Hr project

A
Project on
Employee Attrition and Retention at Protiviti
Master of Business Administration
(Human Resource Management)
Submitted in partial fulfillment of the requirements for
award of
Masters of Business administration
Tilak Maharashtra University, Pune.

Submitted By
Razina Bakhshi

PRN NO: 07209007836
Ansal Institute of Technology,
Gurgaon

Guided by Ms. Pooja Sareen
Tilak Maharashtra University
Gultekdi, Pune – 411037

1

Tilak Maharashtra University, Pune
(Deemed Under Section 3 of UGC Act 1956 Vide Notification

No. F.9-19/85-U3 dated 24th April 1987 By the Government of India)

Vidhyapeeth Bhavan, Gultekdi, Pune-411037

CERTIFICATE

This is to Certify that the project titled
__________________________________ is a bonafide work
carried our by Mr./ Ms. ____________________________ a
student of Master of Business Administration Semester 3rd, Specialization
____________________PRN.__________________ under Tilak
Maharashtra University, in the year 2010.

Head of the Department Examiner Examiner
Internal External
Date:
Place: University

2

ACKNOWLEDGEMENTS

I take this opportunity to express my sincere and heartfelt gratitude towards Ms
Bhawana Pandey, Head HR, Protiviti for giving me the opportunity to complete my training at
Protiviti., her contribution has been outstanding, in regards to invaluable advice on all aspects of
the project. She stood as an embodiment of inspiration during my entire project within the
company. I am also thankful to her for showing confidence in me and providing this opportunity.

I also express my gratitude to Faculty Mentor, Ms. Pooja Sareen, Faculty of
Management, under whose guidance I completed this project. She imparted her knowledge and
guidance to me in the field of Human Resource and her support throughout my project
completion. Her guidance and active support has made it possible to complete the assignment.

I would also like to express my thanks to Prof. R.K Yadav, Dean,Center of corporate Relation,
Ansal Institute of technology for giving me an opportunity to gain practical knowledge about
corporate working through this project.

Lastly special thanks to my family members for being extremely supportive during my training
period.

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INDEX

1. RATIONALE OF THE STUDY…………………………………5

2. OBJECTIVE OF THE STUDY………………………………….8
• TITLE OF THE PROJECT
• OBJECTIVE OF THE STUDY
• SCOPE OF THE STUDY

3. COMPANY PROFILE…………………………………………..10

4. REVIEW OF LITERATURE…………………………………..18

5. RESEARCH METHODOLOGY……………………………….29
• RESEARCH DESIGN
• DATA COLLECTION METHODS
• SAMPLING PLAN

6. DATA ANALYSIS & INTERPRETATION……………………33

7. FINDINGS……………………………………………………….60

8. LIMITATIONS………………………………………………….62

9. RECOMMENDATIONS AND
SUGGESTION…………………………………………………….64

4

APPENDIX

CHAPTER 1
RATionAlE of
THE sTudy

5

Attrition is a universal phenomenon and no industry is devoid of it, but the degree fluctuates
from industry to industry on the basis of their capacity to manage low attrition rate. Attrition not
only affects the quality of service, but also leads to increased expenditure on training and
development, thereby affecting the overall organizational performance. Several companies are
trying out different ways to manage low attrition rate. Be it an IT sector, or BPO, they are trying
out their ways to manage lower rate of attrition by creating a healthy work environment, work-
life balance, corporate brand building and so on.

There is a famous Chinese proverb which says that
“If you want returns for 1 year, invest in crops.”
“If you want returns for 10 years, invest in trees.”
“But if you want returns for 100 years, invest in people”

Yes, it is the people who hold key to success in today’s highly competitive world. With
increasing attrition levels, it is necessary to have creative retention strategies.

“PEOPLE” is the most important and valuable resource every organization has in the form of its
employees. Dynamic people can make dynamic organizations. Effective employees can
contribute to the effectiveness of the organization Competent and motivated people can make
things happen and enable an organization to achieve its goals.

Organizations like Protiviti have now started realizing that the systematic attention to human
resources is the only way to increase organizational efficiency in terms productivity, quality,
profits and better customer orientation.

HR can help deliver organizational excellence by focusing on learning, quality, teamwork, and
through various employee friendly strategies.

Call it short-sightedness, but the fact is that the country's professionals, between 21 and 30, join
consultancy industry today and quit, in a few weeks to join another. There's a backlog of projects
in most departments as the employers lose their employee base. But what causes this high rate of
employee turn-over in consultancies? What are the reasons behind this rapid erosion of loyalty
factor? Should this be left untouched and unanswered? Can anything be done about it? We are
trying to find out solutions to all the above questions.

Staff attrition (or turnover) represents significant costs to most organizations. It is odd, therefore,
that many organizations neither measure such costs nor have targets or plans to reduce them.

6

Many organizations appear to accept them as part of the cost of doing business - a sign of
increasing job mobility and decreasing staff loyalty perhaps, a matter to be regretted but just 'one
of those things.' They add a sum in their budgets for 'temp staff' and 'recruitment' and forget
about it.

However, it seems to be one of the areas in which HR can make a difference - and one that can
be measured in quantifiable, financial terms against targets.

An attrition rate in consultant Industry has become legendary. Indeed, the attrition rates in some
Indian consultancies now reach 70%. This is an extreme figure but the average attrition rates in
Indian consultancies are up around 30-40%.

Today with a lot of MNC’s coming in India, the amount of competition has increased to such an
extent that organizations have further aggrieved their stress on proper man management. Along
with being competitive, the MNC’s have brought in a systematic approach to HR with the help
of technology utilization.

This project has been accomplished in one of such MNC’s – Protiviti A global consulting and
internal audit firm specializing in risk and advisory services. Protiviti was facing a high rate of
attrition especially as the industry is recovering from downturn. Employees are coming across a
lot of job opportunities which tempt them to give a second thought to switching over a new job.
Hence my study in protiviti gurgaon gave me an opportunity to understand attrition trend and
reasons why employees leave an organization even though organizations put a lot of effort to
retain them in the organization. Hence this fact motivated me to analyze measures which could
be taken and are being taken to maintain the loyalty of employees towards organization.

Therefore the overall purpose of this research report is to assess the gap between expectations
and experiences, from the employee perspective.

7

CHAPTER 2
objECTivE of
THE
sTudy

8

Title of the Project

Employee Attrition and Retention at Protiviti

Objective of the Project

• To evaluate the present level of attrition by highlighting the formulae used by
organization in calculating attrition rate

• Critically analyze the causes and consequences of employee attrition.

• To recommend measures so has to enhance the level of retention after analyze.

Scope of the Study
To study tools and technology used by Protiviti to calculate attrition rate and tool and techniques
used by organization for retaining its employees. The purpose of this study is to examine, at the
firm level, variables that have been linked to employee turnover in micro level investigations.
Four categories of variables are considered:

• firm characteristics,

• firm setting,

• work force characteristics, and

• benefit practices

10

Thus, at Protiviti the issue is to analyze the attrition trend and the measures which can be taken
by the organization to deal with the problem. The study was conducted in all the different
departments of protiviti randomly selecting 50 employees to get an overview of the reasons of
attrition.

CHAPTER 3
PRofilE of THE
ComPAny

11

Protiviti

Protiviti is a global consulting and internal audit firm specializing in risk and advisory services.
Protiviti customers are in the areas of finance, operations, technology, litigation, and governance,
risk and compliance. Protiviti has offices in 61 major markets, with 33 in the United States and
28 in the Americas, Asia-Pacific and Europe. The firm also has risk consulting partnerships with
firms in Abu Dhabi, Caracas, Dubai, Jakarta, Kuwait and Lima.

History
The company was established in 2002 when Robert Half International, Inc. agreed to hire
approximately 800 workers formerly with Arthur Andersen LLP, including more than 50
individuals who had been Partners at Andersen. These workers had been affiliated with the
internal audit and business risk consulting practices of Andersen, which were operated separately
from Andersen’s attestation and external audit services. These employees formed the base of
Protiviti. As of today protiviti Inc has more than 2900 professionals based in more than 60
offices worldwide providing on location services, technologies and skills to clients all over the
world.

Protiviti is a wholly owned subsidiary of Protiviti Inc. in India. The Parent company of protiviti
Inc. is Robert Half International Inc.(RHI)

RHI was founded in 1948 and is the world’s first and largest specialized staffing firm. It is also a
recognized leader in professional staffing and consulting services. RHI is listed on the New York
Stock Exchange.

Protiviti Inc is a company incorporated in USA. As a wholly owned subsidiary of RHI, Protiviti
Inc has grown to become the leading international provider of independent internal audit,
business and technology risk consulting services. Protiviti Inc help companies worldwide
identify manage and measure operational and technology risks they face within their industries
and throughout their system and processes. The firm also offers a full spectrum of internal audit
services, technologies and skills for business risk management and continual transformation of
internal audit functions.

13

Protiviti has dedicated itself to combine Protiviti Inc’s project management skills and internal
audit experience with RHI’s proven expertise in specialized staffing with the view to providing
clients in Asia with process and technology improvement options never before available in the
world of traditional internal audit services. Protiviti also aims to help clients in Asia Seize new
opportunities for growth and profitability through effective risk management.

Branding
The name of the company is a coined term that supposedly communicates the “key brand
attributes” - professionalism and proactivity as well as independence and integrity. The unique
spelling with three "i's" represents "Independence," which is perhaps the most important
concept.”

Services
Protiviti services provide “the necessary business process, technology and specialized skills to
address challenges related to financial and operational risk management; technology risk
management and effectiveness; GRC; and litigation, investigations, turnaround and
restructuring.”

These solutions include:

• Finance & Accounting Excellence
• Risk & Compliance

• Internal Audit & Financial Controls

• Litigation, Restructuring & Investigative Services

• Cost & Working Capital Optimization

• Information Technology Effectiveness & Control

Protiviti also serves clients in the following industries:

• Consumer Products & Retail

14

• Energy & Utilities

• Financial Services & Real Estate

• Healthcare & Life Sciences

• Manufacturing, Distribution & Technology

• Hospitality

• Communications

• Public Services

Acquisitions: Millstones in the successful growth of Protiviti
2005

Protiviti acquired the Lender Advisory Services (LAS) practice from “RSM McGladrey” and
integrated it into its Credit Risk practice.

2006

Protiviti acquired Canada-based Creative Options and Radius, two companies that specialized in
the retail sector with a focus on loss prevention and employee awareness and training programs.

Protiviti acquired P.G. Lewis & Associates LLC, a data forensics firm specializing in corporate
investigations and litigation support.

Protiviti announced that it had consolidated its public sector operations into a wholly owned
subsidiary, Protiviti Government Services, Inc., and that this subsidiary had acquired “Enspier
Technologies, Inc.”, a company providing technology and management consulting services
primarily to government organizations.

2007

Protiviti acquired PENTA Advisory Services, LLC, whose specialties included restructuring and
insolvency services, litigation services, and bankruptcy-related tax and accounting.

15

Clientele

The firm’s clients include more than 35 percent of all FORTUNE 100 companies, more than 25
percent of all FORTUNE 500 companies and more than 20 percent of all FORTUNE 1000
companies.

Protiviti Offices are located worldwide:
• United States

• Asia Pacific

• Europe

Affiliations and Collaborations

16

A

..

.

Mission Statement
Protiviti’s mission statement is to constantly improve how business manages risk.

Vision
Protiviti’s vision is to be recognized as the premier global risk consulting and internal audit
service company.

Protiviti Core Values

• Professionalism:
To be highly competent, honest, considerate, organized, polished and polite.

• Productivity:

17

Protiviti gets things done and have a bias for action.

• Proactivity:
They seek new opportunities to add value, make a difference, meet and exceed client
needs.

• Objectivity:
Protiviti consider multiple viewpoints before acting or deciding.

• Creativity:
Unconstrained but reasoned thinking.

• Integrity:
Protiviti Believe in doing the right thing even if it may compromise our short term
profitability.

Recognition:
Protiviti Awards (United States)

National

 Recognized by The Black Collegian as one of the “Top 100 Employers for the Class of
2009” (2009)
 Recognized by Business Week for three consecutive years as one of the "Best Places to
Launch a Career" (2006-2008)

 Recognized by Business Week as a company offering one of the "50 Best Internships"
(2007)

Regional

 Named one of the “25 Best Places to Work” by Baltimore Magazine (2009)

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 Named a "Best Place to Work in Los Angeles" by the Los Angeles Business Journal
(2008)

 Named one of "Chicago's 101 Best and Brightest Companies to Work For" by the
National Association for Business Resources (2008)

 Named a "Best Place to Work in Houston" by the Houston Business Journal for two
consecutive years (2007 & 2008)

 Named a "Best Place to Work in Tampa Bay" by the Tampa Bay Business Journal for
two consecutive years (2007 & 2008)

 Named a “Best Place to Work in South Florida” by the South Florida Business Journal
(2008)

 Received an "Honorable Mention" in the Phoenix Business Journal’s "Best Places to
Work in the Valley" contest (2007)

 Named a “Best Place to Work in Western Pennsylvania” by the Pittsburgh Business
Times (2007)

 Named a “Best Place to Work in Dallas” by the Dallas Business Journal (2006)

Hierarchical Model of Protiviti

19

CHAPTER 4

REviEw of
liTERATuRE

21

This chapter reviews literature relevant to the research objectives. It specifies the abstracts of
research conducted by eminent researchers with regards to the same topic.

Cotton & Tuttle(1986),in their book “Employee Turnover –A meta analysis and review”
presented a review on turnover at the individual- or job-level analysis, examining the cognitive
processes that precede a jobholder's decision to leave a firm at the firm level, has been typically
examined the dysfunctional consequences of turnover, particularly its costs for employers. But
Dalton, Krackhardt, & Porter (1981) in their book “Research in Organization behavior” have
argued that some employee attrition is functional (e.g.,; Dalton & Todor, 1979, 1982). They
reason that employees who quit because of a recognized lack of fit between their abilities and job
demands save managers and firms from further investment in efforts to provide training.
Moreover, more costly senior employees can be replaced with less expensive, albeit often less
experienced, junior employees.

Dalton, Krackhardt, & Porter further states that regardless of the reason, turnover clearly is
consequential for organizations. It has been suggested that some solutions to problematic
turnover may be linked to the manipulation of organizationally controlled variables. Further,
turnover can be conceptualized as a behavior that is embedded in the context of a firm and its
environment, indicating that an understanding of context is critical to an understanding of the
behavior. Thus an argument can be made for the importance of examining turnover as a firm-
level variable. There are, however, few published studies that take such a perspective. This void
has been previously identified by Baron and Bielby (1980), in their paper presentation “Structure
and opportunity” presented at Academy of management annual meeting at Stanford University
who argue that firm-level research provides the necessary bridge between investigations
conducted at an economic or industrial sector unit of analysis and research at the job or
individual level. Recently, Cappelli and Sherer (1991) in a research conducted on “ A firm level
analysis of attrition” made a similar argument, suggesting that there has been little success in the
past decade at building bridges between macro- and micro levels of analysis.

Employees today are different. They are not the ones who don’t have good opportunities in hand.
As soon as they feel dissatisfied with the current employer or the job, they switch over to the
next job. It is the responsibility of the employer to retain their best employees.

22

“Any attrition in any form is bad for an organization. It means that a wrong choice was made at
the beginning" says NR Ganti Chairman and MD, SQL Star International.

Studies from the Gallup organization (2009) show that employees who have an above-average
attitude toward their work will generate 38 percent higher customer satisfaction scores, 22
percent higher productivity, and 27 percent higher profits for their companies.

High attrition implies that certain necessary skills are vulnerable or are not present due to
employees being lost" says Vikram Bhardwaj, Managing Director, Redileon

A survey from NAUKRI says, Employees do not leave an organization without any significant
reason. There are certain circumstances that lead to their leaving the organization. The most
common reasons can be:

 Job is not what the employee expected to be

 Job and person mismatch

 No growth opportunities

 Lack of appreciation

 Lack of trust and support in coworkers, seniors and management

 Stress from overwork and work life imbalance

 Compensation

 New job offer

According to a survey conducted by Greg Weiss, who is an HR consultant and principal of
Human Management, in extensive interviews with HR directors at 30 companies found that most
companies have little real understanding of why employees leave. The statistics of his survey are
as given below to understanding the importance of various reasons for exit.

Reason for exit % of respondents
Employee 08.03%
Supervisor or line manager 38.15%

23

Compensation & Job Profile 53.82%

Present Scenario of Attrition trend

The recovery of the economy after the recent global recession has not only put the Indian
consultancy industry on the path of fast growth, but also led to a high rate of attrition. As
employees discontent with their pay pack are seeking greener pastures, most consulting firms are
forced to launch a fresh recruitment drive to fill in the vacancies as well as enhance their
workforce in the face of increased demands for their services globally.

ABC Consultants CEO, Shiv Agarwal said that the trend was first noticed when the economy
began to recover from the worst ever global recession that plagued the world for two years, as
professionals were seeking big leaps in their career. Employees are changing jobs because they
feel that they have not been treated well by their companies during the recent economic slump.

Consultants and HR directors alike agree that attrition rates in the consulting industry are likely
to worsen in 2010-2011, according to the latest in-depth industry survey from Top
Consultant.com

Top-Consultant.com director Tony Restell commented: "These staff loss figures explain why
recruitment has become the number one issue for consulting firms. Most major brands are
winning work at fee rates that are far less profitable than during the last consulting boom. This
has meant they've been unable to reward staff across the board with major pay rises and sizeable
bonuses. The knock-on effect of this is that many consultants are now seeing a move to a
competitor as the most likely way to enhance their earnings in the coming year. Most are not
leaving the industry altogether – simply moving from one consulting employer to another. But
the implication for consulting firms is that they need to hire 15%-20% of their existing
headcount over the next year, just to stand still."

24

Consultancy Industry is the backbone of the corporate world and provides a host of services,
from auditing to business and tax advisory.
With Indian economy growing fast, business is flourishing for professional services firms like
KPMG, PricewaterhouseCoopers (PwC), Ernst & Young and Deloitte, leading to scramble and
in turn poaching for experienced professionals, with huge bonuses and lucrative promotions.

Conceptual Understanding:
WHAT IS ATTRITION?

Attrition has been a major concern for most of the companies in the current competitive scenario.

The word Attrition means, a reduction in the number of employees through resignation or
separation at the employees will. Retirement, VRS and employee leaving due to end of contract
are not considered as attrition.

Attrition rate is the rate of shrinkage in size or number. It is the mathematical representation of
the attrition in a particular organization or an institution.

Attrition leads to dual loss to an organization:

• Firstly, company loses on a talent and thus costs incurred on them are a waste.

• Secondly it employees a new employee and thus needs to incur costs on them.

Cost Incurred due to attrition
Thus the following costs:

A. Recruitment cost

B. Training and development cost

C. Administration cost

Types of Attrition

• Market Driven

25

Based on the demand for a particular skill. The typical initial reaction by employers 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
On the actual capacity to perform the work required. This is when there are not enough of
the people.

• Process Driven
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 always will be
there. Addressing this scenario produces the most lasting results.

ATTRITION AT PROTIVITI:
Protiviti is an internal audit and risk consulting firm and thus attrition is a major concern. As
very well known, salary has always been a major issue in almost all the sectors. But apart from
the salary issues there are many reasons why people resign. Some of these are

1. 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.
2. 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

3. 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.

4. 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. Can you share details about how they have been compensated?

26

5. Perceived equity of reward systems is low. Like it or not, employees discuss salary details
and if there is any perceived lack of equity then you have an issue !

6. 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.

In order to understand the reasons for attrition at Protiviti a classification of the data is done and
represented in the form of various tables and charts.

The following data shows the attrition trend at Protiviti

Attrition Analysis (Level Wise)
Number of Leavers in 2010 by Position

Job Title No of people Total no of people Attrition % level
left wise
Senior Consultant 4 20 3.1%
Consultant In charge 11 28 8.5%
Consultant 5 28 3.8%
Support 2 16 1.5%
RTS 4 15 3.1%
Grand Total 26 107

Analysis:

42.30% of all leavers are at consultant In charge level. They however have the second longest
average of length of service. This indicates that there is a thrust for speedy growth in terms of
level of designation from consultant in charge to senior.

X axis represents no of employees who left organization

Y axis represents designation of employees who left organization

27

12

10

8

6

4

2

0
senior consultant consultant incharge consultant supprt RTS

Attrition Analysis – (Tenure wise)

No of leavers in 2010 by tenure

28

Range(mths) No of ppl left Average
experience
0-6 8 2.227
6-12 8 0.82
12-18 6 0.61
18-24 5 1.4
24-30 1 0
Total 28

Analysis:
Highest no of people left between the work tenure of 1year.

Since they were at the initial level of their career and had an average experience of 1.52 years.
This may indicate that employees were motivated to take other job offers which they would have

29

felt may provide them with better growth and compensation.

Attrition Analysis – (Location wise)
No of leavers in 2010 by Location

Location No of people Left Attrition%
Gurgaon 18 13.9%
Mumbai 11 8.5%
Bangalore 1 .77%

Analysis
Gurgaon showed the highest attrition rate of 13.9% while Bangalore showed the lowest with
0.77%. This factor may indicate that employees were dissatisfied with the working condition or

30

the compensation packages because none of them were relocated while all of them gave
resignations.

X axis represents No of employees

Y axis represents location

Monthly Attrition Rate
Leavers in 2010(Month wise)

Month No of employees Attrition%
January 2 1.5%
February 5 3.87%
March 9 6.9%
April 11 8.52%
May 2 1.55%
Total 29

Analysis

31

Protiviti experienced a gradual increase in attrition rate with 1.5% in the month of January till
April with 8.52%.But later in the month of may it again experienced a decrease in attrition rate
with 1.55%

12

10

8

6

4

2

0
Jan Feb March Apl May

Calculation of attrition Rate of Protiviti for 2010

Formula used by the organization

No of resignations / (Employee strength at the start of period +new joiners-
resignations)

No of resignations=31

No of present employees=129
32

Hence

Attrition Rate = 31/129*100

=24.03%

CHAPTER 5
33

REsEARCH
mETHodology

34

Research Process
Review of Literature

Research Concepts
and Theories
Define
Formulate Design Research
Research (Including
Review previous Hypothesis
Problem sample design)
research findings

FF
Analyze data
(Test
Interpret hypothesis if Collect Data
and report any)

• FF: Feedback

35

Research Methodology:
It is a way to systematically solve the research problem. It may be understood as a science of
studying how research is carried on. It is we study the various steps that are generally adopted
by a researcher in studying his research problem along with the logic behind it. Hence I used
Qualitative and Quantitative approach. where qualitative approach gave me freedom to analyze
the attrition data of the company quantitatively while Qualitative approach helped in assessment
of attitude, opinion and behavior of employees.

Research Design
This study is an exploratory research, which is an attempt to provide insights into attrition trends
and practices followed at protiviti, Gurgaon. The study is basically an analysis of the employee
attrition and measures adopted to retain them in the organization. In this study representatives of
employees working in different departments have been selected randomly.

Data Collection Methods:
The study relies on both primary and secondary data i.e. data collected afresh is referred to as
the primary data and secondary data thereby meaning reviewing literature and data already
available on the subject.

PRIMARY DATA:
The source of data collection was a questionnaire (for the primary data). The data was collected
by using structured questionnaires as well as interviewing the representatives from the
employees.

Primary data was collected from the consultants, Consultant Incharge & support ie HR, Finance
and administration department with a help of a survey was conducted among 50 employees using
hypothetical statements.

SECONDARY DATA:

36

The secondary data was collected from the organizations manuals, journals, books and
brochures. For the theoretical overview various books on Employee Attrition & Retention were
consulted. Internet has played a major role in finding facts related to the study of the project.

Data Analysis:

The response gathered by interacting with each respondent through questionnaires was then
tabulated in the form of raw data chart i.e. through Bar Graphs and then the data was analyzed on
the basis of which the interpretations were made.

After analyzing the interpretations the relevant findings and recommendations were arrived at.

Sampling Plan:

This project is based on random sampling. In this project the respondents as well as the
Departments from where the samples were to be selected were chosen in such a manner so as to
ensure that collection of the data could be as effective and efficient as possible. For the same I
decided to pick representatives from all Departments to cover as many people for the research
ensuring that the results therefore achieved would be appropriate and accurate.

• Sampling Unit: Employees of Protiviti.
• Sample Size : 50.
• Sample Method: Random Sampling.
• Sample Place : Protiviti, Gurgaon.
• Target Group: All non managerial staff ie consultants who can project the
accurate picture of consultancy industry

The scope of the project extends to all the employees at Protiviti Gurgaon.

37

CHAPTER 6
dATA AnAlysis
And
inTERPRETATion
s

38

Statement 1
Employees give maximum importance to compensation package in their job

H0: There is no significant difference in respondent’s opinion regarding compensation
packages.

40

Respondents opinion and Expected opinion regarding significance of compensation in
employees job

Column

1 2 3 Total

Row 1 Respondents
0 0 1 1
opinion

Expected Opinion .2 .3 .4 1.0

2 Respondents
0 0 2 2
opinion


3 Respondents
3 7 5 15
opinion

Expected Opinion 3.3 5.1 6.6 15.0

4 Respondents
8 6 9 23
opinion


5 Respondents
0 4 5 9
opinion


Total 11 17 22 50

11.0 17.0 22.0 50.0

Degree of

Value Freedom Asymp. Sig. (2-sided)

Pearson Chi-Square 9.739a 8 .284

41

employees job

Column

1 2 3 Total

Row 1 Respondents
0 0 1 1
opinion


2 Respondents
0 0 2 2
opinion


3 Respondents
3 7 5 15
opinion


4 Respondents
8 6 9 23
opinion


5 Respondents
0 4 5 9
opinion


Total 11 17 22 50

11.0 17.0 22.0 50.0

Degree of



42

employees job

Column

1 2 3 Total

Row 1 Respondents
0 0 1 1
opinion


2 Respondents
0 0 2 2
opinion


3 Respondents
3 7 5 15
opinion


4 Respondents
8 6 9 23
opinion


5 Respondents
0 4 5 9
opinion


Total 11 17 22 50

11.0 17.0 22.0 50.0

Degree of



43

INTERPRETATION

The Calculated chi square value is 9.739

Significance value is 0.284

Significance Level is 0.05

Above analysis depicts that significance value calculated through SPSS is higher than
significance level thus hypothesis is accepted.

This depicts that there wasn’t a significance difference in the opinion of the respondents
regarding compensation packages.

Statement 2
Too much travelling and eager to pursue higher education may be a significant reason for
higher rate of attrition

H0: There are no significant differences in the opinion of the employees that too much
travelling and pursuing of higher education is a reason for higher rate of attrition.

44

Respondents opinion and expected opinion regarding too much travelling and higher education a
reason for attrition

Column

1 2 3 Total

Row 1 Respondents opinion 0 0 1 1


2 Respondents opinion 0 1 3 4








Total 18 18 14 50

18.0 18.0 14.0 50.0

45

Chi-Square Tests

Value df Asymp. Sig. (2-sided)


N of Valid Cases 50

a. 10 cells (66.7%) have expected count less than 5. The minimum expected count is .28.

INTERPRETATION:




Above analysis depicts that significance value obtained through SPSS is higher than significance
level thus hypothesis is accepted.

This depicts that there wasn’t a significance difference in the opinion of the respondents
regarding too much travelling and higher education is a cause of higher attrition.

46

Statement 3
Lack of appreciation/ recognition may trigger an employee’s decision to leave.

H0: There is not a significant difference in the opinion of the employees that lack of
recognition may trigger an employee’s decision to leave.

Respondents opinion and expected opinion that lack of recognition may trigger an employee’s
decision to leave

Column

1 2 3 Total

Row 2 Respondents
0 1 4 5
opinion


3 Respondents
2 5 6 13
opinion


4 Respondents
13 3 3 19
opinion


5 Respondents
8 3 1 12
opinion


Total Respondents
23 12 14 49
opinion


47

Chi-Square Tests

Value Df Asymp. Sig. (2-sided)


N of Valid Cases 50

a. 8 cells (66.7%) have expected count less than 5. The minimum expected count is 1.22.

INTERPRETATION:




Above analysis depicts that significance value obtained through SPSS is less than significance
level thus hypothesis is rejected.

This depicts that there was a significance difference in the opinion of the respondents regarding
too much travelling and higher education is a cause of higher attrition.

Statement 4
Quality of supervision received by employees in the organization was “Good”

48

H0: There was not a significant difference in the opinion of the respondents regarding the
statement quality of supervision offered by organization.

Respondent’s opinion and expected opinion regarding quality of supervision received by
employees in organization

Row 1 Respondents
0 0 1 1
opinion


2 Respondents
0 1 2 3
opinion

Expected Opinion .4 1.2 1.5 3.0

3 Respondents
2 5 12 19
opinion


4 Respondents
4 12 2 18
opinion


5 Respondents
0 2 8 10
opinion


Total Respondents
6 20 25 51
opinion


49

Chi-Square Tests



N of Valid Cases 51


INTERPRETATION:




Above analysis depicts that significant value obtained through SPSS is less than significant level
thus hypothesis is rejected.

This depicts that there was a significant difference in the opinion of the respondents regarding
quality of supervision provided by organization some where satisfied while others were not.

50

Statement 5
Better superior subordinate relationship can reduce attrition

H0: There is no significant difference in opinion of the respondents regarding better
superior subordinate relationship can reduce attrition

51

Respondents response and Expected response superior-subordinate relationship a cause for
attrition

Column

1 2 3 Total

Row 1 Respondents
0 0 1 1
opinion


2 Respondents
1 1 5 7
opinion


3 Respondents
2 4 8 14
opinion


4 Respondents
2 2 12 16
opinion


5 Respondents
1 3 8 12
opinion


Total 6 10 34 50

6.0 10.0 34.0 50.0

52

attrition

Column

1 2 3 Total

Row 1 Respondents
0 0 1 1
opinion


2 Respondents
1 1 5 7
opinion


3 Respondents
2 4 8 14
opinion


4 Respondents
2 2 12 16
opinion


5 Respondents
1 3 8 12
opinion


Total 6 10 34 50

6.0 10.0 34.0 50.0

53

attrition

Column

1 2 3 Total

Row 1 Respondents
0 0 1 1
opinion


2 Respondents
1 1 5 7
opinion


3 Respondents
2 4 8 14
opinion


4 Respondents
2 2 12 16
opinion


5 Respondents
1 3 8 12
opinion


Total 6 10 34 50

6.0 10.0 34.0 50.0

54

Chi-Square Tests



N of Valid Cases 50


INTERPRETATION:




Above analysis depicts that significant value obtained through SPSS is greater than significant

This depicts that there wasn’t a significant difference in the opinion of the respondents regarding
the thought that better superior-subordinate relationship can reduce attrition.

55

Statement 6
Companies “merit review process” was not satisfactory

H0: There is no significant difference in the opinion of the respondents about the merit
review process of the organization

56

Respondents response and Expected response regarding merit review process of the organization

Column

1 2 3 Total

row 1 Respondents
0 0 1 1
opinion


2 Respondents
2 2 2 6
opinion


3 Respondents
2 5 10 17
opinion


4 Respondents
2 2 15 19
opinion


5 Respondents
1 1 6 8
opinion


Total Respondents
7 10 34 51
opinion


57

Respondents response and Expected response regarding merit review process of the organization

Column

1 2 3 Total

row 1 Respondents
0 0 1 1
opinion


2 Respondents
2 2 2 6
opinion


3 Respondents
2 5 10 17
opinion


4 Respondents
2 2 15 19
opinion


5 Respondents
1 1 6 8
opinion


Total Respondents
7 10 34 51
opinion


58

Chi-Square Tests



N of Valid Cases 51

INTERPRETATION:





the merit review process of the organization as the employees feel that they are not provided with
their performance picture clearly.

Statement 7
59

Employees are very much satisfied with the incentives, pay and fringe benefits offered by
organization.

H0: There is no significant difference in the opinion of the respondents regarding
satisfaction of the incentives offered by organization.

Respondents opinion and Expected opinion regarding Incentives offered by
organization

Column

1 2 3 Total

row 1 Respondents
0 0 1 1
opinion


2 Respondents
1 0 3 4
opinion

Expected Opinion .4 .7 2.9 4.0

3 Respondents
3 5 9 17
opinion


4 Respondent 1 3 15 19

Expected 1.9 3.4 13.7 19.0

5 Respondent 0 1 8 9

Expected .9 1.6 6.5 9.0

Total 5 9 36 50

5.0 9.0 36.0 50.0

60

Chi-Square Tests



N of Valid Cases 50


INTERPRETATION:





the incentives offered by organization to the employees. This is an indicator for the organization
that stress upon the employee engagement plans rather than just focusing on incentives and other
benefits.

Statement 8

61

Lack of company’s ability to discover and utilize employee’s talent and potential
contributed in high rate of attrition.

H0: There is no significant difference in the opinion of the respondents regarding
company’s ability to discover employee’s talent contribute in high rate of attrition

Respondents opinion and Expected opinion on companies talent analyzing ability

Column

1 2 3 Total

row 1 Respondents
0 0 1 1
opinion


2 Respondents
0 1 7 8
opinion


3 Respondents
2 5 7 14
opinion


4 Respondents
2 3 10 15
opinion


5 Respondents
1 1 10 12
opinion


Total 5 10 35 50

5.0 10.0 35.0 50.0

62

Chi-Square Tests



N of Valid Cases 50


INTERPRETATION:





This depicts that there wasn’t a significant difference in the opinion of the respondents and most
of the employees believe that company was not able to utilize their talent to the fullest

Statement 9
Forming grievance handling committees can help in reducing attrition rate
63

H1: There is no significant difference in the opinion of the employees that forming a
grievance handling committee can reduce attrition

Respondent opinion and Expected opinion regarding grievance handling committee

Column

1 2 3 Total

Row 1 Respondents opinion 0 1 1 2

Expected opinion .2 .4 1.4 2.0


Expected opinion .3 .6 2.1 3.0


Expected opinion 1.8 3.6 12.6 18.0




Expected opinion .9 1.8 6.3 9.0

Total Respondents opinion 5 10 35 50


64

Chi-Square Tests



N of Valid Cases 50


INTERPRETATION:





65

This depicts that there wasn’t a significant difference in the opinion of the respondents and most
of the employees were of the opinion that organization must initiate a grievance handling
committee.

Statement 10
Job rotation, employee engagement and monthly get together can be an effective tool in
reducing attrition level.

H0: There is no significant difference in the respondent’s opinion that job rotation,
employee engagement and monthly get together can be an effective tool in reducing
attrition level

66

Respondents opinion and Expected opinion about effective tools in reducing attrition
level

Column

1 2 3 Total

row 1 Respondents opinion 0 0 1 1

Expected opinion .1 .2 .7 1.0









Total Respondents opinion 5 10 35 50


67

Chi-Square Tests



N of Valid Cases 50


INTERPRETATION:





This depicts that most of the employee think if organization introduces activities such as job
rotation, employee engagement etc attrition level can be decreased.

68

PEARSON’s RANK CORELATION
COEFFICIENT

Factors Researcher’s Respondent’s D (D)^2
Rank Rank

Compensation Packages 1 2 -1 1
Lack of challenges 3 8 -5 25
Specific grievance 4 6 -2 4
Organization Culture 5 3 2 4
Job Security 6 1 5 25
Perusing higher education 7 4 3 9
Transfer to non desirable 8 9 -1 1
place
Lack of Training 9 5 4 16
85

R1 = researcher’s Rank

R2 = Respondent’s Rank

D = difference between R1 and R2

N = Number of factors

Test Calculations:
P= 1-6ΣD2/(n3 -n)
P=1-(660/720)
P=0.0834

Result:
There is a positive correlation between the ranks given by respondents and researchers.

69

Major Causes of Attrition

FACTORS LEADING TO ATTRITION

INDIVIDUAL ORGANIZATIONAL

BETTER PAY ROLE RELATED OTHERS
PACKAGE

EXTENSIVE LEADERSHIP
PARENTS /
TRAVELLING STYLE OF BOSS
SPOUSE MOBILITY

JOB STRESS CULTURAL
HIGHER MISMATCH
EDUCATION
MONOTONOUS NO GROWTH/
JOB STAGNATION

NO ROLE CLARITY PAY PACKAGE

ROLE DIFFERENT
THAN DEFINED

NO LEANING

70

Measures Adopted by Protiviti to reduce attrition
• Protiviti gives opportunity to employees to pursue higher education
while working:

Employees who have worked with protiviti for minimum 3 years are offered an executive
MBA program at S.P jain institute of management so that they can grow academically
while gaining work experience.

• Fun at work:

“All work and no play make Jack a dull boy”. Employees spend almost 8-9 hours of the
day at their work place. It is very important that the employees are given opportunities to
have fun at work. Hence HR at protiviti organizes occasional parties such as diwali party,
New Year parties, team parties and onsite picnics once a year.

• Periodic rewards or gifts for work done:

Protiviti provides periodic appraisals to employees who are consistent good performers in
terms of monetary benefits. This helps employees to realize that their efforts are being
appreciated and recognized.

• Protiviti provides an extensive and comprehensive training program to
employees :

Protiviti provides a comprehensive training to employees at level in hierarchical level
which help them to understand their job better and help them to get equipped with new
technology.

71

• Open Communication:

A culture of open communication enforces loyalty among employees. Open
communication tends to keep employees informed on key issues. Most importantly, they
need to know that their opinions matter and that management is 100% interested in their
input.

Diagnosing Attrition at protiviti:
Protiviti consulting pvt ltd is a firm with small setup in India. Hence it has been relying solely on
the tool of Exit Interviews in order to diagnose the problem of attrition. But as the organization is
growing and is being affected with the problem of attrition like the other firms in the industry as
the industry is experiencing an upturn in growth after a period of recession. it needs to develop
different techniques to analyze the reasons of attrition.

Protiviti uses this tool to diagnose attrition:

Exit Interviews

Exit interviews are used by the majority of companies. They tend to be conducted just before an
employee leaves, though some firms wait until after the departure. Exit interviews will normally
to be done in the form of a questionnaire, though one to one interviews are also used. Recent
years have seen the appearance of internet based exit interview questionnaires. Unfortunately,
research shows exit interviews to be unreliable, as departing employees opt to give socially
acceptable reasons rather than genuine ones. It is rarely in the employee's best interests to give
any negative reason for leaving at this stage. The need for references is often paramount, and not
worth putting at risk, by giving the real reasons. In addition, departing employees may be
unwilling to devote much time to completing detailed questionnaires, resulting in incomplete
answers. The end result will often be a large number of departures apparently due to an offer
they simply could not refuse, or in the wider context, career advancement. Thus organizational
data from typical exit interviews fails to surface the ‘real’ causes of an organization's attrition
problems. When organizations unknowingly misdiagnose the situation and fail to surface the
most critical factors that contribute to attrition, their solutions to correct the problem fall short of

72

the mark. The result is a bad diagnosis leading to improper prescriptions. Designing a better exit
interview involves:
1. Ensure confidentiality
2. Anonymous if possible
3. Provide a small incentive
4. Focus on improving conditions for colleagues.

Attrition diagnosing Techniques which can be used by
protiviti to reduce attrition

1. Questionnaires

They are commonly used as part of the information gathering process. They are a reasonable way
of obtaining relevant information, though response rates are often disappointing. Questionnaires
need to be designed carefully to be effective. They should be easy to use, anonymous and fairly
brief. Questions can be open or closed, multiple choice answers, ranking of items or checklist
format.
Steps for conducting questionnaire survey:
1. Determine the information needed
2. Choose the type of questions
3. Create the precise questions
4. Check readability
5. Design for analysis
6. Test
7. Adjust if necessary
8. Prepare data summary
9. Distribute

2. Focus Groups

It is a good way to acquire qualitative information, rather the quantitative data that a survey
produces. Focus groups are inexpensive when compared to say interviews and take less time to

73

prepare. A focus group provides an opportunity for a small number of people to discuss issues
relating to employee turnover and retention. An added benefit of focus groups is that they can be
used to generate new ideas, discussing possible solutions as well as diagnosing causes. For larger
companies you will need to conduct a series of focus groups in order to get a reasonable sample.

3. Nominal Group Technique

One particular type of focus group process is the nominal group technique. This is especially
useful in determining the key drivers of employee turnover. Procedure for conducting NGT is as
follows:
1. Each member of the group is asked to write down reasons why colleagues have left
2. The facilitator goes round the group asking each person in turn for their first reason .
3. The facilitator uses a flip chart to document the reasons .
4. They then repeat for each person's second reason and so on.
5. These lists are then clearly displayed for everyone to see.
6. Group members are then asked to choose the most important reasons after careful
consideration of all those listed
7. They rank these in order of importance Scores calculated by awarding a set number of points
for no1, no2 etc, then totally the number of points for each reason

4. Attitude Surveys

The use of surveys to measure employee engagement or commitment is gaining in popularity.
The research suggests commitment is a reasonable predictor of turnover if considered across a
large enough group. Unfortunately surveys are not always reliable and response rates are
sometimes disappointing. One difficulty with attitude surveys is knowing which areas to focus
upon. It is usually sensible to conduct some form of qualitative information gathering
beforehand, in order to get an idea of which issues you should be asking about. Surveys tend to
ask the importance of each issue, in addition to rating how the company is performing on that
issue.

74

CHAPTER 7
findings

75

Findings
• Employees give a lot of importance to compensation package in their job.

• Extensive travelling which forms 70% of the consultant’s job appears to be a significant
reason for high rate of attrition in consultancy industry.

• Lack of appreciation /recognition may trigger an employee’s decision to leave an
organization.

• Employees doesn’t seem to be satisfied with the quality of supervision received by them

• .By improving superior-subordinate relationship can help reduce attrition.

• Organization paying less attention in providing sufficient feedback to employees about
their performance between merit reviews could be a factor increasing employee’s
dissatisfaction.

• Sometimes organizations inability to discover and utilize employee’s potential
contributes in high rate of attrition.

• Employees believe that by forming grievance handing committees with whom they can
share and discusses their grievances can help in reducing attrition rate.

• Prospects of career progression in organization forms an integral part of retention tactics.

• The factors that currently attract and retain people are opportunities to learn and grow.

• Increasing the compensation packages and fringe benefits periodically can effectively
tackle attrition.

76

• Providing employees with an opportunity for higher education is one of the important

factors with regards to reducing attrition.

• There exists a positive correlation between the ranks given by researcher and the
respondents i.e., both sides agree to ranking of factors that can help in bringing a check
on attrition levels.

CHAPTER 8

limiTATion

77

Limitations of the Study

• Collecting information from people during working hour was really difficult.
• Employees may have not given the correct answers for some questions due to hesitation.
• Some questions were left blank in the questionnaire. So it created obstacles during
analysis.
• The organizations are very reluctant to give us the internal data of their employees. So
exact information could not be made out from them.

1.

79

CHAPTER 9
RECommEndATio
ns &
suggEsTions

80

Recommendations & Suggestions
Few suggestions that would help in reducing attrition:

1. An employee would work tirelessly for the company if he is being made aware that he is
an important part of the team.

2. Constant constructive feedback would help employees to analyze their weak points

3. Award them with recognition if an employee has done something valuable. Don’t wait
for too long.

4. Be in touch with your employees and help them when in need.

5. Organization must help employees acquire new skills so that organization goals could be
matched up with individual goals by providing required training.

6. An organization should be aware of the needs of the employees before it can launch its
retention plans for them.

7. HR must take certain measures to reduce employee stress level by organizing seminars
on stress reduction, yoga, one day camps, picnics etc.

8. Employee retention tools such as job rotation, employee engagement must be introduced
in the organization in order to equip employees with the trait of multitasking.

9. Hr must design an attractive compensation package according to the job discripsion of
the employees.

10. If you are to conduct an exit interview, it is far better to get a neutral third party to

conduct them. This might help to improve the reliability of exit interviews.

81

BIBLIOGRAPHY

Books Referred:
• Phillips Jack,(2003) “A strategic accountability approach” Elsevier Science &
Technology,

• Ahlrichs Nancy(2000)”Competing for Talent” Davies-Black Publishing

• Managing Employee Retention - Phillips & Connell
• Peter W Horn(1995)”Employee turnover” South-Western College Publishing
• Kothari, C.R.(2004), “Research Methodology”, New Age International Publishers, New
Delhi, Second Revised Edition, pp.15-16.
• Rao , V.S.P.(2009), “Organizational Behaviour”, Excel Books, New Delhi, First
Edition, pp.465-482

Sites Referred:
www.citehr.com

www.managementparadise.com

82

http://timesascent.in/index.aspx?
page=article&sectid=64&contentid=20081015200811131346302515b929edd

http://www.recrion.co.uk/solutions/attrition/the-actual-cost-of-employee-attrition-rates/

http://eric.ed.gov/ERICWebPortal/search/detailmini.jsp?
_nfpb=true&_&ERICExtSearch_SearchValue_0=ED051449&ERICExtSearch_SearchType_0=n
o&accno=ED051449

Appendix

QUESTIONNAIRE

1. Employees give maximum importance to compensation package in their job

Strongly agree

Somewhat Agree

Neutral

Somewhat Disagree

Strongly Disagree

Don’t know

2. Too much travelling and eager to pursue higher education may be a significant reason for
higher rate of attrition

83

Strongly agree

Somewhat Agree

Neutral

Somewhat Disagree

Strongly Disagree

Don’t know

3. Lack of appreciation/ recognition may trigger an employee’s decision to leave.

Strongly agree

Somewhat Agree

Neutral

Somewhat Disagree

Strongly Disagree

Don’t know

4. Quality of supervision received by employees in the organization was “Good”

Strongly agree

Somewhat Agree

Neutral

Somewhat Disagree

Strongly Disagree

Don’t know

5. Better superior subordinate relationship can reduce attrition

Strongly agree

Somewhat Agree

84

Neutral

Somewhat Disagree

Strongly Disagree

Don’t know

6. Companies “merit review process” was not satisfactory

Strongly agree

Somewhat Agree

Neutral

Somewhat Disagree

Strongly Disagree

Don’t know

7. Employees are very much satisfied with the incentives, pay and fringe benefits offered by
organization.

Strongly agree

Somewhat Agree

Neutral

Somewhat Disagree

Strongly Disagree

Don’t know

8. Lack of company’s ability to discover and utilize employee’s talent and potential contributed
in high rate of attrition.

Strongly agree

85

Somewhat Agree

Neutral

Somewhat Disagree

Strongly Disagree

Don’t know

9. Forming grievance handling committees can help in reducing attrition rate

Strongly agree

Somewhat Agree

Neutral

Somewhat Disagree

Strongly Disagree

Don’t know

10. Job rotation, employee engagement and monthly get together can be an effective tool in
reducing attrition level.

Strongly agree

Somewhat Agree

Neutral

Somewhat Disagree

Strongly Disagree

Don’t know

11. What do you think, the reasons for an employee leaving the organization?

(Rate the following from the top most priority and the least

86

Compensation

Recognition for work done

Lack of challenge

Specific grievance

Mentoring Relationships

Too much travel

Organization Culture

Dissatisfaction with type of work

Job Security

PERSONAL INFORMATION:

i. NAME:

ii. AGE:

iii. SEX:

iv. DESIGNATION:

Thank you for giving your valuable time for us which we really appreciate.

87

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