Attrition and Retention Practices in Multi National Companies (MNCs) in India

There are many different ways for a company to lose employees, most of which are typically taken into account to ensure that the organization is able to operate efficiently. Attrition refers to the loss of employees due to reasons other than firing and other employer-initiated events. This means that an employer has no direct control over how many personnel are lost to employee attrition. Retirement is one major cause of employee attrition, and since people tend to retire around a specific age this is a factor that can be accounted and planned for. Other causes of employee attrition, such as personnel who quit due to prolonged illness, dissatisfaction with the company, or other reasons, can be more difficult to estimate. There is no universal attrition management solution for every company. Each organization has to build its own motivation system based on compatibility between organizational and individual goals. Nevertheless, most of the approaches and solutions described above have been successfully implemented by a great number of companies operating in India. The general conclusion is that internal motivation factors in India appear to be more effective than the classical external ones. Such motivators as challenging work, family benefits, learning opportunities, the chance to go abroad, and career advancements were found to be much more significant than monetary compensation.