A PROJECT WORK FOR FINDING ATTRITION LEVEL IN MICROFINANCE INDIUSTRY

BUILDING AN ATTRITION ANALYSIS MODEL

Presented By: Ananya Ghosh

Dayanand Keshri

PLAN OF PRESENTATION

Introduction of the study Objective of the study Survey methodology Survey and Field work Analysis and conclusion Findings Suggestions

INTRODUCTION

• Now a days Micro Finance is a major sector but still now unorganized.

• Field officers are main Intangible assets to Micro Finance sector.

• If one leave job then it effect whole business.

• But Why they leave job?

• To find out actual reason we have done this project

PROCESS OF WORK

• Three day field visit to know what they do?• To understand the working condition • Ask about the work satisfaction • Then plan for interview

EMPLOYEE TURNOVER • It is the rate at which employer loss their employees from organization.

• High turnover may effect the organization badly.

METHOD OF IDENTIFYING EMPLOYEE TURNOVER?• At first stage identify the reasons of leaving the job.

• Second stage identify the factors that attracted the employee to join other organization.

• And third stage take some exit interview who are leaving the organization to get the actual reasons of leaving.

ATTRITION

• A reduction in the number of employee through retirement, resignation, reassignment, transfer, death or any other means than layoffs.

• Calculation of Attrition Rate: Employee resigned*100/(Opening balance of

employees Employee joined)

REASONS OF ATTRITION

• Lack of good working condition

• No flexible work schedule

• Lack of respect• Inadequate salary• Distance from home

• Mismatch between job and person

• The little feedback• Less frequency of

giving awards• Stress of overwork

and Work-life imbalance

EFFECT OF ATTRITION

• Loss of productivity

• Replacing qualified employees

• Cost of overtime or temporary help

• Recruiting costs

• Interviewing costs

• Time spent in orientation

OBJECTIVE

• To find out the possible reasons of leaving• To find out solution of attrition• To analyze Arohan’s historical attrition rate• To suggest the possible strategies to reduce attrition

rate• To suggest measures for further improvement in these

activities

SURVEY METHODOLOGY

• Using systematic Random Sampling to select randomly 70 employees among all resigned employees in financial year 2009-10 and 30 active employees of financial year 2009-10

• Prepare interview schedule for both resigned and active employees

• Among 70 ex employees we have conducted physical interview for 56 respondents across 10 districts in WB and 6 districts in Bihar. Telephonic interview was conducted for the rest

• Visited 25 branches including 7 branches in Bihar while conducting interviews of active employees

Sample size

70

30

100

0

20

40

60

80

100

120

Active employees Resigned employees total

Job status

No

. o

f em

plo

yees

Type of interview conducted on resigned employees

14

56

0

10

20

30

40

50

60

Telephonic interview Physical interview

Type of interview

No

. o

f em

plo

yees

HOME DISTRICT OF RESPONDENTS

West BENGAL BiharDistricts No. of employees Districts No. of

employees

24 Paraganas(N) 9 Bhagalpur 1

24 Paraganas(S) 5 Buxur 1

Howrah 3 Darbhanga 1

Hooghly 3 Madhubani 1

Medinipur(E) 5 Patna 2

Medinipur(W) 1 Vaishali 1

Nadia 12 Mujjaffarpur 1

Birbhum 3 Nalanda 1

Burdwan 7 Rohtas 1

Murshidabad 5 Total 10

Jalpaiguri 2

Malda 1

Bankura 2

Coochbihar 2

Total 60

ATTRITION RATE IN AROHAN

65 107

220

722

9.23

14.4617.96

26.3

0100200300400500600700800

2006-07 2007-08 2008-09 2009-10

Financial year

Per

cen

tag

e

0

5

10

15

20

25

30

Staff recruitement Annual

QUARTERLYANALYSIOF ATTRITION RATE

5.08%

10.88%

6.30%

4.19%

9.79%

12.35%

9.72%10.70%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

1st 2nd 3rd 4th

quarter

Att

rio

tio

n(i

n %

)

2008-09 2009-10

HOW DOES AN EX EMPLOYEE OF AROHAN LOOKS LIKE

50

41

9

0

10

20

30

40

50

60

Less than 2 3 to 4 More than 4

Members

Perce

ntage 23

50

20

7

0

10

20

30

40

50

60

Less than 3 3 to 6 6 to 12 More than 12

Duration(in months)

Perce

ntage

Dependent members Tenure in Arohan

Getting information from

newspaper almost 82% Farming is the main

source of income for

34% ex employees

TOP REASONS OF JOININGTop reasons of joining

17

3

0

10

0

10

7

23

30

0

1

5

0

10

9

11

33

31

0 5 10 15 20 25 30 35

Any other

My friends/family member borrowedmoney from Arohan

Pocket money

To meet people and make friend

To gather knowledge about microfinance industry

My friends/family members works atArohan

Earn recognition among familymembers

Supporting family

Earn money

Re

as

on

s

Percentage

Active employees Ex employees

SECOND IMPORTANT REASONS OF JOINING

Second most important reasons of joining

1

0

9

7

6

9

31

37

3

13

0

0

7

3

30

44

0 10 20 30 40 50

To meet people and make friends

Any other

To gather knowledge about microfinance industry

Earn recognition among familymembers

Pocket money

My friends/family members works atArohan

Earn money

Supporting family

Re

as

on

s

Percentage

Ex employees Active employees

TOP MOST REASONS OF LEAVING

3

3

6

7

7

7

8

10

13

16

20

0 5 10 15 20 25

Dissatisfied with promotion result

HR Issues

Family issues

Health reasons

Higher education

Non performance

BH Support

Better Opportunity

Working conditions

Posting Issue

Inadequate payR

easo

ns

Percentage

SECOND MOST IMPORTANT REASONS OF LEAVING

1

3

3

3

4

6

6

7

14

20

33

0 5 10 15 20 25 30 35

Dissatisfied with promotion result

Family issues

Health reasons

Non performance

Better Opportunity

Nothing

Posting Issue

Higher education

BH Support

Inadequate pay

Working conditions

Re

as

on

s

Percentage

VERBATIM ANSWERS OF TOP THREE REASONS

Inadequate pay

Salary should be minimum RS.5000

Minimum salary should be Rs. 8000 per month

In my pottery business I earn more than in Arohan by giving same amount of effort

Salary was not paid as per work load

Posting issues

Distance from home was too much

Could not afford transportation expense of visiting home every weekend

After father death,he had to visit home frequently

He could not stay home more than 5-6 hours on weekly off days

Working condition

He could not get time to have lunch and take bath due to work overload

Residence was not comfortable Most of the time there was a problem of electricity

Had to work almost 14 hours per day Work duration was so long not getting time to sleep

During recovery customer gave threats. There was life risk

Was Arohan the first job

Yes, 66%

Yes, 53%No, 34%

No, 47%

Resigned employees Active employees

Education Qualification

Tenure between active and ex employees

The above graph shows tenure is not normally distributed rather positively skewed.

Source: EDB (as on 31st March,2010)

Work duration

69 7953

19 17 33

0

118

100

7041

158

0

50

100

150

200

250

0 to 1months

1 to 3months

4 to 6months

7 to 9months

10 to 12months

Morethan 12months

Duration

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

120.00%

Resigned Active Attrition(in %)

Opinion about company

Opinion about Branch Head

Like most about Arohan (Ex-employees)

1

3

4

9

11

13

23

36

0 5 10 15 20 25 30 35 40

Behavior of top management

Training process

Operation policy

Rules & regulation of Arohan

Rea

son

s

Percentage

Like most about Arohan Resigned(in %)

Like least about Arohan

14

699

1014

1928

0 5 10 15 20 25 30

Operation policy

Promotional policy

Peer group relationship

Nothing

High work pressure

Rea

son

s

Percentage

Like least about Arohan(in%)

PRESENT OCCUPATION

Findings

Suggestions For Retention

• Let employees know that their opinions are valuable. Ask them to open up.

• Setting up a feedback mechanism to maintain consistency in performance and high motivations levels. Offer performance feedback and praise good efforts.

• Monotony and stress have contributed to increased attrition rate. So keep changing positions in Arohan

• Their should be Annual Awards Programs where achievers in different areas should be awarded.

• Exit interview are important

• Understandable raises tied to a accomplishments and achievements help to retain staff