Presented by

Nitika singh(22)
Pallavi gupta(23)
Dhaval parmar(25)
Pradeep kumar(26)
Introduction
The study of organizational behavior relates to
the expected behavior of an individual in the
organization. No two individuals are likely to
behave in the same manner in a particular work
situation.
A very important aspect of an individual’s
behavior in an organization is “exit behavior” or
attrition.
Introduction
Exit Behavior or Attrition rate in turn affects
the organizational effectiveness.
The success of any business has significantly
become people dependent and employee
attrition is the biggest challenge that is
impacting organizations across Indian
industries.
Attrition stats……..
Employee attrition is about 20-30 per cent
across industries (Source – CII)
Average Attrition Rate in BPO sector is
hovering around 35% in FY 2007
Average Attrition Rate in BFSI sector rose
from 32% in FY 2006 to 44% in FY 2007

The manufacturing sector is also facing an

Attrition Rate of 20%. (Source: ASSOCHAM
 WHAT IS ATTRITION?
Defining attrition:
"A reduction in the number of employees
through retirement, resignation or death“
Definition of Attrition Rate

“The rate of shrinkage in size or number

of employees is known as Attrition rate.
It is usually expressed in percentage.”
Types of Attrition
Types of Attrition
Attrition is not bad
always
Some times attrition is desirable and
necessary for organizational growth and
development.
 The only concern is how organizations
differentiate “good attrition” from “bad
attrition”.
BAD ATTRITION
In the performance analysis of the ones who
have left, if the proportion of high performers
leaving is higher, the attrition is bad attrition.
Attrition in any form 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.
OTHER TYPES OF
ATTRITION
Market Driven – Based on the demand for a
particular skill.
The typical initial reaction by employers to
market driven attrition is to increase wages,
offer better benefits, escape the market by
relocation or site migration or relax hiring
standards.
OTHER TYPES OF
ATTRITION
Process Driven - variables associated with
job design and/or the organization.

Workload or Stress Driven – on the actual

capacity to perform the work required. This is
when there are not enough of the right
people.
Causes of Attrition
Higher Pay
Job or work place is not Stress from
what they expected
overwork and work
Job & person mismatch
life imbalance
Less growth
opportunities Lack of Compensation
appreciation New job offer
Lack of trust and
Plans for further
support in coworkers,
seniors and studies
management Women Workers
Reasons For Attrition
Personal Reasons

Financial Reasons

Other Reasons
 Reasons for Attrition

Others, 10%

Satisfaction, Higher
35% Packages, 55%
ATTRITION RATES
Attritionrates

Global
Average, 25%
USA, 32%

India, 10%

Europe, 14% Australia, 19%

TOP FIVE I.T COMPANIES
TOP FIRING COPANIES TOP SECURE COMPANIES

I.IBM I.Microsoft
II.Accenture II.EDS
III.Wipro III.HP
IV.Intel IV.TCS
V.CTS V.Google and Yahoo
Impact of Attrition
Attrition normally brings decreased productivity.
People leave causing others to work harder.
This contributes to more attrition, which contributes to
increasing costs, lower revenue.
 This often forces additional cost reductions and
austerity measures on an organization.
This in turn makes working more difficult, causing the
best performers with the most external opportunities,
to leave.
Direct impact
A high attrition indicates the failure on the
company’s ability to set effective HR priorities.
 Clients and business get affected and the
company’s internal strengths and weaknesses
get highlighted.
 New hires need to be constantly added,
further costs in training them, getting them
aligned to the company culture.
Indirect impact
Difficulty in the company in retaining
remaining employees .
Problem for the company in attracting
potential employees.
Typically, high attrition also leads to a chronic
or systemic cycle—attrition brings decreased
productivity, people leave causing others to
work harder and this contributes to more
attrition.
www.naukarihub.com
Reducing attrition
Training and Development
Employees should be given adequate training
regarding new technology domain behavior skills
and succession plans.
 This will improve their efficiency in their respective
fields as well as provide an opportunity for the
advancement within an organization.
Analyze Employee Background
 Developing a synergy between the work and the
employee’s innate talents will help to bring down
the attrition rates.
Reducing
Feedback
attrition
Learning what employees want in their workplace
allows employers to cater to these needs, creating a
more productive work environment.
 In addition exit interviews should allow managers to
understand why employees are leaving that these
shortcomings can be remedied.
Motivation
Positive reinforcement including compliments and
rewards for exemplary work, encourage employees to
reach their potential.
Pay and Benefits
Providing employees with adequate salary extra perks,
incentives and insurance will encourage them to
continue with their current job.
Singapore Airlines : A
Case
Selection And Training
Overview

Selection Phase
2 – 4 Months

Training Phase
2.3 – 4 Years
Attributes
Attrition
– Reserved behaviour
– Lack of group participation
– Stuck in the First Officer Mode
– Wrong perception of command
role
– Looking for fixed templates
– Low profile
– Underdeveloped handling skills
– Technical grounding
– Composure
Desired Qualities

 Good communication skills

 Appreciates the big picture
 Able to think on his feet
 Confidence and assertiveness
 Takes responsibility
What was Done?
Outward Bound School Training
21 day course conducted in Lumut, Malaysia
Focus on developing leadership qualities, teamwork,
character building, and bonding among cadets
Singapore Flying College
18 months basic and advanced flying training
conducted in Singapore and Australia

Cadet Buddy Program for First Officers to mentor

and guide new cadets, and to supplement soft skill
development of cadets by the college.
 Enhances cohesiveness and bonding to the pilot community
in the airline
 Instills strong SIA values
Effect On Personal
Qualities

 The training at OBS and SFC fosters bonding and camaraderie

among us. We are also equipped with the fundamental skills
of an airline pilot in this phase.
 The Cadet Buddy Program provided additional motivation for
us to succeed in the course, to be able to perform our duties
as pilots, just like our mentors.”

 Cadet Pilot Kelvin Seow

‘Attrition at Call Canters’
Attrition of employees in the call centre industry
is mind-boggling and it is creating havoc for the
industry.
The attrition rate varies from minimum 30 per
cent to a maximum 90 per cent per annum.
Wonder why the attrition rate was not so high in
any other new industry like telecom, retail
stores, banking etc.
Reasons
External inequity of compensation
Career Growth
High aspirations that the industry cannot meet
Role stagnation
Work life imbalance
 Lack of recognition
 Under-utilization of skills
Internal inequity of compensation
 
WAYS TO CONTROL
ATTRITION

Providing Something Quality of work

Extra to your employees life
Honoring Performers
Transparent work
Building Relationship
culture
HR Practices
Consider feed back Office-Tiger: A
Role Model BPO to
Follow
 Communication
INTERPRETATION AND
ANALYSIS
 Reason : People are joining with a short-term view and
as a stepping stone to something else.
 Strategy: Create a culture and work environment that
encourages people to think of a call center job as a long-
term career option.
Reason : Call center employees have an average age
profile of 20-24 years, so they are highly emotional,
impulsive and immature when taking career decisions.
 Strategy: Constant counseling.
INTERPRETATION AND
ANALYSIS
 Reason : A lot of young people are taking up call center
jobs just to earn some money on the side and not as a
serious and long-term career option.
 Strategy: Create a culture and work environment that
encourages people to think of a call center job as a long-
term career option.
 Reason : Long-term or intangible or contingency benefits
such as PF or medical coverage do not have much attraction
for call center employees as they want everything in cash.

Strategy: Redesign the compensation package for call
center employees and try to pay as much as possible in hard
cash. Work out if necessary a new pay structure highly
skewed towards cash benefits.
COMPANIES INITIATIVES For
ATTRITION

ICICI OneSource has introduced a career

diversification programme whereby employees
working with the company for more than 18
months can switch to positions in the ICICI
group after passing internal tests.
Future growth of employees.
it highlights that skills learnt in the BPO
industry such as customer friendliness and
rapid response to customer problems have
wider applications in today's competitive
markets.
COMPANIES INITIATIVES For
ATTRITION

Wipro's Spectra mind has introduced medical insurance

for their employees.
Intel Technology has a direct communication programme
running, wherein the president, Intel Technology India, is
meeting all the employees face to face in small groups.
They have an internal committee to ensure retention of
highly qualified employees by offering them alternative
groups to work in.
Consultants were hired to find jobs in other organizations
for the employees who were made to leave the company.  
COMPANIES INITIATIVES For
ATTRITION

Adobe India promotes the spirit of research

by giving moral and financial support to
employees who have business ideas.
If the idea is successful, the company absorbs
it into its business; else the employee goes
back to the usual job.  
COMPANIES INITIATIVES For
ATTRITION

IBM executive MBA programmes and Web based

learning tools help in training the employees to be
better managers.
The company sends the senior level employees to
Wharton, Stanford and Harvard.
 It also has an anonymous feedback programme
(one of the first of its kind in the country), through
which the employees can give feedback freely.