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The Gradual Reduction in Work-Force in IT Industry

Anchal & ChetanPresented

by:MBA Final

Year

Project Presentation On

Himalayan Institute of Management

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“Gradual Reduction in Work-Force” means the continuous reduction in the no. of employees through Resignation, Retirement or Death.

It can also be named as ‘Attrition’ or ‘Labor Turn-Over’

Meaning of “Gradual Reduction In Work-Force”

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Space for entry of new talentsEvolution of high performance teams

New Employees try to give their best to the JOB assigned to them.

Benefits of Attrition

Wow इतने सारे Benefits .... Then

WHY TO WORRY ABOUT REDUCTION OF

EMPLOYEES..?????

LET NEW PEOPLE COME..!!!

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Loss of productivityHigh cost of recruitmentHigh cost of trainingWastage of precious time on training & selection process

Affects the budget of a company

Loss in revenue

Problem for Company due to Attrition

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‘Indian Companies specially IT Industries ( UBG, Infosys, Wipro, other BPO

companies ) attrition rate is at 14%, higher than global average

(i.e. 11.20%)‘ 75% organizations face challenges in

retaining high performing talent.IT and ITES sectors saw the highest attrition

rate of 23% in the first quarter of 2012-13.

“ATTRITION”What Research & Facts say :-

Dear Boss … I QUIT

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Why an Employee Leaves the Organization at unexpected time.

The biggest Reason that I found in my project..

1. STRESS2. DISSATISFACTION/GRIVIANCES due to JOB, SALARY, REWARDS, HIGH

TARGETS, GROWTH OPPORTUNITY, SECURITY OF JOB.

3. STRESS DUE TO BAD RELATIONSHIPS4. STRESS DUE TO WORK ENVIRONMENT5. Fatigue? Aaailaaa… STRESS बोले तो ???

? Stress is everywhere.. then Why People Leave the Organization ???

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Meaning:- A combination of thoughts and worries that

have negative affect on your Responses.Sources of Stress that results in Employee Reduction in Organization:-1. Organizational Stressor2. Individual Stressor

Q. What do you think when you are stressed?

Q. What do you feel when you are stressed?

STRESS

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Task Demands ( more work in unhealthy condition)Role Demands ( role ambiguity, role conflicts etc.)Inter-Personal Relationships at workOrganizational Structure and ClimateLeadership in Organization ( rude Supervisor )Group Pressure

Organizational Stressor

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Fear related with JOB, STATUSType A and B personality profilesLife ChangeFeeling of insecurity Family problemFinancial crisis ( low Salary )Personal problemHIGH WORK LOAD

Individual Stressor

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ATTRITION

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RETENTION

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1. STRESS MANAGEMENT PROGRAM must be run. such as :- Job redesign, Stress reduction program, Supportive Climate (Grievance handling), Counseling, Relaxation, Time management art, Meditation, Role Management, etc.

2. Regular meetings & program3. Adequate Salary, Facility, Incentives should be

provided.4. Exit Interview, Employees should be given due

respect

How to Solve Reduction of Employee

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1. Meaning of Employee Reduction i.e. Attrition

2. Benefits & Disadvantages faced by an Organization due to Attrition

3.Reasons of Attrition….. ( most commonly SALARY & STRESS )

4. STRESS & its Sources5. Attrition & Retention6. My Suggestion to solve Attrition Problem

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