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A Study on Employee Attrition with Special Reference to


Software Company in Bangalore city
Prof. R.Murugesan
Assistant Professor
Department of Management of Studies
P.S.V.College of Engineering and Technology
Krishnagiri-635108, Tamilnadu, India
Mail id : murugesanpsv@yahoo.in
Mobile No: 91-9688225826

Prof Dr.T.Vetrivel
Professor cum Head
Department of Management Studies
Velalar College of Engineering & Technology, Erode.
Mail id: vetreemba@gmail.com
Mobile No: 91- 9843658303
Abstract

The term attrition as the process or state of being gradually worn down. Accordingly the
attrition process sometimes starts after a person is employed in an organization and ends when he quits

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or retires. The process, in a sense, spreads over the entire period of employment that may be a span of
about 40 years. But in the modern day business and employment relations attrition is often not a gradual
process. this paper tells about the study of employee attrition rate in the Software Company. the
objective reveals to find out the level of dissatisfaction among employees towards their job, to identify
remedial measures, to reduce attrition at Software Company scope of this paper tells study can help the
management to know for which reason employees tend to change their job in this organization through
dissatisfaction factors faced in the organization and also help to find out the problems , it provides
suggestions and it develop a long term technology strategy while remaining flexible. limitation of the
study was restricted only time constraints of the employees would have influenced their responses,
research methodology used were percentage method, Karl Pearsons correlation, chi-square test, it is
suggested that global recession and attrition can be taken as an issue for discussion and research can be
interpreted that majority of the employees give the opinion for excellent opportunity for complaint and
resolution, the paper captures the unique blend of attrition and causes of attrition for organization.

Keywords: attrition, voluntary attrition, involuntary attrition, compulsory attrition,

Chapter-I

1.1. Introduction

Meaning of attrition

Employers generally consider attrition a loss of valuable employees and talent. However, there is
more to attrition than a shrinking workforce. as employees leave an organization, they take with them
much-needed skills and qualifications that they developed during their tenure. on the other hand, junior

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professionals with promising qualifications can then succeed into higher level positions or business
owners can introduce more diversity in experience or expertise. Accordingly, there are benefits and
disadvantages to attrition.

Definition

The Websters dictionary defines the term attrition as the process or state of being gradually
worn down. Accordingly the attrition process sometimes starts after a person is employed in an
organization and ends when he quits or retires. the process, in a sense, spreads over the entire period of
employment that may be a span of about 40 years. but in the modern day business and employment
relations attrition is often not a gradual process. it is often abrupt, quick, sudden and sometimes dramatic
especially in tight labor market conditions where employers compete with one another to employ people
considered to be suitable to the jobs they have in their organizations. the term employee attrition is used
rather interchangeably with employee turnover.

Reason for attrition

poor induction
poor work environment
poor performance
poor reward strategy
better job opportunity
poor mentoring by immediate boss
negative feedback from market

Kinds of attrition

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Voluntary attrition-voluntary attrition takes place when the employee leaves the organization
by their own will. pull factors like higher employments elsewhere, better opportunities of growth
and promotion etc are responsible for this kind of attrition.
Involuntary attrition-involuntary attrition takes place when the employees leave the
organizations due to some negative forces or push factors like faulty promotion policy, biased
performance appraisal etc.
Compulsory attrition-it takes place due to the rules and regulations of the government and that
of the organization as well. it includes attrition taking place due to attaining the age of
retirement, completion of tenure etc.
Natural attrition-it takes place due to the causes and factors that are beyond the control of the
individual and organization as well. These factors may include end of life, insanity etc.

Chapter-II

2.1. Objectives of the study

To find out the employee attrition at Software Company


To analyses the factors influencing the employee attrition.
To find out the level of dissatisfaction among employees towards their job
To analyses the 'exit questionnaire form' issued to the employees who leave the organization
To identify remedial measures to reduce attrition at Software Company

2.2. Scope of the study

This study has a wider scope in any kind of organization since "attrition" is general one and
makes the employees to put further practical difficulties and need factors in the organization. This study
can help the management to know for which reason employees tend to change their job. Through

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dissatisfaction factors faced in the organization and also help to recover by providing the optimum
suggestions or solutions.

2.3. Statement of the problems

Lack of proper communication between co-workers.


Less beneficial measures to employees.
The risk of crippling supply chain disruptions.
To develop a long term technology strategy while remaining flexible.
To understand the meaning of regulation and government policy.
Uncertainty leads to a short term focus.
Strategic thinking and problem solving are the key to successful business.

2.4. Limitations of the study

Respondents feel fear to share the original views


This is limited to minda company views, ideas and suggestions.
Time constraints of the employees would have influenced their respondents.
The study was restricted only at Software Company
The sample is 50.this may not be the true representation of total population
Time constraints of the employees would have influenced their respondents.
There may be ambiguity in responses and hence there could be bias in findings

Chapter- III

3.1.Review of literature

Denver and McMahon (1992) define labor turnover as the movement of people into and out of
employment within the organization while mobley (1982) defines turnover as voluntary cessation of

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membership in an organization by an individual who receives monetary compensation for participating


in that organization".

Hom & Griffith (1995) state that several investigations in the past have revealed that
organizational commitment and job satisfaction are crucial factors that influence turnover intention.

Griffith et al (2000) concludes that pay and pay-related variables have a significant effect on
employee turnover.

Abassi el al (2000) concluded that there are other factors like inefficient and poor recruitment
practices, style of management, lack of recognition, work place conditions, and a lack of competitive
compensation system that cause employees to quit the organization.

Meaghanetal (2002) draws attention on controlling attrition; he states that the value of
employees to an organization is a very crucial element in the success of the organization. he further
states that this value is intangible and cannot easily be replicated; therefore the managers should control
attrition.

Morrell et.al,(2004) a number of terms have been used for employee turnover such as
quits,attrition,exit.mobility,migration or succession.

Barrick & Zimmerman (2005) accordingly, many studies have used turnover as a criterion to
evaluate the effectiveness of various organizational processes, such as selection.

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Firth et al (2007) tries to find out the causes of attrition, he says that there are a range of factors
that lead to job related stress, lack of commitment towards the organization and job dissatisfaction which
cause employees to quit.

Ongori (2007) focuses on stress as a cause of attrition; he says that the good workers in
organization may tend to leave when they start experiencing signs of occupational stress. this turnover
affects the organization adversely in increasing the recruitment and selection costs of the organization.

Amah.o.e.,(2009) Mosadeghrad et al.(2008),Ramachandran et al.(2011) it is quit evident


from the review of past researches that intention to stay/quit, job satisfaction and organizational
commitment were among the most consistent, close and commonly researched determinants of
employee turnover

Awang & Ahmad (2010) an employee who is satisfied with his job would perform his duties
well and be committed to his job, as well as the organization.

Tehran city ,chenari (2011) in study of factors affecting commitment of volunteers in non
government charity organization found a significant relationship between occupational, environmental
and personal factors and individual commitment, the study revealed that in terms of
priority,enviromimportant were personal factors, such as supervision ,working conditions, organizational
policies and size, safety, health and relationship with the colleagues were most important.

Atkinson (2012) problem of the staff capacity and high staff turnover in ngos in India is
compounded by the mandate to keep the staff salaries low so that major portion of funding goes into the
programs.

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Aravind hospital sood, (2013) while the image-building exercise is relatively easy for social
enterprises because of the generally acceptable nature of their social objectives, it is the consistency and
commitment with they promote such social objectives that builds the image of the organization.
adjudged among the world's top 100 ngos by the global journal, aces, aravind eye hospital, a chain of
eye-hospitals in the state of tamilnadu has the policy of not giving any kind of advertisement for jobs. in
spite of this, large number of applications are received for jobs from different parts of world, which is a
testimony to the power of brand image created.

3.2. Research Methodology

3.2.1. Meaning of Research

Research methodology refers that mainly undertaken to identify the level of employee's attitude,
the dissatisfaction factors they face in the organization and for what reason they prefer to change their
job. Once the levels of employee's attitude are identified, it would be possible for the management to
take necessary action to reduce attrition level. Research is taken place under random sampling with the
questionnaire.

3.2.2. Sample size; The sample size is 50 sample

3.2.3. Data collection method: The task of the data collection begins after a researcher problem has
been designed and research design checked out. There are two types of data namely primary and
secondary.

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3.2.4.Sampling technique; a sample as the name implied that it is a smaller representation of a large
whole instead of studying every case, which might logically be including an investigation only a small
portion is selected.

3.2.5. Sample design; a sample design plan for obtaining a sample from population. it therefore, refers
to the technique or procedure. the researcher would not adopt selecting items for the sample.

3.2.6. Sample and sampling method: The sampling method used in this project report is that clearly
specifies the probability sampling methods are should be used an individual in the sampling technique.

3.2.7. Statistical Tools used

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. Percentage method

2. Karl Pearsons correlation

3. Chi-square

3.2.7.1.Percentage method:

The collected data is converted into 100% and the percentage has been analyzed. Formula

No . of respondents
Percentage = 100
Total respondents

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3.2.7.2Karl 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

x


2

y


2
N x 2

Nxy( x )( y)
R=

Where r is the correlation co-efficient

3.2.7.3.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 here is Formula

[ O iE i] [O iE i]
x 2= x 2=
Ei Ei

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Chapter-IV

Data Analysis and Interpretations

Table no: 4.1 Gender statuses of the respondents

S.No Gender No of Respondents Percentage of Respondents


1 female 8 16%
2 male 42 84%
total 50 100%
Source: Primary data

Interpretation: From the above table it is inferred that 16% of the respondents are male and
84% of the respondents are female.

Table no: 4.2 age of the respondents

S.No Age No of Respondents Percentage of Respondents


1 below 20 0 0%
2 20 yrs-30 yrs 38 76%
3 30 yrs-40 yrs 9 18%
4 40 yrs & above 3 6%
total 50 100%
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Source: primary data

Interpretation: from the above table it is inferred that 0% of the respondents are below 20
yrs,76% of the respondents are 20 yrs-30 yrs,18%of the respondents are 30 yrs-40 yrs,6% of the
respondents are 40 yrs and above.

Table no: 4.3 comfortable with your nature of job

S.No Opinion No of Respondents Percentage of Respondents


1 satisfied 7 14%
2 highly satisfied 3 6%
3 natural 15 30%
4 dissatisfied 12 24%
5 highly dissatisfied 13 26%
total 50 100%
Source: primary data

Interpretation: from the above table it is inferred that 14% of the respondents are satisfied, 6%
of the respondents are highly satisfied, 30% of the respondents are natural, 24% of the respondents are
dissatisfied and 26% of the respondents are highly dissatisfied.

Table no: 4.4 satisfied with your working condition

S.No Opinion No of Respondents Percentage of Respondents


1 satisfied 7 14%
2 highly satisfied 2 4%
3 natural 21 42%
4 dissatisfied 11 22%
5 highly dissatisfied 9 18%

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total 50 100%
Source: primary data

Interpretation: from the above table it is inferred that 14% of the respondents are satisfied, 4 %
of the respondents are highly satisfied, 42% of the respondents are natural, 22% of the respondents are
dissatisfied and 18% of the respondents are highly dissatisfied.

Table no: 4.5 providing any counseling program to reduce stress

S.No Opinion No of Respondents Percentage of Respondents


1 satisfied 7 14%
2 highly satisfied 6 12%
3 natural 17 34%
4 dissatisfied 15 30%
5 highly dissatisfied 5 10%
total 50 100%
Source: primary data

Interpretation: from the above table it is inferred that 14% of the respondents are satisfied,
12% of the respondents are highly satisfied, 34% of the respondents are natural,30% of the respondents
are dissatisfied and 10% of the respondents are highly dissatisfied.

Table no: 4.6. satisfied with the work balance in your current job

S.No Opinion No of Respondents Percentage of Respondents


1 satisfied 9 18%
2 highly satisfied 7 14%
3 natural 10 20%
4 dissatisfied 10 20%

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5 highly dissatisfied 14 28%


total 50 100%
Source: primary data

Interpretation: from the above table it is inferred that 18% of the respondents are satisfied,
14% of the respondents are highly satisfied, 20% of the respondents are natural, 20% of the respondents
are dissatisfied and 28% of the respondents are highly dissatisfied.

Table no: 4.7 are you satisfied with your salary

S.No Opinion No of Respondents Percentage of Respondents


1 satisfied 8 16%
2 highly satisfied 5 10%
3 natural 9 18%
4 dissatisfied 17 34%
5 highly dissatisfied 11 22%
total 50 100%
Source: primary data

Interpretation: From the above table it is inferred that 16% of the respondents are satisfied,
10% of the respondents are highly satisfied, 18% of the respondents are natural, 34% of the respondents
are dissatisfied and 22% of the respondents are highly dissatisfied.

Table no: 4.8 are you satisfied with your job

S.No Opinion No of Respondents Percentage of Respondents


1 satisfied 4 16%
2 highly satisfied 6 10%
3 natural 11 18%
4 dissatisfied 18 36%

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5 highly dissatisfied 10 20%


total 50 100%
Source: primary data

Interpretation: From the above table it is inferred that 16% of the respondents are satisfied,
10% of the respondents are highly satisfied, 18% of the respondents are natural,36% of the respondents
are dissatisfied and 20% of the respondents are highly dissatisfied.

Table no: 4.9 respondents associates (follow employees) committed to doing quality
work

S.No Opinion No of Respondents Percentage of Respondents


1 satisfied 7 14%
2 highly satisfied 3 6%
3 natural 17 34%
4 dissatisfied 15 30%
5 highly dissatisfied 8 16%
total 50 100%
Source: primary data

Interpretation: from the above table it is inferred that 14% of the respondents are satisfied, 6%
of the respondents are highly satisfied, 34% of the respondents are natural,30% of the respondents are
dissatisfied and 16% of the respondents are highly dissatisfied.

Table no: 4.10. Do you agree with better opportunities in your company

S.No Opinion No of Respondents Percentage of Respondents


1 satisfied 4 8%
2 highly satisfied 6 12%

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3 natural 7 14%
4 dissatisfied 18 36%
5 highly dissatisfied 15 30%
total 50 100%
Source: primary data

Interpretation: from the above table it is inferred that 8% of the respondents are satisfied,12%
of the respondents are highly satisfied, 14% of the respondents are natural,36% of the respondents are
dissatisfied and 30% of the respondents are highly dissatisfied.

Table no: 4.11. Working hours fit in minda

S.No Opinion No of Respondents Percentage of Respondents


1 satisfied 7 14%
2 highly satisfied 4 8%
3 natural 14 28%
4 dissatisfied 16 32%
5 highly dissatisfied 9 18%
total 50 100%
Source: primary data

Interpretation: from the above table it is inferred that 14% of the respondents are satisfied, 8%
of the respondents are highly satisfied, 28% of the respondents are natural,32% of the respondents are
dissatisfied and 18% of the respondents are highly dissatisfied.

Table no: 4.12.compensation package is satisfied in minda

S.No Opinion No of Respondents Percentage of Respondents


1 satisfied 3 6%
2 highly satisfied 4 8%

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3 natural 18 36%
4 dissatisfied 17 34%
5 highly dissatisfied 8 16%
total 50 100%
Source: primary data

Interpretation: from the above table it is inferred that 6% of the respondents are satisfied, 8% of
the respondents are highly satisfied, 36% of the respondents are natural, 34% of the respondents are
dissatisfied and 16% of the respondents are highly dissatisfied.

Table no: 4.13. What extent to organizational culture in your company

S.No Opinion No of Respondents Percentage of Respondents


1 satisfied 5 10%
2 highly satisfied 9 18%
3 natural 11 22%
4 dissatisfied 10 20%
5 highly dissatisfied 15 30%
total 50 100%
Source: primary data

Interpretation: From the above table it is inferred that 10% of the respondents are satisfied,
18% of the respondents are highly satisfied, 22% of the respondents are natural,20% of the respondents
are dissatisfied and 30% of the respondents are highly dissatisfied.

Table no: 4.14 do you recognition for effort

S.No Opinion No of Respondents Percentage of Respondents


1 satisfied 3 6%
2 highly satisfied 2 4%

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3 natural 7 14%
4 dissatisfied 23 46%
5 highly dissatisfied 15 30%
total 50 100%
Source: primary data

Interpretation: from the above table it is inferred that 6% of the respondents are satisfied, 4%
of the respondents are highly satisfied, 14% of the respondents are natural, 46% of the respondents are
dissatisfied and 30% of the respondents are highly dissatisfied.

Table no: 4.15.any chances to be innovative

S.No Opinion No of Respondents Percentage of Respondents


1 satisfied 5 10%
2 highly satisfied 7 14%
3 natural 10 20%
4 dissatisfied 13 26%
5 highly dissatisfied 15 30%
total 50 100%
Source: primary data

Interpretation: From the above table it is inferred that 10% of the respondents are satisfied,
14% of the respondents are highly satisfied, 20% of the respondents are natural, 26% of the respondents
are dissatisfied and 30% of the respondents are highly dissatisfied.

Table no: 4.16 opportunities for career development

S.No Opinion No of Respondents Percentage of Respondents


1 satisfied 12 24%
2 highly satisfied 4 8%

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3 natural 18 36%
4 dissatisfied 10 20%
5 highly dissatisfied 6 12%
total 50 100%
Source: primary data

Interpretation: from the above table it is inferred that 24% of the respondents are highly
satisfied, 8% of the respondents are satisfied, 36% of the respondents are natural, 20% of the
respondents are dissatisfied and 12% of the respondents are highly dissatisfied.

Table no: 4.17 satisfied with your recreation facility

S.No Opinion No of Respondents Percentage of Respondents


1 satisfied 12 24%
2 highly satisfied 6 12%
3 natural 18 36%
4 dissatisfied 10 20%
5 highly dissatisfied 4 8%
total 50 100%
Source: primary data

Interpretation: from the above table it is inferred that 24% of the respondents are satisfied, 12%
of the respondents are highly satisfied, 36% of the respondents are natural, 20% of the respondents are
dissatisfied and 8% of the respondents are highly dissatisfied.

Chi-square analysis

I. Chi-square analysis of gender of the respondent and relationship between employee attrition.

Hypothesis
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h0 - there is no relationship between the gender and relationship between employee attrition.

h1 -there is a relationship between the gender and relationship between employee attrition.

Table 4.18-observed frequency I

Gender Relationship between employee attrition Total


yes no
female 5 3 8
male 35 7 42
total 40 10 50

EI = row total column total

Grand total

Table 4.19-Expected Frequency I

Gender Relationship between Total


employee attrition
yes no
female 6.4 1.6 8
male 33.6 8.4 42
total 40 10 50

Table 4.20-chi square analysis I

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S.N Observed Expected O-E (O- (O-E)2


o Frequency Frequency E)2
E

1 5 6.4 -1.4 1.96 0.3062


2 3 1.6 1.4 1.96 0.1225
3 35 33.6 1.4 1.96 0.0583
4 7 8.4 -1.4 1.96 0.2333
total 0.7203

Degree of freedom

(M-1)*(N-1)

(2-1)*(2-1)

=1

Tabulated value of degrees of freedom (1)@5% level of significance = 3.84 and The calculated
value < the table value, Therefore h0 is accepted.

Inference: There is no relationship between gender of the respondent and relationship between
employee attrition.

Correlation co-efficient

X 4 6 11 18 10
Y 9 6 10 17 8

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ISSN(Online )No :
INTERNATIONALJOURTNAL OF RESEARCH REVIEWIN
ENGINEERINGAND MANAGEMENT (IJRREM)
Tamilnadu-636121, India
Indexed By
Scribd, Google Scholar, Academia

x y x2 y2 x

y
4 9 16 81 36
6 6 36 36 36
11 10 121 100 110
18 17 324 289 306
10 8 100 64 80
50 50 597 570 568

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International Journal of Research Review in Engineering and Management (IJRREM)
,Volume-1,Issue-5 ,May -2017, Page No :27-53
www.ijrrem.in
ISSN(Online )No :
INTERNATIONALJOURTNAL OF RESEARCH REVIEWIN
ENGINEERINGAND MANAGEMENT (IJRREM)
Tamilnadu-636121, India
Indexed By
Scribd, Google Scholar, Academia

x


2

y


2
N x 2

Nxy( x )( y)
R=

50 2

50 2

5(570)
5 ( 597 )

5 ( 568 ) ( 50 ) (50)

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International Journal of Research Review in Engineering and Management (IJRREM)
,Volume-1,Issue-5 ,May -2017, Page No :27-53
www.ijrrem.in
ISSN(Online )No :
INTERNATIONALJOURTNAL OF RESEARCH REVIEWIN
ENGINEERINGAND MANAGEMENT (IJRREM)
Tamilnadu-636121, India
Indexed By
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( 2840 )( 2500 )

29852500 28502500

340

485 350

340

( 22 . 02 ) (18 .7)

340
= 411 .7

=0.8258(+VE correlation)

Chapter- V

5.1. Findings

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ISSN(Online )No :
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ENGINEERINGAND MANAGEMENT (IJRREM)
Tamilnadu-636121, India
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16% of the respondents are male and rest of 84% of the respondents is female.
76% of the age group between 20-30 years.
26% of the respondents are highly dissatisfied for the comfortable with nature of job.
42% of the respondents said, that they are neutral with your working condition but, 22% of the
respondents said dissatisfied.
34%of the respondents neutral and 30% of the respondents said that they are dissatisfied .
28% of the respondents are highly dissatisfied, about the work balance in your current job.
34% of the respondents are dissatisfied, with the salary.
36% of the respondents are dissatisfied, about satisfy with their job.
34% of the respondents are dissatisfied, about the work place infrastructure.
36% of the respondents are also dissatisfied, about their better opportunities in your company.

32% of the respondents are dissatisfied, about working hours in Software Company
36% of the respondents are neutral, about their compensation package in minda company.
46% of the respondents are dissatisfied, about the recognition for effort.
30% of the respondents are highly dissatisfied, about the chances to be innovative.
36% of the respondents are neutral, about the opportunities for career development.
36% of the respondents are neutral, about the recreation facilities.

5.2. Suggestions

Exit questionnaire form obtains properly while leaving the organization.


Work balance among the employee leads to dissatisfied level of 26%.
This major factor should be considered seriously.
Salary should be increase as per the designation and qualification.
Promotion should be considered to make the employee to retain in the organization.
The infrastructure facilities should be improved as per the employee need.
The leadership qualities style should be modified as leadership issues makes employee level.
The employee work should be appreciated at the right time to avoid attrition.

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ENGINEERINGAND MANAGEMENT (IJRREM)
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The employers should make employees to work in the comfortable zone when by providing them
the recognition factor considering there working hours and make them happy with co-employees.
By providing them the benefits the company should reduce dissatisfaction percentage.
To increase the career development percentage.
They providing chances for creativity and innovation.
They should reduce the workload to the individual employees.

5.3. Conclusion

Software Company employee attrition rate is 27%even though it is less percentage the company
is very eager still to reduce employee attrition percentage .so providing them better working condition,
salary, compensation they can bring out attrition percentage still down make it near to 10%.the serious
problem of working hours should be considered for effective functioning of the organization.

References

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6. Herzberg, Frederick (January-February). one more time: how do you motivate employees?Harvard
business review46 (1).
7. Mchenry, Susan d. (1999, September).waging war on attrition.

Page 52
International Journal of Research Review in Engineering and Management (IJRREM)
,Volume-1,Issue-5 ,May -2017, Page No :27-53
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ISSN(Online )No :
INTERNATIONALJOURTNAL OF RESEARCH REVIEWIN
ENGINEERINGAND MANAGEMENT (IJRREM)
Tamilnadu-636121, India
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International Journal of Research Review in Engineering and Management (IJRREM)
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