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1. ATTRACTING &
RETAINING EMPLOYEES
By
Ms Jatinder Peters, GM(HR) and Head
Coordination ONGC,New Delhi
Microsoft Leadership Conclave

2. GLOBALIZATION AND THE INDIAN
ECONOMY
 India was a traditionally managed, protected
economy where industrial growth was largely
fueled by the government sector.
 1991-92: first spate of economic liberalisation
 Process of adjustment to the free-market
economy has been through ups and downs

3. STRATEGIES DEPLOYED IN
GOING GLOBAL
 Organic and inorganic growth
 Adding an export component
 Moving up the value chain
 Creating niche markets
 Searching for new markets
 Global supply chaining
 Bringing foreign direct investment

4. RESEARCH ON GOING GLOBAL
 CEO‟s indicate for going Global following
important:
1. Markets
2. Manpower
3. Technology
4. Quality Management Systems
5. Governance and Ethics
6. Risk Management
7. Management of Change and Organization
culture

5. CEO‟S EXPECTATIONS
 Manpower
 Training for global mindset
 Talent management and retention strategies
 Global compensation strategies
 Insights into work ethics of different countries
 Competencies development
 Soft skills and domain knowledge training
 Diversity management strategies and training
 Social sensitivity training

6. HR ACTIONS FOR GLOBAL GOING
 HR Planning and
Forecasting
 Location Planning
 Job Analysis/Job
Redesign
 Attraction &
Selection
 Training &
Development
 Performance
Management
 Compensation
 Retention
 Reduction/Removal

7. BulliesAreEverywhere

8. DIFFERENT FOLKS-DIFFERENT STROKES

9. KNOWLEDGE WORKERS
 Increasing amount of “knowledge work” requires
increasing number of “knowledge workers”
 Require special skills gained via extensive
schooling and training and have a heavy impact
on the success of the company
 Responsible for “tacit interactions”
 Rely on judgment, knowledge and context
 60% of US labor force engaged in tacit interactions
 But increasingly more jobs (positions) will require
judgment and knowledge (“talent”), thus
http://www.mckinsey.com/aboutus/mckinseynews/knowledge_economy.asp

10. WORKFORCE –THE CHANGING CAREER
PARADIGMS
OLD PARADIGMS
 Job Security
 Longitudinal Career Paths
 Job/Person Fit
 Organizational Loyalty
 Career Success
 Academic Degree
 Position/Title
 Full-Time Employment
 Retirement
 Single Jobs/Careers
 Change in jobs based on fear
 Promotion highly tenure based
NEW PARADIGMS
 Employability Security
 Alternate Career Paths
 Person/Organization Fit
 Job/Task Loyalty
 Work/Family Balance
 Continuous Relearning
 Competencies/Development
 Contract Employment
 Career Sabbaticals
 Multiple Jobs/Careers
 Change in jobs based on
growth
 Promotion highly performance
based

12. WAR FOR
TALENT
HOTTING
UP

13.  HUMAN RESOURCES ARE INDIA’S BIGGEST
ASSET.
 PROVIDE A UNIQUE COMPETITIVE
ADVANTAGE (WITH ABOUT 50% OF THE
POPULATION BELOW 25 YEARS OF AGE)
 TO CAPITALIZE, NEED TO ENSURE HIGH-
QUALITY EDUCATION AND APPROPRIATE
SKILL-SETS TO A LARGE NUMBER.
THE OPPORTUNITY FOR
INDIA

14. SUMMING UP
GENERAL WORKFORCE ISSUES
 AGING WORKFORCE
 RETIRING WORKFORCE
 REGIONAL IMBALANCES IN
WORKFORCE
 INDUSTRY-ACADEMIA MISMATCH
 PARADIGM SHIFT IN
EXPECTATIONS OF WORKFORCE
 ATTRITION OF WORKFORCE

15. MAJOR CONTEXTUAL FORCES
AFFECTING ATTRITION & RETENTION
AND SHAPERS OF HR POLICIES
 GLOBALIZATION: TRADE, FDI, POLITICAL &
ECONOMIC CONDITIONS, COMPETITION, CUSTOMERS,
WORKERS
 COMPETITIVE DYNAMICS: CONSOLIDATION,
MERGERS, ACQUISITIONS, JOINT VENTURES, EXPANSION,
RELOCATION
 DEMOGRAPHICS: AGE, GENERATIONS, REGIONS
 GLOBAL, REGIONALAND LOCAL
WORKFORCE CHARACTERISTICS:
COMPETENCIES, MOTIVATION, COMPENSATION
REQUIREMENTS, PRODUCTIVITY LEVELS, LEGAL
CONDITIONS
 CHANGING NATURE OF WORK: MORE
KNOWLEDGE AND ENGAGEMENT REQUIRED/USEFUL AT
ALL LEVELS

16. STRATEGIC EMPHASIS ON EMPLOYEE
RETENTION
 Retaining good employees is essential
for
 The competitive advantage from
developing a loyal workforce that
consistently excels
 Retaining employees reduces recruiting
expenses , provides workers with a sense
of security.

17. RETENTION VS TURNOVER
 Functional Retention
 Desirable employee
stays
 No intention to leave
 High Contribution
 Dysfunctional turnover
 Desirable employee
quits
 Intention to leave
 High Performance
 Dysfunctional
Retention
 Undesirable employee
stays
 No intention to leave
 Low performance
 Functional Turnover
 Undesirable employee
quits
 Intention to leave
 Low performance

18. RECOGNIZING PATHS TO VOLUNTARY
TURNOVER
It starts by asking the question
why do employees leave?

19. JOB SATISFACTION/ ENGAGEMENT
 The employee’s decision to leave begins with a
sense of low job satisfaction/Engagement.
 Job satisfaction represents a person’s emotional
feelings about his or her work. When work is
consistent with employees’ values and needs, job
satisfaction is likely to be high.

20. JOB SATISFACTION DIMENSIONS
 Job security
 Compensation
 People at work- colleagues , superiors, subordinates
 Job fulfillment
 Empowerment
 Company growth

21. Compensation-5th biggest factor affecting
Attrition in 2000
Insufficient career advancement opportunities
Better wealth-creation opportunity elsewhere
Don‟t feel valued by my company
Insufficient reward or recognition
Higher salary and benefits elsewhere
Insufficient development and learning
Interesting, exciting people elsewhere
Work not interesting or challenging enough
Unable to meet personal/family needs
Don‟t like the company culture
Insufficient feedback and coaching
Company‟s future uncertain or threatened
Change in my career goals
Little support for my initiatives
My supervisor is a low performer
Company has too many low performers
Job causes too much stress
69
67
65
65
64
57
57
55
55
47
44
44
38
38
36
34
34
(Source-Mckinsey Study-2000 of 35 Top Companies Worldwide)

22. HOW JOB SATISFACTION AFFECTS
TURNOVER
Source: Adapted from Peter W. Hom, Fanny Caranikas-Walker, Gregory E. Prussia, and Rodger W. Griffeth, ‘‘A
Meta-Analytical Structural Equations Analysis of a Model of Employee Turnover,’’ Journal of Applied Psychology
77 (1992): 905. Adapted with permission.

23. WHAT REDUCES TURNOVER
 Socialization in Organization
 Job Fit, growth opportunities
 Clear career paths
 Developmental opportunities(T&D,
Sabbaticals)
 Compensation(fair, competitive,
performance/skill related)
 Quick Grievance Redressal
 Sense of Belongingness

24. RETENTION STRATEGIES
Company Example: Novartis‟ Challenge with Retention in
China
 Situation: Novartis was typically hiring talented young
professionals in China who then started with low
productivity
 These employees underwent 12-18 months of training and
ended with high productivity
 But with the training and multinational experience they
moved to another company for salary/career advancement
 Novartis‟ solution: to offer stock grant programs with multi-
year investing periods. Also to offer long-term educational
support and flex-time for employees who remained with the
company.
 Result: Turnover decreased from 20.1% in 2006 to 17.6% in
2007

25. FUNCTIONAL EXCELLENCE AND
BUSINESS LEADERSHIP
Sr Leadership
Development
Programmes
Advanced
Management
Programmes
Unnati Prayas
Super Unnati Prayas
Multi-skilling ITI Certification Courses

26. STRATEGIES FOR RETENTION
 Two Way Communication
 Know your employees
 Make sure your employees know you
 Integrate solutions
 No knee jerk reactions
 Belongingness
 Integrate employees
 Encourage awareness of „culture‟
 Encourage awareness of limitations

27. KNOW ABOUT YOUR
EMPLOYEES
 Recognise and respond to diversity
 Recognise „vulnerable times‟ for drop-out
 Recognise characteristics of vulnerable
employees
Targeted support strategies (e.g. diagnostic
testing)
Generalised support strategies

28. IF THEY DON‟T DROP OUT…
WHERE DID IT ALL GO
RIGHT?

29. SUCCESSFUL RETENTION
STRATEGIES
Generous Care
Innovative
Sourcing
Thoughtful
Development
Re-employment of
Former employees
Tenure-
Engagement
Hiring Specialists
as Advisors and
Consultants
World Class Training /
e-learning
Work associations with Global
Operators
Stretch Assignments and
Global exposure
Dual Career Ladders
Best Social Security, Retiral and
Medical Benefits
Generous welfare measures
Comprehensive Education
Support to wards
Work-Life Balance Avenues