Amit

Deba

Dutta H

ota

Rishi s

ingh

shabir

INTRODUCTION

Defining attrition: "A reduction in the number of employees through retirement, resignation or death“

Formula for calculating attrition level The basic formula for calculation of Attrition is as below:

(No. of employees attrited in the year)/ (Average headcount for the year);

Where, average headcount for the year = (opening headcount + closing headcount ) / 2.

CAUSES OF ATTRITION• There are many causes for attrition

including, retirement and death. However, most attrition is due to employee turnover. Employees leave their jobs for a number of reasons including: wanting more money, poor working conditions, irregular working hours, lack of advancement opportunities, lack of job security, difficulties with coworkers, desire for change, better opportunities, and family reasons…..

HOW TO MANAGE ATTRITION LEVEL?• One of the biggest costs for most employers in today's

market place is recruitment of quality staff. In order to reduce this cost every organisation should have in place staff retention action plans.

• Introduce career planning and coaching before a valued employee thinks of moving on to other company..

• Review values and culture of organisation to improve environment.

• Review recruitment process to ensure that the right skills base is being recruited and match to profiles of employees who are add value to the organisation.

INDIA CONTEXT….• Employee attrition is about 20-30 per cent

across industries (Source – CII)• Average Attrition Rate in BPO sector is

hovering around 35% in FY 2007. • Average Attrition Rate in BFSI sector rose

from 32% in FY 2006 to 44% in FY 2007. • The manufacturing sector is also facing an

Attrition Rate of 20%.

WORLD WIDE ATTRITION

Attrition rates in IT-enabled business process outsourcing sector have come down from the 30-33 per cent being witnessed of late to about 25 per cent now, according to statistics compiled by the National Human Resource Development Network.

Attrition rates in % :- US 42% Australia 29% Europe 24% India 18% Global Average 24%

Attrition rates in Indian FMCG Sector

• The Indian FMCG sector demonstrated a steady rise in the attrition rate over the past three years. The attrition rate was 9.8 % in 2004. It moved up to 10.8 % in 2005.

• In 2006, the attrition rate became 17 %. The major companies in FMCG sector are Asian paints, Britannia, Colgate, Cadbury, HLL (HUL), ITC, Marico, Nestle, P&G, Palmolive, Pepsi, etc.

Attrition Rates in IT Sector

• IT-ITES industry recorded US$ 39.6 billion in revenues in 2006-07. The revenue of US$ 49-50 billion has been projected in 2007-08 at a growth rate of 24-27 per cent. The IT industry's contribution to GDP was 4.8 per cent in 2005-06. Though the IT sector is booming, it is constantly facing high attrition rates of 25% - 30%. Even the big brands are also facing the same problem.

ATTRITION RATE IN DIFFERENT IT COMPANIES

InfosysAttrition at 11.6%,Total Employee Strength 109,882,Net Addition this quarter 44,29

TCSAttrition Rate – 11.5% ( IT Services – 10.8%, BPO – 18.3%)Total Employee Strength 143,761Net Addition 7,692

WiproAttrition Rate – IT services – 14.3%, BPO – 15%)Total Employee Strength 102,746Net Addition 4,855

Cognizant:Attrition Rate: 11.2%Total Employee Strength: 73,400Net Addition : 10,300 ( includes UBS acquisition)

Genpact:Attrition Rate: 23% ( Pure play BPO firms have higher attrition)Total Employee Strength: 38,600Net Addition : 2,400

iGate

Attrition Rate:Total Employee Strength: 6,910Net Addition : 530

HCL Technologies

Attrition Rate: IT Services – 12.8%, BPO Services – 21%Total Employee Strength: 55,688Net Addition : 1,691

EXL Services

Attrition Rate: 22.6% ( billable)Total Employee Strength: 10,736Net Addition : 243

WNS

Attrition Rate: 31% ( Pure play BPO firms have higher attrition)Total Employee Strength: 21,392Net Addition : 149

Syntel

Attrition Rate: 11.2%Total Employee Strength: 12,567Net Addition : 1,080

The 9 best companies to work for (in India)

Google

• Founded by Larry Page and Sergey Brin, Google hosts and develops a number of Internet-based services and products, and generates profit primarily from advertising through its AdWords program.

• Eric E Schmidt -- Chairman and chief executive officer• Sergey M Brin -- Technology president• Lawrence E Page -- Products president• Revenue: $23.65 billion (2009)• Profit: $6.52 billion (2009)• Employees: 20,621 (2010)

MakeMyTrip India

• The pioneer of online travel in India, Deep Kalra founded MakeMyTrip in April, 2000.

• MakeMyTrip has become the largest online travel company, as well as the largest e-commerce business in India.

• Deep Kalra, founder, MakeMyTrip

Intel• Intel, which was founded on July 18, 1968, as Integrated

Electronics Corporation, also makes motherboard chipsets, network interface controllers and integrated circuits, flash memory, graphic chips, embedded processors, and other devices related to communications and computing.

• Paul S Otellini -- chief executive officer• Craig Barrett -- chairman• Revenue $35.13 billion (2009)• Net income $4.369 billion (2009)• Employees 79,900 (Q1 2010)• Intel has offices in Andhra Pradesh, Bengaluru and

Chandigarh, and has field sales offices in various other states

Marriott

• Marriott hotel chain completed 10 years in India in 2008. It has hotels in Mumbai, Goa, Hyderabad, Pune, Gurgaon, Ahmedabad and Chennai.

• By 2012, the chain is expected to expand its Indian operations to encompass 30 properties in the luxury sector to the upper-moderate tiers, with a total of 5,524 rooms.

• These hotels would be managed under its five brands - Ritz-Carlton, JW Marriott Hotels, Marriott Hotels & Resorts, Renaissance Hotels and Courtyard by Marriott.

• Goa Marriott Resort is their first hotel in India.• The company is well on its way to meet its goal to reduce

greenhouse gases by 6% per guest room by 2010.

NetApp

• NetApp was founded in 1992 by David Hitz, James Lau, and Michael Malcolm. The Sunnyvale California-based company's India offices are in Bangalore, Mumbai, Pune and Delhi.

• Tom Georgens -- president and chief executive officer• Revenue: $3.5 billion (FY'09)• Employees: Over 8,000 employees in more than 135 offices

worldwide• Number 7 on Fortune magazine's 2010 "Best Companies to

Work For" list• Member of S&P 500 and NASDAQ 100

American Express Company

• Founded in 1850 by Henry Wells, William Fargo and John Warren Butterfield, it is one of the 30 components of the Dow Jones Industrial Average. The company is best known for its credit card, charge card, and traveler's cheque businesses.

• American Express operates in over 130 countries around the globe. Learn more about our presence throughout the world.

• Kenneth Chenault: chairman and chief executive officer• Revenue: $26.7 billion (FY 2009)• Net income: S$2.13 billion (FY 2009)

PayPal

• PayPal has quickly become a global leader in online payment solutions with more than 153 million accounts worldwide. Available in 190 markets and 24 currencies around the world, PayPal enables global ecommerce by making payments possible across different locations, currencies, and languages.

• Located in San Jose, California, PayPal was founded in 1998 and was acquired by eBay in 2002.

• Each floor of the six-level PayPal facility in Chennai has rooms named after Indian monuments, rivers, national parks, musical instruments and great heroes.

• Scott Thompson - president• Raj Sundaresan - vice president

Ajuba

• With over 1500 employees globally, Ajuba is headquartered in Charlotte, North Carolina and has additional operational centers in Michigan, Illinois and Chennai, India. It was founded in India in 2000.

• Devendra Saharia - president• Employees - 1612

SAS Institute India

• SAS has been in India since 1997 and consists of a strong team of over 350 highly-qualified technology and domain experts helping customers address their business challenges through effective use of Business Intelligence.

• Sudipta K Sen - CEO and managing director, SAS India• SAS also has an R&D Centre in Pune. The R&D centre

in India is a key resource arm for the global SAS community and focuses on R&D and Industry Intelligence Solutions Development.

CONCLUSION

Words like attrition, retention and job switch which had become taboo since almost two years ago are making noise yet again. The employees who were waiting for the economy to bounce back before jumping boats are busy again. With the IT market slowly picking up and hiring all set to increase in 2010, the cheer is back on employees face and the HRs are worried again to retain their key employees.