Authors: Kartik Tyagi, Hiten Saini, Prof. Indira Pradhan
Certificate: View Certificate
Attrition is a critical issue and pretty high in the industry these days. It’s the major problem which highlights in all the organizations. Though the term ‘ATTRITION’ is common, many would be at a loss to define what actually Attrition is, “Attrition is said to be the gradual reduction in the number of employees through retirement, resignation or death. It can also be said as Employee Turnover or Employee Defection”. Whenever a well-trained and well-adapted employee leaves the organization, it creates a vacuum. So, the organization loses key skills, knowledge and business relationships. Modern managers and personnel administrators are greatly interested in reducing Attrition in the organization, in such a way that it will contribute to the maximum effectiveness, growth, and progress of the organization. Retaining employees is a critical and ongoing effort. One of the biggest challenges in having managers in the place that understands it is their responsibility to create and sustain an environment that fosters retention. Staff requires reinforcement, direction and recognition to grow and remain satisfied in their positions. Managers must recognize this and understand that establishing such fundamentals demonstrates their objectives to support nature and motivate their employees. Attrition not only affects the business but also the brand image of a company. A company that has a high attrition is not always a sought after enterprise by job-seekers. The reason can vary from numerous reasons ranging from low remuneration to zero benefits. The need for attrition analysis is a must as it assists HR mangers to ascertain reasons for employee exits. This project witnesses various reasons given by the ex-employees for leaving the organization which helps in increasing the utmost importance of employees in the organization and the need for a wider avenue for change and dynamism to be introduced in order to tackle the causes of attrition, bringing various changes and interventions and retaining the current talent base.
A. About The Company
TATA POWER DELHI DISTRIBUTION LIMITED (TPDDL), previously North Delhi Power Limited (NDPL), is a joint venture between the Government of the National Capital Territory of Delhi and The Tata Power Company Limited, which holds a 51% majority stake in the venture.
It started operations on 1 July 2002 and currently serves 6 million people in the North and North-west parts of Delhi. It has a registered consumer base of 1.40 million. The company’s operations span an area of 510 sq. km. with a recorded peak load of around 1976 MW. It is the only distribution utility to receive the ISO 9001, ISO 14001 and OHSAS 18001 certification, and the only Indian utility to have SA8000 certification.
The company’s distribution automation project is based on systems such as GIS (Geographical Information System), ADMS (Advanced Distribution Management System) and OT’s (Operation Technologies).
The ADMS controlled and unmanned grid stations, GSM based Street Lighting System, SMS based Fault Management System and Automatic Meter Reading employed by the company are all firsts in the capital city area. Modern technologies such as High Voltage Distribution (HVDS) System and LT Ariel Bunch Conductor are also being used by them to curb power theft in the region. Tata Power Delhi Distribution Ltd is the first Indian utility to develop and set up Geographical Information System which has seamless integration with SCADA, SAP-ISU and Fixed Asset register. This system has unique mechanism of asset management, complaint management, network planning, etc.
Tata Power Delhi Distribution Ltd. is documented as the first in the country to initiate an Automated Metering Infrastructure based Auto Demand Response programme to help manage grid stress and peak demand. This is part of the company’s Smart Grid Journey.
Tata Power Delhi Distribution Limited was initially known as the North Northwest Delhi Distribution Company and subsequently renamed North Delhi Power Limited. In 2011, nine years after it first started operations, its name was changed once again to TATA POWER DELHI DISTRIBUTIONS LIMITED.
In June 2002, the distribution network of the erstwhile Delhi Vidyut Board was privatized as per the provisions of the Delhi Electricity Reform Act, 2000 and the Delhi Electricity Reform (Transfer Scheme) Rules, 2001. The Delhi Vidyut Board was unbounded and split into six entities managed by BSES Limited (now Reliance Infrastructure) and Tata Power. These six companies were BSES Rajdhani Power Limited, BSES Yamuna Power Limited, Delhi Transco Limited, Indraprastha Power Generation Company Limited, Delhi Power Company Limited, and North Delhi Power Limited (known today as Tata Power Delhi Distribution Limited).
Under the agreement, Tata Power gained a 51% stake in the North and Northwest Delhi firm with a payment of Rs. 187 cores. It also agreed to reduce the Aggregate Technical and Commercial (AT&C) losses of the firm by 17% in the next five years.
On 1 July 2002, Tata Power Delhi Distribution Limited began its operations as the North Northwest Delhi Distribution Company.
C. Company Products And Services
Tata Power DDL aims to serve utilities across the globe to improve their standards of performance and create long term value with strategic partners.
Working on the ethos of TATA group, the company has rallied over the years to completely transform the power scenario in its area. Providing reliable and quality power supply coupled with excellent customer services and boosted by latest technological advances, TATA Power-DDL has successfully brought about reforms in the sector and created a unique service delivery mechanism.
During the course of its transformation journey in the National Capital Territory of Delhi, Tata Power-DD L has acquired & developed its knowledge base, built its core competencies in utility management and has used these competencies to expand its footprints in different geographies both nationally and internationally, providing distribution related services including Operations Management, Commercial Management, Integration of Information and Operations Technologies for smarter and intelligent functioning of distribution networks, Change Management, Process Re-engineering, Capacity Building, etc.
Being a power distribution utility, Tata Power-DDL scores over other service providers because of its in-depth knowledge of the business processes that go into the daily functioning of any distribution utility. The company has been a forerunner in the adoption of state-of-the-art technologies and is a hub of diverse ad trendsetting technological solutions. Tata Power-DDL has amalgamated all the available solutions from different Business Associates in a seamless & integrated architecture.
Tata Power-DDL is a unique name amongst firms providing consultancy in the power sector. Building up on its four-fold strengths of expertise in Power Distribution, Change Management, Idea Capital and IT & Technology, Tata Power-DDL offers services that require domain experience as well as a consultant's vision. Tata Power-DDL's hands on experience of successful implementation and regular maintenance enables it to act as a Project Management Consultant and handhold utilities from cradle to youth to embrace state-of-art technologies.
After it began its operations in 2002, Tata Power Delhi Distribution Limited was faced with four key problems:
E. Objectives Of The Study
F. Limitations Of The Study
II. REVIEW OF LITERATURE
(Brayfield and Crockett, 1955),“Employee Attitudes And Employee Performance” have highlighted the positive relationship between attitudinal variables and voluntary turnover. It is seen that attitude-based turnover models have a direct link between employee attitudes and the act of leaving the organization.
(Arthur, 1994),“Effects Of Human Resource Systems On Manufacturing Performance And Turnover”talked about the key employees, who have done amazing in their education and are hardworking, always feel the need to be rewarded and recognized for their performance in the organization. Their enthusiasm to work and perform better depends a lot on the organizations? way of rewarding and recognizing them. So, if an organization has an environment that provides prospects for further development and self-actualization, this would reduce the chances of an employee leaving the organization.
(Magneretal., 1996), “The Interactive Effects Of Participation And Outcome Favorability In Performance Appraisal On Turnover Intentions And Evaluations Of Supervisors”emphasized that the employees stay longer in the same organization where they feel they are involved in the decision making process. This involvement gives them the satisfaction to be part of something really important.
(Herman, 1999), “Hold On To The People You Need”has highlighted five main reasons because of which employees leave their current organization. Insufficient support, incompatible corporate culture, unsatisfactory relationships with co-workers, dissatisfaction with compensation offered, and inadequate opportunities for growth are the reasons because of which employees leave.
(Sahu and Gupta, 1999),“An Empirical Analysis of Employee Turnover in a Software Organization”talked about the length of service, expectation reality match, turnover perception and outside career opportunities are also responsible for deciding to quit or to stay with the company.
(Abbasi and Hollman, 2000), “Turnover: The Real Bottomline” talked about five reasons that facilitates employee turnover. Toxic workplace environment, hiring practices, lack of recognition, managerial style, and lack of competitive compensation systems are the reasons which results in employee turnover.
(Walker, 2001), “Perspectives”has identified seven factors which boosts retention. These factors are compensation and appreciation of the work performed, recognition of capabilities and performance contributions, challenging work, good communication, opportunities to learn, positive relationships with colleagues, and good work-life balance.
(Arora et al., 2001), “The Indian Software Services Industry Research Policy” in their study observed that virtually it is becoming difficult for all firms to retain the talented pool of professionals. Even the compensation given to them (which is ideally above Indian standards) is not reducing their turnover.
(Ramlall, 2003), “Managing Employee Retention As A Strategy For Increasing Organizational Competitiveness” accentuated that inadequate compensation, payment below prevailing market rate and inadequacy in the internal and external equity was the common reason because of which employees leave an organization.
(Man-Negrin and Tzarina, 2004), “Job Search Modes and Turnover” claims that employees leave their organization because of the economic reasons, and one can use these reasons to understand and further envisage the employee turnover in the market.
(Oldham and Hackman, 2005), “How Job Characteristics Theory Happened” highlighted that employees leave their jobs only when they face continuous problems pertaining to work related matters. For instance, over-controlling supervisors or an unsatisfactory compensation.
(Hora, 2005), “Retaining Talent In The Knowledge Economy” talked about the importance of understanding employee expectations. It is important for the HR Managers to understand the importance of their employees and to understand the areas that interests them.
(Udechukwu and Mujtaba, 2007), “Determining The Probability That An Employee Will Stay Or Leave The Organization: A Mathematical And Theoretical Model For Organizations” gave a mathematical model that explained employee turnover by focusing on internal (employer) and external (social affiliate) determinants which influence an employee?s decision to leave an organization.
(Kim and Stoner, 2008), “Burnout And Turnover Intention Among SocialWorkers: Effects Of Rolestress, Job Autonomy And Social Support” emphasized that employees intend to leave because of factors related to individual (e.g. demographic factors or personality), job (e.g. nature, content or design of job) or organization (e.g. pay, supervisor or co-worker). Social support and job autonomy might have a direct negative impact on the employee turnover intention.
(Adhikari, 2009), “Factors Affecting Employee Attrition: A Multiple Regression Approach” identified the factors affecting employee attrition in the IT and ITES industry. The paper identified four factors. Work related issues have the greatest impact on attrition. The other three being employer related issue, skill of employees and the compensation. Compensation seemed to have the least effect on attrition.
(Ho et al., 2010), “Employee Attrition In The Malaysian Service Industry: Push And Pull Factors” emphasized the relevance of push and pull factors while understanding employee attrition in the Malaysian service industry. Work stress, improper work-life balance, and poor relations with co-workers are some of the factors which comes under the umbrella of push factors and promotion opportunities, better compensations, desire for higher studies, and interesting work are some of the pull factors.
(Deepa and Stella, 2012), “Employee Turnover In IT Industry With Special Reference To Chennai City” highlighted a number of factors which contribute to employee turnover. Demographics, Organization’s performance, Organization’s culture (in terms of its reward system, leadership, shared goals etc.), Employees personal traits (like desire to learn, change in personal life, new job offer etc.), Job characteristics, Unrealistic expectations are the factors that are perceived to enhance employee turnover in the IT industry.
(Joy P. and Radhakrishnan 2012), “Employee Attrition: Marketing of Financial Products”in their study on marketing executives of financial product companies identified six factors which affects attrition. 58.77 percent of variance was jointly explained by all the six factors. Work specific attrition, human resource policy of the organization, boss behaviour with sub-ordinates, prevailing economic forces, fellow employee influence and opportunities in the society are the six factors identified in this study. A positive relationship among all the factors was supported by the correlation matrix.
(Zahra, et al., 2013), “Job Satisfaction and Faculty Turnover Intentions: A Case of Pakistani Universities”have highlighted the significance of commercialization of education which leads to faculty turnover. As the number of Universities are increasing there is a paradigm shift which is increasing the staff turnover because of abundant opportunities.
(Vinit et al., 2013), “Employee Turnover: A Factorial Study of IT Industry? highlighted that factors like appraisal, openness, training, and flexibility act as key influencers for employee turnover. Thus these are the parameters on which an employee thinks before deciding to leave an organization.
(Saleem and Affined, 2014), “HR Practices and Employees Retention, an empirical analysis of Pharmaceutical sector of Pakistan, IOSR Journal of Business and Management “investigated the impact which Human Resources practices have on the employee attrition. Fairness of rewards and growth opportunities were considered to be the key factors influencing the employees? decision to leave an organization.
III. RESEARCH METHODOLOGY
A. Research Design
Research design can be thought of as the structure of research. It is the glue that holds all the elements in a research project together. Research design is a vital part of the research study. It is the logical and systematic planning and directing of piece of research. It is the master plan and blue print of the entire study.
B. Method Of Data Collection
To collect ex-employees’ survey responses, quantitative data collection method is used to produce results that are easy to summarize, compare and generalize.
C. Instrument For Data Collection
The instrument used is Questionnaire.
The questionnaire was designed with multiple choice and open-ended questions.
The exit interviews of the ex-employees were reviewed for the designing of questionnaire. The questionnaire consisted of 15 questions which consisted of 11 multiple choice questions and 4 open ended questions.
The questions were made to get the responses of the ex-employees about the reason of leaving TPDDL, current company and their designation, comparison of the ex-employee and current employee compensation, suggestions and improvements for TPDDL.
The responses were analyzed both quantitatively and qualitatively. The closed multiple choice questions were analyzed quantitatively and the open ended questions were analyzed qualitatively.
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The data was collected through a selective data sampling.
??????????????E. Duration Of The Study
The duration of study is of 2 months i.e. Jan & Feb. 2020.
IV. CONCEPTUAL DISCUSSION
The whole project can be divided into 3 phases-
1. Phase 1- Discussion, Conceptualization and Questionnaire preparation
This phase included analysis of existing exit forms which was in written form and employees had to fill that form before leaving organization. Analysis of exit form was aimed to identify various reasons for people leaving TPDDL in last 5 years and creating themes around those factors.
After recognizing themes and factors, a discussion with Prof . Indira Pradhan was held to discuss identified factors and their relevance towards TPDDL’s current situation. Discussion also included objective and rationale of whole study for TPDDL
The Questionnaire was made on Online Google Forms platform using my college mail id . Rationale of using Online platform was not only easy accessibility of questionnaire for employees over mobile, PC and laptop but also real time excel collation of responses.
2. Phase 2- Seeking responses from Ex- Employees
3. Phase 3- Analysis and Conclusion
V. ANALYSIS & INTERPRETATION
A. Survey Statistics
The major drawback of the database was that the phone numbers of the previous employees were not in use in majority. There were only 151 phone numbers that could be reached out of 432 separated employees which constitutes only 35% of the total number of separated employees.73 employees ( i.e. 48% ) responded when reached through phone calls.
B. Responses And Analysis
The responses of this checklist question were as above which show that the employees were majorly worried about the Career Growth and Salary. The Desired Job Role which ultimately leads to the career growth of the employee was also a source of worry for the employees. The Performance Management System of the organization was also a contributing cause for attrition. Most of the employees had multiple reasons for leaving the organization, wherein Career growth and Salary were the major factors among them.
This was an open-ended question aimed at gathering and analyzing various suggestions made regarding improvements that they believe TPDDL should undergo in order to reduce the current attrition rate.
Variety of comments and suggestions were received and analyzed that are depicted in the graph as shown below.
Major suggestions comprised of improving Salary, Career Growth and the Performance Management System of the organization.
Salary Comparison on a Scale of 1-5 ( 1- Lowest & 5- Highest )
Work Life Balance Comparison on a Scale of 1-5 ( 1- Lowest & 5- Highest )
Attributes contributing in taking up the new job offer on a Scale of 1-5 ( 1- Lowest & 5- Highest )
This was an open-ended question aimed at recording and analyzing responses regarding the improvements that they wish to be incorporated at TPDDL in order to bring them back to the organisation.
Few Comments recorded are as follows:
“TPDDL is inherited with the TATA culture, so they don't have to do any extra to bring us back but they need to take care about the career growth. Power sector is slow , so job seeker often remain far from the sector”
“Make the roles flexible so that people can take up interesting opportunities from different departments within the organization and contribute more to their own growth as well as to the company”
“Please merge with Tata renewable energy or Tata Power solar group ,if not possible please implement smart grid technology in exhaustive manner throughout New Delhi so that technical oriented employees could get the chance of new technology and have better chance to work with them”
“Company should look for expansion of its business and maturity of existing Deptt./ processes so it can provide reasonable opportunities of career progression to its existing employees. Moreover, the organization should adopt a matured and uniform salary structure where senior employees get more salary as compared to newly recruited employees on the same designation. ”
The separated employees are currently working in different sectors apart from the Power Distribution Sector as graphically depicted below.
The Government Sector attracted the highest number of the employees with Fringe Benefits and Job Security as their priority. The Government
Sector includes the Public Sector Undertakings and the Government of India.
Consultancy sector contributed to the next highest percentage of employees joining.
Furthermore, 7 percent of the separated employees are still continuing in the Power Sector.
Study and analysis of separated employees
Email address *
1. What are the reasons that contributed to your decision to leave Tata Power-DDL? *
2. How do you rate your overall experience at Tata Power-DDL : *
3. Do you have any suggestions for improvement?
4. CURRENT DETAILS:
5. Name of the current organization you are working with : *
6. What is your current position at your new organization? *
7. Is your salary package higher than that of your peers continuing at Tata Power-DDL? *
8. Is your Work Life Balance better than your peers working at Tata Power-DDL? *
9. Are your non-salary benefits better than your peers working at Tata Power-DDL? *
10. Rate the following attributes which contributed in taking up the new job offer:
1 - Lowest and 5 - Highest
11. What could be done to bring you back to TPDDL: *
VI. RECOMMENDATIONS AND CONCLUSION
1. In order to tackle issues related to Salary
A majority of recruitment for engineers can be done from Delhi (the same way engineers have been recruited from DTU and IP University this year).
Tier 2 and Tier 3 engineering college students can be tapped as they are quite efficient and this has been verified by the study done at Tata Power- DDL earlier.
By recruiting more people from Delhi, the accommodation costs for ETs and MTs would no longer be needed.
2. In order to tackle issues related to Desired Job Role
Competency-based hiring can be implemented wherein a set of desired competencies for every role is known and mentioned beforehand and the prospective candidate is judged upon that.
This will ensure a better fit for the job role and hence the organization as a whole. Moreover, the employee will have a sense of satisfaction and will relate to their job role much better.
3. In order to tackle issues related to Performance Management System
Ex-employees expressed the Performance Management System of Tata Power DDL as biased. To make it more transparent and improve the employee satisfaction and boost their confidence, the “continuous performance management process” can be adopted which involves the employee him/herself in the process. The major advantage of this process that makes it more transparent is the live real-time review of the employee performance.
4. In order to tackle issues related to Career Growth
Introduction of more levels in the promotion hierarchy.
Introduction of Point based Reward System wherein an employee can be rewarded with points for his initiatives and participation.
Analysis on Desired Areas of Improvement by Ex-employees categorized by Years of Experience versus various Factors contributing to Attrition :
From the survey we have conducted, there can be some approximate demographics figured out, and their most important requisites respectively. The employees irrespective of their demographics have desired improvements in every area but the emphasis on some areas is subjected to their number of years of experience.
Attrition cannot be removed, but it can be reduced. If initiative is taken towards this step, as per the recommendations of this research, then the attrition rate can be lowered, so that the expenditures towards hiring and training a new joiner which exceeds the cost of retaining an employee can be drastically brought down. Human resource management practices at both the strategic and day-to-day levels. That is, to be effective, human resource management practices must be grounded in two ways. First, they must reflect company wide commitments as to how it will manage and relate to its employees. Secondly, HR must implement these commitments so that the ideals of the enterprise and deeds of its agents are congruent. In order to ensure a consistent flow of trained manpower in the future, the industry needs to work with the government to introduce courses at a school and college level. To ensure organization\'s growth, HR manager should give close attention to why attrition is occurring in the present. To ignore why people are leaving the organization is to ignore the organization greatest assets – its people. People in organization are needed to perform the task; but they are not just machine but more than that. They are organization dreams, hopes, ambitions, creativity and innovation. And to retain these valuable assets is one of the surest ways to build an organization rather than just to go in global markets. And this is the only way an organization can lower its attrition rate. So factors such as training, goal awareness, career succession planning are important aspects to the employees and they prefer the organizational goals to objectives should have their interest in their continuous growth. Regular feedback and support also been involved in the attrition rate cause.
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Copyright © 2022 Kartik Tyagi, Hiten Saini, Prof. Indira Pradhan. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.