Why has employee turnover at Mahindra Group's IT services division doubled compared to the previous year?

Introduction

The doubling of employee turnover at Mahindra Group's IT services division is a critical issue that demands immediate attention. This analysis will systematically explore potential root causes, validate hypotheses, and propose targeted solutions to address this concerning trend.

To tackle this complex problem, I'll follow a structured approach:

1. Clarify key details and context
2. Rule out basic external factors
3. Understand the product and user journey
4. Break down relevant metrics
5. Gather and prioritize data
6. Form data-driven hypotheses
7. Conduct root cause analysis
8. Propose validation methods and next steps
9. Present a decision framework
10. Outline a comprehensive resolution plan

Step 1

Clarifying Questions (3 minutes)

• Looking at the timing, I'm thinking there might be recent organizational changes. Have there been any significant restructuring or leadership changes in the past year?

Why it matters: Organizational shifts can greatly impact employee satisfaction and retention. Expected answer: Yes, there have been some leadership changes. Impact on approach: If confirmed, we'd need to investigate the nature of these changes and their impact on company culture.

• Considering the IT services industry, I'm wondering about market conditions. Has there been an increase in demand for IT professionals or new competitors entering the market?

Why it matters: External market forces could be pulling employees away. Expected answer: The market has been competitive, with new players emerging. Impact on approach: If true, we'd need to assess our compensation and benefits package compared to industry standards.

• Thinking about the work environment, has there been any shift in work policies, such as remote work options or flexible hours?

Why it matters: Changes in work arrangements can significantly affect employee satisfaction. Expected answer: We've recently tightened our remote work policy. Impact on approach: If confirmed, we'd need to evaluate the impact of this policy change on employee satisfaction and productivity.

• Considering performance metrics, has there been any change in how employee performance is measured or rewarded in the past year?

Why it matters: Changes in performance evaluation can directly impact employee motivation and retention. Expected answer: We've implemented a new performance management system. Impact on approach: If true, we'd need to assess the effectiveness and employee perception of this new system.