management System at HGSL believes in recognizing achievements, developing skills and fostering better performance. The system not only looks at how an individual employee performs against his/her goals, but also how hw/she does his/her job. The framework covers the Knowledge, skills, behavior and attributes required to successfully accomplish a job. Training: Employees will go through all training specified by the organization, the duration of which the shall be extended or shortened based on the business needs. During training HGSL reserves the right to drop a person from the rolls of the organization based on poor performance or for any other misconduct which includes, but is no restricted to absenting from training without prior permission. At the discretions of the company, employees may be required to sign a bond at the time of commencement of certain training. For training overseas, the service commitment duration would be period of two years irrespective of the duration of training. The recoveries of cost and service commitment are not negotiable. HGSL reserves the right to forgo the recovery of cost and reduce or waive the service commitment at its sole discretion. Rewards & recognition: HGSL believes that motivated employees are the strength of the organization. We understand that employees are intrinsically motivated to do their jobs well, but we also think any encouragement and more so a reward given at the right will go a long way.

46

We have awards like: The individual Excellence Award The leadership Excellence Award The super Trooper Award The Referral Award Further, a special rewards & Recognition scheme has been instituted for ITES employees: Hall of Fame Award Top Gun ward Champion/Challenger Team Award Customer Recognition Award Leadership Excellence Award Best Buddy Award Busy Bee Award Ekalavya Award Dronacharya Award Eureka Award In addition, the company encourages excellence in performance through periodic departmental award. Salary: Salary is remitted to your Bank account on the last working day of every month. Any discrepancies in the salary should be intimated to our HR Department immediately, so that correction can be incorporated in the subsequent month. For employees joining

47

our services on or after the 20th of any month, pro-rata for salary for that month will be paid along with the subsequent months salary. Please ensure that all investment details necessary for computation of income Tax are sent to our Finance Department within the specified time limit. The Income Tax deduction amount indicated on the pay slip is based on declaration of investments made by the employees and the statutory provisions. Transportation: HGSL provide transport to all employees who work in shifts for the BPO and the Call center operations. Transportation cost is absorbed by the company. Employees can opt for office transport by contacting the officer concerned at the Administration department. Please observe the following: Do not have the van make unscheduled stops Do not divert the van from its normal route Do not instigate the driver to increase speed Do not delay the van-arrive at your pick up point in advance. Emergency evacuation procedures: In case of an emergency in the building, you will be altered to evacuate the building; you will be alerted to evacuate the building either through the public address system or an alarm activated by hooters. Every wing will have an evacuation team member who will make sure that all the employees go out of the building through a designated fire exit within 3 minutes.

48

3.2.5 Recognition and awards: Industry recognition:

49

Quality certification:

ISO 9001:2000-UKAS

ISO 9001:2000-ANAB

ISO 27001

HIPAA- Health Insurance

Six Sigma Process Improvement

ISO 27001- Certified

SAS 70

50

3.3 ATTRITION MANAGEMENT IN HGSL 3.3.1 TERMINATION AND ABSCONDERS ACTION PROCESS IN HGSL HR Receives E-Mail from the operations regarding absconding/termination cases. In this absconders and terminations will have different processes. ABSCONDERS ACTION PROCESS: 1. After HR receiving mail from operations they will inform WFM (Work Force Management) to un-roster. 2. Then HR will send warning letter to the employee on the 3rd day. 3. If the employee turns back then HR will verify the reason and found ok, employee will join back. 4. If the employee will not return then HR will send termination letter on the 10 th day. 5. Finally, employee is triggered in GIS on 10th day and will be sent for F&F (Full and Final) process. TERMINATION ACTION PROCESS: Termination is done if employee doesnt go according to companys policies i.e., if the employee violates the rules and regulations that must be followed by him. 1. After HR receiving mail from the operations ER verifies and checks the status. 2. Then HR will accept termination and sent for F&F (Full and Final) process.

51

Update C om p & Ben;

E xit F orm alities done on Last W orki D ay

E R conducts exit interview

C R O s signed exit sheets are retaine

52

3.3.2 ATTRITION CALCULATIONS IN HGSL Formulae: 1. Monthly Attrition:

No. of Separations __________________________________________________ *100 Headcount (Beginning of month + End of month)/2

2. YDT (Year to Date) Attrition: Example of YDT in June

Separations (April+May+June) __________________________________________________________________________* 100 HC April (BOM + EOM) HC May (BOM + EOM) HC June (BOM + EOM) ______________________ + _____________________ + _____________________ 2 2 2 __________________________________________________________________________ 3 3. Annualized Attrition:

Example in June
Separations (April+May+June)
__________________________________________________________________________*100*(12/3)

HC April (BOM + EOM)

______________________ +

HC May (BOM + EOM)

_____________________ +

HC June (BOM + EOM)

_____________________

2 2 2 ____________________________________________________________________ 3

53

Attrition calculation during the year 09-10

April May June July August September October November December January February March

Manpowe r at BOM 1028 1156 1156 1065 1020 1045 1037 983 995 914 850 786

Manpowe r at EOM 1156 1156 1065 1020 1045 1037 983 995 914 850 786 794

Separations 133 133 226 359 115 474 84 558 125 683 137 820 109 929 106 1035 126 1161 84 1245 90 1335 86 1421

Average Manpower 1092 1156 1110.5 1042.5 1032.5 1041 1010 989 954.5 882 818 790

Monthly 12% 20%

AVG 1092 1124

YTD 12% 32% 42% 51% 63% 76% 87% 98% 111% 121% 132% 143%

ANNUALIZED 146% 192% 169% 152% 151% 152% 149% 147% 148% 145% 144% 143%

10% 1120 8% 1100 12% 1087 13% 1079 11% 1069 11% 1059 13% 1048 10% 1031 11% 1012 11% 993

54

Attrition calculation during the year 10-11

April May June

Manpowe r at BOM 794 736

Manpowe r at EOM 736 837

Separations 96 96 55 151 151

Average Manpower 756 786.5 0 0

Monthly 13% 7%

AVG 765 776

YTD 13% 19% 29% 39% 49% 58% 68% 78% 88% 97% 107% 117%

ANNUALIZED 151% 117% 117% 117% 117% 117% 117% 117% 117% 117% 117% 117%

#DIV/0! 517 #DIV/0! 388 #DIV/0! 310 #DIV/0! 259 #DIV/0! 222 #DIV/0! 194 #DIV/0! 172 #DIV/0! 155 #DIV/0! 141 #DIV/0! 129

July 151 August 151 September 151 October 151 November 151 December 151 January 151 February 151 March 151

0 0 0 0 0 0 0 0

55

CHAPTER 4 ANALYSIS & INTERPRETATION

ANALYSIS & INTERPRITATION 56

4.1 ANALYSIS USING PERCENTAGE METHOD 1. Classification of the respondents based on their GENDER S.No 1 2 Total Gender Male Female No. of respondents 44 16 60 Table 4.1.1
Gender

%of respondents 73 27 100

27% Male Female 73%

Chart 4.1.1 ANALYSIS: From the above table and chart it can be seen that 73% are male and 27% are female.

57

2. Classification of the respondents based on their AGE LEVEL S.No 1 2 3 4 Total Age 18 - 25 26 - 35 36 - 45 Above 45 No. of respondents 39 20 01 00 60 Table 4.1.2
Age

%of respondents 63 35 02 00 100

2% 33%

0% 18 - 25 26 - 35 36 - 45 65% above 45

Chart 4.1.2 ANALYSIS: From the above table and chart it can be seen that 65% respondents are in between the age group 18 25 while 33% respondents are in between 26- 35 and 2% are in between 36 45. There are no respondents above 45. INTERPRETATION: Hence, it can inferred that majority of ex-employees are in the age group of 18-25 .It can be concluded that more of young people are leaving HGSL.

58

3. Classification of the respondents based on their MARITAL STATUS S.No 1 2 Total Gender Male Female No. of respondents 14 46 60 Table 4.1.3 %of respondents 23 77 100

M arital Status

23%

Married Unmarried

77%

Chart 4.1.3 ANALYSIS: From the above table and chart it can be seen that 23% are married and 77% are unmarried

59

4. Classification of the respondents based on their EDUCATIONAL QUALIFICATION S.No 1 2 Educational No. of respondents Qualification Graduation 53 Post Graduation 07 Total 60 Table 4.1.4 %of respondents 88 12 100

Educational Qualification

12%

Graduation Post Graduation

88%

Chart 4.1.4 ANALYSIS: From the above table and chart it can be seen that 88% are graduates and 12% are post graduates.

5. Classification of the respondents based on their Years of Experience in HGSL 60

S.No 1 2 3

Years of Experience 0-2 3-5 Above 5 Years Total

No. of respondents 33 24 03 60 Table 4.1.5

%of respondents 55 40 05 100

Years of Experience

5%

0 - 2 Years 40% 55% 3 - 5 years Above 5 Years

Chart 4.1.5 ANALYSIS: From the above table and chart it can be seen that 55% are having 0 2 years of experience, 40% are having 3 5 years of experience and 5% are having above 5 years of experience. INTERPRETATION: It can be inferred that most of the employees doesnt have more than 5years of experience.

61

6. Classification of the respondents based on their experience in HGSL S.No 1 2 3 4 Experience in HGSL Excellent Very Good Good Not so Good Total No. of respondents 04 08 40 08 60 Table 4.1.6
Experience

%of respondents 07 13 67 13 100

13%

7% 13% Excellent Very Good Good Not so good

67%

Chart 4.1.6 ANALYSIS: From the above table and chart it can be seen that 7% of the respondents are having excellent experience, 13% of the respondents are having very good experience, 67% of the respondents are having good experience and 13% of the respondents are not satisfied. INTERPRETATION: It can be inferred that experience with HGSL was good.

62

7. Classification of the respondents based on their interest to JOIN AGAIN IN HGSL S.No 1 2 3 4 Interested to join again in HGSL Yes Cannot Say Think Over Not at all Total No. of respondents 06 20 25 09 60 Table 4.1.7
Interest to Join Again in HGSL

%of respondents 10 33 42 15 100

15%

10%

Yes Cannot Say 33% Think Over Not at all 42%

Chart 4.1.7 ANALYSIS: From the above table and chart it can be seen that 10% are willing to join if given a chance, 33% cannot decide, 42% will think about it and 9% are not interested to join again if given chance. INTERPRETATION: It can be inferred that if given a chance again employees are not interested to work with HGSL.

63

8. Classification of the respondents based on their DISSATISFACTION FACTOR

S.No 1 2 3 4 5

Dissatisfaction Factor Work Pressure Work Environment Shits Pay Structure Interpersonal Relationships Total Table 4.1.8
Dissatisfying Factors

No. of respondents 05 10 15 25 05 60

%of respondents 08 17 25 42 08 100

8%

8% 17%

Work Pressure Work Environment Shifts

42% 25%

Pay Structure Interpersonal Relationships

Chart 4.1.8 ANALYSIS: The above table and chart shows regarding dissatisfaction factors that, 8% are having work pressure, 17% are not satisfied with the environment, 25% are satisfied with shits, 42% are with pay structure while 8% are not satisfied with interpersonal relationships. INTERPRETATION: It can inferred that pay structure is the most dissatisfying factor.

64

9. Classification of the respondents based on their MAIN REASON for leaving HGSL

S.No 1 2 3 4 5

Reason Health Conditions Family Issues Career Growth Monetary Benefits Higher Education Total Table 4.1.9
Reasons

No. of respondents 14 10 15 10 11 60

%of respondents 23 17 25 17 18 100

18%

23% Health Conditions Family Issues Career Growth 17% Monetary Benefits Higher Education

17%

25%

Chart 4.1.9 ANALYSIS: The above table and chart shows regarding main reason for leaving job that, 23% are having health problems, 17% are having family issues, 25% of them for career growth,17% are for their monetary benefits, while 18% of them for higher education. INTERPRETATION: It can be inferred that career growth is the main reason for leaving the job.

65

10. Classification of respondents based on their FREEDOM TO CONVEY PROBLEMS S.No 1 2 Total Freedom Yes No No. of respondents 45 15 60 Table 4.1.10
Freedom to Convey Problems

%of respondents 75 25 100

25%

Yes No

75%

Chart 4.1.10 ANALYSIS: The above table and chart shows regarding their freedom to convey problems that, 75% of the respondents say that there is freedom to convey wile 25% so no. INTERPRETATION: It can be inferred that problems can be easily solved.

11. Classification of respondents on PROMOTIONS BASED ON THEIR SKILLS. 66

S.No 1 2

Promotions Yes No Total

No. of respondents 40 20 60 Table 4.1.11

%of respondents 67 33 100

Promotions

33% Yes No 67%

Chart 4.1.11 ANALYSIS: The above table and chart shows regarding promotion that, 33% of the respondents say yes and 67% of the respondents say no. INTERPRETATION: It can be inferred that promotions are given based on skills.

12. Classification of respondents based on their TRAVELLING FACILITIES 67

S.No 1 2 3 4 5

Level of Attitude Highly Satisfied Moderately Satisfied Neutral Moderately Dissatisfied Highly Dissatisfied Total Table 4.1.12
Travelling Facilities

No. of respondents 00 07 40 08 05 60

%of respondents 00 12 67 13 08 100

8% 0% 13%

12% Highly Satisfied Moderately Satisfied Neutral Moderately Dissatisfies Highly Dissatisfied 67%

Chart 4.1.12 ANALYSIS: The above table and chart shows regarding traveling facilities that, 12% of the respondents are moderately satisfied, 67% of the respondents are neutral, 13% of the respondents are moderately dissatisfied and 8% of the respondents are highly dissatisfied. INTERPRETATION: It can be inferred that there is no proper cab facility.

13. Classification of respondents based on their RECREATIONAL FACILITIES 68

S.No 1 2 3 4 5

Level of Attitude Highly Satisfied Moderately Satisfied Neutral Moderately Dissatisfied Highly Dissatisfied Total Table 4.1.13
Recreational Facilities
0% 10% 0% 28%

No. of respondents 17 37 06 00 00 60

%of respondents 28 62 10 00 00 100

Highly Satisfied Moderately Satisfied Neutral Moderately Dissatisfies Highly Dissatisfied

62%

Chart 4.1.13 ANALYSIS: The above table and chart shows regarding recreational facilities that, 28% of the respondents are highly satisfied, 62% of the respondents are moderately satisfied and 10% of the respondents are neutral. INTERPRETATION: It can be inferred that employees can be relieved from stress through recreational facilities.

14. Classification of respondents based on their JOB STRESS 69

S.No 1 2 3 4 5

Level of Attitude Strongly Agree Agree Neutral Disagree Strongly Disagree Total Table 4.1.14

No. of respondents 04 38 15 03 00 60

%of respondents 07 63 25 05 00 100

Job Stress
0% 5% 25% 7% Strongly Agree Agree Neutral Disagree Strongly Disagree 63%

Chart 4.1.14 ANALYSIS: The above table and chart shows regarding job stress that, 7% of the respondents highly agrees, 63% of the respondents agrees, 25% of the respondents are neutral and 5% of the respondents disagree. INTERPRETATION: It can be inferred that employees agree that they have stress.

15. Classification of the respondents based on their MOTIVATION 70

S.No 1 2 3 4 5

Level of Attitude Highly Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied Total Table 4.1.15
M otivation

No. of respondents 06 15 13 21 05 60

%of respondents 10 25 22 35 08 100

8%

10% Highly Satisfied 25% Satisfied Neutral Dissatisfies Highly Dissatisfied 22%

35%

Chart 4.1.15 ANALYSIS: The above table and chart shows regarding motivation that, 10% of the respondents are highly satisfied, 25% of the respondents are satisfied, 22% of the respondents are neutral, 35% of the respondents are dissatisfied while 8% of the respondents are highly dissatisfied. INTERPRETATION: It can be inferred that employees are not motivated.

16. Classification of respondents based on their APPRAISAL 71

S.No 1 2 3 4 5

Level of Attitude Highly Agree Agree Neutral Disagree Highly Disagree Total Table 4.1.16
Appraisal

No. of respondents 03 09 14 12 22 60

%of respondents 05 15 23 20 37 100

5% 15% 37% Highly Satisfied Satisfied Neutral 23% 20% Dissatisfies Highly Dissatisfied

Chart 4.1.16 ANALYSIS: The above table and chart shows regarding appraisal that, 5% of the respondents are highly satisfied, 15% of the respondents are satisfied, 23% of the respondents are neutral, 20% of the respondents are dissatisfied while 375 of the respondents are highly dissatisfied. INTERPRETATION: It can be inferred that there is poor appraisal system.

72

17. Classification of the respondents based on their BASIC NEEDS

S.No 1 2 3 4 5

Level of Attitude Highly Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied Total Table 4.1.17
Basic Needs
0% 5% 3%

No. of respondents 02 22 33 03 00 60

%of respondents 03 37 55 05 08 100

Highly Satisfied 37% Satisfied Neutral Dissatisfies 55% Highly Dissatisfied

Chart 4.1.17 ANALYSIS: The above table and chart shows regarding basic needs that, 3% of the respondents are highly satisfied, 37% of the respondents are satisfied, 55% of the respondents are neutral while 5% of the respondents are dissatisfied. INTERPRETATION: It can be inferred that basic needs are satisfactory. 18. Classification of the respondents based on their NATURE OF JOB 73

S.No 1 2 3 4 5

Level of Attitude Highly Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied Total Table 4.1.18
Natur of Job

No. of respondents 05 14 36 04 01 60

%of respondents 08 23 60 07 02 100

7% 2% 8% Highly Satisfied Satisfied Neutral Dissatisfies Highly Dissatisfied 60%

23%

Chart 4.1.18 ANALYSIS: The above table and chart shows regarding nature of job that, 8% of the respondents are highly satisfied, 23% of the respondents are satisfied, 60% of the respondents are neutral, 7% of the respondents are dissatisfied while 2% of the respondents are highly dissatisfied. INTERPRETATION: It can be inferred that the job nature is satisfactory.

19. Classification of the respondents based on their RATING ON HGSL WHILE TALKING TO THEIR FRIENDS. 74

S.No 1 2 3 4

Rating Excellent Very Good Good Not so Good Total

No. of respondents 04 18 35 03 60 Table 4.1.19

%of respondents 07 30 58 05 100

Rating on HGSL

5%

7%

Excellent 30% Very Good Good 58% Not so Good

Chart 4.1.19 ANALYSIS: The above table and chart shows regarding the rating of respondents on HGSL that, 7% of the respondents feel excellent, 30% of the respondents feel very good, 58% of the respondents feel good while 5% of the respondents feel not so good. INPRETATION: It can be inferred that most of the employees rate good for HGSL.

20. Classification of respondents based on their INTERNAL REASON

75

S.No 1 2 3 4 5

Internal Reason Poor Appraisal System Lack of Tanning Work Pressure Lack of Career growth & Development Working Space Total Table 4.1.20
Internal Reason

No. of respondents 14 05 25 14 02 60

%of respondents 23 08 42 23 04 100

4% 23% 23%

Poor Appraisal System Lack of Training Work Pressure

8% Lack of Career growth & Development Working Space 42%

Chart 4.1.20 ANALYSIS: The above table and chart shows regarding the internal reason of leaving the organization that, 23% of the respondents due to poor appraisal system, 8% of the respondents are due to lack of training, 42% of the respondents are due to work pressure, 23% of the respondents are due to lack of career growth and development while 4% are of the respondents are due to working space. INTERPRETATION: It can be inferred that work pressure is the internal reason for leaving the job. 21. Classification of the respondents based on their EFFECTIVENESS OF TRAINING PROGRAM DURING INDUCTION. 76

S.No 1 2 3 4 5

Level of Attitude Strongly Agree Agree Neutral Disagree Strongly Disagree Total Table 4.1.21
Effective Training program

No. of respondents 02 25 25 03 05 60

%of respondents 03 42 42 05 08 100

5%

8%

3% Strongly Agree Agree 42% Neutral Disagree Strongly Disagree

42%

Chart 4.1.21 ANALYSIS: The above table and chart shows regarding the effectiveness of the training program that, 2% of the respondents strongly agree, 42% of the respondents agree, 42% of the respondents are neutral, 5% of the respondents disagree while 8% of the respondents strongly disagree. INTERPRETATION: It can be inferred that the training program is effective. 22. Classification of the respondents based on their LEVEL OF SATISFACTION WITH SALARY. S.No Salary No. of respondents 77 %of respondents

1 2 Total

Yes No Table 4.1.22

Salary

10 50 60

17 83 100

17%

Yes No

83%

Chart 4.1.22 ANALYSIS: The above table and chart shows regarding salary that, 17% of the respondents are satisfied with the salary while 83% of the respondents are not satisfied. INTERPRETATION: It can be inferred that salary is the dissatisfying factor.

23. Classification of the respondents based on their CAREER GROWTH

78

S.No 1 2 3 4 5

Career Growth Excellent Very Good Satisfactory Not so Good Poor Total Table 4.1.23
Career Growth

No. of respondents 01 02 24 31 02 60

%of respondents 02 03 40 52 03 100

3%

2% 3% Excellent Very Good 40% Satisfactory Not so Good Poor

52%

Chart 4.1.23 ANALYSIS: The above table and chart shows regarding the career growth that, 2 of the respondents say excellent, 3% of the respondents say very good, 40% of the respondents say satisfactory,52% of the respondents say not so good while 3% of the respondents say poor. INTERPRETATION: It can be inferred that there is no career growth.

24. Classification of the respondents based on their REWARDS AND BENEFITS FOR BETTER PERFORMANCE 79

S.No 1 2

Benefits & Rewards Yes No Total

No. of respondents 25 35 60

%of respondents 42 58 100

Table 4.1.24
Rewards and Benefits

42%

Yes No

58%

Chart 4.1.24 ANALYSIS: The above table and chart shows regarding the rewards and benefits that, 42% of the respondents say yes while 58% respondents say no. INTERPRETATION: It can be inferred that there are no rewards and benefits provided for the employees.

80

25. Classification of the respondents based on their SATISFACTORY LEVEL ON 4 POINT SCALE

S.No 1 2 3 4

Satisfactory Level Excellent Good Average Poor Total

No. of respondents 06 26 24 04 60 Table 4.1.25

%of respondents 10 43 40 07 100

Satisfactory Level

7%

10%

Excellent Good 40% 43% Average Poor

Chart 4.1.25 ANALYSIS: The above table and chart shows regarding the satisfactory level that, 10% of the respondents say excellent, 43% of the respondents say good, 40% of the respondents say average while 7% of the respondents say poor. INPRETATION: It can be inferred that rating on HGSL is good.

81

5.2 ANALYSIS USING WEIGHTED AVERAGE METHOD The respondents are asked about some factors listed below in the organization. Their level of attitude for those factors is calculated below.

Factors Motivation Appraisal Basic Needs Nature of Job

Highly Satisfied 6 3 2 5

Satisfied 15 9 20 14

Neutral 13 14 33 36

Dissatisfied 21 12 3 4

Highly Dissatisfied 5 22 2 1

Table 4.2.1 Point Weightage Factors Motivation Appraisal Basic Needs Nature of Job 5 Highly Satisfied 30 15 10 25 4 Satisfied 60 36 80 56 3 2 1 AVG 35.2 27.8 39.4 39.6 Rank 3 4 2 1

Neutral Dissatisfied Highly Total Dissatisfied 39 42 05 176 42 99 108 24 06 08 22 02 01 139 197 198

Table 4.2.2

82

ANALYSIS: The above table infers that the company gives more weightage First to the job nature of employees, Second to the basic needs, Third to motivation and Finally to the appraisal factor.

INTERPRETATION: This shows that the employees are very much satisfied with their job nature and they tend to retain in the same company.

83

4.4 ANALYSIS USING RANK CORRELATION METHOD: Relationship of employees promotions with their salary satisfaction. Let X be the Promotions based on skills Let Y be the satisfaction level of Salary

S.No 1 2

Factors Promotion based on skills (X) Salary Satisfaction (Y)

Yes 40 10

No 10 50

Table 4.4.1

S.No 1 2

Rank of X 1 2

Rank of Y 2 1

Di2= (Xi-Yi)2 1 1 2

Total (Xi-Yi)2

Table 4.4.2 Formula, 6di2 r = 1- ___________ n (n2-1)

84

By substituting data to the formula, 6*2 r = 1- ___________ 2 (22-1)

r = -1

ANALYSIS: The value obtained is in negative, where it infers that a change in one variable has an opposite change in another variable. INFERENCE: From the correlation analysis it is inferred that, even though promotions are given but there is no salary hike.

85

CHAPTER 5 SUMMARY & CONCLUSIONS

86

FINDINGS, SUGGESTIONS AND CONCLUSION

5.1 FINDINGS: Majority of the ex- employees belong to the male category. It can be concluded that more of male employees are leaving the organization. Majority of the ex- employees are in the age group of less than 35 years. It can be concluded that more of young employees are leaving HGSL. Majority of the ex-employees are graduates. Majority of the ex-employees are unmarried. Majority of the ex-employees are having below 5 years of experience. Majority of the ex-employees have good experience with HGSL. Majority of the ex-employees do not consider working for HGSL in the future. Domestic problem is the primary reason for leaving HGSL. Pay structure is the most dissatisfying aspect with respect to job at HGSL. The main reason for the people leaving the organization is career growth. Majority of the ex-employees have a good relationship with the supervisor. 87

 There is freedom to convey your problems to top level management. The promotions in HGSL are skill based. HGSL provides adequate recreational facilities for the employees. Majority of the ex-employees are not satisfied with the transportation facilities provided by HGSL. There is more workload at HGSL. It can be concluded that more workload can cause stress among the employees. There is a lack of chances for advancement at HGSL. Majority of the ex-employees agree there is job stress. It can be concluded that due to presence of job stress employees discontinue working with the company. Majority of the ex-employees disagree with the statement that HGSL provides attractive rewards and benefits. Majority of the ex-employees ranked satisfaction level in HGSL as good. Majority of the ex-employees were dissatisfied with the motivation factor in HGSL. There in no proper appraisal system to appraise the employees in HGSL. Employees in HGSL have good interpersonal relations among themselves and with the superiors. Majority of the ex-employees disagree there is high quality training facilities with HGSL. Majority of the ex-employees were not satisfied with the salary in HGSL. Majority of the ex-employees ranked work pressure as the prime factor that makes the employee to leave at HGSL. 88

 Majority of the staffs strongly agree there is high attrition at HSGL. Majority of the staffs agree that attrition has a high impact on the profitability of the company. HGSL makes good effort to retain employees. There is strong employee retention plan and activities. It can be concluded that retention plan and activities in HGSL helped in controlling the attrition among the workers. Counseling is more effective in the employee support program. It can be presumed that counseling plays a major role in reducing stress among the employees.

89

5.2 CONCLUSION:

Attrition is considered to be one of the biggest challenges of all industries. The study revealed that attrition not only affects the production but also represents significant costs to the organization. Most employees leave their work for reasons other than money i.e., they give importance to factors like working condition, job satisfaction, and job stress and also for the opportunities that allow them to use and develop their skills. This research throws light into the fact that when attrition is high, productivity as well as profitability gets affected. Thus adequate measures should be taken to delve deep into the problems faced by employees and try to resolve them. Identifying the problems and dealing with them in a relevant manner will help HGSL to overcome the problems of attrition. High salaries, better financial and health benefits, perks and development opportunities can also go a long way in arresting attrition. To conclude I would like to say that organizations should improve employee morale; maintain a competitive edge; listen to employee ideas; never ridicule them. Offer performance feedback and praise good efforts and results. Implement organizational culture measurement tools. Recognize and celebrate their success. Communicate goals, roles and responsibilities

90

5.3 SUGGESTIONS: Salaries, health benefits, working environment and development opportunities should be more competitive based on the organizational financial position. Very few employees are comfortable with their present salary. Majority of them has the opinion that low salary is their problem in their organization. So the company is suggested to provide salary, which satisfies its employees at least to some extent. Many employees suggest improving working environment and employee motivation in the survey. So the company should give attention to the factors which it can improve itself internally. Even though the employees are satisfied with their job nature, it is identified in the study that many employees prefer to change their job due to lack in their growth opportunities in their job. So the company can look for some Innovative technologies to decrease their attrition level by providing growth opportunities. Hiring candidates with the right job qualifications and behavioral competencies will improve the chances for a better job fit and thus enhance productivity.. Establish a Human Resource Interaction Feedback system for regular interaction and honest feedback from the employees. Each employee must be made aware about career planning and development so that they aim to achieve greater heights. Provide recognition to employees by congratulating them for doing their job well. This will lead to a better job satisfaction and to increase their confidence. 91

 Improve working condition, transportation and Recreational facilities. There should be ample emphasis on training, induction, career development, counseling mentoring and coaching.

BIBILIOGRAPHY & APPENDICES

92

BIBILIOGRAPHY

BIBILIOGRAPHY

Books: Gupta, S.P., Statistical Methods, New Delhi, Sultan Chand & Sons Publishers, Thirty Fourth Edition, 2005 Kothari, C.R., Research Methodology - Methods & Techniques , New Delhi, New Age international (P) Ltd., Publishers, Second Edition,2004. Internet: http://www.scribd.com/doc/20001877/Study-on-Attrition-Level-in-Ppp http://www.hindujagsl.com/ http://www.attrition.org/attrition/about.html

Article: By - Sanjeev Sharma High Attrition Rate: A Big Challenge http://www.bpoindia.org/research/attrition-rate-big-challenge.shtml

93

APPENDICES
A STUDY ON ATTRITION LEVEL IN HINDUJA GLOBAL SOLUTIONS _______________________________________________________________________ _ PERSONAL DATA: 1. Name: 2. Designation: 3. Gender: 4. Age: a) 18 -25 b) 26 35 a) Married c) 36 -45 d) above 45

5. Marital status:

b) Unmarried

6. Educational Qualification: a) Graduation b) Post graduation 7. Years of Experience in HGSL: a) 0 2 years b) 3 5 years c) Above 5 years _______________________________________________________________________ _ 8. How was your experience in HGSL?
Excellent Very Good Good Not so good

9. Are you interested to work again if given chance?

Yes Cannot say Think over Not at all

10. Which of the following makes you dissatisfied?

Work pressure Working environment Shifts Pay Interpersonal structure relationships

94

11. For which reason, you prefer to change the job?

Health condition s Family issues Career Growth Monetary benefits Higher Education

12. Do you have any freedom to convey your problems to top level management?
YES NO

13. Whether promotion is given based on the skills?

YES NO

14. Were you comfortable with traveling facilities available in the organization?
Highly satisfied Moderately satisfied Neutral Moderately dissatisfied Highly dissatisfied

15. How are the Recreation facilities at HGSL?

Highly satisfied Moderately satisfied Neutral Moderately dissatisfied Highly dissatisfied

16. Job Stress?

Highly Agree Agree Neutral Disagree Highly Disagree

17. Rate the following factors: Highly Satisfied Motivation Appraisal Basic Needs Nature Of Job 18. How do rate HGSL when talking to friends. 95 Satisfied Neutral Dissatisfied Highly Dissatisfied

Excellent Very Good

Good

Not so good

19. The internal reasons for employees leaving organization are:a) Poor appraisal system c) Work pressure e) Working Space 20. Was the training program effective at the time of induction?
Strongly agree

b) Lack of training d) Lack of career growth & development

Agree

Neutral

Disagree

Strongly disagree

21. Are you satisfied with your salary?

YES NO

22. How is the career growth in the organization?

Excellent Very Good Satisfactory Not so good Bad

23. Are there any rewards and benefits provided for better performance?
YES NO

24. Can you rate your satisfaction levels in the organization in a four point scale?
a. 1 b. 2 c. 3 d. 4

1 (Excellent), 2 (Good), 3 (Average), 4(Poor) 25. Any other information or suggestions, you would like to share pertaining to the above questions.

96

Thank You!!!

97