Attrition, Quality Manpower Analysis & Employee Engagement

SIP Project Report submitted in partial fulfillment of the requirements for the PGDM Programme
By : Nancy Krishna
Roll Number - 201610321

Supervisors : Company Guide - Ms. Mallika Gandhi

Faculty Guide - Mr. Vikramaditya Ekkirala

Institute of Management Technology, Nagpur

( 2016-2018 )

1
 Acknowledgements

I would like to extend my sincere gratitude to Cafe Coffee Day for giving me the opportunity to pursue an
interesting and challenging project as a summer intern. I am deeply grateful to the people who helped me
complete this project by giving their valuable time and guidance and I would like to acknowledge all their
help.

First and foremost, I would like to express my gratitude to my faculty mentor Vikramaditya Ekkirala for
guiding me and providing invaluable advice with a constant supply of motivation and knowledge with
regards to the subject matter and my institution, Institute of Management Technology, Nagpur, for
facilitating the Summer Internship Program.

I am very grateful to my Departmental Head, Mr. Priyank Rai (Sr. Manager - HR) and my company
mentor, Ms Mallika Ghandi ( Asst. Manager HR) who not only made me aware of all the intricacies
related to my project but were also a source of encouragement. Their assessment of my performance and
enthusiastic feedbacks proved very fruitful and has also helped me to grow as a person.

I would also like to thank Ms Rahila Sultan, Ms Smriti Chourasia, Mr Neerav Shah, Ms Jaya, Mr
Sharfaraz, Mr S. Prasant who extended their help and expertise while I was working on the given project.
It was a great learning curve and will always be cherished.

Also, I thank all my Family and Friends for everything from the littlest of things to the deepest friendships
forged.

2
Successful Completion Certificate:

3
 Table of Contents

Chapter
Title Page number
Number

1 Introduction - Objectives & Methodology of the Study 5 - 10

2 Company Analysis 11-15

2.1 Sector Analysis 11-13

2.2 Company Analysis & SWOT Analysis 13-14

2.3 HR Department Structure 14

2.4 Relevance of the Project 15

3 Tabulations & Findings / Results 16-18

4 Interpretations and Conclusions / Summary 19

5 Recommendations 20 - 21

6 Bibliography 22

4
 Introduction

Objectives of the study

The objectives of the study are
1) To analyze the causes of attrition at Cafe Coffee Day by preparing the Attrition report for Frontline
employees having the following categories and make appropriate remedial measures to address the issues.
- Less than 30 days
- Absconding & Resigned
- Termination
2) To analyze the causes of attrition at Cafe Coffee Day by preparing the Attrition report for Support
employees based on the Exit Interview details and calling the Absconding employees. Make appropriate
remedial measures to address the issues.
3) To conduct Quality Manpower Analysis and assess the manpower deployment at high volume Cafes.
4) To assess the below employee engagement programmes and offer suggestions for improvement.
- Employee Satisfaction Survey
- Rewards & Recognition
- Birthday Babies & Work Anniversaries
- Open Forum
5) To study the following HR processes and make recommendations
- PF Batch
- Audit Closure
- Deployment Session

5
Methodology of the study
The following methodology has been adopted for the study

1) Attrition Report (Frontline)

The report is prepared on a monthly basis. The objective of the report is to calculate the attrition monthly.
Secondary data is used to determine the attrition rate and to prepare the report comprising of the below 3
parts

1) Opening Head Count - Opening head count stands for the manpower strength of the end of previous
month.This count forms the basis for calculations of the attrition.

2) Deletions - The deletions mainly indicate the number of employees that have left the organization. To
have an better analysis and to know where the maximum attrition is, the deletions is divided into further
categories

 Absconding & Resigned - These are mainly voluntary exists. The employees who have left the
organization without informing their supervisor/ are considered in the Absconding category. The
Resigned employees are the one who have served the notice period of of a month.
 Less than 30 days - These are the employees who have left the organisation in less than 30 days of
joining.
 Termination - Termination Cases mainly involves the employees who have been asked to leave the
organization mainly due to the audit issues or behavioral issues.

3) Total Deletion - This is the sum of all the above deletions that have been mentioned above.

This calculation is done as per the Regional Managers compiled to form the West region. The same is done
across the other 3 regions (East, North & South ).

2) Attrition Report ( Support)

The Support Attrition is mainly analyzed based on the telephonic conversation was conducted for the
employees who were absconding.

3) Quality Manpower Analysis

In simple words Manpower planning is putting the right person to the right kind of job where he/she will
excel to his/her best. Turnover and profits of the organization will increase due to quality work and can
increase the number of clients quickly than any other organization.

6
The purpose of Cafe Coffee Day to take up this Project at PAN India level is follows

 Understand the manpower deployed in high volume cafes

 To deploy the manpower (based on the skill set) in such a manner so as to increase the revenue by
increasing the number of clients at the high volume cafes.
 A correct job replacement for the vacancy

The study was done by conducting Panel Interviews for 138 employees (Team Member - 102 & Cafe
Manager - 36) across 29 high volume cafes. The panel comprised of 3 members (Operations, Learning &
Development and HR). To evaluate the quality of the manpower present in the high volume Cafes based on
5 parameters.

1) Communication - Evaluated by the HR

2) Confidence - Evaluated by the HR

3) Grooming & Presentatbility - Evaluated by the L&D

4) Cafe & SOP Knowledge - Evaluated by the L&D

5) Customer Orientation - Evaluated by the Operations

Based on the rating scale ( 1- 4) the panel will rate the employee after coming to consensus. Based on the
overall score the employee falls under High/ Medium / Low Category. This indicates the skill level of the
manpower deployed in the specific cafe.

4) Employee engagement programmes

Employee Satisfaction Survey

Employee Satisfaction Survey is a tool used to measure employee Engagement. The key to formulate this
survey was to understand address the concerns faced by an employee. Making this a platform each employee
to put their views.

The qualitative data gathered from Quality Manpower Analysis interviews was used fir designing the
employee satisfaction survey questionnaire.

7
 Rewards & Recognition

The performance of the employees is recorded for a quarter. Based on the performance the
Area Mangers nominates the best performers. The Best Performers are facilitated with Goodies and
Certificate in the R&R event which is conducted on a Quarterly Basis. The employees are rewarded on the
following categories

1) Employee of the Month

2) Cafe Manger of the Month
3) Chef of the Month
4) Audit Champ of the Month

Birthday Babies & Work Anniversaries

It is an Employee Engagement initiative to make the employees feel a part of the Cafe Coffee Day family.
This is an monthly event wherein the Birthday and the Work Anniversary falling in the previous month is
celebrated in the current month. An Invitation is circulated across all the departments of Mumbai and the
event is celebrated by Cake cutting and distribution of Greetings Cards.

Open Forums

This is a platform addressed by the HR wherein an employee can mention their grievances. This platform
enhances openness in the organization thereby giving the opportunity for the employee to speak and raise
their concerns. Minutes of the Meeting is made for the same and action is accordingly taken.

5) HR processes

Provident Fund Batch - The Provident fund Batch is conducted for employees who have left the
organization. The criteria for an employee to be applicable for a PF Batch are

1) Should have completed the F&F Process

2) Should be working in the organization for 6 months

On fulfillment of the above 2 criteria the employees are briefed on the below forms.

1) Fill form 19
2) Fill form 10 C
3) Fill Form 15 G

8
The above 3 forms along with ID Proof ( Aadhar Card/ PAN card) and a Canceled Cheque is
submitted to the HR Dept. The HR Submit the same to the Payroll who after verification sends
it to the PF Office at Bangalore.

Full & Final Settlement

The F&F is given to employees to do their clearances while leaving the organization. Be it the Frontline
employees or the Support employees below are the type of exists

1) Terminated
2) Resigned with Notice Period
3) Resigned without Notice Period

The Clearance procedure followed for the respective exists is

1) Terminated

An employee can be terminated for Audit issues, Behavioral issue or Ethical issue. The process is as follows

The Area Managers mails to the HR the issue of Termination. Based on the same the HR has an interaction
with the employee. Seeing to how genuine the case is, the employee is asked to fill in the F&F form and take
clearances from various departments.

2) Resigned with Notice Period

This is a Voluntary exist. The Process is as follows

The employee puts down his/her papers and serves a notice period for 1 month. The notice period varies
based on the hierarchy. The employee is asked to fill in the F&F form and take clearances from various
departments. This is followed by an Exit Interview with HR. In this type of exist the employee is paid for the
1 month notice period served.

3) Resigned without Notice Period/ Absconding

This is a Voluntary exist. The Process is as follows

In case of Employees leaving the organization without notice period are suppose to buy out there notice
period. Wherein, the employee has to pay one month’s salary ( Which includes PF ) and then only the
employee is given clearances.

9
Audit Closures:

The audit department in CCD conducts surprise Cafe Audits and based on the Auditor’s
review & action the following documents are issued to the employee found guilty.

1) C&C (Coach & Counsel)

2) DVW (Documented Verbal Warning)
3) FW (Final Warning)

The company has an Audit Portal called as Cafe Audits. The audit issues are updated on this portal and the
same can be accessed by the Operations Team and the HR. Once an issue is updated on this portal and the
document is issued it is closed on this portal. This information comes to great use at the time of Performance
Appraisal to evaluate the performance & at the time of Termination of an employee.

Deployment Batch

In reference to the Manpower requirement, on every Friday a batch of new joinees is deployed. They go
through a 7 Day Training process post which the batch is addressed by the HR. The new joinees are briefed
about the Code of Conduct & HR Policies of the Organization. To name a few are

1) Time Bound Growth Plan

2) Code of Conduct
3) Leave Policy
4) Provident Fund
5) Referral Policy
6) Scholarship Policy
7) Docket raising for addressing Grievances
8) Employee Benefit Card

10
 Company Analysis:

2.1 Sector Analysis: Retail

According to Philip Kotler, “Retailing includes all the activities involved in selling goods or services to the
final consumers for personal, non business use.

GDP Contribution

Retail business in India is a key pillar of the economy, accounting for about 10% of GDP nd around 8 per
cent of the employment.. The Indian retail market is estimated to be more than US$ 600 billion and one of
the top five retail markets in the world by economic value.

Market Size

India’s retail market is expected to nearly double to US$ 1 Trillion by 2020 from US$ 600 Billion in 2015,
driven by income growth, urbanisation and attitudinal shifts. While the overall retail market is expected to
grow at 12% per annum, modern trade would expand twice as fast at 20% per annum and traditional trade at
10%

Government Initiatives

The Government of India has taken various initiatives to improve the retail industry in India. The main one
being it has allowed 100% Foreign Direct Investment (FDI) in online retail of goods and services through
the automatic route, thereby providing clarity on the existing businesses of e-commerce companies operating
in India.

GST Impact

The imminent implementation of Goods & Services Tax (GST) is expected to result in greater transparency,
an improved flow of credit, and reduced trade barriers from a tax perspective. It is also widely agreed that
GST will usher in a series of changes to how businesses will operate and the Retail Industry will be no
exception.

“With an increased focus on compliance and with a strategic refresh on consumer promotion schemes, the
Retail Industry can benefit from the advent of GST.“Prashant Deshpande, Indirect Tax Leader, Deloitte
India

11
As per the current system of taxation, the restaurant sector is burdened with multiple
high-costing taxes, charges and cesses. On each and every food and beverages bill, the diner
pays additional VAT as well as service tax and service charge, not to forget the cesses.The effective tax rate
comes to somewhere around 18.5-20.5 per cent that varies for different states.

With the execution of GST, all taxes will form under a single bracket, adding uniformity to a market plagued
by unnecessary additional taxes. In context to restaurants, while they are paying tax, a total of VAT at (12.5
per cent)+ Service Tax (6 per cent) + Service Charge (10 per cent) is applied on it.Under the new system,
the restaurants are broadly divided into two areas: non-AC and AC restaurants. Dining out in air conditioned
restaurants will attract tax of 18 per cent as against 10.6 per cent charged (including VAT and service tax)
now. For low-cost restaurants, the tax rate would be 12 per cent as against 6 per cent now. Non-AC
restaurants will charge 12 per cent GST on food bill.

2.2 Company History

Coffee Day Group has a portfolio which includes Technology Parks & SEZs, Logistics, Investments,
Financial Services and Hospitality. Coffee Day group started its operations in 1993 through its subsidiary
Coffee Day Global Limited. It operates as a highly optimized and vertically integrated coffee business
which ranges from procuring, processing and roasting of coffee beans to retailing of coffee products across
various formats. It source s coffee from thousands of small coffee planters thereby providing employment. It
is these plantation workers that have truly made them who they are today and they are glad to be a part of
their lives.

This coffee is exported all over the world to clients across, Europe and Japan, making us one of the top
coffee exporters in the country.

The first Café Coffee Day outlet in Bengaluru in 1996 with a new vision—one where coffee was more than
just a beverage. It was a cup that brought coffee aficionados, budding coffee drinkers, and well, friends
together over a cup of freshly brewed coffee. Today, Coffee Day Global Limited has established the largest
footprint of café outlets in India-spread across more than 200 cities. This one being its main USP’s that
distinguishes it from the competitors. The company says, “We are where coffee is today, and where it’s
going next. We bring coffee from the bean to the cup. Over time they have developed the science of
nurturing the yield, how to roast it-to coax just the right flavor from it-and how to extract that flavor in the
brew. Yet, we do more than please the palate. Coffee is our purpose. It inspires us because we can see the
boundless possibilities in the lives of our guests.”

It's been an exciting journey since then, becoming the largest organized retail café chain in the country – in
terms of number of café outlets.

12
The different formats of Cafe Coffee Day are:

Cafe Coffee Day Lounge

In 2010, Coffee Day Lounge was launched, which expanded our customer base, offering a new kind of
space—directed at affluent customers who need a space not just to hang out, but also occasionally to
network. With a menu that’s expanded to offer more niche methods of coffee brewing, exotic teas, elements
of mixology (like our coffeetinis), and international cuisine to satisfy any kind of craving.

Cafe Coffee Day Xpress

The Xpress format of Cafe Coffee Day was launched in February 2003. It is an on-the-go food and
beverages kiosk situated at convenient locations, such as large corporate campuses, office buildings,
hospitals, metro and railways stations.

Cafe Coffee Day International

The first international café opened in Vienna in 2005 followed by cafes in Czech Republic and Malaysia.

Mission: To find and extract the boundless potential in all we do- just the way we have for every cup of
coffee.

Vision: Showing the world where coffee can take us

Parent Company: Coffee Day Global

Company SWOT Analysis:

Strengths:

1. Cafe Coffee Day has an excellent brand name and brand visibility

2. The target group mainly includes the youth along with the elder generation looking for a steaming hot cup
of coffee.

3. Ambiance, Service and Free Internet

4. Cafe Coffee Day has over 1000 outlets and 300,000 visitors per day

5. It produces/grows the coffee it serves hence reducing the cost

6. More than 5000+ employees in the Cafe Coffee Day organization

Weakness

13
1. High competition in this segment means limited market share for Cafe Coffee Day

2. High brand switching due to many options available to customers

Opportunities

1. Introduce cheaper versions of coffee

2. Cafe Coffee Day can tap the smaller towns/cities

3. Introduction of the Merchandise has benefited Cafe Coffee Day

4. Tie ups with other companies for promotion

Threats:

1. Competition from foreign players like Starbucks can adversely effect Cafe Coffee Day's market share

2. Dependent on Govt commodity rates

3. Large unorganized market can cause business losses

2.3 HR Department Structure

The HR Department at CCD comprised of mainly 3 functions 1) Recruitment 2) Employee Engagement 3)

Payroll. The department structure is well horizontally differentiated. My daily work included Inter-
department co-ordination ( i.e Recruitment & Payroll) and Intra-department co-ordination with Operation
and Learning & Development Team.

14
2.4 Relevance of the Project

This Project is relevant in the context of overall company objectives and strategies. The main
concern company was facing is how to reduce attrition, thereby retaining more employees. Working on the
Project should provide a clear understanding about the reasons of attrition. Based on the reasons
recommendations can be made for the same.

To increase the business with the current Manpower which is deployed the company initiated a project
called as “ Quality Manpower Analysis” for the employees in the high volume cafes. The redeployment
based on the skill will help in increasing the revenue. As this project will need an intervention of the 3
departments namely Human Resource, Operations and Learning & Development each of the departments
can understand the skill set of an employee. Each department then can accordingly work to increase the
efficiency of the employee.

Due to high attrition rates, designing an Employee Satisfaction survey would act as an effective tool to
calculate the level of engagement of the employees.

Working on the various Employee Engagement Activities & HR processes will aid in the understanding of
the department.

Thus the above project is aligned with the Organizational goals and Business Strategy and will provide an
holistic approach cutting across various functional areas.

15
 Tabulation & Findings/ Results:

Frontline Attrition Analysis

In reference to the objective mentioned earlier, the below attrition analysis is derived. This analysis is
derived from the extensive attrition report described in the methodology. For the month of

Frontline Attrition Analysis

Months Number of Opening Additions Deletion - Deletion - Terminati Total Attrition

Cafes Head Abscondin LT30D on Deletion %
Count g&
Resigned
Mar- 2017 177 967 120 47 19 26 92 8%

Apr- 2017 176 976 112 38 20 20 78 6.9%

Support Attrition Analysis

The Support Attrition Analysis is done for Area Manager, Asst. Manager & Cafe Manager. In reference to
the objective mentioned earlier, the below attrition analysis is derived.

Support Attrition Analysis

2) Quality Manpower Analysis:

In reference to the objective mentioned earlier, the below Quality Manpower analysis is derived. This
analysis is derived from the panel interviews conducted from 138 employees across 29 Cafes.

Team Members - 102 Cafe Managers – 36

16
Quality Manpower analysis for Team Member, Brew Master, Operation Trainee &
Café Manager

17
3) Employee Satisfaction Survey (ESS)

Based on the above mentioned objective and the insights gained from Quality Manpower Analysis the below
Employee Satisfaction Survey was framed.

Employee Satisfaction Survey Format

4) Rewards & Recognition

Based on the above mentioned objective and the methodology below certificates and goodies are given to
the employee during the R&R Event

18
 Interpretations and Conclusions

Frontline Attrition

March, 2017 - The findings shows that maximum deletions is in the Absconding & Resigned Category. The
overall attrition rate being 8%

April, 2017 - The findings shows that maximum deletions is in the Absconding & Resigned Category. The
overall attrition rate being 6.9%

The reduction of attrition level is due to calling the employees who were absconding and trying to resolve
the issues they faced. Thus retaining the employees have reduced the attrition in the month of April, 2017.

Support Attrition

The attrition rate was tried to reduce by calling the absconding employees and getting to know the reason for
not reporting at work. Unfortunately, none could be retained as they either had got better opportunities or
due to medical reasons couldn’t work in the company specific environment.

Quality Manpower Analysis

From the coverage of 138 employees over 29 the employees at various skills levels are

Highly Skilled: 50 Medium Skilled : 63 Low Skilled : 25

The conclusion that can be drawn is that on training the medium skilled labour they can be aided in
becoming highly skilled. Intensive training should be provided for the Low skilled labour and there
performance should be continuously monitored.

Employee Engagement Activities

These activities such as Reward & Recognition, Birthday and Work Anniversary celebrations help in
increasing the engagement level of the employee. Open Forums can also be used as a platform to align the
employee to the organizational goals.

HR Processes

These processes form intricate part of the daily functioning of the Employee Engagement Department. They
are already streamlined and is effectively executed as per the current process.

19
 Recommendations

Based on the finding from the above chapter below are the recommendations of the study.

Attrition

 Recruitment Process - Interviews to be tweaked so as to get the appropriate talent on Board. Basic
communication skills to be ensured. Medical history to be briefly checked.
 Job Description form to be attached along with the Interview Application Form. This can ensure clarity
of the job role to be provided

Quality Manpower Analysis

 Train employee on English Speaking & Customer Orientation

 Merchandise Menu - As the Cafe Managers & Team Members are unaware about the specifications
about the Merchandise being sold a Menu can be made for the same. At the time of taking order from
the customer this menu can be provided to them. This would help in upselling.

Employee Engagement Activities

 Loyalty Progammes - Check how many customers are loyal and how many new footfalls are happening.
Thereby understanding how much % are we increasing new customers.
 Employee Health Day - Routine checkups for employees & Blood Donation
 Family Day - A Family day can be conducted as an Annual Event . This would increase employee
engagement.
 Star Performer of the Week - A Golden Bean Badge can be given to the star performer of the week. This
can help in motivating the employees.
 Employee Growth Card - An employee growth card is a laminated card which can be given to the
employees. This would help both the employee and the HR to track an individual’s performance.
Having a card to themselves who also bring a sense of responsibility that “Your growth lies in your
hands”

20
HR Processes

 Trainee as a designation - This would help in reducing the Horizontal Differentiation in the Operations
Department. Direct intake of talent should be from TML1 (Team Member Level 1) designation.
 Tasks to be streamlined - If the tasks are streamlined in Employee Engagement Team, the work done
can be quantified. It will also provide timings for addressing employee grievances.
 Deployment Batch - A 2-3 Pager handout called as “Deployment Handbook” to be provided to all new
joinees with the HR Polices & Guidelines.

21
 Bibliography

https://www.linkedin.com/pulse/six-benefits-man-power-planning-organization-ahalya-thulaseedharan

http://www.academia.edu/12171225/EFFECT_OF_EMPLOYEE_ENGAGEMENT_ON_ATTRITION_WI
TH_RESPECT_TO_SERVICE_INDUSTRY

http://coffeeday.com/aboutus.html#overview-scroll

http://www.mbaskool.com/brandguide/food-and-beverages/662-cafe-coffee-day.html

http://engageforsuccess.org/what-is-employee-engagement

https://www.ibef.org/industry/retail-india.aspx

https://www2.deloitte.com/in/en/pages/consumer-industrial-products/articles/retail-gst-industry-impact.html
#

http://www.businesstoday.in/current/economy-politics/how-gst-will-impact-restaurant-and-food-billsy/story/
255522.html

22