INDEX

CHAPTE TABLE OF CONTENTS Pg.No.

R
I INTRODUCTION 4

II RESEARCH METHODOLOGY 6

III LITERATURE REVIEW 12

IV EMPLOYEE TURNOVER 14

4.1) Types Of Employee Turnover 14

4.2) Causes Of High And Low Turnover 16

4.3) Calculation Of Turnover Ratio 19

4.4) Measures To Reduce Turnover 21

V WIPRO TECHNOLOGY LTD. 24

5.1) SWOT Analysis 27

5.2) Causes Of Employees Turnover In WIPRO 29

VI INFOSYS LTD. 32

6.1) SWOT ANALYSIS 33

6.2) CAUSES OF EMPLOYEES TURNOVER IN 34

INFOSYS

VII EFFECT OF EMPLOYEES TURNOVER 37

VIII MEASURES TO IMPROVE EMPLOYEES 44

RETENTION

IX EMPLOYEES RETENTION STRATEGIES 47

1
X STEPS TAKEN TO REDUCE EMPLOYEES 51
TURNOVER

XI COMPARATIVE ANALYSIS 54

DATA ANALYSIS AND INTERPRETATION 57

FINDINGS 66

RECOMMENDATIONS 68

CASE STUDIES & ARTICLES 69

CONCLUSION 74

QUESTIONNAIRE 75

REFERENCES 78

2
 CHAPTER 1

INTRODUCTION

All businesses, large and small, have some way of keeping track of their finances. Businesses are
constantly looking for more ways to keep expenses low. One factor that is often overlooked,
however, is the cost of employee turnover. High employee turnover can cost a company more
than they might realize in the long run.

This report explains some causes of high employee turnover, who it affects the most, and ways
companies can decrease employee turnover in order to cut hidden costs.

3
Employee turnover occurs when employees voluntarily leave their jobs and must be replaced.
Turnover is expressed as an annual percentage of the total workforce. 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 or a merger with another company.

The severity of turnover varies widely by type of business and the economic health of the region
where companies are located. Innovative high-tech companies and the most successful
manufacturers frequently experience low turnover rates while fast-food restaurant managers
expect turnover to be as high as 50 to 75 percent. As another example, coal mining companies in
sparsely populated regions experience lower rates of turnover because there are few other job
opportunities.

4
 CHAPTER 2

RESEARCH METHODLOGY
2.1 Research objectives

a) To identify the rate of turnover of ―employees‖

b) To identify the causes of employees turnover

c) To suggest measures to reduce the rate of turnover

d) To identify the employee turnover at various IT companies with special focus on Wipro
and Infosys

5
4.1 RESEARCH DESIGN

“A research design is the arrangement of conditions for collection and analysis data in a
manner that aims to combine relevance to the researcher purpose with economy in procedure”.

It constitutes the blueprint for the collection, measurement and analysis of data. As such
the design includes an outline of what the researcher will do form writing the hypothesis and its
operational implication to the final analysis of data.

More explicitly, the design decisions happen to be in respect of;

 What is the study about?

 Why is the study being made?

 Where will the study be carried out?

 What type of data is required?

 Where can the data are found?

 What periods of time will the study include?

 What will be the sample design?

 How will the data be analyzed?

 In what style will the report be prepared?

 What techniques of data collection will be used?

The Research Design undertaken for the study is Descriptive one. A study, which
wants to portray the characteristics of a group or individuals or situation, is known as Descriptive
study. It is mostly qualitative in nature.

4.2 TYPES OF DATA COLLECTED

 Primary Data

6
 Questionnaires are prepared and personal interview was conducted. Most of the
questions are consist of multiple choices. The structured interview method was undertaken. The
interview was conducted in English as well as in Telugu. Proper care was taken to frame the
interview schedule in such a manner it should be easily understood in view of educational level
of the employees. Generally 25 questions are prepared and asked to the employees.

 Secondary Data

Secondary data was collected from Internets, various books, Journals, and Company
Records.

4.3 QUESTIONNAIRE CONSTRUCTION

Questionnaires were constructed based on the following types

 Open ended questions

 Close ended questions

 Multiple choice questions

4.5 SAMPLING PLAN

A sampling plan is a definite design for obtaining a sample from the sampling frame. It
refers to the technique or the procedure the researcher would adopt in selecting some sampling
units from which inferences about the population is drawn. Sampling design is determined before
any data are collected.

Selective Sampling technique was adopted. In this method the researcher select those
units of the population in the sample, which appear convenient to him or the management of the
organization where he is conducting research.

4.6 SAMPLE SIZE

7
 Nearly 100 samples are taken in WIPRO& INFOSYS

4.9 DESCRIPTION OF STATISTICAL TOOLS USED

 Percentage method
 Chi-square test

4.9.1 PERCENTAGE METHOD

In this project Percentage method test was used. The percentage method is used to know the
accurate percentages of the data we took, it is easy to graph out through the percentages. The following
are the formula

No of Respondent
Percentage of Respondent = x 100
Total no. of Respondents
From the above formula, we can get percentages of the data given by the respondents.

4.9.2 CHI-SQUARE TEST

In this project chi-square test was used. This is an analysis of technique which analyzed
the stated data in the project. It analysis the assumed data and calculated in the study. The Chi-
square test is an important test amongst the several tests of significant developed by statistical.
Chi-square, symbolically written as x2 (Pronounce as Ki-Spare), is a statistical measure used in
the context of sampling analysis for comparing a variance to a theoretical variance.

Formula
(O-E) 2

2=

8
O = Observed frequency

E = Expected frequency

NEED FOR THE STUDY

 The success of any manufacturing organization depends largely on the workers, the
employees are considered as the backbone of Pondicherry Polymers Private Ltd.

 The attrition rate of the company is 11.4%. So this study focused on why the Attrition
occurs and the possible ways to reduce it.

 The study was mainly undertaken to identify the level of employee’s attitude, the
dissatisfaction factors they face in the organization and for what reason they prefer to
change their job. Once the levels of Employee’s 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 asses the
overall interest and the feelings of the employees towards their nature of job and
organization.

9
 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 organization’s 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.

10
 CHAPTER 3

LITRETURE REVIEW

Review of literature on Employee Turnover:

1. William H. Price & Richard Kiekbusch & John Theis in his study on causes of employees
turnover have talked about the causes and the implementation. Further he highlighted that
providing a challenging job, and offering realistic promotion opportunities. Other variables
that have less impact are schedule input, insurance and family income. Good communication
and job satisfaction.
11
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, workload and work schedules which are also common
concerns to both groups. In addition, career development, promotion and 4appreciation of
contribution were important retention factors, while a supportive professional environment,
reduction in workload and working hours and more flexible work patterns were important to
consultants.

3. Cari McLean, Labour Management in Agriculture, in her study knowing the 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 .

12
 CHAPTER 4

WHAT IS EMPLOYEE TURNOVER?

Employee turnover is technically and mathematically defined as ―the ratio of the number of
workers that had to be replaced in a given time period to the average number of workers.‖ Put
simply, it is an instance when an employee leaves their position at their workplace and needs to
be replaced.

Employee turnover is a ratio comparison of the number of employees a company must replace in
a given time period to the average number of total employees. A huge concern to most
companies, employee turnover is a costly expense especially in lower paying job roles, for which
the employee turnover rate is highest. Many factors play a role in the employee turnover rate of
any company, and these can stem from both the employer and the employees. Wages, company
13
benefits, employee attendance, and job performance are all factors that play a significant role in
employee turnover.

In a human resources context, turnover or labor turnover is the rate at which an employer gains
and losses employees. Simple ways to describe it are "how long employees tend to stay" or "the
rate of traffic through the revolving door." Turnover is measured for individual companies and
for their industry as a whole. If an employer is said to have a high turnover relative to its
competitors, it means that employees of that company have a shorter average tenure than those of
other companies in the same industry. High turnover can be harmful to a company's productivity
if skilled workers are often leaving and the worker population contains a high percentage of
novice workers
4.1Types of Employees Turnover

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 a new position with the same organization.
Both positive (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 be as important to monitor as its external counterpart. Internal turnover might be
moderated and controlled by typical HR mechanisms, such as an internal recruitment policy or
formal succession planning.

2. Skilled vs. unskilled employees

Unskilled positions 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 favour the employer and lead to increased turnover as
employees seek, and eventually find, more favorable employment.
However, high turnover rates of skilled professionals can pose as a risk to the business or
organization, due to the human capital (such as skills, training, and knowledge) lost. Notably,
given the natural specialization of skilled professionals, these employees are likely to be re-
14
employed within the same industry by a competitor. Therefore, turnover of these individuals
incurs both replacement costs to the organization, as well as resulting in a competitive
disadvantage to the business.

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 the company is trying to cut costs, or the
employee 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 school

2.3 starting a family

2.4 taking care of an elderly relative

2.5 general job dissatisfaction such as low pay, lack of benefits, or poor management

4.2Causes of Employee Turnover

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

1. pay is too low

15
 2. lack of benefits

3. tasks are too repetitive

4. Circumstances listed above such as family, school, or moving.

5. poor management

6. lack of advancement

7. burnout

8. Compensation package differences Job and employee skill mismatch: the job may be less
or more satisfying and challenging according o the employee.

9. Inferior facilities, tools, etc

10. Less recognition

11. Less or no appreciation for work done

12. Less growth opportunities

13. Poor training

14. Poor supervision

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:-
16
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 workers report leaving one
job for another that pays only 50 cents an hour more. Obviously, in a better economy the
availability of alternative jobs plays a role in turnover, but this tends to be overstated in
exit interviews.

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 factors, 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 job 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.

6. Demographics - empirical studies have demonstrated that turnover is associated in

particular situations with demographic and biographical characteristics of workers. But to
use lifestyle factors (e.g. smoking) or past employment history (e.g. many job changes) as
an explicit basis for screening applicants, it is important for legality and fairness to job
17
 applicants to verify such biodata empirically.

Causes of High and low employee turnover

High turnover often means that employees are unhappy with the work or compensation, but it
can also indicate unsafe or unhealthy 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.

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 sometimes differ than those of high turnover. Aside from the fore-mentioned career
opportunities, salary, corporate culture, management's recognition, 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.

18
 3. More staffing flexibility.

4. Facilitate change and innovation.

4.3 HOW TO CALCULATE THE TURNOVER RATIO

Step 1. 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 the period. Then dividing
by 2 to arrive at the average number of employees.

For example: At the start of the year the firm employed 1000 people. At the end of the 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.

Step 2. Calculate the number of departures during the period The key here is to make sure that
we only include those departures that are actually relevant. That means those that come within
the definition we are using. So for the definitions we are using in this example the relevant
figures are: Total number of exits = 220 Voluntary = 110 Early = 55

Step 3. Divide departures by number of employees to arrive at our final figures, we divide the
number of relevant departures by the average number of employees. Then multiply by 100 to get
the percentage rate. For total turnover we have: 220 / 1100 (x 100) = 20% for voluntary turnover
we have: 110/1100 (x100) = 10% for early turnover we have: 55/1100 (x100) = 5% Calculating
Employee Turnover.

However, please keep in mind that there are a number of complications:

Let's say there were 100 employees at the beginning of the year, and 100 employees at the end of
the year, and at the end of the year, 84 of those employees were the same ones as were there the
previous year. You might say that the turnover rate was 16%.
19
But suppose one of those 16 who left was actually replaced three times. The employee quit in
January, the replacement quit in April, and another person was hired who lasted only until
November. Then you might want to count every time an employee left the company and another
one was hired - in this case you'd get 18%.

Another complication: suppose the work force is 100 at the beginning and 90 at the end of the
year. Perhaps 16 people have left, but only 6 have been hired during the year, while 2 more were
hired and retired within the same year. You might define turnover as 18/100 or as 18/90, or as
18/95, since 95 is the average of 90 and 100. Instead of 95, you might want to do a fancier
average, where you actually add up the number of employees on each day of the year, and divide
the total by 365.

One more complication: who decided it was a calendar year that we should use for sampling the
turnover rate? Perhaps there was no turnover at all for 3 years prior, and then a shift in
management caused a lot of people to leave this year. Then a more representative measure would
average over 2 or 3 or 4 years. Maybe you'd want to average the turnover in each month of the
last 48, but weight recent months more heavily than earlier months.

Measures to Reduce the Rate of Turnover

1. Benefits. Offering employees an affordable medical, dental, and vision package in this
day and age is a great way to keep employees happy. Healthy employees are happy
employees, and being able to provide affordable health care for their spouses and families
as well is something every company should offer.

2. An added bonus could be vacation time, sick leave. On-site child care would be
extremely helpful for parents who have to work long or late hours—especially single
parents.

3. Higher pay. Giving employees regular raises and paying well over minimum wage
20
 would be an incentive for them to stay.

4. A set schedule. In food service and retail, and most service industries as well as health
care, employees are forced to work six or more—even up to ten days in a row without a
day off. Days off may even be split up, so the employees never really get a chance to rest.
Giving them the opportunity to choose which days off they want, or at least giving them
two in a row and not working them more than five, would be extremely beneficial in
employee retention. This would also increase productivity and would be beneficial to the
company.
5. 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. Cross-training should be done,
especially in food service and retail, in order to avoid burnout.

6. A positive attitude from superiors. Most employees don’t like negativity from their
superiors. Instead of always being told what they’re doing wrong, they need positive
reinforcement as well as constructive criticism. Managers and supervisors should always
have a positive attitude toward their employees and never insult, criticize, or berate them.

Proper training for management. Managers should be trained 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 agreement and consistent with company
policies. Managers should be trained to treat their employees with respect, because without those
employees, the business could not operate

21
CHAPTER 5

22
 INTRODUCTION to WIPRO

Wipro Technologies Limited is a multinational

information technology services corporation headquartered in
Bangalore, India. Wipro is the third-largest IT services company in India and employs more than
98,391 people worldwide as of 2009.It has interests varying from information technology,
consumer care, lighting, engineering and healthcare businesses. Azim Premji is the Chairman
of the board.

Wipro (largely an acronym of "Western India Products") started as a vegetable oil trading
company in 1947 from an old mill at Amalner, Maharashtra, India founded by Azim Premji's
father. When his father died in 1966 Azim, a graduate in Electrical Engineering from Stanford
University, took on the leadersh Timeline

1945 - Incorporation as Western India Vegetable Products Limited

1947 - Establishment of an oil mill at Amalner, Maharashtra, India

1960 - Manufacture of laundry soap 787 at Amalner

1970 - Manufacture of Bakery Shortening Vanaspati at Amalner

1975 - Diversification into engineering and manufacture of hydraulic cylinders as WINTROL

23
(now called Wipro Fluid Power) division in Bangalore.

1977 - Name of the Company changed to Wipro Products Limited

1980 - Diversification into Information Technology

1990 - Incorporation of Wipro-GE medical systems

1992 - Going global with global IT services division

1993 - Business innovation award for offshore development

1995 - Wipro gets ISO 9001 quality certification

1997 - Wipro gets SEI CMM level 3 certification, enterprise wide processes

Start of the Six Sigma initiative, defects prevention practices initiated at project level.

1998 - Wipro first software services company in the world to get SEI CMM level 5

1999 - Wipro's market capitalization is the highest in India

2000 - Start of the Six Sigma initiative, defects prevention practices initiated at project level.
Wipro listed on New York Stock Exchange.

2001 - First Indian company to achieve the "TL9000 certification" for industry specific quality
standards

Wipro acquires American Management Systems’ global energy practice.

Becomes world's first PCMM Level 5 Company.

24
Premji established Azim Premji Foundation, a not-for-profit organization for elementary
education.

Wipro becomes only Indian company featured in Business Week’s 100 best-performing
technology companies.

2002 -Wipro acquires Spectra mind.

Ranked the 7th software services company in the world by Business Week (InfoTech 100,
November 2002).

2003 -Wipro acquires Nerve. Wipro Technologies Wins Prestigious IEEE Award for
Software Process Excellence. Wipro Technologies awarded prestigious ITSMA award for
services marketing excellence . Wipro wins the 2003 Asian Most Admired Knowledge
Enterprise Award.

2004 -Crossed the $1 Billion mark in annualized revenues.

Wipro launches India’s first RFID enabled apparel store.

Wipro Technologies named Asian Most Admired Knowledge Enterprise second year in a row
IDC rates Wipro as the leader among worldwide offshore service providers

2005 - Wipro acquires mPower to enter payments space and also acquires European System on
Chip (SoC) design firm New Logic

2006 - Wipro acquires Enabler to enter Niche Retail market

2007 - Wipro acquires US's Info crossing for 600mn

25
2008 - Wipro acquires Gallagher Financial Systems to enter mortgage loan origination space.

2009 -Wipro stops Connectivity IP and closes New Logic Sophia-Antipolis R&D center Wipro
Technologies deals in following businesses.

5.1 SWOT Analysis of WIPRO TECHNOLOGY Ltd.

1. Strengths

1.1 Skilled manpower

1.2 Diversified skill base across service line

1.3 delivery capabilities & client satisfaction

1.4 Multi domestic market philosophy

1.5 Commitment to go the extra mile

1.6 Research and Development

1.7 Technological partnership with other software companies

1.8 Low cost advantage

1.9 Ability to continually reduce the cost of service s

2. Weakness

1.1 Not a proactive company

26
 1.2 Domestic market was huge but was underdeveloped

1.3 Small player in global market

1.4 No exposure to standard work

1.5 Limited domain

1.6 Wipro provided very limited number of services. Also Standard international
quality practices like Six Sigma and CMMI are not in place

1.7 Clients not trusting the capabilities of Indian Software Cos.

3. Opportunities

1.1 Huge global market

1.2 The Company has entered into the global market so now it’s the biggest
opportunity available to the company.

1.3 Huge Potential in Domestic Market

1.4 Y2K Crisis

4. Threats

1.1 Competition by Indian companies in domestic market

1.2 Presence of big companies in global market

27
 1.3 Exchange rate

This can be a threat to the company as the company is making profits due to the high exchange
rate and if this rate comes down in future it can lead to a major problem for the company
5.2 CAUSES OF EMPLOYEE TURNOVER IN WIPRO TECH LTD

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

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 factors, 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 job 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.
28
6. Demographics - empirical studies have demonstrated that turnover is associated in
particular situations with demographic and biographical characteristics of workers. But to
use lifestyle factors (e.g. smoking) or past employment history (e.g. many job changes) as
an explicit basis for screening applicants, it is important for legality and fairness to job
applicants to verify such bio-data empirically.

29
CHAPTER 6

30
 INTRODUCTION to INFOSYS

Infosys is a Bangalore based company started in 1981 has around 5,500

employees. The highest rated script on the Indian bourses - Infosys is the most admired company
on the BSE. It is the face of the Indian software industry. The company was the first in India to
register on the American stock exchange - NASDAQ with an issue of two million American
depository shares (ADR) that raised $70 million.
As a part of Infosys globalization efforts the company has set up a global development
centre in Toronto. It also established two proximity centres at Freemont, California and Boston,
Massachusetts. Infosys continues to expand in Europe. In India the development centre are to be
opened at Mohali, Mangalore, Mysore, Hyderabad, Pune, Chennai and Bhubhaneshwar. The
companies top clients include Nordstrom, Nortel and Goldman Sachs. Capital One Services Inc.,
one of the largest issuers of credit cards, is a new addition to the company's clientele. The
company has pioneered the Employee stock option plan (ESOP) in India. The company has
grown spectacularly with soaring profit margins that stood at Rs.285 crore, up from 132 crore in
1998-99(courtesy Computers Today). Amongst its major products are the banking software
popularly known as Finnacle, Banc2000 and Bank Away.
The company was also judged as the 5th best managed company in Asia. The company's
Chairman Mr.N.R.Narayan Murthy was selected as one of the 50 most powerful people in Asia
for the year 2000 in a poll conducted by Asia week.
The company provides 3 month training to the new recruits in Bangalore. There is also a
service agreement for a year. The pay package is around Rs.17, 000(approx.) for the year 2000
recruits

31
6.1 SWOT Analysis of INFOSYS Ltd.

1. STRENGTHS:-

1.1 The company has bases in 44 global development centers most of which are located in
India, although the company has offices in many developed and developing nations. This
means INFOSYS becoming a global brand but also it has the capacity to support
operations of multinationals clients

1.2 INFOSYS has a strong financial position. It has the capital to expand and also the basis to
leverage potential.

2. WEAKNESSES:-

1.1 INFOSYS on struggles in the US market and has the particular problem in securing
United State Fedral Govt. contract in North America since these contract are highly
profitable and tend to learn for a long period of time. INFOSYS is missing out on
lucrative business added to this is the fact that its competitors do well in the term of
securing the same fedral business.

1.2 Despite being a huge IT companies INFOSYS is much smaller than its global
competitors. As a discussed above, Infosys generate $4billion in 2008 which is
comparatively very low to the other IT companies.

3. OPPORTUNITY:-

1.1 There is a new and emerging market in China as the country undergoes a huge industrial
revolution
1.2 The strategic alliance between INFOSYS & SCHLUMBERGER gives the IT company
access to lucrative business in the oil and gas industries.
At the time of the recession in the global economy it may appear that some companies will
32
 reduce take up of services that INFOSYS offers. However in tough times client tend to focus
upon cost reduction and outsourcing, so hard times could be profitable for INFOSYS.

4. THREATS:-

1.1 Consumer may switch to other offshore service companies in other countries such as
China or Korea.
Other global have to compete for skilled labor and this may have the effect of driving up
wage levels, and making it more difficult to recruit & retain a staff.

1.2 India is not only the country that is going the rapid industrial expansion. Competitors
may come from the other countries like such as China or Korea where there are a large
pools low cost labor, and developing educational infrastructures such as Universities and
technology colleges.

6.2 CAUSES OF EMPLOYEE TURNOVER IN INFOSYS

Most environmental contributors to turnover can be directly traced to management practices.

Turnover tends to be higher in environments where employees feel they are taken advantage of,
where they feel undervalued or ignored, and where they feel helpless or unimportant. Clearly, if
managers are impersonal, arbitrary, and demanding, there is greater risk of alienation and
turnover. Management policies can also affect the environment in basic ways such as whether
employee benefits and incentives appear generous or stingy, or whether the company is
responsive to employees' needs and wants. Management's handling of major corporate events
such as mergers or layoffs is also an important influence on the work environment afterwards.

Some turnover is demographically specific, particularly for women who are balancing significant
work and family duties at the same time. Such women (or men) may choose to leave a company
instead of sacrificing their other interests and responsibilities in order to make the job work out.
Some women elect to quit their jobs at childbirth, rather than simply taking a maternity leave.
Women's perceptions of their career paths might also be tinted by their awareness of the glass
33
ceiling, which may lower their level of commitment to any particular firm, since they believe
they're not in contention for top-level jobs. These factors translate into higher turnover rates for
women in many companies.
Retirement of experienced employees can cause high rates of turnover and extreme loss in
productivity.

34
 CHAPTER 7

EFFECT OF EMPLOYEES TURNOVER

High turnover can be a serious obstacle to productivity, quality, and profitability at firms
of all sizes. For the smallest of companies, a high turnover rate can mean that simply having
enough staff to fulfill daily functions is a challenge, even beyond the issue of how well the work
35
is done when staff is available. Turnover is no less a problem for major companies, which often
spend millions of dollars a year on turnover-related costs. For service-oriented professions, such
as management consulting or account management, high employee turnover can also lead to
customer dissatisfaction and turnover, as clients feel little attachment to a revolving contact.
Customers are also likely to experience dips in the quality of service each time their
representative changes.

In general, reducing employee turnover saves money. Money saved from not having to find and
train replacement workers can be used elsewhere, including the bottom line of the company's
profit statement

Some research studies have found that turnover from transient workers has lasting effects on
loyal employees who stay with a company. One study tested productivity among workers who
were exposed to a management-planted person who quit in the middle of a task, citing
dissatisfaction with the job and the company. A second group of employees worked with another
planted person who had to leave the task because of illness. The group exposed to the employee
who quit had lower productivity levels than the group exposed to the ill employee. The
employees apparently took the complainer's statements to heart while the ill employee had
nothing bad to say about the company. Employee turnover is defined as employees who
voluntarily leave their jobs and must then be replaced. Turnover is shown as an annual
percentage, so if 25 people leave a company with 100 people, that is 25 percent turnover a year.
Employees often leave companies for higher pay elsewhere, but many other factors contribute as
well, and the negative effects of employee turnover should motivate managers to increase
retention

1. Hiring Process
A study published in "Entrepreneur" magazine in 2001 looked at the effects of hotel employee
turnover and discovered the high price of recruiting, interviewing and hiring new workers, in
addition to lost productivity (see Resources).
2. Actual Cost
The U.S. Department of Labor estimates that it costs about 33 percent of a new employee's salary
36
to replace the worker who left. This means major companies can spend millions of dollars a year
on turnover costs.
3. Lack of Staff
High turnover rates can create a lack of staff to complete essential daily functions of a company.
This can result in overworked, frustrated employees and dissatisfied customers.
4. Loss of Productivity
New employees take some time to get up to speed, particularly in complex jobs.
5. Customer Dissatisfaction
For service-oriented careers such as account management and customer service, high turnover
can lead to customer dissatisfaction. Newer representatives lack expertise and knowledge, and
customers have.

COSTS DUE TO A PERSON LEAVING

1. Recruitment Costs
1. The cost of advertisements (from a $200.00 classified to a $5,000.00 or more display
advertisement); agency costs at 20 - 30% of annual compensation; employee referral
costs of $500.00 - $2,000.00 or more; internet posting costs of $300.00 - $500.00 per
listing.

2. The cost of the internal recruiter's time to understand the position requirements, develop
and implement a sourcing strategy, review candidates backgrounds, prepare for
interviews, conduct interviews, prepare candidate assessments, conduct reference checks,
make the employment offer and notify unsuccessful candidates. This can range from a
minimum of 30 hours to over 100 hours per position.

3. Calculate the cost of a recruiter's assistant who will spend 20 or more hours in basic level
review of resumes, developing candidate interview schedules and making any travel
arrangements for out of town candidates.

4. The cost of the hiring department (immediate supervisor, next level manager, peers and
other people on the selection list) time to review and explain position requirements,
37
 review candidates background, conduct interviews, discuss their assessments and select a
finalist. Also include their time to do their own sourcing of candidates from networks,
contacts and other referrals. This can take upwards of 100 hours of total time.

5. Calculate the administrative cost of handling, processing and responding to the average
number of resumes considered for each opening at $1.50 per resume.

6. Calculate the number of hours spend by the internal recruiter interviewing internal
candidates along with the cost of those internal candidates to be away from their jobs
while interviewing.

7. Calculate the cost of drug screens, educational and criminal background checks and
other reference checks, especially if these tasks are outsourced. Don't forget to calculate
the number of times these are done per open position as some companies conduct this
process for the final 2 or 3 candidates.

Calculate the cost of the various candidate pre-employment tests to help assess candidates' skills,
abilities, aptitude, attitude, values and behaviors.

2. Training Costs

1. Calculate the cost of orientation in terms of the new person's salary and the cost of the
person who conducts the orientation. Also include the cost of orientation materials.

2. Calculate the cost of departmental training as the actual development and delivery cost
plus the cost of the salary of the new employee. Note that the cost will be significantly
higher for some positions such as sales representatives and call center agents who require
4 - 6 weeks or more of classroom training.

3. Calculate the cost of the person who conduct the training.

38
 4. Calculate the cost of various training materials needed including company or product
manuals, computer or other technology equipment used in the delivery of training.

5. Calculate the cost of supervisory time spent in assigning, explaining and reviewing work
assignments and output. This represents lost productivity of the supervisor. Consider the
amount of time spent at 7 hours per week for at least 8 weeks.

3. Lost Productivity Costs

As the new employee is learning the new job, the company policies and practices, etc. they are
not fully productive. Use the following guidelines to calculate the cost of this lost productivity:

1. Upon completion of whatever training is provided, the employee is contributing at a 25%

productivity level for the first 2 - 4 weeks. The cost therefore is 75% of the new
employees’ full salary during that time period.

2. During weeks 5 - 12, the employee is contributing at a 50% productivity level. The cost is
therefore 50% of full salary during that time period.

3. During weeks 13 - 20, the employee is contributing at a 75% productivity level. The cost
is therefore 25% of full salary during that timeperiod.

4. Calculate the cost of coworkers and supervisory lost productivity due to their time spent
5. Calculate the cost of mistakes the new employee makes during this elongated
indoctrination period.

6. Calculate the cost of lost department productivity caused by a departing member of

management who is no longer available to guide and direct the remaining staff.

7. Calculate the impact cost on the completion or delivery of a critical project where the
departing employee is a key participant.
39
 8. Calculate the cost of reduced productivity of a manager or director who looses a key staff
member, such as an assistant, who handled a great deal of routine, administrative tasks
that the manager will now have to handle.

4. New Hire Costs

1. Calculate the cost of bring the new person on board including the cost to put the person
on the payroll, establish computer and security passwords and identification cards,
business cards, internal and external publicity announcements, telephone hookups, cost of
establishing email accounts, costs of establishing credit card accounts, or leasing other
equipment such as cell phones, automobiles, pagers.

2. Calculate the cost of a manager's time spent developing trust and building confidence in
the new employee's work.

5. Lost Sales Costs

1. For sales staff, divide the budgeted revenue per sales territory into weekly amounts and
multiply that amount for each week the territory is vacant, including training time. Also
use the lost productivity calculations above to calculate the lost sales until the sales
representative is fully productive. Can also be used for telemarketing and inside sales
representatives.

2. For non-sales staff, calculate the revenue per employee by dividing total company
revenue by the average number of employees in a given year. Whether an employee
contributes directly or indirectly to the generation of revenue, their purpose is to provide
some defined set of responsibilities that are necessary to the generation of revenue.
Calculate the lost revenue by multiplying the number of weeks the position is vacant by the
average weekly revenue per employee.

40
41
 CHAPTER 8

Measures To Improve Employee Retention

It is worth considering the following elements, all of which have been shown to play a positive
role in improving 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
present employers with increasing opportunities to familiarize potential candidates with
the organization before they accept a position.

2. Make line managers accountable - for staff turnover in their teams. Reward managers
with a good record for keeping people by including the subject in appraisals. Train line
42
 managers in people management and development skills before appointing or promoting
them. 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 vary experience and make the work more
interesting.

4. Consult employees - ensure wherever possible that employees have a 'voice' through
consultative bodies, regular appraisals, attitude surveys and grievance systems. 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 such hours
of a culture of 'presenteeism' - where people feel obliged to work longer hours than are
necessary simply to impress management. Evaluation of individual commitment should
be based on results achieved and not on hours put in.

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. While the overall level of pay is unlikely to play a major role
unless it is way below the market rate, perceived unfairness in the distribution of rewards
43
 is very likely to lead to resignations..

8. Defend your organization - against penetration by headhunters and others seeking to

poach your staff. Keep internal e-mail addresses confidential, refuse to do business with
agents who have poached your staff, and enter into pacts with other employers not to
poach one another's staff.

44
 CHAPTER 9

EMPLOYEE-RETENTION STRATEGIES:

1. Recognize your impact as a manager

2. Implement effective work/life programs

3. Provide personal productivity training

4. Adjust or establish constructive Human Resources policies.

1. Recognize your impact as a manager

As an office manager, you must specifically communicate to employees that you appreciate their
contributions, rather than talking to them only when they do something wrong. Use charts and
graphs distributed through electronic bulletin boards and e-mail groups to keep your team
45
informed of results and how they are moving toward company goals.

2. Implement effective work/life programs

More and more organizations are looking to work/life programs to help employees cope with
workplace stress. Many of Fortune's "100 Best Companies to Work for in America" cite
work/life programs as one of their top tools to attract and retain the best employees and give
their companies a competitive edge.

3. Provide personal productivity training

Through proper productivity training, many people who work a 50–hour week can achieve
those same results in 40 hours. You create mutual value for the company and employees when
you:

1. Identify key employees, whose production rate and results are superior.

2. Help employees learn to achieve the same results in less time through productivity training.

3. Let employees leave the office earlier and get home to their lives.

4. Improve employee morale and job satisfaction to increase retention.

Both sides benefit from this win-win productivity proposition.

Employers:

1. Achieve the results they need without pushing employees over the edge.

2. Become an employer of choice.

46
 3. Reduce staff turnover.

Employees:

1. Achieve more results in less time.

2. Balance work and personal lives.

3. Experience less stress.

4. Adjust or establish constructive Human Resources policies

The methods described below can be technical and often have legal ramifications, so you should
consult with HR and legal resources before implementing these policies.

Salary-level caps

Structure pay levels by job categories so that long-term employees don't price themselves out
of their jobs. Properly structured salary-level caps prevent this situation because the salary for
a given job will never be higher than the job is worth.

Phased-in benefit plans

Establish retirement plans that aren't fully vested until employees have many years on the job.
This encourages people to stay. For example, an employee is 25% vested after two years, 50%
after five years, and 100% after 10 years. Also award additional vacation time for each year an
employee is with the company.

Performance-based salary increases

Create performance-planning and review programs that help you retain desirable employees.
47
Frequent reviews and positive reinforcement reward and encourage high-performing
employees. Poorer performers can be identified and assisted, then rewarded when they
improve.

CHAPTER 10

48
What Initial Steps Can Be Taken To Reduce Turnover?

1. First, hire the right people and continue to develop their careers. Does your company
have an ongoing career development program, tuition reimbursement, or skills training
program? An investment in upgrading the workforce is one of the best investments a
company can make when looking at long-term growth. Hiring the people that are a good "fit"
with the culture of the organization — meaning that their values, principles, andgoals clearly
match those of the company — and then training as necessary will go a long way toward
ensuring employee loyalty and retention.

2. Second, most companies with low turnover rates are very employee oriented. They
solicit input and involvement from all employees and maintain a true "open-door" policy that
avoids closed-door meetings. Employees are given an opportunity for advancement and are
not micro-managed. Intrinsic rewards are critical. Employees must believe they have a voice
and are recognized for their contribution. Remember that "trust" and "loyalty" are a two-way
street. Does your company's culture encourage open communication and employee input?

3. Third, develop an overall strategic compensation package that includes not only base and
variable pay scales, but long-term incentive compensation, bonus and gain-sharing plans,
49
 benefit plans to address the health and welfare issues of the employees, and non-cash rewards
and perks as well. To be competitive in today's labor market, most companies find it
necessary to offer a standard benefit package, including health, dental, and life insurance,
vacation and leave policies, and investment and retirement plans. But what more could be
done that would be cost effective toward creating an employee-oriented work environment?

4. Creativity in compensation and benefits can make quite a difference to the welfare of the
employee. A company should assess overall employee needs when addressing retention
issues.

5. Consider other options — such as alternative work schedules or flextime, or perhaps

preventative health care and wellness programs such as fitness center memberships — as
possible cost-effective benefits. Don't forget that perks or non-cash rewards to recognize
exceptional performance can be critical. Service recognition, event tickets, trips, and public
recognition can send strong messages to the public regarding company culture and values.
Simply examine the issues and needs of your employees and try to develop creative programs
to address these needs.

50
CHAPTER 11

51
 Comparative Study of Both the Companies
Through the comparative study of both the companies I have found that companies have facing
the problem of employees turnover because of the pay is too low, lack of benefits ,tasks are too
repetitive circumstances listed above such as family, school, or moving, poor management ,lack
of advancement, burnout, less recognition, less or no appreciation for work done, less growth
opportunities, Poor training, Poor supervision, Less work and life balance practices which are
almost the same in both companies.

52
CHAPTER 12

53
CHAPTER 13

54
 Data Analysis and Interpretation:

Analysis Using Percentage Method

1. Classification of the respondents based on their AGE LEVEL

S.No Age No. of Respondents Percentage

1 18-25 35 70

2 26-35 12 24

3 36-45 03 06

4 Above 45 0 0

Total 50 100

Source: Primary Data

Inference:

55
 The above table infers that, 70 percent belongs to the age group of 18-25 years, 24
percent belongs to the age group of 26-35 years, and 6 percent belongs to the age group of 36-45
years.

70
P
E
60
R 50
C 40
E
N 30
T 20
A 10
G
E 0
18-25 26-35 36-45 Above
AGE LEVEL 45

2. Classification of the Respondents based on their MOTIVATION

S.no Level of Attitude No. of Respondents Percentage

1 Highly Satisfied (H.S)

07 14

2 Moderately Satisfied (M.S)

26 52

3 Neutral (N)
15 30

4 Moderately Dissatisfied (M.D)

02 04

5 Highly Dissatisfied (H.D)

0 0

Total 50 100

56
Source: Primary Data

Inference:

The above table shows regarding Motivation that, 14 percent of the respondents are
highly satisfied, 52 percent of the respondents are moderately satisfied, 30 percent of the
respondents are neutral.

60

P 50
E
40
R
C 30
E
N 20
T 10
A
G 0
E H.S M.S N M.D H.D
LEVEL OF ATTITUDE

57
 3. Classification of the Respondents based on their APPRAISAL

S.no Level of Attitude No. of Respondents Percentage

1 Highly Satisfied (H.S) 05 10

2 Moderately Satisfied (M.S) 19 38

3 Neutral (N) 24 48

4 Moderately Dissatisfied (M.D) 02 04

5 Highly Dissatisfied (H.D) 0 0

Total 50 100

Source: Primary Data

Inference:

The above table shows regarding Appraisal that, 10 percent of the respondents are highly
satisfied, 38 percent of the respondents are moderately satisfied, 48 percent of the respondents
are neutral.

50

P 40
E
R 30
C
E 20
N
T 10
A
G 0
E H.S M.S N M.D H.D
LEVEL OF ATTITUDE

4. Classification of the Respondents based on their DISSATISFACTION FACTOR

58
S.no Dissatisfaction Factor No of Respondents Percentage

1 Work Pressure (W.P) 09 18

Management Decisions
(M.D)
2 06 12

3 Work Environment (W.E) 07 14

4 Pay Structure (P.S) 10 20

5 Others 18 36

Total 50 100

Source: Primary Data

Inference:

The above table shows regarding Dissatisfaction factor that, 36 percent of the
respondents are dissatisfied due to Other personal factors, 20 percent of the respondents are
dissatisfied due to Pay Structure, 18 percent of the respondents are dissatisfied due to Work
Pressure.

59
 MAKE EMPLOYEES TO GET DISSATISFIED
40

30

20
PERCENTAGE

10

0
Work Pressure Working Environment Others
Management Decision Pay Structure

S.no Consideration No of Percentage

s Respondents

1 Yes 39 78

2 No 11 22

Total 50 100

60
 5. Classification of the Respondents based on their CONSIDERATIONS FOR
EMPLOYEE CREATIVITY

Inference:

The above table shows regarding Considerations for employee creativity that,78 percent
of the respondents say Yes and 22 percent of the respondents say No.

P
E
80
R
C 60
E 40
N
T 20
A 0
G Yes No
E CONSIDERATIONS FOR EMPLOYEE CREATIVITY

ANALYSIS USING CHI-SQUARE TEST- 2

Null Hypothesis

There is no significance difference between Freedom to convey problems and

Considerations for employee creativity factors.

OBSERVED COUNT

61
 Freedom to

Convey

problems
S.no Yes No Total
Employee

Creativity

1 Yes 33 02 35

2 No 06 09 15

Total 39 11 50

Source: Primary Data

EXPECTED COUNT

Freedom to

Convey

problems
S.no Yes No Total
Employee

Creativity

1 Yes 27.3 7.7 35.0

2 No 11.7 3.3 15.0

Total 39.0 11.0 50.0

Source: Primary Data

FORMULA

(O-E) 2
62
 2=

O = Observed frequency

E = Expected frequency

COMPUTATION OF CHI-SQUARE ( 2 )

S.No O E (O-E) (O-E)2 (O-E)2 /E

1 33 27.3 5.7 32.49 1.19

2 2 7.7 -5.7 -32.49 4.22

3 6 11.7 -5.7 -32.49 2.78

4 9 3.3 5.7 32.49 9.84

TOTAL 18.03

Source: Primary Data

The calculated value is 18.03

Degree of freedom = (R-1) (C-1) = (2-1) (2-1)

=1

Level of significance = 5%

Table value 1 of DGF and 5% level of significance = 3.854

18.03 > 3.854 - Calculated Value is greater than Tabulated Value

Hence, Null hypothesis is rejected.

INFERENCE

63
 Thus Chi-Square test infers that there is significance difference regarding
Freedom to convey problems and Considerations for employee creativity factors.

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

An added bonus could be vacation time, sick leave. On-site child care would be
extremely helpful for parents who have to work long or late hours—especially single
parents.

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

3. A set schedule. In food service and retail, and most service industries as well as
health care, employees are forced to work six or more—even up to ten days in a row
without a day off. Days off may even be split up, so the employees never really get a
chance to rest. Giving them the opportunity to choose which days off they want, or at
least giving them two in a row and not working them more than five, would be
extremely beneficial in employee retention.

4. Job variation. Employees get burned out on performing the same job every hour of

64
 every day, 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 superiors. Managers and supervisors should always have a
positive attitude toward their employees and never insult, criticize, or berate them.

6. Proper training for management. Managers should be trained 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
agreement and consistent with company policies. Managers should be trained to treat
their employees with respect, because without those employees, the business could
not operate.

65
 RECOMMENDATIONS

Turnovers can detrimental effect on an organization and its employees if company

management allows it. There are a tool to assist in addressing the causes of turnover is often
used as a performance indicator may be preventive measure should be as well. It is impossible
to eliminate turnover altogether therefore management must learn how to deal with it and the
effect it has on a company. In addition management should be better prepared to take the
proper action after the turnover event occurs. All effort should be focused on maintaining job
satisfaction and managing controllable caused of turnover.

The list of recommendation to prevent turnover in companies are:

1. Get involved in finding out the causes of turnover

2. Bring attention to bottom fig. & how turnover affect everyone

3. Have an open door policy style of managing to allow employee to comment on what
might be bothering then about the job.

4. Realize there is more than one problem and pay attention to all stay alert.

5. Execute periodic audits of job satisfaction.

6. Have a Strict hiring standard do not just fill opening and.

7. Develop and constantly update training strategies.

66
 Case Studies and Articles

Case Study on Wipro

IT major Wipro Technologies that employs around 122,385 people, has announced salary hikes
effective June 1, 2011, in an effort to retain its manpower. The wage hike is in the range of 12 to
15 per cent for its India-based staff and 3 to 4 per cent for employees working at client locations.

As high attrition rate is alarming the IT and BPO majors in the country, Wipro said it is working
towards employee retention and keeping the employee spirits high.

Plans to increase on-site working opportunities

“Employees are an important aspect of the company's health. We want our employees to be
more excited about their company and they should see a career growth opportunity here. We
want to give them opportunity to go out there, see the customer and learn their technology,” he
said after the financial results were anounced here on Wednesday.

This could be an interesting move for the company in ensuring employee retention at the entry
and mid range level, since engagement programs, on-site opportunities and salary hikes are
considered accelerators of employee satisfaction.

Voluntary attrition 22.7 p.c. in FY 10-11

Pratik Kumar, executive vice president, human resources, Wipro Limited and president, Wipro
Infrastructure Engineering, shared that the company is looking at increasing employee
communication by organizing events and engagement programs.

He said, “We are giving salary hikes effective June 1, 2011. TK and the team has built up a
calendar transparently communicating that every year the cycle for work review and salary
appraisal will happen effective June 1.”

67
The IT services division saw the voluntary attrition going up to 22.7 per cent in FY 10-11 against
12.1 per cent on FY 09-10 In the fourth quarter it came around 20.9 per cent, marginally lower
than 21.7 per cent last quarter.

Article on WIPRO

Wipro continued the trend of bumper results from IT companies. Sequential and year-on-year
growth is the highest in the past eight quarters. Wipro's sale was up 43% YoY to Rs 3,558 crore
and 13% sequentially. Profits rose 47% YoY and 13% QoQ to Rs 700 crore.
However, the story on margins is that they are flat. The company's profitability has been
impacted by 0.2% compared to previous quarter. This impact would have been much more if the
company had not seen a massive improvement in profitability of its acquisitions.

The company has got some relief from improving margins in the BPO business. The
management lists visa costs and forex gains as two more areas providing some relief on margins.
The share of India in the total revenue mix of the company has grown in this quarter.
However, this is one area where the company is showing a lot of variations over the quarters.
Apart from this, the rest of the geographies show uniform growth.
Attrition in Wipro has been creeping up for the last six quarters. It currently stands at 18%. It
stood at 15.9% for the last 12 months.
The company has added 5,328 employees during the quarter. This large addition has led to
utilisation rates falling to 69%. Past trends suggest that there could be further fall in the
utilization numbers going forward.

68
Case study on INFOSYS

There were a lot of shocking numbers in Infosys' quarterly earnings. But one that stands out the
most is the 14.9 percent attrition rate-this is even given that an industry facing a slowdown
typically records low attrition figures. An Economic Times report suggests that close to 8,000
employees left Infosys in the past three months mainly due to wage-hike issues.

The management however during the company's earnings last week said that there is nothing
alarming about the attrition rate as a lot of people leave for higher studies during this quarter. The
company had also said that it will hire people laterally to combat this attrition.

An earlier Business Standard report in May said that the number of Infosys employees looking to
move was on the rise. That report had signaled this announcement in May.

Experts note that this is definitely a tough time for Infosys and the system is undergoing a shake
up. "These numbers (attrition) are thrice as much as the general industry rate. It's pretty bad. The
company is undergoing a overhaul and maybe the company also laid off people given the
demand environment," said a recruitment expert who spoke to Firstpost on the condition of
anonymity.

Ajit Isaac, MD and CEO at Ikya Human Capital Solutions, a Bangalore-based recruitment
agency also suggested that the company said that the company might have laid off level 3 and
level 4 (junior employees) since their utilization rate, or employees working on live projects was
close to 67 percent. "In the next few quarters, IT attrition will come down because of the slowing
demand. I believe that a company like Infosys will recover from this," he told Firstpost.

69
Article on INFOSYS

Infosys, India's No 2 software services provider, is working on expanding the scope of technical
tests in lateral recruitment to include candidates across the experience spectrum.

While technical tests have always been part of the selection process, not all lateral recruits
currently require technical tests. The company is rolling out a plan to make sure all lateral
positions require a corresponding technical test, Infosys said, in response to a query from ET.

This would mean even senior level lateral hiring will involve tests, which currently form part of
various interview rounds that candidates face, depending on the level at which they are being
considered. Infosys is doing this to ensure it hires top quality talent but there are concerns that
this will also make hiring at senior levels more difficult, two persons within the company with
knowledge of the discussions said.

The persons didn't want to be named as the discussions were internal, but added that founder NR
Narayana Murthy was keen to go ahead on the plan despite the concerns.

"Murthy wants to improve the quality of lateral hires," said one of the persons. "However, there
is a worry that senior talent might resist taking such tests and Infosys will lose out on good
talent." In a statement, Infosys said: "As the technology landscape has changed, we have also
modified the technical assessments to ensure we bring the best and relevant talent into the
company. At this time, technical assessments are administered as part of the interviews
conducted by our panel of experts with potential lateral hires as applicable."

India's $118-billion IT outsourcing industry has some 3 million employees, and recruiting
experienced staff is an enormous exercise that has been made more complicated with potential
recruits being on social media. Competition is fierce for talented people, and every percentage
point improvement in the selection ratio represents significant cost savings.

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In the three months ended December 31, Infosys's attrition, or staff churn, went down in absolute
terms, but the company has a much higher attrition rate compared with larger rival Tata
Consultancy Services. TCS's 10-11% attrition is the best among the top five Indian providers.

"The first-level supervisors, project leads, tech leads, team leads, there is quite a bit of demand
across the IT services industry," said Aditya Narayan Misra, staffing director at the Indian unit of
Dutch staffing firm Randstad. "That's the first line which can create an impact with the
customers and business directly."
Murthy's mulling tests could also be an indication of the type of work clients are expecting of
Infosys that has always prided itself on its superior execution ability. As Infosys seeks to
automate more processes, work that needs to be done by humans would arguably require leaders
with greater technical competency as well self assurance in handling teams under stressful
deadlines and in dynamic situations when things go wrong.

There are two things that companies look for in a lateral hire: technical competency and soft
skills related to managing people. Large IT services companies typically don't conduct tests for
the first level lateral recruits, with 4-5 years experience, unless a particular project or assignment
they are recruiting for calls for such a test, Misra said.

With interviews, the most common tool used to assess a potential recruit, however, "the success
rate is not very good ... we have seen many cases where companies are distressed, after calling in
many people for interviews and then not finding anyone suitable."

Companies used to shy away from these technical testing, but today technology has developed to
the level where these tests can be cost effectively administered. Video interview based tests are
increasing, and companies such as Interview Exchange with targeted tools and tests help
employers expedite their recruitment plans, he added. Misra added, "in the last couple of years,
the incidence of using some of these tests as an elimination tool has increased".

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 CONCLUSION

I have found through the analysis that most of the industries have faced the problem of
turnover because of dissatisfaction with work or working condition, the Working hours,
workload work schedules, incentives, salaries and facility which are provided
and the to
t
h worker
e is not up to the marks, as per the analysis the various way through which
t
h industri
e es reduces their employees turnover problem, are given below:-

1. Remove the barriers and biases which create unfair workplace

2. conducting workers satisfaction survey, find specific problem area to watch and
improve

3. Reduction in workload and working hours and more flexible work patterns were
important to consultants.
4. Providing a challenging job, and offering realistic promotion opportunities.

5. Help employees learn to achieve the same results in less time through productivity
training.

6. Provide as much job security as possible.

7. Frequent reviews and positive reinforcement reward and encourage high-performing

employees.

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 8. Maximize opportunities for individual employees to develop their skills and move on in
their careers.

9. Offering employees an affordable medical, dental, and vision package in this day and age
is a great way to keep employees happy.
QUESTIONNAIRE

PERSONAL DATA:

1. Name:

2. Designation:

3. Age:

a) 18 -25 b) 26 – 35 c) 36 -45 d) above 45

4. Marital status:
a) Married b) unmarried

5. Educational Qualification:
a) Below Hr. Sec. b) Hr. Sec c) UG or PG d) ITI or
e) Others

6. Years of Experience:
a) 0 – 2 years b) 3 – 5 years c) 6 – 8 years d) Above 8 years

7. Contact No & Address:

OTHER DATA:

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8. Identify your role in ------?

□ Top level mgt □ Middle level mgt

□ Lower level mgt □ Contracted person

9. How long you are working here?

□ <1 year □ 1-2 years □ 2-3 years □ > 3 years

10. How well do you understand your job and the role it plays in achieving your vision ?

□ Not at all □ Not really □ Some what

□ Pretty much □ Totally

11. Rate the following factors

Highly Satisfied Neutral Dissatisfied Highly

satisfied Dissatisfied

Motivation

Appraisal

12. Which of the following makes you to get dissatisfied..?

□ Work Pressure □ Management Decisions

□ Working Environment □ Pay structure □ others

13. Do you believe that there is a decrease in your Dissatisfaction level -----?

□ Not at all □ Somewhat ok

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 □ Average □ Really good

14. For which reason, you prefer to change the job..?

□ Health condition □ Family issues

□ Growth □ Monetary benefits

□ Others

15. Is there any considerations for the employee’s creativity..?

a) Yes b) No

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 REFERENCES

BOOKS

a) Rodger Griffeth (2008) ,Managing Employee Turnover

b) ACAS. (2003), Managing attendance and employee turnover.

c) INCOMES DATA SERVICES.,(2008), Improving staff

retention. HR Studies

d) TAYLOR, S. (2002), The employee retention handbook.

Developing practice.

WEBSITES

a) www.infosys.com

b) www.wiproltd.com

c) www.retention.naukrihub.com

d) www.empturnover.com

JOURNALS
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a) LAWLER, E.E. (2008) Why are we losing all our good people? Harvard Business
Review.

b) MACAFEE, M. (2007) How to conduct exit interviews. People Management.

c) RANKIN, N. (2008) The drivers of staff retention and employee engagement.

d) RANKIN, N. (2009) Labour turnover rates and costs in the UK in 2008.

e) TAYLOR, S. (2006) Are you keeping your employees happy? The HR Director.

77