Industrial Relations And Labour Laws
Industrial Relations
Harsh Kumar Mehta
Consultant In Labour Laws/hr
Business Development, Employee Relations,
Lavika Yadav
Learning & Teaching Fellow (retired)
Management Consultant
Dhung Pvt Ltd
Hr Consultancy
+5 Others

Dear HR Fraternity
Greetings of the day.
Eventhough we have discussed about the Attrition rate earlier also, let us consolidate the reasons, so that it will be useful for the New members and students involved in the studies.
I am giving the following few reasons from my side.
1. Less payment / wages, which will make the workmen to leave the company and try for better opportunities from where he can get more wages.
2. Family reasons
3. Health reasons (i.e., due to Occupational Hazard like chemical impact, dust and gaseous impact)
4. Lack of knowledge (unable to understand the benefits of long service future developments)
Let our learned members carry forward this thread, so that it can be useful for all our members.
8th May 2014 From India, Kumbakonam
Hi, "So much of what we call management consists in making it difficult for people to work. ~ Peter Drucker" I dont know whether I am right or not..But Management is also responsible for attrition.
8th May 2014 From India, Mohali
Dear Lavika
In some companies which are not following the rules and regulations are facing the high attrition rate and the workforce turnover will be more. By the way you can tell it as "The welfare of the employees are to be taken care of". Otherwise the company cannot control the outflow of the workforce."
Hope you are intending to say the same. If you have any different view please do not hesitate to come out with your point.
Dear Friends
Eventhough the companies concentrate on the satisfaction of the employees financially, there is another side which needs to be taken care of. That is Non Monetary welfare activities, which will restrict the attrition rate.
8th May 2014 From India, Kumbakonam
Dear Bhaskar,

Thank you for inviting me to make a contribution to this thread. If I can recall correctly, I have made comments on this topic before. Please let me repeat some anecdotal information before giving some latest links.

A quite a number of us left our secure governmental jobs, in India, in the 1960 and emigrated to the UK. The main reason was boredom at work and a desire to improve our qualifications (The facility for higher education was not as advanced as now in India.). Some left the UK and went to the USA (Grass was greener on the other side).

Even within the UK, some stayed put in one company/organisation till they retired. Others gained Postgraduate Management Diploma/Master and PhD degree and changed from Engineering to other areas. Some even left the industry and joined educational establishments. The reasons were various: not liking the job, family commitments (To spend more time with children, flexible working hours, not satisfied with the scope for promotion, not being stretched at work, for higher salary, a feeling of being discriminated, etc.)

Only yesterday, I read a news item on how companies were trying to attack attrition in Indian companies at

Companies try new steps to stop appraisal time attrition - Hindustan Times

I had also read another article, a while ago, at

Why after appraisals, curbing attrition becomes HR priority - Economic Times

Rather than sumarise what those articles said, I will leave it to some student to summarise and contribute to this thread.
8th May 2014 From United Kingdom
Dear Mr. Simhan Sir,
Thank you for your participation, which added value in new angle.
As a matter fact, in higher level the attrition level is taking place for better prospect, to have challenging tasks, to acquire higher education and qualifying themselves for combating the future challenges and even they may even change their stream.
In some places the workplace bullying also be one of the reason for attrition.
Let us expect other experts to come out with further reasons.
8th May 2014 From India, Kumbakonam
Working environment, unethical HR practices, work place bullying etc are the main reasons for attrition. But I wonder why the Government service and PSUs which have the worst working environment or HR practices do not have any attrition? Is it not because of the job security and respect that the society gives to one employed there? I feel that these account for major attrition. Though private sector offers salary better than government or public sector companies the latter offer security and respect in the society. I have also found that wherever people are more employable the attrition is very high. Perhaps that may be one of the reasons why government or PSUs do not have high attrition!
8th May 2014 From India, Kannur
Dear Mr. Madhu

Thank you very much for participating in this discussion.

As a matter of fact, whether we do work or not, once we have joined in the Government services, obviously we will get yearly twice DA Increase, Annual Increment (eventhough it is meagre amount), and not getting the promotion, our job is secured and no one can lift us from the post till the end of attaining the age of retirement. We can get the time bound promotion regardless of our performance and we need not to worry about our educational qualification or enhancement of knowledge. So the attrition level will be very less. Here it is taking place not due to lack of knowledge or literacy but due to laziness and carelessness.

But as stated by Mr. Simhan Sir, the talented people will not and cannot do service in Government organisation. Because the fire in them will not allow them to waste the time and lose the chance to grab knowledge and opportunities from everywhere.

Let us expect our other members to add value in this subject.
8th May 2014 From India, Kumbakonam
Dear All

I am a Phd Scholar studying on Attrition in Insurance sector. Having worked in Insurance industry for more than 8 yrs and with the various discussions had with my colleagues in the industry, I could summarize that major contributing factor for attrition especially in the field of insurance is lack of professional approach, more opportunities with more players coming in the market, peer pressure, high targets, imbalance in work-life quality, lack of support from boss or management, poor motivation etc. This exhibits a vide gap between the attitude of Insurance employees with that of other financial services employees.

With the low penetration level of insurance business in India (only 3% of the indian population is covered by insurance), there is vast scope of employment opportunities and development of business in our land. But there isn't any proper vision or mission to achieve it. Insurance sector is the least preferred job avenue. I also blame the policy makers and Insurance regulatory for not properly educating the people about the need of insurance and development of proper jobs when compared to banking industry. Hence, there is an unbalanced or uncontrolled inequality in the demand and supply of job opportunities in the field of insurance.

Rest I shall take from the seniors in this thread.

Note: I am very new to the field of HR. I am a hard core finance person now diversified to HR to learn about it. I find it all the more interesting than Finance. Finance deals with management of money which is a common practice all over the world unlike HR. Now I understand that HR is a study of behavioral & psychology which differs with every individual and every situation. I like to learn a lot from the seniors in the forum. Thank you all.


Gayathri Sai
8th May 2014 From India
In addition to the points mentioned by seniors as above following can also be reasons for high attrition in an organisation:-
1 Uncertain financial position of the organisation/company.
2.Unfavourable work culture for female employees.
3.Very less chances of promotion to the higher posts. For example, no opportunities for fresh employees to prove their worth and abilities.
4. Non-adherence to the policy of principles of natural justice in the matter of disputes between employer / higher officers and employees.
8th May 2014 From India, Noida
Dear Gayathri Sai
Let me summarise your view from Insurance sector point of view to General view
1. Lack of Professional approach. This will lead the employees to quit the organisation, if the professional approach is being made in any issue, there will be a healthy working atmosphere available for the employees. But any issues handled personally and start doing the blame game, obviously the attrition level will be high.
2. Due to availability of competitors in any industry, the talent grabing is taking place. Hence the attrition level is high.
3. Work pressure, lack of support from management to reach the target and unrealistic targets are playing the major role in increased attrition level.
4. Poor Motivation and low morale level are also adding up the value in increased attrition level.
Thank you for your active participation. Let our other learned members give their expert view in this subject.
9th May 2014 From India, Kumbakonam
Dear Mr Harsh Kumar
Thank you for taking active participation in this thread and adding value by sharing your views.
Obviously first and foremost thing for attrition is uncertain financial position will lead to delayed payment / non payment of wages to the employees.
If the organisation is not providing the safe working environment to its employees, then we cannot expect the workers to stay and work for longer period and whenever they get chance or their tolerance level cross then they will quit the organisation.
9th May 2014 From India, Kumbakonam
Dear Members
Thank you for the opportunity given to me for the expression of my views for the attrition
Employer should bear in mind for the employee exist
* motivation to the employees
* job rotation - otherwise they will reluctant to work with the same work. If we change the job profile within the dept., they will not move to other company and simultaneously they can equip their knowledge.
* Right for the right job is the HR policy
* Respect to experienced person irrespective of gender
* Increment on time
* Welfare activities
* Family get together among the other employees from top to bottom level of workers
All the above points are upto my experience
9th May 2014 From India, Chennai
Dear Vijayalakshmi

Thank you for taking part in this discussion on the subject Reason for Attrition. As you have given the points for retention techniques I am changing into reason for attrition.

Demotivated employees will be looking for job change, hence attrition level will be high.

Repetitive boredom work will lead to higher attrition rate. To avoid such cases job rotation is essential which will restrict the attrition rate. Further in case of any leave, the job rotation will help the organisation to engage another person who got trained by following the practice of job rotation.

Due respect must be given for the experience, age, and irrespective of the person's cadre, qualification and gender will reduce the attrition level. If the above is missing in the organisation, will have to face high attrition level. Annual appraisal also will take major roll in controlling the attrition level.

Maintaining the Interpersonal relationship with colleagues and some get together with family members will give more bond with the organisation and it will help in controlling the attrition level.

I have summed up your points. If you feel anything more to be added or any difference of opinion, please do inform. Let us join our hands to learn and spread knowledge.
9th May 2014 From India, Kumbakonam
Dear all,
Please using WHY? WHY? analysis for these problem. This is a typical task but you are taking a good result from this method.
If want to know process for the implementation for these method then please tell me i will give you suitable example as per topic.
Thanks & Regards
10th May 2014 From India, Rajkot
According to recent findings there are six reasons why Best Employee Quit the Organisation:
1) No Vision
Most employees don’t get out of bed each morning trying to hit a profit number. In the majority of companies there are only a handful of people that truly care about it or, in some cases, even understand exactly what it means to hit that number. As a manager, don’t confuse your financial objectives with vision. Vision feeds financials and not the other way around.
2) No Connection To The Big Picture
3) No Empathy
4) No (Effective) Motivation
5) No Future
6) No Fun
10th May 2014 From India, Bhubaneswar
Good thread with being discussed in different perceptive. I like it.
Here I have captured all the thoughts given till now by experts. Please add if I missed.
Sr No. Reasons
1 Compensation
2 Family Reason
3 Health Reason
4 Peer Pressure/ bullying
5 Higher Education
6 Career Growth
7 Work Place Culture
8 Unethical HR Practices
9 Job Security
10 Poor Motivation
11 High Targets
12 Work Pressure
13 Biased Increment/Promotions
14 Support (financial/emotional)
In my experience, I have seen that Salary/Compensation and benefits and Job security were the most important reasons (around 72%) an employee resigned.
11th May 2014 From Saudi Arabia, Riyadh
Hi Everybody,
I would like to share few points in my view resulting in attrition
* Insufficient remuneration and employee benefits paid to employee by his employer.
* Mismatch of job profile.
* Job stress and work-life imbalances.
* Odd working hours/Early morning-night shifts.
* Entering of new companies and sectors in to the market.
* Lack of authority provided to accomplish ones task.
* Monotony of job.
* Lack of proper facilities provided by employer
* Lack of proper environment.
* Poor concern about employees by their employer.
* Poor promotion policies or lack of promotion for long time.
* Lack of timely communication by employer.
Seniors correct me if I am wrong.
12th May 2014 From India, Mumbai
On conclusion, I extend my sincere thanks for those took active part in sharing their knowledge with our community and made this thread very useful for those students who are studying MBA.
The attached file was sent by my Mentor, which I feel it will be highly beneficial for all our members. Let us hope the students and learning young HR people make use of this this article.
Wish you all the success.
13th May 2014 From India, Kumbakonam

Attached Files
Membership is required for download. Create An Account First
File Type: docx Attrition_Bane of Industry.docx (22.2 KB, 25 views)

There are sevaral Reasons:
Monetary considerations (unless you move, you won’t get more)
Work environment (organizational culture does not recognize performance)
Colleagues – bosses, peers and direct reports – there is no synergy with everyone working in silos
A good way to identify these problems is through feedback - a 360 Degree feedback survey would help a lot in identifying the problems
15th May 2014 From India, Chennai
Generally following reasons are observed.
Lack of respect
Lack of support
Monetary factors
Lack of appreciation
Increase in favouritism
Lack of challenges in job
No bendable work timetables
Need of very well working conditions
Difference between work & the individual
Fewer frequencies in giving the encouragement
Organization is more concerned towards business
Pressure from Overwork and Work - Life Imbalance
Employee needs pride for their work & what they do
Loss of faith and Confidence with superior Leaders
The work (or) work-place was not as anticipated
Very small number of helpful colleagues
Too Little Coaching and Feedback
16th May 2014 From India, Madras

I believe that HR and Marketing should be part of the same department. Marketing is about having conversations with the external world while HR is about having conversations with the internal world – aka employees. There is something lopsided about organizations. They will spend oodles of dollars trying to know about what the customers want, track their shifts, buy research on how their products compare to the competitors. Above all, a minor shift in consumer preferences will lead to long debates in the boardroom. Ever see the Internal Marketing department obsess about the needs, wants and aspirations of the internal customers? See, how you don’t react to that statement unless I say ever seen the average HR department obsess about tracking and studying employees with the same degree of meticulousness? Naah. It is just not in the DNA of organizations. It maybe the same behavior that prompts people to be more courteous and caring towards a potential partner than when that partner morphs into a spouse. Valentine’s Day is the one day that majority of husbands buy flowers for their wives. The other 364 days be damned.

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16th May 2014 From India, Bangalore
The View on Attrition by Mr. Azim Premji.

Those who did not see earlier can make use of this. The contents are appended below.

Azim Premji, CEO- Wipro

Every company faces the problem of people leaving the company for better pay or profile.

Early this year, Mark, a senior software designer, got an offer from a prestigious international firm to work in its India operations developing specialized software. He was thrilled by the offer.

He had heard a lot about the CEO. The salary was great. The company had all the right systems in place employee-friendly human resources (HR) policies, a spanking new office, and the very best technology,even a canteen that served superb food.

Twice Mark was sent abroad for training. "My learning curve is the sharpest it's ever been," he said soon after he joined.

Last week, less than eight months after he joined, Mark walked out of the job.

Why did this talented employee leave ?

Arun quit for the same reason that drives many good people away.

The answer lies in one of the largest studies undertaken by the Gallup Organization. The study surveyed over a million employees and 80,000 managers and was published in a book called "First Break All The Rules". It came up with this surprising finding:

If you're losing good people, look to their manager .... manager is the reason people stay and thrive in an organization. And he 's the reason why people leave. When people leave they take knowledge,experience and contacts with them, straight to the competition.

"People leave managers not companies ," write the authors Marcus Buckingham and Curt Coffman.

Mostly manager drives people away?

HR experts say that of all the abuses, employees find humiliation the most intolerable. The first time, an employee may not leave,but a thought has been planted. The second time, that thought gets strengthened. The third time, he looks for another job.

When people cannot retort openly in anger, they do so by passive aggression. By digging their heels in and slowing down. By doing only what they are told to do and no more. By omitting to give the boss crucial information. Dev says: "If you work for a jerk, you basically want to get him into trouble. You don 't have your heart and soul in the job."

Different managers can stress out employees in different ways - by being too controlling, too suspicious,too pushy, too critical, but they forget that workers are not fixed assets, they are free agents. When this goes on too long, an employee will quit - often over a trivial issue.

Talented men leave. Dead wood doesn't.

Attribution :
24th May 2014 From India, Kumbakonam
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