ABV-Indian Institute of Information Technology and Management

SUMMER INTERNSHIP REPORT ON

ATTRITION MINIMISATION IN FAIRWEALTH SECURITIES

Submitted By: MeghaSaxena(2010MBA-14 ) MBA IInd Year ABV-IIITM Gwalior

CERTIFICATE

This is to certify that Mr.ABHAY SINGH SOLANKI, a studentofInstitute of Management Studies, Ghaziabad pursuingPGDM-GENERAL, has successfully completed Summer Internship Training at India Trade Promotion Organization, New Delhi, as part of his curriculum. The project report entitled, International Fairs & Financial Analysis of ITPO, submitted by the student to the undersigned is an authentic record of his original work, which he has carried out under my supervision and guidance.

Date:

Mr. Sujan Roy

PREFACE AND ACKNOWLEDGEMENT

This is to acknowledge with sincere thanks for the assistance, guidance and support that I have received during the Summer Internship Training. I place on record my deep sense of gratitude to FAIRWEALTH SECURITIES,for giving me an opportunity to pursue my Summer Training. My very special thanks to Mr. Sujan Roy for his constant advice and support..

I thanks to all those people who have directly or indirectly helped me during the course of this project.

MeghaSaxena mba2010014 ABV-IIITM Gwalior

INDEX S.No TOPIC Page No.

1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

CHAPTER1 :INTRODUCTION AND BACKGROUND

Organizational History:FairWealth Securities Limited is a leading Indian Financial Services firm established in the year 2005 with an objective of becoming a financial powerhouse providing all financial solutions under one roof with dedicated customer service and commitment to provide value for Money to the clients. FairWealth Group has diversified interests in multiple asset classes including financial services, currency and commodities. We are also third party distributor of Mutual Funds, Insurance etc. The company has its strong network spread over 450 cities and towns comprising 600 business associates, 52 branch offices across pan India. The USP of our company is to give Customer Delight to our customers. In the financial services domain, FairWealth Securities Ltd. and FairWealth Commodity Pvt. Ltd. provides customer centric services in the areas of Equity and Commodities Broking, Currency Broking, Depository Participant Services, Risk and Investment Planning through Insurance, Mutual Funds, Portfolio Management Services and Deposits.. We also offer additional features like internet trading, browser based trading, online trading facility, back office support, astrological view on market etc.

Managements Philosophy:Vision: In our Endeavour to serve more customers across geographies Fairwealth Securities plans to be a leading stock and commodity broker and a distribution proving a bouquet of services. We want to be known to our customers for our excellent customer service, our research advice and putting our clients priority at the top.

Mission: We aim to provide wealth maximization solution for our clients and guide our clients in talking sober investment decisions.
y y

Broking with Human touch State of the art IT infrastructure, choice of connectivity available

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Quality Research Empowering the client Decentralized operation

ORGANISATIONAL STRUCTURE:MANAGING DIRECTOR (DHIRENDRA GABA)

CHIEF OPERATING OFFICER

DIRECTOR COMMODITY

CEO /DIRECTOR

FINANCE

DIRECTOR COMPLIANCE

DIRECTOR MARKETING

IT & IT PROCUR. BRANDING

NATIONAL HEAD ZONAL HEAD

STRATEGY MANAGEMENT CURRENCY

CREDIT CONTROL

SECRATERIAL

FOREIGN DIRECT INVESTMENT

FINANCE & ACC

COMPLIANCE

FOREIGN INSTITUT INV

BRANCH COORD. RMS

ZONAL HEAD

GUJRAT ORISSA & NATIONAL HEAD

MAHARASHT RA

ZONAL HEAD DP & KYC ZONAL HEAD BACK OFFICE ZONAL HEAD DEBIT RECOVERY MIS DEV. & CUSTOMER CARE RESEARCH EQUITY HR TRAINING

ZONAL HEAD

ZONAL HEAD

ONLINE SALES

ZONAL HEAD

ZONAL HEAD FUND.& PMS

TECHNICAL RES.

Companys ADMN.&PROC
UR.(NON IT) CORPORATE AFFAIRS

Fairwealth Securities Ltd. Equity Trading 306

Fairwealth Commodity Broking Pvt. Ltd. Commodity Trading

Currency

Fairwealth Insurance Broking Pvt. Ltd. Insurance & MF

SKJP Financial Services Pvt. Ltd. NBFC

STOCK BROKING INDUSTRY OVERVIEW

Stock exchanges to some extent play an important role as indicators, reflecting the performance of the countrys economic state of health. Stock market is a place where securities are bought and sold. It is exposed to a high degree of volatility, prices fluctuate within minutes and are determined by the demand and supply of stocks at a given time. Stock brokers are the ones who buys and sells securities on behalf of individuals and institutions for some commission. The Securities and Exchange Board of India (SEBI) is the authorized body, which regulates the operations of stock exchanges, banks and other financial institutions. The past performances in the capital markets especially the securities scam by Hasrshad Mehta has led to tightening of the operations by SEBI. In addition the international trading and investment exposure has made it imperative to better operational efficiency. With the view to improve, discipline and bring greater transparency in this sector, constant efforts are being made and to a certain extent improvements have been made.

HISTORY OF THE STOCK BROKING INDUSTRY Indian Stock Markets are one of the oldest in Asia. Its history dates back to nearly 200 years ago. The earliest records of security dealings in India are meager and obscure. By 1830's business on corporate stocks and shares in Bank and Cotton presses took place in Bombay. Though the trading list was broader in 1839, there were only half a dozen brokers recognized by banks and merchants during 1840 and 1850. The 1850's witnessed a rapid development of commercial enterprise and brokerage business attracted many men into the field and by 1860 the number of brokers increased into 60. In 1887, they formally established in Bombay, the "Native Share and Stock Brokers' Association" (which is alternatively known as "The Stock Exchange"). In 1895, the Stock Exchange acquired a premise in the same street and it was inaugurated in 1899. Thus, the Stock Exchange at Bombay was consolidated. Thus in the same way, gradually with the passage of time number of exchanges were increased and at currently it reached to the figure of 24 stock exchanges. DEVELOPMENT An important early event in the development of the stock market in India was the formation of the Native Share and Stock Brokers Association at Bombay in 1875, the precursor of the present-day Bombay Stock Exchange. This was followed by the formation of associations /exchanges in Ahmedabad (1894), Calcutta (1908), and Madras (1937). IN addition, a large number of ephemeral exchanges emerged mainly in buoyant periods to recede into oblivion during depressing times subsequently.

BSE(BOMBAY STOCK EXCHANGE) The Stock Exchange, Mumbai, popularly known as "BSE" was established in 1875 as "The Native Share and Stock Brokers Association". It is the oldest one in Asia, even older than the Tokyo Stock Exchange, which was established in 1878. It is a voluntary non-profit making

Association of Persons (AOP) and is currently engaged in the process of converting itself into demutualised and corporate entity. It has evolved over the years into its present status as the premier Stock Exchange in the country. It is the first Stock Exchange in the Country to have obtained permanent recognition in 1956 from the Govt. of India under the Securities Contracts (Regulation) Act, 1956.

NSE(NATIONAL STOCK EXCHANGE) NSE was incorporated in 1992 and was given recognition as a stock exchange in April 1993. It started operations in June 1994, with trading on the Wholesale Debt Market Segment. Subsequently it launched the Capital Market Segment in November 1994 as a trading platform for equities and the Futures and Options Segment in June 2000 for various derivative instruments.

NCDEX (NATIONAL COMMODITIES AND DERIVATIVES EXCHANGE)

NCDEX started working on 15th December, 2003. This exchange provides facilities to their trading and clearing member at different 130 centers for contract. In commodity market the main participants are speculators, hedgers and arbitrageurs. Promoters of NCDEX are  National Stock Exchange(NSE)  ICICI bank  Life Insurance Corporation(LIC)  National Bank for Agricultural and Rural Development (NABARD)  IFFICO  Punjab National Bank (PNB)  CRISIL

MCX(MULTI COMMODITY EXCHANGE)

MULTI COMMODITY EXCHANGE of India limited is a new order exchange with a mandate for setting up a nationwide, online multi-commodity marketplace, offering unlimited growth opportunities to commodities market participants. As a true neutral market, MCX has taken several initiatives for users In a new generation commodities futures market in the process, become the countrys premier exchange

CHAPTER2: PROJECT OVERVIEW

Purpose of choosing attrition minimization

Staff attrition (or turnover) and absenteeism represent significant costs to most organizations. It is odd, therefore, that many organizations neither measure such costs nor have targets or plans to reduce them. Many organizations appear to accept them as part of the cost of doing business - a sign of increasing job mobility and decreasing staff loyalty perhaps, a matter to be regretted but just 'one of those things.' They add a sum in their budgets for 'temp staff' and 'recruitment' and forget about it. However, it seems to be one of the areas in which HR can make a difference - and one that can be measured in quantifiable, financial terms against targets. It is interesting to note that the attrition rates in India - and the costs associated - are so high that they can override the benefits of lower wage costs. Far from accepting attrition rates as part of the cost of doing business, it is surely something that all organizations should address, and equally surely it is an area in which HR can take a lead - measure attrition, seek its causes, set out solutions and target performance.

ATTRITION
Attrition is the reduction in the number of employees through resignation,retirement and death. Attrition rate is the percentage of people leaving the organization i.e relative to total number of people who have worked for the organization under consideration Employee attrition costs 12 to 18 months salary for each leaving manager or professional, and 4 to 6 months' pay for each leaving clerical or hourly employee. According to a study by IpsosReid, 30% of employees plan to change jobs in the next two years. Do the math and discover how much your company may pay for attrition. Although employee turnover can help organizations evolve and change, an American Management Association survey showed that four out of five CEOs view employee retention as a serious issue for organizational success. If managers know the real causes of attrition, managers can control attrition and retain employees. Each retained employee can save money and lead to better opportunities.

Attrition in broking industry

Middle- and junior-level staff at stock broking firms are switching jobs at the highest rate in more than four years as stiff targets and poor payment structure make financial services less desirable. The rate of attrition among entry-level stock broking firm employees has touched 40%. This is more than double the rate during the peak of the employment boom in the industry in 2007. "The broking industry has been witnessing high attrition rates over the past one year," said Ajay Shah, group manager-BFSI Sourcing, Team-Lease Services. "Low tolerance level of toplevel executives , low (or irregular) salaries and stiff targets are prompting entry-level employees to switch jobs frequently ," said Shah. "Even in 2007, when there were more job opportunities , attrition rate among juniorlevel broking employees was in the range of 15-18 %. It is for the first time, the number has crossed 35%." Remuneration in the broking industry has remained fairly unchanged over the past three years. Junior-level graduate executives draw Rs 12,000-20 ,000 while undergraduates get Rs 6,500-10 ,500 a month. Attrition rate is the percentage of people that leave an organisation in comparison to the total number of people working in the organisation. According to head hunters, the economic slowdown in 2008 changed the mindset of people going for low- and mid-level broking jobs. If one goes by industry estimates, about 8,000 junior-level executives with 1-3 years experience employed with top listed and unlisted broking firms lost jobs that year.

CAUSES
Most employees leave their work for reasons other than money - and your organization can correct these reasons. Most leaving employees seek opportunities that allow them to use and develop their skills. Leaving employees want more meaning in their work ... they often indicate that they want to use their qualities and skills in challenging teamwork led by capable leaders.
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Hourly employees notice whether they are treated with respect, have capable management and interesting work Clerical employees voice concerns such as "type of work," "use of skills and abilities" and "opportunities to learn" Professional employees cite concerns about "supervisory coaching and counseling," "company direction" and interesting work Managerial staff cite "career growth" and "leadership" as the major factors that influence their decisions to stay or leave, together with "opportunities for management" "ability of top management" "use of skills and abilities" and "work/family balance"

Attrition is an expected yet dreaded cost of business. However, if you understand why employees leave, you can accept unavoidable turnover and prevent avoidable turnover. Essentially, there are

two causes of attrition, which can be grouped into two broad categoriesfunctional attrition and preventable attrition.

1. Functional attrition
Functional attrition is unavoidable, inevitable turnover. Examples include employees who retire, employees who leave for a spouse's job transfer, and employees who leave because of health problems or to care for sick relatives. In other words, functional attrition is caused by circumstances that can't be controlled. You must expect and accept this type of turnover.

2. Preventable attrition
Preventable turnover, on the other hand, can usually be controlled and avoided but often isn't. Poor hiring practices, misguided policies, and inflexible corporate attitudes are some of the preventable reasons people leave companies. Some examples of preventable attrition are listed below.

a) Lack of job satisfaction - Anna is resigning. She wants to advance her career, but her position is a dead end. She's a great employee and likes her company, but her goals don't match with her position's potential. You could have avoided her resignation by moving her into a position with growth potential.

b) Stressful work environment - Stan works long hours with few rewards. He's expected to work 60 hours a week to meet his deadlines. Stan feels undervalued and overworked. He's looking for another job. You could prevent this by setting deadlines that are achievable in a 40hour workweek.

c) Outside influences - Dawn was approached by a recruiter who said he could find her a job paying twice what your company is paying her and with far better benefits. She'll take him up on his offer. You could prevent this by paying employees what they're worth and having a comprehensive benefit plan.

d) Conflict with a manager - Bruce and his manager just don't get along. Bruce is a valued employee and so is his manager. Bruce wants to resign. You could prevent this by assigning Bruce to another department or working with the manager and Bruce on conflict resolution.

Preventable turnover occurs when your company can change a policy or find a solution to keep employees from leaving but doesn't. People leave companies for a variety of reasons. Below are some examples of employees who have chosen to leave their companies.

METHODS OF MINIMISING ATTRITION Its impossible to stop employees leaving the organization. But by the below mentioned methods one can atleast minimize it to some extent. 1. Offer fair and competitive salaries. Fair compensation alone does not guarantee employee loyalty, but offering below-market wages makes it much more likely that employees will look for work elsewhere. In fact, research shows that if incomes lag behind comparable jobs at a company across town by more than 10 percent, workers are likely to bolt. To retain workers, conduct regular reviews of the salaries you offer for all job titles entry-level, experienced staff and supervisory-level. Compare your department's salaries with statistically reliable averages. If there are significant discrepancies, you probably should consider making adjustments to ensure that you are in line with the marketplace. 2. Remember that benefits are important too. Although benefits are not a key reason why employees stick with a company, the benefits you offer can't be markedly worse than those offered by your competitors 3. Train your front-line supervisors, managers and administrators. It can't be said often enough: People stay or leave because of their bosses, not their companies. A good employee/manager relationship is critical to employee satisfaction and retention. Make sure your managers aren't driving technologists away. Give them the training they need to develop good supervisory and people-management skills. 4. Clearly define roles and responsibilities. Develop a formal job description for each title or position in your department. Make sure your employees know what is expected of them every day, what types of decisions they are allowed to make on their own, and to whom they are supposed to report. 5. Provide adequate advancement opportunities. To foster employee loyalty, implement a career ladder and make sure employees know what they must do to earn a promotion. Conduct regular performance reviews to identify employees' strengths and weaknesses, and help them improve in areas that will lead to job advancement. A clear professional development plan gives employees an incentive to stick around. 6. Offer retention bonuses instead of sign-on bonuses. Worker longevity typically is rewarded with an annual raise and additional vacation time after three, five or 10 years. But why not offer other seniority-based rewards such as a paid membership in the employee's professional association after one year, a paid membership to a local gym after two years, and full

reimbursement for the cost of the employee's uniforms after three years? Retention packages also could be designed to raise the salaries of technologists who become credentialed in additional specialty areas, obtain additional education or take on more responsibility. Sign-on bonuses encourage technologists to skip from job to job, while retention packages offer incentives for staying. 7. Make someone accountable for retention. Measure your turnover rate and hold someone (maybe you!) responsible for reducing it. In too many workplaces, no one is held accountable when employees leave, so nothing is done to encourage retention. 8. Conduct employee satisfaction surveys. You won't know what's wrong ... or what's right unless you ask. To check the pulse of your workplace, conduct anonymous employee satisfaction surveys on a regular basis. One idea: Ask employees what they want more of and what they want less of. 9. Foster an environment of teamwork. It takes effort to build an effective team, but the result is greater productivity, better use of resources, improved customer service and increased morale. Here are a few ideas to foster a team environment in your department: Make sure everyone understands the department's purpose, mission or goal. Encourage discussion, participation and the sharing of ideas. Rotate leadership responsibilities depending on your employees' abilities and the needs of the team. Involve employees in decisions; ask them to help make decisions through consensus and collaboration. Encourage team members to show appreciation to their colleagues for superior performance or achievement. 10. Reduce the paperwork burden. If your technologists spend nearly as much time filling out paperwork, it's time for a change. Paperwork pressures can add to the stress and burnout that employees feel. Eliminate unnecessary paperwork; convert more paperwork to an electronic format; and hire non-tech administrative staff to take over as much of the paperwork burden as is allowed under legal or regulatory restrictions. 11. Make room for fun. Celebrate successes and recognize when milestones are reached. Potluck lunches, birthday parties, employee picnics and creative contests will help remind people why your company is a great place to work. 12. Write a mission statement for your department. Everyone wants to feel that they are working toward a meaningful, worthwhile goal. Work with your staff to develop a departmental mission statement, and then publicly post it for everyone to see. Make sure employees understand how

their

contribution

is

important.

13. Provide a variety of assignments. Identify your employees' talents and then encourage them to stretch their abilities into new areas. Do you have a great "teacher" on staff? Encourage him/ her to lead an in-service or present a poster session on an interesting case. Have someone who likes planning and coordinating events? Ask him to organize a departmental open house. Know a good critical-thinker? Ask him/ her to work with a vendor to customize applications training on a new piece of equipment. A variety of challenging assignments helps keep the workplace stimulating. 14. Communicate openly. Employees are more loyal to a company when they believe managers keep them informed about key issues. Is a corporate merger in the works? Is a major expansion on the horizon? Your employees would rather hear it from you than from the evening newscast. It is nearly impossible for a manager to "over-communicate." 15. Encourage learning. Create opportunities for your technologists to grow and learn. Reimburse them for CE courses, seminars and professional meetings; discuss recent journal articles with them; ask them to research a new scheduling method for the department. Encourage every employee to learn at least one new thing every week, and you'll create a work force that is excited, motivated and committed. 16. Be flexible. Today's employees have many commitments outside their job, often including responsibility for children, aging parents, chronic health conditions and other issues. They will be loyal to workplaces that make their lives more convenient by offering on-site childcare centers, on-site hair styling and dry cleaning, flexible work hours, part-time positions, jobsharing or similar practices. For example, employees of school-age children might appreciate the option to work nine months a year and have the summers off to be with their children. 17. Develop an effective orientation program. Implement a formal orientation program that's at least three weeks long and includes a thorough overview of every area of your department and an introduction to other departments. Assign a senior staff member to act as a mentor to the new employee throughout the orientation period. Develop a checklist of topics that need to be covered and check in with the new employee at the end of the orientation period to ensure that all topics were adequately addressed. 18. Give people the best equipment and supplies possible. No one wants to work with equipment that's old or constantly breaking down. Ensure that your equipment is properly maintained, and regularly upgrade machinery, computers and software. In addition, provide employees with the highest quality supplies you can afford. Cheap, leaky pens may seem like a small thing, but they can add to employees' overall stress level.

19. Show your employees that you value them. Recognize outstanding achievements promptly and publicly, but also take time to comment on the many small contributions your staff makes every day to the organization's mission.

CHAPTER2: RESEARCH METHODOLOGY