Factors affecting high employee attrition in manufacturing firms – A case study

Human Resource Management encompasses the various activities that are designed to enhance the effectiveness of the manpower in an organization in the achievement of organizational goals. There are a number of challenges in the Indian industries which require serious attention of HR managers. It is imperative for organizations to have a strong HR team with sufficient top management support. Employee Attrition/turnover is the outflow of people from an organization by means of superannuation, change of career or job, relocation of place, ill health etc. This study identifies the factors affecting high employee attrition at a manufacturing firm in India. It also focused on suggesting guidelines in addressing the high attrition prevailing in the plant. Primary data for quantitative analysis is collected using a structured questionnaire. Stratified random sampling is used for this study. Factor analysis and multiple regression analysis are used to identify the factors and to find the effect of these factors on various levels of management. The study revealed that organisational culture and granting leaves to the employees are the two important factors that affect employee attrition. Also work atmosphere inside the organisation emerged as the second most critical factor. From the findings, it is observed that HRM practices in the organization have to be improved significantly for reducing high employee attrition. This study will offer necessary inputs to the management of the firm and other companies in manufacturing sector in addressing the high employee attrition problem.