Business Case Studies, HRM / Organizational behaviour Case Study, Employee attrition in IT/BPO Sector,Cost and Consequences

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Case Title:

Employee attrition in IT/BPO Sector: Cost and Consequences

Publication Year : 2006

Authors: Sagar Chakraverty

Industry: Information Technology and IT Enabled Services

Region:India

Case Code: HRM0024B

Teaching Note: Not Available

Structured Assignment: Not Available

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Abstract:
There was a heavy exodus of employees from one organisation to another especially in the IT / BPO sectors in India and the biggest challenge for the HR managers were to retain employees.

The battle for head hunting had become fierce and the organisations adopted all possible means to recruit the available talent pool. The rampant practice of poaching and bulk recruitment with lucrative offers was important catalysts to accelerate the high attrition rates. The mushrooming placement consultancies and job web websites had played a big role as catalyst too. Formulation of amicable retention strategy was a good option but, there was no clear cut formula to devise the strategy. A particular strategy could work for few organizations and could fail for others.

Therefore, was the employee supposed to shoulder the entire blame for attrition? In the years to come, it would be really interesting to see how the answer to this question would evolve.

Pedagogical Objectives:

  • To discuss about the Indian IT sector and how outsourcing has changed the trend in Indian software industry
  • To understand the reasons for attrition and ways to improve the turnover rate in Indian IT-ITES sector.

Keywords : IT/BPO Sector, MNC, Employers concern, HRM Case Study, Employees perspective, initiatives of retention, reasons for attrition, cost of turnover, Employees' psychology, Sagar Chakraverty, HR Challenge

Contents:

  • About the sector
  • The MNC effect
  • The impact of attrition
  • The employers concern
  • The employees' perspective

  • A way forward
  • Monetary loss due to attrition
  • Cost of Turnover
  • The employees' psychology

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