Description

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The Fast moving consumer goods (FMCG) market in India has undergone major changes and growth since the opening up of the economy through the liberalization, privatization and the globalization of the investment regime in 1991.India became an attractive avenue for foreign investment and several large multinational companies entered the market for FMCG merchandises. High employee turnover rate has increasingly been an issue of interest to both practitioners and academicians, not just only in developed countries but also in the developing countries. From the perspective of human resource management, high turnover rate is a serious issue due to several reasons. First, high turnover rate has financial consequences, when employees leave, recruiting, selecting, and training of new employees are necessary. Replacing a full-time, private-sector employee may likely to cost 25% of his or her total annual compensation. Second, employee turnover may disrupt company's productivity and thus performance, especially when it involves critical positions in organizations. High turnover also fosters a sense of discontinuity in theworkplace hence, unsettling managers and employees. Companies that are not able to reduce their employee turnover figure will likely lose their competitiveness in the long run. Due to these detrimental consequences, it is therefore crucial for organizations to better understand the factors contributing to employee turnover in organizations."Stress is nothing more than a socially acceptable form of mental illness," was once observed by Richard Carlson. This trend distinctly brings to light the understated appalling truth flowing as an undercurrent all through the economic circuits.