DISSERTATION REPORT

ON

ATTRITION RATE IN ING VYSYA BANK

Submitted for the partial fulfillment of the requirement for the degree of

MASTER IN BUSINESS ADMINISTRATION of Uttarakhand Technical University Dehradun.

(Batch 2006-2008)Under the Guidance of: Submitted By:

Dr. K. S. NEGI YOGESH GARGDirector UIM, Dehradun Enrol. No. 06310500933

UTTARANCHAL INSTITUTE OF MANAGEMENT, DEHRADUN

(Approved by AICTE)

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ACKNOWLEDGEMENT

Preparing a project of this nature is an arduous task and I was fortunate enough to get support from a large number of persons to whom I shall always remain grateful.

I would like to add a few heartfelt words for the people who were part of this project in numerous ways……people who gave me unending support & guidance right from the stage this project was conceived.

I am desirous of placing on record profound indebtedness to Ms. Shanu Khatri, Faculty in Department of Business Management, Uttaranchal Institute of Management, for the valuable advice, guidance, precious time and support that she offered.

I convey my heartily affection to all those people who helped and supported us during the course, for completion of my Dissertation Report and making it a success.

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EXECUTIVE SUMMARY

I have done my research project at ING VYSYA BANK. In my Study I have analyzed the reasons for High attrition rate of employees in ING VYSYA BANK. The project starts with an idea regarding the banking sector and also the profile of ING VYSYA BANK.

The outsourcing history of India is one of phenomenal growth in a very short span of time.

Attrition refers to a method of achieving a reduction in personnel by not refilling positions that are vacated through resignation, reassignment, transfer, retirement or means other than layoffs.Attrition is transactional referring to its dependency on both environmental & personal variables. The fact that large numbers of employees turnover in the first six months of employment suggests that this is a critical time for helping people adjust to new roles. Managing employees’ expectations should actually start before employment. Orientation programs should not be a one-day event; they should span the first three months of employment. A good orientation program helps prevent misunderstandings, and gradually introduces the employee into the Organization. By providing just-in-time information and training, rather than a one-day "core dump" of information, your training efforts will yield much better results.

After detailing the Organizational Chart, take time to clearly explain

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the importance of the employee’s job. Most importantly, establish a support system for the new employee.

INTRODUCTION

INDIAN BANKING SECTOR

The Reserve Bank of India (RBI) acts as a centralized governing body. Though Public Sector Banks currently dominate the Banking Industry, numerous Private and Foreign Banks exist. India's Government owned Banks dominate the market. Their performance has been mixed, with a few being consistently profitable. Several Public Sector Banks are being restructured and in some the government either already has or will reduce its ownership.

PRIVATE AND FOREIGN BANKS

The RBI has granted operating approval to a few privately owned domestic banks; of these many commenced banking business. Foreign banks operate more than 289 branches in India. The entry of foreign banks is based on reciprocity, economic and political bilateral relations. An inter-departmental committee approves applications for entry and expansion.

CAPITAL ADEQUACY NORM

Foreign banks were required to achieve an 8 percent capital adequacy norm by March 1993, while Indian banks with overseas branches had until March 1995 to meet that target. All other banks had to do so by March 1996. The banking sector is to be used as a model for opening up of India's insurance sector to private, domestic and foreign participants, while keeping the national insurance companies in operation.

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BANKING

India has an extensive banking network, in both urban and rural areas. All large Indian banks are nationalized, and all Indian financial institutions are in the public sector.

RBI BANKING

The Reserve Bank of India is the centralized governing body. It is the sole authority for issuing bank notes and the supervisory body for banking operations in India. It supervises and administers exchange control and banking regulations, and administers the government's monetary policy. It is also responsible for granting licenses for new bank branches. 30 foreign banks operate in India with full banking Licenses. Several licenses for private banks have been approved. Despite fairly broad banking coverage nationwide, the financial system remains inaccessible to the poorest people in India.

INDIAN BANKING SYSTEM

The banking system has three tiers. These are the scheduled commercial banks; the regional rural banks, which operate in rural areas, not covered by the scheduled banks; and the cooperative and special purpose rural banks.

SCHEDULED AND NON SCHEDULED BANKS

There are approximately 80 scheduled commercial banks, Indian and foreign; almost 200 regional rural banks; more than 350 central cooperative banks, 20 land development banks; and a number of primary agricultural credit societies. In terms of business, the public sector banks, namely the State Bank of India and the nationalized banks, dominate the banking sector.

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REGULATIONS ON FOREIGN BANKSForeign banks in India are subject to the same regulations as scheduled banks. They are permitted to accept deposits and provide credit in accordance with the banking laws and RBI regulations. Currently about 30 foreign banks are licensed to operate in India. Foreign bank branches in India finance trade through their global networks.

GOVERNMENT AND RBI REGULATIONS

All commercial banks face stiff restrictions on the use of both their assets and liabilities. Forty percent of loans must be directed to "priority sector" and the Statutory Liquidity Ratio and Cash reserve requirements severely limit the availability of deposits for lending. The RBI requires that domestic Indian banks make 40 percent of their loans at confessional rates to priority sectors' selected by the government. These sectors consist largely of agriculture, exporters, and small businesses. Since July 1993, foreign banks have been required to make 32 percent of their loans to this priority sector. Within the target of 32 percent, two sub-targets for loans to the small- scale sector (minimum of 10 percent) and exports (minimum of 12 percent) have been fixed.

Foreign banks, however, are not required to open branches in rural areas, or to make loans to the agricultural sector. Commercial banks lent dolls 16.46 billion in the Indian financial year (IFY, April-March) 2005/2006, up sharply from dolls 109 billion in the previous year.

There are several other worries about the banking sector, mainly confusion over ownership and control. Sometime soon India will be forced to apply the norms of developed countries and many banks (including some of the biggest) will show very poor return ratios and dozens of banks will be bankrupt. When that happens the two popular

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reasons to defend bad banks will disappear. These are: one, to save face in the remote hope of that fortunes will `revive' and two, some banks are too big to be allowed to fail, fearing social upheaval.

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PROFILE OF ING Who we are

ING Group is a global financial services company of Dutch origin with 150 years of experience, providing a wide array of banking, insurance and asset management services in over 50 countries. Our 120,000 employees work daily to satisfy a broad customer base: individuals, families, small businesses, large corporations, institutions and governments. Based on market capitalization, ING is one of the 20 largest financial institutions worldwide and ranked in the top-10 in Europe. The immediate benefit to ING Vysya Bank ltd is the pride of having become a member of global financial services giant, with an asset base of 1159 billion euros, net profit of 7.21 billion euros as of December 31st 2005. Further, the presence of the group in over 50 countries, employing over 117000 people, serving over 60 million customers across the globe, only multiplies the credibility, not only across the country but also across the globe. The pride of this global identity, the back up of a financial power house and the status of being the first Indian International bank, would also greatly enhance productivity, profitability resulting in improved performance for the bank to translate into higher returns, to all the stake holders.

BusinessING is the number one financial services company in the Benelux home market. ING services its retail clients in these markets with a wide range of retail-banking, insurance and asset management services. Our wholesale banking activities operate worldwide but with a primary focus on the Benelux countries. In the United States, ING is a top-5 provider of retirement services and life insurance. In Canada, we are the top property and casualty insurer. ING Direct is a leading direct

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bank with over 15 million customers in nine large countries. In the growth markets of Asia, Central Europe and South America we, for example, provide life insurance. We are also a large asset manager with assets under management of around EUR 500 billion.

Missionwe strive to deliver our financial products and services in the way our customers expect: with exemplary service, maximum convenience and at competitive rates. This is reflected in our mission statement: to set the standard in helping our customers manage their financial future.

StakeholdersING conducts its business on the basis of clearly defined business principles. In all our activities we carefully weigh the interests of our stakeholders: customers, employees, shareholders, business partners and society at large. ING strives to be a good corporate citizen.

Our strategy

We are a customer-orientated company with a clear organization and strategy which is founded on value based management. We have a strong position in mature markets where we want to generate further growth through proper execution of our business fundamentals (such as customer satisfaction and managing costs, risk and our reputation) and we focus on growth in retirement services, direct banking and life insurance in developing markets. That way we try to offer our shareholders a higher return than the average of our peers.

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TOP 20 GLOBAL FINANCIAL INSTITUTIONS

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HISTORY OF ING

ING GOING FORWARD

ING was founded in 1991 by a merger between Nationale-Nederlanden and NMB Postbank Group to become the first bancassurer of the Netherlands. During the past 15 years ING has become a multinational with very diverse international activities.

The roots of ING can be traced to the insurers De Nationale Levensverzekering Bank and De Nederlanden van 1845 and to the public bank services such as De Rijkspostspaarbank and De Postcheque- and Girodienst, as well as to the Nederlandsche

Middenstands Bank. These are the legal predecessons of the ‘founding fathers’ of ING; Nationale-Nederlanden and NMB Postbank Group.

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The oldest legal predecessor is the Kooger Doodenbos from Koog,

Noord Holland, founded in 1743. During that period many regional

funds were created to insure people from certain communities, professions, widows and orphans against bad fortune. Many of these small organisations were taken over by larger nationwide operating companies such as De Nationale Levensverzekering Bank. The fire insurers were the first to undertake international activities, starting in the Dutch Indies, but later also in the rest of Asia and in America. This created the foundation for the international company ING is today.

The pillarisation of Dutch society that separated Protestants, Catholics and Socialist/Liberals is also visible in the ING history. Banks with a Catholic or Protestant signature merged into the NMB and became part of ING. Professional groups also united in the banking business. Organisations such as the Credietbank for Koffiehuis en Restauranthouders (pubs and restaturants), the Bank voor den Diamantenhandel (diamond trade) and the Vakbondsspaarbank (Union Savings Bank) were involved in several mergers and acquisitions and finally became part of ING Bank and therefore part of the ING family.

The founding of ING as one company was started in 1990 when the legal restrictions on mergers between insurers and banks were lifted in the Netherlands. This prompted insurance company Nationale-Nederlanden and banking company NMB Postbank Groep to enter into negotiations. The merger into Internationale Nederlanden Group took place in 1991. The market soon abbreviated the name to I-N-G. The company followed suit by changing the statutory name to ING Groep N.V. Since 1991, ING has developed from a Dutch company with some international business to a multinational with Dutch roots. This was

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achieved through a mixture of organic growth, such as the creation of ING Direct from scratch, as well as various large acquisitions.

The top of the company pedigree above shows the ‘founding fathers’ of ING; at the bottom you will find the companies that ING has acquired since its establishment.

In addition, companies were bought that have in the meantime been sold again. The first large acquisition took place in 1995, when ING took over Barings Bank. This acquisition increased the brand recognition of ING around the world and strengthened its wholesale banking presence in the emerging markets. Some of Barings’ activities were integrated in ING’s business units, while other parts were closed down or sold. In 1999, ING acquired the German BHF-Bank, but this Frankfurt-based merchant bank was divested in 2004. CenE bankiers also played an important role in ING’s history. It had been part of NMB since 1966, but in 2004 ING decided to sell CenE. And then there was Life of Georgia. This insurance company was acquired by Nationale-Nederlanden in 1979, resulting in a considerable increase in activities in the US. Via Life of Georgia, the activities in Asia expanded considerably. However in 2004, ING as a group had become well-

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established in both regions and Life of Georgia was sold. In 1956 an ING - predecessor (de Nationale) bought de Tiel-Utrecht. This significantly increased the size of the company. But it was sold again in 1999 to De Goudse.

Other acquisitions, such as the Belgian Bank Brussels Lambert, strengthened the Group’s presence in the Benelux. In addition, the activities in de United States were doubled as a result of organic growth and the acquisition of Equitable of Iowa, ReliaStar, Aetna Financial Services and merchant bank Furman Selz.

ING is also active in other parts of the world. In 2001, ING acquired a majority interest in the Polish Bank Ślaski and purchased the remaining stake in the Mexican insurer Seguros Commercial America.

Furthermore, ING participates in a number of financial institutions, such as Pacific Antai Life Insurance and the China Merchants Fund Management. It has also established a partnership with the Bank of Beijing. This has strengthened ING’s presence in the emerging markets of Asia, where ING has a longstanding presence. The Netherlands of 1845 had been active in China since 1886 and NMB Bank had joint ventures in 1974 (Inter-Alpha Asia).

During its short existence, ING has grown into a versatile, international company. ING will continue along this path by providing excellent services through its existing businesses and by focussing on three growth areas: direct banking, pensions and emerging markets. ING takes over the

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Management of The Vysya Bank from October 7th , 2002

1930 Set up in Bangalore1948 Scheduled Bank1985 Largest Private Sector Bank1987 The Vysya Bank Leasing Ltd. Commenced1988 Pioneered the concept of Co branding of Credit Cards1990 Promoted Vysya Bank Housing Finance Ltd.1992 Deposits cross Rs.1000 crores1993 Number of Branches crossed 300

1996Signs Strategic Alliance with BBL., Belgium. Two National Awards by Gem & Jewellery Export Promotion Council for excellent performance in Export Promotion

1998Cash Management Services, & commissioning of VSAT. Golden Peacock Award - for the best HR Practices by Institute of Directors. Rated as Best Domestic Bank in India by Global Finance (International Financial Journal - June 1998)

2000State -of - the -art Date Centre at ITPL, Bangalore.RBI clears setting up of ING Vysya Life Insurance Company

2001 ING-Vysya commenced life insurance business.

2002

The Bank launched a range of products & services like the Vys Vyapar Plus, the range of loan schemes for traders, ATM services, Smartserv, personal assistant service, Save & Secure, an account that provides accident hospitalization and insurance cover, Sambandh, the International Debit Card and the mi-b@nk net banking service.

2002 ING takes over the Management of the Bank from October 7th , 2002 2002 RBI clears the new name of the Bank as ING Vysya Bank Ltd, vide their letter of 17.12.02

2003Introduced customer friendly products like Orange Savings, Orange Current and Protected Home Loans

2004 Introduced Protected Home Loans - a housing loan product

2005Introduced Solo - My Own Account for youth and Customer Service Line – Phone Banking Service

2006 Saral Savings - No Frills Account for the common man

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ING APPROACHDoing Well By Doing Right

Operating in a highly competitive global market, our results can be attributed to our willingness to challenge conventional thinking. We pioneered the concept of the integrated financial services company, bringing banking and insurance together to benefit our customers and strengthen our business. Another example is ING Direct. This innovative marketing strategy & communication approach of retail banking started in 1995 and today ING Direct is a leading direct bank with over 15 million customers in 9 large countries.

Like every business, success depends on delivering results. But at ING we are also motivated by something more – ensuring that every decision we make is the right one. And as a result we are doing well for our customers, our stakeholders and ourselves. In short: ‘Doing Well by Doing Right’.

Our top priority is to listen to the needs and perspectives of our diverse customers – allowing us to stay connected to them, to respond more effectively and anticipate their needs. But from there we encourage our colleagues to take charge and make their own decisions. That way, a good outcome is something we can all feel part of.

The way we work

Performance is all well and good, but it means nothing if integrity has to be discarded for it to happen. At ING, we believe in responsible growth, which means that how we do business is just as important as the success we enjoy. Ethics play an essential role at ING, and are represented by the Business Principles that guide how we conduct our

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relationships, make our decisions and develop the potential of our people.

Let’s talk about your future.

Rated a top ten European employer by Fortune magazine, ING is one of the world's fastest-developing financial enterprises. But the speed of our development isn’t limited to our ever-growing business success - it also relates to the progressive opportunities we offer the people who choose to build a career with us.

ING wants to grow profitably by enhancing customer satisfaction, investing in growth and managing our costs, risks and reputation. We seek to execute our strategy in a responsible way, guided by the ING Business Principles. They provide the basis for all conduct at ING and state the responsibilities we have towards key stakeholders.

Corporate Social ResponsibilityThe bank as a part of its Corporate Social Responsibility has partnered with Parikrma Humanity Foundation.Parikrma Humanity Foundation is a non-profit company aiming to unleash the potential of slum children in urban India. Their mission is to help the poor break their cycle of poverty and live meaningfully through tools necessary to succeed in a knowledge based world. For the past 2 years, ING Vysya Bank and Parikrma partnered together to promote the unique program - "Change Your World in ½ a day", with the aim to transform the lives of hundreds of under-served children in Bangalore.

To know more about Parikrma and its partnership with ING Vysya Bank, visit the site http://www.parikrmafoundation.org/cyw_halfday.htm

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Corporate Responsibility Report

Invest in someone who could be your future colleague

At Parikrma, we have a very simple idea – provide the poorest of the poor children the tools to compete equally for value-added jobs. For that they need to have top-class education and we need to hold their hands right through School, Junior College, graduation and even place them in those value-added jobs.

Children have reached grade VIII. Three years hence they will enter a Junior College (pre-university) and we need to be ready for that.

And all it takes is your ½ a day’s salary. Change your world in ½ a day

Invest just ½ a day of your entire year’s salary. In return we will make you a stakeholder in Parikrma. You will get to know the impact your ½ day is making on the children and communities that Parikrma serves. And what is more you will receive a free ticket for 2 to a rock concert that will inspire you. The concert is slated for January 14th, 2007.

Change Your World in ½ a Day – 2005 Last year 6,200 believers from more than 70 companies participated in the ½ a day program. We were able to raise enough funds to look provide our 360 degree development program to over 250 children (cost/child break up). That is the power of each ½ a day.

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Change Your World in ½ a Day – 2006 This year our objective through the ½ day program is to raise funds to build a Junior College. Your ½ day investment is invaluable to this. Of course you may choose to invest more than just ½ a day. Please do. Every rupee more will further our goal of ensuring continuity of the children’s education beyond school.

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ING STRATEGY“SETTING THE STANDARD IN HELPING OUR CUSTOMERS MANAGE THEIR FINANCIAL FUTURE”

ING MISSION STATEMENT

A clear organization

To fulfill any mission statement you need an organisation that is up to the task. ING has a management structure based on the principles of transparency, accountability and client focus. Our activities are organized along six functional business lines with direct reporting lines that enable quick decision-making and foster personal empowerment and strong accountability.

A clear financial objective.

Our goals is to deliver value to shareholders through a combination of growth and return that is higher than the average of our peers.

A clear strategy

To achieve this, we manage for value. This means focusing on growing economic profit, which measures profit beyond the cost of capital, and emphasizing return improvement and profitable organic growth.

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EXECUTION

In our mature businesses profitable organic growth comes from the proper execution of our business fundamentals. This means managing costs, risks and reputation and exemplary customer service.

Customer satisfaction

ING attaches the utmost importance to exemplary customer service. Especially in mature markets, we believe high customer satisfaction is the way to differentiate ourselves from our peers and to generate profitable top-line growth. In order to continuously improve customer satisfaction, ING’s mission statement (above) is the guideline for every employee. We continuously measure customer satisfaction and set performance targets.

Managing costs

Customer satisfaction alone, however, is not enough to create value, especially not in mature markets. Fierce competition in these markets makes it essential to look continuously for ways to keep costs under control and improve efficiency. Cost containment and excellent customer satisfaction go hand-in-hand as operational drivers to create value in these markets.

Managing risks

Managing our risks and consequently the cost of capital is essential for stable, profitable growth. Risk management supports value creation by providing insight into the levels of risk we can absorb compared with our earnings power and capital base. Integrated risk management (combining credit, market, insurance and operational risk into one common view) is a key ingredient in our strategy. It allows us to capture the benefits of being a diversified financial services firm and to

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create a clear overview of all risks. Our ultimate goal of integrated risk management is to better align our risk taking to our risk appetite. This allows ING to make optimal use of its capital base, leading to a lower overall cost of capital.

Managing reputation

Integrity and reputation are two of ING’s most important assets. Our strong focus on execution has resulted in a greater emphasis on the importance of adherence to laws and regulations. Regulatory compliance is essential because ING’s long-term relationships with its clients depend on integrity and fairness. ING has a groupwide compliance policy. Senior management is accountable for compliance and compliance is integrated in their performance targets and remuneration structure.

GROWTH

ING also continues to invest in business areas that have clear growth potential. We have defined three main areas of growth: retirement services, direct banking and life insurance in developing markets. ING has strong positions in these businesses and intends to raise further their profit potential by using the experience and capital gained in ING’s mature business.

Direct Banking

The continuing increase of the use of internet offers great business opportunities. With ‘ING Direct’ we have delivered in this business and continue to do so. Today, ING is the leading direct bank in the world. By expanding our product range from savings into mortgages, we expect to continue to grow this business. Currently ING Direct is active in nine mature economies: Australia, Canada, France, Germany,

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Austria, Italy, Spain, United Kingdom and the United States. In the Netherlands, Postbank is ING’s direct bank.

Retirement services

We see significant opportunities in mature and growth markets for retirement services. This is driven by demographic and regulatory changes. The population throughout the world is ageing.

Governments can not deal with this challenge on their own. Retirement services are a key area for businesses to develop. ING has a long-standing expertise in this field. We already excel in providing retirement services in many regions. ING is involved in assisting governments and setting up pension structures in many developing markets.

Life insurance in developing markets

We can build on an established presence in Asia/Pacific, Latin America and Central Europe. In Asia, we have a great portfolio of insurance businesses. We focus on long-term relationships and strong alliances with banks in the region. In Central Europe, ING has been present from the start when their markets opened up to the West. We have a very broad presence there. Today, ING is the number one life insurer in the region and is well positioned to benefit from the growth of these markets.

A PERFORMANCE CULTURE

Success requires that employees understand ING’s strategy and the goals of their business unit. Employees must know their role in achieving these goals and receive regular feedback on their

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performance and are rewarded accordingly. This is how ING sees a performance culture and how it is being embedded in the company.

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OUR VALUESWe are a customer-orientated company with a clear organisation and strategy which is founded on value based management. We have a strong position in mature markets where we want to generate further growth through proper execution of our business fundamentals (such as customer satisfaction and managing costs, risk and our reputation) and we focus on growth in retirement services, direct banking and life insurance in developing markets. That way we try to offer our shareholders a higher return than the average of our peers.

LEARNING AND DEVELOPMENTHOW DO I DEVELOP MY STRENGTHS?

BRINGING LEARNING TO LIFE.Like everything at ING, your learning and development is designed to be practical, entrepreneurial and innovative. Practical, because we aim to make you as successful as possible, as quickly as possible, in your field; entrepreneurial, because ultimately you are responsible for driving your learning; and innovative, because that's just the way we are.

Each country and Business Unit delivers learning in the way most appropriate to them, but these guiding

principles remain constant:

With the support and guidance of your manager and Human Resources adviser, you will have the opportunity to explore the business, build up a valuable network of contacts and find the area most suited to you During your career at ING, you will experience different roles and projects that really challenge you. For example, you may be involved in a 'Greenfield' initiative, helping to build a new business in a new

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geographical area; or a 'Goldfield' initiative, in which you'll pioneer a new market where we already have a presenceYou will receive exceptional on-the-job, in-house and professional trainingWe monitor your performance and give you regular feedback, so you deepen your understanding of yourself and the possibilities open to youColleagues and managers are very willing to share their experience and advice - after all, if it helps you, it helps the business!

The ING Business School, based in the Netherlands, offers unique, high quality leadership education to current and future senior managers and specialists across our company in an ING setting.

NURTURING OUR TALENTOrganisational Learning is our fully-integrated global training function. It is a key contributor to performance success, allowing employees to take responsibility for their own learning and development and reflecting our commitment to building a workplace culture where all employees have the opportunity to learn and grow. We have a ‘One Bank’ curriculum to ensure that all employees have access to consistent learning opportunities across our markets supported by several Learning Resource Centres. Such Learning Resource Centres provide learning solutions for both personal and professional development through taught and on-line learning. This focus has allowed us to increase both the number of learners and learner days significantly in the past three years.

LEADERSHIP AND EXECUTIVE DEVELOPMENT

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Effective leadership is the key to both our current and future success. We use a range of development and assessment programmes to develop leaders including the development of Individual Leadership Plans, developing strengths, identifying learning opportunities and mentoring. We also provide individual coaching to improve leaders performance and encourage their personal and professional development.ING also sponsor executive development programmes with leading academic institutions.

WHAT’S IN IT FOR YOU?

People joining ING will be connected to a wealth of training, development, career opportunities and a whole lot more. We think that a satisfying career at ING should incorporate a number of other elements to keep you engaged, passionate and committed.

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Here’s how we do it:We’re hungry. ING is characterised by differentiation and international expansion. It’s a good time to join us, especially if you are looking for an international working environment. Time goes fast in our business. We hire people who are able and eager to handle responsibility fast – then help them develop the practical skills they need to do so. This means giving them early responsibility and hands-on challenges to prove what they can. We are a learning organisation with an innovative and progressive reputation. We have our own ING Business School, to which you will get regular access. Our people enjoy a host of personal, professional and virtual learning tools to stay ahead of the rest.At ING, people that deliver results and create value will be fairly recognized and rewarded.

YOU AND ING

What you will find at ING is a combination of independence and collaboration. We all work closely together, across business lines and international borders. But at the same time we encourage personal responsibility and ownership. We pride ourselves on offering even our newest starters the opportunity to make a real contribution, and deliver real results. Taking ownership of the decision-making process, you will make sure your ideas are right for our customers, our stakeholders and each other. Then we will give you the support you need to make them happen. Because we believe that our global success is something we should all feel part of. In short: ‘Doing Well by Doing Right’.

Rewarding Performance

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ING believes employee rewards should be strongly linked to market and performance, and therefore each business line has designed specific remuneration and incentive and benefit plans which support this belief. More information about working at ING can be read in the “We employ People” section of ING Corporate Responsibility report.

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PERFORMANCE MANAGEMENT

HOW AM I DOING?Building a high performing organisationING is committed to being a high performing organisation which delivers excellent results and standards of service to all our stakeholders. Our approach aims to ensure that all employees are clear about what they are expected to achieve, their personal development goals and their contribution to business performance.

REWARD AND RECOGNITIONHOW AM I RECOGNISED AND REWARDED?Differentiating high performanceBank is committed to providing compensation and benefits competitively positioned to attract, retain and motivate talented individuals. As a high performing organisation, we link rewards to individual performance and the extent to which the employee has demonstrated a commitment to our values.Consistent with our values, base salaries bonus and share awards are benchmarked against our key competitors, focusing on high performing employees. Core benefits such as annual leave, retirement benefits, sickness and medical benefits are provided across our businesses and geographies in accordance with local custom and practice.

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EFFECTIVE SERVICE DELIVERYEffective service delivery is the priority of the human resource function to deliver an efficient, value-added service across the Bank.HUMAN RIGHTSING supports the rights of the individual as expressed in the 1948 United Nations Universal Declaration of Human Rights (UDHR).The UDHR contains a number of fundamental rights, which we aim to uphold in all circumstances, including: The right to lifeThe right to legal recognition as a personFreedom of thought, conscience and religionFreedom of opinion and expressionFreedom from tortureFreedom from cruel, inhumane or degrading treatmentFreedom from slavery and servitudeFreedom from retroactive penal legislation

ING meets all relevant international legal obligations and all relevant local legal obligations in the countries in which we operate.Bank strictly apolitical and do not engage in political activity, support political parties or have any political affiliations worldwide. They recognize hat bank have direct responsibility for the impact of their activities on their employees, suppliers, customers and the communities in which they operate. Bank work to protect human rights in their own operations through their internal policies and procedures. Bank policies also ensure that human rights are taken into account in procurement and lending decisions.

LABOUR STANDARDSThe International Labour Organisation (ILO) is a United Nations agency which promotes human and labour rights. There are eight ILO

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Conventions that have been identified as fundamental to individuals at work, irrespective of levels of development of individual member states.ING fully supports the fundamental ILO conventions. However, bank are mindful of labour laws within the countries in which they operate and of the fact that some countries have not ratified all of these conventions. Bank commitment to the Global Compact also means that they observe its principles on labour standards.

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PRODUCT PROFILE OF ING VYSYA BANK

ING Vysya Bank Ltd., is an entity formed with the coming together of erstwhile, Vysya Bank Ltd, a premier bank in the Indian Private Sector and a global financial powerhouse, ING of Dutch origin, during Oct 2002.

The origin of the erstwhile Vysya Bank was pretty humble. It was in the year 1930 that a team of visionaries came together to found a bank that would extend a helping hand to those who weren't privileged enough to enjoy banking services.

It's been a long journey since then and the Bank has grown in size and stature to encompass every area of present-day banking activity and has carved a distinct identity of being India's Premier Private Sector Bank.

In 1980, the Bank completed fifty years of service to the nation and post 1985; the Bank made rapid strides to reach the coveted position of being the number one private sector bank. In 1990, the bank completed its Diamond Jubilee year. At the Diamond Jubilee Celebrations, the then Finance Minister Prof. Madhu Dandavate, had termed the performance of the bank 'Stupendous'. The year of 2005 was the 75th anniversary or Platinum Jubilee year.

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ING VYSYA BANK offer includes:

Retail Banking

NRI Banking Services

Private banking

Whole Sale banking

Financial Markets

ING Vysya Life Insurance

ING Vysya Mutual Fund

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ING’S BUSINESS LINES

ING has a structure of six business lines. A clear client focus and strong business logic are the key elements in this structure.

Insurance Europe

Operates the insurance activities in the Netherlands, Belgium, Spain, Greece and Central Europe and asset-management activities in Europe. In these countries we offer life insurance with special attention for pensions. In the Netherlands and Belgium we also offer non-life insurance.

Insurance Americas

Holds insurance operations and asset-management activities in the Americas. It is well established in the US with retirement services, annuities and life insurances and has leading positions in non-life insurance in Canada and Mexico. Furthermore, we are active in Chile, Brazil and Peru.

Insurance Asia/Pacific

Holds the life insurance operations and asset/wealth management activities in Asia/Pacific. It has well established positions in Australia, Hong Kong, Japan, Korea, Malaysia and Taiwan. The activities in China, India, and Thailand are future growth engines for ING.

ORGANISATION CHART- ING VYSYA BANK DEPARTMENTS

DIFFERENT DEPARTMENTS

Retail Banking Wealth Management Business Banking Division Agriculture & Social Banking NRI Banking Services Corporate & Investment Banking Emerging Corporates Private Banking Whole Sale banking Financial Market Mutual Funds Life Insurance Payments Cash Management Services Customer service Trade Finance Services Home Loan Personnel Loan HR ITPL Corporate Services Department Corporate Sales Locker Credit cards

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LITERATURE REVIEW

As per web definition, “Reduction in a company’s customer population that happens as a result of normal turnover or because of some specific event — perhaps a good competitive offer or a failure on the part of the company. (Also known as churn)”BANKS AS EMPLOYERS IN CANADA (JULY 2004)(www.cba.ca/en/content/stats/fastfacts/040813-Banks%20as%20 Employers-TCL-EN-leaj.pdf)Canada’s banks and their subsidiaries contribute significantly to employment and job creation. They directly employed more than 237,000 Canadians as of July 31, 2003. This represents an increase of more than 7 per cent since 1998, when the industry employed 222,200 Canadians.

Employment Trends Technology is one of the main drivers of jobs in the banking industry. Continuing innovations in technology allow employees to move from transaction-based to knowledge-intensive jobs focussing more on in-depth, value enhanced customer relationships. For example, the number of employees at the middle management level increased by 10 per cent from 1998 to 2002. In keeping with this trend, banks are recruiting employees with higher education or skill levels and are helping their existing employees upgrade their skills through training. Occasionally individual banks go through periods of restructuring and adjustment when certain types of jobs may be reduced or eliminated. When banks must reduce staffing levels they usually do so over several years and largely through attrition and early retirement. They also work with employees to help them find new jobs within the bank

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through retraining, redeployment and relocation or they may provide them with job placement counselling. Even when positions are being reduced in some areas, other business lines in the industry continue to grow. Current growth areas are institutional delivery, mortgages, commercial loans, and operations and systems.

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EMPLOYEE ATTRITIONThe name is bond, employee bond (Article by Shelly Singh, Business world, August 30, 2004)What’s the best way to retain employees on whom a company has invested precious time and money? Tie them down with bonds. Sounds like an idea that was buried with Y2K. Well, it’s back. With attrition up at 16-17 per cent now from just 4-6 per cent about 18 months back, that’s what companies like Wipro Technologies and Mind Tree Consulting are falling back on. In fact, attrition among campus recruits is higher at 40 per cent, and that’s where the problem is. Wipro trains employees only to find that they are off in just 3-4 months. That’s when it came up with a bond scheme for its workers.But bonds have never been a great way to retain people. Says Sreenivas Chakravarthy, vice president (people development), Aditi technologies: “Even court judgments have not been in favour of companies asking employees to sign bonds. It is a negative way to retain people.” Wipro begs to differ. It claims to have looked at the bond schemes prevalent in the past and come up with what it calls “an agreement with employees to stay for 15 months”.Under the agreement an employee deposits Rs. 75,000 with a bank. The bank marks a lien to Wipro. In case an employee is unable to pay, the bank gives a loan to the employee. The bond period is for 15 months (covering three months training and 12 months work). At the end of the period the employee gets the Rs 75,000, a fixed deposit interest for the duration and an additional Rs 6,000 as retention bonus. The company has been doing this for the last three months and already has 1,000 people under this scheme. The result: attrition among campus recruits is down to 3-4 per cent.

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Says Bijay Sahoo, vice-president (talent engagement and development), Wipro Technologies: “We do not want employees to use Wipro as a mere training ground. This also helps us get serious employees. Also, our scheme is the first of its kind — employees do not pay us directly and get the money back with interest and a bonus.”MindTree Consulting’s approach differs as it does not ask employees to pay. Instead it makes them sign a bond for 12 months if it is sponsoring a recruit’s higher education. Says Punit Jetli, general manager (people function), MindTree Consulting: “There is resentment against paying for bonds.”In a market where new opportunities are in abundance — the industry will recruit about 55,000-60,000 people this year — any kind of bond could actually backfire. Entry-level employees leave for better pay and wider exposure. Innovative retention strategies might pay more than bonds. Wipro believes it’s too early to come to negative conclusions. As it looks at employee bonds as a long-term strategy, it remains to be seen whether the time for bonds is ripe again.

ValueNotes India Outsourcing Weekly (October 07, 2005 Vol II No. 75)Any Time Money: Owned or outsourcedEstimates by the Indian Banks' Association suggest that there will be about 45,000 ATMs in India by 2008, up from 20,000 in 2004. While this is driven by increased customer needs for convenience and value added services, ATMs have in fact meant a prohibitive cost for individual banks.With increasing competition and pressure on resources associated with prime real estate rents, establishment costs, asset management, maintenance and servicing of ATMs, private as well as public sector banks have taken to outsourcing the management of ATMs. The trend started as foreign banks Citibank and Standard Chartered, and Indian

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banks IDBI, UTI and Corporation Bank began using third parties to manage ATMs - either partially or completely.Right from selecting and owning the site and assets such as AC, power back-ups, surveillance and V-Sat systems to cash replenishment and switch management, providers are willing to do all the hard work at a lower cost, much to banks' advantage. Outsourcing the ATM function is also enabling banks to stay at the forefront of rapid technological advances. It is also expected to be the beginning of a trend towards outsourcing of the entire banking IT infrastructure. The third party player is often also capable of providing better and updated security systems, an advantage for the highly fraud-driven ATM industry.Service providers include IT majors such as TCS, Wipro and Polaris, who manage the technology aspects, as well as Euronet and India Switch Company (ISC), who can provide end-to-end solutions. Players such as Tata Indicom and Reliance are also offering telecom solutions for ATM outsourcing.Banks have also taken to reduce costs by pooling together resources and offering shared ATM networks. For instance, 'Cashtree', an alliance started in 2003 by five public sector banks - Bank of India, Union Bank of India, Indian Bank, United Bank of India and Syndicate Bank, offer an ATM branch network jointly, the management of which has been outsourced to ISC. If the alliance trend holds out, the growth rate of ATMs is likely to slow down, but that may not impact the demand for outsourced ATM management services. When ATMs first started in India, many banks used them as their major strength and USP. But now, control over ATMs is no longer a plus point. All in all, the modern day customer is more concerned with the convenience of ATM banking. Who runs the show may not matter to them.

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RESEARCH METHODOLOGYWhile undertaking this project it was a really a wonderful experience as we were able to get a look into corporate world and one of its most talked about issues of Human Resource Management specifically, Employee attrition and Retention strategies.

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OBJECTIVE

OBJECTIVE OF THE STUDYThe following survey was mainly done with an objective to analyze employee’s psychology in respect to ING VYSYA BANK and opportunities they have in outer market.

SUB-OBJECTIVE OF THE STUDYReasons to find why ING VYSYA BANK employee’s turnover is so high. To recommend possible suggestions in order to have a control on attrition.

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SCOPE OF THE STUDY

The following study was done to find high attrition rate in ING VYSYA BANK Regional Office New Delhi.

The study helps us to know the state of mind of employees in ING VYSYA BANK that why they think for leaving the job and what can be done to reduce the increasing attrition rate.

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ATTRITIONAttrition refers to a method of achieving a reduction in personnel by not refilling positions that are vacated through resignation, reassignment, transfer, retirement or means other than layoffs.Attrition is transactional referring to its dependency on both environmental & personal variables.

PRIMARY REASONS FOR EMPLOYEE TURNOVER Benefits Lack of proper peer support Lower support Lower salary package Less promotional opportunities Work environment Less job opportunities Compensations & advancement associated with job Increased strain placed on employees Do not feel valued Organization culture Emotional exhaustion Increased sense of depersonalization

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SEVEN FUNDAMENTAL REASONS FOR EMPLOYEE DISENGAGEMENT

There are seven hidden reasons:-

THE JOB WAS NOT WHAT THE EMPLOYEE EXPECTED This is the No. 1 reason for turnover in first six months & happens because employees have unrealistic expectations when they are hired, have misconceptions about the worker are sometimes mislead during the interview process. Employee share the blame for not checking out the job or workplace before signing on, but employers are also guilty, they are in too big hurry to hire or eager to sign on a new recruit failing to describe the everyday job reality or give pre hire tours of the workplace. As a result new hires feel betrayed or realize that they don’t fit the job.

THE MISMATCH BETWEEN JOB & PERSON The main culprit is the pressure to hire in a hurry. Those who hire often Assume that because a job is at a lower level, anyone can do it, forgetting excellence can be found in all jobs & that is worth taking time to assess Who has right stuff to succeed, in every job in an organization. Another contributing issue is that managers assign & promote workers into wrong jobs, erroneously thinking that anyone can be trained to do anything or overlooking the fact that job satisfaction may be more important to an employee than getting promotion.

TOO LITTLE COACHING OR FEEDBACK By a training magazine it was found that manager feedback and coaching skills were consistently rated as mediocre. This is major reason gen-xers leave in there first year of the job. Way too

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manager’s skill practices once a year coaching at the annual performance appraisal.

TOO FEW ADVANCEMENT AND GROWTH OPPORTUNITY This is the number one frustration of younger top performers. When employees rated today’s manager on leadership competencies the ability to develop direct report ranks near the bottom. 85% of employees say career growth is the key reward only 45% percent say there organization provide it.

FEELING DEVALUED AND UNRECOGNIZED .This reason for leaving encompasses a world of sins. These include not being paid fairly not receiving a simple thank you for job well done, being treated with disrespect, being ignored, being put down, instead of valued for being different not getting the right tools and resources to do the job and having to work in an unacceptable environment.

STRESS FROM OVERWORK AND WORK LIFE IMBALANCE .A family and work survey reported that 705 of all workers don’t think that there is healthy balance between their work life and professional lives.A research study found that 61% of workers are willing to sacrifice pay in exchange for more personal and family time.

LOSS OF TRUST AND CONFIDENCE IN SENIOR LEADERS .It was found that companies with high trust levels outperforms with company with low trust levels by 186% and less than half of the workers trust their senior leaders. Because their senior executives are self interested short term focused ego driven, and greedy. But when employees there senior leader are committed to their well being they

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tend to return that commitment by staying and becoming more engaged and productive.

SOME OTHER REASONS FOR EMPLOYEE TURNOVER

There are two main reasons for employee turnover:-

1. Quality of selection system2. Quality of leadership

SELECTION SYSTEM QUALITY No single selection system is right for all organizations. Before making changes, Organizations must determine their current levels of sophistication and use of best Practices. There are 5 practices associated with selection systems:

BEHAVIOURAL BASED INTERVIEWS Asking candidates to provide specific examples of past behaviors that illustrate their ability to demonstrate required job knowledge, skills & abilities.

TRAINING & EXPERIENCE EVALUATION

Providing a checklist or other tool that measures candidates’ experience in specific skills or situations.

ABILITY TESTS

Testing candidate’s mental, clerical, mechanical, physical or technical capailities.

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BIOGRAPHICAL DATA Requesting information about candidates’ life experiences (e.g. families, hobbies, attitudes) that correlate with job performance. MOTIVATIONAL FIT INVENTORIES Measuring candidates’ preferences for job, the organization, and location qualities. LEADERSHIP QUALITY Two factors driving retention are:-

1. Quality of relationship a person has with his supervisor or manager

2. Amount of meaningful work

There are many things that an organization can do to improve these factors.Some solutions directly improve leadership skills, while others improve systems & the work environment.

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TYPES OF DATA

The Research was conducted in two stages:

QUALITATIVE QUANTITATIVE

QUALITATIVE RESEARCH :

Here an effort was made:

To understand the product & the information which helped to frame the questionnaire.

QUANTITATIVE RESEARCH :

A questionnaire was prepared for this purpose, keeping in mind the important factors which would enable to meet the objectives of the project. Database of employees was prepared with the help of which those employees were approached who had left the job & from them the required information was gathered. The Research details were summarized as follows:

Type of research : DESCRIPTIVE RESEARCHSample size : 50Sampling technique : QUOTA SAMPLINGSource of Data :Primary Data : QUESTIONNAIRESecondary Data : INTERNET, NEWSPAPERS

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PRIMARY DATA :

Primary data is that kind of data which is collected by investigator himself for purpose of specific study. The data such collected is original in character. The advantage of this method of collection is authentic. A set of questions were put together in the form of questionnaire.

SECONDARY DATA :

When an investigator uses the data it has been already collected by others. The secondary data could be collected from Newspapers, Journals, Reports & various publications. The advantages of secondary data can be in terms of money & time spent. The researcher of the report also did the same and collected secondary data from various internet sites like GOOGLE.COM, YAHOO.COM. The researcher of the report also visited various libraries for collection of the introduction part.

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LIMITATIONS

Unreliable response from the organization at times due to lack of time. Non-availability of concerned person at the time of survey. Time and other factors which are beyond the human limitations

have also a bearing on the study.

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FINDINGS OR ANALYSIS I have conducted a survey to know what are the reasons of increasing attrition rate in ING VYSYA BANK. The survey process involved two phases: The response that is generated during this exercise is converted in the form of percentages to have a comparative outlook, as the numbers itself cannot explain the true picture. These percentages are then represented through the simple tools like bar graphs, pie charts, etc. (see appendix).

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APPENDIX

PRIMARY REASON FOR LEAVING THE ORGANIZATION

Primary Reason For LeavingNo. Of Employees Benefits 10Better job opportunity 14Commute 0Conflict with other employees 0Conflict with manager 2Family reasons 4Job expectations 20Not challenging 10Pay 30Personal reasons 0Relocation/move 0Working condition 10

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DURATION FROM WHICH EMPLOYEE IS THINKING OF LEAVING

INTERPRETATION

This shows that most of employees are thinking of leaving the organization from 1 to 5 months.

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Time duration No. of employeesOne Month Or Less 26One To 5 Months 40More Than 5 Months 34

Satisfaction level No. of employees

Extremely Dissatisfied 20Very Dissatisfied 20Neither Satisfied Nor Dissatisfied

46

Very Satisfied 10Extremely Satisfied 4

SATISFACTION OF EMPLOYEES TOWARDS COMPANY

INTERPRETATIONThis shows that employees are neither satisfied nor dissatisfied with the company.

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WORKING CONDITION OF EMPLOYEES TOWARDS COMPANY

INTERPRETATION

This shows that working condition of employees is much more positive than negative.

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Working ConditionsNo. Of

Employees

Much more positive than negative 8More positive than negative 50More negative than positive 30Much more negative than positive 12

FACTORS RESPONSIBLE FOR NEGATIVE EXPERIENCE OF EMPLOYEES

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Factors For Negative Experience No. Of Employees

My Performance Evaluation And Outcome

0

My Role, Responsibility And/Or Title 16Job Training 12My Boss 2My Co-Workers 0My Compensation 24Change In Compensation Package 16Company Savings Plan 0Medical Benefits And Insurance 14Relocation 16Vacation Time 0Other 0

INTERPRETATIONThis shows that compensation is a major factor for negative experience of employees.

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FLEXIBILITY OF COMPANY TOWARDS FAMILY RESPONSIBILITIES

I NTERPRETATION This shows that company is somewhat inflexible towards family responsibilities.

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Flexibility of company No. of employees

Very Inflexible 20Somewhat Inflexible 16Neither 20Somewhat Inflexible 40Very flexible 4

CAREER ADVANCEMENT OPPORTUNITIESCareer advancement opportunities

No. of employees

Strongly Disagree 6Somewhat Disagree 20Neither Agree or Disagree

50

Somewhat Disagree 20Strongly Agree 4

I NTERPRETATION

This shows that career advancement opportunities are neither very good nor very bad.

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SATISFACTION LEVEL TOWARDS POSITION AT THE COMPANY

Satisfaction level No. of employees

Very dissatisfied 16Somewhat Dissatisfied 32Not satisfied or Dissatisfied 24Somewhat satisfied 24Very satisfied 4

INTERPRETATION

This shows that employees are somewhat dissatisfied with their position in the company.

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ROLE PLAYED BY PAY IN TURNOVER

Percentage of pay

No. of employees

20-40% 1640-60% 1460-80% 60

80-100% 10

INTERPRETATION

This shows that pay plays 60-80% role in employee’s turnover.

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ROLE PLAYED BY WORKING CONDITIONS IN TURNOVER

INTERPRETATION

This shows that working conditions of employees plays a major role in

employee turnover.

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Working conditions

No. of employees

Yes 62No 38

RATE OF MORALE IN COMPANY

Rate of morale

No. of workers

Low 44Very low 24

High 20Very high 12

INTERPRETATION

This shows that rate of morale is low in company.

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RETENTION PROGRAMS TAKEN BY COMPANY

Encouragement to stay

No. of workers

Yes 20No 80

R e t e n t a t io n p r o g r a m s t a k e n b y c o m p a n y

2 0 %

8 0 %

Y e s

N o

INTERPRETATION

Nothing has been done to prevent employee turnover.

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SUGGESTIONS & RECOMMENDATIONS

REDUCING TURNOVER

Turnover rate measures the percentage of employees that leave the organization in a given time period. Turnover can include resignations, terminations, retirements, transfers, and promotions. Agent turnover rate is also referred to as attrition, retention rate or agent churn.

Turnover should be tracked in order to:

Control costs

Raise employee morale

COST IMPACTS OF TURNOVER

Turnover increases costs in a variety of ways including:

recruiting and hiring

temporary staffing

lower productivity of new agents

overtime costs for current staff while the job is vacant

unemployment insurance premiums

Supervisors confront a major challenge with turnover and cost control. This challenge includes balancing the cost of new hires.

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EMPLOYEE MORALE

Finally, turnover is a good indicator of employee morale. Although employee morale is difficult to quantify, it has consequences productivity, and overall performance.

AREAS TO CONSIDER FOR REDUCING TURNOVER RATE

Factors that can impact turnover are as follows:

1. Recruitment, screening, and orientation programs Recruiting techniques that simply bring in 'warm bodies' will raise turnover, while targeted recruiting will result in higher retention levels. Screening processes should identify people that are a good match for the job requirements. Finally, company orientations that provide a positive introduction to the company and an understanding of company values establish a good relationship with employees.

2. Training and support of new graduates

Poor training programs raise turnover when agents don't have the tools to do their job Well.

3. Quality of direct supervision Good supervision ensures improve their skills, as well as support with challenging job Tasks. If management is biased, uncommunicative, turnover will increase.

4. Competitiveness of pay scale Wages should be competitive with other job opportunities will be lost to better-paying jobs.

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5. Other employment opportunities in the area Other job opportunities with better advancement opportunities, challenges, and skill development may cause turnover.

6. Level of job satisfaction and rewards Sales regularly deal with a stressful job. Burnout levels are high and can be aggravated if there are few instances of job recognition and reward for excellent performance. Agents also can be unsatisfied with their job when they do not have the tools and work processes to do a good job for their customers.

7. Attractive advancement opportunities within the company Advancement motivate employees to stay with a company.

8. Unplanned change Poorly-managed change can lead to attrition.

When should turnover be addressed?

So how do you know when turnover is severe enough to warrant special focus? In addition to employee morale/productivity, there are some other factors to consider. The loss of highly skilled employees is one consideration. The attrition of first-rate employees can be an irreplaceable loss for companies. In addition, constant turnover and recruiting can create a negative impression about the company.

Finally, turnover warrants extra focus if a clear pattern begins to appear. For example, if there has been 50% turnover in the past year due to resignations, chances are that some fundamental problems exist at the company and need to be addressed. If employees are always leaving because of negative circumstances, this is a red flag

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that significant problems exist within the organization and that management practices, training, and HR policies need to be revisited.

How can turnover be reduced?

High turnover is a major problem to identify causes of attrition.

Know why turnover is happening. It is important to know the exact reasons why agents leave in order to:

identify 'controllable' reasons why agents leave (to focus attention on reducing the causes of these departures)

accurately plan ahead for recruiting, hiring, and training replacements at the same pace as you expect agents to leave

Some reasons for agent turnover are beyond the control of management. These departures will occur regardless of how attractive management makes it for agents to stay.

'Non-controllable' turnover includes:

retirements

promotions

transfers to other departments within the company illness

'Controllable' turnover includes resignations due to:

job stress

low pay

lack of advancement possibilities

lack of support and reward on the job - 71 -

Action steps you can take

1. Evaluate the 8 areas identified in the section "Areas to consider for reducing turnover rate" to determine where the greatest contribution to agent turnover may be taking place.

2. Conduct exit interviews to identify why they are leaving.

3. Conduct focus groups with managers, supervisors and employees to brainstorm the root cause of employee turnover.

4. Use the results of the data from steps 1 through 3 to prioritize the root causes for employee turnover. Develop action plans to address these root causes.

5. Implement these action plans and measure the results.

PRIMARY REASONS FOR EMPLOYEE TURNOVER Benefits Lack of proper peer support Lower support Lower salary package Less promotional opportunities Work environment Less job opportunities Compensations & advancement associated with job Increased strain placed on employees Do not feel valued Organization culture Emotional exhaustion Increased sense of depersonalization

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SEVEN FUNDAMENTAL REASONS FOR EMPLOYEE DISENGAGEMENT

There are seven hidden reasons:-

THE JOB WAS NOT WHAT THE EMPLOYEE EXPECTED

This is the No. 1 reason for turnover in first six months & happens because employees have unrealistic expectations when they are hired, have misconceptions about the worker are sometimes mislead during the interview process. Employee share the blame for not checking out the job or workplace before signing on, but employers are also guilty, they are in too big hurry to hire or eager to sign on a new recruit failing to describe the everyday job reality or give pre hire tours of the workplace. As a result new hires feel betrayed or realize that they don’t fit the job.

THE MISMATCH BETWEEN JOB & PERSON

The main culprit is the pressure to hire in a hurry. Those who hire often Assume that because a job is at a lower level, anyone can do it, forgetting excellence can be found in all jobs & that is worth taking time to assess Who has right stuff to succeed, in every job in an organization. Another contributing issue is that managers assign & promote workers into wrong jobs, erroneously thinking that anyone can be trained to do anything or overlooking the fact that job satisfaction may be more important to an employee than getting promotion.

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TOO LITTLE COACHING OR FEEDBACK

By a training magazine it was found that manager feedback and coaching skills were consistently rated as mediocre. This is major reason gen-xers leave in there first year of the job. Way too manager’s skill practices once a year coaching at the annual performance appraisal.

TOO FEW ADVANCEMENT AND GROWTH OPPORTUNITY

This is the number one frustration of younger top performers. When employees rated today’s manager on leadership competencies the ability to develop direct report ranks near the bottom. 85% of employees say career growth is the key reward only 45% percent say there organization provides it.

FEELING DEVALUED AND UNRECOGNIZED .This reason for leaving encompasses a world of sins. These include not being paid fairly not receiving a simple thank you for job well done, being treated with disrespect, being ignored, being put down, instead of valued for being different not getting the right tools and resources to do the job and having to work in an unacceptable environment.

STRESS FROM OVERWORK AND WORK LIFE IMBALANCE .

A family and work survey reported that 705 of all workers don’t think that there is healthy balance between their work life and professional lives.

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A research study found that 61% of workers are willing to sacrifice pay in exchange for more personal and family time.

LOSS OF TRUST AND CONFIDENCE IN SENIOR LEADERS .

It was found that companies with high trust levels outperforms with company with low trust levels by 186% and less than half of the workers trust there senior leaders. Because their senior executives are self interested short term focused ego driven, and greedy. But when employees there senior leader are committed to their well being they tend to return that commitment by staying and becoming more engaged and productive.

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SOME OTHER REASONS FOR EMPLOYEE TURNOVER

There are two main reasons for employee turnover:-

1 Quality of selection system2 Quality of leadership

SELECTION SYSTEM QUALITY

No single selection system is right for all organizations. Before making changes, Organizations must determine their current levels of sophistication and use of best Practices. There are 5 practices associated with selection systems:

BEHAVIOURAL BASED INTERVIEWS Asking candidates to provide specific examples of past behaviors that illustrate their ability to demonstrate required job knowledge, skills & abilities.

TRAINING & EXPERIENCE EVALUATION Providing a checklist or other tool that measures candidates’ experience in specific skills or situations. ABILITY TESTS Testing candidate’s mental, clerical, mechanical, physical or technical capabilities. BIOGRAPHICAL DATA

Requesting information about candidates’ life experiences (e.g. families, hobbies, attitudes) that correlate with job performance.

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MOTIVATIONAL FIT INVENTORIES Measuring candidates’ preferences for job, the organization, and location qualities. LEADERSHIP QUALITY Two factors driving retention are:-

1 Quality of relationship a person has with his supervisor or manager

2 Amount of meaningful workThere are many things that an organization can do to improve these factors.Some solutions directly improve leadership skills, while others improve systems & the work environment.

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ATTRITION AREA SOLUTIONS

The job was not clearly explained A realistic job preview (RJP) to them tool has been proven to

establish honest Expectations about the job. RJP can reduce Attrition between 5-15%.

Poor prior work history that leads to A biographical data Poor future work assessment review previous

work history to Help eliminate those candidates with poor prior work history.

Do not have right cognitive ability A mental alertness test can for job measure the job candidates

ability to think & solve problems.

Cannot manage the interpersonal A behavioral phone requirements for job interview, simulation, role

play, or in-person interview should help you evaluate the job candidate against this criteria.

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New hire job preferences do not match A job related personality required job preferences assessment can measure job

fit & job preferences.

What are the best ways to combat turnover? Our model of turnover would suggest there are seven major areas of intervention.

They are:

Early Interventions

Skill Interventions

Leadership Interventions

Communication Interventions

Reward/recognition Interventions

Job Enrichment Interventions

Selection Interventions

I want to touch on each area briefly and offer some practical advice and describe some tried and proven strategies.

1. Early interventions

The fact that large numbers of employees turnover in the first six months of employment suggests that this is a critical time for helping people adjust to new roles. Managing employees’ expectations should actually start before employment. As we describe in our earlier article, realistic job previews can help ensure that employees walk into their

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jobs with their eyes wide open. Orientation programs should not be a one-day event; they should span the first three months of employment. A good orientation program helps prevent misunderstandings, and gradually introduces the employee into the organization. By providing just-in-time information and training, rather than a one-day "core dump" of information, your training efforts will yield much better results.

After detailing the organizational chart, take time to clearly explain the importance of the employee’s job. Most importantly, establish a support system for the new employee. A good practice is to set up a "buddy" system for new employees. A "buddy" is a seasoned employee who volunteers to "look out for the new employee", making introductions, providing advice, and helping avoid early pitfalls.

2. Skill interventions Keep employees motivated and committed by enthusiastically offering both training and development opportunities. Smart companies know the importance of personal development in employee retention. In fact, the top-rated companies to work for have several qualities in common. They spend considerable time in training their people, they have low turnover rates, and they have impressive numbers of applicants per job opening.

3. Leadership interventionsBetter Bosses mean lower turnover. Establishing performance expectations, providing coaching and positive feedback, and interacting in a fair and considerate manner are all things that good leaders do to help new employees be successful and receive enjoyment from their jobs. To impact turnover, make sure that supervisory promotion and training programs have interpersonal skills

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as part of their focus. Measure employee perceptions of leadership behaviors and incorporate behavioral expectations into leaders’ performance management expectations.

4. Communication interventions A good case study of how focusing on communications can help improve employee retention is New York City’s Tavern on the Green. In a recent article (source: Ragan Communications), the training director for the restaurant offered numerous suggestions for opening up communications, including:

Hold open forums. Set up monthly or at least quarterly forums in which employees can talk with decision-makers on issues important to them.

Improve Credibility. Do what you say you are going to do or offer a good reason why you can't’.

Find ways to communicate. Eliminate fear of reprisal. Share important information. Treat employees as partners. Communicate numbers, [both] good and bad. Don’t hoard data on successes that might make workers feel a sense of accomplishment or on problems that might encourage them to go the extra mile.

5. Rewards/recognition interventions

Money can talk volumes, but the creative use of money is key to retention. Various kinds of contingent bonus strategies can be used to help with retention. Deferred bonuses are paid out incrementally with a significant back-end payoff for a combination of performance and

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retention.This type of bonus system can help guarantee service for a finite number of years but doesn’taddress long term retention.Performance bonuses can help an employee reach high levels of income providing they can consistently demonstrate superior levels of performance. This type of bonus can be very effectiveif performance metrics are readily available and additional costs are consistent with the value of superior performance.A third option besides the use of bonuses is to regularly make salary adjustments for your star performers or individuals with key skill sets so that they are not tempted to go elsewhere for bigger paychecks. Obviously, this strategy can only be used for a small percentage of key players. If you can’t afford to pay more, or to offer contingent pay, don’t forget the value of non-monetary or symbolic rewards like time-off, awards, and other recognition programs.

6. Job enrichment Increasing the job satisfaction of high turnover jobs can reduce turnover. For individuals who have a need for growth, the following job design strategies are associated with increased job satisfaction:

Increase the variety of tasks performed

Provide greater ownership and decision-making on how the job is performed  and hold the job holder accountable for quality of outputs

Add more significant responsibilities

Improve the accuracy and quality of feedback on performance

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7.Selection

Improved selection may be the most powerful weapon against turnover.. Improving interviewing procedures reduced turnover rates on average a whopping 42%.

Selection is a preventive technique for reducing turnover. By improving the initial fit between an individual

and a job, you can have a huge impact on turnover.

REDUCING TURNOVER:THE EFFECTS OF COMMONLY-USED METHODS

Senior Level Middle Managers Front Line Employees

Better compensation &

benefits

67%

Better compensation &

benefits

61%

More careful selection in

hiring

57%

Stock options 52%

More careful selection in

hiring

54%

Better compensation &

benefits

50%

More careful selection in

hiring

47%

Tuition reimbursement

41%

Tuition reimbursement

47%

Profit-sharing 27%

Stock options 32%

Improved training

programs

45%

Retention bonus 26%

Adoption of casual dress

code

31%

Better orientation programs

39%

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Using the Wheel to Improve Employee Retention

KEi's Employee Retention Strategy is based upon two primary beliefs:

(1) It is difficult for employers to retain good employees if they don't have a process to hire the right people in the first place.

(2) Retention processes must directly support the reasons that successful, satisfied employees stay. KEi's concentration on the center of the Employee Retention Wheel provides employers with Internet-based tools that give employees systematic, ongoing support to be successful in their work and satisfied with their employment.

THE CENTER OF EMPLOYEE RETENTION WHEEL

(3) These eight central processes of the Employee Retention Wheel are the factors that are most critical to an employee's job performance success.

ATTITUDE FOR EMPLOYINGA process to clearly define the way supervisors are expected to interact with employees; a process to give employees a way to express what is most important to achieve job Success; and a process to give employers a way to demonstrate "Employing Values" through employment policies.

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FINDING CANDIDATESA process that gives employers a comprehensive way to communicate to job seekers what it takes to achieve short-term and long-term job success, and to attract the candidates who fit this criteria.

SORTING APPLICANTS

A process that gives employers a way to confirm whether the attitudes and behaviors of job seekers are a match for their work environment.

CHOOSING EMPLOYEESA process that gives employers a way to define the specific interview questions that prove job seeker abilities to successfully perform the target skills; and a process that gives employers a way to verify the accuracy of resume/application data and interview responses.

STARTING EMPLOYEESA process that provides a way for new employees (before performing the job) to understand "why the employers business exists;" "what makes the business organization successful;" "why the employee's job exists;" and "what it will take for the employee to achieve job success."

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INFORMING EMPLOYEESA process that gives employers a way to provide essential information (from five critical information sources) that is needed by employees to make daily work decisions.

IMPROVING EMPLOYEES

A process that gives supervisors and employees a way to work together to build personalized plans for improving each employee's priority job skills; and a process that gives the employer a way to "deliver skills-improving training curriculum" and to "measure the learning effectiveness" from the training experiences.

REWARDING EMPLOYEES

A process that gives employers a way to define and communicate exactly how individual employee salaries are determined; and a process that gives employers a way to provide employees with extra incentive income that is earned through the achievement of cash generating business goals.

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CONCLUSION

The present report indicates that the following features:-

1. Better job opportunities in outer market & pay are the main reasons for increasing attrition rate.

2. The employees do not feel valued by their employer.3. The working environment in the company also make them to

leave their job.4. Performance Appraisals are not given at regular intervals so that

the Employee feel motivated for its work. 5. The work schedule is very much inflexible & Stressful. If some possible measures are done to overcome these problems then Attrition rate can be decreased to a large extent.

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BIBLIOGRAPHYSearch Engine:http://www.google.comhttp://www.ask.com

Website:http://www.ing.comhttp://www.ingvysyabank.comhttp://www.surveyz.comhttp://www.bancwestcorp.comURL:http://www. ingvysyabank.com/http://www. ingvysyabank.com/html_files/aboutus.htmhttp://www. ingvysyabank.com/html_files/profile.htm

News Papers:Business StandardsEconomic Times

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QUESTIONNAIRE

(To Find the Various Reasons for Increasing Attrition Rate in ING VYSYA BANK)

NAME :-JOB TITLE :- ORGANISATION :-CELL NO. :-AGE GROUP :-

1. What Is Your Primary Reason For Leaving The Company?Benefits Better Job OpportunityCommute Conflict with Other EmployeesConflict with ManagerFamily ReasonsJob ExpectationNot ChallengingPayPersonal ReasonsReallocation/MoveWorking Condition

2. How Long Have You Been Thinking About Leaving The Company?

One Month Or LessOne To 5 MonthsMore Than 5 Months

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3. How Satisfied Are You With The Company You Work For?Extremely DissatisfiedVery DissatisfiedNeither Satisfied nor DissatisfiedVery SatisfiedExtremely Satisfied

4. How Was Your Working Experience?Much More Positive than NegativeMore Positive than NegativeMore Negative than PositiveMuch More Negative than Positive

5. If Your Experiences Are More Negative Than Positive, What Factors Are Responsible? Select All That Apply.

My Performance Evaluation and the OutcomeMy Role, Responsibility and/Or TitleJob TrainingMy Boss My Co-WorkersMy CompensationChange in Compensation Package

Company Savings PlanMedical Benefits and InsuranceRelocationVacation TimeOther

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6. How Flexible Is The Company With Respect To Your Family Responsibilities?

Very InflexibleSomewhat InflexibleNeitherSomewhat FlexibleVery Flexible

7. Do You Have A Clear Path For Career Advancement?Strongly DisagreeSomewhat DisagreeNeither Agree or DisagreeSomewhat AgreeStrongly Agree

8. How Satisfied Are You With Your Position At This Company?

Very SatisfiedSomewhat DissatisfiedNot Satisfied nor DissatisfiedSomewhat SatisfiedVery Satisfied

9. What Part Of Pay Play In Your Decision To Leave The Organization?

20-40%40-60%60-80%80-100%

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10. Does Working Conditions Affect You To Leave Your Job?Yes No

11. How Would You Rate The Morale In Your Company?Low Very LowHighVery High

12. Could This Company Have Done Anything To Encourage You To Stay?

YesNo

13. YOUR VALUABLE SUGGESSTIONS ARE WELCOME

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THANK YOU FOR GIVING TIME TO ME

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