A Comparative Study on Push vs. Pull Process using Employee Turnover of Maruti Suzuki and Ford

1. Comparative Study
on
Push vs. Pull Process
Submitted By: Bhanu Arora

2. Employee Turnover
• Employee turnover refers to the number or percentage of
workers who leave an organization and are replaced by new
employees.
• Measuring employee turnover can be helpful to employers
that want to examine reasons for turnover or estimate the
cost-to-hire for budget purposes.
• Blanket references to turnover can be confusing; therefore,
specific definitions and calculations for employee turnover
may be useful to human resources practitioners.

3. • This statistic shows the share of average share of staff
turnover among Indian companies, by industries in the fiscal
year 2018.

5. About Maruti Suzuki
• Maruti Suzuki India Limited,
formerly known as
Maruti Udyog Limited, is an
automobile manufacturer in India.
• It is a 56.21% owned subsidiary of the Japanese car and motorcycle
manufacturer Suzuki Motor Corporation. As of July 2018, it had a
market share of 53% of the Indian passenger car market.
• Maruti Suzuki manufactures and sells popular cars such as
the Ciaz, Ertiga, Wagon R, Alto K10, Swift, Celerio, Swift
Dzire, Baleno and Baleno RS, Omni, Alto 800, Eeco, Ignis, S-Cross.
• The company is headquartered at New Delhi. In May 2015, the
company produced its fifteen millionth vehicle in India, a Swift Dzire.

6. Employee Turnover of Maruti
• Thanks to strong demand for its new products, Maruti Suzuki’s
workforce has been growing steadily over the past few years. During
2016-15, the total number of employees at India’s largest passenger
car company stood at 25,161.
• Between 2013-14 and 2015-16, the company increased hiring of
contract workers by 61.5% from 6,578 workers to 10,626 workers.
During the same period, MSIL increased its permanent employee
strength by 5.67% from 12,547 to 13,259.
• Currently the total strength of maruti suzuki is 40,000

7. Reasons of Employee Turnover at
Maruti Suzuki
• Maruti plans to induct younger professionals into to the senior
management cadre and devise salaries linked to performance even
as it hikes entry-level pay, and throws in novel incentives to hold on
to its executives on the fast track.
• Maruti has increased performance-linked pay from junior levels to
the top management by between 10% and 25%.
• "We have linked our variable pay to the financial performance of the
company with a greater focus on cash variables as the liability is
lower,"

8. Strategies used by Maruti Suzuki
for Employee Turnover
• Pay structure
• Work load
• Recreation facility
• Accommodation facility
• Transport facility
• Rewards & Recognition
• Holiday packages

9. About Ford
• Ford India Private Limited is a
wholly owned subsidiary of the
Ford Motor Company in India.
• Ford India Private Limited began production in 1926 as a subsidiary
of the Ford Motor Company of Canada, but was shut down in 1954
as the company was in loss.
• Ford re-entered the market in October 1995 as Mahindra Ford India
Limited (MFIL), a 50-50 joint venture with Mahindra & Mahindra
Limited.
• Ford increased its interest to 72% in March 1998 and renamed the
company Ford India Private Limited.

10. Employee Turnover of Ford
India
• Between 2013-14 and 2015-16, the company increased hiring
of contract workers from 1,100 workers to 5,000 workers.
• During the same period, Ford India increased its permanent
employee strength from 4,000 to 5,000.
• Currently the total strength of Ford India is 10,000.

11. Reasons of Employee Turnover at
Ford
In a series of focus groups across all regions, employees were
attracted to Ford:
• Ford’s history, reputation and brand value
• The development and career opportunities available
• The range of both formal and informal training opportunities
• The importance of diversity
• The people, the family culture and Ford values

12. Strategies used by Ford for
employee turnover

13. Push Vs. Pull Factors
• There are many reasons that employees leave an organization,
and it is important to understand, track, and analyze those
reasons.
• In order to retain and engage employees, your organization
should make an effort to understand if employees are being
pushed or pulled out of your organization.

14. Push Factor
• Push factors are aspects that you, as an organization, have
control over.
• These factors include poor leadership, lack of career
development and unclear career paths, lack of recognition,
non-competitive pay and benefits, and/or poor
communication to name a few.
• These are the factors one should be focusing on improving.

15. Pull Factor
• Pull factors are factors from the outside of your organization.
• These factors include another company’s total rewards
package, an employee’s desire to change careers, family
obligations, and office location to name a few.

17. Conclusion
• Both of the companies are using pull factor as there employee
factor. Thus, providing Employee Satisfaction.
• While Ford India provides employee welfare, maruti suzuki
has a completely different thought process of providing early
promotion and opportunities to fresher's.

18. THANK YOU