International Journal of Commerce and Management Research

Attrition refers to the trends of the employees leaving the company. High turnover may be destructive to a company's efficiency if expert employees are frequently going and the employee’s population contains a high proportion of novice workers. “HDFC Bank's attrition rate of around 20 per cent is making its top management anxious,” Aditya Puri, Managing Director and Chief Executive at the country's second largest private sector lender, has said. “The staff attrition rate is something that is worrying us as well and it ranges up to around 20 per cent,” Puri told the shareholders at its annual general meeting over the weekend. Experts said that employee attrition would be in double digit specifically in banking, finance and insurance services near about 23%. According to Deloitte talent 2020, a survey form all sectors predicted that 34% of these workers expect to leave within a year, and for Insurance this number reaches an alarming 60%. With this alarming situation the study tried to identify the major reasons responsible for employee attrition in Indian insurance industry. Through structured questionnaire a sample of 400 employees (200 from public and 200 from private insurance companies) for respondents have taken. For significant inferences, factor analysis statistical tool has been used. With identified important factors responsible and suggestion for employee’s attrition for both public and private industry study concluded.