A PROJECT REPORT ON

“ATTRITION ANALYSIS IN IT INDUSTRY”

Submitted in the partial fulfilment of the requirement for the award of the degree
MASTER OF BUSINESS ADMINISTRATION

Submitted by
DINAVAHI VENU SATYA MADHAV
Register No. 122023701002

Under the Guidance of

Dr. K V Sandhyavani
Associate Professor

GITAM INSTITUTE OF MANAGEMENT

GITAM (DEEMED TO BE UNIVERSITY)
VISAKHAPATNAM
2020-2022
 TABLE OF CONTENTS

CHAPTER 1: INTRODUCTION 1
NEED/ SIGNIFICANCE OF STUDY 2
OBJECTIVES OF STUDY 2
SCOPE OF STUDY 3
RESEARCH DESIGN 3
DATA COLLECTION METHOD 3
LIMITATIONS OF STUDY 4

CHAPTER 2: INDUSTRY AND COMPANY PROFILE 5

INDUSTRY PROFILE 6
FUTURE PROSPECTS 6
COMPANY PROFILE 7
ABOUT TATA CONSULTANCY SERVICES LTD (TCS) 7
ORGANIZATION STRUCTURE 8
CORPORATE PROFILE 9
LOCATION OF PLANTS, BRANCH AND OFFICES 9
VISION (TATA GROUP) 10
MISSION 10
VALUES 10
CHALLENGES FACED BY CLIENTS 10
COMPETITORS 11

CHAPTER 3: THEORETICAL FRAMEWORK 12

ABSTRACT 14
KINDS OF ATTRITION 15
CAUSES OF ATTRITION 15
ADVANTAGES OF ATTRITION 16
DISADVANTAGES OF ATTRITION 16
COSTS OF ATTRITION 17
REVIEW OF LITERATURE 17

CHAPTER 4: ANALYSIS OF STUDY 20

DEMOGRAPHIC BASED ATTRITION ANALYSIS 21
ANALYSIS BY REASON DURING ATTRITION UNION TELEPHONIC INTERVIEW 25
QUESTION 1 25
QUESTION 2 26
QUESTION 3 27
QUESTION 4 28
QUESTION 5 29
QUESTION 6 30
QUESTION 7 31
CHAPTER 5: FINDINGS, SUGGESTIONS, IMPLICATIONS & CONCLUSION 33
1. FINDINGS 34
2. SUGGESTIONS 35
3. IMPLICATIONS 36
4. CONCLUSIONS 37

REFERENCES 38
 LIST OF TABLES

Table 2.1 Awards and Accolades 10

Table 4.1 2021 Quarterly Attrition Analysis 21
Table 4.2 2021 Reasons for Attrition 22
Table 4.3 2021 Gender-Wise Attrition Analysis 23
Table 4.4 2021 Attrition Analysis Based on Experience Level 24
Table 4.5 Deviations Observed in Responses 32

LIST OF FIGURES

Figure 2.1 TCS Organization Structure 8

Figure 2.2 TCS Management 9
Figure 2.3 TCS Competitors 11
Figure 3.1 Attrition Rate Overview - 2019 19

LIST OF GRAPHS

Graph 4.1 Manager Transparency and Support as Reason for Attrition 29

Graph 4.2 Promotion, Appraisal and On-site as Reasons for Attrition 30
Graph 4.3 Recognition as Reason for Attrition 31

LIST OF CHARTS

Chart 4.1 Quarter-wise Attrition Analysis 21

Chart 4.2 Reasons for Attrition 22
Chart 4.3 Gender-wise Attrition Analysis 23
Chart 4.4 Attrition Analysis Based on Experience Level 24
Chart 4.5 Compensation as Reason for Attrition 25
Chart 4.6 Work Environment and Work Culture as Reason for Attrition 26
Chart 4.7 Growth and Better Opportunities as Reason for Attrition 27
Chart 4.8 Skillset Utilization as Reason for Attrition 28
COMPANY CERTIFICATE

i
 DECLARATION BY STUDENT

I, DINAVAHI VENU SATYA MADHAV, student of Master of Business Administration (Human

Resource Management) MBA (HRM), GITAM Institute of Management (GIM), GITAM
(Deemed to be University), hereby declare that the research project work carried out at TATA
CONSULTANCY SERVICES (TCS) on the title ATTRITION ANALYSIS IN IT INDUSTRY is a genuine
work done by me in partial fulfillment for the requirement of the degree of Master of Business
Administration (Human Resource Management).

Place: Visakhapatnam Signature

Date: 08/10/2021 (DINAVAHI VENU SATYA MADHAV)

ii
 CERTIFICATE BY GUIDE

This is to certify that the report titled ATTRITION ANALYSIS IN IT INDUSTRY is an original work
carried out by DINAVAHI VENU SATYA MADHAV (Enrolment number 122023701002), under
my guidance and supervision, in partial fulfillment for the award of the degree of Master of
Business Administration (Human Resource Management) by GITAM Institute of Management,
GITAM (Deemed to be University), Visakhapatnam, during academic year 2020-2022.

Place: Visakhapatnam Signature

Date: (Dr K V Sandhyavani)
Assistant Professor

iii
 ACKNOWLEDGEMENTS

I want to render my acknowledgement to the following distinguished persons who helped me

in completing my project work successfully.

I am grateful to Dr. K V Sandhyavani, Associate Professor, Project Guide, GITAM Institute of

Management, GITAM (Deemed to be) University, Visakhapatnam for guiding, motivating me
through the entire process and provided valuable suggestions.

I am highly indebted to the management of Tata Consultancy Services for permitting me to

do the project. My special thanks to Ms. Meena (HR Business Partner), for allowing me to
undertake this project and for all the facilities provided to me, and also for giving constant
support and encouragement.

I would also like to thank my project mentor Mr. Mustafa Mansoor, Head HR Business, and
Mr. Sreenivasa Ramanujam, Academic Relations Manager from Tata Consultancy Services
and all the people who provided me with the facilities being required and conductive
conditions for my MBA project.

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 REPORT
Chapter 1: INTRODUCTION

1
The software industry, being one of the country's fastest expanding businesses, plays a critical
role in the Indian economy. A software company has enormous potential to become a
country's economic development and productivity engine.

Software is both a source of profit and a source of employment. With the advancement of
information technology and the expansion of the economy, job prospects in the business
world are increasing as well. Because of the quick growth and entry of new players, a large
number of personnel have been trained.

Most firms' high productivity and performance would not be possible without the support
and contributions of their employees. This is because, the personnel are responsible for a
portion of the organization's goals and strategy. As a result, managers should be concerned
about the problems and issues that employees face in the workplace.

Attrition has long been a vital aspect in the software industry. Despite paying among the
highest salaries in all business areas, the corporations have been experiencing turnover across
the board, particularly in recent years. Software firms are under margin pressures as wage
inflation and attrition rates continue to rise.

Aside from that, the company is riding high on the outsourcing wave, with the constant
prospect of losing its most productive personnel to the competition. Employee churn is a
major issue in the software industry these days. Attrition is a possibility in the workplace.
Globally, most industry sectors, including Indian businesses, have had to contend with rising
staff attrition rates.

Need/ Significance of Study

IT industry companies are observing a boom in recent times, on the other hand the employee
attrition is one of the major concerns. Any IT Company’s performance is primarily dependent
on its employees, who are regarded as the company's backbone.

The study was to determine the level of employee satisfaction, the reasons for dissatisfaction
at workplace, why they prefer to continue in the organization, and why they choose to switch
jobs. This is needed because only when these attitudes are identified and understood, the
management can take necessary action to reduce the levels of attrition in the company. It is
not just reducing attrition alone, but also about bringing down the negative effects of
attrition.

Objectives of Study
1. To study and understand the primary reasons for employee attrition (organizational
and individual).
2. To comprehend the impact of attrition on organizational performance.
3. To propose and imply several retention strategies in the IT industry.
4. To learn why employees would choose to stay at TCS.
5. To provide former employees the opportunity to recommend areas for improvement.
6. To implement the retention strategies in order to retain the finest talents of TCS.

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Scope of Study
The purpose of this study is to understand the influencing factors for employee attrition and
retention at TCS. The study focuses mostly on employees of Banking, Finance Services and
Insurance segment in TCS India. As a result, the study's scope is confined to the geographical
area as well as the defined aspects of personal characteristics. Furthermore, the research only
looked at a few aspects of job characteristics. The report sheds light on useful suggestions for
lowering the organization's attrition rate. This study can assist management in identifying the
weaker aspects of an employee's attitude toward the organization, as well as changing those
weaker aspects into stronger ones.

This research can assist management in determining why people leave their jobs due to
dissatisfaction problems in the workplace, as well as assisting in recovery by providing the
best suggestions or remedies. The scope of this research is limited to TCS India. The study also
helps in determination of the employee's job preference and the variables leading to
dissatisfaction. The study was conducted as a project at TCS and is a contributing element to
the development of the organization in retaining employees.

Research Design
The sampling strategy used to choose the samples was Simple Random Sampling. The
fundamental advantage of this strategy is that it ensures that the sample chosen is
generalizable to the entire population. This guarantees that the statistical findings are correct.
There is an equal chance for each member in the population to be chosen using this method.

Random sampling method was used for the attrition union. Between January 2021 and March
2021, about 248 associates left the organization. 52% (129) of these employees responded
for attrition union telephonic interviews. If someone didn't respond, a new employee was
chosen at random.

The organization published the attrition employees' contact information and other personal
information required for conducting the attrition union telephonic interviews.

• Statistical tools used in the study- percentage analysis is used for the analysis of data
• Sample size – A total sample size of 129 employees was chosen, including employees
with different roles and locations within Banking, Finance Services and Insurance
Segment of the organization.
• Sample of study - The sample is a fundamental unit made up of the elements of the
population to be sampled. Employees from TCS in India make up the sample
population.

Data Collection Method

The structured interview, which comprises of questions used to measure the satisfaction and
understand the concerns, was employed as the data collection tool in this study. It was
decided before the survey was conducted. The questions are open ended.

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We looked at former employees' replies in two interviews.
• Past employees answered questions in attrition union telephonic interview, and
• Past employees answered questions at the time of the company's exit interview.

The sample size is composed of data from random telephone interviews (N = 129) and data
from exit interviews (N = 129).
This data is about the past employees who quit the organization during the fourth quarter
(Q4 FY21), i.e., between January 2021 and March 2021.

Types of Data:
Primary data and Secondary data have been used during this study.

Primary data:
• Information regarding concerns, issues of the former employees collected through
attrition union telephonic interviews

Secondary data:
• Internal sources- record
• External sources- internet

Limitations of Study
The research was limited to TCS India. A total of 129 former employees were chosen for the
study. As a result, the study might not be generalizable to the entire population. The research
findings might have deviations due to the few confounding factors.
• The research was restricted to the information provided by employees who quit from
Banking, Finance Services and Insurance segment of TCS India.
• Due to few individual mindsets, the actual reason for leaving the organization might
not be captured.
• Time was a significant limiting factor.
• Employee responses may be casual, and there is a possibility of prejudice.
• The study took into account only a few variables, while analyzing attrition, and
employee attitudes.
• The findings cannot be represented for entire population. The study should be tested
on a bigger sample size.

4
Chapter 2: INDUSTRY AND COMPANY PROFILE

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INDUSTRY PROFILE
In India, Information Technology (IT) Industry stands crucial in building the nation competent
enough in the global market. As far as the growth of Indian economy is concerned, IT industry
has been one of the leading contributors. This has also contributed its best in transformation
of India. Most entrepreneurs in India prefer venturing in this industry because of its scope.
With IT industry, India has developed a lot and the source of economy transformed from
purely agriculture to knowledge based.

The main focus of IT in India is with development of reliable technology platforms, generation
of employment, and technology adoption to compete with the global market. All these are
made possible with the advancement in Internet services. IT industry has changed everything
starting from payments to passport applications. Also, the information is made accessible
when and wherever it is required.

Performance Highlights
• Around 200 Indian IT companies operate in more than 80 countries.
• In 2018, India's IT and ITeS industry rose to US$ 167 billion.
• In FY18, the industry's exports reached US$ 126 billion, while domestic revenues
(including hardware) grew to US$ 41 billion.
• Between April 2000 and September 2018, India's IT sector received a total of US$
33.36 billion in FDI.

Challenges in IT Industry
Besides the advantages and significance of IT Industry in India, there are certain challenges
like Cyber Security, data management and quality management. In order to overcome these
challenges, companies and even the Government are involving multiple measures to protect
the data from being hacked or infringed. For continuous growth to happen in IT industry, each
and every player in the industry has to be focused, adoptive and re-invent themselves either
by technology, collaborations, investments etc. those that promote transformation. TCS, HCL,
Tech Mahindra, Infosys and Wipro are some of the leading based Multi-National Companies
(MNCs) in India. In addition to the efforts by the industry, for the growth to happen, there is
a need of efforts from stakeholders.

Future Prospects
According to NASSCOM, it is estimated that IT sector would generate a revenue of $130 Billion
by 2025. In the near future, Indian IT industry may observe noticeable rise in technology
investments, because of the increasing investment expenditure in technology and service
providers across India and other markets. Of all these, the clients shall be experiencing flexible
and low-cost solutions in the coming years.

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Top Occupations
Computer software engineer, hardware engineers, network engineers, business operation
specialists, accountants, computer system analysts, management, data communication
analysts are some of the top occupations within the IT industry.

COMPANY PROFILE
About Tata Consultancy Services Ltd (TCS)
Tata Consultancy Services Limited (TCS) is one of the global leaders in IT services, consulting,
and BPO. TCS envisioned and the pioneer in adopting the flexible global business processes
allowing firms to operate more productively, efficiently, delivering the best of value today.

TCS is an Indian multinational corporation that trades on the NSE (National Stock Exchange)
and BSE (Bombay Stock Exchange). It is a subsidiary of India's biggest industrial giant, the Tata
Group.

It began operations in 1968, before the IT services business became what it is today. TCS is
now one of the largest IT companies in the world, with its presence in 34 countries on six
continents across a broad range of services in a variety of industries. Loyal and valued
customers of TCS include companies from Fortune top 10 companies.

Services and Solutions

TCS is a well-known IT services company that provides a wide range of services throughout
the IT landscape. These are:
1. Consulting
2. IT Infrastructure Services
3. Product Based Solutions
4. Cloud
5. IoT
6. Blockchain
7. Automation & AI
8. Enterprise Applications
9. BPO.
10. TCS Interactive
11. Cognitive Business Operations
12. Conversational Experiences
13. Cyber Security
14. Quality Engineering
15. Analytics and Insights
16. Engineering and Industrial Services

TCS is at the forefront of offering best-in-class services due to its robust and mature
processes, as well as technical and functional knowledge in various industry verticals. These
industries include:

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 1. Banking, Financial Services & Insurance
2. Energy, Resources & Utilities
3. Life Sciences & Healthcare
4. Manufacturing
5. Travel & Transportation
6. Telecom
7. Retail & Consumer Packaged Goods
The following are among the cross-industry or horizontal functions:
1. Finance & Accounting
2. High Tech BPO
3. Supply Chain Management
4. Human Capital Management

Organization Structure
Below hierarchy with different roles is the outline of organization structure at TCS. Decision
making is centralized.

Figure 2.1 TCS Organization Structure

Source - Sureshjonna.in

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Corporate Profile
Figure 2.2 TCS Management

Source: Business Standard News (business-standard.com)

Location of Plants, Branch and Offices

1. Corporate Office
TCS House
Raveline Street
Mumbai – India
FAX - 91-22-67789000
Phone1 - 91-22-67789999
Phone2 - N.A.
Email - Corporate.Office@Tcs.Com

2. Registered Office
Nirmal Building
9th Floor Nariman Point
Mumbai – India
FAX - 91-22-67789660
Phone1 - 91-22-67789595
Phone2 - N.A.
Email - Tcs@Tata.Com/Investor.Relations@Tcs

3. TCS Worldwide Offices:

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 • North America
• Latin America
• Asia Pacific
• Europe
• Middle East & Africa
• UK & Ireland
• India
• Australia & New Zealand
• Japan

Vision (TATA Group)

To be globally significant in each of our chosen businesses by 2025.

Mission
Our mission is to help customers achieve their business objectives by providing innovative,
best-in-class consulting, IT solutions and services and to make it a joy for all stakeholders to
work with us.

Values
• Leading change
• Integrity
• Respect for the individual
• Excellence
• Learning and sharing

Challenges Faced by Clients

Align IT with strategic business objectives
Flexibility built-in to respond to a rapidly changing global market being able to strategize,
develop, and implement new ideas quickly to be competitive in the market.

Awards and Accolades

TCS has bagged the world’s premier business awards, The International Business Awards
(IBAs)

Table 2.1 Awards and Accolades

Award Type/ Reason for award Awarded to branch
Gold Stevie IT Department of the Year: TCS IT Ultimatix TCS India
Gold Stevie Mobile Site & App – Sports: 2019 TCS New York City TCS United States
Marathon App
Silver Stevie New Products and Product Management – Business TCS United States
Technology Solution – Artificial Intelligence/Machine
Learning Solution: TCS Optumera™
Bronze Most Exemplary Employer: TCS SBWSTM TCS India
Stevie

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Competitors
Figure 2.3 TCS Competitors

Source: Business Standard News

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Chapter 3: THEORETICAL FRAMEWORK

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This study is centered on the issue of "Attrition Analysis" and is carried out in the domain of
Human Resource Management. The most difficult task for every company is to keep its
personnel. The goal of this study is to use primary research to obtain a better understanding
of the complex challenges that employee attrition has brought to light.

Specific Objectives:

• To identify the trends in these employees’ behavior and identify reasons for
employees leaving the organization.
• Identify employers' perspectives on employees' reasons for leaving.
• Identify retention strategies that have a positive influence on retention.

Why employees leave their jobs?

There was a considerable gap between what employers expected and the actual reasons
given by employees as the main causes for leaving the organization. Employers frequently
ignored the need of providing opportunities for development for their staff, as well as the
necessary training.

Apart from lack of opportunity for growth and salary benefits, the following were the top
three reasons:
• Academic Pursuit
• Personal Reasons (like family issues, marriage, relocation etc.,)
• Other Reasons

What can be done?

To reduce the occurrence and impact of employee turnover, employers must establish an
employee retention plan. It happens in stages -
• Compare turnover rates and costs to the competitors to determine the amount and
cost of turnover
• Identifying reasons for workforce leaving
• Implementation of the retention strategies

Employees would enjoy their jobs, work hard for their employers, like their colleagues, be
well compensated for their efforts, have plenty of opportunities for development, and have
adaptable work prospects that allow work-life balance. Even then, the employees might
discontinue their tenure from the organization.

When opportunities were few, however, technology developments were slower, voluntary
attrition was lower, and organizations were able to handle it. Nevertheless, with the
increasing costs, technological advancements, the level attrition has ascended, causing harm.

Attrition helps measure the recurring revenue lost over a set period of time, expressed
periodically (quarterly or annually).

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Abstract
Employees are a company's most important resource. They are the ones who increase the
company's value and quality of output. Finding, attracting, developing, and retaining the
proper personnel is an important aspect of management. As a result, maintaining a stable and
promising staff is important, which has become a challenging burden for employers over time,
resulting in growing attrition in businesses.

Attrition is a major problem that affects all companies. Attrition refers to the steady reduction
in the number of employees owing to retirement, termination, resignation, or death.
Employee defection or turnover are other terms for the same thing.

When a company loses a talented employee, a void is created. As a result, essential skills,
information, and business contacts are lost within the company. Modern managers and
personnel administrators are keen on lowering attrition in the workplace so that it contributes
to the organization's optimum performance, growth, and progress.

Attrition incurs a lot of cost. It's one of the most important expenditures in every organization,
and at the same time, it is one of the least understood. Organizations must devise innovative
strategies in order to retain the most productive employees.

Individual differences need an understanding of intrinsic motivators in order to retain

employees. Personnel retention is a constant and critical effort. Employees require
reinforcement, guidance, and acknowledgement in order to advance and remain pleased in
their work. Managers must grasp this and recognize that instilling such values demonstrates
their dedication to the environment while also inspiring their employees.

This report is an outcome of the research on the topic "Attrition Analysis in IT Industry". This
study aims to uncover the causes of attrition from a variety of perspectives, as well as provide
some solutions to the problem. It investigates the impact of the same on both the employer
and the employee.

In this study, I attempted to uncover the approaches and strategies for employee retention,
and the associated attrition costs. Following then, various factors for attrition were examined
in this regard. Attrition's beneficial aspects have also been highlighted. In addition, the
remedial actions have been discussed. Attrition management isn't just a good thing to do; it's
a necessity for survival.

What is “Attrition”?

Attrition is the gradual decrease of a workforce's size through termination, resignation, death
or retirement. This is very common across companies and industries. Attrition rate is defined
as the rate of shrinking in number or size of the employees of the organization. This reduction
is one of the techniques to reduce labor costs for a company: the company allows the
employees to leave and stops hiring.

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In any sort of company, some employee attrition is desirable for the scope of new ideas. It
assists companies in maintaining their agility in a rapidly changing condition. It attracts new
talent, allows new ray of hope for change, development, and progress, and reveals
opportunities to extend operations and add to the organizations’ creative lines. In this way,
attrition in limited measure might benefit the company. However, if attrition increases over
a certain point, the gains transform into a source of misery. High attrition rates, according to
recruiters, dramatically increase the investment made on. In order to hire personnel, any
company must make significant time and financial investments. When attrition is high, these
can never be transformed into profit.

Kinds of Attrition
1. Voluntary Attrition:
When an employee leaves the company on their own will, this is known as voluntary
attrition. This type of attrition is caused by pull factors such as higher emoluments
elsewhere, better possibilities for growth and promotion, and so forth.
2. Involuntary Attrition:
Employees leave firms due to factors such as improper promotion policies, unfair
performance appraisals, and so on.
3. Compulsory Attrition:
It happens as a result of the government's and the organization's rules and regulations.
It includes attrition that occurs as a result of reaching retirement age, completing a
tenure, and so on.
4. Natural Attrition:
It occurs as a result of events and factors that are not under the control of individual
or organization. This includes things like death, insanity, and so on.

Causes of Attrition
1. Salary:
One of the key factors that influence an employee's decision to leave the organization
is money. It could be either due to insufficient salaries, delay in payments, less or no
increments, compression in wages, etc. Companies, in recent years, started pursuing
the finest of the talents with attractive, very high salary levels and enticing job titles.

2. Work Environment:
If an employee does not have faith in the fairness of the system, he or she may leave
the company. Organizations that place a low priority on employee safety and care will
see their turnover rates rise.

3. Work Pressure:
Companies that want to extract productivity out of their employees to increase
profits, may choose to hire fewer people. In such situations, employees will be forced
to reassess their priorities and join a company that guarantees a relaxing work
environment.

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 4. Job Satisfaction:
Employees prefer a job that provides them with a high level of responsibility and a
fast-paced career path. Employee exodus cannot be controlled if companies fail to
meet these expectations.

5. Relationship With Supervisors and Co-Workers:

A supervisor who lacks confidence, empathy, and trust in their staff may find it difficult
to win the respect of their subordinates. A lack of amicable connections with
coworkers might also contribute to a high rate of departure.

In addition to the aforementioned, other reasons for attrition include the individual's health,
geographic location, and competency in the workplace.

1. External causes like better pay opportunities, better perks, more promotions and
more fringe benefits in other organizations can lead to attrition.
2. Personal or individual causes such as death, marriage, pregnancy, mental imbalance,
self-employment, etc., may lead to attrition.

Advantages of Attrition
In some situations, high attrition rates are considered beneficial:
1. The company benefits when few employees depart whose continued service might
have had a negative influence on the company's productivity and profitability.
2. New personnel offer new ideas, perspectives, abilities, and attitudes to the
organization, which can help it avoid stagnation.
3. When current groups are rigid or group members are reluctant of others, attrition of
a member could benefit the organization.
4. Older employees may learn from new talent. They can be encouraged and try to outdo
them, creating a healthy and competitive environment.
5. Attrition will reduce the cost of maintaining additional workforce, resulting in lowered
total costs.

Disadvantages of Attrition
1. The organization may lose its top talent. Investing in employee engagement at a
period of economic distress is very crucial. And if an employer ignores employee
engagement, the smart and top-talented personnel may leave as soon as there are
signs of economic progress.
2. Employers must recruit a new replacement for resources due to attrition, which is a
time-consuming procedure. Due to the lack of resources, this may cause the project's
existing deadlines to be pushed back. The project's cost will also rise as a result of this.
3. The incoming resources must be trained on the existing project or expertise, which
will incur a significant cost in order to bring them up to the level of the departing
employees.
4. If all employees retain in the company for more years, then majority will be
demanding for high pay scale, resulting in high human expenditures.

16
 5. If it takes a long time to recruit a new replacement, existing team members may be
required to perform several duties, increasing their workload and potentially
jeopardizing employee productivity.
6. Employee engagement as a strategy is important for short-term and long-term
organizational viability. As a result, low employee engagement is likely to have a
detrimental impact on the organization's success.
7. An organization's management must be able to create a culture in which each
employee feels respected and empowered to make decisions. The organization's
culture is harmed by high attrition rates.

Costs of Attrition
1. Recruitment costs – This includes several costs such as advertisements, employee
referrals, agency costs, cost of the personnel time to assess, understand, develop and
implement plans for recruitment, preparation of candidate assessments, verification
checks and decision on employment.
2. Cost of Training – This includes the costs of material and equipment, trainer cost,
refreshments and technology costs
3. Training costs – These include the cost of training, equipment and materials,
refreshments, and technology.
4. Cost of Administrative Proceedings – These include of costs of providing access cards
or identity cards.
5. Cost of Signing Bonus – This bonus is provided to new employees as a token of
appreciation for joining the company; which is also a big element of the cost.
6. Loss of Productivity Costs – A new candidate employed is not entirely productive while
learning the new job. It also includes the costs associated with the new employee's
low output.
7. Loss of Sales costs – These are the losses incurred as a result of project cancellation
owing to key personnel attrition.
8. Cost of Exit Interview

Review of Literature
Despite numerous studies on attrition management, researchers from strategic human
resource are still trying to investigate the causal mechanisms between HR structure and
organizational performance, with voluntary termination as a key component (Shaw, Gupta,
and Delery, 2005) as retention of employees plays an essential vital link between macro
strategies and micro strategies (Shaw, Gupta, and Delery, 2005).

This is because it maintains consistency and links the experiences of employees in

organizations to the essential success factors in the organization on a continual basis. The
decision to leave an organization is not simple for an individual employee because it requires
a lot of energy to search new positions, adjust to new conditions, give up daily routines, and
lose interpersonal connections, and it is extremely stressful (Boswell, Boudreau and Tichy,

17
2005). As a result, if organizations take timely and appropriate actions, some of the voluntary
turnover in the organization can be avoided.

Employee turnover can be due to a variety of factors ranging from factors that are external
to business such as the economy, which affects business and, in turn, employment levels
(Pettman 1975; Mobley 1982; Schervish 1983; Terborg and Lee 1984) to organizational factors
such as industry, payment, supervisory level, occupational category, organization size,
location, and selection process (Mobley, 1982; Arthur, 2001). Individual work variables such
as demographic variables, integrative variables like job satisfaction, pay, promotion, and
working conditions (Pettman, 1975; Mobley 1982; Arthur 2001), and individual non-working
variables such as family related variables (Pettman, 1975; Mobley, 1982) are all factors that
influence employee turnover in organizations. Those who do better and are educated enough
have more external employment opportunities than employees who perform average or
poorly, and hence are more likely to quit (Trevor, 2001). Voluntary turnover of such
employees at high rates is frequently shown to be damaging or disruptive to the firm's success
(Glebbeck & Bax, 2004).

The cost of turnover has increased in several industries due to a chronic shortage of qualified
employees. As a result, in many industries and countries, talent acquisition, development,
and retention serve as the foundation for gaining a competitive advantage (Pfeffer, 1994,
2005). Organizations that fail to retain top talent will end up with a workforce that is
understaffed and underqualified, limiting their capacity to compete (Rappaport, Bancroft, &
Okum, 2003).

such as Age, gender, level of education, job category, tenure, and, level of income have
influence on employee retention and were proved to have a steady interlink with turnover
intention.

Demographic factors are also found to have been negatively linked with turnover intention
(Arnold & Feldman, 1982; Cotton & Tuttle, 1986; Gerhart, 1990: Mobley et al, 1979; Price &
Mueller, 1986; Wai & Robinson, 1998; Weil & Kimball, 1995); however, level of education was
found to have positively associated with turnover, with more educated employees having a
tendency to quit (Berg, 1991; Cotton & Tuttle, 1986).

The gender and turnover relationship gave mixed results. Females are more likely to depart
than males, according to Cotton and Tuttle (1986) and Weisberg and Kirshenbaum (1993).
Gender has no effect on turnover, according to Miller and Wheeler (1992) and Wai and
Robinson (1998). However, the employee turnover reasons differ from one organization/
person to the other, as they are not receiving the expected (Ongori, 2007; Mobley 1982 and
Dickter, Roznowski, and Harrison 1996). They also called for more research and theory on
how the turnover process occurs over time (Ongori, 2007; Mobley 1982 and Dickter,
Roznowski, and Harrison 1996).

18
According to a Survey conducted by Omam Consultants, it was observed that the average
attrition rate in 2019 is around 13.1% which is slightly lesser than that in 2018 (13.3%). When
the survey was conducted across various sectors, it was observed that the attrition rate is
high in Insurance Sector while it was least in Automobile Sector. Also, according to this survey,
in 2019, IT industry has an attrition rate of 15%.

Figure 3.14Attrition Rate Overview - 2019

Source: OMAM-Increment-Trend-India-2019.pdf (api-network.org)

19
Chapter 4: ANALYSIS OF STUDY

20
 Demographic Based Attrition Analysis

#1 Quarter-wise Attrition Analysis for FY21:

Table 4.122021 Quarterly Attrition Analysis

Quarter # of Employees
Q1 FY21 225
Q2 FY21 84
Q3 FY21 168
Q4 FY21 248
Total 725

Chart 4.1 Quarter-wise Attrition Analysis

Quarter-Wise Attrition Analysis for FY21

31%
34%

Q1 FY21
Q2 FY21
Q3 FY21
12%
Q4 FY21
23%

Interpretation:
During FY21, it was observed that there were 725 associates who quit the organization due
to various reasons. It was evident that the attrition was high during Q4 (248 employees)
followed by Q1 (225 employees) for the FY21.

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#2 Reasons for Attrition during Q4 FY21:

Table 4.232021 Reasons for Attrition

Reason # of Employees
Better Career Opportunities 58
Higher Compensation 23
Reasons not known/ Other reasons 23
Academic Pursuit 10
Family Circumstances 8
Marriage 3
Entrepreneurship 2
Dissatisfied with Company 1
Relocation 1
Total 129

Chart 4.2 Reasons for Attrition

Family Circumstances
Reasons for Attrition
6% Entrepreneurship
2%
Dissatisfied with
Academic Pursuit Marriage Company
8% 2% 1%

Better Career Opportunities

Higher Compensation
Better Career
Opportunities Reasons not known/ Other reasons
45% Academic Pursuit
Family Circumstances
Higher Compensation Marriage
18%
Entrepreneurship
Dissatisfied with Company

Reasons not known/

Other reasons
18%

Interpretation:
Out of 129 associates in Q4 attrition, it was clear that the 45% better career opportunities (58
employees) and 18% higher compensation (23 employees) were the top reasons mentioned
by the associates during the attrition union.

22
#3 Gender-wise Attrition Analysis:

Table 4.342021 Gender-Wise Attrition Analysis

Gender # of Employees
Male 73
Female 56
Total 129

Chart 4.3 Gender-wise Attrition Analysis

Gender-Wise Attrition Analysis

Female
43%
Male
57% Male
Female

Interpretation:
It is clear that among the 129 associates, 57% (73) of associates are male and 43% (56) of
associates are female. Work timings and marital status do have a high correlation with
attrition of women.

23
#4 Attrition Analysis Based on Experience Level:

Table 4.452021 Attrition Analysis Based on Experience Level

Experience Level # of Employees

Junior 120
Middle 9
Total 129

Chart 4.4 Attrition Analysis Based on Experience Level

Attrition Analysis Based on Experience Level

Middle
7%

Junior
Middle
Junior
93%

Interpretation:
It is clear that maximum percentage (93%) of associates who left the organization were Junior
level associates (120 employees) with experience less than 4 years due to compensation, hike
dissatisfaction and rest 7% were middle level associates (9 employees) with experience less
than 7 years who aspire to work in different work cultures or domains.

24
 Analysis by Reason During Attrition Union Telephonic Interview

Question 1: Were you satisfied with the compensation provided at TCS?

Chart 4.5 Compensation as Reason for Attrition

Compensation

8%

53% Yes
39%
No
May be

Interpretation:
From the attrition union, it was observed that the 53% of the associates were satisfied with
the compensation that was offered to them during their tenure at TCS. However, 39% of
employees expressed dissatisfaction for the compensation provided and had to quit the
organization for better compensation. 8% of the employees had compensation as one of the
concerns to leave the organization where their primary reason for quitting the organization
was different.

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Question 2: Were you satisfied with the work environment & work culture at TCS?

Chart 4.6 Work Environment and Work Culture as Reason for Attrition

Work Environment & Work Culture

91%

Yes
4% No
5%
May be

Interpretation:
The attrition union outcome is evident that the work environment and work culture at TCS
was highly satisfactory to the most employees (91%). 4% of the employees were not satisfied
with the work environment and work culture due to work stress, a few projects working from
office as per client requirements during COVID situations etc. Work environment and work
culture was mentioned by 5% of employees as a factor in their decision to leave the company,
despite the fact that their primary factor for leaving was different.

26
Question 3: Did you get enough opportunities for career growth at TCS?

Chart 4.7 Growth and Better Opportunities as Reason for Attrition

Growth & Better Opportunities

5%
15%

Yes
80% No
May be

Interpretation:
Of the 129 employees who quit the organization during Q4 2021, 80% of the associates had
agreed that they had opportunities for growth and also a better scope at TCS. 15% of the
associates, had highlighted concerns in regards to growth and better opportunities, which
was the major reason for leaving the organization. Over 5% of the associates has observed
concerns with growth and better opportunities as one of the reasons for quitting the
organization.

27
Question 4: Did the company utilize your skillset appropriately?

Chart 4.8 Skillset Utilization as Reason for Attrition

Skillset Utilization - Mapping

2%

31%

67% Yes
No
May be

Interpretation:
During the attrition union, 67% of associates agreed that they were satisfied with the
utilization of skillset possessed by employees through proper mapping. On the other hand,
31% of associates were not impressed with the project mapping with their primary skillset.
The rest 2% of associates had mentioned their one of the concerns as proper mapping and
utilization of skillset.

28
Question 5: Were you satisfied with your Manager/ Leadership at TCS?

Graph 4.1 Manager Transparency and Support as Reason for Attrition

Manager/ Leadership Transparency &

Support

MAY BE 26

NO 11

YES 92

0 10 20 30 40 50 60 70 80 90 100

Interpretation:
Of the 129 associates, 92 (~71%) had no concerns with their manager or the leadership at
TCS. This shows the effective management and leadership present at the organization.
Alongside, there are 11 (~9%) associates who expressed their distress towards the
management. 26 associates (~20%) has also mentioned few of their concerns with the
Manager/ HR during their tenure at the organization.

29
Question 6: Were you satisfied with the promotions/ appraisals/ on-site opportunities at
TCS?

Graph 4.2 Promotion, Appraisal and On-site as Reasons for Attrition

PROMOTIONS, APPRAISAL & ON-SITE

120

100 106

80

60

40

20
22
1
0
Yes No May be

Interpretation:
106 (82%) associates have expressed that the promotion, appraisal and/ or on-site
opportunities provided by the organization were satisfactory, however, there is a
disagreement for the same from 22(17%) associates due to delay in promotions or with
appraisal process or with the on-site opportunities. Only 1 associate along with other
potential concerns had shown dissatisfaction towards this aspect.

30
Question 7: Did you get expected recognition at TCS?

Graph 4.3 Recognition as Reason for Attrition

RECOGNITION

11%
6%

Yes
83% No
May be

Interpretation:
From the attrition union, it was observed that the recognition for the work, efforts are been
given top priority towards employee satisfaction. 83% of the total attrition union contacted,
had no concern in this regard. However, 6% of associates were unhappy with the recognition
at the organization. Another 11% of associates had the similar reason among the other
reasons.

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*Deviations in the reasons during attrition union and exit interview:

Table 4.56Deviations Observed in Responses

Exit Interview Reason Actual Reason During Attrition # of

Union Employees
Compensation & Skillset 1
Academic Pursuit
Issue with Management 1
Issue with Management 6
Better Career Opportunities
Promotion/ Band 1
Higher Compensation Issue with Management 2
Marriage Compensation & Hike 1
Skillset Mapping 3
Compensation & Hike 1
Reasons not known/ Other
Personal 4
reasons
Compensation & Skillset 2
Issue with Management 2
Total 24

Interpretation:
During the attrition union, few associates had stated different reasons in comparison to the
reasons mentioned during their exit interviews. It was clear that maximum deviations
happened to be with the better career opportunity to issue with management. A few
associates (12), who had not specified any reason during their exit interview, have now
expressed their actual reasons.

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Chapter 5: FINDINGS, SUGGESTIONS, IMPLICATIONS &
CONCLUSIONS

33
 1. Findings
Below are the findings from the study after connecting with 129 associates via attrition union
telephonic interview.

• For the FY 2020-21, most of the employees left the organization during Q4 followed
by Q1.
• Maximum attrition was observed in associates with work experience less than 4 years
(Junior level).
• Among the associates who had quit the organization during FY21, male associates
were more in number than female associates.
• The study shows that most of the associates who left the organization were satisfied
with the working conditions at Tata Consultancy Services and that they were clear
about the company policies, rules and regulations.
• Management and leadership at the organization was highly satisfactory to the
associates however few of them have issues related to transparency, release and band
allocations.
• There were no concerns raised with regards to disciplinary or misconduct from any of
their colleagues during their tenure at the organization.
• Performance and appraisal, promotion systems were found to be satisfactory however
the concerns with initiation and delay in promotions were highlighted as major
dissatisfaction by few associates.
• Most of the associates, were dissatisfied with the compensation and hike offered by
the organization, which was the primary or secondary reason for quitting.
• The major problem identified was with the improper mapping of projects and the
skillset possessed by the associate.
• It was evident from the study that the work environment and work culture of the
organization has got positive feedback from the associates.
• During the attrition union telephonic interview, most of the associates had shown
interest in returning to TCS in future, however, according to the existing policy,
associates could not return once they left the organization.
• There were deviations noted in the reasons mentioned by the associates during
attrition union to the reasons provided during exit interview.
• Only one associate was terminated by the organization in the Q4-FY21.

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 2. Suggestions
Based on the findings of the study, few suggestions are identified, that may benefit the
company to reduce attrition, thereby retaining more talent. The below suggestions are purely
designed based on responses from the associates during the attrition union.

• As observed in the report, maximum attrition happened due to better career growth
opportunities. This can be reduced by providing additional training & development
programs, involving employees in client interactions and business travels, encouraging
employees to upskill technologically, assigning challenging roles that demand the best
out of the employees.
• Compensation offered to employees being the second major concern mentioned by
the employees, it must be addressed at par with the competitor companies.
Compensation structure shall be revised for crucial employees with proven talent such
as certifications.
• Recognition plays a very key role in driving positive job satisfaction of the employees.
Recognizing the right people with the right competency in the right place at the right
time will be an important factor that is helpful in retaining more talent, by making
them understand the recognition by the company for their efforts.
• Issue with management was also one among the crucial contributors for attrition. This
needs to be addressed by extending the existing leadership trainings, ensuring free
access to associates to connect with their manager/ leadership whenever is required,
organizing team meetings, townhalls etc., regularly to understand and address their
concerns.
• As we have observed 24 deviations in the reasons specified by the associates, high-
level anonymity maintenance channel during exit interviews could be implemented to
make employees feel comfortable in sharing their views, concerns and reasons for
leaving the organization. This way, the reasons can be better understood and the
organization shall have a chance to address the concern and retain the talent.
• Few of the employees had quit the organization in pursuit of their higher education.
For such cases, TCS has already been providing sabbatical leave for eligible employees,
it is suggested that management to recommend and encourage associates to avail
sabbatical leave instead of resignation.

35
 3. Implications
Few implications for managing attrition can be drawn from the in-depth and comprehensive
study. Employee retention plays an important role in achieving long-term goals and success
of the organization. It also builds a healthy work environment within the organization.
Organizational incurs a lot of costs due to the challenges such as time and investment for
training; losing talent due to attrition; grieving and insecure coworkers; and an expensive
replacement of candidate. Hence, retention is crucial and organizations should clearly
understand and realize the concept of retaining employees. The retentive forces should be
maximized while the debilitating forces are to be controlled by designing various retention
strategies.

It is important to note that retention strategies should not be planned in isolation, but rather
as an integral part of overall strategy for enhancement of recruiting human talent,
through various means such as sourcing, staffing, and development plans. It is also essential
to publicize retention policies along with the other organizational policies for the employees
to feel valued. The importance of people as an asset should be emphasized across the
company. It will be simple to implement retention strategies, once if employees of the
organization believes that the organization cares them, it helps in reducing attrition.

36
 4. Conclusions
The primary objective of any company is to make profits. However, in order to ascend profits,
the company needs to focus more on its personnel and how to retain talent for the long term.
Issue with management, Academic pursuit and personal reasons are the top three variables
that may lead to attrition, according to the survey, aside from lesser growth opportunities
and low salary offerings, which are the typical reasons for employees to turnover in any
company. According to the findings, the company should ensure regular trainings both for the
employees and the management within the organization to reduce attrition.

The organization should also consider recruiting workers who reside close to the company to
avoid turnover due to family issues. However, rather than being particular to a certain region
when recruiting, a company should hire employees from many locations so that it can
improve the diversity and inclusion that enhances the work culture and style.

According to the findings of the study, the best strategy to reduce employee attrition is to
understand what employees need most from their workplace and to provide those needs.
The company must accommodate the demands of its employees within specific limits, of
course.

It is true that management cannot approve all requests, but they can make efforts to
persuade employees. Organizations should also make efforts to implement the majority of
retention policies, which will have a favorable impact on the problem. Employees, too, should
understand of the organization's limitations and behave accordingly.

Employee retention can be greatly improved if the two parties have a greater understanding
of each other. Both parties should be aware of the current situation and surroundings. Every
organization should recognize that its most valuable asset is its employees. Any company
would be in serious trouble if it didn't have qualified individuals who are competent at what
they do. In the long term, retaining existing employees saves money for the organization.

There is no such thing as a universal attrition management solution for every business. Each
company must devise its own motivating strategy based on the alignment of corporate and
individual goals.

37
REFERENCES

38
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India-2019.pdf
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- End of Report -

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