On
‘A Study on Factors Influencing Employee Turnover from
Organization in IT Industry’
At
BREENDA HR SOLUTION LTD
Submitted to
Institute Code: 807
Institute Name: SAL INSTITUTE OF MANAGEMENT
Prepared by:
SANJANA SURELA (178070592150)
PALAK VAGHELA (178070592168)
TIRUPA THAKAR (178070592156)
JIGAR MAHIDA (178070592065)
PAYAL RATHOD (178070592124)
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xii
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xiv
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Acknowledgement
xvi
Executive Summary
xvii
TABLE OF CONTENTS
xix
List of Tables
xx
List of Figures
xxi
xxii
xxiii
xxiv
xxv
xxvi
CHAPTER – 1
INTRODUCTION
TO
INDUSTRY
1
1.1 HISTORY OF RECRUITMENT INDUSTRY:
Recruitment is the all process of attracting, selecting and appointing suitable candidates
for jobs within an organization. Recruitment also refer to processes involved in
choosing individuals for unpaid positions, such as voluntary roles or unpaid trainee
roles.
Recruitment was firstly discovered by Kerry Karssing-Senior Consultant at Recruit
group. He said that recruitment was something that he has classified as ‘new’ and
‘modern’ which he discovered after researching in way back 1940. The concept of
recruitment and making CV has taken birth in 1940’s as a result of WWII in Egypt,
Greece and Rome for calling soldiers for war and the recruitment industry started
growing from then with the work force by finding returning war veterans and place
them in market.
By 1950’s people started writing CV’s which use to depict their personal profiles and
skills. However, by 1970’s with the boom in economy corporate companies started
approaching recruitment agencies for outsourcing personnel for the companies. But the
recruiters had very limited resources in that time as comparing to modern age of
technology. By mid-90’s with the invention of computer technology and later the
internet it made the tasks and collection and transferring data and connecting with
economy. Since, 2010 people started using internet and computers frequently and
became more adaptive of frequent technological changes.
Nowadays in age of advanced technology things have changed and a new way doing
things have taken place with lot of ease and comfort. Consultancy companies are using
job portal to find right candidates for their clients’ openings and most of the firms who’s
having their own recruitment team are using job portals as a medium to search
professional mandates as per their requirements or else by hiring consultant.
2
Recruitment (hiring) is a core function of human resource e management. It is the first
step of appointment. Recruitment refers to the overall process of attracting, selecting
and appointing suitable candidates for jobs (either permanent or temporary) within an
organization. Recruitment can also refer to processes involved in choosing individuals
for unpaid positions, such as voluntary roles or unpaid trainee roles. Managers, human
resource generalists and recruitment specialists may be tasked with carrying out
recruitment, but in some cases public-sector employment agencies, commercial
recruitment agencies, or specialist search consultancies are used to undertake parts of
the process. Internet-based technologies to support all aspects of recruitment have
become widespread.
Nowadays there is talent war in recruitment consultancies. It’s getting difficult day by
day to find right fit for the job at right time and to retain them in organization especially
in IT industry this problem is very frequent depending upon the various factors that are
affecting attrition rate. A short overview is given ahead related to IT sector in India.
3
1.2 BASIC ANALISIS OF IT SECTOR
Bangalore which is known as the Silicon Valley of India. Hyderabad which is known
as the HITECH City or Cyberabad. Pune is one of the leading Indian and international
IT services and outsourcing exporters. Chennai city has a good IT infrastructure with
dedicated expressway nicknamed as IT expressways. Mumbai and Navi Mumbai have
major IT parks. In Delhi, Gurgaon and Noida it was also IT sector. Telangana which
includes Warangal and Khammam. In Gujarat, Ahmedabad and Gandhinagar are IT
hubs.
4
1.2.b IT industry basically includes following segments:
ITeS/IT Industries
Product
Requirements of Software
TCS, Infosys and Microsoft, Google
The General Requirements for
Wipro and Yahoo
Consumer. a Client
Figure 3 IT SEGMENT
According to the data in Recruiter X Half yearly report-II published by Times Job
which is a part of The Times Group stated that with the presence of 75% global digital
talent in India, the country is the hub of IT and technical prowess. With an overall
growth of 4% in the talent demand, the IT sector is heading towards a positive
momentum. According to Bureau Labour Statistics, jobs for Software Developers,
Computer System Analysts and Market Researchers and Marketing Specialists will
grow by around a fifth from 2018-2024. For these jibs technology and computational
skills will be the vital requirements, as predicted by the industry experts. In Jan-June
2018, software related specialization continued to rule the hiring scene. Indian IT
exports increased to US$ 126 billion in FY18 while domestic revenues (including
hardware) advanced to US$ 41 billion.
As a part of Union Budget 2018-19, NITI Aayog is going to setup a national level
program that will leverage Artificial Intelligence technology for development work in
the country. India is the top most offshoring destination for global IT companies.
Having proven its capabilities in delivering both off-shore and on-shore services and
emerging technologies, Indian companies, are now ready to explore an entire new
gamut of opportunities.
Key Takeaways: IT sector noted 4% uptick in talent demand, software related profiles
were hired most. Job share was significant for junior level, but demand was high for
5
middle and senior level candidates. IT/Telecom and other sectors’ Sales/Business
Development and HR professionals witnessed huge talent demand. Delhi – NCR
recorded highest job share across all three levels, talent demand dipped though. West
Bengal had biggest job share in junior and top level; Uttar Pradesh held highest job
share for middle level.
In an interview Mr. Bhasker Bhandary (Sr. Director-Human Resource) of Acer India
talking about the key hiring trends in IT Industry stated that the IT hardware industry
is a complex mix of talents which requires professional to serve consumers,
government, e-commerce businesses and banking verticals. Right from Sales to product
management to support finance, marketing, and logistics – all roles play a critical role
in our industry. He also stated that in past six months duration there was never a lull in
hiring. As the industry diversifies into new segments like gaming, Virtual Reality (VR),
loT, supercomputers, smart devices, e-commerce etc., they are seeking talent which can
drive growth in these segments. It is very important for candidates, who are seeking
jobs in IT hardware industry, to be updated about these skill and re-skill (if required) to
manage the emerging technology trends. For current scenario in IT industry for skill
gap he said that- In the age of automation, every firm will be impacted in some way or
another. This impact may not necessarily job-related, it will create number of portfolios,
which were nonexistent till date. Skills which are used five years ago will need to be
updated to maintain the pace with ever changing technology. The entire industry is
facing skill gap, because it is process which will take some more time.
He also added that nowadays technological changes in future workplaces might not be
an open office, but interconnected workspaces not tied down to one place, but many
and they will be underpinned by virtual conferencing, complete and constant
connection, portability. Talking about skillsets demanded nowadays he explained that-
Analytical skill is one of the most important underlying traits backed by cognitive and
sound technical skills. Gone are the days, where employees are siphoned into one role
for the entire career. Industry needs dynamic, adaptable candidates ready to function
across challenging roles.
6
1.3 PORTER’S FIVE FORCE OF IT INDUSTRY
Competitive
Rivalry
7
Threat of New Entrants
In context of the highly commoditized IT services, there is little threat of new entrants.
The IT industry is relatively attractive to newcomers because of its rapid growth and
appealing customer base. The best way for a new entrant in this field to be successful
would be if they had a brand new idea for a product or service; the lack of differentiation
in the industry is one thing a newcomer could exploit. Overall, the IT industry isn't
overly attractive, but it is routine and profitable enough that a lot of people try and enter
it. Many new firms try to enter this industry, but they rarely give established names a
real run for their money.
Existing Competition
The IT industry is known for its rapid growth, effectiveness and competition. A main
reason why many new entrants are not successful is the intense rivalry between existing
players. Products in this industry are well branded and tend to have a strong customer
base. The existing competition comes from both domestic players (Infosys, TCS,
Wipro, HCL technologies, Tech Mahindra, Mind tree and so forth) and international
ones (IBM, Accenture, Capgemini, Cognizant and so forth).
8
CHAPTER – 2
INTRODUCTION
TO
COMPANY
9
2.1 COMPANY PROFILE
Breenda HR solutions established in April 2014. It provides wide range of recruitment
and selection services to diverse companies of our clients by offering strategic HR
services.
Breenda’s work domain mainly comprises of recruiting technical, lower, middle &
senior level management professional across on a PAN India level.
With a dedicated team of highly experienced recruiters Breenda has been successfully
recruiting candidates for all their clients as per their requirements. In the past 4 years
Breenda have successfully recruited hundreds of candidates across India for domains
like IT/ Non- IT/Engineering/ Chemical/ KPO Service/ Hospitality / Medical.
10
2.1.b Service Offered
Executive
search –
IT & Non –
IT
Human Recruitme
Capital Service nt Process
Managem Offered Outsourci
ent ng
Permanent
&
Temporary
Staffing
11
2.1.c Recruitment Process
Interviewing,
Relationship Negotiation & Short listing &
Management Final Placement Finalizing the
Candidate
12
2.2 VISION & MISSION
2.2.a Mission:
Breenda HR aims at providing potential human resource to their clients who can help
them to reach the new heights of success & thereby expand their business potential
globally by ensuring that the candidates get opportunity to reach their personal goals
and are satisfied with the cultural integrations of the organisation.
2.2.b Vision:
Breenda HR came with a vision to be a global market leader in providing Quality Man
Power Services and be the one stop solution provider for all the gamut of HR services
like:
- Payroll & compliance management
- Permanent staffing & temporary staffing
- Corporate Training & Development
- HR Manual Policies
13
2.3 SWOT ANALYSIS
Strength Weakness
SWOT
ANALYSIS
Opportunities Threat
Strengths:
A skilled employee is a key factor for the growth of any organization same as Breenda
HR solution Company has a skilled and experienced employee which makes the
organization strong and company is providing a various type of HR services to their
clients.
Weakness:
A main weakness of current recruiters may be that they are more emphasizing on doing
hundreds of cold calls in a day to the prospective candidates which is a waste of time
instead of this they should focus fewer candidate profile which are compatible to the
requirement.
Often, the best candidates are already working in the industry for other companies.
Unfortunately, it is more difficult to get access to these employees.
Opportunities:
Breenda HR solution is providing quality human resource and one-stop solution for all
HR services from getting a detailed understanding of both employers and candidates,
to providing personalised prompt service and ensuring successful long-term
placements.
14
As per fast changing scenario of IT industry it has evolved rapid growth in last one
decade due to digitalization. So, if company uses their employee capabilities effectively
company can become a wonderful leader in the market.
Threats:
Whilst not all recruiters operate within the tech/IT industries, skills shortages in some
hap or form continue to plague most sectors.
With an ever-increasing demand for project specialists and developers, “a lack of
qualified staff, freelancing attitude of candidates and increased competition for talented
developers has long been the scourge of the industry”.
There is high competition in the market and Breenda HR Solution company still need
to work on their value creation process to in market against already well-established
competitor.
15
CHAPTER – 3
DIAGNOSIS
PHASE
16
3.1 IDENTIFICATION OF PROBLEM
A Study on Factors Influencing Employee Turnover from Organization in IT
Industry:
Now a days IT industry in India is facing high staff attrition. Young talent does not stick
to one organization for more than one year. Companies should have to be more careful
while hiring the staff. The job opportunities in Indian IT sector are more than the
available employees i.e. demand is more than supply.
Due to high attrition rate, cost of the organization increases due to training,
development, socialization and also affects productivity and other costs on the
employees.
17
3.2 LITRATURE REVIEW
1. Saket Rungta, K. Madhava Rao (2018), in the explores the challenges that are
faced by the employers and HR managers in the context of alarming increase in
the attrition of the employees in the Indian Information Technology sector. This
present phenomenon is a bane not only to the employees in Indian IT sector but
to all other sectors in the global market. This paper discusses and evaluates the
intensions of the employees of the IT sector about the attrition and about the
different reasons that contribute to the ever growing problem of attrition.
2. Shine David (2015), in his research carried among the employees in IT sector
working in different cities of India to analysis the cause of attrition. Data was
collected from the IT employees when analyzed it yielded 5. Results of the study
suggest that the organizational culture, career growth conditions, working
conditions, work pressure and mutual trust are the reasons for attrition in IT
sector.
3. Shashikala S, Sushma Ravindra (2013), articulated about the severity of the
attrition along the length and breadth of the all the sectors in Indian economy.
It also mentions bout the highest attrition rate in the IT and Telecom sector. The
present study identifies that only compensation dose not result employee
loyalty.
4. Pietersen and Oni (2014), has identified that the main reason for the high rate
of attrition among your age IT professionals and among female employees. Poor
pay and uncertain career growth opportunities contribute in the growth of the
attrition. Job dissatisfaction and managers and supervisors autocratic method of
functioning towards the employees result in the growth of the attrition.
5. Dr. G. Balamurugan, M. Amala (2017), The paper describes the issues of
attrition and turnover to study the perception of an employee and the problem
faces by an employee for improvement of retention strategies to overcome the
attrition and turnover rate. The study explains the factors contributing attrition
and turnover and also has direct and indirect impact for an organization. In
software industry the emerging human resource problems is mainly on attrition
and turnover. This survey was passed in various companies in Chennai.
Convenience sampling technique was adopted for selecting sample units from
the employees. Data collection is made with primary and secondary data in this
study. The primary data were collected through questionnaire by means of
mailing and through telephonic interview with the employees. The source of
secondary data was company profiles, website, journals and research paper. The
tool used for analyzing and interpreting the perception of the employees in
simple form. The results were presented with the help of different charts.
6. Dr. Sneha Mankikar (2013), This research aims at understanding the cause and
effect relationship between infant attrition and employee satisfaction. It also
evaluates relationship and impact of Job description discrepancies, organization
leadership style, stress and employee discrimination on infant attrition. The
sample consists of employees from IT sector all over India. A structured
questionnaire and informal interviews are used to collect primary information
18
from the respondents. Correlation was used to used to establish relationship
between various variables and infant attrition using SPSS version 21.It was
found that attrition is higher among the entry level management which is below
the age group of 40 years. To check infant attrition some measures like profile
mapping tools, strong retention policies etc
7. Dr. K. Sunanda (2017), High attrition rates or employee turnover has a great
impact in managing a business or an organization in a dynamic and competitive
environment. Employee turnover or attrition projects a company’s inability to
retain employees. New employees are to be regularly added which includes
training costs, getting them adjusted to the etiquties and culture of the company
etc, all create a challenge. Organizations have to retain the remaining employees
and attract potential employees. The paper investigates the factors which
increase the attrition rates in IT companies and suggest measures to decrease
the attrition rates. The data was collected through survey method with
questionnaire to the sample of 100 employees in Wipro, Hyderabad.. Reliability
of questionnaire was analysed by Cronbach’s Alpha and Factor analysis was
applied. The results of the study revealed that working conditions, career growth
opportunities, organizational culture, work pressure and lack of mutual trust are
the causes of attrition IT industry. The conclusion is that organisation should
have good organisational culture with positive working conditions, low pressure
and higher opportunities for career growth will have negative impact on attrition
and increase employee attitude to retain in the organization.
8. Mrs. Archana Singh, Ms. Pooja Tawale (2015), This paper studies the causes of
attrition given by various authors for IT and BPO Industries. A literature review
has been done to understand the varied underlying causes of attrition in IT
industry which is a cause of concern in this sector. The parameters which are
contributing towards the causes of attrition have been thoroughly studied and
has been identified for the future scope of the study.
9. Manju Dhillon (2016), The word “Attrition” refers to scaling down of
employees in an organization. It occurs because of resignation, retirement or
due to death of the employee. The employees leave the organization due to
many reasons like he may be getting high salary, higher job positions in some
other company or he may want to change his profession. Now a days IT industry
in India is facing high staff attrition. Young talent doesn’t stick to one
organization for more than one year. Companies should have to be more careful
while hiring the staff. The job opportunities in Indian IT sector are more than
the available employees i.e. demand is more than supply. Due to high attrition
rate, cost of the organization increases due to training, development,
socialization and also affects productivity and other costs on the employees.
This paper aims to explain why Indian IT sector is facing highest attrition rate
and some of the remedial steps to avoid or reduce the turnover rate.
19
According to a driven from a most popular job portal site LinkedIn’s data that gives the
idea about number of IT professionals have profiles on LinkedIn and are actively
searching for new opportunities which is mentioned below here: -
As per the data given above in table states that out of the total number of IT personnel
i.e. 6216 working as a Web Designer 952 people are actively looking for a change in
job and 751 people open to new opportunities, Total number of Android Developer
having LinkedIn account is 4517 out of which 879 are actively searching for a job
change and 669 are likely to respond for new opportunities, total number of iOS
Developer is 4320 out of which 826 are actively searching for new job and 630 are
likely to respond to new opportunities and this is highest than other work profiles. This
suggests that people working as Web Designer are very likely to switchover the job.
20
Recruiter’s likes to hire that coders in whom 26% of the coders are self-taught,
33 % on the job learners, 25% are university certified and 16% short term
trainees with diploma.
From the most of assessment tools used by the employers there is 34% problem
solving challenges, 21% Resume screening, 12% referrals, 12% personality
tests, 6% Hackathons and 8% outsourced human technical interview.
21
3.4 OBJECTIVES OF RESEARCH
3. Work Environment:
Autonomy, Basic Equipment, Favouritism
4. Leadership:
Supervisor, Individual goals, Communication, Monitoring
6. Policies:
Stress Management, Holidays, Transfers
22
3.5 PROJECT SCHEDULE
Table 2 PROJECT SCHEDULE
23
CHAPTER – 4
DESIGN AND ANALYSIS
24
4.1 RESEARCH METHODOLOGY
4.1.a Research Design:
In this report we would be using Descriptive Research.
25
4.2 DATA ANALYSIS
(A) Frequencies:
Table 3 GENDER
1. Gender
Frequency Percent
Male 155 61.8 %
Female 96 38.2 %
Total 251 100.0 %
1. Gender
Female
38.2%
Male
61.8%
Male Female
Figure 9 GENDER
Interpretation:
On the above chart out of 251 respondents 61.8% are male respondents and 38.2% are
female respondents. So, this chart shows that there is high proportion of male
respondents than females.
26
Table 4 AGE
2. Age
Frequency Percent
21-25 years 58 23.1 %
26-30 years 83 33.1 %
31-35 years 83 33.1 %
Above 35 years 27 10.8 %
Total 251 100.0 %
2 Age
Above 35 years
10.8% 21-25 years
23.1%
31-35 years
33.1%
26-30 years
33%
Figure 10 AGE
Interpretation:
Out of the 251 respondents 23.1% respondents between 21-25 years age groups, 33.1%
of respondents lies between 26-30 years, 31-35 years age group is very high in compare
to others age groups and above 35 years groups respondents 10.8% which is very low
compare to other age groups.
27
Table 5 INCOME
3. Income
Frequency Percent
Below 20k 49 19.5 %
20 -30k 88 35.1 %
30 -40k 91 36.3 %
Above40k 23 9.2 %
Total 251 100.0 %
3 Income
Above40k
9.20% Below 20k
19.50%
30 -40k
36.30%
20 -30k
35.10%
Figure 11 INCOME
Interpretation:
Out of the 251 respondents 19.5% respondents are earning below 20k per month, 35.1
of respondents are earning between 20-30 k per month, 36.3% are earning between 30-
40k per month and 9.2% respondents above 40k per month.
4. Total Experience
Table 6TOTAL EXPERIENCE
Frequency Percent
Less than 1 year 34 13.5 %
1 -3years 91 36.3 %
3 -5years 88 35.1 %
Above 5years 38 15.1 %
Total 251 100.0 %
28
4 Total Experience
3 -5years 1 -3years
35% 36%
Interpretation:
Out of 251 respondents, 13.5% of respondents are having experience of less than 1
years, 36.3% of respondents have experience in between 1-3 years, 35.1% of
respondents have experience in between 3-5 years, and 15.1% of respondents have
experience in between above 5 years.
5. Descriptive Statistics:
Table 7 DESCRIPTIVE STATISTICS
Descriptive Statistics
N Minimum Maximum Mean Std.
Deviation
Salary 251 1 5 2.90 1.129
Increment 251 1 5 2.91 1.045
Incentives/Overtime 251 1 5 2.90 1.141
Payment Delayed 251 1 5 2.97 1.155
Higher Targets 251 1 5 3.14 1.135
Potential/Expertise 251 1 5 3.11 1.029
Multiple Task 251 1 5 3.20 1.224
Long Working Hours 251 1 5 3.25 1.064
Heavy Work 251 1 5 3.32 1.150
Autonomy 251 1 5 2.91 1.082
Basic Equipment 251 1 5 2.97 1.080
Favoritism 251 1 5 3.29 1.251
Value Addition 251 1 5 2.87 1.129
Individual Goals 251 1 5 3.13 1.113
Improper 251 1 5 3.16 1.281
Communication
29
Monitoring 251 1 5 3.39 1.134
Opportunity 251 1 5 3.05 1.177
Skills & Competencies 251 1 5 3.12 1.106
Training Programs 251 1 5 3.36 1.232
Stress Management 251 1 5 2.97 1.173
Holidays 251 1 5 2.91 1.133
Transfers Holidays 251 1 5 3.22 1.230
Valid N (listwise) 251
Interpretation:
In above mentioned table of Descriptive Statistics, total number of observations taken
are 251. Here, the mean value of factors 11(Work Load and Hours), 12.3 (Favoritism),
13.2, 13.3, 13.4 which falls under (Leadership) factor, 14(Career Related Factor), and
15.3 (Transfer Policy) mean lies between 3 and 4, which are highly affecting factors for
attrition rate of employees compare to other factors in IT Industry.
6. Oneway Anova:
ANOVA
Sum of Df Mean F Sig.
Squares Square
Reward System Between 159.906 3 53.302 5.264 .002
Groups
Within 2501.305 247 10.127
Groups
Total 2661.211 250
Work Between 144.422 3 48.141 2.848 .038
Environment Groups
Within 4175.435 247 16.905
Groups
Total 4319.857 250
Leadership Between 136.598 3 45.533 3.871 .010
Groups
Within 2905.529 247 11.763
Groups
Total 3042.127 250
Policies Between 69.798 3 23.266 3.118 .027
Groups
Within 1843.095 247 7.462
Groups
Total 1912.892 250
30
Post Hoc Tests
Homogeneous Subsets
Means Plots
F1 (Reward System):
H0- There is no significance difference among various Age group of employees
regarding F1 (Reward System).
H1- There is a significance difference amongst various Age group of employees
regarding F1 (Reward System).
Here, p = 0.02, which is less than 0.05, we failed to accept null hypothesis. It
shows that there is a significance difference exists.
F2 (Work Load/Hours):
H0- There is no significance difference among various Age group of
employees regarding F2 (Work Environment).
H1- There is a significance difference amongst various Age group of
employees regarding F2 (Work Environment).
Here, p = 0.38, which is less than 0.05, we failed to accept null hypothesis. It
shows that there is a significance difference exists.
F4 (Leadership):
H0- There is no significance difference among various Age group of
employees regarding F4 (Leadership).
H1- There is a significance difference amongst various Age group of
employees regarding F4 (Leadership).
Here, p = 0.010, which is less than 0.05, we failed to accept null hypothesis. It
shows that there is a significance difference exists.
F6 (Policies):
H0- There is no significance difference among various Age group of
employees regarding F6 (Policies).
H1- There is a significance difference amongst various Age group of
employees regarding F6 (Policies).
Here, p = 0.27, which is less than 0.05, we failed to accept null hypothesis. It
shows that there is a significance difference exists.
31
Figure 13 AGE TO REWARD
Interpretation:
In the above diagram, points plotted in the graph shows the level of acceptance in
different age group with respect to F1 that refers to Reward System which includes
salary, increment, incentives, delay in payment. It shows that mean value of age group
1(21 – 25 years) is between 10.5 to 11, mean value of age group between 2(26 – 30
years) is around 11 which is little bit higher to age group 1, mean value of age group
3(31 – 35 years) is between 12 – 12.5 which shows sudden increase in mean value that
states that this age group more positive than group 1 and 2, and mean value of age group
4(above 35 years) is between 13 – 13.5 which continues to increase than 3 age group.
This concludes that as the age increases there is people are more positive towards
organization’s Reward System.
32
Figure 14 AGE TO WORK LOAD
Interpretation:
In the above diagram, points plotted in the graph shows the level of acceptance in
different age group with respect to F2 that refers to Work Load/Hours which includes
higher targets, potential/expertise, multiple task, long working hours, heavy work. It
shows that mean value of age group 1(21 – 25 years) is between 16.5 to 17 which is
higher than the other age group, mean value of age group between 2(26 – 30 years) is
around 16.5 which is little bit lower to age group 1, mean value of age group 3(31 – 35
years) is 15 which shows sudden decrease in mean value that states that this age group
more negative than group 1 and 2, and mean value of age group 4(above 35 years) is
between 16 – 16.5 which again increases to the level of age group 1 and 2. This
concludes that the people of age group between 31 – 35 years are highly negative and
age group of 21 – 25 years are highly positive in terms of work load/hours.
33
Figure 15 AGE TO LEADERSHIP
Interpretation:
In the above diagram, points plotted in the graph shows the level of acceptance in
different age group with respect to F4 that refers to Leadership which includes value
addition, individual goals, improper communication, monitoring. It shows that mean
value of age group 1(21 – 25 years) is between 13.5 to 14 which is higher than the other
age group, mean value of age group between 2(26 – 30 years) is around 12.5 which is
shows a sudden decrease in mean value of age group 2 compare to age group 1, mean
value of age group 3(31 – 35 years) is around 12 which again shows decreases in mean
value that states that this age group more negative than group 1 and 2, and mean value
of age group 4(above 35 years) is 12 which is nearer to age group 1. This concludes
that the people of age group between 31 – 35 years and above 35 years are highly
negative and people of age group between 21 – 25 years are highly positive in terms of
Leadership factor.
34
Figure 16AGE TO POLICIES
Interpretation:
In the above diagram, points plotted in the graph shows the level of acceptance in
different age group with respect to F6 that refers to Policies which includes stress
management, holiday, transfer policy. It shows that mean value of age group 1(21 – 25
years) is 10 which is higher than the other age group, mean value of age group between
2(26 – 30 years) is around 9 which is shows a sudden decrease in mean value of age
group 2 compare to age group 1, mean value of age group 3(31 – 35 years) is between
8.5 – 9 which again shows decrease in mean value that states that this age group more
negative than group 1 and 2, and mean value of age group 4(above 35 years) is 12 which
is nearer to age group 1 which continues to decrease. This concludes that the people of
age group between 21 – 25 years are highly positive in terms of Policies rather than the
rest of the people of age group between 26 – 35 years and above.
35
Oneway
Table 9 ONEWAY
ANOVA
Sum of Df Mean F Sig.
Squares Square
OF1 Between 110.165 3 36.722 3.556 .015
Groups
Within 2551.046 247 10.328
Groups
Total 2661.211 250
OF6 Between 64.337 3 21.446 2.866 .037
Groups
Within 1848.556 247 7.484
Groups
Total 1912.892 250
F1 (Reward System):
H0- There is no significance difference amongst various groups of Total
Experience of employees regarding F1 (Reward System).
H1- There is a significance difference amongst various groups of Total
Experience of employees regarding F1 (Reward System).
Here, p = 0.015, which is less than 0.05, we failed to accept null hypothesis. It
shows that there is a significance difference exists.
F6 (Policies):
H0- There is no significance difference amongst various groups of Total
Experience of employees regarding F6 (Policies).
H1- There is a significance difference amongst various groups of Total
Experience of employees regarding F6 (Policies).
Here, p = 0.37, which is less than 0.05, we failed to accept null hypothesis. It
shows that there is a significance difference exists.
36
Means Plots
Interpretation:
In the above diagram, points plotted in the graph shows the level of acceptance in
different groups having experience with respect to F1 that refers to Reward System
which includes salary, increment, incentives, delay in payment. It shows that mean
value of group having experience of 1(Less than 1 year) is around 12, mean value of
group having experience of 2(1 – 3 years) suddenly decreases to 11 which is lower than
group 1, mean value of group having experience of 3(3 – 5 years) is between 11.5 – 12
which shows sudden increase in mean value, and mean value of group having
experience of 4(above 35 years) is between 12.5 – 13 which continues to increase than
3 age group. This concludes that except group 2 having experience of (1 – 3 years) are
highly negative regarding Reward System and rest of the groups having experience of
1(Less than 1 year), 2(1 – 3 years), and 3(3 – 5 years) are highly positive in respect to
Reward System.
37
Figure 18 EXPERIENCE TO POLICY
Interpretation:
In the above diagram, points plotted in the graph shows the level of acceptance in
different groups having experience with respect to F6 that refers to Policies which
includes stress management, holidays, transfer policy. It shows that mean value of
group having experience of 1(Less than 1 year) is between 10 – 10.5 which is higher
than the other groups, mean value of group having experience of 2(1 – 3 years) suddenly
decreases to 9 which is lower than group 1, mean value of group having experience of
3(3 – 5 years) is also around 9 which is nearer to group 2, and mean value of group
having experience of 4(above 5 years) is around 8.5 which again shows a significant
decrease in mean value. This concludes that except group 1 having experience of (Less
than 1 years) are highly positive regarding Policies and rest of the groups having
experience of 2(1 – 3 years), 3(3 – 5 years) and above(5years) are highly negative in
respect to Policies.
38
4.3 FINDINGS
The findings of this project are based on the different people working basically at
middle and lower level of IT companies in Ahmedabad.
On the above chart out of 251 respondents:
- The ratio of male respondents is 61.8% and the ratio of female respondents is
38.2%. So, this chart shows that there is high proportion of male respondents
than females.
- Percentage of respondents those who are earning below 20k per month is 19.5%,
35.1% of respondents are earning between 20-30k per month, 36.3% are earning
between 30-40k per month and 9.2% respondents above 40k per month.
- Reward System is a critical factor that is affecting different age group of people
in terms of the attrition and the level of satisfaction increases as the age
increases. The age group of above 35 years are highly positive towards
organization’s Reward System.
- Work Load/Hours factor is highly affecting amongst age group of people that
belongs to above 35 years and between 31 – 35 years are highly negative which
suggests that these age group of people are more likely to change current job
because of work load/hours and age group of 21 – 25 years are highly positive.
- Leadership Factor amongst age group people that lies between 31 – 35 years
and above 35 years are highly negative which states it is critical factor resulting
in attrition of employees and people of age group between 21 – 25 years are
highly positive.
- People from age group thatlies between 21 – 25 years are highly positive in
terms of Policies rather than the rest of the people of age group between 26 – 30
years, 31 – 35 years and above 35 years which states that except 21 – 25 years
age group of people rest of the other group are highly dissatisfied and affected
by policies which leads to attrition among employees.
39
In respect to different Experienced group:
- Policies amongst the people having different level of experienced group people,
the groupthat except group having experience of Less than 1 years are highly
positive regarding Policies and rest of the groups having experience of 1 – 3
years, 3 – 5 years and above 5 years are highly negative in respect to Policies.
40
CHAPTER – 5
IMPLEMENTATION PHASE
41
5.1 SOLUTIONS PROPOSED
42
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45
ANNEXTURE
A Survey on Factors Influencing Attrition Rate in IT Industry
1. Name: -
___________________________________________________________
2. Gender:
Male
Female
3. Age:
21 – 25 years 1
26 – 30years 2
31 – 35 years 3
Above 35 years 4
4. Email: ___________________________________________________
5. Current Organization: _______________________________________
6. Current Designation: _______________________________________
7. What is your income on monthly basis?
Below 10,000 1
10 k – 20 k 2
20 k – 30 k 3
30 k – 40 k 4
Above 40 k 5
8. For how many years have you been working in your current
organisation?
Less than 1 year 1
1 – 3 years 2
3 – 5 years 3
Above 5 years 4
46
1 – 3 years 2
3 – 5 years 3
Above 5 years 4
Organisational Factors:
10. Rank the following factors from 1 – 5 (implying least significant to
most significant), in order of their importance for being remain in an
organization for longer time.
11. Please indicate the extent to which you agree on following statements
that can be a reason of employees to stay and work in an organization:
47
Work Load and Hours 1 2 3 4 5
Work Environment 1 2 3 4 5
13. Please indicate the extent to which you agree with following
statement:
Policies 1 2 3 4 5
48
14. Please indicate the extent to which you agree with the following
statement:
Work Load 1 2 3 4 5
49
16. How far you think HR can contribute towards tackling the attrition rate
give suggestion?
___________________________________________________________
___________________________________________________________
___________________________________________________________
______________
50