Trigger not calling for huge rows insert - sql

Question

I have one table which consists of one trigger which will be called if any insert or update operation performed on that table.
This trigger will insert a new row in other physical table.
First I am taking the entire data to be inserted into a temporary table and then I am inserting data into my physical table(which has trigger).
After performing insert operation all the records in the temporary table are getting inserted into physical table but the trigger is executing for only first record, for rest of the records it is not executing.
Can anyone please help me with this issue.
NOTE : With cursor it is working fine but for performance issue I don't want to use cursor.
ALTER TRIGGER [dbo].[MY_TRG]
ON [dbo].[T_EMP_DETAILS]
FOR INSERT , UPDATE
AS
BEGIN
IF UPDATE(S_EMPLOYEE_ID)OR UPDATE(S_GRADE_ID)OR UPDATE(D_EFFECTIVE_DATE) OR UPDATE(S_EMPLOYEE_STATUS)
BEGIN
DECLARE #EmpId varchar(6)
DECLARE #HeaderId Int
DECLARE #FYStartYear varchar(4)
DECLARE #EffDate Smalldatetime
DECLARE #UpdatedBy varchar(10)
DECLARE #ActionType varchar(1)
DECLARE #RowCount Int
DECLARE #EmpRowCount Int
DECLARE #AuditRowsCount Int
DECLARE #EMP_STATUS VARCHAR(1)
DECLARE #D_FIN_START_YEAR DATETIME
DECLARE #Food_Count int
SELECT #FYStartYear = CAST(YEAR(D_CURRENT_FY_ST_DATE)AS VARCHAR) FROM dbo.APPLICATION WHERE B_IS_CURRENT_FY = 1
SELECT #UpdatedBy = 'SHARDUL'
select #EmpId = S_EMPLOYEE_ID from inserted
select #HeaderId = N_HEADER_TXN_ID from inserted
select #EffDate = D_EFFECTIVE_DATE from inserted
select #FLEXI_AMT = N_FLEX_BASKET_AMT from inserted
select #EMP_STATUS = S_EMPLOYEE_STATUS from inserted
select #D_FIN_START_YEAR=D_FIN_START_DATE from inserted
SELECT #RowCount = count(*) from T_EMP_DETAILS
WHERE S_EMPLOYEE_ID = #EmpId and
SUBSTRING(CAST(D_EFFECTIVE_DATE AS VARCHAR),1,11) = SUBSTRING(CAST(#EffDate AS VARCHAR),1,11)
BEGIN
exec INSERT_DEFAULT_VALUES #EmpId,#HeaderId,#UpdatedBy
END

Answer 1

That's one of many reasons Bulk is so fast :). Read Bulk Insert syntax and you'll see FIRE_TRIGGERS parameter. Use it.

Answer 2

As I wrote in my comment - you are using inserted in improper way. As written now it will work only for 1 row.
The second one is a WEIRD number of variables, and only few are used, why?
Third - you are using SP in the end of batch, you need to post it's code, I bet there is some insert in it, maybe you could avoid using this SP and insert directly in some table from inserted.