Project Report in Employees Turnover in IT Sector

INTRODUCTION: All businesses, large and small, have some way of keeping track of their finances. Businesses are constantly looking for more ways to keep expenses low. One factor that is often overlooked, however, is the cost of employee turnover. High employee turnover can cost a company more than they might realize in the long run.
This report explains some causes of high employee turnover, who it affects the most, and ways companies can decrease employee turnover in order to cut hidden costs.

Employee turnover occurs when employees voluntarily leave their jobs and must be replaced. Turnover is expressed as an annual percentage of the total workforce. For example, 25 percent employee turnover would mean that one-quarter of a company’s workforce at the beginning of the year has left by the end of the year. Turnover should not to be confused with layoffs, which involve the termination of employees at the employer’s discretion in response to business conditions such as reduced sales or a merger with another company.

The severity of turnover varies widely by type of business and the economic health of the region where companies are located. Innovative high-tech companies and the most successful manufacturers frequently experience low turnover rates while fast-food restaurant managers expect turnover to be as high as 50 to 75 percent. As another example, coal mining companies in sparsely populated regions experience lower rates of turnover because there are few other job opportunities.


Research objectives

a) To identify the rate of turnover of “employees”

b) To identify the causes of employees turnover

c) To suggest measures to reduce the rate of turnover

d) To identify the employee turnover at various IT companies with special focus on Wipro and Infosys

Research design

The nature of this report is Exploratory

Data sources

The data is collected from secondary sources like books, journals, magazines, websites and newspapers.


  • William H. Price & Richard Kiekbusch & John Theis in his study on causes of employees turnover have talked about the causes and the implementation. Further he highlighted that providing a challenging job, and offering realistic promotion opportunities. Other variables that have less impact are schedule input, insurance and family income. Good communication and job satisfaction.
  • Beri G.C., Human Resource Tata McGraw New Delhi, in his study on the cause of factor
    influencing turnover and retention of staff and retention problems for professional have talked about the Working hours, workload and work schedules which are also common concerns to both groups. In addition, career development, promotion and 4appreciation of contribution were important retention factors, while a supportive professional environment, reduction in workload and working hours and more flexible work patterns were important to consultants.
  • Cari McLean, Labour Management in Agriculture, in her study knowing the reason why workers leave or edge in improving working condition and have talked about dissatisfaction with work or working condition, select and train new personnel, conducting workers satisfaction survey, find specific problem area to watch and improve
  • Cosenza, Robert his study on the causes of the cost of employees turnover due
    solely to unfairness in the workplace and have talked about the effect of unfairness
    upon an employee’s decision to leave their employer and the financial to employer
    due to voluntary turnover. Further he highlighted Recruiting and retaining the best and
    the brightest Remove the barriers and biases which create unfair workplace
  • Moore, in her study on the cause of an informative report regarding employees turnover and retention on the causes of high employee turnover which affect the most, and the companies can decrease employees turnover in order to cut the hidden cost. Further she highlighted the poor management, low pay, boring repetitive work, with no opportunity for advancement, high turnover of employees is a symptom of a mismanaged company.


Employee turnover is technically and mathematically defined as “the ratio of the number of workers that had to be replaced in a given time period to the average number of workers.” Put simply, it is an instance when an employee leaves their position at their workplace and needs to be replaced.

Employee turnover is a ratio comparison of the number of employees a company must replace in a given time period to the average number of total employees. A huge concern to most companies, employee turnover is a costly expense especially in lower paying job roles, for which the employee turnover rate is highest. Many factors play a role in the employee turnover rate of any company, and these can stem from both the employer and the employees. Wages, company benefits, employee attendance, and job performance are all factors that play a significant role in employee turnover.

In a human resources context, turnover or labor turnover is the rate at which an employer gains and losses employees. Simple ways to describe it are “how long employees tend to stay” or “the rate of traffic through the revolving door.” Turnover is measured for individual companies and for their industry as a whole. If an employer is said to have a high turnover relative to its competitors, it means that employees of that company have a shorter average tenure than those of other companies in the same industry. High turnover can be harmful to a company’s productivity if skilled workers are often leaving and the worker population contains a high percentage of novice workers



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