A diagnostic study of employee attrition in an Indian automotive company

Abstract

Employee commitment, productivity and retention issues are emerging as the most critical human resource management challenges of the immediate future driven by employee loyalty concerns, corporate restructuring efforts and tight competition for key talent. This paper is centred on the critical examinations of the demographic profiles of past employees, who have exited from a major automotive company during the last five years. A construct has been developed and checked for face validity, content validity and reliability and has been administered in a sample of 629 past employees. This study shows that in the future such organisations will be successful, if it can adapt their organisational behaviour and human resource department systems to the realities of the contemporary work environment. This includes playing an active role in assisting and advising the employee on career development decision, ensuring education and training; providing for adequate time to pursue career development activities; encouraging cross-functional training/assignments; engaging in innovative work practices and providing meaningful feedbacks for performance improvements.

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