project report on employees turnover in it sector wipro and infosys1

5/27/2018 Project Report on Employees Turnover in IT Sector Wipro and Infosys1 - slid...

http:///reader/full/project-report-on-employees-turnover-in-it-sector-wipro-and-info

INDEX

CHAPTE

R

TABLE OF CONTENTS Pg.No.

I INTRODUCTION 4

II RESEARCH METHODOLOGY 6

III LITERATURE REVIEW 12

IV EMPLOYEE TURNOVER

4.1) T!"# O$ E%!&o"" T'(o*"(

4.2) C+'#"# O$ H,g- A Lo/ T'(o*"(

4.0) C+&'&+,o O$ T'(o*"( R+,o

4.4) M"+#'("# To R"'" T'(o*"(

14

14

16

13

21

V WIPRO TECHNOLOGY LTD.

.1) SWOT A+,#

.2) C+'#"# O$ E%!&o""# T'(o*"( I WIPRO

24

25

23

VI INFOSYS LTD.

6.1) SWOT ANALYSIS

6.2) CAUSES OF EMPLOYEES TURNOVER IN

INFOSYS

02

00

04

VII EFFECT OF EMPLOYEES TURNOVER 05

VIII MEASURES TO IMPROVE EMPLOYEES

RETENTION

44

IX EMPLOYEES RETENTION STRATEGIES 45

1



X STEPS TAEN TO REDUCE EMPLOYEES

TURNOVER

1

XI COMPARATIVE ANALYSIS 4

DATA ANALYSIS AND INTERPRETATION 5

FINDINGS 66

RECOMMENDATIONS 67

CASE STUDIES 8 ARTICLES 63

CONCLUSION 54

9UESTIONNAIRE 5

REFERENCES 57

2



CHAPTER 1

INTRODUCTION

All businesses, large and small, have some way of keeping track of their finances. Businesses are

constantly looking for more ways to keep expenses low. One factor that is often overlooked,

however, is the cost of employee turnover. High employee turnover can cost a company morethan they might realize in the long run.

his report explains some causes of high employee turnover, who it affects the most, and ways

companies can decrease employee turnover in order to cut hidden costs.

3



!mployee turnover occurs when employees voluntarily leave their "obs and must be replaced.

urnover is expressed as an annual percentage of the total workforce. #or example, $% percent

employee turnover would mean that one&'uarter of a company(s workforce at the beginning of

the year has left by the end of the year. urnover should not to be confused with layoffs, which

involve the termination of employees at the employer(s discretion in response to business

conditions such as reduced sales or a merger with another company.

he severity of turnover varies widely by type of business and the economic health of the region

where companies are located. )nnovative high&tech companies and the most successful

manufacturers fre'uently experience low turnover rates while fast&food restaurant managers

expect turnover to be as high as %* to +% percent. As another example, coal mining companies in

sparsely populated regions experience lower rates of turnover because there are few other "ob

opportunities.

4



CHAPTER 2

RESEARCH METHODLOGY

$. R"#"+(- o:;",*"#

a- o identify the rate of turnover of employees

b- o identify the causes of employees turnover

c- o suggest measures to reduce the rate of turnover

d- o identify the employee turnover at various ) companies with special focus on /ipro

and )nfosys

5



4.1 RESEARCH DESIGN

0A 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 procedure1.

)t constitutes the blueprint for the collection, measurement and analysis of data. As such

the design includes an outline of what the researcher will do form writing the hypothesis and its

operational implication to the final analysis of data.

2ore explicitly, the design decisions happen to be in respect of3

4 /hat is the study about5

4 /hy is the study being made5

4 /here will the study be carried out5

4 /hat type of data is re'uired5

4 /here can the data are found5

4 /hat periods of time will the study include5

4 /hat will be the sample design5

4 How will the data be analyzed5

4 )n what style will the report be prepared5

4 /hat techni'ues of data collection will be used5

T-" R"#"+(- D"#,g '"(+



7uestionnaires are prepared and personal interview was conducted. 2ost of the

'uestions are consist of multiple choices. he structured interview method was undertaken. he

interview was conducted in !nglish as well as in elugu. 8roper 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. 9enerally $% 'uestions are prepared and asked to the employees.

4 S"o+( D++

:econdary data was collected from )nternets, various books, ;ournals, and



>early ** samples are taken in /)8=O? )>#O:@:

4.3 DESCRIPTION OF STATISTICAL TOOLS USED

8ercentage method



O Observed fre'uency

! !xpected fre'uency

NEED FOR THE STUDY

4 he success of any manufacturing organization depends largely on the workers, the

employees are considered as the backbone of 8ondicherry 8olymers 8rivate Dtd.

4 he attrition rate of the company is .EF. :o this study focused on why the Attrition

occurs and the possible ways to reduce it.

4 he study was mainly undertaken to identify the level of employeeGs attitude, the

dissatisfaction factors they face in the organization and for what reason they prefer to

change their "ob. Once the levels of !mployeeGs attitude are identified, it would be

possible for the management to take necessary action to reduce attrition level. :ince they

are considered as backbone of the



4 his study can be helpful to the management to improve its core weaknesses by the

suggestions and recommendations prescribed in the pro"ect.

4 his study can serve as a basis for measuring the organizationGs overall performance in

terms of employee satisfaction.

4 he need of this study can be recognized when the result of the related study need

suggestions and recommendations to the similar situation.

10



CHAPTER 0

LITRETURE REVIEW

R"*,"/ o$ &,"(+'(" o E%!&o"" T'(o*"(?

. /illiam H. 8rice ? =ichard Ciekbusch ? ;ohn heis in his study on causes of employees

turnover have talked about the causes and the implementation. #urther he highlighted that

providing a challenging "ob, and offering realistic promotion opportunities. Other variables

that have less impact are schedule input, insurance and family income. 9ood communication

and "ob satisfaction.

11



$. Beri 9.ew 6elhi, in his study on the cause of factor

influencing turnover and retention of staff and retention problems for professional have

talked about the /orking hours, workload and work schedules which are also common

concerns to both groups. )n addition, career development, promotion and Eappreciation of

contribution were important retention factors, while a supportive professional environment,

reduction in workload and working hours and more flexible work patterns were important to

consultants.

.



CHAPTER 4

WHAT IS EMPLOYEE TURNOVER@

!mployee turnover is technically and mathematically defined as the ratio of the number of

workers that had to be replaced in a given time period to the average number of workers. 8ut

simply, it is an instance when an employee leaves their position at their workplace and needs to

be replaced.

!mployee turnover is a ratio comparison of the number of employees a company must replace in

a given time period to the average number of total employees. A huge concern to most

companies, employee turnover is a costly expense especially in lower paying "ob roles, for which

the employee turnover rate is highest. 2any factors play a role in the employee turnover rate of

any company, and these can stem from both the employer and the employees. /ages, company

13



benefits, employee attendance, and "ob performance are all factors that play a significant role in

employee turnover.

)n a human resourcescontext, turnover or labor turnover is the rate at which an employergains

and losses employees. :imple ways to describe it are Ihow long employees tend to stayI or Ithe

rate of traffic through the revolving door.I urnover is measured for individual companies and

for their industry as a whole. )f an employer is said to have a high turnover relative to its

competitors, it means that employees of that company have a shorter average tenure than those of

other companies in the same industry. High turnover can be harmful to a company(s productivity

if skilled workers are often leaving and the worker population contains a high percentage of

novice workers

4.1T!"# o$ E%!&o""# T'(o*"(

1. I"(+& *#. ""(+& '(o*"(

Dike recruitment, turnover can be classed as (internal( or external. )nternal turnover involves

employees leaving their current position, and taking a new position with the same organization.

Both positive such as increased morale from the change of task and supervisor- and negative

such as pro"ectJrelational disruption,- effects of internal turnover exist, and thus this form of

turnover may be as important to monitor as its external counterpart. )nternal turnover might bemoderated and controlled by typical H= mechanisms, such as an internal recruitment policy or

formal succession planning.

2. S



employed within the same industry by a competitor. herefore, turnover of these individuals

incurs both replacement costs to the organization, as well as resulting in a competitive

disadvantage to the business.

. Vo&'+( *#. ,*o&'+( '(o*"(

. I*o&'+(L & )n this case, the employee ceases to work for the company due to being

laid off or terminated. )t could be because the company is trying to cut costs, or the

employee has violated company policy.

$. Vo&'+(L & Moluntary turnover is when an employee terminates employment on their

own accord. here are several possible causesL&

$. relocation

$.$ going back to school

$. starting a family

$.E taking care of an elderly relative

$.% general "ob dissatisfaction such as low pay, lack of benefits, or poor management

4.2C+'#"# o$ E%!&o"" T'(o*"(

here are several factors that cause high turnover within companies. his report will focus on

voluntary turnover, because voluntary turnover is something that companies are more able to

control. !mployees voluntarily 'uit for several reasons, specificallyL

. pay is too low

15



$. lack of benefits

. tasks are too repetitive

E.



. T-" "oo% & in exit interviews one of the most common reasons given for leaving is

the availability of higher paying "obs. :ome minimum wage workers report leaving one

"ob for another that pays only %* cents an hour more. Obviously, in a better economy the

availability of alternative "obs plays a role in turnover, but this tends to be overstated in

exit interviews.

$. T-" !"($o(%+" o$ -" o(g+,+,o & an organization perceived to be in economic

difficulty will also raise the specter of impending layoffs. /orkers believe that it is

rational to seek other employment.

. T-" o(g+,+,o+& '&'(" & much has been written about organizational culture. )t is

sufficient to note here that the reward system, the strength of leadership, the ability of the

organizations to elicit a sense of commitment on the part of workers, and its development

of a sense of shared goals, among other factors, will influence such indices of "ob

satisfaction as turnover intentions and turnover rate.

E. T-" -+(+"(,#,# o$ -" ;o: & some "obs are intrinsically more attractive than others. A

"ob(s attractiveness will be affected by many characteristics, including its repetitiveness,challenge, danger, perceived importance, and capacity to elicit a sense of

accomplishment. A "ob(s status is also important, as are many other factors.

%. U("+&,#, "!"+,o# & Another factor is the unrealistic expectations and general lack

of knowledge that many "ob applicants has about the "ob at the time that they receive an

offer. /hen these unrealistic expectations are not realized, the worker becomes

disillusioned and decides to 'uit.

N. D"%og(+!-,# & empirical studies have demonstrated that turnover is associated in

particular situations with demographic and biographical characteristics of workers. But to

use lifestyle factors e.g. smoking- or past employment history e.g. many "ob changes- as

an explicit basis for screening applicants, it is important for legality and fairness to "ob

17



applicants to verify such biodata empirically.

C+'#"# o$ H,g- + &o/ "%!&o"" '(o*"(

H,g- '(o*"( often means that employees are unhappy with the work or compensation, but it

can also indicate unsafe or unhealthyconditions, or that too few employees give satisfactory

performance due to unrealistic expectations or poor candidate screening-. he lack of career

opportunities and challenges, dissatisfaction with the "ob&scope or conflict with the management

has been cited as predictors of high turnover.

High rate of turnover may lead to decrease inL

. 8roductivity

$. :ervice delivery

. :pread of organizational knowledge

Lo/ '(o*"( indicates that none of the above is trueL employees are satisfied, healthy and safe,

and their performance is satisfactory to the employer. However, the predictors of low turnover

may sometimes differ than those of high turnover. Aside from the fore&mentioned career

opportunities, salary, corporate culture, management(s recognition, and a comfortable workplace

seem to impact employees( decision to stay with their employer.

A little rate of employee turnover may result intoL

. Bringing in new ideas and skills from new hires.

$. Better employee&"ob matches.

18
http://en.wikipedia.org/wiki/Occupational_safety_and_healthhttp://en.wikipedia.org/wiki/Occupational_safety_and_healthhttp://en.wikipedia.org/wiki/Occupational_safety_and_health



. 2ore staffing flexibility.

E. #acilitate change and innovation.

E. HOW TO CALCULATE THE TURNOVER RATIO

S"! 1.



But suppose one of those N who left was actually replaced three times. he employee 'uit in

;anuary, the replacement 'uit in April, and another person was hired who lasted only until

>ovember. hen you might want to count every time an employee left the company and another

one was hired & in this case you(d get F.

Another complicationL suppose the work force is ** at the beginning and P* at the end of the

year. 8erhaps N people have left, but only N have been hired during the year, while $ more were

hired and retired within the same year. @ou might define turnover as J** or as JP*, or as

JP%, since P% is the average of P* and **. )nstead of P%, you might want to do a fancier

average, where you actually add up the number of employees on each day of the year, and divide

the total by N%.

One more complicationL who decided it was a calendar year that we should use for sampling the

turnover rate5 8erhaps there was no turnover at all for years prior, and then a shift in

management caused a lot of people to leave this year. hen a more representative measure would

average over $ or or E years. 2aybe you(d want to average the turnover in each month of the

last E, but weight recent months more heavily than earlier months.

M"+#'("# o R"'" -" R+" o$ T'(o*"(

. B""$,#.Offering employees an affordable medical, dental, and vision package in this

day and age is a great way to keep employees happy. Healthy employees are happy

employees, and being able to provide affordable health care for their spouses and families

as well is something every company should offer.

$. An added bonus could be vacation time, sick leave. On&site child care would be

extremely helpful for parents who have to work long or late hoursRespecially single

parents.

. H,g-"( !+. 9iving employees regular raises and paying well over minimum wage

20



would be an incentive for them to stay.

E. A #" #-"'&". )n food service and retail, and most service industries as well as health

care, employees are forced to work six or moreReven up to ten days in a row without a

day off. 6ays off may even be split up, so the employees never really get a chance to rest.

9iving them the opportunity to choose which days off they want, or at least giving them

two in a row and not working them more than five, would be extremely beneficial in

employee retention. his would also increase productivity and would be beneficial to the

company.

%. o: *+(,+,o. !mployees get burned out on performing the same "ob every hour of

every day, day in and day out for years, even months.



CHAPTER

22



INTRODUCTION o WIPRO

/ipro echnologies Dimited is a multinational

information technology services corporation head'uartered in

Bangalore,)ndia. /ipro is the third&largest ) services company in )ndia and employs more than

P,P people worldwide as of $**P.)t has interests varying from information technology,

consumer care, lighting, engineeringand healthcarebusinesses. Azim 8rem"iis the



now called /ipro #luid 8ower- division in Bangalore.

1355 & >ame of the



8rem"i established Azim 8rem"i #oundation, a not&for&profit organization for elementary

education.

/ipro becomes only )ndian company featured in Business /eekGs ** best&performing

technology companies.

22 &/ipro ac'uires :pectra mind.

=anked the +th software services company in the world by Business /eek )nfoech **,

>ovember $**$-.

20 >/ipro ac'uires >erve. /ipro echnologies /ins 8restigious )!!! Award for

:oftware 8rocess !xcellence. /ipro echnologies awarded prestigious ):2A award for

services marketing excellence . /ipro wins the $** Asian 2ost Admired Cnowledge

!nterprise Award.

24 &



27 & /ipro ac'uires 9allagher #inancial :ystems to enter mortgage loan origination space.

23 >/ipro stops ew Dogic :ophia&Antipolis =?6 center /ipro

echnologies deals in following businesses.

.1 SWOT A+,# o$ WIPRO TECHNOLOGY L.

. S("g-#

. :killed manpower

.$ 6iversified skill base across service line

. delivery capabilities ? client satisfaction

.E 2ulti domestic market philosophy

.% ot a proactive company

26



.$ 6omestic market was huge but was underdeveloped

. :mall player in global market

.E >o exposure to standard work

.% Dimited domain

.N /ipro provided very limited number of services. Also :tandard international

'uality practices like :ix :igma and



. !xchange rate

his can be a threat to the company as the company is making profits due to the high exchange

rate and if this rate comes down in future it can lead to a ma"or problem for the company

.2 CAUSES OF EMPLOYEE TURNOVER IN WIPRO TECH LTD

. T-" "oo% & in exit interviews one of the most common reasons given for leaving is

the availability of higher paying "obs. :ome minimum wage workers report leaving one

"ob for another that pays only %* cents an hour more. Obviously, in a better economy the

availability of alternative "obs plays a role in turnover, but this tends to be overstated in

exit interviews.

$. T-" !"($o(%+" o$ -" o(g+,+,o & an organization perceived to be in economic

difficulty will also raise the specter of impending layoffs. /orkers believe that it is

rational to seek other employment.

. T-" o(g+,+,o+& '&'(" & much has been written about organizational culture. )t is

sufficient to note here that the reward system, the strength of leadership, the ability of the

organizations to elicit a sense of commitment on the part of workers, and its developmentof a sense of shared goals, among other factors, will influence such indices of "ob

satisfaction as turnover intentions and turnover rate.

E. T-" -+(+"(,#,# o$ -" ;o: & some "obs are intrinsically more attractive than others. A

"ob(s attractiveness will be affected by many characteristics, including its repetitiveness,

challenge, danger, perceived importance, and capacity to elicit a sense of

accomplishment. A "ob(s status is also important, as are many other factors.

%. U("+&,#, "!"+,o# & Another factor is the unrealistic expectations and general lack

of knowledge that many "ob applicants has about the "ob at the time that they receive an

offer. /hen these unrealistic expectations are not realized, the worker becomes

disillusioned and decides to 'uit.

28



N. D"%og(+!-,# & empirical studies have demonstrated that turnover is associated in

particular situations with demographic and biographical characteristics of workers. But to

use lifestyle factors e.g. smoking- or past employment history e.g. many "ob changes- as

an explicit basis for screening applicants, it is important for legality and fairness to "ob

applicants to verify such bio&data empirically.

29



CHAPTER 6

30



INTRODUCTION o INFOSYS

)nfosys is a Bangalore based company started in P has around %,%**

employees. he highest rated script on the )ndian bourses & )nfosys is the most admired company

on the B:!. )t is the face of the )ndian software industry. he company was the first in )ndia to

register on the American stock exchange & >A:6A7 with an issue of two million American

depository shares A6=- that raised S+* million.

As a part of )nfosys globalization efforts the company has set up a global development

centre in oronto. )t also established two proximity centres at #reemont, ortel and 9oldman :achs. arayan 2urthy was selected as one of the %* most powerful people in Asia

for the year $*** in a poll conducted by Asia week.

he company provides month training to the new recruits in Bangalore. here is also a

service agreement for a year. he pay package is around =s.+, ***approx.- for the year $***

recruits

31



6.1 SWOT A+,# o$ INFOSYS L.

. STRENGTHS?>

. he company has bases in EE global development centers most of which are located in

)ndia, although the company has offices in many developed and developing nations. his

means )>#O:@: becoming a global brand but also it has the capacity to support

operations of multinationals clients

.$ )>#O:@: has a strong financial position. )t has the capital to expand and also the basis to

leverage potential.

$. WEANESSESL&

. )>#O:@: on struggles in the K: market and has the particular problem in securing

Knited :tate #edral 9ovt. contract in >orth America since these contract are highly

profitable and tend to learn for a long period of time. )>#O:@: is missing out on

lucrative business added to this is the fact that its competitors do well in the term of

securing the same fedral business.

.$ 6espite being a huge ) companies )>#O:@: is much smaller than its global

competitors. As a discussed above, )nfosys generate SEbillion in $** which is

comparatively very low to the other ) companies.

. OPPORTUNITY?>

. here is a new and emerging market in #O:@: ? :



reduce take up of services that )>#O:@: offers. However in tough times client tend to focus

upon cost reduction and outsourcing, so hard times could be profitable for )>#O:@:.

E. THREATS?>

.



ceiling, which may lower their level of commitment to any particular firm, since they believe

they(re not in contention for top&level "obs. hese factors translate into higher turnover rates for

women in many companies.

=etirement of experienced employees can cause high rates of turnover and extreme loss in

productivity.

34



CHAPTER 5

EFFECT OF EMPLOYEES TURNOVER

High turnover can be a serious obstacle to productivity, 'uality, and profitability at firms

of all sizes. #or the smallest of companies, a high turnover rate can mean that simply having

enough staff to fulfill daily functions is a challenge, even beyond the issue of how well the work

35



is done when staff is available. urnover is no less a problem for ma"or companies, which often

spend millions of dollars a year on turnover&related costs. #or service&oriented professions, such

as management consulting or account management, high employee turnover can also lead to

customer dissatisfaction and turnover, as clients feel little attachment to a revolving contact.



to replace the worker who left. his means ma"or companies can spend millions of dollars a year

on turnover costs.

. L+< o$ S+$$

High turnover rates can create a lack of staff to complete essential daily functions of a company.

his can result in overworked, frustrated employees and dissatisfied customers.

E. Lo## o$ P(o',*,

>ew employees take some time to get up to speed, particularly in complex "obs.

%. C'#o%"( D,##+,#$+,o

#or service&oriented careers such as account management and customer service, high turnover

can lead to customer dissatisfaction. >ewer representatives lack expertise and knowledge, and

customers have.

COSTS DUE TO A PERSON LEAVING

. R"(',%" Co##

. he cost of advertisements from a S$**.** classified to a S%,***.** or more display

advertisement-3 agency costs at $* & *F of annual compensation3 employee referral

costs of S%**.** & S$,***.** or more3 internet posting costs of S**.** & S%**.** per

listing.

$. he cost of the internal recruiter(s time to understand the position re'uirements, develop

and implement a sourcing strategy, review candidates backgrounds, prepare for

interviews, conduct interviews, prepare candidate assessments, conduct reference checks,

make the employment offer and notify unsuccessful candidates. his can range from a

minimum of * hours to over ** hours per position.

.



review candidates background,conduct interviews, discuss their assessments and select a

finalist. Also include their time to do their own sourcing of candidates from networks,

contacts and other referrals. his can take upwards of ** hours of total time.

%.



E.



.



41



CHAPTER 7

M"+#'("# To I%!(o*" E%!&o"" R"",o

)t is worth considering the following elements, all of which have been shown to play a positive

role in improving retentionL

. o: !("*,"/# & give prospective employees a (realistic "ob preview( at the recruitment

stage. ake care not to raise expectations only to dash them later. Advances in technologypresent employers with increasing opportunities to familiarize potential candidates with

the organization before they accept a position.

$. M+



managers in people management and development skills before appointing or promoting

them. Offer re&training opportunities to existing managers who have a high level of

turnover in their team.

. C+(""( "*"&o!%" + !(og("##,o & maximize opportunities for individual

employees to develop their skills and move on in their careers. /here promotions are not

feasible, look for sideways moves that vary experience and make the work more

interesting.

E. Co#'& "%!&o""# & ensure wherever possible that employees have a (voice( through

consultative bodies, regular appraisals, attitude surveys and grievance systems. his will

provide dissatisfied employees with a number of mechanisms to sort out problems before

resigning. /here there is no opportunity to voice dissatisfaction, resigning is the only

option.

%. B" $&",:&" & wherever possible accommodate individual preferences on working hours

and times. /here people are forced to work hours that do not suit their domestic

responsibilities they will invariably be looking for another "ob which can offer such hours

of a culture of (presenteeism(& where people feel obliged towork longer hours than arenecessary simply to impress management. !valuation of individual commitment should

be based on results achieved and not on hours put in.

N. o: #"'(, & provide as much "ob security as possible. !mployees who are made to feel

that their "obs are precarious may put a great deal of effort in to impress, but they are also

likely to be looking for more secure employment at the same time. :ecurity and stability

are greatly valued by most employees.

+. T("+ !"o!&" $+,(& & never discriminate against employees. A perception of unfairness,

whatever the reality when seen from a management point of view, is a ma"or cause of

voluntary resignations. /hile the overall level of pay is unlikely to play a ma"or role

unless it is way below the market rate, perceived unfairness in the distribution of rewards

43



is very likely to lead to resignations..

. D"$" o'( o(g+,+,o & against penetration by headhunters and others seeking to

poach your staff. Ceep internal e&mail addresses confidential, refuse to do business with

agents who have poached your staff, and enter into pacts with other employers not to

poach one another(s staff.

44



CHAPTER 3

EMPLOYEE>RETENTION STRATEGIESL

. =ecognize your impact as a manager

$. )mplement effective workJlife programs

. 8rovide personal productivity training

E. Ad"ust or establish constructive Human =esources policies.

1. R"og," o'( ,%!+ +# + %++g"(

As an office manager, you must specifically communicate to employees that you appreciate their

contributions, rather than talking to them only when they do something wrong. Kse charts and

graphs distributed through electronic bulletin boards and e&mail groups to keep your team

45



informed of results and how they are moving toward company goals.

2. I%!&"%" "$$",*" /o(



. =educe staff turnover.

E%!&o""#?

. Achieve more results in less time.

$. Balance work and personal lives.

. !xperience less stress.

4. A;'# o( "#+:&,#- o#(',*" H'%+ R"#o'("# !o&,,"#

he methods described below can be technical and often have legal ramifications, so you should

consult with H= and legal resources before implementing these policies.

S+&+(>&"*"& +!#

:tructure pay levels by "ob categories so that long&term employees don(t price themselves out

of their "obs. 8roperly structured salary&level caps prevent this situation because the salary fora given "ob will never be higher than the "ob is worth.

P-+#">, :""$, !&+#

!stablish retirement plans that aren(t fully vested until employees have many years on the "ob.

his encourages people to stay. #or example, an employee is $%F vested after two years, %*F

after five years, and **F after * years. Also award additional vacation time for each year an

employee is with the company.

P"($o(%+">:+#" #+&+( ,("+#"#



#re'uent reviews and positive reinforcement reward and encourage high&performing

employees. 8oorer performers can be identified and assisted, then rewarded when they

improve.

CHAPTER 1

48



W-+ I,,+& S"!# C+ B" T+



benefit plans to address the health and welfare issues of the employees, and non&cash rewards

and perks as well. o be competitive in today(s labor market, most companies find it

necessary to offer a standard benefit package, including health, dental, and life insurance,

vacation and leave policies, and investment and retirement plans. But what more could be

done that would be cost effective toward creating an employee&oriented work environment5

E. C("+,*, , o%!"#+,o + :""$,# can make 'uite a difference to the welfare ofthe

employee. A company should assess overall employee needs when addressing retention

issues.

%. Co#,"( o-"( o!,o# R such as alternative work schedules or flextime, or perhaps

preventative health care and wellness programs such as fitness center memberships R as

possible cost&effective benefits. 6on(t forget that perks or non&cash rewards to recognize

exceptional performance can be critical. :ervice recognition, event tickets, trips, and public

recognition can send strong messages to the public regarding company culture and values.

:imply examine the issues and needs of your employees and try to develop creative programs

to address these needs.

50



CHAPTER 11

51



Co%!+(+,*" S' o$ Bo- -" Co%!+,"#

hrough the comparative study of both the companies ) have found that companies have facing

the problem of employees turnover because of the pay is too low, lack of benefits ,tasks are too

repetitive circumstances listed above such as family, school, or moving, poor management ,lack

of advancement, burnout, less recognition, less or no appreciation for work done, less growth

opportunities, 8oor training, 8oor supervision, Dess work and life balance practices which are

almost the same in both companies.

52



CHAPTER 12

53



CHAPTER 10

54



D++ A+,# + I"(!("+,o?

A+,# U#,g P"("+g" M"-o

. o Age >o. of =espondents 8ercentage

&$% % +*

$ $N&% $ $E

N&E% * *N

E Above E% * *

otal %* **:ourceL 8rimary 6ata

I$"(""?

55



he above table infers that, +* percent belongs to the age group of &$% years, $E

percent belongs to the age group of $N&% years, and N percent belongs to the age group of N&E%

years.

0

10

20

30

40

50

60

70

18-25 26-35 36-45 Above

45

P

E

R

C

E

N

T

A

G

E

AGE LEVEL

$. o. of =espondents 8ercentage

Highly :atisfied H.:-

*+ E

$ 2oderately :atisfied 2.:-

$N %$

>eutral >-

% *

E 2oderately 6issatisfied 2.6-

*$ *E

% Highly 6issatisfied H.6-

* *

otal %* **

56



:ourceL 8rimary 6ata

I$"(""?

he above table shows regarding 2otivation that, E percent of the respondents are

highly satisfied, %$ percent of the respondents are moderately satisfied, * percent of the

respondents are neutral.

0

10

20

30

40

50

60

H.S M.S N M.D H.D

P

E

R

CE

N

T

A

G

E

LEVEL OF ATTITUDE

57



. o. of =espondents 8ercentage

Highly :atisfied H.:- *% *

$ 2oderately :atisfied 2.:- P

>eutral >- $E E

E 2oderately 6issatisfied 2.6- *$ *E

% Highly 6issatisfied H.6- * *

otal %* **


I$"(""?

he above table shows regarding Appraisal that, * percent of the respondents are highly

satisfied, percent of the respondents are moderately satisfied, E percent of the respondents

are neutral.

0

10

20

30

40

50

H.S M.S N M.D H.D

PE

R

C

E

N

T

A

G

E

LEVEL OF ATTITUDE

E.



:.no 6issatisfaction #actor >o of =espondents 8ercentage

/ork 8ressure /.8- *P

$

2anagement 6ecisions

2.6-*N $

/ork !nvironment /.!- *+ E

E 8ay :tructure 8.:- * $*

% Others N

otal %* **


I$"(""?

he above table shows regarding 6issatisfaction factor that, N percent of the

respondents are dissatisfied due to Other personal factors, $* percent of the respondents are

dissatisfied due to 8ay :tructure, percent of the respondents are dissatisfied due to /ork

8ressure.

59



MAKE EMPLOYEES TO GET DISSATISIED

O!"e#$

P%& S!#'(!'#e

)o#*+,- E,v+#o,.e,!

M%,%-e.e,! De(+$+o,

)o#* P#e$$'#e

PE/0ENTAGE

40

30

20

10

0

:.no o of

=espondents

8ercentage

@es P +

$ >o $$

otal %* **

60



%.



:.no

#reedom to

o *N *P %

otal P %*


EXPECTED COUNT

:.no

#reedom to

o .+ . %.*

otal P.* .* %*.*


FORMULA

O&!-2

62



$

!

O Observed fre'uency

! !xpected fre'uency

COMPUTATION OF CHI>S9UARE 2 )

:.>o O E O>E) O>E)2 O>E)2 E

$+. %.+ $.EP .P

$ $ +.+ &%.+ &$.EP E.$$

N .+ &%.+ &$.EP $.+

E P . %.+ $.EP P.E

OAD .*


he calculated value is .*

6egree of freedom =&-



hus



every day, day in and day out for years, even months.



RECOMMENDATIONS

urnovers can detrimental effect on an organization and its employees if company

management allows it. here are a tool to assist in addressing the causes of turnover is often

used as a performance indicator may be preventive measure should be as well. )t is impossible

to eliminate turnover altogether therefore management must learn how to deal with it and the

effect it has on a company. )n addition management should be better prepared to take the

proper action after the turnover event occurs. All effort should be focused on maintaining "ob

satisfaction and managing controllable caused of turnover.

he list of recommendation to prevent turnover in companies areL

. 9et involved in finding out the causes of turnover

$. Bring attention to bottom fig. ? how turnover affect everyone

. Have an open door policy style of managing to allow employee to comment on what

might be bothering then about the "ob.

E. =ealize there is more than one problem and pay attention to all stay alert.

%. !xecute periodic audits of "ob satisfaction.

N. Have a :trict hiring standard do not "ust fill opening and.

+. 6evelop and constantly update training strategies.

66



C+#" S',"# + A(,&"#

C+#" S' o W,!(o

) ma"or /ipro echnologiesthat employs around $$,% people, has announced salary hikes

effective ;une , $*, in an effort to retain its manpower. he wage hike is in the range of $ to

% per cent for its )ndia&based staff and to E per cent for employees working at client locations.

As high attrition rateis alarming the ) and B8O ma"ors in the country, /ipro said it is working

towards employee retention and keeping the employee spirits high.

8lans to increase on&site working opportunities

0!mployees are an important aspect of the company(s health. /e want our employees to be

more excited about their company and they should see a career growth opportunity here. /e

want to give them opportunity to go out there, see the customer and learn their technology,1 he

said after the financial resultswere anounced here on /ednesday.

his could be an interesting move for the company in ensuring employee retention at the entry

and mid range level, since engagement programs, on&site opportunities and salary hikes are

considered accelerators of employee satisfaction.

Moluntary attrition $$.+ p.c. in #@ *&

8ratik Cumar, executive vice president, human resources, /ipro Dimited and president, /ipro

)nfrastructure !ngineering, shared that the company is looking at increasing employee

communication by organizing events and engagement programs.

He said, 0/e are giving salary hikes effective ;une , $*. C and the team has built up a

calendar transparently communicating that every year the cycle for work review and salary

appraisal will happen effective ;une .1

67
http://www.ciol.com/News/News/News-Reports/Wipro-wants-to-get-closer-to-clients/149289/0/http://www.ciol.com/News/News/News-Reports/High-attrition-rate-a-challenge-for-Indian-BPOs/148791/0/http://www.ciol.com/News/Corporate-Results/News-Reports/Wipro-Q4-profit-up-4-pc-at-Rs-1375-cr/149252/0/http://www.ciol.com/News/Corporate-Results/News-Reports/Wipro-Q4-profit-up-4-pc-at-Rs-1375-cr/149252/0/http://www.ciol.com/News/News/News-Reports/Wipro-wants-to-get-closer-to-clients/149289/0/http://www.ciol.com/News/News/News-Reports/High-attrition-rate-a-challenge-for-Indian-BPOs/148791/0/http://www.ciol.com/News/Corporate-Results/News-Reports/Wipro-Q4-profit-up-4-pc-at-Rs-1375-cr/149252/0/



he ) services division saw the voluntary attrition going up to $$.+ per cent in #@ *& against

$. per cent on #@ *P&* )n the fourth 'uarter it came around $*.P per cent, marginally lower

than $.+ per cent last 'uarter.

A(,&" o WIPRO

/ipro continued the trend of bumper results from ) companies. :e'uential and year&on&year

growth is the highest in the past eight 'uarters. /ipro(s sale was up EF @o@ to =s ,%% crore

and F se'uentially. 8rofits rose E+F @o@ and F 7o7 to =s +** crore.

However, the story on margins is that they are flat. he company(s profitability has been

impacted by *.$F compared to previous 'uarter. his impact would have been much more if the

company had not seen a massive improvement in profitability of its ac'uisitions.

he company has got some relief from improving margins in the B8O business. he

management lists visa costs and forex gains as two more areas providing some relief on margins.

he share of )ndia in the total revenue mix of the company has grown in this 'uarter.

However, this is one area where the company is showing a lot of variations over the 'uarters.

Apart from this, the rest of the geographies show uniform growth.

Attrition in /ipro has been creeping up for the last six 'uarters. )t currently stands at F. )t

stood at %.PF for the last $ months.

he company has added %,$ employees during the 'uarter. his large addition has led to

utilisation rates falling to NPF. 8ast trends suggest that there could be further fall in the

utilization numbers going forward.

68



C+#" #' o INFOSYS

here were a lot of shocking numbers in )nfosys( 'uarterly earnings. But one that stands out the

most is the E.P percent attrition rate&this is even given that an industry facing a slowdown

typically records low attrition figures. An !conomic imes reportsuggests that close to ,***

employees left )nfosys in the past three months mainly due to wage&hike issues.

he management however during the company(s earnings last week said that there is nothing

alarming about the attrition rate as a lot of people leave for higher studies during this 'uarter. he

company had also said that it will hire people laterally to combat this attrition.

An earlier Business :tandard reportin 2ay said that the number of )nfosys employees looking to

move was on the rise. hat report had signaled this announcement in 2ay.

!xperts note that this is definitely a tough time for )nfosys and the system is undergoing a shake

up. Ihese numbers attrition- are thrice as much as the general industry rate. )t(s pretty bad. he

company is undergoing a overhaul and maybe the company also laid off people given the

demand environment,I said a recruitment expert who spoke to #irstpost on the condition of

anonymity.

A"it )saac, 26 and

agency also suggested that the company said that the company might have laid off level and

level E "unior employees- since their utilization rate, or employees working on live pro"ects was

close to N+ percent. I)n the next few 'uarters, ) attrition will come down because of the slowing

demand. ) believe that a company like )nfosys will recover from this,I he told #irstpost.

69
http://economictimes.indiatimes.com/tech/ites/infosys-now-only-a-bellwether-of-staff-angst-8000-quit-in-june-quarter/articleshow/14966737.cms?curpg=2http://www.business-standard.com/india/news/more-infosys-staffers-get-fidgety/473726/http://economictimes.indiatimes.com/tech/ites/infosys-now-only-a-bellwether-of-staff-angst-8000-quit-in-june-quarter/articleshow/14966737.cms?curpg=2http://www.business-standard.com/india/news/more-infosys-staffers-get-fidgety/473726/



A(,&" o INFOSYS

)nfosys, )ndia(s >o $ software services provider, is working on expanding the scope of technical

tests in lateral recruitment to include candidates across the experience spectrum.

/hile technical tests have always been part of the selection process, not all lateral recruits

currently re'uire technical tests. he company is rolling out a plan to make sure all lateral

positions re'uire a corresponding technical test, )nfosys said, in response to a 'uery from !.

his would mean even senior level lateral hiring will involve tests, which currently form part of

various interview rounds that candidates face, depending on the level at which they are being

considered. )nfosys is doing this to ensure it hires top 'uality talent but there are concerns that

this will also make hiring at senior levels more difficult, two persons within the company with

knowledge of the discussions said.

he persons didn(t want to be named as the discussions were internal, but added that founder >=

>arayana 2urthy was keen to go ahead on the plan despite the concerns.

I2urthy wants to improve the 'uality of lateral hires,I said one of the persons. IHowever, there

is a worry that senior talent might resist taking such tests and )nfosys will lose out on good

talent.I )n a statement, )nfosys saidL IAs the technology landscape has changed, we have also

modified the technical assessments to ensure we bring the best and relevant talent into the

company. At this time, technical assessments are administered as part of the interviews

conducted by our panel of experts with potential lateral hires as applicable.I

)ndia(s S&billion ) outsourcing industry has some million employees, and recruiting

experienced staff is an enormous exercise that has been made more complicated with potential

recruits being on social media.



)n the three months ended 6ecember , )nfosys(s attrition, or staff churn, went down in absolute

terms, but the company has a much higher attrition rate compared with larger rival ata



CONCLUSION

) have found through the analysis that most of the industries have faced the problem of

turnover because of dissatisfaction with work or working condition, the /orking hours,

workload

and

work schedules, incentives, salaries and

the

facility which are provided

tot

h

e

worker

is not up to the marks, as per the analysis the various way through whicht

h

e

industri

es reduces their employees turnover problem, are given belowL&

. =emove the barriers and biases which create unfair workplace

$. conducting workers satisfaction survey, find specific problem area to watch and

improve

. =eduction in workload and working hours and more flexible work patterns were

important to consultants.

E. 8roviding a challenging "ob, and offering realistic promotion opportunities.

%. Help employees learn to achieve the same results in less time through productivity

training.

N. 8rovide as much "ob security as possible.

+. #re'uent reviews and positive reinforcement reward and encourage high&performing

employees.

72



. 2aximize opportunities for individual employees to develop their skills and move on in

their careers.

P. Offering employees an affordable medical, dental, and vision package in this day and age

is a great way to keep employees happy.

9UESTIONNAIRE

PERSONAL DATA?

. >ameL

$. 6esignationL

. AgeL

a- &$% b- $N T % c- N &E% d- above E%

E. 2arital statusL

a- 2arried b- unmarried

%. !ducational 7ualificationL

a- Below Hr. :ec. b- Hr. :ec c- K9 or 89 d- )) or

e- Others

N. @ears of !xperienceL

a- * T $ years b- T % years c- N T years d- Above years

+. o ? AddressL

OTHER DATA?

73



. )dentify your role in &&&&&&5

V op level mgt V 2iddle level mgt

V Dower level mgt V



V Average V =eally good

E. #or which reason, you prefer to change the "ob..5

V Health condition V #amily issues

V 9rowth V 2onetary benefits

V Others

%. )s there any considerations for the employeeGs creativity..5

a- @es b- >o

75



REFERENCES

BOOS

a- =odger 9riffeth $**- ,Managing Employee Turnover

b- Aretention. H= :tudies

d- A@DO=, :. $**$-, The employee retention handbook.

6eveloping practice.

WEBSITES

a- www.infosys.com

b- www.wiproltd.com

c- www.retention.naukrihub.com

d- www.empturnover.com

OURNALS

76
http://www.wiproltd.com/http://www.retention.naukrihub.com/http://www.empturnover.com/http://www.wiproltd.com/http://www.retention.naukrihub.com/http://www.empturnover.com/



a- DA/D!=, !.!. $**- /hy are we losing all our good people5 Harvard Business

=eview.

b- 2AC)>, >. $**- he drivers of staff retention and employee engagement.

d- =A>C)>, >. $**P- Dabour turnover rates and costs in the KC in $**.

e- A@DO=, :. $**N- Are you keeping your employees happy5 he H= 6irector.

77

project report on employees turnover in it sector wipro and infosys1

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