“a Study on Attrition in It Sector”

Topics: Management, Customer attrition, Human resource management Pages: 33 (8407 words) Published: March 24, 2012





The software Industry is now a days a benchmark for the other industries in India, but just like the way its profits are increasing every year, many more problems are also coming into its way. The role of HR is now becoming more and more complicated and essential in the Software Industry, which has a very high employee turnover or high attrition. HR personnel are trying their best to curb this high rate. Human capital is the only asset of the software industry, and the realization of the same is very critical.

The most immediate concern facing the industry is the increasing levels of attrition. Other than the natural rate of the attrition, “poaching” of employees, “burn out” and high stress environments are causing an increasing churn rate. Managing attrition is becoming increasingly important, but also staffing costs are one of the largest expenses regularly charged to the budget of a company in the software sector. When one counts salaries, benefits, bonuses, training and other personnel costs, companies invest a great deal of resources in their employees. Thus, attrition becomes a two-fold issue, one that’s cost related and the second, retaining much needed and often, experienced talent.

This report seeks to utilize primary research, with the help of primary and secondary data in order to offer a greater understanding of the complex issues raised by staff attrition. Also this report aims to find some solutions and give suggestions to reduce attrition. Specific aim of this report is to:-

1. Identify trends in leavers’ behavior and the reasons employees change jobs/organizations.

2. Identify the employee’s perspective on employee’s reasons for leaving.

3. Identify retention strategies that have a positive influence on retention, or at least leave current and former staff with a positive view of the organization.

4. Understand the designation at which the employees tend to leave, their period of stay in HCL Technologies, TCS, Infosys, Tech Mahindra, Wipro, Perot Systems, Adobe India, Satyam, Convergys and HSBC and the average length of notice period given by them.

Why do the employees leave

A significant difference was established between what employers assumed were key causes of turnover, and the actual reasons employees gave for leaving. Employers largely failed to take into account the importance of providing opportunities for development for their employees. This was three times as important as any other factor in employees decisions to change jobs. The top 3 causes were:-

1. Lack of opportunities for personal and career development.

2. The role and responsibilities given to them in the organization, their profile.

3. Salary and benefits.

What can employers do to minimize the incidence of, and impact of employee turnover

1. Developing an employee retention strategy involves three stages:-

2. Identify the level and cost of turnover and benchmarking it against competitors.

3. Understand why employees leave

4. Implement retention strategies

Having identified the reasons of why employees leave, there are a number of specific retention strategies available to employers. An effective retention strategy therefore will seek to ensure:-

1. Attraction and recruitment strategies enable selection of the ‘right’ candidate for each role/ organization.

2. New employee’s initial experiences of the organization are positive.

3. Appropriate development opportunities are available to employees, and that they are kept aware of their likely career path with the organization.

4. The organization’s reward strategy reflects the employee drivers.

5. The leaving process is managed effectively.


The basic idea of doing this project was to analyze...
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