HOW TO RETAIN HIGHHOW TO RETAIN HIGH
POTENTIAL EMPLOYEES INPOTENTIAL EMPLOYEES IN
NATIONAL FOODSNATIONAL FOODS
Aziza Faryal Naseem
Areeb Ahmed Malick
S.M Asad Hussain
Sir Mumtaz KhanSir Mumtaz Khan
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Table of Contents
2. Introduction ………………………………………………………….4
a. Background of the Study…………………………………..4
b. Problem Statement………………………………………….5
c. Objectives of the study……………………………………..5
d. Scope of Study………………………………………………6
e. Research Methodology……………………………………..6
3. Literature Review…………………………………………………….7
9. Bibliography ………………………………………………………..20
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First of all we would like to thanks Almighty Allah who helped us for successful
completion of our research work. The researchers would like to thank Mr. Furqan Safavi,
who patiently answered all the queries and whose continuous support and guidance
throughout the semester helped in the successful completion of this research study.
The researchers would also like to thank all HIPO’s of National Foods Ltd. who took
time out of their busy schedules and without their help the completion of this study would
have been impossible. K,j
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With the changing times, the world of employment has changed too. Just a few
decades ago, a person would hold just one job their entire lives and that would
be it, but with the changing times, people are looking for change and progress a
every point of their lives. Employee retention is a process in which the employees
are encouraged to remain with the organization for the maximum period of time
or until the completion of the project. Employee retention is beneficial for the
organization as well as the employees.
Employees today are different. They are not the ones who don’t have good
opportunities in hand. As soon as they feel dissatisfied with the current employer
or the job, they switch over to the next job. It is the responsibility of the employer
to retain their best employees. In such a scenario, it has become important for
companies to think about how to retain employees. Retention of employees is
quite important today, because good employees are getting poached almost
every day today.
High Potentials are among the most positive employees. High-potential
employees are catalysts in the workplace. They have a collection of qualities that
influence the employees around them in positive ways. HIPO’s often view their
company’s policies, procedures and actions as fair. They rate job autonomy, pay,
career and rewards more favorably than other employees; and report feeling
more involved with and respected by the company and its leaders.
Top employees typically produce up to 12 times what the average employee
1.1 Importance of study with company background & current
National Foods was founded in 1970 and started out as a Spice company. As we
all know 3 decades later it has diversified into a versatile Food Company with
over 110 products and 165 and above SKUs (Stock Keeping Unit) for the
domestic market and over 100 different products for the international markets.
The vision to see National Foods as a professionally managed Human Resource
company, set more then 7 years ago, was realized by transforming a local
company into a very dynamic and progressive management structure in line with
National Foods – Facts & Figures
37 years of innovation
Rs. 3 billion in sales
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300 product SKUs
6 manufacturing units (Karachi, Bin Qasim, Lahore)
Central Warehousing (Lahore, Gujranwala, Multan, Islamabad)
Rs. 1 million to the economy everyday in shape of taxes
350 towns covered across Pakistan
Annualized Growth Rate of 23% for the last 35 years
Mentioned above facts and figures about the continuous innovation and growth
of National Foods clearly and the number of employees currently employed
describes the importance of retention of High Potential employees in the
National Foods Vision of becoming 50 Billion organization in food industry in
2020 can be achieved with the retention of there High Potential skilled
employees in company but it can also cause a deadly loss if the turn over ratio
increases per year not in terms of money but also in terms of time and
development cause to find the right people for the job.
1.2 Problem Statement:
The Researchers are to find “How to Retain High Potential Employees in
2- Objective of Study:
Our objectives of study are as follows:
• Identify why people stay and why others leave.
• Is there any particular reasons or good offers that employees are
• Perception of employees on the issue.
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• To find out the ways to retain high potential employees in national foods.
Our basic objective of the study is to discover the solution of this problem which
will help National Foods to achieving their Vision of 2020 by retaining their high
2.1 Scope of Study:
The scope of our study is limited to the employees where we are looking for
the employers’ perspective to research on the issue and generate a solution
of the problem. Due to time constraint, interviews will be conducted from
3- Research Methodology:
The research is Qualitative in nature and is based on the data gathered through
both secondary and primary sources.
3.1 Primary Resources:
We will be conducting interviews with the help of questionnaire from employees
and company officials on there views regarding their job. A questionnaire will be
use and will comprise of 15 open-ended and closed-ended questions to be
formulated. The questionnaire will cover employee retention information within
the impact of such matter on company growth respectively. Some questions for
this instrument will be based on investigative and others will be drawn from the
interviews. A five point rating scale compatible with existing employees’ survey is
being designed. For Instance the questions which will include in the
questionnaire are as follows:
1- My input is valued by the company and acted upon.
1- Strongly Disagree 2- Disagree 3- Agree 4- Strongly Agree 5- Inappropriate
2- The promotions process within the company is easily understood.
1- Strongly Disagree 2- Disagree 3- Agree 4- Strongly Agree 5- Inappropriate
3- Have (or have had) good opportunities for career development.
1- Strongly Disagree 2- Disagree 3- Agree 4- Strongly Agree 5- Inappropriate
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3.2 Secondary Resources:
With the help of results of employee satisfaction survey in National Foods data,
the ratio of employee turn over and views shared by company officials and others
will be analyzed.
3.3 Sample Frame:
High potential employees of BIN Qasim unit and Site are taken as sample.
3.4 Sample Size & Procedure:
In-depth interviews of employees from different departments
Equal sample would be taken under assessment. Because it is a qualitative
research we will consider small sample size of high potential employees.
Sample size: Approximately 1-3 from each department
Total sample size: Approximately 20-25 employees
3.5 Sampling method:
Convenience sampling method would be used. Sample unit would be high
potential employees. The research will be restricted to Karachi only.
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Employee retention is commonly considered to mean the ability to maintain a
stable workforce. It is often linked to morale and to organizational productivity.
According to the HR Priorities survey from ORC Worldwide (www.orcworld.com),
an HR consulting and data firm, nearly 62 percent of respondents to their survey
opined that talent management will be the most pressing strategic issue they
face in year.
Retention has emerged as the focus of much time and attention in recent years,
particularly as part of talent management programs, and so much is known about
it that the HR practitioner who tries to integrate it into a talent program may grow
bewildered by the huge volume of research about it (see Buenger, 2006; Deloitte,
2005; Gallagher, Nadarajah, & Pinnuck, 2006; Jenkins, 2006; Law, 2003; Maria-
Luisa, 2004; Michaels, Handfield-Jones, & Axelrod, 2001; Snow, 1976; Oakes,
2006; Rappaport, Bancroft, & Okum, 2003; Rothberg, 2007; Rubin & Brown,
1975; Walsh, 1988; Walsh, 1989).
Turnover is important because it costs the organization money in direct expenses
to recruit and train new hires and in indirect expenses to pay overtime for
remaining workers, when necessary, and in opportunity costs of lost production.
Some research links company profitability to turnover measures (IBM Business
Consulting Services' Human Capital Management, 2005). Turnover rates are
commonly regarded as a simple measure of employee morale and workplace
climate. Hence, reducing voluntary turnover—and particularly critical turnover—
Is one important foundation of talent management.
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It is important when conducting studies of why people stay to distinguish between
the reasons why high potentials stay and why other groups of workers stay. The
reason is that high potential workers may stay with an organization for reasons
different from their lower-potential counterparts. If so, then pinpointing their
reasons for staying will be helpful in intensifying a climate for retention of high
potentials and attracting other, similar people
Some of the clients of HR Assets Solutions Inc. a Toronto based human
resources consulting asked this question as well. How to retain top performers
after the recession ends. To address their fears and to provide creditable solution
based on their industry specific experience the consulting company asked the
question at the forum of "Focus" in April 2010. This generated several comments
and solutions from around the world. These concerns were partly supported by
evidence from The Conference Board report published in January 2010 that U.S.
job satisfaction was at its lowest in two decades. This revelation from the U.S. job
satisfaction survey was the first in a series of signs that led to significant
downward trend in employee engagement and morale.
The May 2010 edition of the Harvard Business Review feature article "How To
Keep Your Top Talent" by Jean Martin and Conrad Schmidt, identified six
mistakes companies are doing in the management of their high potential
According to another research:
• Over 50% of the people recruited in to an organization will leave within two
• One in four people recruited will leave within six months.
• Nearly 70% of organizations report that staff turnover has a negative
• Nearly 70% of organizations report having difficulties in replacing staff.
• Approximately 50% of organizations experience regular problems with
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A solid retention strategy begins long before individual members of staff join an
organization. The image an organization portrays and how attractive it is to
potential employees is crucial. Understanding why employees leave and asking
why some people do not want to work for your business or reject your job offers
is a useful starting point in trying to determine whether your organization has a
staff retention problem.
4- Data Analysis and Evaluation:
We review the questionnaire returned and prepare a report listing the reasons we
identify for high potential employ turnover. This will improve the timeliness in
resolving this issue, it will also consist the frequency and category percentage for
each question. Visual display of data is in bar chart/ histogram form.
The open ended questions is summarized and reported by textual analysis. Each
response is coded using themes that were drawn from the answers.
Following graphs are made by reviewing the questionnaire we filled from HIPO’s.
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Do you Recommend NFL to a friend?
Analysis of Questionnaire:
We asked twelve questions both open and close ended from the Hipo’s. The
above graphs are made from the analysis of close ended questions. Most of the
high potential employees expressed same for the questions asked.
Many of them expressed different views regarding remain employed with NFL. In
a nutshell the emphasize was on career development and individual growth in
the organization. Also the vision and goals given are smart enough to give
The working part HIPO’s enjoy most in the NFL are team work,
environment/culture, professional and innovative big projects.
The challenges they faced in NFL while working are the new standards and
quality implementation of new system software’s and also to deal with changes In
While answering to the question what to change in order to make NFL a better
place, the emphasized on compensation plans, and involvement of middle
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management employees while making changes in policies and give benefits
equal as compared with other companies in the same industry.
Analysis of Interview:
We took in-depth interviews of HIPO’s in order to know the thinking of them
regarding their employment with NFL to know the reason why people leave, and
why should they stay with NFL. The interview shows that the HIPO’s listed by
NFL are either newly employed or working for two to three years in NFL except
few of them.
These Hipo’s are very much motivated and experienced enough, that they can
easily moved to the other organization in the same or other industry as we think
from the analysis, and if they left NFL it would be a loss not in monetary terms
but also in other terms to NFL.
We also identify that in the HIPO’s list one or two of them should not include in
HIPO’s although they are experienced but still they can not be included in the list.
The most important reason to stay in NFL as we identify is that NFL’s vision and
the mission to entered in global competitive market and brand oriented give them
the learning opportunity and career development opportunities. Also in few of the
department they can take decision. Which they can’t take in MNC’s because the
decision making is restricted to the top management only, there involvement in
the work and the flexibility of working hour and work load are also the reason to
be remain employed.
Another reason is that the communication in NFL is easily approachable; they
can discuss matter with their immediate heads of the departments. This thing in
other organization is not the same. Mainly in the MNC’s there is too much
restriction to communicate with the top management, due to certain policies.
The training and development opportunities in NFL are an attractive part for
them. The new implementation of ERP system also increases there knowledge
and adds value to there experience.
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After the analysis from the interviews and review of the questionnaire tool we
used to solve the research problem, we give following recommendation:
• Focus on Career Development:
High potential employees always have other opportunities. NFL must consider
developing a retention strategy for HIPO’S that includes astron career
development focus. Give them special projects, tasks and make sure that they
are taking advantage of training and development opportunities.
• Involvement in Solutions:
HIPO’s want to make a difference and they can.NFL should Involve them in
situations as a partner where they can contribute for the solutions.
• Compensation concerns:
NFL must need to consider what HIPO think if they are staying in the company
ensures the rewards (loyalty bonus etc.) accordingly and dialog with them on
• Leave some room for Error:
NFL must give assignments, tasks to their HIPO’s where success is not only
assured. Give them tasks where they pushed to work out of their comfort zones
and allow them to develop new skills will play a key role in HIPO’s retention.
• HIPO’s Reward Program:
NFL can make a provision of quarterly or bi-annually awards for the best
employee. This award can be in terms of gift, souvenir, or money.
If it is money divide it into two parts first part will be given to the next months
salary and second after six months which can assure the retention of him/her.
• HIPO’s Recreation:
NFL should also let their HIPO’s enjoy in a light mood. The HR department can
make a plan to take them on trip bi-annually and use this trip for the management
upcoming plans and strategies and their views. At the same time involvement of
the top management in the activities will make assure that they are close to their
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• Risk Analysis:
NFL must establish by looking at the likelihood and consequences of resignation,
to what extent they have HIPO’s in the danger zone. NFL should target on those
who are most likely to leave and those whose departure would have most serious
business consequences. Prevention is better than cure.
• Corporate Entrepreneurship:
It is important for NFL to keep, or instill the entrepreneurial spirit in order to
innovate and grow and become brand oriented. By ensuring HIPO’s as corporate
entrepreneurs, will strongly play a vital role in future for the retention of them till a
In the end we conclude that traditional views of HIOPO’s retention are no longer
appropriate. It is not possible to offer long-term employment for all, and long
service does not equal commitment and loyalty. Rather than spending on
recruiting and retain, instead attract, retain, induct, develop, reward, and retain
them. There are no fix solutions for HIPO’s retention, but the problem can be
resolved by effort, planning, awareness, and the analysis. Still keeping HIPO’s is
a great challenge.
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Code of Research Ethics:
The purpose of this code of ethics is to establish a set of principles and
procedures to guide the researchers to achieve the goals and objectives of this
research project. The code outlines the obligations of each of the researcher
through all of the phases of the project, from the design of the research through
to the publication and communication of the experiences of the project report.
(a) The researchers will work cooperatively and collaboratively in the design,
implementation, analysis, interpretation, conclusion, reporting and publication of
the experiences of the research project.
(b) Written permission must be obtained from the company before beginning the
(c) The confidentiality of all individuals must be respected. If necessary, the
employees involved may choose to remain anonymous when reporting the
(d) The activities organized by the project should ensure that the data collection
process is in accord with the host company values and norms, and competent
(e) Company Officials can communicate with researchers during all phases of the
(f) Company official can participate in all phases of the research project; review
all research results, analyses and interpretations for accuracy and present
information to the solution of problem.
(g) All aspects of the project can be considered as worthy of communication. All
communication pertaining to the research project will follow generally accepted
ethical standards which includes Anonymity, Confidentiality, and Respect.
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• Abrar Hasan (Chief Executive March 2, 2007 ) National Foods – A
Success Story ‘A Pakistan’s Case Study’.
• Human Resources Magazine, “End ‘Equal Treatment’ Today! Focus On
• Avery, D. (2002). Recruiting for retention. Unpublished SHRM white
paper. Retrieved January 22, 2006, from http://www.shrm.org/
• Buenger, V. (2006). Talent management systems: best practices in
technology solutions for recruitment, retention and workforce planning.
Human Resource Management, 45 (2), 279.
• Deloitte (2005). Becoming a magnet for talent. Global talent pulse survey
results 2005. 1-12. Retrieved April 3, 2007, from
• Eisenberg, B., Kilduff, C., Burleigh, S., & Wilson, K. (2002). The role of
the value proposition and employment branding in retaining top talent.
Unpublished SHRM white paper. Retrieved January 22, 2006,
from http://www.shrm.org/hrresources/whit...0380.asp#P-4_0 Gallagher,
D. R., Nadarajah, P., & Pinnuck, M. (2006). Top management turnover:
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This Employee retention questionnaire will be used to extract specific information
regarding your employment experience with the National Foods Ltd and for the
Research work. We are interested in your thoughts and value your opinions.
The information will be used to help in our research to identify areas needed for
improvement, analyze factors attributing to turnover & to improve future
The information you will share with us will remain confidential regarding any
feedback you provide. Your time in completing this short questionnaire is greatly
1-WHY have you chosen to remain employed with the National Foods
Check All that Apply
• Career advancement opportunities
• Challenging work
• Employee benefits
• Less travel
• Other __________________________________
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Employee Name (Optional)
Years of Service
Years of Service in Current Position
2-PLEASE provide additional information regarding your reasons for
continuing to stay with the organization:
3-PLEASE rate the following items regarding your employment with
the National Foods Ltd.:
4-PLEASE rate the following statements regarding supervision
Always Usually Sometimes Never
• Sets clear goals/performance expectations
• Distributes workload equitably
• Provides information needed to perform job
• Recognizes employees for their achievements
• Welcomes suggestions and encourages
• Is accessible/approachable
• Addresses problems promptly
• Is trustworthy
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Excellent Good Fair Poor
• Positive work environment (relationships, values and
• Equitable compensation
• Appropriate balance of work/life issues
• Flexibility in work schedule/telecommuting
• Training & Development/educational opportunities
• On-the-job training and developmental experiences
• Opportunities for advancement
• Appropriate resources and equipment to perform the
• Promoted diversity
5-PLEASE rate the following statements regarding the leadership of
the National Foods Ltd:
Always Usually Sometimes Never
• Sets clear goals/objectives for the organization
• Encourages cooperation and teamwork among
• Values employee contributions
• Makes an effort to hear employee concerns
• Is responsive to known employee concerns
• Encourages open communication
• Treats employees with respect
6-WHAT do you enjoy most about working with the National Foods
7-WHAT has been your greatest challenge working here?
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8-WHAT would you do to make the National Foods a better place to
9-HOW would your work help to achieve the vision in year 2020 of
National Foods Ltd.?
10- WHAT do you think about employee benefits and policies of
National Foods Ltd.?
11-WOULD you recommend the NFL to a friend?
12-IF you left would you return to the National Foods Ltd?
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