Hr project

A

Project on

Employee Attrition and Retention at Protiviti

Master of Business Administration

(Human Resource Management)

Submitted in partial fulfillment of the requirements for

award of

Masters of Business administration

Tilak Maharashtra University, Pune.

Submitted By

Razina Bakhshi

PRN NO: 07209007836

Ansal Institute of Technology,

Gurgaon

Guided by Ms. Pooja Sareen

Tilak Maharashtra University

Gultekdi, Pune – 411037

1

Tilak Maharashtra University, Pune(Deemed Under Section 3 of UGC Act 1956 Vide Notification

No. F.9-19/85-U3 dated 24th April 1987 By the Government of India)

Vidhyapeeth Bhavan, Gultekdi, Pune-411037

CERTIFICATE

This is to Certify that the project titled __________________________________ is a bonafide work carried our by Mr./ Ms. ____________________________ a student of Master of Business Administration Semester 3rd, Specialization ____________________PRN.__________________ under Tilak Maharashtra University, in the year 2010.

Head of the Department ExaminerExaminer

Internal External Date:

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Place: University

ACKNOWLEDGEMENTS

I take this opportunity to express my sincere and heartfelt gratitude towards Ms

Bhawana Pandey, Head HR, Protiviti for giving me the opportunity to complete my training at

Protiviti., her contribution has been outstanding, in regards to invaluable advice on all aspects of

the project. She stood as an embodiment of inspiration during my entire project within the

company. I am also thankful to her for showing confidence in me and providing this opportunity.

I also express my gratitude to Faculty Mentor, Ms. Pooja Sareen, Faculty of

Management, under whose guidance I completed this project. She imparted her knowledge and

guidance to me in the field of Human Resource and her support throughout my project

completion. Her guidance and active support has made it possible to complete the assignment.

I would also like to express my thanks to Prof. R.K Yadav, Dean,Center of corporate Relation,

Ansal Institute of technology for giving me an opportunity to gain practical knowledge about

corporate working through this project.

Lastly special thanks to my family members for being extremely supportive during my training

period.

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INDEX

1. RATIONALE OF THE STUDY…………………………………5

2. OBJECTIVE OF THE STUDY………………………………….8 TITLE OF THE PROJECT OBJECTIVE OF THE STUDY SCOPE OF THE STUDY

3. COMPANY PROFILE…………………………………………..10

4. REVIEW OF LITERATURE…………………………………..18

5. RESEARCH METHODOLOGY……………………………….29 RESEARCH DESIGN DATA COLLECTION METHODS SAMPLING PLAN

6. DATA ANALYSIS & INTERPRETATION……………………33

7. FINDINGS……………………………………………………….60

8. LIMITATIONS………………………………………………….62

9. RECOMMENDATIONS AND SUGGESTION…………………………………………………….64

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APPENDIX

CHAPTER 1

Rationale Of the study

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Attrition is a universal phenomenon and no industry is devoid of it, but the degree fluctuates from industry to industry on the basis of their capacity to manage low attrition rate. Attrition not only affects the quality of service, but also leads to increased expenditure on training and development, thereby affecting the overall organizational performance. Several companies are trying out different ways to manage low attrition rate. Be it an IT sector, or BPO, they are trying out their ways to manage lower rate of attrition by creating a healthy work environment, work-life balance, corporate brand building and so on.

There is a famous Chinese proverb which says that

“If you want returns for 1 year, invest in crops.”

“If you want returns for 10 years, invest in trees.”

“But if you want returns for 100 years, invest in people”

Yes, it is the people who hold key to success in today’s highly competitive world. With

increasing attrition levels, it is necessary to have creative retention strategies.

“PEOPLE” is the most important and valuable resource every organization has in the form of its

employees. Dynamic people can make dynamic organizations. Effective employees can

contribute to the effectiveness of the organization Competent and motivated people can make

things happen and enable an organization to achieve its goals.

Organizations like Protiviti have now started realizing that the systematic attention to human

resources is the only way to increase organizational efficiency in terms productivity, quality,

profits and better customer orientation.

HR can help deliver organizational excellence by focusing on learning, quality, teamwork, and

through various employee friendly strategies.

Call it short-sightedness, but the fact is that the country's professionals, between 21 and 30, join

consultancy industry today and quit, in a few weeks to join another. There's a backlog of projects

in most departments as the employers lose their employee base. But what causes this high rate of

employee turn-over in consultancies? What are the reasons behind this rapid erosion of loyalty

factor? Should this be left untouched and unanswered? Can anything be done about it? We are

trying to find out solutions to all the above questions.

Staff attrition (or turnover) represents significant costs to most organizations. It is odd, therefore,

that many organizations neither measure such costs nor have targets or plans to reduce them.

6

Many organizations appear to accept them as part of the cost of doing business - a sign of

increasing job mobility and decreasing staff loyalty perhaps, a matter to be regretted but just 'one

of those things.' They add a sum in their budgets for 'temp staff' and 'recruitment' and forget

about it.

However, it seems to be one of the areas in which HR can make a difference - and one that can

be measured in quantifiable, financial terms against targets.

An attrition rate in consultant Industry has become legendary. Indeed, the attrition rates in some

Indian consultancies now reach 70%. This is an extreme figure but the average attrition rates in

Indian consultancies are up around 30-40%.

Today with a lot of MNC’s coming in India, the amount of competition has increased to such an

extent that organizations have further aggrieved their stress on proper man management. Along

with being competitive, the MNC’s have brought in a systematic approach to HR with the help

of technology utilization.

This project has been accomplished in one of such MNC’s – Protiviti A global consulting and

internal audit firm specializing in risk and advisory services. Protiviti was facing a high rate of

attrition especially as the industry is recovering from downturn. Employees are coming across a

lot of job opportunities which tempt them to give a second thought to switching over a new job.

Hence my study in protiviti gurgaon gave me an opportunity to understand attrition trend and

reasons why employees leave an organization even though organizations put a lot of effort to

retain them in the organization. Hence this fact motivated me to analyze measures which could

be taken and are being taken to maintain the loyalty of employees towards organization.

Therefore the overall purpose of this research report is to assess the gap between expectations

and experiences, from the employee perspective.

7

http://en.wikipedia.org/wiki/Internal_audit

CHAPTER 2

Objective of the Study

8

Title of the Project

Employee Attrition and Retention at Protiviti

Objective of the Project

To evaluate the present level of attrition by highlighting the formulae used by

organization in calculating attrition rate

Critically analyze the causes and consequences of employee attrition.

To recommend measures so has to enhance the level of retention after analyze.

Scope of the Study

To study tools and technology used by Protiviti to calculate attrition rate and tool and techniques

used by organization for retaining its employees. The purpose of this study is to examine, at the

firm level, variables that have been linked to employee turnover in micro level investigations.

Four categories of variables are considered:

firm characteristics,

firm setting,

work force characteristics, and

benefit practices

Thus, at Protiviti the issue is to analyze the attrition trend and the measures which can be taken

by the organization to deal with the problem. The study was conducted in all the different

departments of protiviti randomly selecting 50 employees to get an overview of the reasons of

attrition.

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CHAPTER 3

Profile of the Company

10

Protiviti

Protiviti is a global consulting and internal audit firm specializing in risk and advisory services.

Protiviti customers are in the areas of finance, operations, technology, litigation, and governance,

risk and compliance. Protiviti has offices in 61 major markets, with 33 in the United States and

28 in the Americas, Asia-Pacific and Europe. The firm also has risk consulting partnerships with

firms in Abu Dhabi, Caracas, Dubai, Jakarta, Kuwait and Lima.

HistoryThe company was established in 2002 when Robert Half International, Inc. agreed to hire

approximately 800 workers formerly with Arthur Andersen LLP, including more than 50

individuals who had been Partners at Andersen. These workers had been affiliated with the

internal audit and business risk consulting practices of Andersen, which were operated separately

from Andersen’s attestation and external audit services. These employees formed the base of

Protiviti. As of today protiviti Inc has more than 2900 professionals based in more than 60

offices worldwide providing on location services, technologies and skills to clients all over the

world.

Protiviti is a wholly owned subsidiary of Protiviti Inc. in India. The Parent company of protiviti

Inc. is Robert Half International Inc.(RHI)

RHI was founded in 1948 and is the world’s first and largest specialized staffing firm. It is also a

recognized leader in professional staffing and consulting services. RHI is listed on the New York

Stock Exchange.

Protiviti Inc is a company incorporated in USA. As a wholly owned subsidiary of RHI, Protiviti

Inc has grown to become the leading international provider of independent internal audit,

business and technology risk consulting services. Protiviti Inc help companies worldwide

identify manage and measure operational and technology risks they face within their industries

and throughout their system and processes. The firm also offers a full spectrum of internal audit

services, technologies and skills for business risk management and continual transformation of

internal audit functions.

11

http://en.wikipedia.org/wiki/Arthur_Andersen

http://en.wikipedia.org/wiki/Robert_Half_International

http://en.wikipedia.org/wiki/Internal_audit

Protiviti has dedicated itself to combine Protiviti Inc’s project management skills and internal

audit experience with RHI’s proven expertise in specialized staffing with the view to providing

clients in Asia with process and technology improvement options never before available in the

world of traditional internal audit services. Protiviti also aims to help clients in Asia Seize new

opportunities for growth and profitability through effective risk management.

Branding

The name of the company is a coined term that supposedly communicates the “key brand

attributes” - professionalism and proactivity as well as independence and integrity. The unique

spelling with three "i's" represents "Independence," which is perhaps the most important

concept.”

Services

Protiviti services provide “the necessary business process, technology and specialized skills to

address challenges related to financial and operational risk management; technology risk

management and effectiveness; GRC; and litigation, investigations, turnaround and

restructuring.”

These solutions include:

Finance & Accounting Excellence

Risk & Compliance

Internal Audit & Financial Controls

Litigation, Restructuring & Investigative Services

Cost & Working Capital Optimization

Information Technology Effectiveness & Control

Protiviti also serves clients in the following industries:

Consumer Products & Retail

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http://en.wikipedia.org/wiki/Neologism

Energy & Utilities

Financial Services & Real Estate

Healthcare & Life Sciences

Manufacturing, Distribution & Technology

Hospitality

Communications

Public Services

Acquisitions: Millstones in the successful growth of Protiviti

2005

Protiviti acquired the Lender Advisory Services (LAS) practice from “RSM McGladrey” and

integrated it into its Credit Risk practice.

2006

Protiviti acquired Canada-based Creative Options and Radius, two companies that specialized in

the retail sector with a focus on loss prevention and employee awareness and training programs.

Protiviti acquired P.G. Lewis & Associates LLC, a data forensics firm specializing in corporate

investigations and litigation support.

Protiviti announced that it had consolidated its public sector operations into a wholly owned

subsidiary, Protiviti Government Services, Inc., and that this subsidiary had acquired “Enspier

Technologies, Inc.”, a company providing technology and management consulting services

primarily to government organizations.

2007

Protiviti acquired PENTA Advisory Services, LLC, whose specialties included restructuring and

insolvency services, litigation services, and bankruptcy-related tax and accounting.

13

http://en.wikipedia.org/wiki/RSM_McGladrey

Clientele

The firm’s clients include more than 35 percent of all FORTUNE 100 companies, more than 25

percent of all FORTUNE 500 companies and more than 20 percent of all FORTUNE 1000

companies.

Protiviti Offices are located worldwide:

United States

Asia Pacific

Europe

Affiliations and Collaborations

A

..

.

14

http://en.wikipedia.org/wiki/Fortune_1000

Mission Statement

Protiviti’s mission statement is to constantly improve how business manages risk.

Vision

Protiviti’s vision is to be recognized as the premier global risk consulting and internal audit

service company.

Protiviti Core Values

Professionalism:

To be highly competent, honest, considerate, organized, polished and polite.

Productivity:

Protiviti gets things done and have a bias for action.

Proactivity:

They seek new opportunities to add value, make a difference, meet and exceed client

needs.

Objectivity:

Protiviti consider multiple viewpoints before acting or deciding.

Creativity:

Unconstrained but reasoned thinking.

Integrity:

Protiviti Believe in doing the right thing even if it may compromise our short term

profitability.

15

Recognition:

Protiviti Awards (United States)

National

Recognized by The Black Collegian as one of the “Top 100 Employers for the Class of

2009” (2009)

Recognized by Business Week for three consecutive years as one of the "Best Places to

Launch a Career" (2006-2008)

Recognized by Business Week as a company offering one of the "50 Best Internships"

(2007)

Regional

Named one of the “25 Best Places to Work” by Baltimore Magazine (2009)

Named a "Best Place to Work in Los Angeles" by the Los Angeles Business Journal

(2008)

Named one of "Chicago's 101 Best and Brightest Companies to Work For" by the

National Association for Business Resources (2008)

Named a "Best Place to Work in Houston" by the Houston Business Journal for two

consecutive years (2007 & 2008)

Named a "Best Place to Work in Tampa Bay" by the Tampa Bay Business Journal for

two consecutive years (2007 & 2008)

Named a “Best Place to Work in South Florida” by the South Florida Business Journal

(2008)

Received an "Honorable Mention" in the Phoenix Business Journal’s "Best Places to

Work in the Valley" contest (2007)

Named a “Best Place to Work in Western Pennsylvania” by the Pittsburgh Business

Times (2007)

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Named a “Best Place to Work in Dallas” by the Dallas Business Journal (2006)

Hierarchical Model of Protiviti

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Chapter 4

Review of

literature

This chapter reviews literature relevant to the research objectives. It specifies the abstracts of

research conducted by eminent researchers with regards to the same topic.

Cotton & Tuttle(1986),in their book “Employee Turnover –A meta analysis and review”

presented a review on turnover at the individual- or job-level analysis, examining the cognitive

processes that precede a jobholder's decision to leave a firm at the firm level, has been typically

examined the dysfunctional consequences of turnover, particularly its costs for employers. But

Dalton, Krackhardt, & Porter (1981) in their book “Research in Organization behavior” have

argued that some employee attrition is functional (e.g.,; Dalton & Todor, 1979, 1982). They

reason that employees who quit because of a recognized lack of fit between their abilities and job

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demands save managers and firms from further investment in efforts to provide training.

Moreover, more costly senior employees can be replaced with less expensive, albeit often less

experienced, junior employees.

Dalton, Krackhardt, & Porter further states that regardless of the reason, turnover clearly is

consequential for organizations. It has been suggested that some solutions to problematic

turnover may be linked to the manipulation of organizationally controlled variables. Further,

turnover can be conceptualized as a behavior that is embedded in the context of a firm and its

environment, indicating that an understanding of context is critical to an understanding of the

behavior. Thus an argument can be made for the importance of examining turnover as a firm-

level variable. There are, however, few published studies that take such a perspective. This void

has been previously identified by Baron and Bielby (1980), in their paper presentation “Structure

and opportunity” presented at Academy of management annual meeting at Stanford University

who argue that firm-level research provides the necessary bridge between investigations

conducted at an economic or industrial sector unit of analysis and research at the job or

individual level. Recently, Cappelli and Sherer (1991) in a research conducted on “ A firm level

analysis of attrition” made a similar argument, suggesting that there has been little success in the

past decade at building bridges between macro- and micro levels of analysis.

Employees today are different. They are not the ones who don’t have good opportunities in hand.

As soon as they feel dissatisfied with the current employer or the job, they switch over to the

next job. It is the responsibility of the employer to retain their best employees.

“Any attrition in any form is bad for an organization. It means that a wrong choice was made at

the beginning" says NR Ganti Chairman and MD, SQL Star International.

Studies from the Gallup organization (2009) show that employees who have an above-average

attitude toward their work will generate 38 percent higher customer satisfaction scores, 22

percent higher productivity, and 27 percent higher profits for their companies.

High attrition implies that certain necessary skills are vulnerable or are not present due to

employees being lost" says Vikram Bhardwaj, Managing Director, Redileon

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A survey from NAUKRI says, Employees do not leave an organization without any significant

reason. There are certain circumstances that lead to their leaving the organization. The most

common reasons can be:

Job is not what the employee expected to be

Job and person mismatch

No growth opportunities

Lack of appreciation

Lack of trust and support in coworkers, seniors and management

Stress from overwork and work life imbalance

Compensation

New job offer

According to a survey conducted by Greg Weiss, who is an HR consultant and principal of

Human Management, in extensive interviews with HR directors at 30 companies found that most

companies have little real understanding of why employees leave. The statistics of his survey are

as given below to understanding the importance of various reasons for exit.

Reason for exit % of respondents

Employee 08.03%Supervisor or line manager 38.15%

Compensation & Job Profile 53.82%

Present Scenario of Attrition trend

The recovery of the economy after the recent global recession has not only put the Indian

consultancy industry on the path of fast growth, but also led to a high rate of attrition. As

employees discontent with their pay pack are seeking greener pastures, most consulting firms are

forced to launch a fresh recruitment drive to fill in the vacancies as well as enhance their

workforce in the face of increased demands for their services globally.

21

ABC Consultants CEO, Shiv Agarwal said that the trend was first noticed when the economy

began to recover from the worst ever global recession that plagued the world for two years, as

professionals were seeking big leaps in their career. Employees are changing jobs because they

feel that they have not been treated well by their companies during the recent economic slump.

Consultants and HR directors alike agree that attrition rates in the consulting industry are likely

to worsen in 2010-2011, according to the latest in-depth industry survey from Top

Consultant.com

Top-Consultant.com director Tony Restell commented: "These staff loss figures explain why

recruitment has become the number one issue for consulting firms. Most major brands are

winning work at fee rates that are far less profitable than during the last consulting boom. This

has meant they've been unable to reward staff across the board with major pay rises and sizeable

bonuses. The knock-on effect of this is that many consultants are now seeing a move to a

competitor as the most likely way to enhance their earnings in the coming year. Most are not

leaving the industry altogether – simply moving from one consulting employer to another. But

the implication for consulting firms is that they need to hire 15%-20% of their existing

headcount over the next year, just to stand still."

Consultancy Industry is the backbone of the corporate world and provides a host of services,

from auditing to business and tax advisory.

With Indian economy growing fast, business is flourishing for professional services firms like

KPMG, PricewaterhouseCoopers (PwC), Ernst & Young and Deloitte, leading to scramble and

in turn poaching for experienced professionals, with huge bonuses and lucrative promotions.

Conceptual Understanding:

WHAT IS ATTRITION?

Attrition has been a major concern for most of the companies in the current competitive scenario.

The word Attrition means, a reduction in the number of employees through resignation or separation at the employees will. Retirement, VRS and employee leaving due to end of contract are not considered as attrition.

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Attrition rate is the rate of shrinkage in size or number. It is the mathematical representation of the attrition in a particular organization or an institution.

Attrition leads to dual loss to an organization:

Firstly, company loses on a talent and thus costs incurred on them are a waste. Secondly it employees a new employee and thus needs to incur costs on them.

Cost Incurred due to attrition

Thus the following costs:

A. Recruitment costB. Training and development costC. Administration cost

Types of Attrition

Market Driven Based on the demand for a particular skill. The typical initial reaction by employers to market driven attrition is to increase wages, offer better benefits, escape the market by relocation or site migration or relax hiring standards.

Workload or Stress Driven On the actual capacity to perform the work required. This is when there are not enough of the people.

Process Driven 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 always will be there. Addressing this scenario produces the most lasting results.

ATTRITION AT PROTIVITI:

Protiviti is an internal audit and risk consulting firm and thus attrition is a major concern. As

very well known, salary has always been a major issue in almost all the sectors. But apart from

the salary issues there are many reasons why people resign. Some of these are

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1. Performance goals are unclear. In a fast growing team or business the focus is on getting

the thing done today, but rarely are performance goals thought through and employees told as

to which resources to approach for help.

2. Development is always tomorrow's job. Culturally Indians are focused on learning. If

learning adds value only to the job and not to the overall career goals of the individual then

the organizations seems too transactional for the employee

3. The personal touch is missing. How comfortable are managers building personal bonds

with their subordinates? A lot of managers shy away fearing a bond will make delivering

hard messages difficult. I would argue that it's the other way round! Knowing employees on

personal level makes a manager know their strengths and weaknesses. Work allocation and

employee development become easier.

4. Reward systems are not transparent. Most employees who get salary increases because

they have a rare skill at a particular point of time think they got their raise for excellent

performance. Can you share details about how they have been compensated?

5. Perceived equity of reward systems is low. Like it or not, employees discuss salary details

and if there is any perceived lack of equity then you have an issue !

6. Goal setting process is not scientific. Most organizations impose a normal curve fitment,

but do not train managers to set realistic goals or goals that tie up with organizational or

functional goals.

In order to understand the reasons for attrition at Protiviti a classification of the data is done and

represented in the form of various tables and charts.

The following data shows the attrition trend at Protiviti

Attrition Analysis (Level Wise)

Number of Leavers in 2010 by Position

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Job Title No of people left

Total no of people Attrition % level wise

Senior Consultant 4 20 3.1%Consultant In charge 11 28 8.5%Consultant 5 28 3.8%Support 2 16 1.5%RTS 4 15 3.1%Grand Total 26 107

Analysis:

42.30% of all leavers are at consultant In charge level. They however have the second longest

average of length of service. This indicates that there is a thrust for speedy growth in terms of

level of designation from consultant in charge to senior.

X axis represents no of employees who left organization

Y axis represents designation of employees who left organization

Attrition Analysis – (Tenure wise)

25

No of leavers in 2010 by tenure

Analysis:

Highest no of

people left

between the work tenure of 1year.

Since they were at the initial level of their career and had an average experience of 1.52 years.

This may indicate that employees were motivated to take other job offers which they would have

felt may provide them with better growth and compensation.

Attrition Analysis – (Location wise)

26

Range(mths) No of ppl left Average experience

0-6 8 2.2276-12 8 0.8212-18 6 0.6118-24 5 1.424-30 1 0Total 28

No of leavers in 2010 by Location

Location No of people Left Attrition%Gurgaon 18 13.9%Mumbai 11 8.5%Bangalore 1 .77%

Analysis

Gurgaon showed the highest attrition rate of 13.9% while Bangalore showed the lowest with

0.77%. This factor may indicate that employees were dissatisfied with the working condition or

the compensation packages because none of them were relocated while all of them gave

resignations.

X axis represents No of employees

Y axis represents location

Monthly Attrition Rate

27

Leavers in 2010(Month wise)

Month No of employees Attrition%January 2 1.5%February 5 3.87%March 9 6.9%April 11 8.52%May 2 1.55%Total 29

Analysis

Protiviti experienced a gradual increase in attrition rate with 1.5% in the month of January till

April with 8.52%.But later in the month of may it again experienced a decrease in attrition rate

with 1.55%

28

Calculation of attrition Rate of Protiviti for 2010

Formula used by the organization

No of resignations / (Employee strength at the start of period +new joiners-

resignations)

No of resignations=31

No of present employees=129

Hence

Attrition Rate = 31/129*100

=24.03%

29

Chapter 5

Research Methodology

30

Research Process

Review of Literature

FF

FF: Feedback

31

Define Research Problem Review previous

research findings

Research Concepts and

Formulate Hypothesis

Design Research (Including sample design)

Collect Data

Analyze data (Test hypothesis if any)

Interpret and report

Research Methodology:

It is a way to systematically solve the research problem. It may be understood as a science of

studying how research is carried on. It is we study the various steps that are generally adopted

by a researcher in studying his research problem along with the logic behind it. Hence I used

Qualitative and Quantitative approach. where qualitative approach gave me freedom to analyze

the attrition data of the company quantitatively while Qualitative approach helped in assessment

of attitude, opinion and behavior of employees.

Research Design

This study is an exploratory research, which is an attempt to provide insights into attrition trends

and practices followed at protiviti, Gurgaon. The study is basically an analysis of the employee

attrition and measures adopted to retain them in the organization. In this study representatives of

employees working in different departments have been selected randomly.

Data Collection Methods:

The study relies on both primary and secondary data i.e. data collected afresh is referred to as

the primary data and secondary data thereby meaning reviewing literature and data already

available on the subject.

PRIMARY DATA:

The source of data collection was a questionnaire (for the primary data). The data was collected

by using structured questionnaires as well as interviewing the representatives from the

employees.

Primary data was collected from the consultants, Consultant Incharge & support ie HR, Finance

and administration department with a help of a survey was conducted among 50 employees using

hypothetical statements.

SECONDARY DATA:

32

The secondary data was collected from the organizations manuals, journals, books and

brochures. For the theoretical overview various books on Employee Attrition & Retention were

consulted. Internet has played a major role in finding facts related to the study of the project.

Data Analysis:

The response gathered by interacting with each respondent through questionnaires was then

tabulated in the form of raw data chart i.e. through Bar Graphs and then the data was analyzed on

the basis of which the interpretations were made.

After analyzing the interpretations the relevant findings and recommendations were arrived at.

Sampling Plan:

This project is based on random sampling. In this project the respondents as well as the

Departments from where the samples were to be selected were chosen in such a manner so as to

ensure that collection of the data could be as effective and efficient as possible. For the same I

decided to pick representatives from all Departments to cover as many people for the research

ensuring that the results therefore achieved would be appropriate and accurate.

Sampling Unit: Employees of Protiviti.

Sample Size : 50.

Sample Method: Random Sampling.

Sample Place : Protiviti, Gurgaon.

Target Group: All non managerial staff ie consultants who can project the

accurate picture of consultancy industry

The scope of the project extends to all the employees at Protiviti Gurgaon.

33

Chapter 6

Data Analysis and

Interpretations

34

Statement 1

Employees give maximum importance to compensation package in their job

H0: There is no significant difference in respondent’s opinion regarding compensation packages.

Respondents opinion and Expected opinion regarding significance of compensation in employees job

Column

Total1 2 3

Row 1 Respondents

opinion 0 0 1 1

Expected Opinion .2 .3 .4 1.0

2 Respondents

opinion 0 0 2 2


3 Respondents

opinion 3 7 5 15

Expected Opinion 3.3 5.1 6.6 15.0

4 Respondents

opinion 8 6 9 23


5 Respondents

opinion 0 4 5 9


Total 11 17 22 50

11.0 17.0 22.0 50.0

35


Column

Total1 2 3

Row 1 Respondents

opinion 0 0 1 1


2 Respondents

opinion 0 0 2 2


3 Respondents

opinion 3 7 5 15


4 Respondents

opinion 8 6 9 23


5 Respondents

opinion 0 4 5 9


Total 11 17 22 50

Value

Degree of

Freedom Asymp. Sig. (2-sided)

Pearson Chi-Square 9.739a 8 .284

36


Column

Total1 2 3

Row 1 Respondents

opinion 0 0 1 1


2 Respondents

opinion 0 0 2 2


3 Respondents

opinion 3 7 5 15


4 Respondents

opinion 8 6 9 23


5 Respondents

opinion 0 4 5 9


Total 11 17 22 50

N of Valid Cases 50

a. 10 cells (66.7%) have expected count less than 5. The minimum expected count is .22.

INTERPRETATION

37

The Calculated chi square value is 9.739

Significance value is 0.284

Significance Level is 0.05

Above analysis depicts that significance value calculated through SPSS is higher than

significance level thus hypothesis is accepted.

This depicts that there wasn’t a significance difference in the opinion of the respondents

regarding compensation packages.

Statement 2

Too much travelling and eager to pursue higher education may be a significant reason for

higher rate of attrition

H0: There are no significant differences in the opinion of the employees that

too much travelling and pursuing of higher education is a reason for higher

rate of attrition.

38

Respondents opinion and expected opinion regarding too much travelling and higher education a reason for attrition

Column

Total1 2 3

Row 1 Respondents opinion 0 0 1 1


2 Respondents opinion 0 1 3 4








Total 18 18 14 50

18.0 18.0 14.0 50.0

39

Chi-Square Tests

Value df Asymp. Sig. (2-sided)


N of Valid Cases 50


INTERPRETATION:




Above analysis depicts that significance value obtained through SPSS is higher than significance

level thus hypothesis is accepted.

This depicts that there wasn’t a significance difference in the opinion of the respondents

regarding too much travelling and higher education is a cause of higher attrition.

40

Statement 3

Lack of appreciation/ recognition may trigger an employee’s decision to leave.

H0: There is not a significant difference in the opinion of the employees that

lack of recognition may trigger an employee’s decision to leave.

Respondents opinion and expected opinion that lack of recognition may trigger an employee’s decision to leave

Column

Total1 2 3

Row 2 Respondents

opinion 0 1 4 5


3 Respondents

opinion 2 5 6 13


4 Respondents

opinion 13 3 3 19


5 Respondents

opinion 8 3 1 12


Total Respondents

opinion 23 12 14 49


41

Chi-Square Tests

Value Df Asymp. Sig. (2-sided)


N of Valid Cases 50

a. 8 cells (66.7%) have expected count less than 5. The minimum expected count is 1.22.

INTERPRETATION:




Above analysis depicts that significance value obtained through SPSS is less than significance

level thus hypothesis is rejected.

This depicts that there was a significance difference in the opinion of the respondents regarding

too much travelling and higher education is a cause of higher attrition.

Statement 4

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Quality of supervision received by employees in the organization was “Good”

H0: There was not a significant difference in the opinion of the respondents regarding the statement quality of supervision offered by organization.

Respondent’s opinion and expected opinion regarding quality of supervision received by employees in organization

Row 1 Respondents

opinion 0 0 1 1


2 Respondents

opinion 0 1 2 3

Expected Opinion .4 1.2 1.5 3.0

3 Respondents

opinion 2 5 12 19


4 Respondents

opinion 4 12 2 18


5 Respondents

opinion 0 2 8 10


Total Respondents

opinion 6 20 25 51


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Chi-Square Tests



N of Valid Cases 51


INTERPRETATION:




Above analysis depicts that significant value obtained through SPSS is less than significant level

thus hypothesis is rejected.

This depicts that there was a significant difference in the opinion of the respondents regarding

quality of supervision provided by organization some where satisfied while others were not.

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Statement 5

Better superior subordinate relationship can reduce attrition

H0: There is no significant difference in opinion of the respondents regarding better superior subordinate relationship can reduce attrition

Respondents response and Expected response superior-subordinate relationship a cause for attrition

Column

Total1 2 3

Row 1 Respondents

opinion 0 0 1 1


2 Respondents

opinion 1 1 5 7


3 Respondents

opinion 2 4 8 14


4 Respondents

opinion 2 2 12 16


5 Respondents

opinion 1 3 8 12


Total 6 10 34 50

6.0 10.0 34.0 50.0

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Chi-Square Tests



N of Valid Cases 50


INTERPRETATION:




Above analysis depicts that significant value obtained through SPSS is greater than significant


This depicts that there wasn’t a significant difference in the opinion of the respondents regarding

the thought that better superior-subordinate relationship can reduce attrition.

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Statement 6

Companies “merit review process” was not satisfactory

H0: There is no significant difference in the opinion of the respondents about the merit review process of the organization

Respondents response and Expected response regarding merit review process of the organization

Column

Total1 2 3

row 1 Respondents

opinion 0 0 1 1


2 Respondents

opinion 2 2 2 6


3 Respondents

opinion 2 5 10 17


4 Respondents

opinion 2 2 15 19


5 Respondents

opinion 1 1 6 8


Total Respondents

opinion 7 10 34 51


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Chi-Square Tests



N of Valid Cases 51

INTERPRETATION:







the merit review process of the organization as the employees feel that they are not provided with

their performance picture clearly.

Statement 7

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Employees are very much satisfied with the incentives, pay and fringe benefits offered by organization.

H0: There is no significant difference in the opinion of the respondents regarding satisfaction of the incentives offered by organization.

Respondents opinion and Expected opinion regarding Incentives offered by organization

Column

Total1 2 3

row 1 Respondents

opinion 0 0 1 1


2 Respondents

opinion 1 0 3 4

Expected Opinion .4 .7 2.9 4.0

3 Respondents

opinion 3 5 9 17


4 Respondent 1 3 15 19

Expected 1.9 3.4 13.7 19.0

5 Respondent 0 1 8 9

Expected .9 1.6 6.5 9.0

Total 5 9 36 50

5.0 9.0 36.0 50.0

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Chi-Square Tests



N of Valid Cases 50


INTERPRETATION:







the incentives offered by organization to the employees. This is an indicator for the organization

that stress upon the employee engagement plans rather than just focusing on incentives and other

benefits.

Statement 8

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Lack of company’s ability to discover and utilize employee’s talent and potential contributed in high rate of attrition.

H0: There is no significant difference in the opinion of the respondents regarding company’s ability to discover employee’s talent contribute in high rate of attrition

Respondents opinion and Expected opinion on companies talent analyzing ability

Column

Total1 2 3

row 1 Respondents

opinion 0 0 1 1


2 Respondents

opinion 0 1 7 8


3 Respondents

opinion 2 5 7 14


4 Respondents

opinion 2 3 10 15


5 Respondents

opinion 1 1 10 12


Total 5 10 35 50

5.0 10.0 35.0 50.0

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Chi-Square Tests



N of Valid Cases 50


INTERPRETATION:






This depicts that there wasn’t a significant difference in the opinion of the respondents and most

of the employees believe that company was not able to utilize their talent to the fullest

Statement 9

Forming grievance handling committees can help in reducing attrition rate

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H1: There is no significant difference in the opinion of the employees that forming a grievance handling committee can reduce attrition

Respondent opinion and Expected opinion regarding grievance handling committee

Column

Total1 2 3

Row 1 Respondents opinion 0 1 1 2

Expected opinion .2 .4 1.4 2.0


Expected opinion .3 .6 2.1 3.0


Expected opinion 1.8 3.6 12.6 18.0




Expected opinion .9 1.8 6.3 9.0

Total Respondents opinion 5 10 35 50


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Chi-Square Tests



N of Valid Cases 50


INTERPRETATION:






This depicts that there wasn’t a significant difference in the opinion of the respondents and most

of the employees were of the opinion that organization must initiate a grievance handling

committee.

Statement 10

Job rotation, employee engagement and monthly get together can be an effective tool in reducing attrition level.

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H0: There is no significant difference in the respondent’s opinion that job rotation, employee engagement and monthly get together can be an effective tool in reducing attrition level

Respondents opinion and Expected opinion about effective tools in reducing attrition level

Column

Total1 2 3

row 1 Respondents opinion 0 0 1 1

Expected opinion .1 .2 .7 1.0









Total Respondents opinion 5 10 35 50


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Chi-Square Tests



N of Valid Cases 50


INTERPRETATION:






This depicts that most of the employee think if organization introduces activities such as job

rotation, employee engagement etc attrition level can be decreased.

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PEARSON’s RANK CORELATION COEFFICIENT

Factors Researcher’s Rank

Respondent’s Rank

D (D)^2

Compensation Packages 1 2 -1 1Lack of challenges 3 8 -5 25Specific grievance 4 6 -2 4Organization Culture 5 3 2 4Job Security 6 1 5 25Perusing higher education 7 4 3 9Transfer to non desirable place

8 9 -1 1

Lack of Training 9 5 4 1685

R1 = researcher’s Rank

R2 = Respondent’s Rank

D = difference between R1 and R2

N = Number of factors

Test Calculations:

P= 1-6ΣD2/(n3 -n)P=1-(660/720)P=0.0834

Result:There is a positive correlation between the ranks given by respondents and researchers.

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Major Causes of Attrition

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FACTORS LEADING TO ATTRITION

INDIVIDUAL ORGANIZATIONAL

HIGHER EDUCATION

BETTER PAY PACKAGE

PARENTS / SPOUSE MOBILITY

NO ROLE CLARITY

JOB STRESS

NO LEANING

ROLE DIFFERENT THAN DEFINED

CULTURAL MISMATCH

PAY PACKAGE

ROLE RELATED OTHERS

LEADERSHIP STYLE OF BOSS

NO GROWTH/ STAGNATION

EXTENSIVE TRAVELLING

MONOTONOUS JOB

Measures Adopted by Protiviti to reduce attrition

Protiviti gives opportunity to employees to pursue higher education

while working:

Employees who have worked with protiviti for minimum 3 years are offered an executive

MBA program at S.P jain institute of management so that they can grow academically

while gaining work experience.

Fun at work:

“All work and no play make Jack a dull boy”. Employees spend almost 8-9 hours of the

day at their work place. It is very important that the employees are given opportunities to

have fun at work. Hence HR at protiviti organizes occasional parties such as diwali party,

New Year parties, team parties and onsite picnics once a year.

Periodic rewards or gifts for work done:

Protiviti provides periodic appraisals to employees who are consistent good performers in

terms of monetary benefits. This helps employees to realize that their efforts are being

appreciated and recognized.

Protiviti provides an extensive and comprehensive training program to

employees :

Protiviti provides a comprehensive training to employees at level in hierarchical level

which help them to understand their job better and help them to get equipped with new

technology.

Open Communication:

A culture of open communication enforces loyalty among employees. Open

communication tends to keep employees informed on key issues. Most importantly, they

need to know that their opinions matter and that management is 100% interested in their

input.

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Diagnosing Attrition at protiviti:

Protiviti consulting pvt ltd is a firm with small setup in India. Hence it has been relying solely on

the tool of Exit Interviews in order to diagnose the problem of attrition. But as the organization is

growing and is being affected with the problem of attrition like the other firms in the industry as

the industry is experiencing an upturn in growth after a period of recession. it needs to develop

different techniques to analyze the reasons of attrition.

Protiviti uses this tool to diagnose attrition:

Exit Interviews

Exit interviews are used by the majority of companies. They tend to be conducted just before an

employee leaves, though some firms wait until after the departure. Exit interviews will normally

to be done in the form of a questionnaire, though one to one interviews are also used. Recent

years have seen the appearance of internet based exit interview questionnaires. Unfortunately,

research shows exit interviews to be unreliable, as departing employees opt to give socially

acceptable reasons rather than genuine ones. It is rarely in the employee's best interests to give

any negative reason for leaving at this stage. The need for references is often paramount, and not

worth putting at risk, by giving the real reasons. In addition, departing employees may be

unwilling to devote much time to completing detailed questionnaires, resulting in incomplete

answers. The end result will often be a large number of departures apparently due to an offer

they simply could not refuse, or in the wider context, career advancement. Thus organizational

data from typical exit interviews fails to surface the ‘real’ causes of an organization's attrition

problems. When organizations unknowingly misdiagnose the situation and fail to surface the

most critical factors that contribute to attrition, their solutions to correct the problem fall short of

the mark. The result is a bad diagnosis leading to improper prescriptions. Designing a better exit

interview involves:

1. Ensure confidentiality

2. Anonymous if possible

3. Provide a small incentive

4. Focus on improving conditions for colleagues.

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Attrition diagnosing Techniques which can be used by protiviti to reduce attrition

1. Questionnaires

They are commonly used as part of the information gathering process. They are a reasonable way

of obtaining relevant information, though response rates are often disappointing. Questionnaires

need to be designed carefully to be effective. They should be easy to use, anonymous and fairly

brief. Questions can be open or closed, multiple choice answers, ranking of items or checklist

format.

Steps for conducting questionnaire survey:

1. Determine the information needed

2. Choose the type of questions

3. Create the precise questions

4. Check readability

5. Design for analysis

6. Test

7. Adjust if necessary

8. Prepare data summary

9. Distribute

2. Focus Groups

It is a good way to acquire qualitative information, rather the quantitative data that a survey

produces. Focus groups are inexpensive when compared to say interviews and take less time to

prepare. A focus group provides an opportunity for a small number of people to discuss issues

relating to employee turnover and retention. An added benefit of focus groups is that they can be

used to generate new ideas, discussing possible solutions as well as diagnosing causes. For larger

companies you will need to conduct a series of focus groups in order to get a reasonable sample.

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3. Nominal Group Technique

One particular type of focus group process is the nominal group technique. This is especially

useful in determining the key drivers of employee turnover. Procedure for conducting NGT is as

follows:

1. Each member of the group is asked to write down reasons why colleagues have left

2. The facilitator goes round the group asking each person in turn for their first reason .

3. The facilitator uses a flip chart to document the reasons .

4. They then repeat for each person's second reason and so on.

5. These lists are then clearly displayed for everyone to see.

6. Group members are then asked to choose the most important reasons after careful

consideration of all those listed

7. They rank these in order of importance Scores calculated by awarding a set number of points

for no1, no2 etc, then totally the number of points for each reason

4. Attitude Surveys

The use of surveys to measure employee engagement or commitment is gaining in popularity.

The research suggests commitment is a reasonable predictor of turnover if considered across a

large enough group. Unfortunately surveys are not always reliable and response rates are

sometimes disappointing. One difficulty with attitude surveys is knowing which areas to focus

upon. It is usually sensible to conduct some form of qualitative information gathering

beforehand, in order to get an idea of which issues you should be asking about. Surveys tend to

ask the importance of each issue, in addition to rating how the company is performing on that

issue.

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Chapter 7

Findings

Findings

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Employees give a lot of importance to compensation package in their job.

Extensive travelling which forms 70% of the consultant’s job appears to be a significant

reason for high rate of attrition in consultancy industry.

Lack of appreciation /recognition may trigger an employee’s decision to leave an

organization.

Employees doesn’t seem to be satisfied with the quality of supervision received by them

.By improving superior-subordinate relationship can help reduce attrition.

Organization paying less attention in providing sufficient feedback to employees about

their performance between merit reviews could be a factor increasing employee’s

dissatisfaction.

Sometimes organizations inability to discover and utilize employee’s potential

contributes in high rate of attrition.

Employees believe that by forming grievance handing committees with whom they can

share and discusses their grievances can help in reducing attrition rate.

Prospects of career progression in organization forms an integral part of retention tactics.

The factors that currently attract and retain people are opportunities to learn and grow.

Increasing the compensation packages and fringe benefits periodically can effectively

tackle attrition.

Providing employees with an opportunity for higher education is one of the important

factors with regards to reducing attrition.

There exists a positive correlation between the ranks given by researcher and the

respondents i.e., both sides agree to ranking of factors that can help in bringing a check

on attrition levels.

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CHAPTER 8

Limitation

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Limitations of the Study

Collecting information from people during working hour was really difficult.

Employees may have not given the correct answers for some questions due to hesitation.

Some questions were left blank in the questionnaire. So it created obstacles during

analysis.

The organizations are very reluctant to give us the internal data of their employees. So

exact information could not be made out from them.

1.

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CHAPTER 9

RECOMMENDATIONS &

SUGGESTIONS

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Recommendations & SuggestionsFew suggestions that would help in reducing attrition:

1. An employee would work tirelessly for the company if he is being made aware that he is

an important part of the team.

2. Constant constructive feedback would help employees to analyze their weak points

3. Award them with recognition if an employee has done something valuable. Don’t wait

for too long.

4. Be in touch with your employees and help them when in need.

5. Organization must help employees acquire new skills so that organization goals could be

matched up with individual goals by providing required training.

6. An organization should be aware of the needs of the employees before it can launch its

retention plans for them.

7. HR must take certain measures to reduce employee stress level by organizing seminars

on stress reduction, yoga, one day camps, picnics etc.

8. Employee retention tools such as job rotation, employee engagement must be introduced

in the organization in order to equip employees with the trait of multitasking.

9. Hr must design an attractive compensation package according to the job discripsion of

the employees.

10. If you are to conduct an exit interview, it is far better to get a neutral third party to

conduct them. This might help to improve the reliability of exit interviews.

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BIBLIOGRAPHY

Books Referred:

Phillips Jack,(2003) “A strategic accountability approach” Elsevier Science & Technology,

Ahlrichs Nancy(2000)”Competing for Talent” Davies-Black Publishing Managing Employee Retention - Phillips & Connell Peter W Horn(1995)”Employee turnover” South-Western College Publishing Kothari, C.R.(2004), “Research Methodology”, New Age International Publishers, New

Delhi, Second Revised Edition, pp.15-16.

Rao , V.S.P.(2009), “Organizational Behaviour”, Excel Books, New Delhi, First

Edition, pp.465-482

Sites Referred:

www.citehr.com

www.managementparadise.com

http://timesascent.in/index.aspx?page=article&sectid=64&contentid=20081015200811131346302515b929edd

http://www.recrion.co.uk/solutions/attrition/the-actual-cost-of-employee-attrition-rates/

http://eric.ed.gov/ERICWebPortal/search/detailmini.jsp?_nfpb=true&_&ERICExtSearch_SearchValue_0=ED051449&ERICExtSearch_SearchType_0=no&accno=ED051449

69




http://www.recrion.co.uk/solutions/attrition/the-actual-cost-of-employee-attrition-rates/



http://www.managementparadise.com/

http://www.citehr.com/

Appendix

QUESTIONNAIRE

1. Employees give maximum importance to compensation package in their job

Strongly agree Somewhat Agree Neutral Somewhat Disagree Strongly Disagree Don’t know

2. Too much travelling and eager to pursue higher education may be a significant reason for

higher rate of attrition


3. Lack of appreciation/ recognition may trigger an employee’s decision to leave.


4. Quality of supervision received by employees in the organization was “Good”

Strongly agree Somewhat Agree

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Neutral Somewhat Disagree Strongly Disagree Don’t know

5. Better superior subordinate relationship can reduce attrition


6. Companies “merit review process” was not satisfactory


7. Employees are very much satisfied with the incentives, pay and fringe benefits offered by organization.


8. Lack of company’s ability to discover and utilize employee’s talent and potential contributed in high rate of attrition.

Strongly agree Somewhat Agree Neutral Somewhat Disagree Strongly Disagree

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Don’t know

9. Forming grievance handling committees can help in reducing attrition rate


10. Job rotation, employee engagement and monthly get together can be an effective tool in reducing attrition level.


11. What do you think, the reasons for an employee leaving the organization?

(Rate the following from the top most priority and the least

Compensation

Recognition for work done

Lack of challenge

Specific grievance

Mentoring Relationships

Too much travel

Organization Culture

Dissatisfaction with type of work

Job Security

PERSONAL INFORMATION:

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i. NAME:

ii. AGE:

iii. SEX:

iv. DESIGNATION:

Thank you for giving your valuable time for us which we really appreciate.

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Hr project

Business

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