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Causes and Consequences of Attrition in Retail Industry Page 1
A
COMPREHENSIVE PROJECT REPORT
ON
―CAUSES AND CONSEQUENCES OF ATTRITION IN RETAIL INDUSTRY‖
Submitted to
C K SHAH VIJAPURWALA INSTITUTE OF MANAGEMENT
IN PARTIAL FULFILLMENT OF THE
REQUIREMENT OF THE AWARD FOR THE DEGREE OF
MASTER OF BUSINESS ADMINISTRATION
Under
Gujarat Technology University
UNDER THE GUIDANCE OF
Ms.Savitha K.
Submitted by
PAREEN RAVAL (097050592013)
RUCHI MORE (097050592031)
M.B.A – IV SEMESTER
C K Shah Vijapurwala Institute of Management
M.B.A PROGRAMME
Affiliated to Gujarat Technological University
Ahmadabad
April 2011
Causes and Consequences of Attrition in Retail Industry Page 2
PREFACE
A project research is a systematic & scientific investigation for
identifying a specific problem or study in a particular area in the organization
& thereby analyzing the same to give the best solution.
For the fulfillment of any organizational goal it is necessary to retain
talented employees from getting poached as low employee turnover rate
appreciate the value of the organization, retain company secret information as
it is and reduce recruitment & selection expense.
This project is also an attempt to study the common reasons of
employee voluntarily leaving or staying in organization, efforts made by
organization to retain employee, various career development programs
offered by the organization, impact of induction & training programs on
retention of employees and to determine the organizational climate and
accordingly suggest the strategies and steps for reducing turnover and
improving retention.
The objective of doing the project is to collect all the necessary
information with respect to the recruitment, selection training & development
procedures in personnel department & thereby to get the level of employee
engagement with the organization.
During research, the researchers have learned various concepts of HR
& gained knowledge of reasons and impact of high turnover ratio in retail
industry. The research work really has given immense learning to us.
We would like to whole heartedly thank all the employees of retail
organizations who gave us opportunity to learn.
Causes and Consequences of Attrition in Retail Industry Page 3
ACKNOWLEDGEMENT
We owe a great many thanks to a great many people who helped and
supported us while doing this project.
Our deepest thanks to our mentor, Ms. Savitha K, the Guide of the
project for guiding and correcting various documents with attention and care.
She has taken pain to go through the project and make necessary correction
as and when needed.
We express thanks to Mr. Rajesh Khajuria, Director of C K Shah
Vijapurwala Institute of Management, for extending his support. Our deep
sense of gratitude to Managerial level employees at D-mart, More, Pantaloons
and Mangal Bazaar for their support and guidance. Thanks and appreciation
to all helpful sales employees for their support.
We would also thank our Institution ,our faculty and administrative staff
members without whom this project would have been a distant reality. We also
extend our heartfelt thanks to our family
And well wishers.
Causes and Consequences of Attrition in Retail Industry Page 4
DECLARATION
We, Pareen Raval and Ruchi More, hereby declare that the report for
―Comprehensive Project‖ entitled ‖Causes and Consequences of Attrition in
Retail Industry‖ is a result of our own work and our indebtedness to other
work publications, references, if any, have been duly acknowledged.
Place: Vadodara (Signature)
Date : 30/04/2011 Pareen Raval
Ruchi More
Causes and Consequences of Attrition in Retail Industry Page 5
EXECUTIVE SUMMARY
―People‖ is the most important and valuable resource that every
organization has in the form of its employees. Dynamic people can make
dynamic organizations. Effective employee can contribute to the effectiveness
of the organizations. Competent and Motivated people can make things
happen and enable to organization to achieve its goals.
HR can help to deliver organizational excellence by focusing on
learning quality, team work and through various employee friendly strategy.
However due to cut throat competition it is difficult to retain skilled workforce
in retail, BPO, Insurance and IT sectors.
Study comprises in two parts.
The first priority was to acquire information and overview of retail
industry from Indian and Global perspective, Major attributes of growth, Major
players in retail and Major products gathered from various secondary sources.
The Second half of the project consists of primary study which
comprises of research on causes and consequences of high attrition rate in
retail organizations and recommendations/suggestions to reduce high
employee turnover to a greater extent. For primary study structured
questionnaire is designed and filled by retail sales personnel’s at D-mart,
More, Mangal Bazaar and medical representatives of pharma and health care.
Causes and Consequences of Attrition in Retail Industry Page 6
INDEX
SR. NO. PARTICULARS PAGE
NOS.
PART – 1 GENERAL INFORMATION
1 About the industry
World Market
Indian Market
Growth of the industry
8 - 22
2 About major Companies in the industry 23-24
3 Product profile (Major Products) 25-27
PART – 2 PRIMARY STUDY
4 Introduction of the study
4.1 Literature Review
4.2 Background of the study
4.3 Problem Statement and Importance of the
Study
4.4 Objectives of the Study
29 – 42
5 Research Methodology
5.1 Research Design
5.2 Source of Data
5.3 Data Collection Method
5.4 Population
5.5 Sampling Method
5.6 Data Collection Instrument
44 – 45
6 Data Analysis and Interpretation 46-67
7 Results and Findings 68
8 Limitations of the Study 72
9 Conclusion/ Suggestions 73/80
Annexure………………………………………………………..81
Bibliography……………………………………………………82
Causes and Consequences of Attrition in Retail Industry Page 8
1. ABOUT THE INDUSTRY
Retailing is evolving into global business with a substantial contribution
from technology. Large retail malls today are not only functioning as sales
outlets for a specific customer base but have gone to offer social experience,
become tourist attractions. Retail industry has become a major contributor to
a national income and is generating jobs in high numbers. In other words, it
has become larger than life.
Today retailing accounts for 14% of our national income, and 7% of our
total workforce. (Second to agriculture only).
Retailing that was defined once as a set of business activities that adds
value to the goods and services and sold to the consumer for their personal
and family use, is today aiming to deliver continuous and consistent relevant
shopping experience to them. Even, half a decade ago retailer was the guy
who satisfies customer needs by having right merchandise, at the right
placemat the right price when consumer wants it. Today things are little
different. Now, a retailer wants to have a large place where he can store much
more than the customer can think of at a price which the customer will find
very difficult to turn down. Mind you till now we have discussed is the pre Wal-
mart era. With the global number one poised to make an entry into India, the
future becomes impossible to imagine, but it can be understood clearly the
future of Indian retail will largely depends on global players.
Major Findings
1. The Retail Sector in India can be split up into two, the organized and the
unorganized. The organized sector whose size is expected to triple by 2010
can be further split up into departmental stores, supermarkets, shopping malls
etc.
2. In terms of value the size of the retail sector in India is $300 billion. The
organized sector contributes about 4.6% to the total trade.
3. In terms of growth the FMCG retail sector is the fastest growing unit and
the retail relating to household care, confectionery etc, have lagged behind.
Causes and Consequences of Attrition in Retail Industry Page 9
4. The foreign retail giants were initially restricted from making investments in
India. But now FDI of 51% is permitted in India only through single branded
retail outlets. Multi brand outlets are still beyond their reach. Again they can
only enter the market through franchisees.
In a nutshell we may conclude that the retail industry in India has a very
bright future prospect. It is expected to enrich the Indian Economy in terms of
income and employment generation.
Retail Industry: Demand and Supply Drivers
Demand Drivers Supply Drivers
Interest rates Competitors in the industry
Population Size of the market
Employment Cost of the factors of production
Personal disposable income
Individual debt
Retail Value Chain
Source : IMAP global retail industry report 2010
Causes and Consequences of Attrition in Retail Industry Page 10
WORLD MARKET
Retail Companies
Brief description
Operational formats
Financials Expected
Cap. Exp.(2011)
Geographic
Coverage
(2010)
Future plans
Wal-Mart Stores, Inc. (US)
Offers a full time
supermarket and a limited assortment of
general merchandise
with operations in
three business
segments: Wal-Mart
U.S., International and Sam’s
Club.
Cash & Carry/Warehouse Club, Discount Department Store, Hypermarket/Supercenter/Superstore, supermarket and online retail.
Revenue: $417 billion USD, year-over-year change: 0.95% Operating profit: $24.8 billion USD, year-over-year change: 5.1% Net income: $14.8 billion USD, year-over-year change: 7.0%
$3.9 billion USD
US: 75%; Rest of
the world: 25%
Expects to add more than 600
stores during fiscal year 2011.
Carrefour S.A. (France)
Offers a range of food and non-food products. Carrefour SA's supermarket chains include, among others, Champion and Norte brands, which primarily offer food, clothing and household goods.
Cash & Carry/Warehouse Club, Convenience/Forecourt Store, Discount Store, hypermarket, Supercenter/Superstore, Supermarket and online retail store
Revenue: $122 billion USD, year-over-year change: (1.14%) Operating profit: $2.4 billion USD, year-over-year change: (39.0%) Net income: $650 million USD, year-over-year change: (74.2%)
NA
France: 45%; Europe(except France): 33%; Latin America: 14%; Asia: 8%
In India, it is expected to set up 150 hypermarkets while in the global level it is planning to setup 50 supermarkets under the Carrefour Market banner and 30 convenience stores under the Carrefour express banner
Causes and Consequences of Attrition in Retail Industry Page 11
McKesson Corp. (US)
Distributes pharmaceutical products, medical surgical supplies, healthcare and beauty products and develops software to facilitate health enterprise. Also offers analytic, care management and patient solutions for payers.
Drugs/medical-surgical equipment distribution.
Revenue: $109 billion USD, year-over-year change: 1.94% Operating profit: $2 billion USD, year-over-year change: 17.7% Net income: $1.3 billion USD, year-over-year change: 53.5%
$81 million USD
US: 91%; Rest of the world: 9%
Planning to expand through acquisitions
Cardinal Health. (US)
Specializes in health care
supply chain services. Provides
pharmaceutical and medical products and services to healthcare
providers and manufacturers.
Pharmaceutical
distribution,
distribution and
consulting, retail
pharmacy franchisin
g and online store
Revenue: $99 billion USD,
year-over-year change: 2.6%
Operating profit: $1.4 billion USD,
year-over-year change: (2.9%)
Net income: $642 million USD, year-over-year change: (44.2%)
$62.5 million USD
US: 99%; Rest of
the world: 1%
Planning acquisitions to
expand their role as a service provider in healthcare industry,
along with investment in
nuclear pharmacy business.
Tesco Plc. (UK)
Tesco is an international
retailer mainly dealing in food
retailing. In addition it also provides retail banking and insurance services
through its subsidiary
Tesco Bank.
Convenience/Forec
ourt Store,
Department Store, Discount Department Store,
Hypermarket/Super
center/ Superstor
e, Supermar
ket and online retail.
Revenue: $90 billion USD,
year-over-year change: 5.59%
Operating profit: $4.9 billion USD,
year-over-year change: 5% Net income: $3.7billion USD, year-over-year
change: 9.1%
$5.5 billion USD
UK: 74%; Europe:
15%; Rest of the world: 11%
Planning to invest in retail and in banking
operations
Causes and Consequences of Attrition in Retail Industry Page 12
The Kroger Co. (US)
A US based retailer which manufactures, processes and
sells food products in its
own supermarkets.
Convenience/Forec
ourt Store,
Hypermarket/Supercenter/Superstore,
Other Specialty, Supermar
ket and Online retail.
Revenue: $80 billion USD,
year-over-year change: 1% Operating profit: $2.1 billion USD,
year-over-year change: (10.1%)
Net income: $16 million USD, year-over-year change: (94.4%)
$1.9 – 2.1 billion USD
US: 100%
Plan to invest in capital projects
during 2010 with a strong focus towards
remodels and infrastructure
projects.
Woolworths Ltd. (Australia)
Australia based retailer in the
manufacturing, export and
wholesale of processed
foods. It also operates in hospitality
business which includes hotels, pubs, F&B, and
gaming operations.
Convenience/Forec
ourt Store,
Discount Department Store,
Electronics
Specialty, Other
Specialty, Supermar
ket and Online store
Revenue: $46 billion USD,
year-over-year change: 4.2%
Operating profit: $2.7 billion USD,
year-over-year change: 9.3% Net income: $1.8 billion USD, year-over-year
change: 10.1%
$1.8 billion USD
Australia: 92%; New Zealand:
8%
Plans to open new stores
eBay Inc. (US)
Operates an online trading community.
Their service is used by buyers and sellers for the exchange
of products and services. It also offers through a
subsidiary a secure online
payment service.
Online Store
Revenue: $9 billion USD,
year-over-year change: 2.1%
Operating Income: $1.6 billion USD,
year-over-year change: (29.6%)
Net Income: $2.5 billion USD, year-over-year
change: 34.2%
$157 million USD
US: 45%; Germany: 13%; UK: 12%; Rest
of the world: 30%
Plans to tap more international markets
Source: IMAP global retail industry report 2010
Causes and Consequences of Attrition in Retail Industry Page 13
INDIAN MARKET
Retail landscape in India
The retail industry in India gathered a new dimension with the setting
up of the different International Brand Outlets, Hyper or Super markets,
shopping malls and departmental stores.
Key Players in the Indian Retail Sector:
The untapped scope of retailing has attracted superstores like Wal-
Mart into India, leaving behind the kiranas that served us for years. Such
companies are basically IT based. The other important participants in the
Indian Retail sector are Bata, Big Bazaar, Pantaloons, Archies, Cafe Coffee
Day, landmark, Khadims, Crossword, to name a few.
.
According to the Union Minister of Commerce & Industry, Shri Kamal
Nath, the organized retail sector is expected to grow to a value of Rs.
2,00,000 crore (US$45 billion) and may generate 10 to15 million jobs in next 5
years. This can happen in two forms- 2.5 million of these people may be
associated directly with retailing and the rest 10 million people may be
gainfully employed in related sectors that will be pulled up through the strong
forward and backward integration.
Future of organized retail in India looks bright. According to recent
researches it is projected to grow at a rate of about 37% in 2007 and at a rate
of 42% in 2008. It will capture a share of 10% of the total retailing by the end
of 2010 linkage effects.
However to compete in this sector one needs to have up-to-date
market information for planning and decision making. The second most
important requirement is to manage costs widely in order to earn at least
normal profits in face of stiff competition.
Causes and Consequences of Attrition in Retail Industry Page 14
The Indian Retail Industry—Sky is the limit
In terms of the retail development index India ranks fifth. In Asia it occupies
the second position, next to China. Among all the global markets, the Indian
retail market is the most expanding. This is owing to absence in restriction at
the entry level. So the large foreign companies can reap the benefits of
economies scale by entering the green retail fields of India. There are many
reasons why the retail industry in India can reach the zenith.
Firstly the organized retail sector in India has a very low contribution to the
entire retail sector in the country. Hence there is ample scope for the new
players to achieve success in the backdrop of soaring disposable income of
the upcoming generation. Secondly, not only have the incomes increased but
there has been a sea change in the preferences of the consumers. These
factors have acted as a stimulus for the ushering of foreign players retailing in
apparels, accessories, electronic appliances etc. Large shopping malls have
already mushroomed in the metropolitan cities. There still lies untapped
potential in the Indian Retail Market
Share of Market: Urban v/s Rural in India
Source: NSSO 5th round; KPMG in India Analysis 2005
64 61 5750
44
33
36 39 4350
56
67
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Food Clothing and footwear
Misc consumer
goods
Durables Consumer services
Entertainment
Urban
Rural
Causes and Consequences of Attrition in Retail Industry Page 15
FDI in Indian retail industry
Taking into consideration the pros and cons of introducing FDI in India,
ICRIER has recommended 49% of FDI. The opening up of FDI in India is also
expected to be gradual so that the domestic industries can tailor themselves
according to the changes. At the formative stage, the idea was to start with
26% of FDI in this sector. But soon the idea changed as China's FDI moved
up from 49% to 100% in the retail sector.
While the government is continuing its plans to liberalize FDI in the retail
sector in India, foreign companies like Wal-Mart are waiting on the threshold.
They basically wish to enter into partnership with various multinational chains.
FDI would bring about modern infrastructure that would help to boost the
productivity of the organized retail sector in India.
FDI is not allowed in the retail sector and this is the reason why many
prominent global players like Dominos, Levis, Lee, Nike, Adidas, TGIF,
Benetton, Swarovski, Sony, Sharp, Kodak etc are entering the retail market
via licensee or franchisee. The opening up of the economy to FDI in the retail
sector is also expected to generate employment. FDI can be a blessing
instead of curse only if it produces backward linkages relating to production
and manufacturing. It may also, in the process help to push up domestic
production as well as exports.
In the present scenario, 51% Foreign Direct Investment is permitted in
India only through single brand retailing. The international retailers are
entering the market through licensees just as Wal-Mart has entered through
the franchisee, Bharti Enterprises.
Causes and Consequences of Attrition in Retail Industry Page 16
GROWTH OF THE INDUSTRY
An increasing number of people in India are turning to the services
sector for employment due to the relative low compensation offered by the
traditional agriculture and manufacturing sectors. The organized retail
market is growing at 35 percent annually while growth of unorganized retail
sector is pegged at 6 percent.
The Retail Business in India is currently at the point of inflection.
Rapid change with investments to the tune of US $ 25 billion is being planned
by several Indian and multinational companies in the next 5 years. It is a huge
industry in terms of size and according to management consulting firm
Technopak Advisors Pvt. Ltd., it is valued at about US $ 350 billion.
Organized retail is expected to garner about 16-18 percent of the total retail
market in the next 5 years.
Growth of Retail Industry In India
Retail and real estate are the two booming sectors of India in the
present times. And if industry experts are to be believed, the prospects of both
the sectors are mutually dependent on each other. Retail, one of India’s
largest industries, has presently emerged as one of the most dynamic and
fast paced industries of our times with several players entering the market.
Accounting for over 10 per cent of the country’s GDP and around 8 per cent
of the employment retailing in India is gradually inching its way toward
becoming the next boom industry.
India has topped the A.T. Kearney’s annual Global Retail
Development Index (GRDI) for the third consecutive year, maintaining its
position as the most attractive market for retail investment. Retail industry is
the most promising, emerging market for investment. In 2007, the retail trade
in India had a share of 8-10% in GDP of the country. In 2009, it rose to 12%. It
was also expected to reach 22% by 2010. The enormous growth of the retail
industry has created a huge demand for real estate. Property developers are
Causes and Consequences of Attrition in Retail Industry Page 17
creating retail real estate at an aggressive pace and by 2010, 300 malls were
estimated to be operational in the country.
With over 1,000 hypermarkets and 3,000 supermarkets projected to
come up by 2011, India will need additional retail space of 700,000,000 sq ft
(65,000,000 m2) as compared to today. Current projections on construction
point to a supply of just 200,000,000 sq ft (19,000,000 m2), leaving a gap of
500,000,000 sq ft (46,000,000 m2) that needs to be filled, at a cost of US$15–
18 billion.
According to the Icrier report, the retail business in India is
estimated to grow at 13% from $322 billion in 2006-07 to $590 billion in 2011-
12. The unorganized retail sector is expected to grow at about 10% per
annum with sales expected to rise from $ 309 billion in 2006-07 to $ 496
billion in 2011-12.
As the contemporary retail sector in India is reflected in sprawling
shopping centers, multiplex- malls and huge complexes offer shopping,
entertainment and food all under one roof, the concept of shopping has
altered in terms of format and consumer buying behavior, ushering in a
revolution in shopping in India. This has also contributed to large-scale
investments in the real estate sector with major national and global players
investing in developing the infrastructure and construction of the retailing
business.
Source: Copyright @ 2011 – The Viewspaper
Growth of Retail Industry Globally
Retail, with total sales of $ 6.6 trillion, is the world’s largest private
industry ahead of financial industries $ 5.1 trillion. It is also home to a number
Causes and Consequences of Attrition in Retail Industry Page 18
of the world’s largest enterprises. Over 50 of the Fortune 500 companies, and
around 25 of the Asian top 500 companies, are retailers. The industry
accounts for over 8 percent of the GDP in western economies. Thus retail
industry is continuously growing throughout the world.
About Global Retail Development Index
It is published since 2002, the GRDI helps retailers prioritize their
global development strategies by ranking the retail expansion attractiveness
of emerging countries based on a set of variables including economic and
political risk, retail market attractiveness, retail saturation levels, and modern
retailing sales area and sales growth. The GRDI focuses on opportunities for
mass merchant and food retailers, which are typically the bellwether for
modern retailing concepts in a country.
2010 Global Retail Development Index™
Retail executives have learned again that their core markets are not the
powerful engines of growth they would like—United States and European
GDP growth in 2010 is expected to hover around 3 percent and 1 percent,
respectively. Today, reliance on developing countries for future growth is no
longer a ―nice-to-have,‖ but is a necessity. While the world’s biggest
developed economies slowly resume their growth trajectories, developing
economies in Asia, Latin America and the Middle East appear poised for
remarkable growth.
2009 Global Retail Development Index™
In a year when consumer spending and retail sales are declining in home
markets, global expansion to emerging markets increases in importance as a
strategy for growth. Unlike most developed markets, GDP in emerging
markets is expected to continue to grow, albeit at a slower rate. The larger,
more resilient emerging markets sit atop the 2009 GRDI as they are most
likely to lead the economic recovery.
Causes and Consequences of Attrition in Retail Industry Page 19
2008 Global Retail Development Index™
Vietnam has ended India's three-year reign as the most attractive emerging
market destination for retail investment.
2007 Global Retail Development Index™
Now in its sixth year, the GRDI identifies windows of opportunity to help
retailers make strategic investments in exciting new markets.
2006 Global Retail Development Index™
As the pace of globalization quickens so does the race into new markets. But
success in this race does not necessarily go to the swiftest. Rather, it goes to
companies that make the right moves at the right times. Location is still
important, but timing is the name of this retail game.
2005 Global Retail Development Index™
The global retail game is changing. While players surged into new markets in
2004, this year they are more focused on rebalancing their positions.
2004 Global Retail Development Index™
After a pullback in 2003, global retail is back on track for growth. The most
significant growth is taking place in emerging markets where about two-thirds
of global retailers interviewed which are planning to increase their activities
this year.
Source: www.google.com/Globalretaildevelopmentindex
Causes and Consequences of Attrition in Retail Industry Page 20
The Growth Drivers For Retail Industry
1) BABY BOOMERS: -
The single largest contributor to the growth of organized retailing was the
boom in consumer spending after the Second World War. This was caused
largely due an increasing population, when America witnessed 64 million
births in an 18-year period. Consumer preferences changed and spending
patterns became significant drivers for detail expansion thus making retailing
an attractive business.
2) INCREASED PER CAPITA SPENDING: -
The effect of population increase was further accentuated by an increase in
per capita spending. Per capita personal consumption expenditure in the US,
rose from $1,796 in 1959 to $22,391 in 1999. Even after adjusting for inflation,
the per Capita Expenditure in 1999 was more than double of that in 1959.
3) DUAL INCOME FAMILIES: -
Advent of dual income families also helped in the growth of retail sector. A
dual family can spend more but has very little time available for shopping.
Thus, convenience and speed of service became crucial parameters.
4) URBANISATIONS: -
Increased urbanization has led to high customer density areas thus enabling
retailers to use lesser number of stores to target the same number of
customers. Aggregation of demand that occurs due to urbanization helps a
retailer in reaping the economies of scale.
5) COVERING DISTANCE HAS BECOME EASIER: -
With increased automobile penetration and an overall improvement in the
transportation infrastructure, covering distances has become easier than
before. Now a customer can travel miles to reach a particular shop, if he/she
sees value in shopping.
Causes and Consequences of Attrition in Retail Industry Page 21
Growth Potential
The key growth areas include the urban, luxury segment on one end
of the spectrum and serving the rural sector on the other. In addition,
government policy encouraging FDI in the segment has resulted in a plethora
of international retailers keen on entering the market; American retail giant
Wal-Mart has tied-up with Bharti Enterprises and global coffee giant
Starbucks' has tied up with PVR Limited. In addition, Carrefour, Boots and
others are also expected to come in. With so much action, it is natural that
there is a huge scope for employment opportunities, and experts have
estimated that the sector will generate employment for ~ 2.5 million people in
20101. The top retail companies in India include the Raheja Group, Reliance
Retail, Tata Trent, Future Group, RPG Retail, and Ebony Retail Holdings.
Source: KPMG and FCCI report
91
5527
27
18
1818
Fastest Growing Retail Segments in India
Food & Grocery
Clothing
Furniture & Fixture
Pharmacy
Watch and Jwellery
Durables
45%
45%36%
27%
18%9%
9%
Fastest Growing Retail Formats in India
Speciality
Supermarket
Hypermarket
Discount
Deparmental Store
Convenience
Causes and Consequences of Attrition in Retail Industry Page 22
Future Prospects
There are many opportunities for those seeking to enter this sector,
and entry level positions such as sales executives don’t even require a
degree. Naturally, the higher order jobs for graduates with relevant degrees
and work experience, involve more responsibility, challenges and
remuneration. MBAs are increasingly being recruited, which marks a change
of HR policy, from the traditional preference to hire those from the FMCG and
hospitality sectors. In fact, senior executives in retail such as operations
heads are extremely well looked after, and HR consultants believe they are
paid in excess of Rs. 60 lakes.
The good news for graduates is that since the sector is so young and
vibrant, career growth happens very rapidly, and these positions are very
achievable in a compressed time period. Successful candidates across all
levels are those who are dynamic, able to multi-task and are equipped with
great communication skills.
Causes and Consequences of Attrition in Retail Industry Page 23
2. MAJOR COMPANIES IN RETAIL INDUSTRY
Top 10 Major Companies in India
No. Name of Group Name of Retail Outlets
1 Raheja Group Shopper’s Stop
2 The Tata Group Westside (Trent)
3 Future Group Pantaloon (Big Bazaar)
4 Lifestyle India Lifestyle
5 RPG Retail Food world, Music world
6 Raheja Group Crossword
7 Lifestyle Group Wills Lifestyle
8 Raheja Group Globus
9 Piramals (Pyramid & Crosswords)
10 Ebony Ebony Retail Holdings Ltd.
Source: website (top 10 retail companies in India)
Causes and Consequences of Attrition in Retail Industry Page 24
Top 15 Major Companies in the world
Rank Country of
origin
Name of
Company
Formats Retail
average
sales
Countries of operation
1 US Walmart Discount, Hypermarket,
Superstore, Warehouse
217799 Argentina, Brazil,
Canada, Mexico, UK,US
2 France Carrefour Cash & Carry, Convenience,
Discount, Hypermarket,
Supermarket
61565 Argentina, Belgium,
Brazil, Chile, China,
Columbia, France, Spain,
S.korea
3 Netherlands Royal Ahold Cash & Carry, Discount,
Drug
57976 Argentina, Brazil, Chile,
Czech
4 US Home Depot DIY, Speciality 53553 Canada, Mexico, US
5 US Kroger Convenience, Discount,
Speciality, Supermarket
50098 US
6 Germany Metro AG Cash & Carry, Department,
DIY, Hypermarket
43357 Austria, Russia,China
Belgium, France, Poland,
Germany, UK, Vietnam
7 US Target Department, Discount 49355 US
8 US Albertson’s Drug, Supermarket,
warehouse
37931 US
9 US Kmart Discount, Superstore 36151 US
10 US Sears Department, Mail order,
Speciality
53843 Canada, US US
11 UK Safeway Supermarket 34301 Canada, US, UK
12 US Costco Warehouse 34137 Canada, Japan, Maxico,
Taiwan, US, UK
13 UK Tesco Convenience, Department,
Hypermarket
33614 Hungary, Malasiya,
Poland, S.Korea, Taiwan,
US, UK
14 US JCPenney Department, Drug, Mail
order
32004 Brazil, Mexico, Puetro
Rico, US
15 Germany Aldi Einkauf Discount 313100 Austria, Australia, UK,
US, Belgium, Denmark,
Source: 2003 Global Retail Report, Deloitte Touche Tohmatsu
Causes and Consequences of Attrition in Retail Industry Page 25
3. PRODUCT PROFILE (MAJOR PRODUCTS)
Retail is usually classified by type of products as follows:
Food products
Hard goods ("hard-line retailers") - appliances, electronics, furniture, sporting
goods, etc.
Soft goods - clothing, apparel, and other fabrics
There are the following types of retailers (retail formats) by marketing strategy
on the basis of type of products.
Department stores - very large stores offering a huge assortment of "soft"
and "hard goods; often bear a resemblance to a collection of specialty stores.
A retailer of such store carries variety of categories and has broad assortment
at average price. They offer considerable customer service.
Discount stores - tend to offer a wide array of products and services, but
they compete mainly on price offers extensive assortment of merchandise at
affordable and cut-rate prices. Normally retailers sell less fashion-oriented
brands.
Supermarkets - sell mostly food products;
Warehouse stores - warehouses that offer low-cost, often high-quantity
goods piled on pallets or steel shelves; warehouse clubs charge a
membership fee;
Variety stores or "dollar stores" - these offer extremely low-cost goods,
with limited selection;
Demographic - retailers that aim at one particular segment (e.g., high-end
retailers focusing on wealthy individuals).
Mom-And-Pop (or Kirana Stores as they call them in India): is a retail outlet
that is owned and operated by individuals. The range of products are very
selective and few in numbers. These stores are seen in local community often
are family-run businesses. The square feet area of the store depends on the
store holder.
General store - a rural store that supplies the main needs for the local
community;
Specialty stores: A typical specialty store gives attention to a particular
category and provides high level of service to the customers. A pet store that
Causes and Consequences of Attrition in Retail Industry Page 26
specializes in selling dog food would be regarded as a specialty store.
However, branded stores also come under this format. For example if a
customer visits a Reebok or Gap store then they find just Reebok and Gap
products in the respective stores.
Convenience stores: It is essentially found in residential areas. They provide
limited amount of merchandise at more than average prices with a speedy
checkout. This store is ideal for emergency and immediate purchases.
Hypermarkets: provides variety and huge volumes of exclusive merchandise
at low margins. The operating cost is comparatively less than other retail
formats. A classic example is the Metro™ in Bangalore.
Supermarkets: is a self service store consisting mainly of grocery and limited
products on non food items. They may adopt a Hi-Lo or an EDLP strategy for
pricing. The supermarkets can be anywhere between 20,000-40,000 square
feet. Example: SPAR™ supermarket.
Malls: has a range of retail shops at a single outlet. They endow with
products, food and entertainment under a roof. Example: Sigma mall and
Garuda mall in Bangalore, Express Avenue in Chennai.
Category killers or Category Specialist: By supplying wide assortment in a
single category for lower prices a retailer can "kill" that category for other
retailers. For few categories, such as electronics, the products are displayed
at the centre of the store and sales person will be available to address
customer queries and give suggestions when required. Other retail format
stores are forced to reduce the prices if a category specialist retail store is
present in the vicinity. For example: Pai Electronics™ store in Bangalore, Tata
Croma.
E-tailers: The customer can shop and order through internet and the
merchandise are dropped at the customer's doorstep. Here the retailers use
drop shipping technique. They accept the payment for the product but the
customer receives the product directly from the manufacturer or a wholesaler.
This format is ideal for customers who do not want to travel to retail stores
and are interested in home shopping. However it is important for the customer
to be wary about defective products and non secure credit card transaction.
Example: Amazon and Ebay.
Causes and Consequences of Attrition in Retail Industry Page 27
Vending Machines: This is an automated piece of equipment wherein
customers can drop in the money in machine and acquire the products. For
example: Soft drinks vending at Bangalore Airport.
Other types of retail store include:
Automated Retail stores are self service, robotic kiosks located in airports,
malls and grocery stores. The stores accept credit cards and are usually open
24/7. Examples include ZoomShops and Redbox.
Big-box stores encompass larger department, discount, general
merchandise, and warehouse stores.
Some stores take a no frills approach, while others are "mid-range" or "high
end", depending on what income level they target.
Causes and Consequences of Attrition in Retail Industry Page 29
4. INTRODUCTION OF THE STUDY
4.1 Literature Review
What is Attrition?
A reduction in the number of employees through retirement, resignation or
death is called Attrition. Attrition is also called total turnover or wastage rate.
Why do Employees Leave the Organization?
It is said that people leave their bosses, not organizations. When employees
are happy with their superiors they choose to stay, if not they look for a
switch.
Following are the reasons to Leave the Boss :
1) Job not as expected
2) Job does not fit talents and interests.
3) Little or no feedback/coaching
4) No hope for career growth
5) Feel devalued and unrecognized
6) Feel overworked and stressed out
7) Lack of trust and confidence in boss/leaders
What is Attrition Rate?
The rate of shrinkage in size or number of employees is known as Attrition
rate. It is usually expressed in percentage.
Causes and Consequences of Attrition in Retail Industry Page 30
How to calculate Attrition rate?
There are different formulae to calculate the attrition rate of a company. This
is because of certain factors as:
The employee base changes each month. So if a company has 1,000
employees in April 2004 and 2,000 in March 2005, then they may take their
base as 2,000 or as 1,500 (average for the year). If the number of employees
who left is 300, then the attrition figure could be 15 percent or 20 percent
depending on what base you take.
Many firms may not include attrition of fresher who leave because of higher
studies or within three months of joining.
In some cases, attrition of poor performers may also not be treated as
attrition. Calculating attrition rate:
We have taken following formula by which Attrition rate can be calculated:
Attrition =(No. of employees who left in the year / average employees in
the year) x 100
Thus, if the company had 1,000 employees in April 2004, 2,000 in March
2005, and 300 quit in the year, then the average employee strength is 1,500
and attrition is 100 x (300/1500) = 20 percent. Besides this, there are various
other types of attrition that should be taken into account. These are:
Fresher attrition that tells the number of freshers who left the organization
within one year. It tells how many are using the company as a springboard or
a launch pad.
Infant mortality that is the percentage of people who left the organization
within one year. This indicates the ease with which people adapt to the
company.
Critical resource attrition which tell the attrition in terms of key personnel like
senior executives leaving the organization.
Low performance attrition: It tells the attrition of those who left due to poor
performance.
Causes and Consequences of Attrition in Retail Industry Page 31
Attrition Costs
One of the best methods for calculating the cost of turnover takes into account
expenses involved to replace an employee leaving an organization. These
expenses are:
A. Recruitment cost
The cost to the business when hiring new employees includes the
following six factors plus 10 percent for incidentals such as background
screening:
Time spent on sourcing replacement
Time spent on recruitment and selection
Travel expenses, if any
Re-location costs, if any Training/ramp-up time
Background/reference screening
B. Training and development cost
To estimate the cost of training and developing new employees, cost of
new hires must be taken into consideration. This will mean direct and
indirect costs, and can be largely classified under the following heads:
Training materials
Technology
Employee benefits
Trainers’ Time
C. Administration cost
They include:
Set up communication systems
Add employees to the HR system
Set up the new hire’s workspace
Set up ID-cards, access cards, etc
Causes and Consequences of Attrition in Retail Industry Page 32
The Brighter Side of Attrition
A poor performer is replaced by a more effective employee
A senior retirement allows the promotion or acquisition of welcome 'fresh
blood'.
When business is slack it is straight forward to hold off filling recently created
vacancies for some weeks.
Diagnosing Attrition
Commonly Used Techniques in the Industry are as follows.
1. Surveys: They are commonly used as part of the information gathering
process. They are a reasonable way of obtaining relevant information, though
response rates are often disappointing. Questionnaires need to be designed
carefully to be effective. They should be easy to use, anonymous and fairly
brief. Questions can be open or closed, multiple choice answers, ranking of
items or checklist format.
2. Exit Interviews: Exit interviews are used by the majority of companies. They
tend to be conducted just before an employee leaves, though some firms wait
until after the departure. Exit interviews will normally to be done in the form of
a questionnaire, though one to one interviews are also used.
Causes and Consequences of Attrition in Retail Industry Page 33
In majority of information regarding attrition, competitive salary is a
vital part of the entire concept of employee retention. However, a unique
concept was addressed in an article written by Barry Sweeny (2008). In this
article, he suggested that moving from only providing educators with an
orientation program, and mentoring support to a more complete induction
program. Attainable retention rates may be as high as 96% over a five year
timeframe. Clearly, even when a district cannot offer top salary, it can still
effectively compete for and keep quality employee by treating them
professionally and by expecting and supporting effective employee
performance. (Sweeny report- 2008 )
Some administrators have the viewpoint that ―high turnover is a
mark of an effective the viewpoint that ―high turnover is a mark of an effective
organization‖. (Ivancevich & Matteson report, 2002). This viewpoint is not
shared by all an is the subject of much debate. Turnover leads to many
categories of losses for the organization including financial, invested time and
knowledge. (Health field report, 2009), This is not to make the assumption
that all turnover is bad; loss of employees that cause problems of perform
below standard may be beneficial to the organization. By considering the topic
from this perspective, the issue of turnover needs to focus on frequency and
who is leaving. Ivanceivich suggested that there is no ideal method for
retaining the more proficient employees, although this would prove to be
beneficial to the organization. Other thought on this issue are that some
turnovers considered to be a normal amount. There are many be some
benefit to turnover, including loss of troublemakers and replacement of higher
paid personnel for personnel at a lower rate of pay. (Buford, Jr. & Linder
report, 2002). It seems that there is no data to show that these outweigh the
cost that will be incurred in the recruitment, advertising, recruitment, hiring
and training of these personnel.
The theories for retaining employees varied according to the
author of the particular article. In looking at some of the different viewpoints,
one must begin with the money. Many of the other theories will vary according
Causes and Consequences of Attrition in Retail Industry Page 34
to the individual personalities of the employees. (Heathfesld report, 2009)
Salary is considered a necessary component, but it is not the only factor that
enables organizations to attract and retain quality employees.(Griffith report,
2006) The pay issue not only will encompass competitiveness of pay, but also
other areas as well. One of these areas includes equity of pay, employees
become frustrated if they feel the pay is not fair within the industry as well as
within the organization. (Employment Retention strategy report). Another area
of concern to employees regarding pay involved structured pay range.
According to Griffeth additional important issues that area also part of the
financial side and are a part of the benefits package include medical
insurance. Post retirement insurance.
Some of the other issues covered were those that had no monetary
value or cost. These included respect and trust. People expect and want to be
treated with respect, and trust is a vital part of the effective and open
communication that is desired by most. (Heathfield report, 2009) . Some
additional ideas/theories presented involve simple rewards and recognition for
employees which can be as effortless as an occasional ―thank you‖. (Griffeth,
Jr., 2006) Most people crave additional responsibilities, this allows the man
opportunity to grow and develop. This does not necessarily require a
promotion but allows growth of the employees within organization and
development of additional skills. (Employment strategies report)
Employee satisfaction is one of the issue regarding high turnover. In
more than one article and textbook the issue of employee satisfaction was
discussed. It seems to have significant influence on the attrition and retention
issues. Issues that cause dissatisfaction within organization are often reasons
employees leave. (Employment Retention strategies report)
Causes and Consequences of Attrition in Retail Industry Page 35
Study on Attrition conducted by ASSOCHAM in different sectors :
High Attrition rate continue to plague services: ASSOCHAM Survey
Findings
Unabated level of attrition rate continues to be plaguing India Inc spreading
fast from IT and ITes to other service sectors such as civil aviation, financial
services, retail and engineering, according to an ASSOCHAM Eco Pulse
Study.
While the attrition rate in IT and ITes sector has slowed by 10 per cent to fall
in the range of 25-30 per cent in the year 2007 as compared to 35-40 per cent
rate in previous year but the service sectors at the crucial juncture of their
growth including civil aviation, financial services and retail are facing tough
times in retaining their staff.
Massive expansion in the retail sector is accompanied with rapidly increasing
attrition rate to even to the extent of 50 per cent in few cases. The companies
now prefer to sign bonds for three years as they are imparting them the
necessary training and specialized knowledge of retail functions.
Level of attrition rate in the manufacturing sector has remained almost same
at 20 per cent in 2007 as previous year. The functional areas like those of
production, maintenance and safety controls bear highest attrition problem.
The Study has found that the maximum of attrition is taking place among the
employees who are in age group of 26 to 30 years. It found that the segments
of employees who are most vulnerable to change are with experience range
between 2 to 4 years.
The most stable chunk of employees is found to be in age 39 to 45 years as
they find themselves to be unsettled in their jobs and companies that they
have been associated.
Causes and Consequences of Attrition in Retail Industry Page 36
Growth in construction activities in the economy has led to surge in demand
for engineers, resulting into increase in their movement across companies at
rate of 25 per cent. The engineering companies are sorting to pay hikes and
growth assurance, to curtail the attrition level.
Attrition trend also reveals that women employees are less prone to frequent
job changing than their male counterparts. For every 10 males jumping the
fence by changing the job, there was only 2 female’s crossing over.
Reasons for attrition according to ASSOCHAM
Dearth of professionals, technical nature of operations, increasing finance-
KPOs and attractive salary packages have led to rising job hopping at entry
and middle level in the financial services sector.
The immediate gains in salary package was found to be responsible for job
change in almost all the sectors, however the growth potential remains an
important reason prompting employee movement.
Attrition Rate study conducted by NASSCOM in IT Sector
Almost every sector in India is facing high rates of attrition these days. A
recent study revealed that employees leave either because of compensation
reasons or due to better growth opportunities. According to NASSCOM,
Indian 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.
Causes and Consequences of Attrition in Retail Industry Page 37
Attrition Rate study conducted by BES and Data Quest in IT Sector
Though the IT/ITES sector is booming, it is constantly facing high attrition
rates of 25% - 30%. Even the big brands are also facing the same problem.
Below are the details of attrition rates of various players in IT sector.
According to the survey conducted by BES and Data Quest, Sierra Atlantic
recorded highest attrition rate (29%) followed by Kanbay with 25% and Accel
Frontline with 20 percent.
Source: BES Survey 2006 : DQ-IDC
Source: Retention Strategy Report 200
Causes and Consequences of Attrition in Retail Industry Page 38
Employee Attrition – Low now but expected to worsen by KPMG and
FICCI report
Globally retailing is a high personnel turnover industry. Even large
retailers face attrition of 40 to 60% annually. Indian attrition rate levels are
currently low compared to global level. However it is expected to worsen
given the rapid expansion being witnessed and the existing shortage facing
the industry. To make matters worse, retail has to compete other high growth
industry like telecom, insurance and more specifically ITeS/BPO firms which
look for similar skills sets like customer orientation, selling skills,
communication skills etc. Respondents in this survey cited Ites as the other
sector to which most in store personnel migrate to from retailing.
Attrition in Retail Attrition in ITes
Source: KPMG in Indian retail survey 2005 Source: NASSCOM survey
14%
14%
43%
29%
% Respndents
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr0%
10%
20%
30%
40%
50%
2003 2004 2005
Causes and Consequences of Attrition in Retail Industry Page 39
Attrition rate analysis conducted by ASSOCHAM in BPO sector by April
2011
The BPO industry is facing serious challenges vis-í -vis shortage of
skilled and educated workers as the attrition rate in India’s BPO sector has
risen phenomenally at the rate of 55 per cent with a significant visible
movement in mid and senior management levels, according to an industry
specific analysis of the Associated Chamber of Commerce and Industry of
India (ASSOCHAM). Although, the BPO sector in India has been very popular
since the beginning, as it has opened up plenty of job opportunities and has
totted up huge revenue, but the awfully high attrition rate coupled with talent
crisis has plagued the sector since the very beginning, said ASSOCHAM
Secretary General, D.S. Rawat.
As per the ASSOCHAM analysis BPO-ITes sector has emerged
at the top with highest attrition rate of 65 per cent during the course of last two
years, giving a serious jolt to India prospects which was till recently the most
sought after BPO destination. Services offered by the IT/ITes and BPO in the
domains of pharma and BFSI (Banking, Financial Services and Insurance)
have registered an attrition rate of around 60 per cent. In the domains of retail
and IT sector an attrition rate of around 55 per cent has been recorded. Auto,
FMCG, Manufacturing and infrastructure sectors have registered an attrition
rate ranging between 45 to 50 per cent. Amongst all the relevant sectors the
services offered by the IT/ITes and BPO in the domain of energy sector has
recorded an attrition rate of 45 percent.
The literature research and review for this project produced a vast
amount of information concerning the employees’ attrition and retention. The
literature review revealed many variables in the process of retention of
employees in the private sector and many of which could be adopted by the
public sector. The literature review articles covered topics such as: Salaries,
benefits, job satisfaction and recognition. These topics revealed significant
number of areas that organizations can improve upon, which could lead to
reduce high attrition rate.
Causes and Consequences of Attrition in Retail Industry Page 40
4.2 Background Of The Study
―Most organizations don’t have a problem with headcount; they have a
problem with brain count.‖
- Allan Leighton (ex- president and CEO of Wal-mart Europe)
According to KPMG report(2006), Globally Retailing is a high
people turnover industry with even the larger retailers facing attrition between
40 to 60% annually. As organized retailing is at a nascent stage in India,
Attrition is not yet an issue at least at the middle and the senior management
level. However, with rapid growth in retailing, the demand for managers with
good retailing experience set to increase, hence attrition level are expected to
worsen. Indian attrition levels are currently low compare to global standards.
Retaining talented employees from getting poached along with reducing
turnover cost are the key areas that need to be given some serious thought.
Huge amount are being spent on hiring and training the recruits and hence
the cost of employee turnover adds a lot of money to a company's expenses.
Employees who leave the organizations take along with them valuable
information regarding the company, its customers, current projects and other
confidential data. Employees build relationship with customers and clients and
helps the business to grow but once they leave, such relationships are served
and can cause potential customer loss. The unspoken negativity can cause
more turnover. Time is crucial factor for a business to succeed and huge
amount of it goes in hiring and training new employees, also involved large
amount of money which is direct loss to the company, if employee leaves the
organization.
Causes and Consequences of Attrition in Retail Industry Page 41
4.3 Problem Statement And Importance Of Study
Problem statement
Having Human Resource Management as our specialisation and
having Retailing as our sectorial subject in the MBA curriculum, we found that
the most challenging issue faced by corporate is to retain their employees as
today's global workforce is more mobile than ever before. Further, recent
studies on Retail sector shows that currently Retail Industry is facing 55% (
assocham studySource:2011 attrition rate. Thus, high turnover is of
considerable concern for manager because it disrupts normal operations and
necessitates the costly selection and training of replacements to regain the
lost customers and suppliers contacts.
Problem statement is to study major attributes which plays major role in
high attrition rate and its impact on organisation as a whole.
On the basis of analysis, we will suggest different innovative strategies
which help retail industry employer to reduce attrition level to greater extent.
Importance of Study
Study will act as secondary source for management students for conducting
further research which leads to their career growth.
For researchers, it will work as authentic source to support their research
paper.
Study will also helpful to HR academicians to make their students aware
about attrition problem.
Despite increase globalization and fluctuating economic conditions, most
employers are now struggling hard to keep good employees. So this research
provides assistance to employers -
- To identify the most common reasons about why people leave their jobs
in retail sector.
- To develop various retention strategies to retain knowledgeable
employees.
Causes and Consequences of Attrition in Retail Industry Page 42
Study will also identify kind of HR practices different retail industries are
following in their retail store.
Research on causes and consequences of attrition in retail industry helps
retailer to improve their employee turnover rate and retain their key staff.
Study will make aware employees about their role and contribution in
organization's success and their engagement level with organization.
4.4 Objectives Of Study
To study the common reasons of employee voluntarily leaving or staying in
organization.
To suggest the strategies and steps for reducing turnover and improving
retention.
To study efforts made by organization to retain employee.
To study various career development programs offered by the organization.
To study the impact of induction & training programs on retention of
employees.
To determine the organizational climate.
Causes and Consequences of Attrition in Retail Industry Page 44
5 RESEARCH METHODOLOGY
5.1 Research Design
The exploratory research design is adopted for this project.
5.2 Sources Of Data
Primary Source: Primary data required for the study was been collected
through interview of sales manager and questionnaire method.
Secondary Source: It was collected through published books (like personnel
today, Hr review), journals, Company records, newspapers and internet. The
data collected by the researcher are tabulated and analyzed in such a way to
make interpretations.
5.3 Data Collection Method
For the purpose of the study the necessary data has been collected
from Primary and Secondary methods.
5.4 Population
The data are collected through survey and books, reports,
newspapers and internet. We have randomly chosen sales employees from
different retail stores such as D-mart, More, Mangal Bazaar, Health care MR.
The study sample constitutes 50 respondents in research area.
Causes and Consequences of Attrition in Retail Industry Page 45
Sr.No Retail Store Population No of
Respondents
1 More(FMCG) 32 17
2 D-mart(Apparel) 15 3
3 Mangal Bazaar 5 5
4 Pharma-Health
care(MR)
25 25
5.5 Sampling Method
Non probability Convenience Random Sampling.
5.6 Data Collection Instrument
We have used a structured questionnaire as a research instrument
tool which consists of close ended questions, multiple choice and questions
based on Likert’s scale in order to get data. All the questions in the
questionnaire are organized in such a way that elicits all the relevant
information that is needed for the study.
Causes and Consequences of Attrition in Retail Industry Page 46
6.DATA ANALYSIS AND INTERPRETATION
Sr. No Age group Female Male
15-25 9 8
26-35 17 9
36-45 3 4
Total - 29 21
15-25
26-35
35-45
0
2
4
6
8
10
12
14
16
18
Female
Male
15-25
26-35
35-45
Causes and Consequences of Attrition in Retail Industry Page 47
1. I served for ________________ years/months in this store.
0 – 3 Yrs 4 – 8 Yrs
Employee 44 6
(%) 88% 12%
Interpretation – 1
From the analysis we come know that majority of the respondents (88%) are
working in retail organizations for 3years or less than that. It shows that
majority of the employees did not continued with the same organization for
more than 3 years. Loyalty factor is missing here.
0
20
40
60
80
100
0 - 3 yrs 4 - 8 yrs
frequency of employees
Employee
Causes and Consequences of Attrition in Retail Industry Page 48
2. Previously engaged in any job? YES / NO
Yes No
Employee 42 8
(%) 84% 6%
Interpretatopm – 2
84% of respondents are previously engaged in job and 16% of respondents
are not previously engaged in any job but they are the fresher for
organization.
0
5
10
15
20
25
30
35
40
45
Yes No
frequency of employees
Employees
Causes and Consequences of Attrition in Retail Industry Page 49
3. If YES, then put tick mark on the sector type of your previous organization
in the given option below.
Retail Insurance Health
care
Manufacturing Others
(Education)
Not
Applicable
Employee 26 10 4 1 1 8
(%) 52% 20% 8% 2% 2% 16%
Interpretation – 3
Majority of respondents were earlier engaged in Retail sector and some of
were engaged in Insurance, Healthcare, Manufacturing and Educcation. So
we can idntify that retal sales employee most probably go the same retail
sales job after leaving one retail sales job.
0
5
10
15
20
25
30
frequency of employees
Employees
Causes and Consequences of Attrition in Retail Industry Page 50
4. Reasons for leaving earlier job.
Retail Insurance Healthcare Manufacturing Others
(Education)
Not
applicable
Monotonous
work
1
Long and Odd
working Hours
3 2
No growth
opportunities
2 2 2
Lack of
promotion
9 1
Higher salary 18 3 1
Higher education
No personal life 1
Problem with
peers
1
Lack of job
security
Others (location)
Not applicable 8
Causes and Consequences of Attrition in Retail Industry Page 51
Interpretation – 4
Majority retail employees leave their jobs for higher salary and lack of
promotion. Some of employees leave their jobs due to other problems like
monotonous work, long and odd working hours, no growth opportunities, no
personal life and problems with peers and boss.
1
322 2 2
9
1
18
3
11 1
8
Retail Insurance Health Care Manufacuring Others (Education) Not Applicable
Chart Title
Monotonous work Long & Odd working hours No growth opportunities
Lack of Promotion Higer Salary Higher Education
No personal life Problem with peers Lack of job security
Others(Location) Not Applicable
Causes and Consequences of Attrition in Retail Industry Page 52
5. How does the present company hire an employee?
Internal
recruitme
nt
Adver-
tisement
Employ-
ment
exchange
Employ-
ment
agencies
Educational
Institutions
Recomm-
endations/
referrals
Any
other
Employee 2 27 - 2 - 19 -
(%) 4% 54% - 4% - 38% -
Interpretation – 5
Retail Organizations generally hire their sales employees through
advertisement and recommendations/referrals. While some of them also do
internal recruitment for higher and middle level employees and some of them
make a use of employment agency.
0
5
10
15
20
25
30
frequency of employees
Employee
Causes and Consequences of Attrition in Retail Industry Page 53
6. Does company perform any of the tasks given below for employee retention
in the organization?
Tasks performed by the company Employee
Pay for performance 39
Recognition for outstanding performance 18
Encourage upward direction of communication 4
Open door policy 3
On the job training & development programmes 16
Promote employee growth 3
Provide challenging opportunity 12
Any other ( taking written exam for promotion purpose) 6
Causes and Consequences of Attrition in Retail Industry Page 54
Interpretation: 6
From the analysis, we can interpret that retail organizations are providing
financial as well as nonfinancial rewards to their employee in terms of pay for
performance and recognition for performance. Some organizations are also
conducting qualitative training and challenging opportunity. Many
organizations are performing more than one task. In other tasks they are also
conducting written exams for promotion purpose.i.e More
frequency of employees0
10
20
30
40
frequency of employees
Causes and Consequences of Attrition in Retail Industry Page 55
RATE YOUR AGREEMENT OR DISAGREEMENT WITH THE NEXT
STATEMENTS BY PUTTING TICK MARK CLOSEST TO YOUR OPINION.
7. I find my job satisfying.
Totally
agree
Somewhat
agree
No
opinion
Somewhat
Disagree
Totally
Disagree
Employee 10 20 5 13 2
(%) 20% 40% 10% 26% 4%
Interpretation – 7
Majority employees are satisfied with their job and 40% of employees are not
happy with their job.
Totally agree, 10
Somewhat agree, 20No opinion, 5
Somewhat disagree, 13
Totally disagree, 2
Causes and Consequences of Attrition in Retail Industry Page 56
8. I find the department has a ―fearless culture‖ (Being able to speak up and
speak against the status quo without fear of retribution.‖)
Totally
agree
Somewhat
agree
No
opinion
Somewhat
Disagree
Totally
Disagree
Employee 12 24 8 4 2
(%) 24% 48% 16% 8% 4%
Interpretation – 8
Majority employees believe that their retail organizations are having fearless
culture and they feel free to speak out problems regarding sales, customers
as well as products.
Totally agree, 12
Somewhat agree, 24
No opinion, 8
Somewhat disagree, 4
Totally disagree, 2
Causes and Consequences of Attrition in Retail Industry Page 57
9. I am provided opportunities for personal growth within the job environment
(Job sharing, task forces, conferences and expanded responsibilities.)
Totally
agree
Somewhat
agree
No
opinion
Somewhat
Disagree
Totally
Disagree
Employee 11 27 6 4 2
(%) 22% 54% 12% 8% 4%
Interpretation – 9
From the analysis we can say that all retail organizations are providing career
and growth opportunities to their employees.
Totally agree, 11
Somewhat agree, 27
No opinion, 6
Somewhat disagree, 4
Totally disagree, 2
Causes and Consequences of Attrition in Retail Industry Page 58
10. I am consistently aware of the department’s organizational direction
(Knowing the mission, vision, strategies and goals.)
Totally
agree
Somewhat
agree
No
opinion
Somewhat
Disagree
Totally
Disagree
Employee 24 24 1 0 1
(%) 48% 48% 2% 0% 2%
Interpretation – 10
All employees are generally aware about organization's mission, vision,
strategies and goals and management is providing them all guidance
regarding company policies and procedures on continuous basis.
Totally agree, 24
Somewhat agree, 24
No opinion, 1
Somewhat disagree, 0
Totally disagree, 2
Causes and Consequences of Attrition in Retail Industry Page 59
11. The department recognizes my work-life balance needs (Seeks to
consider the demands of work with the need to deal with personal and family
issues.)
Totally
agree
Somewhat
agree
No
opinion
Somewhat
Disagree
Totally
Disagree
Employee 3 18 7 20 2
(%) 6% 36% 14% 40% 4%
Interpretation – 11
Due to long working hours, life of retail employees becomes stressful. On the
other side they are willing to work in the retail industry they do necessary
adjustments related to their working hours.
Totally agree, 3
Somewhat agree, 18
No opinion, 7
Somewhat disagree, 20
Totally disagree, 2
Causes and Consequences of Attrition in Retail Industry Page 60
12. Pay for the job for employees adequate.
Totally
agree
Somewhat
agree
No
opinion
Somewhat
Disagree
Totally
Disagree
Employee 15 26 5 3 1
(%) 30% 52% 10% 6% 2%
Interpretation – 12
Employees are paid for their performance and their pay is adequate in retail
sector.
Totally agree, 15
Somewhat agree, 26
No opinion,
5
Somewhat disagree, 3
Totally disagree, 2
Causes and Consequences of Attrition in Retail Industry Page 61
13. I am satisfied with training provided by company through probation period.
Totally
agree
Somewhat
agree
No
opinion
Somewhat
Disagree
Totally
Disagree
Employee 17 20 4 4 5
(%) 34% 40% 8% 8% 10%
Interpretation – 13
Majority of the employees are satisfied with the training provided to them by
their retail organizations.
Totally agree, 17
Somewhat agree, 20
No opinion, 4
Somewhat disagree, 4
Totally disagree, 5
Causes and Consequences of Attrition in Retail Industry Page 62
14. Company providing flexi time working.
Totally
agree
Somewhat
agree
No
opinion
Somewhat
Disagree
Totally
Disagree
Employee 0 8 7 25 10
(%) 0% 16% 14% 50% 20%
Interpretation – 14
Retail organizations do not provide flexi time hours to their employees.
Totally agree, 0
Somewhat agree, 8
No opinion, 7
Somewhat disagree, 25
Totally disagree, 10
Causes and Consequences of Attrition in Retail Industry Page 63
15. Management considers the other aspect like secure career, benefits,
perks & communication.
Totally
agree
Somewhat
agree
No
opinion
Somewhat
Disagree
Totally
Disagree
Employee 2 17 10 17 4
(%) 4% 34% 20% 34% 8%
Interpretation – 15 & 16
Some retail organizations consider other aspects like secure career, benefits,
perks & communication while some are not following those aspects. But few
organizations like More, Westside are not providing the bonuses to their
employees during festivals like diwali, kite flying etc.
Totally agree, 2
Somewhat agree, 17
No opinion, 10
Somewhat disagree, 17
Totally disagree, 4
Causes and Consequences of Attrition in Retail Industry Page 64
17. Company considers human resource as an asset rather than liability.
Totally
agree
Somewhat
agree
No
opinion
Somewhat
Disagree
Totally
Disagree
Employee 23 17 4 6 0
(%) 46% 34% 8% 6% 0%
Interpretation- 17
Retail organizations consider all employees as an asset rather than liability.
Totally agree, 23
Somewhat agree, 17
No opinion,
4
Somewhat disagree, 6
Totally disagree, 0
Causes and Consequences of Attrition in Retail Industry Page 65
18. Company arranging regular informal meetings to give the opportunity to
employees to feel that they belong to the company and the company belongs
to them.
Totally
agree
Somewhat
agree
No
opinion
Somewhat
Disagree
Totally
Disagree
Employee 16 28 2 2 2
(%) 32% 56% 4% 4% 4%
Interpretation – 18
Retail organizations are arranging regular informal meetings to give the
opportunity to employees to feel that they belong to the company and the
company belongs to them on regular basis.
Totally agree, 16
Somewhat agree, 28
No opinion, 2
Somewhat disagree, 2
Totally disagree, 2
Causes and Consequences of Attrition in Retail Industry Page 66
19. Management of the company informs to employees about the decisions &
actions taken in concerning employee’s interests & problems.
Totally
agree
Somewhat
agree
No
opinion
Somewhat
Disagree
Totally
Disagree
Employee 26 21 2 1 0
(%) 52% 42% 4% 2% 0%
Interpretation: 19
From the analysis we can say that generally all the employees in retail
organizations are well informed about the decisions and actions concerning
their interests and problems taken by the top management.
Totally agree, 26Somewhat agree, 21
No opinion, 2Somewhat disagree, 1
Totally disagree, 0
Causes and Consequences of Attrition in Retail Industry Page 67
20. In organization authorities and responsibilities are properly decentralized
to increase effectiveness of performance.
Totally
agree
Somewhat
agree
No
opinion
Somewhat
Disagree
Totally
Disagree
Employee 15 22 8 5 0
(%) 30% 44% 16% 10% 0%
Interpretation: 20
In most of retail organizations authorities and responsibilities are
decentralized.
Totally agree, 15
Somewhat agree, 22
No opinion, 8
Somewhat disagree, 5 Totally disagree, 0
Causes and Consequences of Attrition in Retail Industry Page 68
RESULTS AND FINDINGS
What makes employees leave?
On the basis of research on causes of high turnover rate in retail
sector, we found some of the very common reasons which play major role,
are
Lack of promotional and career growth opportunities such as
Perceived opportunity for advancement
Presence and/or clarity of development plan.
Problem with superior or peers,
Compensation: Better compensation packages being offered by other
companies may attract employees .
Lack of recognition -If the work is not appreciated by the supervisor, the
Employee feels de-motivated and loses interest in job
Stress from overwork and work life imbalance: Job stress can lead to work
life imbalance which ultimately leads to employee leaving the organization
New job offer: An attractive job offer which an employee thinks is good for
him with respect to job responsibility, compensation, growth and learning etc.
can lead an employee to leave the organization.
For some employers, the denial of a full involvement in the overall
functions leads him to face difficulty in identifying himself with the organization
and its goals, resulting further in his inability to take pride even in being a part
of the organization. Also, some of the employees feel that the good work
turned out by them goes unappreciated. A circumstance, quoted as painful in
Causes and Consequences of Attrition in Retail Industry Page 69
many of the exit interviews is the unfortunate necessity of working with a boss
who has no value of equity, and who practices prejudice and nepotism in the
treatment of employees.
The major causes of employee turnover fall into four categories.
1) Pull Type
When an employee is attracted by an offer provided by any other organization
and he/she quits the organization, it is referred to a pull type. In this type, the
employee may find a better option in terms of career advancement, high
salary, more benefit packages, opportunity to work overseas, etc.
2) Push Type
The major reason for this type of resignation is when the employees
negatively perceive the organization and/or may be dissatisfied with the
existing situations. Factors such as uncongenial organizational culture,
problems with superiors or colleagues, job boredom, perception of unfairness
on issues like pay and promotion (distributive justice) causes a great deal of
satisfaction, which triggers the intention of quitting.
3) Unavoidable Turnover
Uncontrollable factors that are outside the purview of an organization are the
major reasons for this type of turnover. The reason for resignation is the area
unrelated to work in any direct sense. The most common is retirement and
some of the other reasons are illness, relocation—primarily to join with spouse
and family, to pursue higher education, responsibilities to care for their aged
parents, proximity to their residence, child care, maternity reasons, etc.
4) Involuntary
This type of turnover is the departure of employees, which are involuntary and
are initiated by the organization itself. Examples are layoffs, employee's
Causes and Consequences of Attrition in Retail Industry Page 70
termination due to problems, ending of contract, etc. The first two types of the
turnover, the push and pull can be avoided if the organization reacts properly
to the turnover symptoms of their employees.
Consequences of Employee Turnover
Decreased productivity; work backlog, increased workloads.
Increased investment in recruitment, training and maintenance of employees.
Decreased commitment and morale among the employees, leading to poor
team dynamics.
Knowledge transfer to the competitors: When an employee quits, he carries
the knowledge that he has acquired in the present organization.
Causes and Consequences of Attrition in Retail Industry Page 71
OBSERVATIONS
By visiting various retail stores/malls it is observed that majority of employees
are female and majority of them are between the age group of 23-27. It seems
that fresher employees are more mobile and dynamic, and are willing to move
from one job to other job to fulfill their expectations.
In More Mega Store, there is a system of taking written exams for the purpose
of promotion and they have black board system to acknowledge employees
regarding any changes in their working system and retail products. It implies
that good HR practices are followed at organization.
In pantaloons during the festive seasons to fulfill the gap of excess manpower,
they recruit manpower from some NGOs.
As analysis on attrition reveals that employees quit their job in majority of the
cases for higher pay and promotion.
Causes and Consequences of Attrition in Retail Industry Page 72
LIMITATIONS OF THE STUDY
Although all attempts were made to make this an objective study, biases on
the part of respondents might have resulted in some subjectivity.
Though, no effort was spared to make the study most accurate and useful, the
―sample Size‖ selected for the same may not be the true representative of the
Company, resulting in biased results.
This being the maiden experience of the researcher of conducting study such
as this, the possibility of better results, using deeper statistical techniques in
analyzing and interpreting data may not be ruled out.
One constraint has been regarding the cost, as study involves the collection of
primary and secondary data. Therefore, the cost incurred was much more.
Normally employees hesitate to disclose the information and they are always
busy in their work. We may not have given clear answer.
The study is to taken up for the academic purpose only.
The study was on 50 selected employees from different retail stores, so their
need not be the universal opinion.
Managers were reluctant to disclose the database and lack of practical issues of attrition
because companies are requuired to maintain confidentiality.
Due to time constraints all the aspects of the attrition couldn’t be studied and
elaborated.
Causes and Consequences of Attrition in Retail Industry Page 73
CONCLUSION
Retention Determinants
Following are the components that affect employee retention.
Career opportunities
1. Training Continuity.&
2. Development Rewards
1. Competitive pay & benefits.
2. Performance reward
Differentiation.
3. Recognition.
4. Special benefit & perks.
Job design & work
1. Job responsibility & autonomy.
2. Work flexibility.
3. Working conditions.
4. Work/Life balancing
Employee Relationship
1. Fair/nondiscriminatory
Treatment.
2. Supervisory/management
Organizational
Components
Values and Culture.
Strategies & Opportunities.
Well managed &
Results oriented.
Job continuity & security.
Causes and Consequences of Attrition in Retail Industry Page 74
Benefits Of Attrition
Attrition is not bad always if it happens in a controlled manner. Some attrition
is always desirable and necessary for organizational growth and
development. The only concern is how organizations differentiate ―good
attrition‖ from ―bad attrition‖. The term ―healthy attrition‖ or ―good attrition‖
signifies the importance of less productive employees voluntarily leaving the
organization. This means if the ones who have left fall in the category of low
performers, the attrition in considered being healthy.
Attrition rates are considered to be beneficial in some ways:
1. If all employees stay in the same organization for a very long
time, most of them wil be at the top of their pay scale which will
result in excessive manpower costs.
2. When certain employees leave, whose continuation of service
would have negatively Impacted productivity and profitability of
the company, the company is benefited.
3. New employees bring new ideas, approaches, abilities &
attitudes which can keepthe organization from becoming
stagnant.
4. There are also some people in the organization who have a
negative an demoralizing influence on the work culture and team
spirit. This, in the long-term, is detrimental to organizational
health.
5. Desirable attrition also includes termination of employees with
whom the organization does not want to continue a relationship.
It benefits the organization in the following ways:
· It removes bottleneck in the progress of the company
· It creates space for the entry of new talents
· It assists in evolving high performance teams
Causes and Consequences of Attrition in Retail Industry Page 75
6. There are people who are not able to balance their performance as per
expectations, lack potential for future or need disciplinary action. Furthermore,
as the rewards are limited, business pressures do not allow the management
to over-reward the performers, but when undesirable employees leave the
company, the good employees can be given the share that they deserve.
Some companies believe attrition in any form is bad for an organization
for it means that a wrong choice was made at the beginning while recruiting.
Even good attrition indicates loss as recruitment is a time consuming and
costly affair. The only positive point is that the realization has initiated action
that will lead to cutting loss.
Causes and Consequences of Attrition in Retail Industry Page 76
SUGGESTIONS
RETENTION STRATEGIES
1) Exit Interview: Need for a Novel Approach
Exit interview is the process of identifying the reasons for which an
employee quits an organization. It is an interview scheduled between the
human resource professional and the employees who have planned to quit at
the time of leaving the organization to collate the reasons for the departure.
The human resource professionals may conduct the interview in a brief formal
session or even in a structured interview session.
1. Exit interviews provide an opportunity to 'make peace' with disgruntled
employees, who might otherwise leave with vengeful intentions.
2. Exit interviews are seen by existing employees as a sign of positive culture.
They are regarded as caring and compassionate - a sign that the organization
is big enough to expose itself to criticism.
3. Exit interviews accelerate participating managers' understanding and
experience of managing people and organizations. Hearing and handling
feedback is a powerful development process.
4. Exit interviews help to support an organization's proper HR practices. They
are seen as positive and necessary for quality and effective people-
management by most professional institutes and accrediting bodies
concerned with quality management of people, organizations and service.
5. The results and analysis of exit interviews provide relevant and useful data
directly into training needs analysis and training planning processes.
6. Exit interviews provide valuable information as to how to improve recruitment
and induction of new employees. Exit interviews provide direct indications as
to how to improve staff retention.
7. Sometimes an exit interview provides the chance to retain a valuable
employee who would otherwise have left (organizations often accept
resignations far too readily without discussion or testing the firmness of feeling
- the exit interview provides a final safety net).
Causes and Consequences of Attrition in Retail Industry Page 77
2) Reward strategies
The strategies of employee retention, briefly lists the main conveniences and
benefits that may be extended to keep employees hooked. It reads:
Above award remuneration and bonuses
Career development
Flexible work hours
Job sharing
Telecommuting
Gym membership
Share options
Opportunities for international travel
For, additional facilities like transport, accommodation, medical benefits,
`loyalty points' that bear weight age in the career advancement, would also
from part of the main package of employment conditions.
All this does come with substantial costs. A loyal workforce, however,
has a much greater worth than what these package facilities could cost. In
addition to these monetary benefits, a shrewd employer always plays upon
the psychology of the workforce by instilling in them a sense of participation in
the functions of the employing organization. A sense of ownership is also
infused through schemes like "Employee Stock Option Plan" /"Employee
Share Ownership Plan" (ESOP) or through sharing a part of the revenue
earned in the business. An effective leadership assumed by the top
management would be a very important feature that keeps the workforce
intact and loyal. In fact, the approach to the task of formulation of strategies
for employee retention should be comprehensive and the honest intention of
the employer to implement every stipulation in the package of appointment
should be evident.
Causes and Consequences of Attrition in Retail Industry Page 78
3) ―I‖ METHODOLOGY - ―The New Age Training Tool‖
―I‖ Methodology is movie/film based training method.
―I‖ stands for Innovative, Interesting, I feeling- i.e self empowerment.
According to this method, employees are shown clipping or videos
to improve sales, marketing, team spirit, stress management level,
interpersonal skill, communication skill, behavioral and motivational aspects
such as movie like Rocketsingh, Chakde India, Corporate, Iqbal, Goal etc.
And co-relate these aspects with real and practical day to day operations at
workplace.
Pros of ―I‖ Methodology
It helps to create stress free and relaxed environment
Retention of Learning- This movie based training helps employees to
remember for a longer time.
It Creates feeling of self empowerment and self motivation within the
employees.
Cons of ―I‖ Methodology
Trainees may not take it seriously.
They may be diverted.
It has limited applicability.
4) A BUDDY APPROACH
―Tell me and I will forget, Show me and I may remember, involve me I will
understand.‖
Buddy Approach make employees to feel that they are the dear
ones of organization and it also creates feeling of involvement. The major
aspect of Buddy Approach is peer learning.
Causes and Consequences of Attrition in Retail Industry Page 79
Benefits of Peer Learning
Positive Interdependence.
Team building Spirit
Supportive relationship
Develop leadership qualities
Acquire conflict management skill
Clarity of Concepts
Enhance Productivity
Peer learning Strategies
There are mainly two methods in Buddy approach.
1) Buzz Groups
Here employees are given case studies based on real market situations and
they are encouraged to come up with different solutions.
Affinity Group
2) Teach-write-Discuss
Here employees are taught about various job related aspects and querries
and then motivated to participate if they have any doubt and those doubts are
discussed by particular mentor.
The formation of an effective retention management program
In general, then, the management of turnover will have the greatest
organizational benefit when it is targeted at encouraging the retention of
valued employees and facilitates the replacement of less effective employees
with more effective staff. (9) Although each organization needs to assess the
patterns of turnover for its own particular circumstances, there are some
general policies to consider that have been shown to improve satisfaction
and, in return, reduce the level of turnover that should be part of any formal
employee-retention program:
Causes and Consequences of Attrition in Retail Industry Page 80
1. Establish and maintain both the practice and the impression of fair treatment
of all employees, so as to help foster a positive, consistent and reassuring
work environment.
2. Ensure that senior management and immediate supervisors demonstrate their
own sense of commitment to the organization.
3. Emphasize the need for a close match between the personality/work style of
prospective employees with the organization’s culture as well as providing
prospective employees with realistic job previews – there is evidence to
suggest that newcomers to an organization who leave within the first few
years may have a different commitment propensity at the time they join the
organization than do those employees who stay. (10) A more thorough
assessment of an employees’ past experience and reasons for leaving their
last job may help identify employees who are more likely to feel a stronger
sense of organizational commitment in the long run.
4. Properly incorporate new employees into the organization and manage their
expectations and initial experiences with the organization – in fact, a large
financial services firm found that it could effectively reduce turnover among
new hires by deliberately improving the process of socializing new employees
into the corporate culture, particularly through the use of mentoring.
5. Communicate realistic and attainable expectations of performance to all
employees, so as to avoid the potential for ―shock‖ and the development of
dissatisfaction.
6. Give positive and constructive feedback on a regular basis, including through
both formal job performance reviews and informal channels of communication
with employees, as well as ensuring that viable reward and recognition
programs are used to motivate all employees.
7. Offer clear-cut opportunities for job enhancement, advancement and career
development.
Causes and Consequences of Attrition in Retail Industry Page 81
BIBLIOGRAPHY
(A) BOOKS AND MAGAZINES
Retailscape2020 by Prof. N. Chandrasekhar, Sanjay Duttgupta,
Deepika bhagat Page 253 and 258
Employee Engagement in Retail by Jyotinder Kaur Chaddah
Rabiya Jidda, R K Srivastava. Page 545 – 553
Attraction to attrition, Case 21 from cases in retail management by
Prof. Srini.R.Srinivasan, Dr. R.K.Srivastava
Engagement and Rewards. Page 127 – 134, 3rd edition Armstrong’s
Handbook of Reward management practice by Michael Armstrong
Employee benefits. Page 382 - 387
Personnel Today
HR review by ICFAI
(B) LINKS
http://www.imap.com/imap/media/resources/IMAPretailrepot8-
23CB9AA9C6EBB.pdf
http://www.docstoc.com/docs/10265461/FICCI-Retail-Report-2007
http://www.NASSCOM.in
http://www.ASSOCHAM.org/arb/aep/attrition-rates.doc
(C) WEBSITES
www.citehr.com
www.iupindia.in
Causes and Consequences of Attrition in Retail Industry Page 82
ANNEXURE
Appendix-B Questionnaire for employees
Gender: Male Female Age; 15-25 26-35 36-45
1. I served for ________________ years/months in this store.
2. Previously engaged in any job? YES NO
3. If YES, then put on the sector type of your previous organization in
the given option below.
Retail
Insurance
Health care
Manufacturing
Others ( please specify )
4. Reasons for leaving earlier job. Put tick mark in the given option
below.
Monotonous work (repetitive nature of work)
Physical strains because of long and odd working hours
No growth opportunity
lack of promotion
For higher Salary
For higher education
No personal life
Problems with peers and managers
No permanent job
Others (please specify)
Causes and Consequences of Attrition in Retail Industry Page 83
5. How does the present company hire an employee .Tick an option
Internal recruitment
Advertisement
Employment exchanges
Employment agencies
Educational institutions
Recommendations / referrals
Any other (please specify)
6. Does company perform any of the tasks given below for employee
retention in the organization?
Pay for performance
Recognition for outstanding performance
Encourage upward direction of communication
Open door policy
On the job training & development programmes
Promote employee growth
Provide challenging opportunities
any other (please specify)
RATE YOUR AGREEMENT OR DISAGREEMENT WITH THE NEXT
STATEMENTS BY PUTTING TICK MARK CLOSEST TO YOUR OPINION.
7. I find my job satisfying.
Totally agree somewhat agree No opinion
Somewhat disagree Totally disagree
8.I find the department has a ―fearless culture‖ (Being able to speak up
and speak against the status quo without fear of retribution.‖)
Totally agree Somewhat agree No opinion
Somewhat disagree Totally disagree
Causes and Consequences of Attrition in Retail Industry Page 84
9. I am provided opportunities for personal growth within the job
environment (Job sharing, task forces, conferences and expanded
responsibilities.)
Totally agree Somewhat agree No opinion
Somewhat disagree Totally disagree
10. I am consistently aware of the department’s organizational direction
(Knowing the mission, vision, strategies and goals.)
Totally agree Somewhat agree No opinion
Somewhat disagree Totally disagree
11. The department recognizes my work-life balance needs (Seeks to
consider the demands of work with the need to deal with personal and
family issues.)
Totally agree Somewhat agree No opinion
Somewhat disagree Totally disagree
12. Pay for the job for employees adequate.
Totally agree Somewhat agree No opinion
Somewhat disagree Totally disagree
13. I am satisfied with training provided by company through probation
period?
Totally agree Somewhat agree No opinion
Somewhat disagree Totally disagree
14. Company providing flexi time working?
Totally agree Somewhat agree No opinion
Somewhat disagree Totally disagree
Causes and Consequences of Attrition in Retail Industry Page 85
15. Management considers the other aspect like secure career, benefits,
perks & communication?
Totally agree Somewhat agree No opinion
Somewhat disagree Totally disagree
16. If agree, then please specify one or two concerns with respect to
above question.
______________________________________________________________
17. Company considers human resource as an asset rather than liability.
Totally agree Somewhat agree No opinion
Somewhat disagree Totally disagree
18. Company arranging regular informal meetings to give the
opportunity to employees to feel that they belong to the company and
the company belongs to them.
Totally agree Somewhat agree No opinion
Somewhat disagree Totally disagree
19. Management of the company informs to employees about the
decisions & actions taken in concerning employee’s interests &
problems.
Totally agree Somewhat agree No opinion
Somewhat disagree Totally disagree
20. In organization authorities and responsibilities are properly
decentralized to increase effectiveness of performance.
Totally agree Somewhat agree No opinion
Somewhat disagree Totally disagree