A project report on attrition and retention stretegy

EMPLOYEE ATTRITION AND RETENTION STRATEGIES

INDUSTRY OVERVIEW

INTRODUCTION

Brokerage firms are the business entities that deal with stock trading. India, with an
increasing capital market and a growing number of investors, has a number of brokerage firms.
In Indian retail brokerage industry, the brokerage firms primarily work as agents for buying and
selling of securities like shares, stocks and other financial instruments and earn commission for
each of the transactions. There are plenty of brokerage firms in India.

Stock exchanges to some extent play an important role as indicators, reflecting the
performance of the country‟s economic state of health. Stock market
i s a p l a c e where securities are bought and sold. It is exposed to a high degree of
volatility; prices fluctuate within minutes and are determined by the demand and
supply of stocks at a given time. Stock brokers are the ones who buy and sell securities on
behalf of individuals and institutions for some commission.
The Securities and Exchange Board of India (SEBI) is the authorized body,
which regulates the operations of stock exchanges, banks and other financial institutions. T h e
past performances in the capital markets especially the securities
s c a m b y „Hasrshad Mehta‟ has led to tightening of the operations by SEBI.
International trading and investment exposure has made it imperative
to better o p e r a t i o n a l e f f i c i e n c y . W i t h t h e v i e w t o i m p r o v e , d i s
c i p l i n e a n d b r i n g g r e a t e r transparency in this sector, constant efforts are being
made and to a certain extent improvements have been made

INDUS INSTITUTE OF TECHNOLOGY & ENGINNERING Page 1


HISTORY OF THE STOCK BROKING INDUSTRY

Indian Stock Markets are one of the oldest in Asia. Its history dates back to
nearly200 years ago. The earliest records of security dealings in India are
meagre and obscure. By 1830's business on corporate stocks and shares in Bank and
Cotton presses took place in Bombay. Though the trading list was broader in 1839, there were
only half do z e n b r o k e r s r e c o g n i z e d b y b a n k s a n d m e r c h a n t s d u r i n g 1 8 4 0
and1850.

The1850's witnessed a rapid development of commercial enterprise an
d brokerage business attracted many men into the field and by 1860
t h e n u m b e r o f b r o k e r s increased into 60.In 1860-61 the American Civil War broke out
and cotton supply from United States of Europe was stopped; thus, the 'Share Mania' in India
begun. The number of brokers increased to about 200 to 250.
However, at the end of the American Civil War, in1865, a disastrous
slump began (for example, Bank of Bombay Share which had t ouched Rs 2850
could only be sold at Rs. 87). At the end of the American Civil War, the brokers
who thrived out of Civil War in 1874, found a place in a street (now appropriately called as
Dalal Street) where they would conveniently assemble and transact business. In 1887,
they formally established in Bombay, the "Native Share and Stock Brokers‟ Association"
(which is alternatively known as "The Stock Exchange"). In 1895, the Stock
Exchange acquired a premise in the same street and it was inaugurated in 1899.
Thus, the Stock Exchange at Bombay was consolidated. Thus in the same way, gradually
with the passage of time number of exchanges were increased and at currently it reached
to the figure of 24 stock exchanges.
2



INTRODUCTION OF COMPANY

AnandRathi is a leading full service investment bank founded in 1994 offering a wide
range of financial services and wealth management solutions to institutions, corporations, high–
net worth individuals and families.
The firm has rapidly expanded its footprint to over 350 locations across India with international
presence in Hong Kong, Dubai & London. Founded by Mr. Anand Rathi and Mr. Pradeep Gupta,
the group today employs over 2,500 professionals through out India and its international offices.

The firm‟s philosophy is entirely client centric, with a clear focus on providing long term value
addition to clients, while maintaining the highest standards of excellence, ethics and
professionalism.
The entire firm activities are divided across distinct client groups: Individuals, Private Clients,
Corporate and Institutions. AnandRathi has been named The Best Domestic Private Bank in
India by Asia money in their Fifth Annual Private Banking Poll 2009. The firm has emerged a
winner across all key segments in Asia money‟s largest survey of high net worth individuals in
India.

In year 2007 Citigroup Venture Capital International joined the group as a financial partner.



KEY GROUP COMPNIES

Corporate Structure

Anand Rathi Financial Services Limited

Anand Rathi Anand Rathi AR Venture Funds AR Middle East
Commodities
Wealth Advisors Limited Management DMCC
 Member,
• Private Wealth • Member - NCDEX, • Real Estate Dubai
Management MCX & NMCE Private Equity Gold &
Commodities
Exchange
Anand Rathi Anand Rathi Share Rathi Global Anand Rathi
Advisors and Stock Brokers Finance Insurance Brokers

•Investment Banking • Member - NSE/BSE • NBFC • Insurance
• Depository participant Broking
NSDL/CDSL

PRIVATE & CONFIDENTIAL



VISSION & PHILOSOPHY OF ARG

PHILOSOPHY OF ANANDRATHI
Wealth Management needs to be far more holistic than just investment advisory. We believe that
separation of advisory from product manufacturing is critical to offering a conflict-free and truly
objective advice to our clients. We therefore offer only third-party products and do not
manufacture any in-house products. As an extension to this philosophy, we do not hold any
proprietary stake in the markets.



CORE VALUES OF ARG

 Business ethics
 Customer focus
 Speed and innovation
 Professional pride
 Mutual respect

HR PHILOSOPHY AT ARG

 A strong focus on our human resources operations is closely integrated into the firm's
business strategy.
 At AnandRathi we believe in providing an entrepreneurial environment, within a strong
focus on result orientation
 At each level, AnandRathi employees have a pre-defined career path and hence an
opportunity for continuous growth. They also believe in a complete meritocracy in
deciding on promotions and reward systems
 AR's ability to provide world-class financial services is a result of its talented manpower
pool.



LIST OF NEW INVENTIONS IN SUCCESSIVE YEAR
Year Milestones
1994: Started. activities in consulting and Institutional equity sales with staff of 15
1995: Set up a research desk and empanelled with major institutional investors.
1997: Introduced investment banking businesses Retail brokerage services launched.
1999: Lead managed first IPO and executed first M & A deal
2001: Initiated Wealth Management Services.

2002: Retail business expansion recommences with ownership model.
2003: Wealth Management assets cross Rs1500 crores.Insurance broking launched.
Launch of Wealth Management services in Dubai.
Retail Branch network exceeds 50.

2005: Real Estate Private Equity Fund Launched.
Retail Branch network expands across 200 locations within India.
2006: ANAND RATHI Middle East, WOS acquires membership of Dubai Gold & Commodity
Exchange (DGCX) Ranked amongst South Asia's top 5 wealth managers for the ultra-rich
by Asia Money 2006 poll. Ranked 6th in FY2006 for All India Broker Performance in
equity distribution in the High Net worth
Individuals (HNI) Category. Ranked 9th in the Retail Category having more than 5%
market share. Completes its presence in all States across the country with offices at 300+
locations within India.

2007: Citigroup Venture Capital International picks up 19.9% equity stake
Retail customer base crosses 100 thousand.
Establishes presence in over 350 locations.



ARG’S CORE STRENGTHS

 Breadth of Services

In line with its client-centric philosophy, the firm offers to its clients the entire spectrum of
financial services ranging from brokerage services in equities and commodities, distribution of
mutual funds, IPOs and insurance‟ products, real estate, investment banking, merger and
acquisitions, corporate finance and corporate advisory.
Clients deal with a relationship manager who leverages and brings together the product
specialists from across the firm to create an optimum solution to the client needs.

 Management Team

ANAND RATHI brings together a highly professional core management team that comprises of
individuals with extensive business as well as industry experience.

 In-Depth Research
Our research expertise is at the core of the value proposition that we offer to our clients.
Research teams across the firm continuously track various markets and products. The aim is
however common - to go far deeper than others, to deliver incisive insights and ideas and be
accountable for results.

 Client Testimony
We have been ranked thrice in a row as the #1 Private Bank - Domestic and #2 Private Bank -
Overall BY OUR CLIENTS in an international Private Banking Poll (2009, 2010 & 2011)
conducted by the Asia money publication. Asia money Polls is a unique survey run by Asia's
regional financial publication that surveys the end-user i.e. our clients. It is the leading and
definitive industry survey in the region. We believe that this honor would not have come our way
without the goodwill, support and patronage of our clients and the trust they placed in us and our
advisory.

 Client-centric Ethos
Our belief is that there is a spark in every person that distinguishes him as an individual, and
defines his aspirations and goals. A Wealth Management solution for every individual is
therefore unique. You deserve a customized solution for managing your wealth that is specific to
your needs and not a generic template – based offering.

 Strong Research Capabilities
Our Advisory process is rooted in the strength of our research team, giving us expertise across
various asset classes. Our Economic Research team has been ranked among the top 20 in Asia by
Institutional Investor and is one among the only 2 teams from India to feature in this list.



TOP MANAGEMENT

Mr. Anand Rathi Mr. Pradeep Gupta Mr.Amit Rathi
Founder & Chairman Co-Founder wise Chairman Managing Director

• Gold medalist Chartered • Founder Partner •A rank holder Chartered
Accountant Accountant and MBA from
with over 40 years of •Over 20 years of Leonard N. Stern School of
industry. experience in financial business, New York.
•Formal Executive of Birla and services and capital Market. •Joined the group in 1998 and
the driving force behind setting was instrumental in
up of Birla Group's Cement •Key driver of Retail & establishing the group's
and Financial Services Institutional Equities business private wealth management
business among of the group. and investment banking
others. businesses.
•Instrumental in setting up the • Calling him a „Financial
Online trading system and Guru', theTimes of India
Central Depository Services group, listed Amit in
Ltd in India. 2008 amongst the top 51
young Marwari‟s in India
(under the age of 40)



ARG’S REGINIONAL HUB

Mumbai head office

Central India

Delhi and NCR

Gujarat

Andhra Pradesh

Eastern India

Rajasthan

ROM

Southern India

U.P and Uttaranchal

Dubai

London
Hong Kong



INCOMPARABLE PRODUCTS RANGE UNDER ONE ROOF

1) Equities (NSE Cash & BSE cash)
2) Derivatives (NSE F&O)
3) Commodities
4) Currencies
5) E- Gold (Through National Spot Exchange Limited

6) DP (CDSL / NSDL)
7) Portfolio Management Services (PMS)
8) Mutual Funds
9) Fixed Deposits & NCD‟s
10) Loan against Shares (through External Agency)

11) IPO & IPO Funding
12) Life & Non Life Insurance
13) Premium Security (through Spread Co.
14) Specialized Currency Advisory Services etc.
15) Loans(Auto,Personal,Home&BusinessLoans,through
External Agency)



ARG’S MEMBERSHIP

Equity:

 National stock exchange (NSE)
 Bombay stock exchange (BSE)

Commodities:

 Multi commodities exchange (MCX)
 National commodities exchange (NCDEX)

Currency:

 National stock exchange (NSE)
 MCX-SX (multi commodities exchange- currency)

E- Gold:

 National spot Exchange Limited (NSEL)

Depository participation:

 Central depository Service limited (CDSL)
 National securities Depository limited (NSDL)



SECTORS SERVED

Industrial and Capital Goods
Business Services
Technology
Telecom
Media
Retail
Real Estate
Consumer Services

Natural Resources
Financial Institutions
Professional Services
Education
Clean Energy
Healthcare
Infrastructure
Transportation and Logistics



AWARDS & RECOGNITION

• Ranked No.1 Domestic Banker 2009, 2010 & 2011 (Wealth
Management Company) by Asia Money Poll.
• Ms. Priti Gupta got “Women Leader of the year Award" in 2010 in
Financial Category by NDTV Profit.

• Mr. D. D. Sharma awarded as Best Analyst 2010 by Zee Business.
• “Best Contribution in Investor Education in Currency and
Category Enhancement of the Year” in Bloomberg UTV Financial
Leadership Awards.

• Mr. Anand Rathi awarded by Zee Business for his contribution
towards India‟s Capital market in January,2010.
• Private Wealth Team was awarded for generating the „Highest
AUM growth in 2010‟ for Kotak MF (by Mr. Uday Kotak himself)

ARG’S CURRENT OPERATION

 No(s) Of Clients : 350000+
 No(s) Of Direct Employee : 2500+
 No(s) Of Registered Sub-brokers : 1000+
 Office Presence : 1200+
 Location Presence : 320+
 International Presence : 3



LEVEL OF HIERARCHY AT ANANDRATHI

Chairman

MD

RD

Commodity Head Cross Product Head HNI HR

RM Dealer FP Dealer RM Dealer



COMPITIORS OF ANANDRATHI

SR.NO. COMPANY NAME
1 India Infoline

2 ICICI Direct

3 Share khan
4 India bulls Securities
5 Kotak Securities
6 Motilal Oswal Securities
7 HDFC Securities

8 Angel Trade

9 SBICAP Securities

10 Reliance Money



CHAPTER-2
EMPLOYEE
ATTRITION AND
RETENTION
STRATEGIES



INTRODUCTION TO TOPIC
EMPLOYEE ATTRITION AND EMPLOYEE RETENTION

In the best of worlds, employees would love their jobs, like their co-workers, 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.

Specifically at Brokerage industry normally No of employees leaves organization is always high.
so For HR manger it is a big challenge to maintain the attrition rate of their organization. HR
Manager is not only required to fulfil this Responsibility, but also find the right kind of people
who can keep pace with the unique work patterns in industry. The toughest concern for an HR
Manager is However the Attrition Rate.

MEANING OF ATTRITION:
“The wearing down of an Adversary, making him weaker by repeal attacking them or wearing
down of resources i.e. the process of reducing the number of people who are employed by an
organization by not replacing people who leave the job.”

WHAT IS EMLOYEE ATTRITION:“A reduction in number of employees
through retirement, resignation or death.”

The action or process of gradually reducing the strength or effectiveness of someone or
something through sustained attack or pressure. The gradual reduction of employees leaving and
not being replaced rather than by their being laid off.



WHAT IS ATTRITION RATE: “The rate of shrinkage in size or number.”
The rate of shrinkage in size or number of employees is known as Attrition Rate. It is usually
expressed in percentage. An Attrition Rate also known as churn rate, can be a measure of two
things. It can be a measure of how many people leave over a certain period of time or how many
employees leave over a certain period of time.

Employee attrition is a serious issue, especially in today‟s knowledge-driven marketplace
where employees are the most important human capital assets; attrition impacts an organization‟s
competitive advantage.

CYCLE OF ATTRITION

Decresed
Productivity

Drivers
Greater
of
Attrition
attrition

Cost Incresed
Reduction/ cost/Redus
Austerity ed
Revenue



 Attrition brings decreased Productivity.
 People leave causing others to work harder.
 This contributes to more Attrition, which contributes to increased costs and
lowers Revenue.
 This forces additional cost reduction and austerity measures.
 This in turn makes working more difficult, causing the best performers with the
most external opportunities to leave

COST OF ATTRITION

Cost of advertising for new positions
the cost and time involved in interviews and background checks,
costs associated with search firms or placement agencies,
relocation costs of new employees
Training and orientation costs

The tangible costs of employee attrition would be the cost of training new employees,
the recruitment and selection costs, adjustment time, possible product and/or service
quality problems, costs of agency workers/temporary staff, the cost of loss productivity,
the cost of lost knowledge and the cost of the position remaining vacant till a suitable
replacement is found.
The intangible costs, which may be even more significant than the tangibles, involve the
effect of turnover on organizational culture, employee morale, social capital or
organizational memory. All these costs would significantly take away the profitability
and the competitive advantage of the firm.



REASONS FOR ATTRITION

I. Deliberately Ruining the Relationship
II. Persistently Annoying the Employee.
III. Compelling Offer
IV. Expectation is Not Shaped Properly
V. Life cycle Changes Not Managed
VI. Developmental Needs Beyond the Functional Are Not Met
VII. Wrong Hire

THE BRIGHTER SIDE OF ATTRITION:

Some employee turnover positively benefits organizations. This happens whenever a
poor performer is replaced by a more effective employee, and can happen when a senior
retirement allows the promotion or acquisition of welcome 'fresh blood'. Moderate levels of staff
turnover can also help to reduce staff costs in organizations where business levels are
unpredictable month on month. In such situations when business is slack it is straightforward to
hold off filling recently created vacancies for some weeks.



DISADVANTAGES OF ATTRITION

1. What’s Your Top Performing Employee Worth to You?
Your best employees are invaluable – it's as simple as that! For every penny they generate in
sales, contract negotiation, savings, or whatever it is that they do, there's an untold wealth being
tapped by their skills as ambassadors for your company. The goodwill they engender, the
relationships they forge, can be worth more than you can calculate in profit alone.

2. So What Do You Lose When One Of Your Top Performers Quits?

When that time comes, the cost can be just as hard to calculate. Of course, you'll lose the profit
they've been creating. But what about all that goodwill? What about the relationships? What
about the positive effect they've been having on all those around them – inspiring greater
performance from their colleagues as others aspire to be just like them? You need to know that
when you recruit that special person, that you have the systems in place to retain them, and
allow them to blossom with you – not force them to take your training and investment and then
look for a new employer whom they feel will really "appreciate" them!

3. Our Employee Engagement Barometer Can Put An End To The Heartache Of
Watching Your Top Guns Heading For The Door.
The Employee Engagement Barometer TM is essentially an "off-the-shelf" solution, which can
be scaled and adapted to perfectly suit your needs, for a fraction of the cost of recruiting even a
single candidate. Beginning with an initial consultation, we'll work together to assess your
employee attrition rate, determine the scope of the project and agree the desired outcomes.
You'll then have custom made post-induction and exit interviews crafted to get to the very heart
of your business. Once the structure is in place, you can hand over the reins to us – freeing up
your time and allowing you to get on with what you do best!



EMPLOYEE RETENTION

WHAT IS EMPLOYEE RETENTION?
Employee retention refers to the various policies and practices which let the employees
stick to an organization for a longer period of time.

Every organization invests time and money to groom a new joined, make him a corporate ready
material and bring him at par with the existing employees. The organization is completely at loss
when the employees leave their job once they are fully trained. Employee retention takes into
account the various measures taken so that an individual stays in an organization for the
maximum period of time.

It is a process in which the employees are encouraged to remain with the organization for
the maximum period of time or until the completion of the project. Employee retention is
beneficial for the organization as well as the employee.

WHAT IS RETENTION ALL ABOUT?

R- REMUNERATE COMPETITIVELY
E-ENCOURAGEMENT AND EXPECTATION
T-TRAINING AND DEVELOPMENT
A-ANNUAL REVIEW CYCLES
I- INFORM AND INVOLVE
N- NURTURE



NEED & IMPORTANCE OF EMPLOYEE RETENTION

Let us understand why retaining a valuable employee is essential for an organization.
 Hiring is not an easy process:
 An organization invests time and money in grooming an individual and makes him ready to
work and understand the corporate culture:
 When an individual resigns from his present organization, it is more likely that he would join
the competitors:
 The employees working for a longer period of time are more familiar with the company‟s
policies, guidelines and thus they adjust better:
 It has been observed that individuals sticking to an organization for a longer span are more
loyal towards the management and the organization
 It is essential for the organization to retain the valuable employees having high potential.



KEY AREAS IN EMPLOYEE RETENTION

COMPENSATION

SUPPORT ENVIRONMENT

RELATIONSHIP GROWTH

1) COMPENSATION:
2)
It includes

* Basic wage

* House rent allowance

* Dearness allowance

* City compensatory allowance.



2. ENVIRONMENT:
Types of environment the employee needs in an organization:

I. Learning environment:
II. Supportive environment.
III. Work environment.

3. GROWTH:
Growth and Career Growth and development are the integral part of every individual‟s
career. If an employee can not foresee his path of career development in his current
organization, there are chances that he‟ll leave the organization as soon as he gets an
opportunity. The important factors in employee growth that an employee looks for himself
are:

•Work profile

•Personal growth and dreams

•Training and development:

4. RELATIONSHIP

 Relationship with the immediate manager:
 Relationship with colleagues
 Induce loyalty

5. SUPPORT:

Employers can support their employees in a number of ways as follows:

•By providing feedback
•By giving recognition and rewards
•By counselling them
•By providing emotional support



COMMON EMPLOYEE RETENTION STRATEGIES

The basic practices which should be kept in mind in the employee retention strategies are:
1. Hire the right people in the first place.
2. Empower the employees: Give the employees the authority to get things done.
3. Make employees realize that they are the most valuable asset of the organization.
4. Have faith in them, trust and respect them.
5. Provide them information and knowledge.
6. Keep providing them feedback on their performance.
7. Recognize and appreciate their achievements.
8. Keep their morale high.
9. Create an environment where the employees want to work and have fun.
A. These practices can be categorized in 3 levels:

* Low

* medium

* high level



ROLE OF HR IN EMPLOYEE RETENTION

The Human Resource team plays an important role in employee retention.
Let us find out their role in the same:

 Whenever an employee resigns from his current assignments, it is the
responsibility of the HR to intervene immediately to find out the reasons which
prompted the employee to resign
 It is the duty of the HR to sit with the employee and discuss the various issues
face to face. Understand his problems and listen to his side of the story as well..
 The HR person must ensure that he is recruiting the right employee who actually
fits into the role. A right person doing the wrong job would never find his job
interesting and certainly look for a change.
 The human resource department must conduct motivational activities at the
workplace. Organize various internal as well as external trainings which help the
employees to learn something extra apart from their routine work.
 The HR must launch various incentive schemes for the top performers to motivate
them. This way the employees feel important for the organization and strive hard
to perform even better the next time.
 Performance reviews are a must. The HR along with the respective team leaders
must monitor their team member‟s performance to ensure whether they are
enjoying the work or not.

The HR professional must try his level best to motivate the employees,
make them feel special in the organization so that they do not look for a change.



CHALLENGES IN EMPLOYEE RETENTION

 Monetary dissatisfaction is one of the major reasons for an employee to look for a
change. Retention becomes a problem when an employee quotes an exceptionally
high figure beyond the budget of the organization and is just not willing to
compromise.
 In the current scenario, where there is no dearth of opportunities, stopping people
to look for a change is a big challenge. Employees become greedy for money and
position and thus look forward to changing the present job and join the
competitors..
 Individuals speak all kind of lies during interviews to get a job. It is only later do
people realize that there has been a mismatch and thus look for a change.
Problems arise whenever a right person is into a wrong profile. The human
resource department should be very careful while recruiting new employees.
 Some individuals have a tendency to get bored in a short span of time. They might
find a job really interesting in the beginning but soon find it monotonous and look
for a change. The management finds it difficult to convince the employees in such
cases.
 Unrealistic expectations from the job also lead to employees looking for a change.
An individual must not look for a change due to small issues. One needs time to
make his presence feel at the organization and must try his level best to stick to it
for a good amount of time and ignore petty issues.



HOW TO RETAIN THE KEY TELANT

 Work should never become monotonous and must offer a new learning each day.
 Every individual should enjoy privacy at the workplace

 Every employee should be treated as one irrespective of his designation.

 The management must formulate employee friendly policies.

 Incentives, cash prizes, trophies, perks should be given to deserving employees to
motivate them to perform up to the mark every time.

 The performers must be made to participate in the decision making process.



CHAPTER-3
RESEARCH
METHODOLOGY



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 steps that
are generally adopted by a researcher in studying his research problem along with the logic
behind them.

PROBLEM STATEMENT:- “ A STUDY ON ATTRITION AND
RETENTION STRATEGY AT ANANDRATHI”.

SIGNIFICANCE OF THE STUDY

 The significance of the study lies in the detonation of the BROKERAGE
industry in the recent years.
 Where on one hand the sector is growing with leaps and bounds, on the other the
employee turnover has been alarmingly high, thus costing a lot to the company.
 The study is an attempt to assess the patterns of attrition in ANANDRATHI and
analyze the Key factors of attrition rate and retain the employees.



LITERATURE REVIEW

Employee attrition, a big cause for concern for firms, ranges between 15 per cent
and 20 per cent. A company is not hurt because a certain person has left. The company is
hurt because he/she takes away certain knowledge, and there is no ready replacement in the
market. However, when jobs were scarce, the technology change was less rapid, voluntary
attrition was small and companies managed it. However, with technology changing rapidly and
manpower costs increasing, attrition is high and hurts badly.

Many research and articles have been made on factors affecting attrition and retention strategy.
According to Employee vulnerable study by NFO India 83% of employees are likely to seek new
employment as the economy booms.48% of managers are likely to seek new employment with
the improving economy. 56% of HR professionals indicated it is likely that voluntary turnover
would rise due to the improving economoy.

According to Phillips and Connell (2003:7), major changes have occurred in organizations
both internally and externally – making the employee retention issue more critical today than in
previous years. Unfortunately, these changes will only worsen the crisis in the future.

The following are the external drivers of retention:

Economic growth, slower growth of job seekers, Unemployment rate at low levels, Shortage of
special skill, Entrepreneurship, Job changes for more favorable climate.

The following internal drivers, as highlighted by Phillips and Connell (2003:10) have a
tremendous impact on turnover:

Lack of organizational loyalty, Desire for challenging and useful work, Need for autonomy,
flexibility, and independence, Need for performance-based rewards, Need for recognition of
participation, accomplishments and contributions, Desire for all types of benefits, Career growth,
need for caring supportive environment, need for work/life balance.

Line managers have a key role in the employee retention process. As the person who has the
most direct and immediate supervisory contact with the employee, the line manager is a critical



player in the implementation of a job retention strategy (Thornton, 1998; Côte et al. 2000;
Krause et al. 2001;Unger et al. 2002).

Livermore et al. (2001), note that the behaviors of immediate supervisors and especially
their understanding of disability management and workplace accommodations plays a major role
in supporting employees. When supervisors have a poor understanding in these areas,
employment retention processes often fail.

In a study of 31,200 Boeing employees, Colledge & Johnson (2000) found a strong correlation
between the incidence of lost-time soft tissue injuries and a poor supervisor relationship, while
Foreman et al. (2006) identify low or inadequate support from supervisors and colleagues that
have a negative impact on job retention/return-to-work outcomes.

Cunningham et al. (2003) recommend that the content of training delivered to managers should
include the requirements of employment equality legislation and the possible implications of an
employer failing to take appropriate action to facilitate an employee‟s retention.

Horwitz (2008:1) points out that in Asia, China and Japan, the problem of lack of skilled
workers is seen to be the biggest threat organisations will face in the future. This places more
pressure on South African organisations to compete for skilled labour in the global labour pool.
In South Africa, according to Horwitz (2008:1), organisations are failing to retain workers,
owing to the fact that employees quit their jobs because of lack of career advancement and
ineffective utilization of their knowledge and skills.

Attrition in India today is alarmingly high. The striking aspect is the insights different
surveys and studies throw. According to Mercer‟s study(1) (2011), almost 54% of Indians are
seriously considering leaving their organization. This may not be directly connected to
„satisfaction with their organization‟; 66% of employees aged <25 are seriously considering
leaving, but lead all age groups in satisfaction with their organization at 82%. The traditional
understanding always points towards satisfaction as the reason of attrition – if satisfaction is
more, attrition should be less.



OBJECTIVE OF THE STUDY

 To understand the factors central to attrition.
 To calculate and analyse the attrition rate of Anandrathi..
 To suggest the activities that they might undertake in order to decrease attrition rate
& retain employees.
 To take efforts and measures to improve the situation and conditions of employment
for retaining key talent.
 To understand the rules and policies followed by the organization of Exit interview.

ASSUMPTIONS

The assumptions made during the course of this project are as follows:

 The information provided by the person contacted is not having any kind of bias.
 The sample taken will represent the fair idea about study.
 It is believed that the employees will provide the real and authentic information.



RESEARCH DESIGN

Research : Exploratory

Data Source : Primary Data

Research Technique : Telephonic Interview

(The list of questions used for survey is shown in Annexure and the type of questions is open
ended.)



SAMPLING PLAN:

Sampling Unit:
The sampling unit mainly consists of employees who had left Anandrathi in 2010-11 from
overall Gujarat.

Sample Size:
We have done telephonic survey of about 150 employees out of which 120 have answered.
So the sample size taken for analysis is 120.

SOURCES OF DATA:

Primary Data:
Primary data has been collected through unstructured Questions having an informal talk with
the employees who had left Anandrathi through telephone.



LIMITATION OF STUDY

T LIMITATIONS:IONS:ATIONS:
There are also some limitations of this project, which must be kept in mind, they are as
follows:

Time was the most critical limiting factor.
The responses from the employees could be casual in nature. This may be due to lack
of interest or time on their part.
Sample size taken is of 120, due to which we may not get the proper results.
The method of study was the unstructured questions by telephonic survey which has
its own limitations.



CHAPTER-4
INFERENCES
DRAWNAND
ANALYSIS



ATTRITION RATE OF ANANDRATHI

(The formula and correct logic behind calculation of ATTRITION RATE)

((No. Of attritions x 100) / (Actual Employees + New Joined)) /100

Attrition rate of 2010:

Actual Employees No. Of people left No. Of Joined Total Employees

(Opening BAL) (Attritions) (Current Headcount)

180 75 30 135

So according to the formula: ((75 x 100) / (180 + 30)) / 100

Which comes to 0.3571 i.e. 36%

So Attrition rate in 2010 is 36%

Attrition rate of 2011:

Actual Employees No. Of people left No. Of Joined Total Employees

(Opening BAL) (Attritions) (Current Headcount)

135 44 23 114

So according to the formula: ((44 x 100) / (135+23)) / 100

Which comes to 0.2784 i.e. 28%

So Attrition rate in 2011 is 28%



ATTRITON RATE

28%

36% 2010
2011

INTERPRETATION OF ABOVE GRAPH:
 From the above graph we can analyse that the attrition rate in 2010 was 36% whereas in
2011 it was 28%.
 The attrition rate in 2011 has decreased by 8% which is a good thing for Anandrathi.



ANALYSIS DONE DURING OUR TRAINING

We have done analysis of employee attrition at Anandrathi for GUJARAT. There are total 7
branches currently. But we have taken the 2010 and 2011 attrition data at that time there were 13
branches and the no. of employees left the company according to the location are described
below:

BRANCHES NUMBER OF
EMPLOYEES LEFT

Adajan 3

Anand 8

C.G.Road 12

Chandkheda 3

Jetalpur 29

Sattelite 20

Surat 24

Surat-Ringroad 7

Vadodara-1 2

Vadodara-Commodities 5

Vadodara-Retail 4

Varachha 2

Vyara 1



TELEPHONIC SURVEY

TELEPHONIC SURVEY:
We have done telephonic survey of total 150 employees out of which 120 have shared the
TELEPHONIC SURVEY:
reasons for their resignation. Their distribution is as shown below.

SUB-DEPARTMENT NO. OF
EMPLOYEES
Client Acquisition 4
Sales 40
Dealing 24

Offline Broking 6
Cross Products 27

Franchisee Network 7
Online Services 8
Demat 2
Operation & Support 2



GRAPHICAL REPRESENTATION OF TELEPHONIC SURVEY
40 40
35
30
25 24 27
20
15
10 4 6
7 8
5
0 3 NO. OF EMPLOYEES LEFT
2

INTERPRETATION OF ABOVE GRAPH:
 From the above graph we can analyse that maximum number of employees of Sales
Department and Cross product department (have to sell third party product)leave the
company and go for seeking better opportunity .
 While least number of employees of Operation & support and de-mat department leave
the job.



REASONS FOR ATTRITION OF EMPLOYEES AND THE
NUMBER OF EMPLOYEES:

REASONS NUMBER OF EMPLOYEES
Stress from overwork and work-life imbalance 20

Better Salary And Opportunity 49
Too few growth and advancement opportunities 19

Own Business 21
Problem With The Company Culture And Supervisor 10
Behaviour

GRAPHICAL ANALYSIS OF THE SURVEY
49
50
45
40
35
30 20 21
25 19
20
15 10 N0. of Employees
10
5
0
Stress Better Too few Own Problem
from Salary- growth - Business With The
overwork- Bank
Culture-



INTERPRETATION OF THE GRAPH:

 From the above graphical analysis we can conclude that the maximum number of
employees leave the Company for better salary and opportunity.
 The next most common reason is few growth opportunities and starting of their own
business.

10
20
Stress from overwork and work-
life imbalance
21 Better Salary And Opportunity

Too few growth and
advancement opportunities
Own Business
19
49 Problem With The Company
Culture-



RETENTION STRATEGIES USED AT ANAND RATHI

 Gives Warm welcome to the new joined.
 Provide them full information and knowledge about their products and Services.
 Recognize and appreciate their achievements by giving Rewards ( gifts, certificates,
monetary and non monetary rewards).
 Gives an environment where the employees want to work and can have fun. During my 6
weeks training, I have noticed fun at work atmosphere at Anand Rathi.
 Provides training and development and personal growth opportunities to the employees.
 Intranet (intrarathi software) and internet is used as they provide full accesses to the
information Newsletters, notice boards, etc.
 Celebrate birthday and anniversary of employees. Sends them a birth card for warm
wishes.
 Med claim policy, travel expense policy, mobile expense policy, accidental policy, laptop
policy are used for higher job satisfaction as well as to retain the employee.
 Employee referral policy is also used in which they give incentive from 5000 to 25000
according to the post.
 For retaining women employees they use special grievance policy.



CHAPTER-5
FINDINGS &
SUGGESTION



FINDINGS
TELEPHONIC SURVEY:

TELEPHONIC SURVEY:
 From the above analysis of attrition rate in Anandrathi we can conclude that the
employees are facing different problems due to which they resign or leave their
supervisor or company.
 The attrition rate in 2010 was 36% that is decreased in 2011 and reached to 28% which
is a good thing for anandrathi.
 From the above study we can note that 41.83% of the employees resign for better salary
and opportunity.
 Highest no. Of employees left are from sales department.
 The other most serious problems that arises is few growth opportunity is 15.83% and
leaving the company for starting their own business is 15%.
 As the company‟s structure is flat and work atmosphere is good the least number of
employees left because of company culture and behaviour of the supervisor.



SUGGESTION
TELEPHONIC SURVEY:
 As maximum number of employees has left the company for better salary so
company should TELEPHONIC SURVEY: time interval.
give hike in their salary at regular
 As per their salary the work load is too much for employees so the company
should decrease the work load for employees.
 As sitting arrangement is very congested at anandrathi so company should
increase their space of working so the employees can feel relaxed and can enjoy
work.
 The company should increase their staff of HR department in whole Gujarat for
effective working as well as for retaining the key talents.



CHAPTER-6
CONCLUSIONS



CONCLUSION

TELEPHONIC SURVEY:

 The study helped in TELEPHONIC SURVEY:
understanding the relative important factors responsible for
employee attrition.
 Our study helped in finding out the most critical reason of attrition at anandrathi that is
salary better opportunity.
 From our study we also found that maximum numbers of employees who leave the
company were from sales department.
 We also learned that though the salary might be high, employee would be willing to
change their job for better development and opportunity as the second most critical
reason is low growth and advancement opportunity.
 Anandrathi can retain employees by dealing with the most two critical factors behind
attrition.
 Apart from the project there was also lots of things we learned at ananrathi which
enhance our HR skills and gain a better understanding of functioning of HR.(like using
the job portals like naukri.com, times job.com for job searching, job posting, mass
mailing, Taking interviews, how to evaluate the candidates ,orientation, making offer
letters etc.)



BIBLIOGRAPHY
TELEPHONIC SURVEY:

TELEPHONIC SURVEY:

1) Human resource management C.B.Memoria

2) Business Reserch methods Donald r copper, Pamela s schindler

3) Newspaper

WEBLIOGRAPHY:
(1) http://www.rathi.com
(2) http://www.google.co.in/images?hl=en&source=imghp&q=electrotherm&gbv=2&aq=f&aqi=&a
ql=&oq=&gs_rfai=
(3) www.wikipedia.com
(4) http://www.managementstudyguide.com/employee-retention.htm



CHAPTER-7
ANNEXURE



ANNEXURE
TELEPHONIC SURVEY:

This list of the questions listed TELEPHONIC by the company for telephonic interview:
below is suggested SURVEY:
1. Name of the employee:
2. Branch name in which they were working:
3. supervisor‟s name in which they were working:
4. At which post they are working in Anandrathi?
5. What salary they were offered in Anandrathi?
6. What are the reasons for leaving the bank?
7. Currently where they are working?
8. At which post and salary?



EXIT INTERVIEW
Name: Employee Code:
Designation: Department:
Reporting Authority: Department Head:

(1 being lowest and 4 being highest)

THE JOB 1 2 3 4
1. The Opportunity to use your abilities and skills.    
2. Recognition for the work you did.    
3. Duties and Responsibilities were in Line with IPMs set.    
4. The opportunity to do challenging and interesting work.    
COMMUNICATION, POLICIES & PRACTICES 1 2 3 4
1. The opportunity to talk with your Superior on a regular basis.    
2. Information received on Company’s policies, programs and   
projects through IWIN and your Superior.
3. Performance Appraisal, HR Policies and setting of IPM.    
WORKING CONDITIONS AND BENEFITS 1 2 3 4
1. Physical working conditions.    
2. Opportunities to participate in decision-making.    
3. Reception of new and original ideas.    
4. Medical Benefits.    
5. The Company as a place to work.   



WHAT DID YOU THINK OF YOUR SUPERIOR ON THE FOLLOWING POINTS?
YES NO
1. was consistently fair  
2. Provided recognition  
3. Resolved complaints  
4. was sensitive to employees needs  
5. Provided feedback on performance  
6. was receptive to open communication  
WHAT WERE YOUR MOST IMPORTANT REASONS FOR LEAVING?
Primary Reasons (Compulsory) Secondary Reasons
Better Pay Better Pay
Better Prospect Better Prospect
Dissatisfaction with Job Dissatisfaction with Job
Higher Study Higher Study
Medical Problem Medical Problem
Personal Reason Personal Reason
Relocation Relocation
Personal Conflict with Superior Personal Conflict with Superior



EXIT INTERVIEW
When did you start thinking of resigning from the Job?

One thing/ policy you like about Anandrathi?

One thing/ policy you would like to change in I Anandrathi?

Would you recommend Anandrathi to a friend as a good place to work for? If No, why not?

Would you consider working for Anandrathi in future? If No, why not?

If we could change some things to get you back, what would they be?

Signature of Employee Date

Signature of Interviewer Place

Please give your personal email id and contact number for future communication.

E-mail: Tel/ Mobile:



EXIT FORM
Emp. Name: _____________________________________ Emp. Code: ____________________
Date of Joining: _____/______/___________ Date of leaving: _____/______/___________
Notice period served(Y/N no of days): ________Notice period waived: _________________
Leave taken: _________________ Accrued: _________________

Dues Amount(Rs) Advances Amount(Rs) Net Payable
(Amount Rs)
Salary Loan
Reimbursement IOU taken
Other Others
Total Total

Amt Received in full settlement (Rs) By Chq No. _____________
Drawn on Bank ______________________________________ Dated _________________
I hereby declare that I am resigning from the company and above information is true and
correct. I shall be personally responsible for any false information. I also undertake to inform
credit card, bank and cell phone Company for discontinuation of my services
And also undertake that payment of these outstanding will be my personal responsibility.
I further declare that I have not violated any confidentiality conditions and shall comply with
them even after leaving the company. I confirm that I do not have any document or information
related to the company’s business, customer’s etc. I also confirm that all my dues have been
fully settled and there is no outstanding payable from the company to me.

_________________________________
Signature of the Department Head Signature of the Employee



EXIT FORM
For Office Use Only
S.No Particulars Applicable Responsibilities Remarks
(Yes/No) Name Signature

1 Exit Interview
2 Job responsibilities handed
over to
3 HR related formalities

4 Company assets/documents
returned to
5 Mail ID disconnected/ Web ID
disconnected
6 Server/Other confidential
Password Changed
7 IOU/Loan Cleared / Corp.
credit card
8 ID Card Returned
9 Sim Card / Data Card
10 Handover of office
keys/floppies etc
11 Desktop
12 Printer
13 Any Other

Signature of the Dept Head ______________ Signature of the HR Dep_______________


A project report on attrition and retention stretegy

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