CMS BUSINESS SCHOOL

JAIN​(DEEMED TO BE UNIVERSITY)

I / We, hereby submit the report of my/our mini – project in the course ‘Marketing
Research’ as a partial fulfilment of the second semester MBA (batch 2018 – 20)

TITLE​: ​A study on attrition rate in Hotel industry

Specialization​: MBA (​Marketing &Human Resources)

Submitted to
Dr. L Sudershan Reddy
Professor of Quants
Jain University

for the evaluation

Name Pesala Sudarsan Benla Ami Jain Prakash Briyana Davis

Anthony
USN NO. 18MBAR0265 18MBAR0170 18MBAR0022 18MBAR0251
Title & RO
Questionnaires
Secondary
research
Statistical
analysis
Conclusion &
Viva-voce
TOTAL
A study on attrition rate in Hotel industry
OBJECTIVES OF THE STUDY:-

PRIMARY OBJECTIVES:
● To help the hotel industry to improve the attrition rate.
SECONDARY OBJECTIVES
● To study whether the employee attrition is related to the job
satisfaction level of
● Employees in an organization.
● To identify the various methods adopted to control attrition rate.
● To find out the impact of employee attrition on other employees.

SAMPLE SIZE: 50

TARGET PEOPLE: EMPLOYEES OF HOTEL INDUSTRY

INTRODUCTION TO THE TOPIC
Attrition refers to the loss of employees due to reasons other than firing and other
employer-initiated events. This means that an employer has no direct control over how many
personnel are lost to employee attrition. Retirement is one major cause of employee attrition,
and since people tend to retire around a specific age this is a factor that can be accounted and
planned for. “A reduction in the number of employees through retirement, resignation or
death”. The action or process of gradually reducing the strength or effectiveness of someone
or something through sustained attack or pressure, The gradual reduction of workforce by
employees leaving and not being replaced rather than being laid off.
Attrition in business means the reduction in staff and employees in a company through
normal means, such as retirement and resignation, the loss of customers or clients to old age
or growing out of the company's target demographic. Attrition in human resources refers to
the gradual loss of employees over time. In general, relatively high attrition is problematic for
companies. HR professionals often assume a leadership role in designing company
compensation programs; work culture and motivation systems that help the organization
retain top employees.
This type of reduction in staff is one way a company can decrease labor cost the company
simply waits for its employees to leave and. Such a method contrasts with more severe
labour-reduction techniques, such as mass layoffs. Waiting for attrition naturally is usually
better for company morale. However, it can also have a negative impact on the employees
that remain if the duties from the eliminated positions are transferred to them with no pay
increase. It can also limit promotions within the company if these jobs are eliminated, which
can result in further attrition and turnover.

When employees leave a company and have to be replaced, that's called turnover. A certain
amount of turnover is unavoidable, but too much can ruin a company. Some employees will
always retire, move away, go back to school, or leave the workforce. This level of turnover is
not only unavoidable, it can be beneficial. It brings new people into the organization with
new ideas and a fresh perspective.The two general types of turnover are voluntary and
involuntary. Voluntary turnover is when the employee chooses to leave for whatever reason.
Involuntary turnover is caused by layoffs and similar actions where the decision for an
employee to leave is made by the company and not the employee. As a general rule,
voluntary turnover is the measure used to discuss and compare employers. It is the type most
directly affected by the front line supervisors. Involuntary turnover, caused by layoffs, can be
a long-term result of high levels of voluntary turnover. To calculate your company's attrition
rate, you divide the number of employees who leave in a given year by the total number of
positions you have. For instance, if you have 100 positions available and 30 employees leave
the company in a given year; your attrition rate is 30 percent. This may be high or low,
depending on the industry. Retail, as an example, tends to have a relatively high level of
attrition as an industry.

A major problem in high employee attrition is its cost to an organization. Job postings, hiring
processes, paperwork and new hire training are some of the common expenses of losing
employees and replacing them. Additionally, regular employee turnover prohibits your
organization from increasing its collective knowledge base and experience over time. This is
especially concerning if your business is customer facing, as customers often prefer to
interact with familiar people. Errors and issues are more likely if you constantly have new
workers.

TYPES OF ATTRITION

VOLUNTARY ATTRITION

Voluntary Attrition is a decision made by the employee to leave the job. Such a decision is
commonly known as resignation, quitting leaving or giving notice.Depending on the
employee’s reason, comfort with the employer, and dedication to the job, voluntary
termination may be sudden and abrupt without warning to the employer, or with a certain
amount of notice given. Generally, employers prefer that a departing employee provide at
least some notice to the employer, often at least two weeks, this often called a two weeks’
notice.

INVOLUNTARY ATTRITION
Involuntary Attrition is the employee’s departure at the hands of the employer. There are two
basic types of involuntary termination, known often as being “fire” and “laid off”. To be
fired, as opposed to being laid off, is generally thought of to be the employee’s fault, and
therefore is considered in most cases to be dishonorable and a sign of failure. Often, it may
hinder the new job-seekers chances of finding new employment, particularly if he/she has
been fired from earlier jobs. Job-seekers sometimes don’t mention jobs which they were fired
from on their résumés.

Questionnaire for Employees

Age:

Age Group Please tick

18 – 25
25 – 30
30 & above

Gender:
Gender Please tick
Male
Female
Others

Department:

1. How long have you been working in this organization?

a. Less than 1 year b. 3 years to 6 years
c. 1 year to 3 years d. 6 years to 10 years
e. more than 10 years

2. What made you decide to apply to this company?

• Reputation of the company.
• Compensation/Remuneration.
• Job security.
• For Experience.
• Learning opportunity and wok exposure.
• Others. Please specify _________________________

3. What were your expectations when you joined in the organization?

 a) Good salary.
b) Peaceful and stress less job.
c) Acceptance of views and opinions.
d) Career growth and advancement opportunity.
e) All the above.

4. Were these expectations met?

a) Yes b) No c) To some extent
5. What was the reason for you to change your previous job?
a) Declining Health conditions.
b) Increased Family issues.
c) Stagnant/Lack of Career growth.
d) Higher education.
e) Others Please specify _________________________

6. Do you agree that stressful working environment plays a major role in employee
turnover?
a) Agree b) Neutral c) disagree

7. Do you think lack of employee participation in decision making is a major problem?

a) Yes
b) No
c) To some extent

8. Are you given training for the job at hand?

a) Yes
b) No

9. Are you satisfied with the quantity and quality of training received for your position(s)?
a) Highly satisfied b) Satisfied c) Neutral d) Dissatisfied e) Highly dissatisfied

10. Does your immediate boss encourages or motivates your work?

a) Not at all b) neutral c) sometimes d) always

11. Does your supervisor provide you with timely and helpful feedback on your
performance for the sake of improvement?
a) Strongly agree b) Agree c) Neutral d) disagree e) strongly disagree

12. How would you rate the working environment in your organization?
a) Highly satisfied.
b) Satisfied.
c) Neutral.
d) Dissatisfied.
e) Highly dissatisfied.

13. Do you agree that the employee attrition affects the other employees of
organization?
a) Strongly agree b) Agree c) Neutral d) disagree e) strongly disagree

14. Have you received rewards and recognition for your achievements?
a) Yes b) No

15. How do you find your work load in comparison to reward or facilities which you
receive?
a) Extremely less b) less c) equal d) more e) extremely more

16. Are you performing a job that matches your skills?

a) Strongly disagree b) Disagree c) Neutral d) Agree e) Strongly agree.

17. Are you able to handle Work – life balance?

a) Yes
b) No
c) To some extent

18) What is the main concentration of your hotel?

a) Working environment
b) Employee safety
c) Team spirit
d) Motivation of employees
e) Others Please specify ________________________

19) According to you what would be the major requirement for employee satisfaction?
a) Remuneration
b) Employee safety and benefits
c) Recognition
d) Others Please specify ________________________________________

QUESTIONNAIRE for HR
Age:
Age Group Please tick
18 – 25
25 – 30
30 & above
Gender:
Gender Please tick
Male
Female
Others

Department:

1. How long have you been working in this organization?

b. Less than 1 year b. 3 years to 6 years
d. 1 year to 3 years d. 6 years to 10 years
f. more than 10 years

2. Do you agree that the employee attrition affects the other employees of organization?
a) Strongly agree b) Agree c) Neutral d) disagree e) strongly disagree

3. Does your organization conduct an Exit interview of the employees who resign?
a) Yes
b) No

4. Has your organization adopted any strategy to prevent Employee Attrition?

a) Yes b) No

5. Do you think these strategies adopted by the HRM are able to retain the employees?
(a) Yes (b) No.

6. Does your organization attempt to retain the resigning employees by offering

increased benefit?
a) Yes b) no c) depends on the individuals cost and value to the firm

7. On what basis do you select the employees?

a) Experience
b) Qualification
c) Communications
d) Reference
e) Others specify

8. On what basis the increment of salary is based on

a) Experience
b) Effectiveness of work
c) Tenure in particular designation
d) Customer satisfaction rating or feedback
e) Others specify

9. Do the management conduct Rewards and Recognition programs to employees?

a) Yes
b) No

10. Do you provide the Incentive programs?

a) Yes
b) No

11. What is the normal working hours followed for an employee

a) Below 8hrs
b) 8 hrs.
c) Above 8 hrs.

12. What is usual training period given for the employees for the job recruited?
a) Below 3 months b) 3 – 6 months c) above 6 months

13. Which are the greatest HRM challenges faced by your organization?
a) Performance management
b) Employee attrition
c) Employee absenteeism
d) Lack of employee engagement
e) Employee training ineffectiveness

14. Is Employee attrition a recognized challenge for your organization?

a) Yes
b) No

15) Which experience range is susceptible for more employee attrition rate
a) Below 4 years
b) 4 – 7 years
c) 7 – 10 years
d) Above 10 years

16) Does your organization adopted any creative HRM strategies to reduce employee
attrition?
a) Yes
b) No
17) Number of employees in your organization
a) 1-50 b) 50-100 c) 100 – 200 d) 200 and above

18) What is the current rate of attrition in your organization?

 a) Below 5 b) 5 – 10 c) 10 – 20 d) Above 20

19) How do you cover the gap developed due to the attrition?
a) Training
b) Incentives
c) Overtime
d) Packages
e) Free Accommodation
f) Others please specify _______________

20) Does your organization conduct survey to assess the satisfaction levels of employees?
a) Yes
b) No

21) What kind of benefits do your organization offers to a resigning employee to retain back?
a) Increase in remuneration
b) Bonus
c) Promotion
d) No retain back policy
Survey Results

Interpretation​: From our target population maximum number of people are between age
18-25 and 30 & above.
Interpretation​: From our target population majority of people are male.

Interpretation​: According to this analysis majority of the people working from 1 year - 3
years in their respective organization, followed by people working with their organization for
3 years-6 years. From our target population the least number of people have been working
with their organization is from 6 years-10 years.
Interpretation​: From this analysis it is clearly evident that though people wish to join a
company for several reasons including Company's reputation, Compensation/Remuneration,
for experience but Job Security being the priority from this target population.

Interpretation​: From our target population maximum numbers of people expect good salary
beyond peaceful job and career growth while joining an Organization.
Interpretation​: In this analysis majority of them had met their expectations from their
respective Organization.

Interpretation​: From our observation majority of the employees changed their previous job
due to Stagnant Lack of Career growth, as they are expecting career growthfrom their present
job.
Interpretation​: More than half of the people strongly believe that stressful working
environment plays a major role in employee turnover.

Interpretation​: From our findings it is evident that most of the employees believe that lack
of employee participation in decision making is a major problem.
Interpretation​: Most of the employees from our target population were given training for the
job at hand.

Interpretation​: From our target population majority of the employees are highly satisfied
and also equal number of employees are just satisfied with the quantity and quality of training
received for their position.
Interpretation​: From our target population majority of the employees are neutral with the
encouragement and motivation provide by the immediate boss.

Interpretation​: Majority of the employees is neutral with the feedback provided by the
Supervisor and only few employees disagree with this.
Interpretation​: From our target population most of the employees are satisfied with their
working environment in their respective Organization.

Interpretation​: Yes, as the statement says majority of our target population agrees that
employee attrition affects the other employees of Organization.
Interpretation​: From our analysis, we were able to find that majority of them received
rewards and recognition for their achievements.

Interpretation​: Majority of the employees says that the work load is equal to the reward or
facilities which they receive.
Interpretation​: Yes, as the analysis states that majority of the employees are performing a
job that matches their skills.

Interpretation​: Exactly half of our target population is able to handle work-life balance.
Interpretation​: Employee safety is the main concentration of their hotel is what majority of
our target population believes.

Interpretation​: Employee safety and benefits are majorly required for employee satisfaction
according to our survey.
Survey Results for HR

Interpretation: From our target population maximum number of people are between age
18-25 .
Interpretation: From our target population majority of people are male.

Interpretation : ​According to this analysis majority of the people are working from 1year - 3
years in their respective organization.
Interpretation : ​From our analysis, it is clearly evident that half of our target population
agrees and another half is neutral with the statement that employee attrition affects the other
employees of organization.

Interpretation : ​Yes, majority of our respondents says their organization conduct an exit
interview of the employees who resign.
Interpretation : ​From our target population half of the respondents agreed and another half
disagreed for adoption of employee attrition strategies in their organization.

Interpretation: ​More than half of our target population think the strategies adopted by the
HRM are able to retain the employees.
Interpretation : ​Yes, as the analysis states that equal number of people agrees and disagrees
that their organization attempt to retain the resigning employees by offering increased
benefit.

Interpretation : ​It is clearly evident that Experience, Qualification, Communication and

Reference are the basis for selecting the employees through our analysis.
Interpretation : ​Majority of our respondents believe that Effectiveness of work is the basis
of the increment of salary.

Interpretation : ​Each and every respondent agrees that management conduct Rewards and
Recognition programs to employees.
Interpretation : ​Every respondent from our target population provide the Incentive
programs.

Interpretation: ​From our target population for majority of the respondents 8 hours is the
normal working hours followed.
Interpretation : ​Majority of our target population provides training not more than 3 months
for the job recruited.

Interpretation : ​From our analysis Employee Absenteeism is the greatest HRM challenges
faced by their Organization.
Interpretation : ​Everyone in an organization believes that Employee attrition is a recognized
challenge.

Interpretation : ​Exactly half of our target population believes that below 4 years of
experience range is susceptible for more employee attrition rate while the other feels it is 4-7
years of experience range.
Interpretation : ​Majority of the target population agrees that their organization has adopted
creative HRM strategies to reduce employee attrition.

Interpretation : ​From our analysis for half of our target population , total number of
employees are 1-50 and for another half it is 50-100.
Interpretation : ​For majority of our target population, 5-10 is the current rate of attrition in
their respective organization.

Interpretation : ​Most of our respondents cover the gap developed due to the attrition
through Incentives.
Interpretation: ​From our target population, half of the respondents agreed and another half
disagreed for their organization conducting survey to assess the satisfaction levels of
employees.

Interpretation : ​More than half of our target population offers No retain back policy to a
resigning employee to retain back.
Conclusion:
The hotel industry provides employment to all categories of workers. Hence employee
engagement is very essential for effective utilization of man power resources. Employee
engagement is important for the good hospitality at the hotels. As per the analysis from the
results it is summarized that by increasing the employee growth and with the proper
employee engagement in the organization. Nowadays Employee engagement is very
important for the smooth functioning and survival of the organization. This could also
improve the business of the organization with the increase in customer satisfaction and could
also lower the turnover rate in the organization.