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What is attrition ???.....
Human resources are the only source of long term competitive advantage for
any business organization. It plays a key role in helping companies deal with a
fast-changing competitive environment. According to Wayne F Cascio, people
are a major component of any business and the management of people is a
major part of every manager’s job. It is also the specialized responsibility of
the HR department. Thus Human Resource Management (HRM) is the
strategic and coherent approach to the management of an organization’s
most valued assets. Human Resource Management involves five major areas:
staffing, retention, development, adjustment and managing change. Together
they compose the HRM system, for they describe a network of interrelated
components1. However, rising business competition has led to high attrition
rates in many sectors and retaining the employees is proving to be a
herculean task for most organizations in the modern era of globalization and
competitive business.
Attrition is a normal and uncontrollable reduction in the workforce because of
constant stress, retirement, death, sickness and relocation. In simple words, attrition refers to the
number or rate at which the people leave an organization. It is one method of reducing the
size of workforce without management taking any overt actions. The
drawback to reduction by attrition is that reductions are often unpredictable
and can leave gaps in an organization. Attrition is one of the biggest

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challenges and it represents significant costs to most organizations. A high
attrition reflects poorly on an organization’s ability to hold on to its people.
The toughest concern for an HR manager is the high attrition rate.
Attrition level can also be more, due to rigid and unpopular HR policies
pursued by the corporate. All companies are working day and night to find
out a long-term solution of this complex issue.
The study of attrition is very important because the excess of it tells about the
productivity of the organization. It is obviously difficult for any organization to
operate smoothly and to attain its objectives if employees leave the
organization. Level of attrition beyond the normal range in any organization
can have a direct impact on that organizations effectiveness and efficiency.
Most employees leave their work for reasons other than money; they want
more meaning in their work. Employees seek opportunities that allow them to
use and develop their skills. They often indicate that they want to use their
qualities and skills in challenging proper working teamwork led by capable
leaders. There are numerous reasons which may drive an employee to quit.
Some of them are: career opportunities, environment, psychological
satisfaction, unfair practices in organization, stress job & person mismatch etc.
Among management-level employees, the key attrition drivers are such as
opportunities for management, ability of top management, use of skills and
abilities and work/family balance. For professional – level employees, the key

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attrition drivers are concern about coaching and counseling from one’s
supervisor, clear sense of direction from the company and chance to do
interesting and challenging work. Among clerical level employees, the key
attrition drivers are concern about type of work, use of skills and abilities and
opportunity to learn new skills.
Definition of Attrition:
“A reduction in the number of employees through retirement, resignation or death is called Attrition”.
Attrition is also called total turnover or wastage rate.
 Definition of Attrition Rate:
“The rate of shrinkage in size or number of employees is
known as Attrition rate. It is usually expressed in
percentage.”
Types of Attrition
Attrition is not bad always if it happens in a controlled manner. Some attrition
is always desirable and necessary for organizational growth and development.
The only concern is how organizations differentiate “good attrition” from “bad
attrition”.
 Good Attrition-

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Less productive employees voluntarily leaving the organization. This means if
the one
who have left the organization fall in the category of low performers, the
attrition in considered being healthy or good attrition.
 Attritionrates canbebeneficialinsomeways:-
 When certain employees leave, whose continuation of service would
have negatively impacted productivity and profitability of the company, the
company is benefited.
 If all employees stay in the same organization for a very long time, most
of them will be at the top of their pay scale which will result in excessive
manpower costs.
 New employees bring new ideas, approaches, abilities & attitudes which
can keep the organization from becoming stagnant.
 Desirable attrition also includes termination of employees with whom
the organization does not want to continue a relationship. It benefits the
organization in the following ways:
o It removes bottleneck in the progress of the company
o It creates space for the entry of new talents
o It assists in evolving high performance teams

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o Business pressures do not allow the management to over-reward
the performers, but when undesirable employees leave the
company, the good employees can be given the share that they
deserve.
 Bad Attrition: -
In the performance analysis of the ones who have left, if the proportion
of high performers leaving is higher, the attrition is bad attrition.
Attrition in any form means that a wrong choice was made at the
beginning while recruiting. Even good attrition indicates loss as
recruitment is a time consuming and costly affair.
In addition to the above two types, there are-
 MarketDriven Attrition–
Based on the demand for a particular skill- The typical initial reaction by
to market driven attrition is to increase wages, offer better benefits, escape
the market by relocation or site migration or relax hiring standards.
 Workload or Stress Driven Attrition -
On the actual capacity to perform the work required. This is when there
are not enough of the right people.
 Process Driven Attrition –

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Variables associated with job design and/or the organization. In some
industries and organizations there is a belief that attrition has always
been there and rigid process is also responsible.
Causes of Attrition
Employees do not leave an organization without any significant reason. There
are certain circumstances that lead to their leaving the organization. Among
management-level employees, the key attrition drivers are such as
opportunities for management, ability of top management, use of skills and
abilities and work/family balance. For professional – level employees, the key
attrition drivers are concern about coaching and counseling from one’s
supervisor, clear sense of direction from the company and chance to do
interesting and challenging work. Among clerical level employees, the key
attrition drivers are concern about type of work, use of skills and abilities and
opportunity to learn new skills.
 Higher Pay:

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The most obvious reason for employees leaving any organization is
higher salaries offered by other Organization with better job
opportunity.
 Job or work placeis not what they expected:
Sometimes the job responsibilities don’t come out
to be the same as expected by the candidates. Unexpected job
responsibilities lead to job dissatisfaction.
 Job & person mismatch: A candidate may be fit to do a certain type of job
which matches his personality. If he is given a job which mismatches his
personality, then he want be able to perform it well and will try to find out
reasons to leave the job.
 Less growth opportunities:
No or less learning and growth opportunities in the current job will make
candidate’s job and career stagnant. Only 20% of employees are able to go
to senior levels. The remaining 80% of employees look for other
organization where they can get opportunities for growth.
 Lack of appreciation-
If the work is not appreciated by the supervisor, the employee feels de-
motivated and loses interest in job.
 Lack of trust andsupport incoworkers, seniors andmanagement:

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Trust is the most important factor that is required for an individual to stay
in the job. Non-supportive coworkers, seniors and management can make
office environment unfriendly and difficult to work in. When employees are
happy with their superiors they choose to stay, if not they look for a
switch.
 Stress from overwork and work lifeimbalance:
Job stress can lead to work life imbalance which ultimately many times
lead to employee leaving the organization. If employees feel stressed out
due to the workload trusted on them they tend to look for a change. The
major stress factors are: -
 Work Timings
 Repetitive Nature of Work
 Work Load & Pressure to Perform
 Irritative Customers
 Travel Time
 Long Working Hours
 Insufficient Breaks
 Health Issues
 Compensation:
Better compensation packages being offered by other companies may
attract employees towards themselves.
 New Job Offer;

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An attractive job offer which an employee thinks is good for him with
respect to job responsibility, compensation, growth and learning etc. can
lead an employee to leave the organization.
 Plans for further studies: These days, in many organizations, employees are
joining at very young age because of lucrative salaries being offered. But
with time, they apply for higher education and try to move on to other
organizations or sectors to occupy top positions.
 Women Workers:
The percentage of women workers is very high, around 30%. Generally,
women workers leave the organization after marriage to take up their
house-hold duties, irregular work hour’s et al. Even when someone
relocates with their spouse or partner, it comes outside the control of
any employer.
 Calculating Cost of Attrition
Costs are often broadly categorized as follows:
 Recruiting and hiringcosts –
 The cost of advertisements; agency costs; employee referral costs;
internet posting costs.
 The cost of the internal recruiter's time to understand the
position requirements, develop and implement a sourcing
strategy, review candidates backgrounds, prepare for interviews,

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conduct interviews, prepare candidate assessments, conduct
reference checks, make the employment offer and notify
unsuccessful candidates. This can range from a minimum of 30
hours to over 100 hours per position.
 Calculate the cost of the various candidate pre-employment tests
to help assess candidates' skills, abilities, aptitude, attitude, values
and behaviors.
 Trainingand orientation costs –
 Calculate the cost of orientation in terms of the new person's
salary and the cost of the person who conducts the orientation.
Also include the cost of orientation materials.
 Calculate the cost of departmental training as the actual
development and delivery cost plus the cost of the salary of the
new employee. Note that the cost will be significantly higher for
some positions such as sales representatives and call center
agents who require 4 - 6 weeks or more of classroom training.
 Calculate the cost of the person(s) who conduct the training.
 Calculate the cost of various training materials needed including
company or product manuals, computer or other technology
equipment used in the delivery of training.

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 Lost Productivity Costs – As the new employee is learning the new job, the
company policies and practices, etc. they are not fully productive. Use
the following guidelines to calculate the cost of this lost productivity:
 Upon completion of whatever training is provided, the
employee is contributing at a 25% productivity level for the
first 2 - 4 weeks. The cost therefore is 75% of the new
employee’s full salary during that time period.
 During weeks 5 - 12, the employee is contributing at a 50%
productivity level. The cost is therefore 50% of full salary
during that time period.
 During weeks 13 - 20, the employee is contributing at a 75%
productivity level. The cost is therefore 25% of full salary
during that time period.
 Calculate the cost of mistakes the new employee makes
during this elongated indoctrination period.
 New Hire Costs –
 Calculate the cost of bring the new person on board including the cost
to put the person on the payroll, computer and security passwords
and identification cards, telephone hookups, cost of establishing email
accounts, or leasing other equipment such as cell phones, automobiles.
 Calculate the cost of a manager's time spent developing trust and
building confidence in the new employee's work.

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 Lost SalesCosts –
 Calculate the revenue per employee by dividing total company revenue
by the average number of employees in a given year. Whether an employee
contributes directly or indirectly to the generation of revenue, their purpose
is to provide some defined set of responsibilities that are necessary to the
generation of revenue. Calculate the lost revenue by multiplying the number
of weeks the position is vacant by the average weekly revenue per employee.
Reduced loyalty and outright defections to competitor’s .It is clear that there
are massive costs associated with attrition or turnover and, while some of
these are not visible to the management reporting or budget system, they
are none the less real.
The approach to calculate attrition might vary from organization to
organization. While a few techniques are common, there are no proven
theories. The most commonly used formulae are:
Total Number of Resigns per month (Whether voluntary or
forced) X 100
 ---------------------------------------------------------------------------------
-----------------------
(Total Number of employees at the beginning of the month+ total
number of new joiners’ - total
number of resignations)

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Total Terminations in a month
 ---------------------------------------------------------------------------------
----------------------
(Total Head Count at the beginning of the month)
+ (Total New Hires)
Total No. of employee left X 100
 ---------------------------------------------------------------------------------
----------------------
Total No .Of employees present
Number of employee separations-involuntary separations X 100
 ---------------------------------------------------------------------------------
---------------------
*Average employee count
(*Avg. employee count = January month strength + December month strength)
 Typesofattritioncalculation
 Fresher attrition:

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The number of fresher’s who left within one year. It tells you
how many are using the company as a springboard.
 Infantmortality:
Percentage of people who left within one year. This indicates
the ease with which people adapt to the company.
 Critical resource attrition:
Key men exit.
 Low performance attrition:
Those who left due to poor performance.
 Impact of Attrition
Attrition normally brings decreased productivity. People leave causing others
to work harder. This contributes to more attrition, which contributes to
increasing costs, lower revenue. This often forces additional cost reductions
and austerity measures on an organization. This in turn makes working more
difficult, causing the best performers with the most external opportunities, to
leave.
 Direct impact:

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A high attrition indicates the failure on the company’s ability to set
effective HR priorities. Clients and business get affected and the
company’s internal strengths and weaknesses get highlighted. New hires
need to be constantly added, further costs in training them, getting
them aligned to the company culture, etc.,—all a challenge.
 Indirect impact:
Difficulty in the company in retaining remaining employees. Problem for
the company in attracting potential employees. Typically, high attrition
also leads to a chronic or systemic cycle—attrition brings decreased
productivity, people leave causing others to work harder and this
contributes to more attrition. All this has a significant impact on the
company’s strength in managing their business in a competitive
environment.
 Need to Curb Employee Turnover / Attrition
There are massive costs associated with attrition or turnover and, while some
of these are not visible to the management reporting or budget system, they
are none the less real. The attrition rate is an indicator of many things intrinsic
to the organization, and revealing it may affect it negatively. Attrition figure
has direct impact on stock markets, employee morale and customer

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confidence. There is too much at stake. Now is it just to reduce the turnover
costs? It’s not only the cost incurred by a company that emphasizes the need
of curbing employee turnover rates but also the need to retain talented
employees from getting poached…
This curbing in turn will benefit the organization in the following way:
 The Cost of Turnover –
The cost of employee turnover adds hundreds of thousands of money
to a company’s expenses. While it is difficult to fully calculate the cost of
turnover (including hiring costs, training costs and productivity loss),
industry experts often quote 25% of the average employee salary as a
conservative estimate.
 Loss of company Knowledge –
When an employee leaves, he takes with him valuable knowledge about
the company, customers, current projects and past history (sometimes to
competitors). Often much time and money has been spent on the
employee in expectation of a future return. When the employee leaves,
the investment is not realized.
 Interruption of customer Service –
When an employee leaves, he takes with him valuable knowledge
about the company, customers, current projects and past history

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(sometimes to competitors). Often much time and money has been
spent on the employee in expectation of a future return. When the
employee leaves, the investment is not realized.
 Turnover leadsto more turnover –
When an employee terminates, the effect is felt throughout the
organization. Co-workers are often required to pick up the slack. The
unspoken negativity often intensifies for the remaining staff.
 Goodwill of the company –
The goodwill of a company is maintained when the attrition rates are
low. Higher retention rates motivate potential employees to join the
organization.
 Regaining efficiency –
If an employee resigns, then good amount of time is lost in hiring a new
employee and then training him/her and this goes to the loss of the
company directly which many a times goes unnoticed. And even after
this you cannot assure us of the same efficiency from the new
employee.
OBJECTIVESOFTHE REPORT-

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The objective of any report holds its purpose for what its research is being
conducted , so the primary and secondary objectives for this report are as
follows –
Primary Objectives-
 To investigate and identify the various causes of
attrition in Insurance sector especially in BAJAJ ALLIANZ LIFE
INSURANCE COMPANY Ltd.
 To help in retention of such employees who attired
from BALIC .
Secondary objective-
 To study the concept of attrition
 To check satisfaction level of employees of BALIC.

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RESEARCH METHODOLOGY
Research Methodology is a systematic method of
discovering new facts or verifying old facts, their sequence, inter-relationship,
casual explanation and the natural laws which governs them. Research
Methodology explained by Redman and Mory are as follows systematized
effort to gain new knowledge Research Methodology is original contribution
to the existing stock of knowledge making for it advancement. It is the purist
of truth with the help of study.
Observation, comparison and experiment. In short also covers the systematic
method of finding solution to a problem is research. It also covers the
systematic approach concerning generalization and the formulation of the
theory. Different stages involved in research consists of enacting the problem,
formulating a hypothesis, collecting the facts or data, analyzing the facts and
reaching certain conclusion either in the form of solution towards the
concerned problem or in generalization for some theoretical formulation.

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In Research Methodology mainly Data plays an important role. The Data is
divided in two parts:
a) Primary Data.
b) Secondary Data.
PrimaryData –
Is the data, which is collected directly by direct personal interview, interview,
indirect oral investigation, Information received through local agents, drafting
a schedule, drafting a questionnaire, job portals.
Secondary Data -
Is the data, which is collected from the various books, magazine and material,
reports, etc. The data which is stored in the Organization and provide by the
HR people are also secondary data. The
various information is taken out regarding that subject as well other subject
from various sources and stored. The last years data stored can also be
secondary data. This data is kept for the internal use of the organization. The
HR manual is for the internal use of the organization they are secondary data
which help people to gain information.

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The well specified and identifiable group is known as a population, and
selected number of persons or objectives is known as a sample. Population
may be of two types ie; finite and infinite population.
 Finite population-
Is one where all the members can be easily counted .
 Infinite population –
Is one whose size is unlimited and therefore its members cannot
be counted.
 Sampleandsampling method -
Is a smaller representation of the population , it is any number of persons
selected to represent the population , according to some rules or plans .ON the
basis of sample sampling methods are identified which method to choose
generally there are two methods of sampling ie; probability sampling method
and non-probability sampling method.
The sampling method used in this project report is that clearly specifies the
probability or likelihood of inclusion of each and every element or individual in
the sample. Thus sampling technique used is the present project report is
SIMPLE RANDOM SAMPLING technique .
Some features of simple random sampling are as follows-

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 The size of the parent population or universe from which the sample is
to be taken must be known to the investigator.
 Each element or individual must have an equal chance of being included
in the subsequent sample.
 The desired sample size must be clearly specified.
The sampling method used in the present project is Random Sampling
Method.
In this method each and every individual have chances of being included.
Research methodology portion captures a unique blend of the possible
Causes of Attrition , in the industries , corporate houses ,and especially in the
insurance sector . In this process , the number of causes or variables which
directly or indirectly increases the rate of attrition and leads towards dump of
employee’s turnover debt were sorted out on the basis of those dimensions
or causes a well structured questionnaire was prepared named “ EMPLOYYEE
ATTRITION RATING SCALE” , the questionnaire had its two parts ie; first part
as closed – form questionnaire which was based on the dimensions sorted
down , consisting of thirteen statements and second part as open- ended
questionnaire which included suggestions provided by the attired employees ,
followed by the process of data collection by two sources ie; primary source
which included telephonic interview of exit employees and by secondary
source which included drawing information from the website of BALIC and
also by talking to the existing employees of BALIC to understand the current
problem across the insurance sectors .

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The variables which were identified to understand the causes of attrition and
exit in the fiscal year (2009-2010) in BALIC were the primary, and statistical
data provided by BALIC were divided into four basic areas of UP-2 region
which is based on the basis of -
 Division basis,
 Tenure basis ,
 Departmental basis,
 Monthly work basis .
The division basis basically includes the four regions of UP-2 ie ; Allahabad
Gorakhpur ,Jaunpur and Varanasi . The departmental basis included all its
sales and non-sales departments which marked attrition rate also including
exits on the tenure and monthly basis .
The variables identified to understand the causes of attrition are :-
1) Organizational Culture which includes in itself
a) Relationship with colleagues,
b) Leadership style,
c) Flow of communication.
2) Job Satisfaction which includes in itself
a) Work Motivation,
b) Stress.
3) Growth and Development which includes
a) Learning and development ,

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b) Growth prospects.
4) Work –Life balance.
The questionnaire was thus prepared by keeping these dimensions as basis
, then followed by the process of data collection with the help of
structured interview and thus data was recorded in standardized form on
the basis of Likert scale ie; 5-point rating scale ranging from strongly agree
to strongly disagree . The questionnaire was standardized by using Factor
Analysis method and then in order to draw conclusion the data was
interpreted and analyzed by using systematic statistical forms and also they
are represented with the help of charts and graphs.
Sample
 Population-
The wel identified and specified group is known as a population. It may
be of two types ie;
 Finite population-
Is one where all the members can be easily counted. Whereas
 Infinite population –
Is one where size is unlimited and therefore its members cannot
be counted.
In this report population is finite in nature and population size is
452.
 Sample-

25. 25
It is the representative of population which holds all the
characteristics of population .
Sample size of this research report is 117. Out of which it was
divided into three parts ie
 Cases of voluntary resignation - 91
 Cases of involuntary absconding -22
 Cases of involuntary termination -4
So our sample size is 91 as report is based on the cases of
resignation only
For the process of collecting data the structed interview was conducted
in which all the 13 statements where asked to the to the exited
employees and they were asked to reply on the basis of 5- point rating
scale ie; LIKERT SCALE and also subjective responses were provided by
them in the form of suggestions .after the process of data collection
these 13 statements where arranged accordingly on the basis of
dimensions. These 4 dimensions are as below-
 Organizational culture-
This dimesion includes in it some sub-dimensions :
 Relationship with colleagues including statement (10).
 Leadership styles including statements (2 , 12).
 Communication including statement (13)
 Job satisfaction –
It also includes some sub-dimensions along with it:

26. 26
 Work motivation including statements (1, 5, 6, )
 Stress including statements (7, 11).
 Work life balance which includes statements (3, 9).
 Growth & development –
It also includes some sub-dimensions along with it:
 Learning & development which includes statements (8).
 Growth prospects which includes statements (4).
After they were assembled together their average was taken out and thus
their data was also shown in the form of bar graph –

27. 27
0
0.5
1
1.5
2
2.5
3
Job Satisfaction Organizational
Culture
Growth &
Development
Work life
balance
averagescore
dimensions
Dimensions

28. 28
Measuring scale
Measuring scale taken for this project report is 5- point rating scale, ie; LIKERT SCALE .thus
the scale constructed with the title employee’s attrition rating scale:
STATEMENTS
strongly agree neutral disagree strongly
agree disagree
1. Were you clear about your role in
your job
2. Did you had harmonious
relationship with your boss.
3. Were you able to develop harmony
between
your personal & professional life .
4. Are there good growth prospects
for you in the organization.
5. Do you think that your knowledge
7 skill was
properly utilized .
6.Were you satisfied with the salary
provided to
you according to your job .
7. Were you demanded to work more
than what
was required out of your job .
8. Had you been provided enough
opportunities
for development through training

29. 29
programmers.
9. Did you had continuous hectic
work schedule
10. Did you had harmoious
relationship with your
colleagues at workplace.
11. Is work pressure main reason for
you to leave
organization .
12. Did you had autonomy of your
own self to take
decisions in your organization .
13. Were you able to communicate
directly to your
boss regarding your professional
problems.
Data interpretation
 EmployeesAttrition Rate in BALIC
After the detail Analysis of Attrition in context of meaning, Types, Calculation
of Attrition rate & impact of Higher Attrition on Organizational growth. Now
I am focusing on, why attrition rate is higher in Bajaj Allianz life insurance
Company Ltd.? And what are the main factors responsible for higher Attrition
rate.

30. 30
Data provided by the organization of exit employees of financial year2009-
2010 is as below-
 AttritionrateacrosstheDepartments/ChannelsforFY 2009-2010
PARTMENT TOTAL
EMPLOYEES
NEW
JOINERS
EXITS
EMPLOYEES
TOTAL
EMPLOYEES
AVERAGE
EMPLOYEES
Attrition %
ency 420 242 193 662 469% 41.15%
ernate 23 16 16 39 23% 69.57%
nc assurance 0 2 0 2 2% 0.00%
iness
curement 23 8 8 31 23% 34.78%
ect Marketing 262 45 201 307 106% 189.62%
ance 16 0 1 16 15% 6.67%
man Resource 2 0 0 2 2% 0.00%
ernal Audit 1 0 0 1 1% 0.00%
eration 46 6 2 52 50% 4.00%
newals 1 3 0 4 4% 0.00%
es
ministration 6 0 0 6 6% 0.00%
ategic Initiative 9 33 26 42 16% 162.50%
ining 12 4 3 16 13% 23.08%
gion Total 829 359 452 1188 736% 61.41%
 Total No. of Employees as on 1st April 2009 (Across The Department/ Channels)=
829
 Total No. of New Joiners (Across The Department/ Channels) =359
 Total No. of Exit Cases (Across The Department/ Channels)=452

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 Total Attrition Rate Of UP2 Region is 61.41%
 The Departments/ Channels having higher Attrition Rate (more than
100%) are Direct marketing Channel & Strategic Initiative Followed by
Alternate, Agency, And Business Procurement.
 Departments With zero Attrition /Exit are Bancassurance, Human
Resource, Internal Audit, Renewals and Sales & Administrative Thus I
excluded these Departments/ Channels for Further Exit Analysis.
 Departments/Channels having AttritionRate are-
Departments Attrition in %
Agency 41.15%
Alternate 69.57%
Bancassurance 0.00%
Business
Procurement
34.78%
Direct Marketing 189.62% (max.)
Finance 6.67%
Human Resource 0.00%
Internal Audit 0.00%
Operation 4.00%
Renewals 0.00%
Sales
Administration
0.00%
Strategic Initiative 162.50%
Training 23.08%
Region Total 61.41%

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 Highest Attrition-
 Directive Marketing-189.92%,
 Strategic Initiative -162.50%
 Alternate- 69.57%
 Agency-41.15%.
 Lowest Attrition-
 Operation - 4.00%,
 Finance- 6.67%
 Divisionwise attritionrate in BALIC for FY (2009-2010)
7% 12% 0%
6%
32%
1%0%
0%
1%
0%0%
27%
4% 10%
Department - Wise
Agency Alternate
Bancassurance Business Procurement
Direct Marketing Finance
Human Resource Internal Audit
Operation Renewals
Sales Administration Strategic Initiative
Training Region Total

33. 33
Divisions No. of
exits
Allahabad 1 23
Allahabad 2 34 (max.)
Azamgarh 14
Ballia 9 (min.)
Gorakhpur 1 26
Gorakhpur 2 18
Jaunpur 11
Mughalsarai 14
Varanasi 1 21
Varanasi 2 23
Total exits 196

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 Attrition on basis of tenure for FY (2009-2010)
12%
18%
7%5%
13%9%
6%
7%
11%
12%
Division - UP 2
Allahabad 1 Allahabad 2 Azamgarh Ballia
Gorakhpur 1 Gorakhpur 2 Jaunpur Mughalsarai
Varanasi 1 Varanasi 2
Tenure in
months
No.of
exits
0-1 month 35
(min.)
1.1-3
months
76
3.1-6
months
99
6.1-9
months
41
9.1-12
months
85
12 < months 116
(max.)
Total exits 452

35. 35
8%
17%
22%
9%
19%
25%
TenureWise
0-1 mnt 1.1-3 mnths 3.1-6 mnths
6.1-9 mnths 9.1-12 mnths 12 < mnths

36. 36
 Attritiononbasis ofMonth for FY (2009-2010)
Months No. Of Exits
April 09 22 (min.)
Aug. 09 47
Dec.09 28
Feb. 10 22 (min.)
Jan. 10 22 (min.)
July 09 61
June 09 62 (max.)
Mar. 10 27
May 10 58
Nov. 09 30
Oct. 09 43
Sep. 09 30
Total Exits 452

37. 37
Nature of exits
5% 10%
6%
5%
5%
13%
14%
6%
13%
7%
9% 7%
Month- Wise
9-Apr Aug. 09 Dec.09 Feb. 10 Jan. 10 9-Jul
9-Jun Mar. 10 10-May Nov. 09 Oct. 09 Sep. 09
Mode of exit Total
Involuntary -
 Absconding 66
 Termination 53
Involuntary total 119
Voluntary -
 Resignation 333
Voluntary total 333
Grand total 452

38. 38
Mode Of Exits
Now the data is being interpreted on
the basis of statement wise and dimension wise , so from here starts the
interpretation on basis of statements, data is also represented graphically-
 Statement 1-
Were you clear about your role in your job.
· Absconding
· Termination
Involuntary total
Voluntary -
· Resignation

39. 39
 Analysis –
Most of the employees rated 2 showing that to some extend
they do agree that they were clear about roles accepted from them to do.
Showing the average of 1.72
 Statement 2-
Did you had harmonious relationship with your boss.
 Analysis-
Mostly employees rated on 2 showing they slightly
agreed that their relationship with their boss was quite harmonious .
presenting the average score of 2.01.
0
1
2
3
4
5
6
0 20 40 60 80 100
5-pointRatigScale
No. Of Exit Employees
statement 1

40. 40
They replied with statements like
 They had very good relations with their colleagues and boss too. Some
responded totally different
 Some had their boss as their main reason to leave BALIC , he used to use
abusive language .
 Statement 3-
Were you able to develop harmony between your personal
and professional life
 Analysis-
Most of the employees rated their answers at 3 showing that
they had neutral response on this statement with the average score of 2.74.
0
1
2
3
4
5
6
0 20 40 60 80 100
5-pointRatingScale
No. Of Employees
Statement2

41. 41
They replied with the statements –
 If we are in the job so have to work hard so sometimes it happened that
were able and sometimes were not able to establish harmony , some replied
differently
 Few bosses give so much work pressure that it becomes tough to create
harmony.
 Statement 4-
Are there good growth prospects for you in the organization .
 Analysis –
Most of the employees agreed that there are very good growth
prospects for them in the organization, most of them rated at 2 followed by
1 showing their strongly agreed and agreed response , showing average
score of 2.21.
0
1
2
3
4
5
6
0 20 40 60 80 100
5-pointScale
No. Of Employees
Statement3

42. 42
They replied in statements like-
 I feel very proud of being part of BALIC , some replied
* Today I am whatever its just possible being part of BALIC.
* Statement 5-
Do you think that your knowledge and skill was properly
utilized.
 Analysis –
In this statement scores scattered more towards point 2 as
well to point 4 also, people showed different responses , some agreed that
their ability was utilized for best and some disagreed from this point ,showing
the average score of 2.26 they replied in different manner .
Individual statements came out as
 Yes I started as junior and resigned from the post of BDF. Few
responded totally in contrast way like,
0
1
2
3
4
5
6
0 20 40 60 80 100
5-pointScale
No. Of Employees
Statement 4

43. 43
 After having experience of 4 years I was posted as ASM but as per
requirement and experience I should be posted as SSM.
0
1
2
3
4
5
6
0 20 40 60 80 100
5-pointScale
No. Of Employees
Statement 5

44. 44
 Statement 6-
Were you satisfied with the salary provided to you according to
your job.
 Analysis –
In this area also variations are being shown people mostly rated
at 2 showing that they were satisfied but few were also there who were not
satisfied so left job , showing the average score 2.42 they gave statements as
follows ;
 Our boss used to cease checks of employees till they submit (full and
final) ,if they don’t submit then he don’t give salary.
 Salary was not satisfying but as incentives were high salary also goes
high. Some replied totally contrast as-
 Ya salary was quite good I was satisfied.
0
2
4
6
8
0 20 40 60 80 100
5-pontscale
No. Of Employees
Statement 6

45. 45
 Statement7-
Were you demanded to work more than what was required out
of your job.
 Analysis-
In this statement most of the employees agreed that they
were demanded to work more, showing the average score of 2.52 , giving
statements like
 If you are working so you will be required to work more, some replied
in other wat
 No not at al but ya in times of closing work load was increased .some
repied differently
 Boss used to shout dhandha karo dhandha any how
* Statement 8-
0
1
2
3
4
5
6
0 20 40 60 80 100
5-pointscale
No. Of Employees
Statement 7

46. 46
Had you been provided enough opportunities for development
through training programs.
 Analysis-
Mostly employees agreed that they were provided trainings but
beside that they also replied that level of training was not up to mark ,they
rated 2 and 3 in agreement that they were provided training , also showing
average score of 2.12 . they gave statements as following –
 It was only the formality of training it dint enhanced skills, some replied
 SMs should also be provided trainings and also our bosses be taught
managerial skills.
 In the experience of 4 years joined only two times.
0
1
2
3
4
5
6
0 20 40 60 80 100
5-pointscale
No. Of Employees
Statement 8

47. 47
 Statement 9-
Did you had continuous hectic work schedule
throughout.
 Analysis –
Most of the respondents responded on 3 followed by 2
slightly agreeing that they had hectic schedule , showing average score like
2.61 showing their work schedule to be tight. They gave statements like-
 Give at least time of one month to prepare IC report .
 Being employee in rural area it was not possible to give daily
attendance at office so being it main reason to leave BALIC.
0
1
2
3
4
5
6
0 20 40 60 80 100
5-pointScale
No. Of Employees
Statement 9

48. 48
 Statement 10-
Did you had harmonious relationship with your colleagues
at workplace.
 Analysis –
Most of the employees strongly agreed that their
relationship with their colleagues were very good rating at 1 followed by 2.
Scoring average score of 1.75 with statements like;
 We were very close to each other .
 We had very good relations like family
z
 Statement 11-
Is work pressure main reason for you to leave
organization.
0
1
2
3
4
5
6
0 20 40 60 80 100
5-pointratingscale
No. Of Employees
Statement10

49. 49
 Analysis –
Mostly employees varied in responses either extremely
agreed or disagreed for showing results that work pressure was main
reason for Sis or DMCs to leave BALIC , showing average score of 2.84.
 Statement 12-
Did you had autonomy of your own self to take decisions
in your organization.
 Analysis –
Mostly responses from employees are rated on 4 showing their that
they were not provided autonomy to take decisions of their own their
0
1
2
3
4
5
6
0 20 40 60 80 100
5-pointscale
No. Of Employees
Statemet11

50. 50
rating ranged from 4 followed by 3 and 2 , also showing average score
of 2.81 , they stated as ;
 Not at all , our boss used to treat us as dogs .
 Statement13-
Were you able to communicate directly to your boss
regarding your professional problems.
 Analysis –
Mostly employees rated at 1 followed 2 showing that they
were able to communicate their problems directly to their boss , also
showing the average score of 2.18 , they gave different statements like;
0
1
2
3
4
5
6
0 20 40 60 80 100
5-pointscale
No. Of Employees
Statement 12

51. 51
 Yeh I Used To Share Each And Every Either Personal Or Professional
Problem With My Boss.
0
1
2
3
4
5
6
0 20 40 60 80 100
5-pointscale
No. Of Employees
Statement 13

52. 52
Averagescores in form ofchart -
Now showing here the
representation of all 13 statements in a graph in the form of average scores
clearly representing their problem area of employees as their reason to leave
BALIC. On the basis of this chart it is clearly visualized that the different 13
items holds different value.
In the chart its clearly
shown that the statement 11 (is work pressure main reason for you to leave
0
0.5
1
1.5
2
2.5
3
Average
Statements
Statement-Wise

53. 53
organization.) with the average score of 2.85 which clearly shows that work
pressure is the main reason for most of the employees to leave organization ,
followed by statement 12 ( did you had autonomy of your own self to take
decisions in your organization) showing average score of 2.81 which shows
that leadership style can also be one of the causes to leave the organization,
in statement 3 ( were you able to develop harmony between your personal
and professional life ) also employees showed that they were not able to
develop harmony in their personal and professional life with the average
score of 2.74 .
On the flip side we find that the employees showed positive attitude towards
statements like 10 (did you had
Harmonious relationship with the colleagues at workplace ) , with the average
score of 1.71 they agreed positively that their relationship with their
colleagues was very good , followed by statement 1 ( were you clear about
your role in your job ) they agreed here also that their roles were clear to
them with the average score of 1.73
Interpretationon thebasisofdimensions
Here data will be interpreted on the
basis of 4 dimensions with its all sub dimensions .

54. 54
In this diagram its clearly shown
that the dimension of WORK LIFE BALANCE shows average score of 2.71 ,
which means that this dimension is most prominent where the employees are
dissatisfied , followed by the average score of 2.35 in the dimension of JOB
SATISFACTION with the average score of 2.82 in its sub dimension and
average score for statements 11 and 2.52 for the statement 7 which shows
that the employees felt more stressed and under pressure which can be the
main cause of their attrition from the organization .
On the other side we find that the
dimension of ORGANIZATIONAL CULTURE is the dimension where employees
0
0.5
1
1.5
2
2.5
3
Job Satisfaction
Organizational
Culture
Growth &
Development
Work life
balance
Dimension-Wise

55. 55
were more satisfied with the average score of 1.71 and in its sub dimension
i.e.; relationship with colleagues , here employees are more which can be
assumed that the employees are satisfied and happy in the area of
organizational culture but still one dimension of organization culture i.e.;
leadership style shows average score of 2.81 which tells that the relationship
with the boss is not as good and it can also be the cause of attrition for many
employees assuming that it could be cause of attrition .
0
0.5
1
1.5
2
2.5
3

56. 56
DISCUSSION
In this portion we will
find that each and every statement as well as dimension has been clearly
interpreted. In our project report we took four dimensions along with its sub
dimensions.
 Organizational Culture which includes in itself
a) Relationship with colleagues,
b) Leadership style,
c) Flow of communication.
 Job Satisfaction which includes in itself
d) Work Motivation,
e) Stress.
 Growth and Development which includes
f) Learning and development ,
g) Growth prospects.
 Work –Life balance.
In the same manner the four
dimensions were also randomized and scoring was done. WORK LIFE
BALANCE is the dimension where employees were more dissatisfied and it
could the cause of their attrition from the organization. As it being the
structured interview , process of collecting data in which detailed investigation
was done with the employees . Among those there was a case in which

57. 57
individual employee wanted leave from organization in emergency as his
sister was very serious and was hospitalized , he had to go urgently but he
was not provided leave so he left the organization. He said he don’t have any
grievances from the BALIC, among those their was another case in which the
employee needed some financial help from the boss as he was to pay money
for emergency operation of his wife but o help was provided to him so he
also left the organization.
As in dimension of job satisfaction it also
showed dissatisfaction, there are many cases in which employees showed
work pressure to be the main reason to resign or abscond. Among many
cases one case is being employee of Statistic Initiative his working area is in
Kaushambhi and working office is in Allahabad and reporting office in
Varanasi , so it becomes for hi hectic for him to report daily and daily
attendance was compulsory which was not possible for him to report daily ,
and many other employees left due to regulations of attendance. And many
other employees want that the time to prepare ICs should be provided
For 1 month .
In the dimension of
organizational culture leadership style is where employees were dissatisfied,
there are many cases among them few are. In many cases employees are

58. 58
satisfied and happy with BALIC but due to behavior of boss they had to leave
BALIC, in one case the boss was a main cause to leave organization .He used
to treat employees like dogs and uses slangs for employees as well as for
their family members .and also, provides no training and only shouts “Dhanda
karo Dhanda” and even used to cease checks of employees till they submit
(full and final )if in case they don’t give so he used to cease salary also. In one
case it was found that the BMs takes some amount of salary of SMs.
There was also one cause
which comes out after the analysis of detailed interview that employees
wanted the concept of psychological contract from the organization .
psychological contract is the unwritten contract between a employee and his
organization that if employee is doing something for the organization so
organization should also do something for the employee and vice versa. as
there are many cases where employees said in words –
 Company should give commitment to employees.
If company could not complete the commitment so should not give wrong
commitment , it downs the trust level .
Among such cases one case is that the individual was top-5 performer and he
was told that if you complete 50 policies within a month then you will be
promoted from SM to SSM but his commitment was not completed and he

59. 59
was promoted to the post of ASM by saying that your performance was not
good .
On the flip side the dimension
of organizational dimension i.e., its sub dimension Relationship with
colleagues was very good and they had very good and familiar relationship
with each other .

60. 60
Limitations
Here in this
portion it includes all the limitations which all were faced while conducting
the interview , they are as follows –
 As it being structured interview not to create biases as a result of
fatigues we were not allowed to include ore sentences.
 We were bounded due to length of questionnaire to include dimensions
like psychological contract and emotional labour.
 Random sampling failed as we were not able to contact all the
employees due to unavailability of their contact numbers.
 Data obtained could not be generalized to all Insurance sector.
 Contact was made only to front line managers .
 In such kind of survey its very difficult to get 100% correct responses as
individuals can attribute to organization for his/her failure.
 Some individuals were not able to understand each and every
statements in questionnaire.
 Misinterpretation of the concept of statements.
 Due to busy and hectic schedule few gave fake responses.
 Individual differences in the collection of data.

61. 61
Conclusion
One of the biggest asset of
any industry or organization is its manpower. As this organization BALIC
deals in Insurance sector , so its main power is manpower to launch new
products , introduce to customers and even to attract the customers towards
our products .
Insurance sector is facing
high attrition rate because the rate at which its loosing its employees is just
the double of the rate at which they hire . in today’s scenario where
companies are fighting to combat global business competitions , and
struggling to survive , employee turnover becomes as double.
In today’s knowledge
economy, managing human resources has been the most difficult task
undertaking the project at BALIC I have learned about company induction,
attrition and causes of attrition that would not been learned in books ,
because causes keeps on changing from organization to organization.
This is not possible for any
organization to vanish the attrition rate for any organization but human
resources are taking steps to reduce the attrition rate. The project captures

62. 62
the unique blend of causes of attrition for organizations especially in
Insurance sector with reduction in dumb of employee turnover debt.
In the end of the project it
lies the main cause of attrition in BALIC in the form of pie-charts and bar-
graphs and I received in very professional manner from BALIC , Varanasi . The
learning experience I got during my entire project work will really help me in
my career throughout my life
With this from here I am
concluding y project report.

63. 63
Recommendations
Some recommendations which are
provided on the basis of the suggestions given by attired employees, they
are –
 Provide 1 month time to prepare ICs.
 Remove top-up policies.
 Give salaries in the hands of SMs and not in the hands of BMs.
 Should complete the psychological contacts of the employees , if the
organization provides.
 Daily attendance must be removed.
 Try to know the problems of ISOs and call them back as many still want
to rejoin the BALIC.
 Need to advertise in rural areas .
 Enhance growth prospects for statistic Initiatives.
 Provide managerial skills to the managers , as they are just promoted on
the basis of experience but they lack in possessing managerial skills.
 Enhance policies for grow of BALIC in rural areas and establish more
branches.
 Remove the concept of LG.

64. 64
 Focus on rate of resignation in Sultanpur.
 Improve the level of training provided to the employees.

65. 65
References
*
* Books-
 “Human Resources in a Globally Competitive Business
Environment”, Wayne F. Cascio, Managing Human Resource, Tata
Mc Craw Hill Edition, pp: 26-29.
 Tests ,measurement and research methods in Behavioral sciences,
A.K.SINGH, 5th
edition , Bharti Bhawan.
 Fundamentals of Human Resource Management , Decenzo D.A. &
Robbins Stephen P. , eighth edition, Wiley India 2009.
 Organizational Behavior , Lthans Fred , 11th
edition , McGRAW
HILL International Edition .
 Training Instruments in HRD and OD, Pareek Udai,
 Communication in Organization , Fisher D. 2nd
Edition ,JAICO
Publishing house, 2007.
 garrett
* Websites-
 www.google.com

66. 66
 www.wikkepedia.com
 www.balic.co.in
 www.bajajauto.com
 www.bajajallianzlife.co.in