A

PROJECT REPORT

ON

“EMPLOYEES TURNOVER IN ORGANISATION’’

Submitted to the partial fulfillment of Bachelor of Business

Administration

Punjab Technical University

Submitted to: Submitted By:

Miss.Dilvir Kaur Sukhjinder Kumar

(HOD of management) 1429597

Guide: Miss.Manpreet Kaur BBA (5TH SEM)

DIPS INSTITUTE OF MANAGEMENT AND TECHNOLOGY

RAMNEEK AVENUE, JALANDHAR

1
 DECLARATION

I Hereby declare that the summer Training project Report “EMPLOYEES

TURNOVER IN ORGANISATION’’ submitted in partial fulfillment of the award for
the degree of Bachelor of Business Administration[BBA] to DIPS IMT , Ramneek
Avenue, Jalandhar [PTU], Is one of my original work and not submitted to any
other degree /diploma, fellowship or other similar title.

Sukhjinder Kumar

BBA 5th SEM

1429597

DIPS IMT Jalandhar

2
 ACKNOWLEDGEMENT

It is my great pleasure to present this report before you. I sincerely would like to
show my gratitude towards all those persons who have throughout my project
work.

First of all I would like to extend my sincere thanks to MR Surinder copra [HR
MANAGER] who gives me an opportunity to work as trainee in METRO CASH &
CARRY INDIA PVT. LTD.

In a span of two months Training, I got their whole hearted support and guidance
and have helped me to learn so much about this prestigious organization.

I extend heartfelt gratitude to my guide for their invaluable guidance and

encouragement throughout the study and I would like to thanks them for being
my mentor throughout my training. I would also like to thanks my family who
supported me throughout my student career. And especially thanks to my friends
and my batch mates who help in issues which I couldn’t discuss with others. They
always stood by me, during good time as well as bad time.

3
 Index

Sr.No. Topic Pages

1 Introduction of company 05
2 Employees turnover in organization 08
3 Literature review 21
4 Research methodology 23
5 Data analysis 27
6 Findings 38
7 Conclusions 29
8 References 40
9 Questionnaire 41

4
 CHAPTER1:
INTRODUCTION OF COMPANY

5
INTRODUCTION: METRO CASH &CARRY WHOLESALE GROUP
Metro A, otherwise known as metro group, is a German global diversified retail
and wholesale /cash and carry group based in Düsseldorf. It has the largest market
share in its home market, and is one of the most globalised retail and Wholesale
Corporation. It is the fifth-largest retailer in the world measured by revenues
[after Wal-Mart, Carrefour, Tesco and Kroger]. It was established in 1964 by onto
Beisheim.

The MATRO CASH & CARRY success story began in 1964 with the opening of the
first wholesale outlet in Germany. Today the company is reprinted in 29 countries
with METRO and MATRO cash & carries stores at about 750 locations-and offers
its commercial customers up to 50,000 different products from a single source
Headquartered in Dusseldorf, Germany, METRO cash & carry is a sales division of
METRO GROUP, one of the largest and most international retailing companies .

Profile: METRO CASH AND CARRY PVT LTD INDIA

MATRO CASH AND CARRY commenced operations in India in 2011 with the
opening of its second wholesale distribution centre in India at Jalandhar, Punjab.
In INDIA,METRO cash and carry currently has sixteen operational wholesale centre
–tree in Bangalore , two each in Hyderabad and Mumbai , and one each in Delhi ,
Kolkata ,Ludhiana , Zirakpur , Amritsar ,Vijayawada ,Indore and Jaipur. The
headquartered in Dusseldorf, Germany, METRO Cash and Carry is a sales divisions
of METRO GROUP, one of the most international companies. In 2015 the group
reached sale of around 67 Billion .with more then 100000 employees worldwide,
the company achieved sale of about 59 Billion 2015.

In the business to business self service wholesale model, only duly registered
business customer are allowed to purchase at METRO, with customer registration
card.

6
 COMPANY PROFILE

.Type : private group

.Industry : wholesale

.Location : Jalandhar

.Founded : 2011

.Headquaters: Germany

.Product : Fast moving consumer goods

.Revenues : 59 crore

.Numbers of employees : 470

.Website : www.metro-cc.com

7
 CHAPTER-2
EMPOLYEES TURNOVER
IN ORGNISATION

8
MEANING:
Employee turnover refers to the number or percentage of workers who leave an
organization and are replaced by new employees. Measuring employee turnover
can be helpful to employer that wants to examine reasons for turnover or
estimate the cost-to-higher for budget purposes. Blanket references to turnover
can be confusing; therefore, specific definition and calculation for employee
turnover may be useful to human recourse practitioners. High employee turnover
can cost a company more than they might realize in the long run.

Employee turnover is a measure of how many employees leave an organization

and are replaced. Turnover is expressed as an annual percentage of the total
workplace.

For example, 25 percent employee turnover would mean that one-quarter of a

company’s workforce at the beginning of the year has left by the end of the year.
Turnover should not to be confused with layoffs, which involve the termination of
employees at the employer’s discretion in response to business conditions such as
reduced sales.

According to Chandra Jam, “Employee turnover refers to the numbers or

percentage of workers who leave an organization and are replaced by new
employees”.

9
 TYPES OF EMPOLYEES TURNOVER

Explained the types of employees turnover

10
1. Internal vs. External turnover
Like recruitment, turnover can be classed as internal or external. Internal
turnover involves employees leaving their current position, and taking new
position with the same organization. Both the (such as increased morale
from the change of task and supervisor) and negative (such as project
/relational disruption) effects of internal turnover exist and thus this form of
turnover may as moderated and controlled by typical H R mechanisms, such
as an internal recruitment policy or formal succession planning.
2. Skilled vs. un-skilled employees
Un-skilled position often have high turnover and employees can generally
be replaced without the organization or business incurring any loss of
performance. The ease of replacing these employees provides little
incentive to employers to offer generous employment contracts; conversely,
contracts may strongly favor the employer and lead to increased turnover
as employees seek and eventually find, more favorable employment.
However, high turnover rates of skilled professional can pose as a risk to
business or organization, due to the human capital (such as skilled, training
and knowledge) lost.
3. Voluntary vs. Involuntary turnover

1) Involuntary: - In this case, the employee ceases to work for the company
due to being laid off or terminated. It could be because company is
trying to cut cost, or the company has violated company policy.

2) Voluntary: - voluntary turnover is when an employee terminates

employment on their own accord. There are several possible causes:-

2.1 Relocation
2.2 Going back to organization
2.3 General Job dissatisfaction
2.4 lack of benefits
2.5 Poor management

11
CAUSES OF EMPLOYEE TURNOVER

There are several factors that high turnover within company. This report will focus
on voluntary turnover, because voluntary turnover is something that companies
are more able control. Employees voluntarily quit for several reasons specifically:

12
 1. Pay is too low

2. Lack of benefits

3. Tasks are too repetitive

4. Circumstances listed above such moving

5. Poor management

6. Lack of advancement

7. Burnout

8. Compensation package differences job & employee skills mismatch.

9. Less recognition

10. Less or no appreciation for work done

11. Less growth opportunities

12. Poor training

13. Poor supervision

14. Less work and life balance practices

There are some other numbers of factors that contribute to employee turnover.
We explore some of these factors in more detail below:-

1. The economy -In exit interviews one of the most common reasons given for
leaving is

The availability of higher paying jobs. Some minimum Wage works report leaving
one job for another that pays only 50 cents an hour more .Obviously, in a better
economy the availability of alternative jobs pays a role in turnover, but this tends
to be overstated in exit interviews.

13
2. The performance of the organization - An organization perceived to be in
economic difficulty will also raise the specter of impending layoffs. Workers
believe that it is rational to seek other employment.

3. The organizational culture - Much has been written about organizational

culture .It is sufficient to note here that the reward system, the strength of
leadership, the ability of the organizations to elicit a sense of commitment on the
part of workers, and its development of a sense of shared goals, among other
facers, will influence such indices of job satisfaction as turnover intentions and
turnover rate.

4. The characteristics of the job -Some jobs are intrinsically more attractive than
others .A job 's attractiveness will be affected by many characteristics ,including its
repetitiveness , challenge , danger , perceived importance , and capacity to elicit a
sense of accomplishment . A job’s status is also important, as are many other
factors.

5. Unrealistic expectations - Another factor is the unrealistic expectations and

general lack of knowledge that many jobs applicants has about the job at the time
that they receive an offer. When these unrealistic expectations are not realized,
the worker becomes disillusioned and decides to quit .

Causes of High and Low employee turnover

High turnover often means that employees are unhappy with work or
compensation, but it can also indicate unsafe or unhappy conditions, or that too
few employees give satisfactory performance (due to unrealistic expectations or
poor candidate screening).The lack of career opportunities and challenges,
dissatisfaction with the job-scope or conflict with the management has been cited
as predictors of high turnover.

14
High rate of turnover may lead to decrease in:

1. Productivity

2. Service delivery

3. Spread of organizational knowledge

Low turnover indicates that none of the above is true: employees are satisfied,
healthy and safe, and their performance is satisfactory to the employer. However,
the predictors of low turnover may sometime differ than those of high turnover. A
side from the aforementioned career opportunities, salary, corporate culture,
management’s recognisation, and a comfortable workplace seem to impact
employees ‘decision to stay with their employer.

A little rate of employee turnover may result into:-

1. Bringing in new ideas and skills from new hires.
2. Better employee-job matches.
3. More staffing flexibility.
4. Facilitate change and innovation.

HOW TO CALCULATE THE TURNOVER RATIO

STEP1. Calculate the average number of employees the number of employees is

calculated by adding the number at the start of the period, to the number at the
end of period .Then dividing by 2 to arrive at the average number of employees.

For example: At the start of the year the firm employed 10, 00 people .at the end of year the
firm employed 1200. To arrive at the average we add together 1000+ 1200=2200. Then divide
by 2 to get our answer 2200\2=1100 this figure is the average number of people employed
during the period.

15
STEP2. Calculate the number of departures during the period. The key here is to
make sure that only include those department that are actually relevant. That
means those that comes with in definition we are using. So for the definition we
are using in this example the relevant figurer are:- Total number of exit =220
voluntary=110early=55

STEP3. Divide departure by number of employee to arrive at our final figure, we

divide the number of relevant of departure by the average number of employees.
Then* by 100 to get %age rate. For total turnover we have: 220/1100(x100) =20%
for voluntary turnover we have 110/1100(*100) =10% of earlier turnover we
have: 55/1100(*100) =5% calculate employee turnover.

Measure To Reduce The Rate Of Turnover

1. Benefits: Offering employees an affordable medical, dental, vision package in

this day and age is a great way to keep employees happy. Healthy employees are
happy employees, being able to provide affordable health care for their spouses
and families as well is something every company should offer.

2. Higher pay: Giving employees regular raises and paying well over minimum
wages would be an incentive for them to stay.

3. A set schedule: In food service and retail and most service industry as well as
health care, employees are forced to work six or more even up to ten day in a row
without a day off. Days off may even be split up, so the employees never really get
a chance to rest.

4. Job variation: employees get burned out on performing the same job every
hour of every day, in and day out for years, even months. Cross-training should be
done, especially in food service and retail, in order to avoid burnout.

5. A positive attitude from superior: most employees don’t like negativity from
their superior. Instead of always being told what they are doing wrong, they need

16
positive reinforcement as well as constructive criticism .Managers and supervisors
should always have a positive attitude towards their employees and never insult,
criticize, or berate them.

6. Proper training for employee: manager should be trained the thoroughly and
consistently. The policies from location to location should be the same, and every
manager and supervisor in the company should be trained the same way and be
in the agreement and consistent with company policies. Manger should be
trained to treat their employees with the respect, because without those
employees, the business could not operate.

CAUSES OF EMPLOYEE TURNOVER IN THE ORGANIZATION

1. THE ECONOMY – the most common reasons given for leaving is the availability
of higher paying jobs .some minimum wage workers report leaving one job for
another that pays only 50 cent an hour more. Obviously, in a better economy
the availability of alternative jobs pays a role in turnover, but this tends to be
overstated in exit interviews.

17
2. The performance of the organization-an organization perceived to be in
economic difficulty will also raise the specter of impending layoffs. Workers
believe that it is rational to seek other employment.

3. The organizational culture-much has been written about organizational

culture. it is sufficient to note here that the reward system, the strength of
leadership ,the ability of organizational to elicit a sense of committed on the
part of workers ,and it development of a sense of shared goals , among these
factors, will influences such indices of job satisfactions as turn over intensions
and turnover rate.

4. Unrealistic expectations- another factor is the unrealistic expectations and

general lack of knowledge that many job applicants has about the job at the
time that they receive an offer. When these unrealistic expectations are not
realized, the worker become disillusioned and decides to quit.

5. Demographics- empirical studies have demonstrated that turnover is

associated in particular situations with demographic characteristics of
workers.

REDUCE THE EMPLOYEE TURNOVER

It is worth considering the following elements, all of which have been shown
to play a positive role in improvising retention:

1. Job previews- give prospective employees a ‘realistic job preview’ at the

recruitment stage. Take care not to raise expectations only to dash them
later. Advances in technology with increase opportunities to familiarize
potential candidates with the organization before they accept a position.
2. Make line managers accountable –For staff in turnover in their team.
Rewards managers with a good record for keeping people by including the

18
 subject in appraisals. Offer re-training opportunities to existing managers
who have a high level of turnover in their team.
3. Career development and progression- maximize opportunities for
individual employees to develop their skills and move on in their careers.
Where promotions are not feasible, look for sideways, moves that very
experience and make the work more interesting.
4. Consult employees- ensure where possible that employees have a ‘voice’
through consultative bodies, regular appraisals, attitude surveys and
grievance system. This will provide dissatisfied employees with a number of
mechanisms to sort out problems before resigning. Where there is no
opportunity to voice dissatisfaction, resigning is the only option.
5. Be flexible- wherever possible accommodate individual preferences on
working hours and times. Where people are forced to work hours that do
not suit their domestic responsibilities they will invariably be looking for
another job which can offer hours.
6. Job security-provide as much job security as possible. Employees who are
made to feel that their jobs are precarious may put a great deal of effort in
to impress, but they are also likely to be looking for more secure
employment at the same time. Security and stability are greatly valued by
most employees.
7. Treat people fairly-never discriminate against employees. A perception of
unfairness, whatever the reality when seen from a management point of
view, is a major cause of voluntary resignations.
8. Increase the salary package-organization must be increase the salary
package of the employees and provide other benefits like Medical, T.A.,D.A.
etc.

19
20
 CHAPTER -3
LITERATURE REVIEW

1. William H. price & Richard Kiekbusch & John Theis in his study on causes of
employee turnover have talked about the causes and the implementation.
Further he highlighted that providing challenging job and offering realistic
promotion opportunities. Other variables that have less impact are schedule
input. Good communication and job satisfaction.
2. Beri G.C Human Resource Tata McGraw New Delhi, in his study on the cause
of factor influencing turnover and retention of staff and retention problems
for professional have talked about the working hours, work load and work
schedule which are also common concerns to both groups. In addition,
carrier development, pro9motion and four appreciation of contribution were
important retention factors, while supportive professional environment,
21
 reduction in workload and working hours and more flexible work patterns
were important to consultants.
3. Cari McLean, Labour management in agriculture ,in a study knowing a reason
why workers leave or edge in improving working condition and have talked
about dissatisfaction with work or working condition , select and train new
personnel , conducting workers satisfaction survey , find specific problem
area to watch and improve.
4. Cosenza Robert M. in his study on the causes of the cost of employees
turnovers due slowly to unfairness in the workplace and have talked about
the effect of unfairness upon an employee’s decision to leave their employer
and the financial to employer due tom voluntary turnover. Further he
highlighted recruiting and retaining the best and the brightest remove the
barriers and biases which create unfair workplace.
5. Moore, in her study one the causes of an informative report regarding
employees turnover and retention on the causes of high employee turnover
which affect the most, and the companies can decrease employees turnover
in order to cut the hidden cost. Further she highlighted the poor
management, low pay; boring repetitive work, with no opportunity for
advancement, high turnover of employees is is symptom of a mismanaged
company.

22
 CHAPTER-4
RESEARCH METHODOLOGY

RESEARCH METHODOLOGY
Research design of this report is exploratory. Though each research study has its
own specific purpose but the study design of this report on METRO is exploratory
in nature as the objective is the development of the hypothesis rather than their
testing.

23
Research methodology comprises of defining and redefining problems, collecting ,
organizing and evaluation data , making deductions and researching to
conclusions.

Research Objectives

1. To study employee turnover.

2. Find out the reason behind employee turnover.
3. To study its impact on work culture.
4. To find out employees annual as well as average turnover rate.
5. To find out possible solution to decrease employee turnover.

Research Design

The nature of this report is exploratory. Research design refers to “framework and
plan for a study that guides the collection and analysis of data.” A typical research
design of a company basically tries to resolve the following issues:

1. Determining data collection design

2. Determining data methods
3. Determining data source
4. Determining primary data collection method
5. Developing questionnaires
6. Determining sampling plan.

Objective of the Study

 To measure the satisfaction level of employees in an organization.

 To find out the cause of employment turnover.
 To measure the cost of turnover.
 To find out how can the bank retain / profitable customers.

LIMITATIONS OF STUDY

 Employee benefits are confusing.

24
  Many employees do not understand what is being offered to then or do not
take advantage of percentage offered to them.
 Small companies do not have human resource support.

DATA COLLECTION
1. Primary data

2. Secondary data

Primary data: The data which is collected by the researcher for the first hand
is called primary data.

Sources:

25
a) Questionnaire

b) Interview method

2. Secondary data: Those data has been compiling by some agencies other than
user.

Sources:

a) Company profile
b) Magazine
c) Internet
d) Books

26
 CHAPTER:-5
DATA ANALYSIS

1. Are you satisfied with your current job?

Particular Yes NO
employees 32 18
Percentage 64% 36%

27
Interpretation:

It was founded that satisfied his job 64% and not satisfied his job 36%.

2. Are you satisfied working environment.

Particulars Satisfied Not satisfied

Employees 34 16
Percentage 66% 32%

28
Interpretation:

It was founded that satisfied employees his working environment is 66% and not
satisfied his working environment 32%.

3. How much work load you faced in your organization.

Particular High Low

Employees 40 10
Percentage 80% 20%

29
Interpretation:

It was founded that high work load face the employees is 80% and low his 20%.

4. Relationship with management.

Particular formal Informal friendly

Employees 19 8 23
percentage 38% 16% 46%

30
Interpretation:

It was founded that relationship with management is 38% formal, 16% informal
and 46% friendly.

5. Relationship with subordinates.

Particular formal informal friendly

Employees 12 30 8
percentage 24% 60% 16%

31
Interpretation:

It was founded that relationship with subordinates 24% formal,60% informal, and
16% friendly.

6. The work timing is satisfactory.

Particular Yes No
Employees 35 15
percentage 70% 30%

32
 Interpretation
It was founded that working timing g is satisfy employees agree 70% and
disagree 30%.

7. Are you satisfied with current salary package?

Particulars Yes No
Employees 10 40
Percentage 20% 80%

33
Interpretation

It was founded that satisfy is current salary package agree 20% and disagree 80%.

8. Are you satisfied with leave and holidays?

Particulars Yes No
Employees 36 14
Percentage 72% 28%

34
 Interpretation

It was founded that satisfied with leave and holidays 28% Yes and No 72%.

9. Satisfy with training and development

Particulars Yes No
Employees 28 22
Percentage 56% 44%

35
 Interpretation
It was founded that Employees satisfy T&D says Yes 56% and say No 44%.

10.Does Employees Turnover have an impact on your performance?

particular Yes No
Employees 35 15
Percentage 70% 30%

36
 Interpretation
It was founded that employees turnover impact on performance employs
say yes 70% and No 30%.

FINDINGS
During the project I found that the company should adopt these strategies to
come up the problem of Employees turnover:

1. BENEFITS. Offering employees an affordable medical, dental, and vision

package in this days and age is a great way to keep employees happy.
2. Higher pay .Giving employees regular raises and paying well over minimum
wage would be an incentive for them to stay.

37
 3. Job variation. Employees get burned out on performing the same job every
hour of every day, day in and day out for years, even months.
4. A positive attitude form superiors. Managers should always have a positive
attitude toward their employees and never insult, criticize, or berate them.
5. Proper training for management. Managers should be trained thoroughly
and consistently .manager should be trained to treat their employees with
respect, because without those employees, the business could not operate.

CONCLUSION

I have found through the analysis that most of the organization reduces their
employees turnover problem, given are below:-

a) Increase the salary package.

b) Reduces work load.
c) Provide as much job security as possible.

38
 d) Maximize opportunities for individual employees to develop their skills and
move on in their careers.
e) Help employees achieve the same result in less time through training.
f) Conducting workers satisfaction survey, find specific problem area to watch
and improve.
g) Remove barriers and biases which create unfair workplace.

REFERANCES
BOOKS
Human Resource Management by Ashwat Thapa.

WEBSITES

A] HTTP://WWW.METRO.COM

B] HTTP://WWW.METRO-CC.COM

C] METRO.WIKIPEDIA.com

D] WWW.METRO profile.com

39
 QUESTIONNAIRE

I am very thank you for agreeing to complete this questionnaire. I would

appreciate if you could be an honest as possible in completing it

Name ……………………………

Age ……………………………

Nationality ……………………………

Job department ……………………………

40
 Number of working year in the current organization

………………………………………………………………………………

1. Are you satisfied with your current job?

a. Yes

b. No

2. Are you satisfied working environment.

a. Satisfied

b. Not satisfied

3. How much work load you faced in your organization.

a. High

b. low

4. Relationship with management.

a. Formal

b. Informal

c. friendly

41
5. Relationship with subordinates.

a. Formal

b. Informal

c. Friendly

6. The work timing is satisfactory.

a. Yes
b. No

7. Are you satisfied with current salary package?

a. Yes

b. No

8. Are you satisfied with leave and holidays?

a. Yes

c. No

9. Satisfy with training and development.

a. Yes

b. No

42
10.Does Employees Turnover have an impact on your performance?

a. Yes

b. No

43