International Journal of Business and Management

Invention ISSN (Online): 2319 – 8028, ISSN (Print): 2319 –

801X
www.ijbmi.org || Volume 6 Issue 9 || September. 2017 || PP—38-50

A Study on Employee Attrition: Inevitable yet Manageable

Dr.B.Latha Lavanya
Designation Head of the department, NODAL OFFICER< Editor in Chief MIMIJMR Organization MEASI
Institute of Management
Address: 87 Peters Road, NEW COLLEGE Campus, Royapettah, Chennai-
14 Corresponding Author: Dr.B.Latha Lavanya

Abstract: This study examines the employee attrition which is inevitable but manageable with software
employees. A Structured questionnaire was administered with a sample of 100 respondents. Simple random
sampling methodology was adopted for data analysis. Data Analysis was employed for computing the efficiency
scores for attrition using SPSS version 20. Statistical techniques such as factor analysis, correlation analysis, t
test, chi-square, one way annova and multiple regression was employeed. Correlation analysis was significant,
and multiple regressions was used to test the impact of the employee attrition. The findings demonstrated
thatThere is no significance difference in the dimension of the factors as a predictor in explaining employees
attrition Chi-square test revealed that there is significant association in employee job seeking with that of rate
of attrition This paper attempts to provide a framework for the employee attrition which could be applied to
larger concern with little arrangements.
Keywords: Employee attrition, inevitable, Job satisfaction, organizational performance and organizational
effectiveness, quality of service, notice period, job seeking, lack of career growth, employee expectation of the
job.
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Date of Submission: 22-08-2017 Date of acceptance: 09-09-2017
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I. INTRODUCTION
Attrition is critical in the industry these days. It’s the major problem which highlights in all the
organizations. “Attrition is said to be the gradual reduction in the number of employees through retirement,
resignation or death. It can also be said as Employee Turnover or Employee Defection” A well-trained and well-
adapted employee leaves the organization, it creates a vacuum. So, the organization loses key skills, knowledge
and business relationships. Modern managers and personnel administrators are greatly interested in reducing
Attrition in the organization, in such a way that it will contribute to the maximum effectiveness, growth, and
progress of the organization
Employees are the most valuable assets of an organization. They add value to the organization in terms
of quantity and quality as well. Therefore, it is indispensable to maintain a permanent and promising workforce.
Over the years it has become a tough task for employers and thereby increased attrition in the organizations.
Attrition of employees in a limited measure is desirable for influx of new ideas in any type of organization. It
helps organizations to maintain their agility in a fast changing environment.
Attrition in a limited measure it can thus bring gains to the organization. However, if attrition increases
beyond a certain level, the gains are transformed into pains. Recruiters explain that high attrition rates
significantly increase the investment made on employees (Prakash and Chowdhury, 2004). Significant
investments in time and money need to be made for acquiring employees in any organization. These can never
be translated into profit when attrition is high. In BPO industry, agent level (low level employees who directly
deal with the clients) recruitment costs the company approximately Rs. 5,000 for each employee recruited.

INEVITABLE YET MANAGEABLE

In the recent years employer and employee both have lost belief on each other. The former feels that
employee can leave the organization anytime and the latter apprehends that he or she can be expelled anytime
by the former one. Whosoever is responsible, irrespective of this; loss of workforce is inevitable. This loss of
workforce for any reason is called attrition. Irrespective of the kind of industry or the structure of the
organization, attrition is a common problem in every organization which not only hampers production but also
results in heavy long run costs and loss of goodwill to the organization. Therefore, there arises a need to delve
into this multi- dimensional problem and come out with feasible solutions.

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 A Study On Employee Attrition: Inevitable Yet
Manageable
ATTRITION IN INFORMATION TECHNOLOGY INDUSTRY:
Information Technology as an industry is very dynamic, lots of staunch competitors in the same field.
IT as an industry is segmented into Global Consulting or Product Development companies. With the increased
offshore projects hitting, a lot of technological companies are trying to acquire as many projects as possible.
EMERGING TRENDS IN THE INDIAN IT SERVICES INDUSTRY
 While the global IT players are aggressively scaling up their operations in India, due to the advantages that
the Indian industry offers, the Indian IT companies are also preparing to tap the global market. The
companies are witnessing significant change with regard to their service offerings and geographical
concentration. Today, companies are expanding their service offerings from application development and
maintenance to high end services like testing, consulting and engineering designing. The global delivery
model has not only facilitated the companies in delivering quality of work but also helped them to control
costs.
 Business Process Outsourcing (BPO) is the delegation of one or more IT-intensive business processes to an
external provider that in turn owns, administers and manages the selected process based on defined and
measurable performance criteria. Business Process Outsourcing (BPO) is one of the fastest growing
segments of the Information Technology Enabled Services (ITES) industry. The advancement in the field of
information technology and telecommunication has been the fundamental reason for the evolution of such
new techniques that in turn aid the successful operation of business houses.
 Another reason for such a monumental change in the nature of functioning of today’s management system
can be attributed to globalization. Specifically companies need to compete on a global basis if they are to
achieve economies of scale and keep up with the latest TECHNOLOGY and advancements (Porter, 1980).
The offshore outsourcing markets were initially developed as software development services and later
developed as Information Technology Enabled Services (ITES). ITES has developed into a major part of IT
industry. On the same lines, the BPO sector also forms a major part of ITES industry.

TURNOVER IN ITES/BPO SECTOR

Voluntary turnover has become a problem for many organizations, regardless of the nature of job, in
today’s society. The costs of this turnover not only have an impact on organizations but also would affect the
morale of the stayers. Prior research has examined the costs of an employee’s decision to voluntarily leave an
organization. For example, a recent figure explained that it costs a company $78,000 to replace an employee
(Ramsey-Smith, 2004). There have been a plethora of research studies conducted over the past 40 years by both
academicians and practitioners on the causes and consequences of voluntary turnover.
In the ITES/BPO sector, however voluntary turnover is reaching alarming proportions. It becomes very
important to study this questionable nature of large-scale attrition, as India houses a large no of ITES/BPO’s.
Since this sector is predominantly service oriented, it becomes very important for the HR practitioners to take
appropriate steps to understand the turnover drivers, to at least retain the good performers. If proper care to
check employee turnover in this sector is not taken, then the quality of service rendered would be affected due to
lack of trained personnel replacing the employee who has left. This would give rise to a lot of dissatisfaction
amongst the customers. Turnover can also leave a severe blow to the morale of the stayers as they would have to
take up additional burden of workload until the replaced employee is trained. This can also add up to their stress
levels. Therefore, if employee turnover is not managed properly it would affect ITES/BPO sector adversely in
terms of personnel costs and in the end it is likely that they would lose out on their liquidity position. An attempt
has been made in this research to investigate on the employee turnover antecedents of ITES/BPO sector in India.

DETERMINANTS OF EMPLOYEE TURNOVER

The antecedents of turnover intention were gathered from the past research findings reviewed with respect to
two components which could cause an impact on the employee’s decision to quit his/her place of work.

INTRA ORGANIZATIONAL FACTORS AND TURNOVER INTENTION:

 Perceived organizational support and turnover intention: POS refers to employees' 'global beliefs
concerning the extent to which the organization values their contributions and cares about their well-being'
(Eisenbergeret al.1986). POS would be valued by employees for meeting socio-emotional needs, providing
an indication of the organization’s readiness to reward increased work effort, and indicating the
organization’s inclination to provide aid when needed to carry out one’s job effectively (Eisenberger et al.,
1986). POS is fostered by two important beliefs of employees: the personification of organization, and
rewards based on the organization's discretion. Through personification of organization, employees assign
human characteristics to the organization and view actions by agents in the organization (e.g. managers) as
actions of the organization as a whole (Eisenberger et al., 1986). Favorable or unfavorable treatment
received by employees determines the organization's attitude towards its employees well being. However,
 there has been limited investigation of the relationship between POS and intention to leave (e.g. Allen et al.,
2003; Wayne, Shore, and Liden, 1997) and work that is more empirical has been called for (Griffeth et al.,
2000).

 Perceived organizational justice and turnover intention: Adams (1965) conceptualized fairness by
stating that employees determine whether they have been treated fairly at work by comparing their own
payoff ratio of outcomes (such as pay or status) to inputs (such as effort or time) to the ratio of their co-
workers. This is called distributive justice, and it presents employees' perceptions about the fairness of
managerial decisions from the perspective of the distribution of outcomes such as pay, promotions, etc
(Folger and Konovsky, 1989). In contrast, procedural justice focuses on the fairness of the manner in which
the decision-making process is conducted (Folger and Konovsky, 1989). In other words, the focus shifts
from what was decided to how the decision was made (Cropanzano and Folger, 1991). Justice perceptions
also have been linked to important outcome variables (Daily and Kirk, 1992; Folger and Konovsky, 1989;
Martin and Bennett, 1996; McFarlin and Sweeney, 1992). For instance, perceptions of procedural justice
are negatively related to intentions to quit (Daily and Kirk, 1992), significantly correlate with organizational
commitment (Folger and Konovsky, 1989; Martin and Bennett, 1996), and produce high subordinates'
evaluation of supervisors (McFarlin and Sweeney, 1992). Thus, organizational commitment is used as
mediating variable in the current study. In other words, if employees perceive that the decision-making
process is fair, they are less likely to form an intention to quit.
INDIVIDUAL AFFECTIVE OUTCOMES:
 Job satisfaction and turnover intention: The relationship between satisfaction and turnover has been
consistently found in many turnover studies (Lum et al, 1998). Mobley et al 1979 indicated that overall job
satisfaction is negatively linked to turnover but explained little of the variability in turnover. Mobley in
(1977) developed a model that explains the process of dissatisfaction that an employee feels and how she/he
arrives at a decision to leave the organization. The model first explains the employee evaluation of the
existing job, and then obviously it is for the employee to gauge her/his satisfaction in performing the
particular job she/he is engaged in. The result of which would be either satisfaction or dissatisfaction.
Mobley favored no particular satisfaction model, but contributed to the development of several such models
in which he explains how dissatisfaction arises. If a dissatisfied employee happens to get an alternative job
where she/he does not have to compromise on job satisfaction, the employee concerned would definitely
choose the alternative job resigning the current job.
 Organizational commitment and turnover intention: Mobley et al. (1979) have identified commitment
to the organization as a potentially important variable in the turnover process. Researchers have established
that there are three types of organizational commitment and they are affective commitment, continuance
commitment, and normative commitment. Allen and Meyer (1990) investigated the nature of the link
between turnover and the three components of attitudinal commitment: affective commitment refers to
employees’ emotional attachment to, identification with and involvement in the organization; continuance
commitment refers to commitment base on costs that employees associate with leaving the organization;
and normative commitment refers to employees’ feelings of obligation to remain with the organization.
II. OBJECTIVE OF THE STUDY.
PRIMARY OBJECTIVE
 To determine the employees attrition in the company
 To determine the highly contribution factors which affects employee attrition

SECONDARY OBJECTIVES
 To analyze the impact of demographic factors on attrition
 To determine the need of employees searching new job
 Toexamine the areas where companies is lagging behind.

III. NEED FOR THE STUDY.

a) The success of IT industry depends largely on the workers, the employees are considered as the backbone
of any company.
b) The study was mainly undertaken to identify the level of employee’s attitude, the dissatisfaction factors
they face in the organization and for what reason they prefer to change their job.
c) Once the levels of employee’s attitude are identified, it would be possible for the management to take
necessary action to reduce attrition level. Since they are considered as backbone of the company, their
progression will lead to the success of the company for the long run.
Statement of problem
a) The aim of the present report is to study factors like salary, superior – subordinate relationship, growth
opportunities, facilities, policies and procedures, recognition, appreciation, suggestions, co- workers by
which it helps to know the Attrition level in the organizations and factors relating to retain them.
b) This study also helps to find out where the organizations are lagging in retaining.
IV. SCOPE OF THE STUDY.
 This study concentrates only on the employee attrition.
 This study can help organization to find the weaker parts of the employee feel towards the organization
 This study has a wider for scope in any kind of organization since “attrition” is general one and makes the
employees to put forth their practical difficulties and need factors in the organization.
 This study can help the management to know for which the reason employees tend to change their job,
through dissatisfaction factors faced in the organization and also helps to recover by providing the optimum
suggestions or solutions

V. LIMITATIONS.
 The researcher has included only 100 observations. The findings should be confirmed through a large
sample for generalization.
 The study is solely concerned to company,(private limited company) so the results cannot be generalized to
all the sectors.
 The data collection was restricted to company due to limited time available and cost
 The size of the organization was not taken in to consideration.

VI. REVIEW OF LITERATURES IN EMPLOYEE ATTRITION

AMARAM 2005 stated that,It is realized that the need is not merely to stem attrition rates by
implementing various retention strategies.it is rather to identify the right candidates at the time of recruitment,
so that they identify the right candidates at the time of recruitment, so that they identify with the organization
and stay on proving to be assets for the company. cultural shock is something that often leads to employees
retaining into a shell and building up a lot of unnecessary pressure on themselves. organisation must strike the
right balance between pampering their employees and extracting maximum work from them. any one of these
when overdone would lead to dissatisfaction and thereby, attrition.
Park 2013, study stated employees will be more motivated to do their jobs well if they have ownership
of their work. This requires giving employees enough freedom and power to carry out their tasks so that they
feel they own the result. As individuals mature in their jobs, the organisation should provide them with
opportunities for added responsibility.
According to Booyens 2013, the essence of supervision lies in evaluating the effectiveness of the
organisation, both vertically and horizontally, and ensuring that resources are used adequate and correct, errors
are rectified, standards maintained and objectives attained. Falkenburg and Schyns determines that supervisors
act as a source of social support to the
According to Nel, et al. 2013, when an employee joins an organisation, besides the employment
contract, usually a psychological contract is established between employer and employee with respect to what
each should expect of the other. Habeck, Kroger and Tram 2013 add that psychological contracts consist of the
individuals' beliefs regarding the terms and conditions of the exchange agreement between themselves and their
organisations.
Booyens 2013,described orientation is the personalized training of the individual employee so that
he/she becomes acquainted with the requirements of the job itself. The aim of the orientation is to be effective
and show productive work performance by the new employee. The orientation process aims at reducing anxiety,
creating a positive attitude towards the employer and assist in creating realistic work expectations.
Nel, et al. 2014 ; George and Jones, 2013stated that work content is another main cause for attrition
(work content refers to the amount of work which is performed by the employee at any given time). Mouton
2013 stated that quantitative overload (Qualitative overload involves work that is too difficult) involves having
too much work to do in the time available and has been associated with stress related ailments such as coronary
heart disease and finally staff turnover. In the context of voluntary staff turnover, when the employee relates the
work load with pay and benefits which may be perceived to be lower than the amount of work performed, work
overload may then incite staff turnover intention.
Ichniowski 2013 asserts that opportunities for social contacts are highly important elements of working
conditions. Social contacts refers to the supporting functions that an employee gets from colleagues, managers
or subordinates which can be a buffer between stress and health. Interpersonal relations refer to personal and
working interactions between the employee and other people he/she works with. These include cooperation,
teamwork and sharing of common goals.unhealthy social relationship between employees in the organization
will lead to employee absenteeism and eventually to staff turnover.
Kevin et al. 2014 have stated that although, there is no standard framework for understanding the
employees turnover process but a wide range of factors are useful in predicting employee turnover. Henry
Ongori 2014 concluded in his study that employees are the long-term investments in an organization and as such
management should encourage job redesign, task autonomy, task significance and task identity, open book
management, empowerment of employees, recruitment and selection must be done scientifically with the
objective of retaining employees and decreasing employee turnover. Hamermesh 2014, study emphasized every
manager, supervisor and business owner has to understand the complexities of staff turnover before making the
first personnel decision. An incorrect promotion or firing can lead to lost productivity as well as diminished
loyalty from employees. The function of staff turnover is to keep essential personnel in positions best suited to
their skills.

VII. RESEARCH METHODOLOGY

Research means careful study and investigation especially in order to discover new facts or
information. Research methodology depends on the research problem, techniques, tools, data, time available,
experience and capability of the researcher. Research methodology is a systematic way to solve the research
problem.

7.1.1 RESEARCH DESIGN

Research design is the plan and structure of investigation so conceived in order to obtain the research question
and control variance. Descriptive research design is adopted in this study.

7.1.2 HYPOTHESES DEVELOPED:

H01: There is no significant difference in gender and the reason for attrition
H1: There is significant difference in gender and the reason for attrition
H02: There is no significant difference in age and lowering the attrition
H2: There is significant difference in age and lowering the attrition
H03: There is no significant difference among the department and the reason for attrition
H3: There is significant difference among the department and the reason for attrition
H04: There is no significant association between employees searching new job and lowering attrition rate.
H4: There is significant association between employees searching new job and lowering attrition rate.
Ho5: There is no significant difference among the factorsas a predictor in explaining attrition in the company.
H5: There is significant difference among the factorsas a predictor in explaining attrition in the company.
7.1.3 METHOD OF SAMPLING
The sampling method is the scientific procedure of selecting those sampling units which would provide the
required estimates with associated margins of uncertainity, arising from examining only a part and not the
whole.

7.1.4 SAMPLING SURVEY

Sampling survey is the process of obtaining the information about entire population by examine only a part of it
(sample) for the purpose of the study. The researcher has used simple random sampling.
7.1.4.1 SIMPLE RANDOM SAMPLING
Simple random sampling is a randomly selected sample from a larger sample or population, giving all
the individuals in the sample an equal chance to be chosen. In a simple random sampling, individuals are chosen
at random and not more than once to prevent a bias that would negatively affect the validity of the result of
the experiment. Simple random sampling is the most widely-used probability sampling method, probably
because it is easy to implement. An important benefit of simple random sampling is that it allows researchers to
use statistical methods to analyse sample results.
7.1.5 SAMPLE SIZE
Simple random sampling technique was adopted to select sample employees. LuminoSoft Technology was
selected for the study. The total numbers of questionnaires distributed were 120 of which 115 were received and
only 100 questionnaires were fully filled the condition for the study.
NUMBER OF FULLY PERCENTAGE OF
RESPONDENTS RECEIEVED FILLED RESPONDENTS
130 115 100 113
 VIII. DATA ANALYSIS AND INTERPRETATION:
Data analysis is a process of gathering, transforming and interpretation,it has multiple facets and
approaches, encompassing diverse techniques under a variety of names, in different business, science and social
science domains. Analysis means the computation of certain indices or measures ALONG with searching for
patterns of relationship that exist among data groups. It helps in testing the hypothesis for drawing inference. So
data analysis is a crucial event in any research project because the inferences were made only based on the result
of the analysis.
TABLE1 DESCRIPTIVE STATISTICS FOR THE STUDY
{{{{{{{
VARIABLE MEAN STD. DEVIATION ANALYSIS N
JS1 2.30 0.859 100
JS2 2.20 0.985 100
JS3 2.08 1.022 100
JS4 2.00 0.853 100
JS5 1.30 0.461 100
JS6 2.48 1.105 100
OP1 1.36 0.482 100
OP2 2.22 1.227 100
OP3 1.26 0.441 100
OP4 2.10 0.785 100
OP5 2.38 0.962 100
OP6 2.42 1.046 100
OE1 1.22 0.416 100
OE2 2.44 1.258 100
OE3 1.28 0.451 100
OE4 2.54 0.968 100
OE5 1.16 0.368 100
QOS1 2.40 1.101 100
QOS2 1.18 0.386 100
QOS3 1.32 0.584 100
QOS4 3.28 1.138 100
QOS5 2.46 1.176 100

INTERPRETATION:
The mean and standard deviation for JS1 is 2.30 and 0.859; JS2 is 2.20 and 0.985;OP1 is 1.36 and
0.482 ;OP2 is 2.22 and 1.227 ;OP3 is 1.26 and 0.441 ;OE1 is 1.22 and 0.416 ;OE2 is 2.44 and 1.258 ;OE3 is
1.28and 0.451 ;QOS1 is 2.40 and 1.101 ;QOS2 is 1.18 and 0.386 ;QOS3 is 1.32 and 0.584 ;QOS4 is 3.28 and
1.138 ;QOS5 is 2.46 and 1.176.the highest mean is 3.28 which is for QOS is 4 and the highest standard
deviation is 1.258 which is for OE2.
TABLE 2 KMO and BARTLETT’S TEST TABLE

KAISER-MEYER-OLKIN MEASURE OF SAMPLING ADEQUACY. 0.807

Approx. Chi-Square 747.789
Bartlett's Test
of Sphericity df 231
Sig 0.000
.

INTERPRETATION:
The KMO value close to 1 indicates that pattern of correlation are relatively compact and so factor
analysis yielded is reliable. Kaiser (1974) recommend accepting values greater than 0.5 as acceptable. Value
between 0.7 and 0.8 are good. For the present study the KMO value is 0.807 which falls in to the range of being
good. So, the researcher is a confidence that the factor analysis is appropriate for this data. The Bartlett’s test is
highly significant (p<0.0001) therefore the factors analysis is appropriate.
8.1.1 Reliability Analysis
RELIABILITY STATISTICS Table 3
CRONBACH'S ALPHA CRONBACH'S ALPHA BASED ON N OF ITEMS
STANDARDIZED ITEMS
0.759 0.435 22

INTERPRETATION:
The corrected item total correlation is the correlation between each item and the total score from the
questionnaire for Job satisfaction. The overall alpha is 0.435. So all values of alpha shows an increase
Cronbach’s alpha value with states more reliability.
 TABLE 4 ANNOVA WITH COCHRAN’S TEST
VARIABLES SUM OF DF MEAN SQUARE COCHRAN'S Q SIG
SQUARES
Between People 115.616 99 1.168
Between Items 763.813 21 36.372 691.193 0.000
Within People Residual 1556.824 2079 0.749
Total 2320.636 2100 1.105
Total 2436.253 2199 1.108
Grand Mean = 1.97
INTERPRETATION:
Cronbach’s alpha is a most common measure of internal consistency (reliability) of questionnaire. It is
commonly used for my questionnaire since the researcher has adopted Likert 5 point scale question to identify
whether the scales are reliable. Mean square is 1.168 between people, sum of squares is 115.616 between
people, within people sum of squares is 1556.824 and mean is 0.749.

TABLE5 TOTAL VARIANCE EXPLAINED

COMPONENT INITIAL EIGENVALUES EXTRACTION SUMS OF ROTATION SUMS OF
SQUARED LOADINGS SQUARED
LOADINGS
TOTA PERCENT CUMULATIV TOTAL PERCENTA CUMULATIV TOT PERCENT CUMULATIVE
L AGE OF E GE OF E AL AGE OF PERCENTAGE
VARIAN PERCENTAG VARIANC PERCENTAG VARIANCE
CE E E E
1 3.458 15.717 15.717 3.458 15.717 15.717 2.550 11.590 11.590
2 2.432 11.056 26.773 2.432 11.056 26.773 2.503 11.380 22.969
3 2.097 9.533 36.306 2.097 9.533 36.306 2.465 11.203 34.172
4 1.805 8.205 44.511 1.805 8.205 44.511 2.173 9.879 44.051
5 1.793 8.150 52.661 1.793 8.150 52.661 1.894 8.609 52.661
6 1.295 5.885 58.546
7 1.199 5.449 63.995
8 1.189 5.407 69.402
9 1.063 4.832 74.234
10 0.815 3.705 77.939
11 0.784 3.562 81.501
12 0.716 3.256 84.756
13 0.651 2.959 87.715
14 0.571 2.594 90.309
15 0.457 2.078 92.387
16 0.350 1.591 93.978
17 0.311 1.415 95.393
18 0.293 1.330 96.724
19 0.230 1.045 97.769
20 0.207 0.940 98.709
21 0.148 0.671 99.381
22 0.136 0.619 100.000
Extraction Method: Principal Component Analysis.

INTERPRETATION:
This output list the Eigen values associated with each linear components (factor) before extraction,
after extraction and after rotation. Before extraction SPSS has identified 22 linear components within the data
set. The Eigen value associated with each factor represent variance explained by the linear component and the
SPSS also displays Eigen value in the terms of percentage of variance explained. So factor 1 explains
percentage (of total variance) It is clear that the first few factors explain relatively large amount of variance
(especially factor 1) Whereas subsequent factor explains only small amount of variance. SPSS extract all factors
with Eigen value greater than 1. Before rotation factor 1 accounted for considerably more variance then the
remaining 8. (45.167 percent compared to 7.913 percent, 5.514 percent, 4.919 percent, 3.554 percent and 2.195
percent) However after extraction it accounts for only 14.794 percent of variance compared (to 11.222 percent,
9.808 percent, 7.900 percent, 4.915 percent and 3.838 percent)
However after extraction it accounts for only 14.794 percent of variance compared (to 11.222 percent, 9.808
percent, 7.900 percent, 4.915 percent and 3.838 percent)
 TABLE 6 COMMUNALITIES

INTERPRETATION:
Communalities are shown in the output and for this study none of the variables goes less than 0.5 the average of
communalities can be found by adding them up and dividing by the number of communalities.

CHART 1 SCREEN PLOT

INTERPRETATION:
The screen plot shows a thunder bolt indicating the point of inflection on the curve. This curve begin to tail off
after four factor but there is another drop after four factors before a stable plateau is reached.

TABLE 7t-TEST
The t-test was conducted to assess whether attrition differ significantly among the gender .S.D, mean, and t-
value were computed for reasons for attrition and its dimensions.
HO: There is no significant difference in gender and the reason for attrition
H1: There is significant difference in gender and the reason for attrition
 ONE SAMPLE STATISTICS
VARIABLES N MEAN STD. DEVIATION STD. ERROR MEAN
Gender 100 1.34 0.476 0.048
Attrition 100 2.20 0.985 0.098

The above table output reveals that for 100 observations, the mean is 1.34 and standard deviation is 0.476 and
standard error of the mean is 0.048(0.476/square root of 100) =0.048
ONE SAMPLE TEST
VARIABLES TEST VALUE = 0
T DF SIG. (2- MEAN 95% CONFIDENCE INTERVAL
TAILED DIFFERENC OF THE DIFFERENCE
) E LOWER UPPER
Gender 28.146 99 0.000 1.340 1.25 1.43
Attrition 22.341 99 0.000 2.200 2.00 2.40

INTERPRETATION:
The table output gives the t-test values, the third column explains t-test degree of freedom100-1=99.if one tailed
critical t value is less than the observed t and the mean are in the right order than we can reject Ho.
Here the critical is 0.000 and observed y is 28.146 so we fail to accept Ho.
There is significant difference between attrition with respect to gender, and Ho is rejected.
TABLE 8 t-TEST
The t-test was conducted to assess whether attrition can be lowered differ significantly among the age.S.D,
mean, and t-value were computed for attrition can be lowered and its dimensions.
HO: There is no significant difference between age with respect to attrition
H1: There is significant difference between age with respect to attrition

ONE-SAMPLE STATISTICS
VARIABLES N MEAN STD. DEVIATION STD. ERROR MEAN
Age 100 1.28 0.451 0.045
Attrition 100 1.22 0.416 0.042

This table output reveals that for 100 observations, the mean is 1.28 and standard deviation is 0.451 and
standard error of the mean is 0.045(0.451/square root of 100) =0.045

ONE-SAMPLE TEST
VARIABLES TEST VALUE = 0
T DF SIG. (2-TAILED) MEAN 95% CONFIDENCE INTERVAL
DIFFERENC OF THE DIFFERENCE
E LOWER UPPER
Age 28.365 99 0.000 1.280 1.19 1.37
Attrition 29.303 99 0.000 1.220 1.14 1.30

INTERPRETATION:
The table output gives the t-test values, the third column explains t-test degree of freedom100-1=99.if one tailed
critical t value is less than the observed t and the mean are in the right order than we can reject Ho.
Here the critical is 0.000 and observed y is 28.365 so we fail to accept H0.
There is significant difference between age with respect to attrition, and H0 is rejected.

TABLE 9 ONEWAY ANNOVA

H0: There is no significant difference among the departments in the company as the reason for attrition
H1: There is significant difference among the departments in the company as the reason for attrition

VARIABLES SUM OF SQUARES DF MEAN SQUARE F SIG.

Between Groups 6.194 3 2.065 2.081 0.108
Within Groups 95.246 96 0.992
Total 101.440 99

INTERPRETATION:
Since the exact significance value 0.108 is greater than alpha value 0.005 the results are not statistically
significant, hence reject H0 and There is significant difference among the departments in the company as the
reason for attrition
 TABLE 10 MULTIPLE REGRESSION ANALYSIS.
Multiple Regression is conducted to understand the relationship between several predictors. Kerlinger
and lee (2000) defined that multiple regression is a statistical method that is related to dependent variable in a
linear combination of one or more independent variables. they further explained that this procedure can help
researchers determine how much each independent variables explains or relates to the dependent variable.
An important output of multiple regression isR 2.THE SIGNIFICANT OF R2 determined by the F-test ,which is
the same as testing the significance of the regression model.if the probability of obtaining a large value less than
0.00,then the model is considered significantly better than expected .it is concluded that there is a linear
relationship between the dependent variable .duedin-watson values should not be less than 1 or greater than 3
respectively.
The results of the multiple regression analysis are tabulated
Ho:There is no significant difference among the factorsas a predictor in explaining attrition in the company.

Dependent variable:
MODEL SUMMARY
MODEL R R ADJUS STD. CHANGE STATISTICS DURBI
SQUAR TED R ERROR OF N-
E SQUAR THE WATS
E ESTIMATE ON
R SQUARE F DF1 DF2 SIG. F
CHANGE CHANGE CHANGE
1 0.218a 0.47 0.038 0.40174 0.047 87.870 1 98 0.030
2 0.316b 0.50 0.081 0.39253 0.052 5.653 1 97 0.019 1.438
The model indicates a strong predictor of the dependent variable with multiple determination R square (Goodness of fit) value is
0.47 and F-value is 87.87 (p<0.01). In factor R of multiple cross-correlations, 32 percent shows high cross correlation. The table
illustrates the results of the step-wisemultiple regression with attrition as the dependent variable and the dimensions of
independent determinants like JS,QOS,OE.
Since the p value (F prob) is < 0.005 the null hypothesis is rejected at 5 percent level of significant. Hence, There is significant
difference in the organizational effectiveness and the job satisfaction of the organization.

ANOVA
MODEL SUM OF SQUARES DF MEAN SQUARE F SIG.
Regression 0.786 1 0.786 4.870 0.030b
1 Residual 15.816 98 0.161
Total 16.603 99
1.657 2 0.828 5.377 0.006c
Regression
2
Residual 14.946 97 0.154
Total 16.603 99

INTERPRETATION:
The model regression values are as follows having sum of squares 0.786 with the mean sum of square 0.78 and its F value 4.870
and the result of ANOVA value states it is significant.

COEFFICIENTS AND COLLINEARITY STATISTICS

MODEL UNSTANDARDIZED STANDARDIZED t SIG.
COEFFICIENTS COEFFICIENTS
B Std. Error Beta
(Constant) 2.125 0.168 12.644 0.000
1 OEM 0.179 0.081 0.218 2.207 0.030
(Constant) 1.660 0.256 6.493 0.000
2 OEM 0.206 0.080 0.251 2.575 0.012
QOSM 0.223 0.094 0.231 2.378 0.019
a. Dependent Variable: JSM
H1 : There is significant difference among the factorsas a predictor in explaining attrition in the company.
 Y=α+x1OE +x2QOS
The standardized beta coefficient gives a measure of the contribution of each variable.
A large value indicates that a unit change in this predictor variable has a large effect on the criterion variable

INTERPRETATION:
The inter correlation for all the constructs of Employee attrition had positive correlation with
job satisfaction, organizational performance, organizational effectiveness, and quality of service which is
statistically significant at 0.0001

TABLE 12 CHI SQUARE TEST

H0: There is no significant association between employees searching new job and lowering attrition rate.
H1: There is significant association between employees searching new job and lowering attrition rate.
FACTORS TO LOWER ATTRITION
VARIABLES FACTORS TOLOWER ATTRITION TOTAL
Yes No
Count 64 14 78
Yes Expecte 65.5 12.5 78.0
d Count
Attrition 20 2 22
Count
No Expecte 18.5 3.5 22.0
d Count 84 16 100
Count
84.0 16.0 100.0
Total Expecte
d Count

From the above table infers the association of employee job seeking behavior and its effect towards attrition.

CHI SQUARE TEST

VARIABLES VALUE DF ASYMP. SIG. (2- EXACT SIG. (2- EXACT SIG. (1-
SIDED) SIDED) SIDED)
a
Pearson Chi-Square 1.002 1 0.317
Continuity Correctionb 0.451 1 0.502
Likelihood Ratio 1.114 1 0.291
Fisher's Exact Test 0.512 0.260
Linear-by-Linear Association 0.992 1 0.319
N of Valid Cases 100

INTERPRETATION:
The symmetric measure table, tests the strength of association which is very strong. Pearson chi square p value is 0.317 which is greater than the
0.05, the results are not statistically significant and There is significant association between employees searching new job and lowering attrition
rate.

IX. FINDINGS
OBJECTIVE OFTHE STUDY ANALYSIS FINDINGS
PRIMARY OBJECTIVE:
 To determine the highly contribution  MULTIPLE  There is no significance difference in
factors which affects employee REGRESSION the dimension of the factors as a
attrition ANNALYSIS predictor
in explaining employees attrition
SECONDARY OBJECTIVE:  t-TEST  There is significant difference among
 To analyse the impact of demographic variables age and gender
demographic factors on attrition and the reason for attrition and H0 is
rejected
 There is no significant association
 CHI SQUARE between employees searching new
 To determine the need of employees job,lowering attrition rate.thus null
searching new job hypothesis is accepted.

X. SUGGESTIONS.
 Create a rotational schedule for roles with sets of tasks that cycle 2 or 3 times a year.
 Encourage employee pride by offering innovative programs that demonstrate that they are important to the
success of the company.
 Many employees have suggested improvement in working environment and employeemotivation in the
survey. So the companies should give attention to the factors which itcan improve itself internally.
 Even though the employees are satisfied with their nature of job, it is identified in thestudy that many
employees prefer to change their job due to lack of growth opportunitiesin their job. So the companies can
look for some innovative technologies to decrease theirattrition level by providing growth opportunities.
 The companies should conduct regular meetings to know about what exactly employeesexpect.
Organizations should focus on exit interviews.
 The companies may give training like Personality Development and Self – improvementtraining to the
employees, every three or six months once this status has to be reviewedand necessary action can be taken.
It is better to have such training in the future.

XI. CONCLUSION
This study concludes that to reduce attrition industries should create some opportunities for the growth
of their employees within the organization by adopting new Innovative Technologies and Effective training
programs. Employee satisfaction is essential to any effective employee retention strategy - any good HR
manager knows that. However few managers think of the impact that employee satisfaction has on their
customers and ultimately company profits. The HR professionals in IT are needed to be flexible in their
approach of developing, motivating and retaining their talent pool. The IT management should skillfully
communicate IT policies to their employee. To reduce the employee turnover rate the company has to
concentrate more on working condition and Safety measures. So it leads the organization to retain their
employees.The main aim of any organization is to earn profit. But to attain the maximum profit, the
organization should concentrate more on employees and the ways to retain them for their long run. From the
study it is identified that lack of growth opportunities and salary are the major factors which force employees to
change their jobs. To reduce attrition industries should create some opportunities for the growth of their
employees within the organization by adopting new Innovative Technologies and Effective training programs.
Thecompany should also think of recruiting people who are in the vicinity of the industry, so that the family
related problems will not lead to attrition.

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