Employee Attrition And Its Repesussions In Select Software Firms – An Empirical Study

Abstract

Attrition can be defined as shrinkage of employees’ strength in number due to resignation, retirement and death. The hectic competitive environment poses greatest challenges to firms in retention of its employees. Chronic attrition is not a good sign of any organizations’ performance. The study examined the critical reasons for attrition and its repercussions on organization and on employees. The focus of this comprehensive insight is limited to four renowned software companies in Chennai. The study was descriptive in nature, both primary and secondary data used. Programmer analysts, software engineers, and senior software engineers were included as a focus group to conduct survey. The selected sampling size for the study was 624 software professionals in the age group of 21 to 32 years. Non probability convenience sampling technique is used. Relevant Statistical tools applied to test the hypothesis. Study examined on the impact of attrition on organization and on employees. The study revealed that the training and hiring costs were slightly more among female employees when compared to male employees, recruiting right employee poses a great challenge, losing critical talent or star performers negatively impacts on project delivery and productivity. In case of impact on employees, stress was found more among female employees. Likewise staffing disruptions found more due to attrition of experienced employees