3276602286000
EMPLOYEE TURNOVER
AT
HDB financial services
Submitted in partial fulfillment for the award of the Degree of
Master of Business Administration, JNTU, Hyderabad
By
R.BHAVANI
16R11E0039
Under the Guidance of
MRS. VIJAYA LAKSHMI,
Asst. Professor, Department of Management Studies
Department of Management Studies
GEETHANJALI COLLEGE OF ENGINEERING AND TECHNOLOGY
(AUTONOMOUS)
NAAC Accredited, Approved by AICTE and Affiliated to JNTUH
Cheeryal, Keesara, Medchal Dist. – 501301
Academic Year 2017-18
CONTENTSPAGE NUMBERS
Chapter
1. Introduction
Introduction to the topic, Study
Need for the Study
The scope of the Study
Objectives of the study
Research Methodology (Brief)
Company Profile
Limitations of the Study
2. Literature Review
3. Research Methodology
3.1 Problem Identification
3.2 Research Design
3.3 Research Method
3.4 Sources of Data
3.5 Tools and Techniques for Data Analysis
4. Data Analysis and Interpretations
5. Findings, Suggestions, Future scope, and Conclusion
Bibliography
DECLARATION
I hereby declare that this Project Report titled Causes and Prevention of Industrial Accidents at EMPLOYEE TURNOVER AT HDB financial services submitted by me to Jawaharlal Nehru Technological University, Hyderabad is a bonafide work undertaken by me and it is not submitted to any other University or Institution for the award of any degree diploma/certificate or published any time before.
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Name & Signature of the Student
1.1 Introduction to the topic
Employee turnover refers to the number or percentage of workers who leave an organization and are replaced by new employees. Measuring employee turnover can be helpful to employers that want to examine reasons for the turnover or estimate the cost-to-hire for budget purposes. Blanket references to turnover can be confusing; therefore, specific definitions and calculations for employee turnover may be useful to human resources practitioner.
Comparison of Different Turnovers
Although different types of turnover exist, the general definition is that turnover occurs when the employment relationship ends. Turnover and attrition – terms that are sometimes used interchangeably or together when describing the departure of an employee – are different. Attrition generally refers to the end of the employment relationship due to retirement, job elimination or employee death, and is distinguishable from turnover because when attrition occurs, the position is not filled with a new employee. Involuntary TurnoverEmployee termination for poor job performance, absenteeism or violation of workplace policies is called involuntary turnover – also referred to as termination or discharge. It’s involuntary because it wasn’t the employee’s decision to leave the company.
Voluntary TurnoverWhen an employee leaves the company of her own volition, it’s called voluntary termination. Employees give a number of reasons for leaving their jobs. They may be accepting employment with another company, relocating to a new area or dealing with a personal matter that makes it impossible to work.
Desirable and Undesirable TurnoverTurnover often has a negative connotation, yet turnover isn’t always a negative event. For example, desirable turnover occurs an employee whose performance falls below the company’s expectations is replaced by someone whose performance meets or exceeds expectations. It’s desirable because poor job performance, absenteeism, and tardiness are costly replacing a poor performer with an employee who does his job can improve the company’s profitability. Desirable turnover also occurs when replacing employees infuses new talent and skills, which can give an organization a competitive advantage. Conversely, undesirable turnover means the company is losing employees whose performance, skills and qualifications are valuable resources.
Turnover CalculationsBasic turnover calculations are relatively simple. If your company employs 100 employees and 15 employees are fired or quit, your turnover is 15 percent. Most organizations use more detailed calculations to determine what underlies turnover. Assume five employees leave in January, one employee leaves in May and four employees leave in November. Your annual turnover rate is 10 percent, and your average monthly turnover is 8.3 percent.
Employee turnover calculations may also factor in different types of turnover, such as involuntary and voluntary, or even more specific reasons why employees leave, such as poor performance, absenteeism or employees accepting new jobs elsewhere. Turnover calculations are helpful to determine hiring costs, training requirements or estimating staff time devoted to recruitment activities.
Causes of employee turnover:
Rude Behavior. Rudeness, assigning blame, and back-biting are among reasons that aggravate employee turnover…
Work-life imbalance. Increasing economic pressures, organizations continue to demand that one person do the work of two or more people. This is especially true when an organization downsizes or restructures, resulting in longer hours and weekend work. Employees are forced to choose between a personal life and a work life.
The job did not meet expectations. It has become all too common for a job to significantly vary from the initial description and what was promised during the interviewing stage. When this happens it can lead to mistrust. When trust is missing, there can be no real employee ownership.
Employee misalignment. Organizations should never hire employees unless they are qualified for the job and in sync with the culture and goals of the organization. Neither management nor employee will be happy, and it usually ends badly.
Feeling undervalued. Everyone wants to be recognized and rewarded for a job well done. It’s part of our nature. Recognition does not have to be monetary. The most effective recognition is sincere appreciation. Recognizing employees is not simply a nice thing to do but an effective way to communicate appreciation for positive effort, while also reinforcing those actions and behaviors.
Coaching and feedback are lacking. Effective managers know how to help employees improve their performance and consistently give coaching and feedback to all employees. Ineffective managers put off giving feedback to employees even though they instinctively know that giving and getting honest feedback is essential for growth and building successful teams and organizations.
Raises and promotions were frozen. Raises and promotions are often frozen for economic reasons but are slow to be resumed after the crisis has passed. Organizations may not have a goal to offer the best compensation in their area, but if they don’t, they better pay competitive wages and benefits while making their employees feel valued! This is a critical combination.
Growth opportunities not available
A lot of good talent can be lost if the employees feel trapped in dead-end positions. Often talented individuals are forced to job-hop from one company to another in order to grow in status and compensation. Employees who can see a potential for growth and comparable compensation are more inclined to stay with an organization.
1.2 NEED FOR THE STUDY
The study on employee turnover was conducted to understand the process and to identify the reasons why employees leaving the organization. Based on the observations, measures to control the errors are suggested.
1.3 SCOPE OF STUDY
The scope explores a data in finding the employee turnover in the reputed company HDB on contract in enhancing the strategies for developing the turnover and data enchant of the 50employees who are willing to sign off from the industry.
1.4 OBJECTIVE OF THE STUDY
To identify the reason for employee turnover in HDB (housing and development board) financial services.
To provide suggestions for employee retention
1.5 RESEARCH METHODOLOGY
Research methodology is a method to solve the employee turnover in the organization.
This is a purposive study which is descriptive as well as exploratory (housing development and financial corporate) in nature. The main reason behind choosing this purposive study is to focus on characteristics of a population, for example, a gender, qualification, designation, work experience that are of interest, which will best enable the respondent to answer the research questions.
In this study, two variables that are, dependent and independent variables are correlated in order to identify the impact of one variable on other and also to know the relationship between both the variables. Those variables are then measured through a questionnaire that was distributed to the employees and after collecting the data, the data was analyzed through a statistical test.
The statistical test used in this study is Pearson Correlation which is calculated in Ms-excel. Each and every variable is correlated with related variable and based on the results interpretations are determined.
RESEARCH DESIGN:
A research design is the specification of methods and procedures for Acquiring the information needed to structure or solve the problem. It is the overall operational pattern or framework of the project that stimulates what information is to be collected from which source and by what procedure. This kind of research has the primary objective of development of insights into the problem. It studies the main area where the problem lies and also tries to evaluate some appropriate courses of action
1.9 COMPANY PROFILE AND LIMITATIONS:
COMPANY PROFILE:
HDFC (Housing Development Financial Corporation) Bank Limited is an Indian banking and financial services company headquartered In Mumbai Maharashtra. It has 84,325 employees and has a presence in Bahrain, Hong Kong, and Dubai.HDFC Bank is India’s largest private sector lender by assets. It is the largest bank in India by market capitalization as of February 2016. It was ranked 69th in 2016 Brand Top 100 Most Valuable Global Brands.
THERE VISION
To be customer driven best-managed enterprise that enjoys market leadership in providing housing related finance.
Mission
HDB bank mission is to be a “world class Indian bank”, benchmarking themselves against international standards and best practices in terms of product offerings, technology, service levels, risk management and audit and compliance.
Limitations:
The data was collected only from the financial superiors. The findings and conclusion of the study may not be applicable to other industries.
The present study is based on the judgment of the employees and it is presumed that the employees judgment is good enough to provide bias-free information.
LITERATURE REVIEW
Dr. Adnan Iqbal, Article · January 2010 publisher in research gate says Employee turnover has always been one of the challenges to the human resource managers and the respective employers in any fast-growing economies including the Kingdom of Saudi Arabia. Most of the employers in the Kingdom are not aware of why employees choose to leave their organizations and why they stay. Employees who leave the organization’s request,as well as those who leave on their own initiative, can cause disruptions in operations, work team dynamics and unit performance. Both types of the turnover create costs for the organization.
https://www.researchgate.net/publication/215912138 Employee Turnover: Causes, Consequences and Retention Strategies in Saudi Organizations
Dr. Kenneth W. Hollman article September 2000 publisher in public personnel management says Turnover is the rotation of workers around the labor market; between firms, jobs, and occupations; and between the states of employment and unemployment.1 “In-house engineering,” “revolving door policy,” and “management by turnover,” are a few of the many colorful and euphemistic terms used to describe this organizational phenomenon. By whatever name or form, labor turnover is one of the most significant causes of declining productivity and sagging morale in both the public and private sectors
https://doi.org/10.1177/009102600002900303 Turnover: The Real Bottom Line
Henry Ongori Article in African journal of business management · June 2007 publisher in research gate says that “Employee turnover” as a term is widely used in business circles. Although several studies have been conducted on this topic, most of the researchers focus on the causes of employee turnover but little has been done on the examining the sources of employee turnover, effects and advising various strategies which can be used by managers in various organisations to ensure that there is employee continuity in their organisations to enhance organizational competitiveness.
http://www.academicjournals.org/ajbm a review of the literature on employee turnover
Sidney R Siegal article June 1992 publisher in Journal of Engineering and Technology Management says that A survey response from 107 engineers was used to develop and test an integrated model of turnover intentions incorporating role stressors, task characteristics, job involvement, job satisfaction, and organizational commitment as predictors of intention to leave the organization. Results of this study provide moderate support for the proposed model and the pattern of linkages specified among the variables. Results show that organizational commitment had a direct and negative effect on intention to leave the organization. Indirect effects on the intention to leave were found for job satisfaction, job involvement, task characteristics and role stressors. Results also show that job satisfaction is considered the most important factor directly affecting organizational commitment. In addition, job involvement, challenge, and role ambiguity had both direct and indirect effects on organizational commitment.
https://doi.org/10.1016/0923-4748(92)90001-L An examination of the antecedents of the turnover propensity of engineers: An integrated model
CHAPTER 3
RESEARCH METHODOLOGY
Research design:
Study on understanding the software, to identify the errors and how to reduce those errors. This study is related to “DESCRIPTIVE RESEARCH” as it is a study of the characteristics of the phenomenon.
3 Collection of data:
The data collected is primary data and secondary data
Primary Data
The data required for the study have been collected from-
QUESTIONNAIRE survey from the employees
PERSONAL INTERVIEW with the company representatives.
Secondary data
The secondary data related to the study have been collected from:
Internet
Websites
Textbooks
Articles
3.6 PLACE OF STUDY:
The place of study is HDB bank.
SAMPLE SIZE:
The sample size for the study is 50 and the sampling method used is a convenient sample method
TOOLS OF DATA COLLECTION:
In this study, a structured questionnaire is used that consists of a Likert scale
For data analysis, MS-excel is used and the statistical tool used for the data is Pearson Correlation. This statistical tool is used in order to determine the relationship between one variable with another or vice versa
CHAPTER 4
DATA ANALYSIS AND INTERPRETATION
Techniques of the Analysis:
The data collected in the form of a questionnaire answered by the respondents from selected organization .The information collected was processed and tabulated suitably by highlighting all the parameters. The theoretical information was converted in numbers by ranking the Likert point Scales .The test statistics were used with the help of M.S Excel, and SPSS, for the presentation of the data, tables, and charts and bar diagrams.
Work environment Work-life imbalance Stress Carrier growth culture
Work environment 1 Work-life imbalance -0.20027 1 Stress -0.19704 0.77016 1 Carrier growth -0.04702 0.183473 0.80138 1 Culture 0.10603 0.223502 0.162016 0.026009 1
The above table shows the relationship between two variables that are considered as the main factors for employee turnover. The analysis was done by considering five major factors in relation to employee turnover that is mentioned in the above table the factors are a work environment, work-life balance, stress, career growth, and culture
The analysis is done based on the responses of the housing development financial corporation and the responses were collected from the questionnaire that was distributed to the employees of the organization.
For the analysis, the Pearson Correlation test is used to find out the relation between two variables that is, independent and dependent variables and the test is done on
MS-excel for more accurate results.
Here in the below analyzation process, we are enhancing the parameters such bases goes on varying different conditions in approaching the employee turnover of HDFC banking sector. Some of the important characteristics like carrier growth, work environment, work-life balance, stress, and culture are investigated based on the Pearson correlation where the maximum P is taken as 0.05.
Before enhancing the following characteristics we have taken 50employees of the HDFC Company who are willing to present their overview in finding the employee turnover.
(1)QUESTIONS
Work environment
(Q)To what extent do you think, the work-life imbalance is the main reason to quit the current job?
(Q) Is the working environment is open and trustworthy?
Work environment Work life balance
Work environment 1 Work-life balance -0.20027 1
ANALYSIS
In this section, the respondents were asked to fill questionnaire which is comprised of questions such factors of work-life balance and working environment. It is found that most of the employee’s decision is there is no proper work-life balance, so they are leaving the organization.
Interpretation
There is a less
A significant relationship between work environment and work-life balance (p;0.05) where p= -0.20027
As the p-value is less than the expected value the employees are leaving the organization due to work-life balance, it is one of the major cases of an employee turnover.
(2)Organization stress
(Q) To what extent do you think work stress is the main reason to quit the
Current job?
(Q) Is the working environment is open and trustworthy
Work environment Stress
Work environment 1 Stress -0.19704 1
ANALYSIS
In this section, the respondents were asked to fill questionnaire which is comprised of questions such factors of work environment and stress. It is found that most of the employees are feeling stress in the organization, so there is an employee turnover in the organization.
Interpretation
There is a less significant relationship between work environment and stress (p;0.05) where p= -0.019704. As the p-value is less than the expected value the employees are leaving the organization due to stress, it is one of the major cases of an employee turnover.
CAREER GROWTH
(3)Question
(Q) Is your organization providing a career growth opportunity?
(Q)Is the working environment is open and trustworthy
Work environment Carrier growth
Work environment -0.20027 1
Carrier growth 1 ANALYSIS
In this section, the respondents were asked to fill questionnaire which is comprised of questions such as factors of career growth and work environment. It is found that most of the employees are feeling that there is no career growth in the organization, so there is an employee turnover in the organization
Interpretation
There is a less significant relationship between work environment and career growth (p;0.05) where p=-0.20027less than the expected value the employees are leaving the organization due to stress, it is one of the major cases of an employee turnover
STRESS
(4)Question
(Q) To what extent do you think, the work-life imbalance is the main reason to quit the current job?
(Q) To what extent do you think work stress is the main reason to quit the
Current job?
Work-life balance Stress
Work-life balance 1 Stress 0.66009 1
Analysis
In this section, the respondents were asked to fill out a questionnaire which is comprised of questions such as factors of work-life balance and stress. It is found that most of the employees are feeling there is no stress relatedly there in the organization, so this is a no issue in employee turnover in the organization.
Interpretation
There is no significant relationship between work-life balance and stress (p;0.05) where p= -0.26009 as the p-value is greater than employees are in the organization.
(5) Question
WORK LIFE IMBALANCE
(Q) To what extent do you think, the work-life imbalance is the main reason to quit the current job?
(Q) Is your organization providing a career growth opportunity?
Work-life balance Carrier growth
Work-life imbalance 1 Career growth -0.20027 1
ANALYSIS
In this section, the respondents were asked to fill out a questionnaire which is comprised of questions such as factors of work-life imbalance and career growth. It is found that most of the employees are feeling there is no career growth in the organization, so there is an employee turnover in the organization.
INTERPRETATION
There is a less significant relationship between work environment and stress (p;0.05) where p= –0.20027 As the p-value is less than the expected value the employees are leaving the organization due to stress, it is one of the major cases of an employee turnover.
(6)CAREER GROWTH
(Q) Is your organization providing a career growth opportunity?
(Q) To what extent do you think work stress is the main reason to quit the
Current job?
Career growth stress
Stress 1 Career growth 0.80138 1
ANALYSIS
In this section, the respondents were asked to fill out a questionnaire which is comprised of questions such as factors of stress and career growth. It is found that most of the employees are feeling there is no career growth in the organization, so there is an employee turnover in the organization.
INTERPRETATION
There is a less significant relationship between career growth and stress (p;0.05) where p= 0.80138As the p-value is less than the expected value the employees are leaving the organization due to stress, it is one of the major cases of an employee turnover.
(7)CULTURE
(Q) To what extent do you think culture organization is the main reason to quit the current job?
(Q) Is your organization providing a career growth opportunity?
Carrier growth Culture
Carrier growth 1 Culture -0.10074 1
ANALYSIS
In this section, the respondents were asked to fill out a questionnaire which is comprised of questions such as factors of career growth and culture. It is found that most of the employee’s decision is there is no proper culture, so they are leaving the organization
Interpretation
There is a less significant relationship between career growth and culture (p>0.05) where p= -0.10074. As the p-value is less than the expected value the employees are leaving the organization due to culture, it is one of the major causes of an employee turnover.
CHAPTER 5
FINDINGS, SUGGESTIONS, AND CONCLUSION
FINDINGS:
Most of the respondents are not satisfied with their present salary
Majority of the respondents believe that the organization makes performance appraisal on the basis of merit and performance.
A huge majority of the respondents believe that Good Working Environment, Good Welfare Measures, and Career Development Opportunities lead to good quality of work life.
Workers who are happy with their overall work environment have far less reason for employee turnover.
Similarly, as salary and benefits increases, the desire to leave the job decreases.
SUGGESTIONS:
The organization needs to focus on how to develop better salary plan and reduce strain in the workplace.
It is expensive to hire, train, and bring up to speed, new replacements.so it is, therefore, important to understand the antecedents of the turnover intent of employees before they decide to quit
CONCLUSION:
The business would be able to survive in a dynamic environment by treating their employees as one of their assets which needs a lot of attention.
Employees are the backbone of any business success and therefore, they need to be motivated and maintained in the organization at all cost to aid the organization to be globally competitive in terms of providing quality products and services to the society.
And in the long-run, the returns on investments on the employees would be achieved.
Managers should examine the sources of employee turnover and recommend the best approach to fill the gap of the source so that they can be in a position to retain employees in their organization to enhance their competitiveness in this world of globalization.
Managers must understand that employees in their organizations must be treated as the most liquid assets of the organization which would make the organization withstand the waves of globalization. This asset needs to be monitored with due care, otherwise, their organizations would cease to exist. Employees should be given challenging work.
REFERENCES
https://www.jstor.org/stable/258446Abelson, M., B. Baysinger (2013), “Optimal and dysfunctional turnover: Toward an organizational level model,” Academy of Management Review, Vol. 9 No.2.
Barrick, M.R., & Zimmerman, R.D., (2015), “Reducing voluntary turnover, avoidable turnover through selection,” Journal of Applied Psychology, Vol. 90, pp.159-166
4.Cotton, J.L., and Tuttle, J.F., (2016), “Employee turnover: A meta-analysis and review with implications for research,” Academy of Management Review, Vol.11, No.1, pp. 55-70.
QUESTIONNAIRE
Q) IS YOUR ORGANIZATION PROVIDING A CAREER GROWTH OPPORTUNITY?
a) YES b) NO
Q) IF “NO ” IS THIS THE REASON TO QUIT THIS JOB?
STRONGLY AGREE with b) AGREE on c) STRONGLY DISAGREE d) DISAGREE e) NEUTRAL
3. Q) IS WORKING ENVIRONMENT IS OPEN AND TRUSTWORTHY?
YES b) NO
4 Q) IF “NO” IS THIS THE REASON TO QUIT THIS JOB?
STRONGLY AGREE to b) AGREE with c) STRONGLY DISAGREE d) DISAGREE e) NEUTRAL
5 Q) THE INFLEXIBLE WORKING HOURS HAVING DIRECT EFFECT ON YOUR JOB?
YES b) NO
6 Q) IF “YES” IS THIS THE REASON TO QUIT THIS JOB?
STRONGLY AGREE to b) AGREE with c) STRONGLY DISAGREE d) DISAGREE e) NEUTRAL
7 Q) ARE YOU GOING THROUGH WORK STRESS, IS THE MAIN REASON TO QUIT THE CURRENT JOB?
YES b) NO
8 Q) IF “YES” TO WHAT EXTENT DO YOU THINK WORK STRESS IS THE MAIN REASON TO QUIT THE
CURRENT JOB?
STRONGLY AGREE to b) AGREE with c) STRONGLY DISAGREE d) DISAGREE e) NEUTRAL
9 IS WORK LIFE IMBALANCE INFLUENCING YOUR JOB?
YES b) NO
10 IF “YES” to what extent do you think, the work-life imbalance is the main reason to quit the current job?
STRONGLY AGREE to b) AGREE with c) STRONGLY DISAGREE d) DISAGREE e) NEUTRAL
11 DO YOU AGREE THAT COMMUTING TIME OR DISTANCE IS AN IMPORTANT FACTOR FOR CURRENT JOB?
YES b)NO
12 IF “YES” TO WHAT EXTENT DO YOU THINK COMMUTING IS THE MAIN REASON TO QUIT THE CURRENT JOB?
a) STRONGLY AGREE to b) AGREE with c) STRONGLY DISAGREE d) DISAGREE e) NEUTRAL
13 DOES POOR INCENTIVE SCALE IS EFFECTING YOUR CURRENT JOB?
YES b)NO
14 IF “YES” TO WHAT EXTENT DO YOU THINK POOR INCENTIVE SCALE IS THE MAIN REASON TO QUIT THE CURRENT JOB?
a) STRONGLY AGREE b) AGREE to c) STRONGLY DISAGREE d) DISAGREE e) NEUTRAL
15 ARE U NOT ABLE TO ADJUST WITH THE CULTURE OF ORGANIZATION?
YES b) NO
16 IF “YES” TO WHAT EXTENT DO YOU THINK CULTURE ORGANIZATION IS THE MAIN REASON TO QUIT THE CURRENT JOB?
STRONGLY AGREE b) AGREE to c) STRONGLY DISAGREE d) DISAGREE e) NEUTRAL
17 ACCORDING TO YOUR OPINION, EMP’S ARE “UNDERUTILIZED “IN YOUR ORGANIZATION?
YES b) NO
18 IF “YES” TO WHAT EXTENT DO YOU THINK UNDERUTILIZED IS THE MAIN REASON TO QUIT THE CURRENT JOB?
STRONGLY AGREE b) AGREE to c) STRONGLY DISAGREE d) DISAGREE e) NEUTRAL
19 ARE YOU SATISFIED WITH YOUR SALARY?
YES b) NO
20 IF “NO” TO WHAT EXTENT DO YOU THINK SALARY IS THE MAIN REASON TO QUIT THE CURRENT JOB?
STRONGLY AGREE b) AGREE to c) STRONGLY DISAGREE d) DISAGREE e) NEUTRAL
21 ARE YOU LEAVING THIS JOB DUE TO JOB INSECURITY?
YES b) NO
22 IF “YES” TO WHAT EXTENT DO YOU THINK JOB INSECURITY IS THE MAIN REASON TO QUIT THE CURRENT JOB?
STRONGLY AGREE b) AGREE to c) STRONGLY DISAGREE d) DISAGREE e) NEUTRAL
