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A
REPORT
ON
IDENTIFYING REASONS OF ATTRITION AT LOWER LEVEL
IN
THE INSURANCE SECTOR

Submitted to
AVIVA INDIA
Chandigarh.
In partial fulfilment of the requirement for the
Award of degree of
Master of Business Administration (MBA)
Submitted by: Submitted to:
Arpana Mr.Gaurav Sharma
Arti Sabharwal
Jivanjot
Niti
(MBA- III)
Session (2007-2009)

PREFACE
For management career, it is important to develop managerial skills. In order to achieve
positive and concrete results, along with theoretical concepts, the exposure of real life
situation existing in corporate world is very much needed. To fulfill this need, this practical
training is required.
I took training in fast growing company AVIVA INDIA located in CHANDIGARH. It was
my fortune to get training in a very healthy atmosphere. I got ample opportunity to view
the overall working of the company.
This report is the result of my eight weeks of summer training in AVIVA INDIA, as a part
of M.B.A. The subject of my report is-“Finding reasons of high attrition rate at lower level
in Insurance sector.”
In the forthcoming pages, an attempt has been made to present a comprehensive report
covering different aspects of my training.

ACKNOWLEDGEMENT
To test the student’s academic knowledge in practical conditions of life, eight weeks
summer training has been included in the M.B.A course. I express my gratitude to Mrs.
Paramjeet for allowing me to undergo summer training in AVIVA INDIA
I have the honor to express my sincere thanks to the management of AVIVA for
providing me the opportunity to pursue my training in their esteemed organization. I place
on record my thanks to Mr. Gaurav Sharma (Manager - Marketing) for giving me every
sort of help and guidance.
My summer training has added to my practical knowledge and build up my

confidence. I thank once again all the staff members of AVIVA with the active support of
whom I was able to complete my project report successfully.
I fail to find adequate words to express my gratitude to Mr. Gaurav Sharma for
providing me necessary facilities.

ARTI SABHARWAL

Ch.No. Particulars Page No.
Preface
Acknowledgement
1 Introduction to Industry
2 Introduction to Company
3 Introduction to Project
4 Review of Literature
5 Objectives of the study
6
Research Methodology
7 Analysis & Interpretation
8 Findings of the Study
9 Recommendations
10 Limitations
11 Conclusion
Questionnaire
Bibliography
TABLE OF CONTENTS

INTRODUCTION TO INSURANCE INDUSTRY

Insurance sector in India is one of the booming sectors of the economy and is growing at the rate
of 15-20 per cent annum. Together with banking services, it contributes to about 7 per cent to the
country's GDP. Insurance is a federal subject in India and Insurance industry in India is governed
by Insurance Act, 1938, the Life Insurance Corporation Act, 1956 and General Insurance
Business (Nationalization) Act, 1972, Insurance Regulatory and Development Authority (IRDA)
Act, 1999 and other related Acts.

The origin of life insurance in India can be traced back to 1818 with the establishment of the
Oriental Life Insurance Company in Calcutta. It was conceived as a means to provide for English
Widows. In those days a higher premium was charged for Indian lives than the non-Indian lives
as Indian lives were considered riskier for coverage. The Bombay Mutual Life Insurance Society
that started its business in 1870 was the first company to charge same premium for both Indian
and non-Indian lives. In 1912, insurance regulation formally began with the passing of Life
Insurance Companies Act and the Provident Fund Act.
By 1938, there were 176 insurance companies in India. But a number of frauds during 1920s and
1930s tainted the image of insurance industry in India. In 1938, the first comprehensive
legislation regarding insurance was introduced with the passing of Insurance Act of 1938 that
provided strict State Control over insurance business.

Insurance sector in India grew at a faster pace after independence. In 1956, Government of India
brought together 245 Indian and foreign insurers and provident societies under one nationalized
monopoly corporation and formed Life Insurance Corporation (LIC) by an Act of Parliament,
viz. LIC Act, 1956, with a capital contribution of Rs.5 crore.

The (non-life) insurance business/general insurance remained with the private sector till 1972.
There were 107 private companies involved in the business of general operations and their
operations were restricted to organized trade and industry in large cities. The General Insurance
Business (Nationalization) Act, 1972 nationalized the general insurance business in India with
effect from January 1, 1973. The 107 private insurance companies were amalgamated and
grouped into four companies: National Insurance Company, New India Assurance Company,
Oriental Insurance Company and United India Insurance Company. These were subsidiaries of
the General Insurance Company (GIC).

In 1993, the first step towards insurance sector reforms was initiated with the formation of
Malhotra Committee, headed by former Finance Secretary and RBI Governor R.N. Malhotra.
The committee was formed to evaluate the Indian insurance industry and recommend its future
direction with the objective of complementing the reforms initiated in the financial sector.

KEY RECOMMENDATIONS OF MALHOTRA COMMITTEE
Structure
 Government stake in the insurance Companies to be brought down to 50%.
 Government should take over the holdings of GIC and its subsidiaries so that these
subsidiaries can act as independent corporations.
 All the insurance companies should be given greater freedom to operate.
Competition
 Private Companies with a minimum paid up capital of Rs.1billion should be allowed to

enter the industry.
 No Company should deal in both Life and General Insurance through a single Entity.
 Foreign companies may be allowed to enter the industry in collaboration with the
domestic companies.
 Postal Life Insurance should be allowed to operate in the rural market.
 Only one State Level Life Insurance Company should be allowed to operate in each state.
Regulatory Body
 The Insurance Act should be changed.

 An Insurance Regulatory body should be set up.
 Controller of Insurance should be made independent.
Investments
 Mandatory Investments of LIC Life Fund in government securities to be reduced from

75% to 50%.
 GIC and its subsidiaries are not to hold more than 5% in any company.
Customer Service
 LIC should pay interest on delays in payments beyond 30 days

 Insurance companies must be encouraged to set up unit linked pension plans.
 Computerization of operations and updating of technology to be carried out in the
insurance industry.
Malhotra Committee also proposed setting up an independent regulatory body - The Insurance
Regulatory and Development Authority (IRDA) to provide greater autonomy to insurance
companies in order to improve their performance and enable them to act as independent
companies with economic motives.
Insurance sector in India was liberalized in March 2000 with the passage of the Insurance
Regulatory and Development Authority (IRDA) Bill, lifting all entry Insurance Regulatory and
Development Authority (IRDA) Bill, lifting all entry restrictions for private players and allowing
foreign players to enter the market with some limits on direct foreign ownership. There is a 26
percent equity cap for foreign partners in an insurance company. There is a proposal to increase
this limit to 49 percent. The opening up of the insurance sector has led to rapid growth of the
sector. Presently, there are 16 life insurance companies and 15 non-life insurance companies in
the market. The potential for growth of insurance industry in India is immense as nearly 80 per
cent of Indian population is without life insurance cover while health insurance and non-life
insurance continues to be well below international standards.
OVERVIEW:

The insurance sector in India has come full circle from being an open competitive market to
nationalization and back to a liberalized market again. Tracing the developments in the Indian
insurance sector reveals the 360-degree turn witnessed over a period of almost two centuries.

With the largest number of life insurance policies in force in the world, insurance is a mega
opportunity in India. It's a business growing at the rate of 15-20 per cent annually and presently
is of the order of around Rs 450 billion. Together with banking services, it adds about 7 per cent
to the country's GDP. Gross premium collection is nearly 2 per cent of GDP and funds available
with LIC for investments are 8 per cent of GDP.

Yet, nearly 80 per cent of Indian population is without life insurance cover, health insurance and
non-life insurance continues to be below international standards. And this part of the population
is also subject to weak social security and pension systems with hardly any old age income
security. This itself is an indicator that growth potential for the insurance sector is immense.

RECENT SCENARIO
The Government of India liberalized the insurance sector in March 2000 with the passage of the
Insurance Regulatory and Development Authority (IRDA) Bill, lifting all entry restrictions for
private players and allowing foreign players to enter the market with some limits on direct
foreign ownership under the current guidelines.
Insurance Companies in India
Before insurance sector was opened to the private sector Life Insurance Corporation (LIC) was
the only insurance company in India. After the opening up of Insurance sector in India there has
been a glut of insurance companies in India. These companies have come up with innovative and
flexible insurance policies to cater to varying needs of the individual. Opening up of the
Insurance sector has also forced the LIC to tighten up its belt and deliver better service. All in all
it has been a bonanza for the consumer.
Major Life insurance Companies in India are:

 Aviva Life Insurance
 Bajaj Allianz
 Birla Sun Life Insurance
 HDFC Standard Life Insurance
 ICICI Prudential
 ING Vysya
 Kotak Mahindra
 LIC
 Max New York Life Insurance
 Metlife India Insurance
 Reliance Life Insurance
 SBI Life Insurance
 Shriram Life Insurance
 Tata AIG Life Insurance
The insurance sector in India has come a full circle from being an open competitive market to
nationalization and back to a liberalized market again.

Tracing the developments in the Indian insurance sector reveals the 360-degree turn witnessed
over a period of almost 190 years.

The business of life insurance in India in its existing form started in India in the year 1818 with
the establishment of the Oriental Life Insurance Company in Calcutta.

Some of the important milestones in the life insurance business in India are:

1912 - The Indian Life Assurance Companies Act enacted as the first statute to regulate the life
insurance business.

1928 - The Indian Insurance Companies Act enacted to enable the government to collect
statistical information about both life and non-life insurance businesses.

1938 - Earlier legislation consolidated and amended to by the Insurance Act with the objective of
protecting the interests of the insuring public.

1956 - 245 Indian and foreign insurers and provident societies taken over by the central
government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a
capital contribution of Rs. 5 crore from the Government of India.

The General insurance business in India, on the other hand, can trace its roots to the Triton
Insurance Company Ltd., the first general insurance company established in the year 1850 in
Calcutta by the British.

Some of the important milestones in the general insurance business in India are:

1907 - The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of
general insurance business.

1957 - General Insurance Council, a wing of the Insurance Association of India, frames a code of
conduct for ensuring fair conduct and sound business practices.

1968 - The Insurance Act amended to regulate investments and set minimum solvency margins
and the Tariff Advisory Committee set up.

1972 - The General Insurance Business (Nationalization) Act, 1972 nationalized the general
insurance business in India with effect from 1st January 1973.

107 insurers amalgamated and grouped into four companies viz. the National Insurance
Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd.
and the United India Insurance Company Ltd. GIC incorporated as a company.

INTRODUCTION TO COMPANY
AVIVA is UK’s largest and the world’s fifth largest insurance Group. It is one of the leading
providers of life and pensions products to Europe and has substantial businesses elsewhere
around the world. With a history dating back to 1696, AVIVA has a 40 million-customer base
worldwide. It has more than £364 billion of assets under management.

In India, AVIVA has a long history dating back to 1834. At the time of nationalization it was the
largest foreign insurer in India in terms of the compensation paid by the Government of India.
AVIVA was also the first foreign insurance company in India to set up its representative office in
1995.
In India, AVIVA has a joint venture with Dabur, one of India's oldest, and largest Group of
companies. A professionally managed company, Dabur is the country's leading producer of
traditional healthcare products.
In accordance with the government regulations AVIVA holds a 26 per cent stake in the joint
venture and the Dabur group holds the balance 74 per cent share.

With a strong sales force of over 30,000 Financial Planning Advisers (FPAs), AVIVA has
initiated an innovative and differentiated sales approach to the business. Through the “Financial
Health Check” (FHC) AVIVA’s sales force has been able to establish its credibility in the
market. The FHC is a free service administered by the FPAs for a need-based analysis of the
customer’s long-term savings and insurance needs. Depending on the life stage and earnings of
the customer, the FHC assesses and recommends the right insurance product for them.
AVIVA pioneered the concept of Bancassurance in India, and has leveraged its global expertise
in Bancassurance successfully in India. Currently, AVIVA has Bancassurance tie-ups with ABN
Amro Bank, American Express Bank, IndusInd Bank, Centurion Bank of Punjab, The Lakshmi
Vilas Bank Ltd. and Punjab & Sind Bank, Co-operative Banks in Gujarat, Rajasthan, Jammu &
Kashmir, Bihar, West Bengal, Andhra Pradesh and Maharashtra and regional Banks.

When AVIVA entered the market, most companies were offering traditional life products.
AVIVA started by offering the more modern Unit Linked and Unitised With Profit products to
the customers, creating a unique differentiation. AVIVA’s products have been designed in a
manner to provide customers flexibility, transparency and value for money. It has been among
the first companies to introduce the more modern Unit Linked products in the market. Its
products include: whole life (LifeLong), endowment (LifeSaver, EasyLife Plus, LifeSaver Plus),
child policy (Young Achiever, SaveGuard Junior, AVIVA Little Master) single premium
(LifeBond and LifeBond Plus), Pension (PensionPlus), Term (LifeShield), fixed term protection
plan (Freedom LifePlan) and a tax efficient investment plan with limited premium payment term
(LifeBond5). AVIVA products are modern and contemporary unitised products that offer unique
customer benefits like flexibility to chose cover levels, indexation and partial withdrawals.

AVIVA’s Fund management operation is one of its key differentiators. Operating from Mumbai,
AVIVA has an experienced team of fund managers and the range of fund options includes
Unitised With-Profits Fund and seven Unit Linked funds: - Protector Fund, Secure Fund,
Balanced Fund, Growth Fund, Enhancer Fund, Index Fund and Bond Fund.

AVIVA has 193 Branches in India (including rural branches) supporting its distribution network.
Through its Bancassurance partner locations, AVIVA products are available in more
than 2,795 locations across India.

AVIVA is also keen to reach out to the underprivileged that have not had access to insurance so
far. Through its association with Basix (a micro financial institution) and other NGOs, it has
been able to reach the weaker sections of the society and provide life insurance to them.
AVIVA has been felicitated with the "Bronze Award for Excellence in People Management" by
Grow Talent Company Limited and Business world. This honor is given to AVIVA based on the
ranks received in top 25 list of the Great Place to Work India studies conducted in the last four
years. AVIVA was ranked 12th in 2003, 14th in 2004 and 13th in the year 2005.
JOINT VENTURE
In India, AVIVA has a joint venture with Dabur, one of India's oldest, and largest Group of
companies. A professionally managed company, Dabur is the country's leading producer of
traditional healthcare products.
DABUR
Founded in 1884, Dabur is one of India's oldest and largest group of companies with
consolidated annual turnover in excess of Rs 2,233 crores. A professionally managed company,
it is the country's leading producer of traditional healthcare products.
PARTNERS
At AVIVA we are committed to helping our customers get 'Kal par Control' and make the most
out of their lives. It is our constant endeavour to ensure that our customers have easy access to
AVIVA products and services at all times.

AVIVA has pioneered banc assurance in the country through its tie-ups with 22 leading private
and nationalised Banks in the country. AVIVA also focuses on bancassurance worldwide and has
a proven track record of successful bancassurance relationships. It has 40 major partnerships
with leading banks across the globe. AVIVA is a leading bancassurer in countries such
as France, Italy, Spain, Australia and New Zealand.

 ABM AMRO Bank

 The Lakshmi Vilas Bank Ltd.
 Punjab & Sind Bank
 Centurion Bank of Punjab
 IndusInd Bank

PRODUCT & SERVICES
Investments in life insurance provide the dual benefit of saving for your future financial
requirements as well as financial security for your dependants in case of your death. Unlike other
investment instruments (term deposits, mutual funds and stock market securities etc.), the nature
of life insurance products is such that they are designed for the long term (10 years or more) and
provide the best results when they are continued for their full term.

The right investment strategies won't just help you plan for a more comfortable tomorrow -- they
will help you get Kal Par Control.

At AVIVA, life insurance plans are created keeping in mind your changing needs and your
family's. Our life insurance plans are designed to provide you with flexible options that meet
both protection and savings needs.

We offer our customers a full range of transparent, flexible and value for money products that
include whole life (LifeLong), endowment (LifeSaver, SaveGuard, EasyLife Plus, LifeSaver
Plus, LifeSaver Super and a traditional endowment – Dhan Vriddhi), child plan (AVIVA Little
Master) single premium (LifeBond Plus), pension (PensionPlus), term (LifeShield), fixed term
protection cum savings plan (Freedom LifePlan) and a short-pay recurring premium investment
cum protection plan (LifeBond5). AVIVA products are modern and contemporary unitized
products that offer unique customer benefits like flexibility to choose cover levels, indexation,
partial withdrawals and unique investment options like a Systematic Transfer Plan to get the
benefit of systematic investments and an Automatic Asset Allocation Plan which changes the
risk structure on your investments as your age increases. We also have 3 rural plans which are a
low cost term plan – Amar Suraksha and 2 endowments – Anmol Suraksha and Jana Suraksha.

We also offer you a choice of investment options. You can choose between our Unit Linked
Fund and our With Profits Fund (only on PensionPlus).

The With Profits Fund guarantees that the selling price of the units will never fall. The unit value
of this fund is increased by crediting bonuses on a daily compounding basis. The fund provides
investment security to your capital.
The Unit Linked Funds are designed to provide relatively more progressive capital growth
wherein you automatically receive the benefit related to the investment performance of the fund.

Under our Unit-Linked Insurance Plans we offer a choice of Unit-Linked Fund options:

Bond Fund: To generate a steady income through investment in high quality fixed income
securities. The fund comprises of 100% debt and money market and no equities.

Protector Fund: Progressive returns on your investment by investing higher element of assets in
debt securities, with minimum exposure to equities. The fund comprises of debt securities in the
range of 60-100%, equities in the range of 0-20% and money market and cash in the range of 0-
40%.
Secure Fund: The investment objective of this fund is to provide progressive return on your
investment with a minimum guarantee on maturity. The fund comprises of debt securities in the
range of 50-100%, equities in the range of 0-20% and money market and cash in the range of 0-
40%. Initially the equity exposure will be 10 %.

Balanced Fund: The investment objective of this fund is to provide capital growth by availing
opportunities in debt and equity markets and providing a good balance between risk and return.
The fund comprises of debt securities in the range of 50-90%, equities in the range of 0-45% and
money market and cash in the range of 0-40%.

Growth Fund: The investment objective of this fund is to provide high capital growth by
investing higher element of assets in the equity market. The fund will comprise of debt securities
in the range of 0-50%, equities in the range of 30-85% and money market and cash in the range
of 0-40%.

Index Fund: To generate returns in line with the stock market index – NIFTY. The fund
comprises of debt and money market securities in the range of 0-20% and equities in the range
of 80-100%.

Enhancer Fund: To provide aggressive, long term capital growth with high equity exposure.
The fund will comprise of debt and money market in the range of 0-40% and equities in the
range of 60-100%.

AVIVA also offers a whole range of group insurance and savings products catering to pensions,
gratuities, credit protection and pure protection. We have a dedicated team that works with
corporates across the country.

VISION
AVIVA - where exceeding expectations through innovative solutions is "our" way of life
This is the compelling vision that AVIVA India has created through the active contribution of its
employees. These lines not only define the way we live and work but also serve as a reminder to
deliver the best to our customers, shareholders, colleagues, partners & employees at all times.
Embedded in this vision are the core values of Integrity, Customer centricity, Passion for
winning, Innovation and Empowered team that we have collectively defined and committed to
working towards.

INTRODUCTION TO PROJECT
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.

But then there's the real world. And in the real world, employees, do leave, either because they
want more money, hate the working conditions, hate their coworkers, want a change, because
their spouse gets a dream job in another state. So, what does an employee thinks while leaving a
job.
Defining attrition: "A reduction in the number of employees through retirement, resignation or
death"

Defining Attrition rate: "the rate of shrinkage in size or number"
Attrition refers to the rate of change in the workforce of an enterprise during a given time period.
It has been defined as
“The time to time changes in the composition of the work force that results from hiring, release
and replacement of employees.”
It is a measure of the extent to which old employees leave and new employees enter the service
of a concern.
Attrition should be distinguished from absenteeism. The former measures the extent of change in
the composition of working force whereas the later indicates the extent to which the worker fails
to attend their regular work.
In case of Attrition, this discontent is expressed not by striking work but by quitting the job.
Attrition is the cause and effect of instability of employment, apart from being a measure of the
morale and efficiency of workers.
Attrition is an important parameter indicating the over all health of any industry or an
establishment in terms of wages, industrial relations, working conditions and other welfare
facilities provided by the employers to the workers. Higher rate of Attrition indicates lack of
stability in the labour force, which in turn, may not be considered to be conducive to the
productivity of labour. For higher productivity of labour, it is essential that labour force remains
stable over a period of time. Attrition measures the extent of change in the work force due to
accession (total number of workers added to employment) or separation (severance of
employment at the instance of workers or employers) during a particular period of time.
The rate of Attrition is generally expressed in a number of different formulas which involve such
forms as accessions (i.e. additions to pay-role); separations (quits, discharges, deaths, etc):
Replacements (i.e. one accession plus separation); and average work force (i.e. number at the
beginning of a period plus the number at the end divided by 2).
The simplest measure involves calculating the number of leavers in a period (usually a year) as a
percentage of the number employed during the same period.This is known as the "separation
rate" or "crude wastage rate" and is calculated as follows:
Number of leavers / average no employed x 100
For example, if a business has 150 leavers during the year and, on average, it employed 2,000
people during the year, the Attrition figure would be 7.5%.
An alternative calculation of Attrition is known as the "Stability Index”. This illustrates the
extent to which the experienced workforce is being retained and is calculated as follows:
Number of employees with one or more years’ service now / Number employed one year ago x
100. Attrition will vary between different groups of employees and measurement is more useful
if broken down by department or section or according to such factors as length of service, age or
occupation. Attrition is concerned with movements of individuals into jobs (hirings) and out of
jobs (separations) over a particular period. Attrition is the sum of job turnover, which relates to
the expansion and contraction of establishments or firms, and the movement of workers into and
out of ongoing jobs in establishments or firms. Workers leave firms and firms hire other workers
to replace them, regardless of whether the firm itself is growing or declining
The difference between job and Attrition can be illustrated as follows: Suppose a given
establishment has 100 people employed at time t and 110 at t+1. During this period, 10 people
have been hired to fill newly created posts. The job turnover rate, i.e. the net change in
employment is 10%. But, suppose that, during the same period, 10 individuals left the
establishment and 10 were hired to replace them. Attrition, which concerns the movement of
workers into and out of jobs, is 30% [the sum of all hirings (20) and separations (10) divided by
initial employment (100)].

PATTERNS OF ATTRITION
The highest rate of Attrition tends to be among those who have recently joined an business.
Longer-serving employees are more likely to stay, mainly because they become used to the work
and the business and have an established relationship with those around them.

COSTS OF ATTRITION
High rates of Attrition are expensive in terms of:
 Costs Due to a Person Leaving
1. Calculate the cost of the person(s) who fills in while the position is vacant. Calculate the
cost of lost productivity at a minimum of 50% of the person's compensation and benefits
cost for each week the position is vacant, even if there are people performing the work.
Calculate the lost productivity at 100% if the position is completely vacant for any
period of time.
2. Calculate the cost of conducting an exit interview to include the time of the person
conducting the interview, the time of the person leaving, the administrative costs of
stopping payroll, benefit deductions, benefit enrollments.
3. Calculate the cost of the manager who has to understand what work remains, and how to
cover that work until a replacement is found.
4. Calculate the cost of training your company has invested in this employee who is leaving.
5. Calculate the impact on departmental productivity because the person is leaving. Who
will pick up the work, whose work will suffer, what departmental deadlines will not be
met or delivered late.
6. Calculate the cost of lost knowledge, skills and contacts that the person who is leaving is
taking with them out of your door. Use a formula of 50% of the person's annual salary
for one year of service, increasing each year of service by 10%.
7. Subtract the cost of the person who is leaving for the amount of time the position is
vacant.
 Recruitment Costs
1. The cost of advertisements; agency costs; employee referral costs; internet posting costs.
2. The cost of the internal recruiter's time to understand the position requirements, develop
and implement a sourcing strategy, review candidates backgrounds, prepare for
interviews, conduct interviews, prepare candidate assessments, conduct reference
checks, make the employment offer and notify unsuccessful candidates. This can range
from a minimum of 30 hours to over 100 hours per position.
3. Calculate the cost of the various candidate pre-employment tests to help assess a
candidates' skills, abilities, aptitude, attitude, values and behaviors.
 Training Costs
1. Calculate the cost of orientation in terms of the new person's salary and the cost of the
person who conducts the orientation. Also include the cost of orientation materials.
2. Calculate the cost of departmental training as the actual development and delivery cost
plus the cost of the salary of the new employee. Note that the cost will be significantly
higher for some positions such as sales representatives and call center agents who
require 4 - 6 weeks or more of classroom training.
3. Calculate the cost of the person(s) who conduct the training.
4. Calculate the cost of various training materials needed including company or product
manuals, computer or other technology equipment used in the delivery of training.
 Lost Productivity Costs
As the new employee is learning the new job, the company policies and practices, etc.
they are not fully productive. Use the following guidelines to calculate the cost of this
lost productivity:
1. Upon completion of whatever training is provided, the employee is contributing at a 25%

productivity level for the first 2 - 4 weeks. The cost therefore is 75% of the new
employees full salary during that timeperiod.
2. During weeks 5 - 12, the employee is contributing at a 50% productivity level. The cost is
therefore 50% of full salary during that timeperiod.
3. During weeks 13 - 20, the employee is contributing at a 75% productivity level. The cost
is therefore 25% of full salary during that timeperiod.
4. Calculate the cost of mistakes the new employee makes during this elongated
indoctrination period.
 New Hire Costs

1. Calculate the cost of bring the new person on board including the cost to put the person
on the payroll, establish computer and security passwords and identification cards,
telephone hookups, cost of establishing email accounts, or leasing other equipment such
as cell phones, automobiles.
2. Calculate the cost of a manager's time spent developing trust and building confidence in
the new employee's work.
 Lost Sales Costs
1. Calculate the revenue per employee by dividing total company revenue by the average
number of employees in a given year. Whether an employee contributes directly or
indirectly to the generation of revenue, their purpose is to provide some defined set of
responsibilities that are necessary to the generation of revenue. Calculate the lost
revenue by multiplying the number of weeks the position is vacant by the average
weekly revenue per employee.

MEASUREMENT OF ATTRITION
A high rate of turnover is bad both for the workers and the industry. The following methods can
be used to measure Attrition:
(I) ACCESION METHOD:- In this method turnover is calculated by dividing the total
accessions by average number of employees during a specified period and multiplying it by
100.Total accessions mean the new employees joining the payroll including transfers from the
units of company. The average number of employees means the number of employees at the
beginning plus the number of employees at the end divided by 2.Thus
TURNOVER RATE= Number of joining the employees

concern during the year
(Number of employees at the beginning of the year +

Number of employees at the end of year)/2
(ii)SEPERATION METHOD:- Under this method Attrition is estimated by dividing the total
separations by the average number of employees. Total separations mean simply all the
employees who have quit the concern due to layout, discharge, retirement, death, and
resignations etc including transfers to other concern. Thus,
TURNOVER RATE= Total separations during the year
Average number of employees

(iii) COMBINED METHOD :- Due to cyclic and seasonal fluctuations neither accession nor
separation formula give correct measurement during prosperity separation may be nil. While
during separation accession may be zero. To minimize the cyclic effect company uses a
combined formula under it.
TURNOVER RATE= (accession+seperations during year)/2
average number of employees x 100

(iv)REPLACEMENT METHOD:- According to this formula difference between accession and

separation is divided by the average number of employees.
TURNOVER RATE= accession- seperations dyring year x100 average

number of employes
It is called NET TURNOVER RATE or WASTAGE RATE.

CAUSES OF ATTRITION
I AVOIDABLE CAUSES
II UNAVOIDABLE CAUSES
I AVOIDABLE CAUSES
 Incompetence
 Laziness
 Poor manpower planning
 Lack of promotion policy
 Lack of proper communication
 Unfavorable working conditions
 Unfair supervision
 Dislike of work
 Poor wage structure
 Frustrations

II UNAVOIDABLE CAUSES
 Long term sickness or disability

 Accidents
 Deaths
 Retirements
 Stagnations
 Seasonal nature of business
 Better opportunity
 Departure from the city
 Family or personal problem

BENEFITS OF ATTRITION
Attrition does not just create costs. Some level of Attrition is important to bring new ideas, skills
and enthusiasm to the labour force.
A "natural" level of Attrition can be a way in which a business can slowly reduce its workforce
without having to resort to redundancies (this is often referred to as "natural wastage".
LOSSES DUE TO ATTRITION
 Hiring costs, involving time and facilities for recruitment, interviewing & examining a
replacement.
 Training cost, involving the time of supervisor, the personnel department and the trainee.
 The pay of the learner is in excess of what is produced.
 Accidents rates of new employees are often higher.
 Scraps and waste rates rise when new employees are involveThe production equipments
are not fully utilized during the hiring interval and the training period.

HIGH ATTRITION RATE IN INSURANCE SECTOR
You might have heard of high job attrition rates of between 15 per cent and 20 per cent in the
software sector.But even these pale in comparison to the kind of turnover that the insurance
industry witnesses with its agency force.Conservative estimates put the attrition rates at 35-40
per cent.The opening up of the sector eight years ago provided insurance agents with new
opportunities and an image makeover as "life insurance advisors".
But little has changed in the basic nature of the business - insurance still needs to be sold to a
reluctant populace.Most agents or advisors who join in enthusiastically, spurred by dreams of
"working at one's own hours, getting full reward for the hard work" and other such motivational
spiel, meet reality soon enough.
Once the initial list of potential customers such as close relatives, friends and neighbours is
exhausted, the climb for an agent is uphill.Even meeting the minimum requirement of bringing in
two viable insurance proposals every month proves daunting. For some companies, the target in
terms of sum assured is Rs 1 lakh. For some others, it is as low as Rs 10,000.
When the rejections start and the doors start getting banged in the face, new agents confront
failure. The dropouts begin.
Lalit Kumar Dash, Executive Director (Marketing), LIC, says, "The attrition rate is about 35 per
cent in the first year of recruitment. This goes down to about 18 per cent by the fourth year. Most
of those who drop out are non-performers".
Agrees Rahul Sinha, Vice-President (Marketing) at Kotak Mahindra Old Mutual Life Insurance
Company, and says, "Last year, the attrition rate was much worse than 30 per cent. It has been a
cause for worry and we are trying our best to stem it." He attributes it to the high expectations on
the part of the agents. "Most people think that they can make a lot of money in a short span of
time. Besides, one has to acknowledge that it is a high-pressure job. Sustenance requires constant
networking and acquiring new relationships for your business. This requires a lot of discipline."
Some insurance companies complain that the booming economy has caused the rampant
poaching of insurance agents.
They also say that it will settle down once they have their expanding networks are in place.
Insurance companies believe that adequate training will help in contain the problem in some
measure. They say that in a business such as insurance one has to accept the fact that 20 per cent
of the work force will bring in 80 per cent of their business.
But, while private insurance companies are still struggling to break even, the rising attrition rate
is yet another challenge that they have to battle.

REVIEW OF LITERATURE

Agent Attrition & Its Consequences: Fed up with the life of an insurance agent, many aging
baby boomers are retiring or choosing something spicier for their lives. Some principals are
seizing the opportunity to sell their agencies to banks or another entity. While they may make big
dollars or find cool waves, sticky problems in remain their wake. Too often, principals are
struggling to attract new agents they can groom to take over the helm. At the same time, many of
the country's brightest young business minds are looking askance at the prospect of being
insurance agents; they've been spooked into thinking such positions will ultimately be filled by
non-humans. The outlook seems so bleak that agents might someday vanish, and will it be
technology that metes out the coup de grace? Or do most agents actually view technology as
their savoir? The independent agent is going the way of the independent drugstore and the
independent hardware store," says Chris Melton, sales director of Profit Stars Insurance Agency
Solutions Group, a unit of the Monett, Mo.-based Jack Henry & Associates Inc. This is partly
due to the repeal in 1999 of the Glass-Steagall Act that opened the floodgates for banks to enter
the insurance field. "The ability to hire and grow organically young new agents is brutal-the
attrition rate is usually more than 80% within the first three years of hiring them," explains
Melton. The spectre of technology's effect on insurance agents has certainly led some into the
banking and brokerage industries. "We have gone through a period of a couple of decades in
which we have been telling young people coming into the insurance business that the agency
plant is not the place to be - that agents are going to be disinter mediated in the future, that it is
going to be self service.”
Publication: Insurance Networking News: Executive Strategies for Technology Management
Publication Date: 01-NOV-06
Higher Attrition Rate - Major Challenge in HRM: Employee attrition is one of the critical
problem which is faced by an HR manager during these days. In an ideal situation an employee
consider multiple comfort level while working in a office for e.g. employer's goodwill in the
market, remuneration, future growth, working condition, co-workers, current role's scope in the
market & most important future stability with the organization. In a survey, approximate 70% of
the working population in India is not happy at all due to one of the aspect (as mentioned
aforesaid) which is not fulfilled while working in a organization which caused higher attrition
rate. In broad term, attrition is a situation which employer face when employee left the
organization due to job dissatisfaction, new opportunity in the market, retirement & natural cause
(death/illness). Now days this is one of the most important question which is asked by higher
authority to HR people…."Why our attrition rate is higher than other company". Earlier it
wasn't important for the organization, whether their employees are committed or not, but now the
time has been changed. The company cannot afford to lose its best employee to competitors.
Therefore, HR team conducts EXIT interview when an employee left the job to get the
information about one's decision to leave an organization. It is a paramount consideration for a
HR team to think, why people are vacating their positions. Still Human Resource team face the
challenge due to wrong information provided during EXIT interview.
Ms. Sapna Rana

Lecturer
Department of Management Studies
B.S. Anangpuria Institute of Technology & Management
Faridabad
Publication Date: June 10, 2008
Global Talent Metrics unveils India’s first comprehensive Attrition Study on employee
preferences: Global Talent Metrics, a global leader in talent technology today formally unveiled
key findings of India’s first comprehensive research and survey on factors impacting employee
attrition among white collar workers across industries. The research was developed and survey
was conducted over the last 12 months and includes responses from 5000 employees of
companies across industries. The survey for the first time probes the role of demographic,
psychographic and sociological factors in predicting attrition and organizational factors that
attract individuals or cause them to leave a company. The study is the first under the STAR™
(System for Talent Attraction & Retention) Research series and was carried out in partnership
with IIM-Bangalore & AlignMark Inc., a US-based pioneer and leading tools and services
provider for optimizing human capital resources. Global Talent Metrics will present the report at
the NASSCOM HR Summit in Chennai on July 3rd and 4th. On the occasion, the company
announced the introduction of its pioneering tool STARSELECT ™ 1.0 in the Indian market
which gives recruiters the ability to identify early attrition risk candidates. The research, data set
and findings has been extensively used to customize the tool for the Indian market. Talking of
the survey and the newly launched tool, Dr Cabot Jaffee, Chairman, Global Talent Metrics, said,
“The challenge of attrition though not unique to India is unique and intense in a manner not seen
in other markets across the world. This makes it imperative that any knowledge or psychometric
tool in this area be locally validated. We are committed to investing in R&D that will help
companies improve how they source and select their talent. Star Select will allow companies
reduce the cost and loss of managerial productivity associated with candidates not starting post
offer or leaving within the first 6-9 months”. Formally unveiling the report, Ranjan Sinha,
Founder & Chairman, Summit HR Worldwide said, “While there is abundant data on levels and
rate of attrition there has been no comprehensive study on the causative factors behind this
critical business challenge. Lack of data meant absence of structured approaches to predicting
and addressing attrition. This report provides validated insights on the triggers for early attrition
that is relevant in the local context and one that can be studied with reference to individual
organizations. The STARSELECT tool is a great tool in predicting early attrition and unique in
the sense that it can be customized and can be interpreted by practicing managers without the
intervention of trained psychologists. As the strategic partners to Global Talent Metrics, we
leveraged this tool successfully while providing solutions to our existing customer”
Publisher: Rajesh Kumar.K
Publication Date: July 7, 2008

OBJECTIVES OF THE STUDY

 To check that is the behavior of supervisors is one of the major reasons behind employees
leaving insurance company .
 To analyze what extent employees leave job due to monetary reasons.
 To study does infrastructural facilities provokes an employee to leave the job.

 To analyze the major reasons fro quitting the company.

RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the research problem. It may be
understood as a science of studying how research is done scientifically. In it we study the various
steps, the research process problem and basic logics behind them. The basic steps in this research
are shown in the chart below.
Research Process
Define the research problem and its objectives
↓
Review concepts and theories
↓
Research design including sample design
↓
Collection of data survey
↓
Analysis of data
↓
Interpretation and report writing

The research consisted of two stages . In the first stage, a survey was conducted to collect the
data about the customer . The second stage involved analysis of the data collected in the first
stage.

DATA COLLECTION
Data has been collected both from primary as well as secondary sources as described below :
Primary sources:
The primary source of data was interviews conducted as part of the survey . This data forms the
backbone of the analysis of the customers requirements . The survey is described in detail in the
following section.
The sample size for the survey was 150.It consisted of advisors , ex-serviceman , managers ,
agents and senior managers .
Secondary source:
The secondary source of data were the various websites and insurance manuals . This mainly
provided information about the insurance sector and company’s profile . These helped in gaining
knowledge about the industry . These sources are listed in AVIVA LIFE INSURANCE
( Chandigarh ) .
The questionnaire ( given in the end of the report)was used to gather information on the
following areas:
 General Information
 Most important investment area
 Awareness about Finance
SAMPLE SIZE: 150
SAMPLING AREA: Chandigarh , Mohali
DEMOGRAPHIC INFORMATION OF THE
RESPONDENTS

FIGURE NO: 1

INTERPRETATION:

The above pie chart illustrates the length of service composition used in the data collection. Out of the 150 respondents 17% the respondents are working in the present
insurance company from last 3 – 5 years. 15% of the respondents are those who are working from last 2 – 3 years. From 1 – 2 years the proportion of the respondents is
23%. The respondents who are working from 6months – 1 year are only 18% whereas respondents working from 0 – 6 years are 27%.

FIGURE NO: 2

INTERPRETATION:

The above pie chart described the age composition of the sample showing that out of 150 respondent’s 52% of the respondent’s belonged to the age group of 25 – 45
years. Maximum number of the respondent’s belonged to this group. 43% of the respondent’s belonged to the 15 – 25 years whereas only 5% of the respondent’s were
those who belonged to the age group of 45 years and above.

FIGURE NO: 3

INTERPRETATION:

The above pie chart illustrates the gender composition used in the data collection. The number of respondent’s who filled the questionnaires comprised of 68% males
whereas the number of females was only 31%. This clearly showed that the number of females were half as compared to males.

FIGURE NO: 4

INTERPRETATION:

It is clearly visible from the above graph that the majority of the people was well educated and had completed their graduation. 16% of the respondent’s were under
graduate but they too had qualified their higher secondary education. 44% of the respondent’s were graduates while 39% of the respondent’s were post graduates.

ANNUAL FAMILY INCOME

FIGURE NO: 5

INTERPRETATION:

This figure illustrates that the maximum respondent’s of the study were from the income bracket of Rs.2,00,000 – Rs.1,00,000. These constitute a percentage of 33%
respondents. The next 31% of the respondent’s were from the income bracket Rs.1,00,000 – Rs.2,00,000. 26% of the respondent’s belonged to the income group of
Rs.3,00,000 and above whereas only 10% of the respondent’s were from the income group of below Rs.1,00,000.

FIGURE NO: 6

INTERPRETATION:

The bar graph above depicts the marital status of the respondent’s who filled the questionnaires. 58% of the respondents out of a sample size 150 are single. Only 42%
of the respondent’s were married.

RESPONSE INFORMATION

FIGURE NO: 1

INTERPRETATION:

The above figure illustrates that 12% respondent’s who filled the questionnaires were from Bajaj Allianz. 14% of the respondent’s were from ICICI Prudential. 6% of
the respondent’s were from Tata AIG. 11% respondents were covered from the Max New York Life and Birla Sunlife. 14% of the people were from METLIFE. From
LIC 5% of the respondents were covered. Only 2% of the respondents were from Reliance Insurance and HDFC Standard Life. From AVIVA Life Insurance 12% of
the people were covered whereas from only 8% of the responds have been covered.

FIGURE NO: 2

INTERPRETATION:

The above bar graph clearly states that in insurance sector 43% of the respondents are of the view that employees are always recognized as an individual in their
respective organizations. 31% of the employees feel that usually employees are recognized as an individual. 18% of the employees are those who think that sometimes
they are recognized as an individual and sometimes not whereas in the eyes of 2% of the respondents employees are rarely, never and they are not sure that the
employees are recognized as an individual.

FIGURE NO: 3

INTERPRETATION:

This graph illustrates that employees see the company’s goals as their own goal. 51% of the respondents are those who think that company’s success make the
employees stable in the organization. 35% of the respondents are of the view that usually company’s success make employees stable. 9% of the respondents have given
their view that sometimes company’s success is able to make the employees stick to the organization whereas according to the rest of the 4% respondents company’s
success rarely makes the employees stable.

FIGURE NO: 4

INTERPRETATION:

The above bar graph shows that 25% of the respondents think that employees believe that managers live by the company’s ethics extremely well. Majority of the
respondents i.e. 53% of the employees believe that managers live by the company’s ethics very well. 4% of then are of the view that managers live not very well by the
company’s ethics yet another 16% of the people are of the view that sometimes managers live and sometimes not whereas 0.6% of the people are of the view that
managers doesn’t abide by own philosophy at all.

FIGURE NO: 5

 Supervisor
knows about subordinate’s task.
 Supervis
or takes time to listen to subordinate’s.
 Supervisor is
willing to promote juniors.
 Supervisor
recognized employee’s contribution.
 Supervis
or is always available to discuss job related issues.
 Supervis
or trains subordinate’s whenever necessary.
 Supervis
or helps in providing sufficient training.
 Supervisor
has reasonable expectations.
 Supervis
or gave fair and equal treatment.
 Supervisor
welcomed suggestions and encouraged feedback.
 Supervisor
provides adequate work environment.

Concern training empathy

Arithmetic Mean 20.2 7.97 15.43
Standard Deviation 6.14 3.27 4.35

INTERPRETATION:

The above bar graph shows the collective graphical presentation of 11 statements above mentioned. These statements are pooled under three major headings. These
headings are concern, training and empathy.
The mean of concern comes out to be 20 which show that average
responses indicate a favorable relationship between superiors and subordinates on this aspect.
The mean for training is 7 which imply that respondents are satisfied with the training provided
in insurance sector. In empathy the mean is 15 which show that they are even satisfied with the
statements related to empathy. Therefore we can say that overall the behavior of supervisors is
not a reason behind attrition rate.

FIGURE NO: 6
Concern empathy training


INTERPRETATION:
The above bar graph shows the collective graphical presentation of 11 statements above mentioned In Bajaj Allianz. These statements are pooled under three major
headings. These headings are concern, training and empathy.
The mean of concern comes out to be 19 which show that
average responses indicate a favorable relationship between superiors and subordinates on this
aspect. The mean for training is 7 which imply that respondents are satisfied with the training
provided in Bajaj Allianz. In empathy the mean is 13 which show that they are even satisfied with the
statements related to empathy. Therefore we can say that overall the behavior of supervisors is
not a reason behind attrition rate in Bajaj Allianz.

FIGURE NO: 7


INTERPRETATION:
The above bar graph shows the collective graphical presentation of 11 statements above mentioned In ICICI Prudential. These statements are pooled under three major
provided in ICICI Prudential. In empathy the mean is 18 which show that they are even satisfied with
the statements related to empathy. Therefore we can say that people working in ICICI Prudential are
satisfied with the behavior of supervisors and therefore it can not be the reason behind attrition
rate in ICICI Prudential.
FIGURE NO: 8


INTERPRETATION:
The above bar graph shows the collective graphical presentation of 11 statements above mentioned In Max New York Life. These statements are pooled under three
major headings. These headings are concern, training and empathy.
provided in Max New York Life. In empathy the mean is 10 which show that they are even satisfied with
the statements related to empathy. Therefore we can say that people working in Max New York Life are
satisfied with the behavior of supervisors and therefore it can not be the reason behind attrition
rate in ICICI Prudential.

FIGURE NO: 9


INTERPRETATION:
The above bar graph shows the collective graphical presentation of 11 statements above mentioned In Birla Sunlife. These statements are pooled under three major
provided in Birla Sunlife . In empathy the mean is 14 which show that they are even satisfied with the
statements related to empathy. Therefore we can say that people working in Birla Sunlife are satisfied
with the behavior of supervisors and therefore it can not be the reason behind attrition rate in Birla
Sunlife.

FIGURE NO: 10
Concern training empathy


INTERPRETATION:
The above bar graph shows the collective graphical presentation of 11 statements above mentioned In Aviva. These statements are pooled under three major headings.
These headings are concern, training and empathy.
The mean of concern comes out to be 20 which show that average
responses indicate a favorable relationship between superiors and subordinates on this aspect.
The mean for training is 8 which imply that respondents are satisfied with the training provided
in Aviva. In empathy the mean is 17 which show that they are even satisfied with the statements
related to empathy. Therefore we can say that people working in Aviva are satisfied with the
behavior of supervisors and therefore it can not be the reason behind attrition rate in Aviva.
FIGURE NO: 11

INTERPRETATION:

This graph is related to the work environment. 12 statements related to the work environment are presented in this graph. The major reason of attrition at lower level is
inability to fulfill duties and responsibilities as 32% of the respondents have supported this statement. 29% of the respondents feel that problem in policies of
recognizing employees are a reason of increasing attrition rate. 27% of people feel that work load in insurance sector leads to attrition rate. 23% of the people are of the
view that employee disputes are one of the reasons behind attrition rate. 22% people have supported that reason is job rotation. 21% of the respondents are of the belief
that reason behind attrition is their position in the company and inadequate career growth. Other 20% of the respondents feel that the cause behind attrition is job
description, work environment and working hours. 19% of the people think that communication between departments and people leads to attrition rate and lastly 13%
of the respondents assume that promotion and transfer leads to increase in attrition rate.

FIGURE NO: 17
Arithmetic Mean Standard Deviation

Ventilation & Temperature 2.23 1.5
Proper Spacing 2.41 1.4
Lighting 2.15 1.4
Drinking Water 2.41 1.5
Urinals 2.47 1.4
Spittoons 2.41 1.5
Canteen 2.46 1.5

INTERPRETATION:

This graph shows the mean and standard deviation of infrastructural facilities. The majority of the respondents believe that infrastructural facilities rarely provoke an
employee to leave the job. The mean percentages range from 2.15 – 2.47 which clearly support the above mentioned statement.

FIGURE NO: 18

Ventilation & 1.33 0.59
Temperature
Lighting 1.22 0.55
Urinals 1.56 0.78
Spittoons 1.50 0.71
Canteen 1.50 0.86

INTERPRETATION:

The above graph shows the effect of infrastructural facilities on Bajaj Allianz. The respondents
working in Bajaj Allianz are of the view that infrastructural facilities never incite an employee to
leave the job.

FIGURE NO: 19

Temperature
Lighting 1.14 0.36
Urinals 1.19 0.40
Spittoons 1.29 0.56
Canteen 1.33 0.66

INTERPRETATION:
The above graph presents the effect of infrastructural facilities on ICICI Prudential.
The respondents working in ICICI Prudential too think that infrastructural facilities never incite
an employee to leave the job. Therefore infrastructural facilities are not the reason behind
attrition in ICICI Prudential.

FIGURE NO: 20

Temperature
Lighting 2.00 0.50
Urinals 2.53 0.72
Spittoons 3.29 1.11
Canteen 3.06 1.35

INTERPRETATION:
This graph presents the effect of infrastructural facilities on Max New York Life.
The people working in Max New York Life are of the view that infrastructural facilities rarely
and sometimes become the reason behind leaving the job.

FIGURE NO: 21

Temperature
Lighting 3.18 1.70
Urinals 3.12 1.41
Spittoons 3.12 1.41
Canteen 2.77 1.30

INTERPRETATION:
This graph presents the effect of infrastructural facilities on Birla Sunlife. The
respondents are of the view that infrastructural facilities provided at Birla Sunlife are not as good
as compared to other insurance industries. In Birla Sunlife these facilities provoke an employee
sometimes to leave the job.

FIGURE NO: 22

Temperature
Lighting 1.95 1.08
Urinals 2.37 1.21
Spittoons 1.74 0.93
Canteen 1.84 1.12

INTERPRETATION:

If we look at Aviva and it’s effect on infrastructural facilities then we can say that in Aviva these
facilities never or we can say that rarely become the reason of attrition rate.

FIGURE NO: 23

Salary 4.21 1.05
Commissions 3.92 1.20
Incentives 3.75 1.20
Flexibility to Family Responsibilities 3.55 1.10

Medical Benefits 3.19 1.21
Health Benefits 3.17 1.20
Retirement Benefits 3.53 1.30
Yearly Increments 3.86 1.13

INTERPRETATION:

This graph clearly shows that monetary reasons are sometimes or usually become the reason of leaving the job. Among the various monetary reasons salary is the major
reason.

FIGURE NO: 24


Salary 4.56 0.92

INTERPRETATION:

The above bar graph shows the effect of monetary reasons on Bajaj Allianz. In Bajaj Allianz monetary reasons are sometimes or usually become the reason of leaving
the job. Among the various monetary reasons salary is the major reason behind the people leaving the organization.

FIGURE NO: 25

Salary 3.14 1.28

INTERPRETATION:The above bar graph shows the effect of monetary reasons on ICICI Prudential. Amongst the various reasons salary plays the most important
role. These monetary reasons rarely or sometimes become the reason behind the people leaving the j
FIGURE NO: 26

Salary 3.88 0.70

INTERPRETATION:This bar graph shows the effect of monetary reasons on
Max New York Life. Amongst the various reasons salary plays the most
important role. These monetary reasons rarely or sometimes become the reason behind the people leaving the job.
FIGURE NO: 27

Salary 4.12 1.05

Birla Sunlife. Amongst the various reasons salary plays the most important
role. These monetary reasons usually become the reason behind the people leaving the job.
FIGURE NO: 28

Salary 4 1.05
Retirement Benefits 3 1.45

Aviva. Amongst the various reasons salary plays the most important role. These
monetary reasons sometimes become the reason behind the people leaving the job.

FIGURE NO: 29

INTERPRETATION:

This graph shows that discrimination and harassment play a minor role in leaving the organization. 3% of the respondents are those who have observed or experienced
age and racial discrimination.1% of the people have observed and experienced gender discrimination. Whereas majority of the people i.e. 90% of the respondents have
said that they have neither observed nor experienced any of the discrimination.

FIGURE NO: 30

INTERPRETATION:

In this graph employee’s satisfaction with the response of management on suggestions given by them is shown. 9% of the respondents have never offered a suggestion.
8% of the respondents have offered a suggestion but they are not at all satisfied. 12% of them are not very satisfied. 21% of the people are somewhat satisfied whereas
41% of the people are those who are very satisfied after giving the suggestions and with the management’s response in reverence to those suggestions.

FIGURE NO: 31

INTERPRETATION:

In nutshell if we look at the reasons behind increasing attrition rate at lower level in insurance sector then the major reason according to 62% of the respondents is
higher pay. The second major reason is better job opportunities as 51% of the people have ticked this option. Yet another reason is career change according to 31% of
the respondents. Some other reasons family and personal reasons, benefits, relocation, conflict with managers, conflict with employees, commute.

FIGURE NO: 32

INTERPRETATION:

The above bar graph shows that 57% of the respondents are those who’ll definitely refer the company in which they are working to their friends. 26% of the people will
probably refer this company. 10% out of 150 are not sure whereas 2% of them will not refer the company to their friends.
CROSS TABULATION OF HIGHER PAY AND LENGTH OF SERVICE
Higher Pay
Unchecke CheckedTOTAL
d
LENGTH OF SERVICE0 – 6 Months 16 26 42
6 Months – 1 Year6 21 27
1 – 2 Years 10 24 34
2 – 3 Years 11 11 22
3 – 5 Years 14 11 25
TOTAL 57 93 150
Table
CHI - SQUARE TEST
Valu df p - value
e
Pearson Chi-square8.70 4.000.06
Table
HYPOTHESIS:
ALTERNATE HYPOTHESIS : There is significant relationship between higher pay and

length of service.
INTERPRETATION:
Cross Tabulation is used to state the respondents of different length of service groups and their
view regarding higher pay as one of the reason of attrition rate. 93 respondents out of 150 think
that higher pay leads to attrition. The Chi – Square value of 0.06 shows that there is a significant
relationship between length of service and higher pay. Therefore we will reject the null
hypothesis and accept the alternate hypothesis.
CROSS TABULATION OF BENEFITS AND LENGTH OF SERVICE
BENEFITS
d
1 – 2 Years 29 5 34
2 – 3 Years 21 1 22
3 – 5 Years 21 4 25
TOTAL 127 23 150
Table

CHI - SQUARE TEST
Valu df p - value
e
Table
HYPOTHESIS:
ALTERNATE HYPOTHESIS : There is significant relationship between benefits and

length of service.
INTERPRETATION:
view regarding benefits as one of the reason of attrition rate. 23 respondents out of 150 think that
benefits leads to attrition. The Chi – Square value of 0.03 shows that there is a significant
relationship between length of service and benefits. Therefore we will reject the null hypothesis
and accept the alternate hypothesis.
CROSS TABULATION OF BETTER JOB OPPORTUNITY AND LENGTH OF

SERVICE
Better job
opportunity
Unchecked Checked TOTAL
1 – 2 Years 13 21 34
2 – 3 Years 14 8 22
3 – 5 Years 15 10 25
TOTAL 73 77 150
Table
CHI - SQUARE TEST
Valuedf p - value
Pearson Chi- 5.130 4.0000.274
square
Table
HYPOTHESIS:
ALTERNATE HYPOTHESIS : There is significant relationship between better job

opportunities and length of service.
INTERPRETATION:
view regarding better job opportunities as one of the reason of attrition rate. 77 respondents out
of 150 think that higher pay leads to attrition. The Chi – Square value of 0.27 shows that there is
insignificant relationship between length of service and better job opportunities. Therefore we
will reject the alternate hypothesis and accept the null hypothesis.

CROSS TABULATION OF COMMUTE AND LENGTH OF SERVICE
Commute
LENGTH OF SERVICE 0 – 6 Months 31 11 42
6 Months – 1 Year 27 0 27
1 – 2 Years 34 0 34
2 – 3 Years 22 0 22
3 – 5 Years 25 0 25
TOTAL 139 11 150
Table
CHI - SQUARE TEST
Value df p - value
Pearson Chi-square 30.52 4.00 0.00
Table
HYPOTHESIS:
ALTERNATE HYPOTHESIS : There is significant relationship between commute and

length of service.
INTERPRETATION:
view regarding commute as one of the reason of attrition rate. 11 respondents out of 150 think
that commute leads to attrition. The Chi – Square value of 0.00 shows that there is a significant
relationship between length of service and commute. Therefore we will reject the null hypothesis

CROSS TABULATION OF CONFLICT WITH OTHER EMPLOYEES AND LENGTH

OF SERVICE
Conflict with other employees

1 – 2 Years 33 1 34
2 – 3 Years 19 3 22
3 – 5 Years 24 1 25
TOTAL 138 12 150
Table
CHI - SQUARE TEST
Value df p - value
Table
HYPOTHESIS:
ALTERNATE HYPOTHESIS : There is significant relationship between conflict with

other employees and length of service.
INTERPRETATION:
view regarding conflict with other employees as one of the reason of attrition rate. 12
respondents out of 150 think that conflict with other employee’s leads to attrition. The Chi –
Square value of 0.35 shows that there is insignificant relationship between length of service and
conflict with other employees. Therefore we will reject the alternate hypothesis and accept the
null hypothesis.
CROSS TABULATION OF CONFLICT WITH MANAGERS
AND LENGTH OF SERVICE
Conflict with managers

1 – 2 Years 31 3 34
2 – 3 Years 19 3 22
3 – 5 Years 21 4 25
TOTAL 136 14 150
Table
CHI - SQUARE TEST
Value df p - value
Table
HYPOTHESIS:

managers and length of service.
INTERPRETATION:
view regarding conflict with managers as one of the reason of attrition rate. 14 respondents out
of 150 think that conflict with manager leads to attrition. The Chi – Square value of 0.56 shows
that there is insignificant relationship between length of service and conflict with managers.
Therefore we will reject the alternate hypothesis and accept the null hypothesis.
CROSS TABULATION OF FAMILY AND PERSONAL REASONS AND LENGTH OF

SERVICE
Family and personal reasons

1 – 2 Years 27 7 34
2 – 3 Years 16 6 22
3 – 5 Years 19 6 25
TOTAL 118 32 150
Table
CHI - SQUARE TEST

Value df p - value
Table
HYPOTHESIS:
ALTERNATE HYPOTHESIS : There is significant relationship between family and

personal reasons and length of service.
INTERPRETATION:
Cross Tabulation shows the respondents of different length of service groups and their view
regarding family and personal reasons as one of the reason of attrition rate. 32 respondents out of
150 think that higher pay leads to attrition. The Chi – Square value of 0.70 shows that there is
insignificant relationship between length of service and family reasons. Therefore we will reject
the alternate hypothesis and accept the null hypothesis.

CROSS TABULATION OF RELOCATION/MOVE AND LENGTH OF SERVICE
Relocation/Move
1 – 2 Years 25 9 34
2 – 3 Years 18 4 22
3 – 5 Years 21 4 25
TOTAL 129 21 150
Table
CHI - SQUARE TEST
Value df p - value
Table
HYPOTHESIS:
ALTERNATE HYPOTHESIS : There is significant relationship between relocation/move
and length of service.
INTERPRETATION:
view regarding relocation/move as one of the reason of attrition rate. 21 respondents out of 150
think that relocation/move leads to attrition. The Chi – Square value of 0.06 shows that there is a
significant relationship between length of service and relocation/move. Therefore we will reject
the null hypothesis and accept the alternate hypothesis.

CROSS TABULATION OF CAREER CHANGE AND LENGTH OF SERVICE
Career Change
1 – 2 Years 21 13 34
2 – 3 Years 15 7 22
3 – 5 Years 18 7 25
TOTAL 103 47 150
Table
CHI - SQUARE TEST
Value df p - value
Table
HYPOTHESIS:
ALTERNATE HYPOTHESIS : There is significant relationship between career change

and length of service.
INTERPRETATION:
Cross Tabulation clearly represents the respondents of different length of service groups and
their view regarding career change as one of the reason of attrition rate. 47 respondents out of
150 think that career change leads to attrition. The Chi – Square value of 0.03 shows that there is
a significant relationship between length of service and higher pay. Therefore we will reject the
null hypothesis and accept the alternate hypothesis.

CROSS TABULATION OF COMPANY INSTABILITY AND LENGTH OF SERVICE
Company Instability
1 – 2 Years 33 1 34
2 – 3 Years 22 0 22
3 – 5 Years 25 0 25
TOTAL 149 1 150
Table
CHI - SQUARE TEST
Value df p - value
Table
HYPOTHESIS:
ALTERNATE HYPOTHESIS : There is significant relationship between company

instability and length of service.
INTERPRETATION:
view regarding company instability as one of the reason of attrition rate. Only 1 respondent out
of 150 is of the view that company instability leads to attrition. The Chi – Square value of 0.48
shows that there is insignificant relationship between length of service and company instability.
CROSS TABULATION OF HIGHER PAY AND AGE
Higher Pay
d
AGE15 – 25 Years 18 47 65
25 – 45 Years 34 43 77
45 Years & Above5 3 8
TOTAL 57 93 150
Table
CHI - SQUARE TEST
Valu df p - value
e
Table
HYPOTHESIS:

age of the respondents belonging to different groups.
INTERPRETATION:
Cross Tabulation is used to state the respondents of different age groups and their view regarding
higher pay as one of the reason of attrition rate. 47 respondents belonging to the age group of 15
– 25 Years are of the view that higher pay is one of the major reasons of attrition. Whereas out of
150 only 43 respondents belonging to the age group of 25 – 45 Years have checked the higher
pay as a reason of attrition. The people belonging to the age group of 45 Years and above
amongst these only 3 respondents have checked this. The Chi – Square value of 0.04 shows that
there is a significant relationship between age and higher pay. Therefore we will reject the null
hypothesis and accept the alternate hypothesis.
CROSS TABULATION OF HIGHER PAY AND AGE
BENEFITS
d
AGE15 – 25 Years 49 16 65
25 – 45 Years 70 7 77
TOTAL 127 23 150
Table
CHI - SQUARE TEST
Valu df p - value
e
Table
HYPOTHESIS:
ALTERNATE HYPOTHESIS : There is significant relationship between benefits and age

of the respondents belonging to different groups.
INTERPRETATION:
Cross Tabulation is used to state the respondents of different age groups and their view regarding
higher pay as one of the reason of attrition rate. 16 respondents belonging to the age group of 15
– 25 Years are of the view that benefits act as one of the major reasons of attrition. Only 7
respondents belonging to the age group of 25 – 45 Years have checked the higher pay as a reason
of attrition. The people belonging to the age group of 45 Years and above are of the view that
benefits do not lead to attrition rate. The Chi – Square value of 0.01 shows that there is a
significant relationship between age and benefits. Therefore we will reject the null hypothesis
CROSS TABULATION OF BETTER JOB OPPORTUNITY AND AGE
Table
CHI - SQUARE TEST
Better job
opportunity
AGE15 – 25 Years 31 34 65
25 – 45 Years 38 39 77
TOTAL 73 77 150
Valu df p - value
e
Table
HYPOTHESIS:

opportunity and age of the respondents belonging to different groups.
INTERPRETATION:
Cross Tabulation shows that 39 respondents belonging to the age group of 25 – 45 Years are of
the view that better job opportunity leads to attrition. 34 respondents belonging to the age group
of 15 – 25 Years have checked the better job opportunity as a reason of attrition. The people
belonging to the age group of 45 Years and above amongst these only 4 respondents have
checked this. The Chi – Square value of 0.97 shows that there is insignificant relationship
between age and better job opportunity. Therefore we will reject the alternate hypothesis and
accept the null hypothesis that there is no relationship between different age groups and better
job opportunity.
CROSS TABULATION OF COMMUTE AND AGE
Commute
AGE 15 – 25 Years 55 10 65
25 – 45 Years 76 1 77
45 Years & Above 8 0 8
TOTAL 139 11 150
Table
CHI - SQUARE TEST
Value df p - value
Table
HYPOTHESIS:
ALTERNATE HYPOTHESIS : There is significant relationship between commute and age

of the respondents belonging to different groups.
INTERPRETATION:
Cross Tabulation above clearly shows that 10 respondents belonging to the age group of 15 – 25
Years think that commute is one of the major reasons of attrition. Only I respondent belonging to
the age group of 25 – 45 Years have checked the higher pay as a reason of attrition. The people
belonging to the age group of 45 Years and above are of the view that commute does not lead to
attrition. The Chi – Square value of 0.00 shows that there is a significant relationship between
age and commute. Therefore we will reject the null hypothesis and accept the alternate
hypothesis.

CROSS TABULATION OF CONFLICT WITH OTHER EMPLOYEES AND AGE

AGE 15 – 25 Years 61 4 65
25 – 45 Years 69 8 77
TOTAL 138 12 150
Table
CHI - SQUARE TEST
Value df p - value
Table
HYPOTHESIS:

other employees and different age groups.
INTERPRETATION: Cross Tabulation clearly represents the respondents of different age

groups and their view regarding higher pay as one of the reason of attrition rate. othER. Only 4
respondents belonging to the age group of 15 – 25 Years think that conflict with other employees
act as a reason of attrition. The people belonging to the age group of 45 Years and above thinks
that conflict with other employees does not lead to attrition. The Chi – Square value of 0.45
shows that there is a insignificant relationship between age and conflict with other employees
Therefore we will reject the alternate hypothesis and accept the null hypothesis which signifies
that conflict with other employees has no relationship with different age groups.

CROSS TABULATION OF CONFLICT WITH MANAGERS AND AGE

AGE 15 – 25 Years 59 6 65
25 – 45 Years 69 8 77
TOTAL 136 14 150
Table
CHI - SQUARE TEST
Value df p - value
Table
HYPOTHESIS:

managers and different age groups.
INTERPRETATION:
Cross Tabulation clearly represents that 8 respondents belonging to the age group of 25 – 45
Years are of the view that conflict with managers lead to attrition. Only 4 respondents belonging
to the age group of 15 – 25 Years have checked the conflict with managers as a reason of
attrition. The people belonging to the age group of 45 Years and above think that conflict with
managers does not lead to attrition. The Chi – Square value of 0.62 shows that there is
insignificant relationship between age and conflict with managers. Therefore we will reject the
alternate hypothesis and accept the null hypothesis.
CROSS TABULATION OF FAMILY AND PERSONAL REASONS AND AGE

AGE 15 – 25 Years 57 8 65
25 – 45 Years 54 23 77
TOTAL 118 32 150
Table
CHI - SQUARE TEST
Value df p - value
Table
HYPOTHESIS:

personal reasons and different age groups.
INTERPRETATION:
Cross Tabulation above clearly represents that 23 respondents belonging to the age group of 25 –
45 Years are of the view that family and personal reasons is one of the major reasons of attrition.
8 respondents belonging to the age group of 15 – 25 Years think that family and personal reasons
act as a reason of attrition. The people belonging to the age group of 45 Years and above
amongst this only 1 respondent have checked this. The Chi – Square value of 0.03 shows that
there is a significant relationship between age and higher pay. Therefore we will reject the null
hypothesis and accept the alternathypothesis.

CROSS TABULATION OF RELOCATION/MOVE AND AGE
Relocation/Move
AGE 15 – 25 Years 57 8 65
25 – 45 Years 66 11 77
TOTAL 129 21 150
Table

CHI - SQUARE TEST
Value df p - value
Table
HYPOTHESIS:

and age of the respondents belonging to different groups.
INTERPRETATION:
Cross Tabulation above is used to state the respondents of different age groups and their view
regarding higher pay as one of the reason of attrition rate. 11 respondents belonging to the age
group of 25 – 45 Years are of the view that relocation/move is one of the major reasons of
attrition. 8 respondents belonging to the age group of 15 – 25 Years have checked the
relocation/move as a reason of attrition. The people belonging to the age group of 45 Years and
above amongst these only 2 respondents have checked this. The Chi – Square value of 0.61
shows that there is insignificant relationship between age and relocation/move. Therefore we will
reject the alternate hypothesis and accept the null hypothesis.
CROSS TABULATION OF CAREER CHANGE AND AGE
Career Change
AGE 15 – 25 Years 43 22 65
25 – 45 Years 56 21 77
TOTAL 103 47 150
Table
CHI - SQUARE TEST
Table
Value df p - value

HYPOTHESIS:

and age of the respondents belonging to different groups.
INTERPRETATION:
Cross Tabulation above clearly indicates that 22 respondents belonging to the age group of 15 –
25 Years are of the view that career change is one of the major reasons of attrition. 21
respondents belonging to the age group of 25 – 45 Years have checked the career change as a
reason of attrition. The people belonging to the age group of 45 Years and above amongst these
only 4 respondents have checked this. The Chi – Square value of 0.35 shows that there is
insignificant relationship between age and career change. Therefore we will reject the alternate
hypothesis and accept the null hypothesis.

CROSS TABULATION OF COMPANY INSTABILITY AND AGE
Company Instability
AGE 15 – 25 Years 64 1 65
25 – 45 Years 77 0 77
TOTAL 141 1 150
Table
CHI - SQUARE TEST
Value df p - value
Table
HYPOTHESIS:

instability and age of the respondents belonging to different groups.
INTERPRETATION:
Cross Tabulation in the above table is used to state the respondents of different age groups and
their view regarding higher pay as one of the reason of attrition rate. Only 1 respondent
belonging to the age group of 15 – 25 Years are of the view that company instability is one of the
major reasons of attrition. Whereas people belonging to the age group of 25 – 45 Years and 45
Years and above think that company instability does not lead to attrition. The Chi – Square value
of 0.51 shows that there is insignificant relationship between age and company instability.

CROSS TABULATION OF HIGHER PAY AND EDUCATION
Higher Pay
Unchecke Checke TOTAL
d d
EDUCATIONHigher Secondary6 18 24
Graduation 22 45 67
Post Graduation 29 30 59
TOTAL 57 93 150
Table
CHI - SQUARE TEST
Valu df p - value
e
Table
HYPOTHESIS:

education.
INTERPRETATION:
Cross Tabulation is used to state the respondents of different education groups and their view
regarding higher pay as one of the reason of attrition rate. 93 respondents out of 150 think that
higher pay leads to attrition. The Chi – Square value of 0.06 shows that there is a significant
relationship between education and higher pay. Therefore we will reject the null hypothesis and
accept the alternate hypothesis.

CROSS TABULATION OF BENEFITS AND EDUCATION
BENEFITS
Unchecke Checke TOTAL
d d
EDUCATIONHigher Secondary15 9 24
Graduation 59 8 67
TOTAL 127 23 150
Table
CHI - SQUARE TEST
Valu df p - value
e
Table
HYPOTHESIS:

education.
INTERPRETATION:
regarding benefits as one of the reason of attrition rate. 9 respondents belonging to the higher
secondary think that benefits leads to attrition. 8 respondents who are graduates think that higher
pay lead to attrition. Only 1 respondent who belongs to post graduate group thinks that benefits
act as a reason of attrition. The Chi – Square value of 0.00 shows that there is a significant
relationship between education and benefits. Therefore we will reject the null hypothesis and

CROSS TABULATION OF BETTER JOB OPPORTUNITY AND EDUCATION
Better job
opportunity
EDUCATIO Higher Secondary13 11 24
N Graduation 33 34 67
TOTAL 73 77 150
Table
CHI - SQUARE TEST
Valu df p - value
e
Table
HYPOTHESIS:

opportunity and education.
INTERPRETATION:
Cross Tabulation clearly shows the respondents of different education groups and their view
regarding better job opportunity as one of the reason of attrition rate. 77 respondents out of 150
think that better job opportunity leads to attrition. The Chi – Square value of 0.77 shows that
there is insignificant relationship between education and better job opportunity. Therefore we
will reject the alternate hypothesis and accept the null hypothesis.

CROSS TABULATION OF COMMUTE AND EDUCATION
Commute
EDUCATION Higher Secondary 16 8 24
Graduation 65 2 67
TOTAL 139 11 150
Table
CHI - SQUARE TEST
Value df p - value
Table
HYPOTHESIS:
education.
INTERPRETATION:
regarding commute as one of the reason of attrition rate. 11 respondents out of 150 think that
commute leads to attrition. The Chi – Square value of 0.00 shows that there is a significant
relationship between education and commute. Therefore we will reject the null hypothesis and

CROSS TABULATION OF CONFLICT WITH OTHER EMPLOYEES AND

EDUCATION

Graduation 61 6 67
TOTAL 138 12 150
Table
CHI - SQUARE TEST
Value df p - value
Table
HYPOTHESIS:

other employees and education.
INTERPRETATION:
regarding conflict with other employees as one of the reason of attrition rate. 12 respondents out
of 150 think that conflict with other employee’s leads to attrition. The Chi – Square value of 0.90
shows that there is insignificant relationship between education and conflict with other
employees. Therefore we will reject the alternate hypothesis and accept the null hypothesis.

CROSS TABULATION OF CONFLICT WITH MANAGERS
AND EDUCATION

Graduation 60 7 67
TOTAL 136 14 150
Table
CHI - SQUARE TEST
Value df p - value
Table
HYPOTHESIS:

managers and education.
INTERPRETATION: Cross Tabulation is used to state the respondents of different education

groups and their view regarding conflict with managers as one of the reason of attrition rate. 14
respondents out of 150 think that higher pay leads to attrition. The Chi – Square value of 0.65
shows that there is insignificant relationship between education and conflict with managers.

CROSS TABULATION OF FAMILY AND PERSONAL REASONS AND EDUCATION

Graduation 49 18 67
TOTAL 118 32 150
Table
CHI - SQUARE TEST
Value df p - value
Table
HYPOTHESIS:

personal reasons and education.

groups and their view regarding family and personal reasons as one of the reason of attrition rate.
32 respondents out of 150 think that family and personal reasons leads to attrition. The Chi –
Square value of 0.15 shows that there is a significant relationship between education and family
reasons. Therefore we will reject the alternate hypothesis and accept the null hypothesis.

CROSS TABULATION OF RELOCATION/MOVE AND EDUCATION
Relocation/Move
Graduation 62 5 67
TOTAL 129 21 150
Table
CHI - SQUARE TEST

Value df p - value
Table
HYPOTHESIS:

and education.

groups and their view regarding relocation/move as one of the reason of attrition rate. 21
respondents out of 150 think that relocation/move leads to attrition. The Chi – Square value of
0.06 shows that there is a significant relationship between education and relocation/move.
Therefore we will reject the null hypothesis and accept the alternate hypothesis.

CROSS TABULATION OF CAREER CHANGE AND EDUCATION
Career Change
Graduation 44 23 67
TOTAL 103 47 150
Table
CHI - SQUARE TEST
Value df p - value
Table
HYPOTHESIS:

and education.
INTERPRETATION:
regarding career change as one of the reason of attrition rate. 47 respondents out of 150 think that
career change leads to attrition. The Chi – Square value of 0.02 shows that there is a significant
relationship between education and career change. Therefore we will reject the null hypothesis

CROSS TABULATION OF COMPANY INSTABILITY AND EDUCATION
Company Instability
Graduation 67 0 67
TOTAL 149 1 150
Table
CHI - SQUARE TEST
Value df p - value
Table
HYPOTHESIS:

instability and education.
INTERPRETATION:
regarding company instability as one of the reason of attrition rate. 1 respondent out of 150 think
that company instability leads to attrition. The Chi – Square value of 0.46 shows that there is
insignificant relationship between length education and company instability. Therefore we will
reject the alternate hypothesis and null accept the hypothesis.

Higher Pay
UncheckedChecke TOTAL
d
EMPLOYEES RECOGNIZED AS AN Always 16 49 65
INDIVIDUAL Usually 23 24 47
Sometimes13 15 28
Rarely 2 2 4
Never 2 1 3
Not sure 1 2 3
TOTAL 57 93 150
CROSS TABULATION OF HIGHER PAY AND EMPLOYEES RECOGNIZED AS AN

INDIVIDUAL
Table
CHI - SQUARE TEST
Valu df p - value
e
Table

HYPOTHESIS:

employees recognized as an individual.
INTERPRETATION:
Cross Tabulation is used to state the respondents of different employees recognized as an

individual groups and their view regarding higher pay as one of the reason of attrition rate. 93
respondents out of 150 think that higher pay leads to attrition. The Chi – Square value of 0.09
shows that there is a significant relationship between employees recognized as an individual and
higher pay. Therefore we will reject the null hypothesis and accept the alternate hypothesis.
CROSS TABULATION OF BENEFITS AND EMPLOYEES RECOGNIZED AS AN

INDIVIDUAL
BENEFITS
RECOGNIZED AS AN INDIVIDUAL Always 51 14 65
Usually 44 3 47
Sometimes 25 3 28
Rarely 4 0 4
Never 2 1 3
Not sure 1 2 3
TOTAL 127 23 150
Table
CHI - SQUARE TEST
Value Df p - value
Table
HYPOTHESIS:

INTERPRETATION:

individual groups and their view regarding benefits as one of the reason of attrition rate. 23
respondents out of 150 think that benefits leads to attrition. The Chi – Square value of 0.02
benefits. Therefore we will reject the null hypothesis and accept the alternate hypothesis
CROSS TABULATION OF BETTER JOB OPPORTUNITY AND EMPLOYEES

RECOGNIZED AS AN INDIVIDUAL
Better job opportunity

Usually 18 29 47
Sometimes 20 8 28
Rarely 2 2 4
Never 2 1 3
Not sure 2 1 3
TOTAL 73 77 150
Table
CHI - SQUARE TEST
Value df p - value
Table
HYPOTHESIS:

opportunity and employees recognized as an individual.
INTERPRETATION: The above table of Cross Tabulation clearly shows that 77 respondents
out of 150 think that better job opportunity leads to attrition. The Chi – Square value of 0.10
shows that there is insignificant relationship between employees recognized as an individual and
better job opportunity. Therefore we will reject the alternate hypothesis and accept the null
hypothesis
CROSS TABULATION OF COMMUTE AND EMPLOYEES RECOGNIZED AS AN

INDIVIDUAL
Commute
Usually 46 1 47
Sometimes 28 0 28
Rarely 4 0 4
Never 3 0 3
Not sure 3 0 3
TOTAL 139 11 150
Table
CHI - SQUARE TEST
Value Df p - value
Table
HYPOTHESIS:

INTERPRETATION: Cross Tabulation is used to state the respondents of different employees

recognized as an individual groups and their view regarding commute as one of the reason of
attrition rate. 11 respondents out of 150 think that commute leads to attrition. The Chi – Square
value of 0.05 shows that there is a significant relationship between employees recognized as an
individual and commute. Therefore we will reject the null hypothesis and accept the alternate
hypothesis.

CROSS TABULATION OF CONFLICT WITH OTHER
EMPLOYEES AND EMPLOYEES RECOGNIZED AS AN INDIVIDUAL
Conflict with other

employees
RECOGNIZED AS AN Always 62 3 65
Sometimes 23 5 28
Rarely 2 2 4
Never 3 0 3
Not sure 3 0 3
TOTAL 138 12 150
Table
CHI - SQUARE TEST
Value df p - value
Table
HYPOTHESIS:
other employees and employees recognized as an individual.
out of 150 think that conflict with other employee’s leads to attrition. The Chi – Square value of
0.00 shows that there is a significant relationship between employees recognized as an individual
and higher pay. Therefore we will reject the null hypothesis and accept the alternate hypothesis.
CROSS TABULATION OF CONFLICT WITH MANAGERS AND EMPLOYEES


Usually 38 9 47
Sometimes 26 2 28
Rarely 2 2 4
Never 3 0 3
Not sure 3 0 3
TOTAL 136 14 150
Table
CHI - SQUARE TEST
Value df p - value
Table
HYPOTHESIS:

managers and employees recognized as an individual.

recognized as an individual groups and their view regarding conflict with managers as one of the
reason of attrition rate. 14 respondents out of 150 think that conflict with manager’s leads to
attrition. The Chi – Square value of 0.00 shows that there is a significant relationship between
employees recognized as an individual and conflict with managers. Therefore we will reject the
null hypothesis and accept the alternate hypothesis.
CROSS TABULATION OF FAMILY AND PERSONAL REASONS AND EMPLOYEES
Family and personal

reasons
RECOGNIZED AS AN Always 57 8 65
Sometimes 19 9 28
Rarely 4 0 4
Never 2 1 3
Not sure 2 1 3
TOTAL 118 32 150
Table
CHI - SQUARE TEST
Value df p - value
Table
HYPOTHESIS:

personal reasons and employees recognized as an individual.
out of 150 think that family and personal reasons leads to attrition. The Chi – Square value of
0.16 shows that there is insignificant relationship between employees recognized as an individual
and family and personal reasons. Therefore we will reject the alternate hypothesis and accept the
null hypothesis.
CROSS TABULATION OF RELOCATION/MOVE AND EMPLOYEES RECOGNIZED

AS AN INDIVIDUAL
Relocation/Move
Usually 42 5 47
Sometimes 18 10 28
Rarely 4 0 4
Never 2 1 3
Not sure 3 0 3
TOTAL 129 21 150
Table
CHI - SQUARE TEST
Value Df p - value
Table
HYPOTHESIS:

and employees recognized as an individual.

recognized as an individual groups and their view regarding relocation/move as one of the reason
of attrition rate. 21 respondents out of 150 think that relocation/move leads to attrition. The Chi –
Square value of 0.00 shows that there is a significant relationship between employees recognized
as an individual and relocation/move. Therefore we will reject the null hypothesis and accept the
alternate hypothesis.
CROSS TABULATION OF HIGHER PAY AND EMPLOYEES
Career Change
Usually 32 15 47
Sometimes 21 7 28
Rarely 4 0 4
Never 0 3 3
Not sure 3 0 3
TOTAL 103 47 150
Table
CHI - SQUARE TEST
Value df p - value
Table
HYPOTHESIS:

and employees recognized as an individual.
INTERPRETATION:

individual groups and their view regarding career change as one of the reason of attrition rate. 47
respondents out of 150 think that career change leads to attrition. The Chi – Square value of 0.06
career change. Therefore we will reject the null hypothesis and accept the alternate hypothesis.
CROSS TABULATION OF COMPANY INSTABILITY AND EMPLOYEES

Company Instability
Usually 47 0 47
Sometimes 27 1 28
Rarely 4 0 4
Never 3 0 3
Not sure 3 0 3
TOTAL 149 1 150
Table
CHI - SQUARE TEST

Value Df p - value
Table
HYPOTHESIS:

instability and employees recognized as an individual.

recognized as an individual groups and their view regarding company instability as one of the
reason of attrition rate. 1 respondent out of 150 think that company instability leads to attrition.
The Chi – Square value of 0.49 shows that there is insignificant relationship between employees
recognized as an individual and company instability. Therefore we will reject the alternate
hypothesis and accept the null hypothesis.
FINDINGS
the employees stable in the organization
 The reports clearly showed that company’s success make .
 This report also concluded that behavior of supervisors which is a major reason according
to one of the article does not lead to attrition rate.
 The major reason behind attrition rate is promotion and transfer policies. The other major
reason is position in the company.
 The infrastructural facilities such as ventilation and temperature, lighting, drinking water
etc rarely provoke an employee to leave the job.
 The other fact which was highlighted is that among the monetary reasons salary plays the
most important role and usually becomes the reason the reason behind leaving the
organization.

 Discrimination or harassment becomes the reason behind leaving the job in very few
cases. In today’s scenario discrimination or harassment rarely occurs. In most of the
organization it has never been observed.
 The major reason behind attrition is higher pay. Yet another reason which in most of the
cases leads to attrition is career change.
 Lastly the people working in most of the organizations are so much satisfied that they are
ready to refer this company to their friends.
RECOMMENDATIONS
 The company should work on promotion and transfer policies at regular intervals so that
no employee should leave the organization because of inadequate promotion and
transfer policies.
 In India insurance industry has been growing remarkably. Company spends lot of money
on recruitment. Therefore to cut down the company’s cost employees should be given a
good salary as higher pay is one of the major reasons behind attrition rate.
 The employees should be given flexible working hours so they can easily meet their
family and work responsibilities equally.
 The managers should treat all employees equally and give a fair treatment to all. They
aware about their subordinate task and provide a adequate work environment to them.
They must listen to them welcomed their suggestion and encouraged feedback.
 OFFER RETENTION BONUS: Employee longevity typically is rewarded with an annual

raise and mandatory vacation time after three, five or ten years. Offer other seniority-
based rewards such as a paid membership in the employee's professional association
after one year, a paid membership to a local gymnasium and clubs after two years.
 The companies organizes cultural program as and when possible but most of the times,
once in a quarter, in which all the employees are given an opportunity to display their
talents in dramatics, singing, acting, dancing and sports programs such as Cricket,
football, etc. Celebrate successes and recognize when milestones are reached. Buffet
lunches, birthday parties, employee picnics and creative contests will help remind
people why an organization is a great place to work.
LIMITATIONS
This study as stated earlier was to identify the reasons behind attrition at lower level.
Limitation of the study:
o The study was restricted to the people of tricity and near by places.
o The sample size of only 150 respondents was taken due to time constraints.
o Time was the main limitation due to which neither the questionnaire nor the
report was made up to the mark.
o Data collection was a difficult task. Many questionnaires were returned.
o Respondent’s bias could not be ignored.
o The Other one could be the financial limitation. The researchers were students so
they could not afford money beyond their pocket otherwise they could collect
more and more data which helped them to complete their project in better way.

o Secondary data could not be seen properly due to the time constrain.
o Coordinating with other group members was a difficult task.

CONCLUSION
The reports clearly showed that company’s success make the employees stable in the
organization. The survey conducted on the 150 respondendents give a clear view about high
attrition rate in insurance sector at lower rate. The infrastructure facilities provided by the
company never is the reason for leaving the company by the employees. The behavior of the
managers and their co-workers affect them the most. The major factor effect them to change is
the package provided by the company. The promotion and transfer policies of the company also
effect. The survey conducted on the 11 companies in the chandigarh region. Being a limitation in
the study it gives a clear picture about the employee’s behavior. To devoid organization's growth,
HR manager should give close attention to why attrition is occurring in the present. To ignore
why people are leaving the organization is to ignore the organization greatest assets – its people.
People in organization are needed to perform the task; but they are not just machine but more
than that. They are organization dreams, hopes, ambitions, creativity and innovation. And to
retain these valuable assets is one of the surest ways to build an organization rather than just to
go in global markets. And this is the only way an organization can lower its attrition rate

QUESTIONNAIRE Respondent No________
I, Arti sabharwal, student of Gian Jyoti Institute of Management and Training ,

Mohali. As a part of my MBA curriculum I am conducting a research on Identifying
Reasons of Attrition at lower level in the Insurance Sector as a part of my
curriculum. I request you to give your valuable assistance by providing the required
information. The data provided by you will be kept confidential and only be used for the
academic purposes.
1) In which Insurance company are you presently working with?
 Alliance Bajaj  ICICI Prudential  Tata AIG  Max New York Life
 Birla Sunlife  METLIFE  LIC  Reliance Insurance
 AVIVA life insurance  HDFC Standard Life  Any other(specify) ___________
2) Do employees feel that in the organization employees are recognized as an

individual?
 Always  Usually  Sometimes
 Rarely  Never  Not sure
3) Does companies success makes employee stable in the organization?
 Always  Usually  Sometimes
 Rarely  Never  Not sure
4) Do you think employees believe that manager lives by the company's ethic?
 Extremely well  Very well  Not very well
 Sometimes does, sometimes doesn't  Doesn't abide by own philosophy at all
5) Do you think that behaviour of supervisors is one of the major reasons
behind employees leaving insurance company?
(N- Never, R- Rarely, S- Sometimes, U- Usually, A- Always)

Statements N R S U A
i. Supervisor knows about subordinate’s task. 
ii. Supervisor takes time to listen to subordinate’s. 
iii. Supervisor has reasonable expectations. 
iv. Supervisor is willing to promote juniors. 
v. Supervisor trains subordinate’s whenever necessary. 
vi. Supervisor helps in providing sufficient training. 
vii. Supervisor recognized employee’s contribution. 
viii. Supervisor gave fair and equal treatment. 
ix. Supervisor is always available to discuss job related issues. 
x. Supervisor welcomed suggestions and encouraged feedback.     
xi. Supervisor provides adequate work environment. 
6) Do you feel employees have left the job because of?
(SD-Strongly Disagree, D-Disagree, CS-Can’t Say, A-Agree, SA-Strongly Agree)
Statements SD D CS A SA
a. Their position in the company   
b. Communication between departments and people   
c. Job description   
d. Job rotation   
e. Promotion and Transfer policies   
f. Work Load   
g. Working Hours   
h. Employee Disputes   
i. Work Environment   
j. Inadequate Career Growth   
k. Inability to fulfil duties & responsibilities   
l. Problem in policies of recognising employees   

7) In your opinion does infrastructural facilities provokes an employee to

leave the job?

 Ventilation & Temperature     
 Proper Spacing     
 Lighting     
 Drinking Water     
 Urinals     
 Spittoons     
 Canteens     
8) To what extent employees leave job due to monetary reasons
 Salary     
 Commissions     
 Incentives     
 Flexibility to family responsibilities     
 Medical Benefits     
 Health benefits     
 Retirement benefits     
 Yearly Increments     
9) Have you ever observed or experienced any of the following forms of
discrimination or harassment becoming cause of leaving the
organization?
 Racial discrimination  Sexual harassment  Age discrimination
 Gender discrimination  Sexual orientation discrimination
 No, none of the above have been observed or experienced
10) Are employees satisfied with the response of management on

suggestions given by them?
 Never offered a suggestion  Not at all satisfied  Not very satisfied
 Some what satisfied  Very satisfied
11) In nutshell what can be the reasons behind leaving insurance

company? (Check all that apply)
 Higher Pay  Benefits  Better job opportunity
 Commute  Conflict with other employees  Conflict with managers
 Family and personal reasons  Relocation/Move  Career Change
 Company Instability  Other (Please Specify)____________________
12) Would you refer this company to a friend to apply for a job?
 Definitely  Probably  Not sure

 Probably not  Definitely not
Personal Details:
Name: Designation:
Length of service:  0-6 months  6 months - 1 year 1-2 years
 2-3 years  3-5 years
Age:  Below 15 years  15-25 years
 25-45 years  45 years and above
Gender:  Male  Female
Education:  Matriculation  Higher Secondary
 Graduation  Post Graduation
Annual Family Income:  Below Rs. 1, 00,000  Rs. 1,00,000 - 2,00,000
 Rs.2,00,000 - 3,00,000  Rs.3,00,000 and above
Marital status:  Single  Married
Contact no. : ____________________
Thank You for Sparing Your Valuable Time

BIBLIOGRAPHY
BOOKS

 Ashwathappa K., “Human Resource and Personnel Management”, Third edition, Tata –
McGraw-Hill Edition, 2005.
 Prasad L.M., “Human Resource Management”, First edition, Sultan Chand and Sons
Publications, 2001.
 Rao V.S.P, “Human Resource Management”, Second Edition, Anurag Jain Publications,
2005.

WEBSITES
 www.indiamba.com
 www.aviva.com
 www.avivaindia.com
 Business.mapsofindia.com
 www.goliath.ecnext.com
 www.allacademc.com
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A

IDENTIFYING REASONS OF ATTRITION AT LOWER LEVEL

THE INSURANCE SECTOR

Master of Business Administration (MBA)

Submitted by: Submitted to:

Session (2007-2009)

My summer training has added to my practical knowledge and build up my

ARTI SABHARWAL

Ch.No. Particulars Page No.

5 Objectives of the study

8 Findings of the Study

INTRODUCTION TO INSURANCE INDUSTRY

KEY RECOMMENDATIONS OF MALHOTRA COMMITTEE

 Private Companies with a minimum paid up capital of Rs.1billion should be allowed to

 The Insurance Act should be changed.

 Mandatory Investments of LIC Life Fund in government securities to be reduced from

 LIC should pay interest on delays in payments beyond 30 days

Insurance Companies in India

Major Life insurance Companies in India are:

 ABM AMRO Bank

PRODUCT & SERVICES

Number of leavers / average no employed x 100

High rates of Attrition are expensive in terms of:

 Costs Due to a Person Leaving

 Lost Productivity Costs

1. Upon completion of whatever training is provided, the employee is contributing at a 25%

 New Hire Costs

 Lost Sales Costs

TURNOVER RATE= Number of joining the employees

(Number of employees at the beginning of the year +

TURNOVER RATE= Total separations during the year

Average number of employees

TURNOVER RATE= (accession+seperations during year)/2

average number of employees x 100

(iv)REPLACEMENT METHOD:- According to this formula difference between accession and

TURNOVER RATE= accession- seperations dyring year x100 average

It is called NET TURNOVER RATE or WASTAGE RATE.

I AVOIDABLE CAUSES

II UNAVOIDABLE CAUSES

 Long term sickness or disability

LOSSES DUE TO ATTRITION

 The pay of the learner is in excess of what is produced.

 Accidents rates of new employees are often higher.

HIGH ATTRITION RATE IN INSURANCE SECTOR

Publication: Insurance Networking News: Executive Strategies for Technology Management

Publication Date: 01-NOV-06

Ms. Sapna Rana

Publication Date: June 10, 2008

Publisher: Rajesh Kumar.K

Publication Date: July 7, 2008

OBJECTIVES OF THE STUDY

 To analyze what extent employees leave job due to monetary reasons.

 To study does infrastructural facilities provokes an employee to leave the job.

 To analyze the major reasons fro quitting the company.

Define the research problem and its objectives

Review concepts and theories

Collection of data survey

Interpretation and report writing

SAMPLE SIZE: 150

SAMPLING AREA: Chandigarh , Mohali

DEMOGRAPHIC INFORMATION OF THE

Concern empathy training

Standard Deviation 3.99 4.49 2.26

Standard Deviation 2.27 1.67 1.15