Usage of Root Cause and Pareto Analysis to Identify the Causes of Attrition in a Non Banking Financial Organization

Abstract

The paper attempts to identify and diagnose the factors causing employee attrition using Root cause and Pareto analysis in one of Indias leading Non Banking Financial Company. The primary data was collected through the tele-calling method. The reasons for leaving the organization had to be drilled down subsequently from the conversation. On the ending note of the dialog with employees, their suggestions for improvement in the organization were also recorded. The exit interview files of employees who left the organization during the year 2017-2018 were used for secondary data analysis. The entire study population comprised of 300 employees who were customers manager and operations manager. Primary data was analyzed using Root Cause Analysis technique for identifying the causes of employee attrition. The Secondary data was analyzed using the statistical tools like Percentage analysis, Correlation analysis and Regression analysis. Suggestions were presented to the organization for improving the retention rate.