A Study On Employee Attrition And Retention In Corporate Sector
Attrition is a critical issue in corporate sectors these days."Attrition is said to be the gradual reduction in the number of employees through retirement, resignation or death. It can also be said as Employee Turnover or Employee Defection" So, the organization loses key players, knowledge and business bondings. Managers and personnel administrators are greatly interested in reducing Attrition in the organization, in such a way that it will contribute to the maximum effectiveness, growth, and progress of any sector. Retaining employees ongoing effort in any organization. One of the biggest factor is having managers in the right place who understands their responsibility to create and maintain a good working environment. Employees requires defined direction and recognition to uplift themselves and remain satisfied in their positions. Managers must recognize and understand in establishing fundamentals that demonstrates their objectives or goals to support and motivate their employees. The main objective of the study is to know why attrition occurs, to identify the factors which make employees unencouraged and a feeling of disfactory, to know the expectation and dedication level of employees towards their job and working conditions and to find the lagging of IT SECTORS at ITPL BANGALORE KARNATAKA Keyword: Attrition, Retention, Managers and organization A STUDY ON EMPLOYEE ATTRITION AND RETENTION IN CORPORATE SECTORS Corporate companies in India face a formidable challenge of recruiting and retaining talent employees and at the same time having to manage employee loss through attrition be that due to company downturns or by voluntary individual turnover. Losing talents and employees result in performance losses which can have long term negative effect on companies especially if the departing talent leaves gaps in its execution capability and human resource functioning which not only includes lost productivity but also possibly loss of work team harmony and social well being. Attrition rates being a bane of every sector, companies are planning innovative business methods for effective retention of employees. There are a lot of factors responsible for attrition and employers are getting increasingly conscious of the factors that can keep an employee committed. Attrition may be defined as gradual reduction of personnel as through retirement, resignation or death. This also includes both voluntary and involuntary separation. Attrition rates vary from sector to sector. Apart from the unavoidable ones like resignation, retirement, death or disability, the causes are found to be due to many other factors. They vary according to the nature of business, the level of the employees and the nature of the responsibility International Journal of Engineering Research And Advanced Technology (IJERAT) ISSN: 2454 6135 [Special Volume. 02 Issue.01, May 2016] Publication Impact Factor (PIF) :1.026 www.sretechjournal.org 118 assigned to them. The main reasons are the 'ergonomic discomfort' experienced by the employee and the 'functional incompatibility' between the corporate management and the employees. Very often it's found that an employee finds difficult to cope up with his colleagues and his project managers. Due to which he finds difficult to meet the employees requirements and employer's expectations. Another important reason is that the employee's remuneration is not voluminous enough to bear the brunt and cushion the concussions of his family and social life. Employee retention defines the policies and practices that the companies use to prevent valuable employees from leaving their company. How to retain valuable employees is one of the biggest problem that the companies in the competitive market face. Nowadays, companies often spend considerable time, effort, and money to train an employee according to their requirements and needs. Employees need to be retained because good, faithful, trained and hardworking employees are required to achieve companies goals and milestones within the specified time. Employee's good product knowledge over the long run can handle customers better and also solve problems that are related within the team or organization. When an employee leaves the company there are possibilities that he takes away all information related to ongoing projects, etc. Due to more employee turnover rate the pleasant working environment of the company is hampered and the competitors attempt to recruit best talents or prompt working employees from them. Working efficiency of the employee is also disturbed. Let's consider an example If an employee leaves in the middle of an ongoing project it becomes very difficult for the company to fill that gap and a new employee can never replace an old and talented employee so this leads to delay in completion of projects and less work satisfaction among the team members. ABOUT ITPL OF BANGALORE Whitefield, Bangalore, 18 km from the city centre. It is managed by Ascendas. It includes the 450,000 square foot Park Square Mall, several sporting arenas and the Vivanta by Taj hotel. It is the oldest tech park of Bengaluru. It is located in Whitefield cluster. It was created as a result of a joint venture between India and Singapore in January 1994. It is a large facility, comprising 9 buildings Discoverer, Innovator, Creator, Explorer, Inventor, Navigator, Voyager and Aviator plus a building belonging to TCS which is called Pioneer. The tenth building which is under construction will be called "Victor" This park provides campus facilities for multinational giants like Mu Sigma, Xerox, iGATE, IBM, GE, Airtel, Vodafone, Moving Picture Company, TCS, Unisys, Delphi, Huawei, Oracle, Perot Systems, First American (India) and other medium and small sized companies. Outside ITPB, numerous companies have come up like Dell, Tesco, Shell, Aviva, GM, Schneider Electric, Sapient, Goodrich UTC aerospace and DaimlerChrysler, Symphony Teleca Corp and Tangoe are also located in Whitefield. Flowserve, a 100% subsidiary of Flowserve Corp (NYSE:FLS) also has a Manufacturing Plant and R&D center located in EPIP area. Need for the Study The success of any MNC depends largely on the employees, as they are considered as the backbone of any sector. This study aim at projecting the attitude level of employee's, the dissatisfaction they face in an organization and the reason behind they prefer to change their job. Once the levels of employee's attitude are identified, it becomes easy for the management to take necessary steps to reduce attrition level. Since employees are the backbone of the company, their contribution will result in the success of the company during the long run. This study may be helpful in identifying, why employees prefer to change their job and the factors that dissatisfy any employee during the long run. It becomes important for any organization to look into the interest and dreams or goals of the employees towards job. This study may be helpful for the management to improve on their strengths and weaknesses by the suggestions and recommendations mentioned in the project. Statement of problem The aim of the report is to study various factors like salary, superior subordinate relationship, growth opportunities, facilities, policies and procedures, recognition, appreciation, suggestions, coworkers by which it helps to know the Attrition level in the organizations and factors relating to retain them. This study also helps know where the organizations are lagging in retaining the employees. Objectives To know the expectation level of employees towards their job and working environment To identify the medium which make employees dissatisfy about company's policy and regulations. To find the areas where companies are lagging behind. Analysis The statistical tools used for the analysis of data are tables with percentages, Analysis of Variance (ANOVA) using SPSS package. Scope of the study The scope of this study is confined to MNC's manufacturing industries in small scale industries category located at ITPL Bangalore, Karnataka. The study focuses on valuable suggestion to decrease attrition level in the organization. This International Journal of Engineering Research And Advanced Technology (IJERAT) ISSN: 2454 6135 [Special Volume. 02 Issue.01, May 2016] Publication Impact Factor (PIF) :1.026 www.sretechjournal.org 119 study can help the management to improve on the weaker parts of the employee 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. RESULTS 1. Employee's opinion about Salary A salary is a form of remuneration paid periodically by an employer to an employee, the amount and frequency of which may be specified in an employment contract. The following table shows the employee's opinion about salary in various attributes.