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 managers 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 organizations 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 organizations 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 ones 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-

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.

Attrition rates can be beneficial in some ways: 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:
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It removes bottleneck in the progress of the company It creates space for the entry of new talents It assists in evolving high performance teams

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 Market Driven 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 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 ones 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:

The most obvious reason for employees leaving any organization is higher salaries offered by other Organization with better job

opportunity. Job or work place is not what they expected: Sometimes the job responsibilities dont 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 candidates 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 appreciationIf the work is not appreciated by the supervisor, the employee feels demotivated and loses interest in job. Lack of trust and support in coworkers, seniors and management:

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 life imbalance: 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 hours 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 hiring costs

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,

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.

Training and 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 employees 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 computer and security passwords

to put the person on the payroll,

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 Sales Costs 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 competitors .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)

Types of attrition calculation Fresher attrition:

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The number of freshers who left within one year. It tells you how many are using the Infant mortality: 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. company as a springboard.

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 companys ability to set effective HR priorities. Clients and business get affected and the companys 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 cycleattrition brings decreased productivity, people leave causing others to work harder and this contributes to more attrition. All this has a significant impact on the companys 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? Its 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 companys 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 (sometimes to competitors). Often much time and money has been
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spent on the employee in expectation of a future return. When the employee leaves, the investment is not realized. Turnover leads to 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.

OBJECTIVES OF THE 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, interrelationship, 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.

Primary Data
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 populationIs one where all the members can be easily counted .

Infinite population
Is one whose size is unlimited and therefore its members cannot be counted.

Sample and sampling method Is a smaller representation of the population basis of , it is any number of persons selected to represent the population , according to some rules or plans .ON the 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 employees 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
PopulationThe wel identified and specified group is known as a population. It may be of two types ie; Finite populationIs 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-

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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 cultureThis 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:
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 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

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Dimensions
3 2.5

average score

2 1.5 1 0.5 0

Job Satisfaction

Organizational Growth & Culture Development dimensions

Work life balance

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Measuring scale
Measuring scale taken for this project report is 5- point rating scale, ie; LIKERT SCALE .thus the scale constructed with the title employees attrition rating scale:
strongly agree agree neutral disagree strongly disagree

STATEMENTS

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

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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

Employees Attrition 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

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Company Ltd.? And what are the main factors responsible for higher Attrition rate. Data provided by the organization of exit employees of financial year20092010 is as below Attrition rate across the Departments/ Channels for FY 2009-2010
TOTAL EMPLOYEES 420 23 0 23 262 16 2 1 46 1 6 9 12 829 NEW JOINERS 242 16 2 8 45 0 0 0 6 3 0 33 4 359 EXITS EMPLOYEES 193 16 0 8 201 1 0 0 2 0 0 26 3 452 TOTAL EMPLOYEES 662 39 2 31 307 16 2 1 52 4 6 42 16 1188 AVERAGE EMPLOYEES 469% 23% 2% 23% 106% 15% 2% 1% 50% 4% 6% 16% 13% 736% 41.15% 69.57% 0.00% 34.78% 189.62% 6.67% 0.00% 0.00% 4.00% 0.00% 0.00% 162.50% 23.08% 61.41% Attrition %

PARTMENT

ency

ernate

c assurance

iness

curement

ect Marketing

ance

man Resource

ernal Audit

eration

newals

es

ministration

ategic Initiative

ining

gion Total

Total No. of Employees as on 1st April 2009 (Across The Department/ Channels)= 829

Total No. of New Joiners (Across The Department/ Channels) =359

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Total No. of Exit Cases (Across The Department/ Channels)=452 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 Attrition Rate areDepartments Agency Alternate Bancassurance Business Procurement Direct Marketing Finance Human Resource Internal Audit Operation Renewals Sales Administration Strategic Initiative Training Region Total Attrition in % 41.15% 69.57% 0.00% 34.78% 189.62% (max.) 6.67% 0.00% 0.00% 4.00% 0.00% 0.00% 162.50% 23.08% 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%

Department - Wise
Agency Bancassurance Direct Marketing Human Resource Operation Sales Administration Training
4% 27% 10%

Alternate Business Procurement Finance Internal Audit Renewals Strategic Initiative Region Total
7% 32% 12% 0% 6%

0% 1% 0%

0%

0% 1%

Division wise attrition rate in BALIC for FY (2009-2010)

Divisions

No. of

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exits Allahabad 1 Allahabad 2 Azamgarh Ballia Gorakhpur 1 Gorakhpur 2 Jaunpur Mughalsarai Varanasi 1 Varanasi 2 Total exits 23 34 (max.) 14 9 (min.) 26 18 11 14 21 23 196

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Division - UP 2
Allahabad 1 Varanasi 1 Allahabad 2 Varanasi 2
12% 12% 11% 7% 13% 6% 9% 5% 7% 18%

Azamgarh

Ballia Mughalsarai

Gorakhpur 1 Gorakhpur 2 Jaunpur

Attrition on basis of tenure for FY (2009-2010)

Tenure in months 0-1 month 1.1-3 months 3.1-6 months 6.1-9 months 9.1-12 months 12 < months Total exits 116 (max.) 452 85 41 99 No.of exits 35 (min.) 76

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Tenure Wise
0-1 mnt 6.1-9 mnths 1.1-3 mnths 9.1-12 mnths 3.1-6 mnths 12 < mnths

25% 19%

8%

17% 22%

9%

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 Attrition on basis of Month for FY (2009-2010)

Months April 09 Aug. 09 Dec.09 Feb. 10 Jan. 10 July 09 June 09 Mar. 10 May 10 Nov. 09 Oct. 09 Sep. 09 Total Exits No. Of Exits 22 (min.) 47 28 22 (min.) 22 (min.) 61 62 (max.) 27 58 30 43 30

452

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Month - Wise
9-Apr 9-Jun Aug. 09 Dec.09 Mar. 10 10-May Feb. 10 Jan. 10 9-Jul Sep. 09 Nov. 09 Oct. 09

9% 7% 13%

7% 5%

10%
6% 5%

14% 6%

13%

5%

Nature of exits
Mode of exit Involuntary Absconding Termination Involuntary total Voluntary Resignation Voluntary total Grand total
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Total 66 53 119 333 333 452

Mode Of Exits

Absconding Termination

Involuntary total Voluntary Resignation

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 1Were you clear about your role in your job.

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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 1
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5-point Ratig Scale

5 4 3 2 1 0 0 20 40 60 80 100

No. Of Exit Employees

Statement 2Did you had harmonious relationship with your boss. AnalysisMostly employees rated on 2 showing they slightly agreed that their relationship with their boss was quite harmonious . presenting the average score of 2.01.
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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 2
6

5-point Rating Scale

5 4 3 2 1 0 0 20 40 60 80 100

No. Of Employees

Statement 3Were you able to develop harmony between your personal

and professional life AnalysisMost of the employees rated their answers at 3 showing that they had neutral response on this statement with the average score of 2.74.
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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 3
6

5-point Scale

5 4 3 2 1 0 0 20 40 60 No. Of Employees 80 100

Statement 4Are 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.
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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 4
6 5 4 3 2 1 0 0 20 40 60 No. Of Employees 80 100

Statement 5Do 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,

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5-point Scale

After having experience of 4 years I was posted as ASM but as per

requirement and experience I should be posted as SSM.

Statement 5
6 5 5-point Scale 4 3 2 1 0 0 20 40 60 No. Of Employees 80 100

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 Statement 6Were 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 dont submit then he dont 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.

Statement 6
8 5-pont scale 6 4 2 0 0 20 40 60 No. Of Employees 80 100

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 Statement 7Were you demanded to work more than what was required out of your job. AnalysisIn 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 7
6 5-point scale 5 4 3 2 1 0 0 20 40 60 80 100 No. Of Employees

* Statement 8Had you been provided enough opportunities for development through training programs.
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 AnalysisMostly 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 In the experience of 4 years joined only two times. Statement 8
6 5-point scale 5 4 3 2 1 0 0 20 40 60 No. Of Employees 80 100

managerial skills.

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 Statement 9Did 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.

Statement 9
6 5-point Scale 5 4 3 2 1 0 0 20 40 60 No. Of Employees 80 100

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Statement 10Did 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; z We were very close to each other . We had very good relations like family

Statement 10
5-point rating scale
6 5 4 3 2 1 0 0 20 40 60 No. Of Employees 80 100

Statement 11Is work pressure main reason for you to leave organization.
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 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.

Statemet 11
6 5

5-point scale

4 3 2 1 0 0 20 40 60 No. Of Employees 80 100

Statement 12Did 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

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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 .

Statement 12
6 5 5-point scale 4 3 2 1 0 0 20 40 60 No. Of Employees 80 100

Statement 13Were 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 showing the average score of 2.18 , they gave different statements like; , also

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 Yeh I Used To Share Each And Every Either Personal Or Professional Problem With My Boss.

Statement 13
6 5 5-point scale 4 3 2 1 0 0 20 40 60 No. Of Employees 80 100

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Average scores in form of chart 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.

Statement- Wise
3 2.5

Average

2 1.5 1 0.5 0

Statements In the chart its clearly shown that the statement 11 (is work pressure main reason for you to leave

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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

Interpretation on the basis of dimensions

Here data will be interpreted on the basis of 4 dimensions with its all sub dimensions .

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Dimension -Wise
Job Satisfaction
3 2.5 2 1.5 1 0.5 0

Work life balance

Organizational Culture

Growth & Development

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

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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 .

3 2.5 2 1.5 1 0.5 0

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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
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in which

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 dont 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
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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 dont 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
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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 .

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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.

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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 todays scenario where companies are fighting to combat global business competitions , and struggling to survive , employee turnover becomes as double. In todays 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

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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 bargraphs 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.

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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.

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

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

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