A PROJECT WORK FOR FINDING ATTRITION LEVEL IN MICROFINANCE INDIUSTRY

33 %
67 %
Information about A PROJECT WORK FOR FINDING ATTRITION LEVEL IN MICROFINANCE INDIUSTRY
Education

Published on February 26, 2014

Author: dayananddil

Source: slideshare.net

Description

Micro finance industry facing a major problem is attrition of their employee in a short period. It is so costly to hire one provide training to him and finally he leave organization within six month.

BUILDING AN ATTRITION ANALYSIS MODEL Presented By: Ananya Ghosh Dayanand Keshri

PLAN OF PRESENTATION        Introduction of the study Objective of the study Survey methodology Survey and Field work Analysis and conclusion Findings Suggestions

INTRODUCTION • Now a days Micro Finance is a major sector but still now unorganized. • Field officers are main Intangible assets to Micro Finance sector. • If one leave job then it effect whole business. • But Why they leave job? • To find out actual reason we have done this project

PROCESS OF WORK • • • • Three day field visit to know what they do? To understand the working condition Ask about the work satisfaction Then plan for interview

EMPLOYEE TURNOVER • It is the rate at which employer loss their employees from organization. • High turnover may effect the organization badly. METHOD OF IDENTIFYING EMPLOYEE TURNOVER? • At first stage identify the reasons of leaving the job. • Second stage identify the factors that attracted the employee to join other organization. • And third stage take some exit interview who are leaving the organization to get the actual reasons of leaving.

ATTRITION • A reduction in the number of employee through retirement, resignation, reassignment, transfer, death or any other means than layoffs. • Calculation of Attrition Rate: Employee resigned*100/(Opening balance of employees Employee joined)

REASONS OF ATTRITION • Lack of good working condition • No flexible work schedule • Lack of respect • Inadequate salary • Distance from home • Mismatch between job and person • The little feedback • Less frequency of giving awards • Stress of overwork and Work-life imbalance

EFFECT OF ATTRITION • Loss of productivity • Replacing qualified employees • Cost of overtime or temporary help • Recruiting costs • Interviewing costs • Time spent in orientation

OBJECTIVE • • • • To find out the possible reasons of leaving To find out solution of attrition To analyze Arohan’s historical attrition rate To suggest the possible strategies to reduce attrition rate • To suggest measures for further improvement in these activities

SURVEY METHODOLOGY Sample size • • • 120 No. of employees Using systematic Random Sampling to select randomly 70 employees among all resigned employees in financial year 2009-10 and 30 active employees of financial year 2009-10 Prepare interview schedule for both resigned and active employees Among 70 ex employees we have conducted physical interview for 56 respondents across 10 districts in WB and 6 districts in Bihar. Telephonic interview was conducted for the rest Visited 25 branches including 7 branches in Bihar while conducting interviews of active employees 100 100 80 70 60 30 40 20 0 Active employees Resigned employees total Job status Type of interview conducted on resigned employees 60 No. of employees • 50 40 30 56 20 10 14 0 Telephonic interview Physical interview Type of interview

HOME DISTRICT OF RESPONDENTS West BENGAL Bihar Districts No. of employees Districts No. of employees 24 Paraganas(N) 9 Bhagalpur 1 24 Paraganas(S) 5 Buxur 1 Howrah 3 Darbhanga 1 Hooghly 3 Madhubani 1 Medinipur(E) 5 Patna 2 Medinipur(W) 1 Vaishali 1 Nadia 12 Mujjaffarpur 1 Birbhum 3 Nalanda 1 Burdwan 7 Rohtas 1 Murshidabad 5 Total 10 Jalpaiguri 2 Malda 1 Bankura 2 Coochbihar 2 Total 60

Percentage ATTRITION RATE IN AROHAN 800 700 600 500 400 300 200 100 0 722 26.3 15 14.46 65 25 20 17.96 9.23 30 220 10 107 5 0 2006-07 2007-08 2008-09 Financial year Staff recruitement Annual 2009-10

QUARTERLYANALYSIOF ATTRITION RATE 14.00% Attriotion(in %) 12.00% 10.00% 9.79% 12.35% 10.88% 9.72% 10.70% 8.00% 6.00% 6.30% 5.08% 4.00% 4.19% 2.00% 0.00% 1st 2nd 3rd quarter 2008-09 2009-10 4th

HOW DOES AN EX EMPLOYEE OF AROHAN LOOKS LIKE Getting information from Farming is the main newspaper almost 82% source of income for 34% ex employees Dependent members Tenure in Arohan 60 50 60 50 50 41 40 30 30 Percentage 40 Percentage 50 20 9 10 0 23 20 20 7 10 0 Less than 2 3 to 4 Members More than 4 Less than 3 3 to 6 6 to 12 Duration(in months) More than 12

TOP REASONS OF JOINING Top reasons of joining 31 30 Earn money Supporting family Reasons Earn recognition among family members 11 7 My friends/family members works at Arohan 9 10 To gather knowledge about micro finance industry 0 To meet people and make friend 0 Pocket money 0 My friends/family member borrowed money from Arohan Any other 1 10 10 5 3 0 0 17 5 10 15 20 Percentage Active employees 33 23 Ex employees 25 30 35

SECOND IMPORTANT REASONS OF JOINING Second most important reasons of joining Supporting family 37 30 31 Earn money Reasons My friends/family members works at Arohan 3 9 7 6 Pocket money Earn recognition among family members 0 To gather knowledge about micro finance industry 0 Any other 0 To meet people and make friends 1 0 7 9 13 3 10 20 30 Percentage Ex employees 44 Active employees 40 50

TOP MOST REASONS OF LEAVING Inadequate pay 20 Posting Issue 16 Working conditions 13 Reasons Better Opportunity 10 BH Support 8 Non performance 7 Higher education 7 Health reasons 7 Family issues 6 HR Issues 3 Dissatisfied with promotion result 3 0 5 10 15 Percentage 20 25

SECOND MOST IMPORTANT REASONS OF LEAVING Working conditions 33 Inadequate pay 20 BH Support 14 Reasons Higher education 7 Posting Issue 6 Nothing 6 Better Opportunity 4 Non performance 3 Health reasons 3 Family issues 3 Dissatisfied with promotion result 1 0 5 10 15 20 Pe rce ntage 25 30 35

VERBATIM ANSWERS OF TOP THREE REASONS Inadequate pay Posting issues Salary should be minimum RS.5000 Distance from home was too much Minimum salary should be Rs. 8000 per month Could not afford transportation expense of visiting home every weekend In my pottery business I earn more than in Arohan by giving same amount of effort After father death,he had to visit home frequently Salary was not paid as per work load He could not stay home more than 5-6 hours on weekly off days Working condition He could not get time to have lunch and take bath due Residence was not comfortable Most of the to work overload time there was a problem of electricity Had to work almost 14 hours per day Work duration was so long not getting time to sleep During recovery customer gave threats. There was life risk

Was Arohan the first job Yes, 53% No, 47% Resigned employees No, 34% Yes, 66% Active employees

Education Qualification

Tenure between active and ex employees Work duration 250 120.00% 100.00% 200 80.00% 150 118 50 158 100 100 0 69 79 40.00% 70 53 19 0 60.00% 41 17 20.00% 33 0.00% 0 to 1 1 to 3 4 to 6 7 to 9 10 to 12 More months months months months months than 12 months Duration Resigned Active Attrition(in %) The above graph shows tenure is not normally distributed rather positively skewed. Source: EDB (as on 31st March,2010)

Opinion about company

Opinion about Branch Head

Like most about Arohan (Ex-employees) 36 Reasons Rules & regulation of Arohan 23 13 Operation policy 11 9 Training process 4 3 Behavior of top management 1 0 5 10 15 20 25 Percentage Like most about Arohan Resigned(in %) 30 35 40

Like least about Arohan 28 High work pressure 19 14 Reasons Nothing 10 Peer group relationship 9 9 Promotional policy 6 4 Operation policy 1 0 5 10 15 20 25 Percentage Like least about Arohan(in%) 30

PRESENT OCCUPATION

Findings

Suggestions For Retention • Let employees know that their opinions are valuable. Ask them to open up. • Setting up a feedback mechanism to maintain consistency in performance and high motivations levels. Offer performance feedback and praise good efforts. • Monotony and stress have contributed to increased attrition rate. So keep changing positions in Arohan • Their should be Annual Awards Programs where achievers in different areas should be awarded. • Exit interview are important • Understandable raises tied to a accomplishments and achievements help to retain staff

Add a comment

Related presentations

Related pages

Microfinance as a Poverty Reduction Tool—A Critical ...

Microfinance as a Poverty Reduction ... recent more rigorous research findings are not free ... that was committed to the microfinance industry in 2008 ...
Read more

Microfinance FAQs | Microfinance Gateway - CGAP

Microfinance is the provision of ... and there is a growing range of organizations working to reach ... of conduct within the industry, ...
Read more

Microfinance Gateway - CGAP

Comprehensive online resource for the global microfinance community. It includes research and publications, feature articles, organization and consultant ...
Read more

Measuring Governance in Microfinance: Initial Findings ...

... interest in analyses of the microfinance industry. ... Findings from a Pilot Project . ... Board’s work is often done at the committee level.
Read more

Microfinance - Wikipedia, the free encyclopedia

This microfinance project functions as an ... the microfinance industry has shifted its focus from the objective ... Why doesn't microfinance work?
Read more

Microfinance, Risk Management, and Poverty

microfinance industry ... The design of the study presented here in Microfinance, Risk Management, and Poverty ... The findings from the WDR field work ...
Read more

Microfinance: An Introduction - Profile | M S Sriram

Microfinance: An Introduction ... level also plagues microfinance. ... donor NGOs too have been funding microfinance projects.
Read more

Frequently Asked Questions about Financial Inclusion | CGAP

The Consultative Group to Assist the Poor is a global ... regardless of income level, ... analysts of business success across industries agree that ...
Read more