A study related to employee retention in an organization.

1. Summer Training Report on
“A STUDY ON EMPLOYEE RETENTION”
Submitted by
Prashant
(MAU20UBA029)
Batch: 2020-2023
under the supervision of (Supervisor name: Dr. Neeraj) in
partial fulfillment for the award of the degree of
Bachelor of Business Administration
Submitted To:
Maharaja Agrasen School of Management
Maharaja Agrasen University, Atal Shiksha Kunj, Village: Kalujhanda, Baddi
District: Solan, (Himachal Pradesh) Pin -174103 Session:
2022-23
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INITIAL INTERNSHIP REPORT
Reporting Date: 4th
July 2022
Name of the student intern: Prashant
Name of the company: Sarvotham Care
Industry Mentor (IM): Ms Shyam Lal Chandel
Project start date: 4th
July 2022
Project objectives: To study the employee retention of employees in Sarvotham Care
Project scope and activities: the scope of the project is limited to the employees of the
Sarvotham Care
Project deliverables: Summer Training Report
Signature and Name of Faculty Mentor: Dr. Neeraj
Signature and Name of Industry Mentor (IM): Ms. Shyam Lal Chandel

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DECLARATION BY THE CANDIDATE
I hereby declare that the Summer Training Report (BM-510) entitled “Training and
Development” submitted in partial fulfillment for the award of the degree of Bachelor of
Business Administration is an original work carried out by me under the guidance and
supervision of Dr. Neeraj. No part of this Training Report has been submitted for any other
degree or diploma to this or any other university. The assistance and help received during
course of investigation has been duly acknowledged.
(Signature)
Place: (Prashant)
Date: …………... (MAU20UBA023)

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CERTIFICATE OF THE INTERNAL SUPERVISOR
This is to certify that Summer Training Report (BM-510) entitled “Training and Development”
“submitted in partial fulfillment for the award of degree of Bachelor of Business
Administration to Maharaja Agrasen School of Management of Maharaja Agrasen
University, Village: Kalujhanda, District: Solan, (Himachal Pradesh) Pin -174103 is a
bonafide work carried out by (Prashant), (MAU20UBA023) under my guidance and
supervision. No part of this Project Report has been submitted for any degree or diploma.
(Signature)
Place: Supervisor Name and Signature:
Dr. /Ms: Neeraj
Date: …………... Designation: Assistant Professor

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Title Page no.
1. INTRODUCTION
1.1 Introduction to Industry 7
1.2 Company Profile 13
2. ABOUT THE TRAINING PROJECT
2.1 Introduction to Employee Retention 18
2.2 Need and Scope 21
2.3 Significance 24
2.4 Project Rationale and Goals
3. FINDINGS OF THE PROJECT
3.1 Recommendations 38
4. CONCLUSION
4.1 Bibliography 39

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1. INTRODUCTION
1.1 INTRODUCTION TO INDUSTRY:
The pharmaceutical industry in India was valued at an estimated US$42 billion in 2021. India
is the world's largest provider of generic medicines by volume, with a 20% share of total global
pharmaceutical exports. It is also the largest vaccine supplier in the world by volume,
accounting for more than 50% of all vaccines manufactured in the world. With industry
standards compliant mega production capabilities and large number of skilled domestic
workforce, Indian exports meet the standards and requirements of highly regulated markets of
USA, UK, European Union and Canada. According to the Department of Pharmaceuticals,
Ministry of Chemicals and Fertilizers, domestic pharmaceutical market turnover reached Rs
129,015 crore (US$18.12 billion) in 2018, growing 9.4 per cent year-on-year and exports
revenue was US$17.28 billion in FY18 and US$19.14 billion in FY19.
As of 2021, most of pharmaceuticals made in India are low-cost generic drug which comprise
most of pharmaceutical export of India. Patented medicines are imported. APIs are imported
from China (60% supplies by volume worth US$2.4 billion) and Germany (US$1.6 billion) as
well as from US, Italy and Singapore. To foster an Atmanirbhar Bharat by enhancing the R&D,
make in India product development and high-value production capabilities, import substitution
and domestic manufacture of active pharmaceutical ingredient (API) the government has
introduced a US$2 billion incentive program which will run from 2021–22 to 2027–28. In 2019
the Department of Pharmaceuticals announced that as part of the Make in India initiative, drugs
for local use and exports must have 75% and 10% local APIs respectively and a bill of material
must be produced for verification. During 2018–2021, India ranked third globally in terms of
dollar value of drugs and medicines exports.
Major pharmaceutical hubs in India are (clockwise from northwest): Vadodara, Ahmedabad,
Ankleshwar, Vapi, Baddi, Sikkim, Kolkata, Visakhapatnam, Hyderabad, Bangalore, Chennai,
Margao, Navi Mumbai, Mumbai, Pune and Aurangabad.

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Industry sector development Government intervention
The Indian government established the Department of Biotechnology in 1986 under the
Ministry of Science and Technology. Since then, there have been a number of dispensations
offered by both the central government and various states to encourage the growth of the
industry. India's science minister launched a program that provides tax incentives and grants
for biotech start-ups and firms seeking to expand and establishes the Biotechnology Parks
Society of India to support ten biotech parks by 2010. Previously limited to rodents, animal
testing was expanded to include large animals as part of the minister's initiative. States have
started to vie with one another for biotech business, and they are offering such goodies as
exemption from VAT and other fees, financial assistance with patents and subsidies on
everything ranging from investment to land to utilities.
The Government started to encourage the growth of drug manufacturing by Indian companies
in the early 1960s, and with the Patents Act in 1970.]
The government has addressed the
problem of educated but unqualified candidates in its Draft National Biotech Development
Strategy. This plan included a proposal to create a National Task Force that will work with the
biotech industry to revise the curriculum for undergraduate and graduate study in life sciences
and biotechnology. The government's strategy also stated intentions to increase the number of
PhD Fellowships awarded by the Department of Biotechnology to 200 per year. These human
resources will be further leveraged with a "Bio-Edu-Grid" that will knit together the resources
of the academic and scientific industrial communities, much as they are in the US.
The biotechnology sector faces some major challenges in its quest for growth. Chief among
them is a lack of funding, particularly for firms that are just starting out. The most likely sources
of funds are government grants and venture capital, which is a relatively young industry in
India. Government grants are difficult to secure, and due to the expensive and uncertain nature
of biotech research, venture capitalists are reluctant to invest in firms that have not yet
developed a commercially viable product.

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Incentives for R&D, product development and high-value production
Government of India has launched a Production Linked Incentive (PLI) Scheme for
Pharmaceuticals with provision for disbursal of US$2 billion or INR 15,000 crore government
incentives, which will run from 2020–21 to 2028–29, to reduce import dependence, benefit
domestic manufacturers, boost product diversification and innovation for development of
complex and high-tech products especially in in vitro diagnostic devices and emerging
technologies especially in cell based or gene therapy, employment generation and production
of wide range of lower cost affordable medicines for consumers with the aim to achieve
incremental sales of US$4 billion or INR 294,000 crore and incremental exports of US$2.7
billion or INR 196,000 crore between 2022–23 to 2027–28.
Research and product development Product development
Indian companies are also starting to adapt their product development processes to the new
environment. For years, firms have made their ways into the global market by researching
generic competitors to patented drugs and following up with litigation to challenge the patent.
This approach remains untouched by the new patent regime and looks to increase in the future.
However, those that can afford it have set their sights on an even higher goal: new molecule
discovery. Although the initial investment is huge, companies are lured by the promise of hefty
profit margins and thus a legitimate competitor in the global industry. Patents
In 1970, Indira Gandhi enacted legislation which barred medical products from being patented
in the country. In 1994, 162 countries including India signed the Trade-Related Aspects of
Intellectual Property Rights (TRIPS) agreement, which stipulated that patent had to be given
to all inventions including medicines. India and other developing countries were provided an
extra ten years to comply fully with the conditions mandated by TRIPS. India succeeded in
including a crucial clause to the agreement in the form of the right to grant compulsory licenses
(CLs) to others to manufacture drugs in cases where the government felt that the patent holder

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was not serving the public health interest. This right was used in 2012, when Natco was granted
a CL to produce Nexavar, a cancer drug. In 2005, a provision was added to the new legislation
as section 3(d) which stipulated that a medicine could not be patented if it did not result in "the
enhancement of the known efficacy of that substance".
A significant change in intellectual property protection in India was 1 January 2005 enactment
of an amendment to India's patent law that reinstated product patents for the first time since
1972. The legislation took effect on the deadline set by the WTO's Trade-Related Aspects of
Intellectual Property Rights (TRIPS) agreement, which mandated patent protection on both
products and processes for a period of 20 years. Under this new law, India will be forced to
recognise not only new patents but also any patents filed after 1 January 1995.
In December 2005, the TRIPS pact was amended to incorporate specific safeguards to ensure
that the public health concerns of affordability and accessibility for a large section of people in
developing countries was not compromised. These amendments came into force only in
January 2017, however, after two-thirds of the member countries ratified them In the domestic
market, this new patent legislation has resulted in fairly clear segmentation. The multinationals
narrowed their focus onto high-end patents who make up only 12% of the market, taking
advantage of their newly bestowed patent protection. Meanwhile, Indian firms have chosen to
take their existing product portfolios and target semi-urban and rural populations.
Pharmaceutical industry
The Indian pharmaceutical industry has 5 important segments; contract research and
manufacturing services (CRAMS), active pharmaceutical ingredients
(APIs), formulations, biologics and biosimilars, and vaccines. Various types of companies are
within these segments.
Formulations
India is considered globally as a high-quality generic medicines manufacturer. Most of India's
largest pharmaceutical companies manufacture and export generic medicines, and are among
the largest generic medicine companies globally. These companies include Sun Pharma, which
is India's largest and the world's fourth largest specialty generics pharmaceutical company.
Cipla, another large Indian pharmaceutical company, is noted for its pioneering role in
manufacturing and exporting low-cost generic HIV/AIDS drugs to developing countries. As of

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2021, Lupin is the third largest pharmaceutical company in the United States by
prescriptions.
Active pharmaceutical ingredients (APIs)
As of 2021, India's APIs market is worth $11.8 billion and is forecasted to grow at a compound
annual growth rate of 12.24% until 2027. Several Indian companies manufacture APIs. One of
India's largest pharmaceutical companies, Divi's Laboratories, is the world's largest
manufacturer of more than 10 generic APIs. Laurus Labs supplies APIs to 9 out of the 10 largest
generic pharmaceutical companies, and is a leading producer of APIs for antiretroviral,
cardiovascular and oncology drugs. Piramal Pharma, a company that is part of the Piramal
Group, develops and manufactures peptide APIs.
Contract research and manufacturing services (CRAMS)
India has a rapidly growing CRAMS sector. Several Indian companies offer CRAMS services,
which also includes contract development and manufacturing (CDMO) services. Most of
India's CRAMS companies and contract manufacturing organizations (CMO) operate in the
small molecules segment. Laurus labs offers biologics and fermentation CDMO services. Divi's
Laboratories’ CDMO client's include 6 of the top 10 largest multinational pharmaceutical
companies. Syngene, a subsidiary of Biocon, offers CRAMS small molecules APIs and
biologics. Piramal Pharma, through its investment in Yapan Bio offers CDMO services for
biologics which include vaccines, gene therapies, and monoclonal antibodies. Suven
Pharmaceuticals offers services across the entire CDMO value chain with both intermediates
& API related CDMO services. The company is also among the top five CDMO companies in
India who supply high quality intermediaries to innovator companies.

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Biologics and biosimilars
As of 2021, India controls only 8% of the world's biopharmaceutical market.]
India's domestic
biosimilars market is projected to be valued at US$35 billion by 2030. Biocon is India's largest
and fully-integrated biopharmaceutical company. In 2021, Biocon Biologics, a subsidiary of
Biocon, received USFDA approval for Semglee, which is the first interchangeable biosimilar
insulin glargine.[44]
Another subsidiary of Biocon, Biocon Sdn Bhd, built Asia's largest
integrated insulin manufacturing and R&D facility in Malaysia, with a $300 million
investment. Sun Pharma has stated that it intends to look at opportunities in third wave of
biopharmaceuticals that are going off patent in 2026–27. Intas Pharmaceuticals is a large
company in the global biosimilar monoclonal antibodies market Vaccines
As of 2021, India is the world's largest manufacturing region for vaccines. In 2021, the World
Health Organization (WHO) stated that India has more than a 40% of the global market share
in vaccines. Serum Institute of India (SII) is the world's largest vaccine manufacturer by
volume.[]
SII manufactured Covishield, the Oxford-AstraZeneca COVID-19 vaccine, which is
the most administered COVID-19 vaccine in India. SII and Mass Biologics, part of the
University of Massachusetts Chan Medical School, developed Rabishield, a first of its kind
rabies human monoclonal antibody.]
Bharat Biotech, in collaboration with the Indian Council
of Medical Research (ICMR) - National Institute of Virology (NIV), developed Covaxin,
India's first COVID-19 vaccine. Bharat Biotech is also one of the first companies to develop
vaccines for the Zika and Chikungunya viruses.

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1.2 Profile of company
Sarvotham Care Limited was incorporated in 1996, as a public limited company registered under
Companies Act. We are one of the leading Indian companies manufacturing a wide range of
health care products including pharmaceutical formulations, nutritional supplements, personal
care products, home care and hospital care products for a host of companies. The operations
started on a humble beginning with the manufacture of pharmaceutical liquid orals. In due course
of time, expanded into manufacturing of other pharmaceuticals such as tablets, ointments, creams,
cosmetics, home and health care products.
The unit have expanded its operations considerably with well-established infrastructure and
geared to meet the requirements of its customers who are front line MNC's. Sarvotham Care
Limited is a multi-million dollar company engaged in manufacture of health care, personal care
and home care products. The company enjoys the confidence of many multi-national
companies within India and abroad. Having expanded its operations considerably, it is well
established and geared to meet all the requirements of its customers, both Domestic &
International.
Sarvotham Care Limited has been identified by many multinational pharmaceutical giants as
one of the leading manufacturers of health care, personal care and home care products on the
basis of production facilities and skills of international standards. The company scores high on
each of the key drivers of your decision-making process – offering an off-shoring location that
is cost effective, world-class and easily accessible.
Sarvotham Care Limited as a group has expanded its operations in an establishing two
manufacturing units in Baddi, Himachal Pradesh (SEZ) and Suchitra, Hyderabad.
Our Vision
The future we are striving for, is that: To be globally admired and respected for providing The
Superior Quality, First Time and Every Time and to become the global leader in producing
world-class Health care, Personal care and home care products for discerning customers.

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Our Mission
To attain global best practices and become a leading Health care, Personal care and home care
Manufacturer Company.
Sarvotham Care Products
• Granules and Powders
These lines are suitable for manufacturing and filling both in tins and pouches, with highest
standards available in the industry for nutrition & food products. Apart from being temperature
controlled at 23 ± 2o C, the relative humidity is also controlled at not more than 45% to preserve
the natural efficacy & integrity of the products during the manufacturing and filling processes.
The automatic weight check, state of the art metal detectors ensure highest standards in product
handling & filling. Powders transfer systems, automization at various operations makes GMP
compliance quite effortless. This facility is also ISO 22000 certified by DNV, in line with the
latest regulations laid down by the Govt. of India. With 3 modern lines and daily finishing
capacity of 22 Tonnes, the nutrition facility is both flexible and can easily handle very large
volumes.
• Capsules and Tablets
The Tablets & Capsules facility is equipped with world-class machines from leading suppliers
like Cadmach, Pampack and Neocota. These lines are suitable for manufacturing and filling in
bottles, blisters and Alu-Alu blister packing with highest standards available in the industry for
nutrition & food products. Apart from maintaining temperature at 23 ± 2o C, the humidity is
also controlled at not more than 45%, to preserve the natural efficacy and integrity of the
products during the manufacturing and filling processes.

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• Liquids, Creams and Gels
Our SS make liquid manufacturing single and multi-station/multi head filling equipment’s can
handle various pack sizes between 250 ml – 2000 ml. They are suitable for taking up any liquid,
emulsion, lotion or gel. The manufacturing and primary filling areas are supplied with 5 micron
filtered air, upgradable on the fly to class 100,000 and are also temperature controlled to 23 ±
2o C. Very high batch sizes with high-speed automatic filling and capping machines make it
ideal for high volume products. Our lines are equipped with automated two side labelling,
Induction sealing and ink jet coding to ensure tamper proof packaging.
The Cream line, with a manufacturing capacity of 4.4 metric tons per day, is a state of the art
PLM (Planetary mixer) with homogenizer is a rugged system, capable of handling the most
delicate products. These lines are suitable for taking up any creams/Gels with multiple phases.
The filling lines are ideal for filling in both jars and tubes. Various pumps ensure versatility in
pumping from the viscous to delicate products, requiring minimal shear. The independent
modular AHU system prevents cross contamination of products. The line is also temperature
controlled at 23 ± 2o C.
Global Partners

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2. ABOUT THE TRAINING PROJECT
2.1 Introduction to employee retention
Employee Retention is defined as an organization’s ability to retain its employees. It can
also be called as a process, in which the resources are motivated and encouraged to stay
in an organization for a longer period of time for the sustainability of the organization.
The ultimate aim of Employee Retention is to make both the stakeholders, i.e., employees
and employer happier. It facilitates loyal employees sticking to the company for a longer
duration, which in turn will benefit both the stakeholders.
Employee retention is not just a matter that can be dealt with records and reports. It purely
depends upon how the employers understand the various concerns of the employees and
how they help them resolve their problem, when they are in need.
Every organization spends time and invests money in grooming new employees and make
them corporate-ready. The organization will be in complete loss, if such employees quit
after they are fully trained.
Every organization invests time and money to groom a new joinee, make him a corporate
ready material and bring him at par with the existing employees. The organization is
completely at loss when the employees leave their job once they are fully trained.
Employee retention takes into account the various measures taken so that an individual
stays in an organization for the maximum period of time.
In a business setting, the goal of employers is usually to decrease employee turnover,
thereby decreasing training costs, recruitment costs and loss of talent and of
organisational knowledge. By implementing lessons learned from key organizational
behavior concepts, employers can improve retention rates and decrease the associated
costs of high turnover. Some employers seek "positive turnover" whereby they aim to
maintain only those employees whom they consider to be high performers.
In today's environmental conscious behavior society, companies that are more responsible
towards environment and sustainability practices can attract and retain employees.
Employees like to be associated with companies that are environmentally friendly.

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DEFINITION OF EMPLOYEE RETENTION
The organizations want to hold the valued employees. May approaches are used in this
regard. the one approach sees success in rewards the second in making jobs more
valuable (training and advancement).
Employee retention is the overall strategy or ability of an organuzat1on to retain its best
employees and hence maintain a lower turnover. An organization is able to achieve this
by adopting various employee retention programs. Employee retention is and should be
one of the main focus areas of the human resources department in any organization.
Retention is defined as the process by which a company ensures that its employees
don’t quit their jobs. Every company and industry has a varying retention rale. which
indicates the percentage of employees who remained with the organization during a fixed
period.
NEED
1. Cost Savings
Losing employees isn’t just a logistical challenge; it’s also a financial one. On average, it
costs one-half to twice an employee’s annual salary to replace them, including recruiting,
onboarding, and the time it takes to get up to speed.
As Gallup points out, a 100-person organization paying an average salary of $50,000 per
year could lose $2.6 million to the cost of replacing employees, given a fairly standard
turnover rate of about 26%. That means cost savings can quickly mount for organizations
that retain their employees for the long term.
2. Increased Productivity
Open roles due to employee turnover are a major drain on productivity and output. But
even when those roles are filled, it takes time for employees to get up to speed on their
work and reach peak productivity.

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According to the Harvard Business Review, it often takes about six months for an
employee to acclimate to a new position after an internal transfer and a year or more
after joining a company from the outside. Once companies have put time and training
into an employee, retaining them is essential to achieve a return on that investment.
3. Stronger Customer Relationships
A company’s relationships with its customers are essential to its success. In many
industries, one-to-one relationships are especially effective in driving business (for
example, the relationship between a software sales representative and a company’s tech
director).
Customer trust takes time to develop, and many buyers are more comfortable having a
trusted contact if they run into trouble with a product or service. Retaining employees,
therefore, can be central to retaining customers.
4. Higher Employee Engagement
Just as it takes time for new employees to get up to speed on the nuts and bolts of their
roles, becoming engaged with a company’s work and mission is also a long-term
process. Employees who feel invested in their company’s future and plan to stay are
more likely to put their best foot forward at work. And engagement pays dividends.
Gallup found that highly engaged companies are 23% more profitable than those with
low engagement.
5. Improved Trust and Collaboration
The longer employees work together, the more likely they are to develop relationships
built on trust and understanding of each other’s strengths. When colleagues know they
can count on one another, they are likely to communicate and collaborate more
effectively, driving the company forward.
6. More Positive Workplace Culture

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Long-term working relationships between colleagues don’t only lead to improved
business outcomes; they also make employees happier and more engaged, showcasing
another reason why employee retention is important. Gallup has found that having a
“work best friend” is a solid predictor of how connected employees feel to their jobs.
Without strong employee retention, it’s impossible for those bonds to flourish.
7. Preservation of Institutional Knowledge
Institutional knowledge—the ins and outs of a company’s operations and processes,
nuances of customer and vendor relationships, and history of successful and failed
initiatives—is invaluable. But by nature, employees with the most longevity in an
organization hold that knowledge. Retaining those employees keeps the company
running smoothly and allows them to pass down key insights.
8. Higher Employee Morale
Researchers have documented a phenomenon known as “quitting contagion,” in which
one or more employees leaving a company triggers others to start looking elsewhere,
even when external factors like poor management don’t come into play.
When employee turnover creeps higher, morale suffers, stress rises, and employees
naturally start to question their company, creating a vicious cycle. Prioritizing retention
can help avoid this dangerous pattern.
9. More Effective Recruitment
Strong employee retention can be a huge boon to a company’s brand and its recruitment
efforts. Today’s employees research companies carefully when considering an offer. And
high rates of turnover can be a serious red flag, especially when the position they are
being hired for is frequently unfilled. Companies with high employee longevity, on the
other hand, project a positive image that can be a strong draw to talent.

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In today’s hyper-competitive marketplace, the importance of employee retention is clear.
Savvy companies will take that knowledge and use it to drive engagement and retention
efforts that improve morale, drive productivity, and ultimately grow the company’s profits.
10. Reduced Stress and Burnout
Stress and burnout have reached critical levels across industries during the COVID-19
pandemic, with serious negative consequences for employees and companies. When
employee turnover spikes and positions sit unfilled, the employees who remain must
often pick up the slack. This increases burnout and can lead to negative health and
productivity consequences.
SCOPE
• Target your efforts.
Increase the impact of your retention efforts by targeting key areas. It may not be advantageous
or even necessary to retain everyone in your organization. If you have limited time and
resources, it’s important to first identify, and then focus your efforts on, mission-critical jobs,
hard-to-replace individuals and positions, individuals with critical “future” skills, and all jobs
within key business units.
• Increase productivity first.
Get targeted workers to be more productive while they are still on the job.
• Minimize the impact.

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Develop processes to minimize the economic impact when employees do actually leave. For
example, have a “backfill” person for every key position.
• Reward high retention.
Develop a process to reward managers who have low top performer turnover rates.
• Increase the return rate.
Develop a process to get those who left to return some day. For example, start a boomerang
program to lure high performers into returning someday.
• Increase involuntary turnover.
Increase the turnover rate of low performers in order to increase overall productivity and reduce
the frustration of the top performers who have to work alongside them.
. Limitations of Employee Retention
Employee retention has several benefits to an organization. It can reduce organizational costs
while improving work quality with the help of experienced employees. However, it can pose
some problems as well.
Let’s take a look at the problems employee retention can cause:
1. Retaining Less-Qualified Employees
Employee retention is one of the important policies for an organization. When these policies
are not monitored properly, it can cost organizations dearly.
Not all employees are ready to grow along with the organization. Therefore, these
employees become liable for organizations. They cannot add much value to the organization
and can adversely affect the organization.
A good retention policy can solve this problem. In this policy, managers can include certain
metrics to retain valuable employees.

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2. Groupism
Retention can influence employees to overestimate their worth and shift power to the wrong
hands. As a result, the work quality and workflow impact a lot.
With overestimating the worth, it can create micro-groups between employees that can hamper
the balance in the workplace. It can make other employees feel insecure and shift employee
dynamics in the wrong direction.
It is important to clarify why an employee was retained in the first place. It will give them a
sense of self-worth and end groupism.
3. Toxicity in Work Environment
Office culture is an important aspect of any organization. Without good retention policies, it
can hamper this culture.
In some instances, retention can demand more privileges than they deserve. It can create certain
problems and divide employees into several subgroups. It can initiate toxicity in the workplace
easily.
This problem can be solved by retaining employees who intend to add positive energy to the
workplace rather than introducing toxicity.
4. Affecting Workplace Productivity
When organizations fail to develop proper policies for retaining employees, it can severely
impact the productivity of the workplace. It can give the employees a false sense of justification
for the wrong reasons and stop their growth.
Without proper professional development, the employees may lose their productivity. As a
result, the whole organization suffers to achieve success. It reduces the overall productivity of
the workplace.
Different recognition programs can help solve this problem. With these programs, employees
can clearly understand why they are appreciated in the workplace. It encourages them to keep
up the good work and increase productivity in the organization.
3 SIGNIFICANCE OF EMPLOYEE RETENTION

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1. Hiring is not an easy process: The HR Professional shortlists few individuals from a
large pool of talent, conducts preliminary interviews and eventually forwards it to the
respective line managers who further grill them to judge whether they are fit for the
organization or not. Recruiting the right candidate is a time-consuming process.
2. An organization invests time and money in grooming an individual and make him
ready to work and understand the corporate culture: A new jinnee is completely
raw and the management really has to work hard to train him for his overall
development. It is a complete wastage of time and money when an individual leaves an
organization all of a sudden. The HR has to start the recruitment process all over again
for the same vacancy a mere duplication of work. Finding a right employee for an
organization is a tedious job and all efforts simply go waste when the employee leaves.
3. When an individual resigns from his present organization. it is more likely that he
Join the competitors: In such cases, employees tend to take all the strategies, polices
from the current organization to the new one. Individuals take all the important data,
information and statistics to their new organization and in some cases e the previous
organization. To avoid such cases, it is essential that the new joiner is made to sign a
document which stops him from passing on any intonation even if he leaves the
organization. Strict policy should be made which prevents the employees join the
competitors, this is an effective way to retain the employees
4. The employees working for a longer period of time are more familiar with the
company's policies, guidelines and thus they adjust better: They perform better than
individuals who change jobs frequently. Employees who spend considerable time in an
organization know the organization in and out and thus are in a posit on to contribute
effectively.
5. Every individual needs time to adjust with others: One needs time to know his team
members well, be friendly with them and eventually trust them Organizations are
always benefited when the employees are compatible with each other and discuss things
among themselves to come out with something beneficial for all. When a new
individual replaces an existing employee. adjustment problems crop up. Individuals
find it really difficult to establish a comfort level with the other person. After striking a
rapport with an existing employee. it is a challenge lor the employees to adjust with

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someone new and most importantly trust him. It is a human tendency to compare a new
joinee with the previous employees and always find faults in him.
6. It has been observed that individuals sticking to an organization for a longer span
are more loyal towards the management and the organization: They enjoy all kinds
of benefits from the organization and as a result are more attached to it. They hardly
badmouth their organization and always think in favor of the management. For them
the organization comes first and all other things later
7. It is essential for the organization to retain the valuable employees showing
potential: Every organization needs hardworking and talented employees who can
really come out with something creative and different. No organization can survive it
all the top performers quit. It is essential for the organization to retain those employees
who really work hard and are indispensable for the system.
Project Rationale and Goals
. To Reduce Turnover Hassles
Employee turnover costs a company not only in terms of money, but also time and
productivity. Replacing people means hours spent in hiring and training, which also
becomes cumbersome for existing employees. It becomes even more difficult when it
comes to replacing senior-level executives, sometimes the cost of turnover reaching 213%
of a CEO’s salary to replace such employees! Thus, to replace highly educated or skilled
employees, is a risky and costly task, and it often takes a substantial amount of time to
make up for these huge losses.
To Reduce Acquisition and Training Time
It is no secret that hiring the right employees can go a long way in bringing all-round profits
for any company. While dedicated workers can take the company to new heights meeting
collective objectives, wrong fits can cause the company a ton in terms of both monetary
and human resources. Training an employee to meet the job description is not an easy
task, and usually takes a lot of effort back and forth between the trainer and the trainee. It

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is a much easier and safer option to keep existing employees satisfied, than to spend
precious company time in acquiring new ones.
To Improve Employee Morale
Employee satisfaction rates are directly connected to the success of a company, however
small or large. An office is not just a cubicle with no communication with the outside world
but is rather a breeding ground for young friendships and good life experience. Seeing
one’s colleagues get regularly replaced not only comes off as a personal loss to employees
but makes them question their own security in the distant future. Team dynamics also
change, and it usually takes months for team members to build a rapport that would bring
them up to speed with productivity again. Disruption in communication between employees
thus renders a huge hit to both productivity and employee morale.
To achieve Increased Employee Productivity
By now, it is clear that employee retention can be one of the best ways to ensure that a
company continues to grow. A successful retention scheme can also be a fundamental
way of ensuring effective employee engagement. A long-drawn association with a
company ensures that employees know its nooks and crannies, and can contribute to it
wholeheartedly, often going the extra mile for achieving the business objective.
On the other hand, employee retention challenges occur when experienced employees
leave, they also take away essential expertise and mechanisms that they learned from the
company. This could pose a threat from another company offering competitive salary, and
could also lead to a loss of loyal customers in the long run.
To achieve Improved Customer Experiences
Keeping in mind the bigger picture, employee retention becomes essential in order to
ensure customer satisfaction. One study has found that improved customer relations can
boost a company’s sales by almost 20%. Apart from this, experienced employees have
better knowledge and skills to deal with customers they have a long association with, thus
decreasing time spent in problem solving. In customer-oriented businesses, the
replacement of employees could incur huge losses to the company. The easiest way for
this to take place is through the direct communication between a customer and a
disgruntled employee. Unhappy employees could partake in cutting corners, or rude
behaviour, causing harm not only to sale numbers, but also to the company name at large.
Increased company pride
Employees who stay at a company for a long period of time are also more likely to feel a
bond with the business and its culture. When the company succeeds due to a project in
which the worker took part, he is more likely to feel pride, and his morale will improve. This
morale can be infectious, and older employees can even motivate new employees to want
to stay a long time, which can start increasing retention as well.

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When employees do not stay long enough to feel this sense of connection and pride in the
business, morale suffers and affects other employees, including those who have been
there for years and those who were only recently hired.
Improved customer experiences
Employees with low morale can also cause customers to become dissatisfied. The most
obvious cause of this dissatisfaction is due to direct communication between customers
and discontented employees who provide poor customer service. Happy and engaged
employees are more likely to pass those feelings on to customers when they interact with
one another. These employees are more likely to be polite and pleasant as well as to go
the extra mile to solve a customer's problems.
In fact, one study found that engaged employees can improve customer relationships
enough to improve sales by 20%. Beyond this, having employees who have been helping
customers for a longer period of time means you'll have people with more experience. This
means they can solve issues faster and can often handle complex problems that new
employees would be unable to tackle on their own.
Increased employee productivity
High turnover results in lost productivity related to the position going unfilled and the time
it takes for a new employee to get back up to speed. In fact, studies say it can take a new
employee one to two years to reach the same level of productivity as the experienced
employee he replaced. A lack of relationships and established communication further
reduces a new employee's productivity.
There are other losses in productivity as well, including the previously mentioned lost
morale that results in reduced productivity. Beyond that, employees who have to take on
the responsibilities of an open position until it gets filled will lose productivity both when it
comes to completing their own work and in attempting to do the work of a position with
which they are not experienced. If they work overtime to handle these extra duties, they
are likely to suffer from burnout, which could go on even after a new employee is hired.
More employee innovation
In order to come up with new ideas that will improve the products or services of a business
or to streamline the workflow processes of a company, an employee must first be familiar
with those products, services and workflow. Unfortunately, in companies with high turnover
rates, employees may never get sufficiently familiar with these things in order to offer
suggestions that will improve things.
By increasing employee retention, your company may end up giving employees the
knowledge and experience necessary to come up with innovations that could reduce costs
or increase profits.

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Employee retention research
Once you recognize the importance of employee retention, the next step is to improve your
own company's retention rates. In order to do this, you first should do a little research into
why employees are leaving your company in the first place.
You can do this through exit interviews, reviewing employee resignation letters or, if
workers are leaving without giving notice (a particularly problematic form of turnover), you
might even try asking co-workers who knew them. This research is critical because you
cannot create a plan to improve employee retention if you do not know why they are
leaving.
RECOMMENDATIONS
• The company should provide Rewards and Recognition to the employees.
• The company should also develop their infrastructure facility of their organization.
• The company want to change their work schedule and policies of their organization
• The company want to change their work schedule and policies of their organization.
• The company should provide job security and statutory benefits to their employees.
• The company want to reduce their employee retention problem and provide promotion
offers to their employees
• The company should provide better motivations to the employees. So that improves the
satisfaction of the employees.
• The company should maintain a good relationship with the employees that help to
improve their production.
• The company should provide training programs for their employees.
• The company should provide career opportunities to the employees.

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CONCLUSION
Retention is an important concept that has been receiving considerable attention from
academicians, researchers and practicing HR managers. In its essence, Retention comprises
important elements such as the need or content, search and choice of strategies, goal-directed
behaviour, social comparison of rewards reinforcement, and performance-satisfaction. The
increasing attention paid towards Retention is justified because of several reasons. Motivated
employees come out with new ways of doing jobs. They are quality oriented. They are more
productive.
Any technology needs motivated employees to adopt it successfully. Several approaches to
Retention are available. Early theories are too simplistic in their approach towards Retention. For
example, advocates of scientific Management believe that money is the motivating factor. The
Human Relations Movement posits that social contacts will motivate workers. Mere knowledge
about the theories of Retention will not help manage their subordinates. They need to have
certain techniques that help them change the behaviour of employees. One such technique is
reward. Reward, particularly money, is a motivator according to need-based and process theories
of Retention. For the behavioural scientists, however, money is not important as a motivator.
Whatever may be the arguments, it can be stated that money can influence some people in certain
circumstance. Being an outgrowth of Herzberg’s, two factor theory of Retention, job enrichment
is considered to be a powerful motivator. An enriched job has added responsibilities. The makes
the job interesting and rewarding. Job enlargement refers to adding a few more task elements
horizontally. Task variety helps motivate job holders. Job rotation involves shifting an incumbent
from one job to another.
The outcome of the study is expected to help the HR Managers of minimizing the attrition
rate by developing effective retention strategies specific to their respective unit. Because
Employees comprise the most vital assets of the company. In a workplace where employees
are not able to use their full potential and not heard and valued, they are likely to leave
because of stress and frustration.
They need transparent work environment to work in. In a transparent environment where
employees get a sense of achievement and belongingness, where they can best utilize their
potential and realize the ir skills. They love to be the essential part of such organization and
the company is benefitted with a stronger, reliable workforce harboring bright new ideas for
its growth.

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Bibliography
www.google.com
www.wikipedia.com
www.99corporates.com
www.sarvothamcare.com
www.recognizeapp.com
www.managementstudyguide.com
www.businessleadership.com
www.indeed.com
www.quantumworkplace.com
www.netsuite.com