Employee engagement report1

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Employee engagement at Equitas

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Employee engagement report1

  1. 1. BIM TRICHY Page 1 CHAPTER –I
  2. 2. BIM TRICHY Page 2 1.1 INTRODUCTION Employee engagement is a level of commitment and interest the employees have towards the organization.Human resource executives still are finding ways to retain the employees.Engagement is all about encouraging and appreciating employees for the effort they put forward to improve the organization.It is always said that employee engagement forms an intrinsic liaison with customer loyalty and profitability.Organizations of today ‘s realize that a satisfied employee is not necessarily the most better employee in terms of loyalty and productivity.It is only an engaged employee who is intellectually and emotionally bound with the organization. Employee engagement has become the main focus of Human resources department in recent times and we could trace the origin of training and development,growth opportunities and CSR activities to be a part of the employee engagement activities.Recent reports also mentioned that a good boss or manager also have an impact on the employee engagement activities.Employee might not like to be committed or interested to work in an environment where there is no good relationship with the manager. Thus,employee engagement plays a vital role in all the organizations.In this project,the main variables that are contributed to the level of employee engagement are proved to have a greater impact on it and to find the ways to improve the employee engagement at equitas . If employees feel attached to an organization, then there would be less chance for them to leave the company.
  3. 3. BIM TRICHY Page 3 1.2 NEED FOR THE STUDY An organization’s ability to manage employee engagement is closely related to high performance levels and superior business.The following reasons led to the study of the employee engagement at the company.  Engaged employees will stay with the company even during the difficult times and contribute to bottom line business success.  They will perform better and be motivated always.  There is a significant link between the employee engagement and profitability.  The engaged employees form an emotional connection with the company which forms their attitudes towards the client or customers and overall improve the customer satisfaction at service levels.  Employee engagement creates an energetic environment and boosts the employees to work in an arduous situations.  It evolves trust worthiness among all  It will refrain employees from moving to another company(ie will reduce the turnover rate) Therefore, engagement is directly linked to the employee retention .It would be very appropriate for a company to concentrate more on engagement activities rather than thinking of other ways to retain the employees. Engagement activities are not only meant to cherish or encourage employees to work but also to improve the image of the company by increasing the profits.
  4. 4. BIM TRICHY Page 4 Employees are the greatest assets for the organizations and their contribution is the main reason behind the company‘s success. 1.3 OBJECTIVES OF THE STUDY Primary Objective:To find the impact of good boss,training and development and growth opportunities on employee engagement and prove that these three factors are very much greatly contributed to the levels of the employee engagement. Secondary Objective: To find out the ways to improve the employee engagement activities at Equitas. 1.4 RESEARCH DESIGN & METHODOLOGY: Sampling Mode: Random sampling Population Size: 200 Sample Size: 67 1.5DATA COLLECTION: Primary data collection: The data was collected by interacting with the ex employee through phone. Questions were framed based on the independent variable and those questions were asked to the employees in various regions. 1.6 SCOPE OF THE PROJECT: Physical Scope: It is done in Equitas Holdings Private Limited , Nandhanam andconsidering employees those who worked in the organization.
  5. 5. BIM TRICHY Page 5 Conceptual Scope: Study is based on the employee engagement practices at Equitas Holdings Private Limited. The information is collected from the ex-employees (Sales officer and branch Manager) based on  Growth Opportunities  Training and development at the company  Rewards and incentives  Relationship with the manager  Salaries 1.7 Challenges in Engagement:  Controlling Attrition: Despite providing with extra benefits and soaps Attrition rate is high in Corporate and IT sector.People are restless and changes job very suddenly.Sensing attrition in starting is very crucial and organisation are working toward that.  Driving High Performance: Aligning mindset toward high performance is not easy and organizations are still finding it difficult to drive high performance from employees.  Creating future leadership: Finding leaders and grooming them for future is another aspect where organisations are working so as to create new leaders that would drive them in future.  Attracting Womens toward high Powered Job: corporate and board rooms are still marked by absence of female in them.It is high time management satrt worrking toward having ambitious and high enery women in corporate nad boardrooms. 1.8 Factors for Employee Engagement:
  6. 6. BIM TRICHY Page 6  Motivation: Managers are needed to motivate their employees for work and make them feel proud about the organisation, a motivated employee always works harder than other has and is highly engaged. If a person is motivated about the work s/he do/does, they are certainly engaged in will put their maximum effort.  Job Satisfaction: An employee will work for the maximum only when there is right matching between their job and skill they posses. If a person is put on a job, which s/he does not know how to do /he will certainly get bore of that work very easily and it will harm organisation. Managers should keep a tab on the employees regarding this and keep taking feedback whether their employees are satisfied with the kind of job they are doing or not.  Commitment: Creating a workforce of committed employee is one thing, which is always on the mind of employee, and it is not easy. However, a committed employee would always work for the betterment of organisation. They would always stand with organisation and will always put on a good image of the organisation.  Loyalty: Every organisation needs loyal employees who would stand with the organisation in time of crisis.  Trust: Trust is very important between employer and employees. Employers should have trust on their employee to take them as party in important decisions and employees should trust their employer in matters regarding administrative and functional decisions of organisation.  Good Boss: A good and fair boss is always r equired to take organisation to pinnacle of success. If there is a democratic and hard working boss, he/she would easily motivate and lead employees by his/her work standards. However if there is undemocratic and Impassionate manager he/she would not be able to take employees as a unit toward the common goal.
  7. 7. BIM TRICHY Page 7  Values: Right and just values of the organisation motivate employees to give their best. If employees would feel cheated and organisation did not have right values, employees would also not respect their organization and their work.  Training & development: Training and development became the important factor of employee engagement.If organizations provide intensive training to employees according to their job profile,it will provide an opportunity for employees to learn new things and aspects of the work.It will also improve their skill and knowledge regarding the work.It would help the employees to upgrade their knowledge with latest technology and help them to switch over to other job profiles confidently.  Growth Opportunities: Growth opportunities are directly linked to the employee retention. When employees view very good growth opportunities at the company, they will never change their mind to leave the company.
  8. 8. BIM TRICHY Page 8 CHAPTER -II
  9. 9. BIM TRICHY Page 9 2.1 Industry Profile: Microfinance: Microfinance refers to a variety of financial services that target low-income clients, particularly women. Since the clients of microfinance institutions (MFIs) have lower incomes and often have limited accessto other financial services, microfinance products tend to be for smaller monetary amounts than traditional financial services. These services include loans, savings, insurance, and remittances. These institutions commonly deliver these loans for various purposes such as income generation, repayment of old dues, microenterprise development etc. without any collateral. More broadly, microfinance refers to a movement that envisions a world in which low-income households have permanent access to a range of high quality and affordable financial services offered by a range of retail providers to finance income- producing activities, build assets, stabilize consumption, and protect against risks.Microfinance definitions can be somewhat misleading. Microfinance is not defined by the form but the intent of the lender. A loan provided by a market intermediary to a small borrower is not viewed as microfinance. However an NGO providing a similar loan to a low income borrower is considered as microfinance. It is assumed that microfinance is given with a laudable intention and non-exploitative connotation. Classification of the sector: Microfinance providers can be classified into three broad sectors: i. Formal ii. Semi-formal iii. Informal
  10. 10. BIM TRICHY Page 10 Formal Sector: The formal sector comprises of banks such as Small Industries Development Bank of India (SIDBI), National Bank for Agricultural and Rural Development (NABARD) and other regional rural banks (RRBs). These banks are primarily built to provide credit to poor and assisting them in agricultural and micro enterprise development process. They charge an interest of about 12-13.5% but including transaction costs(such as number of visits to banks, compulsory savings and costs incurred for payments to animators/staff/local leaders etc.) they come out to be as high as 21-24%. Semi-formal Sector: These constitute the majority of institutional microfinance providers in India and are referred to as Microfinance Institutions (MFI). They are registered under various legal acts and differ greatly in philosophy, size and capacity. They are primarily offshoots of NGOs spread all over India. They could be NBFCs, societies, trusts etc. Informal Sector: The informal sector, apart from friends and family, consists of moneylenders, landlords and traders. While estimates of their importance vary their significance is undeniable. Microfinance in India History Microfinance in India can be traced back to its origins in the 1970s when the Self Employed Women’s Association (―SEWA‖) of the state of Gujarat formed an urban cooperative bank, called the Shri Mahila SEWA Sahakari Bank, with the objective of providing banking services to poor women employed in the unorganised sector in Ahmedabad City, Gujarat. The government also realized the need for credit services to the ―unbanked people‖ who have no access to formal financial services but must
  11. 11. BIM TRICHY Page 11 rely on either family, or informal providers of finance, such as the village moneylender. Relying on the limited resources of village moneylenders exposes the poor to coercive lending practices, personal risks and high interest rates, which can be a much as 150%. Hence the government and the RBI came up developmental Banks like NABARD which could provide undivided attention towards this cause. In 1980s the microfinance sector developed around a concept of self-help groups (SHGs). SHGs were village based financial intermediaries usually composed of 10-20 women. The development of these groups provided for an innovative approach by NABARD to extend the outreach of financial institutions to these SHG. This gave birth to the SHG-Bank Linkage program (SBLP) in 1992 on pilot basis. Initially the pilot project started with a target of linking 500 SHGs with banks wherein the banks will provide access to the group members for their savings on regular basis while also providing credit to the group to meet its emerging credit needs of its members, in proportion to the savings of its members. The program caught the imagination of not only financial institutions but also governmental and nongovernmental agencies that joined hands with NABARD in this effort. Today this unique initiative inIndia has about 4000 partners and has blossomed into a decentralized yet most cost effective microfinance initiative in the world enabling about 97 million poor households’ access to sustainable financial services from the banking system.Under another form of group formed by the NBFCs called the Joint Liability Group (JLG) the individual loans are jointly and severally guaranteed by the group. The NBFCs providing this model started as a not for profit organization but later were unable to raise adequate resources for rapid growth of the activity, they converted themselves into for profit NBFCs. NABARD has been popularizing the scheme and detailed guidelines for financing of JLGs has been issued to all banks during 2009. During the year ended 31March 2011, 85766 JLGs were formed and an amount of USD 134.63million was
  12. 12. BIM TRICHY Page 12 disbursed as loan. Cumulatively, 141045 JLGs have been formed and USD 233.73 million has been disbursed as on31 March 2011. From humble beginnings, the microfinance sector has grown significantly over the years to become a multi-billion dollar industry, with bodies such as the Small Industries Development Bank of India and the National Bank for Agriculture and Rural Development devoting significant financial resources to microfinance. Today, the top five private sector MFIs reach more than 20 million clients in nearly every state in India and many Indian MFIs have been recognized as global leaders in the industry.
  13. 13. BIM TRICHY Page 13 COMPANY OVERVIEW: Equitas (formerly, UPDB Micro Finance Pvt Ltd) was set up on 22-June-2007 by Mr P N Vasudevan, Mr M Anandan, and Mr V P Nandakumar. Mr Vasudevan was previously Vice President in Cholamandalam Investment & Finance Co Ltd, Chennai handling their retail business division comprising of vehicle finance with operations. Equitas is a non-deposit-taking NBFC, registered with the Reserve Bank of India (RBI). Equitas is a microfinance institution (MFI), lending to women organised as joint- liability groups. The company had cumulative disbursements of USD 458 million as on December 31, 2011. It had 265 branches, with about 1.2 million borrowers and a portfolio outstanding (based on assets under management) of USD 142.3 million as on March 31, 2012. Equitas has diversified into two new asset classes of used commercial vehicles and housing finance. Under the structure, there is a holding company and three operating subsidiaries – one each for microfinance, vehicle finance and housing finance. Equitas acquired two NBFCs (SIFPL and V A P Finance Ltd) to run the micro and vehicle finance businesses and has obtained licence from National Housing Bank in January 2011 for housing finance business.Equitas’s assets and liabilities in its microfinance business stands transferred, under an SoA, to Singhvi Investment & Finance Pvt Ltd (SIFPL). The current microfinance entity will then become the nonoperating holding company. V A P Finance Ltd has been reconstituted as a private limited company and renamed Equitas Finance Pvt Ltd (EFPL). The housing finance business will be undertaken by Equitas Housing Finance Pvt Ltd (EHFPL). The holding company will hold the common capital and infuse capital into the subsidiaries on need basis. The current allocation of capital for the three segments is as follows: microfinance - Rs.1.8 billion (USD 36,740); used vehicle finance - Rs.0.60 billion (USD 12,244); and housing finance – Rs.0.3 billion (USD 6,122).SIFPL is a wholly owned subsidiary of
  14. 14. BIM TRICHY Page 14 Equitas. The holding company transferred the microfinance business to SIFPL, a newly acquired NBFC, with effect from April 1, 2011. The Madras High Court has recently approved of a scheme of arrangement (SoA) between Equitas and SIFPL for the transfer of the microfinance business. Equitas will be renamed Equitas Holdings Pvt Ltd and SIFPL will be renamed as Equitas Micro Finance India Pvt Ltd shortly. Mission: To improve quality of life by increasing total asset value of those who are not effectively served by the formal financial sector by providing transparent and trustworthy access to financial and other relevant products and services by deploying cutting edge technology and forming partnerships and alliances. Vision: To be the leader in microfinance in the country Unique features of EQUITAS:  The most fair & transparent company in the world. Equitas has always communicated the reducing balance interest and the interest rate was set based on a moderate margin assumption. The Equitas model has been validated by RBI’s adoption of its practices as the norm for microfinance institutions and NBFCs in general.  Customer-friendly repayment practices adopted in all lending businesses. Borrowers under financial stress due to unexpected circumstances (such as death in the family etc) are provided suitable comfort. Over Rs 50 Lakhs has been waived as per this policy.
  15. 15. BIM TRICHY Page 15  Highest levels of corporate governance. Clause 49 complied with since Day One. Board of Directors conduct a peer evaluation of each other. Equitas has been rated as a Great Place to Work for the past few years now. The company has adopted unique HR practices such as ESOP for all employees at every level, enabling them to participate in the value creation Health insurance for all staff including those covered under ESI Health insurance for dependent parents of all staff in the company, which is unique amongst corporates in India Rs. 500 plus a day off given to employees on their Wedding Anniversaries, enabling them to spend time with their families Sponsoring of video charges (upto an amount) for employees getting married while in service. Supporting continual education programme: 50% of tuition fees paid by company and if employee passes in I Class, reimbursing the remaining 50% also Celebrating birthdays of all staff by cutting cake in respective branch office. Fair and transparent staff appraisal system with staff having direct access to M.D to air grievances Largest scale of social initiatives by any company. 5 Lakh health camp beneficiaries and 2.5 lakh skill development program beneficiaries.
  16. 16. BIM TRICHY Page 16 Equitas was founded in 2007 on three basic principles: 1.Clarity of Purpose 2. Honesty of Intention 3.Integrity of Execution An organization that adopts these three principles tends to be supported by every resource across the world in its endeavours. And Equitas has been fortunate to have gained the trust & support of stakeholders across the world!. Equitas has adopted a unique model of responsible lending, which was borne out of extensive field visits which revealed the following” From the Client Side Micro Credit services were a needed service from the perspective of the low income groups, be it in rural or urban. This was regarded by its recipients as a good alternate between low cost but inefficient bank loans and highly efficient but high cost money lender loans. From the Supply Side The focus by most Microfinance institutions (MFI) were only on 3 factors: Growth in number of clients, loan outstanding and no. of staff. There was hardly any mention amongst MFIs of efficiency improvements, technology adoption, cost parameters and ultimate cost to clients. The common refrain was ‘clients don’t mind the interest rate, they just need the money quickly’. Clearly what was lacking from the supply side was any form of fairness or transparency in their dealing with the clients and other stakeholders. Against this backdrop, Equitas was formed in 2007 with an intent to create an organization which
  17. 17. BIM TRICHY Page 17 the most fair and transparent MFI in the World! And the crowning glory for Equitas was when, in the aftermath of the 2010 crisis in the MFI sector, the RBI appointed Malegam Committee recommended tight regulation for the sector. All the 12 major recommendations of this Committee were a reflection of the exact model that Equitas had created right from inception, including our lending rate of 25.5% of our first loan. We are indeed proud that Regulation has chosen to follow the Equitas model including setting an interest rate cap at 26%. In 2011, Equitas expanded the scope of providing financial services for the financially excluded segments of the society. Equitas has setup separate businesses for providing finance for purchase of used commercial vehicles and housing loans for self-employed through wholly owned subsidiaries. In the next few years, Equitas expects to balance its portfolio equally across these 3 businesses
  18. 18. BIM TRICHY Page 18 There are seven parts to the mission statement. (1) The main purpose: to improve the quality of life of our customers (2) Indicator: While there are many indicators of quality of life, we have chosen the yardstick of measuring the asset value as the indicator of quality of life. (3) Who are our customers: Those not served by the formal financial sector (4) How do we serve: Transparent and trustworthy access. Equitas, in Latin means ‘Equitable’ meaning fair and transparent. Everything done here would be tested
  19. 19. BIM TRICHY Page 19 against this measure and only those which pass would be allowed to be rolled out. Every action that the company does should be transparent and shouldcreate trust in the minds of customers and other stakeholders. Our pricing is very fair and not opportunistic. We have priced our products such that at an optimum efficiency of operation we would be able to get reasonable return on equity, even though there exists a temporary opportunity to price higher. We are also totally transparent in our communication of interest rate to clients. As per a communication ( in 2008 ) Mr Chuck Waterfield of mftransparency.org, Equitas may be the first MFI in the world to print the true IRR in the customer pass books. (5) What do we offer: Both financial and non financial products and services. While we are currently offering only finance, the plan is to roll in non-financial products and services shortly (6) How do we do this: By leveraging technology to ensure lower cost and hence lower price to customer. Equitas has put in place significant innovations both in processes and IT to improve efficiency and reduce cost. Our ‘Sticker’ process for collections is protected now through a Copyright. Our SMS meeting tracker system, Form Tracker system and Optical Mark recognition are recognised as unique initiatives with the OMR being the first in the BFSI sector in India. We are already better than all leading competitors in terms of various productivity parameters and expect to be the lowest cost organisation during the coming year. (7) Do we go alone in this: Not necessarily. Wherever we can form alliance or partnership with others we would be happy to look at the same. We have successfully outsourced many non-core activities to various vendors, thus improving productivity and controls.
  20. 20. BIM TRICHY Page 20 INVISIBLE MISSION STATEMENT! The core of our mission is that: 1) All our actions with respect to all stakeholders will be totally fair and completely transparent 2) This philosophy would be reflected in the everyday action of all staff right across all the branches To achieve this, we did the following: 1) Ensure our mission statement is not displayed in any walls at HO or at any branch, but instead resides in the hearts of our employees 2) Institutionalize a process where every evening at 5PM across all our branches, the staff gather to discuss their activities for the day and check whether any of it was either unfair or non-transparent; and take action not to repeat it. We proudly invite any visitor to test us out on this and would be happy to take feedback for improving ourselves further.”
  21. 21. BIM TRICHY Page 21 CHAPTER –III
  22. 22. BIM TRICHY Page 22 3.1 EMPLOYEE ENGAGEMENT PRACTICES AT EQUITAS: Given the mission of the organization and its focus on consumers, the company also has a separate mission for the HR team that would enable it to serve its internal consumers – the employee’s better. The Human Resource mission is, “To Acquire, Align, Assess and Retain Trustworthyemployees”. Acquiring the right resource: The Company follows an elaborate recruitment process, which includes behavioural assessment of candidates.Sixty percent of staff is recruited through employee referral. Only employees who have completed one month of employment are eligible to refer, as it is important for new employees to understand the work culture in order to provide quality references. There is a second level line manager screening and a HR round to clear possible employees. Candidates are then sent on field visits to understand and experience what their role and the work of the organisation is like. Frequently, candidates do not join after the field visits. This helps the organization filter out those who would not fit into the culture even before they enter the system. Another mechanism to assess fitment is “Know your candidate’s family well,” where the supervisor visits the selected candidate’s residence to understand the cultural aspects of and bond with the family. This also serves as a background check. Given that employees deal with customers’ money, this assessment is very important. Equitas also ensures that all candidates hired are posted close to their residence to ensure a balanced work life and also enable closer supervision. Alignment of the workforce to create “unity and uniformity” in employees’ understanding of the organisation’s objectives is critical, as most employees come from diverse backgrounds and work in different regions. This is accomplished through a vernacular two week induction program for all field staff at Regional Training Centres. After this training, staff can only go into the field once they have
  23. 23. BIM TRICHY Page 23 cleared the company’s certification program. When a new region is being set-up, the team leading the effort undergoes a two week intensive and additional training on recruitment, infrastructure creation and statutory compliance. Assess: Performance Management at Equitas follows a”Win-Win Agreement,” where goals are measurable and agreed to through due process. Employees are accountable for their goals and the company for rewarding performers. Process guidelines and cultural guidelines are put in place. The role of the employee is clearly defined and communicated. Performance reviews are undertaken twice a year. Area-wise and role-wise normalization prevents favouritism. For example in most regions the sales roles are income generating and viewed more critical to support roles, in the process of normalisation across a region, the general practice is to place the sales roles at the high end of the curve and the support roles at the lower end. By having normalisation done across both sales roles and support roles separately, this bias is minimised. The company uses a transparent method of computing performance and promotion increments. Retain: The guiding principle of Equitas is to”Treat your employees the way you want them to treat your best customers”. Just as the focus of Equitas is to improve the quality of life of its customers, it also strives to improve the “Quality of life” of its employees by addressing the four key aspects of the whole person: Physical - by enabling employees a certain minimum standard of living through provision of various health and insurance benefits. One of the best practices is a, “Snack Allowance”. Since most field staff begin the day early they miss breakfast and get time to have lunch only late in the afternoon. Equitas introduced a snack allowance of Rs.30 apart from their other allowances with which they could buy some biscuits and water. Given the tendency of most
  24. 24. BIM TRICHY Page 24 people to save up on that money, Equitas also arranged for surprise audits of its field staff to ensure they are making use of this allowance. Mental - by providing opportunities to learn and grow in the form of educational allowances for higher education which is almost 100% depending on the performance of the employee in the course that has been taken up. Even in the time of the crisis, Equitas had a no retrenchment policy which was communicated openly to all the employees. Two additional lines of business in the form of vehicle loans and home loans were started to improve the situation without affecting the livelihood of the employees. Emotional- by making them feel cared for through provision of employee stock options for every employee; a branch award scheme where the entire winning team gets to go for an outing with their families (in case of an annual award winner, the entire Branch team gets to go abroad with his/her family); communication channels such as A Monthly Hotline with the National Business Head which is an email facility where employees can send their concerns and issues at work to the National Business Head, who is committed to resolving them within 48 hours. If the resolution is likely to take longer, the employee is kept informed. It is mandatory for all employees to respond to an email from the National Business Head even if they do not have any concerns to raise. This provides a channel to communicate any issues or concerns and have them addressed. Spiritual - by emphasizing on the quality of work through its alignment with the mission statement; career enhancement policy where employees can move to different roles through their internal job postings and open house sessions where they provide suggestions for people practices.
  25. 25. BIM TRICHY Page 25 ACHIEVEMENTS AND WHAT’S NEXT Equitas tracks the progress it has made with respect to its mission by measuring the improvement of the total household assets of its customers. Since it has a no credit policy for consumer durables, this mechanism helps in making a rudimentary estimation of any improvement in the quality of life of its customers. Equitas needs to improve its measures and metrics in this respect. The significantly low attrition rate, as compared to its competitors, indicates Equitas is the employer of choice for its employees. Industry recognition awarded to Equitas includes: CRISIL rating of 3 for corporate governance on a scale of one to eight, with one being the highest. "Unitus Accelerator" Award for 2008 - More than 80,000 clients with life changing microfinance services in less in 8 months. Winner of the TiE-Canaan Entrepreneurial Challenge (2008)-a national level business plan competition for Early Stage Entrepreneurs in India. Optical Mark Reader (OMR) Implementation at Equitas as the “Best Implementation of the year 2009 – PC-Quest” an I.T magazine The Equitas focus on being “trustworthy”, “fair” and “transparent” in all its dealings has been a key differentiator for the company in the microfinance industry. Incidents of employees taking bribes from customers to process loans have led to stringent risk management practices in the company. Despite its policy of, “treating employees the way they would have them treat their best customers,” the environment that most of its employees come from makes it difficult to practice. Although practices like having the employees stay within a radius of 15 kms from the office helps work life balance, it also enables monitoring of the employees whereabouts. Hence, Equitas’ risk management
  26. 26. BIM TRICHY Page 26 practices have led to its employees feeling watched which could impact engagement. However, this is more than offset by the faith of the investors that their investment with the company is safe. Taking Microfinance to the next level by focusing on providing an ecosystem of services to the customers is not just a sustainability initiative but also helps the organization achieve its mission. Equitas’ HR practices along similar lines can be viewed as catering to the employees as per Abraham Maslow’s hierarchy of needs. It begins with small aspects like the snack allowance that pays attention to their physiological needs; the openly communicated “no retrenchment policy” even in times of financial crisis addresses their safety needs; Various communication mechanisms and engagement practices satisfies social needs and educational assistance and alignment of the work to the mission statement enables them to fulfil their esteem needs.
  27. 27. BIM TRICHY Page 27 CHAPTER IV
  28. 28. BIM TRICHY Page 28 The survey was conducted through telephonic interview with sample size around 67.The questionnaire consists of 19 questions(i.e first 10 questions descriptive,next 9 questions are five scale questions). The five scale used for this project is as follows 5-Outstanding 4-Excellent 3-Average 2-Bad 1-Very Bad The following questions were asked through telephone and the answers were recorded in the excel sheet.The target group belonged to different regions. NO OF EMPLOYESS VEHICLE FINANCE 38 MICRO FINANCE 29 67 REGION NO OF EMPLOYEE VEHICLE FINANCE MICRO FINANCE TN 22 12 10 AP 9 9 0 MH 17 9 8 MP 2 0 2 RAJ 7 1 6 PONDY 2 2 0 GUJARAT 8 5 3
  29. 29. BIM TRICHY Page 29 The analysis and interpretation on the responses for each of the questions are as follows: 1)How are the growth opportunities at Equitas? OPINION NUMBER OF EMPLOYEES Very good 37 Good 11 Ok 9 Not good 10 Total 67 GRAPH: FINDINGS AND INFERENCES: From the analysis,it is found that 71% are very happy about the growth opportunities at equitas.But 39% didn’t get good opportunities during their tenure in the company.It indicates that the growth opportunities are really good at the company. 0 10 20 30 40 Very good Good Ok Not good No Of Ex Employees No Of Ex Employees
  30. 30. BIM TRICHY Page 30 2)What is your view about the recognition/rewards given by the management? OPINION NUMBER OF EMPLOYEES Yes,Very good 61 No,Rewards are not given 07 Total 67 GRAPH: FINDINGS AND INFERENCES: More than 75 % ex employees feel very good about the reward system at Equitas.The remaining percentage felt that the reward system is not followed and quit the company due to this reason. 0 20 40 60 80 Yes No No Of Ex Employees No Of Ex Employees
  31. 31. BIM TRICHY Page 31 3)Was your position /Role equivalent to the Pay/Salary? OPINION NUMBER OF EMPLOYEES Yes 59 No 8 Total 67 GRAPH: FINDINGS AND INFERENCES: It was found that 88% ex employees felt that they were paid according to their position.Only 12% percent were not happy with the salary package. So,There is no necessary to change the salary structure. 0 20 40 60 80 Yes No No Of Ex Employees No Of Ex Employees
  32. 32. BIM TRICHY Page 32 4)Do you agree that frequent chance was given to you for improving your skill and job knowledge? OPINION NUMBER OF EMPLOYEES Yes 50 No 17 Total 67 GRAPH: FINDINGS AND INFERENCES: From the analysis ,it was found out that 74% of ex-employees felt that their knowledge about finance and communication skill had been improved tremendously. The remaining 26% had not felt any improvement in either their knowledge or skill So, there is no need for the company to deal in improving the employee’s skill and knowledge. 0 20 40 60 Yes No No Of Ex Employees No Of Ex Employees
  33. 33. BIM TRICHY Page 33 5)Did Manager give you the opportunity to discuss your grievances? OPINION NUMBER OF EMPLOYEES Yes 54 No 13 Total 67 GRAPH: FINDINGS AND INFERENCES: From the survey ,it is found out that 80% of ex-employees got the support of their managers during the rainy days in the company.But remaining 20% didn’t the support. Thus ,the company must conduct get together programmes to ease the way of approach between the management and the employee. 0 20 40 60 Yes No No Of Ex Employees No Of Ex Employees
  34. 34. BIM TRICHY Page 34 6)Were you appreciated for your work? OPINION NUMBER OF EMPLOYEES Yes 48 No 19 Total 67 GRAPH: FINDINGD AND INFERENCES: It is found that 71% of ex-employees were appreciated by the managers when the performance was very good.But,remaining 29%didn’t get any appreciation. Managers should try to appreciate the employees for the good performance in order to increase their commitment towards the work 0 20 40 60 Yes No No Of Ex Employees No Of Ex Employees
  35. 35. BIM TRICHY Page 35 7)Were you supported by the supervisors during your difficult times? OPINION NUMBER OF EMPLOYEES Yes 54 No 13 Total 67 GRAPH: FINDINGS AND INFERENCES: From the survey ,it is found out that 80% of ex-employees have got the support of their managers during the rainy days in the company.But remaining 20% didn’t the support. Thus ,the company must conduct get together programmes to ease the way of approach between the management and the employee 0 20 40 60 Yes No No Of Ex Employees No Of Ex Employees
  36. 36. BIM TRICHY Page 36 8) Were your ideas considered in the work environment? OPINION NUMBER OF EMPLOYEES Yes 38 No 29 Total 67 GRAPH: FINDINDS AND INFERENCES: From the analysis,it is found that 56% of ex-employee’s ideas were considered during the team meeting.But,remaining 44% employee’s ideas have not been considered. So,Managers should give the employees an opportunity to reveal their creativity. The ideas should not only be considered but also implemented.Awards have to be given for creative ideas. 9) Did you have the materials and equipment to do your work efficiently? 0 10 20 30 40 Yes No No Of Ex Employees No Of Ex Employees
  37. 37. BIM TRICHY Page 37 OPINION NUMBER OF EMPLOYEES Yes 67 No Total 67 GRAPH: FINDINGS AND INFERENCES: It is found that 100% ex-employees were very happy with the materials and equipments given for the work to be done successfully. So,there is no need for the company to change this structure. 10)How do you rate the relationship with the manager? 0 20 40 60 80 Yes No No Of Ex Employees No Of Ex Employees
  38. 38. BIM TRICHY Page 38 OPINION NUMBER OF EMPLOYEES 5 33 4 16 3 8 2 7 1 3 Total 67 GRAPH: FINDINGS AND INFERENCE: From the analysis,it is found that 73% of sample size gave the score equal to or more than four for the question relationship with manager.But,remaining 27 % were not that happy with the relationship with the manager. So,The company should conduct frequent audits to have a track of the behaviour of the manager and their relationship with the employees. 11)How are the Communications between you and the senior manager? 0 10 20 30 40 Outstanding Excellent Average Bad VeryBad No of ex employees No of ex employees
  39. 39. BIM TRICHY Page 39 OPINION NUMBER OF EMPLOYEES 5 31 4 24 3 5 2 5 1 2 Total 67 GRAPH: FINDINGS AND INFERENCES: It is found that 82% ex employees had good communication with their managers but the remaining 18% didn’t have good communication with the managers. Communication is very important between the manager and the employees,Thus the management team has to see that the communication is good enough between the employees and the management. 0 10 20 30 40 Outstanding Excellent Average Bad VeryBad No of ex employees No of ex employees
  40. 40. BIM TRICHY Page 40 12)How do you rate the performance appraisal at Equitas in terms of fairness and transparency? OPINION NUMBER OF EMPLOYEES 5 19 4 35 3 6 2 5 1 2 Total 67 GRAPH: FINDINGS AND INFERENCES: From the survey,it is very evident that the 80% employees performance appraisal was fair and transparent but remaining felt a kind of politics being followed in the company. Thus,company should see that managers rate the employees based on performance in the fair and transparent way. 0 5 10 15 20 25 30 35 40 Outstanding Excellent Average Bad VeryBad Series1
  41. 41. BIM TRICHY Page 41 13)How do you rate the training and development in the company? OPINION NUMBER OF EMPLOYEES 5 27 4 18 3 8 2 11 1 3 Total 67 GRAPH: FINDINGS AND INFERENCES: It is found that 67%of ex-employees rated the training and development practice at company more than or equal to four.But,remaining ex-employees scored less than four.So,Company should improve the practices of training and development to see that employees will be made aware of the information necessary for the work. 0 5 10 15 20 25 30 Outstanding Excellent Average Bad VeryBad Series1
  42. 42. BIM TRICHY Page 42 14)How would you rate the reward system in the company? OPINION NUMBER OF EMPLOYEES 5 26 4 29 3 4 2 5 1 3 Total 67 GRAPH: FINDINGS AND INFERENCES: It is found 82% of ex-employees have rated the compensation package at equitas more the or equal to four.But,remaining 18% rated it less than four. Overall,the compensation package is better in the company. 0 5 10 15 20 25 30 35 Outstanding Excellent Average Bad VeryBad No of Ex Employees No of Ex Employees
  43. 43. BIM TRICHY Page 43 15)How would you rate the support provided by the supervisors during your tenure in the company? OPINION NUMBER OF EMPLOYEES 5 31 4 20 3 5 2 4 1 7 Total 67 GRAPH: FINDINGS AND INFERENCES: It is found that 76% of ex-employees have rated the manager’s support more than or equal to 4.Remaining percentage of ex-employees didn’t get the expected support from the managers.So, managers at the company, especially branch managers need to support and encourage the sales officer in their work. 0 5 10 15 20 25 30 35 Outstanding Excellent Average Bad VeryBad No of Ex Employees No of Ex Employees
  44. 44. BIM TRICHY Page 44 16)How was the relationship with peers during your tenure ? OPINION NUMBER OF EMPLOYEES 5 48 4 17 3 2 2 1 Total 67 GRAPH: FINDINGS AND INFERENCES: It is found that 97% of ex-employees were very happy with the colleagues during their tenure in the company. 0 10 20 30 40 50 60 Outstanding Excellent Average Bad VeryBad No of Ex Employees No of Ex Employees
  45. 45. BIM TRICHY Page 45 18)How would you rate the growth opportunities at Equitas ? OPINION NUMBER OF EMPLOYEES 5 28 4 19 3 7 2 9 1 4 Total 67 GRAPH: FINDINGS AND INFERENCES: From the sample it is found that 70% of ex-employees were very happy with the growth opportunities in the company.But,the remaining percentage didn’t find any good growth opportunities in the company.Thus, the company should give promotions and ratings based on the performance but not based on impressions. 0 5 10 15 20 25 30 Outstanding Excellent Average Bad VeryBad No of Ex Employees No of Ex Employees
  46. 46. BIM TRICHY Page 46 19)What is the overall view about the company towards employee engagement? OPINION NUMBER OF EMPLOYEES 5 48 4 15 3 2 2 2 1 Total 67 GRAPH: FINDINGS AND INFERENCES: It is found that 94% of ex-employees are very happy with the employee engagement practices being followed in the company. Thus, company has to concentrate on few more things to make all its employee very much committed to the company. 0 10 20 30 40 50 60 Outstanding Excellent Average Bad VeryBad No of Ex Employees No of Ex Employees
  47. 47. BIM TRICHY Page 47 CHAPTER-V
  48. 48. BIM TRICHY Page 48 5.1 FINDINGS AND SUGGESTIONS: FINDINGS: o The growth opportunities in the company are quite adorable. Many employees are promoted based on the performance. o The rewards system and the salary packages are up to the mark in the company. o Employees are able to accumulate knowledge by Working in this field of work . o The employee’s communication skill improved because of interaction with customers. o The work pressure is considered to be more when compared to other jobs. o The relationship between the manager and the employee seems to be little acrid. o The employees are somewhat happy with the employee engagement practices being followed in the company. o Boss,training and development and growth opportunities have a great impact on the employee engagement. SUGGESTIONS: From the survey,the following suggestions are provided so that employees would be very commited to the company. - Management style at the Branch Manager level has to be changed. - Company Policy should be followed 100%. - Target system of the sales officer should be flexible. - Monthly Performance Rewards(ie cash) have to be introduced at every department - Relaxation measures like team outings,Two days trips should be introduced.
  49. 49. BIM TRICHY Page 49 - Interest rate of the loan has to be reduced. - Loan development process has to be very fast . - Frequent auditing should be carried at very branch. - Create a strong team environment. - Sense of belonging. - Provide constant feedback on the positives. - Give immediate feedback. - Celebrate both financial and non-financial achievements. - Delegation
  50. 50. BIM TRICHY Page 50 ANNEXURES
  51. 51. BIM TRICHY Page 51 (A)Employee Engagement Model
  52. 52. BIM TRICHY Page 52 (B)Employee Engagement Model EMPLOYEE ENGAGEMENT GOOD BOSS TRAINING & DEVELOPMENT GROWTH OPPORTUNITIES
  53. 53. BIM TRICHY Page 53 PROJECT SURVEY QUESTIONNAIRE: 1) Did you have the growth opportunities at your work place? 2) What is your view about the recognition/rewards given by the management? 3)Was your position /Role equivalent to the Pay/Salary? 4)Do you agree that frequent chance was given to you for improving your skill and job knowledge? 5)Did Manager give you the opportunity to discuss your grievances? 6)Were you appreciated for your work? 7)Were you supported by the supervisors during your difficult times? 8) Were your ideas considered in the work environment? 9) Did you have the materials and equipment to do your work efficiently? 10) In overall what is your opinion about this company? 11)How do you rate respect and fair treatment given to all employees in the organization ? 5 4 3 2 1 12)How are the Communications between you and the senior manager? 5 4 3 2 1 13)How do you rate the performance appraisal at Equitas in terms of fairness and transparency? 5 4 3 2 1 14)How do you rate the training and development in the company? 5 4 3 2 1
  54. 54. BIM TRICHY Page 54 15)How would you rate the reward system in the company? 5 4 3 2 1 16)How would you rate the support provided by the supervisors during your tenure in the company? 5 4 3 2 1 17)How was the relationship with peers during your tenure ? 5 4 3 2 1 18)How would you rate the growth opportunities at Equitas ? 5 4 3 2 1 19)What is the overall view about the company towards employee engagement? 5 4 3 2 1
  55. 55. BIM TRICHY Page 55 http://www.equitas.in/ http://hr-practices.com/ http://www.aon.com/human-capital-consulting/thought- leadership/talent_mgmt/2012_Making_Employee_Engagement_Happen_Best _Practices_Best_Employers_White_Paper.jsp http://www.slideshare.net/bestworkplacesconference/equitas-microfinance http://www.shrmindia.org/knowledge-center/strategic-hrm/organization- values-and-culture/equitas-microfinance http://www.peoplematters.in/tej_articles/employee-engagement/equitas- micro-finance-a-mico-initiative-for-a-macro-vision/1093 REFERENCES

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