Company: Mahindra & Mahindra Ltd. (India)
Focus Area: HR Retention Strategy – Shopfloor & Corporate Employees
Time Frame: 2015–2022
🌟 Background
By 2014, Mahindra was facing a steady 15% attrition rate in both their manufacturing plants and corporate HR. The churn was higher among young engineers, contract laborers, and mid-level managers, especially in their Automotive and Farm Equipment Sectors.
- Exit interviews revealed key causes:
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Lack of career progression
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Absence of recognition and mentoring
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Monotonous roles on the shop floor
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Growing competition from startups and global OEMs offering better work culture
🔍 The Challenge
Mahindra wanted to reduce attrition, retain key talent, and future-proof the workforce. The top leadership, including Anand Mahindra, emphasized the need to “make Mahindra a place people don’t want to leave.”
They launched a project called:
Project SPARK
🔧 Key Initiatives under Project SPARK
| Initiative | Description | Outcome |
|---|---|---|
| 🔄 Role Rotation | Introduced job rotation every 12–18 months, including opportunities to move from plant to R&D or corporate strategy | Increased motivation; 30% reduction in attrition at plants |
| 📱 Digital Learning Capsules | Mobile-first learning app with micro-learning, gamification, and progress badges | Higher engagement from Gen Z employees |
| 🎯 MyCareer@Mahindra | AI-based career progression tool showing internal mobility paths | Boosted visibility of internal growth |
| 🏆 Recognition Wallets | Peer-to-peer appreciation through “Kudos Wallet” – points redeemable for perks | Encouraged team spirit and decreased emotional burnout |
| 👨🏫 Mentorship Circles | Mid-level leaders mentored 4–5 junior employees monthly; created tribal knowledge transfer | Cultivated belongingness and reduced resignation intent |
| 🚀 Rise Challenge (Internal Gig Projects) | Employees could apply for short-term cross-functional projects outside their job roles | Created new learning curves, 45% cross-functional collaboration rise |
📈 Impact Metrics (2015–2022)
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Attrition dropped from 15% to 6.7%
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Retention of high-potential employees improved by 68%
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Improved shopfloor morale (based on internal pulse surveys)
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Mahindra ranked among Top 10 Dream Employers in automotive sector by Naukri & LinkedIn
🤩 WOW Factor
During a 2020 lockdown, Mahindra repurposed its staff to manufacture ventilators and masks, involving employees in national service.
This purpose-driven engagement led to zero resignations from the core plant team during the period.
An HR manager later said:
“The moment we stopped asking ‘Why are they leaving?’ and started asking ‘What makes them stay?’ – everything changed.”
🧩 Takeaway for Participants
Retention isn’t about perks. It’s about purpose, progression, and people feeling valued.
You can close this case study during your session with a reflection activity:
🚦"What SPARKs retention in your organization?"
Ask teams to list 3 replicable ideas from Mahindra's model that they can adopt.
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