Contents

1. INTRODUCTION 2. REASONS FOR ATTRTION 3. STATISTICAL DATA 4. SUGGESTIONS TO CONTROL ATTRTION 5. ADVANTAGES 6. ABOUT TECHNOPARK 7. QUESTIONNAIRE 8. CONCLUSION 9. BIBLIOGRAPHY

Introduction

Ever since the markets have recovered globally, Indian IT Industry is facing a strange trend i.e., the rise in the attrition at never before levels. When there is a demand for outsourced jobs the companies are facing attrition. Attrition rate at the management level is close to 40%. The increased demand for project management skills which are still scarce in the country is driving the ATTRITION. Attrition at all levels is impacting bottom lines be it senior, mid or junior level. Indias top 4 IT companies have seen a consistent rise in the attrition rates as compared to the data of last quarter to the same period last year. The picture is alarming as a percentage increase in attrition in any of the four major IT companies could mean more than 10,000 employees leaving their organizations.

Reasons For Rise In Attrition

The Compensation and Benefits provided by the management if does not satisfies the employees they will leave the organization. The inconvenience related to working schedules and travelling long distances to reach the work place leads to employees leaving there jobs. If the employees are not provided with better growth options within the organization, it will lead to the reduction in the productivity of the individual. Companies which are not flexible in terms of readily allowing movement of employee from one team to the other across domains rather resorting to recruiting people from outside with the same skill set are facing serious attrition problems. Companies having the policy of more working hours and less recreation time are suffering from the problem of dissatisfied employees and less productivity. The IT firms relying heavily on existing workforce and giving less importance to the recruitment of the new employees, has also been an important reason for high attrition rates. Bad working culture has been considered by many employees to leave there present organizations. Moreover the values and the beliefs of the employees need to be considered and should not be ignored.

Parameters for attracting potential employees Percentage of companies a. Variable Pay b. Career Growth Opportunities c. Additional Benefits d. Stock Options e. Flexible Work Schedules f. Advance Training g. Others 54.0 70.0 22.0 22.0 20.0 46.0 16.0

Reasons for leaving the organization Percentage Top Senior Middle Junior Management Management Management Management

a. Better pay opportunities elsewhere b. Dissatisfaction at work place c. Better growth / career opportunities d. Employee has personal reason e. Others

16.0 4.0 24.0 14.0 6.0

36.0 4.0 40.0 22.0 4.0

58.0 12.0 54.0 34.0 6.0

60.0 18.0 46.0 42.0 18.0

The above data indicates that for attracting good personnel and to retain them the companies are giving emphasis in providing better career growth opportunities. Providing Advanced training to the employees is top in the agenda of the HR managers. This help in retaining the employees in the long run. The pay scales have to increase as per the contributions of the employee so as to keep the employees satisfied and to maintain their productivity. And with the provision of Flexible Work Schedules the firms will be able to retain their employees to a large extent.

Suggestions To Control Attrition

Make the work place more flexible: Introducing flexible measures like work from work from home, change in work location, flexible work timings, four day work week where employees stretch for 10-12 hours each day and take an additional day off with support from home will be beneficial for employees travelling long distance when necessary. Misc/Util Services: Starting a association sort of thing and enabling them to take care of useful activities like land sale/purchase. We all know of people in IT Company helping each other in buying/selling land and forming groups among themselves to do this thing. If the whole thing is done from the company with company behind the association, it will give the whole thing credibility and will see more participation. Again the next point is about flexibility. Companies need to be flexible in terms of readily allowing movement of employee from one team to the other across domains. We have seen companies recruiting people from outside with the same skill set as of existing employees where the existing employees have been asking for a change. This really demoralizes the employee morale. Give more growth options to the employees. Growth as of now in the service industry means moving to a managerial position. Not all people have the necessary managerial skills, but want to be promoted. Hence, resulting in bad managers and dissatisfied employees working under him. There should be a technical ladder for growth as well. Hike in the wages of the employees may also be adopted but it will only be a short term solution. Promotion of open culture in letter and spirit by the management may also help in curbing attrition.

 Valuing the views of the employees is an important aspect that the HR team needs to seriously consider. The IT and ITeS firms ought to take on fresher graduates from technical institutes and train them to fulfill the void due to attrition

These are some of the points which would create a win win situation for both employees and the companies and that the methods used by company are employee oriented.

ADVANTAGES

Despite all its demerits the rise in the rising Attrition Rate of the company has got its advantages too. These are disclosed below:

It opened up new employment opportunities together with incentives for job seekers. The companies are making an all-out endeavor to bring together the best talents available as well as keep hold of the vital resources on hand. The company will be able to make improvements in the present working conditions There will be hike in the wages and other benefits to be provided to the employees. Overall productivity of the employee and also the company will increase. It gives an opportunity to the company to have improvements and necessary changes in its HR department.

TECHNOPARK
Trivandrum

Techno Park Kerala is the ultimate place to be. Enveloped in an awe-inspiring ambience, Techno Park offers a one-stop solution to all your business needs related to IT, Communication and Entertainment. Spread over nearly 300 acres with 4 million sq. ft. of built-up space available currently, Techno park hosts over 200 IT and ITES companies employing over 28,000 IT professionals, including five PCMM level 5 company, 6 CMMI level 5 and four CMM Level 3 and over 20 ISO 9001 certified companies. Techno Parks vision is to provide a holistic enabling environment to make knowledge industry intrinsically competitive and world class. Techno Park, though only a decade old, is home to 170 companies and 25,000 employees. Global IT majorsInfosys, Allianz Cornhill, Ernst & Young , Mckinesy & Co ,US Software ,RM Plc, Tata Elxsi, IBS, Sherston ,IVL , NeST-have all moved onto Techno park, thanks to the unmatched advantage that the park offers. Smooth start-up, excellent infrastructure, Inspiring ambience, etc. Unique factors that make Techno park the largest in the country and the finest in Asia.

Ques: What is your take on Attrition rate in the IT Industry? Ans: The Indian IT companies which did not give much hike for the last two years are facing attrition at never before levels. With renewed demand for outsourced jobs the Indian IT industry is facing a big worry in the form of attrition at the level of project managers. Ques: What is the current attrition rate at Techno Park, especially in your company? Ans: Currently the attrition rate at the Techno Park is close to 5%, which is not bad at all. Ques: How would you compare your companys performance with respect to the industry? Ans: If we compare the companys performance with that of the industrys, the firm has got a far lower attrition rates. This proves that the firm is able to satisfy its employees and retain them in the long run. Ques: Why the Techno Park has got a low attrition rate? Ans: Some of the important reasons for it are

Best law and order. Best social infrastructure. Walk-in -and -work environments, Single Window Clearances. Physical and communication infrastructure meeting global IT/ITES standards. Global -standard schools like Trivandrum International School -12 km from techno park campus. . The quality of life the city of Trivandrum provides.

Ques: What are things the company is doing to retain its talented personnel? Ans: The firm has done some the following things which include: By making the work place more flexible for example, flexible work timings, take an additional day off with support from home will be beneficial for employees travelling long distance when necessary. The company allows to have an informal association of the employees. Readily allowing movement of employee from one team to the other across domains. By giving more growth options to the employees. Hike in the wages of the employees. Promotion of open culture in letter and spirit by the management. Valuing the views of the employees.

Ques: Do you feel that attrition rates to some extent are good for the company? Ans: An attrition rate to a reasonable extent is good for the company, as it paves the way for new employment opportunities together with incentives for job seekers. The company will be able to make improvements in the present working conditions and the productivity of the employee and also the company will increase.

Ques: What is the main reason for rise in the attrition rates? Ans: Some of the important reasons may be, the Compensation and Benefits provided by the management may not be satisfactory, inconvenience related to working schedules, employees are not provided with better growth options, Companies having more working hours and less recreation time, relying heavily on existing workforce or Bad working culture.

Ques: Do you feel that global recovery is also responsible for fuelling the attrition rates?

Ans: With the recession over, the industry has been witnessing a surge in hiring with almost everyone recruiting laterally. Consequently, this has given rise to widespread attrition that is now haunting the IT and ITeS players in India.

Ques: What will be the effect on the companys or industrys productivity? Ans: It will have a serious negative impact across all the sectors of the company if it is increasing rapidly.

Ques: What is your take on the future trends in the attrition rates with regards to the IT Industry? Ans: Attrition is likely to stay elevated in the near term after earlier-than-expected turnaround in demand evoked a knee-jerk hiring from IT companies. The challenge is higher at mid and senior-level positions.

CONCLUSION

Upward trajectory in salary trends across sectors. Compensation & Benefits continue to be a prominent focus area within the HR domain. IT / ITES sectors continue to show prominent salary increase, similar to previous years. Variable pay becoming an increasingly popular option with 84 % of the companies linking compensation & benefits to performance. Attrition rates across sectors alarming, especially among junior managers and front end roles. Significant numbers of companies face difficulty in retaining top performers. Wage hikes is not the real answer to plug attrition, it is the only response possible in the short run. The challenge clearly is to bring in more freshers and training them intensely to fill up the gap caused due to attrition.

Words like attrition, retention and job switch which had become taboo since almost two years ago are making noise yet again. With the IT market slowly picking up

and hiring all set to increase in 2010, the cheer is back on employees face and the HRs are worried again to retain their key employees.

Bibliography

Watson Wyatt India Total Rewards Survey TM