EMPLOYEE RETENTION IN PRIVATE SECTOR DISSERTATION REPORT 2010Submitted for the partial fulfillment of the requirement for the award Of POST GRADUATE DIPLOMA IN MANAGEMENT SUBMITTED BY --------------------- UNDER THE SUPERVISION OF ----------------------- DEPARTMENT OF MANAGEMENT
CERTIFICATEThis is to certify that the dissertation entitled (employee retention in public sector) andsubmitted by ------------------- having roll ----------------for the partial fulfilment of therequirements of ------------------embodies the bonafide work done by her supervision.Signature of guidePlace:Date:
ABSTRACTEmployee retention is a process in which the employees are encouraged to remain with theorganization for the maximum period of time or until the completion of the project.Employee retention is beneficial for the organization as well as the employee. Employeestoday are different. They are not the ones who don’t have good opportunities in hand. Assoon as they feel dissatisfied with the current employer or the job, they switch over to thenext job. It is the responsibility of the employer to retain their best employees. If they don’t,they would be left with no good employees. A good employer should know how to attractand retain its employees.Most employees feel that they are worth more than they are actually paid. There is a naturaldisparity between what people think they should be paid and whatorganizations spend in compensation. When the difference becomes too great and anotheropportunity occurs, turnover can result. Pay is defined as the wages, salary, or compensationgiven to an employee in exchange for services the employee performs for the organization.Pay is more than "dollars and cents;" it also acknowledges the worth and value of the humancontribution. What people are paid has been shown to have a clear, reliable impact onturnover in numerous studies.Employees comprise the most vital assets of the company. In a work place where employeesare not able to use their full potential and not heard and valued, they are likely to leavebecause of stress and frustration. In a transparent environment while employees get a sense ofachievement and belongingness from a healthy work environment, the company is benefitedwith a stronger, reliable work-force harbouring bright new ideas for its growth Blog OnlineAnd Earn Money.
ACKNOWLEDGEMENTI am very grateful --------------- for giving me the opportunity of working in this project andgive me useful instruction .I extend my regards and sincere thanks to----------------------with who support & effort, Icompleted my project.Also I am thankful to the management and my fellow colleges for making my projectduration a memorable and fruitful one.-------------------]
CONTENTS 1. Introduction 2. Company profile. • Need of the study • Scope of the study2. Research methodology • Objective of the study • Research methodology (Sample size, Instrument used, Methods of data collection) • Scope of the study • limitations6. Descriptive work7. Data Analysis8. Suggestion and Conclusions9. Bibliography10. References11.Appendices12. Checklist of the items in the project
IntroductionEmployee turnover is one of the largest though widely unknown costs anorganization faces. While companies routinely keep track of various costs such as suppliesand payroll, few take into consideration how much employee turnover will cost them: Ernst& Young estimates it costs approximately $120,000 to replace 10 professionals. According toresearch done by Sibson & Company, to recoup the cost of losing just one employee a fastfood restaurant must sell 7,613 combo meals at $2.50 each. Employee turnover costscompanies 30 to 50% of the annual salary of entry-level employees, 150% of middle-levelemployees, and up to 400% for upper level, specialized employees. Now that so much isbeing done by organizations to retain its employees. Why is retention so important? Is it just to reduce the turn over costs ?Well, the answer is a definite no. It’s not only the cost incurred by a companythat emphasizes the need of retaining employees but also the need to retaintalented employees from getting poached.Retention involves five major things: Compensation Environment Growth Relationship Support Compensation:Compensation constitutes the largest part of the employee retention process. The employeesalways 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 compensation package. It is also the most common factor of comparison among employees. It includes • Basic wage • House rent allowance • Dearness allowance • City compensatory allowanceSalary and wages represent the level of skill and experience an individual has. Time to timeincrease in the salaries and wages of employees should be done. And this increase should bebased on the employee’s performance and his contribution to the organization. Bonus:Bonuses are usually given to the employees at the end of the year or on a festival. Economicbenefits: It includes paid holidays, leave travel concession, etc. Long-term incentives: Longterm incentives include stock options or stock grants. These incentives help retain employeesin the organizations start up stage. Health insurance: Health insurance is a great benefit to the employees. Itsaves employees money as well as gives them a peace of mind that they havesomebody to take care of them in bad times. It also shows the employee that theorganization cares about the employee and its family. After retirement: It includes payments that an Employee gets after he retires like EPF (Employee Provident Fund) etc. Miscellaneous compensation: It may include employee assistanceprograms (like psychological counselling, legal assistance etc), discounts oncompany products, use of a company cars, etc.
Scope of the studyIt is not about managing retention. It is about managing people. If an organization managespeople well, employee retention will take care of itself. Organizations should focus onmanaging the work environment to make better use of the available human assets. Peoplewant to work for an organization which provides • Appreciation for the work done • Ample opportunities to grow • A friendly and cooperative environment • A feeling that the organization is second home to the employeeOrganization environment includes • Culture • Values • Company reputation • Quality of people in the organization • Employee development and career growth • Risk taking • Leading technologies • TrustTypes of environment the employee needs in an organization • Learning environment: It includes continuous learning and improvement of the individual, certifications and provision for higher studies, etc. • Support environment: Organization can provide support in the form of work-life balance. Work life balance includes: Flexible hours Telecommuting Dependent care Alternate work schedules Vacations Wellness
• Work environment: It includes efficient managers, supportive co-workers, challenging work, involvement in decision-making, clarity of work and responsibilities, and recognition. Lack or absence of such environment pushes employees to look for new opportunities. The environment should be such that the employee feels connected to the organization in every respect. Growth and Career Growth and development are the integral part of every individual’s career. If an employee 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 gets an opportunity. The important factors in employee growth that an employee looksfor himself are: • Work profile: The work profile on which the employee is workingshould be in sync with his capabilities. The profile should not be too low or too high. • Personal growth and dreams: Employees responsibilities in the organization should help him achieve his personal goals also. Organizations can not keep aside the individual goals of employees and foster organizations goals. Employees’ priority is to work for themselves and later on comes the organization. If he’s not satisfied with his growth, he’ll not be able to contribute in organization growth. • Training and development: Employees should be trained and given chance to improve and enhance their skills. Many employers fear that if the employees are well rained, they’ll leave the organization for better jobs. Organization should not limit the resources on which organization’s success depends. These trainings can be given toimprove many skills like: Communications skills Technical skills In-house processes and procedures improvement related skills or customer satisfaction related skills Special project related skillsNeed for such trainings can be recognized from individual performance reviews, individualmeetings, employee satisfaction surveys and by being in constant touch with the employees.Importance of Relationship in Employee Retention ProgramSometimes the relationship with the management and the peers becomes thereason for an employee to leave the organization. The management is sometimes not able toprovide an employee a supportive work culture and environment in terms of personal or
professional relationships. There are times when an employee starts feeling bitterness towardsthe management or peers.This bitterness could be due to many reasons. This decreases employee’s interest and hebecomes demotivated. It leads to less satisfaction and eventually attrition. A supportive workculture helps grow employee professionally and boosts employee satisfaction. To enhancegood professional relationships at work, the management should keep the following points inmind.Respect for the individual: Respect for the individual is the must in the organization. • Relationship with the immediate manager: A manger plays the role of a mentor and a coach. He designs and plans work for each employee. It is his duty to involve the employee in the processes of the organization. So an organization should hire managers who can make and maintain good relations with their subordinates. • Relationship with colleagues: Promote team work, not only among teams but in different departments as well. This will induce competition as well as improve the Relationship among colleagues. • Recruit whole heartedly: An employee should be recruited if there is a proper place and duties for him to perform. Otherwise he’ll feel useless and will be dissatisfied.Employees should know what the organization expects from them and what their expectationfrom the organization is. Deliver what is promised. Promote anemployee based culture: The employee should know that the organization is there to supporthim at the time of need. Show them that the organization cares and he’ll show the same forthe organization. An employee based culture may include decision making authority,availability of resources, open door policy, etc. • Individual development: Taking proper care of employees includes acknowledgement to the employee’s dreams and personal goals. Create opportunities for their career growth by providing mentorship programs, certifications, educational courses, etc. • Induce loyalty: Organizations should be loyal as well as they should promote loyalty in the employees too. Try to make the current employees stay instead of recruiting new ones.Support Lack of support from management can sometimes serve as a reason for employeeretention. Supervisor should support his subordinates in a way so that each one of them is asuccess. Management should try to focus on its employees and support them not only in theirdifficult times at work but also through the times of personal crisis. Management can support
employees by providing them recognition and appreciation. Employers can also providevaluable feedback to employees and make them feel valued to the organization.The feedback from supervisor helps the employee to feel more responsible,confident and empowered. Top management can also support its employees in their personalcrisis by providing personal loans during emergencies, childcare services, employeeassistance Programs, conseling services, etcEmployers 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: • By providing feedback • By giving recognition and rewards • By counseling them • By providing emotional support
COMPANY PROFILEIn August, 1994 the Housing Development FinanceCorporation Limited (HDFC) was incorporated in the name ofHDFC Bank Limited. The Reserve Bank of India has approved inprinciple to set up private banks. HDFC was one of the firstorganizations to receive in principle approval from RBI. The HDFCBank has its registered office in Mumbai. In January 1995, theoperations of HDFC Bank as a commercial bank has commenced.In India and in international markets HDFC has an impeccabletrack record. HDFC has maintained a healthy growth and aconsistency in its operations and remained as a leader in market ofmortgages. The portfolio of HDFC’s outstanding loan has a milliondwelling units. HDFC has a large corporate client base for housingrelated credit facilities. HDFC was ideally positioned to promote abank in the Indian market with its experience and strong reputationin market of finance.i Objective :· HDFC Bank is a young and dynamic bank, with a youthfuland enthusiastic team determined to accomplish the vision ofbecoming a world-class Indian bank.· Bank’s business philosophy is based on four core values- Customer Focus, Operational Excellence, ProductLeadership and People. Bank believes that the ultimateidentity and success of bank will reside in the exceptionalquality of our people and their extraordinary efforts. For thisreason, bank is committed to hiring, developing, motivatingand retaining the best people in the industry.
Mission :Bank mission is to be “a World Class Indian Bank”,benchmarking bank against international standards and bestpractices in terms of product offerings, technology, service levels,risk management and audit & compliance. The objective is to buildsound customer franchises across distinct businesses so as to bea preferred provider of banking services for target retail andwholesale customer segments, and to achieve a healthy growth inprofitability, consistent with the Bank’s risk appetite. Bank iscommitted to do this while ensuring the highest levels of ethicalstandards, professional integrity, corporate governance andregulatory compliance.HDFC Bank has been recognized as Best Bank in India inthe magazine rankings as well as surveys year on year. HDFCBank is the most preferred employer in banking industry in India.Bank business strategy emphasizes the following:· Increase bank’s market share in India’s expanding bankingand financial services industry by following a disciplinedgrowth strategy focusing on quality and not on quantity anddelivering high quality customer service.· Leverage technology platform and open scalable systems todeliver more products to more customers and to controloperating costs.· Maintain current high standards for asset quality throughdisciplined credit risk management.· Develop innovative products and services that attracttargeted customers and address inefficiencies in the Indian
financial sector.· Continue to develop products and services that reduce costof funds.· Focus on high earnings growth with low volatility.· Vision :Visions don’t change quite often. Near-term objectives do.The country’s second largest private bank still strives to become a“world-class Indian bank”, a vision that was documented in its firstannual report back in 1995. Call them less aggressive or moreconservative, it doesn’t ruffle the top management of HousingDevelopment Financing Corporation (HDFC) Bank.As American author, Frank Herbert says: “There’s no secretto balance. You just have to feel the waves.” It may be quite aunique distinction but HDFC Bank hasn’t seen a change in theleadership since day one. Aditya Puri, in his capacity as MD andCEO, has continued to surprise industry critics and consistentlydelivered a growth of around 25-30% (Quos) in net profit for thepast 40-50 quarters. Today, the Rs 54,000-crore bank servicesover 11 million customers and operates from more than 1,200branches in 444 Indian towns and cities, while some 2,500-oddATMs offer anytime, anywhere banking.For HDFC Bank executive director Paresh Sukthankar, thisconsistent performance has been his defining moment at the bank.“It may look less glamorous, but personally this achievement hasbeen much more valuable. It’s very easy to have a great quarter,and fall back to mediocrity, in terms of a lazy quarter. What makesthis success even more remarkable is the fact that the last 10
years have seen a fair amount of volatility in the macroeconomicenvironment, domestically as well as globally,” he quips.e Strengths :Highest level of ethical standards· Professional integrity· Corporate governance· Regulatory compliance· Business Philosophy :The four values are the bank’s business philosophy,· Operational Excellence· Customer Focus· Product Leadership· People· Management :· ChairmanIn July 2001 Mr. Jadish Capoor has taken theresponsibilities of the bank as Chairman. He was a DeputyGovernor of the RBI.· Managing DirectorMr. Aditya Puri is the managing director of the HDFC bank,before he was with Citibank as a head for operations inMalaysia.· Board of DirectorsThe members of the HDFC bank’s Board of Directors aresenior banking professionals with experience in abroad andIndia, who head various businesses.
PROMOTERS :HDFC is Indias premier housing finance company andenjoys an impeccable track record in India as well as ininternational markets. Since its inception in 1977, the Corporationhas maintained a consistent and healthy growth in its operations toremain the market leader in mortgages. Its outstanding loanportfolio covers well over a million dwelling units. HDFC hasdeveloped significant expertise in retail mortgage loans to differentmarket segments and also has a large corporate client base for itshousing related credit facilities. With its experience in the financialmarkets, a strong market reputation, large shareholder base andunique consumer franchise, HDFC was ideally positioned topromote a bank in the Indian environment.p BUSINESS FOCUS :HDFC Banks mission is to be a World-Class Indian Bank.The objective is to build sound customer franchises across distinctbusinesses so as to be the preferred provider of banking servicesfor target retail and wholesale customer segments, and to achievehealthy growth in profitability, consistent with the banks riskappetite. The bank is committed to maintain the highest level ofethical standards, professional integrity, corporate governance andregulatory compliance. HDFC Banks business philosophy is basedon four core values - Operational Excellence, Customer Focus,Product Leadership and People.P CAPITAL STRUCTURE :At present, HDFC Bank boasts of an authorized capital of Rs550 crore (Rs5.5 billion), of this the paid-up amount is Rs 424.6
crore (Rs.4.2 billion). In terms of equity share, the HDFC Groupholds 19.4%. Foreign Institutional Investors (FIIs) have around28% of the equity and about 17.6% is held by the ADS Depository(in respect of the banks American Depository Shares (ADS)Issue). The bank has about 570,000 shareholders. Its shares finda listing on the Stock Exchange, Mumbai and National StockExchange, while its American Depository Shares are listed on theNew York Stock Exchange (NYSE), under the symbol HDB.N Awards :Awards with its strengths and its talented people the HDFCbanks have made all its efforts to achieve its mission to be WorldClass Indian bank. Its services are recognized not only nationallybut also internationally. The HDFC bank is appreciated with somany awards like:· Asian Banker Excellence Awards 2009· The Asset Triple A Awards· Financial Insights Innovation Awards 2010· Global Finance Awards 2010· Business World Best Bank Award 2009
2011BloombergUTVs Best BankFinancialLeadership Awards2011IBA Banking Winner -Technology Awards 1) Technology Bank of the Year2010 2) Best Online Bank 3) Best Customer Initiative 4) Best Use of Business Intelligence 5) Best Risk Management System Runners Up - Best Financial InclusionIDC FIIA Awards Excellence in Customer Experience2011
2010Outlook Money Best Bank2010 AwardsBusinessworld Best Best Bank (Large)Bank Awards 2010Teachers Mr. Aditya PuriAchievementAwards 2010(Business)The Banker and Best Private Bank in IndiaPWM 2010 GlobalPrivate BankingAwardsEconomic Times Business Leader of the Year - Mr. Aditya PuriAwards forCorporateExcellence 2010Forbes Asia Fab 50 Companies - 5th year in a rowNDTV Business Best Private Sector BankLeadership Awards2010The Banker Worlds Top 1000 BanksMagazineMIS Asia IT BEST BOTTOM-LINE I.T. CategoryExcellence Award2010Dun & BradstreetBanking Awards 2 Overall Best Bank2010 Best Private Sector Bank Best Private Sector Bank in SME FinancingInstitutional HDFC Bank MD, Mr. Aditya Puri among "Asian Captains ofInvestor Magazine Finance 2010"
RESEARCH METHODOLOGYResearch Design:The research design indicates the type of research methodology under taken tocollect the information for the study.The researcher used both descriptive and analytical type of research design for his researchstudy. The main objective of using descriptive research is to describe the state of affairs as itexits at present. It mainly involves surveys and fact finding enquiries of different kinds. Theresearcher used descriptive research to discover the characteristics of customers. Descriptiveresearch also includes demography characteristic of consumer who use the product.The researcher also used analytical research design to analyze the existing factsfrom the data collected from the customer.Area of study:The area of study is confined to employees of HDFC BANK .LTDResearch instrument:The Structured questionnaire is used as the research instrument for the study.Questionnaire Design:The questionnaire framed for the research study is a structured questionnaire inwhich all the questions are predetermined before conducting the survey. The form of questionis of both closed and open type.The scales used to evaluate questions are: • Dichotomous scale (Yes or No) • Likert 5 point scale (Highly satisfied, satisfied, Neither Satisfied nor dissatisfied, Dissatisfied, Highly dissatisfied)
• Category scale (Multiple items) • Ranking type (R1, R2, R3…)The questionnaire for the research was framed in a clear manner such that itenables the respondents to understand and answer the question easily. Thequestionnaire was designed in such a way that the questions are short and simple and isarranged in a logical manner.Pilot study:It is appropriate to conduct pilot survey to check the reliability of the questionnaire. So pilotstudy was conducted on 5 respondents which is a 10% of the sample.Sampling design:A Sample design is a definite plan for obtaining a sample from a given population. It is theprocedure used by the researcher in selecting items for the sample.Sample size:Sample size=125 samples, variance and confidence methods are used fordetermining sample size.Sampling Technique:The researcher adopted simple random sampling for the study.
DATA COLLECTION METHODPrimary data:Primary data is the new or fresh data collected from the respondents throughstructured scheduled questionnaire.Secondary data:The secondary data are collected through the structured questionnaire, literaturereview and also from the past records maintained by the company. STATISTICAL TOOLS AND TECHNIQUESPERCENTAGE ANALYSIS:Percentage = (No. Of respondents / total no. Of respondents)*100WEIGHTED AVERAGE METHOD:Formula:Mean score = total score/no of respondents.Where total score = no of respondents*weighted averageCHI – SQUARE TEST:1. Null Hypothesis (Ho): There is no difference in attributes2. Alternate Hypothesis(H1): There is a difference in attributes3. Level of significance α = 0.054. Degrees of freedom = (r-1)(c-1)5. Expected frequency:E = R.T × C.T
6. Calculation of :Σ = Σ (O-E)27. The tabulated value of at given level of significance with (r-1)(c-1) ONE RUN TEST:Null hypothesis (H0):There is a no significant relationship between the variablesAlternate hypothesis (H1):There is significant relationship between the variablesμr = 2 n1 n2 + 1n1 + n22 n1 n2- n1- n1σr = 2 n1n2(n1+ n2)2 (n1+ n2-1 )Lower limit = μr + (2.58) σUpper limit = μr + (2.58) σ KENDALL’S COEFFICIENT OF CONCORDANCE:Null hypothesis (H0): There is a difference in attributesAlternate hypothesis (H1): There is no difference in attributesΣ Rj = (Rj-Rj)2S= Rj = Σ Rj LIMITATIONS OF THE STUDY1. The findings of the study are subjected to bias and prejudice of the respondents.2. Area of the study is confined to the employees in Chennai only.3. Time factor can be considered as a main limitation.4. The findings of the study are solely based on the information provided by therespondents.
5. The accuracy of findings is limited by the accuracy of statistical tools used for analysis.6. Findings of the research may change due to area, demography, age condition of economyetc. Analysis and Interpretation of data 1. PERCENTAGE ANAYLSIS 2. AWARENESS OF HR POLICIESChi-Square TestTo find whether there exists a significant relationship between Work Culture of the Companyand interpersonal relationship between employees.H0: There is a no significant relationship between Work Culture of the Company andinterpersonal relationship between employees.H1: There is a significant relationship between Work Culture of the Companyand interpersonal relationship between employees.Calculated value is more than table value therefore accept H0Result:There is a significant relationship between overall satisfaction and aspects of job.KENDALL’S COEFFICIENT OF CONCORDANCENull hypothesis (H0): There is a no significant difference in the rank assigned byrespondents towards the attributes that gives them satisfaction in the company.Alternate hypothesis (H1): There is a significant difference in the rank assigned byrespondents towards the attributes that gives them satisfaction in the company.
Ranking Based on SatisfactionK=20:Salary, Superior Role, Team Coordination, Work responsibilities, Rules and Policies,Physical work environment TrainingCalculated value : S= 5815.714Table value : 1158Calculated value is more than table value therefore reject H0Result:There is a significant difference in the rank assigned by respondents towards theattributes that gives them satisfaction in the company.ONE RUN TEST:Null hypothesis (H0): The samples are not taken randomly.Alternate hypothesis (H1): The samples are taken randomly.Retention Management:Background: retention management is a highly topical subject and animportant dilemma many organizations might face in the future, if not facing italready. We believe that the leader plays a key role in employee retention andretention management. The concept of retention management can both have anarrow, and a broader significance. Both parts of its significance are generallyincluded in this thesis. The background of the thesis present a few articles thatdiscuss issues that makes it important for the organization, and the leaders, to work hard withretention management. The research is based on the leaders in the Finnish case companyTradeka. Following key questions are intended to beanswered: What are the consequences between leaders actions and employeesretention? Which is the leader’s role when it comes to retaining employees?Purpose statement: The purpose of the thesis is to investigate and analyze how companyleaders today can retain their key employees. How can the provision of key human resources
develop a long-term relationship that makes top employees stay in the company? The studyaims to establish the procedure leaders apply to retain employees. The purpose is to comparethe qualitative study, made at the case company, with findings from the thesis theoreticalframework.Research method: The study is a qualitative, as well as a theoretical study where empiricalfindings and theories has been compared. The intention of investigating and using the Finnishcompany Tradeka Limited as a case company, is to make the information from the theoriesmore valid, and also the interest in how retention management works in practice. Elevenqualitative interviews were conducted at Tradeka?financial department, both with supervisors and employees to get a broader view at thephenomenon retention management. Result: Leaders and their skill in creating a culture ofretention, has becoming a key in why people stay and what usually drives them away from acompany. The leader has become the main factor in what motivates people’s decision to stayor leave. For organizations to keep its key employees their number one priority should be tolook at their management, because people leave managers and not companies. Characteristicsin a leader that are of importance, as the leader plays a key role in retention management is:trust builder, esteem builder, communicator, talent developer and coach, and talent finder.The leader’s relation to the employees plays a central role in retaining employees.Employee Retention StrategiesThe basic practices which should be kept in mind in the employee retentionstrategies are:1. Hire the right people in the first place.2. Empower the employees: Give the employees the authority to get things done.3. Make employees realize that they are the most valuable asset of theorganization.4. Have faith in them, trust and respect them5. Provide them information and knowledge.6. Keep providing them feedback on their performance.7. Recognize and appreciate their achievements.8. Keep their morale high.9. Create an environment where the employees want to work and have fun.
These practices can be categorized in 3 levels: • Low, • medium and • high level. • Low Level Employee Retention Strategies: Appreciating and recognizing a well done job· Personalized well done and thank-you cards from supervisors· Congratulations e-cards or cards sent to spouses/families· Voicemails or mess·ages from top management Periodic days off for good performance· Rewards ( gift, certificates, monetary and non monetary rewards)· Recognizing professional as well as personal significant events· Wedding gifts Anniversary gifts New born baby gifts Scholarships for employee’s children Get well cards/flowers Birthday cards, celebrations and gifts Providing benefits· Home insurance plans Legal insurance Travel insurance Disability programs Providing perks: It includes coupons, discounts, rebates, etc· Discounts in cinema halls, museums, restaurants, etc. Retail store discounts Computer peripherals purchase discounts Providing workplace conveniences· On-site ATM On-site facilities for which cost is paid by employees laundry facility for bachelors
Shipping services Assistance with tax calculations and submission of forms Financial planning assistance Casual dress policies Facilities for expectant mothers Parking Parenting guide Lactation rooms Flexi timings Fun at work· Celebrate birthdays, anniversaries, retirements, promotions, etc Holiday parties and holiday gift certificates Occasional parties like diwali, holi, dushera, etc Organize get together for watching football, hockey, cricket matches Organize picnics and trips for movies etc Sports outings like cricket match etc Indoor games Occasional stress relievers· “Casual dress” day “Green is the color” day Handwriting analysis Tatoo, mehandi, hair braiding stalls on weekends Mini cricket in office Ice cream Fridays Holi-Day breakfast Employee support in tough time or personal crisis· Personal loans for emergencies Childcare and eldercare services Employee Assistance Programs ( Counseling sessions etc) Emergency childcare services• Medium Level Strategies for Employee Retention Appreciating and recognizing a well done job Special bonus for successfully completing firm-sponsored certifications
Benefit programs for family support Child adoption benefits Flexible benefits Dependents care assistance Medical care reimbursement Providing conveniences at workplace· Gymnasiums· Athletic membership program· Providing training and development and personal growth opportunities· Sabbatical programs Professional skills development Individualized career guidance• High Level Strategies Promoting Work/Life Effectiveness· Develop flexible schedules· Part-time schedules· Extended leaves of absence· Develop Support Services· On-site day care facility etc. ·• Understand employee needs: This can be done through proper management style and culture· Listen to the employee and show interest in ideas· Appreciate new ideas and reward risk-taking Show support for individual initiative Encourage creativity• Encouraging professional training and development and/or personal growth opportunities: It can be done through:· Mentoring programs Performance feedback programs Provide necessary tools to the employees to achieve their professional and personal goals Getting the most out of employee interests and talents
Higher study opportunities for employees Vocational counselling Offer personalized career guidance to employees • Provide an environment of trust: Communication is the most important and effective way to develop trust.· Suggestion committees can be created Open door communication policy can be followed • Regular feedbacks on organization’s goals and activities should be taken from the employees by: Management communications Intranet and internet can be used as they provide 24X7 access to the information Newsletters, notice boards, etc. • Hire the right people from the beginning: employee retention is not a process that begins at the end. The process of retention begins right from the start of the recruitment process.The new joinees should fit with the organization’s culture. The personality,leadership characteristics of the candidate should be in sync with the culture of the hiringorganization.Referral bonus should be given to the employees for successful hires. They are the bestsource of networking. Proper training should be given to the managers on interview andmanagement techniques. An internship program can be followed to recruit the freshgraduates. Retention Success Mantra • Transparent Work CultureIn today’s fast paced business environments where employees are constantlystriving to achieve business goals under time restrictions; open minded andtransparent work culture plays a vital role in employee retention. Companies invest verymany hours and monies in training and educating employees. These
companies are severely affected when employees check out, especially in themiddle of some big company project or venture. Although employees most often prefer tostay with the same company and use their time and experience for personal growth anddevelopment, they leave mainly because of work related stress and dissatisfactions .More andmore companies have now realized the importance of a healthy work culture and have agamut of people management good practices for employees to have that ideal fresh work-life.Closed doors work culture can serve as a deterrent to communication and trust withinemployees which are potential causes for work- Related apathy and frenzy.A transparent work environment can serve as one of the primary triggers tofacilitate accountability, trust, communication, responsibility, pride and so on. It is believedthat in a transparent work culture employees rigorously communicate with their peers andexchange ideas and thoughts before they are finally matured in to full-blown concepts. Itinduces responsibility among employees and accountability towards other peers, whichgradually builds up trust and pride. More importantly, transparency in work environmentdiscourages work-politics which often hinders company goals as employees start to advancetheir personal objectives at the expense of development ofThe company as a single entity.. Quality Of WorkThe success of any organization depends on how it attracts, recruits, motivates, and retains itsworkforce. Organizations need to be more flexible so that they develop their talentedworkforce and gain their commitment. Thus, organizations are required to retain employeesby addressing their work life issues. The elements that are relevant to an individual’s qualityof work life include the task, the physical work environment, social environment within theorganization, administrative system and relationship between life on and off the job. Thebasic objectives of a QWL program are improved working conditions for the Employee andincrease organizational effectiveness.
Providing quality work life involves taking care of the following aspects:Occupational health care: The safe work environment provides the basis for the person toenjoy working. The work should not pose a health hazard for the person. The employer andemployee, aware of their risks and rights, could achieve a lot in Their mutually beneficialdialogue.Suitable working time: Organizations are offering flexible work options to their employeeswherein employees enjoy flexi-timings for dedicating their efforts at work.Appropriate salary: The appropriate as well as attractive salary has always been animportant factor in retaining employees. Providing employees salary at par with the othercounterparts of above that what competitors are paying motivates them to stick With thecompany for long. QWL consists of opportunities for active involvement in group workingarrangements or problem solving that are of mutual benefit to employees or employers, basedon labor management cooperation.People also conceive of QWL as a set of methods, such as autonomous work groups, jobenrichment, and high-involvement aimed at boosting the satisfaction and productivity ofworkers. It requires employee commitment to the organization and an environment in whichthis commitment can flourish. Providing quality at work not only reduces attrition but alsohelps in reduced absenteeism and improved job satisfaction. Not only does QWL contributeto a companys ability to recruit quality people, but also it enhances a companyscompetitiveness. Common beliefs support the contention that QWL will positively nurture amore flexible, loyal, and motivated workforce, which are essential in determining thecompanys competitiveness. Supporting EmployeesOrganizations these days want to protect their biggest and most valuable asset and they wantto do this in a way that best suits their organizational culture. Retaining employees is a
difficult task. Providing support to the employees acts as a mantra for retraining them.Employers can also support their employees by creating an environment of trust andinculcating the organizational values into employees.The management can support employees directly or indirectly. Directly, theyprovide support in terms of personal crises, managing stress and personaldevelopment. Management can support employees, indirectly, in a number of ways asfollows:Manage employee turnover: Employee turnover affects the whole organization in terms ofproductivity. Managing the turnover, hence, becomes an important task. A proactiveapproach can be adopted to reduce attrition. Strategies should be framed in advance andimplemented when the times arrives. Turnover costs should also be taken into considerationwhile framing these strategies.Become employer of choice: What makes a company an employer of choice? Is the benefitit offers or the compensation packages it gives away to its employees? Or is it measured interms of how they value their employees or in terms of customer satisfaction? Becoming anemployer of choice involves following a road map which tells where to go as a brand.Engage the new recruits: The newly hired employees are said to be least engaged in theorganization. Keeping them engaged is an important task. The fresh talent should be utilizedto maximum before they start feeling bored in the organization.Optimize employee engagement: An organization’s productivity is measured not in terms ofemployee satisfaction but by employee engagement. Employees are said to be engaged whenthey show a positive attitude toward the organization and express a commitment to remainwith the organization. Employee satisfaction also comes with high engagement levels. So,organizations should aim to maximize the engagement among employees.Coaching and mentoring: Employees whose work performance suffers due to poorinterpersonal relationships or because of lack of interpersonal skills should be providedproper coaching by their superiors. Planed coaching sessions help an individual to workthrough issues, maximize his potential and return to peakperformance.
FeedbackFeedback acts as a channel of communication between the employee and hismanager. The amount of information employees receive about how well or howpoorly they have performed is what we call feedback. It is a dialog between amanager and an employee which acts as a way of sharing information about theperformance. It suggests where the employee performance is effective and whereperformance has to improve. Managers can provide either positive feedback or negativefeedback to employees. This feedback helps the employee assess his performance andidentify the improvement areas. Positive feedback communicates managerial satisfaction.Positive recognition for good performance boosts up morale of employees and results inperformance improvement to a higher productivity level. It is believed that positive feedbackis the only type of feedback that generates performance above the minimum acceptable level.Negative feedback obviously communicates manager’s dissatisfaction. However, negativefeedback sometimes make employee to put more efforts to improve his performance. Butsuch times are very rare. Moreover this improvement is short term. Some managers do notprovide any kind of feedback to their employees. Due to no feedback, employees may assumethat they are performing productively or they may feel that the manager is satisfied with theirperformance. Studies reveal the performance tends be same or even decreases if no feedbackis provided. Thus, feedback is necessary because: • It builds trust and enhances communication between manager and employee. • It gives managers and employees a way to identify and discuss skills and strengths. • Positive feedback leads to employee retention and Retention. • It helps in identifying performance areas that need improvement and specific ways to improve them. It acts as an opportunity to enhance performance by identifying resources for skill development. It is an opportunity for managers and employees to assess and identify career and advancement opportunities. It helps employees to understand the effectiveness of their performance and contributes to their overall
knowledge about the work Managers have tendency to ignore good performances of their employees. Providing no feedback may demotivate employees and may lead to employee absenteeism. Input from manager’s side is necessary as it help employees to improve their performance and increase productivity. • Communication Between Employee and EmployerCommunication is a process in which a message is conveyed to the receiver by the sender.The message may be or may not be in a common format or language that both the sender andreceiver understand. So there is a need to encode and decode the message in the process.Encoding and decoding also helps in the security of the message. The process ofcommunication is incomplete without the feedback. Communication is the solution to almosteverything in this world. Same applies to employee retention also.Straight-from-the-shoulder communication is what the employees need from their employers.Employees look for organizations where communication and process are transparent. Nothingis hidden and shared with the employees.There are 3 categories of employees:A: Who will leave their current employer in 3 years of their employmentB: Who have a probability of leaving their current employer in next 3 yearsC: Who will stay with their current employer in the next 3 yearsCategory A: These are the employees who lack communication with theiremployers.Category C: These are the employees who have proper, well structuredcommunication with their employers. Communication is also the way to win theemployees trust in the organization. Employees trust the employers who arefriendly and open to them. This trust leads to employee loyalty and finally retention.Employers also feel that the immediate supervisors are the most authenticated and trustedsource of information for them. So the organizations should hire managers who are activecommunicators. Communication mediums.
Open door policy: Organizations should support open door policies so that theemployees feel comfortable and are able to express their doubts and feeling to theiremployers. Frequent meetings and Social gatherings Emails, Newsletters, Intranet and manymore. So there should be effective communication across the organization and thiscommunication should be two-way. Communication alone can lead to unimaginable heightsof employee retention. Importance Of Employee RetentionThe 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 calculate the costof turnover (including hiring costs, training costs and productivity loss), industry expertsoften quote 25% of the average employee salary as a conservative estimate.Loss of Company Knowledge: When an employee leaves, he takes with him valuableknowledge about the company, customers, current projects and past history (sometimes tocompetitors). Often much time and money has been spent on the employee in expectation of afuture return. When the employee leaves, the investment is not realized.Interruption of Customer Service: Customers and clients do business with acompany in part because of the people. Relationships are developed that encourage continuedsponsorship of the business. When an employee leaves, the relationships that employee builtfor the company are severed, which could lead to potential customer loss.Turnover leads to more turnovers: When an employee terminates, the effect is feltthroughout the organization. Co-workers are often required to pick up the slack. Theunspoken negativity often intensifies for the remaining staff.Goodwill of the company: The goodwill of a company is maintained when theattrition rates are low. Higher retention rates motivate potential employees to join theorganization.
Regaining efficiency: If an employee resigns, then good amount of time is lost in hiring anew employee and then training him/her and this goes to the loss of the company directlywhich many a times goes unnoticed. And even after this you cannot assure us of the sameefficiency from the new employeeWhat Makes Employee Leave? Employees do not leave an organization without anysignificant reason. There are certain circumstances that lead to their leaving the organization.The most common reasons can be:Job is not what the employee expected· to be: Sometimes the job responsibilities don’tcome out to be same as expected by the candidates. Unexpected job responsibilities lead tojob dissatisfaction.Job and person mismatch: A candidate may be fit· to do a certain type of job whichmatches his personality. If he is given a job which mismatches his personality, then he won’tbe able to perform it well and will try to find out reasons to leave the job.No growth opportunities: No or less learning and growth opportunities in the current jobwill make candidate’s job and career stagnant.Lack of appreciation: If the work is not appreciated by the supervisor, the employee feelsde-motivated and loses interest in job.Lack of trust and support in co workers, seniors and management: Trust is the mostimportant factor that is required for an individual to stay in the job. Non-supportive coworkers, seniors and management can make office environment unfriendly and difficult towork in.Stress from overwork and work life imbalance: Job stress can lead to work life imbalancewhich ultimately many times lead to employee leaving the organization.Compensation: Better compensation packages being offered by other companies may attractemployees towards themselves.
New job offer: An attractive job offer which an employee thinks is good for him with respectto job responsibility, compensation, growth and learning etc. can lead an employee to leavethe organization.Managing Employee Retention:The task of managing employees can be understood as a three stage process:1. Identify cost of employee turnover.2.Understand why employee leave.3.Implement retention strategiesThe organizations should start with identifying the employee turnover rates within aparticular time period and benchmark it with the competitor organizations. This will help inassessing the whether the employee retention rates are healthy in the company. Secondly, thecost of employee turnover can be calculated. According to a survey, on an average, attritioncosts companies 18 months’ salary for each manager or professional who leaves, and 6months’ pay for each hourly employee who leaves. This amounts to major organizational andfinancial stress, considering that one out of every three employees plans to leave his or herjob in the next two years. Understand why employees leave :Why employees leave often puzzles top management. Exit interviews are an ideal way ofrecording and analyzing the factors that have led employees to leave the organization. Theyallow an organization to understand the reasons for leaving and underlying issues. Howeveremployees never provide appropriate response to the asked questions. So an impartial personshould be appointed with whom the employees feel comfortable in expressing their opinions. Implement retention strategy :Once the causes of attrition are found, a strategy is to be implemented so as toreduce employee turnover. The most effective strategy is to adopt a holisticapproach to dealing with attrition.An effective retention strategy will seek to ensure:Attraction and recruitment strategies enable selection of the ‘right’ candidate for
each role/organization New employees’ initial experiences of the organization are positiveAppropriate development opportunities are available to employees, and that they are keptaware of their likely career path with the organizationThe organization’s reward strategy reflects the employee driversHow To Increase Employee Retention Companies have now realized the importance ofretaining their quality workforce. Retaining quality performers contributes to productivity ofthe organization and increases morale among employees/ Four basic factors that play animportant role in increasing employee retention include salary and remuneration, providingrecognition, benefits and opportunities for individual growth. But are they really positivelycontributing to the retention rates of a company? Basic salary, these days, hardly reducesturnover. Today, employees look beyond the money factor.Retention BonusHigher attrition rates within a particular industry have forced companies to usesome innovative strategies to retain employees. Retention Bonus is one of theimportant tools that are being used to retain employees. Retention bonus is anincentive paid to an employee to retain them through a critical business cycle.Retention bonuses are becoming more common in the corporate world becausecompanies are going through more transitions like mergers and acquisitions. They need togive key people an attractive incentive to stay on through these transitions to ensureproductivity. Retention bonuses have proven to be a useful tool in persuading employees tostay. A retention bonus plan is not a panacea. According to a survey, non managementemployees generally receive about 10 percent of their annual salaries in bonuses, whilemanagement and top-level supervisors earn an additional 50 percent of their annual salaries.While bonuses based on salary percentages are the generally used, some companies choose topay a flat figure. In some companies, bonuses range from 25 percent to 50 percent of annualsalary, depending on position, tenure and other factors. Employees are chosen for retentionbonuses based on their contributions to management and the generation of revenue. Retentionbonuses are generally vary from position to position and are paid in one lump sum at the timeof termination. However, some companies pay in instalments as on when the business cyclecompletes. A retention period can run somewhere between six months to three years. It canalso run for a particular project. A projecthas its own life span. As long as the project gets completed, the employees who
have worked hard on it are entitled to receive the retention bonus. For example, theimplementation of a system may take 18 months, so a retention bonus will be offered after 20months. Although retention bonuses are becoming more common everywhere, someindustries are more likely than others to offer them.Retail/wholesale companies are the most appropriate to implement stay-paybonuses, followed by financial service providers and manufacturing firms.Companies of all sizes use retention bonus plans to keep knowledge employeesretained in the company. To retain its key senior employees post merger with EDSCorporation, Mphasis is providing cash component based retention bonus plan for itsemployees. This is mainly to retain good employees and provide them a cash incentive tokeep them motivated. Hire Right Talentemployee retention starts with recruitment. Early departures arise from the wrong recruitmentprocess. Here are a few ways to ensure how to hire the right talent for a particular job. Hireappropriate· candidates. Hire candidates who are actually suitable for the job. For this theemployer should understand the job requirements clearly. Don’t hire under qualified orclearly overqualified candidates.Provide realistic job preview at the time of hiring: Mostly employees leave anorganization because they are given the real picture of their job responsibilities at the time ofjoining. Attrition rate can be reduced if a right person is hired for a right job. Realisticpreview of the job responsibilities can be given to the employment seekers by variousmethods like discussions, trial periods, internships etc.Clearly discuss what is expected from the employee: Before joining theorganization, tell the candidate what is expected from him. Setting wrongexpectations or hiding expectations will result in early leaving of employees.Discuss what the expectations of the employees are: Ask employees what they expect fromthe organization. Be realistic. If their requirements can be fulfilled only then promise them.Or tell them beforehand that their requirements cannot be fulfilled.
Don’t show them an unrealistic picture Culture fit: Try to judge individual’s capability toadapt to the organization’s culture. A drastic change in the culture may give a culture shockto the candidate.Referrals: According to· the research, referred candidates stay longer with theorganization. There is a fear of hampering the image and reputation of the person whoreferred the candidate. Manager Role in RetentionWhen asked about why employees leave, low salary comes out to be a commonexcuse. However, research has shown that people join companies, but leavebecause of what their managers’ do or don’t do. It is seen that managers whorespect and value employees’ competency, pay attention to their aspirations,assure challenging work, value the quality of work life and provided chances forlearning have loyal and engaged employees. Therefore, managers and team leaders play anactive and vital role in employee retention.Managers and team leaders can reduce the attrition levels considerably by creating amotivating team culture and improving the relationships with team members. This can bedone in a following way:Creating a Motivating Environment: Team leaders who create motivatingenvironments are likely to keep their team members together for a longer period of time.Retention does not necessarily have to come through fun events such as parties, celebrations,team outings etc. They can also come through serious events. e.g. arranging a talk by the VPof Quality on career opportunities in the field of quality. Employees who look forward tothese events and are likely to remain more engaged.Standing up for the Team: Team leaders are closest to their team members. While theyneed to ensure smooth functioning of their teams by implementingmanagement decisions, they also need to educate their managers about therealities on the ground. When agents see the team leader standing up for them,they will have one more reason to stay in the team.Providing coaching: Everyone wants to be successful in his or her current job.
However, not everyone knows how. Therefore, one of the key responsibilities will beproviding coaching that is intended to improve the performance of employees. Managersoften tend to escape this role by just coaching their employees. However, coaching isfollowed by monitoring performance and providing feedback on the same.Delegation: Many team leaders and managers feel that they are the only peoplewho can do a particular task or job. Therefore, they do not delegate their jobs asmuch as they should. Delegation is a great way to develop competencies.Extra Responsibility: Giving extra responsibility to employees is another way to get themengaged with the company. However, just giving the extra responsibility does not help. Themanager must spend good time teaching the employees of how to manage responsibilitiesgiven to them so that they don’t feel over burdened.Focus on future career: Employees are always concerned about their future career. Amanager should focus on showing employees his career ladder. If an employee sees that hiscurrent job offers a path towards their future career aspirations, then they are likely to staylonger in the company. Therefore, managers should play the role of career counsellors aswell. How to Improve Employee Retention?People want to enjoy their work so make work fun and enjoyable.Understand that employees need to balance life and work so offer flexible starting times andcore hours. Provide 360 feedback surveys and other questionnaires to foster opencommunication. Consider allowing anonymous surveys occasionally so employees will bemore honest and candid with their opinions. Provide opportunities within the company forcareer progression and cross-training. Offer attractive, competitive benefits .Organizations should target job applications for employees who have characteristics that fitwell with the organizational culture. Upon conducting an interview, seek out traits, such asloyalty. Also, ask the potential employee what motivates them on the job. Having moreinformation about the potential employee’s expectations can help retain them, should they gethired into the company.
Rewards and RecognitionEmployees want to be recognized for a job well done. Rewards and recognitionrespond to this need by validating performance and motivating employees toward continuousimprovement. Rewarding and recognizing people for performance not only affects the personbeing recognized, but others in the organization as well. Through a rewards program, theentire organization can experience the commitment to excellence. When the reward system iscredible, rewards are meaningful; however, if the reward system is broken, the opposite effectwill occur. Employees may feel that their performance is unrecognized and not valued, or thatothers in the organization are rewarded for the wrong behaviours. Unrecognized and novalued performance can contribute to turnover. Recognition for a job well done fills theemployees need to receive positive, honest feedback for their efforts.Need for Rewards and RecognitionRecognition should be part of the organizations culture because it contributes toboth employee satisfaction and retention. Organizations can avoid employeeturnover by rewarding top performers. Rewards are one of the keys to avoidingturnover, especially if they are immediate, appropriate, and personal. A HarvardUniversity study concluded that organizations can avoid the disruption caused by employeeturnover by avoiding hiring mistakes and selecting and retaining top performers.One of the keys to avoiding turnover is to make rewards count. Rewards are to be immediate,appropriate, and personal. Organizations may want to evaluate whether getting a bonus at theend of the year is more or less rewarding than getting smaller, more frequent payouts.Additionally, a personal note may mean more than a generic company award. Employeesshould be asked for input on their most desirable form of recognition. Use what employeessay when it comes time to reward for performance.Designing a Rewards and and Recognition SolutionIn designing a rewards and recognition program, the following guidelines should beconsidered. • Rewards should be visible to all members of the organization.
• Rewards should be based on well-defined, credible standards that have been developed using observable achievements. • Rewards should have meaning and value for the recipient. • Rewards can be based on an event (achieving a designated goal) or based on a time frame (performing well over a specific time period). • Rewards that are spontaneous (sometimes called on-the-spot awards) are also highly motivating and should also use a set criteria and standard to maintain credibility and meaning. • Rewards should be achievable and not out of reach by employees. • Nonmonetary rewards, if used, should be valued by the individual. For example, an avid camper might be given a 10-day pass to a campsite, or, if an individual enjoys physical activity, that employee might be given a spa membership. The nonmonetary rewards are best received when they are thoughtfully prepared and of highest quality. Professionalism in presenting the reward is also interpreted as worthwhile recognition.Rewards should be appropriate to the level of accomplishment received. A cashaward of $50 would be inappropriate for someone who just recommended a process thatsaved the organization a million dollars. Determining the amount of money given is a delicatematter of organizational debate in which organizational history, financial parameters, anddesired results are all factors. Recognition for a job well done can be just as valued andappreciated as monetary awards. Formal recognition program can be used with success. FirstData Resources, a data processing services company that employees more than 6,000individuals in Omaha, Nebraska, uses a formal recognition program (Adams, Mahaffey, andRick,2002). Rewards are given on a monthly, quarterly, and yearly basis, and range fromNebraska football tickets, gift certificates, pens, plaques, mugs, and other items.One of the most popular awards at First Data is called the "Fat Cat Award" thatconsists of: $500 gift check Professional portrait of the employee • Appreciation letter from the CEO and senior management • E-mails, phone calls, and notes from peers
In addition to nonmonetary rewards, employees can be rewarded using money in numerousways. Cash is a welcome motivator and reward for improvingperformance, whether at formal meetings or on the spot. Variable bonuses linked toperformance are another popular reward strategy. Profit sharing and pay-for-skills aremonetary bonus plans that both motivate individuals and improve goal achievement. Smallacts of recognition are valuable for employee daily Retention. Sometimes a personal notemay mean more than a generic company award.In one survey, employees cited the following as meaningful rewards (Moss, 2000): • Employee of the month awards Years of service awards • Bonus pay (above and beyond overtime) for weekend work • Invitations for technicians to technical shows and other industry events • Meaningful and Retention RewardsWhat gives meaning to rewards and recognition? What makes them effective? First, rewardsand recognition should be based on a clear set of standards, withperformance verifiable or observable. The standards for the reward should also be achievable.If the reward is based on an unachievable result, such as a production goal that is beyondemployees power, then those employees will not be motivated. Meaningful rewards andrecognition that are achievable have the greatest impact. Case Studies 1.Employee Retention Best Practices in Keeping and Motivating Employees By LisBeth Claus Ask any CEO of an organization, “What keeps you awake at night?” and you will get a response that relates to people management issues. a main concern for any organization (whether small or large; private, public or nonprofit) is its capacity to attract, engage, and retain the right people. The problem of retention is compounded by the predicted talent shortage resulting from the upcoming retirement of the baby boomers, the scarcity of talent with relevant work skills for today’s jobs, the changing values about work and the high cost of turnover. Research and human resource practices provide us with a number of recommendations to increase employee retention.
2.How Auditing Company X Works with Retaining Valuable Employees : Swedish Case study University essay from Hogskolan i Jonkoping/IHH, EMM (Entrepreneurskap, Marknadsforing, Management) Author: Josip Bogic; Elina Armanto; Maja Cassel;  Abstract: Today, neither employees nor employers seem to take for granted that a person will stay with the same firm until retirement. Yet, keeping employees for longer periods is an imp-ortant challenge for firms. One industry where retention is interesting is the auditing industry in Sweden, this because certain requirements are needed to become an auditor. Firstly, the employee needs to have a Swedish university degree, including specific courses within au-diting/accounting. Furthermore, the person needs practical experience for a specific period of time. Due to these statements the challenge of retaining and motivating valuable employees is crucial for the auditing firms, which is why we have chosen to do a case study at Auditing Company X to see how they work with employee retention. We have compared the findings to our chosen theory, which consist of four categories:the hiring process, in-ternal labor market and career, motivation and performance, and finallyculture and leader-ship. These four categories are initially based on Leigh Branham?s book: ?Keeping the people who keep you in business: 24 ways to hang on to your most valuabletalent? (Bran-ham, 2001).In our conducted case study, at Auditing Company X, we have been able to conclude that thefirm’s retention practices are to a great extend in line with the theoretical framework. Thereare some areas that need further attention from the company, such as an individualizedreward system and communication between managers and employees. Even though there aresome parts to work on the most important aspects of retention, such as having a holistic andlong-term orientation, Auditing Company X seems to have incorporated this into theirpractices successfully.3.Retention: An explanatory study of Swedish employees in the financial sectorregarding leadership style, remuneration and elements towards job satisfactionUniversity essay from Vaxjo universitet/Ekonomihogskolan Author: Sanna Paulsson; LindaLindgren; 
Abstract: Introduction: Companies today are forced to function in a world full of change andcomplexity, and it is more important than ever to have the rightemployees in order to survive the surrounding competition. It is a fact that a toohigh turnover rate affects companies in a negative way and retention strategiesshould therefore be high on the agenda. When looking at this problem area wefound that there may be actions and tools that companies could use to come toterms with this problem. Research told us that leadership, remuneration andelements like participation, feedback, autonomy, fairness, responsibility,development and work-atmosphere is important for job satisfaction and retention.Object: The main objective is to increase the understanding regarding employee’s retentionin relation to leadership style, remuneration and elements such as participation, feedback,autonomy, fairness, responsibility, development and work atmosphere in the SwedishfinancialSector Method: We wanted to investigate how employee of the Swedish financial sectorprefers to be retained, and how they consider and react to the chosen areas.The survey has a quantitative approach with a web based questionnaire andincludes 129 respondents from banks, insurance and finance companies. Thetheoretical framework includes leadership and leadership style, financial as well as non-financial remuneration and research done in later years regarding participation, feedback,autonomy, fairness, responsibility, development and work-atmosphere connected to retention.Conclusion: The result shows that regarding leadership the respondents preferleadership based on relations were they feel appreciation. Both appreciations from the closestmanager as well as the company management influences employee job satisfaction in apositive way. More money was the most common reason for wanting to change jobs, andwhen asking how the remuneration system should be designed, base pay with additionalbonus and benefits were preferred. But also non financial factors such as participation,feedback, autonomy, fairness, responsibility, development and work-atmosphere must betaken in consideration to satisfy since they seem to increase employees? Willingness to stayin the company.
4.What leaders can do to keep their key employees - Retention ManagementUniversity essay from Goteborgs universitet/Foretagsekonomiska institutionenAuthor: Lisa Hedberg; Maria Helnius; [2007-09-03T08:22:31Z]Abstract: Background: retention management is a highly topical subject and animportant dilemma many organizations might face in the future, if not facing italready. We believe that the leader plays a key role in employee retention andretention management. The concept of retention management can both have anarrow, and a broader significance. Both parts of its significance are generallyincluded in this thesis. The background of the thesis present a few articles thatdiscuss issues that makes it important for the organization, and the leaders, to work hard withretention management. The research is based on the leaders in the Finnish case companyTradeka.Following key questions are intended to be answered: What are the consequences betweenleaders actions and employees retention? Which is the leader’s role when it comes toretaining employees? Purpose statement: The purpose of the thesis is to investigate andanalyze how company leaders today can retain their key employees. How can the provisionof key human resources develop a long-term relationship that makes top employees stay inthe company? The study aims to establish the procedure leaders apply to retainemployees. The purpose is to compare the qualitative study, made at the casecompany, with findings from the thesis theoretical framework.Research method:The study is a qualitative, as well as a theoretical study where empirical findings and theorieshas been compared. The intention of investigating and using the Finnish company TradekaLimited as a case company, is to make the information from the theories more valid, and alsothe interest in how retention management works in practice. Eleven qualitative interviewswere conducted at Tradeka? financial department, both with supervisors and employees toget a broader view at the phenomenon retention management. Result: Leaders and their skillin creating a culture of retention, has becoming a key in why people stay and what usually
drives them away from a company. The leader has become the main factor in what motivatespeople’s decision to stay orleave. For organizations to keep its key employees their number one priority should be tolook at their management, because people leave managers and notcompanies. Characteristics in a leader that are of importance, as the leader plays a key role inretention management is: trust builder, esteem builder, communicator, talent developer andcoach, and talent finder. The leader’s relation to the employees plays a central role inretaining employees, because employees need to feel involvement, and that their presencecount. When retention is a core value, good things happen for customers, employees, and thecompany. because employees need to feel involvement, and that their presence count. Whenretention is a core value, good things happen for customers, employees, and the company. FINDINGS・ It is found out that, 40% of respondents are aware of HR Policies and 60 % of respondentsare not aware of HR Policies.・ It is found out that, 76% of respondents are getting right amount of accurateinformation at right time and 24% of respondents are not getting right amount of accurateinformation at right time.・ It is found out that, 82% of respondents are able to meet superior’s expectation and 18%respondents are not able to meet superior’s expectation.・ It is found out that,57% of respondents feels that there pay is on par with compare toemployee’s handling similar responsibilities, and 39% of respondents feels that there pay isless with compare to employee’s handling similar responsibilities.・ It is found out that, 70% of respondents are satisfied with hygiene and cleanliness ofcompany infrastructure and 30% of respondents are not satisfied with hygiene and cleanlinessof company infrastructure.・ It is found out that, 40% of respondents are satisfied with Availability of system, storagefacilities of company and 60% of respondents are not satisfied with Availability of system,storage facilities of company.
・ It is found out that, 78% of respondents skills are recognized by superiors and 22% ofrespondents skills are not recognized by superiors.・ It is found out that, 74% of respondents feel that superiors are taking efforts to motivatethem and 26% of respondents feel that superiors are not taking efforts to motivate them.・ It is found out that, 83% of respondents feel that workload is manageable and 10% ofrespondents feel that workload is very hard to manage.・ It is found out that,55% of respondents feels that the field worker are able to get updateson internal activities, and 45% of respondents feels that the field worker are not able to getupdates on internal activities.・ It is found out that, 89% of respondents feel that the superiors are easilyaccessible and 11% of respondents feel that the superiors are not easily accessible.・ It is found out that, 51% of respondents feel that their complaints are resolved quickly and49% of respondents feel that their complaints are not resolved quickly.・ From weighted Average analysis it is found that most of the respondents aresatisfied with the working hours of the organization・ From weighted Average analysis it is found that roles & responsibilities are clearlydefined by the Reporting heads.・ From weighted Average analysis it is found that employees feel that theirsuperiors commitment towards job is good.・ From weighted Average analysis it is found that respondents feel that training andorientation programs are neither good nor bad.・ From weighted Average analysis it is found that most of the respondents aresatisfied with job.・ From chi-square it is found that there is a significant relationship between Work Cultureof the Company and interpersonal relationship between employees.・ From chi-square it is found that there is a no significant relationship betweenoverall satisfaction and Commitment towards Company.・ From chi-square it is found that there is a significant relationship between overallsatisfaction and aspects of job.・ From Kendall’s coefficient of concordance it is found that there is a significant differencein the rank assigned by respondents towards the attributes that gives them satisfaction in thecompany.・ From One Run Test it is found that the samples are taken randomly.
SUGGESTIONS • Employee should be provided with proper training. • Employee should be appreciated for good work. • Employee should be motivated to welcome the change. • If any changes are brought in to software or any module is added then proper • training should be given. ConclusionRetention is an important concept that has been receiving considerable attentionfrom academicians, researchers and practicing HR managers. In its essence,Retention comprises important elements such as the need or content, search andchoice of strategies, goal-directed behaviour, social comparison of rewardsreinforcement, and performance-satisfaction. The increasing attention paid towards Retentionis justified because of several reasons. Motivated employees come out with new ways ofdoing jobs. They are quality oriented. They are more productive.Any technology needs motivated employees to adopt it successfully. Severalapproaches to Retention are available. Early theories are too simplistic in theirapproach towards Retention. For example, advocates of scientific Managementbelieve that money is the motivating factor. The Human Relations Movement posits thatsocial contacts will motivate workers. Mere knowledge about the theories of Retention willnot help manage their subordinates. They need to have certain techniques that help themchange the behavior of employees.One such technique is reward. Reward, particularlymoney, is a motivator according to need-based and process theories of Retention. For thebehavioral 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 isconsidered to be a powerful motivator. An enriched job has added responsibilities. The makesthe job interesting and rewarding. Job enlargement refers to adding a few more task elementshorizontally. Task variety helps motivate job holders. Job rotation involvesshifting an incumbent from one job to another. Recommendations1. Develop an attractive employee value proposition.An employee value proposition means that your company has something attractive to offerthat is perceived as valuable to an employee. as an employer, you must understand whatmakes your organization attractive to potential recruits and current employees. Brandingyourself as an employer of choice is not just a slick set of marketing tactics. The bestadvocates for an employer’s brand are its current employees. What messages do they send toothers about their employer? Are they honestly saying and believing that, “This is a greatplace to work.”2. Create a total reward structure that includes more than compensation.Every company should have all the normal compensation mechanisms common to their typeof employment. yet, total rewards packages go far beyond money. While money mighttemporarily retain employees, it does not always equate with engagement. People want achance to make a difference and realize themselves. That self-realization is multi-dimensionaland different for each employee. The total reward structure should include, in addition tocompensation, support for employees to attain their personal objectives aligned with the goalsof their organization.3. Give feedback on employee performance on a regular basis.Most managers and employees are not enamored with the performance appraisalprocess in their organization. yet, an effective performance management processserves many purposes. Ongoing performance feedback allows employees to better knowwhere they stand, gives them a formal means to provide input, indicates that their managers
pay attention to them and that their performance matters. This feedback contributes toemployee engagement and retention.4. Be flexible in terms of work-life balance. Workers more and more value a balance betweenwork and life. They want more flexible ways to engage with their employer. To attract andretain workers with different work and career expectations, organizations have to be moreflexible in structuring work andits expectations. It calls for a different managerial mindset and practices thatinvolve letting go of old ways of controlling workers’ time and attendance in favor of resultcriteria such as output, productivity and quality.5. Create a culture of engagement. Employees have become more connected with others inthe organization (and the broader supply-and-customer chain) through project-based teamwork and process management activities. Employees are shifting their loyalty to people,teams and projects and away from company loyalty. It is organizations that create the cultureand climate that allow people, processes and projects to become fully connected and engagedwith one another. Engaged employees are more likely to stay with their employer.6. Train managers to be effective. Exit interviews consistently show that “poor and bad”management practices greatly contribute to an employee’s decision to leave a company. It isimperative to provide supervisors and managers with adequate tools to become effectivemanagers since we cannot assume that these competencies are innate. Professor PatrickConnor, recently retired after teaching 25 years at the atkinson Graduate school ofManagement, isfamous among MBA students and alumni for his ‘Connorisms.’He told them, “youremployees do not work for you, they work for themselves.” When I teach my students aboutmanaging organizations, I have them reflect on what really matters to employees and whatthey are constantly asking of their managers and their organizations. In the end, whatemployees expect of their managers is fairly simple: Can I trust you? are you committed toexcellence? Do you care about me? What people constantly ask of their organization is: Doyou tell the truth? Do you keep promises? Do you act fairly? Do you respect me? Managersand organizations that keep these questions in mind will have a competitive advantage overothers in retaining their employees.
BIBLIOGRAPHYBOOKS・ Human Resource Management C.B.Memoria・ Research methodology C.R.Kothari・ Journals, Newspaper and InternetFor more Notes, Presentations, Project Reports visit • a2zmba.blogspot.com • hrmba.blogspot.com • mbafin.blogspot.com • HDFCbank.com