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Introduction

Attrition is a critical issue and pretty high in the industry these days. Its the major problem
which highlights in all the organizations. Though the term ATTRITION is common, many
would be at a loss to define what actually Attrition is, Attrition is said to be the gradual
reduction in the number of employees through retirement, resignation or death. It can also be
said as Employee Turnover or Employee Defection Whenever a well-trained and well-adapted
employee leaves the organization, it creates a vacuum. So, the organization loses key skills,
knowledge and business relationships. Modern managers and personnel administrators are
greatly interested in reducing Attrition in the organization, in such a way that it will contribute to
the maximum effectiveness, growth, and progress of the organization.
This study is an outcome of the topic called A Study on Employee Attrition in
LifeCell International Limited. The main objectives of this study is to know the reasons, why
attrition occurs, to identify the factors which make employees dissatisfy, to know the satisfactory
level of employees towards their job and working conditions.

Statement of the problem:The aim of the present report is to study factors like salary, growth, opportunities, facilities,
policies and procedures, recognition, appreciation, suggestions, co- workers by which it helps to
know the Attrition level in the organizations and factors relating to retain them. This study also
helps to find out where the organizations are lagging in retaining.

Need for the study:


The study in LifeCell International to focus on why the attrition occurs and the
possible ways to reduce it and to helpful in knowing why the employee prefer to change their job
and which factor make employee dissatisfy and also helpful to the management to improve its
core weakness by the suggestion and recommendation prescribed in the project.
The success of any service organization depends largely on the workers, the employees are
considered as the backbone of any company. The study was mainly undertaken to identify the
level of employees attitude, the dissatisfaction factors they face in the organization and for what
reason they prefer to change their job. Once the levels of employees attitude are identified, it
would be possible for the management to take necessary action to reduce attrition level. Since
they are considered as backbone of the company, their progression will lead to the success of the
company for the long run. This study can be helpful in knowing, why the employees prefer to

change their job and which factors make employee dissatisfy. Since the study is critical issue, it
is needed by the originations in order to assess the overall interest and the feelings of the
employees towards their nature of job and organization.
This study can be helpful to the management to improve its core weaknesses by
the suggestions and recommendations prescribed in the project. This study can serve as a basis
for measuring the organizations overall performance in terms of employee satisfaction. The need
of this study can be recognized when the result of the related study need suggestions and
recommendations to the similar situation.

Scope of the study


The scope of this study is confined to decrease attrition level in the organization. This study can
help the management to find the weaker parts of the employee feels towards the organization and
also helps in converting those weaker part in to stronger by providing the optimum suggestions
or solutions. This study has a wider for scope in any kind of organization since attrition is
general one and makes the employees to put forth their practical difficulties and need factors in
the organization. This study can help the management to know for which the reason employees
tend to change their job, through dissatisfaction factors faced in the organization and also helps
to recover by providing the optimum suggestions or solutions.

Objective for the study:


Primary objective:

To study the employee attrition in LifeCell International Pvt. Ltd

Secondary objective:

To study and find out the various reasons for employees attrition
To know the satisfactory level of employee towards their job and to identify factors
which make employees dissatisfied.
To find the area where LifeCell International Pvt. Ltd to improve.
To suggest possible solution to reduce attrition rate in LifeCell International Pvt. Ltd.

Company profile
LifeCell International is the first largest private stem cell bank and stem cells solutions provider
in India to bring the revolutionary concept of umbilical cord stem cell banking to India. LifeCell
started its operations in 2004 with cryogenic preservation of umbilical cord blood stem cells with
advanced facility in Chennai. The company has a technological collaboration & exclusive license
agreement with Cryo-Cell International Inc New York. The worlds first and largest stem cell
bank. Cryo-Cell was started in 1994 which has served around 185,000 clients worldwide to
preserve their newborns umbilical cord blood banking; Cryo-Cell Cord Blood Bank is
pioneering the way in research, to find more solutions to preserve stem cells in a
noncontroversial way. This technological partnership with Cryo-Cell ensures that the stem cells
are collected, processed and preserved at international quality standards and guidelines to meet
future requirements, if any, which may arise after many decades.
Since the beginning of LifeCell, it has grown at a consistent pace and has strongly
established its leadership position in the industry. As the market leaders LifeCell had the
responsibility of educating the public and medical fraternity on stem cell technology and through
these efforts today close to 46,000 clients who have banked their babys cord blood stem cells
with LifeCell with this number compounding every day.
LifeCell International is the worlds first and the only organization to offer comprehensive stem
cell solutions. The company has engaged into a range of activities in stem cells comprising of
cord blood stem cell banking for the baby, cord tissue stem cell banking for the baby, Menstrual
blood stem cell banking for women, Research & Development for exploring new avenues of
stem cell applications, Clinical trials for exploring new therapeutic applications, stem cell
therapy center for providing clinical support to the needy.
LifeCell has a strong track record which was backed by experience and expertise in stem cell
technology to provide stem cell solutions.

This has helped LifeCell to attain and retain its leadership position in the industry and their
thousands of customers voices will assure LifeCell for trust and its
reliability.

Review of literature
A reduction in the number of employees through retirement, resignation or death. Attrition,
also known as employee turnover, or employee defection, is an industrial term used to describe
loss of employees or man power.
Attrition is pretty high in the industry these days. Attrition is a universal phenomenon and no
industry is devoid of it, but the degree fluctuates from industry to industry. Attrition is a serious
issue in the industries because the industry is knowledge-based and hence employees are its
assets.
Deficiencies like inability to influence employee perception of growth; not aligning employees to
roles based on their individual talent, inflexibility in leadership styles, are causing conflict at a
very intrinsic level, resulting in knowledge employees choosing the proverbial easy way out.
ATTRITION IS A BUSINESS PERSPECTIVE
Says ABRAHAM. T M, Head-HR, Veeda CR,
Attrition is a phenomenon affecting any business organization in the industry. Over the
past few years, organizations have taken an increased interest in aligning their HR practices to
their business goals.
Whereas the deficiencies like inability to influence employee perception of growth; not aligning
employees to roles based on their individual talent, inflexibility in leadership styles, are causing
conflict at a very intrinsic level, resulting in knowledge employees choosing the proverbial easy
way out. Employees thus attempt to change the manager or the work environment resulting in
employee attrition.
Attrition occurs due to INEFFECTIVE MANAGE
Says BEENA HANDA, vice-president-HRM of Claris life science. Attrition also
happens when people hate their working conditions, do not like their team-mates or perhaps do
not like what they are doing. There are also cases when people leave their job for family reasons
or when they wish to migrate. For example, girls often leave their jobs when they get married
and shift to another city,

A WORKFORCE MAGAZINE ARTICLE, knowing how to keep departing workers. The


main reason that employees chose to leave was poor management. HR magazine found that 95
percent of existing employees attributed their search for a new position to an ineffective
manager.

Attrition is a critical issue


Whenever a well-trained and well-adapted employee leaves any organization, it creates a
vacuum. The organization loses key skills, knowledge and business relationships. And it is not an
easy task to find a substitute.Situation is worse when it happens at a critical (decision making)
position, as there is a scarcity of such technical resources in the market, explains head HR, who
feels attrition directly affects the company. Employees want not only work recognition, but also
extra perks.
.
Says DR.NANDKISHORE RATHI, placement officer of IIT-B,
After doing the survey, we found that the lack of match between personal requirements and
organizational culture was quite prevalent.
Along with the tree main reason as mentioned,

An employee may be concerned about the environment in the organization,


His compatibility with his supervisors,
The attention paid to him.

Hence, the reason for an employee leaving a company could be nothing other than his growth, if
companies take proper steps and adopt methods to serve their employees needs, the challenge of
managing attrition will remain low.

TREAT EMPLOYEES LIKE CUSTOMER

Companies should have a similar approach to employees and customers. A company


should strive to retain an employee in the same way it tries to retain a customer. BIJAY
SAHOO, Vice president Talent Engagement & development Wipro Technologies.
Some employees prefer development to being in a support and maintenance job. To hold
back these people, we give first preference for training them. RAKESH TIKU, Vicepresident Infinite Computer Solutions..

Says BIJAY SAHOO, Vice president, talent engagement and development, Wipro
Technologies, Companies should have a similar approach to employees and customers. If a
company strives to retain an employee in the same way it tries retain a customer, him leaving
the organization could be out of question. Communication is the foundation for the entire
process of managing attrition. This communication begins right from recruitment.
Says RAJEEV MALIK, director, HR, McAfee Software (India), Conducting regular
meetings and updating employees, especially new entrants, about the companys status and
achievements is a must.

Rathis recommendation
Dr. NANDKISHORE RATHI, placement officer, IIT-B, has a few tips to reduce attrition,
For HR manager

Consider both a persons culturefit and job-fit.


Understand the expectations at the entry level.

To curb a high attrition rate

Top management should communicate continuously with all the employees about the
vision and mission of the company.
Support HR initiatives aimed at retaining people.
Line manager or project manager should establish a connection between the lower-level
and top management.

Manage the companys growth properly.


Develop leader at all level.
Train leader in the skills they need to manage effectively.

Reduce attrition: Managers and professional employees


We can help you adjust your company vision and managers performance reviews to reflect
employee turnover, and provide mentoring and interpersonal training to inexperienced manager.

Develop and communicate a strong strategic vision.


Provide relationship coaching and help people develop to their potential.
Reward managers for their relationship skills-not only on technical know-how and
financial results.

LEADERSHIP CRISIS LEAD TO ATTRITION


Says DESIKAMANI.G is the chief Mentor of Mentor Consulting, Chennai, that
LEADERSHIP CRISIS LEAD TO ATTRITION, Lack of good leaders who can motivate
and guide their teams well is a significant reason for high rate of attrition in the industry.
Employees dont leave organizations but their manager. There has been a phenomenal
change in employee perception of loyalty over the last decade and is especially true of
knowledge workers. What the organization can expect from an employee has
dramatically changed from loyalty to commitment-to-cause and so has the factors
causing them.
Deficiencies like inability to influence employee perception of growth; not aligning
employees to roles based on their individual talents, flexibility in leadership styles, are
causing conflicts at a very intrinsic level, resulting in employees choosing the proverbial
easy way out. They attempt to change the manager or work environment and hope for
the best to happen.
Jackofsky, E.F (1984) conducted a study on Turnover and job performance: An
integrated process model the key contribution of this article is the integration of job
performance into predominant process models of turnover. Numerous process models
(e.g. March and Simon, 1958; Mobley, 1977) have been applied in an attempt to explain
the decision to leave an organization, but this is the first to look at the role of job
performance in the process. Job performance is conceptualized as both a direct influence
on turnover as a precursor to various antecedents of turnover. This theoretical advance

has implications for both turnover researchers and HR managers in understanding how to
keep valued employees.
Abelson, M.A (1987) conducted a study on Examination of avoidable and unavoidable
turnover with the objective of study about turnover. Past research has suggested that
workers leave either voluntarily or involuntarily. In this article, the author holds that this
approach excludes some involuntary departures from analysis, while treating all people
who leave voluntarily as being similar. Drawing on Dalton, Krackhardt, and Porters
(1981) suggested taxonomy of avoidable and unavoidable turnover, this article examines
whether the taxonomy aids in the analysis of turnover.
The key finding from this research is that unavoidable departures and retentions did not
significantly differ on four variables: Commitment, satisfaction, job tension, and
withdrawal cognitions. These findings suggest that researchers should consider the
circumstances of job quits when analyzing the causes of employee turnover.
Chandramohan and Vasanthikumari (2006) conducted a study on "Attrition: A
Predicament for ITES in India" and found out that high attrition rate is a major challenge
for the HR manager as many individuals (mostly fresh graduates) take it as a time-pass
job. Once they join the sector and understand the requirement, they start leaving the
organization because many are not able to take the pressure of work. Again high
percentage of females in the workforce adds to the high attrition rate. There are various
costs which incurred due to attrition like recruitment costs, training costs, lost
productivity costs, lost sales costs and hiring costs. They suggested that pay checks alone
are not enough to motivate the employees. Apart from salaries, ITES Company should
also focus on smart people, management tools and strategies to keep their people happy.
They should also focus on how to hold on to their people by anti-poaching agreements,
better perks, flexible working hours, higher compensation levels, good career plans to
retain employees, better recruitment methods to filter right people for right places and
balance between performance expectations and growth aspiration.

Miller and Wheeler (1992) and Wai and Robinson (1998) reported no relationship between
gender and turnover. However the reasons for employee turnover vary from one Organization to
the other and from one person to another as they are not getting what they expect from the
Organization.

Wai & Robinson, 1998 and Price and Mueller, 1986 found that non-managerial employees are
more likely to quit than managerial employees.
Cotton and Tuttle (1986) and Weisberg and Kirshenbaum (1993) found females more likely
to leave than males.

(Shaw, Gupta and Delery, 2005) conducted a study on Retention an employee retention plays
a vital role in bridging the gap between the macro strategies and micro behavior in
Organizations. This is because it ensures stability and connects the experiences of individuals in
Organizations on a continuous basis to the critical measures of success factors in the
Organization. The decision of leaving the Organization is not easy for an individual employee as
well as significant energy is spent on finding new jobs, adjusting to new situations, giving up
known routines and interpersonal connection and is so stressful

FIVE PRINCIPAL REASONS FOR WHICH THE PEOPLE CHANGE JOBS

It doesnt feel good around here. This is a corporate culture issue in most cases.
Workers are also concerned with the companys reputation; the physical
conditions of comfort, convenience, and safety, and the clarity of mission.
They wouldnt miss me if I were gone. Even though leader do value employees,
they dont tell them often enough. If people dont feel important, theyre not
motivated to stay. No one wants to be a commodity, easily replaced by someone
off street. If they are regarded as expendable, theyll leave for a positive where
theyre appreciated
I dont get the support I need to get job done country to opinions heard all-toooften from management, people really do want to do a good job. When theyre
frustrated by too many rules, red tape, or incompetent supervisors or co-workers,
people look for other oppournities.

QUESTIONNAIRE
1) Workers name

: ________________________

2) Age

3) Qualification

4) Experience

Diploma
Below 5yrs

BE

U.G

P.G

6-10 yrs

1 1-20 yrs

Above20 yrs
5) Marital status

6) Monthly income

Married
Below 5000

Unmarried
5001 to 10000

10001

to 15000
15001 to 20000

20001 and

Above

1. Are you satisfied with the way of career is developing?


a) Strongly Agree b) Agree c) Neutral d) Disagree e) Strongly Disagree
2. Are there any skill developments opportunities in Lifecell International Pvt. Ltd?
a) Strongly Agree b) Agree c) Neutral d) Disagree e) Strongly Disagree
3. Is there any scope for career growth in Lifecell International Pvt. Ltd?
a) Strongly Agree b) Agree c) Neutral d) Disagree e) Strongly Disagree

4.

Do you have control the job that you perform?


a) Strongly Agree b) Agree c) Neutral d) Disagree e) Strongly Disagree

5. Did the control on your job give you confidence and motivation?
a) Strongly Agree b) Agree c) Neutral d) Disagree e) Strongly Disagree

6. Do you able to complete all tasks assigned within your working hours?
a) Strongly Agree b) Agree c) Neutral d) Disagree e) Strongly Disagree
7. Do you feel that the work assigned to you requires you to work very hard?
a) Strongly Agree b) Agree c) Neutral d) Disagree e) Strongly Disagree

8.

Do you have to work extra time in order to accomplish your tasks?


a) Strongly Agree b) Agree c) Neutral d) Disagree e) Strongly Disagree

9. Do you feel exhausted when you return home/room from work


a) Strongly Agree b) Agree c) Neutral d) Disagree e) Strongly Disagree
10. Whether your relationship with your seniors is quite healthy and never had any argument on
issues regarding your performance.
a) Strongly Agree b) Agree c) Neutral d) Disagree e) Strongly Disagree
11. Are you happy with the existing safety measures adopted in your organization?
a) Strongly Agree b) Agree c) Neutral d) Disagree e) Strongly Disagree
12. How long you are working here?
a) 1year b) 1-2years c) 2-3years d) 3-4years

e) <4years

13. How well do you understand your job and the role it plays in achieving your vision?
a) Not at all b) Not really c) somewhat d) pretty much e) Totally
14. For which reason, you prefer to change the job?
a) personal problem b) job itself c) lack of growth opportunities
d) Monetary benefits

e) Others

15. what kind of personal problem leads you to leave the job?
a) Health condition b) Location preference c) spouse transfer
d) Family issues

e) Others

16. what type of job nature leads you to leave the job?
a) Monotonous work b) Over workload c) Work timings
d) Team issues

e) Others

17. Are you satisfied with the basic needs provided by the company?

a) Highly Satisfied b) Satisfied c) Neutral d) Dissatisfied


e) Highly Dissatisfied
18. Are you satisfied with the motivation techniques adopted by the company?
a) Highly Satisfied b) Satisfied c) Neutral d) Dissatisfied
e) Highly Dissatisfied
19. Are you satisfied with the shift timings of the company?
a) Highly Satisfied b) Satisfied c) Neutral d) Dissatisfied
e) Highly Dissatisfied
20. Which of the following makes you to get Dissatisfied?
a) Work pressure b) Management discussion c) working environment
d) Pay structure e) Others
21. Does the company helps in your personal problem?
a) Always b) Sometimes c) Often d) Rare e) Not at all
22. Do you believe that there in dissatisfaction level ------?
a) Not Really b) Somewhat okay c) Average d) Really good
23. Specify the area where improvement is required Internally---?
a) Employee motivation b) Working environment c) Monetary benefits d) Training program e)
Others
24. Specify the area where improvement is required Externally---?
a) Innovation technology b) Shortage of management pool
c) New project benefits d) R&D e) Others
25. Do you have freedom to convey your immediate problem to Top-level people---?
a) Yes

b) No

26. Is there any considerations for the employees creativity?


a) Yes

b) No

27. Whether promotion is given based on skill?


a) Yes

b) No

28. Whom do you think is responsible for attrition?


a) Employee himself b) Colleagues c) Line manager or supervisor d) Others
29. How long do you plan to continue your career in LifeCell International Pvt. Ltd?
a) 0- 1year b) 1-2years c) 2-3years d) >3years

e) No idea

30. To reduce absenteeism what are the action do you think that management will take?
a) Face to face b) Internal job posting c) Skill development d) Work-life balance e) Increase
benefits f) Others please specify
31. Do you think increase in attrition rate will leads to decrease in company brand name?
a) Strongly agree b) agree c) neutral d) Disagree e) Strongly disagree
32. Any suggestion to reduce attrition__________________________________________