Attrition Analysis in Pharmaceutical Industry of Gujarat

Abstract

The Indian Pharmaceutical Industry is under a transition phase since the opening up of the country's economy. After IT and BPO industry, the pharmaceutical industry is witnessing the highest level of attrition, as it is growing exponentially. Where skills are relatively scarce and where recruitment is costly or where it takes several weeks to fill a vacancy, attrition is likely to be problematic from a management point of view. This is especially true of situations in which you are losing staff to direct competitors or where customers have developed relationships with individual employees. Gujarat is one of the leading pharmaceutical manufacturing hubs of India and thus it was felt to have some sort of introspection of its manpower. Therefore this paper attempts to study the attrition scenario in the state and identify the variables that affect it. The literature shows that salary and compensation were found to be the most important organizational factors affecting attrition in both the size of companies, higher pay package and better job profile were the most important personal factors affecting attrition in both group companies.