Madhu.T.K
Industrial Relations And Labour Laws
Boss2966
Industrial Relations
Harsh Kumar Mehta
Consultant In Labour Laws/hr
Ukmitra
Business Development, Employee Relations,
Lavika Yadav
Manager-hr
Nashbramhall
Learning & Teaching Fellow (retired)
Sriwidh
Management Consultant
Dhung Pvt Ltd
Hr Consultancy
+5 Others

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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.

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.
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.

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.

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.

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!
Madhu.T.K

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.

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.

Regards,

Gayathri Sai

From India
Sir(s),
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.

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.

From India, Kumbakonam

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