Important and Valuable Resource That Every

A COMPREHENSIVE PROJECT REPORT ON CAUSES AND CONSEQUENCES OF ATTRITION IN RETAIL INDUSTRY Submitted to C K SHAH VIJAPURWALA INSTITUTE OF MANAGEMENT IN PARTIAL
FULFILLMENT OF THE REQUIREMENT OF THE AWARD FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION Under Gujarat Technology University UNDER THE GUIDANCE OF Ms.Savitha K. Submitted by PAREEN RAVAL (097050592013) RUCHI MORE (097050592031) M.B.A IV SEMESTER C K Shah Vijapurwala Institute of Management M.B.A PROGRAMME Affiliated to Gujarat Technological University Ahmadabad April 2011
Causes and Consequences of Attrition in Retail Industry
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PREFACE
A project research is a systematic & scientific investigation for identifying a specific problem or study in a particular area in the organization & thereby analyzing the same to give the best solution. For the fulfillment of any organizational goal it is necessary to retain talented employees from getting poached as low employee turnover rate appreciate the value of the organization, retain company secret information as it is and reduce recruitment & selection expense. This project is also an attempt to study the common reasons of employee voluntarily leaving or staying in organization, efforts made by organization to retain employee, various career development programs offered by the organization, impact of induction & training programs on retention of employees and to determine the organizational climate and accordingly suggest the strategies and steps for reducing turnover and improving retention. The objective of doing the project is to collect all the necessary information with respect to the recruitment, selection training & development procedures in personnel department & thereby to get the level of employee engagement with the organization. During research, the researchers have learned various concepts of HR & gained knowledge of reasons and impact of high turnover ratio in retail industry. The research work really has given immense learning to us. We would like to whole heartedly thank all the employees of retail organizations who gave us opportunity to learn.
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ACKNOWLEDGEMENT
We owe a great many thanks to a great many people who helped and supported us while doing this project.
Our deepest thanks to our mentor, Ms. Savitha K, the Guide of the project for guiding and correcting various documents with attention and care. She has taken pain to go through the project and make necessary correction as and when needed. We express thanks to Mr. Rajesh Khajuria, Director of C K Shah Vijapurwala Institute of Management, for extending his support. Our deep sense of gratitude to Managerial level employees at D-mart, More, Pantaloons and Mangal Bazaar for their support and guidance. Thanks and appreciation to all helpful sales employees for their support. We would also thank our Institution ,our faculty and administrative staff members without whom this project would have been a distant reality. We also extend our heartfelt thanks to our family And well wishers.
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DECLARATION
We, Pareen Raval and Ruchi More, hereby declare that the report for Comprehensive Project entitled Causes and Consequences of Attrition in Retail Industry is a result of our own work and our indebtedness to other work publications, references, if any, have been duly acknowledged. Place: Vadodara Date : 30/04/2011 (Signature) Pareen Raval Ruchi More
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EXECUTIVE SUMMARY
People is the most important and valuable resource that every organization has in the form of its employees. Dynamic people can make dynamic organizations. Effective employee can contribute to the effectiveness of the organizations. Competent and Motivated people can make things happen and enable to organization to achieve its goals. HR can help to deliver organizational excellence by focusing on learning quality, team work and through various employee friendly strategy. However due to cut throat competition it is difficult to retain skilled workforce in retail, BPO, Insurance and IT sectors. Study comprises in two parts. The first priority was to acquire information and overview of retail industry from Indian and Global perspective, Major attributes of growth, Major players in retail and Major products gathered from various secondary sources.
The Second half of the project consists of primary study which comprises of research on causes and consequences of high attrition rate in retail organizations and recommendations/suggestions to reduce high employee turnover to a greater extent. For primary study structured questionnaire is designed and filled by retail sales personnels at D -mart, More, Mangal Bazaar and medical representatives of pharma and health care.
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INDEX
SR. NO. PARTICULARS PART 1 GENERAL INFORMATION 1 About the industry World Market Indian Market Growth of the industry 2 3 4 About major Companies in the industry Product profile (Major Products) PART 2 PRIMARY STUDY Introduction of the study 4.1 Literature Review 4.2 Background of the study 4.3 Problem Statement and Importance of the Study 4.4 Objectives of the Study 5 Research Methodology 5.1 Research Design 5.2 Source of Data 5.3 Data Collection Method 5.4 Population 5.5 Sampling Method 5.6 Data Collection Instrument 6 7 8 9 Data Analysis and Interpretation Results and Findings Limitations of the Study Conclusion/ Suggestions 46-67 68 72 73/80 44 45 29 42 23-24 25-27 8 - 22 PAGE NOS.
Annexure..81 Bibliography82
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PART- I GENERAL INFORMATION
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1. ABOUT THE INDUSTRY

Retailing is evolving into global business with a substantial contribution from technology. Large retail malls today are not only functioning as sales outlets for a specific customer base but have gone to offer social experience, become tourist attractions. Retail industry has become a major contributor to a national income and is generating jobs in high numbers. In other words, it has become larger than life. Today retailing accounts for 14% of our national income, and 7% of our total workforce. (Second to agriculture only). Retailing that was defined once as a set of business activities that adds value to the goods and services and sold to the consumer for their personal and family use, is today aiming to deliver continuous and consistent relevant shopping experience to them. Even, half a decade ago retailer was the guy who satisfies customer needs by having right merchandise, at the right placemat the right price when consumer wants it. Today things are little different. Now, a retailer wants to have a large place where he can store much more than the customer can think of at a price which the customer will find very difficult to turn down. Mind you till now we have discussed is the pre Walmart era. With the global number one poised to make an entry into India, the future becomes impossible to imagine, but it can be understood clearly the future of Indian retail will largely depends on global players. Major Findings 1. The Retail Sector in India can be split up into two, the organized and the unorganized. The organized sector whose size is expected to triple by 2010 can be further split up into departmental stores, supermarkets, shopping malls etc. 2. In terms of value the size of the retail sector in India is $300 billion. The organized sector contributes about 4.6% to the total trade. 3. In terms of growth the FMCG retail sector is the fastest growing unit and the retail relating to household care, confectionery etc, have lagged behind.
Causes and Consequences of Attrition in Retail Industry Page 8
4. The foreign retail giants were initially restricted from making investments in India. But now FDI of 51% is permitted in India only through single branded retail outlets. Multi brand outlets are still beyond their reach. Again they can only enter the market through franchisees. In a nutshell we may conclude that the retail industry in India has a very bright future prospect. It is expected to enrich the Indian Economy in terms of income and employment generation. Retail Industry: Demand and Supply Drivers
Demand Drivers Interest rates Population Employment Personal disposable income Individual debt Retail Value Chain
Supply Drivers Competitors in the industry Size of the market Cost of the factors of production
Source : IMAP global retail industry report 2010
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WORLD MARKET
Retail Companies Brief description Operational formats Financials Expec ted Cap. Exp.(2 011) $3.9 billion USD Geograp hic Coverag e (2010) US: 75%; Rest of the world: 25% Future plans
Wal-Mart Stores, Inc. (US)
Offers a full time supermarket and a limited assortment of general merchandise with operations in three business segments: Wal-Mart U.S., International and Sams Club. Offers a range of food and non-food products. Carrefour SA's supermarket chains include, among others, Champion and Norte brands, which primarily offer food, clothing and household goods.
Cash & Carry/Wareh ouse Club, Discount Department Store, Hypermarket/ Supercenter/ Superstore, supermarket and online retail.
Revenue: $417 billion USD, yearover-year change: 0.95% Operating profit: $24.8 billion USD, year-overyear change: 5.1% Net income: $14.8 billion USD, yearover-year change: 7.0% Revenue: $122 billion USD, yearover-year change: (1.14%) Operating profit: $2.4 billion USD, year-overyear change: (39.0%) Net income: $650 million USD, yearover-year change: (74.2%)
Expects to add more than 600 stores during fiscal year 2011.
Carrefour S.A. (France)
Cash & Carry/Wareh ouse Club, Convenience /Forecourt Store, Discount Store, hypermarket, Supercenter/ Superstore, Supermarket and online retail store
NA
France: 45%; Europe(e xcept France): 33%; Latin America: 14%; Asia: 8%
In India, it is expected to set up 150 hypermarkets while in the global level it is planning to setup 50 supermarkets under the Carrefour Market banner and 30 convenience stores under the Carrefour express banner
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McKesson Corp. (US)
Distributes pharmaceutical products, medical surgical supplies, healthcare and beauty products and develops software to facilitate health enterprise. Also offers analytic, care management and patient solutions for payers. Specializes in health care supply chain services. Provides pharmaceutical and medical products and services to healthcare providers and manufacturers.
Drugs/me dicalsurgical equipmen t distributio n.
Revenue: $109 billion USD, year-over-year change: 1.94% Operating profit: $2 billion USD, yearover-year change: 17.7% Net income: $1.3 billion USD, yearover-year change: 53.5%
$81 million USD
US: 91%; Rest of the world: 9%
Planning to expand through acquisitions
Cardinal Health. (US)
Pharmac eutical distributio n, distributio n and consultin g, retail pharmacy franchisin g and online store Convenie nce/Forec ourt Store, Departme nt Store, Discount Departme nt Store, Hypermar ket/Super center/ Superstor e, Supermar ket and online retail.
Tesco Plc. (UK)
Tesco is an international retailer mainly dealing in food retailing. In addition it also provides retail banking and insurance services through its subsidiary Tesco Bank.
Revenue: $99 billion USD, year-over-year change: 2.6% Operating profit: $1.4 billion USD, year-over-year change: (2.9%) Net income: $642 million USD, yearover-year change: (44.2%) Revenue: $90 billion USD, year-over-year change: 5.59% Operating profit: $4.9 billion USD, year-over-year change: 5% Net income: $3.7billion USD, yearover-year change: 9.1%
$62.5 million USD
US: 99%; Rest of the world: 1%
Planning acquisitions to expand their role as a service provider in healthcare industry, along with investment in nuclear pharmacy business.
$5.5 billion USD
UK: 74%; Europe: 15%; Rest of the world: 11%
Planning to invest in retail and in banking operations
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The Kroger Co. (US)
A US based retailer which manufactures, processes and sells food products in its own supermarkets.
Convenie nce/Forec ourt Store, Hypermar ket/Super center/Su perstore, Other Specialty, Supermar ket and Online retail. Convenie nce/Forec ourt Store, Discount Departme nt Store, Electronic s Specialty, Other Specialty, Supermar ket and Online store Online Store
Woolworth s Ltd. (Australia)
Australia based retailer in the manufacturing, export and wholesale of processed foods. It also operates in hospitality business which includes hotels, pubs, F&B, and gaming operations.
Revenue: $80 billion USD, year-over-year change: 1% Operating profit: $2.1 billion USD, year-over-year change: (10.1%) Net income: $16 million USD, yearover-year change: (94.4%) Revenue: $46 billion USD, year-over-year change: 4.2% Operating profit: $2.7 billion USD, year-over-year change: 9.3% Net income: $1.8 billion USD, yearover-year change: 10.1%
$1.9 2.1 billion USD
US: 100%
Plan to invest in capital projects during 2010 with a strong focus towards remodels and infrastructure projects.
$1.8 billion USD
Australia: 92%; New Zealand: 8%
Plans to open new stores
eBay Inc. (US)
Operates an online trading community. Their service is used by buyers and sellers for the exchange of products and services. It also offers through a subsidiary a secure online payment service.
Revenue: $9 billion USD, year-over-year change: 2.1% Operating Income: $1.6 billion USD, year-over-year change: (29.6%) Net Income: $2.5 billion USD, yearover-year change: 34.2%
$157 million USD
US: 45%; Germany: 13%; UK: 12%; Rest of the world: 30%
Plans to tap more international markets
Source: IMAP global retail industry report 2010
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INDIAN MARKET Retail landscape in India
The retail industry in India gathered a new dimension with the setting up of the different International Brand Outlets, Hyper or Super markets, shopping malls and departmental stores. Key Players in the Indian Retail Sector:
The untapped scope of retailing has attracted superstores like WalMart into India, leaving behind the kiranas that served us for years. Such companies are basically IT based. The other important participants in the Indian Retail sector are Bata, Big Bazaar, Pantaloons, Archies, Cafe Coffee Day, landmark, Khadims, Crossword, to name a few. . According to the Union Minister of Commerce & Industry, Shri Kamal Nath, the organized retail sector is expected to grow to a value of Rs. 2,00,000 crore (US$45 billion) and may generate 10 to15 million jobs in next 5 years. This can happen in two forms- 2.5 million of these people may be associated directly with retailing and the rest 10 million people may be gainfully employed in related sectors that will be pulled up through the strong forward and backward integration. Future of organized retail in India looks bright. According to recent researches it is projected to grow at a rate of about 37% in 2007 and at a rate of 42% in 2008. It will capture a share of 10% of the total retailing by the end of 2010 linkage effects. However to compete in this sector one needs to have up-to-date market information for planning and decision making. The second most important requirement is to manage costs widely in order to earn at least normal profits in face of stiff competition.
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The Indian Retail IndustrySky is the limit In terms of the retail development index India ranks fifth. In Asia it occupies the second position, next to China. Among all the global markets, the Indian retail market is the most expanding. This is owing to absence in restriction at the entry level. So the large foreign companies can reap the benefits of economies scale by entering the green retail fields of India. There are many reasons why the retail industry in India can reach the zenith. Firstly the organized retail sector in India has a very low contribution to the entire retail sector in the country. Hence there is ample scope for the new players to achieve success in the backdrop of soaring disposable income of the upcoming generation. Secondly, not only have the incomes increased but there has been a sea change in the preferences of the consumers. These factors have acted as a stimulus for the ushering of foreign players retailing in apparels, accessories, electronic appliances etc. Large shopping malls have already mushroomed in the metropolitan cities. There still lies untapped potential in the Indian Retail Market Share of Market: Urban v/s Rural in India
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Food Clothing and Misc footwear consumer goods Durables Consumer Entertainment services 64 61 57 50 Urban Rural 44 33 36 39 43 50
56 67
Source: NSSO 5th round; KPMG in India Analysis 2005

FDI in Indian retail industry
Taking into consideration the pros and cons of introducing FDI in India, ICRIER has recommended 49% of FDI. The opening up of FDI in India is also expected to be gradual so that the domestic industries can tailor themselves according to the changes. At the formative stage, the idea was to start with 26% of FDI in this sector. But soon the idea changed as China's FDI moved up from 49% to 100% in the retail sector. While the government is continuing its plans to liberalize FDI in the retail sector in India, foreign companies like Wal-Mart are waiting on the threshold. They basically wish to enter into partnership with various multinational chains. FDI would bring about modern infrastructure that would help to boost the productivity of the organized retail sector in India. FDI is not allowed in the retail sector and this is the reason why many prominent global players like Dominos, Levis, Lee, Nike, Adidas, TGIF, Benetton, Swarovski, Sony, Sharp, Kodak etc are entering the retail market via licensee or franchisee. The opening up of the economy to FDI in the retail sector is also expected to generate employment. FDI can be a blessing instead of curse only if it produces backward linkages relating to production and manufacturing. It may also, in the process help to push up domestic production as well as exports. In the present scenario, 51% Foreign Direct Investment is permitted in India only through single brand retailing. The international retailers are entering the market through licensees just as Wal-Mart has entered through the franchisee, Bharti Enterprises.
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GROWTH OF THE INDUSTRY

An increasing number of people in India are turning to the services sector for employment due to the relative low compensation offered by the traditional agriculture and manufacturing sectors. The organized retail market is growing at 35 percent annually while growth of unorganized retail sector is pegged at 6 percent. The Retail Business in India is currently at the point of inflection. Rapid change with investments to the tune of US $ 25 billion is being planned by several Indian and multinational companies in the next 5 years. It is a huge industry in terms of size and according to management consulting firm Technopak Advisors Pvt. Ltd., it is valued at about US $ 350 billion. Organized retail is expected to garner about 16-18 percent of the total retail market in the next 5 years.
Growth of Retail Industry In India Retail and real estate are the two booming sectors of India in the present times. And if industry experts are to be believed, the prospects of both the sectors are mutually dependent on each other. Retail, one of Indias largest industries, has presently emerged as one of the most dynamic and fast paced industries of our times with several players entering the market. Accounting for over 10 per cent of the countrys GDP and around 8 per cent of the employment retailing in India is gradually inching its way toward becoming the next boom industry. India has topped the A.T. Kearneys annual Global Retail Development Index (GRDI) for the third consecutive year, maintaining its position as the most attractive market for retail investment. Retail industry is the most promising, emerging market for investment. In 2007, the retail trade in India had a share of 8-10% in GDP of the country. In 2009, it rose to 12%. It was also expected to reach 22% by 2010. The enormous growth of the retail industry has created a huge demand for real estate. Property developers are
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creating retail real estate at an aggressive pace and by 2010, 300 malls were estimated to be operational in the country. With over 1,000 hypermarkets and 3,000 supermarkets projected to come up by 2011, India will need additional retail space of 700,000,000 sq ft (65,000,000 m2) as compared to today. Current projections on construction point to a supply of just 200,000,000 sq ft (19,000,000 m2), leaving a gap of 500,000,000 sq ft (46,000,000 m2) that needs to be filled, at a cost of US$15 18 billion. According to the Icrier report, the retail business in India is estimated to grow at 13% from $322 billion in 2006-07 to $590 billion in 201112. The unorganized retail sector is expected to grow at about 10% per annum with sales expected to rise from $ 309 billion in 2006-07 to $ 496 billion in 2011-12. As the contemporary retail sector in India is reflected in sprawling shopping centers, multiplex- malls and huge complexes offer shopping, entertainment and food all under one roof, the concept of shopping has altered in terms of format and consumer buying behavior, ushering in a revolution in shopping in India. This has also contributed to large-scale investments in the real estate sector with major national and global players investing in developing the infrastructure and construction of the retailing business.
Source: Copyright @ 2011 The Viewspaper Growth of Retail Industry Globally Retail, with total sales of $ 6.6 trillion, is the worlds largest private industry ahead of financial industries $ 5.1 trillion. It is also home to a number
of the worlds largest enterprises. Over 50 of the Fortune 500 companies, and around 25 of the Asian top 500 companies, are retailers. The industry accounts for over 8 percent of the GDP in western economies. Thus retail industry is continuously growing throughout the world.
About Global Retail Development Index It is published since 2002, the GRDI helps retailers prioritize their global development strategies by ranking the retail expansion attractiveness of emerging countries based on a set of variables including economic and political risk, retail market attractiveness, retail saturation levels, and modern retailing sales area and sales growth. The GRDI focuses on opportunities for mass merchant and food retailers, which are typically the bellwether for modern retailing concepts in a country. 2010 Global Retail Development Index Retail executives have learned again that their core markets are not the powerful engines of growth they would likeUnited States and European GDP growth in 2010 is expected to hover around 3 percent and 1 percent, respectively. Today, reliance on developing countries for future growth is no longer a nice-to-have, but is a necessity. While the worlds biggest developed economies slowly resume their growth trajectories, developing economies in Asia, Latin America and the Middle East appear poised for remarkable growth. 2009 Global Retail Development Index In a year when consumer spending and retail sales are declining in home markets, global expansion to emerging markets increases in importance as a strategy for growth. Unlike most developed markets, GDP in emerging markets is expected to continue to grow, albeit at a slower rate. The larger, more resilient emerging markets sit atop the 2009 GRDI as they are most likely to lead the economic recovery.
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2008 Global Retail Development Index Vietnam has ended India's three-year reign as the most attractive emerging market destination for retail investment.
2007 Global Retail Development Index Now in its sixth year, the GRDI identifies windows of opportunity to help retailers make strategic investments in exciting new markets.
2006 Global Retail Development Index As the pace of globalization quickens so does the race into new markets. But success in this race does not necessarily go to the swiftest. Rather, it goes to companies that make the right moves at the right times. Location is still important, but timing is the name of this retail game.
2005 Global Retail Development Index
The global retail game is changing. While players surged into new markets in 2004, this year they are more focused on rebalancing their positions. 2004 Global Retail Development Index
After a pullback in 2003, global retail is back on track for growth. The most significant growth is taking place in emerging markets where about two-thirds of global retailers interviewed which are planning to increase their activities this year. Source: www.google.com/Globalretaildevelopmentindex
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The Growth Drivers For Retail Industry 1) BABY BOOMERS: The single largest contributor to the growth of organized retailing was the boom in consumer spending after the Second World War. This was caused largely due an increasing population, when America witnessed 64 million births in an 18-year period. Consumer preferences changed and spending patterns became significant drivers for detail expansion thus making retailing an attractive business. 2) INCREASED PER CAPITA SPENDING: The effect of population increase was further accentuated by an increase in per capita spending. Per capita personal consumption expenditure in the US, rose from $1,796 in 1959 to $22,391 in 1999. Even after adjusting for inflation, the per Capita Expenditure in 1999 was more than double of that in 1959. 3) DUAL INCOME FAMILIES: Advent of dual income families also helped in the growth of retail sector. A dual family can spend more but has very little time available for shopping. Thus, convenience and speed of service became crucial parameters. 4) URBANISATIONS: Increased urbanization has led to high customer density areas thus enabling retailers to use lesser number of stores to target the same number of customers. Aggregation of demand that occurs due to urbanization helps a retailer in reaping the economies of scale. 5) COVERING DISTANCE HAS BECOME EASIER: With increased automobile penetration and an overall improvement in the transportation infrastructure, covering distances has become easier than before. Now a customer can travel miles to reach a particular shop, if he/she sees value in shopping.
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Growth Potential The key growth areas include the urban, luxury segment on one end of the spectrum and serving the rural sector on the other. In addition, government policy encouraging FDI in the segment has resulted in a plethora of international retailers keen on entering the market; American retail giant Wal-Mart has tied-up with Bharti Enterprises and global coffee giant Starbucks' has tied up with PVR Limited. In addition, Carrefour, Boots and others are also expected to come in. With so much action, it is natural that there is a huge scope for employment opportunities, and experts have estimated that the sector will generate employment for ~ 2.5 million people in 20101. The top retail companies in India include the Raheja Group, Reliance Retail, Tata Trent, Future Group, RPG Retail, and Ebony Retail Holdings.
Fastest Growing Retail Segments in India

18 18 27 27 55 18 91 Food & Grocery Clothing Furniture & Fixture Pharmacy Watch and Jwellery Durables
Fastest Growing Retail Formats in India

9% 18% 9% 45% 45% Speciality Supermarket Hypermarket Discount Deparmental Store Convenience
27% 36%
Source: KPMG and FCCI report
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Future Prospects There are many opportunities for those seeking to enter this sector, and entry level positions such as sales executives dont even require a degree. Naturally, the higher order jobs for graduates with relevant degrees and work experience, involve more responsibility, challenges and remuneration. MBAs are increasingly being recruited, which marks a change of HR policy, from the traditional preference to hire those from the FMCG and hospitality sectors. In fact, senior executives in retail such as operations heads are extremely well looked after, and HR consultants believe they are paid in excess of Rs. 60 lakes. The good news for graduates is that since the sector is so young and vibrant, career growth happens very rapidly, and these positions are very achievable in a compressed time period. Successful candidates across all levels are those who are dynamic, able to multi-task and are equipped with great communication skills.
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2. MAJOR COMPANIES IN RETAIL INDUSTRY

Top 10 Major Companies in India No. 1 2 3 4 5 6 7 8 9 10 Name of Group Raheja Group The Tata Group Future Group Lifestyle India RPG Retail Raheja Group Lifestyle Group Raheja Group Piramals Ebony Name of Retail Outlets Shoppers Stop Westside (Trent) Pantaloon (Big Bazaar) Lifestyle Food world, Music world Crossword Wills Lifestyle Globus (Pyramid & Crosswords) Ebony Retail Holdings Ltd.
Source: website (top 10 retail companies in India)
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Top 15 Major Companies in the world

Rank Country origin of Name Company of Formats Retail average sales 1 2 US France Walmart Carrefour Discount, Hypermarket, Superstore, Warehouse Cash & Carry, Convenience, Discount, Supermarket 3 4 5 6 Netherlands US US Germany Royal Ahold Home Depot Kroger Metro AG Cash Drug DIY, Speciality Convenience, Discount, Speciality, Supermarket Cash & Carry, Department, DIY, Hypermarket 7 8 9 10 11 12 13 US US US US UK US UK Target Albertsons Kmart Sears Safeway Costco Tesco Department, Discount Drug, warehouse Discount, Superstore Department, Speciality Supermarket Warehouse Convenience, Hypermarket 14 15 US Germany JCPenney Aldi Einkauf Department, order Discount 313100 Drug, Mail 32004 Department, 34301 34137 33614 Canada, US, UK Canada, Japan, Maxico, Taiwan, US, UK Hungary, US, UK Brazil, Austria, Mexico, Puetro Rico, US Australia, UK, US, Belgium, Denmark, Malasiya, Poland, S.Korea, Taiwan, Mail order, 36151 53843 US Canada, US US Supermarket, 49355 37931 43357 Austria, Russia,China Belgium, France, Poland, Germany, UK, Vietnam US US 53553 50098 & Carry, Discount, 57976 Hypermarket, 61565 217799 Argentina, Argentina, Brazil, S.korea Argentina, Brazil, Chile, Czech Canada, Mexico, US US Chile, Brazil, Belgium, China, Countries of operation
Canada, Mexico, UK,US
Columbia, France, Spain,
Source: 2003 Global Retail Report, Deloitte Touche Tohmatsu
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3. PRODUCT PROFILE (MAJOR PRODUCTS)

Retail is usually classified by type of products as follows:

Food products Hard goods ("hard-line retailers") - appliances, electronics, furniture, sporting goods, etc. Soft goods - clothing, apparel, and other fabrics There are the following types of retailers (retail formats) by marketing strategy on the basis of type of products.
Department stores - very large stores offering a huge assortment of "soft" and "hard goods; often bear a resemblance to a collection of specialty stores. A retailer of such store carries variety of categories and has broad assortment at average price. They offer considerable customer service.
Discount stores - tend to offer a wide array of products and services, but they compete mainly on price offers extensive assortment of merchandise at affordable and cut-rate prices. Normally retailers sell less fashion-oriented brands.
Supermarkets - sell mostly food products; Warehouse stores - warehouses that offer low-cost, often high-quantity goods piled on pallets or steel shelves; warehouse clubs charge a membership fee;
Variety stores or "dollar stores" - these offer extremely low-cost goods, with limited selection; Demographic - retailers that aim at one particular segment (e.g., high-end retailers focusing on wealthy individuals). Mom-And-Pop (or Kirana Stores as they call them in India): is a retail outlet that is owned and operated by individuals. The range of products are very selective and few in numbers. These stores are seen in local community often are family-run businesses. The square feet area of the store depends on the store holder.
General store - a rural store that supplies the main needs for the local community; Specialty stores: A typical specialty store gives attention to a particular category and provides high level of service to the customers. A pet store that
specializes in selling dog food would be regarded as a specialty store. However, branded stores also come under this format. For example if a customer visits a Reebok or Gap store then they find just Reebok and Gap products in the respective stores.
Convenience stores: It is essentially found in residential areas. They provide limited amount of merchandise at more than average prices with a speedy checkout. This store is ideal for emergency and immediate purchases.
Hypermarkets: provides variety and huge volumes of exclusive merchandise at low margins. The operating cost is comparatively less than other retail formats. A classic example is the Metro in Bangalore.
Supermarkets: is a self service store consisting mainly of grocery and limited products on non food items. They may adopt a Hi-Lo or an EDLP strategy for pricing. The supermarkets can be anywhere between 20,000-40,000 square feet. Example: SPAR supermarket.
Malls: has a range of retail shops at a single outlet. They endow with products, food and entertainment under a roof. Example: Sigma mall and Garuda mall in Bangalore, Express Avenue in Chennai.
Category killers or Category Specialist: By supplying wide assortment in a single category for lower prices a retailer can "kill" that category for other retailers. For few categories, such as electronics, the products are displayed at the centre of the store and sales person will be available to address customer queries and give suggestions when required. Other retail format stores are forced to reduce the prices if a category specialist retail store is present in the vicinity. For example: Pai Electronics store in Bangalore, Tata Croma.
E-tailers: The customer can shop and order through internet and the merchandise are dropped at the customer's doorstep. Here the retailers use drop shipping technique. They accept the payment for the product but the customer receives the product directly from the manufacturer or a wholesaler. This format is ideal for customers who do not want to travel to retail stores and are interested in home shopping. However it is important for the customer to be wary about defective products and non secure credit card transaction. Example: Amazon and Ebay.
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Vending Machines: This is an automated piece of equipment wherein customers can drop in the money in machine and acquire the products. For example: Soft drinks vending at Bangalore Airport. Other types of retail store include:
Automated Retail stores are self service, robotic kiosks located in airports, malls and grocery stores. The stores accept credit cards and are usually open 24/7. Examples include ZoomShops and Redbox.
Big-box
stores
encompass
larger
department,
discount,
general
merchandise, and warehouse stores. Some stores take a no frills approach, while others are "mid-range" or "high end", depending on what income level they target.
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PART-II PRIMARY STUDY
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4. INTRODUCTION OF THE STUDY
4.1 Literature Review What is Attrition? A reduction in the number of employees through retirement, resignation or death is called Attrition. Attrition is also called total turnover or wastage rate.
Why do Employees Leave the Organization? It is said that people leave their bosses, not organizations. When employees are happy with their superiors they choose to stay, if not they look for a switch.
Following are the reasons to Leave the Boss : 1) Job not as expected 2) Job does not fit talents and interests. 3) Little or no feedback/coaching 4) No hope for career growth 5) Feel devalued and unrecognized 6) Feel overworked and stressed out 7) Lack of trust and confidence in boss/leaders
What is Attrition Rate? The rate of shrinkage in size or number of employees is known as Attrition rate. It is usually expressed in percentage.
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How to calculate Attrition rate? There are different formulae to calculate the attrition rate of a company. This is because of certain factors as:
The employee base changes each month. So if a company has 1,000 employees in April 2004 and 2,000 in March 2005, then they may take their base as 2,000 or as 1,500 (average for the year). If the number of employees who left is 300, then the attrition figure could be 15 percent or 20 percent depending on what base you take.
Many firms may not include attrition of fresher who leave because of higher studies or within three months of joining. In some cases, attrition of poor performers may also not be treated as attrition. Calculating attrition rate: We have taken following formula by which Attrition rate can be calculated:
Attrition =(No. of employees who left in the year / average employees in the year) x 100 Thus, if the company had 1,000 employees in April 2004, 2,000 in March 2005, and 300 quit in the year, then the average employee strength is 1,500 and attrition is 100 x (300/1500) = 20 percent. Besides this, there are various other types of attrition that should be taken into account. These are:
Fresher attrition that tells the number of freshers who left the organization within one year. It tells how many are using the company as a springboard or a launch pad.
Infant mortality that is the percentage of people who left the organization within one year. This indicates the ease with which people adapt to the company.
Critical resource attrition which tell the attrition in terms of key personnel like senior executives leaving the organization. Low performance attrition: It tells the attrition of those who left due to poor performance.
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Attrition Costs One of the best methods for calculating the cost of turnover takes into account expenses involved to replace an employee leaving an organization. These expenses are: A. Recruitment cost The cost to the business when hiring new employees includes the following six factors plus 10 percent for incidentals such as background screening:

Time spent on sourcing replacement Time spent on recruitment and selection Travel expenses, if any Re-location costs, if any Training/ramp-up time Background/reference screening
B. Training and development cost To estimate the cost of training and developing new employees, cost of new hires must be taken into consideration. This will mean direct and indirect costs, and can be largely classified under the following heads:

Training materials Technology Employee benefits Trainers Time C. Administration cost They include:
Set up communication systems Add employees to the HR system Set up the new hires workspace Set up ID-cards, access cards, etc
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The Brighter Side of Attrition

A poor performer is replaced by a more effective employee A senior retirement allows the promotion or acquisition of welcome 'fresh blood'. When business is slack it is straight forward to hold off filling recently created vacancies for some weeks.
Diagnosing Attrition Commonly Used Techniques in the Industry are as follows. 1. Surveys: They are commonly used as part of the information gathering process. They are a reasonable way of obtaining relevant information, though response rates are often disappointing. Questionnaires need to be designed carefully to be effective. They should be easy to use, anonymous and fairly brief. Questions can be open or closed, multiple choice answers, ranking of items or checklist format. 2. Exit Interviews: Exit interviews are used by the majority of companies. They tend to be conducted just before an employee leaves, though some firms wait until after the departure. Exit interviews will normally to be done in the form of a questionnaire, though one to one interviews are also used.
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In majority of information regarding attrition, competitive salary is a vital part of the entire concept of employee retention. However, a unique concept was addressed in an article written by Barry Sweeny (2008). In this article, he suggested that moving from only providing educators with an orientation program, and mentoring support to a more complete induction program. Attainable retention rates may be as high as 96% over a five year timeframe. Clearly, even when a district cannot offer top salary, it can still effectively compete for and keep quality employee by treating them professionally and by expecting and supporting effective employee performance. (Sweeny report- 2008 ) Some administrators have the viewpoint that high turnover is a mark of an effective the viewpoint that high turnover is a mark of an effective organization. (Ivancevich & Matteson report, 2002). This viewpoint is not shared by all an is the subject of much debate. Turnover leads to many categories of losses for the organization including financial, invested time and knowledge. (Health field report, 2009), This is not to make the assumption that all turnover is bad; loss of employees that cause problems of perform below standard may be beneficial to the organization. By considering the topic from this perspective, the issue of turnover needs to focus on frequency and who is leaving. Ivanceivich suggested that there is no ideal method for retaining the more proficient employees, although this would prove to be beneficial to the organization. Other thought on this issue are that some turnovers considered to be a normal amount. There are many be some benefit to turnover, including loss of troublemakers and replacement of higher paid personnel for personnel at a lower rate of pay. (Buford, Jr. & Linder report, 2002). It seems that there is no data to show that these outweigh the cost that will be incurred in the recruitment, advertising, recruitment, hiring and training of these personnel. The theories for retaining employees varied according to the author of the particular article. In looking at some of the different viewpoints, one must begin with the money. Many of the other theories will vary according
to the individual personalities of the employees. (Heathfesld report, 2009) Salary is considered a necessary component, but it is not the only factor that enables organizations to attract and retain quality employees.(Griffith report, 2006) The pay issue not only will encompass competitiveness of pay, but also other areas as well. One of these areas includes equity of pay, employees become frustrated if they feel the pay is not fair within the industry as well as within the organization. (Employment Retention strategy report). Another area of concern to employees regarding pay involved structured pay range. According to Griffeth additional important issues that area also part of the financial side and are a part of the benefits package include medical insurance. Post retirement insurance. Some of the other issues covered were those that had no monetary value or cost. These included respect and trust. People expect and want to be treated with respect, and trust is a vital part of the effective and open communication that is desired by most. (Heathfield report, 2009) . Some additional ideas/theories presented involve simple rewards and recognition for employees which can be as effortless as an occasional thank you. (Griffeth, Jr., 2006) Most people crave additional responsibilities, this allows the man opportunity to grow and develop. This does not necessarily require a promotion but allows growth of the employees within organization and development of additional skills. (Employment strategies report) Employee satisfaction is one of the issue regarding high turnover. In more than one article and textbook the issue of employee satisfaction was discussed. It seems to have significant influence on the attrition and retention issues. Issues that cause dissatisfaction within organization are often reasons employees leave. (Employment Retention strategies report)
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Study on Attrition conducted by ASSOCHAM in different sectors : High Attrition rate continue to plague services: ASSOCHAM Survey Findings Unabated level of attrition rate continues to be plaguing India Inc spreading fast from IT and ITes to other service sectors such as civil aviation, financial services, retail and engineering, according to an ASSOCHAM Eco Pulse Study. While the attrition rate in IT and ITes sector has slowed by 10 per cent to fall in the range of 25-30 per cent in the year 2007 as compared to 35-40 per cent rate in previous year but the service sectors at the crucial juncture of their growth including civil aviation, financial services and retail are facing tough times in retaining their staff. Massive expansion in the retail sector is accompanied with rapidly increasing attrition rate to even to the extent of 50 per cent in few cases. The companies now prefer to sign bonds for three years as they are imparting them the necessary training and specialized knowledge of retail functions. Level of attrition rate in the manufacturing sector has remained almost same at 20 per cent in 2007 as previous year. The functional areas like those of production, maintenance and safety controls bear highest attrition problem. The Study has found that the maximum of attrition is taking place among the employees who are in age group of 26 to 30 years. It found that the segments of employees who are most vulnerable to change are with experience range between 2 to 4 years. The most stable chunk of employees is found to be in age 39 to 45 years as they find themselves to be unsettled in their jobs and companies that they have been associated.
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Growth in construction activities in the economy has led to surge in demand for engineers, resulting into increase in their movement across companies at rate of 25 per cent. The engineering companies are sorting to pay hikes and growth assurance, to curtail the attrition level.
Attrition trend also reveals that women employees are less prone to frequent job changing than their male counterparts. For every 10 males jumping the fence by changing the job, there was only 2 females crossing over.
Reasons for attrition according to ASSOCHAM Dearth of professionals, technical nature of operations, increasing financeKPOs and attractive salary packages have led to rising job hopping at entry and middle level in the financial services sector. The immediate gains in salary package was found to be responsible for job change in almost all the sectors, however the growth potential remains an important reason prompting employee movement.
Attrition Rate study conducted by NASSCOM in IT Sector Almost every sector in India is facing high rates of attrition these days. A recent study revealed that employees leave either because of compensation reasons or due to better growth opportunities. According to NASSCOM, Indian IT-ITES industry recorded US$ 39.6 billion in revenues in 2006-07. The revenue of US$ 49-50 billion has been projected in 2007-08 at a growth rate of 24-27 per cent. The IT industry's contribution to GDP was 4.8 per cent in 2005-06.
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Attrition Rate study conducted by BES and Data Quest in IT Sector Though the IT/ITES sector is booming, it is constantly facing high attrition rates of 25% - 30%. Even the big brands are also facing the same problem. Below are the details of attrition rates of various players in IT sector. According to the survey conducted by BES and Data Quest, Sierra Atlantic recorded highest attrition rate (29%) followed by Kanbay with 25% and Accel Frontline with 20 percent.
Source: BES Survey 2006 : DQ-IDC
Source: Retention Strategy Report 200

Employee Attrition Low now but expected to worsen by KPMG and FICCI report Globally retailing is a high personnel turnover industry. Even large retailers face attrition of 40 to 60% annually. Indian attrition rate levels are currently low compared to global level. However it is expected to worsen given the rapid expansion being witnessed and the existing shortage facing the industry. To make matters worse, retail has to compete other high growth industry like telecom, insurance and more specifically ITeS/BPO firms which look for similar skills sets like customer orientation, selling skills, communication skills etc. Respondents in this survey cited Ites as the other sector to which most in store personnel migrate to from retailing. Attrition in Retail
50% 40% 14% 29% 14% 30% 1st Qtr 2nd Qtr 3rd Qtr 43% 4th Qtr 20% 10% 0% 2003 2004 2005
Attrition in ITes
% Respndents
Source: KPMG in Indian retail survey 2005
Source: NASSCOM survey
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Attrition rate analysis conducted by ASSOCHAM in BPO sector by April 2011 The BPO industry is facing serious challenges vis- -vis shortage of skilled and educated workers as the attrition rate in Indias BPO sector has risen phenomenally at the rate of 55 per cent with a significant visible movement in mid and senior management levels, according to an industry specific analysis of the Associated Chamber of Commerce and Industry of India (ASSOCHAM). Although, the BPO sector in India has been very popular since the beginning, as it has opened up plenty of job opportunities and has totted up huge revenue, but the awfully high attrition rate coupled with talent crisis has plagued the sector since the very beginning, said ASSOCHAM Secretary General, D.S. Rawat. As per the ASSOCHAM analysis BPO-ITes sector has emerged at the top with highest attrition rate of 65 per cent during the course of last two years, giving a serious jolt to India prospects which was till recently the most sought after BPO destination. Services offered by the IT/ITes and BPO in the domains of pharma and BFSI (Banking, Financial Services and Insurance) have registered an attrition rate of around 60 per cent. In the domains of retail and IT sector an attrition rate of around 55 per cent has been recorded. Auto, FMCG, Manufacturing and infrastructure sectors have registered an attrition rate ranging between 45 to 50 per cent. Amongst all the relevant sectors the services offered by the IT/ITes and BPO in the domain of energy sector has recorded an attrition rate of 45 percent. The literature research and review for this project produced a vast amount of information concerning the employees attrition and retention. The literature review revealed many variables in the process of retention of employees in the private sector and many of which could be adopted by the public sector. The literature review articles covered topics such as: Salaries, benefits, job satisfaction and recognition. These topics revealed significant number of areas that organizations can improve upon, which could lead to reduce high attrition rate.
4.2 Background Of The Study
Most organizations dont have a problem with headcount; they have a problem with brain count. - Allan Leighton (ex- president and CEO of Wal-mart Europe) According to KPMG report(2006), Globally Retailing is a high people turnover industry with even the larger retailers facing attrition between 40 to 60% annually. As organized retailing is at a nascent stage in India, Attrition is not yet an issue at least at the middle and the senior management level. However, with rapid growth in retailing, the demand for managers with good retailing experience set to increase, hence attrition level are expected to worsen. Indian attrition levels are currently low compare to global standards. Retaining talented employees from getting poached along with reducing turnover cost are the key areas that need to be given some serious thought. Huge amount are being spent on hiring and training the recruits and hence the cost of employee turnover adds a lot of money to a company's expenses. Employees who leave the organizations take along with them valuable information regarding the company, its customers, current projects and other confidential data. Employees build relationship with customers and clients and helps the business to grow but once they leave, such relationships are served and can cause potential customer loss. The unspoken negativity can cause more turnover. Time is crucial factor for a business to succeed and huge amount of it goes in hiring and training new employees, also involved large amount of money which is direct loss to the company, if employee leaves the organization.
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4.3 Problem Statement And Importance Of Study Problem statement Having Human Resource Management as our specialisation and having Retailing as our sectorial subject in the MBA curriculum, we found that the most challenging issue faced by corporate is to retain their employees as today's global workforce is more mobile than ever before. Further, recent studies on Retail sector shows that currently Retail Industry is facing 55% ( assocham studySource:2011 attrition rate. Thus, high turnover is of considerable concern for manager because it disrupts normal operations and necessitates the costly selection and training of replacements to regain the lost customers and suppliers contacts. Problem statement is to study major attributes which plays major role in high attrition rate and its impact on organisation as a whole. On the basis of analysis, we will suggest different innovative strategies which help retail industry employer to reduce attrition level to greater extent.
Importance of Study Study will act as secondary source for management students for conducting further research which leads to their career growth. For researchers, it will work as authentic source to support their research paper. Study will also helpful to HR academicians to make their students aware about attrition problem. Despite increase globalization and fluctuating economic conditions, most employers are now struggling hard to keep good employees. So this research provides assistance to employers To identify the most common reasons about why people leave their jobs To develop various retention strategies to retain knowledgeable
in retail sector. employees.

Study will also identify kind of HR practices different retail industries are following in their retail store. Research on causes and consequences of attrition in retail industry helps retailer to improve their employee turnover rate and retain their key staff. Study will make aware employees about their role and contribution in organization's success and their engagement level with organization.
4.4 Objectives Of Study To study the common reasons of employee voluntarily leaving or staying in organization. To suggest the strategies and steps for reducing turnover and improving retention. To study efforts made by organization to retain employee. To study various career development programs offered by the organization. To study the impact of induction & training programs on retention of employees. To determine the organizational climate.
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RESEARCH METHODOLOGY
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5 RESEARCH METHODOLOGY
5.1 Research Design The exploratory research design is adopted for this project.
5.2 Sources Of Data Primary Source: Primary data required for the study was been collected through interview of sales manager and questionnaire method. Secondary Source: It was collected through published books (like personnel today, Hr review), journals, Company records, newspapers and internet. The data collected by the researcher are tabulated and analyzed in such a way to make interpretations.
5.3 Data Collection Method For the purpose of the study the necessary data has been collected from Primary and Secondary methods.
5.4 Population The data are collected through survey and books, reports, newspapers and internet. We have randomly chosen sales employees from different retail stores such as D-mart, More, Mangal Bazaar, Health care MR. The study sample constitutes 50 respondents in research area.
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Sr.No 1 2 3 4
Retail Store More(FMCG) D-mart(Apparel) Mangal Bazaar Pharma-Health care(MR)
Population No of Respondents 32 15 5 25 17 3 5 25
5.5 Sampling Method Non probability Convenience Random Sampling.
5.6 Data Collection Instrument We have used a structured questionnaire as a research instrument tool which consists of close ended questions, multiple choice and questions based on Likerts scale in order to get data. All the questions in the questionnaire are organized in such a way that elicits all the relevant information that is needed for the study.
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6.DATA ANALYSIS AND INTERPRETATION
Sr. No
Age group 15-25 26-35 36-45
Female 9 17 3 29
Male 8 9 4 21
Total
18 16 14 12 10 8 6 4 2 0 Female Male 35-45 26-35 15-25 15-25 26-35 35-45
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1. I served for ________________ years/months in this store.
0 3 Yrs Employee (%) 44 88%
4 8 Yrs 6 12%
frequency of employees
100 80 60 40 20 0 0 - 3 yrs 4 - 8 yrs Employee
Interpretation 1 From the analysis we come know that majority of the respondents (88%) are working in retail organizations for 3years or less than that. It shows that majority of the employees did not continued with the same organization for more than 3 years. Loyalty factor is missing here.
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2. Previously engaged in any job? YES / NO
Yes Employee (%) 42 84%
No 8 6%
45 40 35 30 25 20 15 10 5 0 Yes No
Employees
Interpretatopm 2 84% of respondents are previously engaged in job and 16% of respondents are not previously engaged in any job but they are the fresher for organization.
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3. If YES, then put tick mark on the sector type of your previous organization in the given option below.
Retail Insurance Health Manufacturing Others care Employee 26 (%) 52% 10 20% 4 8% 1 2% 1 2%
Not 8 16%
(Education) Applicable
30 25 20 15 10 5 0
Employees
Interpretation 3 Majority of respondents were earlier engaged in Retail sector and some of were engaged in Insurance, Healthcare, Manufacturing and Educcation. So we can idntify that retal sales employee most probably go the same retail sales job after leaving one retail sales job.
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4. Reasons for leaving earlier job.
Retail Monotonous work Long and Odd working Hours No Lack promotion Higher salary Higher education No personal life Problem peers Lack security Others (location) of job with 18 growth 2 of 9
Insurance 1
Healthcare
Manufacturing
Others (Education)
Not applicable
3 2
2 2 1
opportunities
1 1
Not applicable
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Chart Title
Monotonous work Lack of Promotion No personal life Others(Location) 18 Long & Odd working hours Higer Salary Problem with peers Not Applicable No growth opportunities Higher Education Lack of job security
9 8
3 2 1 2
3 22 1 1 1 1
Retail
Insurance
Health Care
Manufacuring Others (Education) Not Applicable
Interpretation 4 Majority retail employees leave their jobs for higher salary and lack of promotion. Some of employees leave their jobs due to other problems like monotonous work, long and odd working hours, no growth opportunities, no personal life and problems with peers and boss.
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5. How does the present company hire an employee?
Internal recruitme nt Employee (%) 2 4%
Advertisement 27 54%
Employment exchange -
Employment agencies 2 4%
Educational Institutions -
Recommreferrals 19 38%
Any
endations/ other -
30 25 20 15 10 5 0 Employee
Interpretation 5 Retail Organizations generally hire their sales employees through advertisement and recommendations/referrals. While some of them also do internal recruitment for higher and middle level employees and some of them make a use of employment agency.
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6. Does company perform any of the tasks given below for employee retention in the organization?
Tasks performed by the company Pay for performance Recognition for outstanding performance Encourage upward direction of communication Open door policy On the job training & development programmes Promote employee growth Provide challenging opportunity Any other ( taking written exam for promotion purpose)
Employee 39 18 4 3 16 3 12 6
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40 30 20 10 0
frequency of employee
Interpretation: 6 From the analysis, we can interpret that retail organizations are providing financial as well as nonfinancial rewards to their employee in terms of pay for performance and recognition for performance. Some organizations are also conducting qualitative training and challenging opportunity. Many organizations are performing more than one task. In other tasks they are also conducting written exams for promotion purpose.i.e More
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RATE YOUR AGREEMENT OR DISAGREEMENT WITH THE NEXT STATEMENTS BY PUTTING TICK MARK CLOSEST TO YOUR OPINION. 7. I find my job satisfying. Totally agree Employee 10 (%) 20% Somewhat No agree 20 40% opinion 5 10% Somewhat Disagree 13 26% Totally Disagree 2 4%
Totally disagree, 2
Somewhat disagree, 13
Totally agree, 10
No opinion, 5
Somewhat agree, 20
Interpretation 7 Majority employees are satisfied with their job and 40% of employees are not happy with their job.
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8. I find the department has a fearless culture (Being able to speak up and speak against the status quo without fear of retribution.) Totally agree Employee 12 (%) 24% Somewhat No agree 24 48% opinion 8 16% Somewhat Disagree 4 8% Totally Disagree 2 4%
Somewhat Totally disagree, 2 disagree, 4
Totally agree, 12 No opinion, 8
Somewhat agree, 24
Interpretation 8 Majority employees believe that their retail organizations are having fearless culture and they feel free to speak out problems regarding sales, customers as well as products.
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9. I am provided opportunities for personal growth within the job environment (Job sharing, task forces, conferences and expanded responsibilities.) Totally agree Employee 11 (%) 22% Somewhat No agree 27 54% opinion 6 12% Somewhat Disagree 4 8% Totally Disagree 2 4%
Totally agree, 11 No opinion, 6
Somewhat agree, 27
Interpretation 9 From the analysis we can say that all retail organizations are providing career and growth opportunities to their employees.
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10. I am consistently aware of the departments organizational direction (Knowing the mission, vision, strategies and goals.) Totally agree Employee 24 (%) 48% Somewhat No agree 24 48% opinion 1 2% Somewhat Disagree 0 0% Totally Disagree 1 2%
Totally disagree, 2 Somewhat disagree, 0 No opinion, 1
Totally agree, 24 Somewhat agree, 24
Interpretation 10 All employees are generally aware about organization's mission, vision, strategies and goals and management is providing them all guidance regarding company policies and procedures on continuous basis.
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11. The department recognizes my work-life balance needs (Seeks to consider the demands of work with the need to deal with personal and family issues.)
Totally agree Employee 3 (%) 6%
Somewhat No agree 18 36% opinion 7 14%
Somewhat Disagree 20 40%
Totally Disagree 2 4%
Totally disagree, 2 Totally agree, 3
Somewhat agree, 18
No opinion, 7
Interpretation 11 Due to long working hours, life of retail employees becomes stressful. On the other side they are willing to work in the retail industry they do necessary adjustments related to their working hours.
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12. Pay for the job for employees adequate. Totally agree Employee 15 (%) 30% Somewhat No agree 26 52% opinion 5 10% Somewhat Disagree 3 6% Totally Disagree 1 2%
No opinion, 5 Totally agree, 15
Somewhat agree, 26
Interpretation 12 Employees are paid for their performance and their pay is adequate in retail sector.
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13. I am satisfied with training provided by company through probation period. Totally agree Employee 17 (%) 34% Somewhat No agree 20 40% opinion 4 8% Somewhat Disagree 4 8% Totally Disagree 5 10%
Totally disagree, 5 Somewhat disagree, 4
No opinion, 4
Totally agree, 17
Somewhat agree, 20
Interpretation 13 Majority of the employees are satisfied with the training provided to them by their retail organizations.
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14. Company providing flexi time working. Totally agree Employee 0 (%) 0% Somewhat No agree 8 16% opinion 7 14% Somewhat Disagree 25 50% Totally Disagree 10 20%
Totally agree, 0
Somewhat agree, 8 Totally disagree, 10 No opinion, 7
Interpretation 14 Retail organizations do not provide flexi time hours to their employees.
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15. Management considers the other aspect like secure career, benefits, perks & communication. Totally agree Employee 2 (%) 4% Somewhat No agree 17 34% opinion 10 20% Somewhat Disagree 17 34% Totally Disagree 4 8%
Totally Totally agree, 2 disagree, 4
Somewhat agree, 17
No opinion, 10
Interpretation 15 & 16 Some retail organizations consider other aspects like secure career, benefits, perks & communication while some are not following those aspects. But few organizations like More, Westside are not providing the bonuses to their employees during festivals like diwali, kite flying etc.
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17. Company considers human resource as an asset rather than liability. Totally agree Employee 23 (%) 46% Somewhat No agree 17 34% opinion 4 8% Somewhat Disagree 6 6% Totally Disagree 0 0%
Totally disagree, 0 Somewhat disagree, 6
No opinion, 4
Totally agree, 23 Somewhat agree, 17
Interpretation- 17 Retail organizations consider all employees as an asset rather than liability.
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18. Company arranging regular informal meetings to give the opportunity to employees to feel that they belong to the company and the company belongs to them. Totally agree Employee 16 (%) 32% Somewhat No agree 28 56% opinion 2 4% Somewhat Disagree 2 4% Totally Disagree 2 4%
Somewhat Totally disagree, 2 disagree, 2 No opinion, 2
Totally agree, 16
Somewhat agree, 28
Interpretation 18 Retail organizations are arranging regular informal meetings to give the opportunity to employees to feel that they belong to the company and the company belongs to them on regular basis.
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19. Management of the company informs to employees about the decisions & actions taken in concerning employees interests & problems. Totally agree Employee 26 (%) 52% Somewhat No agree 21 42% opinion 2 4% Somewhat Disagree 1 2% Totally Disagree 0 0%
No opinion, 2
Somewhat agree, 21
Totally agree, 26
Interpretation: 19 From the analysis we can say that generally all the employees in retail organizations are well informed about the decisions and actions concerning their interests and problems taken by the top management.
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20. In organization authorities and responsibilities are properly decentralized to increase effectiveness of performance. Totally agree Employee 15 (%) 30% Somewhat No agree 22 44% opinion 8 16% Somewhat Disagree 5 10% Totally Disagree 0 0%
Somewhat disagree, 5 Totally disagree, 0
No opinion, 8
Totally agree, 15
Somewhat agree, 22
Interpretation: 20 In most of retail organizations authorities and responsibilities are decentralized.
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RESULTS AND FINDINGS

What makes employees leave? On the basis of research on causes of high turnover rate in retail sector, we found some of the very common reasons which play major role, are
Lack of promotional and career growth opportunities such as

Perceived opportunity for advancement Presence and/or clarity of development plan.
Problem with superior or peers, Compensation: Better compensation packages being offered by other companies may attract employees .
Lack of recognition -If the work is not appreciated by the supervisor, the Employee feels de-motivated and loses interest in job Stress from overwork and work life imbalance: Job stress can lead to work life imbalance which ultimately leads to employee leaving the organization
New job offer: An attractive job offer which an employee thinks is good for him with respect to job responsibility, compensation, growth and learning etc. can lead an employee to leave the organization. For some employers, the denial of a full involvement in the overall functions leads him to face difficulty in identifying himself with the organization and its goals, resulting further in his inability to take pride even in being a part of the organization. Also, some of the employees feel that the good work turned out by them goes unappreciated. A circumstance, quoted as painful in
many of the exit interviews is the unfortunate necessity of working with a boss who has no value of equity, and who practices prejudice and nepotism in the treatment of employees.
The major causes of employee turnover fall into four categories. 1) Pull Type When an employee is attracted by an offer provided by any other organization and he/she quits the organization, it is referred to a pull type. In this type, the employee may find a better option in terms of career advancement, high salary, more benefit packages, opportunity to work overseas, etc.
2) Push Type The major reason for this type of resignation is when the employees negatively perceive the organization and/or may be dissatisfied with the existing situations. Factors such as uncongenial organizational culture, problems with superiors or colleagues, job boredom, perception of unfairness on issues like pay and promotion (distributive justice) causes a great deal of satisfaction, which triggers the intention of quitting.
3) Unavoidable Turnover Uncontrollable factors that are outside the purview of an organization are the major reasons for this type of turnover. The reason for resignation is the area unrelated to work in any direct sense. The most common is retirement and some of the other reasons are illness, relocationprimarily to join with spouse and family, to pursue higher education, responsibilities to care for their aged parents, proximity to their residence, child care, maternity reasons, etc.
4) Involuntary This type of turnover is the departure of employees, which are involuntary and are initiated by the organization itself. Examples are layoffs, employee's
termination due to problems, ending of contract, etc. The first two types of the turnover, the push and pull can be avoided if the organization reacts properly to the turnover symptoms of their employees.
Consequences of Employee Turnover Decreased productivity; work backlog, increased workloads. Increased investment in recruitment, training and maintenance of employees. Decreased commitment and morale among the employees, leading to poor team dynamics. Knowledge transfer to the competitors: When an employee quits, he carries the knowledge that he has acquired in the present organization.
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OBSERVATIONS
By visiting various retail stores/malls it is observed that majority of employees are female and majority of them are between the age group of 23-27. It seems that fresher employees are more mobile and dynamic, and are willing to move from one job to other job to fulfill their expectations. In More Mega Store, there is a system of taking written exams for the purpose of promotion and they have black board system to acknowledge employees regarding any changes in their working system and retail products. It implies that good HR practices are followed at organization. In pantaloons during the festive seasons to fulfill the gap of excess manpower, they recruit manpower from some NGOs. As analysis on attrition reveals that employees quit their job in majority of the cases for higher pay and promotion.
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LIMITATIONS OF THE STUDY
Although all attempts were made to make this an objective study, biases on the part of respondents might have resulted in some subjectivity.
Though, no effort was spared to make the study most accurate and useful, the sample Size selected for the same may not be the true representative of the Company, resulting in biased results.
This being the maiden experience of the researcher of conducting study such as this, the possibility of better results, using deeper statistical techniques in analyzing and interpreting data may not be ruled out.
One constraint has been regarding the cost, as study involves the collection of primary and secondary data. Therefore, the cost incurred was much more. Normally employees hesitate to disclose the information and they are always busy in their work. We may not have given clear answer. The study is to taken up for the academic purpose only. The study was on 50 selected employees from different retail stores, so their need not be the universal opinion. Managers were reluctant to disclose the database and lack of practical issues of attrition because companies are requuired to maintain confidentiality. Due to time constraints all the aspects of the attrition couldnt be studied and elaborated.
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CONCLUSION
Retention Determinants Following are the components that affect employee retention. Career opportunities 1. Training Continuity.& 2. Development Rewards 1. Competitive pay & benefits. 2. Performance reward Differentiation. 3. Recognition. 4. Special benefit & perks. Organizational Components Values and Culture. Strategies & Opportunities. Well managed & Results oriented.
Job continuity & security.
Job design & work 1. Job responsibility & autonomy. 2. Work flexibility. 3. Working conditions. 4. Work/Life balancing
Employee Relationship 1. Fair/nondiscriminatory Treatment. 2. Supervisory/management
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Benefits Of Attrition Attrition is not bad always if it happens in a controlled manner. Some attrition is always desirable and necessary for organizational growth and development. The only concern is how organizations differentiate good attrition from bad attrition. The term healthy attrition or good attrition signifies the importance of less productive employees voluntarily leaving the organization. This means if the ones who have left fall in the category of low performers, the attrition in considered being healthy.
Attrition rates are considered to be beneficial in some ways:
1. If all employees stay in the same organization for a very long time, most of them wil be at the top of their pay scale which will result in excessive manpower costs. 2. When certain employees leave, whose continuation of service would have negatively Impacted productivity and profitability of the company, the company is benefited. 3. New employees bring new ideas, approaches, abilities & attitudes which can keepthe organization from becoming stagnant. 4. There are also some people in the organization who have a negative an demoralizing influence on the work culture and team spirit. This, in the long-term, is detrimental to organizational health. 5. Desirable attrition also includes termination of employees with whom the organization does not want to continue a relationship. It benefits the organization in the following ways: It removes bottleneck in the progress of the company It creates space for the entry of new talents It assists in evolving high performance teams
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6. There are people who are not able to balance their performance as per expectations, lack potential for future or need disciplinary action. Furthermore, as the rewards are limited, business pressures do not allow the management to over-reward the performers, but when undesirable employees leave the company, the good employees can be given the share that they deserve. Some companies believe attrition in any form is bad for an organization for it means that a wrong choice was made at the beginning while recruiting. Even good attrition indicates loss as recruitment is a time consuming and costly affair. The only positive point is that the realization has initiated action that will lead to cutting loss.
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SUGGESTIONS
RETENTION STRATEGIES
1) Exit Interview: Need for a Novel Approach Exit interview is the process of identifying the reasons for which an employee quits an organization. It is an interview scheduled between the human resource professional and the employees who have planned to quit at the time of leaving the organization to collate the reasons for the departure. The human resource professionals may conduct the interview in a brief formal session or even in a structured interview session. 1. Exit interviews provide an opportunity to 'make peace' with disgruntled employees, who might otherwise leave with vengeful intentions. 2. Exit interviews are seen by existing employees as a sign of positive culture. They are regarded as caring and compassionate - a sign that the organization is big enough to expose itself to criticism. 3. Exit interviews accelerate participating managers' understanding and experience of managing people and organizations. Hearing and handling feedback is a powerful development process. 4. Exit interviews help to support an organization's proper HR practices. They are seen as positive and necessary for quality and effective peoplemanagement by most professional institutes and accrediting bodies concerned with quality management of people, organizations and service. 5. The results and analysis of exit interviews provide relevant and useful data directly into training needs analysis and training planning processes. 6. Exit interviews provide valuable information as to how to improve recruitment and induction of new employees. Exit interviews provide direct indications as to how to improve staff retention. 7. Sometimes an exit interview provides the chance to retain a valuable employee who would otherwise have left (organizations often accept resignations far too readily without discussion or testing the firmness of feeling - the exit interview provides a final safety net).
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2) Reward strategies The strategies of employee retention, briefly lists the main conveniences and benefits that may be extended to keep employees hooked. It reads:

Above award remuneration and bonuses Career development Flexible work hours Job sharing Telecommuting Gym membership Share options Opportunities for international travel For, additional facilities like transport, accommodation, medical benefits, `loyalty points' that bear weight age in the career advancement, would also from part of the main package of employment conditions.
All this does come with substantial costs. A loyal workforce, however, has a much greater worth than what these package facilities could cost. In addition to these monetary benefits, a shrewd employer always plays upon the psychology of the workforce by instilling in them a sense of participation in the functions of the employing organization. A sense of ownership is also infused through schemes like "Employee Stock Option Plan" /"Employee Share Ownership Plan" (ESOP) or through sharing a part of the revenue earned in the business. An effective leadership assumed by the top management would be a very important feature that keeps the workforce intact and loyal. In fact, the approach to the task of formulation of strategies for employee retention should be comprehensive and the honest intention of the employer to implement every stipulation in the package of appointment should be evident.
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3) I METHODOLOGY - The New Age Training Tool
I Methodology is movie/film based training method. I stands for Innovative, Interesting, I feeling- i.e self empowerment. According to this method, employees are shown clipping or videos to improve sales, marketing, team spirit, stress management level, interpersonal skill, communication skill, behavioral and motivational aspects such as movie like Rocketsingh, Chakde India, Corporate, Iqbal, Goal etc. And co-relate these aspects with real and practical day to day operations at workplace.
Pros of I Methodology It helps to create stress free and relaxed environment Retention of Learning- This movie based training helps employees to remember for a longer time. It Creates feeling of self empowerment and self motivation within the employees. Cons of I Methodology Trainees may not take it seriously. They may be diverted. It has limited applicability.
4) A BUDDY APPROACH Tell me and I will forget, Show me and I may remember, involve me I will understand. Buddy Approach make employees to feel that they are the dear ones of organization and it also creates feeling of involvement. The major aspect of Buddy Approach is peer learning.
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Benefits of Peer Learning Positive Interdependence. Team building Spirit Supportive relationship Develop leadership qualities Acquire conflict management skill Clarity of Concepts Enhance Productivity Peer learning Strategies There are mainly two methods in Buddy approach.
1) Buzz Groups Here employees are given case studies based on real market situations and they are encouraged to come up with different solutions. Affinity Group 2) Teach-write-Discuss Here employees are taught about various job related aspects and querries and then motivated to participate if they have any doubt and those doubts are discussed by particular mentor. The formation of an effective retention management program In general, then, the management of turnover will have the greatest organizational benefit when it is targeted at encouraging the retention of valued employees and facilitates the replacement of less effective employees with more effective staff. (9) Although each organization needs to assess the patterns of turnover for its own particular circumstances, there are some general policies to consider that have been shown to improve satisfaction and, in return, reduce the level of turnover that should be part of any formal employee-retention program:
1. Establish and maintain both the practice and the impression of fair treatment of all employees, so as to help foster a positive, consistent and reassuring work environment. 2. Ensure that senior management and immediate supervisors demonstrate their own sense of commitment to the organization. 3. Emphasize the need for a close match between the personality/work style of prospective employees with the organizations culture as well as providing prospective employees with realistic job previews there is evidence to suggest that newcomers to an organization who leave within the first few years may have a different commitment propensity at the time they join the organization than do those employees who stay. (10) A more thorough assessment of an employees past experience and reasons for leaving their last job may help identify employees who are more likely to feel a stronger sense of organizational commitment in the long run. 4. Properly incorporate new employees into the organization and manage their expectations and initial experiences with the organization in fact, a large financial services firm found that it could effectively reduce turnover among new hires by deliberately improving the process of socializing new employees into the corporate culture, particularly through the use of mentoring. 5. Communicate realistic and attainable expectations of performance to all employees, so as to avoid the potential for shock and the development of dissatisfaction. 6. Give positive and constructive feedback on a regular basis, including through both formal job performance reviews and informal channels of communication with employees, as well as ensuring that viable reward and recognition programs are used to motivate all employees. 7. Offer clear-cut opportunities for job enhancement, advancement and career development.
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BIBLIOGRAPHY
(A) BOOKS AND MAGAZINES Retailscape2020 by Prof. N. Chandrasekhar, Sanjay Duttgupta, Deepika bhagat Page 253 and 258 Employee Engagement in Retail by Jyotinder Kaur Chaddah Rabiya Jidda, R K Srivastava. Page 545 553 Attraction to attrition, Case 21 from cases in retail management by Prof. Srini.R.Srinivasan, Dr. R.K.Srivastava Engagement and Rewards. Page 127 134, 3rd edition Armstrongs Handbook of Reward management practice by Michael Armstrong Employee benefits. Page 382 - 387 Personnel Today HR review by ICFAI
(B) LINKS http://www.imap.com/imap/media/resources/IMAPretailrepot823CB9AA9C6EBB.pdf http://www.docstoc.com/docs/10265461/FICCI-Retail-Report-2007 http://www.NASSCOM.in http://www.ASSOCHAM.org/arb/aep/attrition-rates.doc
(C) WEBSITES www.citehr.com www.iupindia.in
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ANNEXURE
Appendix-B Gender: Male Female Questionnaire for employees Age; 15-25 26-35 36-45
1. I served for ________________ years/months in this store. 2. Previously engaged in any job? 3. If YES, then put the given option below. Retail Insurance Health care Manufacturing Others ( please specify ) YES NO
on the sector type of your previous organization in
4. Reasons for leaving below.
earlier job. Put tick mark in the given option
Monotonous work (repetitive nature of work) Physical strains because of long and odd working hours No growth opportunity lack of promotion For higher Salary For higher education No personal life Problems with peers and managers No permanent job Others (please specify)
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5. How does the present company hire an employee .Tick an option Internal recruitment Advertisement Employment exchanges Employment agencies Educational institutions Recommendations / referrals Any other (please specify)
6. Does company perform any of the tasks given below for employee retention in the organization? Pay for performance Recognition for outstanding performance Encourage upward direction of communication Open door policy On the job training & development programmes Promote employee growth Provide challenging opportunities any other (please specify)
RATE YOUR AGREEMENT OR DISAGREEMENT WITH THE NEXT STATEMENTS BY PUTTING TICK MARK CLOSEST TO YOUR OPINION. 7. I find my job satisfying. Totally agree somewhat agree Totally disagree No opinion Somewhat disagree
8.I find the department has a fearless culture (Being able to speak up and speak against the status quo without fear of retribution.) Totally agree Somewhat disagree Somewhat agree Totally disagree
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No opinion
9. I am provided opportunities for personal growth within the job environment (Job sharing, task forces, conferences and expanded responsibilities.) Totally agree Somewhat disagree Somewhat agree Totally disagree No opinion
10. I am consistently aware of the departments organizational direction (Knowing the mission, vision, strategies and goals.) Totally agree Somewhat disagree Somewhat agree Totally disagree No opinion
11. The department recognizes my work-life balance needs (Seeks to consider the demands of work with the need to deal with personal and family issues.) Totally agree Somewhat disagree Somewhat agree Totally disagree No opinion
12. Pay for the job for employees adequate. Totally agree Somewhat disagree Somewhat agree Totally disagree No opinion
13. I am satisfied with training provided by company through probation period? Totally agree Somewhat disagree Somewhat agree Totally disagree No opinion
14. Company providing flexi time working? Totally agree Somewhat disagree Somewhat agree Totally disagree No opinion
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15. Management considers the other aspect like secure career, benefits, perks & communication? Totally agree Somewhat disagree Somewhat agree Totally disagree No opinion
16. If agree, then please specify one or two concerns with respect to above question. ______________________________________________________________ 17. Company considers human resource as an asset rather than liability. Totally agree Somewhat disagree Somewhat agree Totally disagree No opinion
18. Company arranging regular informal meetings to give the opportunity to employees to feel that they belong to the company and the company belongs to them. Totally agree Somewhat disagree Somewhat agree Totally disagree No opinion
19. Management of the company informs to employees about the decisions & actions taken in concerning employees interests & problems. Totally agree Somewhat disagree Somewhat agree Totally disagree No opinion
20. In organization authorities and responsibilities are properly decentralized to increase effectiveness of performance. Totally agree Somewhat disagree Somewhat agree Totally disagree No opinion
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A COMPREHENSIVE PROJECT REPORT ON CAUSES AND CONSEQUENCES OF ATTRITION IN RETAIL INDUSTRY Submitted to C K SHAH VIJAPURWALA INSTITUTE OF MANAGEMENT IN PARTIAL

Causes and Consequences of Attrition in Retail Industry

Causes and Consequences of Attrition in Retail Industry

Causes and Consequences of Attrition in Retail Industry

Causes and Consequences of Attrition in Retail Industry

Causes and Consequences of Attrition in Retail Industry

Causes and Consequences of Attrition in Retail Industry

PART- I GENERAL INFORMATION

Causes and Consequences of Attrition in Retail Industry

1. ABOUT THE INDUSTRY

Source : IMAP global retail industry report 2010

Causes and Consequences of Attrition in Retail Industry

Wal-Mart Stores, Inc. (US)

Carrefour S.A. (France)

Causes and Consequences of Attrition in Retail Industry

McKesson Corp. (US)

Drugs/me dicalsurgical equipmen t distributio n.

$81 million USD

US: 91%; Rest of the world: 9%

Planning to expand through acquisitions

Cardinal Health. (US)

Tesco Plc. (UK)

$62.5 million USD

US: 99%; Rest of the world: 1%

$5.5 billion USD

UK: 74%; Europe: 15%; Rest of the world: 11%

Planning to invest in retail and in banking operations

Causes and Consequences of Attrition in Retail Industry

The Kroger Co. (US)

Woolworth s Ltd. (Australia)

$1.9 2.1 billion USD

$1.8 billion USD

Australia: 92%; New Zealand: 8%

Plans to open new stores

eBay Inc. (US)

$157 million USD

Plans to tap more international markets

Source: IMAP global retail industry report 2010

Causes and Consequences of Attrition in Retail Industry

INDIAN MARKET Retail landscape in India

Causes and Consequences of Attrition in Retail Industry

Source: NSSO 5th round; KPMG in India Analysis 2005

FDI in Indian retail industry

Causes and Consequences of Attrition in Retail Industry

GROWTH OF THE INDUSTRY

Causes and Consequences of Attrition in Retail Industry

Causes and Consequences of Attrition in Retail Industry

2005 Global Retail Development Index

Causes and Consequences of Attrition in Retail Industry

Causes and Consequences of Attrition in Retail Industry

Fastest Growing Retail Segments in India

Fastest Growing Retail Formats in India

Source: KPMG and FCCI report

Causes and Consequences of Attrition in Retail Industry

Causes and Consequences of Attrition in Retail Industry

2. MAJOR COMPANIES IN RETAIL INDUSTRY

Source: website (top 10 retail companies in India)

Causes and Consequences of Attrition in Retail Industry

Top 15 Major Companies in the world

Canada, Mexico, UK,US

Columbia, France, Spain,

Source: 2003 Global Retail Report, Deloitte Touche Tohmatsu

Causes and Consequences of Attrition in Retail Industry