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Abstract
Over the past decade, the Indian IT-BPO sector has become the country's premier growth engine, crossing significant milestones in terms of revenue growth, employment generation and value creation. 'People are our greatest asset' is a mantra that companies have been chanting for years. But only a few companies have started putting Human Resources Management (HRM) systems in place that support this philosophy. The issue of employee attrition/turnover has been found to be making huge economic impact on the organizations. High attrition is one of the major challenges faced by IT/BPO sectors. Also it is a noteworthy hidden cost in a business and can amount to as much as six months' salary and there are also other costs such as the negative impact to company's employment brand. The costs of this turnover not only have an impact on organizations but also would ajfect the morale of the stayers. In this research, a humble attempt has been made to understand the factors causing attrition at various levels of an organization and remediate the phenomenon.
Keywords: Attrition, Job discrepancy, Employer - employee relationships, Ethics
1. Introduction
Employee turnover is an enormous problem for any company and creates negative bottom-line impacts. The costs associated with employee turnover show up in such areas as advertising for new employees and the time and money necessary to screen the applicants, training new employees, lost productivity, decreased accuracy and quality of work among the employees left behind who are upset about their colleague's departure, using expensive contract and temporary employees to do the work until a permanent employee is hired, and the expenses associated with replacing lost business.
Employee turnover costs can amount to thousands of dollars, annually. It can also prevent companies from pursuing their growth opportunities and acquiring new business & Attrition rate is the rate of shrinkage in size or number.
Types of attrition
* Market driven - based on the demand for a particular skill or ability in temporarily low supply (self-correcting in normal markets). The typical initial reaction by employers to market driven attrition is to increase wages, offer better benefits, escape the market by relocation or site migration or relax hiring standards.
* Workload or stress driven - on the actual capacity to perform...