AN ANALYSIS OF EMPLOYEE TURNOVER

Reasons and its Effects at Accenture

A Report submitted in partial fulfillment of the requirements for the degree of

Master of Business Administration

By

GUTTA AMRUTA
REGISTER NUMBER
1927835
Section – K

Under the Guidance of

PROF. ARCHANA SINGH

Institute of Management
CHRIST (DEEMED TO BE UNIVERSITY), Bengaluru

November 2019
A STUDY ON EMPLOYEE TURNOVER - REASONS AND ITS EFFECTS IN THE

ORGANIZATION

ABSTRACT:

The study examines the circumstances and end results of representative turnover and preventive actions

managers can remove to keep away from control turnover. Reasons for turnover fall under three categories:

work disappointment, mistakes in worker determination, and poor administration. The most well-known

reason for turnover is work disappointment while the most common impacts are the costs borne by an

organization. A portion of the preventive activities incorporates administration preparing so as to catch

cautioning of job dissatisfaction and occasional working environment assessment of fulfillment, an open

entryway policy style of the board, and maintain exacting enlisting norms. All together to keep expenses

down, streamlines and proficient human asset program is suggested.

KEYWORDS: Job Satisfaction, Organisational Effectiveness, Job Embeddedness, Employer-

Employee Relationship, Employee Morale, Public Service Motivation.

INTRODUCTION:

Turnover is the ratio of the number of workers that had to be replaced in a given time period to the average

number of workers. In more straightforward terms, turnover is the arrangement of moves that it makes

from the worker leaving to their being supplanted. It is conduct which depicts this procedure.

Representative turnover might be generally a negative issue, yet it can wind up positive whenever

constrained by the association accurately and suitably. Turnover is regularly used as a marker of

organization execution and can without much of a stretch be watched contrarily towards the association's

proficiency and viability. Representative turnover is a characteristic result of working together, yet it is

hurtful to an association in enormous amounts, so it ought to be kept to a base. There are sure examples

during which turnover can be used to profit the organization, for example, firing poor entertainers, taking
into consideration inner advancement, and procuring new workers with creative thoughts. New workers

regularly carry a positive contribution to the organization if the turnover is taken care of accurately. An

assortment of research tasks directed and articles composed on the theme were concentrated to make an

accumulation of endeavors to show the circumstances and end results of turnover and preventive estimates

the executives and initiative of an organization may execute. As an exhibition marker, turnover ought to

be comprehended by the executives and administration of the organization. This paper will talk about what

might be the purposes behind turnover, what outcomes turnover has on an organization, and what the board

and administration in the organization can do to deflect high turnover and decrease the impacts.

RESEARCH QUESTIONS:

The research is being conducted to know the following,

1.The main reasons for employee turnover in the organizations

2. The key factors affecting employee turnover

3. The strategies that organizations are trying to adapt to reduce employee turnover.

LITERATURE REVIEW:

Catherine Taylor and Karl Pillemer’s (2009) study shows demonstrates the relation between various

variables in the organization and employee turnover in the organization. The main emphasis was on

feelings towards the organization, which is referred to like effect. The positive effect resulted in the low

rate of employee turnover and negative affect has led to a high rate of employee turnover.

Anthony R Wheeler, Kenneth J Harris, and Paul Harvey’s (2010) study find out that organizational

effectiveness has a direct impact on job embeddedness. Thus, the organizational effectiveness has a relation

with employee turnover intentions which is mediated by job embeddedness. The organizations with high-

quality work systems have fewer turnover intensions among employees and with poor quality, high levels

of intensions among employees.

James Gerard Caillier (2011) conducted a study on government employee turnover. It was found in the

study that job performance has an inverse relation with employee turnover and job satisfaction was also

inversely related to employee turnover. And the study didn’t find any relationship between employee

participation in the decision making of the organization. Public Service Motivation has also no relation to

employee turnover.

Christopher M Berry, Ariel M Lelchook and Malissa A Clark’s (2012) meta-analysis study was conducted

to know the relation between lateness, absenteeism and employee turnover. The absenteeism and employee

turnover have a low correlation, that there is a negative relationship between absenteeism and employee

turnover. The high rate of absenteeism has no impact on employee turnover. Similarly, lateness and

employee turnover are also inversely related to each other.

Lateness and Absenteeism:

Lateness is the propensity for being late or deferring appearance. Being late as a type of unfortunate

behavior might be officially culpable in different courses of action, for example, work environment, school,

and so forth. A contrary character quality is promptness.

Absenteeism is a constant example of nonattendance from an obligation or commitment without valid

justification. By and large, non-attendance is impromptu absences. Absenteeism has been seen as a marker

of poor individual execution, just as a rupture of a certain agreement among workers and managers. It is

viewed as an administrative issue and encircled in financial or semi monetary terms. Later grant tries to

comprehend truancy as a pointer of mental, restorative, or social change in accordance with work. High

truancy in the work environment might be characteristic of poor confidence, however, nonattendances can

likewise be brought about by work environment risks or wiped out structure disorder.

Jason A Grissom, Jill Nicholson Crotty and Lael Keiser’s (2012) conducted a study on the public sector,

to know the effect of gender of the superiors on employee turnover. The study gave an implication that the

employees are more satisfied when they are supervised by the managers of the same gender, which leads
to less turnover. The study was conducted in a school where the male teachers have more job satisfaction

with male principles thus resulting in a low employee turnover rate. Thus, the study implies that employee

turnover has a relationship with the gender of the superiors in the organization.

Archana Sukla, R. Srinivasan, and Swati Chaurasia’s (2013) research was a study on the effect of job

satisfaction, organization commitment and work attitudes on the intentions to leave the organization,

directly and indirectly. The work attitudes differ in various contexts, thus as a varying effect on turnover.

Job satisfaction and commitment have an indirect relation to employee turnover. The employee turnover

goes down with high job satisfaction. But the work attitude effects cannot be predicted.

Job Satisfaction:

Job fulfillment is characterized as the degree to which a worker feels self-propelled, content and happy

with his/her activity. Occupation fulfillment happens when a worker feels the individual in question is

having work soundness, profession development, and an agreeable work-life balance. This infers the

representative is having fulfillment at employment as the work meets the desires of the person.

Lamar Pierce and Jason A Snyder’s (2014) study state that unethical demand among the customers has a

direct impact on the turnover of the employees. It also states that organizational norms implemented strictly

also increases the turnover rate and on the other hand organization fraud results in less employee attrition.

The study does specify the importance of framing the organization’s ethics with due consideration to

individual ethics as well.

Michael Walsh’s (2015) research which is conducted at Tesco, the employee turnover states that the main

reasons behind turnover are stress, compensation issues, reward policy, communication gap, and HR

policies. The after-effects of the turnover are increased in the workload of the organization, affected the

morale of the workforce, negative influence on other employees to leave their jobs too, but didn’t affect

their productivity. Michael Walsh gave suggestions that an organization must have enough resources to
provide for employees at the time of heavy workload, to provide more career advancement opportunities

and to maintain a healthy relationship between employer and employee.

Alexandro Beato (2017) aimed his research on retail store leaders, to explore the effective strategies used

by managers to reduce employee turnover. He emphasized the importance of identifying the right strategy

for solving the problem of employee turnover. The study stressed the ways that the managers in the

organization can form a strategy and implement in the organization to reduce employee turnover, to

increase job satisfaction and to stabilize the morale in the organization.

Shinwoo Lee’s (2018) study which was held in the U.S. FEDERAL BUREAUCRACY, implies that job

satisfaction and employee turnover share a positive relationship and contracting out has a direct impact on

employee turnover intention. Shinwoo Lee stresses the importance of supervision, providing challenging

work to increase job satisfaction, restricting the contracting out in the organization to increase the morale

of the employees, providing proper guidance for growth and also strategizing carefully according to

different forms of turnover and causes of turnover. The research also mentions that involuntary turnover is

not any harm to the organization as it replaces incompetent employees with efficient employees ensuring

the growth in organizational productivity.

Involuntary Employee Turnover:

Employee termination for poor job performance, absenteeism or violation of workplace policies is called

involuntary turnover – also referred to as termination, firing or discharge. It’s involuntary because it wasn’t

the employee’s decision to leave the company. Layoffs could also be considered involuntary terminations,

though layoff procedures usually are handled differently from termination. Some layoffs have certain

federal and state provisions that aren’t afforded to employees who are fired because of performance or

policy violations.
DATA ANALYSIS AND INTERPRETATION:

1.1 GENDER OF THE RESPONDENTS:

Table 1.1:
Gender No of Responses Percentage
Male 12 60%
Female 8 40%

Graph 1.1:

Among the 20 respondents, 12 are male employees and 8 are female employees. That is 60% are male

employees and 40% are female employees.

1.2 AGE OF THE RESPONDENTS:

Table 1.2:

Age No of Responses Percentage

24-28 14 70%
29-36 4 20%
37-42 2 10%
Graph 1.2:

The age of the employees lies between 24 and 42. The majority of the employees interviewed are between

24 years and 28 years, which is 70%.

1.3 DESIGNATION OF THE RESPONDENTS:

Table 1.3:

Designation No of Responses Percentage

Software Engineer 4 20%
Associate Software Engineer 5 25%
Senior Software Engineer 7 35%
Team Leader 2 10%
Associate Manager 1 5%
Manager 1 5%
Graph 1.3:

The respondents are of various designations. Few are software engineer, associate software engineer,

senior software engineer, team leader and one each of associate manager and manager. This would help to

gain a wider perspective regarding the reasons behind employee turnover.

1.4 MARITAL STATUS OF THE RESPONDENTS:

Table 1.4:

Marital Status No of Respondents Percentage

Single 13 65%

Married 7 35%
Graph 1.4:

Among the respondents, the marital status of 65% is single and 35% is married. It does have an impact on

employee turnover.

1.5 TENURE OF THE RESPONDENTS AT ACCENTURE:

Table 1.5:

Tenure at Accenture No of Responses Percentage

Less than 6 months 1 5%
6 months to 1 year 2 10%
1 year to 3 years 8 40%
3 years to 5 years 4 20%
More than 5 years 5 25%
Graph 1.5:

The tenure of the respondents in their current organization is, 25% have more than 5 years of tenure, 20%

have 3 years to 5 years of tenure, 40% have 1 year to 3 years of tenure and 15% have less than 1 year of

tenure. This shows that employee turnover at Accenture is not at a high rate, as the employee’s tenure is

high.

1.6 TENURE OF THE RESPONDENTS IN THE PREVIOUS ORGANIZATION:

Table 1.6:

Tenure in the Previous Organisation No of Responses Percentage

Less than 1 year 2 10%
1 year to 3 years 1 5%
3 years to 5 years 3 15%
More than 5 years 1 5%

Have not worked in any other Firm 13 65%

Graph 1.6:

The above graph shows the tenure of the respondents in their previous organizations. 65% of the

respondents have not worked anywhere else other than Accenture. This indicates that employee turnover

at Accenture is low, as employees have been working for many continuous years.

1.7 REASONS BEHIND LEAVING THE PREVIOUS ORGANIZATION:

Table 1.7:

Reason for leaving Previous Firm No of Responses Percentage

Unhappy with the salary offered 2 10%
No scope of growth 3 15%
No incentives 1 5%
Others 1 5%

Have not worked in any other organization 13 65%

Graph 1.7:

Among the 20 respondents, 13 respondents have not worked in any other organization. The other 7

respondents left the organization due to having no scope for growth as said by 15%, and unsatisfying

salary and incentives as said by 15%. The salaries and incentives, career growth does play a very

important role in retaining the employees.

1.8 THE FACTORS WHICH HAVE INFLUENCED THE DECISION TO LEAVE THE

PREVIOUS JOB:

Table 1.8:

Factors Influencing Decisions No of Responses Percentage

Low salary 2 10%
Poor working condition 2 10%
Low career growth 2 10%
Others 1 5%

Have not worked in any other organization 13 65%

Graph 1.8:

From the above graph, we can derive the factors that influence employee decisions regarding their tenure

in an organization. Salaries and incentives, working conditions and career growth are the main factors.

The low salary, poor working conditions, and low career growth would motivate the employee to leave

the organization.

1.9 AFFECT OF THE SPOUSE RELOCATION ON EMPLOYEE TURNOVER:

Table 1.9:

Spouse relocation affects employee turnover No of Responses Percentage

Strongly Agree 9 45%
Agree 8 40%
Neutral 3 15%
Disagree 0 0%
Strongly Disagree 0 0%
Graph 1.9:

The above graph shows that 45% of the respondents strongly agree that spouse relocation as an effect on

employee turnover. 40% agree with the same. And 15% have a neutral approach. But, none of the

respondents said that there is no effect of spouse relocation on employee turnover.

1.10 EFFECT OF GENDER OF SUPERIORS ON EMPLOYEE TURNOVER:

Table 1.10:

Gender of the superiors affects employee turnover No of Responses Percentage

Strongly Agree 0 0%
Agree 1 5%
Neutral 3 15%
Disagree 12 60%
Strongly Disagree 4 20%
Graph 1.10:

60% of the respondents disagreed that the gender of the superiors doesn’t have any impact on employee

turnover. 20% of the respondents strongly disagreed. Only 5% of the respondents agreed. This indicates

that the gender of the superiors will not have any impact on employee turnover.

1.11 THE FACTORS THAT INFLUENCE EMPLOYEES TO RETAIN IN THE

ORGANIZATION:

Table 1.11:

Positive influencing factors No of Responses Percentage

Salary and incentives 4 20%
Scope for career growth 7 35%
Respect and Recognition 7 35%

Best working conditions with minimum norms 0 0%

Challenging work 2 10%
Graph 1.11:

The respondents have mentioned the factors that would influence the employees to retain in the

organization. The main factors that motivate positively are salary and incentives, the scope for career

growth, respect, and recognition and challenging work. 70% of the respondents gave career growth and

recognition as two main factors to retain in the organization.

1.12 FACTORS LEADING TO HIGH EMPLOYEE TURNOVER:

Table 1.12:

Factors leading to high employee turnover No of Responses Percentage

Organization politics 3 15%
Salary and incentives 13 65%

Working environment and behavior of superiors 3 15%

Training 0 0%
Work-life balance 1 5%
Graph 1.12:

The above graph shows that 65% of the respondents said that low salaries and incentives are the major

reason behind the high employee turnover. Organizational politics and the working environment also play

a role in employee turnover. Work-life balance is also one of the reasons behind employee turnover. And

respondents have said that training is not the reason behind the employee turnover. This indicates that the

factors and facilities after the training phase are important in decision making by employees.

1.13 JOB HOPPING THE SAME AS EMPLOYEE TURNOVER:

Table 1.13:

Job Hopping same as employee turnover No of Responses Percentage

Yes 12 60%
No 8 40%
Graph 1.13:

the above graph shows that 60% of the respondents think that job-hopping is the same as employee

turnover. Job hopping is a pattern of changing companies every year or two of one's own volition rather

than as a result of something like a layoff or company closure.

1.14 THE EFFECTIVE STRATEGY TO REDUCE EMPLOYEE TURNOVER:

Table 1.14:

An effective strategy to retain employees No of Responses Percentage

Offering good pay along with incentives 7 35%

Providing proper working conditions 0 0%

Ensuring scope for growth of employees 2 10%

Ensuring that each one is respected and
treated equally 8 40%
Providing Employee Recognition and
Rewards 3 15%
Graph 1.14:

The above graph shows various strategies to reduce employee turnover as suggested by the respondents.

Most of the respondents have said that good pay with incentives and recognition along with respect are

the major strategies that would help the organization retain its employees.

1.15 THE IMPLEMENTATION OF 3 R’S (RECOGNITION, RESPECT, AND REWARD)

WOULD HELP IN THE RETENTION OF THE EMPLOYEE

Table 1.15:

3R's Affect on retention No of Responses Percentage

Yes 20 100%
No 0 0%
Graph 1.15:

All the respondents have said that the implementation of 3R’s, Recognition, Respect, and Reward would

definitely help the organization to retain its employees.

1.16 THE BENEFITS THAT YOU ARE GETTING IN THE CURRENT ORGANIZATION AS

COMPARED TO THE PREVIOUS ONE:

Most of the respondents did not work in any other organization, other than Accenture. Seven respondents

who have worked in other organizations said various factors that weren’t available in their previous

organization and which made them retain in the current organization. The factors are better salary, career

growth, flexibility, incentives, better working conditions, respect, and recognition. The most mentioned

and important factors were better salary and career growth.

1.17 THE WILLINGNESS OF THE RESPONDENTS TO CONTINUE AT THE CURRENT

ORGANIZATION:

60% of the respondents said that they would like to continue in the current organization since they are

getting good pay with incentives and a better scope for career growth. The job satisfaction of this 60 % of

respondents is very high. 40% of the respondents said that their job satisfaction is moderate. If given a
better package, they would like to change the organization. Most of the respondents are very much

satisfied with their current job.

1.18 THE “NOTICE PERIOD” A BARRIER OR AN ADVANTAGE:

60% of the respondents said that the Notice period is a barrier since it wouldn’t help the employees to

switch jobs immediately. 40% of the respondents said that it’s an advantage as it gives time to make

transitions and get settled. The manager said that its an advantage to the organization since it gives time to

motivate and retain the employees and settle everything or to get a new employee for the position.

1.19 SUGGESTIONS FROM THE RESPONDENTS TO REDUCE THE EMPLOYEE

TURNOVER:

The respondents gave various suggestions to reduce employee turnover and to retain the employees. The

respondents said that better pay, treating everyone equally, recognition of the hard work, respecting each

one, and giving career development opportunities would help the organization to reduce its employee

turnover. These are the strategies that would the organization to retain the employees.

ANALYSIS OF RESEARCH PAPERS:

The data collected from the various research papers helped to understand the employee turnover reasons

and problems in depth in an organization. The data collected showed what plays a major role in employee

turnover. The data helped to understand the importance of identifying the reasons behind employee

turnover and forming strategies to reduce employee turnover. The data gave a wide scope on the employee

turnover and its effects on the productivity of the organization. The data in the research papers were

collected from primary resources which gave accurate results and comparison.
RESEARCH GAP:

The above research papers depict the relationship between employee turnover in the organization and

various other common factors like job satisfaction, employer-employee relationship, work quality, career

growth opportunities, work environment, and ethics. The research on employee turnover has been based

on the same reasons. These might be the main and most common reasons behind employee turnover, but

in the fast-growing economy, there are many other reasons which need to be identified and addressed.

Many of the above research papers stated the reasons for the employee turnover and not the

recommendations or strategies. The qualitative data collected from the respondents restricts to a small

group and one single organization. And many factors, strategies, and suggestions given by the respondents

are common and repeated.

RESEARCH METHODOLOGY:

To know the reasons behind the employee turnover in the organizations, literature from various areas of

job satisfaction, ethics at the workplace, relationship management in the organization are reviewed.

Qualitative research methods are used to know the answers to the research questions by collecting the data

from various research papers that are published in the past, in relation to the above fields and employee

turnover and through personal interviews of employees at Accenture. The collected data is analyzed to

know the effect of various factors in the organization on employee turnover. Most of the data collected are

secondary research data and historical in nature. The collected data helped to understand the main reasons

behind the employee turnover and the after-effects of the employee turnover.
FINDINGS:

1. The employees who were emotionally attached to the organization have a high tenure rate in the

organization.

2. Job satisfaction, job commitment, work quality, and relationship management have an inverse

relationship with employee turnover.

3. Strict work ethics, distorted communication, dissatisfactory policies have a direct relationship with

employee turnover.

4. Organizational effectiveness plays an important in reducing employee turnover.

5. The rate of lateness and absenteeism has no impact on employee turnover.

6. The gender of the superiors also has no strong impact.

7. The behavior of the customers in the market also has an indirect effect on employee turnover.

8. Employee morale and fraudulent behavior also impact the turnover rate in organizations.

9. The employees need challenging work and career growth opportunities to retain in the organization.

10. There is a positive relationship between contracting out and employee turnover.

11. Proper guidance and supervision by managers will reduce the employee turnover in the organization.

12. The involuntary turnover does no harm to the organization and its productivity since the company

would ask incompetent employees only to leave the organization.

13. Salaries, incentives, career development opportunities, recognition at the workplace have the major and

direct impact on the decision making of the employees.

14. Recognition, Respect, and Reward are the major factors that would help to retain the employees.

15. Better pay is the main strategy to retain employees.

16. The job-hopping is as same as employee turnover.

17. Spouse relocation has an effect on employee turnover.

RECOMMENDATIONS:

1. Organizations should provide managers who would monitor and guide employee productivity.

2. Organizations should provide career advancement opportunities for employees.

3. The organizations should give challenging work to the employees to improve their job satisfaction.

4. The organizations should develop beneficial policies for both management and employees and should

be communicated clearly.

5. The proper working environment has to be created to improve the morale of the employees.

6. The main reason for the turnover should be identified to reduce it since the reasons differ from one

workplace to another.

7. The attitude and opinion of the employees towards the organizations should be improved.

8. The organization should help the employees to achieve work-life balance.

LIMITATIONS:

1. The study was based only on secondary data and data collected from interviews of a small group of

respondents.

2. The analysis and recommendations are based on past data and opinions of a few employees.

3. The study is limited to employees of a single organization.

4. The responses were repetitive.

5. Most of the respondents didn’t work in any other organization, which narrowed the scope of the study.
CONCLUSION:

Turnover can detrimentally affect an association and its workers if the organization the board permits it.

There are instruments to help with tending to the reasons for turnover. Since turnover is regularly utilized

as a presentation pointer, perhaps the preventive measures ought to be also. It is difficult to take out

turnover out and out; therefore, management must figure out how to manage it and the impacts it has on an

organization. In addition, the executives ought to be better arranged to take the best possible activities after

turnover occasion happens. The factors that affect employee turnover should be recognized on time and

strategies have to be planned based on those factors in order to retain the employees. All endeavors ought

to be centered around keeping up representative job satisfaction and overseeing controllable reasons for

turnover. Taking everything into account, the assessment of the work environment condition is vital and

an ordinary framework to catch and evaluate feedback must be set up so as to keep up a sound workplace.

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