Page 327 - CA Final PARAM Digital Book.

QNO Attrition Rate Old Course-- (M13E, M16M, N16R, PM17, N17R, N17M,
619.000 TITANIUM CNO – OA.120 N18M, M20M)
The Managing Director of Beta Ltd is concerned about high employee attrition rate in his company. As
the internal auditor of the company he requests you to analyse the causes for the same. What factors
would you consider in such analysis?
OR
You have been appointed as an internal auditor of a company RSM Ltd. The Managing Director Rakesh is
worried about employee attrition in large number. Rakesh requests you to analyse the causes for high
employee attrition rate in his company. What factors would you consider in such analysis?
Answer ➢ The factors responsible for high employee attrition rate are as under:

(Trainings & Work Culture)
Does the organization provide facilities for staff training so that employees and workers
keep themselves abreast of current techniques and practices? (Outdated work culture,
Using Type Writer)

(Timings)
Job Stress & work life imbalance (12 hours of work&3 hours of travel, 6 hours of sleep, 2
hours of routine work, 1 hour for family)

(Seniors)
Whether the organization has properly qualified and experienced personnel for the
various levels of works? (Inexperienced seniors & HRs)
Unbearable behaviour of Senior Staff (Shouting & Abusing)

(Colleagues)
Is the number of people employed at various work centre’s excessive or inadequate?
(Excess Staffing or Understaffing leading to strain on few)

(Salary & Schemes)
Low monetary benefits (Salary 30-40% lower than market)
Lack of labour welfare schemes (No Development & Encouragement)

(Safety)
Safety factors (Office is at remote location, prone to thefts)

Author’s Note
Answer has been rearranged to create a flow,“Headings in Comics font “are included by author
for helping the students to understand and remember the answer

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