A project report on attrition and retention stretegy

EMPLOYEE ATTRITION AND RETENTION STRATEGIES

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

p e r f o r m a n c e o f t h e c o u n t r y ’ s e c o n o m i c s t a t e o f h e a l t h . S t o c k m a r k e t

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

p a s t p e r f o r m a n c e s i n t h e c a p i t a l m a r k e t s e s p e c i a l l y t h e s e c u r i t i e s

s c a m b y ‘Hasrshad Mehta’ has led to tightening of the operations by SEBI.

I n t e r n a t i o n a l t r a d i n g a n d i n v e s t m e n t e x p o s u r e h a s m a d e i t i m p e r a t i v e

t o b e t t e r 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

INDUSTRY OVERVIEW


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 a n d 1 8 5 0 .

T h e 1 8 5 0 ' s w i t n e s s e d a r a p i d d e v e l o p m e n t o f c o m m e r c i a l e n t e r p r i s e

a n d b r o k e r a g e b u s i n e s s a t t r a c t e d m a n y m e n i n t o t h e f i e l d a n d b y 1 8 6 0

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 touched 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



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.


INTRODUCTION OF COMPANY



KEY GROUP COMPNIES

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.



Business ethics

Customer focus

Speed and innovation

Professional pride

Mutual respect

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.


CORE VALUES OF ARG

HR PHILOSOPHY AT ARG

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 worthIndividuals (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 stakeRetail 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 ResearchOur 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 TestimonyWe 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 EthosOur 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 CapabilitiesOur 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.

INDUS INSTITUTE OF TECHNOLOGY & ENGINNERING Page 8TOP MANAGEMENT


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

• Gold medalist Chartered Accountant with over 40 years of industry.•Formal Executive of Birla and the driving force behind setting up of Birla Group's Cement and Financial Services business among others.•Instrumental in setting up the Online trading system and Central Depository Services Ltd in India.

• Founder Partner

•Over 20 years of experience in financial services and capital Market.

•Key driver of Retail & Institutional Equities business of the group.

•A rank holder Chartered Accountant and MBA from Leonard N. Stern School of business, New York.•Joined the group in 1998 and was instrumental in establishing the group's private wealth management and investment banking businesses. • Calling him a ‘Financial Guru', theTimes of India group, listed Amit in 2008 amongst the top 51 young Marwari’s in India (under the age of 40)




Mumbai head office

Central India

Delhi and NCR

Gujarat

Andhra Pradesh

Eastern India

Rajasthan

ROM

Southern India

U.P and Uttaranchal

Hong Kong

Dubai

London

ARG’S REGINIONAL HUB

INCOMPARABLE PRODUCTS RANGE UNDER ONE ROOF



6) Equities (NSE Cash & BSE cash) 7) Derivatives (NSE F&O) 8) Commodities 9) Currencies 10) E- Gold (Through National Spot Exchange Limited

11) DP (CDSL / NSDL) 12) Portfolio Management Services (PMS) 13) Mutual Funds 14) Fixed Deposits & NCD’s 15) Loan against Shares (through External Agency)

1) IPO & IPO Funding 2) Life & Non Life Insurance 3) Premium Security (through Spread Co.4) Specialized Currency Advisory Services etc. 5) Loans(Auto,Personal,Home&BusinessLoans,through

External Agency)


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)


ARG’S MEMBERSHIP

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


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


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

LEVEL OF HIERARCHY AT ANANDRATHI



Chairman

MD

RD

Commodity Head

Cross Product Head

HRHNI

DealerRM 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.

Attrition brings decreased Productivity. People leave causing others to work harder.


DecresedProductivity

GreaterAttrition

Incresed cost/Redused

Revenue

Cost Reduction/Austerity

Driversof

attrition

CYCLE OF ATTRITION


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 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.


COST OF 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.


REASONS FOR ATTRITION

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!



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


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.


NEED & IMPORTANCE OF EMPLOYEE RETENTION

KEY AREAS IN EMPLOYEE RETENTION


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:


ENVIRONMENT

GROWTHRELATIONSHIP

SUPPORT


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



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


COMMON EMPLOYEE RETENTION STRATEGIES



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-3RESEARCH

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”.

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

SIGNIFICANCE OF THE STUDY


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.



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.

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.


OBJECTIVE OF THE STUDY

ASSUMPTIONS

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.



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.


LIMITATION OF STUDY


CHAPTER-4INFERENCES DRAWNAND ANALYSIS



(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:


ATTRITION RATE OF ANANDRATHI

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%

36%

28%

ATTRITON RATE

20102011

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.



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


ANALYSIS DONE DURING OUR TRAINING


Vadodara-Retail 4

Varachha 2

Vyara 1

We have done telephonic survey of total 150 employees out of which 120 have shared the

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


TELEPHONIC SURVEY


Client A

cquisiti

onSa

les

Dealin

g

Offline Bro

king

Cross

Products

Franch

isee N

etwork

Online S

ervice

s

Demat

Operation &

Support

05

10152025303540

4

40

24

6

27

7 8

32

GRAPHICAL REPRESENTATION OF TELEPHONIC SURVEY

NO. OF EMPLOYEES LEFT

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 EMPLOYEESStress 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 Behaviour

10

Stress

from ove

rwork-

Better

Salar

y-

Too fe

w growth -

Own Business

Problem

With

The B

ank C

ulture-

0

10

20

30

40

50

20

49

19 21

10

GRAPHICAL ANALYSIS OF THE SURVEY

N0. of Employees



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.

20

49

19

21

10

Stress from overwork and work-life imbalanceBetter Salary And OpportunityToo few growth and ad-vancement opportunitiesOwn BusinessProblem With The Company Culture-



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.


RETENTION STRATEGIES USED AT ANAND RATHI


CHAPTER-5FINDINGS &

SUGGESTION



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.


FINDINGS


As maximum number of employees has left the company for better salary so

company should give hike in their salary at regular time interval.

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.


SUGGESTION


CHAPTER-6

CONCLUSIONS



The study helped in 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.)


CONCLUSION


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=&aql=&oq=&gs_rfai= (3) www.wikipedia.com (4) http://www.managementstudyguide.com/employee-retention.htm


BIBLIOGRAPHY

http://www.managementstudyguide.com/employee-retention.htm

http://www.wikipedia.com/

http://www.google.co.in/images?hl=en&source=imghp&q=electrotherm&gbv=2&aq=f&aqi=&aql=&oq=&gs_rfai

http://www.google.co.in/images?hl=en&source=imghp&q=electrotherm&gbv=2&aq=f&aqi=&aql=&oq=&gs_rfai


CHAPTER-7ANNEXURE



This list of the questions listed below is suggested by the company for telephonic interview:

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?


ANNEXURE


EXIT INTERVIEWName: 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 INTERVIEWWhen 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 FORMEmp. 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 LoanReimbursement IOU takenOther OthersTotal 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 FORMFor Office Use Only

S.No Particulars Applicable(Yes/No)

Responsibilities RemarksName 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_______________
