Reducing Staff Attrition


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Innovation Case Study: Reducing Staff Attrition for BFSI company

Innovation Case Study: Reducing Staff Attrition

Objective: To reduce the staff attrition

Process: Human Resource Management

Organization and Industry: Banking, Financial Services, Insurance (BFSI)

Case Background:A Fortune-50 organization in the BFSI space wanted to identify the drivers of staff

attrition and bring down the value significantly.

Challenges facing the organization

Staff attrition leads to incurring an expense in ramp up of new resources as well as the loss in productivity

and knowledge of the organization in the long run

While the organization had adopted six sigma framework through QAI, the conventional tools of six sigma

were found to be inadequate in providing answers to the complex situation. The annualized staff attrition

was at 84% at the start of the project and management wanted a fresh perspective to the problem.

Project Success criteria defined by Management

Management was exploring a structured approach to innovation that was low on complexity without

compromising the rigor and effectiveness.

The following criteria were defined for evaluation of the ideas

1. Structured approach towards identifying the vital few parameters of importance to the customer

2. Cost of implementation should be low

3. Ease of Implementation

4. Maintainability in the long run should be easy

QAIs Consulting Approach

The project was executed in the three phases shown in the figure.

Confidential 2008 QAI Global 1


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1. Information Gathering

a) The primary objective of Information

Gathering phase is to

1. Understand the Main

Parameters of Value from a

customer perspective

i. Main Parameters of

Value (MPV) are those attributes for product or service that will have the

greatest significance in the customers purchasing decision.

ii. Innovation requires a precise understanding of value: the who, what, when,

where, how, and why of the customers need. It then means getting that value

to them without complexity creeping in.

2. Study the solutions proffered by the industry to satisfy those parameters by doing prior

art search and

3. Obtain insights into the under-served opportunities.

For the Staff attrition reduction project the information gathering was carried out at different

levels

1. Collation of voice of management including

senior management

2. Information on the current situation as

obtained from the Innovation Situation

Questionnaire

3. Data of staff who have left the organization

and those who have not

4. Focus Group Discussions covering target employees using tools of Innovation.

2. Analysis

a) The primary objective of Analysis is to obtain insights from the Information Gathering

phase on under-served Main Parameters of Value.



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b) It further involves a rigorous analysis of the process to determine the opportunities for

improvement in service delivery.Summary for Good MD -CMB

c) QAIs team made use of advanced

multi-variate analysis to identify the

vital few factors and their percentage

impact on staff attrition. The sample

Anderson-Darling Normality Test

A-S quaredP-V alue 0.600.114

Mean 0.98529

StD evVariance 0.340290.11580

Skewness -0.229223

Ku rto si s -0.8 24 29 8N 68

Minimum 1st Quartile 0.238570.74992

Median 3rdQuartile 0.974871.30145

0.3 0.6 0.9 1.2 1.5 Maximum 1.55375

95%ConfidenceInterv alforM ean

0 .9 02 93 1 .0 67 66

95%ConfidenceIntervalforMedian

0 .8 80 40 1 .1 09 85

95%ConfidenceIntervals 95%ConfidenceInterv alfor S tDev

Mean 0 .2 91 16 0 .4 09 53

Median

0.90 0.95 1.00 1.05 1.10

Main Effects Plot (data means) for Signal to Noise Ratio - CMB

Satisfaction with workcontent Jo b ch allen gin g en o ug h Recog and Rewards by Superv. Relatio n ship with Su perv iso r

-1

-3

-5

-1 -1 -1 -1

-1 Op p ortu nity fo rperson ald ev an Opportunities forcareer enhanc Trng ad eq uate to perfo rmjob Comp en &b en efits vs.in d ustry

-3

-5

-1 -1 -1 -1

-1 Comp en con s is ten t with p erf Excess iv e wo rklo ad Co.in fo received fro msen iors Foo d Facility

-3

-5

-1 Tran spo rt Facility -1 -1 -1

-1

-3

-5 -1

output of the exercise is shown in the images.

3. Concept Development

a) 67 Improvement projects were initiated

including 4 six sigma Green Belt projects.

b) Secondary problems identified were resolved

using principles of innovation

4. Deployment of the recommended changes

a) The implementation of solution directions was

monitored over a period of 4 months.

Benefits Obtained

Evaluation Parameter Before After

Annualized Staff Attrition 84% 42%

Annualized Saving on account of reduction in Staff Attrition - $900,000



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Reducing Staff Attrition