This document discusses the importance of employee satisfaction and productivity. It provides examples showing that financial incentives alone are not enough, and that disengaged employees cost companies billions per year. The document then examines employee productivity data from HPCL in India. It explores various factors that can increase employee satisfaction, effectiveness and reduce attrition, such as health and wellness programs, social connection, vacations, team building and events. Finally, it proposes that companies could save 75% on employee costs in the first year and 100% in the second year by providing a country club membership to support these factors, compared to investing directly in each employee individually.

1. ARE YOUR
EMPLOYEES
HAPPY?

2. Studies show that Financial
incentives aren't enough to
make for highly productive
employees.

3. employee satisfaction rose 37% as a result of
initiatives—suggesting that financial incentives
aren't enough to make for highly productive
employees.
At Google,

4. WHAT’S THE
COST OF
HIGH
ATTRITION
RATE
?

5. Nearly 70 % of employees were not actively
engaged in their work. These employees cost
employers approximately $500 billion in lost
work, money, and time every year.
This isn’t just affecting large companies – small
companies and start-ups can acutely feel the
effects of disengaged employees.
Gallup’s state of the
American workplace
report for 2012 cited
a disturbing trend in
the workforce.

6. LET’S LOOK AT
HPCL EMPLOYEE
PRODUCTIVITY

7. HPCL is one of the companies that use the Lev and
Schwartz model and correctly analyzing that
employees are part of the “Assets of the company”.
Total Revenue : Rs. 188,736.39 Crore
Total employees as of : 10,538
31st March 2016
Average sales per employee : 18.60 Crore
Total employee cost : 2315 Crore
(1.23 % of revenue )
DID YOU KNOW ?
So assuming there is a
5% increase in
employee productivity,
the business per
employee can jump
93 lakhs per year
*SOURCE: AUDITED ANNUAL REPORT BOB
HPCL

8. Let us look at
the various
factors that
help in
increasing
employee
satisfaction,
effectiveness
and reducing
attrition

9. J&J’s leaders estimate that
wellness programs have
cumulatively saved the
company $250 million on
health care costs over the
past decade; from 2002 to
2008, the return was $2.71
for every dollar spent.
HEALTH FACTOR

10. A recent study by
economists at the University
of Warwick found that
Employees who were socially
more active , were happier
and it led to 12 % spike in
productivity, while unhappy
workers proved 10% less
productive.
Social Connect

11. In 2006, the accounting
firm Ernst & Young did an
internal study of its
employees and found that
for each additional 10 hours
of vacation employees
took, their year end
performance ratings from
supervisors (on a scale of
one to five) improved by
8%.
VACATIONS

12. The main goal of team-building
is to improve productivity and
motivation.. Experiential
activities are a proven tool to
help your people.
Team Building

14. LET US LOOK AT
EMPLOYEE
COSTS FOR 2
COMPANIES

15. LETS TAKE A
MINIMUM
APPROXIMATE
ANNUAL COST
FOR
INCREASING
EMPLOYEE
PRODUCTIVITY

16. Health & Fitness : Rs 65000- Rs 80,000/- (couple)
Social Outings and Special Occasions : Rs. 2,00,000/- (Family of 4)
Vacations (Domestic vacations 3-4,Family of 4) Rs. 2,50,000/-
Events : (2 -3 events, family of 4 ) Rs. 50,000/-
Total : Rs.5,80,000/-

17. Lets compare the cost on employee
investments individually and a Country Club
membership
COUNTRY CLUB MEMBERSHIP AT HALF THE
COST OF INVESTMENT IN EACH EMPLOYEE
AND YET DOUBLE THE PRODUCTIVITY

18. Lets take a minimum
approximate annual cost
for increasing employee
productivity

19. HEALTH & FITNESS RS 65000 - RS 80,000/-
(COUPLE)
FREE
FULL FAMILY
SOCIAL OUTINGS
Rs. 2,00,000/- (Family of 4)
Vacations
(Domestic vacations 3-4,Family of
Cost effective vacations at the
best tourist destinations
Rs. 2,50,000/-
(2 -3 events, family of 4 )
Rs. 50,000/-
Rs.5,80,000/- Annually
Free entry to all numerous
events/ festivals FULL FAMILY
Rs 1,50,000/- Lifetime
Unlimited
FULL FAMILY
EVENTS
TOTAL
Country Club
Rs.5,80,000/-Annually
Rs1,50,000/-Lifetime
1 L
2 L
3 L
4 L
5 L
6 L

20. SAVINGS TO YOUR COMPANY
§ Approximate Savings : Rs 4,30,000/-
per employee per year.
§ Nearly 75% savings on each employee
in the first year. From the 2nd year
nearly100% savings
1st Year
75% Save
2nd Year
100% Save

21. TO CONCLUDE
SMART COMPANIES RECOGINZE
THEIR EMPLOYEES AS THEIR
GREATEST ADVANTAGE.