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 INTRODUCTION

Defining attrition: "A reduction in the number of

employees through retirement, resignation or death“

Formula for calculating attrition level

The basic formula for calculation of Attrition is as below:

(No. of employees attrited in the year)/ (Average

headcount for the year);

Where, average headcount for the year = (opening

headcount + closing headcount ) / 2.
 CAUSES OF ATTRITION
• There are many causes for attrition
including, retirement and death. However,
most attrition is due to employee
turnover. Employees leave their jobs for a
number of reasons including: wanting
more money, poor working conditions,
irregular working hours, lack of
advancement opportunities, lack of job
security, difficulties with coworkers, desire
for change, better opportunities, and
family reasons…..
 HOW TO MANAGE ATTRITION LEVEL?
• One of the biggest costs for most employers in today's
market place is recruitment of quality staff. In order to
reduce this cost every organisation should have in place
staff retention action plans.
• Introduce career planning and coaching before a valued
employee thinks of moving on to other company..
• Review values and culture of organisation to improve
environment.
• Review recruitment process to ensure that the right skills
base is being recruited and match to profiles of employees
who are add value to the organisation.
 INDIA CONTEXT….
• Employee attrition is about 20-30 per cent
across industries (Source – CII)
• Average Attrition Rate in BPO sector is
hovering around 35% in FY 2007.  
• Average Attrition Rate in BFSI sector rose
from 32% in FY 2006 to 44% in FY 2007.  
• The manufacturing sector is also facing an
Attrition Rate of 20%.
 WORLD WIDE ATTRITION
Attrition rates in IT-enabled business process outsourcing
sector have come down from the 30-33 per cent being
witnessed of late to about 25 per cent now, according to
statistics compiled by the National Human Resource
Development Network. 

Attrition rates in % :- 

US 42% 
Australia 29% 
Europe 24% 
India 18% 
Global Average 24%
 Attrition rates in Indian FMCG Sector

• The Indian FMCG sector demonstrated a

steady rise in the attrition rate over the past
three years. The attrition rate was 9.8 % in
2004. It moved up to 10.8 % in 2005.
• In 2006, the attrition rate became 17 %. The
major companies in FMCG sector are Asian
paints, Britannia, Colgate, Cadbury, HLL (HUL),
ITC, Marico, Nestle, P&G, Palmolive, Pepsi, etc.
 Attrition Rates in IT Sector
• IT-ITES industry recorded US$ 39.6 billion in revenues
in 2006-07. The revenue of US$ 49-50 billion has
been projected in 2007-08 at a growth rate of 24-27
per cent. The IT industry's contribution to GDP was
4.8 per cent in 2005-06. Though the IT sector is
booming, it is constantly facing high attrition rates of
25% - 30%. Even the big brands are also facing the
same problem.
ATTRITION RATE IN DIFFERENT IT COMPANIES

Infosys
Attrition at 11.6%,
Total Employee Strength 109,882,
Net Addition this quarter 44,29

TCS
Attrition Rate – 11.5% ( IT Services – 10.8%, BPO – 18.3%)
Total Employee Strength  143,761
Net Addition 7,692
 
 Wipro
Attrition Rate – IT services – 14.3%, BPO – 15%)
Total Employee Strength 102,746
Net Addition 4,855
Cognizant:
Attrition Rate: 11.2%
Total Employee Strength: 73,400
Net Addition : 10,300 ( includes UBS acquisition)
Genpact:
Attrition Rate: 23% ( Pure play BPO firms have
higher attrition)
Total Employee Strength: 38,600
Net Addition : 2,400
 iGate

Attrition Rate:
Total Employee Strength: 6,910
Net Addition : 530

HCL Technologies

Attrition Rate: IT Services – 12.8%, BPO Services – 21%

Total Employee Strength: 55,688
Net Addition : 1,691
EXL Services

Attrition Rate: 22.6% ( billable)

Total Employee Strength: 10,736
Net Addition : 243
 WNS

Attrition Rate: 31% ( Pure play BPO firms have higher attrition)

Total Employee Strength: 21,392
Net Addition : 149

Syntel

Attrition Rate: 11.2%
Total Employee Strength: 12,567
Net Addition : 1,080
The 9 best companies to
work for (in India)
 Google
• Founded by Larry Page and Sergey Brin, Google hosts and
develops a number of Internet-based services and products,
and generates profit primarily from advertising through its
AdWords program.
• Eric E Schmidt -- Chairman and chief executive officer
• Sergey M Brin -- Technology president
• Lawrence E Page -- Products president
• Revenue:  $23.65 billion (2009)
• Profit:  $6.52 billion (2009)
• Employees: 20,621 (2010)
 MakeMyTrip India
• The pioneer of online travel in India, Deep
Kalra founded MakeMyTrip in April, 2000.
• MakeMyTrip has become the largest online
travel company, as well as the largest e-
commerce business in India.
• Deep Kalra, founder, MakeMyTrip
 Intel
• Intel, which was founded on July 18, 1968, as Integrated
Electronics Corporation, also makes motherboard chipsets,
network interface controllers and integrated circuits, flash
memory, graphic chips, embedded processors, and other
devices related to communications and computing.
• Paul S Otellini -- chief executive officer
• Craig Barrett -- chairman
• Revenue $35.13 billion (2009)
• Net income $4.369 billion (2009)
• Employees 79,900 (Q1 2010)
• Intel has offices in Andhra Pradesh, Bengaluru and
Chandigarh, and has field sales offices in various other states
 Marriott 
• Marriott hotel chain completed 10 years in India in 2008. It
has hotels in Mumbai, Goa, Hyderabad, Pune, Gurgaon,
Ahmedabad and Chennai.
• By 2012, the chain is expected to expand its Indian
operations to encompass 30 properties in the luxury sector
to the upper-moderate tiers, with a total of 5,524 rooms.
• These hotels would be managed under its five brands - Ritz-
Carlton, JW Marriott Hotels, Marriott Hotels & Resorts,
Renaissance Hotels and Courtyard by Marriott.
• Goa Marriott Resort is their first hotel in India.
• The company is well on its way to meet its goal to reduce
greenhouse gases by 6% per guest room by 2010.
 NetApp 
• NetApp was founded in 1992 by David Hitz, James Lau, and
Michael Malcolm. The Sunnyvale California-based company's
India offices are in Bangalore, Mumbai, Pune and Delhi.
• Tom Georgens -- president and chief executive officer
• Revenue: $3.5 billion (FY'09)
• Employees: Over 8,000 employees in more than 135 offices
worldwide
• Number 7 on Fortune magazine's 2010 "Best Companies to
Work For" list
• Member of S&P 500 and NASDAQ 100
 American Express Company
• Founded in 1850 by Henry Wells, William Fargo and
John Warren Butterfield, it is one of the 30
components of the Dow Jones Industrial Average. The
company is best known for its credit card, charge card,
and traveler's cheque businesses.
• American Express operates in over 130 countries
around the globe. Learn more about our presence
throughout the world.
• Kenneth Chenault: chairman and chief executive officer
• Revenue: $26.7 billion (FY 2009)
• Net income: S$2.13 billion (FY 2009)
 PayPal
• PayPal has quickly become a global leader in online payment
solutions with more than 153 million accounts worldwide.
Available in 190 markets and 24 currencies around the world,
PayPal enables global ecommerce by making payments
possible across different locations, currencies, and languages.
• Located in San Jose, California, PayPal was founded in 1998
and was acquired by eBay in 2002.
• Each floor of the six-level PayPal facility in Chennai has rooms
named after Indian monuments, rivers, national parks, musical
instruments and great heroes.
• Scott Thompson - president
• Raj Sundaresan - vice president
 Ajuba
• With over 1500 employees globally, Ajuba is
headquartered in Charlotte, North Carolina
and has additional operational centers in
Michigan, Illinois and Chennai, India. It was
founded in India in 2000.
• Devendra Saharia - president
• Employees - 1612
 SAS Institute India
• SAS has been in India since 1997 and consists of a
strong team of over 350 highly-qualified technology
and domain experts helping customers address their
business challenges through effective use of Business
Intelligence.
• Sudipta K Sen - CEO and managing director, SAS India
• SAS also has an R&D Centre in Pune. The R&D centre
in India is a key resource arm for the global SAS
community and focuses on R&D and Industry
Intelligence Solutions Development.
 CONCLUSION
Words like attrition, retention and job switch which
had become taboo since almost two years ago are
making noise yet again. The employees who were
waiting for the economy to bounce back before
jumping boats are busy again. With the IT market
slowly picking up and hiring all set to increase in
2010, the cheer is back on employees face and the
HRs are worried again to retain their key employees.