A case study on employee retention strategies

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A case study on employee retention strategies

  1. 1. A Case Study on Employee Retention StrategiesVijayakumar A B and Dr. K.Nagendra BabuAbstractEmployee retention is a critical aspect for every company regarding competitive advantagebecause human resource is the most critical asset of today’s modern world. Other resourcescan be arranged effortlessly but to get efficient and retain talented human capital is the mostdifficult task. Therefore, organizations are now more focused towards employee retention.Organizations use different HR techniques for retention. This research paper is emphasisedon employee retention as relating to the efforts by which employers attempt to retainemployees in their workforce.Key Words: Human Resource Management, retention strategies, motivation, employeeretention.______________________________________________________________________*****Research objectiveThe present study aimed to deepens our understanding and improve the shortage of literatureby focus on to the main determinate of employee retention to existing in private sector. Themain research objectives can be summaries as follows:•To explore what types of benefits those are most important for the private sector workforce.•To assess the most important organizational strategies that contributes to the retention of theprivate sector workforce.•To investigate what issues related to organizational culture contribute to the retention of theprivate sector workforce.•To explore the future plan of Private sector workforce that contributes to their retention.Employee retention strategies1. First know the cost. This is the most basic and initial part of the retention process. A goodretention plan needs all the facts. The turnover cost includes cost of selection process, hiring,induction, training, lost productivity, etc.
  2. 2. 2. Hire the right people. Retention starts with recruitment itself. Identify the characteristics ofthe people you want to hire who fit in organization‟s culture. To retain employees, the peoplewho are productive and are likely to stay for a longer time should be hired.3. Focus on employee orientation. It is the first impression that the employee takes home withhim. A proper welcome form the management will encourage the employee to stay with theorganization.4. Individual development. Develop career plans for employees. Initiate mentorship and highereducation programs to keep the learning and development moving.5. Training for managers. An important factor that keeps the employee in the organization isthe manager. Employees need a manager who manages them well. A manager should be agood listener and motivator. Proper training should be given to the managers.6. Find the reason why employees are leaving. Conduct exit interviews with the employeesafter 3-4 months of leaving the job. This is because most of the employees would not like toreveal the true reason of quitting the job as long as they are in the organization and areassociated with the job. The exit interviews can be conducted online. Then the employees cantalk straight-from-the-shoulder.7. Employee recognition. Star of the month, top performer, picture on bulletin boards,appreciation cards and certificates, etc, increase employee morale and confidence. This is agreat way to retain employees of a call centre.Review of LiteratureRetention defined as “an obligation to continue to do business or exchange with a particularcompany on an ongoing basis” (Zineldin, 2000, p. 28). A more detailed and recent definitionfor the concept of retention is “customer liking, identification, commitment, trust, readinessto recommend, and repurchase intentions, with the first four being emotional-cognitive retention constructs, and the last two being behavioural intentions”.A more detailed and recent definition for the concept of retention is “customer liking,identification, commitment, trust, readiness to recommend, and repurchase intentions, withthe first four being emotional-cognitive retention constructs, and the last two beingbehavioural intentions” (Stauss et al., 2001).
  3. 3. Literature of employees retaining again show that attracting existed employees Costs lessthan acquiring new talents as organizations know their employees and what they want, andthe initial cost of attracting the new employees has already been expended (Davidow andUttal, 1989).The literature of employee retention clearly explain that satisfied employees who are happywith their jobs are more devotion to doing a good job and vigorous to improve theirorganizational customers satisfaction (Hammer2000; Marini 2000;Denton 2000).Other studies indicated that effective communications improve employee Identification withtheir agency and build openness and trust culture. Increasingly, Organizations provideinformation on values, mission, and strategies, competitive, Performance, and changes thatmay affect employees enthuse (Gopinath and 2000; Levine 1995).Studies indicated that employees stay when they have strong relationships with others withwhom they work (Clarke 2001). this explain the efforts of organizations to encourage teambuilding, project assignments involving Work with colleagues and opportunities forinteraction both on and off the job(Johns et al 2001).Role of H.R. in Employee RetentionThe Human Resource team plays an important role in employee retention. Let us find outtheir role in the same:Whenever an employee resigns from his current assignments, it is the responsibility of the HR tointervene immediately to find out the reasons which prompted the employee to resign.It is the duty of the HR to sit with the employee and discuss the various issues face to face.The HR person must ensure that he is recruiting the right employee who actually fits into therole.The human resource department must conduct motivational activities at the workplace.The HR must launch various incentive schemes for the top performers to motivate them.
  4. 4. Performance reviews are a must. The HR along with the respective team leaders must monitortheir team member‟s performance to ensure whether they are enjoying the work or not.Case study on Employee Retention1.Pay and Benefits: Compensation constitutes the largest part of the employee retention process.The employees always have high expectations regarding their compensation Packages.Compensation includes salary and wages, bonuses, benefits, prerequisites, stock options,bonuses, vacations, etc.Employee benefits4typically refers to retirement plans, health life insurance, life insurance, disability insurance,vacation, employee stock ownership plans,etc.Chart 1: Responses for pay and benefit2.Career growth: Career Growth can be defined as a way of success where at every regularinterval we must have new challenges to face, new activity to do, responsibilities to handleand most importantly new process to learn.
  5. 5. Chart2: Responses for career growth3.Training and Development: According to the recent review by Harvard Business Review,there is a direct link between training investment of the companies and the marketcapitalization. Those companies with higher training investment had higher marketcapitalization. It clearly indicates that the companies which have successfully implementedtraining programs have been able to deliver customer goals with effective results.6Chart3: Responses for training and development4.Work Environment: A healthy corporate culture of caring for the workers, communityand environment will strengthen the social spiritual capital, leading to a positive work climateof empowered and supported workers.TCS has an open door policy in which any employeecan approach the CEO or the top management with work related problems. Open-house session and engagement programmes allow the employees at all levels meet anddiscuss various work issues. Employees can also take part inone-on-one sessions where theycan interact privately with senior management.
  6. 6. Chart 4: Responses for work environment5.Job Satisfaction: Benefits and high profits are key essentials when it comes to having ahigh job satisfaction among the company‟s employees and a low turnover rate. Jobsatisfaction describes how content an individual is with his or her job. The happier people arewithin their job, the more satisfied they are said to be Job satisfaction is in regard to onesfeelings or state-of-mind regarding the nature of their work. Job satisfaction can beinfluenced by a variety of factors, eg, the quality of ones relationship with their supervisor,the quality of the physical environment in which they work, degree of fulfillment in theirwork, etc.8Chart 5: Responses for job satisfaction6. Factors affecting Retention in WiproRetention is a costly affair for any company. Wipro, with the highest rates of attrition, needsto work really hard on its retention management strategies. Wipro registered an attrition rateof 0.3% in the year2008-2009. When an employee leaves an organization, the organization
  7. 7. not only looses out on the cost of training the employees but also the loss of intellect from thetalent pool. Today, every organization is trying to increase its talent pool. The organizationsstrive on their intellectual capital and any loss on the same hits the company really hard. Thisis so because the projects undertaken by the company would require talent of specialexpertise and loosing that level of expertise would make it difficult for the company tocomplete the same projector even take up a new one.. The case with Wipro is no different.Wipro conducts campus recruitments in all major engineering colleges in India. The numberof recruits per year is large. However, so is the level of attrition, the number of recruits barelybalances the number of cases of attrition per year. These effects the company‟s cost and thebudget for the year concerned. When asked about the reasons why people would generallyleave Wipro, the answers were varied. However, most employees agreed on some commonparameters. They feel they are not paid at par with industry standards. Some feel that thetraining does not develop their skills enough. The following graph represents the factorsaffecting retention in Wipro.
  8. 8. ConclusionsA huge fraction of the people have less experience only one to tw o years in Wiproand hence high level of importance should be given to employee retention All the factors viz.Pay and Benefits, Career Growth, Training and De velopment, Work Environment and JobSatisfaction are important for employee retention.The study of rank correlation between the two age groups show that there is a small level ofco rrelation which implies the needs of the two age groups are different however, the smalllevel of correlation implies the importance of career growth in both th e sections ofemployees differs.For retaining a talent from an age group of 20 to 30 years, the H R manager mustconcentratemore on career growth and charting out a good career plan§ When itcomes to an employee of an age group of 30 to 40 years, more emphasis must be paid ontraining and development as without training, this cadre of employees may not be on par withthe current technology.Performance Based Pay should be given utmost importance. Employees are happier if theyare paid according to their performance and this encourages them to perform better. Benefitsare important for retention however with varied opinions.Career Aspirations of all employees have not been met uniformly. However, mentoring inWipro is pretty successful as most employees feel its being done in the right direction.The data reveals that equal opportunity is not being given to all employees to attend thetraining programs of their choice. Therefore this aspect should be taken care.More than 60% feel they are being appreciated for their work, which shows the rewards andrecognition programmes are strong.The opinions regarding the friendliness and approachability of managers seem varied. Almost67% take pride in the work. However, employees do not know how their work reflects in thegrowth of the organization.SuggestionsThe younger group of employees should be well appreciated to increase their morale toenable them to work better.
  9. 9. The experienced group of employees should be exposed to the current case technology toenable them to move forward and not be redundant in the industry.The HR managers should check on the career paths drawn for all employees.To retain the good talent who are new to the industry, they must be given a pay packageaccording to industry standards.Employees should be rated correctly according to their performance and paid accordingly.The career aspirations of all employees should be carefully understood by the HR managersand career paths should be designed accordingly.Training provided should be at par with industry standards. All employees should beprovided the training of their choice, and no favoritism should be shown amongst theemployees.The managers should be friendly and approachable so as to realize the first signs of attrition.If attrition is stopped at the preliminary stage then steps can be taken to curb the same.Employees should be encouraged to take pride in the work they do.Employees should be informed about the relevance of their work in the organizationaldevelopment.BibliographyBranch, Shelly (1998, November). The new economy: You hire „em. But can youkeep„em? Fortune, 247.Carney, Karen (1998, November). How businesses can reduce high employeeturnover.Inc, 47.Denton, D. Keith (1992). Recruitment, retention, and employee relations. West Westport,CT:Quorum.Lynn, Jacquelyn (1997). Hard to hold: Conquer the tight labor market by retaining valuableworkers. Entrepreneur, 34.Marx, Mary (1995, December). Keeping your best employees. Journal of PropertyManagement, 26-29.www.Wipro.inwww.Citehr.comwww.Talkstats.com

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