732 | Page A STUDY OF INCREASING EMPLOYEE ATTRITION RATE OF AXIS BANK: JHALAWAR (RAJASTHAN) REGION Gauri Dwivedi Department of Business Administration, Kota University, Kota, Rajasthan, (India) ABSTRACT In the present scenario, increasing attrition rate of employees is the major issue in Private Sector Banks. The cost incurred in Training and Development of employees lead to the additional financial burden of the bank. The need of the hour is to reduce the burden by decreasing exodus rate of employees. The problem is especially observed at middle and lower level management. This paper emphasizes the root cause problems of employees in AXIS Bank of Jhalawar, Rajasthan. It will focus on the solutions along with the remedial measures which will be beneficial to Academicians, Banking personnel and Researchers to explore their vision in this aspect. The possible outcome of present study can be implanted in various Attrition Reduction Programme of Banks. The benefits of this research will be multi dimensional focusing on Banks and employees benefits on the Pro-Rata basis. Sustainable strategies should be evolved to lower the Attrition Rate by adopting various Pro-Employee policies. Keywords: Private Banks, Attrition rate, AXIS Bank, Jhalawar I. INTRODUCTION As per the 2015, May edition of PTI, Banks are likely to witness an increase of upto 50 percent in attrition this year compared to last year as new players entering the sector would prefer seasoned industry professionals to grow their operations. GlobalHunt Managing Director Sunil Goel said “Large Pool of Jobs is expected to be created wherein the maximum number of the jobs will include the bottom of the pyramid, but yes existing banking and financial professional will get recruited by the new players so the attrition will get recruited by the new players so the attrition will get added another 15-20 percent for current companies”. Human resource is considered to be the center of all development processes of economy. But today’s competitive business scenario is deteriorating social conditions of human resources, hence causing employee attrition. According to Branham (2005) in his study “The 7 hidden reasons for employees leaving organizations” are lack of recognition, unfulfilling jobs, limited career advancement, poor management practices, untrustworthy leadership, and
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732 | P a g e
A STUDY OF INCREASING EMPLOYEE ATTRITION
RATE OF AXIS BANK: JHALAWAR (RAJASTHAN)
REGION
Gauri Dwivedi
Department of Business Administration, Kota University, Kota, Rajasthan, (India)
ABSTRACT
In the present scenario, increasing attrition rate of employees is the major issue in Private Sector Banks. The
cost incurred in Training and Development of employees lead to the additional financial burden of the bank.
The need of the hour is to reduce the burden by decreasing exodus rate of employees. The problem is especially
observed at middle and lower level management. This paper emphasizes the root cause problems of employees
in AXIS Bank of Jhalawar, Rajasthan. It will focus on the solutions along with the remedial measures which will
be beneficial to Academicians, Banking personnel and Researchers to explore their vision in this aspect. The
possible outcome of present study can be implanted in various Attrition Reduction Programme of Banks. The
benefits of this research will be multi dimensional focusing on Banks and employees benefits on the Pro-Rata
basis. Sustainable strategies should be evolved to lower the Attrition Rate by adopting various Pro-Employee
policies.
Keywords: Private Banks, Attrition rate, AXIS Bank, Jhalawar
I. INTRODUCTION
As per the 2015, May edition of PTI, Banks are likely to witness an increase of upto 50 percent in attrition this
year compared to last year as new players entering the sector would prefer seasoned industry professionals to
grow their operations. GlobalHunt Managing Director Sunil Goel said “Large Pool of Jobs is expected to be
created wherein the maximum number of the jobs will include the bottom of the pyramid, but yes existing
banking and financial professional will get recruited by the new players so the attrition will get recruited by the
new players so the attrition will get added another 15-20 percent for current companies”. Human resource is
considered to be the center of all development processes of economy. But today’s competitive business scenario
is deteriorating social conditions of human resources, hence causing employee attrition. According to Branham
(2005) in his study “The 7 hidden reasons for employees leaving organizations” are lack of recognition,
unfulfilling jobs, limited career advancement, poor management practices, untrustworthy leadership, and
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dysfunctional work cultures. The job or workplace was not as expected, the mismatch between job and person,
too little coaching and feed-back, too little growth and advancement, Feeling devaluated and unrecognized,
Stress from overwork and work-life and Loss of trust and confidence in senior. The “seeds” or initial causes of
attrition, arising out of the frustration related to budget cutting, hiring freezes, layoffs, and lack of development
funds and opportunities , are more likely to be sown at such times (Sharmistha,2010). Employees always assess
the management values, work culture, work practices and credibility of the organization.
After independence, year 1991 was marked as the significant year for the Indian Banking sector. In year 1969
after nationalization of 14 major banks a great reform arise in banking sector in India. Followed by
Liberalization, Globalization and other international events lead banking sector in India to reform and adjust to
attain competitive edge in multinationals environment. In order to cope with the changing trend as well to
provide effective and efficient service to the customer implementation of advance technology has changed the
face of banking. Installation of ATM machine, e-Banking, computer implementation and lot many inputs have
changed the work patterns of the bank employees. Directly or indirectly these reforms in policy and technology
in banking sector has deteriorated the social, economic and psychological sphere of the bank employees in
India.
In the recent decades the Indian Industry has changed its outlook. The employment scene has changed its
appearance. The factors like skill sets, job satisfaction drive the employment and not the money. The employer
hence faces the heat of continuous employee turnover. Continuous efforts are made by organizations to control
the employee turnover rate as it directly affects the performance of the organization as many key people leave
the organizations for various reasons at crucial points. This turnover is normally known as attrition.
II. CONCEPT OF ATTRITION
Working environment is the most important cause of attrition. Today’s Gen Next employees expect a
professional approach and an international style working environment. They expect a friendly and learning
environment. Employees look for freedom, good treatment from the superiors, good encouragement, friendly
approach from one and all, and good motivation. The employees often switch jobs if there is too much pressure
on performance or any work related pressure. It is quite common that employees are moved from one process to
another. They take time to get adjusted with the new processes while few employees find it difficult to adjust
and consequently leave. Monotony sets in very quickly and this is one of the main reasons for attrition. Job
hopping is very common among youngsters who look at jobs as being temporary. Another commonly looked
option is to move to such other process where there is little or no pressure of sales and meeting service level
agreements (SLA). The employees move out if there are strained relations with the superiors or with the
subordinates or any slightest, discontent.
III. DEFINITION OF ATTRITION
Attrition is the rate of shrinkage in size or a gradual, natural reduction in membership or personnel as through
retirement, resignation or death.
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IV. NEED FOR THE STUDY
Attrition effect on Public as well as Private banks , but the effect of increasing attrition rate is faced mostly by
Private Sector Banks instead of Public Sector Banks. The lowest rate of attrition is in PNB and the highest by
the ICICI Bank followed by AXIS bank as we can see in the Graph1.1The attrition rate of employees working
in Private Sector Banks are more in the recent time due to increased workload with moderate package of
financial benefits. Moreover working timings in the shift basis and non-conduciveness environment forced the
employees to search better companies. Thus the need for an authentic basis of design suitable for employee
attrition is identified as researchable area and the same has been foundation for the study. The Focus the study
will be on Axis bank’s HR policies and strategies in terms of Employee Attrition.
V. OBJECTIVE OF THE STUDY
People are considered to be the most important assets of the organisation. Therefore the employees are
encouraged for the organisation to retain for the maximum time period.
To understand the concept of attrition, reasons, needs , objectives, importance and impact on employees and
organisations in competitive situation etc.
To understand the practices followed and find out problems faced by the AXIS bank due to attrition.
To suggest ways and means to check attrition rate in Bank.
To find out the Strategy followed by bank to overcome the challenges of Attrition.
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VI. COMPANY PROFILE
Axis Bank, established in 1993, was the first of the new private banks to have begun operations in 1994 after
the Government of India allowed new private banks to be established. The Bank was promoted jointly by the
Administrator of the specified undertaking of the Unit Trust of India (UTI-I), Life Insurance Corporation of
India (LIC) and General Insurance Corporation of India (GIC) and other four Public Sector insurance
companies, i.e., National Insurance Company Ltd., The New India Assurance Company Ltd., The Oriental
Insurance Company Ltd. and United India Insurance Company Limited.
Initially, the bank was incorporated with a capital of Rs. 115 crore, with UTI contributing Rs. 100 crore, LIC
contributing Rs. 7.5 crore, and GIC and its four subsidiaries contributing Rs. 1.5 crore each. The Bank's Registered
Office is at Ahmedabad; and its Central Office is located at Mumbai. The bank has a very wide network of more than
1620 branches as on 31st March, 2012 and with a workforce of 31738 employees. The bank has been operating with
one of the largest ATM networks in the country of 6270 ATMs (as on 31st March, 2011) for providing 24 hours a day
banking convenience to its customers. The Bank has strengths in both retail and corporate banking and is committed
to adopting the best industry practices internationally in order to achieve excellence. Axis Bank entered a deal in
November 2010 to buy the investment banking and equities units of Enam Securities for $456 million. Axis
Securities, the equities arm of Axis Bank, will merge with the investment banking business of Enam Securities. As
per the deal, Enam Securities was to demerge its investment banking, institutional equities, retail equities and
distribution of financial products, and non-banking finance businesses and merge them with Axis Securities.
VII. OVERVIEW OF EMPLOYEE ATTRITION ON AXIS BANK
Table (a) highlights the data showing the importance of human factor in the AXIS Bank. Various indicators
showing the growth of the bank relating to its human resources have been depicted in terms of branch network,
staff strength, business, cost per employee over the period of study.
Source: Data compiled from Annual Publications of IBA, Bombay; Performance Highlights of Public Sector
Banks and Performance Highlights of Private Sector Banks, 2002-03 to 2011-12. And rest from the weblink.
The number of employees, though, fell in 2014-15, despite the bank increasing the number of branches from
2,402 to 2,589. By March 2015, the headcount dropped to 42,230. In the last financial year, the management
had said the drop in manpower was due to the fact that more and more transactions were happening on the
digital medium, reducing the number of employees needed at branches. Management believes despite the shift
to the digital medium, advancement of the physical footprint was still required. According to management
“While we keep on talking about the digital footprint, the physical footprint will have to increase a lot.”
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Table (a) Indicators Showing Growth of AXIS Bank from 2002-03 to 2014-15
Year Staff Strength Cost Per Employee Number Of Branches
(Number)
2002-03 2,338 0.13 140
2003-04 3,447 0.12 182
2004-05 4,761 0.12 247
2005-06 6,553 0.12 355
2006-07 9,980 0.12 508
2007-08 14,739 0.14 654
2008-09 20,624 0.13 838
2009-10 21,640 0.17 1038
2010-11 26,435 0.18 1393
2011-12 31,738 0.18 1620
2012-13 29,240 0.18 2010
2013-14 42,420 0.19 2402
2014-15 42,230 0.19 2589
VIII. IMPACT OF ATTRITION ON AXIS BANK, JHALAWAR
The current Staff intake of Axis bank in Jhalawar Region is 17, which has been decreased over the years. As
shown in Table (b).
Table (b) Showing the individual Staff Strength of 2016-17, (January)
Branch Name Staff Strength
Jhalawar 12
Peepaliya 5
The Attrition has is increasing year by year as shown in Table (c). With reference to these figures, certain
questions have been asked from the working employees to find out the reasons behind this increasing rate
attrition among employees.
Table (c) Data showing Impact of Attrition
Year Staff Strength
2013-14 20
2014-15 19
2015-16 17
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IX. OBJECTIVES OF THE STUDY
People are considered to be the most important assets of the organisation. Therefore the employees are
encouraged for the organisation to retain for the maximum time period.
1. To understand the concept of attrition, reasons, needs, objectives, importance and impact on employees and
organisation.
2. To understand the practices followed and find out the problems faced by AXIS bank due to attrition.
3. To suggest ways to decrease attrition rate in Bank.
4. To complete the requirement of research study.
5. To depict the strategies followed by AXIS bank to overcome Attrition problem.
X. RESEARCH METHODOLOGY
This research will be descriptive because the data has been classified as per various factor of study.
Sources of Study: For study purpose both Primary and Secondary data will be used. For study purpose the data
used are as under:
A. Primary Data : Primary Data is that which collected fresh and for the first time. It is also known as basic
data or original data. For this study Questionnaire has been prepared and employees of the bank have been
asked to fill the job.
B. Secondary Data: Secondary data means the data that is already available in various reports, diaries,
letters, books etc. Secondary data is that data which has been used previously for any research and now is used
second time. In short, the data presented in research reports when used again for further research is called
secondary data.
International Journals
National Journals
IBA Reports
Instruments for Data Collection: Questionnaire
Sampling: For the purpose the Questionnaire will include employees of the Bank.
Sample Size: The sample size is 17.
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XI. DATA ANALYSIS AND INTERPRETATION
Interpretation: The employees of the Bank are majorly lies in the Age group between 25 years to 34.The
number of employees after the Age 54 is Zero in Jhalawar Region. Clearly seen the employees after certain age
group leave the organisation voluntary or involuntary. So the bank needs to look for Attrition problem.
Interpretation: The Employees/ Respondents majorly work in Operations and Sales Department.
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Interpretation: The length of the service of employees majorly is between 2 to 3 years. Only 11% employees
work more than 5 years.
Interpretation: According to employees the main HRM challenges are Performance Management with
Employee Attrition. 22% employees believes the Bank fail to provide an environment where the employee can
stay for a long tim
Data Interpretation: Large number of employees belief that Employee Attrition is recognized HR challenge as
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after 5 years only 11% employee stay in the Bank to work.
Interpretations:
When I tried to find out the reasons behind the problem, Employees stated many reasons behind Attrition
Problem. The important among them are
1. Employee’s Expectations from Job: Employee expectations include the timely and accurate payment of
wages, adequate training, safe working conditions, full explanation of all Bank policies, especially of
employee’s job responsibilities, and fair and constructive feedback from supervisor. If any of these
expectations are not being met, the employee morale got down. And moreover most of these employee
expectations are not only reasonable, but also are required by law.
2. Lack of Career Growth: Employees think there career path is not very much rewarding.
3. Absence of Conducive Work place Environment: Employees feel Bank don’t provide a work environment
that encourages employee engagement.
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Interpretation: More than 80% employees are willing to leave the organisation after 5 years as we have
discussed this before. This is the reason why the length of the Work Tenure of many employees is limited to 2
to 5 years in this Bank.
Interpretation: Junior Level employees are more prone to Attrition in bank. As his Needs are not covered up by
the Management of the Organisation.
Interpretation: Notice Period is the time period has to be given to an employee by his employer before his
employment ends. It also refers to the period between resignation date and last working day in the company
when an employee resigns. Bank made it mandatory for the employees to serve a Notice Period so that the Bank