International Journal of Applied Engineering Research ISSN 0973-4562 Volume 11, Number 5 (2016) pp 3449-3453 © Research India Publications. http://www.ripublication.com

Assessment of Employee Attrition among IT Employees R. Shanmugam* Research Scholar, SRM School of Management, SRM University, SRM Nagar, Kattankulathur-603203, Kancheepuram, Tamil Nadu, India.

Dr. N. Giri Babu Associate Professor, Department of Management Studies, Sri Venkateswara College of Engineering & Technology, R.V.S. Nagar, Chittoor, Andhra Pradesh, India.

attrition. But medium and small companies cannot afford to overcome their attrition problem in the same way. They need to design and adopt measures to intervene the attrition tendency, and at least control the same. Secondly, large companies are less affected by attrition issues, but small and medium units are affected seriously which poses a threat to their existence. Minimizing the level of avoidable attrition calls for identification of the causes for attrition and the consequences of the same.

Abstract In today’s competitive business environment, success is highly dependent upon the employee retention. So if an organization wants to achieve goals through people, better HR practices have to be adopted to bring down the attrition levels. According to the statistics and survey in the year 2010-2011, the attrition rate is stated to be high on the information technology (IT) and healthcare sectors are witnessing the highest attrition rates among talented employees, making retention of critical manpower resources a key challenge Attrition is one of the series issues in every organization in recent days. It is the major problems highlight the organization. It can be also being called as employee turnover or employee defection. ” Whenever the well trained potential employees leaves the organization. It creates heavy loss to the organization. So the organization not only loses the skill employees and knowledge base also but the time replace of employee is also difficult. So Hr department is very much focusing to minimize attrition and creating opportunities to retain the employees.

Review of Literature According to Martins and Coetzee (2007), says that, organization culture and motivation needs of the employees should match the organization objectives, work life balance and working environment. According to Ghazzawi (2008), employee’s team member, coworker, organization culture to which the individual is exposed all have prospective to persuade job satisfaction. Adhikari, 2009; Kasmi, (2011) states that individual may leave the job in various reason such as Based on job role, responsibilities and assignment, supervision, career, advancement, growth and development, stress, personal, family situations, stress, and society. There is a relationship between commitment towards organization and attrition is also a predominant factor said by Mohammad (2006) Morris and Madsen (2007) research indicates that work life balance is a one of the major influencing factor in attrition. So HR department should focus and devise a suitable method and frame the policies, practices, programs and interventions. Moore (2007) research showed that a mismatch of managerial staffs and non-managerial staff in work life balance issues. Training is more important for employees where they acquire knowledge skill and abilities to Facilitate to attain the indicial as well as organization goals. (Sinha & Sinha, 2008). Talent training paves the way to fill the gap between the present and needed competencies of employees for succession planning. According to survey by Society for Human Resource Management's 2012 Employee Job Satisfaction and Engagement indicates that relationship with their boss, creating room for the employees to excel their potentialities, freedom, decision making are motivator for employees Engagement.

Keywords: Job assignment/responsibilities, Training and Development, Motivation, Stress, Quality of work life balance, Job satisfaction, Performance appraisal.

Introduction One of the major problems affecting the IT industry is high rate of attrition. Attrition, in fact determines the destiny of a company. A company with high attrition rate earns a dubious impression among the public and is bound to suffer from shortage of manpower. Added to this, the business of such companies suffers for want of continuity and consistency in work performance. As a result they lose their hold over the market and enable their competitor to gain their hold. Attrition reflects the status of an organization in an industry. It is often said that attrition is the outcome of internal policies of a company and so it can be controlled, provided the company does introspection. . As it is often said “every problem carries its own solution, provided the problem is understood” Hence, an in-depth research is undertaken to study all aspects of attrition.. The reason is twofold: while big companies do undergo attrition problem, they manage it by outsourcing the process or resorting to other business models to overcome the problem of

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International Journal of Applied Engineering Research ISSN 0973-4562 Volume 11, Number 5 (2016) pp 3449-3453 © Research India Publications. http://www.ripublication.com Secondary Data The data and information is collected from the secondary sources of journals, research papers, research reports, conference proceedings, magazines, newspapers and websites.

Objective To analyze the relationship between organizational factors of attrition and attrition level of the employees of IT companies. Hypothesis 1. There is no significant relationship between organizational factors and attrition level of employees in IT companies. 2. There is no significant influence of organizational factors on attrition level of the employees of IT companies.

Sample plan Simple random sampling has been adopted by the researcher. Sample size For academic and effective result the target employees base of 500

Justification of Selecting It Industry Information Technology in India accounts for a substantial part of the country's GDP and export earnings while providing employment to a significant number of its tertiary sector workforce. The most prominent IT hubs are IT capital Bangalore and presently growing in Chennai. Technically proficient immigrants from India sought jobs in the western world from the 1950s onwards as India's education system produced more engineers than its industry could absorb. India's growing stature in the information age enabled it to form close ties with both the United States of America and the European Union. There has been a steady growth in the number of India’s IT professionals over the last decade. From a base of 6800 knowledge workers in 1985-86, the number increased to 522000 software and services professionals by the end of 2001-02. It is estimated that out of these 522000 knowledge workers, almost 170000 are working in the IT software and services export industry; nearly 106000 are working in the IT enabled services and over 220, 000 in user organizations. According to NASSCOM-McKinsey Report 2012, the offshore IT and BPO industries directly employ around 1100000 professionals and provide indirect employment to approximately 2. 75 million workers. With the steady gains of females at both software companies prompting NASSCOM to believe that women’s involvement in IT services will climb a further 16 per cent by 2015.

Pilot study The questionnaire was randomly distributed to 50 of the samples. Tools Correlation co-efficient, multiple regression analysis. Period of Study The data and information collected from the employees of IT companies pertains to the year 2012-2013. Usefulness of Research This research is very much useful for the IT companies because attrition of employees in every organization is the bad sign of the industry. It will affect the goodwill of the company. Every organization not only depends on infrastructure, technology, Government, community etc, but it needs human capital as major asset of the organization. So organization can monitor the factors which are very much essential to leave the employees organization. So organizations have to device a policy, formulate and implement the strategies to retain employees for success of business in competitive environment.

Data Analysis Relationship Between Organizational Factors and Attrition Level The relationship between organizational factors and attrition level of the employees of IT companies was analyzed and the results are presented in Table

Justification of Selecting Chennai Among the different IT hubs in Tamil Nadu, the Chennai city has been purposively selected for the present study. Chennai‘s abundant, high quality and cost effective services and its vast resource of skilled software human power have made it an attractive location for global software clients.

Relationship between Organizational Factors and Attrition Level:

Research Methodology

Organizational Factors Job assignment / responsibilities Team dynamics Performance appraisal Trainings and development Motivation Job security Interpersonal relationship Self esteem Recognition Growth and development Work life balance Stress Job satisfaction

Research design The descriptive research design has employed for the present study. It is chosen for the present study in order to derive the meaning relationship between organization factors and attrition level and their influence on attrition level of employees of it companies. Sources of Data Primary Data Survey method was adopted for collecting primary source of the employees of IT companies through pre-tested structured questionnaire.

Correlation Co-efficient 0. 38** 0. 26 -0. 32** 0. 28 -0. 34** -0. 31** 0. 22 0. 24 -0. 30** -0. 33** -0. 33** 0. 35** -0. 36**

Source: Primary & Computed Data Note: ** indicates significant at one per cent level

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International Journal of Applied Engineering Research ISSN 0973-4562 Volume 11, Number 5 (2016) pp 3449-3453 © Research India Publications. http://www.ripublication.com Interpretation and Results The results show that the correlation co-efficient between job assignment/ responsibilities and attrition level is-0. 38, which is poorly and positively associated with each other at one per cent level of significance. The performance appraisal is negatively and poorly correlated with attrition level with the value of-0. 32, which is significant at one per cent level. From this it could be inferred that attrition is highly among experienced employees because that category of employees have higher demand in the market any switchover will enable the employees to get better compensation and status. To minimize the attrition The IT companies have to create provision for periodically review the performance of such employees and grant them improve compensation or incentives along with additional responsibilities which adds to their status. The motivation is also negatively and poorly associated with attrition level with the value of-0. 34, which is significant at one per cent. From this it could be inferred that attrition is very high due to lack of motivation. So HR department has to design the motivation plan based on different level of employees such as top, middle, lower level in the form of monetary and nonmonetary to retain the staffs. The job security is also negatively and poorly correlated with attrition level with the value of-0. 31, which is significant at one per cent level of significance. The recognition is also negatively and poorly associated with attrition level with the value of -0. 30, which is significant at one per cent level of significance. From this inferred that job security should be provided to each and every employees of the organization. Organization must be care while designing the manpower planning and precaution should be taken to avoid bench process, then employees are very happy. The relationship between growth and development and attrition level is also negatively correlated with each other with the value of-0. 33 which is significant at one per cent level. From this inferred that organization has to design for promotion plan and promotion should give in a stipulated time at the same time they to provide career plan for not for organization perspective it has to create for individual perspective too. The correlation between work life balance and attrition level is also negatively associated with each other with the value of0. 33 which is significant at one per cent level. From this inferred that organization should provide and maintain work life balance to facilitate the employees for flexi time working, telecommuting, and picnics with regular frequency at least twice in a year. The stress is positively and poorly correlated with attrition level with the value of 0. 35, which is significant at one per cent level of significance. The job satisfaction is also negatively and poorly associated with attrition level with the value of-0. 36, which is significant at one per cent level. Therefore, the null hypothesis of there is no significant relationship between organizational factors and attrition level of the employees of IT companies is rejected. From this inferred that job satisfaction should be provided to enhance autonomy, job rotation, job enrichment and job enlargement.

Influence of Organisational Factors on Attrition Level In order to examine the influence of organizational factors on attrition level, the multiple linear regressions has been applied and the results are presented in Table. The organizational factors are considered as independent variable and the attrition level is considered as dependent variable. The results indicate that the coefficient of multiple determinations (R2 ) is 0. 72 and adjusted R2 is 0. 69 indicating the regression model is good fit. It is inferred that about 69. 00 per cent of the variation in dependent variable (Attrition Level) is explained by the independent variables (Organizational Factors). The Fvalue of 5. 794 is significant at one per cent level indicating that the regression model is good fit. Influence of Organizational Factors on Attrition LevelMultiple Regressions: Organizational Features

Regression t-value Sig Coefficients Intercept 1. 136** 2. 385 . 001 Job assignment / responsibilities(X1) . 592** 3. 926 . 011 Team dynamics(X2) . 186 1. 142 . 312 Performance appraisal(X3) -. 424** 3. 848 . 011 Trainings and development(X4) . 150 1. 408 . 342 Motivation(X5) -. 408* 2. 012 . 025 Job security(X6) -. 520** 3. 692 . 012 Interpersonal relationship(X7) . 112 1. 386 . 349 Self-esteem(X8) . 126 1. 042 . 247 Recognition(X9) -. 362* 2. 092 . 024 Growth and development(X10) -. 319** 3. 195 . 012 Work life balance(X11) -. 482** 3. 492 . 001 Stress(X12) . 448** 3. 606 .. 001 Job satisfaction(X13) -. 559** 3. 764 . 001 R2 0. 72 Adjusted R2 0. 69 F 5. 794 . 000 N 500 Source: Primary & Computed Data Note: ** Significance at one per cent level * Significance at five per cent level Interpretation & Results The results show that job assignment / responsibilities and stress are positively influencing the attrition level at one per cent level of significance, while performance appraisal, job security, growth and development, work life balance and job satisfaction are negatively influencing the attrition level at one per cent level of significance. Besides, motivation and recognition are also are negatively influencing the attrition level at five per cent level of significance. Hence, the null hypothesis of there is no significant influence of organizational features on attrition level of employee of IT Companies is rejected Job assignment/responsibilities is positively related to attrition level that is every improvement in job responsibilities would help to improve attrition level their by enhancing the organization to retain the employees. The current result indicates that every improvement in job assignment/responsibilities would result in 0. 592 units in

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International Journal of Applied Engineering Research ISSN 0973-4562 Volume 11, Number 5 (2016) pp 3449-3453 © Research India Publications. http://www.ripublication.com attrition level. On this basis it could be said that HR department must periodically review that content of job assignment and responsibilities in order to make it clear free from ambiguities. Performance appraisal the above result shows inverse relationship between appraisal and employee attrition that is when performance appraisal measures help to improve the efficiency of employees the tendency to leave the organization will be less, the result indicates employees everyone improve in performance appraisal will bring down the attrition level by-0. 424 units. Since performance appraisal initiate include various aspects such as target setting, time frame, proper feedback if necessary, guiding, mentoring, etc. the organization should examine which methods of appraisal is suitable would differ from level to level with proper feedback. Motivation the above result shows inverse relationship between motivation and employee attrition that is when motivation measures help to improve motivate the employee tendency to leave the organization among employees will be less. The result employees everyone improvement in motivation effort would bring down the attrition level by 0. 428units. since motivation initiate include various aspect like salary, supervision, advancement, growth, monetary and nonmonetary benefits etc. The organization should examine which package of motivation would differ from level to level and so it’s conditional that this packages the review periodic level. Job security the above result shows inverse relationship between job security and employee attrition. That is when job security measures help to improve secured job the employee tendency to leave the organization among employees will be less, the result indicates employees everyone improvement in job security would bring down the attrition level by 0. 520units. since job security initiate include various aspect like good salary increase, safety working condition, friendly, supervision, protecting lobbying of legislation, group insurance, provident fund, grievance procedure, system of senerioity to govern layoff. Etc. The organization should examine which security features would differ from level to level and so it’s conditional that this features the review periodic level. Recognition the above result shows inverse relationship between recognition and employee attrition. That is when motivation measures help to improve motivate the employee tendency to leave the organization among employees will be less. The result employees everyone improvement in motivation effort would bring down the attrition level by0. 362 units. Since motivation initiate include various aspect like individuals need to be appreciated for what can do, job title, merit pay, status, performance recognition, personal encouragement involving employees in goal setting and decision-making etc. the organization should examine which package of motivation would differ from level to level and so its conditional that this package the review periodic level. Growth and development the above result shows inverse relationship between growth and development in employee attrition. That is when development measures help to improve motivate the employee tendency to leave the organization among employees will be less. The result employees everyone improvement in growth and development. Efforts would bring

down the attrition level by 0. 319units. since growth and development initiate include various aspect like management development programme, career planning, career path, career booklet, career workshop, diversity management, expatriation, repatriation etc. the organization should examine which package of motivation would differ from level to level. Work life balance the above result shows inverse relationship between work life balance and employee attrition. That is when work life balance measures help to improve motivate the employee tendency to leave the organization among employees will be less. The result employees everyone improvement in work life balance would bring down the attrition level by 0. 482units. since work life balance initiate include various aspect such as child care, job sharing on-site summer camp, flexible working condition, sick leave policy etc. the organization should examine which package of motivation would differ from level to level. Stress is positively related to attrition level that is every improvement in stress management would help to improve attrition level their by enhancing the organization to retain the employees. The current result indicates that every Improvement in stress management would result in 0. 448 units in attrition level. On this basis it could be said that HR department must periodically review that content of stress factors in order to make it clear free from ambiguities. Job satisfaction the above result shows inverse relationship between motivation and employee attrition. That is when jobs satisfaction measures help to improve motivate the employee tendency to leave the organization among employees will be less. The result employees everyone improvement in motivation effort would bring down the attrition level by 0. 559 units. Since jobs initiate include job satisfaction various aspect like salary, supervision, good working condition, promotion etc. the organization should examine which package of motivation would differ from level to level.

Conclusion & Recommendation Employee attrition is critical issue that will affect the long term growth and success of any business organization, particularly in case of IT companies where the companies spend so much in the recruitment and their initial and ongoing training of the employees Organizational issues such as time and investment involved in training, knowledge lost due to attrition; mourning and insecure coworkers and a costly replacement of candidate costs a lot to the organization. Employee retention is a matter of concern for almost all the IT companies. The concept of employee retention should be very distinctly understood and realized by IT companies. The retention strategies designed should be such that the retentive forces are maximized and the debilitating forces minimized. Attempt should be made not to orchestrate the retention strategies in isolation but ensuring that it forms a part of the overall strategies for fortifying the pull on the human talent, which include sourcing, staffing and development strategies in addition. It should also be important that retention policies should be highlighted at par with other policies so as to ascertain that the employees feel they are highly valued.

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International Journal of Applied Engineering Research ISSN 0973-4562 Volume 11, Number 5 (2016) pp 3449-3453 © Research India Publications. http://www.ripublication.com The most of the IT companies are adopting some fundamental actions to retain employees, including salary surveys to stay shoulder to shoulder of the market, culture-building exercises for employees, exit interviews, counseling, employee development programmes, rewards and recognition, as well as increased pay and benefits.

References [1]

[2]

Summary In this study attrition has also influence on organizational factors such as job assignment / job responsibilities and stress are positively associated in attrition level. Team dynamics, opinion about their superior performance appraisal, training and development, physical conditions of work environment, interpersonal relationship, self-esteem, recognition, growth and development, work life balance, and job satisfaction are negatively associated with attrition level of the employees of IT companies. From this it is very clear that IT industries have to concentrate these factors to reduce the level of attrition and to improvise the employee enthusiasm.

[3]

Scope for Future Research

[7]

[4]

[5]

[6]

The present study being descriptive in nature throws up several interesting research questions which can be taken up by future studies. It should be noted that the study was conducted in Chennai. Further research can be conducted by adding a few of facets to it. The study can be replicated in other geographical locations and also in other sectors especially in BPO and KPO, where attrition has become a common problem. The further research can address the issues of: How to measure impact of retention strategies on attrition rates of employees? How different socio-economic environments and life style compulsions influence the attrition of employees?

[8]

Mohammad et al, (2006); Affective Commitment and Intent to Quit: the Impact of Work and Non-Work Related Issues, Journal of Managerial Issues. Morris, M. L and Madsen, S. R. (2007). “Advancing work-life Integration in individuals, organizations and communities”, Advances in Developing Human Resources. Vol. 9, pp. 439-454. Moore, Fiona (2007). “Work-life Balance: Contrasting Managers and workers in an MNC”, Employee Relations. Vol. 29. Issue 4, pp. 385-399. Adhikari, A. (2009), “Factors Affecting Employee Attrition: A Multiple Regression Approach, ” IUP Journal of Management Research, May 2009. Society for Human Resource Management, 2012 Employee Job Satisfaction and Engagement: How Employees are dealing with Uncertainty, October 2012, 41. Bernthal, P. R., & Richard S. Wellins (2001). “Retaining Talent: A Benchmarking Study”. HR Benchmark Group, 2(3). Coetzee, M., Schreuder, A. M. G. & Tladinyane, R. 2007. ‘Organizational commitment and Its relation to career anchors’, Southern African Business Review, 11(1): 65–86. Martins, N. & Coetzee, M. 2007. ‘Organizational culture, employee satisfaction, perceived Leader emotional competency and personality type: An exploratory study in a South African engineering company’, South African Journal of Human Resource Management, 5(2): 20–32.

Acknowledgement

Author Biography

I would like to thank Lord Almighty who made all things possible. I would like to acknowledge and extend my heartfelt gratitude to the following persons who have made the completion of this research paper possible: My research guides Dr. Kalpana for her constant encouragement. Dr. P. Ravilochanan for his vital encouragement and support. My friend P. S. Rajeswari for her understanding, assistance, constant reminders and much needed motivation and my friend Dr. C. S. Anandmohan supported me. Especially my beloved family members and friends who stood by me throughout my study.

He has completed MBA, M. Phil. And he is doing business. Furthermore his pursuing PhD from SRM University, Tamilnadu in the faculty of Management Studies. He has published and presented articles in various National and International Journals and Conferences also.

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