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8/6/2019 Praveena - Project Report2 !!!
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A STUDY ON EMPLOYEE RETENTION
TECHNIQUES IN iSOFT CHENNAI
PROJECT REPORT
Submitted by
V. CHANDRAPRAVEENA
Register No.:098001903009
in partial fulfillment for the award of the degree
of
MASTER OF BUSINESS ADMINISTRATION
in
FACULTY OF MANAGEMENT
ERODE BUILDER EDUCATIONAL TRUSTs GROUP OF
INSTITUTIONS
NATHAKADAIYUR
JUNE 2011
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ERODE BUILDER EDUCATIONAL TRUSTs
GROUP OF INSTITUTIONS
FACULTY OF MANAGEMENT
PROJECT WORK
PHASE II
JUNE 2011
This is to certify that the project entitled
A STUDY ON EMPLOYEE RETENTION TECHNIQUES IN
iSOFT CHENNAI
Is the bonafide record of project work done by
V. CHANDRAPRAVEENA
Register No. : 098001903009
of ___________________________________ during the year 2009 2011.
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
Project Guide Head of the Department
Submitted for the project viva-voce examination held on _______________
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
Internal Examiner External Examiner
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DECLARATION
I affirm that the project work titled ________________________________________
being submitted in the partial fulfillment for the award of _________________________is the original work carried out by me. It has not formed the part of any other project
work submitted for award of any degree or diploma, either in this or any other university.
(Signature of the Candidate)
V. Chandrapraveena
Register No.: 098001903009
I certify that the declaration made above by the candidate is true.
(Signature of the Guide)
Prof. G. Suresh,
Assistant Professor
Faculty of Management
EBETi
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ACKNOWLEDGEMENT
I sincerely thank for providing me with an opportunity to pursue my final year
project at their organization. I sincerely thankMr. Basil Fredrick, Senior Manager, HR
of iSOFT R&D Pvt. Ltd., for guiding me throughout this project.
Mr. Basil Fredrickhas not only been a project guide during this project period
but also a mentor and guided me through the entire business of the organization and also
the initiatives of iSOFT.
I would like to extend my sincere thanks to the staffs at iSOFT, for helping me
whenever needed and also for facilitating me in the completion of the project.
I convey my sincere thanks to our Dean. Dr. A.G.V Narayanan ERODE
BUILDERS EDUCATIONAL TRUSTS - GROUP OF INSTITUTIONS,
TIRUPPUR for providing me this opportunity of carrying out my project, which has
truly been an enriching experience.
I would also like to thank my project guide Prof. G. Suresh for his constant
encouragement and valuable guidance in completing the project successfully.
To conclude, I owe every bit of this report to the peerless tutelage of industry
professionals and academia, under which this project was engendered.
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TABLE OF CONTENT
CHAPTER NO. TITLE PAGE NO.
List of Tables
List of Figures
List of Abbreviations
1. Introduction
1.1 Objectives
1.2 Scope
1.3 Company Profile
1.4 Product Profile
1.5 Industry Profile
2. Review of Literature
2.1 Introduction To Employee Retention Techniques
2.2 Employee Retention Techniques
2.3 Managing Employee Retention
2.4 Need and Importance of Employee Retention
2.5 Seven Steps to Increase Employee Retention
3. Research Methodology and Design
3.1 Introduction
3.2 Type of Research
3.3 Data Collection
3.4 Research Instrument
3.5 Questionnaire Design
3.6 Sampling Procedure
3.7 Sample Size
3.8 Limitations of the Study
4. Data Analysis and Interpretation
4.1 Data Analysis and Interpretation
5. Suggestions
6. Reference
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CHAPTER 1
1. INTRODUCTION
Employee retention is a process in which the employees are encouraged to remain
with the organization for the maximum period of time or until the completion of the
project. Employee retention is beneficial for the organization as well as the employee.
Employees today are different. They are not the ones who dont 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 dont, 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
Environment
Growth
Relationship
Support
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.
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Compensation includes salary and wages, bonuses, benefits, prerequisites, stock
options, bonuses, vacations, etc. While setting up the packages, the following
components should be kept in mind:
Salary and monthly wage: It is the biggest component of the compensation
package. It is also the most common factor of comparison among employees. It
includes
Basic wage
House rent allowance
Dearness allowance
City compensatory allowance
Salary and wages represent the level of skill and experience an individual has. Time
to time increase in the salaries and wages of employees should be done. And this
increase should be based on the employees performance and his contribution to the
organization.
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Bonus: Bonuses are usually given to the employees at the end of the year or on a
festival.
Economic benefits: It includes paid holidays, leave travel concession, etc.
Long-term incentives: Long term incentives include stock options or stock
grants. These incentives help retain employees in the organization's startup stage.
Health insurance: Health insurance is a great benefit to the employees. It saves
employees money as well as gives them a peace of mind that they have somebody
to take care of them in bad times. It also shows the employee that the organization
cares about the employee and its family.
After retirement: It includes payments that an Employee gets after he retires like
EPF (Employee Provident Fund) etc.
Miscellaneous compensation: It may include employee assistance programs (like
psychological counseling, legal assistance etc), discounts on company products,
use of a company cars, etc.
ORGANIZATION ENVIRONMENT
It is not about managing retention. It is about managing people. If an organization
manages people well, employee retention will take care of itself. Organizations should
focus on managing the work environment to make better use of the available human
assets.
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People want to work for an organization which provides
Appreciation for the work done
Ample opportunities to grow
A friendly and cooperative environment
A feeling that the organization is second home to the employee
Organization environment includes
Culture
Values
Company reputation
Quality of people in the organization
Employee development and career growth
Risk taking
Leading technologies
Trust
Types of environment the employee needs in an organization
Learning environment: It includes continuous learning and improvement of the
individual, certifications and provision for higher studies, etc.
Support environment: Organization can provide support in the form of work-life
balance.
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Work life balance includes:
Flexible hours
Telecommuting
Dependent care
Alternate work schedules
Vacations
Wellness
Work environment: It includes efficient managers, supportive co-workers,
challenging work, involvement in decision-making, clarity of work and
responsibilities, and recognition.
Lack or absence of such environment pushes employees to look for new opportunities.
The environment should be such that the employee feels connected to the organization in
every respect.
GROWTH
Growth and development are the integral part of every individuals career. If an
employee can not foresee his path of career development in his current organization,
there are chances that hell leave the organization as soon as he gets an opportunity.
The important factors in employee growth that an employee looks for himself are:
Work profile: The work profile on which the employee is working should be in
sync with his capabilities. The profile should not be too low or too high.
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Personal growth and dreams: Employees responsibilities in the organization
should help him achieve his personal goals also. Organizations can not keep aside
the individual goals of employees and foster organizations goals. Employees
priority is to work for themselves and later on comes the organization. If hes not
satisfied with his growth, hell not be able to contribute in organization growth.
Training and development: Employees should be trained and given chance to
improve and enhance their skills. Many employers fear that if the employees are
well rained, theyll leave the organization for better jobs. Organization should not
limit the resources on which organizations success depends.
These trainings can be given to improve many skills like:
Communications skills
Technical skills
In-house processes and procedures improvement related skills
Customer satisfaction related skills
Special project related skills
Need for such trainings can be recognized from individual performance reviews,
individual meetings, employee satisfaction surveys and by being in constant touch with
the employees.
IMPORTANCE OF RELATIONSHIP IN EMPLOYEE RETENTION PROGRAM
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.
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There are times when an employee starts feeling bitterness towards the
management or peers. This bitterness could be due to many reasons. This decreases
employees interest and he becomes de-motivated. It leads to less satisfaction and
eventually attrition.
A supportive work culture helps grow employee professionally and boosts
employee satisfaction. To enhance good professional relationships at work, the
management should keep the following points in mind.
Respect for the individual: Respect for the individual is the must in the
organization.
Relationship with the immediate manager: A manger plays the role of a mentor
and a coach. He designs ands plans work for each employee. It is his duty to
involve the employee in the processes of the organization. So an organization
should hire managers who can make and maintain good relations with their
subordinates.
Relationship with colleagues: Promote team work, not only among teams but in
different departments as well. This will induce competition as well as improve therelationships among colleagues.
Recruit whole heartedly: An employee should be recruited if there is a proper
place and duties for him to perform. Otherwise hell feel useless and will be
dissatisfied. Employees should know what the organization expects from them
and what their expectation from the organization is. Deliver what is promised.
Promote an employee based culture: The employee should know that the
organization is there to support him at the time of need. Show them that the
organization cares and hell show the same for the organization. An employee
based culture may include decision making authority, availability of resources,
open door policy, etc.
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Individual development: Taking proper care of employees includes
acknowledgement to the employees dreams and personal goals. Create
opportunities for their career growth by providing mentorship programs,
certifications, educational courses, etc.
Induce loyalty: Organizations should be loyal as well as they should promote
loyalty in the employees too. Try to make the current employees stay instead of
recruiting new ones.
SUPPORT
Lack of support from management can sometimes serve as a reason for employee
retention. Supervisor should support his subordinates in a way so that each one of them is
a success. Management should try to focus on its employees and support them not only in
their difficult times at work but also through the times of personal crisis.
Employers can also provide valuable feedback to employees and make them feel
valued to the organization. The feedback from supervisor helps the employee to feel more
responsible, confident and empowered. Top management can also support its employeesin their personal crisis by providing personal loans during emergencies, childcare
services, employee assistance programs, counseling services, et al.
Employers can also support their employees by creating an environment of trust
and inculcating the organizational values into employees. Thus employers can support
their employees in a number of ways as follows:
By providing feedback
By giving recognition and rewards
By counseling them
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By providing emotional support
1.1 OBJECTIVES
To study about the employees mindset of the work environment, nature of their
job and their interaction with their supervisors
To study about the employees expectations towards the management
To identify the employees flexibility towards their work
To identify the problems regarding the package, traveling time etc.,
1.2 SCOPE
The management can know the reason behind the attrition in their organization
The management can use some other effective tools to retain their employees
The management can use some other effective strategies to retain their employees
1.3 COMPANY PROFILE
Company Name: iSOFT R&D Private Limited
Address: No.19 Hafiz Court, Dr.M.G.R Salai, Nungambakkam, Chennai-34
Phone No: (44) 39818500
Email: [email protected]
Web Site: www.isofthealth.com
Industry: IT-Software Services
Level of Company: MNC
Level of Office: Head Office
Sector: Private Sector
iSOFT Group Limited, an information technology company , designs, develops,
and delivers healthcare IT platforms and applications that address the administrative,
clinical, and connectivity requirements of healthcare organizations.
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The companys product portfolio comprises clinical management solutions, such
as i.Clinical Manager and LORENZO Clinical; and emergency solutions. It also offers
Endoscopy solutions, Health record management solutions and Health views; and
Laboratory products.
In addition, the company provides maternity solutions comprising Evolution;
Patient management solutions and Pharmacy solutions. Further, it offers primary care
solutions consisting of Synergy, Premiere, and LORENZO Primary Care, Radiology
products and also various solutions for operation theatres.
Additionally, the company offers patient safety software, including the AIMS
system, which enables healthcare organizations to record, monitor and take relevant
management action to minimize future adverse medical events.
iSOFT Group Limited operates in Australia, Newzealand, China, India, and
United Kingdom, as well as in South East Asia, Africa, the Middle East, and the
Mainland Europe. The company was formerly known as IBA Health Group Limited and
changed its name to iSOFT Group Limited in May 2009. iSOFT Group Limited is
headquartered in Sydney, Australia.
iSOFT R&D Pvt Ltd, Chennai is the product development centre for iSOFTs
global operations. The purpose is to harness Information Technology to deliver speedy,
error-free and cost-effective healthcare to benefit the Clinician, the business manager and
the patient alike. It specializes in the design, development & delivery of innovative,
patient-centric software application packages to keep abreast of the ever-changing
requirements of information systems, supporting both public and private healthcare
providers, in the modern communities.
In India, iSOFT has its branches in Chennai and Bangalore with the manpower of
1265 and 180 respectively in each branch.
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1.4 PRODUCT PROFILE:
iSOFTs range of internationally recognized solutions provide health
professionals with accurate, timely information that lets them focus on the patient in front
of them. Developed to automate care processes and support defined workflows, the
solutions improve patient outcomes by enabling the transfer, storage and availability of
patient information across the care continuum.
iSOFT understand the inherent need for providers to share vital information
across care facilities through Health Information Exchange technologies that create
electronic health records capable of traveling with an individual and available at every
point of care.
Clinical Collaboration
iSOFT Clinical Collaboration solutions help healthcare providers better manage
and share clinical information across disparate care facilities and departments. The
collaboration solutions facilitate the exchange and bringing together of relevant patient
information in a context that assists meaningful analysis and effective treatment.
Integration Engine
The integration engine provides easy the integration platforms enable software
solutions to share information when needed and in the required form, ensuring seamless
integration and letting the best of breed applications communicate with each other.
Application Development Tools
iSOFT Application Development Tools lets the patient improve the
interoperability and extend the functionality of the existing systems as well as integrating
new applications into the workflows.
http://www.isofthealth.com/en/Solutions/ClinicalCollaboration.aspxhttp://www.isofthealth.com/en/Solutions/IntegrationEngine.aspxhttp://www.isofthealth.com/en/Solutions/ApplicationDevelopmentTools.aspxhttp://www.isofthealth.com/en/Solutions/ClinicalCollaboration.aspxhttp://www.isofthealth.com/en/Solutions/IntegrationEngine.aspxhttp://www.isofthealth.com/en/Solutions/ApplicationDevelopmentTools.aspx8/6/2019 Praveena - Project Report2 !!!
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Lorenzo
Lorenzo solutions enable collaboration and interoperability across all sectors of
care and remove traditional barriers to sharing health related information and electronic
record management. Lorenzo creates virtual health networks that securely connect
doctors, care facilities and patients while protecting the organizations previous
investments by integrating seamlessly with existing systems.
Department
iSOFT Department solutions are designed to provide comprehensive management
and process support across all hospital departments while withstanding the demanding
and dynamic hospital environment.
Enterprise Scheduling
Proven booking and referral solutions for the healthcare community. iSOFT
Enterprise Scheduling enhances staff productivity and patient service by delivering
greater operational efficiency and increased patient throughput.
Hospitals & Clinics
iSOFT Hospital and Clinic solutions provide complete information and
administrative support systems that helps to better manage the patient journey whilst
ensuring accuracy and safety.
Diagnostic
iSOFT Diagnostic solutions provide rich functionality that supports workflow
across laboratories, radiology and medical imaging within hospital or independent
diagnostic facilities. These solutions reduce analysis time and improve communication
with remote and disparate facilities and providers
http://www.isofthealth.com/en/Solutions/Lorenzo.aspxhttp://www.isofthealth.com/en/Solutions/Department.aspxhttp://www.isofthealth.com/en/Solutions/iSOFTEnterpriseScheduling.aspxhttp://www.isofthealth.com/en/Solutions/HospitalsandClinics.aspxhttp://www.isofthealth.com/en/Solutions/Diagnostics.aspxhttp://www.isofthealth.com/en/Solutions/Lorenzo.aspxhttp://www.isofthealth.com/en/Solutions/Department.aspxhttp://www.isofthealth.com/en/Solutions/iSOFTEnterpriseScheduling.aspxhttp://www.isofthealth.com/en/Solutions/HospitalsandClinics.aspxhttp://www.isofthealth.com/en/Solutions/Diagnostics.aspx8/6/2019 Praveena - Project Report2 !!!
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Primary Care
iSOFT Primary Care solutions are tailor made to meet the needs of Aged Care,
Social Care, Community Care and GP practices of any size. Designed to improve patient
care whilst delivering you cost and time savings, these tools help you streamline your
processes and better utilize, manage and share the data your organization creates.
Business solutions
iSOFT Business solutions provide a powerful and flexible financial processing
and management information solution that uniquely fits within the healthcare
environment. Utilizes the latest in database management and web architecture technology
to implement sophisticated workflows and deliver reduced processing costs and improved
procurement management.
Consumer Health, Media & Life Sciences
iSOFTs Consumer and Media division works to leverage the latest advances in
information and communications infrastructure to provide health professionals with tools
that deliver personalized care in a community setting.
1.5 INDUSTRY PROFILE:
The Indian Information Technology industry accounts for a 5.19% of the
country's GDP and export earnings as of 2009, while providing employment to a
significant number of its tertiary sector workforce. More than 2.5 million people are
employed in the sector either directly or indirectly, making it one of the biggest job
creators in India and a mainstay of the national economy.
In 2010-11, annual revenues from IT-ITES sector is estimated to have grown over
US$76 billion compared to China with $35.76 billion and Philippines with $8.85 billion.
Indias outsourcing industry is expected to increase to US$225 billion by 2020. The most
prominent IT hub is IT capital Bangalore.
http://www.isofthealth.com/en/Solutions/PrimaryCare.aspxhttp://www.isofthealth.com/en/Solutions/ConsumerHealth.aspxhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/GDPhttp://en.wikipedia.org/wiki/Tertiary_sectorhttp://en.wikipedia.org/wiki/Information_Technologyhttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/People's_Republic_of_Chinahttp://en.wikipedia.org/wiki/Philippineshttp://en.wikipedia.org/wiki/Bangalorehttp://www.isofthealth.com/en/Solutions/PrimaryCare.aspxhttp://www.isofthealth.com/en/Solutions/ConsumerHealth.aspxhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/GDPhttp://en.wikipedia.org/wiki/Tertiary_sectorhttp://en.wikipedia.org/wiki/Information_Technologyhttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/People's_Republic_of_Chinahttp://en.wikipedia.org/wiki/Philippineshttp://en.wikipedia.org/wiki/Bangalore8/6/2019 Praveena - Project Report2 !!!
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The other emerging destinations are Chennai, Hyderabad, Kolkata, Pune,
Mumbai, NCRand Kochi. Technically proficient immigrants from India sought jobs in
the western world from the 1950s onwards as India's education system produced more
engineers than its industry could absorb.
India's growing stature in the information age enabled it to form close ties with
both the United States of America and the European Union. However, the recent global
financial crises has deeply impacted the Indian IT companies as well as global
companies. As a result hiring has dropped sharply and employees are looking at different
sectors like the financial service, telecommunications, and manufacturing industries,
which have been growing phenomenally over the last few years.
India's IT Services industry was born in Mumbai in 1967 with the establishment
of Tata Group in partnership with Burroughs. The first software export zone Santacruz
Electronics Export Processing Zone (SEEPZ) was set up here way back in 1973, the old
avatar of the modern day IT Park. More than 80 percent of the country's software exports
happened out of SEEPZ, Mumbai in 1980s.
Each year India produces roughly 500,000 engineers in the country, out of them
only 25% to 30% possessed both technical competency and English language skills,although 12% of India's population can speak in English. India developed a number of
outsourcing companies specializing in customer support via Internet or telephone
connections. By 2009 India is the 12th largest country in the world in terms ofbroadband
Internet users..
By 2010 the Indian IT and ITES services industry could directly employ
approximately 2.3 million people, besides providing indirect employment to another 6.5
million workers, according to the report.
The industry employed about 1 million staff and provided indirect employment to
2.5 million people in the fiscal year to March 31 2010, according to data released by
National Association of Software & Service Companies (NASSCOM).
http://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/Hyderabad,_Indiahttp://en.wikipedia.org/wiki/Kolkatahttp://en.wikipedia.org/wiki/Punehttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/National_Capital_Region_(India)http://en.wikipedia.org/wiki/Kochihttp://en.wikipedia.org/wiki/United_States_of_Americahttp://en.wikipedia.org/wiki/European_Unionhttp://en.wikipedia.org/wiki/Financial_crisis_of_2007%E2%80%932010http://en.wikipedia.org/wiki/Financial_crisis_of_2007%E2%80%932010http://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/SEEPZhttp://en.wikipedia.org/wiki/SEEPZhttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/English_languagehttp://en.wikipedia.org/wiki/Internethttp://en.wikipedia.org/wiki/List_of_countries_by_number_of_broadband_Internet_usershttp://en.wikipedia.org/wiki/List_of_countries_by_number_of_broadband_Internet_usershttp://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/Hyderabad,_Indiahttp://en.wikipedia.org/wiki/Kolkatahttp://en.wikipedia.org/wiki/Punehttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/National_Capital_Region_(India)http://en.wikipedia.org/wiki/Kochihttp://en.wikipedia.org/wiki/United_States_of_Americahttp://en.wikipedia.org/wiki/European_Unionhttp://en.wikipedia.org/wiki/Financial_crisis_of_2007%E2%80%932010http://en.wikipedia.org/wiki/Financial_crisis_of_2007%E2%80%932010http://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/SEEPZhttp://en.wikipedia.org/wiki/SEEPZhttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/English_languagehttp://en.wikipedia.org/wiki/Internethttp://en.wikipedia.org/wiki/List_of_countries_by_number_of_broadband_Internet_usershttp://en.wikipedia.org/wiki/List_of_countries_by_number_of_broadband_Internet_users8/6/2019 Praveena - Project Report2 !!!
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However staff shortage could be a major bottleneck for the industry, according to
the report. The skills and quality of the workforce needs to be improved as only 25
percent of technical graduates are suitable for employment in the offshore IT industry in
India, while only 10 percent to 15 percent of general college graduates are suitable for
employment by the ITES industry, according to Jayant Sinha, partner at McKinsey & Co.
The report proposes setting 10 or 12 integrated townships in India with associated
infrastructure like roads and international airports.
Major reasons for the significant growth of the IT industry of India are
1. Abundant availability of skilled manpower
2. Reduced telecommunication and internet costs3. Reduced import duties on software and hardware products
4. Cost advantages
5. Encouraging government policies
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CHAPTER 2
2. REVIEW OF LITERATURE
2.1 INTRODUCTION TO EMPLOYEE RETENTION TECHNIQUES
Employees are a valuable asset to any organization. It is essential to protect this
vital resource as talented and motivated employees play a crucial role in overall growth
and success of the organization. Focusing on employee retention techniques can
positively impact the organization as it increases employee productivity, performance,
quality of work, profits, and reduces turnover and absenteeism. Effectively creating an
engaging environment, recognizing good performance, giving benefits and rewards,
promoting mutual respect are some of the ways for effective employee retention.
Increase Employee Engagement
Effectively implementing employee retention program by increasing employee
engagement ensures that the employees are satisfied with their work, take pride in their
work, report to duty on time, feel responsible for their job, feel valued for their
contributions, and have high job satisfaction.
As employees actively focus on their work, it increases the productivity levels in
the organization and leads to improvement in several associated areas. Employee
engagement ensures that the employees have a clear understanding of their roles and
responsibilities in the organization. Increasing employee engagement helps to develop
emotional connection, enthusiasm among the employees that promotes teamwork and
healthy environment at the workplace.
Motivate Employees
Motivating employees by offering them better opportunities for career
development can help in employee retention. Giving rewards, recognitions, promotions,
and appreciation can motivate them to increase their productivity, commitment to work,
and loyalty to the organization.
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They feel that their contributions are valued in the organization. Giving
incentives, pay hikes, bonuses can also help to motivate employees. Recognizing their
contributions and aspirations motivates them to work productively and increases his
confidence that helps in their retention.
Focus On Team Building
Promoting team culture helps to actively involve all employees in achieving the
goals and in overall success of the organization. Promoting team building imbibes a sense
of belongingness among them that they are a part of larger goals or objectives of the
organization.
Team building promotes team work and team effort that help them to tackle work
pressure and thus provide a competitive advantage to organization. Focusing on team
building activities can help to reduce workplace conflicts between team members as they
work in a team. Organizing team building games, seminars, outdoor events help to
promote team spirit, unity, and reduce stress.
Recognition of Performance
Recognition of performance of employees is an effective method of employee
retention. Although monetary compensation can act as a motivating factor, openly
recognizing the performance, initiative, and good work increases the morale and
motivates the employee to work more productively. Appreciating the performance
motivates the employee and they feel valuable within the organization. This helps in
employee engagement and to increase the productivity levels.
2.2 EMPLOYEE RETENTION TECHNIQUES
1. Employee Reward Program- You can make a provision of Monthly or Quarterly
Award (depending upon the budget) for the best employee, Awarding 2 or 3 best workers
each month. The award can be in terms of gifts or money.
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If it is money then it should be divided into two parts, first part to be given with the next
month salary and the remaining after 6 months. In this way he/she can be retained for 6
more months. These rewards shall be considered at the time of appraisal.
2. Career Development Program- Every individual is worried about his/her career. You
can provide them conditional assistance for certain courses which are beneficial from
your business point of view. Conditional assistance means the company will bear the
expenses only if he/she gets an aggregate of certain percentage of marks. And entrance to
that course should be on the basis of a Test and the number of seats to be limited. For
getting admitted to such program, You can propose them to sign a bond with the
company, like they cannot leave the company for 2 years or something after the
successful completion of the course.
3. Performance based Bonus- The employee always comes to know about the profit of
the company which is of course based on the strategic planning of the top management
and the productivity of the employee. To get more work out of the employee, You can
make a provision of Bonus. By this employee will be able to relate himself with the
companys profit and hence will work hard. This bonus should be productivity based.
You can make sure that this bonus is not adding extra-pressure on the budget of Your
Company and you can arrange this by cutting a part of the salary hikes and presenting it
to the employees in the form of bonus.
4. Employee Referral Plan- You can introduce Employee Referral Plan. This will
reduce your cost (charges of external consultants and searching agencies) of hiring a new
employee and up to an extent you can rely on this new resource. On every successful
referral, employee can be given a referral bonus after 6 or 9 months of continuous
working of the new employee as well as the existing employee. By this you can get a new
employee at a reduced cost as well as are retaining the existing one for a longer period of
time.
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5. Loyalty Bonus- You can introduce a Loyalty Bonus Program in which you can reward
your employee after a successful completion of a specified period of time. This can be in
the form of Money or Position. This will encourage the fellow employees as well whether
they are interested in money or position, they will feel fascinated.
6. Giving a voice to the Knowledge Banks- First of all you should try to retain your
workforce intact, as they are the intellectual asset of the company. And above that you
cant afford losing your knowledge banks. These are the people who stabilize the process.
You can involve them in some of the decisions.
7. Employee Recreation- You should also let your employees enjoy in a light mood.
You can take your employees to a trip or for an outing every year or bi-yearly. You can
make use of this trip as well. You can start this trip with an opening note about the
management views and plans, strategies etc. At the same time you can involve your top
management into some of the fun activities as this will make feel the employees that they
are very close to the management and everybody is same.
8. Gifts at some Occasions- You can give some gifts at the time of one or two festivals
to the employees making them feel good and understand that the management is
concerned about them.
9. Accountability- You should make each employee accountable so that he can also feel
that he is as important as his manager. If he/she will be filled with this sense, he/she will
seldom think of leaving the company.
10. Making the managers effective and easily accessible- You should make the
management easily accessible so that the employee expectations can be clearly
communicated to the top management, as it is impossible for the top management to
reach each employee frequently.
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11. Surveys- You should conduct regular surveys for feedbacks from employee about
their superiors as well as other issues like food, development plans and other suggestions.
This will make them feel of their importance and the caring nature of the company. Some
of the suggestions might be of real good use for the company.
2.3 MANAGING EMPLOYEE RETENTION
The task of managing employees can be understood as a three stage process:
1. Identify the cost of employee turnover
2. Understand why employee leave
3. Implement retention strategies
1. Identify the cost of employee turnover:
The organizations should start with identifying the employee turnover rates within a
particular time period and benchmark it with the competitor organizations. This will help
in assessing the whether the employee retention rates are healthy in the company.
Secondly, the cost of employee turnover can be calculated. According to a survey, on an
average, attrition costs companies 18 months salary for each manager or professional
who leaves, and 6 months pay for each hourly employee who leaves. This amounts to
major organizational and financial stress, considering that one out of every three
employees plans to leave his or her job in the next two years.
2. Understand why employees leave:
Why employees leave often puzzles top management. Exit interviews are an ideal way of
recording and analyzing the factors that have led employees to leave the organization.
They allow an organization to understand the reasons for leaving and underlying issues.
So an impartial person should be appointed with whom the employees feel comfortable in
expressing their opinions.
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3. Implement retention strategy:
Once the causes of attrition are found, a strategy is to be implemented so as to reduce
employee turnover. The most effective strategy is to adopt a holistic approach to dealing
with attrition. An effective retention strategy will seek to ensure:
Attraction and recruitment strategies enable selection of the right candidate for
each role/organization
New employees initial experiences of the organization are positive
Appropriate development opportunities are available to employees, and that they
are kept aware of their likely career path with the organization
The organizations reward strategy reflects the employee drivers
The leaving process is managed effectively
2.4 NEED & IMPORTANCE OF EMPLOYEE RETENTION
Let us understand why retaining a valuable employee is essential for an organization.
Hiring is not an easy process: The HR Professional shortlists few individuals
from a large pool of talent, conducts preliminary interviews and eventually
forwards it to the respective line managers who further grill them to judge
whether they are fit for the organization or not. Recruiting the right candidate is a
time consuming process.
An organization invests time and money in grooming an individual and
makes him ready to work and understand the corporate culture: A new
joinee is completely raw and the management really has to work hard to train him
for his overall development. It is a complete wastage of time and money when an
individual leaves an organization all of a sudden. The HR has to start the
recruitment process all over again for the same vacancy; a mere duplication of
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work. Finding a right employee for an organization is a tedious job and all efforts
simply go waste when the employee leaves.
When an individual resigns from his present organization, it is more likely
that he would join the competitors: In such cases, employees tend to take all the
strategies, policies from the current organization to the new one. Individuals take
all the important data, information and statistics to their new organization and in
some cases even leak the secrets of the previous organization. To avoid such
cases, it is essential that the new joinee is made to sign a document which stops
him from passing on any information even if he leaves the organization. Strict
policy should be made which prevents the employees to join the competitors. This
is an effective way to retain the employees.
The employees working for a longer period of time are more familiar with
the companys policies, guidelines and thus they adjust better: They perform
better than individuals who change jobs frequently. Employees who spend a
considerable time in an organization know the organization in and out and thus
are in a position to contribute effectively.
Every individual needs time to adjust with others: One needs time to know his
team members well, be friendly with them and eventually trust them.
Organizations are always benefited when the employees are compatible with eachother and discuss things among themselves to come out with something beneficial
for all. When a new individual replaces an existing employee, adjustment
problems crop up. Individuals find it really difficult to establish a comfort level
with the other person.
After striking a rapport with an existing employee, it is a challenge for the
employees to adjust with someone new and most importantly trust him. It is a
human tendency to compare a new joinee with the previous employees and
always find faults in him.
It has been observed that individuals sticking to an organization for a longer
span are more loyal towards the management and the organization: They
enjoy all kinds of benefits from the organization and as a result are more attached
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to it. They hardly badmouth their organization and always think in favour of the
management. For them the organization comes first and all other things later.
It is essential for the organization to retain the valuable employees showing
potential: Every organization needs hardworking and talented employees who
can really come out with something creative and different. No organization can
survive if all the top performers quit. It is essential for the organization to retain
those employees who really work hard and are indispensable for the system.
The management must understand the difference between a valuable employee and an
employee who doesnt contribute much to the organization. Sincere efforts must be made
to encourage the employees so that they stay happy in the current organization and do not
look for a change.
2.5 SEVEN STEPS TO INCREASE EMPLOYEE RETENTION
Conduct job analysis audits to provide realistic job previews. Conduct job
analysis audits with behavioral assessments, cognitive reasoning assessments, job
simulations, and hard skills assessments (e.g., computer skills, etc.) to objectively
define the core competencies required for success in each role (competency
modeling). This helps in providing a realistic job preview for candidates andmanagers. Oftentimes what managers think they need for a certain role is different
from that they actually need.
Implement a well-designed assessment and selection process. Include behavioral
assessments and structured behavioral interviewing techniques to increase the
likelihood of hiring people that can, and will, do the job at a high level in your
environment and for your managers (job fit assessment).
Provide good employee orientation. The people you hire today are potentially
your greatest resource for corporate success in the years ahead. As a senior leader,
your participation in new employee orientation sends a vital cultural and
leadership message: "Were all involved here in the drive toward what we want to
be in the future." Everyoneeven the newest employeehas value.
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Implement programs for employee training and development. Provide ongoing
professional development to show your willingness as an organization to develop
your greatest assetyour people.
Improve manager and employee relationships. Concentrate on the people that stay
with you to learn what makes them happy then give them more of it! "People
leave managers, not companies. If you have a turnover problem, look first at your
managers," Marcus Buckingham and Curt Coffman write in First, Break All the
Rules.
Provide an equitable or fair pay system. Be competitive!
Encourage succession planning. Identify roles for which employees may be suited
in the future and work with them on designing their succession plan within the
organization. Invest in cross-training, job shadowing, coaching, mentoring, and
cross-experience.
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CHAPTER 3
3. RESEARCH METHODOLOGY AND DESIGN
3.1 INTRODUCTION
Research means a systematic and scientific research for pertinent information on a
specific topic.
According to Clifford Woody, research comprises defining and redefining
problems, formulation of hypothesis or suggesting solutions, collecting, organizing and
evaluating data. Making deduction and reaching conclusions and at last carefully testing
the conclusions to determine where they fit the formulating hypothesis.
A research design is the specification of methods and procedures for acquiring the
needed data to solve the problem.
3.2 TYPE OF RESEARCH
In this study descriptive research is used for testing. Descriptive research includes
surveys and fact findings enquiries of different kinds. The main purpose of descriptive
research is description of the state of affairs, as it exists at present. The main
characteristic of this method is that the researcher has no control over the variables. The
researcher can only report what has happened or what is happening. The methods of
research utilized in descriptive research are survey methods of all kinds, including
comparative and correlation methods.
3.3 DATA COLLECTIONThe data used for the purpose of the study are:
Primary data
Secondary data
Primary Data
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Survey
Secondary Data
Internet
Data from company executives
3.4 RESEARCH INSTRUMENT
The research instrument used in the study is a Structured Questionnaire. This
questionnaire comprises of definite concrete and predetermined questions, relating to the
aspect, for which the researcher collects data, interprets and suggests suitable measures to
improve the level of job satisfaction.
3.5 QUESTIONNAIRE DESIGN
The questionnaire used for collecting the data is a structured questionnaire. It
consists of 21 questions i.e., personal details and questions that are framed based on the
objectives of the study.
Questionnaire design is of structured type which consists of:
Open ended
Close ended
Multiple choice
3.6 SAMPLING TECHNIQUES AND SIZE
Simple Random Sampling method has been used in this study. This method is
used for selecting 150 members as a random from the group of 1500 employees in iSOFT
R&D Private Ltd., Chennai. Therefore it is a probability sampling technique.
3.7 TOOLS FOR ANALYSIS
The statistical tools used for analysis by the researcher are that the percentage
analysis and the chi square test.
3.8 LIMITATIONS OF THE STUDY
The results and findings are confined to a limited area.
The opinions of the respondents may be biased.
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Time and resource constraint.
The sample taken for research was concerned only for 150 respondents.
CHAPTER 4
4. DATA ANALYSIS AND INTERPRETATION
4.1 DATA ANALYSIS AND INTERPRETATION
The data after collection has to be processed and analyzed in accordance with the
outline laid down for the purpose at the time of developing the research plan. This is
essential for a scientific study and for ensuring that we have all the relevant data
processing implies editing, coding, classification and tabulation of collected data so that
they are acquainted with the analysis.
The term analysis refers to the computation of certain measures along with
searching for patterns of relationship that exists among data groups. Thus in the process
of analysis, relationships or differences supporting or conflicting with original or newhypothesis should be subjected to statistical tests of significance to determine with what
valid data can be said to indicate any conclusions.
Analysis of data in a general way involves a number of closely related operations
that are performed with the purpose of summarizing the collected data and organizing
them in such a manner that they answer the research questions.
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Age wise Classification
TABLE NO.: 4.1.1
Inference:
The above table indicates that, 50% of the employees are between 21-25 years of
age and 15% of the employees are between 26 30 years of age and 22% of the
Age in Years Number of Respondents Percentage
21 25 years 75 50
26 30 years 22 14.67
31 35 years 33 2236 40 years 20 13.33
Above 40 years 0 0
Total 150 100
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employees are between 31 35 years of age and nearly 13 % of employees are 36 40
years of age.
Gender wise Classification
TABLE NO.: 4.1.2
Gender Number of Respondents Percentage
Male 87 58
Female 63 42
Total 150 100
Inference:
The above table indicates that, 58% of the employees are male and 42% of the employees
are female.
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Education wise Classification
TABLE NO.: 4.1.3
Education Number of Respondents Percentage
Diploma 0 0
Under Graduation 96 64
Post Graduation 54 36
Total 150 100
Inference:
The above table indicates that, 64% of the employees are Under Graduates and 36% of
them are Post Graduates.
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Experience in iSOFT
TABLE NO.: 4.1.4
Work Experience Number of Respondents Percentage
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Current Position Number of Respondents Percentage
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2 21 14
3 11 7.33
>3 10 6.67
None 97 64.67
Total 150 100
Inference:
The above table indicates that, 7% of the employees have got 1 promotion and 14% of
the employees have got 2 promotion and 8% of the employees have got 3 promotions and
7% of the employees have got >3 promotions and 64% of the employees have not got
any promotions
Expectation towards Organization
TABLE NO.: 4.1.7
Expectation Towards Organization Number of Respondents Percentage
Team Work Encouragement 33 22
Stable Employment 33 22
Job Security 11 7.33
Favorable Package 10 6.67
Career Growth 63 42
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Others (Specify) 0 0
Total 150 100
Inference:
The above table indicates that, the expectation of the employees towards the organization
are that 22% of the employees expect team work encouragement, 22% of the employees
expect Stable employment, 8% of the employees expect job security, 6% of the
employees expect favorable package and 42% of them expect career growth
Part of Team and Working towards Organizations Goals
TABLE NO.: 4.1.8
Part of Team Number of Respondents Percentage
Strongly Agree 85 56.67
Agree 54 36
Neutral 11 7.33
Disagree 0 0
Strongly Disagree 0 0
Total 150 100
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Inference:
The above table indicates that, 57% of the employees strongly agree that they are part of
the team and they are working towards organizations goals and 36% of them agree with
this and 7% of them are neither agree nor disagree
Mutual Respect
TABLE NO.: 4.1.9
Mutual Respect Number of Respondents Percentage
Strongly Agree 74 49.34
Agree 65 43.33
Neutral 11 7.33
Disagree 0 0Strongly Disagree 0 0
Total 150 100
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Inference:
The above table indicates that, 49% of the employees strongly agree that they have
mutual respect, 44% of them agree and 7% of them neither agree nor disagree
Leave
TABLE NO.: 4.1.10
Leave Number of Respondents Percentage
Strongly Agree 42 28
Agree 86 57.33
Neutral 22 14.67
Disagree 0 0
Strongly Disagree 0 0
Total 150 100
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Inference:
The above table indicates that, 28% of the employees strongly agree that they can avail
leave easily during emergency, 57% of them agree and 15% of them neither agree nor
disagree
Work Challenging and Interesting
TABLE NO.: 4.1.11
Work Challenging & Interesting Number of Respondents Percentage
Strongly Agree 85 56.67
Agree 54 36
Neutral 11 7.33
Disagree 0 0
Strongly Disagree 0 0Total 150 100
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Inference:
The above table indicates that, 57% of the employees strongly agree that their work is
challenging and interesting, 36% of them agree and 7% of them neither agree nor
disagree.
Job
TABLE NO.: 4.1.12
Job Number of Respondents Percentage
Highly Satisfied 64 42.67
Satisfied 86 57.33
Neutral 0 0
Dissatisfied 0 0
Highly Dissatisfied 0 0
Total 150 100
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Inference:
The above table indicates that, 43% of the employees are highly satisfied with their job
and 57% are satisfied
Team Work
TABLE NO.: 4.1.13
Team Work Number of Respondents Percentage
Highly Satisfied 64 42.67
Satisfied 65 43.33
Neutral 10 6.67
Dissatisfied 11 7.33
Highly Dissatisfied 0 0Total 150 100
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Inference:
The above table indicates that, 43% of them are highly satisfied with the team work, 43%
are satisfied, 7% of them are neither satisfied nor dissatisfied and 7% of them are
dissatisfied
Supervisor
TABLE NO.: 4.1.14
Supervisor Number of Respondents Percentage
Highly Satisfied 54 36
Satisfied 85 56.67
Neutral 11 7.33
Dissatisfied 0 0
Highly Dissatisfied 0 0
Total 150 100
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Inference:
The above table indicates that,36% of them are highly satisfied with their supervisor,57% are satisfied, 7% of them are neither satisfied nor dissatisfied
Salary
TABLE NO.: 4.1.15
Salary Number of Respondents Percentage
Highly Satisfied 21 14
Satisfied 65 43.33
Neutral 54 36
Dissatisfied 10 6.67
Highly Dissatisfied 0 0
Total 150 100
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Inference:
The above table indicates that, 14% of them are highly satisfied with their salary, 43%
are satisfied, 36% of them are neither satisfied nor dissatisfied and 7% of them are
dissatisfied
Employee Welfare and Health
TABLE NO.: 4.1.16
Welfare and Health Number of Respondents Percentage
Highly Satisfied 43 28.67
Satisfied 86 57.33
Neutral 0 0
Dissatisfied 21 14
Highly Dissatisfied 0 0Total 150 100
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Inference:
The above table indicates that, 29% of them are highly satisfied with the employee
welfare and health, 57% are satisfied and 14% of them are dissatisfied
Incentives
TABLE NO.: 4.1.17
Incentives Number of Respondents Percentage
Highly Satisfied 10 6.67
Satisfied 55 36.67
Neutral 44 29.33
Dissatisfied 31 20.66
Highly Dissatisfied 10 6.67
Total 150 100
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Inference:
The above table indicates that,7% of them are highly satisfied with their incentives, 37%are satisfied, 29% of them are neither satisfied nor dissatisfied, 20% of them are
dissatisfied and 7% of them are highly dissatisfied
Performance Appraisal
TABLE NO.: 4.1.18
Performance Appraisal Number of Respondents Percentage
Highly Satisfied 10 6.67
Satisfied 44 29.33
Neutral 66 44
Dissatisfied 20 13.33
Highly Dissatisfied 10 6.67Total 150 100
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Inference:
The above table indicates that, 7% of them are highly satisfied with the performance
appraisal of the organization, 29% are satisfied, 44% of them are neither satisfied nor
dissatisfied, 13% of them are dissatisfied and 7% of them are highly dissatisfied
Relationship with Supervisor
TABLE NO.: 4.1.19
Relationship with Supervisor Number of Respondents Percentage
Highly Satisfied 64 42.67
Satisfied 86 57.33
Neutral 0 0
Dissatisfied 0 0
Highly Dissatisfied 0 0Total 150 100
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Inference:
The above table indicates that, 35% of them are highly satisfied with the relationship
with their supervisor, 37% are satisfied, 28% of them are neither satisfied nor dissatisfied
Supervisor Listen to Your Suggestions
TABLE NO.: 4.1.20
Supervisor Listen to Your Suggestions Number of Respondents Percentage
Sometimes 11 7.33
Mostly 52 34.67
Neutral 22 14.67
Always 54 36
Not at all 11 7.33Total 150 100
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Inference:
The above table indicates that, 7% of the employees say that their supervisors listen to
their suggestions sometimes, 35% of them mostly, 15% of them say neutral, 36% of them
say always and 7% of them say not at all
Supervisor Treating Fairly
TABLE NO.: 4.1.21
Options Number of Respondents Percentage
Yes 150 100
No 0 0
Total 150 100
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Inference:
The above table indicates that, 100% of the employees say that their supervisors treat
them fairly.
Challenging Assignments
TABLE NO.: 4.1.22
Options Number of Respondents Percentage
Yes 150 100No 0 0
Total 150 100
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Inference:
The above table indicates that, 100% of the employees say that their supervisors provide
them with challenging assignments
CHAPTER 5
5. SUGGESTIONS
The main expectation of the employees is that the career growth and the next is
the team work encouragement.
It would be better if we can improve the salary and also concentrate on employee
welfare and health.
The employees are also dissatisfied with the incentives and the performance
appraisal.
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If these suggestions are taken into account then the existing employees can be
retained to an extent.
CHAPTER 6
6. REFERENCE
www.ZERORISKHR.com
http://retention.naukrihub.com/retention.html
http://www.contentwriter.in/articles/hr/employee-retention-tools.htm
http://retention.naukrihub.com/managing-employee-retention.html
http://www.managementstudyguide.com/importance-of-employee-retention.htm
http://www.zeroriskhr.com/http://retention.naukrihub.com/retention.htmlhttp://www.contentwriter.in/articles/hr/employee-retention-tools.htmhttp://retention.naukrihub.com/managing-employee-retention.htmlhttp://www.managementstudyguide.com/importance-of-employee-retention.htmhttp://www.zeroriskhr.com/http://retention.naukrihub.com/retention.htmlhttp://www.contentwriter.in/articles/hr/employee-retention-tools.htmhttp://retention.naukrihub.com/managing-employee-retention.htmlhttp://www.managementstudyguide.com/importance-of-employee-retention.htm8/6/2019 Praveena - Project Report2 !!!
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