1.

1 INTRODUCTION: Attrition
A reduction in the number of employees due to retirement, resignation or death is called attrition. In the best of worlds, employees would love their jobs, like their coworkers, work hard for their employers, get paid well for their work, have ample chances for advancement, and flexible schedules so they could attend to personal or family needs when necessary and never leave.

Reasons for attrition:

People don't get integrated. Most organizations have an orientation program which is more of data-dump or focused on compliance trainings being completed. The focus should be more on enabling employees to form networks within themselves. 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. 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 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. 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.

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!

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. This also leads to point number 6

External equity is missing too. Don't do an annual compensation survey when the market moves every 3-4 months. If your practitioners feel that externally comparable professionals are being valued more, then they will leave.

No communication around total value. If you offer benefits apart from only monetary terms do you communicate that to employees too? Things like being a global or niche industry leader, value of the brand of the organization, should also be made explicit.

No career planning. Are people aware of the ways in which they can grow in the organization? Who are the role models within the organization? Do they know what they have to do to gain the competencies to move to various levels?

1.2 COMPANY PROFILE:

Serviont Global Solutions

Servion Global Solutions was started in the year 1995 and was established in 1998. Servion Global Solutions and Cisco, the US-based networking company, will jointly deliver to global companies Internet Protocol (IP)-based Unified Communication solutions that combines IP telephony technology, contact management technology and contact centre applications. As a pre-requisite to this relationship, Servion, a Chennaibased company, has achieved accreditation as a Cisco Advanced Technology Partner, which demonstrates a companys expertise in Unified Contact Centre solutions, according to a Servion press release. At Servion, we believe that every time a customer gets in touch with an organization, there is an enormous opportunity to convert that interaction into a long-term relationship. Making the most of these interactions however, requires the right processes and systems to be set in place. Organizations are now beginning to realize that their customers see the experience they have when interacting with various touch points as being the key determinant of brand perception. This is where we can help you. Our decade of experience in the area of Customer Interaction has helped us to devise a generic model called the Contact Optimization Model. This Model helps map customer contact as well as makes suggestions for optimizing and enhancing those interactions. In other words, we can help you put the smile back on your customer's face, where it belongs! Every time you think 'customer interaction', think Servion. With end-to-end Contact Center solutions from Servion, interacting with your customers has never been easier or more rewarding.

Contact Optimization
Using our various Contact Optimization solutions, we can help you analyze your customer interaction strategy, offer suggestions, and where required, a corrective course of action. Our experience of more than 10 years in the Customer Interaction Management industry has resulted in a Contact Optimization Model that we utilize to help organizations optimize and enhance their customer response mechanism. This approach has already helped leading organizations across the world obtain more out of their existing systems and infrastructure, reduce operational costs, increase revenue generation, and enhance customer satisfaction. We use best-of-breed technologies, products, and services to develop solutions for effective deployment - all aimed at bringing a smile to your customer's face, every time. Our domain expertise encompasses a wide range of business sectors such as banking and finance, insurance, outsourced Contact Centers, telecom, government, and transportation. This is reflected in our blue chip customer base of more than 400 clients and 1000 installations worldwide. Our clients include industry majors such as ABN AMRO Bank, Bharti Group, Citibank, DBS Bank, Etisalat, Emirates, GE, HDFC Bank, Hutch, ICICI Bank, LG, Prudential Group, Singapore Telecom, Shinsei Bank, Standard Chartered Bank, State Bank of Mauritius, Tata Teleservices, Toyota, and Wescom Credit Union. Consistent performance and a steady growth rate have facilitated significant investments in the company's equity from TDA Capital Partners.

Quality
At Servion, improving quality is a constant focus. This is a basic requirement for satisfying and retaining customers and to build our reputation for referrals and new customers. To meet this objective, we embarked on an intensive quality initiative and were assessed at Level 4 of the Capability Maturity Model (CMM) - the benchmark for quality and rigorous processes in the software industry.

The CMM Level 4 assessment and our sustained quality practices give us the capability to manage software development, implementation, and maintenance activities efficiently and effectively. As our customer, you gain tangible benefits including higher reliability, faster delivery, reduced cost of operations, and most of all, a competitive advantage.

Corporate Overview
At Servion, we believe that every time a customer gets in touch with an organization, the opportunity to convert that interaction into a mutually satisfying and long-term relationship is very high. And making the most of these interactions requires the right processes and systems to be in place.

Servion joins hands with Cisco to offer Unified Communications Solutions Servion Global Solutions Expands North American Operations Servion Partners With Microsoft For Availability Of Its CIM Solution With Microsoft Dynamics CRM Servion Global Solutions Acquires 5by5 Networks Inc. Avaya Global Connect partners with Servion in India Servion invests in the Malaysian market SER and Servion Forge Partnership to Establish Distribution Channel in India Servion seven city seminar series - 'The Customer Interaction Conclave 2005' ends at New Delhi Servion Announces CallBack Manager with Natural Language Interface

 Servion Unveils the Contact Optimization Model to Map Customer Contact Servion and HDFC Bank setting technology standards in the Customer Service arena Servion named Best New Partner of Blue Pumpkin Worldwide SerWizSol partners with Servion to implement Business Response Systems as key differentiator Servion partners with Blue Pumpkin for Workforce Optimization Solutions TouchTel walks 'the' extra mile, achieves an all time high in customer experience Servion partners with ScanSoft for Speech based solutions Servion Global Solutions achieves Level 4 of Capability Maturity Model (CMM) Servion ties up with Peoplesoft Implements at Vanenburg, Asia Pac's first Web Servion and IBM to offer Solutions for the Contact Center Industry Servion Receives 'Most Significant Win' award

1.3 PRODUCT PROFILE:

1. Computer Telephony Integration (CTI) Computer Telephony Integration (CTI) integrates the telecom system, the IT Infrastructure, and software applications with customer data. RAP CTI is an enterprise-level CTI engine that functions as the single point of contact between customer access channels (PBX, IVR, Dialer) and corporate business applications. Available in three different options - Instant, Prime, and Optima, RAP CTI is designed for easy installation and deployment, enabling Contact Centers to become CTI ready very quickly. 2. enTRAC enTRAC, a multi-channel messaging platform, works on real time, and is completely automated. Data is gathered from various sources and delivered as information via multiple channels as either wired or wireless; voice, e-mail, fax, and SMS that accommodates wireless text messaging, globally. enTRAC allows users to specify the medium through which they wish to receive notifications. This helps organizations offer maximum flexibility and convenience to customers. enTRAC's unique two-way capability allows users to not just receive a message but also respond, using the same device. 3. Medius Medius is an automated, progressive dialer that enhances customer interaction. This, in turn, improves the marketing capabilities of a Contact Center. Medius automates routine tasks giving Contact Center managers dynamic, real-time control over operations including campaigns, individual calls, and agent desktops. This helps the manager effectively manage customer interactions and responses with far greater efficiency.

4. Call Back Manager: 7

If you do not want to 'wait in queue', your customer does not want to either. The importance of call queue management can not be emphasized on more. The challenge lies in balancing agent surplus with call surplus without having to make the caller wait in queue for long periods or leave the agent idle. Many Call Centers experience periods of unusually high call volume and a shortage of agents. The caller holding the line for a long time experiences frustration. This ultimately results in call abandonment or the caller venting her/his anger on the agent. This negatively impacts customer service and performance levels of agents who face the angry caller. But are queues unavoidable? Common sense seems to say so. A typical call volume chart of a Call Center shows more spikes than plateaus. No Call Center would deploy an army of agents to take care of every single spike. Lengthy IVR call flows and music on hold do not seem to be the answer. Yes, they are avoidable. Many service providers who have used Servion's CallBack Manager (CBM) agree that call queues are avoidable. This simple application has the potential to even out your peaks and move the calls that were not handled by the agents to a subsequent dip. The CallBack Manager gives an option of a 'call back' to a customer in a queue, and automates the 'call back' either on availability of the agent or at a time opted for by the customer. The customer has control over the entire process, allowing her/him to make an informed decision, based on expected wait time, on whether to stay on line for an agent or leave a 'call back' request. It is simple, inexpensive, and easy to administer. It maximizes efficiency and improves customer service

5. Speech Recognition: Speech is the basic form of human communication. Technology has evolved to enable humans to interact with software and telephony applications using commands, which sound like natural language. As a result, applications built on an Automated Speech Recognition (ASR) engine have a tremendous impact on customer Self Service and Call Centers, in particular. Speech applications can be broadly classified as Speech portals and Self Service applications. Speech portals provide Speech user interface to Web portals. Speech 8

enabled Self Service applications enhance the productivity of traditional IVR applications and improve agent productivity in a Contact Center.

Technology Partners:
AdvaTel Avaya Communications Cisco ClickFox Inc. Nuance Inc. Intervoice Intel Envox Worldwide

Ecosystem Partners:
Cleo IBM Microsoft

Business Partners:
Avaya Cisco IBM i-flex Solutions Infosys Talisma Tata Consultancy Services

2.1 NEED OF THE STUDY:

The study enables the following, Designing effective recruitment strategies Effective compensation and rewards depending upon the job Align the organizational strategies with the employees needs and wants To balance between work and the personal goals and wants of an employee contributes positively to the retention of employees Maintain the employees in continuous learning and growth mode Identifying correct leadership

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2.2 OBJECTIVES OF THE STUDY Primary:

To study about attrition at Servion Global Solutions.

Secondary:
To identify the reasons for attrition To find the employees perception towards Servion To identify the employees satisfaction towards his job To suggest ways for reducing attrition

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2.3 SCOPE OF THE STUDY

The study operates at different levels Understands the most appropriate level of evaluating the employees Teaches different employee retention techniques The study identifies the employees perception about the company The study identifies the job satisfaction of the employees.

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2.4 LIMITATIONS OF THE STUDY

The study was restricted only at Chennai branch. The sample is 150. This may not be the true representation of total population. Perceptions and attitudes of the employees would have influenced their responses. Time constraints of the employees would have influenced their responses. There may be ambiguity in responses and hence there could be bias in findings

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2.5 REVIEW OF LITERATURE

The high attrition rate in the IT industry has always been its greatest concern and a subject of much analysis and debate. Organisations use different methodologies for calculating their turnover rate. It is a known fact that turnover calculation is a grey area which does not always depict the true picture. While a few techniques are common, there are no proven theories. Further, the approach to this calculation might vary from organisation to organisation. Disclosure of the figure not only has a direct impact on the business but also affects employee morale and productivity. Significantly, it might also trigger a chain reactiona high attrition rate will lead to more people leaving the organisation, while a lower rate will act as a retention strategy. It is therefore not surprising that most industry observers are skeptical when organisations disclose their employee turnover. A high attrition reflects poorly on an organisations ability to hold on to its people. Monisha Advani, CEO, Emmay HR, says that attrition is unfortunately viewed as a management flaw when in fact it could well be a recruitment error. In some cases it can be simply seen as an organisations competitor appreciating its quality of hires, and its output, post-trainingalmost a backhanded compliment. Ideally, attrition should be calculated on a monthly basis for companies that have over 50 employees for the first five years of its business. Subsequently, a quarterly index should be applied till a companys 10th anniversary. After this, annual attrition figures should be measured and accounted for. This is the optimum within the services industry as companies tend to have different challenges at different stages of their business lifecycle; also, maturity achieves stability around a companys 10th anniversary, opines Advani.

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Different theories:
Attrition can be ascribed to many factors. Suhas Nerurkar, President, TVA Infotech, lists a few of them: The employee base changes each month. So if a company has 1,000 employees in April 2004 and 2,000 in March 2005, then they may take their base as 2,000 or as 1,500 (average for the year). If the number of employees who left is 300, then the attrition figure could be 15 percent or 20 percent depending on what base you take. Many firms may not include attrition of freshers who leave because of higher studies or within three months of joining. In some cases, attrition of poor performers may also not be treated as attrition. Essentially, the attrition number is also a PR or stock/analyst statement and is prone to dressing up. Varied theories are also applied as organizations like to brand themselves differently as far as their HR and recruitment strategies are concerned. Explains Advani, Each company positions itself uniquely in a common market place by claiming to have exceptional HR policies, procedures and management styles that directly impact retention or attrition; hence the absence of a homogenous system. Also, in situations where a common attrition measurement formula is applied, companies find a way to justify their results to position their statistics differently from their peers on account of having different operating practices. However, Anil Noronha, Director, HR, Indian Subcontinent, Onward Novell Software (I) states that most companies use a fairly standard methodthe number of employees who left during the year divided by the average number employed for that year.

The true picture

The attrition rate that is generally disclosed by most organizations does not always show the correct picture. Nerurkar acknowledges this to be true. I agree that the 15

figure has a direct impact on stock markets, employee morale and customer confidence. There is too much at stake and neither the US GAAP (Generally Accepted Accounting Principles) or SEBI requires that this be calculated in a particular way. The attrition rate has always been a sensitive issue for all organizations as it can have major fallout on the bottom-line. Kranti Munje, Senior Manager, HR, Bristlecone India furthers, This is because the attrition rate is an indicator of many things intrinsic to the organization, and revealing it may affect it negatively. In fact at times disclosing this data can be like a self-fulfilling prophecyif you reveal that the attrition is high, it may actually become higher. It is also not uncommon to find companies proclaiming an attrition rate that is much less than that of others in the industry. Remarks Bijayinee Patnaik, HR Head at Mahindra Special Services Group (MSSG) Companies must be projecting their attrition rate incorrectly because it tends to affect their brand image both internally and externally. Internally, it sends a wrong signal to their employees and the board of members; externally, it can affect the company in various ways such as developing a bad image or dissuading fresh talent from joining. She regrets that companies do not realise that hiding their attrition rate is never a solution for reducing the same. Attrition does not only reflect the hiring policies of an organisation, but also induction/retention strategies, training methodologies, work culture and many other factors. Munje reminds that it costs the company valuable time, money and often credibility (especially where employees develop relationships with customers). Some companies just look at the employee turnover in terms of the cost (based on the PwC Saratoga Institute theory) involved in the hiring and training of individuals. Others look at the opportunity lost and its cost. Sometimes, companies also use the figure between 50 percent and 200 percent of the annualized salary. Organisations aim to reduce voluntary attrition of productive employees and encourage unproductive staff to leave its fold. It makes way for career progression, new thinking and innovation. However, what that number should be again differs from industry to industry and from country to country as economies vary. The demand vs.

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supply of talent/resources plays a critical role too. What is considered a healthy attrition number in an industry in India may not be so in a more stagnant economy where no new jobs are being created, explains Noronha. Nevertheless, zero attrition is unimaginable and unhealthy for any organisation.

Trends in attrition:
Liberalization of the Indian economy in 1991 paved the way for the growth of the IT industry. The most prominent players in the Indian IT industry by the mid-1990s were Tata Consultancy Services, Infosys, Wipro, Satyam Computer Services Limited, Polaris Software Labs, and Patni Computer Systems Limited. By 1995 there was a new trend of poaching' of employees by rival IT firms. Poaching necessarily meant luring skilled employees of a rival company by offering better pay and fringe benefits. Over the years, more and more software professionals were also emigrating to foreign countries, particularly to the US. By late 1998, the Y2K problem was hanging over companies across the globe and software services from Indian IT service companies were increasingly in demand. In 1999, of the total number of H1-B visas given to foreign workers by the US, half were to Indian IT professionals. The average starting yearly salary in computer software jobs, in that year was $ 60,000 - nearly 10 times the average salary for a computer professional in a comparable job in India. The employee turnover in 1999-2000 in Indian IT companies was around 15-20% with the cost of replacing an employee running at over 120% of the salary per employee.

Combating attrition:
Experts are of the view that since the IT industry thrives on individuals with a vital knowledge base, the industry should help employees develop their knowledge base further in addition to giving them appropriate monetary and other compensation in order to retain talent. Combating attrition involves management of people and a thorough understanding of the human psyche. High levels of employee turnover occur due to a combination of various workplace environment influences and personal choices made by the employees. In 2003, a National Association of Software and Service Companies

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(NASSCOM) survey identified some of the major drivers of attrition. Recruitment: Effective recruitment strategies can help organizations in employee retention. Companies following the traditional methods of recruitment observed that a major drawback of the traditional selection processes was either a poor response or a mismatch between company goals and individuals' expectations. Compensation and Rewards: Incentives to employees play a vital role in motivating and retaining them in the organization. Compensation and rewards in the IT industry have long included a basic pay component along with a bonus pay when the company made higher profits. Later firms initiated performance based pay that rewarded the employee based on his contribution to the overall company profits. Organization Culture: Studies and surveys analyzing the psyche of the employee have found that the work environment has a major impact on the behavior of an employee. An effective retention strategy would involve acknowledging the employee as the internal customer and aligning the organizational strategies with employee needs and wants. Work-Life Balance: Employees differentiate a good employer from any other employer through the feeling of wellbeing' that is generated at the workplace. A balance between work and the personal goals and wants of an employee contributes positively to the retention of employees Learning & Growth: The dynamic nature of technology requires the IT industry to upgrade its operations frequently. So, another way to retain employees is to help them update their knowledge from time to time through training programs. Leadership: Surveys also identified poor leadership as one of the reasons for employee attrition. It was observed that leaders incapable of motivating and guiding employees pushed employees to change jobs frequently. Wipro initiated the Wipro Leaders' Qualities Survey in 1992

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3.1 RESEARCH METHODOLOGY

Research in common parlance refers to a search for knowledge. According to Redman and May, research is defined as a systematized effort to gain new knowledge. Research methodology is a way to systematically solve the problem. It may be understood as a science of studying how research is done scientifically. The advanced learners dictionary lay down the meaning of research as a careful investigation or inquiry especially through search for new facts in any branch of knowledge.

Descriptive Research:
Descriptive research includes surveys and fact-finding enquiries of different kinds. The major purpose of descriptive research is description of the state o affairs, as it exists at present. In social science and business research, we quite often use the term ex post facto research for descriptive research studies. The main characteristic o this method is that the researcher has no control over the variables; he can only report what has happened or what is happening. The methods of research utilized are survey method including comparative methods. In descriptive research design the researcher must be able to define clearly, what he wants to measure and must find adequate methods for measuring it along with clean cut definition of population, researcher wants to study, since the aim is to obtain complete and accurate information in the studies. In descriptive study, the researcher takes out samples and then wishes to make statements about the population on the basis of sample analysis. In descriptive study the first step to specify the objectives with sufficient perception to ensure that data collected are relevant. The data collected must be analyzed

19

and processed. Thus this is clearly stated that the researcher has applied descriptive research design.

Data collection:

Data Collection

Primary Data

Secondary Data

Observation

Intervie Questionnaire w

Books

Magazines Journals

The method for collecting primary data was through questionnaire and the secondary method was through various books, company records, websites and previous researchers finding.

Questionnaire Method:
A questionnaire consists of a number of questions printed or typed in a definite order on a form or set of forms. The questionnaire is issued to the respondents who are expected to read and understand the questions and write down the reply in the space meant for purpose in the questionnaire itself.

Types of Questions:
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1. Open end questions: In these questions, the respondents are given freedom to express their views, as there is a wide range choice. 2. Closed questions: these types of questions do not allow the respondents to answer freely. 3. Multiple-choice questions: these types of questions consist of many questions. The respondents have to select any one of their choices.

Collection Method:
The method used in study for the collection of data through Census Method. All items in any field of inquiry constitute a Universe or Population. A complete enumeration of all items in the population is known as census or inquiry. In this method all items are covered, no elements are left and highest degree of accuracy is obtained.

Sampling Techniques:

Types of sampling

Probability sampling

Non-probability sampling

Stratified Simple random Systematic Cluster random

Convenience

Quota

Judgment

Convenience Sampling:
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Convenience sampling is that in which the study units that happen to be available at the time of data collection are selected for purposes of convenience. It is common method for selecting participants to a focus group discussion.

Analytical Techniques:
Analytical techniques are used to obtain findings and arrange information in a logical sequence from the raw data collection. After the tabulation of data the statistical tools used in this project work are, 1) Weighted average 2) Chi-square 3) Interval estimation 4) Anova 5) Percentage method

Weighted average:
In case of data involving rating scales, the weighted ranking method has been used for analysis. Using this method the net scores can be calculated and the analysis can be done on the basis of the net score obtained. The formula used here is Net score = weighted average for column * No. of respondents in that column Total weight

Chi square test:

This is a test method used to test the null hypothesis statistically; hence this technique was used to check the validity of the hypothesis statement. The formula used 22

here is

[O E ]
i i

Interval estimation:
The main purpose of conducting a sample survey is to estimate the population parameters using the corresponding values obtained from the sample population. Formula used in interval estimation is, p +Z 2 pq n

Percentage method:
The collected data is converted into 100% and the percentage has been analyzed

Percentage% =

No. of respondents 100 Total respondents

Karl Pearsons Correlation Test:

It indicates the strength and direction of a linear relationship between two random variables. In general statistical usage, correlation or co-relation refers to the departure of two variables from independence. The formula used is, r= n xy x y n x 2 ( x)
2

n y 2 ( y)

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Where r is the correlation co-efficient

Anova:
ANOVA stands for analysis-of-variance, a statistical model meant to analyze data. Generally the variables in an ANOVA analysis are categorical, not continuous. The term main effect is used in the ANOVA context. The main effect of x seems to mean the result of an F test to see if the different categories of x have any detectable effect on the dependent variable on average.

Correction Factor (CF) = T2/N Total Sum of Squares =

+ X 2 2 + X 3 2 + X 4 2 + X 5 2 - CF

Sum of squares of Column (SSC) = ( X 1 ) 2 + ( X 2 ) 2 + ( X 3 ) 2 + ( X 4 ) 2 + ( X 5 )2 _______________________________________________ - CF n

Sum of squares of Rows (SSR) = ( Y1 ) 2 + ( Y2 ) 2 + ( Y3 ) 2 + ( Y4 ) 2 + ( Y5 )2 _______________________________________________ n - CF

Sum of Square of Error (SSE) = TSS - SSC - SSR Construct ANOVA table. Calculate the values of F F1 (for variance between the rows) = Variance between the rows / Residual variance

F2 (for variance between the columns) = Variance between the columns/ Residual variance 24

1. 2. 3.

Find the tabulated values of F for their respective degrees of freedom. If calculated F < tabulated F then we accept the null hypothesis. If calculated F > tabulated F then we reject the null hypothesis.

3.2 ANALYSIS & INTERPRETATION

Table 3.2.1 S.No 1 2 3 4 5 Table showing the age of the employees Respondents 66 59 20 5 0 150 Percentage % 44 39.33 13.33 3.33 0 100

Options (Yrs) 20 - 25 26 - 30 31 - 35 36 - 40 Above 40 Total

Findings: From the above table, 44% of the employees are in the age group between 20 25 yrs, 39.33% between 26 - 30 yrs, 13.33% between 31 - 35 yrs and 3.33% are in the range 36 - 40 yrs. Inference: It is inferred that majority of the employees belong to young age and majority belong to middle age.

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AGE OF EMPLOYEES
70 60 50 40 30 20 10 0 20 - 25 26 - 30 31 - 35 36 - 40 Above 40

Respondents Percentage %

Figure 3.2.1 Chart showing the age of the employees Table 3.2.2 S.No 1 2 3 4 5 Table showing qualification of employees Options HSC Diploma UG PG PG Dip Total Respondents 0 0 76 72 2 150 Percentage % 0 0 50.66 48 1.33 100

Findings: From the above table, 50.66% of the employees are bachelor degree holders, 48% are master degree holders 1.33% are PG diploma holders. Inference: It is inferred that majority of the employees are Undergraduates and minority are PG diplomas.

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EDUCATION

1% Diploma UG 48% 51% PG PG Dip

Figure 3.2.2 Chart showing qualification of employees Table 3.2.3 S.No 1 2 3 4 5 Table showing employees work experience Options 02 24 46 68 Above 8 Total Respondents 54 38 23 24 11 150 Percentage % 36 25.33 15.33 16 7.33 100

Findings: From the above table, 36% of the employees have 0 2 yrs work experience, 25.33% have 2 4 yrs work experience, 15.33% have 4 6 yrs work experience, 16% have 6 8 yrs work experience and 7.33% have more than 8 yrs work experience. Inference: It is inferred that majority of the employees are experienced and the minority is entry level.

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WORK EXPERIENCE

7% 16% 37%

0 2 yrs 2 4 yrs 4 6 yrs 6 8 yrs Above 8 yrs

15%

25%

Figure 3.2.3 Chart showing employees work experience Table 3.2.4 Table showing whether attrition is an important issue in IT S.No 1 2 3 4 5 Options Strongly agree Agree Neither agree nor disagree Disagree Strongly disagree Total Respondents 42 71 32 5 0 150 Percentage % 28 47.33 21.33 3.33 0 100

Findings: From the above table, 28% of the employees strongly agree, 47.33% agree 21.33% neither agree nor disagree and 5% disagree that attrition is a serious issue in IT industry. Inference: It is inferred that majority of the employees agree and majority disagree on attrition in IT sector.

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3% 21% 28%

Strongly agree Agree Neither agree nor Disagree Disagree Strongly disagree

48%

Figure 3.2.4 Chart Table showing whether attrition is an important issue in IT

Table 3.2.5 S.No 1 2 3 4 5

Table showing the reasons of attrition Respondents 52 16 41 18 23 150 Percentage % 34.66 4 27.33 12 15.33 100

Options Career development Improper Leadership Low CTC Dissatisfied company policy Monotonous work Total

Findings: From the above table, 34.66% of the employees feel the reason for leaving the company is due to career development, 4% feel improper leadership, 27.33% feel low CTC, 12% feel dissatisfied company policy and 15.33% feel as monotonous work. Inference: It is inferred that majority of the employees feel attrition is due to career development & low CTC and minority feel as monotonous work and improper leadership.

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15% 35% 12%

Career development Improper Leadership Low CTC Dissatisfied company policy

27%

11%

Monotonous work

Figure 3.2.5 Chart showing the reasons of attrition

One Way Anova Test

Table 3.2.6: Comparative analysis of work experience and reasons for attrition Ho: There is no association between work experience and attrition
ATTRIT ION WORK EXP CAREER DEVELOPM ENT IMPROPE R LEADERS HIP LOW CTC DISSATISFI ED COMPANY POLICY MONOTON OUS WORK TOTAL

0 2 yrs 2 4 yrs 4 6 yrs 6 8 yrs

Above 8 yrs

22 9 9 8 4 52

3 4 4 3 4 16

17 11 11 5 1 41

5 6 6 3 1 18

7 8 8 5 1 23

54 38 23 24 11 150

Total

Calculations: Correction Factor (CF) = T2 / N = 1502 / 25

30

= 900

Total Sum of squares (TSS) =

+ X 2 2 + X 3 2 + X 4 2 + X 5 2 - CF

= 588 Sum of square between samples (SSB) = ( X 1) 2 + ( X 2 ) 2 + ( X 3 ) 2 + ( X 4 ) 2 + ( X 5 ) 2 n = 198.8 Sum of square within samples (SSW) = TSS SSB = 398.2 One way Anova table Source of variation Between samples Sum square SSB Degree of freedom (n 1) = 4 Mean square MSB = SSB/ n 1 = 198.8 / 4 = 49.7 F= 49.7/3.98 =12.48 Within sample SSW (n c) = 10 MSW = SSW / (m 1)(n 1) = 398 / 10 = 3.98 Variance ratio CF

F1 = 12.48 F = 0.05 at (4,10) df = 3.48 F < Fcal, Hence we reject Ho.

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There is association between work experience & attrition

Conclusion: Hence we conclude that there is association between work experience and the reasons for attrition.

Table 3.2.7 S.No 1 2 3 4 5

Table showing the factors that minimizes attrition Options Challenging work Reduce work pressures Reduce workloads Employee empowerment Effective grievance procedure Total Respondents 41 32 23 28 26 150 Percentage % 27.33 21.33 15.33 18.66 17.33 100

Findings: From the above table, 27.33% of the employees feel the factor minimizing attrition is providing challenging work, 21.33% feel by reducing work pressures, 15.33% feel by reducing work loads, 18.66% feel by empowering employees and 15.33% feel having an effective grievance procedure. Inference: It is inferred that majority of the employees feel attrition can be minimized by challenging work and reducing work pressures and minority feel can be by reducing work loads

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FACTORS MINIMIZING ATTRITION

Challenging work 17% 28% Reduce work pressures Reduce workloads 19% Employee empowerment 21% 15% Effective grievance procedure

Figure 3.2.6 Chart showing the factors that minimizes attrition Karl Pearsons Correlation Test Table 3.2.8: Comparative Analysis between factors causing and factors minimizing attrition

Cause (x) 52 16 41 18 23 150

Solution (y) 41 32 23 28 26 150

xy 2132 512 943 504 598 4689

x2 2704 256 1681 324 529 5494

y2 1681 1024 529 784 676 4694

r=

n xy x y n x ( x)
2 2

n y 2 ( y)

r=

( 5 * 4689) (150 *150)

(5 * 5494) 150 2 (5 * 4694) 150 2

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r = 0.430

Conclusion: The correlation between factors causing attrition and factors minimizing attrition is 0.43

Table 3.2.9

Table showing employees time with Servion

S.No 1 2 3 4 5

Options 02 24 46 68 Above 8 Total

Respondents 93 24 19 8 6 150

Percentage % 62 16 12.66 5.33 4 100

Findings: From the above table, 62% of the employees have 0 2 yrs work experience at Servion, 16% have 2 4 yrs work experience, 5.33% have 4 6 yrs work experience, 12.66% have 6 8 yrs work experience and 4% have more than 8 yrs work experience. Inference: It is inferred that majority of the employees new to the company and minority are seniors.

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WORK EXPERIENCE AT SERVION

100 90 80 70 60 50 40 30 20 10 0

0- 2 yrs 2 4 yrs 4 6 yrs 6 8 yrs Above 8 yrs

Figure 3.2.7 Chart showing employees time with Servion Table 3.2.10 Table showing the no. of previous employers S.No 1 2 3 Options First employer 2 to 4 More than 4 Total Respondents 71 61 18 150 Percentage % 47.33 40.66 12 100

Findings: From the above table, 47.33% of the employees have Servion as their 1st employer, 40.66% have already worked with 2 to 4 employers and 12% have worked with more than 4 employers. Inference: It is inferred that majority of the employees are new to job and minority have already worked with more than 4 companies.

35

PREVIOUS EMPLOYERS

12%

First employer 47% 41% 2 to 4 More than 4

Figure 3.2.8 Chart showing the no. of previous employers

Table 3.2.11 Table showing employees satisfaction with the company S.No 1 2 3 4 5 Options Highly satisfied Satisfied Neither satisfied nor dissatisfied Dissatisfied Highly Dissatisfied Total Respondents 21 98 27 3 1 150 Percentage % 14 65.33 18 2 0.66 100

Findings: From the above table, 14% of the employees are highly satisfied with Servion, 65.33% are satisfied, 18% neither satisfied nor dissatisfied, 2% are dissatisfied and 0.66% are highly dissatisfied respectively. Inference: It is inferred that majority of the employees are satisfied and minority are dissatisfied with Servion.

36

2% 1% 18%

14%

Highly satisfied Satisfied Neither satisfied nor dissatisfied Dissatisfied Highly Dissatisfied

65%

Figure 3.2.9 Chart showing employees satisfaction with the company

Table 3.2.12 Table showing whether employees are given value by the management

S.No 1 2

Options Yes No Total

Respondents 145 5 150

Percentage % 96.66 3.33 100

Findings: From the above table, 96.66% of the employees are given value by the management and 3.33% are not. Inference: It is inferred that majority of the employees are valued and minority arent valued by the management.

37

EMPLOYEES ARE VALUED

3%

Yes No

97%

Figure 3.2.10 Chart showing whether employees are given value by the management

Interval estimation: p +Z 2 pq n

Values: p = 0.9667 Z/2 = 1.96

q = 1-p q = 0.0334 n = 150

Substituting in the above formula, IE = 0.9467 0.0274 IE = (0.9379, 0.9953)

Conclusion: At 95% confidence level, the intervals are between 0.9379 & 0.9953

38

Table 3.2.13 Table showing employees perception towards Servion S.No 1 2 3 4 5 Options Excellent Good Neither good nor bad Bad Worst Total Respondents 24 88 38 0 0 150 Percentage % 16 58.66 25.33 0 0 100

Findings: From the above table, 16% of the employees feel the company is excellent, 58.66% feel the company is good, 25.33% neither good nor bad. Inference: It is inferred that majority of the employees feel the company is good and minority feel as excellent.

39

EMPLOYEES' PERCEPTION TOWARDS SERVION

0% 25% Excellent Good Neither good nor bad Bad 59% Worst

16%

Figure 3.2.11 Chart showing employees perception towards Servion

Two way Anova

3.2.14: Comparative analysis between employees period with the company and perception towards the company

Ho: There is no association with the period and perception about the company.

Perception Excellent Period 0 2 yrs 2 4 yrs 4 6 yrs Above 6 yrs Total 3 5 7 9 24 Good 65 12 10 1 88

Neither good nor bad 25 7 2 4 38

Total 93 24 19 14 150

Calculations: Let X1, X2, X3 be the responses for perception

40

And Y1, Y2, Y3, Y4 be the period Correction Factor (CF) = T2 / N = 1502 / 12 = 1875

Total Sum of squares (TSS) =

+ X 2 2 + X 3 2 + X 4 2 - CF

= 3365 ( X 1) 2 + ( X 2 ) 2 + ( X 3 ) 2 n

Sum of square of rows (SSR) =

CF

= 570.5 ( Y 1) 2 + ( Y2 ) 2 + ( Y3 ) 2 + ( Y4 ) 2 n

Sum of square of columns (SSC) =

CF

= 1379.66 Sum of square of error (SSE) = TSS SSR SSC = 1414.84 Two-Way Anova Table Source of variation Between rows Between columns Sum square SSR Degree of freedom (m - 1) = 3 Mean square MSR = SSR/ m 1 = 570.5 / 3 = 190.16 MSC = SSC/ n 1 = 1379.66 / 2 = 689.83 Variance ratio F1=MSE/MSR =1.33 F2=MSC/MSE =2.71

SSC

(n 1) = 2

41

Within sample

SSE

(m 1) (n 1) =6

MSE = SSE / (m 1)(n 1) = 1414.84 / 6 = 253.80

F1 = 1.33 F = 0.05 at (3,6) df = 4.76 F > Fcal

F2 = 2.71 F = 0.05 at (2,6) df = 5.14 F > Fcal Hence we accept Ho

Conclusion: Hence we conclude that there is no association between period with company and employees perception towards the company. Table 3.2.15 Table showing whether employees are matched with right job & compensation

S.No 1 2

Options Yes No Total

Respondents 143 7 150

Percentage % 95.33 4.66 100

Findings: From the above table, 95.33% of the employees are placed in the right job with the right compensation and 4.66 are not. Inference: It is inferred that majority of the employees placed in the right job with the right compensation and minority arent.

42

JOB & COMPENSATION MATCHED

5%

Yes No

95%

Figure 3.2.12 Chart showing whether employees are matched with right job & compensation Interval estimation:

p +Z 2

pq n

Values: p = 0.9533 Z/2 = 1.96

q = 0.0.0466 n = 150

Substituting in the above formula, IE = 0.9533 0.033 IE = (0.9195, 0.9863)

Conclusion: At 95% confidence level, the intervals are between 0.9195 & 0.9863

43

Table 3.2.16 Table showing the changes found in employees after joining Servion

S.No 1 2 3 4 5

Options Increased domain/ job knowledge Attitude changes Became efficient Became effective No change Total

Respondents 78 31 13 22 6 150

Percentage % 52 20.66 8.66 14.66 4 100

Findings: From the above table, 52% of the employees have got increased domain and job knowledge after joining Servion, 20.66% have changes in attitude, 8.66% became efficient, 14.66% became effective and rest 4% found no changes respectively. Inference: It is inferred that majority of the employees have got increased domain/job knowledge and minority found no changes after joining Servion.

44

CHANGES AFTER JOINING SERVION

4% 15%

Increased domain/ job knowledge Attitude changes

9%

51%

Became efficient Became effective

21%

No change

Figure 3.2.13 Chart showing the changes found in employees after joining Servion Table 3.2.17 Table showing whether employees would refer Servion to others

S.No 1 2

Options Yes No Total

Respondents 142 8 150

Percentage % 94.66 5.33 100

Findings: From the above table, 94.66% of the employee says they will refer their friends or relative to join Servion and the rest 5.33% would not. Inference: It is inferred that majority of the employees will refer to their friends and relatives and minority would not.

45

160 140 120 100 80 60 40 20 0 RESPONDENTS PERCENTAGE Yes No

Figure 3.2.14 Chart showing whether employees would refer Servion to others

Interval estimation: p +Z 2 pq n

Values: p = 0.9466 Z/2 = 1.96

q = 0.0533 n = 150

Substituting in the above formula, IE = 0.9466 0.036 IE = (0.9106, 0.9826)

Conclusion: At 95% confidence level, the intervals are between 0.9106 & 0.9826

46

Table 3.2.18 Table showing the ranks of the motivational factors by Servion Options Promotion Rewards Awards Salary hikes Mentors Rank Rank Rank Rank Rank 1 2 3 4 5 42 45 15 30 18 36 39 30 24 21 24 21 72 21 12 30 21 6 60 33 18 24 27 15 66

Applying weighted average method Ranks First Second Third Fourt h Weights 5 4 3 2 Fifth 1

47

W1 210 150 75 225 90

W2 144 96 120 156 84

W3 72 63 216 63 36

W4 60 120 12 42 66

W5 18 15 27 24 66

Total 504 444 450 510 369

Wtd Avg 33.6 29.6 30 34 24.6

Rank II IV III I V

Findings: From the above table, 1st rank is given to salary hikes, 2nd rank to promotion, 3rd rank is given to awards, 4th rank is given to awards and 5th rank mentoring for the motivational factors given by Servion to the employees. . Inference: It is inferred that 1st ranks falls on salary hikes and 5th rank to mentoring.

16%

23% Promotion Rewards Awards Salary hikes 19% Mentors

22%

20%

Figure 3.2.15

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Chi-square Test

Table 3.2.19: Analysis of motivational factors

Ho: There is no association between the motivational factors.

Oi 33.6 29.6 30 34 24.6

Ei 30 30 30 30 30

(Oi - Ei)2 12.96 0.16 0 0.16 29.16 Total

(Oi - Ei)2 / Ei 0.432 0.005 0.0004 0.533 0.972 1.94

cal
2

= 1.94

0.05 = 9.49 cal

2

<

0.05

49

Hence, we accept Ho

Conclusion: Hence we conclude that there is no association between the motivational factors.

Table 3.2.20 Table showing the flexibility of the work schedule

S.No 1 2 3 4 5

Options Highly Flexible Flexible Neither flexible Inflexible Highly inflexible Total

Respondents 43 63 42 2 0 150

Percentage % 28.66 42 28 1.33 0 100

Findings: From the above table, 28.66% of the employees feel the work schedule is highly flexible, 42% feel as flexible, 28% feel its neither flexible nor inflexible, 1.33% feel as inflexible. Inference: It is inferred that majority of the employees feel the work schedule is flexible and minority feel as inflexible.

50

FLEXIBILITY IN WORK SCHEDULE

1% 28% 29% Highly Flexible Flexible Neither flexible Inflexible 42%

Figure 3.2.16 Chart showing the flexibility of the work schedule

Chi Square test

Table 3.2.21: Comparative analysis of flexibility in work schedule and changes in the skills

Ho: The flexibility in work schedule and changes in the skills are independent

Factors Flexibility Changes Total

1 102 78 180

2 42 37 79

3 6 35 41

Total 150 150 300

Ei =

Row total * Column total

51

Grand total

Oi 102 78 42 37 6 35

Ei 90 90 39.5 39.5 20.5 20.5

(Oi - Ei)2 144 144 6.25 6.25 210.25 210.25 Total

(Oi - Ei)2 / Ei 1.6 1.6 0.15 0.15 10.25 10.25 24.02

cal
2

= 24.02

0.05 = 5.99 cal

2

>

0.05

Hence, we reject Ho

Conclusion: Hence we conclude that flexibility in work schedule and changes in the skills are dependent

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Table 3.2.22 Table showing the importance of career planning to overcome attrition

S.No 1 2 3

Options High Medium Low Total

Respondents 75 63 12 150

Percentage % 50 42 8 100

Findings: From the above table, 50% of the employees feel career planning should be given high priority to overcome attrition, 63% feel medium priority should be given and 12% feel low priority. Inference: It is inferred that majority of the employees feel career planning should be given high priority to overcome attrition and minority feel low priority.

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CAREER PLANNING

8%

High 50% 42% Medium Low

Figure 3.2.17 Chart showing the importance of career planning to overcome attrition Table 3.2.23 Table showing the importance of Performance appraisal to overcome attrition

S.No 1 2 3

Options High Medium Low Total

Respondents 107 37 6 150

Percentage % 71.34 24.67 4 100

Findings: From the above table, 71.33% of the employees feel performance appraisal should be given high priority to overcome attrition, 24.66% feel medium priority should be given and 4% feel low priority. Inference: It is inferred that majority of the employees feel performance appraisal should be given high priority to overcome attrition and minority feel low priority.

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PERFORMANCE APPRAISAL

4% 25% High Medium Low 71%

Figure 3.2.18 Chart showing the importance of Performance appraisal to overcome attrition

Chi Square test

Table 3.2.24: Comparative analysis between career planning & performance appraisal

Ho:

The factors used to overcome attrition are independent

Factors Career planning Performance appraisal Total

High 75 107 182

Medium 63 37 100

Low 12 6 18

Total 150 150 300

Ei =

Row total * Column total

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Grand total

Oi 75 107 63 37 12 6

Ei 91.67 91. 67 46. 67 46. 67 11. 67 11. 67

(Oi - Ei)2 277.77 235.11 266.77 93.44 0.11 32.11 Total

(Oi - Ei)2 / Ei 3.03 2.56 5.71 2.00 0.01 2.75 19.49

cal
2

= 19.49

0.05 = 9.49 cal

2

>

0.05

Hence, we reject Ho

Conclusion: Hence we conclude that the factors used to overcome attrition are dependent

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3.3 FINDINGS
It is found that nearly 80% of the employees belong to younger generation that is between 20 and 30 It is found that 50.66% of the employees are bachelor degree holders, 48% are master degree holders 1.33% are PG diploma holders It is found that nearly 75% of the employees feel that attrition is a serious issue in IT industry. It is found that 34.66% of the employees feel the reason for leaving the company is due to career development, 4% feel improper leadership, 27.33% feel low CTC, 12% feel dissatisfied company policy and 15.33% feel as monotonous work. It is found that most of the employees feel that attrition can be minimized by providing challenging work by reducing work pressures and by reducing work loads, It is found that 80% of the employees are satisfied with Servion, It is found that 96.66% of the employees are given value by the management.

57

 It is found that 16% of the employees feel the company is excellent, 58.66% feel the company is good, 25.33% neither good nor bad. It is found that 95.33% of the employees are placed in the right job with the right compensation. It is found that 52% of the employees have got increased domain and job knowledge after joining Servion, 20.66% have changes in attitude, 8.66% became efficient, 14.66% became effective and rest 4% found no changes respectively. It is found that 94.66% of the employee says they will refer their friends or relative to join Servion. It is found that the company is giving importance to salary hikes and to promotion for motivating the employees. It is found that 28.66% of the employees feel the work schedule is highly flexible, 42% feel as flexible, 28% feel its neither flexible nor inflexible, 1.33% feel as inflexible. It is found that career planning and performance appraisal should be effectively and efficiently utilized in order to reduce attrition.

58

3.4 SUGGESTIONS
The management can boost intrapreneurship to increase the morale of the employees. The management can arrange for one day workshops. Understand employees individual problems and provide right solutions and can also provide facilities they need. The management need to provide more challenging and newer assignments The management must give chances to employees to implement their ideas and give support to achieve their best performance level. The management arrange for monthly meetings with Supervisors to know the actual problems and for suggestions. The functional heads should make a point to check about the employees satisfaction often. Continuous employee engagement activities can be practiced.

59

The company must concentrate on recreational activities as there is no such thing up to now.

3.5 CONCLUSION
From the study it is clear that the attrition in IT sector is mainly due to career development and low CTC. People change their job once a company gives more compensation and better job compared to the current employer. The employees at Servion are satisfied with the company and their perception towards the company is also good. The company has given continuous motivation and encouragement to the employees. Based on the above factors the company is having a good control over attrition.

60