A study on_the_retention_issues_at_metlife_india_insurance_co
“A STUDY ON THE RETENTION ISSUES AT METLIFE INDIA INSURANCE Co.Ltd.”Project Report Submitted In Partial Fulfillment Of The Requirements Two Year Post Graduate Diploma In Business Administration. By (Bency Babu) Under the guidance of (Prof. Smitha Sharma) Mount Carmel Institute of Management Bangalore 560 052 2009-10
GUIDE CERTIFICATECertified that this dissertation is based on the original project study conducted by(Bency Babu) under my guidance. She has attended all the required guidancesessions held. This project report has not formed a basis for the award of any otherDegree/ Diploma of any University of Institution.(Prof Smitha Sharma)
ACKNOWLEDGEMENTSApart from the efforts of me, the success of any project depends largely on theencouragement and guidelines of many others. I take this opportunity to express mygratitude to the people who have been instrumental in the successful completion ofthis project.I would like to show my greatest appreciation to the Director of MCIM-Sr Albinafor providing me the opportunity to do the project and our college Dean(Academics)-Prof. Michael Noronha for the great support. I would also like to thank Professor-Smitha Sharma who has been of a greatsupport to me by providing me with required guidance and direction to carry onwith the project.In addition, my companies guide Mr. Purushothaman.k (Sr. Sales Manager) forproviding me the opportunity to work on this project. He always allowed me toencroach upon his precious time and showed his generosity by helping me carryingout my training smoothly.I also convey my thanks to all those who have knowingly or unknowingly helpedme to give this report a realistic dimension.
LIST OF CONTENTS: SR NO: CONTENTS PAGE NO: CHAPTER 11.1 Introduction 91.2 Employee retention 10 CHAPTER 22.1 Introduction 172.2 Statement of the Problem2.3 Scope of the Study2.4 Objectives of the study2.5 Operational Definitions2.6 Methodology2.7 Tools and Techniques2.8 Limitation2.9 Overview CHAPTER 33.1 History3.2 Functional structure3.3 Organization Structure3.4 SWOT Analysis188.8.131.52 CHAPTER 4
4.1 Analysis and Interpretation CHAPTER 55.1 Summary of Findings, Conclusions and suggestionsBibliographyAnnexure
CHAPTER 1: HUMAN RESOURCE MANAGEMENT1.1 INTRODUCTION
Human resource management (HRM) is the strategic and coherent approach tothe of management an organizations most valued assets - the people working therewho individually and collectively contribute to the achievement of the objectives ofthe business. The terms "human resource management" and "human resources"(HR) have largely replaced the term "personnel management" as a description ofthe processes involved in managing people in organizations. Human Resourcemanagement is evolving rapidly. Human resource management is both an academictheory and a business practice that addresses the theoretical and practicaltechniques of managing a workforce.The Human Resources Management (HRM) function includes a variety ofactivities, and key among them is deciding what staffing needs you have andwhether to use independent contractors or hire employees to fill these needs,recruiting and training the best employees, ensuring they are high performers,dealing with performance issues, and ensuring your personnel and managementpractices conform to various regulations. Activities also include managing yourapproach to employee benefits and compensation, employee records and personnelpolicies. Usually small businesses (for-profit or nonprofit) have to carry out theseactivities themselves because they cant yet afford part or full-time help. However,they should always ensure that employees have -- and are aware of -- personnelpolicies which conform to current regulations. These policies are often in the formof employee manuals, which all employees have1.2 Employee Retention:
Effective employee retention is a systematic effort by employers to create andfoster and environment that encourages current employees to remain employed byhaving policies and practices in place that address their diverse needs.A strong retention strategy becomes a powerful recruitment tool. Retention of keyemployees is critical to the long-term health and success of any organization. It is aknown fact that retaining your best employees ensures customer satisfaction,increased product sales, satisfied colleagues and reporting staff, effectivesuccession planning and deeply imbedded organizational knowledge and learning.Employee retention matters as organizational issues such as training time andinvestment; lost knowledge; insecure employees and a costly candidate search areinvolved. Hence failing to retain a key employee is a costly proposition for anorganization. Various estimates suggest that losing a middle manager in mostorganizations costs up to five times of his salary.Intelligent employers always realize the importance of retaining the best talent.Retaining talent has never been so important in the Indian scenario; however,things have changed in recent years. In prominent Indian metros at least, there is nodearth of opportunities for the best in the business, or even for the second or thethird best. Retention of key employees and treating attrition troubles has never beenso important to companies.In an intensely competitive environment, where HR managers are poaching fromeach other, organizations can either hold on to their employees tight or lose them tocompetition. For gone are the days, when employees would stick to an employerfor years for want of a better choice. Now, opportunities abound.
It is a fact that, retention of key employees is critical to the long-term health andsuccess of any organisation. The performance of employees is often linked directlyto quality work, customer satisfaction, and increased product sales and even to theimage of a company.Whereas the same is often indirectly linked to, satisfied colleagues and reportingstaff, effective succession planning and deeply embedded organizationalknowledge and learning. Employee retention matters, as, organizational issues suchas training time and investment, costly candidate search etc., are involved. Hence,failing to retain a key employee is a costly proposition for any organisation.WHAT IS EMPLOYEE RETENTION?
The picture states the latest statement that corporate believes in “Love them or lose them”Employee Retention involves taking measures to encourage employees to remain inthe organization for the maximum period of time. Corporate is facing a lot ofproblems in employee retention these days. Hiring knowledgeable people for thejob is essential for an employer. But retention is even more important than hiring.There is no dearth of opportunities for a talented person. There are manyorganizations which are looking for such employees. If a person is not satisfied bythe job he’s doing, he may switch over to some other more suitable job.In today’s environment it becomes very important for organizations to retain theiremployees. The top organizations are on the top because they value theiremployees and they know how to keep them glued to the organization. Employeesstay and leave organizations for some reasons. The reason may be personal orprofessional. These reasons should be understood by the employer and should betaken care of. The organizations are becoming aware of these reasons and adoptingmany strategies for employee retention.1.3 IMPORTANCE OF EMPLOYEE RETENTION:Now that so much is being done by organizations to retain its employees, why isretention so important? Is it just to reduce the turnover costs? Well, the answer is adefinite no. It’s not only the cost incurred by a company that emphasizes the needof retaining employees but also the need to retain talented employees from gettingpoached.
The process of employee retention will benefit an organization in the followingways:1. The Cost of Turnover: The cost of employee turnover adds hundreds ofthousands of money to a companys expenses. While it is difficult to fully calculatethe cost of turnover (including hiring costs, training costs and productivity loss),industry experts often quote 25% of the average employee salary as a conservativeestimate.2. Loss of Company Knowledge: When an employee leaves, he takes with himvaluable knowledge about the company, customers, current projects and pasthistory (sometimes to competitors). Often much time and money has been spent onthe employee in expectation of a future return. When the employee leaves, theinvestment is not realized.3. Interruption of Customer Service: Customers and clients do business with acompany in part because of the people. Relationships are developed that encouragecontinued sponsorship of the business. When an employee leaves, the relationshipsthat employee built for the company are severed, which could lead to potentialcustomer loss.4. Turnover leads to more turnovers: When an employee terminates, the effect isfelt throughout the organization. Co-workers are often required to pick up the slack.The unspoken negativity often intensifies for the remaining staff.5. Goodwill of the company: The goodwill of a company is maintained when theattrition rates are low. Higher retention rates motivate potential employees to jointhe organization
.6. Regaining efficiency: If an employee resigns, then good amount of time is lostin hiring a new employee and then training him/her and this goes to the loss of thecompany directly which many a times goes unnoticed. And even after this youcannot assure us of the same efficiency from the new employee.1.4 WHAT MAKES EMPLOYEE LEAVES?Employees do not leave an organization without any significant reason. There arecertain circumstances that lead to their leaving the organization. The most commonreasons can be: Job is not what the employee expected to be: Sometimes the jobresponsibilities don’t come out to be same as expected by the candidates.Unexpected job responsibilities lead to job dissatisfaction.
1. Job and person mismatch: A candidate may be fit to do a certain type of jobwhich matches his personality. If he is given a job which mismatches hispersonality, then he won’t be able to perform it well and will try to find out reasonsto leave the job.2. No growth opportunities: No or less learning and growth opportunities in thecurrent job will make candidate’s job and career stagnant.3. Lack of appreciation: If the work is not appreciated by the supervisor, theemployee feels de-motivated and loses interest in job.4. Lack of trust and support in co-workers, seniors and management: Trust isthe most important factor that is required for an individual to stay in the job. Nonsupportive co-workers, seniors and management can make office environmentunfriendly and difficult to work in.5. Stress from overwork and work life imbalance: Job stress can lead to worklife imbalance which ultimately many times lead to employee leaving theorganization.6. Compensation: Better compensation packages being offered by other companiesmay attract employees towards themselves.
7. New job offer: An attractive job offer which an employee thinks is good for himwith respect to job responsibility, compensation, growth and learning etc. can leadan employee to leave the organization. CHAPTER 2
DESIGN OF THE STUDY2.1 INTRODUCTION:Employee retention is a process in which the employees are encouraged to remainwith the organization for the maximum period of time or until the completion of theproject. Employee retention is beneficial for the organization as well as theemployee.
Employees today are different. They are not the ones who don’t have goodopportunities in hand. As soon as they feel dissatisfied with the current employer orthe job, they switch over to the next job. It is the responsibility of the employer toretain their best employees. If they don’t, they would be left with no goodemployees. A good employer should know how to attract and retain its employees.Retention involves three major things: COMPENSATION SUPPORT GROWTH • Compensation:Compensation constitutes the largest part of the employee retention process. Theemployees always have high expectations regarding their compensation packages.Compensation packages vary from industry to industry. So an attractivecompensation package plays a critical role in retaining the employees.
Compensation includes salary and wages, bonuses, benefits, prerequisites, stockoptions, bonuses, vacations, etc. While setting up the packages, the followingcomponents should be kept in mind:Salary and monthly wage: It is the biggest component of the compensationpackage. It is also the most common factor of comparison among employees. Itincludes Basic wage House rent allowance Dearness allowance City compensatory allowanceSalary and wages represent the level of skill and experience an individual has. Timeto time increase in the salaries and wages of employees should be done. And thisincrease should be based on the employee’s performance and his contribution to theorganization.Bonus: Bonuses are usually given to the employees at the end of the year or on afestival.Economic benefits: It includes paid holidays, leave travel concession, etc.Long-term incentives: Long term incentives include stock options or stock grants.These incentives help retain employees in the organizations startup stage.Health insurance: Health insurance is a great benefit to the employees. It savesemployees money as well as gives them a peace of mind that they have somebodyto take care of them in bad times. It also shows the employee that the organizationcares about the employee and its family.
After retirement: It includes payments that an Employee gets after he retires likeEPF (Employee Provident Fund) etc.Miscellaneous compensation: It may include employee assistance programs (likepsychological counseling, legal assistance etc), discounts on company products, useof a company cars, etc. • Growth and CareerGrowth and development are the integral part of every individual’s career. If anemployee can not foresee his path of career development in his current
organization, there are chances that he’ll leave the organization as soon as he getsan opportunity.The important factors in employee growth that an employee looks for himself are:Work profile: The work profile on which the employee is working should be insync with his capabilities. The profile should not be too low or too high.Personal growth and dreams: Employees responsibilities in the organizationshould help him achieve his personal goals also. Organizations cannot keep asidethe individual goals of employees and foster organizations goals. Employees’priority is to work for them and later on comes the organization. If he’s not satisfiedwith his growth, he’ll not be able to contribute in organization growth.Training and development: Employees should be trained and given chance toimprove and enhance their skills. Many employers fear that if the employees arewell rained, they’ll leave the organization for better jobs. Organization should notlimit the resources on which organization’s success depends. These trainings can begiven to improve many skills like: Communications skills Technical skills In-house processes and procedures improvement related skills C or customer satisfaction related skills Special project related skillsNeed for such trainings can be recognized from individual performance reviews,individual meetings, employee satisfaction surveys and by being in constant touchwith the employees.
• SupportLack of support from management can sometimes serve as a reason for employeeretention. Supervisor should support his subordinates in a way so that each one ofthem is a success. Management should try to focus on its employees and supportthem not only in their difficult times at work but also through the times of personalcrisis.The feedback from supervisor helps the employee to feel more responsible,confident and empowered. Top management can also support its employees in theirpersonal crisis by providing personal loans during emergencies, childcare services,employee assistance programs, counseling services, et al.Employers can also support their employees by creating an environment of trustand inculcating the organizational values into employees. Thus employers cansupport their employees in a number of ways as follows: o By providing feedback o By giving recognition and rewards o By counseling them o By providing emotional support2.2 STATEMENT OF THE PROBLEM:Retention is the major concerning issue in many of the organizations today.Employee Retention involves taking measures to encourage employees to remain inthe organization for the maximum period of time. Corporate is facing a lot of
problems in employee retention these days. Hiring knowledgeable people for thejob is essential for an employer. But retention is even more important than hiring.There is no dearth of opportunities for a talented person. There are manyorganizations which are looking for such employees. If a person is not satisfied bythe job he’s doing, he may switch over to some other more suitable job. In today’senvironment it becomes very important for organizations to retain their employees.The top organizations are on the top because they value their employees and theyknow how to keep them glued to the organization. Employees stay and leaveorganizations for some reasons. Thus it is important to know the reasons to reduceattrition in the organisation.2.3 SCOPE OF STUDY:
The project limits to only 1 branch of MetLife in Bangalore and the project wasaccomplished with the complete support of all the printed materials required andthe information needed and a supportive staff.2.4 OBJECTIVES OF THE STUDY: • To study retention strategies implemented in MetLife • To analyze employee perception on retention strategies • To study factors which help in employee retention • To study the drawback of current strategy used • To develop new retention strategies2.5 OPERTIONAL DEFINATION OF CONCEPTS: i. CompensationCompensation constitutes the largest part of the employee retention process.
The employees always have high expectations regarding their compensationpackages.Compensation packages vary from industry to industry. So an attractivecompensation package plays a critical role in retaining the employees. ii. Attrition rate:Attrition rate/ churn rate is a measure of the number of individuals or items movinginto or out of a collection over a specific period.It is a reduction in the number of employees through retirement, resignation ordeath. Thus, we can see that attrition rate and retention rate are very closely relatedand loosely speaking attrition rate is inverse of retention rate.2.6 RESEARCH METHODOLOGY:RESEARCH DESIGN: An exploratory research design is used for the projectSAMPLE SIZE : 50 respondentsSAMPLE DESIGN :A Sample design is a definite plan for obtaining a sample from a given population.It is the procedure used by the researcher in selecting items for the sample. ThusStratified Random Sampling technique is used.2.7 TECHNIQUES OF DATA COLLECTION:
PRIMARY SOURCE:• Personal discussions with HR manager• QuestionnaireSECONDARY SOURCE:• Journals• Books• Websites (given in the annexure)2.8 LIMITATIONS: • One constraint has been regarding the cost, as study involves the collection of primary and secondary data. Therefore, the cost incurred was much more. • Another constraint has been geographical area, which is confined only to MetLife (M.G Road Branch.) • Normally employees hesitate to disclose the information.2.9 OVERVIEW OF THE CHAPTER SCHEME:
CHAPTER 1Introduction of the Research TopicCHAPTER 2Design of the StudyCHAPTER 3Profile of the CompanyCHAPTER 4Analysis and InterpretationCHAPTER 5Summary of Findings, Conclusions and Suggestions
3.1 HISTORY:MetLife: A Fortune 500 company in India. The Metropolitan Life InsuranceCompany (MetLife ®), established in1868, is one of the largest insurers in the US,with over US$ 2.4 trillion of life insurance. MetLife serves approximately 10million individual households in the US as well as 88 of the Fortune 100companies. MetLife’s institutional clients have approximately 33 millionemployees and members. MetLife India Life Insurance Company Private Limitedwas incorporated in India in 2001 as a joint venture between MetLife InternationalHoldings Inc., The Jammu and Kashmir Bank, M. Palling and Co. Pvt. Ltd. andother private investors. MetLife India has developed and distributes a range of lifeinsurance products in India.MetLife India is headquartered in Bangalore with offices and presence in majorIndian cities, and an additional 1000 outreach points through its channel partners.MetLife India is driven by the principles of uncompromising integrity and thehighest level of professionalism. Its mission is to work with utmost integrity,fairness and financial prudence in all its dealings.The company has 600 employees, 3,000 commission agents and 300- 400 otherdistributors. MetLife India has a capital base of US$ 35 million. Working towards agoal of 5 million customers by 2010, MetLife India currently has more than100,000 customers.MetLife is a joint venture between its parent company, Metropolitan Life InsuranceCompany (MetLife), Jammu and Kashmir Bank, M.Pallonji and Co. and otherprivate investors. MetLife, having 130-year-old reputation, is the largest LifeInsurance Company in the U.S. MetLife operates in 15 countries throughout
Americas, Europe and Asia and it serves approximately 9 million individualhouseholds in the U.S as well as 87 of the Fortune 100 companies.MetLife benefits from its parent company’s global presence in the field ofinsurance, track record of establishing successful insurance operations in emergingmarkets and the unique strengths of its other Indian promoters. MetLife,headquartered in Bangalore, delivers value and world class service to customersthrough its financial advisors and corporate sales representatives.VISION:“To be formidable player in the industry in the Indian Life Insurance Industry”METLIFE CORE VALUES: • INTEGRITY AND HONESTY • INNOVATION • PARTNERSHIPMetLife Worldwide: • Financially strong company • A recognized brand name
• Serves 90 of 100 Fortune 500 companies • Largest life insurer by sales • A Fortune -39 company • A 140 year old financial giant • Assets> USD 580 Billion • Trustworthy company -70 Million customers world wide • Highest ratings by external agencies3.2 FUNCTIONAL STRUCTURE:MetLife’s sales function is divided into two functional structures within theorganization. These two Structures are: Banc assurance, AgencyBoth types of structures are described as follows:BANCASSURANCE OR BANCA: -MetLife is a pioneer in offering life insurance solutions through banks andalliances. Within a short span of two years, and with nearly a large number ofpartners, B & A has emerged as a vital component of the company’s sales anddistribution strategy, contributing to approximately one third of company’s totalbusiness. The business philosophy at B&A is to leverage distribution synergieswith their partners and add value to its customers as well as the partners.Flexibility, adaptation and experimenting with new ideas are the hallmarks of thischannel. The business philosophy at B&A is to leverage distribution synergies withits partners and add value to the business of both. Bancassurance Team include
Banks: • The Jammu and Kashmir Bank • Axis Bank • Dhanalakshmi Bank • Karnataka BankCorporate Agents: • Karvy Consultants Limited • Geojit Securities • Way2wealth Consultancy • Mini Muthoottu BankAGENCY:-Agency is the largest distribution channel of MetLife comprising alarge advisor force that targets various customer segments. The strength of agencylies in an aggressive strategy of expanding and procuring quality business. Withfocus on sales & people development, agency has emerged as a robust, predictableand sustainable business model. Generally this advisors works under the leadership
of sales manager, who motivate them in every step by providing training andguidance to them, usually each sales manager have 20 to 30 advisors under them. • Branch Sales Manager (BSM)/ Area manager • Agency Manager(AM) • Sales Manager (SM)Advisors:- Advisors are the people who are the regular employees of theMETLIFE, Commissioned agents are also a part of agency but they are not theregular employees of the company and are being paid for insuring peoples withMetLife’s traditional and nontraditional insurance policy.
3.3 ORGANIZTIONAL STRUCTURE: MANAGING DIRECTOR HUMAN ACTURIAL COMPLIANCE AGENCY MARKETING RESOURCES STATUTORY INERNAL REGIONAL REWARDS AND BRAND MGMT VALUATION CONTROL AGENCY SALES PERFORMANCE INDIVIDUAL REGIONAL HR CHANNEL BOARD AFFAIRS PRICING CORE AGENCY MKTG GROUP AGENCY INTERNAL IRDA RECRUITMENT BUSINESS STRATEGY COMM. PAYROLL GOVT. GAAP RBI SALES TRAINING SERVICES RELATIONSFig: 1BANGALORE AGENCY:MetLife Bangalore branch is divided into three agency headed by one agencymanager with senior sales managers and sales managers in their individual team.
Then the sales manager appoint financial advisors who work as the agents for thecompany. The multiple distribution channels will help an insurance company tooffer a range of contact points to the customer, thereby increasing the chances ofsuccess.However, along with these distribution channels comes the challenge ofrelationship management. Since most of the new channels involve collaborationwith various entities whose demands and powers of negotiation are varied, itrequires delicate skills on the part of the insurance company to manage theserelationships. Effective management of channel conflict, and curtailing the costs ofdistribution will be of utmost importance. The advisory agents undergo propertraining prior to join the organization in assigned branches.3.4 SWOT ANALYSIS:
CHAPTER 4 ANALYSIS AND INTERPRETATION4.1 ANALYSIS AND INTERPRETATION OF DATA:This chapter analysis the data collected with respect to the objectives of the projectand draws appropriate inferences there from
Objective 1: To study the retention strategies implemented in MetLifeTABLE 1: For how long have you been working in MetLife?NUMBER OF YEARS NUMBER OF RESPONDENTS 3-4 YEARS 35 2-3 YEARS 10 1-2 YEARS 3 <1 YEAR 2GRAPH 1:INFERENCE:The graph(1) shows that there are 35 employees who have been working inMetLife for almost 5 years and only 5 have joined within a time span of 1-2 years.
TABLE 2: Are you satisfied with your current job?OPTIONS NUMBER OF RESPONDENTS YES 45 NO 5GRAPH 2:INFERENCE:The graph (2) shows that maximum numbers of employees are satisfied with thejob in MetLife and only 5 employees are dissatisfied.ANALYSIS:The company takes ample measure to retain their employees in the organization forthe company to grow in all ways.
The major issue faced by all employees in all jobs is the growth career and it isresolved only through identification of proper adequate training needs andimplementing it.MetLife always initiates training requirements and supports the employees. Themain aim of MetLife is to equipping the employees to become an all –round salesprofessional through world class training and coaching. This training support isdone through: • Product and Process training • Sales Personality development • Skills training • Professional coursesSales and Entrepreneurship Programme (STEP): a half day training interventionprogram was introduced to ensure consistent knowledge and skill development ofsales management.MetLife Management Induction school Program (MMIS): was introduced to trainall the employees in Management issues faced in the organization as their day today activities.“In an organization every employee tends to rise to his level of incompetence thuswork is accomplished by those who have not reached their level of incompetence.”
In order to incentivize each one of the employees a whole new RecruitmentRewards and Recognition Program (R&R) is been launched.The R&R includes Monetary and the Non Monetary benefits such as • Free training camps • Free coupons for the Month end • Free service ( free insurance life policy) • Awards and certificates • Medal of honor for the excellent performance of the yearLaunch of long term retention programmes for both managers and the employees isthe initiative taken in this current year by the Director Mr. Samal Bansal.The goal sheets have been simplified in order to provide the employees with anopportunity to aspire for better and higher achievements. The agency structure alsohas been simplified to enable faster decision making and career progression.MetLife conducts monthly all round meetings with all its employees and managersfor discussing the current issues faced by them in the organization forimplementing the transparencies in the working of the organization.Job rotation is on employee need basis and the need for the organization for both inthe benefit of the employee as well as the managers.The hirechial structure is becoming quite narrow and the manager needs to handleonly 4-5 employees in a row, which speeds up the decision-making process andmakes the employees happy, as they need not report to many managers at a time.
The work is also inclusive of incentive-based structure as and when clients areincreased, the monetary benefits are raised to the next level.Objective 2: To analyze employee perception on retention strategies
TABLE 3: Do you think MetLife does consider retention issues seriously?OPTIONS NUMBER OF RESPONDENTS YES 45 NO 5GRAPH (3):INFERENCE:As shown in the graph (3) the employees feel that the managers are making amplemeasures to safeguard the interest of the employees in the organization and itmakes the employees happy and satisfied to work in MetLife.TABLE 4: Is MetLife flexible when it comes to modifying its strategies?RESPONSE NUMBER OF
RESPONDENTSFLEXIBLE 40NOT VERY FLEXIBLE 5RIGID 5GRAPH (4):INFERENCE:As shown in the graph (4) 40 employees feel that the strategies implemented arequite flexible in nature and can be modified as per the results achieved by theorganization and only five employees feel it is rigid.TABLE 5: Do you have the authority to take part in the formulation of retentionstrategies?
OPTIONS NUMBER OF RESPONDENTS YES 40 NO 10GRAPH 5:INFERENCE:As shown in the graph (5) majority of the employees have the authority to have asay in the affairs of the company rewards and recognition policy.ANALYSIS:MetLife is an organization that endeavors in equal participation of employees aswell as the employers in the functioning of the company for its future existence andfor the goodwill of the company.
This also helps the employees in building good rapport between the managementand the staff in order to create a congenial atmosphere to work in.A good relation with the manager and the peers is one of the factor which tends tomake the employees stick to the organization for a longer period of time and thusresulting in reduction of attrition rates.Objective3: To study factors which help in employee retention
TABLE 6: Rate the factors in a scale of (1-4) for you to retain in MetLife(lowest to highest)OPTIONS NUMBER OF RESPONDENTSFLEXIBILITY 5PAY PACKAGE 25GROWTH OPPURTUNITY 15RELATIONSHIP WITH PEER 5AND MANAGERGRAPH (6):INFERENCE:As shown in the graph (6) pay package and growth opportunities are the mostimportant factors that motivate the employees to stay in the organization
ANALYSIS: The most important factor pertaining to employees is the pay package and the growth career in their lives. These two factors gives them satisfaction and personal growth and development to climb the ladder in the corporate world. The flexibility is the secondary factor that helps in maintains a balance between the professional and the personal life of the employees. It can be possible if the work is done from home or there is shift timings whichever is comfortable to the employees and the work is not hampered in any of the ways. The relationship with the manager and the peers is also a very crucial factor as the behavior and the integrity of the employee is known and analyzed in this factor. This helps the work to be done in a cordial and friendly manner that results in proper understanding and avoids conflicts and chaos in an organization. The work culture and the work behavior is maintained. Objective 4: To study the drawback of current strategy usedTABLE 7: Do you think the current strategies used with respect to Retention aremotivating the employees to stay in the organization?
OPTIONS NUMBER OF RESPONDENTS YES 40 NO 10GRAPH 7:INFERENCE:As shown in the graph (7) majority of the employees are satisfied with the currentstrategies used in the organization and that is the reason the attrition rate is too low.Only 10 employees feel that there needs to be changed with respect to flexibility intiming i.e. work from home can be introduced if required.TABLE 8: Do you feel there needs to be a change in the retention Policiesundertaken?
OPTIONS NUMBER OF RESPONDENTS YES 10 NO 40GRAPH 8:INFERENCE:
As shown in the graph (8) maximum employees do not need any change in theretention strategies in the organization, as they are able to balance their professionalwith their personal life.ANALYSIS:The employees in MetLife feel that the strategies used are quite acceptable to themwith only the rigidness of timings and the implementation of shift timings would bean alterations in the policies.Objective 5: To develop new retention strategies
• Implementation of the shift timings and the flexibility of work from home will be a new way to make the employees build a balance between the personal and the professional life which will result in the reduction of attrition rate.• Fun activities, games to be organized so that employees feel the ease in the work pressure and tend to come to work happily and thus feel contended and satisfied.• No uniforms to be implemented so that employees are free to wear their choice and are more adaptable to changes in a positive manner• Attainable targets to be formulated and given to the employees to be achieved.• Personal counseling to be provided to all the employees so that they feel de- stressed and relaxed to work
CHAPTER 5SUMMARY OF FINDINGS, CONCLUSIONS AND SUGGESTIONS5.1SUMMARY OF FINDINGS:
The findings include the following:• High salaries and incentives is the primary tool for employee retention. Most of the companies attract the employees by paying them high salaries and other incentives time to time. Monetary packages are able to attract and retain talent, however, in long run it becomes limiting for the organization to pay huge cash.• The best and foremost HR practice to retain employees is proper and tangible recognition and appreciation to employees for their individual performance. The tools like employer of the year/month, best performer/trainee of the project etc are those appreciations that not only retain employees but also encourage them for better performance.• For employee satisfaction, the most important aspect to take care by the organization is that the job profiles offered should match with individual capabilities and aspirations. This makes the employee feel satisfied and glad in his job.• Better work culture is also very important where the relationship between employee and employer is such that individual problems and conflicts are properly addressed with time.• Excellent career growth should be provided to the employees to move on the vertical ladder of organizational hierarchy. The most common reason for leaving
the job is the expectation of higher level of responsibility and position.• Work-life balance initiatives are important. Innovative and practical employee policies pertaining to flexible working hours and schemes, granting compassionate and urgency leave, providing healthcare for self, family and dependants, etc. are important for most people. Work-life balance policies would have a positive impact on retaining skilled employees, as well as on attracting high-caliber recruits.• Organized training, counseling and development programmes for employees also used to motivate them for their work. Best performers should be encouraged to share their experiences with others and guide others. The emphasis is to create the desire to learn, enjoy and be passionate about the work they do.
CONCLUSION:As employees are the bases for company so retention of employees is a major focusfor HR department. The management should identify the important factors thataffect retention and should take necessary measures to improve these. Also, themanagement should take appropriate measure to identify the reasons of employeevoluntarily leave.It is only the employees that implement and give tangibility to the corporatemission. In other words if it is the highest rung in the corporate hierarchy that hasideas, it is the employees’ rung that has the chisel to bring the vision to life.In the best of worlds, employees would love their jobs. Like their co-workers, workhard for their employers, get paid well for their work, have ample chances ofadvancement and flexible schedules so they could attend to personal or familyneeds when necessary. And never leave. But then there’s the real world. And in thereal world, employees, do, leave, either because they want more money, hate theworking conditions, hate their co-workers, want a change, or because their spousegets a dream job in another state. Unlike inanimate products and systems that subject themselves to fine tuningwithout any reaction, employees would not subject themselves to any measuretaken without reaction and analysis. Hence managing human resources, particularlyretaining them, is an art that calls for special skills and strategies.Employee survey and exit interviews can be used for assessing the reasons ofemployee voluntarily leave. HR interventions such as improving selection process,
effective orientation and training, better employee relation, better careerdevelopment programs and planning etc should be used to improve employeeretention.SUGGESTIONS:1. Following steps/ efforts should organization take to retain its employees: o Lucrative opportunities o Implement good employment practices o Maintain healthy organizational climate o Proper training should be provided to employees according to their skills o Proper salary structure should be there.2. Need to restructure company’s policy and follow certain process to overcomeproblems.3. Should make a hierarchy for various positions.BIBLIOGRAPHY:
(A) BOOKS: • Gupta Shashi K. & Joshi Rosy, Human Resource Management, Tata McGraw Hill, Fourth Revised & Enlarged Edition, 2007. (Page 20.9-20.14) • KOTHARI C.R., Research methodology, New Age Publishing House, Second Edition.(B) WEBSITES • www.google.com • www.yahoo.com • www.scribd.comAnnexure:
Questionnaire: Name : Designation :Q.1) For how long have you been working in MetLife? a) 3-4 years b) 2-3 years c) 1-2 years d) < 1 yearQ.2) Are you satisfied with your current job? a) Yes b) NoQ.3) Do you think MetLife does consider retention issues seriously? a) Yes b) NoQ.4)Is MetLife flexible when it comes to modifying its strategies? a) Flexible b) Not very flexible c) Rigid
Q.5) Do you have the authority to take part in the formulation of retention strategies? a) Yes b) NoQ.6) Rate the factors in a scale of (1-4) for you to retain in MetLife(lowest to highest) a) Flexibility in job timing b) Pay package c) Growth opportunities d) Relationship with the peers and the managersQ.7) Do you think the current strategies used with respect to Retention are motivatingthe employees to stay in the organization? a) Yes b) No If No, specify which strategy.....................................................................Q.8) Do you feel there needs to be a change in the retention Policies undertaken? a) Yes b) No