1.1 INTRODUCTION: Attrition A reduction in the number of employees due to retirement, resignation or death is called attrition. In the best of worlds, employees would love their jobs, like their coworkers, 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 and never leave. Reasons for attrition: People don't get integrated. Most organizations have an orientation program which is more of data-dump or focused on compliance trainings being completed. The focus should be more on enabling employees to form networks within themselves. Performance goals are unclear. In a fast growing team or business the focus is on getting the thing done today, but rarely are performance goals thought through and employees told as to which resources to approach for help. Development is always tomorrow's job. Culturally Indians are focused on learning. If learning adds value only to the 1
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1.1 INTRODUCTION:
Attrition
A reduction in the number of employees due to retirement, resignation or death is
called attrition. In the best of worlds, employees would love their jobs, like their
coworkers, 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 and never leave.
Reasons for attrition:
People don't get integrated. Most organizations have an orientation program which is
more of data-dump or focused on compliance trainings being completed. The focus
should be more on enabling employees to form networks within themselves.
Performance goals are unclear. In a fast growing team or business the focus is on
getting the thing done today, but rarely are performance goals thought through and
employees told as to which resources to approach for help.
Development is always tomorrow's job. Culturally Indians are focused on learning. If
learning adds value only to the job and not to the overall career goals of the individual
then the organizations seems too transactional for the employee
The personal touch is missing. How comfortable are managers building personal
bonds with their subordinates? A lot of managers shy away fearing a bond will make
delivering hard messages difficult. I would argue that it's the other way round!
Knowing employees on personal level makes a manager know their strengths and
weaknesses. Work allocation and employee development become easier.
Reward systems are not transparent. Most employees who get salary increases
because they have a rare skill at a particular point of time think they got their raise for
excellent performance.
Perceived equity of reward systems is low. Like it or not, employees discuss salary
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details and if there is any perceived lack of equity then you have an issue!
Goal setting process is not scientific. Most organizations impose a normal curve
fitment, but do not train managers to set realistic goals or goals that tie up with
organizational or functional goals. This also leads to point number 6
External equity is missing too. Don't do an annual compensation survey when the
market moves every 3-4 months. If your practitioners feel that externally comparable
professionals are being valued more, then they will leave.
No communication around total value. If you offer benefits apart from only
monetary terms do you communicate that to employees too? Things like being a
global or niche industry leader, value of the brand of the organization, should also be
made explicit.
No career planning. Are people aware of the ways in which they can grow in the
organization? Who are the role models within the organization? Do they know what
they have to do to gain the competencies to move to various levels?
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1.2 COMPANY PROFILE:
Serviont Global Solutions
Servion Global Solutions was started in the year 1995 and was established in 1998.
Servion Global Solutions and Cisco, the US-based networking company, will jointly
deliver to global companies Internet Protocol (IP)-based Unified Communication
solutions that combines IP telephony technology, contact management technology and
contact centre applications. As a pre-requisite to this relationship, Servion, a Chennai-
based company, has achieved accreditation as a Cisco Advanced Technology Partner,
which demonstrates a company’s expertise in Unified Contact Centre solutions,
according to a Servion press release.
At Servion, we believe that every time a customer gets in touch with an organization,
there is an enormous opportunity to convert that interaction into a long-term relationship.
Making the most of these interactions however, requires the right processes and systems
to be set in place. Organizations are now beginning to realize that their customers see the
experience they have when interacting with various touch points as being the key
determinant of brand perception.
This is where we can help you. Our decade of experience in the area of Customer
Interaction has helped us to devise a generic model called the Contact Optimization
Model. This Model helps map customer contact as well as makes suggestions for
optimizing and enhancing those interactions. In other words, we can help you put the
smile back on your customer's face, where it belongs!
Every time you think 'customer interaction', think Servion. With end-to-end Contact
Center solutions from Servion, interacting with your customers has never been easier or
more rewarding.
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Contact Optimization
Using our various Contact Optimization solutions, we can help you analyze your
customer interaction strategy, offer suggestions, and where required, a corrective course
of action. Our experience of more than 10 years in the Customer Interaction Management
industry has resulted in a Contact Optimization Model that we utilize to help
organizations optimize and enhance their customer response mechanism.
This approach has already helped leading organizations across the world obtain more out
of their existing systems and infrastructure, reduce operational costs, increase revenue
generation, and enhance customer satisfaction. We use best-of-breed technologies,
products, and services to develop solutions for effective deployment - all aimed at
bringing a smile to your customer's face, every time.
Our domain expertise encompasses a wide range of business sectors such as banking and
finance, insurance, outsourced Contact Centers, telecom, government, and transportation.
This is reflected in our blue chip customer base of more than 400 clients and 1000
installations worldwide. Our clients include industry majors such as ABN AMRO Bank,
Bharti Group, Citibank, DBS Bank, Etisalat, Emirates, GE, HDFC Bank, Hutch, ICICI
Bank, LG, Prudential Group, Singapore Telecom, Shinsei Bank, Standard Chartered
Bank, State Bank of Mauritius, Tata Teleservices, Toyota, and Wescom Credit Union.
Consistent performance and a steady growth rate have facilitated significant investments
in the company's equity from TDA Capital Partners.
Quality
At Servion, improving quality is a constant focus. This is a basic requirement for
satisfying and retaining customers and to build our reputation for referrals and new
customers. To meet this objective, we embarked on an intensive quality initiative and
were assessed at Level 4 of the Capability Maturity Model (CMM) - the benchmark for
quality and rigorous processes in the software industry.
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The CMM Level 4 assessment and our sustained quality practices give us the capability
to manage software development, implementation, and maintenance activities efficiently
and effectively. As our customer, you gain tangible benefits including higher reliability,
faster delivery, reduced cost of operations, and most of all, a competitive advantage.
Corporate Overview
At Servion, we believe that every time a customer gets in touch with an organization, the
opportunity to convert that interaction into a mutually satisfying and long-term
relationship is very high. And making the most of these interactions requires the right
processes and systems to be in place.
Servion joins hands with Cisco to offer Unified Communications Solutions
Servion Global Solutions Expands North American Operations
Servion Partners With Microsoft For Availability Of Its CIM Solution With
Microsoft Dynamics CRM
Servion Global Solutions Acquires 5by5 Networks Inc.
Avaya Global Connect partners with Servion in India
Servion invests in the Malaysian market
SER and Servion Forge Partnership to Establish Distribution Channel in India
Servion seven city seminar series - 'The Customer Interaction Conclave 2005' ends
at New Delhi
Servion Announces CallBack Manager with Natural Language Interface
Servion Unveils the Contact Optimization Model to Map Customer Contact
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Servion and HDFC Bank setting technology standards in the Customer Service arena
Servion named Best New Partner of Blue Pumpkin Worldwide
SerWizSol partners with Servion to implement Business Response Systems as key
differentiator
Servion partners with Blue Pumpkin for Workforce Optimization Solutions
TouchTel walks 'the' extra mile, achieves an all time high in customer experience
Servion partners with ScanSoft for Speech based solutions
Servion Global Solutions achieves Level 4 of Capability Maturity Model (CMM)
Servion ties up with Peoplesoft Implements at Vanenburg, Asia Pac's first Web
Servion and IBM to offer Solutions for the Contact Center Industry
Servion Receives 'Most Significant Win' award
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1.3 PRODUCT PROFILE:
1. Computer Telephony Integration (CTI)
Computer Telephony Integration (CTI) integrates the telecom system, the IT
Infrastructure, and software applications with customer data.
RAP CTI is an enterprise-level CTI engine that functions as the single point of contact
between customer access channels (PBX, IVR, Dialer) and corporate business
applications. Available in three different options - Instant, Prime, and Optima, RAP CTI
is designed for easy installation and deployment, enabling Contact Centers to become
CTI ready very quickly.
2. enTRAC
enTRAC, a multi-channel messaging platform, works on real time, and is completely
automated. Data is gathered from various sources and delivered as information via
multiple channels as either wired or wireless; voice, e-mail, fax, and SMS that
accommodates wireless text messaging, globally.
enTRAC allows users to specify the medium through which they wish to receive
notifications. This helps organizations offer maximum flexibility and convenience to
customers. enTRAC's unique two-way capability allows users to not just receive a
message but also respond, using the same device.
3. Medius
Medius is an automated, progressive dialer that enhances customer interaction. This, in
turn, improves the marketing capabilities of a Contact Center. Medius automates routine
tasks giving Contact Center managers dynamic, real-time control over operations
including campaigns, individual calls, and agent desktops. This helps the manager
effectively manage customer interactions and responses with far greater efficiency.
4. Call Back Manager:
If you do not want to 'wait in queue', your customer does not want to either. The
importance of call queue management can not be emphasized on more. The challenge lies
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in balancing agent surplus with call surplus without having to make the caller wait in
queue for long periods or leave the agent idle. Many Call Centers experience periods of
unusually high call volume and a shortage of agents. The caller holding the line for a long
time experiences frustration. This ultimately results in call abandonment or the caller
venting her/his anger on the agent. This negatively impacts customer service and
performance levels of agents who face the angry caller.
But are queues unavoidable? Common sense seems to say so. A typical call volume chart
of a Call Center shows more spikes than plateaus. No Call Center would deploy an army
of agents to take care of every single spike. Lengthy IVR call flows and music on hold do
not seem to be the answer.
Yes, they are avoidable. Many service providers who have used Servion's CallBack
Manager (CBM) agree that call queues are avoidable. This simple application has the
potential to even out your peaks and move the calls that were not handled by the agents to
a subsequent dip. The CallBack Manager gives an option of a 'call back' to a customer in
a queue, and automates the 'call back' either on availability of the agent or at a time opted
for by the customer. The customer has control over the entire process, allowing her/him
to make an informed decision, based on expected wait time, on whether to stay on line for
an agent or leave a 'call back' request. It is simple, inexpensive, and easy to administer. It
maximizes efficiency and improves customer service
5. Speech Recognition:
Speech is the basic form of human communication. Technology has evolved to enable
humans to interact with software and telephony applications using commands, which
sound like natural language.
As a result, applications built on an Automated Speech Recognition (ASR) engine
have a tremendous impact on customer Self Service and Call Centers, in particular.
Speech applications can be broadly classified as Speech portals and Self Service
applications. Speech portals provide Speech user interface to Web portals. Speech
enabled Self Service applications enhance the productivity of traditional IVR applications
and improve agent productivity in a Contact Center.
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Technology Partners:
AdvaTel
Avaya Communications
Cisco
ClickFox Inc.
Nuance Inc.
Intervoice
Intel
Envox Worldwide
Ecosystem Partners:
Cleo
IBM
Microsoft
Business Partners:
Avaya
Cisco
IBM
i-flex Solutions
Infosys
Talisma
Tata Consultancy Services
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2.1 NEED OF THE STUDY:
The study enables the following,
Designing effective recruitment strategies
Effective compensation and rewards depending upon the job
Align the organizational strategies with the employees’ needs and wants
To balance between work and the personal goals and wants of an employee
contributes positively to the retention of employees
Maintain the employees in continuous learning and growth mode
Identifying correct leadership
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2.2 OBJECTIVES OF THE STUDY
Primary:
To study about attrition at Servion Global Solutions.
Secondary:
To identify the reasons for attrition
To find the employee’s perception towards Servion
To identify the employees satisfaction towards his job
To suggest ways for reducing attrition
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2.3 SCOPE OF THE STUDY
The study operates at different levels
Understands the most appropriate level of evaluating the employees
Teaches different employee retention techniques
The study identifies the employees perception about the company
The study identifies the job satisfaction of the employees.
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2.4 LIMITATIONS OF THE STUDY
The study was restricted only at Chennai branch.
The sample is 150. This may not be the true representation of total population.
Perceptions and attitudes of the employees would have influenced their responses.
Time constraints of the employees would have influenced their responses.
There may be ambiguity in responses and hence there could be bias in findings
2.5 REVIEW OF LITERATURE
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The high attrition rate in the IT industry has always been its greatest concern and
a subject of much analysis and debate. Organisations use different methodologies for
calculating their turnover rate. It is a known fact that turnover calculation is a grey area
which does not always depict the true picture. While a few techniques are common, there
are no proven theories. Further, the approach to this calculation might vary from
organisation to organisation. Disclosure of the figure not only has a direct impact on the
business but also affects employee morale and productivity. Significantly, it might also
trigger a chain reaction—a high attrition rate will lead to more people leaving the
organisation, while a lower rate will act as a retention strategy. It is therefore not
surprising that most industry observers are skeptical when organisations ‘disclose’ their
employee turnover.
A high attrition reflects poorly on an organisation’s ability to hold on to its
people. Monisha Advani, CEO, Emmay HR, says that attrition is unfortunately viewed as
a management flaw when in fact it could well be a recruitment error. In some cases it can
be simply seen as an organisation’s competitor appreciating its quality of hires, and its
output, post-training—almost a backhanded compliment.
“Ideally, attrition should be calculated on a monthly basis for companies that have
over 50 employees for the first five years of its business. Subsequently, a quarterly index
should be applied till a company’s 10th anniversary. After this, annual attrition figures
should be measured and accounted for. This is the optimum within the services industry
as companies tend to have different challenges at different stages of their business
lifecycle; also, maturity achieves stability around a company’s 10th anniversary,” opines
Advani.
Different theories:
Attrition can be ascribed to many factors. Suhas Nerurkar, President, TVA Infotech, lists
a few of them:
The employee base changes each month. So if a company has 1,000 employees in
April 2004 and 2,000 in March 2005, then they may take their base as 2,000 or as
1,500 (average for the year). If the number of employees who left is 300, then the
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attrition figure could be 15 percent or 20 percent depending on what base you take.
Many firms may not include attrition of freshers who leave because of higher studies
or within three months of joining.
In some cases, attrition of poor performers may also not be treated as attrition.
Essentially, the attrition number is also a PR or stock/analyst statement and is prone
to dressing up.
Varied theories are also applied as organizations like to brand themselves differently
as far as their HR and recruitment strategies are concerned. Explains Advani, “Each
company positions itself uniquely in a common market place by claiming to have
exceptional HR policies, procedures and management styles that directly impact retention
or attrition; hence the absence of a homogenous system. Also, in situations where a
common attrition measurement formula is applied, companies find a way to justify their
results to position their statistics differently from their peers on account of having
‘different’ operating practices.”
However, Anil Noronha, Director, HR, Indian Subcontinent, Onward Novell
Software (I) states that most companies use a fairly standard method—the number of
employees who left during the year divided by the average number employed for that
year.
The true picture
The attrition rate that is generally disclosed by most organizations does not
always show the correct picture. Nerurkar acknowledges this to be true. “I agree that the
figure has a direct impact on stock markets, employee morale and customer confidence.
There is too much at stake and neither the US GAAP (Generally Accepted Accounting
Principles) or SEBI requires that this be calculated in a particular way.”
The attrition rate has always been a sensitive issue for all organizations as it can
have major fallout on the bottom-line. Kranti Munje, Senior Manager, HR, Bristlecone
India furthers, “This is because the attrition rate is an indicator of many things intrinsic to
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the organization, and revealing it may affect it negatively. In fact at times disclosing this
data can be like a self-fulfilling prophecy—if you reveal that the attrition is high, it may
actually become higher.”
It is also not uncommon to find companies proclaiming an attrition rate that is
much less than that of others in the industry. Remarks Bijayinee Patnaik, HR Head at
Mahindra Special Services Group (MSSG) “Companies must be projecting their attrition
rate incorrectly because it tends to affect their brand image both internally and externally.
Internally, it sends a wrong signal to their employees and the board of members;
externally, it can affect the company in various ways such as developing a bad image or
dissuading fresh talent from joining.” She regrets that companies do not realise that
hiding their attrition rate is never a solution for reducing the same.
Attrition does not only reflect the hiring policies of an organisation, but also
induction/retention strategies, training methodologies, work culture and many other
factors. Munje reminds that it costs the company valuable time, money and often
credibility (especially where employees develop relationships with customers). “Some
companies just look at the employee turnover in terms of the cost (based on the PwC
Saratoga Institute theory) involved in the hiring and training of individuals. Others look
at the opportunity lost and its cost. Sometimes, companies also use the figure between 50
percent and 200 percent of the annualized salary.”
Organisations aim to reduce voluntary attrition of productive employees and
encourage unproductive staff to leave its fold. “It makes way for career progression, new
thinking and innovation. However, what that number should be again differs from
industry to industry and from country to country as economies vary. The demand vs.
supply of talent/resources plays a critical role too. What is considered a healthy attrition
number in an industry in India may not be so in a more stagnant economy where no new
jobs are being created,” explains Noronha. Nevertheless, zero attrition is unimaginable
and unhealthy for any organisation.
Trends in attrition:
Liberalization of the Indian economy in 1991 paved the way for the growth of the
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IT industry. The most prominent players in the Indian IT industry by the mid-1990s were