Job Satisfaction Level and Employee Retention

Impact of Job Satisfaction levels on Employee Retention

CHAPTER: I INTRODUCTION

HUMAN NEEDS MEANING:

An ability to understand and influence human behaviour postulates knowledge of the

needs of man. According to Norman Maire, a need may be defined as “a condition

requiring the supply of relief”. “The lack of anything requisites, desire or useful”. In

opinion of Kolasa, “A need is a personal, unfulfilled vacancy that determines and

organizes all mental processes and all behaviour in the direction of its attainment”.

Needs are not as simple as they are often considered to be. One has to handle

many problems simultaneously; immediate needs of hunger, thirst, sleep, shelter as

well as long range personal goals of job security. Personal needs vary in intensity

from person to person and vary daily within the same person. On the other hand,

unsatisfied needs are the starting points for the understanding of “Motivation”.

Unsatisfied needs produce tension when the individual is unable to satisfy needs,

frustration is the result. Some people will then react in a positive manner known as

constructive behavior and other in a negative manner (defensive behaviour).

MASLOW’S RANK ORDER OF HIERARCHY OF NEEDS:

It is generally not easy to say which of man’s needs are important at a particular time

and place. Psychologists have given considerable thought to this important issue

and have tried to fix priorities for them Prof. A Maslow of Brandels University has

pointed out that “Needs are organized in a series of levels called the hierarchy of

needs or the hierarchy of relative potency”.

Needs, according to Maslow, have a definite sequence of domination i.e., unless the

needs of the lower order are reasonably satisfied, those of the higher order do not

dominate. In lower level needs, Maslow includes the “basic psychological needs” and

“safety and security needs” He regards these are ‘striving needs’ i.e. needs which

make a person do things.

The higher level needs or growth needs are concerned with social needs, esteem

and self actualization needs. Maslow’s need hierarchy theory stresses two

fundamental promises:

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1. Man is a wanting animal whose needs depend on what he already has. Only

needs not yet satisfied can influence behavior. In other words, a satisfied

need is not a motivator.

2. Man’s needs are arranged in a hierarchy of importance once one need is

satisfied another need emerged and demands satisfaction.

Maslow hypothesized five levels of needs these needs are:

1. Physiological Need

2. Safety Need

3. Social Need.

4. Esteem Need.

5. Self Actualization Need.

Basic Physiological Needs:

At the lowest level are the physiological needs. “Man lives by bread alone. As long

as it is not available” Once it is available it ceases to have importance for the time

being. Maslow observed “For a man who is extremely and dangerously hungry, no

other interest exist but food. He dreams food, he remembers food, he thinks about

food, he emotes only food. He perceives only food, and he wants only food,

Freedom, love, community feeling, respect, philosophy, sexual behavior, may all be

waived aside as fripperies, which are useless since they fail to fill the stomach such

a man may fairly be said to live by bread alone”. Mahatma Gandhi put it in another

way “Even God cannot talk to a hungry man except in terms of bread”. Physiological

needs, when constantly gratified, cease to exist as active determinants of behaviour.

Safety Needs:

When physiological needs have been reasonably satisfied, the next higher needs

emerge, viz. the safety needs. The need for security includes:

Avoidance of harm forms the physical environment (too much cold or heat) need for

shelter, protective clothing, artificial warmth, and way of protecting one self.

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Affiliation or Affection Needs:

When man’s physiological and safety needs have been satisfied, his social needs

become important. These needs are concerned with:

1. Getting companionship, associating with someone, having a wife and

children.

2. Seeking acceptance by his fellow beings.

3. Giving and receiving love and affection.

4. Becoming a member of a group, club, society or any other formal

organization.

5. Co-operating with others, Elton Mayo say’s “Man’s desire to be continuously

associated in work with his fellows is strong, if not strongest human

characteristic.

6. Protecting one’s child, infant, weak and older people, when a man’s social

needs are not satisfied, he behaves in a peculiar way which often tends to

defeat organizational objectives. He resists, become antagonistic,

uncooperative and even hostile.

Esteem Needs:

When belonging and affiliation needs are satisfied, then esteem need arise, “where

by individuals desire a high evaluation of themselves”. These needs are concerned

with the awareness of importance to others (Self esteem) and the actual esteem

from others.

1. SELF ESTEEM (i.e. self respect), comprises feelings of competence,

autonomy, achievement, acquisition, retention and confidence. These needs

may be the result of basic physiological and safety needs.

2. ESTEEM FROM OTHERS: This includes the need for recognition, attention,

importance or appreciation from other people, reputation or prestige, status

and power to control.

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Self Actualization Needs:

There are the needs, which help realize one’s own potentialities for continued self

development and for being creative. Maslow pointed out that a man generally wants

to achieve self fulfillment that is he has a tendency to develop his potential. This

tendency might be pleased as the desire to become more and more what one is, to

become everything one is capable of becoming. “To satisfy this need, one may

become a good singer, a reputed author, renowned athlete, an ideal manager or an

ideal mother.

HERZBERG’S TWO FACTORY THEORY:

Maintenance factors, Content Or

Extrinsic Factors.

Satisfiers, Context Factors

Or

Intrinsic Factors.

1. Company policy and administration

2. Quality of supervision.

3. Relations with Supervisors.

4. Peer relations.

5. Relation with subordinates.

6. Pay or Salary.

7. Job Security.

8. Working Conditions

9. Status

1. Achievement.

2. Recognition.

3. Advancement.

4. Work itself.

5. Possibility for growth.

6. Responsibility.

Maslow’s theory has been modified by Herzberg and he called it as “Two factor

theory of Motivation”. According to Herzberg the first groups of needs are such

things as company policy and administration supervision, working conditions, salary

and status and job security. Herzberg called these factors as ‘dissatisfies’ and not

motivators. By this he means that their presence or existence does not motivate, in

the sense of yielding satisfaction. But their absence would result in dissatisfaction.

These are also referred to as ‘Hygiene Factors’ or ‘Maintenance Factors’.

In the second group are the ‘satisfiers’ in the sense they are motivators, which are

related to job content. He included the factors of achievement, recognition,

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challenging work, advancement and growth in the job. He says that their presence

will yield feelings of satisfaction.

The position in India:

In the Indian context, it may be said that psychological needs, these take the form of

job security, security against hazard of life and security against industrial injury. The

safety laws and measures of social security have been designed to satisfy some of

these needs.

As for the higher social needs, they are not easy to satisfy. However close

relationships are built with at least some fellow workers. Ego needs are satisfied to a

very limited extent whereas self realization or self actualization takes very seldom.

The Changing Nature of Human Needs:

As the time has changed, the Human needs have also been changing. If needs are

not satisfied, a person may aim at alternative goals, which hold a promise of

satisfaction or indulge in some kind of defensive behavior in an attempt to his

feelings.

Non attainment of goal, which would satisfy certain needs, is productive of many

serious problems. It should be remembered that when a goal is directed behaviour is

successful, it leads to a release of tensions and the satisfaction of needs, but when

this is not so a frustrated behaviour develops in the form of discouragement,

excessive complaining, bragging, lying, jealousy, frequent change of jobs, excessive

absenteeism, withdrawal from work, day dreaming, wasteful and destructive

behaviour, irritation, annoyance etc.

When people adopt non-rational ways of behaviour to face frustration, they are said

to use their defense mechanism. These are referred to as defense mechanism.

Managers’ role in need fulfillment

As we have stated earlier, need fulfillment is the responsibility of the management

therefore the managers should know what the needs (current) of the employees are

and then should evaluate their legitimacy and finally provide for their attainment.

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The first task before the management is to discover the present needs of an

employee. Having known the needs, the management is required to take some

decision as to how these needs can be fulfilled. Finally, the management thinks of

various ways in which needs could be fulfilled. These are discussed below:

a) Fulfillment of physiological needs, providing reasonable wage and salaries

with which basic necessities of life may be purchased.

b) The need for security can be fulfilled by providing a consistent, fair and

concerned attention to the workers. Medical and hospitalization insurance,

disability compensation, pension plan, social security, benefits etc. are the

measures through which economic security can be provided.

c) The need for affiliation can be fulfilled by providing for work breaks, arranging

organization wise and department wise picnics and banquets and proper job

assignments.

d) Competence need: The management can help to develop a feeling of

competency by assessing the capabilities of employees, necessary training,

communication and material assistance and feedback for successful

performance can be provided.

e) The reputation need is often fulfilled by giving praise, promotion, salary

increase giving prizes for services rendered etc, are the management

response to the needs of needs of workers for esteem and recognition.

f) The need for power is fulfilled by delegation of authority. The need for

achievement can be fulfilled by assigning greater delegation of decision-

making duties and assignments of high risk task.

QUALITY OF WORK LIFE

INTRODUCTION:

Employees at the grass Root level experience a sense of frustration because of low

level of wages, poor working conditions, unfavorable terms of employment, in human

treatment by their superior, inter personal conflicts, role conflicts, job pressures, lack

of freedom in work, absence of challenging work etc.

Work was worship and people had sincerity and commitment to work. But norms

have been changing from time to time.

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MEANING:

There has been much concern today about the decent wages, convenient working

hours, conducive working conditions etc. There is no generally acceptable definition

about this term; however some attempts have been made to describe the term

quality of work life. “It refers to the favourableness or unfavourableness of a job

environment for people.”

Quality of work life improvements are defined as “any activity which takes place at

every level of an organization which seeks greater organizational effectiveness

through the enhancement of human dignity and growth.

RICHARD E. WALTON explains quality of work life in terms of eight broad conditions

of employment that constitutes desirable quality of work life. He proposed these

criteria for measuring quality of work life. Those condition criteria include:

a) Adequate and fair compensation: There are different opinions about

adequate compensation. The committee on fair wage defined fair wage as

“The wage which is above the minimum wage but below the living wage”.

b) Safety and Healthy working conditions: Most of the organizations provide

safe and healthy working conditions due to humanitarian requirements and or

legal requirements. In fact these conditions are a matter of enlightened self-

interest.

c) Opportunity for career growth: Opportunity for promotions is limited in case

of all categories of employees either due to educational barrier or due to

limited openings at the higher level. Quality of work life provides future

opportunity for continued growth and security by expanding one’s capabilities,

knowledge and qualifications.

d) Opportunity to use and develop human capacities: Contrary to the

traditional assumptions, quality of work life is improved “to the extent that the

worker can exercise more control over his or her work.” Further quality of work

life provides for opportunities like autonomy in work and participation in

planning in order to use human capabilities.

e) Social integration in the work force: Social integration in the work force can

be established by creating freedom from prejudice, supporting primary work

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groups a sense of community and interpersonal openness and upward

mobility.

f) Work and quality of life: Quality of work life provides for balanced

relationship among work, non-work and family aspects of life. In other words

family life and social life should not be strained by working hours including

over time work, work during inconvenient hours, business travel, transfers,

vacations etc.

g) Constitutionalism in the work organization: Quality of work life provides

constitutional protection to the employees only to the level of desirability as it

hampers workers. It happens because management’s action is challenged in

every action and bureaucratic procedure needs to be followed at that level.

Constitutional protection is provided to employees on such matters as privacy,

free speech, equity and due process.

h) Social Relevance of work: Quality of work life is concerned about

establishment of social relevance to work in a socially beneficial manner. The

employees self esteem would be high if his work is useful to the society and

the vice versa is also true.

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SPECIFIC ISSUES IN QUALITY OF WORK LIFE

Employees claim that they are responsible for the improvement in various

facilities to workers whereas management takes credit for improved salaries,

benefits and facilities. However human resource manager has specific issues in

quality of work life besides normal wages, salaries fringes etc. and take lead in

providing them so as to maintain higher order quality of life. Some of the major

qualities of work life issues are:

1. Pay and stability of employment: Good pay still dominates most of the

other factors in employee satisfaction. Cost of living index, increase in

levels and rate of income tax and profession tax should be taken into

consideration while computing salary.

2. Occupational Stress: Stress is determined by the nature of work, working

conditions, working hours, pause in work schedule, workers abilities and

nature and match with the job requirement. Stress is caused due to

irritability or depression, unstable behavior, fatigue, troubling psychometric

pains, heavy smoking and drug abuse. The personnel manager can help

the employees to get rid of these problems.

3. Alternative work schedule: It includes flexible working timings, work from

home, part time employment which may be introduced for the convenience

and comfort of the worker.

4. Participative management and control works: Employees participation

in decision making improves the quality of work.

5. Recognition: Rewarding systems, congratulating the employees for their

achievement, job enrichment, promotions decent work places,

membership in clubs are some means to recognize the employees.

6. Congenial worker supervisor relations: Harmonious supervisor worker

relation gives the worker a sense of social association belongingness

achievement of work result etc. This in turn leads to better quality of work

life.

7. Grievance procedure: Workers have a sense of fair treatment when the

company gives them the opportunity to ventilate their grievance and

represent their case properly rather than settling the problems arbitrarily.

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8. Adequacy of resource: Resource should match with stated objectivity;

otherwise employees will not be able to attain the objectives. This results

in employee dissatisfaction and lower Quality of work life.

9. Employment on permanent basis: Employment of worker on casual,

temporary, probationary basis gives them a sense of insecurity on the

other hand employment on permanent basis gives them security and leads

to higher order quality of work life.

10.Seniority and merit in promotion: Seniority is generally taken as the

bases for promotion for operating employees. Merit is considered as the

basis for advancement of managerial people whereas seniority and merit

is preferred for promotion of ministerial employees. The promotional

activities should be fair and just in order to ensure higher quality of work

life.

Implementing all these strategies ensures higher level of quality of work life.

SPECIFIC AREA OF THE TOPIC CHOSEN

JOB SATISFACTION

MEANING

LOCKE gives a comprehensive definition of job satisfaction as “a pleasurable or

positive emotional state resulting from the appraisal of one’s job or job experience”.

Job satisfaction is a result of employee’s perception of how will their job provide

those things that are viewed as important. It is generally recognized in organizational

behavior field that job satisfaction is the most important and frequently studied

attitude.

Job satisfaction is a combination of psychological, physiological and environmental

factors that makes a person to admit “I am happy at my job”. When the employees

get satisfied with the job then retaining them is not difficult. Job satisfaction and

retention are interlinked. Several studies have been conducted on job satisfaction,

new research findings on employee job satisfaction conducted by the Human

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Performance Institute have shown that free cafeteria food and flexible programs

aren’t enough. An employee’s job satisfaction depends as much on the positive

mental, spiritual, physical, and emotional resources the employee brings to the

workplace. Successful organizations realize employee retention and talent

management are integral to sustaining their leadership and growth in the

marketplace. Becoming an Employer of Choice by retaining high-caliber employees

in today's labor market should be the highest priority.

Employee Retention involves taking measures to encourage employees to remain in

the organization for the maximum period of time. Corporate is facing a lot of

problems in employee retention these days. Hiring knowledgeable people for the job

is essential for an employer. But retention is even more important than hiring. There

is no scarcity of opportunities for a talented person. There are many organizations

which are looking for such employees. If a person is not satisfied by the 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 their employees. The top

organizations are on the top because they value their employees and they know how

to keep them glued to the organization. Employees stay and leave organizations for

some reasons. The reason may be personal or professional. These reasons should

be understood by the employer and should be taken care of. The organizations are

becoming aware of these reasons and adopting many strategies for employee

retention. Employees today are different. They are not the ones who don’t have good

opportunities in hand. As soon as they feel dissatisfied with the current employer or

the job, they switch over to the next job. It is the responsibility of the employer to

retain their best employees. If they don’t, they would be left with no good employees.

A good employer should know how to attract and retain its employees. Retention

involves five major things:

Compensation: Compensation constitutes the largest part of the employee

retention process. The employees always have high expectations regarding

their compensation packages. Compensation packages vary from industry to

industry. So an attractive compensation package plays a critical role in

retaining the employees.

Environment: It is not about managing retention. It is about managing

people. If an organization manages people well, employee will take care of

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http://retention.naukrihub.com/



itself. Organization environment includes culture, values, company reputation,

quality of people in the organization, employee development & career growth,

risk taking, leading technologies & trust.

Growth: 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.

Relationship: Sometimes the relationship with the management and the

peers becomes the reason for an employee to leave the organization. The

management is sometimes not able to provide an employee a supportive work

culture and environment in terms of personal or professional relationships.

There are times when an employee starts feeling bitterness towards the

management or peers. This decreases employee’s interest and he becomes

de-motivated. It leads to less satisfaction and eventually attrition.

Support: Lack of support from management can sometimes serve as a

reason for employee retention. Supervisor should support his subordinates in

a way so that each one of them is a success.

INFLUENCE ON THE JOB SATISFACTION

There are a number of factors that influence job satisfaction. Smith, Kendall and

Hulin have suggested that there are five job dimensions that represent the most

important characteristics of a job about which people have effective responses.

These are

1. The Work itself: The content of work itself is a major source of

satisfaction. Feedback from the job and autonomy are two of the major job

related motivational factors. Some of the important ingredients of a

satisfying job covered by surveys include interesting and challenging work,

that is not boring and a job that provides status.

2. Pay: Salaries are recognized to be a significant but cognitively complex

and multidimensional factor in job satisfaction. Money not only helps

people attain their basic needs but is instrumental in providing upper level

satisfaction. Recent research indicated that if employees are allowed

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some flexibility in choosing the type of benefits they prefer within a total

package, called a flexible benefits plan, there is a significant increase in

both benefits and overall job satisfaction.

3. Promotions: Promotional opportunities seem to have a varying effect on

job satisfaction, because prom options take a number of different forms

and have a variety of accompanying rewards .Individual who are promoted

on the basis of performance.

4. Supervision: It is another moderately important source of job satisfaction.

This seems to be two dimensions of supervisory style that affect job

satisfaction. One is employee centeredness, which is measured by the

degree to which a superior takes a personal interest in the employees’

welfare. The other is participation or influence, as illustrated by managers

who allow their people to participate in decisions that affect their own jobs.

5. Working conditions: Working condition has a modest effect on job

satisfaction. If the working conditions are good (Clean, attractive,

surroundings for instance), the personnel will find it easier to carry out their

jobs. If the working conditions are poor (hot noisy surroundings, for

example), personnel will find it more difficult to get things done.

6. Environmental impact: Job satisfaction is one part of employee

satisfaction the nature of one’s environment, off the job indirectly

influences ones feeling on the job. Similarly, since a job is an important

part of life for many workers, job satisfaction influences one’s general life

satisfaction.

When people are satisfied, they will spread well about the organization. When the

good will of the company goes up:

New qualified and dynamic entrees show their interest in joining the

Organization.

Individual become affectionate with the Organization.

A Satisfied employee lives peacefully both inside and outside. It improves the

productivity and reduces the absenteeism and labor turn over. On the contrary, a

chronically upset individual makes the organizational life vexatious for others with

whom he interacts.

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OUTCOMES OF JOB SATISFACTION

To society as a whole as well as from an individual employees stand point, job

satisfaction in and of itself as a desirable outcome. It is important to know that if job

satisfaction is high, will the employees perform better and the organization is more

effective? If job satisfaction is low will there be performance problems and

ineffectiveness? In examining the outcome of job satisfaction, it is important to break

down the analysis into a series of specific subtopics. The following sections examine

the importance of these.

1. Satisfaction and Productivity: The satisfaction- performance controversy

has raged over the years. Satisfied workers will not necessarily be the

highest producers. There are many possible moderating variables, the

most important of which seem to be rewards. If people receive rewards

they feel are quotable, they will be satisfied and this is likely to result in

greater performance effort. Recent research evidence indicates that

satisfaction may not necessarily lead to individual performance

improvement but does lead to departmental and organizational level

improvement.

2. Satisfaction and Turnover: High job satisfaction will not, in and of itself,

keep turnover low, but it does seem to help. On the other hand if there is

considerable job dissatisfaction, there is likely to be high turnover. The

factor which affect satisfaction and turnover are job tenure commitment to

organization, general economy etc. even if they are satisfied, and many

people are willing to leave if the opportunities elsewhere promise to be

better. On the other hand if jobs are difficult to get and downsizing is

occurring, as it has in recent years, dissatisfied employees will stay where

they are. Job satisfaction is important in employee turnover. Although

absolutely no turnover is necessarily beneficial to the organization, a low

turnover rate is usually desirable because of training costs and the

drawbacks of the inexperience.

3. Satisfaction and Absenteeism: Research has pretty well demonstrated

an inverse relationship between satisfaction and absenteeism. When

satisfaction is high absenteeism tends to be low, when satisfaction is low

absenteeism tends to be high. There are moderating variables such as the

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degree to which people feel that their jobs are important. For e.g.,

Research among State government employees have found that those who

believed that their work as important had lower absenteeism than those

who did not feel this way. It is important to remember that high job

satisfaction will not necessarily result in low absenteeism; low job

satisfaction brings about high absenteeism.

4. Other effects, such as citizenship behaviors: In addition to those noted

above, there are a number of other effects brought about by high job

satisfaction. Research reports that highly satisfied employees tend to have

better mental and physical health, learn new job related task more quickly,

have fewer on the job accidents and file fewer grievances. Also on the

positive side, it has recently been found that satisfied employees are more

likely to exhibit pro social “citizenship” behavior and activities such as

helping co workers, helping customers and being more co operative.

From an overall stand point, then most organizational behavior researchers as

well as practicing managers would argue that job satisfaction is important to an

organization. But when job satisfaction is low, there seems to be negative effects

on the organizations , so if only from the stand point of viewing job satisfaction a

minimum requirement or point of departure, it is of value of the organizations

overall health and effectiveness and is deserving of study and application in the

field of Organizational behavior.

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STUDIES CONDUCTED FOR JOB SATISFACTION

New research findings on employee job satisfaction conducted by the Human

Performance Institute have shown that free cafeteria food and flexible programs

aren’t enough. An employee’s job satisfaction depends as much on the positive

mental, spiritual, physical, and emotional resources the employee brings to the

workplace, according to data gathered from 75,000 working adults on a three-year

study of personal energy management and work-life balance.

“The people who score in the top 10 percent of job satisfaction report they are also

taking care of themselves in the mental, emotional, spiritual and physical realms,”

says Dr. Jim Loehr, CEO of the Human Performance Institute in Orlando.

“Furthermore, people who report the highest job satisfaction are highly self-confident

individuals,” adds Loehr, who notes an 85% correlation between high job satisfaction

and self-confidence. “They are not only satisfied with their jobs; they also feel

competent in work and life. These two are mutually reinforcing.”

The top 10 percent of people said they “agree” or “strongly agree” to the statement,

“I am happy and satisfied in my job.” They also exhibit positive energy management

habits to a far greater degree than people in the bottom 10 percent of job

satisfaction.

For instance, their average exercise and fitness score is 170 percent of those in the

bottom 10 percent of job satisfaction. Their nighttime sleep score is 154 percent of

those in the bottom 10 percent. Their overall rest and recovery, which includes

daytime rest breaks and constructive diversions from work, is 149% of those with the

lowest job satisfaction. Their nutrition is 126% of those in the lowest group. “These

are individuals who have somehow found a way to harness their own sources of

physical energy and motivation, in spite of the distracting environment in which most

of us live today,” Loehr says.

Even more dramatic are the differences in the two groups’ management of “spiritual”

energy—practices related to beliefs about the meaning of life. Those with the highest

job satisfaction score about 250 percent higher on commitment, passion, self-

confidence, vision, and purpose than those in the lowest 10 percent of job

satisfaction.

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“It is tempting, based on these numbers, to think that job satisfaction can be

addressed through good candidate selection,” Loehr adds. “And to some extent, it

can. But employers get only one chance at good selection with each opening they

fill, while they have a daily opportunity to encourage people towards practices that

renew physical energy, and as well as the opportunity to encourage employees’ self-

confidence through training and recognition. If the tensions of the job take away

energy, enthusiasm and time for self-renewal, the individual with high job satisfaction

is at risk for becoming less engaged.”

Human Performance Institute describes five ways employers can create a satisfying

work environment:

1. Build employees’ competence and self-confidence through training, feedback and

recognition. “There is a very close relationship between high job satisfaction and

feelings of effectiveness on the job,” says Dr. Loehr. “Encouragement of genuine

self-confidence is probably the number one way to achieve higher job satisfaction.”

2. Communicate the value of the organization’s products and services, and the role

the organization plays in the marketplaces where it operates. “People with high job

satisfaction also report an extraordinarily high sense of mission, vision and passion

for their work,” says Loehr. “They feel their work is consistent with their values. They

couldn’t achieve that feeling if their employers didn’t enable them to get meaningful

insight about the value they provide to customers."

3. Encourage and reward thoughtful risk-taking. “People with high job satisfaction

also score high on the desire to try novel approaches, face challenges and perform

problem-solving both individually and in groups,” says Loehr. “They appear to have

an appetite for mission-driven change. They also rate themselves very high on

perseverance.”

4. Encourage positive workplace relations. “People who are highly satisfied in their

jobs report good feelings about their bosses, peers and coworkers,” says Loehr.

“Their feelings of opportunity are elevated, and they perceive a low hassle-factor.”

5. Encourage meaningful rest breaks and light diversion. “High job satisfaction

correlates strongly with the feeling of having fun at work,” says Dr. Loehr. He adds:

“This is consistent with our thirty years of research on world-class athletes. Top

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performers in every field know how to enhance performance through rest and

recovery.”

A work environment that constantly raises an employee’s self esteem ,above that

he/she experiences anywhere else in their life ,will be where he/she most desires to

spend their time and yields very high employee satisfaction with their job and costs

next to nothing.

Principle: People do more of what they enjoy and less of what they don’t enjoy.

Consequence: People who enjoy working are more productive.

Job satisfaction can be defined as a person’s emotional response to aspect of work

(such as pay, supervision and benefits) or to the work itself.

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CHAPTER: II REVIEW OF LITERATURE & RESEARCH DESIGN

STATEMENT OF THE PROBLEM

Management needs information on job satisfaction of the employees in order to

make decisions both in preventing and solving employee problem. Effective

behavioral management that continuously works to build a supportive human climate

in an organization, commitment are of major interest to the fields of Organizational

behavior and the practice of human Resource management.

Organizational culture is a relatively enduring quality of the internal environment that

is experienced by the members; employee behavior can be described in terms of

values of the Organization. It is important for an organization to obtain employees’

opinion on the job of the Organization and find out whether the employees are

satisfied because it greatly influences the productivity and reduces the attrition rate

of the organization.

Hence the project work focuses on the attitude of employees in IT sectors, Banks,

Insurance & FMCGs companies towards their jobs and way to use their information

effectively to monitor and improve job satisfaction of the employees and to retain

them.

NEED AND IMPORTANCE OF THE STUDY

Job satisfaction of employees is an important aspect in the functioning and growth of

any organization. It helps to identify the dissatisfaction level of the employees. So the

employees’ satisfaction can be attained as a result the employees will be retained in

the organization. Retaining the knowledge pool and at the same time ensuring cost

saving is really what the Industry is looking at.

Since job satisfaction plays a major role in any organization, different aspects are to

be studied and analyzed, so that a clear picture emerges. Further based on the

results and analysis recommendations can be given.

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Turnover among employees is costly and is related to Job satisfaction, therefore

learning more about the requirements among employees of an organization may

assist organizations in enhancing job satisfaction for the employees.

For the companies, the employee turnover is not only in terms of the cost involved in

the hiring and training of the individuals but also the opportunity lost and cost.

Retaining the knowledge pool and at the same time ensuring cost saving is really

what the industry is looking at. The Human Resource of any company is responsible

for company’s success. So satisfying and retaining them is the utmost important

factor for the Company.

In this view, this dissertation has been aimed at studying satisfaction levels of the

employees at IT sector, Insurance, Banks & FMCGs and hence to formulate

retention strategies for the employees in the organization.

REVIEW OF A FEW PREVIOUS STUDIES

Zytowski described job satisfaction as being “proportionate to the degree that the

elements of the job satisfy the particular need which the person feels most strongly.”

The Harvard business review reports that a 5% increase in retention results in a

10% decrease in cost and productivity increases ranging from 25% to 65%.Many

companies and organizations feel compensation is the dominate factor in employee

satisfaction. Consequently, employers attempt to buy employee satisfaction with

increased pay and benefits.

“The people who score in the top 10 percent of job satisfaction report they are also

taking care of themselves in the mental, emotional, spiritual and physical realms,”

says Dr. Jim Loehr, CEO of the Human Performance Institute in

Orlando.“Furthermore, people who report the highest job satisfaction are highly self-

confident individuals,” adds Loehr, who notes an 85% correlation between high job

satisfaction and self-confidence. “They are not only satisfied with their jobs; they also

feel competent in work and life. These two are mutually reinforcing.”

According to Vroom (1967), job satisfaction is the reaction of the workers against the

role they play in their work.

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Similarly, Blum and Naylor (1968) define job satisfaction as a general attitude of the

workers constituted by their approach towards the wages, working conditions,

control, promotion related with the job, social relations in the work, recognition of

talent and some similar variables, personal characteristics, and group relations apart

from the work life.

Age is one of the factors affecting job satisfaction. Studies conducted in five different

countries prove that the elder workers are more satisfied (Davis 1988). Kose (1985)

has also found a meaningful relation between the age and job satisfaction.

Wichita Eagle, 10/21/2006: In a world of high turnover rates costing employers

hundreds of thousands of dollars, one Wichita-based health care organization may

have a tool to help combat the problem. Officials at Via Christi Senior Services are

lauding a simple but effective employee screening computer program for reducing

employee turnover at one facility by 35 percent and saving the organization nearly a

quarter-million dollars this year. "The only thing we did different was adding this

screening tool," said John Buselt, who directs Via Christi Health System's absence

management programs. Buselt researched a number of solutions to the employee

retention problem before deciding to tackle it pre-employment.

Insufficient education, inability to select qualified workers for the job, lack of

communications, lack of job definitions, all affect job satisfaction negatively (Oncir

1990).

The effects of the motivator and hygiene factors on the job satisfaction do not vary

according to sex (Bilgin 1986).

Demirel (1989) has conducted a survey which included librarians working at 28

university libraries in Turkey. As a result, she stated that independence, use of

talents, physical working conditions, relations with the colleagues, recognition by the

work conducted, acquiring respect and social security have influence upon the job

satisfaction of librarians.

Job Satisfaction of Recent Graduates in Financial Services by Sharon A.

DeVaney and Zhan (Sandy) Chen Purdue University: In a survey on job

satisfaction among recent college graduates in financial planning, respondents were

asked to rank such factors as realization of expectations, company support, attitude,

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http://www.bls.gov/opub/cwc/#author2




relationships with coworkers, and pay; the results, which indicate that these workers

are reasonably satisfied with their jobs, support a "bottom-up" theory in which

individuals sum up the positive and negative factors related to their jobs and decide

how satisfied they are on that basis.

California Univ Irvine Graduate School of Administration

A study is reported of the variations in organizational commitment and job

satisfaction, as related to subsequent turnover in a sample of recently-employed

psychiatric technician trainees. A longitudinal study was made across a 10 1/2 month

period, with attitude measures collected at four points in time. For this sample, job

satisfaction measures appeared better able to differentiate future stayers from

leavers in the earliest phase of the study. With the passage of time, organizational

commitment measures proved to be a better predictor of turnover, and job

satisfaction failed to predict turnover.

OBJECTIVE OF THE STUDY

1. To measure the impact of Job Satisfaction levels on employee retention.

2. To find out whether jobs are interesting and challenging for private company’s

employees.

3. To analyze the nature of work environment in the organization.

4. To find whether employees are satisfied by the co operation they receive from

their co-workers.

5. To obtain employees opinion on Organizational culture and satisfaction level of

employees.

6. To find whether the employees are satisfied with the advancement and growth in

the Organization.

7. To formulate retention strategies for the Organization.

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OPERATIONAL DEFINITION OF CONCEPTS

Job satisfaction is in regard to one's feelings or state-of-mind regarding the nature

of their work. Job satisfaction can be influenced by a variety of factors, e.g., the

quality of one's relationship with their supervisor, the quality of the physical

environment in which they work, degree of fulfillment in their work, etc.

(To my knowledge, there is no strong acceptance among researchers, consultants,

etc., that increased job satisfaction produces improve job performance -- in fact,

improved job satisfaction can sometimes decrease job performance. For example,

you could let sometime sit around all day and do nothing. That may make them more

satisfied with their "work" in the short run, but their performance certainly didn't

improve.)

Retention of employees is the process of holding employees from getting them lost

from the organization. Successful organizations realize employee retention and

talent management are integral to sustaining their leadership and growth in the

marketplace. Becoming an Employer of Choice by retaining high-caliber employees

in today's labor market should be the highest priority.

HYPOTHESES

Ho: Job Satisfaction levels have impact on employee retention.

Ha: Job Satisfaction levels do not have impact on employee retention.

SCOPE OF THE STUDY

As job satisfaction plays a major role in enhancing productivity, the study was

conducted to find out the degree to which they are satisfied with respect to various

factors like work, pay, promotional opportunities, leadership and co-operation from

workers which were collected from the critical complements of employees’ job

satisfaction.

The study was restricted IT sector, Insurance, Banks & FMCGs.

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METHODOLOGY

INTRODUCTION

Research is a systematic inquiry whose objective is to provide information to solve

managerial problems. Business research courses recognize that students preparing

to manage business, not for profit and public organization in all functional areas need

training in a disciplined process for conducting an inquiry of management dilemma,

the probable or opportunity that requires a management decision. Three factors

stimulating an interest in scientific approaches to decision making are:

The managers increased need for more and better information.

The availability of improved techniques and tools to meet this need.

The resulting information overloaded if discipline is not employed in the

process.

The type of research that is done is a Descriptive study, where data is collected from

employees through a structured questionnaire. The data is used to draw inference

and conclusion about the employee satisfaction.

In addition to questionnaire, few of the employees are interviewed in order to gain

more insight into the area of study.

TYPE OF RESEARCH

The research is a Descriptive Study, wherein the primary data has been collected

from the employees through a structured questionnaire. The questions were close

ended questions having options in it.

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SAMPLE DESIGN

SAMPLING TECHNIQUE

Stratified random sampling is used for the study. This method is useful when the

population consists of a number of heterogeneous subpopulation as a whole. Thus

population is divided into these differing sub population called strata. A simple

random sample, called a sub sample is drawn from each stratum or group.

Executives and Unit managers/ Team Leaders of various work teams are randomly

selected to fill the questionnaire. This gives a good sampling result as different team

will contain different types of person.

SAMPLE SIZE

The IT sector, Insurance, Banking & FMCGs has been chosen for survey and

information is collected from the Sample. As per the requirement the Sample size

considered for survey is to meet 60 respondents.

SAMPLE DESCRIPTION

The respondent who is surveyed using the questionnaire approach includes

Financial Advisors, Team leaders, Unit Managers, Sales Executives, Business

Analysts, Technical Support Executives from various teams of the companies.

My expectation in studying the samples is of course, that to find about the sample

will be true of the population as a whole. The employees are selected from different

departments and all the required information is collected by questionnaire method

and the data collected is finally analyzed.

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SOURCES OF DATA

Selection of sources of information refers to the approach used to gather data. It

relies heavily on the topic to be studied.

There are two broad approaches:

Primary data collection

Secondary data collection

Primary data will be collected from the respondents who confirmed to a

predetermined criterion using questionnaire approach.

Secondary data can be available in books, journal articles, newspapers &

magazines, conference papers, reports, archives, electronic database, internet.

Data has been collected based on questionnaire method.

The questionnaire is considered the backbone of any quantitative research and

hence need to be designed, developed and tested thoroughly. The questionnaire

contains closed ended questions however the emphasis will be on closed ended

questions as getting the employee to think more in the questions is a difficult job.

Closed ended questions are those that provide the respondent a menu to choose

from various given option and are easy to evaluate. Questions will be developed for

finding out opinion of the respondents, accessing their cognition levels and their

experience.

The data required to be collected for the study is formed into appropriate questions,

grouped under different heads like personal data, expected requirements and actual

requirements.

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TOOLS AND TECHNIQUES FOR DATA COLLECTION

Questionnaire as is one of the powerful tools used to collect the required data for

study; it is prepared consciously asking specific questions for the employees to

answer.

The questions are well thought of after defining the problem and the motto of the

research. The other advantage of the questionnaire is it can be personally conveyed

or by friends or through mails also and get direct feedback, it can be updated as and

when required. It can be stored for any future analysis.

PLAN OF ANALYSIS

It is a generally accepted proposition that the longevity of an employee in a private

organization is influenced by the satisfaction of the employee in the organization.

The data collected through questionnaire for this purpose is tabulated suitably and

graphs and charts are used to analyze the data. Correlation is also used to analyze

the data.

OTHER SOFTWARE USED FOR DATA ANALYSIS

Microsoft Words, graphs and tables are used for analysis of the data. Graphs

represented are in the form of pie charts & bar diagrams.

Microsoft Excel is used for calculations of various data.

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LIMITATIONS

1. Limited scope in terms of area i.e. only Bangalore.

2. Analysis of data obtained is done on the assumption that the respondents gave

correct information.

3. It is conducted only on the employee satisfaction & their expectations assuming

that the responses of the employees are genuine.

4. Time barrier – time limit within which the study has to be completed is too short.

5. Respondents may not disclose the true information about the organization.

OVERVIEW OF CHAPTER SCHEME

1. Title page.

2. Student’s Declaration

3. Certificate signed by both Guide and Director

4. Acknowledgement

5. Executive summary

6. Table of contents

7. Chapter I – Introduction

8. Chapter II – Review of Literature & Research Design

9. Chapter III – Profile of the Research

10.Chapter IV – Analysis and Interpretation of Data

11.Chapter V – Summary of findings, Conclusion and Recommendations.

12.Bibliography

13.Annexure

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CHAPTER III: PROFILE OF THE RESEARCH

Profile of IT Industry:

Information Technology (IT) industry in India is one of the fastest growing industries.

Indian IT industry has built up valuable brand equity for itself in the global markets. IT

industry in India comprises of software industry and information technology enabled

services (ITES), which also includes business process outsourcing (BPO) industry.

India is considered as a pioneer in software development and a favorite destination

for IT-enabled services. The origin of IT industry in India can be traced to 1974,

when the mainframe manufacturer, Burroughs, asked its India sales agent, Tata

Consultancy Services (TCS), to export programmers for installing system software

for a U.S. client. The IT industry originated under unfavorable conditions. Local

markets were absent and government policy toward private enterprise was hostile.

The industry was begun by Bombay-based conglomerates which entered the

business by supplying programmers to global IT firms located overseas.

Today, Indian IT companies such as Tata Consultancy Services (TCS), Wipro,

Infosys and HCL are renowned in the global market for their IT prowess. Some of the

major factors which played a key role in India's emergence as key global IT player

are:

Indian Education System

The Indian education system places strong emphasis on mathematics and science,

resulting in a large number of science and engineering graduates. Mastery over

quantitative concepts coupled with English proficiency has resulted in a skill set that

has enabled India to reap the benefits of the current international demand for IT.

High Quality Human Resource

Indian programmers are known for their strong technical and analytical skills and

their willingness to accommodate clients. India also has one of the largest pools of

English-speaking professionals.

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Competitive Costs

The cost of software development and other services in India is very competitive as

compared to the West.

Infrastructure Scenario

Indian IT industry has also gained immensely from the availability of a robust

infrastructure (telecom, power and roads) in the country.

In the last few years Indian IT industry has seen tremendous growth. Destinations

such as Bangalore, Hyderabad and Gurgaon have evolved into global IT hubs.

Several IT parks have come up at Bangalore, Hyderabad, Chennai, Pune, Gurgaon

etc. These parks offer Silicon Valley type infrastructure. In the light of all the factors

that have added to the strength of Indian IT industry, it seems that Indian success

story is all set to continue.

Profile of Insurance Sector

Insurance sector in India is one of the booming sectors of the economy and is

growing at the rate of 15-20 per cent annum. Together with banking services, it

contributes to about 7 per cent to the country's GDP. Insurance sector in India was

liberalized in March 2000 with the passage of the Insurance Regulatory and

Development Authority (IRDA) Bill, lifting all entry restrictions for private players and

allowing foreign players to enter the market with some limits on direct foreign

ownership. There is a 26 percent equity cap for foreign partners in an insurance

company. There is a proposal to increase this limit to 49 percent. The opening up of

the insurance sector has led to rapid growth of the sector. Presently, there are 16 life

insurance companies and 15 non-life insurance companies in the market. The

potential for growth of insurance industry in India is immense as nearly 80 per cent of

Indian population is without life insurance cover while health insurance and non-life

insurance continues to be well below international standards.

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Profile of Banking Sector

The growth in the Indian Banking Industry has been more qualitative than

quantitative and it is expected to remain the same in the coming years. The Public

Sector Banks (PSBs), which are the base of the Banking sector in India account for

more than 78 per cent of the total banking industry assets. On the other hand the

Private Sector Banks are making tremendous progress. They are leaders in Internet

banking, mobile banking, phone banking, ATMs. As far as foreign banks are

concerned they are likely to succeed in the Indian Banking Industry.

In the Indian Banking Industry some of the Private Sector Banks operating are IDBI

Bank, ING Vyasa Bank, SBI Commercial and International Bank Ltd, Bank of

Rajasthan Ltd. and banks from the Public Sector include Punjab National bank,

Vijaya Bank, UCO Bank, Oriental Bank, Allahabad Bank among others. ANZ

Grindlays Bank, ABN-AMRO Bank, American Express Bank Ltd, Citibank are some

of the foreign banks operating in the Indian Banking Industry.

Profile of FMCG Sector

The Indian FMCG sector is an important contributor to the country’s GDP. The

FMCG sector is the fourth largest sector of Indian economy. The FMCG market is

estimated to treble from its current figure in the coming decade. Penetration levels as

well as per capita consumption in most product categories like jams, toothpaste, skin

care, hair wash etc in India is low indicating the untapped market potential. The

growing Indian population, particularly the middle class and the rural segments,

presents an opportunity to makers of branded products to convert consumers to

branded products. The Indian rural market with its vast size and demand base offers

a huge opportunity for investment. Rural India has a large consuming class with 41

per cent of India’s middle-class and 58 per cent of the total disposable income.

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http://business.mapsofindia.com/banks-in-india/allahabad-bank.html

http://business.mapsofindia.com/banks-in-india/state-bank-of-india.html

http://business.mapsofindia.com/banks-in-india/ing-vysya-bank-ltd.html

http://business.mapsofindia.com/banks-in-india/idbi-bank-ltd.html

http://business.mapsofindia.com/banks-in-india/idbi-bank-ltd.html


One of the most salient career paradigm shifts has been the change from job

security to employability security. Today, the engagement and retention of high

potential talent is a competitive advantage to all organizations. Perceptions of stress

at work are quite high with several studies suggesting 40 % to 60% of all employees

rate their jobs as being stress or extremely stressful with impact on family balance

and health.

Some evidence of the changing career paradigms comes from a recent study by

Career Systems International in 2005. They surveyed over 7,500 employees in

diverse industries about retention factors—things available in organizations that

engendered commitment and a willingness to stay. The top five retention factors

included Exciting Work/Challenge (48.4%); Career growth/learning (42.6%);

Relationships/working with great people (41.8%); Fair pay (31.8%); and Supportive

management/great boss (25.1%). These findings suggest that engagement can be

enhanced in organizations that emphasize development, leadership effectiveness

and collaborative cultures.

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Attrition Rate:

The term 'attrition rate' can be defined as "A reduction in the number of employees

through retirement, resignation or death." It denotes the percentage change in the

labour force of an organization. High percentage of labour turnover is not desirable

for the organization because new workers are engaged in place of the workers who

left the organization.

Why do Employees Leave the Organization?

There are a number of reasons for employees leaving the organization. Well, the

most obvious reason for employees leaving any organization is higher pay. The

main problem here is that employees are moved from one location to another

location along with their family. But this problem is taken care of by a salary hike

which may be around 20%-35% per annum.

Another factor is work timings. In some organizations, work timings are such that

they are making employees leave the organization.

Another factor is career growth. In many organizations, only 20% of employees are

able to go to senior levels. This means that the remaining 80% of employees look for

other organization where they can get opportunities for growth.

One more reason for leaving the organization is higher education. These days, in

many organizations, employees are joining at very young age because of lucrative

salaries being offered. But with time, they apply for higher education and try to move

on to other organizations or sectors to occupy top management positions.

The percentage of women workers is also responsible for higher attrition rate.

These days, the percentage of women workers is around 30%. Generally, women

workers leave the organization after marriage to take up their house-hold duties,

irregular work hours. 80% of employee turnover can also be attributed to the

mistakes during hiring process (Harvard Business Review). Other factors

include accident making the worker permanently incapable of doing work, dislike

for the job or place, unsatisfactory work conditions leading to strained work

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relationships with the employer; lack of security of employment also contribute for

higher attrition rate.

Attrition Rates in Different Sectors in India During 2007

The attrition rates in different sectors for the year ended 2007 are shown in the

following table: -

Sector Attrition Rate FMCG 17 Manufacturing 20 Capital Goods 23 Construction 25 Non Voice BPO 25 IT – ITES 27 Telecom 30 Pharmaceuticals 32 Bio Technology 35 Services 40 Financial 44 Aviation 46 Retail 50 Voice - Based BPO 50

Source: Times of New York

From the above table, we can deduce that for the year ended 2007; the attrition rate

in some sectors is grim. It is 50% in Retail Sector and Voice-based BPOs. On an

average, the attrition rate in Indian economy is around 20% where as global average

is around 24%.

Attrition Rate is good for the organization as long as the rate is at normal level. This

will help the organization to get new blood into the organization and for the

organization to develop. But it becomes a problem when the attrition rate is

abnormal. Therefore, HR Department has the most crucial role to play in any

organization. At the time of conducting interviews, the HR personnel try to bring right

candidate to the right job. Similar is true even when the attrition rate is abnormal, so

they have a very crucial role to play.

Following are some of the tips to reduce attrition rate: -

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Hiring individuals who are truly fit to succeed in the position for hire will

dramatically increase the chances of that employee being satisfied with his or

her work, and remaining with the company for an extended period of time.

Employees should not only be selected on the basis of communication skills

and educational qualifications.

Communication of employee's roles, job description and the responsibilities

within the organization, new policies will help to retain employees.

Participative Decision Making - It is incredibly important to include

employees in the decision making process, especially when decisions are

related to employees. This can help to generate new ideas and perspectives

that top management might never have thought of.

Sharing of Knowledge with Others - Allow the members to share their

knowledge with others. This helps in retention of information. This also lets a

team member know that he is a valuable member of the organization.

Similarly, facilitating knowledge sharing through an employee mentoring

program can be equally beneficial.

Shorten the Feedback Loop - This helps the employees to know the

feedback to their work within a short period. This also helps to keep

performance levels high and reinforce positive behavior among employees.

Pay Package - Any employee wants to be appropriately paid and fairly for the

work he or she does. For this, conduct a research to find out the pay package

in other similar type of organizations at regional as well as at national levels.

Balance Work & Personal Life - No doubt family is exceptionally important

to employees. When work begins to put pressure on one family, no pay

package will keep an employee in the organization. Therefore, there should

be a balance between work and personal life. Small gestures like allowing an

employee to take an extended lunch once a week to watch his son's cricket

game will result in loyalty and helps to retain the employee.

Organizational Culture - Try to select the candidates who believe in the

organization culture and adopt with ease to organization culture.

Exit Interview with the employees who are leaving the organization will help

the organization to find out the reasons why the employees are leaving the

organization. This will also help to find out any drawbacks in the organization.

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Motivational Training - It is sure that motivational training helps to retain the

employees. One of the crucial aspects to motivate employees is to ensure

that they have ample growth opportunities which can be provided through

training.

Multi-Tasking - One of the ways to retain the employees in the organization

is try to get people with different qualities like smart, adaptable, and capable

of multi-tasking.

Referrals - Another technique is to try to get the employees hired through

referrals. This makes them stick with the organization.

No Favoritism - One of the surest ways to create animosity and resentment

in an organization is to allow favoritism and preferential treatment towards an

employee. Be sure to treat all employees equally and avoid favoritism at all

costs.

How to Keep Good Employees in a Bad Economy?

As we make our way through the challenges of the global economic crisis, high-

impact performers are in demand i.e. the indispensible workers who are willing to do

what it takes to help the company succeed even in the most difficult of times. Those

who pick up the slack when the organization is forced to cut back; those whose ideas

save time, money, and effort; those with a positive outlook who help keep the

organization moving forward.

How to retain these people? The answer is leaders must manage their human assets

(i.e., employees) and they must do so with the same vigor that they devote to

financial assets. In tough economic times, this may seem difficult; however, it is

critical for the success of the organization.

Here are some steps that organizations can take that will help them keep today's

high-impact performers and tomorrow's great leaders:

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1. Show Respect: This may seem rote, but genuinely treating employees with

kindness, respect, and dignity will elicit the continued loyalty of employees to both

the leader and the organization. It is possible to lead people through fear and

intimidation; however, the odds of retaining and developing people using this style

are slim.

2. Focus on a Thriving Environment: Creating an environment in which high-

impact performers want to stay and will put their all into an organization takes

more than a gimmick or enrollment in the fad-of-the-month leadership

development program. It takes an environment where people are learning, getting

training, and developing their skills where through inquiry and dialogue, the leader

creates an environment that allows each individual to thrive.

3. Offer On-Going Training: High on the list for leaders who want to retain high-

impact performers is training and on-going education, both of which ensure that

people can 1) do their jobs properly, and 2) can improve on existing systems.

Cross training — giving people the opportunity to experience and train in different

aspects of the company — is a great way to cross-fertilize between departments

and across regions. This is a great competitive advantage when organizations are

required to cut back on manpower. Cross-trained employees are equipped to

handle different functions in the organization far more easily than those confined in

silos.

4. Provide Coaching: By working one-on-one with employees in a coaching

relationship, leaders can discover and tap the talents of individuals and direct their

development, as well as align their behaviors and skills, thus becoming active as

agents of change, enhancing the success of the organization.

5. Give Feedback: More than an annual review, leaders may give employees

assistance in specific areas such as developing networks, handling work/life

balance, and attaining job and skills training. Providing feedback is more than an

annual or semi-annual performance measure. It is a continual process which

comes in the form of mentoring relationships, support groups, and action groups.

6. Money and Decision-Making: Compensation which is an obvious employee

retainer, but it's not enough. In addition to compensation, people need to be

involved in decision-making. The leader who asks people for their input on how the

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corporation can increase effectiveness is the leader who achieves buy-in from his

or her employees. Not only does this help retain key talent, it also is a great way to

generate ideas for organizational improvements.

Developing people is a strategic process that adds value to both the employees and

the bottom line of the organization. Highly committed, highly competent people

create financial rewards for the organization; organizations that develop their people

and provide opportunities for growth are sought-after by high-impact performers.

Great leaders know this simple formula. They understand it and strive to create an

environment that supports it. And the result is success.

In Asia, organizations faced an overall attrition rate of 16% in 2005. Attrition rate was

14% in 2004 and 10% in 2003. According to Hewitt’s Attrition and Retention Study

Asia Pacific 2006, the three reasons for this growing attrition rate is compensation

unfairness; employees left the organization because they got offers from other

organizations offering better pay packages secondly less growth opportunities and

third role stagnation.

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Attrition rates of Wipro, TCS, Satyam and Infosys

Inspite of being IT giants, these 4 companies are facing high attrition rates. They are

facing problems in retaining their employees irrespective of the fact that they are

providing an attractive compensation packages to their employees. TCS, Infosys and

Wipro faced high attrition rate as compared to Satyam.

Wipro:

The attrition rate of Wipro is 16.2% during the last quarter of 2006-07. On annual

basis, the attrition rate of Wipro BPO was 48 %. The main reasons being told are the

odd working hours and the higher studies. Wipro’s attrition rate is the highest in the

industry.

Satyam: Attrition rate for Satyam for the period January-March 2007 was 15.7%. It

has declined to 14.9%.

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Infosys: Attrition rate for Infosys for the period April-June 2006 was 11.9%. But now

it has increased to be 13.7%, same as in the last quarter.

TCS: The attrition rate for TCS is 11.5 %, up from 10.6% last year.

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These firms collectively hired more than 25,000 employees in the April-June period.

The total headcount for these 4 organizations became 2, 85,357.

Employers Key Drivers To Attract And Retain Talent

Procter and Gamble India

Early responsibilities in career

Flexible and transparent organizational culture

Global opportunities through a variety of exposure

and diverse experiences

Performance Recognition

American Express (India)

Strong global brand

Value-based environment

Pioneer in many people practices

NTPC

Learning and growth opportunities

Competitive rewards

Opportunity to grow, learn and implement

Strong social security and employee welfare

performance- oriented culture

Johnson & Johnson Strong values of trust, caring fairness, and respect

within the organization

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Freedom to operate at work

Early responsibility in career

Training and learning opportunities

Visible, transparent and accessible leaders

Competitive rewards

Innovative HR programs and practices

Glaxo Smith Kline

Consumer Healthcare

Performance-driven Rewards

Its belief in “Growing our own timber”

Comprehensive development and learning

programs

Flat organization, where performance could lead

to very quick progression

Challenging work context

Competitive rewards

Exhaustive induction and orientation program

Tata Steel

Organization philosophy and culture

Job stability

Freedom to work and innovate

Colgate Palmolive India

Company brand

Open , transparent, and caring organization

Management according to the managing with

respect to guiding principles

Training and development programs

Structured career planning process

Global career opportunities

Wipro Company’s brand as an employer

Early opportunities for growth

High degree of autonomy

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Value compatibility

Innovative people program

Indian Oil Corporation

Company brand image

Work ethics

Learning and growth opportunities

Challenging work assignments

Growing organization

TCS

The group brand equity

Strong corporate governance and citizenship

Commitment to learning and development

Best in people practices

Challenging assignments

Opportunity to work with fortune 500 clients

Employee Benefits Provided By Majority of the BPO Companies

A part from the legal and mandatory benefits such as provident-fund and gratuity,

below is a list of other benefits BPO professionals are entitled to the following:

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Group Medi-claim Insurance Scheme: This insurance scheme is to provide

adequate insurance coverage of employees for expenses related to

hospitalization due to illness, disease or injury or pregnancy in case of female

employees or spouse of male employees. All employees and their dependent

family members are eligible. Dependent family members include spouse, non-

earning parents and children above three months.

Personal Accident Insurance Scheme: This scheme is to provide adequate

insurance coverage for Hospitalization expenses arising out of injuries

sustained in an accident. This covers total / partial disablement / death due to

accident and due to accidents.

Subsidized Food and Transportation: The organizations provide

transportation facility to all the employees from home till office at subsidized

rates. The lunch provided is also subsidized.

Company Leased Accommodation: Some of the companies provide shared

accommodation for all the out station employees, in fact some of the BPO

companies also undertakes to pay electricity/water bills as well as the Society

charges for the shared accommodation. The purpose is to provide to the

employees to lead a more comfortable work life balance.

Recreation, Cafeteria, ATM and Concierge facilities: The recreation

facilities include pool tables, chess tables and coffee bars. Companies also

have well equipped gyms, personal trainers and showers at facilities.

Corporate Credit Card: The main purpose of the corporate credit card is

enable the timely and efficient payment of official expenses which the

employees undertake for purposes such as travel related expenses like Hotel

bills, Air tickets etc.

Cellular Phone / Laptop: Cellular phone and / or Laptop are provided to the

employees on the basis of business need. The employee is responsible for

the maintenance and safeguarding of the asset.

Personal Health Care (Regular medical check-ups): Some of the BPO'S

provides the facility for extensive health check-up. For employees with above

40 years of age, the medical check-up can be done once a year.

Page 44


Loans: Many BPO companies provide loan facility on three different

occasions: Employees are provided with financial assistance in case of a

medical emergency. Employees are also provided with financial assistance at

the time of their wedding. And, the new recruits are provided with interest free

loans to assist them in their initial settlement at the work location.

Educational Benefits: Many BPO companies have this policy to develop the

personality and knowledge level of their employees and hence reimburse the

expenses incurred towards tuition fees, examination fees, and purchase of

books subject, for pursuing MBA, and/or other management qualification at

India's top most Business Schools.

Performance based incentives: In many BPO companies they have plans

for, performance based incentive scheme. The parameters for calculation are

process performance i.e. speed, accuracy and productivity of each process.

The Pay for Performance can be as much as 22% of the salary.

Flexi-time: The main objective of the flextime policy is to provide opportunity

to employees to work with flexible work schedules and set out conditions for

availing this provision. Flexible work schedules are initiated by employees and

approved by management to meet business commitments while supporting

employee personal life needs .The factors on which Flexi time is allowed to an

employee include Child or Parent care, Health situation, Maternity, Formal

education program.

Flexible Salary Benefits: Its main objective is to provide flexibility to the

employees to plan a tax-effective compensation structure by balancing the

monthly net income, yearly benefits and income tax payable. It is applicable of

all the employees of the organization. The Salary consists of Basic, DA and

Conveyance Allowance. The Flexible Benefit Plan consists of: House Rent

Allowance, Leave Travel Assistance, Medical Reimbursement and Special

Allowance.

Regular Get together and other cultural programs: The companies

organizes cultural program as and when possible but most of the times, once

in a quarter, in which all the employees are given an opportunity to display

their talents in dramatics, singing, acting, dancing etc. Apart from that the

organizations also conduct various sports programs such as Cricket, football,

Page 45


etc and regularly play matches with the teams of other organizations and

colleges.

Wedding Day Gift: Employee is given a gift voucher of Rs. 2000/- to Rs.

7000/- based on their level in the organization.

Employee Referral Scheme: In several companies employee referral

scheme is implemented to encourage employees to refer friends and relatives

for employment in the organization.

CHAPTER IV: ANALYSIS & INTERPRETATION OF DATA

INTRODUCTION:

Analysis of the acquired data is an important function for drawing certain conclusion.

Page 46


Data analysis requires the use of statistical methods like mean, median, mode etc.

along with graphical methods like line graphs, bar chart and pie chart etc.

For representing data the tabular form of presentation and pie chart, bar diagram,

conical diagram for pictorial presentation is used. To analyze some of the

relationship correlation has also been used in this study.

With the objective of finding out the level of job satisfaction in IT sector, Banking,

Insurance, FMCGs questionnaire consisting of questions that gave direct information

about the different components or determinants of job satisfaction they are as

follows:

Recognition

Work itself

Responsibility and authority

Advancement

Growth

Job security and organizational commitment

Status

Organizational position.

Thus with all these analysis we will be able to estimate our findings and will be able

to do the analysis appropriately. The analysis of the data will throw light on few key

areas in the organization, which will fall short of the expectations of the employees.

Table No 1:

Table showing number of months/years worked by the respondents’

employees in the organization

Serial no Response No. of respondents Percentage %

Page 47


1 Less than 3 months 3 52 3 months to 1 year 5 83 1 year to 3 years 9 154 4 years to 6 years 16 265 7 years to 10 years 17 286 More than 10 years 10 17

Total 60 100

Chart 1

Less than 3 months

3 months - 1year

1 - 3+ years 4 - 6+ years 7 - 10+ years 10+ years

0

2

4

6

8

10

12

14

16

18

35

9

1617

10

INTERPRETATION & INFERENCE

This shows the number of months/years worked by the respondents’ employees in

the organization. In this we do find 5% 0f the employees have been working for less

than 3 months, 8% employees have been working for 3 months to 1 year, 15%

employees have been working for more than 1 year to 3 years, 26% of the

employees have been working for more than 4 years to 6 years, 28% employees

working for more than 7 to 10 years & 17% employees working more than 10 years.

This shows maximum employees have preferred to stay in their present job for

personal & career advancement.

Table No 2:

Table showing commitment of employees to a long-term career

Page 48

Serial no Response No. of respondents Percentage %1 Fully committed 12 202 Somewhat committed 25 423 Not sure how long

going to stay20 33

4 Prefer not to remain 3 5Total 60 100


Fully committed20%

Somewhat committed42%

Not sure how long going to stay

33%

Prefer not to remain

5%

Chart 2


The above stated table reveals that 20% respondents are fully committed to their

long term carrier in the organization. However 42% respondents are somewhat

committed, 33% of the respondents are not sure how long going to stay and 5%

employees prefer not to stay.

This shows that 62% employees are committed to the job, they think of building up

long term career in the job. When one is satisfied then only commitment comes for

the job. Thus retention of such employees is not difficult.

Table No 3:

Table showing employee does know about their job.

Serial no Response No. of respondents Percentage %1 Excellent 18 302 Good 27 453 Average 15 254 Poor 0 05 Very Poor 0 0

Total 60 100

Page 49


Excellent

Good

Average

Poor

Very Poor

0 5 10 15 20 25 30

18

27

15

0

0

Chart 3


The above stated table reveals that 30% respondents feel that they know their job

excellently. However 45% respondents say ‘good’ about knowing their job, 25% of

the respondents say ‘average’ about knowing their job and no people say poor or

very poor about knowing their job.

This shows that maximum employees know about what to do in the job. So the job

knowledge is given properly to the employees. So we can say that employees are

well informed about the job description and there is no role ambiguity. Employees

are satisfied with knowledge of the job.

Table No 4:

Table showing employee’s ability to have an impact on the job


Total 60 100

Page 50


Chart 4

Excellent Good Average Poor Very Poor

0

5

10

15

20

25

30

17

28

13

20


The above stated table reveals that 28% respondents say that their ability to have an

impact on the job is excellent. However 47% respondents say that their ability to

have an impact on the job is good, 22% of the respondents say ‘average’, 3%

respondents say it as poor and no respondents say it as very poor.

This shows that maximum employees have the ability to have an impact on the job.

Though there are some respondents who say that they don’t have an impact on the

job, still the majority of people have impact which again signifies employee’s

satisfaction with the job. When employees feel they have an impact they get

motivated and this increases satisfaction of the employees.

Table No 5:

Table showing employees receive supervision and feedback for the job


Total 60 100

Page 51


Chart 5


0

5

10

15

20

25

15

22

16

5

2


The above stated table reveals that 25% respondents rated employees receive

supervision and feedback as excellent. However 37% respondents rated it as good,

almost 27% as average, 8% respondents say it as poor and 3% respondents say it

as very poor.

This shows employees receive supervision and feedback which help them in their

career development. So they feel the job gives them enough identification where

they need to develop. It is seen 62% employees gives positive implications about

their receiving supervision and feedback which help them to develop themselves.

Table No 6

Table showing employees on the job training


Total 60 100

Page 52


Excellent

Good

Average

Poor

Very Poor

0 5 10 15 20 25 30

25

16

14

5

0

Chart 6


This table and graph shows that employees are given enough opportunities for their

career development. As from the survey we do find that 42% of the employees rate

that on the job training is provided excellent, 27% rate it as good, 23% rate it as

average 8% say it as poor.

So from the above table we do find there are enough opportunities given to the

employees for their development. So employees feel that the job provides them with

enough career development and every employee wants a job where he/she can

develop his/her career, since this job provide them with that this signifies their

satisfaction with the job. We have also seen in the other studies that employees’

growth motivates them. Once employees find some factors which satisfies them with

the job they can be retained easily. Thus if companies continues with these policy of

giving the employees opportunities to develop their career, then they will be able to

retain the employees easily.

Table No 7

Table showing employees opportunities for personal development


Page 53


Total 60 100

Chart 7

Excellent

Good

Average

Poor

05

1015

2025

15

25

11

9


From the survey it is found that there are opportunities for personal development.

25% of the employees rate it as excellent, almost 42% rate it as good, 18% rate it as

average and 15% employees rate it as poor.

So from the above table we do find there are enough opportunities given to the

employees for their development. So employees feel that the job provides them with

enough career development and every employee wants a job where he/she can

develop his/her career, since this job provide them with that this signifies their

satisfaction with the job. We have also seen in the other studies that employees’

growth motivates them. Once employees find some factors which satisfies them with

the job they can be retained easily.

Thus if companies continues with these policy of giving the employees opportunities

to develop their career, then they will be able to retain the employees easily.

Table No 8

Table showing employee’s teamwork within the department

Serial no Response No. of respondents Percentage %1 Excellent 30 502 Good 19 323 Average 11 184 Poor 0 0

Page 54


5 Very Poor 0 0Total 60 100

Chart 8

Excellent

Good

Average

Poor

Very Poor

0 5 10 15 20 25 30

30

19

11

0

0


This table and graph shows that employees rating team work within the department,

50% rate it as excellent, 32% rate it as good, 18% employees rate it as average and

no employees rate it as poor.

So these signify that there is no rivalry among the employees within the

departments. They work in team as a result there is no problem of adjustments

within the departments. Thus there is unity and understanding among the members

in the departments. So working in such environment is satisfying the employees.

Table No 9

Table showing employees would refer a friend to the working place to work

Serial no Response No. of respondents Percentage %1 Very Likely 15 252 Likely 24 403 Not Sure 12 204 Unlikely 6 10

Page 55


5 Very Unlikely 3 5Total 60 100

Very Likely25%

Likely40%

Not sure20%

Unlikely10%

Very Unlikely5%

Chart 9


This table shows that 25% of the respondents are very likely to refer their friend to

work in the companies. They are so much satisfied with the job and the environment

that they would refer their friend. 40% respondents are likely to refer their friend,

20% of the respondents are not sure and these respondents sometimes might feel

their job satisfying sometimes dissatisfying so they are not sure. Whereas 10%

respondents are unlikely to refer and 5% people would never refer their friends this

shows that they had bad experience with the job. Retaining these 15% respondents

will be difficult as they are highly dissatisfied with the job, but as whole 85%

respondents are satisfied and so retaining them will be easy.

Table No 10

Table showing employees are being cared by the Company


Page 56



Chart 10

Excellent

Good

Average

Poor

Very Poor

0 2 4 6 8 10 12 14 16 18 20

18

19

15

8

0


This table and the graph shows that 30% of the respondents employees rate that

they are being cared by the company top managers as excellent, 32% respondents

also rate them as good, 25% respondents rate as average and 13% rate them as

poor.

This shows that maximum of the employees feel that they are being cared by the

company. The place where employees are being cared will obviously like to work.

This caring nature of the company will help to retain the employees. Indeed

employees also feel satisfied with the job where they are being cared.

As we have seen that 62% of the employees said that they are satisfied with the job,

this is one of the factors which show why employees are satisfied with the job.

Table No 11

Table showing that the Company attracts high quality employees


Page 57



Excellent

Good

Average

Poor

Very Poor

12

27

16

5

0

Chart 11


This table shows that 20% of the employees rated that the company attracts high

quality employees as excellent, 45% respondents rated it as good, 27% respondents

rated it as average, and 8% respondents rated it as poor.

So maximum of the respondents employees feel that their company attracts high

quality employees, which make them feel proud that their colleagues are qualified

people. This satisfies them to work at the work place. Moreover we have also seen

before that 82% of the employees rated the teamwork within their departments as

positive as they feel proud to work in team with the qualified person.

Table No 12

Table showing that the Company retains high quality employees

Serial no Response No. of respondents Percentage %1 Excellent 10 172 Good 26 433 Average 19 32

Page 58


4 Poor 5 85 Very Poor 0 0

Total 60 100

Excellent

Good

Average

Poor

Very Poor

10

26

19

5

0

Chart 12


According to the survey 17% employees rated that the company retains high quality

employees,43% respondents rated it as good, 32% rated it as average and 8%

respondents rated it as poor.

This table and graph shows that maximum employees feel that their Company

retains high quality employees. Thus it is seen retention rate of quality employees

are higher in this company.

Table No 13

Table showing that in the Company teamwork across departments occurs


Page 59



Total 60 100

Excellent38%

Good27%

Average23%

Poor3%Very Poor

8%

Chart 13


This table shows that 39% of the employees rated that in the company teamwork

across departments as excellent, 27% respondents rated it as good, 23%

respondents rated it as average, 3% respondents rated it as poor and 8%

respondents rated it as very poor.

So this shows that across department’s teamwork is there which shows there is

understanding and unity across the department members. As a whole the job

environment is peaceful so the employees are satisfied with the job and the quality of

work life of the employees also improves.

Table No 14

Table showing that the Company value diversity in people


Page 60



Total 60 100

Excellent15%

Good43%

Average37%

Poor2%

Very Poor3%

Chart 14


This table shows that 15% of the employees rated that the company values diversity

as excellent, 43% respondents rated it as good, 37% respondents rated it as

average, 2% respondents rated it as poor and 3% rated it as very poor.

Thus here it is seen that maximum employees rated that the company value diversity

as ‘good’. This shows that the culture in the company is very co-operating. The

employees will definitely like to work in such company who value diversity in the

organization. Thus employee feels satisfied to work in such culture company.

Table No 15

Table showing that the employees feel that the Company provides quality

products and services

Serial no Response No. of respondents Percentage %1 Excellent 21 35

Page 61


2 Good 14 233 Average 11 184 Poor 9 155 Very Poor 5 9

Total 60 100

Excellent35%

Good23%

Average18%

Poor15%

Very Poor8%

Chart 15


The above stated table reveals that 35% respondent’s employees rated that the

company provides quality products and services as excellent. However 23%

respondents rated it as good, 18% as average, 15% respondents say it as poor and

9% respondents rate it as very poor.

These response shows that maximum employees feel proud to be associated with

such company who provide quality products and services in the form of insurance

services. Thus this is another factor which tells that the employees are satisfied by

their job in such a company which has quality services.

Table No 16

Table showing that the employees have the power to set up corporate

direction

Serial no Response No. of respondents Percentage %1 Very Satisfied 5 8

Page 62


2 Satisfied 16 273 Don’t know 7 124 Dissatisfied 27 455 Very dissatisfied 5 8

Total 60 100

Very Satisfied8%

Satisfied27%

Don't know12%

Dissatisfied45%

Very Dissatisfied8%

Chart 16


The above stated table reveals that 8% respondents rated employees have the

power to set up corporate direction, as very satisfied. However 27% respondents

rated it as satisfied, 12% don’t know, 45% respondents say it as dissatisfied and

8%respondents say it as very dissatisfied.

This shows that employees are not given empowerment in the company. As

maximum employees feel that they are dissatisfied as they are not given power to

set corporate directions.

Table No 17

Table showing that the employees feel that the company keeps them informed

Serial no Response No. of respondents Percentage %1 Very Satisfied 25 422 Satisfied 22 373 Don’t know 13 21

Page 63


4 Dissatisfied 0 05 Very dissatisfied 0 0

Total 60 100

Chart 17

Very Satisfied Satisfied Don't know Dissatisfied Very Dissatisfied

0

5

10

15

20

2525

22

13

0 0


The above stated table reveals that 42% respondents rated that the company keeps

them informed as Very satisfied. However 37% respondents rated it as Satisfied, 2%

don’t know, 0% respondents say it as Dissatisfied and no respondents say it as very

dissatisfied.

This shows that the company values the employees a lot. So the company provides

information to the employees. The employees are well informed about the job.

Table No 18

Table showing that the employees are addressed external issues facing by the

Company

Serial no Response No. of respondents Percentage %1 Very Satisfied 9 152 Satisfied 5 8

Page 64


3 Don’t know 13 224 Dissatisfied 27 455 Very dissatisfied 6 10

Total 60 100

Very Satisfied15%

Satisfied8%

Don't know22%

Dissatisfied45%

Very Dissatisfied10%

Chart 18


The above stated table reveals that 15% respondents rated, employees are

addressed external issues facing by the company as Very satisfied. However 8%

respondents rated it as satisfied, 22% as don’t know, 45% respondents say it as

dissatisfied and 10% respondents say it as very dissatisfied.

Here 77% of the respondents employees said that they are not addressed external

issues facing by the company, whereas 23% of the respondents said that as the

other way around. So employees feel dissatisfied in this issue of not addressing

external issues by the company.

Table No 19

Table showing that the employees are addressed internal issues facing by the

Company

Serial no Response No. of respondents Percentage %1 Very Satisfied 17 282 Satisfied 22 37

Page 65


3 Neutral 16 274 Dissatisfied 5 85 Very dissatisfied 0 0

Total 60 100

Chart 19

Very SatisfiedSatisfied

NeutralDissatisfied

Very Dissatisfied

0

5

10

15

20

25

17

22

16

5

0


The above stated table reveals that 28% respondents rated, employees are

addressed internal issues facing by the company as very satisfactory. However 37%

respondents rated it as satisfactory, 27% as neutral, 8% respondents say it as

dissatisfied and 0% respondents say it as very dissatisfied.

Here 8% of the respondents employees said that employees are not addressed

internal issues facing by the company, whereas 92% of the respondents said that as

the other way around. So employees feel that they are valued by the company by

addressing them internal issues of the company and feels satisfied.

Table No 20

Table showing that the leader serves as ethical role model

Serial no Response No. of respondents Percentage %1 Very Satisfied 9 15

Page 66


2 Satisfied 27 453 Don’t know 14 234 Dissatisfied 7 125 Very dissatisfied 3 5

Total 60 100

Very Satisfied15%

Satisfied45%

Neutral23%

Dissatisfied12%

Very Dissatis-fied5%

Chart 20


The above stated table reveals that 15% respondents rated, leaders serves as

ethical role model, as very satisfactory. However 45% respondents rated it as

satisfactory, 23% as neutral, 12% respondents say it as Dissatisfied and 5%

respondents say it as very dissatisfied.

This shows that employees feel satisfied as their leaders are ethical. So they feel

ethics are valued in the company. Every employee would like to work in such

company where the leaders are ideal or ethical role model for the subordinates. So

retaining the employees is easy for the company.

Table No 21

Table showing that the employees feel that their company is a leader in the

industry


Page 67


1 Excellent 21 352 Good 16 273 Average 12 204 Poor 9 155 Very Poor 2 3

Total 60 100

Excellent35%

Good27% Average

20%

Poor15%

Very Poor3%

Chart 21


The above stated table reveals that 35% respondents rated, that their company is

the leader in the industry, as excellent. However 27% respondents rated it as good,

20% as average, 15% respondents say it as poor and 3% respondents say it as very

poor.

This shows that 82% employees agree that their company is a leader in the industry.

They feel proud to work in such company which is the industry leader. This is

another factor for their satisfaction with their job as they work in a company which is

a leader company. So retaining employees on this ground is easy.

Table No 22

Table showing that the employees feel that their company is a strong

competitor in key growth areas


Page 68



Total 60 100

Chart 22


0

5

10

15

20

25

3030

19

11

0 0


The above stated table reveals that 50% respondents rated, that their company is a

strong competitor in key growth areas, as excellent. However 32% respondents

rated it as good, 18% as average, 0% respondents say it as poor and 0%

respondents say it as very poor.

Thus maximum employees feel that their company is a competitive company and

this gives them satisfaction that they work in such a competitive company.

Table No 23

Table showing that the employees feel that their company’s leadership has a

clear vision of the future

Page 69



Total 60 100

Chart 23

Excellent Good Average Poor Very Poor0

5

10

15

20

25

30

35 33

19

8

0 0


The above stated table reveals that 55% respondents rated, that their company’s

leadership has a clear vision of the future, as excellent. However 32% respondents



This shows that employees feel that their company’s leadership has a clear vision of

the future. The company is future oriented and moves according to the future

direction. It gives the employees inspiration to work in such a company.

Table No 24

Table showing that the employees feel that their company’s leadership has

made changes which are positive for the company

Page 70



Total 60 100

Chart 24


5

10

15

20

25

30

35 32

17

11

0 0



leadership has made changes which are positive for the company, as excellent.

However 28% respondents rated it as good, 19% as average, 0% respondents say it

as poor and 0% respondents say it as very poor.

This shows that maximum employees feel that their company’s leadership has made

changes which are positive for the company. So the employees feel satisfied by

working in such company.

Table No 25

Table showing that the employees feel that their company’s leadership has

made changes which are positive for the employees

Page 71



Total 60 100

Chart 25


5

10

15

20

2524

16

11

7

2



leadership has made changes which are positive for the employees, as excellent.

However 27% respondents rated it as good, 18% as average, 12% respondents say

it as poor and 3% respondents say it as very poor.

This shows that 85% of the employees feel that their company’s leadership has

made changes which are positive for them. So they feel satisfied with their

company’s leadership as it gives positive name on the employees’ career. This

factor can also be used to retain the employees.

Table No 26

Table showing that the employees receive appropriate recognition for their

contribution

Page 72



Total 60 100

Chart 26


5

10

15

20

25

16

23

10

4

7


The above stated table reveals that 27% respondents rated, that the employees

receive appropriate recognition for their contribution, as excellent. However 38%

respondents rated it as good, 17% as average, 7% respondents say it as poor and

11% respondents say it as very poor.

This shows that maximum employees rated that they receive appropriate recognition

for their contribution. This makes them feel that their contribution are valued and

recognized by the company. This is another factor which shows that employees are

satisfied with their job, as by doing so company can retain their valuable employees

in the company.

Table No 27

Table showing that the employees work gives them a sense of personal

accomplishment

Page 73



Total 60 100

Chart 27


5

10

15

20

25

30

19

28

13

0 0


The above stated table reveals that 32% respondents rated, that their work gives

them a sense of personal accomplishment, as excellent. However 47% respondents



This shows maximum employees feel that their work gives them a sense of personal

accomplishment. In this no respondents has rated it as poor or very poor. When the

employees feel that their job gives them personal accomplishment they feel satisfied.

This is another factor which shows why 62% of the employees said that they are

satisfied with their job.

Table No 28

Table showing that how satisfied employees are with their direct supervisor


Page 74



Total 60 100

Chart 28


5

10

15

20

25

17

24

11

5

3


The above stated table reveals that 29% respondents rated, that they are satisfied

with their direct supervisor, as excellent. However 40% respondents rated it as good,

18% as average, 8% respondents say it as poor and 5% respondents say it as very

poor.

This shows 87% respondents employees said that they are satisfied with their direct

supervisor. So this is another factor which shows why employees are satisfied with

their job.

Table No 29

Table showing that how satisfied employees are with their overall job security


Page 75



Total 60 100

Chart 29


5

10

15

20

25

30

13

27

11

54



with their overall job security, as excellent. However 45% respondents rated it as

good, 18% as average, 8% respondents say it as poor and 7% respondents say it as

very poor.

This shows that maximum employees are satisfied with their overall job security. So

when job security is there retention of employees becomes easier.

Table No 30

Table showing that how satisfied employees are with the company as a place

to work

Page 76



Total 60 100

Chart 30


5

10

15

20

25

14

25

11

7

3



with their company as a place to work, as excellent. However 42% respondents



So here we do find maximum employees say that they are satisfied to work in the

company, which they consider as a good place to work. This is another factor of the

employees being satisfied by their job.

Table No 31

Table showing that how satisfied employees are with their job overall


Page 77



Total 60 100

Chart 31


5

10

15

20

2521

24

10

5

0


This table and graph shows how much satisfied employees are with their job overall.

In this 35% employees have rated their overall job satisfaction as excellent, 40%

rated it as good, 17% rated as average 8% rated as poor, and no one has rated it as

very poor.

This shows that maximum employees consider their job as a satisfying job. So we

can say the companies provide a satisfactory job to the employees. That is why 75%

respondents rated it as excellent and good.

Table No 32

Table showing compared with a year ago, how employees would describe their

overall job satisfaction today

Page 78


Serial no Response No. of respondents Percentage %1 Much more satisfied 17 282 Somewhat more satisfied 22 373 Same level of satisfaction as

last year12 20

4 Somewhat less satisfied 7 125 Much less satisfied 2 3

Total 60 100

Much more satisfied28%

Somewhat more satisfied37%

Same level of sat-isfaction as last

year20%

Some what less satisfied12% Much less satis-

fied3%

Chart 32


This table and the graph shows that compared with a year ago, employees would

describe their overall job satisfaction as 28% say they are much more satisfied with

their job now, 37% respondents employee say that they are somewhat more

satisfied, 20% say that they feel same level of satisfaction as last year, 12%

respondents say that they are somewhat less satisfied and 3% says that they are

much less satisfied.

This as a whole shows that the employees in these companies are much more

satisfied with their jobs now compared with a year ago, So, the job environment and

the criteria provided by the company is good that’s why employees feel satisfied with

their job.

CHAPTER – V: SUMMARY OF FINDINGS, CONCLUSIONS &

RECOMMENDATIONS

OVERVIEW OF THE DISSERTATION

Page 79


The Dissertation ‘A study to measure the impact of job satisfaction levels on

employee retention’ has been carried out in IT sector, Banking, Insurance & FMCGs.

Job satisfaction is a person’s attitude or emotional response towards his/her place

of work. The study was conducted to find the level of Job satisfaction of the

employees, it also helped us to know the factors that satisfied them to do the job and

what are the factors that dissatisfied them to do the job. The satisfactory factors will

help the employees to be retained in the organization.

The study has been chosen due to the importance given to the satisfaction level,

performance and the productivity of the employees. The satisfaction of the

individuals is important but so is the collective satisfaction of individuals in groups

and in the organization as a whole.

Among various factors, employees’ attitudes and feelings regarding their jobs and /or

job experiences have been found to significantly affect both their personal as well as

job behaviour. The job satisfaction will lead to retaining of the employees. So from

finding the satisfaction level retaining measures of employees can be found out.

The research that has been conducted is descriptive research. Questionnaire was

used to conduct the study. IT sector, Banking, Insurance & FMCGs have been

chosen for survey and information is collected from the Sample. As per the

requirement the Sample size considered for survey is to meet 60 respondents. The

data collected through questionnaire for this purpose is tabulated suitably and

graphs and charts are used to analyze the data.

It is a generally accepted proposition that the longevity of an employee in a private

organization is influenced by the satisfaction of the employee in the organization. So

job satisfaction is the most crucial study for any organization. This job satisfaction

will lead to employee retention in the organization.

FINDINGS OF THE STUDY

1. It is found that maximum of the employees are young. The company targets

the X generation people as their targeted employees.

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2. Maximum employees are satisfied with their job in the Organization, though

not very satisfied but satisfaction level of employees are higher in the

organization.

3. 62% employees are committed to the job, they think of building up long term

career in the job. When one is satisfied then only commitment comes for the

job.

4. Maximum employees know about what to do in the job. So the job knowledge

is given properly to the employees. So we can say that employees are well

informed about the job description and there is no role ambiguity. Employees

are satisfied with knowledge of the job.

5. Maximum employees have the ability to have an impact on the job. Though

there are some respondents who say that they don’t have an impact on the

job, still the majority of people have impact which again signifies employee’s

satisfaction with the job.

6. 62% employees give positive implications about their receiving supervision

and feedback which help them to develop themselves.

7. Employees agree that they are given enough opportunities for their career

development in the form of on the job training, opportunities for personal

development and opportunities for advancements.

8. There is no rivalry among the employees within the departments. They work

in team as a result there is no problem of adjustments within the departments.

9. Maximum employees are satisfied with the work place so they would refer

their friend to work in this working place.

10.Maximum of the employees feel that they are being cared by the company.

11.Maximum of the respondents employees feel that their company attracts high

quality employees, which make them feel proud that their colleagues are

qualified people.

12. It is found retention rate of quality employees are higher in this company.

13.Across departments’ teamwork is there which shows there is understanding

and unity across the department members.

14.Maximum employees rated that the company value diversity as ‘good’.

15.Maximum employees feel proud to be associated with such company who

provide quality products and services in the form of insurance services.

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16.Employees feel they are not given power to set corporate directions. So in this

case they remain dissatisfied.

17.Employees are kept informed about their jobs.

18.Maximum respondents employees said that they are not addressed external

issues facing by the company. So employees are dissatisfied in this issue.

19.Employees are addressed about the internal issues of the company.

20.Employees feel satisfied as their leaders are ethical.

21.82% employees agree that their company is a leader in the industry.

22.Maximum employees feel that their company is a competitive company and

this gives them satisfaction that they work in such a competitive company.

23.Employees feel that their company’s leadership has a clear vision of the

future. The company is future oriented and moves according to the future

direction.

24.Maximum employees feel that their company’s leadership has made changes

which are positive for the company.

25.Maximum employees rated that they receive appropriate recognition for their

contribution.

26.Maximum employees feel that their work gives them a sense of personal

accomplishment. In this no respondents has rated it as poor or very poor.

When the employees feel that their job gives them personal accomplishment

they feel satisfied.

27.87% respondents’ employees said that they are satisfied with their direct

supervisor.

28.Maximum employees are satisfied with their overall job security.

29.Maximum employees say that they are satisfied to work in the company,

which they consider as a good place to work.

30.Maximum employees consider their job as a satisfying job.

31.Employees are much more satisfied with their jobs now compared with a year

ago.

32.Maximum employees have been working there for more than 6 months to 1

year. This indicates maximum employees are working in the organization for

short time period.

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CONCLUSION

The employees that are selected by the companies are young aged

employees. They target the fresh graduates for the job as these categories of

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people are energetic and hard working. Moreover the inexperienced

graduates don’t have much chance to shift to other jobs and they remain

committed to the job.

We have also found that maximum employees are satisfied with their job and

are committed for a long term career. Perhaps the work environment and

working conditions give them a level of satisfaction.

Employees when asked to rate their jobs on certain factors like having known

what they need to do, that is job knowledge, ability to have the impact on the

job, receiving supervision and feedback, on the job training, opportunities for

personal development, opportunities for advancement and team work within

their department has been marked as good by maximum employees. Though

there are some employees who considered these factors as poor also but the

percentage of employees who considered them as good and excellent are

more. Thus this indicates that employees rate their job as good. These may

be because they feel their career growth is being considered by the company

and as a result they feel content with their job. Moreover shifting from one

company to another company will not be any useful to their career. So for this

reason they may feel content with their job.

We have also seen when the employees were asked to rate if they are going

to refer their friend to work in that working place, maximum employees rated

as they are likely to refer. This indicates they like the company to work at

though some of them also have said they are unlikely to refer their friend to

the company but majority responses were likely.

We have also seen that when employees were asked to rate their work place

on some factors like caring about employees, attracting high quality

employees, retaining high quality employees, teamwork across departments

Valuing diversity and providing quality products and services. In these factors

also we do find that maximum employees rated it as good and excellent.

These indicate they are satisfied with the work place as a whole and this

indicates their satisfactory level for the job.

Next when the respondents employees were asked to rate the leadership at

their work place in some questions their responds were good like keeping the

employees informed, addressing internal issues in the company and serving

as ethical role model whereas on some factors like setting corporate direction

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and addressing external issues facing the company their response were

dissatisfactory. Employees felt that they were not satisfied on the above two

factors mention by the company. Thus it shows employees are given some

power but not full which is another factor for their satisfaction.

Next when employees were asked about their company leadership maximum

employees agreed that their company is a leader in the industry, their

company is a strong competitor in key growth areas, their company’s

leadership has a clear vision of the future, their company’s leadership has

made changes which are positive for the company and their company’s

leadership has made changes which are positive for them. This shows that

the employees are quiet happy with the company’s position in the industry.

Thus employees feel they are working in a reputed company and this

increases their satisfaction level for their job.

Employees when asked how satisfied they are with receiving appropriate

recognition for their contribution they responded as satisfied, they also have

responded satisfied for the questions like their work gives them a sense of

personal accomplishment, are they satisfied with their direct supervisor. How

satisfied they are with their overall job security, with their company as a place

to work. With their job overall. In all those questions maximum employees

responded it as satisfied. So as a whole we can say that employees are

satisfied with their job overall.

Lastly when the employees were asked compared to a year ago how they

would describe their overall job satisfaction today many respondents said that

they are much more satisfied or somewhat more satisfied. This shows they

like their present job much more. As a result retaining these employees is not

a tough task. Based on the factors we can say that employees are satisfied by

working in these companies.

These all indicates that there is relationship of the factors with job satisfaction

and by considering those factors as positive employee can be retained in the

organization easily whereas lack of these factors will restrain the employees

to remain in the organization.

All these shows that employees in these companies are satisfied with their

jobs. They do find the job as challenging and interesting. We have also seen

some factors which creates an impact for their satisfaction and the

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relationship of the factors with the employees’ level of satisfaction. May be the

company is well concerned with employee, that’s why the level of satisfaction

is higher here. Thus retaining the employees will be easier here.

Testing of Hypotheses: It’s justified that Job Satisfaction levels have impact

on employee retention as 62% employees give positive implications regarding

their job satisfaction & are provided with enough opportunities for their career

development in the form of on the job training, opportunities for personal

development and opportunities for advancements. 87% respondent’s

employees said that they are satisfied with the management policies even

though having an adverse mental stress with their job especially in IT sectors.

RECOMMENDATIONS

However to improve the employee satisfaction further the following

recommendations are made.

1. The Human Resource department should be modern in the outlook and try

to identify the required needs to the employees at the right time.

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2. If the employees are encouraged and given opportunity to take part in the

planning and decision making of the organization, they will get more

involved in their work which increases their efficiency - Participative

management. Like giving them power to set corporate direction.

3. Employees have to feel that they are not just working in the organization

but should feel that it is their own company, this help in improving the

organizational belongingness of employees.

4. The working conditions and physical needs such as hygienic work, hours

of work, ventilation and adequate lighting are the features to be introduced

in the organization which are the important attributes of satisfaction.

5. Power should be delegated and centralization of power should be avoided.

6. Stress of the employees should be reduced through counseling and other

means.

7. Organizational variables like job content, type of leadership, pay and

promotional prospects, interaction in work group all these should be

considered for the employees. These factors lead to the satisfaction of the

employee and retention of the employees.

8. Employees should have some recreation facilities in the office which will

help them to relax during the leisure time.

9. Employee morale should be increased by creating a positive image of the

company.

10.Job rotation should be introduced this reduces the boredom which arises

out of the monotonous nature of the work.

11.Employees should be taken for one day recreational trip that will relax

them.

12.An environment should be developed in which employees develop self

esteem and self efficacy.

Thus if the organization pays attention toward the above issues related to the

employee satisfaction, it would certainly help the organization to increase the

existing satisfaction level of employees and will retain the employees in the

organization.

So, when a person is satisfied with his/ her job he will show the following

conducts.

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i. Induced to do work efficiently and effectively.

ii. Convinced to remain in the enterprise.

iii. Prepared to act efficiently during contingencies.

iv. Prepared to welcome changes without resistance.

v. Interested in promoting the image of the organization.

vi. More happy and satisfied with their job.

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Documents

Job Satisfaction Level and Employee Retention