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What is attrition ???.....

Human resources are the only source of long term competitive

advantage for any business organization. It plays a key role in helping

companies deal with a fast-changing competitive environment.

According to Wayne F Cascio, people are a major component of any

business and the management of people is a major part of everymanager’s job. It is also the specialized responsibility of the HR

department. Thus Human Resource Management (HRM) is the strategic

and coherent approach to the management of an organization’s most

valued assets. Human Resource Management involves five major

areas: staffing, retention, development, adjustment and managing

change. Together they compose the HRM system, for they describe a

network of interrelated components1. However, rising business

competition has led to high attrition rates in many sectors and

retaining the employees is proving to be a herculean task for most

organizations in the modern era of globalization and competitive

business.

Attrition is a normal and uncontrollable reduction in

the workforce because of constant stress, retirement, death,

sickness and relocation. In simple words, attrition refers to the

number or rate at which the people leave an organization. It is

one method of reducing the size of workforce without managementtaking any overt actions. The drawback to reduction by attrition is that

reductions are often unpredictable and can leave gaps in an

organization. Attrition is one of the biggest challenges and it

represents significant costs to most organizations. A high attrition

reflects poorly on an organization’s ability to hold on to its people. The

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drivers are concern about type of work, use of skills and abilities and

opportunity to learn new skills.

Definition of Attrition:

“A reduction in the number of employees through retirement, resignation or death is called

Attrition”. Attrition is also called total turnover or wastage rate.

• Definition of Attrition Rate:

“The rate of shrinkage in size or number of employees is known as Attrition rate. It is usually

expressed in percentage.”

➢ Types of Attrition

Attrition is not bad always if it happens in

a controlled manner. Some attrition is

always desirable and necessary for

organizational growth and development.

The only concern is how organizations differentiate “good attrition”

from “bad attrition”.

Good Attrition-

Less productive employees voluntarily leaving the organization. This

means if the one

who have left the organization fall in the category of low performers,

the attrition in considered being healthy or good attrition.

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➢Attrition rates can be beneficial in some

ways:-• When certain employees leave, whose continuation of service

would have negatively impacted productivity and profitability of the company, the company is benefited.

• If all employees stay in the same organization for a very long

time, most of them will be at the top of their pay scale which willresult in excessive manpower costs.

• New employees bring new ideas, approaches, abilities & attitudeswhich can keep the organization from becoming stagnant.

• Desirable attrition also includes termination of employees withwhom the organization does not want to continue a relationship.It benefits the organization in the following ways:

○ It removes bottleneck in the progress of the company

○ It creates space for the entry of new talents

○ It assists in evolving high performance teams

○ Business pressures do not allow the management to over-reward the performers, but when undesirable employeesleave the company, the good employees can be given theshare that they deserve.

Bad Attrition: -

In the performance analysis of the ones who have left, if the

proportion of high performers leaving is higher, the attrition is bad

attrition. Attrition in any form means that a wrong choice was

made at the beginning while recruiting. Even good attrition

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indicates loss as recruitment is a time consuming and costly

affair.

In addition to the above two types, there are-

Market Driven Attrition –

Based on the demand for a particular skill- The typical initialreaction by

to market driven attrition is to increase wages, offer better benefits,escape the market by relocation or site migration or relax hiringstandards.

Workload or Stress Driven Attrition -

On the actual capacity to perform the work required. This is when

there are not enough of the right people.

Process Driven Attrition –

Variables associated with job design and/or the organization. In

some industries and organizations there is a belief that attrition

has always been there and rigid process is also responsible.

➢Causes of Attrition

Employees do not leave an organization without any significant reason.

There are certain circumstances that lead to their leaving the

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organization. Among management-level employees, the key attrition

drivers are such as opportunities for management, ability of top

management, use of skills and abilities and work/family balance. For

professional – level employees, the key attrition drivers are concern

about coaching and counseling from one’s supervisor, clear sense of

direction from the company and chance to do interesting and

challenging work. Among clerical level employees, the key attritiondrivers are concern about type of work, use of skills and abilities and

opportunity to learn new skills.

Higher Pay:

The most obvious reason for employees leaving any organization

is higher salaries offered by other Organization with better jobopportunity.

Job or work place is not what they expected:

Sometimes the job responsibilities don’t come out

to be the same as expected by the candidates. Unexpected job

responsibilities lead to job dissatisfaction.

Job & person mismatch: A candidate may be fit to do a certaintype of job which matches his personality. If he is given a job which

mismatches his personality, then he want be able to perform it well

and will try to find out reasons to leave the job.

Less growth opportunities:

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No or less learning and growth opportunities in the current job will

make candidate’s job and career stagnant. Only 20% of employees

are able to go to senior levels. The remaining 80% of employees

look for other organization where they can get opportunities for

growth.

Lack of appreciation-

If the work is not appreciated by the supervisor, the employee feels

de-motivated and loses interest in job.

Lack of trust and support in coworkers, seniors and

management:

Trust is the most important factor that is required for an individual

to stay in the job. Non-supportive coworkers, seniors and

management can make office environment unfriendly and difficult to

work in. When employees are happy with their superiors they

choose to stay, if not they look for a switch.

Stress from overwork and work life imbalance:

Job stress can lead to work life imbalance which ultimately many

times lead to employee leaving the organization. If employees feel

stressed out due to the workload trusted on them they tend to look

for a change. The major stress factors are: -

Work Timings

Repetitive Nature of Work

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Work Load & Pressure to Perform

Irritative Customers

Travel Time

Long Working Hours

Insufficient Breaks

Health Issues

Compensation:

Better compensation packages being offered by other companiesmay attract employees towards themselves.

New Job Offe r;

An attractive job offer which an employee thinks is good for himwith respect to job responsibility, compensation, growth andlearning etc. can lead an employee to leave the organization.

Plans for further studies: These days, in many organizations,employees are joining at very young age because of lucrative salariesbeing offered. But with time, they apply for higher education and try tomove on to other organizations or sectors to occupy top positions.

Women Workers:

The percentage of women workers is very high, around 30%.Generally, women workers leave the organization after marriageto take up their house-hold duties, irregular work hour’s et al.Even when someone relocates with their spouse or partner, itcomes outside the control of any employer.

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➢ Calculating Cost of Attrition

Costs are often broadly categorized as follows:

Recruiting and hiring costs –

The cost of advertisements; agency costs; employee

referral costs; internet posting costs.

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 hoursper position.

Calculate the cost of the various candidate pre-employment

tests to help assess candidates' skills, abilities, aptitude,

attitude, values and behaviors.

Training and orientation costs –

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

Calculate the cost of departmental training as the actualdevelopment and delivery cost plus the cost of the salary of the new employee. Note that the cost will be significantly

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higher for some positions such as sales representatives andcall center agents who require 4 - 6 weeks or more of classroom training.

Calculate the cost of the person(s) who conduct thetraining.

Calculate the cost of various training materials needed

including company or product manuals, computer or othertechnology equipment used in the delivery of training.

Lost Productivity Costs – As the new employee is learning thenew job, the company policies and practices, etc. they are notfully productive. Use the following guidelines to calculate the costof this lost productivity:

Upon completion of whatever training is provided, theemployee is contributing at a 25% productivity level forthe first 2 - 4 weeks. The cost therefore is 75% of thenew employee’s full salary during that time period.

During weeks 5 - 12, the employee is contributing at a50% productivity level. The cost is therefore 50% of fullsalary during that time period.

During weeks 13 - 20, the employee is contributing at a75% productivity level. The cost is therefore 25% of fullsalary during that time period.

Calculate the cost of mistakes the new employee makesduring this elongated indoctrination period.

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New Hire Costs –

Calculate the cost of bring the new person on board including thecost to put the person on the payroll, computer and securitypasswords and identification cards, telephone hookups, cost of establishing email accounts, or leasing other equipment such as cellphones, automobiles.

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

Lost Sales Costs –

Calculate the revenue per employee by dividing total companyrevenue by the average number of employees in a given year.Whether an employee contributes directly or indirectly to thegeneration 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 theposition is vacant by the average weekly revenue per employee.Reduced loyalty and outright defections to competitor’s .It is clear thatthere are massive costs associated with attrition or turnover and,while some of these are not visible to the management reporting orbudget system, they are none the less real.

The approach to calculate attrition might vary from organization to

organization. While a few techniques are common, there are no proven

theories. The most commonly used formulae are:

Total Number of Resigns per month (Whether voluntary

or forced) X 100

--------------------------------------------------------------------------------------------------------

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(Total Number of employees at the beginning of the month+

total number of new joiners’ - 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)

Types of attrition calculation

Fresher attrition:

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The number of fresher’s who left within one year. It tells

you how many are using the company as a springboard.

Infant mortality:

Percentage of people who left within one year. This

indicates the ease with which people adapt to thecompany.

Critical resource attrition:

Key men exit.

Low performance attrition:

Those who left due to poor performance.

➢ Impact of Attrition

Attrition normally brings decreased productivity. People leave causingothers to work harder. This contributes to more attrition, whichcontributes to increasing costs, lower revenue. This often forcesadditional cost reductions and austerity measures on an organization.

This in turn makes working more difficult, causing the best performerswith the most external opportunities, to leave.

Direct impact:

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A high attrition indicates the failure on the company’s ability to

set effective HR priorities. Clients and business get affected and

the company’s internal strengths and weaknesses get

highlighted. New hires need to be constantly added, further costs

in training them, getting them aligned to the company culture,

etc.,—all a challenge.

Indirect impact:

Difficulty in the company in retaining remaining employees.

Problem for the company in attracting potential employees.

Typically, high attrition also leads to a chronic or systemic cycle—

attrition brings decreased productivity, people leave causing

others to work harder and this contributes to more attrition. All

this has a significant impact on the company’s strength in

managing their business in a competitive environment.

➢ Need to Curb Employee Turnover / Attrition

There are massive costs associated with attrition or turnover and,

while some of these are not visible to the management reporting or

budget system, they are none the less real. The attrition rate is an

indicator of many things intrinsic to the organization, and revealing it

may affect it negatively. Attrition figure has direct impact on stockmarkets, employee morale and customer confidence. There is too

much at stake. Now is it just to reduce the turnover costs? It’s not only

the cost incurred by a company that emphasizes the need of curbing

employee turnover rates but also the need to retain talented

employees from getting poached…

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This curbing in turn will benefit the organization in the following way:

The Cost of Turnover – The cost of employee turnover adds hundreds of thousands of money to a company’s expenses. While it is difficult to fullycalculate the cost of turnover (including hiring costs, trainingcosts and productivity loss), industry experts often quote 25% of

the average employee salary as a conservative estimate.

Loss of company Knowledge –When an employee leaves, he takes with him valuable knowledgeabout the company, customers, current projects and past history(sometimes to competitors). Often much time and money hasbeen spent on the employee in expectation of a future return.When the employee leaves, the investment is not realized.

Interruption of customer Service –When an employee leaves, he takes with him valuableknowledge about the company, customers, current projects andpast history (sometimes to competitors). Often much time andmoney has been spent on the employee in expectation of a futurereturn. When the employee leaves, the investment is not realized.

Turnover leads to more turnover –When an employee terminates, the effect is felt throughout the

organization. Co-workers are often required to pick up the slack. The unspoken negativity often intensifies for the remaining staff.

Goodwill of the company – The goodwill of a company is maintained when the attrition ratesare low. Higher retention rates motivate potential employees to

join the organization.

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Regaining efficiency –If an employee resigns, then good amount of time is lost in hiringa new employee and then training him/her and this goes to theloss of the company directly which many a times goes unnoticed.And even after this you cannot assure us of the same efficiencyfrom the new employee.

OBJECTIVES OF THE REPORT-

The objective of any report holds its purpose for what its research is

being conducted , so the primary and secondary objectives for this

report are as follows –

Primary Objectives-

• To investigate and identify the various causes of

attrition in Insurance sector especially in BAJAJ ALLIANZ

LIFE INSURANCE COMPANY Ltd.

• To help in retention of such employees who attired

from BALIC .

Secondary objective -

• To study the concept of attrition

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• To check satisfaction level of employees of BALIC.

RESEARCH METHODOLOGY

Research Methodology is a

systematic method of discovering new facts or verifying old facts, their

sequence, inter-relationship, casual explanation and the natural laws

which governs them. Research Methodology explained by Redman

and Mory are as follows systematized effort to gain new knowledge

Research Methodology is original contribution to the existing stock of

knowledge making for it advancement. It is the purist of truth with thehelp of study.

Observation, comparison and experiment. In short also covers the

systematic method of finding solution to a problem is research. It also

covers the systematic approach concerning generalization and the

formulation of the theory. Different stages involved in research

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consists of enacting the problem, formulating a hypothesis, collecting

the facts or data, analyzing the facts and reaching certain conclusion

either in the form of solution towards the concerned problem or in

generalization for some theoretical formulation.

In Research Methodology mainly Data plays an important role. The

Data is divided in two parts:

a) Primary Data.

b) Secondary Data.

Primary Data –

Is the data, which is collected directly by direct personal interview,

interview, indirect oral investigation, Information received through

local agents, drafting a schedule, drafting a questionnaire, job portals.

Secondary Data -

Is the data, which is collected from the various books, magazine and

material, reports, etc. The data which is stored in the Organization and

provide by the HR people are also secondary data. The

various information is taken out regarding that subject as well other

subject from various sources and stored. The last years data stored

can also be secondary data. This data is kept for the internal use of theorganization. The HR manual is for the internal use of the organization

they are secondary data which help people to gain information.

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The well specified and identifiable group is known as a population, and

selected number of persons or objectives is known as a sample.

Population may be of two types ie; finite and infinite population.

Finite population-

Is one where all the members can be easily counted .

Infinite population –

Is one whose size is unlimited and therefore its memberscannot be counted.

Sample and sampling method -

Is a smaller representation of the population , it is any number of persons selected to represent the population , according to some rulesor plans .ON the basis of sample sampling methods are identified which

method to choose generally there are two methods of sampling ie;probability sampling method and non-probability sampling method.

The sampling method used in this project report is that clearly specifiesthe probability or likelihood of inclusion of each and every element orindividual in the sample. Thus sampling technique used is the presentproject report is SIMPLE RANDOM SAMPLING technique .

Some features of simple random sampling are as follows-

The size of the parent population or universe from which the sampleis to be taken must be known to the investigator.

Each element or individual must have an equal chance of beingincluded in the subsequent sample.

The desired sample size must be clearly specified.

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The sampling method used in the present project is RandomSampling Method.

In this method each and every individual have chances of beingincluded.

Research methodology portion captures a unique blend of the possibleCauses of Attrition , in the industries , corporate houses ,and

especially in the insurance sector . In this process , the number of causes or variables which directly or indirectly increases the rate of attrition and leads towards dump of employee’s turnover debt weresorted out on the basis of those dimensions or causes a well structuredquestionnaire was prepared named “ EMPLOYYEE ATTRITION RATINGSCALE” , the questionnaire had its two parts ie; first part as closed –form questionnaire which was based on the dimensions sorted down ,consisting of thirteen statements and second part as open- endedquestionnaire which included suggestions provided by the attired

employees , followed by the process of data collection by two sourcesie; primary source which included telephonic interview of exitemployees and by secondary source which included drawinginformation from the website of BALIC and also by talking to theexisting employees of BALIC to understand the current problem acrossthe insurance sectors .

The variables which were identified to understand the causes of attrition and exit in the fiscal year (2009-2010) in BALIC were theprimary, and statistical data provided by BALIC were divided into four

basic areas of UP-2 region which is based on the basis of -

• Division basis,

• Tenure basis ,

• Departmental basis,

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• Monthly work basis .

The division basis basically includes the four regions of UP-2 ie ;Allahabad Gorakhpur ,Jaunpur and Varanasi . The departmental basisincluded all its sales and non-sales departments which marked attritionrate also including exits on the tenure and monthly basis .

The variables identified to understand the causes of attrition are :-

1) Organizational Culture which includes in itself

a) Relationship with colleagues,

b) Leadership style,

c) Flow of communication.

2) Job Satisfaction which includes in itself

a) Work Motivation,b) Stress.

3) Growth and Development which includes

a) Learning and development ,

b) Growth prospects.

4) Work –Life balance.

The questionnaire was thus prepared by keeping these dimensionsas basis , then followed by the process of data collection with thehelp of structured interview and thus data was recorded instandardized form on the basis of Likert scale ie; 5-point rating scaleranging from strongly agree to strongly disagree . The questionnairewas standardized by using Factor Analysis method and then in orderto draw conclusion the data was interpreted and analyzed by using

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systematic statistical forms and also they are represented with thehelp of charts and graphs.

Sample

Population-

The wel identified and specified group is known as a population. Itmay be of two types ie;

• Finite population-

Is one where all the members can be easily counted.Whereas

• Infinite population –

Is one where size is unlimited and therefore its memberscannot be counted.

In this report population is finite in nature and populationsize is 452.

Sample-

It is the representative of population which holds all thecharacteristics of population .

Sample size of this research report is 117. Out of whichit was divided into three parts ie

• Cases of voluntary resignation - 91

• Cases of involuntary absconding -22

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• Cases of involuntary termination -4

So our sample size is 91 as report is based on thecases of resignation only

For the process of collecting data the structed interview wasconducted in which all the 13 statements where asked to the to

the exited employees and they were asked to reply on the basis of 5- point rating scale ie; LIKERT SCALE and also subjectiveresponses were provided by them in the form of suggestions .afterthe process of data collection these 13 statements wherearranged accordingly on the basis of dimensions. These 4dimensions are as below-

Organizational culture-

This dimesion includes in it some sub-dimensions :

• Relationship with colleagues including statement (10).

• Leadership styles including statements (2 , 12).

• Communication including statement (13)

Job satisfaction –

It also includes some sub-dimensions along with it:

• Work motivation including statements (1, 5, 6, )

• Stress including statements (7, 11).

Work life balance which includes statements (3, 9).

Growth & development –

It also includes some sub-dimensions along with it:

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• Learning & development which includes statements (8).

• Growth prospects which includes statements (4).

After they were assembled together their average was taken out andthus their data was also shown in the form of bar graph –

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Measuring scale

Measuring scale taken for this project report is 5- point rating scale, ie; LIKERT

SCALE .thus the scale constructed with the title employee’s attrition rating scale:

STATEMENTS

strongl

y agree

neutra

l

disagre

e

strongl

y

agreedisagree

1. Were you clear about your rolein your job2. Did you had harmoniousrelationship with your boss.3. Were you able to developharmony between

your personal & professional life .

4. Are there good growthprospects for you in theorganization.5. Do you think that yourknowledge 7 skill was

properly utilized .

6.Were you satisfied with thesalary provided to

you according to your job .

7. Were you demanded to work

more than whatwas required out of your job .

8. Had you been provided enoughopportunitiesfor development through trainingprogrammers.9. Did you had continuous hectic

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work schedule

10. Did you had harmoiousrelationship with your

colleagues at workplace.

11. Is work pressure main reasonfor you to leave

organization .

12. Did you had autonomy of yourown self to take

decisions in your organization .

13. Were you able to communicatedirectly to yourboss regarding your professionalproblems.

Data interpretation

➢ Employees Attrition Rate in BALIC

After the detail Analysis of Attrition in context of meaning, Types,Calculation of Attrition rate & impact of Higher Attrition onOrganizational growth. Now I am focusing on, why attrition rate ishigher in Bajaj Allianz life insurance Company Ltd.? And what are themain factors responsible for higher Attrition rate.

Data provided by the organization of exit employees of financialyear2009-2010 is as below-

➢ Attrition rate across the Departments/ Channels for FY 2009-2010

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DEPARTMENT TOTALEMPLOYEES

NEW JOINERS

EXITSEMPLOYEES

TOTALEMPLOYEES

AVERAEMPLO

Agency 420 242 193 662 469%

Alternate 23 16 16 39 23%Bancassurance 0 2 0 2 2%BusinessProcurement 23 8 8 31 23%

DirectMarketing 262 45 201 307 106%

Finance 16 0 1 16 15%HumanResource 2 0 0 2 2%

Internal Audit 1 0 0 1 1%

Operation 46 6 2 52 50%

Renewals 1 3 0 4 4%SalesAdministration 6 0 0 6 6%Strategic

Initiative 9 33 26 42 16%Training 12 4 3 16 13%

Region Total 829 359 452 1188 736%

• Total No. of Employees as on 1st April 2009 (Across The Department/Channels)= 829

• Total No. of New Joiners (Across The Department/ Channels) =359

• Total No. of Exit Cases (Across The Department/ Channels)=452

• Total Attrition Rate Of UP2 Region is 61.41%

• The Departments/ Channels having higher Attrition Rate (morethan 100%) are Direct marketing Channel & Strategic InitiativeFollowed by Alternate, Agency, And Business Procurement.

• Departments With zero Attrition /Exit are Bancassurance, HumanResource, Internal Audit, Renewals and Sales & Administrative

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Thus I excluded these Departments/ Channels for Further ExitAnalysis.

➢ Departments/ Channels having Attrition Rate are-

Departments Attrition in %

Agency 41.15%

Alternate 69.57%

Bancassurance 0.00%BusinessProcurement

34.78%

Direct Marketing189.62%(max.)

Finance 6.67%

HumanResource

0.00%

Internal Audit 0.00%

Operation 4.00%

Renewals 0.00%

SalesAdministration

0.00%

StrategicInitiative

162.50%

Training 23.08%

Region Total 61.41%

Highest Attrition-

•Directive Marketing-189.92%,

•Strategic Initiative -162.50%

•Alternate- 69.57%

•Agency-41.15%.

Lowest Attrition-

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• Operation - 4.00%,

• Finance- 6.67%

➢ Division wis e attrition rate in BALIC for FY (2009-2010)

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31

Divisions

No. of exits

Allahabad1

23

Allahabad2

34(max.)

Azamgarh 14Ballia 9 (min.)

Gorakhpu

r 1

26

Gorakhpur 2

18

Jaunpur 11Mughalsarai

14

Varanasi1

21

Varanasi2

23

Total

exits

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➢ Attrition on basis of Month for FY (2009-2010)

Months No. Of Exits

April 09 22 (min.)

Aug. 09 47

Dec.09 28

Feb. 10 22 (min.)

Jan. 10 22 (min.)

July 09 61 June 09 62 (max.)

Mar. 10 27

May 10 58Nov. 09 30

Oct. 09 43

Sep. 09 30 Total Exits 452

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Nature of exits

34

Mode of exit TotalInvoluntary -

• Absconding 66• Termination 53

Involuntary total 119Voluntary -

• Resignation 333Voluntary total 333

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Mode Of Exits

Now the data is being interpreted onthe basis of statement wise and dimension wise , so from here starts

the interpretation on basis of statements, data is also represented

graphically-

• Statement 1 -

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Were you clear about your role in your job.

• Analysis –

Most of the employees rated 2 showing that to some

extend they do agree that they were clear about roles accepted from

them to do. Showing the average of 1.72

• Statement 2-

Did you had harmonious relationship with your boss.

• Analysis-

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Mostly employees rated on 2 showing they slightly

agreed that their relationship with their boss was quite harmonious .

presenting the average score of 2.01.

They replied with statements like

• They had very good relations with their colleagues and boss too.

Some responded totally different

• Some had their boss as their main reason to leave BALIC , he used to

use abusive language .

• Statement 3 -

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Were you able to develop harmony between your

personal and professional life

• Analysis-

Most of the employees rated their answers at 3 showing

that they had neutral response on this statement with the average

score of 2.74.

They replied with the statements –

• If we are in the job so have to work hard so sometimes it happened

that were able and sometimes were not able to establish harmony ,

some replied differently

• Few bosses give so much work pressure that it becomes tough to

create harmony.

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• Statement 4-

Are there good growth prospects for you in the

organization .

• Analysis –

Most of the employees agreed that there are very good

growth prospects for them in the organization, most of them rated at

2 followed by 1 showing their strongly agreed and agreed response ,

showing average score of 2.21.

They replied in statements like-

• I feel very proud of being part of BALIC , some replied

* Today I am whatever its just possible being part of BALIC.

* Statement 5-

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Do you think that your knowledge and skill was properly

utilized.

• Analysis –

In this statement scores scattered more towards point 2

as well to point 4 also, people showed different responses , some

agreed that their ability was utilized for best and some disagreed fromthis point ,showing the average score of 2.26 they replied in different

manner .

Individual statements came out as

• Yes I started as junior and resigned from the post of BDF. Few

responded totally in contrast way like,

• After having experience of 4 years I was posted as ASM but as per

requirement and experience I should be posted as SSM.

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• Statement 6-

Were you satisfied with the salary provided to you according

to your job.

• Analysis –

In this area also variations are being shown people mostly

rated at 2 showing that they were satisfied but few were also there

who were not satisfied so left job , showing the average score 2.42

they gave statements as follows ;

• Our boss used to cease checks of employees till they submit (full

and final) ,if they don’t submit then he don’t give salary.

• Salary was not satisfying but as incentives were high salary also

goes high. Some replied totally contrast as-

• Ya salary was quite good I was satisfied.

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• Statement 7-

Were you demanded to work more than what was required

out of your job.

•

Analysis-In this statement most of the employees agreed that they

were demanded to work more, showing the average score of 2.52 ,

giving statements like

• If you are working so you will be required to work more, some

replied in other wat

• No not at al but ya in times of closing work load was increased

.some repied differently

• Boss used to shout dhandha karo dhandha any how

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* Statement 8-

Had you been provided enough opportunities fordevelopment through training programs.

• Analysis-

Mostly employees agreed that they were provided trainingsbut beside that they also replied that level of training was not up tomark ,they rated 2 and 3 in agreement that they were providedtraining , also showing average score of 2.12 . they gave statements asfollowing –

• It was only the formality of training it dint enhanced skills, somereplied

• SMs should also be provided trainings and also our bosses betaught managerial skills.

• In the experience of 4 years joined only two times.

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• Statement 9-

Did you had continuous hectic work schedule

throughout.

• Analysis –

Most of the respondents responded on 3 followed by 2

slightly agreeing that they had hectic schedule , showing average

score like 2.61 showing their work schedule to be tight. They gave

statements like-

• Give at least time of one month to prepare IC report .

• Being employee in rural area it was not possible to give daily

attendance at office so being it main reason to leave BALIC.

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•Statement 10-Did you had harmonious relationship with your

colleagues at workplace.•Analysis –

Most of the employees strongly agreed that theirrelationship with their colleagues were very good rating at 1 followedby 2. Scoring average score of 1.75 with statements like;•We were very close to each other .•We had very good relations like familyz

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• Statement 11-Is work pressure main reason for you to leave

organization.•

Analysis –Mostly employees varied in responses either extremelyagreed or disagreed for showing results that work pressure wasmain reason for Sis or DMCs to leave BALIC , showing averagescore of 2.84.

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• Statement 12 -

Did you had autonomy of your own self to take

decisions in your organization.

• Analysis –

Mostly responses from employees are rated on 4 showing their

that they were not provided autonomy to take decisions of their

own their rating ranged from 4 followed by 3 and 2 , also showing

average score of 2.81 , they stated as ;

• Not at all , our boss used to treat us as dogs .

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• Statement 13 -

Were you able to communicate directly to your boss

regarding your professional problems.

• Analysis –

Mostly employees rated at 1 followed 2 showing that theywere able to communicate their problems directly to their boss , also

showing the average score of 2.18 , they gave different statements

like;

• Yeh I Used To Share Each And Every Either Personal Or

Professional Problem With My Boss.

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Average scores in form of chart -

Now showing here therepresentation of all 13 statements in a graph in the form of average

scores clearly representing their problem area of employees as theirreason to leave BALIC. On the basis of this chart it is clearly visualizedthat the different 13 items holds different value.

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In the chart its clearlyshown that the statement 11 (is work pressure main reason for you toleave organization.) with the average score of 2.85 which clearlyshows that work pressure is the main reason for most of theemployees to leave organization , followed by statement 12 ( did youhad autonomy of your own self to take decisions in your organization)showing average score of 2.81 which shows that leadership style can

also be one of the causes to leave the organization, in statement 3( were you able to develop harmony between your personal andprofessional life ) also employees showed that they were not able todevelop harmony in their personal and professional life with theaverage score of 2.74 .

On the flip side we find that the employees showed positive attitudetowards statements like 10 (did you had

Harmonious relationship with the colleagues at workplace ) , with the

average score of 1.71 they agreed positively that their relationshipwith their colleagues was very good , followed by statement 1 ( wereyou clear about your role in your job ) they agreed here also that theirroles were clear to them with the average score of 1.73

Interpretation on the basis of dimensions

Here data will be interpreted on thebasis of 4 dimensions with its all sub dimensions .

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In this diagram its clearly shown

that the dimension of WORK LIFE BALANCE shows average score of

2.71 , which means that this dimension is most prominent where the

employees are dissatisfied , followed by the average score of 2.35 in

the dimension of JOB SATISFACTION with the average score of 2.82 in

its sub dimension and average score for statements 11 and 2.52 for

the statement 7 which shows that the employees felt more stressed

and under pressure which can be the main cause of their attrition fromthe organization .

On the other side we find that the

dimension of ORGANIZATIONAL CULTURE is the dimension where

employees were more satisfied with the average score of 1.71 and in

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its sub dimension i.e.; relationship with colleagues , here employees

are more which can be assumed that the employees are satisfied and

happy in the area of organizational culture but still one dimension of

organization culture i.e.; leadership style shows average score of 2.81

which tells that the relationship with the boss is not as good and it can

also be the cause of attrition for many employees assuming that it

could be cause of attrition .

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DISCUSSION

In this portion we willfind that each and every statement as well as dimension has beenclearly interpreted. In our project report we took four dimensions along

with its sub dimensions.

• Organizational Culture which includes in itself

a) Relationship with colleagues,

b) Leadership style,

c) Flow of communication.

• Job Satisfaction which includes in itself

a) Work Motivation,

b) Stress.

• Growth and Development which includes

a) Learning and development ,

b) Growth prospects.

• Work –Life balance.

In the same manner the four

dimensions were also randomized and scoring was done. WORK LIFE

BALANCE is the dimension where employees were more dissatisfied

and it could the cause of their attrition from the organization. As it

being the structured interview , process of collecting data in which

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detailed investigation was done with the employees . Among those

there was a case in which individual employee wanted leave from

organization in emergency as his sister was very serious and was

hospitalized , he had to go urgently but he was not provided leave so

he left the organization. He said he don’t have any grievances from the

BALIC, among those their was another case in which the employee

needed some financial help from the boss as he was to pay money foremergency operation of his wife but o help was provided to him so he

also left the organization.

As in dimension of job satisfaction it also

showed dissatisfaction, there are many cases in which employees

showed work pressure to be the main reason to resign or abscond.

Among many cases one case is being employee of Statistic Initiative

his working area is in Kaushambhi and working office is in Allahabad

and reporting office in Varanasi , so it becomes for hi hectic for him to

report daily and daily attendance was compulsory which was not

possible for him to report daily , and many other employees left due to

regulations of attendance. And many other employees want that the

time to prepare ICs should be provided

For 1 month .

In the dimension of

organizational culture leadership style is where employees weredissatisfied, there are many cases among them few are. In many cases

employees are satisfied and happy with BALIC but due to behavior of

boss they had to leave BALIC, in one case the boss was a main cause

to leave organization .He used to treat employees like dogs and uses

slangs for employees as well as for their family members .and also,

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provides no training and only shouts “Dhanda karo Dhanda” and even

used to cease checks of employees till they submit (full and final )if in

case they don’t give so he used to cease salary also. In one case it was

found that the BMs takes some amount of salary of SMs.

There was also one cause

which comes out after the analysis of detailed interview that

employees wanted the concept of psychological contract from the

organization . psychological contract is the unwritten contract between

a employee and his organization that if employee is doing something

for the organization so organization should also do something for the

employee and vice versa. as there are many cases where employees

said in words –

• Company should give commitment to employees.

If company could not complete the commitment so should not give

wrong commitment , it downs the trust level .

Among such cases one case is that the individual was top-5 performer

and he was told that if you complete 50 policies within a month then

you will be promoted from SM to SSM but his commitment was not

completed and he was promoted to the post of ASM by saying that

your performance was not good .

On the flip side the dimension

of organizational dimension i.e., its sub dimension Relationship with

colleagues was very good and they had very good and familiar

relationship with each other .

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Limitations

Here in this portion it

includes all the limitations which all were faced while conducting the

interview , they are as follows –

• As it being structured interview not to create biases as a result of

fatigues we were not allowed to include ore sentences.

• We were bounded due to length of questionnaire to include

dimensions like psychological contract and emotional labour.

• Random sampling failed as we were not able to contact all the

employees due to unavailability of their contact numbers.

• Data obtained could not be generalized to all Insurance sector.

• Contact was made only to front line managers .

• In such kind of survey its very difficult to get 100% correct

responses as individuals can attribute to organization for his/her

failure.

• Some individuals were not able to understand each and every

statements in questionnaire.

• Misinterpretation of the concept of statements.

• Due to busy and hectic schedule few gave fake responses.

• Individual differences in the collection of data.

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Conclusion

One of the biggest asset of

any industry or organization is its manpower. As this organizationBALIC deals in Insurance sector , so its main power is manpower to

launch new products , introduce to customers and even to attract the

customers towards our products .

Insurance sector is facing high

attrition rate because the rate at which its loosing its employees is just

the double of the rate at which they hire . in today’s scenario where

companies are fighting to combat global business competitions , and

struggling to survive , employee turnover becomes as double.

In today’s knowledge

economy, managing human resources has been the most difficult task

undertaking the project at BALIC I have learned about company

induction, attrition and causes of attrition that would not been learned

in books , because causes keeps on changing from organization to

organization.

This is not possible for any

organization to vanish the attrition rate for any organization but

human resources are taking steps to reduce the attrition rate. The

project captures the unique blend of causes of attrition for

organizations especially in Insurance sector with reduction in dumb of

employee turnover debt.

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In the end of the project it lies

the main cause of attrition in BALIC in the form of pie-charts and bar-

graphs and I received in very professional manner from BALIC ,

Varanasi . The learning experience I got during my entire project work

will really help me in my career throughout my life

With this from here I am

concluding y project report.

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Recommendations

Some recommendations which are

provided on the basis of the suggestions given by attired employees,

they are –

• Provide 1 month time to prepare ICs.

• Remove top-up policies.

• Give salaries in the hands of SMs and not in the hands of BMs.

• Should complete the psychological contacts of the employees , if

the organization provides.

• Daily attendance must be removed.

• Try to know the problems of ISOs and call them back as many still

want to rejoin the BALIC.

• Need to advertise in rural areas .

• Enhance growth prospects for statistic Initiatives.

• Provide managerial skills to the managers , as they are just

promoted on the basis of experience but they lack in possessing

managerial skills.

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• Enhance policies for grow of BALIC in rural areas and establish

more branches.

• Remove the concept of LG.

• Focus on rate of resignation in Sultanpur.

• Improve the level of training provided to the employees.

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References

*

* Books-

• “Human Resources in a Globally Competitive Business Environment”,

Wayne F. Cascio, Managing Human Resource, Tata Mc Craw Hill

Edition, pp: 26-29.

• Tests ,measurement and research methods in Behavioral sciences,

A.K.SINGH, 5th edition , Bharti Bhawan.

• Fundamentals of Human Resource Management , Decenzo D.A. &

Robbins Stephen P. , eighth edition, Wiley India 2009.

• Organizational Behavior , Lthans Fred , 11th edition , McGRAW HILL

International Edition .

• Training Instruments in HRD and OD, Pareek Udai,

• Communication in Organization , Fisher D. 2nd Edition ,JAICO Publishinghouse, 2007.

• garrett

* Websites-

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• www.google.com

• www.wikkepedia.com

• www.balic.co.in

• www.bajajauto.com

• www.bajajallianzlife.co.in

http://www.google.com/

http://www.wikkepedia.com/

http://www.balic.co.in/

http://www.bajajauto.com/

http://www.bajajallianzlife.co.in/

http://www.wikkepedia.com/

http://www.balic.co.in/

http://www.bajajauto.com/

http://www.bajajallianzlife.co.in/

http://www.google.com/

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