See discussions, stats, and author profiles for this publication at: https://www.researchgate.

net/publication/323186622

A study on employee attrition with reference to Lanson Toyota,

Chennai

Article in Man in India · January 2017

CITATION READS

1 11,153

2 authors, including:

V Krishna Priya
Vels Institute of Science Technology and Advanced Studies
32 PUBLICATIONS 57 CITATIONS

SEE PROFILE

All content following this page was uploaded by V Krishna Priya on 20 April 2020.

The user has requested enhancement of the downloaded file.

Man In India, 97 (22) Part 2 : 115-124 © Serials Publications

A STUDY ON EMPLOYEE ATTRITION WITH REFERENCE

TO LANSON TOYOTA, CHENNAI
V. Krishna Priya* and H. Hari Harasudha**

Abstract: The present study is bound to assess the causes of attrition and to find the expectation of
employees to retain them in the organization. The primary data is collected through the structured
questionnaire from 100 stakeholders, through stratified random sampling. It includes various
levels of employees in the automobile industry. Chi-square, Anova, comparision and correlation
are used for the analysis. The result shows that employees with experience are not promoted
due to which they are dissatisfied. Employees receiving low income, no promotion or no career
growth ,developing stress may look for better opportunities. Employees except job security to
retain themselves in the organization. Due to lack of growth opportunities they prefer to change
job. So, the organization has to provide atleast required benefits and rewards to employees to
make them retain and explore their career.
Keywords: Employee Attrition, Expectation of employees, Job security.

INTRODUCTION

“Attrition creates a vacuum in the organization”

Attrition is the shrinkage in employees number through retirement, voluntary/
involuntary resignation or death. It is also called as the total turnover. The employee
turnover has become a biggest issue in many organizations.(jeen,2014). Attrition
reflects the organization internal strength and weakness as well as the ability of the
company. Attrition is considered as a twofold issue in many company, first that is
related to cost and second retaining the experienced talent. Most of the organizations
are battling with the increasing rate of attrition globally. (Kadam & Thakar, 2014).
Application of Human resources has no alternative and they have continuous role
to play in any organization. So, the major problem against human resources is
attrition. As the rate of attrition increases day to day the organization production
and productivity will be effected. (Chandrasekar, 2011). Employee attitude and
candidate absconding are the major entanglement for every organization.
Both these are bigger than attracting talent. In current knowledge impelled
market place employees are the most vital human capital assets and attrition is
the serious problem here. Attitude impacts organizations competing advantage.
Employee attitude is a global issue. If the employees who are trained well and
adapted to the organization leave the organization means it creates a vacuum which
*
Research Scholar,School of Management Studies, Vels University, Chennai-117. E-mail:
[email protected]
**
Assistant professor, School of Management Studies, Vels University, Chennai-117. E-mail:
[email protected]
116 MAN IN INDIA

loses key skills, knowledge and business relationship. Maximum effectiveness,

growth and progress of the organization become lower. Every organization need
to be clear in the concept that attracts and retains a potential employee and need
to predict attrition early in the recruitment process to curtail significant loss of
productivity among hiring managers, recruiters and consequent loss of money
and revenue.

Objectives
• To examine the reasons for attrition among employees.
• To find the expectation of employees to retain them.
• To provide suggestions and activities to reduce attrition rate and improve
retention helps to maximize the profits.
REVIEW OF LITERATURE
Ade Abdulquadri, Bilau, Musibau Akintunde Ajagbe, Anthony Babatunde
Sholanke, Tolani Abdulrahman Sani (2015), expressed the issue of employee
turnover has raised burden in the construction industries which effects productivity.
It was mentioned that only few resources have been used in recruiting, training and
developing the employees, due to which they leave for other organizations. Their
research was aimed at determining the impact of employee’s turnover rate in small
and medium construction firms in Nigeria.
N. Bharathi, P. Paramashivaiah (2015), articulated that in a BPO Sector,
employees leave the organization either entirely or change their industry. Since all
the research is focused on the issues and antecedents of attrition the consequences
where not much focused so the study focuses on a holistic view rather than a
specific portion.
Shine David (2015), in the research said that the employees working in the IT
sector in various cities of India (Mumbai, Pune, Bangalore, Delhi and Indore) to
analyse the case of attrition. Samples were collected with 21 factors/items which
resulted in 5 factors. Findings of the study suggest that organisational culture,
working conditions, career growth opportunities, work pressure and mutual trust.
The conclusion that was provided was employee friendly organisational culture with
positive working conditions, low pressure and higher opportunities for career growth.
Asma farooque, Habibuddin (2015), investigated several factors that are
affecting high attrition rate in hotel industry. A study conducted by an industry
chamber located in New Delhi reveals that the attrition rate in the hospitality industry
in India is set to double to nearly 50 per cent by 2010, up from the earlier 25 per
cent growing at an alarming rate of 10 per cent per annum. The result showed that
the lack in salary, stress in job, compensation, better opportunities and stake issues
were the major reasons behind the problem of attrition in the company.
 A STUDY ON EMPLOYEE ATTRITION WITH REFERENCE TO... 117

Batty Dorance Jeen (2014), mentioned that many organizations have the
concern of employee turnover. It is highly destructive to both the organization
as well as the employees. The research was conducted for the retail industry in
Bangalore. Despite the incentives, motivational techniques and old practises
of HRM there is still high attrition rate so study showcases ways to reduce the
intentions of employee leaving the organization. This is performed by distributing
questionnaires to retail outlets in Bangalore. The study concluded that turnover
intention has influence on attrition factors such as QWL, career growth, working
hours, personal/family reasons, and relation with internal co – worker, welfare,
working condition, and salary.
Venkata Naga Manjula, Ruchita Ramani, Swati John (2013), articulated
that the objective of the study is to understand the growth of ITES sector in India.
The study in the BPO Industry is to understand and gauge the attrition rate, its
intensity and make a causal analysis, to design strategy to stabilise the sector by
suggesting mitigating the attrition.
Shivani Mishra, Deepa Mishra (2013), articulated that the study carried out
is for shipping industry of Kutch, Gujarat. The purpose of the study is to analyse
the turnover and the commitment to identify several domains of organization,
human resource practices and other like employee characteristic and environmental
factors, which may have a positive or negative impact on employees‘ intention to
stay with an organization.
Vibha Gupta (2013), stated that in recent years the turnover is high in BPO
sectors either by absenteeism or employees absconding without any prior notice.
Turnover rates for permanent Agents/Executives were 15.6% in 2009 and 35% in
2012. Department of Human Resources which also tracks attrition of temporary
employees measured the turnover rate for temporary employees to be 77% in 2012.
Therefore study is focused on recruitment and retention challenges that the IT/BPO
industry currently faces and to examine ways to reduce high turnover rates among
first year Employees in the leading Domestic Call Center based in Indore.
Michael O. Samuel, Crispen Chipunza (2013), articulated that due to the
competition for top academic across the higher education and research landscape of
South Africa has assumed a prominent dimension and this phenomenon has resulted
in the ever increasing attrition. The research seeks to identify and evaluate factors
that facilitate the attrition and retention of senior academic employees. Results of the
study indicates that most of the respondents place greater importance on challenging
work, inter-personal relationship, access to research resources and job security.
Gayatri Negi (2013), stated that the study explains that the attrition rate is
inevitable but manageable cause its hard to provide permanent and promising
workforce. This research shows the cause of attrition from various point of view and
what are the effects for both the employer and employee. It also gives us a view on
the positive side of the attrition and the role of leadership skills in controlling attrition.
118 MAN IN INDIA

Shashikala S, Sushma Ravindra (2013), articulated that the groundwork in

the study is in Indian Industry where attrition is present everywhere not in specific
sector. Mainly there are few organizations like IT, Telecom which faces high
attrition. The study portrays that compensation does not lead to employee loyalty
but also salary/wages below the market therefore what are the techniques that can
be used to control attrition.
N. Malati, Dr. Prakash Sharma (2013), stated that the attrition have been
associated with high costs be in the form of direct or indirect. Due to many
Institutions, the availability of competent and qualified faculty is very difficult and
change the institutions frequently. Therefore the study understands the relationship
between direct cost incurred by the institutions and the faculty attrition and the study
revealed that direct cost is decreasing with increasing attrition rates.
Rajesh Verma, Aanchal Aggarwal (2012), articulated that the last decade
saw an outbreak in the growth and development of the Indian Economy. It was
accompanied by the revolution in all fronts and a radical change in the way life
insurance business was done. . It is expected that Indian Insurance sector will be
amongst the top 3 in the world by 2020. To reach up to this level the insurance
companies have to take steps to reduce the increasing rate of attrition. As this study
says that the attrition rate increasing in the sales force in the Insurance sector, the
author made focus on the reasons for attrition among the sales force and how to
manage the attrition rate.
Ankita Srivastava, Yogesh Tiwari, Hradesh Kumar (2011), stated that the
main focus of the study is to identify the root cause of attrition and analyzing the
level of employee motivation, satisfaction and involvement to generate employee
sustenance in the organization. They delivered strong recommendations, which
will eventually be valuable to the organizations to retain their employees for a
long term.
Ms. Shaveta Gupta, Dr. Sukhmani, Ms. HarsimranKaur (2011), articulated
that talent is the critical success factor to any organization. The research concentrates
on retaining the employees and the cost of attrition. Retaining the employees
involves understanding the intrinsic motivators as individuals differ a lot. Attempts
to find out approaches and strategies to retain the employees and also the cost
pertained to attrition.

Research Methodology
This study is undertaken to determine the causes of attrition in automobile industry. In
order to satisfy the above objectives, primary data is collected through the structured
questionnaire, in which the Sec A comprises of questions of Demographical details
and Sec B consist of variables related to attrition.
 A STUDY ON EMPLOYEE ATTRITION WITH REFERENCE TO... 119

The sample size taken for this study is from 100 respondents. Stratified random
sampling is used for this study because the data is collected from the various levels
of employees.

DATA ANALYSIS & INTERPRETATION

CHI-Square
Association between Employee’s income and Experience

Hypothesis
H0 : There is no association between employee’s experience and the opinion towards
income the employee receive.
TABLE 1

S. No Description Value df P-value

A
1. Pearson Chi- Square 1.440E2 9 0.000
2. Likelihood Ratio 133.637 9 0.000
3. Linear-by-Linear Asssociation 78.676 1 0.000
4. N of Valid Cases 100

A. 10 cells (62.5%) have expected count less than 5. The minimum expected
count is 0.45.

Interpretation
Since Pvalue (0.000) < 0.05 Accept H1.
Therefore, we can conclude that there is association between employee’s
experience and the opinion towards income the employee receive.
Association between Stress level and Department members
Hypothesis
H1 : There is association between different department members and the opinion
towards the employee stress level.
TABLE 2

S.No Description Value df P-value

A
1. Pearson Chi- Square 79.574 60 0.046

2. Likelihood Ratio 82.539 60 0.028

3. N of Valid Cases 100

120 MAN IN INDIA

A. 75 cells (96.2%) have expected count less than 5. The minimum expected
count is 0.08.

Interpretation
Since Pvalue (0.046) < 0.05 Accept H1
Therefore, we can conclude that there is association between different
department members and the opinion towards the employee stress level.
Even though there is synergy between different department members in the
organization, sometimes when the synergy is broken, it leads to great disputes and
an employee can be personally affected.

ANOVA
Comparison between Age, Experience and Promotion

Hypothesis
H0 : There is no significant difference in opinion towards Experience and Promotion
among different Age groups.
TABLE 3

S. No Variable Frequency (n) Mean Std. Deviation P-value

1. Age 100 2.23 .750

2. Experience 100 1.86 1.073

0.000
3. Promotion 100 12.26 1.733

Interpretation
Since Pvalue (0.000) < 0.05 Accept H1
Therefore, we can conclude that there is significant difference in opinion
towards Experience and Promotion among different Age groups. When there is
increase in age for employees, the experience level also increases that may lead to
promotion.There is a possibility that the promotion does not lead in increment in
income which can turn the mindset of the employee.
Comparison between Income, Job Security, Stress

Hypothesis
H0 : There is no significant difference in opinion towards employee’s job security
and stress among the income received to run the family.
 A STUDY ON EMPLOYEE ATTRITION WITH REFERENCE TO... 121

TABLE 4

S. No Variable Frequency (n) Mean Std. Deviation P-value

1. Income 100 1.72 .877

2. Job Security (JB) 100 7.94 1.516 0.000
3. Stress (ST) 100 19.67 2.659

Interpretation
Since Pvalue (0.000) < 0.05 Reject H0, Accept H1.
Therefore, we can conclude that there is significant difference in opinion
towards employee’s job security and stress among the income received to run the
family.Increase in income (run the family) provides a better job security and also
reasonable stress level for the employee

CORRELATION
Comparison between Promotion, Compensation and benefits and Superior

TABLE 5

Description Promotion Compensation and Benefit Superior

Pearson
Promotion 1
Correlation

Compensation Pearson
0.258** 1
and Benefit Correlation

Pearson
Superior 0.214* 0.167 1
Correlation

∗∗
. Correlation is significant at the 0.01 level (2-tailed).
∗
. Correlation is significant at the 0.05 level (2-tailed).

Interpretation
The correlation between promotion and Compensation and benefit are positively
correlated (0.258) at 5% significant level.
The correlation between promotion and Superior are positively correlated
(0.214) at 5% significant level.
When the employee is given promotion and moves to the next level, there is
also an increase in compensation and benefit but the employee may not be satisfied
with the package and looks into other organization for better packages.
122 MAN IN INDIA

If there is an increase in the support and understanding of the superior towards

the employee, the superior recommends for promotion for the employee and in turn
there might be a promotion to the next level for the employee.
During that period there is a possibility of dispute rising within the employee
and the superior which changes the mindset of the employee.

Findings of the Study

• It was noticed that employees with experience are not promoted which
invokes dissatisfaction in employees.
• It was found that employees receiving low income or no promotion or no
career growth develops stress and as a result decides to look out for better
opportunities
• It was also found that employees expect job security to retain them in the
organization.
• It was identified that employees prefer a change of job due to lack of growth
opportunities in their job.
• It was noticed that even when good income is provided based on their
designation; employees still shift to another organization if the prospects
are higher.
• It was analysed that if there is no good understanding and support between
superior and subordinate then employees would prefer to change to an
organization with better environment.
• It was found that if the income and the benefits are low then employees
will not retain in the organization rather join an organization where their
value are recognized.
• If the workload is high for the employees it is noticed that the satisfaction
is lowered thus leading to employee leaving the organization.
• It was identified that increase in age and experience should lead to promotion
if not, employee does not retain in the same organization for a long period
of time.
• It was noticed that if there is low income and less job security, the stress of
the employee increases therefore employee will look for organization with
a secure job and high income.
• It is identified that if there is no increase in income for the experienced
employee, employee might have an intention to leave the organization.

RECOMMENDATIONS & SUGGESTIONS

Organization should have pro-active retention strategies to retain the employees.
Providing opportunities for learning by constantly upgrading the skills of employees.
 A STUDY ON EMPLOYEE ATTRITION WITH REFERENCE TO... 123

The organization can look provide excellent technologies and tools to reduce
stress thereby decreasing the level of attrition. Enhancing training programs to
develop their skills and knowledge.
Managing the expectation of the employees is the key to retain them. The
organization can enhance the reward and recognition programs for employees to
portray their valuable support and contribution. Setting up feedback mechanism
can help in perceiving the expectations of the employee which in return can be used
to fulfil the needs of the employee. The organization should focus on employee
satisfaction from time to time to develop strategies to retain them.
Gather information when the employees leave the organization by conducting
an exit interview to perceive why the employee is leaving the organization. This can
help in developing strategies to retain other employees. Engaging employees over
and beyond their day to day job and ensure that their insecurities and vulnerabilities
are addressed appropriately.

CONCLUSION
From the research, we have indentified the reason and expectation of the
employee. Organizations need to build their own motivation system like reward
and recognition program based on employee’s perspective to retain them for a
long tenure. Employees need manageable work load and stress from superiors
and management, and opportunities for growth and innovation. Good income and
benefits will retain employees for a long period of time. Training programs can be
conducted to increase the skill development of employees that lead to promotion
and employee engagement.
Organizations can reduce the employee attrition to some extent but cannot
eradicate completely due to employee’s individual needs.

References
Abdulquadri Ade, Ajagbe Musibau Akintunde, Sholanke Anthony Babatunde, Sani Tolani
Abdulrahman, (2015), “Impact of Employee Turnover in Small and Medium Construction
Firms: A Literature Review”, International Journal of Engineering Research & Technology
(IJERT), Volume 4, Issue 2, (p. 976)
Chandrasekar, K. (2011). Managing Attrition: The Real Problem Behind the Growth of Business
Process Outsourcing (BPO) Companies. Journal of Social Welfare & Management, 3.
David Shine, (2015), “Attrition in IT”, International Journal Of Core Engineering & Management
(IJCEM), Volume 2, Issue 1, (p. 236)
Dorance Jeen S. Batty, (2014), “A Study on Attrition – Turnover Intentions in retail Industry”,
International Journal of Business and Administration Research Review”, Volume 1, Issue
3, (p. 55)
Farooque Asma, Habibuddin, (2015), “Employee Attrition Analysis of Hotel Industry”,
International Journal of Advancement in Engineering Technology, Management & Applied
Science, Volume 2, Issue 12, (p. 34)
 124 MAN IN INDIA

Gupta Shaveta, Sukhmani, HarismramKaur, (2011), “Retention Management And Cost Of

Attrition”, Gian Jyoti-Journal, Volume 1, Issue 1, (p. 179)
Gupta Vibha, (2013), “An Analysis of Attrition: Retention Strategy forIT/BPO Industry”,
International Journal of Advance Research in Computer Science and Management Studies,
Volume 1, Issue 7, (p. 434)
Joshi, Upasna, (2010), “Antecedents of Employee Attrition in BPO Industry”, Indian Journal of
Economics & Business, Volume 9. Issue 2, (p. 361)
Manjula Venkata Naga, Ramani Ruchita, John Swati, (2013), “Employee Attrition in ITES sector
- A casual Aanalysis”, ASM’s International E-Journal of Ongoing Research in Management
and IT, Volume 2, Issue 1, (p. 70)
Mishra Shivani, Mishra Deepa, (2013), “Review of Literature On Factors Influencing Attrition And
Retention”, International Journal of Organizational Behaviour &Management Perspective
© Pezzottaite Journals, Volume 2, Issue 3, (p. 435)
N. Malati, Sharma Prakash, (2013), “An Empirical Study on the Impact of Cost on Faculty Attrition
in Technical Institutions”, American International Journal of Research in Humanities, Arts
and Social Sciences, Volume 2, Issue 1, (p. 69)
Negi Gayatri (2013), “Employee Attrition: Inevitable yet manageable”, International Monthly
Refereed Journal of Research In Management & Technology, Volume 2, Issue 3, (p. 50)
Raisinghani Manju, (2015), “Managing Employee Attrition – an Empirical Study in Education
Sector”, Indian Journal of Applied Research, Volume 5, Issue 4, (p. 370)
Ravindra Sushma, S Shashikala, (2013), “A Study on causes & Control Techniques for Attrition
Rate in Indian Industry”, Asia Pacific Journal of Research, Volume 2, Issue 4, (p. 41)
Shashikala S, Sushma Ravindra, (2013), “A Study on causes & Control Techniques for Attrition
Rate in Indian Industry”, Asia Pacific Journal of Research, Volume 1, Issue 4, (p. 20)
Srivastava Ankita, Tiwari Yogesh, Kumar Hradesh, (2011), “Attrition and Retention of Employees
in BPO Sector”, International Journal of Computer Technology and Applications, Volume
2 (6), Issue 3, (p. 3057)
Verma Rajesh, Aggarwal Aanchal, (2012), “A Study of Attrition Rate Among Sales Force of
Life Insurance Companies in Delhi”, Journal of Arts, Science & Commerce, Volume 3,
Issue 4(1), (p. 90).

View publication stats