Retention strategies
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Retention strategies Retention strategies Presentation Transcript

  • Human Resource retentionStrategy and A case study Pranav Kumar Ojha, Mba 3rd sem, MONIRBA
  • Introduction‘Employee retention is a process in which the employeesare encouraged to remain with the organization for themaximum period of time or until the completion of theproject. Employee retention is beneficial for theorganization as well as the employee’.
  • RetentionFundamental changes are taking place in the work forceand the workplace that promise to radically alter the waycompanies relate to their employees Hiring and retaining good employees have become thechief concerns of nearly every company in every industry.Retention is all the more important because of the severecompetition among employers for qualified workers.
  • The fierce competition for qualified workers results from a number of workplace trends, including- A robust economy Shift in how people view their careers Changes in the unspoken "contract“ between employer and employee”. A new generation of workers Changes in social mores Life balance
  • Retention tools for Changing times:1. Offer Compensation – Attractive And Competitive.Fair compensation alone does not guarantee employee loyalty, but offeringbelow-market salaries makes it much more likely that employees will look forgreener pastures. Go for Employee Engagement Surveys / ESS, to find outwhat perks, benefits and forms of compensation other than money will helpkeep them motivated.2. Benefits Need To Be Quantified And Qualitative.Although benefits are not a key reason why employees stick with a company,the benefits you offer cant be markedly worse than those offered by yourcompetitors and like minded industries. Eg Medical insurances, CorporateCredit cards and Discount Coupons
  • Retention tools for Changing times:3. Train your front-line, managers and administrators.It cant be said repeatedly that people stay or leave because of their bossesand not the companies. Improve managers leadership, communication andinterpersonal skills through coaching, training and feedback . Harp upon thecompetencies and substantially invest in human capital irrespective of ROI.4. Roles and responsibilities needs to be dovetailed.Make sure your employees know what is expected of them every day, everymonth and every year, what types of decisions they are allowed to make ontheir own, and to whom they are supposed to report. Provide clear vision, andconsistent communication, teamwork and respect for human capital efforts.
  • Retention tools for Changing times:5. Enhancement, Advancement And Progression Opportunities.To foster employee loyalty, implement a career ladder and make sureemployees know what they must do to earn and go in for progression. A clearprofessional development plan gives employees an incentive to stick around.Do away with you Performance Management System if it has turned to NOVA(Non Value Added Activity) and go in for instant performance rewards. Thinkout of the box!6. Offer retention bonus.Employee longevity typically is rewarded with an annual raise and mandatoryvacation time after three, five or ten years. But why not offer other seniority-based rewards such as a paid membership in the employees professionalassociation after one year, a paid membership to a local etc.
  • Retention tools for Changing times:7. Retention strategies implementation needs to have a process owner.Measure your turnover rate and identify a process owner responsible forcontaining it. If customer returns, in-house rejections and non-confirmingproducts can have a process owner as a countermeasure why not a processowner for implementation of retention strategies?8. Go in for Employee Engagement Practices. You wont know whats wrong... or whats right … unless you practice. Tocheck the pulse of your organization, conduct employee satisfaction surveys ona regular basis. Go in for its analysis and implementation. One idea: Askemployees what they want more of and what they want less of – Capture Voiceof Employees
  • Retention tools for Changing times:9. Teamwork And Cross Functional Teams.It takes effort to build an effective team, but the result is greater productivity,better use of resources, improved customer service and increased morale. Givegreat emphasis on cross functional approach as it endorses acceptance andaccountability,10. Fun Is Must.Celebrate successes and recognize when milestones are reached. Buffetlunches, birthday parties, employee picnics and creative contests will helpremind people why an organization is a great place to work. Include funelements at work like Parties, bashes, outings, picnics etc
  • Retention tools for Changing times:11.Transparency in communication. Employees are more loyal to a company when they believe management orthose at the helm of affairs keep them informed about key issues. That meansthat you regularly keep our people up to date with important events affectingthe company. If November was good, let them know, and while youre at it, tellthem what you expect to happen in December.12. Encourage higher learning.Create opportunities for your key performers and technologists to grow andlearn. Encourage every employee to learn at least one new thing every week,and youll create a work force that is excited, motivated and committed.
  • Retention tools for Changing times:13. Develop an effective induction program.Implement a formal orientation program thats at least a week long andincludes a thorough overview of every area of your department and anintroduction to other departments14. Value your employees.Recognize outstanding achievements promptly and publicly, but alsotake time to commend on the many small contributions your staffmakes every day to the organizations vision, mission and growth. DONOT FORGET — THESE ARE THE PEOPLE WHO MAKE YOULOOK GOOD!
  • Conclusion•As they say, happiness can be contagious. So make sure the work place is ahappy one, which every employee would love to spend time. Human resourcesdepartment along with senior management must take steps to make sure ofthis.•Effective human resource management must be practiced at both strategicand day-to-day levels. HR management practices must reflect company policyas to how it will manage and relate to its employees.• The HR strategy should evolve from a transactional support role to partneringin the organizations business strategy. HR must take steps to be aware ofemployee problems and try to solve them, creatively.
  • CASE STUDY Failure of employee retention strategies of Baytech Plastics
  • General introduction oforganization Baytech engineers, manufactures, finishes and assembles high-quality, custom-molded plastic components for domestic and international markets. Located in Midland, Ontario, Baytech operates in the midst of the largest plastic producing area of North America
  • Customers of the Baytech PlasticsLtd. Baytech’s customers include manufacturers of household appliances, telecommunications equipment, electrical and electronic equipment, business machines and automotive components, and many others. Baytech ships throughout North America and the world.
  • Sucess story of Bytech Plastics Baytech Plastics has experienced considerable success since it was founded in 1953, and has responded well to changing market conditions. About four years ago, Baytech went through a major crisis when it lost about 30% of their business due to a customer bankruptcy. In the last several years however, sales have doubled, and they have completely recovered from the loss.
  • work force in Baytech plastics Baytech employs 260 people and manufactures from two facilities in Midland, Ontario. Baytech’s hourly employees are unionized with the Union of Needletrades, Industrial and Textile Employees (UNITE). Baytech employs a high ratio of engineering support staff relative to its competition. In fact, Baytech’s emphasis on centralization aspect of decision making.
  • work force in Baytech plastics On the salary side, Baytech’s sales group consists of technical-sales people, such as mechanical engineering technologists from college. Their engineering group consists of process, tool and program technologists. General office staff, human resources, and supervisory staff complete the salary group. The hourly group consists of moulders and technicians, set up people, the quality group, maintenance and tool room technicians.
  • Work Force In Baytech Plastics Taking advantage of seasonal contract opportunities, Baytech has also, for the past two years, added 50 employees who work between July and
  • Decision making in Baytech Plastics Policies are determined by top level managers, which causes dissatisfaction among employees although it has given profitable results to the organization for a long time.
  • Employee Retention is crucial. For Baytech owner/president Anton Mudde, the rationale for their particular approach is obvious-It just makes sense. I don’t think we could live with turnover. If you have high turnover, you can’t have consistency of product quality and customer service. And in this day and age, that’s a must. Part of our success has been picking up programs where people/companies haven’t done that. They haven’t been successful in maintaining customer service, delivery and quality.
  • Turnover is a major issue Baytech’s turnover runs at a rate of around 35 to 40 percent, and is a serious problem for the company. Management attributes this turnover performance to many factors in which the centralization and least opportunity to employees in decision making are main reasons.
  • Programs and InitiativesAffecting Employee Retention Baytech’s HR group monitors compensation levels in the area, and in the plastics sector specifically through CPIA surveys, to benchmark and offer competitive and better than average wages. The company also has a pension plan, health and dental benefits. Baytech has also introduced an innovative type of pay-for-performance bonus system it calls “rewards for success”.
  • Corporate values Baytech’s commitment to communications is at the centre of its approach to employee retention. For Anton Mudde, there are three words that sum up that approach: “fairness, communication and recognition”. Baytech may not have a formalized employee retention strategy, but its human resource practices are always guided by these principles. 
  • Questions-1. What is/are the reason/reasons of high employee turnover of this organization?2. What are the suggestions you would give to Mr. Baytech owner/president Anton Mudde to bring equilibrium between centralization and decentralization in the organization?3. Will the participative decision making not be able to bring better principles in the organization?4. What did you learn from this case of Baytech plastics Ltd. ?
  • AnswersQ 1-What is the reason of high employee turnover of this organization?Answer- Non-Participative decision making is the main reason of high employee turn-over.
  • AnswersQ 2-What are the suggestions you would give to Mr. Baytech owner/president Anton Mudde to bring equilibrium between centralization and decentralization in the organization?Answer- Although the centralization in this organization had been giving positive results for a long time, even than the degree of centralization in the organization should be increased, otherwise the organization my face difficulty in the future. And the organization may face a huge loss in the future.
  • AnswersQ 3- Will the participative decision making not be able to bring better principles in the organization?Answer- It can bring better rules, values as well as principles in organization. But the level of participation should be as for the need of the organization. It will also be able in enhancing employee-employer relation in the organization.
  • AnswersQ 4- What did you learn from this case of Baytech plastics Ltd. ?Answer- I learn that an organization may so many employee welfare services, but in absence of participative decision making. Employees feel dishearten and they do not accept organization as their own.
  • References Books :  Human Resource Management by K Aswathappa.  Human Resource Planning- Deepak Kumar Bhattacharya.  Designing and managing Human Resource System- Pareek and Rao.  Human Resource Management –Bardwell and Holden.  Handbook of Human Resource administration- Joseph J. Famularo.  Retention CPSC Final Report June28 - 7 case studies2 oct 7 04 Web :  Wikipedia  Rediff.com  www.google.co.in  ec.europa.eu
  • THANK YOU Sir AndAll the Listeners
  • Any Query
  •  1-8- pranav 9- 12 Varsha 13-20 pranav 21-31 Varsha