Study of employee turnover in an Indian software organisation

Abstract

A conservative estimate says that the different Indian Software Organisations are facing an employee turnover rate of up to 40%. The exact data regarding the employee turnover in different software organisations in Indian software Industry is either not available or not shared. Time to time, various Indian software organisations have attempted to curb down the employee turnover rate by launching programs, which are mainly based on prescriptions. These programs have not generated much success. It is proposed in this paper that rather than approaching employee turnover based on prescriptions, the causes of employee turnover should be understood in a particular organisation's context. The understanding hence reached would serve as a sound basis for managing employee turnover in that organisation. The employee turnover in an Indian Software Organisation operating in Bangalore was analysed. For this purpose, a content analysis of a sample of exit interview records from the organisation was carried out. The exit interview records capture the perception of the people who are leaving the organisation. Since the exit interview records in this case are self-reports, it is assumed that these are accurate and are representative of an individuals' frame of mind at the time of exiting. The standard qualitative methods were used for the analysis. The analysis clearly establishes the presence of a number of debilitating conditions that are triggering employees to look for an alternative employer. Non-competitive compensation, lack of travel opportunities, lack of growth and the nature of work came out as most significant debilitating conditions. The analysis also clearly establishes the presence of a number of supporting elements in the organisation. Culture & Working environment, friendly and pleasant atmosphere came out as the most significant supporting elements in the organisation. Depending upon who can influence, the debilitating conditions as well as the supporting elements have been classified into four clusters - "Business Related", "System Related", "Supervisor Related" and "Individual Person Related". It is argued that the employee turnover in an organisation is a function of balance between the debilitating conditions and the supporting elements. Once these factors are identified and established, the organisations should launch program that would remove the debilitating conditions while making sure that the supporting elements are further strengthened