Micro finance industry facing a major problem is attrition of their employee in a short period. It is so costly to hire one provide training to him and finally he leave organization within six month.

1. BUILDING AN ATTRITION
ANALYSIS MODEL
Presented By:
Ananya Ghosh
Dayanand Keshri

2. PLAN OF PRESENTATION
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

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Introduction of the study
Objective of the study
Survey methodology
Survey and Field work
Analysis and conclusion
Findings
Suggestions

3. 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

4. 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

5. 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.

6. 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)

7. 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

8. EFFECT OF ATTRITION
• Loss of productivity
• Replacing qualified employees
• Cost of overtime or temporary help
• Recruiting costs
• Interviewing costs
• Time spent in orientation

9. 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

10. SURVEY METHODOLOGY
Sample size
•
•
•
120
No. of employees
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
100
100
80
70
60
30
40
20
0
Active employees
Resigned employees
total
Job status
Type of interview conducted on resigned employees
60
No. of employees
•
50
40
30
56
20
10
14
0
Telephonic interview
Physical interview
Type of interview

11. HOME DISTRICT OF RESPONDENTS
West BENGAL
Bihar
Districts
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

12. Percentage
ATTRITION RATE IN AROHAN
800
700
600
500
400
300
200
100
0
722
26.3
15
14.46
65
25
20
17.96
9.23
30
220
10
107
5
0
2006-07
2007-08
2008-09
Financial year
Staff recruitement
Annual
2009-10

13. QUARTERLYANALYSIOF
ATTRITION RATE
14.00%
Attriotion(in %)
12.00%
10.00%
9.79%
12.35%
10.88%
9.72%
10.70%
8.00%
6.00%
6.30%
5.08%
4.00%
4.19%
2.00%
0.00%
1st
2nd
3rd
quarter
2008-09
2009-10
4th

15. HOW DOES AN EX EMPLOYEE OF AROHAN LOOKS
LIKE
Getting information from
Farming is the main
newspaper almost 82%
source of income for
34% ex employees
Dependent members
Tenure in Arohan
60
50
60
50
50
41
40
30
30
Percentage
40
Percentage
50
20
9
10
0
23
20
20
7
10
0
Less than 2
3 to 4
Members
More than 4
Less than 3
3 to 6
6 to 12
Duration(in months)
More than 12

16. TOP REASONS OF JOINING
Top reasons of joining
31
30
Earn money
Supporting family
Reasons
Earn recognition among family
members
11
7
My friends/family members works at
Arohan
9
10
To gather knowledge about micro
finance industry
0
To meet people and make friend
0
Pocket money
0
My friends/family member borrowed
money from Arohan
Any other
1
10
10
5
3
0
0
17
5
10
15
20
Percentage
Active employees
33
23
Ex employees
25
30
35

17. SECOND IMPORTANT REASONS OF
JOINING
Second most important reasons of joining
Supporting family
37
30
31
Earn money
Reasons
My friends/family members works at
Arohan
3
9
7
6
Pocket money
Earn recognition among family
members
0
To gather knowledge about micro
finance industry
0
Any other
0
To meet people and make friends
1
0
7
9
13
3
10
20
30
Percentage
Ex employees
44
Active employees
40
50

18. TOP MOST REASONS OF
LEAVING
Inadequate pay
20
Posting Issue
16
Working conditions
13
Reasons
Better Opportunity
10
BH Support
8
Non performance
7
Higher education
7
Health reasons
7
Family issues
6
HR Issues
3
Dissatisfied with promotion result
3
0
5
10
15
Percentage
20
25

19. SECOND MOST IMPORTANT
REASONS OF LEAVING
Working conditions
33
Inadequate pay
20
BH Support
14
Reasons
Higher education
7
Posting Issue
6
Nothing
6
Better Opportunity
4
Non performance
3
Health reasons
3
Family issues
3
Dissatisfied with promotion result
1
0
5
10
15
20
Pe rce ntage
25
30
35

20. VERBATIM ANSWERS OF TOP THREE
REASONS
Inadequate pay
Posting issues
Salary should be minimum RS.5000
Distance from home was too much
Minimum salary should be Rs. 8000 per
month
Could not afford transportation expense of visiting home
every weekend
In my pottery business I earn more than in
Arohan by giving same amount of effort
After father death,he had to visit home frequently
Salary was not paid as per work load
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 Residence was not comfortable Most of the
to work overload
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

21. Was Arohan the first job
Yes, 53%
No, 47%
Resigned employees
No, 34%
Yes, 66%
Active employees

22. Education Qualification

23. Tenure between active and ex employees
Work duration
250
120.00%
100.00%
200
80.00%
150
118
50
158
100
100
0
69
79
40.00%
70
53
19
0
60.00%
41
17
20.00%
33
0.00%
0 to 1
1 to 3 4 to 6
7 to 9 10 to 12 More
months months months months months than 12
months
Duration
Resigned
Active
Attrition(in %)
The above graph shows tenure is not normally distributed rather positively
skewed.
Source: EDB (as on 31st March,2010)

24. Opinion about company

25. Opinion about Branch Head

26. Like most about Arohan
(Ex-employees)
36
Reasons
Rules & regulation of Arohan
23
13
Operation policy
11
9
Training process
4
3
Behavior of top management
1
0
5
10
15
20
25
Percentage
Like most about Arohan Resigned(in %)
30
35
40

27. Like least about Arohan
28
High work pressure
19
14
Reasons
Nothing
10
Peer group relationship
9
9
Promotional policy
6
4
Operation policy
1
0
5
10
15
20
25
Percentage
Like least about Arohan(in%)
30

28. PRESENT OCCUPATION

29. Findings

30. 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