A Qualitative Approach to Faculty Attrition Cost in Technical Institution
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Abstract
In order to generate the most effective human resource for national development, quality education has become crucial. The attainment of this objective is entirely dependent on faculties who are the source for dissemination of effective knowledge and right skills. In this era of imbalance between faculty supply and demand, technical institutions are facing the problem of faculty attrition cost. Considering this fact, the analysis of these costs has become imperative for all the technical institutions. The current study attempts to understand the relationship between cost incurred by the institutions and faculty attrition. Exploratory Factor Analysis (EFA) was undertaken, followed by categorical regression. EFA was applied to develop the measurement tool for identifying factors of costs and brought forth three costs – direct, indirect and opportunity costs. To assess these costs of faculty attrition, categorical regression was applied with factors of direct, indirect and opportunity cost as dependent variables and four categories of attrition i.e. attrition less than 5%, 5%-less than 15%, 15%- less than 25%, and greater than 25% as independent variables. Direct cost was comprised of Recruitment Costs, Application Processing Cost, Interview Process Costs, Hiring Costs, Orientation and Training Costs, Professional Development and Ongoing Support and Separation Costs, Indirect costs was explained through Productivity Costs and Cost of Morale and the components of Opportunity costs were Loss of Business, Loss of Students, Loss of Faculty/Adjuncts, Loss of Reputation. Further, through CATREG it was observed that higher the attrition, higher the direct, indirect and opportunity costs. This research can be an effective input to many technical institutions to reconsider their approach towards their faculties and seek cost effectiveness by reducing faculty attrition and its negative impact on institutions growth.
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