2. 2
Introduction
•Customer satisfaction is the key to success in any Industry
. Here we have taken an example of a Micro finance
organization. Providing financial support and being a
beacon light to the customer is the main objective of VFS.
•Providing better service and keeping better human touch
with the customer, a skilled manpower base is the crucial
cog. They are the key cornerstone to build any successful
Micro finance Institution.
3. 3
Introduction
Now a days, attrition is a big challenge and becomes a threat for
most of the MFIs. It is the silent killer that can swiftly disable
even the most successful and stable of organizations in a
shockingly spare amount of time. Most of the companies put an
emphasis on the costly process of hiring and recruiting but there
isn't enough attention invested in solving the issues of that
problem.
In this project technically we have analyzed the different types
and causes of employee attrition and the intricate areas where
we need to work. We have provided some recommendations,
which may benefit (VFS) in future.
4. 4
Metric to Measure Attrition
Attrition Rate:
It is generally expressed as a percentage and typically on a monthly or annual basis.
Formula for calculating the Attrition Rate:
Number of Attritions
Average Number of Employees
For example,
Suppose a company had 150 employees as of April 1, 2015.During that month, 20 employees voluntarily
left the company. Also, the company hired 25 new employees.
First, calculate the average number of employees. The beginning number was 150. If 20 people left and
25 people were hired, then the ending number was 155.
The average number of employees for that month can be calculated with the
equation (150+155)/2=152.5
Next calculate the monthly attrition rate. In this month, 20 people left, and the average number of
employees was 152.5. The monthly attrition rate can be calculated with the
equation (20/152.5)*100=13.11
The attrition rate for April, 2015 was 13.11 percent.
* 100
5. 5
Need For The Project
One of the major problems that (VFS) is
facing currently is the high level of
employee Attrition. In one hand the
company is growing with leaps and bounds,
on the other hand there is an alarming
attrition rate , which becomes a major area
of concern.
6. 6
Need For The Project (Contd..)
• It can be observed from the attrition rates that for the last two financial years
2016-17 and 2017-18 the rate had been quite high i.e. 22% and 30% respectively
for our organization. As per the Talent & Rewards Dipstick study for Micro
Finance Institutions conducted by Aon Hewitt in association with MFIN in
June’18. the average attrition level for MFIs for Eastern India is around 17%. The
high attrition rate has been a major area of concern for our organization which
requires immediate attention and action steps to address the issue.
9%
12%
23%
9%
22%
30%
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18
Attrition Rate: ( Company A)
7. 7
Scope of the Project
Operation
Head
CRM
ADM
BM
OEX
CSR
Operation Hierarchy:
Our scope is here
limited to the Front
liners at Branch level
i.e. mainly CSRs and
OEX.
8. 8
Total attrition (Employee + Trainee)
250
Employee Attrition
100 (40%)
Resigned within 6
months
60 (24%)
Worked for at least 6
months
40 (16%)
Trainee Attrition
150 (60%)
Data Collection
Overall Attrition : For April2018-June 2018
9. 9
Scope of the Project: Attrition
Segmentation
1. Trainee
2. Employee who Resigned within 6 Months
3. Employee who worked for at least 6 months
10. 10
Attrition: Overall Snapshot
Worked at least for 6
months (16%)
Trainee
(60%)
250
For April 2018-June 2018: Pictorial View
Resigned during Probation
(24%)
11. Attrition in different Segments
11
Month Designation CSR BM OEX
Apr-18
Resigned within 6 month 14 3 6
Worked for at least 6 months 8 3 3
Total 22 6 9
May-18
Resigned within 6 month 8 0 3
Worked for at least 6 months 5 1 0
Total 13 1 3
Jun-18
Resigned within 6 month 19 3 3
Worked for at least 6 months 6 7 3
Total 25 10 6
Attrition in different Segments: Apr2018-Jun2018
12. 12
Resign within
Month of 2018
Total
April May June
CSR OEX BM CSR OEX BM CSR OEX BM
1 Month 8 3 8 1 6 1 27
2 Month 1 1 2 4
3 Month 2 2 2 2 3 1 13
4 Month 3 1 1 1 6
5 Month 7 3 10
Total
14 6 3 8 3 19 3 3
60
23 11 25
Attrition Monthly Breakup
Attrition Monthly Breakup for the employees who left within 6 months
13. 15
Issues in different Segments
Major Influencers
Trainee Sourcing
Left within 6 months
Sourcing +Nature of Work, Others
Worked for at least 6 months
Manyfold
*Our scope is here limited to the trainee and employee who left within 6 Months
17. 20
Proposed Recruitment Process
List of interviewers
Approximate time and plan for each interview
•It should not be more than 30 minutes
•Both the HR and Operations department can take the
interview together
•Maximum 5 questions will be asked by each interviewer
• Select Interviewer from Operation department (ADMs or Higher Level)
• Select Interviewer from HR Department
18. 21
Proposed Recruitment Process
List of interviewers
Approximate time and plan for each interview
•It should not be more than 30 minutes
•Both the HR and Operations department can take the
interview together
•Maximum 5 questions will be asked by each interviewer
• Select Interviewer from Operation department (ADMs or Higher Level)
• Select Interviewer from HR Department
19. 22
Proposed Recruitment Process
List of interviewers
Approximate time and plan for each interview
•It should not be more than 30 minutes
•Both the HR and Operations department can take the
interview together
•Maximum 5 questions will be asked by each interviewer
• Select Interviewer from Operation department (ADMs or Higher Level)
• Select Interviewer from HR Department
22. 25
Trainee Assessment
We have analyzed the trainee assessment forms for
those employees who have left within 6 Months and
some assessment forms for those employees who have
not left .
No significant difference is found.
Assessment Process needs to be redefined.
23. 26
To Redefine The Nature of Work
Alternate approaches to optimize the productivity
/reduce associated risk
• ECS (Electronic Clearing Service)
• Cash Deposit by Customer
• Collection through Swipe Machine
24. 27
Perceived Problems Recommended Solutions
•Customer not agree to such frequently
cash deposit in bank.
• Account monitoring.
•Customer not comfortable for sharing
business transaction through bank.
•Connection with customer will de
touch.
•Customer can’t hold her cash in Bank.
•Can start Monthly ECS.
•Can possible over telephone before day
coll.
•Motivate and give well training about
this benefits.
•CAT program will arrange frequently
(Monthly Basic)
•Motivate them for deposit cash
maximum 1 day ago.
ECS
25. 28
Cash Less Collection
Cash Deposit
by Customer
• Chances fraud
• Not agree for
go bank
• Account
maintaining
Perceived
Problems
Recommende
d Solutions
• Bank slip
collect by
CSR
• Rotationally
go bank
• Special team
create.
Swipe
Machine Use
Perceived
Problems
Recommended
Solutions
• Costing
• Need all
customers
present
• ATM card not
available
• By high
productivity
Costing will be
less.
• Group A/C open
• Training and
motivated for
benefits.
26. Evaluating the Alternatives
Section Criteria ECS
Swipe
Machine
Cash Deposited by
Customer
Existing
Method
Company
PAR 0 0 0 0
Customer Acquisition + + + 0
Customer Connect - 0 0 0
Cost - - 0 0
Competitor Advantage + + + 0
OD Management 0 0 0 0
Productivity + + + 0
Employee Retention + + + 0
Employee
Work environment + 0 0 0
Utilization of Time + + + 0
Risk mitigation at Work + + + 0
Work Pressure + + + 0
Work life Balance + + + 0
Borrower
Ease of Payment - - - 0
Flexibility of Payment + + + 0
Company Connect - 0 0 0
Customer Privacy + 0 0 0
Total (11 +) (4-) (9+) (2-) (9+) (1-)
29
27. Advantages
30
• No risk of Snatching .
• Improving the Productivity
• More focus on Customer Acquisition
• Proper Loan Utilization Check
• Optimizing the Day of Work.
• Work life Balance.
28. Other issues
31
1. Poaching • Addressed by CEO
• Buddy concept
2. Avoidable Documents • Reduction of some
Redundant Documents to
simplify the work flow of
branches
There are some other issues:
29. Reduction of Redundant (!) Docs
Less
Registers
• Sanction
Register.
• Staff Wise
Location.
• Bad Debt Coll.
• Dis Reg can
Short.
• Cash Book
Files
• Demand Sheet.
• FP report.
• DCR.
• Dis File
Loan Form
• PPI.
• Sanction Part.
• Sign less
• Family Details
“You can work without pressure’’
32
30. 33
Recommendations
Major Influencers Recommendations
Trainee
Sourcing
• Sourcing of profile by ADMs
• Identification of ADMs to conduct the Interview
Left within 6
months
Sourcing • Change in assessment process after Induction
training completion.
Nature of Work • Avoidable documents recommended to be
reduced.
•Cashless Collection
Others • Identification of Buddies
• MD & CEO’s Communication
31. Next Course of Action
34
Receiving the requirement from the Business Head in 1
month advance.
Sourcing of profile by ADMs as per requirement in the
respective locations.
Identification of ADMs to conduct the Interview
Identification of Buddies from all the branches and their
training.
Change in assessment process after Induction training
completion.
Necessary awareness among the BMs.
Change in the assessment form.
Course of action if not selected.
32. Next Course of Action
35
Content and frequency finalization of CEO Video
Communication
Avoidable documents recommended to be reduced.
Cashless Collection
Cost Benefits Analysis
Risk Analysis
Identification of the Control Points in HO including any
compliance issue.
Redefining the Branch Operation (e.g. target, time, job
responsibilities)
Pilot test preferably in a new Branch for a period of 3 Months
under close supervision.
33. Limitations: Scope for the Future Project
36
• Employees left beyond 6 months not considered.
• During the course of the project only CSRs have
been considered.
• Sample may not be representative- there may be a
seasonal bias.
• Voice of the BMs were not captured.
• Dipstick of the Behavioral issue
34. “I have been always learning great
lessons from that one principle, and it
appears to me that all the secret of
success is there : to pay as much
attention to the means as to the end”
- Swami Vivekananda
Our goal is perfection.
Excellence will be tolerated.
- Sim Kay Wee
Thank You
Any Questions ?
Please contact
2parnabanerjee@gmail.com
