BUSN20019 Impact of Employee Attrition Rate on Organisation Performance Assignment Sample

• Subject Code : BUSN20019
• University : Central Queensland University My Assignment Services is not sponsored or endorsed by this college or university.
• Subject Name : Professional Project

Professional Project

Table of Contents

Introduction.

Research aim..

Research question.

Literature review..

Research plan and hypothesis.

Conclusion.

References.

Executive Summary of Employee Attrition Rate

The topic of this research study is the impact of employee attrition rate on the organisation performance measured in terms of revenue of WIPRO. In this, the research problem is associated with the human resource management research that aims to analyse the impact of employee attrition rate on the organisation performance measured in terms of revenue of WIPRO. The secondary quantitative data will be collected from the annual reports of WIPRO that will help in analysing the impact of attrition rate on revenue of WIPRO. The hypothesis are formed for the test of the existence of relationship between two variables.

1. Introduction to Employee Attrition Rate

In human resource management research the corporate performance of any organisation is an imperative construct. There exists multidimensional conceptualisations that are used for the review of the performance of the organisation in the corporate sector (Trump, Endrikat, Zopf & Guenther, 2016). He economic growth of any country is largely dependent on the corporate performance of the organisations. The corporate performance is dependent on various factors including the attrition rate. The impact of the attrition rate on the corporate performance of an organisation can be significant. This voluntarily action at the broader scale can impact the performance of an organisation which may have a huge impact on the economy of the country. The corporate performance of an organisation can be measured in the terms of revenue which is the earning of the total tear.

This research focuses on the corporate performance of WIPRO organisation that is measured in the terms of revenue.

The research scope is the connection linking the impact of attrition rate of employees on the corporate performance of the organisation that is measured in the terms of revenue of WIPRO. This present study will help the human resource management researches in developing the employee management techniques so as to manage the high attrition rates in the organisations which has a significant impact on its corporate performance.

2. Research Aim of Employee Attrition Rate

The integral purpose of this research is to analyse the impact of employee attrition rate on the organisation performance measured in terms of revenue of WIPRO.

3. Research Question

 Q1. What is the impact of the attrition rate on the organisational performance of WIPRO measured in terms of revenue?

Q2. To what extent will attrition rate impact the organisational performance of WIPRO?

4. Literature Review of Employee Attrition Rate

The corporate performance of an organisation can be best measured using multidimensional conceptualisation like revenue, operating margin, return on equity, return on sales, return on investment (Prieto, Shin, Lee & Lee, 2020). The employees are the integral members of an organisation that are responsible for the corporate performance of an organisation. Every organisation faces a difficulty of attrition rate which has a significant impact on their performance. The high attrition rate refers to the high number of employees turnover rate which means the loss of skilled labour. The direct impacts are easy to measure like the corporate performance especially when it is measured in the terms of revenue. The employees high attrition rate that is more number of people leaving the organisation may also have a negative impact on the morale and the engagement of their colleagues. This impact on the morale and engagement of the colleagues have a tangible effect on productivity thus corporate performance. According to Sathyanarayan & Lavanya (2018) the employees who have stayed for longer in the organisation tends to acquire the work culture and losing them is considered a serious loss to the company because this can have a significant on the employee engagement thus revenue.

The employees in the organisation acquires skills and knowledge especially the ones who stay longer and losing such employees refers to the loosing of skilled labour which is not easily replaceable. The employees in an organisation works in teams that ensures effective collaboration and attrition rate impacts the smooth functioning of the team that leads to the loss of productivity. According to Al Mamun & Hasan (2017) many organisations bewail this challenge which is faced by them more frequently than expected. The attrition may not always be destructive for the organisation but it is considered as destructive for the corporate performance of an organisation. Some level of attrition may be valuable which is considered as mandatory for the growth and development of the organisation. There ae types and intensity of the attrition in an organisation which defines the loss or gain in the terms of productivity. The attrition is known as bad attrition when the loss of an employee from an organisation slows the progress and has a significant negative impact on the productivity given by an organisation (Yao, Qui & Wei, 2019). in very few cases, there is a good attrition because the loss of employees does not affect the productivity thus corporate performance of an organisation. Any employee that works in an organisation becomes skilled and knowledgeable about a particular work within short period of time and this is why the attrition of an employee has a significant negative impact on the corporate performance of an organisation.

Attrition is quit alarming in business sector which has a significant impact on the productivity of an organisation thus the corporate performance. the negative consequences of attrition are firstly the unfulfilled daily functions aspect (Chahal & Poonam, 2017). There are many unconstructive possessions of the revenue that are related to the quality of performance but still the businesses focuses on the companies that have higher turnover rates to adhere to the obligatory daily functions. According to Bacha (2016), one of the powerful effect of turnover is reduced performance of the employees at work station as the new workers who are replaced with the ones who have left the organisation but they have either little experience of the work or may not be that effective in productivity which hampers the growth of an organisation.

This bad attrition has a direct impact on the revenue generated by the organisation. employee attriton rate has an undeviating effect on the profit and prosperity of an organisation. According to Mathieu, Fabi, Lacoursiere & Raymond (2016), when an employee is being paid good amount of salary with a good position then the return collision will be much superior and when this employee leaves and the new employee is hired then the cost involved in the recruitment and selection process will be added to the costs of company. This will not contribute to the revenue that is the profit of the company. This creates a low workplace morale for the other employees because the fresh workers are not invulnerable thus affecting the overall productivity of an organisation. The main contributors in the loss of organisation that impacts the overall growth and corporate performance of an organisation are hire expense, decline in the sale and the schooling labour which are all the effects of high attrition rate (Ajit, 2016).

Employee attrition is one of the challenging issues in the corporate sector that also creates a sense of insecurity for the organisational workforce (Nica, 2016). It is considered as one of the most expensive challenge that is faced by any organisation and is also known to have a direct and negative impact on the revenue generated by the organisation that is on its corporate performance (Ehrhat & Kuenzi, 2017).

5. Research Plan and Hypothesis of Employee Attrition Rate

To study the impact of attrition rate on the corporate performance of an organisation WIPRO that is measured in terms of revenue, the secondary data was collected from the annual reports of WIPRO. This secondary quantitative data was collected from 2008- 2018 because this will help in learning about the attrition rates of WIPRO over the years and its impact on revenue in ten years which will help in drawing the conclusion for the organisational performance of WIPRO. The corporate performance will be assessed on the basis of erevenue which will be collected from the annual reports. The data of WIPRO for attrition rate each year will also be collected from the annual reports of WIPRO of over ten years. The secondary data is best data chosen for this study because this study is carried out on the data of ten years which can be best selected from the annual reports that gives the secondary data.

The data analysis will be performed out on the account of data selected from the annual reports that will be secondary quantitative data. The descriptive method of data analysis will be performed for the assessment of two variables that are attrition rate and organisational performance in the terms of revenue. This study has two variables that is attrition rate which is an independent variable and the revenue that measures the corporate performance of WIPRO that is the dependent variable.

The research will be presented using the following mentioned hypothesis:

Hypothesis 1:

Null hypothesis: There is significant relationship between attrition rate and revenue of WIPRO.

Alternative hypothesis: There is a significant relationship between attrition rate and revenue of WIPRO.

Hypothesis 2:

Null hypothesis: There is no major impact of attrition rate on the revenue generated by the organisation WIPRO.

Alternative hypothesis: There exists a major impact of attrition rate on the revenue generated by the organisation WIPRO.

6. Conclusion on Employee Attrition Rate

The conclusion is drawn on the basis of literature review that states that there exists a strong relationship between attrition rate and the corporate performance that is measured in terms of revenue of an organisation. The disclosure of the information related to both the variables that are attrition rate and revenue from the annual report helped in identifying the need of the human resource management to find the steps to mitigate the high attrition rate within organisations. The management of high attrition rate is very important to improve the corporate performance of organisations.

References for Employee Attrition Rate

Ajit, P. (2016). Prediction of employee turnover in organizations using machine learning algorithms. Algorithms, 4(5), C5.

Al Mamun, C. A., & Hasan, M. N. (2017). Factors affecting employee turnover and sound retention strategies in business organization: a conceptual view. Problems and Perspectives in Management, 15(1), 63-71.

Bacha, N. (2016). Antecedents and consequences of employee attrition: a review of literature. Available at SSRN 2868451.

Chahal, H. S., & Poonam. (2017). Study of organizational culture, employee turnover and employees' retention in hospitality sector. Pacific Business Review International, 9(11), 119-125.

Ehrhart, M. G., & Kuenzi, M. (2017). The impact of organizational climate and culture on employee turnover. Pulakos, J. Passmore, & C. Semedo (Eds.), The Wiley Blackwell Handbook of the Psychology of Recruitment, Selection and Employee Retention, 494-512.

Mathieu, C., Fabi, B., Lacoursière, R., & Raymond, L. (2016). The role of supervisory behavior, job satisfaction and organizational commitment on employee turnover. Journal of Management & Organization, 22(1), 113-129.

Nica, E. (2016). Employee voluntary turnover as a negative indicator of organizational effectiveness. Psychosociological Issues in Human Resource Management, 4(2), 220-226.

Prieto, A. B. T., Shin, H., Lee, Y., & Lee, C. W. (2020). Relationship among csr initiatives and financial and non-financial corporate performance in the Ecuadorian banking environment. Sustainability, 12(4), 1621.

Sathyanarayan, D. K., & Lavanya, D. B. L. (2018). Effect of organizational commitment, motivation, attitude towards work on job satisfaction, job performance and turnover intention‖-vuca perspective. Journal of Management, 5(4).

Trumpp, C., Endrikat, J., Zopf, C., & Guenther, E. (2015). Definition, conceptualization, and measurement of corporate environmental performance: A critical examination of a multidimensional construct. Journal of Business Ethics, 126(2), 185-204.

Yao, T., Qiu, Q., & Wei, Y. (2019). Retaining hotel employees as internal customers: Effect of organizational commitment on attitudinal and behavioral loyalty of employees. International Journal of Hospitality Management, 76, 1-8.

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