‘EMPLOYEE ATTRITION’
At
Submitted By: Chandan Priyadarshi
“If employees are to be products,their shelf-lives are getting shorter”
Attrition: "A reduction in the number of employees through retirement, resignation, death or because of some other reason it can be personal or organizational“
Defining Attrition rate: “The rate of shrinkage in size or number"
Reasons for Employee Attrition
Organizational mattersWorking environmentJob mattersSalary and other benefitsPoachingEmployee’s advocate Performance reviewPersonal reasons
Common methodology in calculating Attrition Rate
Total Number of Resigns per month (Whether voluntary or forced) X 100-----------------------------------------------------------------------------------------
(Total Number of employees at the beginning of the month + total number of new joinees - total number of resignations)
Total Terminations in a month------------------------------------------------------------------------------------- (Total Head Count at the beginning of the month) + (Total New Hires)
Total No. of employee left X 100-------------------------------------------
Total No .Of employees present
Number of employee separations-involuntary separations X 100-------------------------------------------------------------------------------------
*Average employee count (*Avg. employee count = January month strength + December month strength)
Costs of TurnoverAdministration & Sourcing costs
Process Administration Resignation Administration Recruitment Administration
Sourcing Costs: Agency expenses Advertising costs
Interview Costs: Interview Testing Travel
Cost of New Hire
Induction Administration Induction Fixed Costs Induction Training Relocation Expenses
Lost productivity
Excluded costs Employee Demoralization Impaired Quality of Service Turnover reason & cost impact
Dysfunctional and avoidable turnover
Handling attrition
Innovative HR practices :Providing stimulating work environmentFree transport and free foodGood rewards and recognition programsRecreation clubs, Canteens, Entertain programs , fun activities
within the work areaGood pay and benefitsOther practices include
- Promotions and salary increase on a regular basis- Better learning opportunities, Encourage enroll for distance learning programs- Regular holiday packages, gifts, outings etc
How to save high attrition rates?
How much would you invest to keep your employees focused and happy?
People are not easily replacedDrivers of Turnover
Drivers of TurnoverResearch shows the reasons for employee departures are (in descending order)
1.Employee/manager relationship2.Inability to use core skills3.Not able to impact the organization's goals, mission4.Frequent reorganizations; lack of control over career5.Inability to grow and develop6.Employee/organization values misalignment7.Lack of resources to do the job8.Unclear expectations9.Lack of flexibility; no ‘Work life balance'10.Salary/benefits
How to curb attrition?Money is not everythingVision and objectivesTreat employees like CustomersFiringConsider feedbackSpend Time Developing and Benchmarking IncentivesSubsidize Education and CertificationChange LocationsRotate EmployeesCombat Poaching by Encouraging ReferralsSpend More Time RecruitingAre Your Employees Satisfied? – RETENTION!!!
Consequences of Attrition
•The Brighter Side of Attrition
Commonly Used Techniques in the Industry
SurveysExit Interviews
Research Methodology
Objective:To study ‘Employee Attrition’ at Mahindra Finance
Scope:To study attrition rate in the financial year 2009-10By collecting, studying and analyzing the data from the
Exit Interview Form
Research Method used:Exit Interview method
Mahindra & Mahindra
Mr. Keshubh MahindraChairman
Mr. Anand MahindraVice-Chairman
Mahindra & Mahindra in various sectors
AutomotiveFarm-equipmentFinancial servicesSys-techAfter-marketInformation TechnologyInfrastructure developmentTrade, retail & logistic
Strength
In depth knowledge of the rural and semi-urban market
The relationship with Mahindra and Mahindra
The branch networkThe association with dealersThe client baseThe ability to borrow at cheaper
rates
Loans Provided
Utility vehicle loansTractor loans Car loansTwo-wheeler loansRefinanceCommercial vehicle loanInvestment advisory services- Mutual funds distributionPersonal loans
Levels at Mahindra FinanceExisting Grades
Revised Grades Bands Revised Designation
L1 L1-SBStrategic Band
Executive Vice President
L2L2-SB Sr. Vice President
L2-EBExecutive Band
Vice President
L3L3-EB Senior General Manager
L3-DH
Departmental Head
General Manager/Head
L4 L4-DH Dy General Manager
L5L5-DH Dy General Manager
L5-MB
Managerial Band
Senior Manager
L6 L6-MB Manager
L7L7-MB Manager
L7-OB
Operational Bands
Dy Manager
L8 L8-OB Asst Manager/Secretary
L9 L9-OB Executive/Secretary
L10 L10-OB Officer/Secretary
Competitor: Shriram Transport Finance Company Limited (STFC)
Area of operation - All IndiaBranch Offices - 482Employees - 12196Customers - 1.4 millionAgency Force- 15,000 plus Resident Representatives -1300Funds Managed (as at 31st March 09) - Rs.23281.11 crores ($4.95
billion)Net worth (as at 31st March 09) - Rs.2316.61 crores ($492 million)
Main ProductsCommercial Vehicle
FinancePassenger Commercial
Vehicle FinanceMulti Utility Vehicle
FinanceThree wheeler FinanceTractor FinanceConstruction Equipment
Finance
Competitor: Shriram Transport Finance Company Limited (STFC)
Other ProductsTyre LoanEngine Replacement LoanWorking Capital LoanCo-Branded Credit CardFreight bill discounting
Employee Attrition at Mahindra Finance
Employee Attrition at Mahindra Finance in the previous financial year 2009-10
Employee Attrition at Mahindra Finance in the previous financial year 2009-10
Employee Attrition at Mahindra Finance in the previous financial year 2009-10
Employee Attrition at Mahindra Finance in the previous financial year 2009-10
Employee Attrition at Mahindra Finance in the previous financial year 2009-10
Employee Attrition at Mahindra Finance in the previous financial year 2009-10
Employee Attrition at Mahindra Finance in the previous financial year 2009-10
Employee Attrition at Mahindra Finance in the previous financial year 2009-10
Employee Attrition at Mahindra Finance in the previous financial year 2009-10
Employee Attrition at Mahindra Finance in the previous financial year 2009-10
Employee Attrition at Mahindra Finance in the previous financial year 2009-10
Employee Attrition at Mahindra Finance in the previous financial year 2009-10
Employee Attrition at Mahindra Finance in the previous financial year 2009-10
Employee Attrition at Mahindra Finance in the previous financial year
2009-10
For Better Prospects 398Personal 280Non Performance 180Terminated 92Integrity 61Not Reporting 55Transfer 39Health Issue 33Work Pressure 28Higher Studies 20Family Issue 18RBMI 17Eligibility Criteria 13Revoked 10Job Profile 9Compensation 5 Death Case 4Work Culture 4Own Business 3DRONA Failed 2Appraisal 1 Business Closed 1Retained 1
Employee Retention
Awareness of existing opportunitiesInternal Job PostingCareer counselingPerformance AppraisalsTraining Need AnalysisCareer enhancement programs