Project for CD

8/6/2019 Project for CD

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Dissertation

ReportOn

Employee Retention

Submitted In The Partial Fulfillment ofAward of

Master of Business Administration

NATIONAL INSTITUTE OF TECHNOLOGYKURUKSHETRA

Submitted To :- Submitted By :-

NIT Kurukshetra Page 1


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Dr. P.J. Philip Anil Kumar

Head of Department Roll No. 309378

DBA, NIT Kkr MBA Final Year

DECLARATION

I Anil Kumar, a student of MBA (Marketing & Finance) at National Institute of

Technology, Kurukshetra, and Roll Number 309378 hereby declare that this dissertation

report entitled Employee retention has been carried out by me,.

I declare that no material contained within this assignment has been used in any other

submission, by the author, for an academic award.

I further declare that the information presented in this project is true and original to the

best of my knowledge.

Date: Name: Anil Kumar

Place: Kurukshetra



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CERTIFICATE OF ORIGNALITY

This is to certify that project report on Employee Retention was carried by me, in

original as a part of requirement of MBA, a four-semester program.

This is an original work done during my final year of full time management course.

Various references used to guide my work have been mentioned in bibliography.

This study is being submitted for approval of the Department of Business

Administration, NIT Kurukshetra as a basic requirement for the completion of thecourse, under the able guidelines of Dr. P.J. Philip, Chairman, Department of

Business Administration. I also express my gratitude to Dr. Kranti Walia, without

whom it would not have been possible. I am also grateful to Mr. Vinod Kumar for his

valuable support.

Anil Kumar

MBA

Department of Business Administration

NIT Kurukshetra.



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ACKNOWLEDGEMENT

I take this opportunity to thank all those related directly or indirectly

for the completion of this dissertat ion successfully. I am grateful to Dr.

Kranti Walia , my faculty guide & Assistant Professor (NIT Kurukshetra),

who has been very helpful and support ive whenever I approached her

throughout the project.

I express my sincere gratitude to our Chairman, Dr. P. J. Philip, fo r

his valuable support as and when required which enabled me to complete my

dissertation within the stipulated time. I am also thankful to all members and

staff of NIT Kurukshetra and my friends for their kind co-operation through

out the work.

Anil Kumar



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TABLE OF CONTENTS

1. Executive summary 6

2. Objectives of study 8

3. Scope of study 9

4. Introduction 10

5. Research methodology 22

6. Data collection methods 24

7. Limitation of study 25

8. Observations and Analysis 26

9. Results 55

10. Findings 59

11. Conclusion 69

12. Recommendations 70

13. Bibliography 72



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EXECUTIVE SUMMARY

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 employershould know how to attract and retain its employees

Most employees feel that they are worth more than they are actually paid. There is

a natural disparity between what people think they should be paid and what organizations

spend in compensation. When the difference becomes too great and another opportunity

occurs, turnover can result. Pay is defined as the wages, salary or compensation given to

an employee in exchange for services the employee performs for the organization. Pay is

more than "dollars and cents;" it also acknowledges the worth and value of the human

contribution. What people are paid has been shown to have a clear, reliable impact on

turnover in numerous studies. Employees comprise the most vital assets of the company.

In a work place where employees are not able to use their full potential and not heard and

valued, they are likely to leave because of stress and frustration. In a transparent

environment while employees get a sense of achievement and belongingness from a

healthy work environment, the company is benefited with a stronger, reliable work-force

harboring bright new ideas for its growth

______________________________s___________________________________

_



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OBJECTIVE

Employees actions and reactions are based upon their perceptions. Most organizations

that do not regularly quantify their employees' feelings and concerns essentially make

managerial decisions based upon anecdotal or grapevine information. It is imperative that

an organization make decisions based upon data, not hearsay.

Investigating the satisfaction and engagement levels at an organization can lead to a more

productive work force with low attrition rate. The survey items are designed to provide amethod to examine the commitment, ownership, pride, loyalty and satisfaction of your

employees and to understand how well employees understand various administrative

policies. The survey also examines the efficiency of employee engagement and its effect

on organizational growth.



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SCOPE

1. By pursuing this project I would be able to know the impact of employee

retention on organizational growth.

2. Study of the employee retention related to organizational policies can also be

utilized to improve the satisfaction level in employees by various departments.

3. In a global scenario its one of the HR challenges to retain employee in an

organization and for this proper implementation of various organizational

activities and understanding of employee thinking is very important. The

survey helps us to understand both effectively.

4. By pursuing this I would also know the functioning of Administration

department of any Organization as HR and ADMIN are correlated words in

modern scenario.



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Introduction

Employee turnover is one of the largest though widely unknown costs and

organization faces. While companies routinely keep track of various costs such as

supplies and payroll, few take into consideration how much employee turnover will cost

them: Ernst & Young estimates it costs approximately $120,000 to replace 10

professionals. According to research done by Sibson & Company, to recoup the cost of

losing just one employee a fast food restaurant must sell 7,613 combo meals at $2.50

each. Employee turnover costs companies 30 to 50% of the annual salary of entry-level

employees, 150% of middle-level employees, and up to 400% for upper level, specialized

employees. Now that so much is being done by organizations to retain its employees,

why is retention so important? Is it just to reduce the turnover costs? Well, the answer is a

definite no. Its not only the cost incurred by a company that emphasizes the need of

retaining employees but also the need to retain talented employees from getting poached.

Resume Writing Tips

Employee Retention

Retention involves five major things:

Compensation

Environment

Growth

Relationship

Support



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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.

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.



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Employers and Their Key Drivers to Attract and Retain Talent

Employers Key Drives 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

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



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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 program

Structured career planning process

Global career opportunities

Wipro

Companys brand as an employer

Early opportunities for growth



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High degree of autonomy

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



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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. 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,



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certifications and provision for higher studies, etc

Support environment:-

Organization can provide support in the form of work-life balance.

Work life balance includes:

Flexible hours

Telecommuting

Dependent care

Alternate work schedules

Vacations Wellness

Work environment:-

It includes

efficient managers,

supportive co-workers challenging work,

involvement in decision-making,

clarity of work and responsibilities,

and recognition.

Lack or absence of such environment pushes employees to look for new opportunities.

The environment should be such that the employee feels connected to the organization in

every respect. Growth and Career Growth and development are the integral part of every

individuals career. If an employee can not foresee his path of career development in his



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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.

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 employeesand 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

C or customer satisfaction related skills

Special project related skills

Need for such training 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



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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 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 the Relationship among colleagues.

Recruit whole heartedly:-

An employee should be recruited if there is a proper place and duties for him to

perform. Otherwise 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:-



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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.

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.

Management can support employees by providing them recognition and

appreciation.

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.



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Top management can also support its employees in their personal crisis by

providing

personal loans during emergencies,

childcare services,

employee assistance Programs,

counseling services, etc

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

By providing emotional support



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RESEARCH METHODOLOGY

Research Design

The research design indicates the type of research methodology under taken to Collect

the information for the study. The researcher used both descriptive and analytical type of

research design for his research study. The main objective of using descriptive research is

to describe the state of affairs as it exits at present. It mainly involves surveys and fact

finding enquiries of different kinds. The researcher used descriptive research to discover

the characteristics of customers. Descriptive research also includes demographycharacteristic of consumer who use the product.

The researcher also used analytical research design to analyze the existing facts

from the data collected from the customer.

Area of study

The area of study is confined to employees of GEMINI COMMUNICATION LTD,

Chennai.

Research instrument

The Structured questionnaire is used as the research instrument for the study.



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DATA COLLECTION METHOD

Primary data

Primary data is the new or fresh data collected from the respondents through structured

scheduled questionnaire.

Secondary data

The secondary data are collected through the structured questionnaire, literature review

and also from the past records maintained by the company.

STATISTICAL TOOLS AND TECHNIQUES

PERCENTAGE ANALYSIS: Percentage = (No. of respondents/ total no. of

respondents)*100

WEIGHTED AVERAGE METHOD: Formula:

Mean score = total score/no of respondents.

Where total score = no of respondents*weighted average



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LIMITATIONS OF THE STUDY

1. The findings of the study are subjected to bias and prejudice of the respondents.

2. Area of the study is confined to the employees in Chennai only.

3. Time factor can be considered as a main limitation.

4. The findings of the study are solely based on the information provided by the

respondents.

5. The accuracy of findings is limited by the accuracy of statistical tools used for analysis.

6. Findings of the research may change due to area, demography, age condition of

economy etc.

Analysis and Interpretation of data

PERCENTAGE ANAYLSIS AWARENESS OF HR POLICIES

Retention Management

Abstract: Background:



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Retention management is a highly topical subject and an important dilemma many

organizations might face in the future, if not facing it already. We believe that the leader

plays a key role in employee retention and retention management.

The concept of retention management can both have a narrow, and a broader

significance. Both parts of its significance are generally included in this thesis. The

background of the thesis present a few articles that discuss issues that makes it important

for the organization, and the leaders, to work hard with retention management. The

research is based on the leaders in the Finnish case company Tradeka.

Following key questions are intended to be answered:

What are the consequences between leaders actions and employees

retention?

Which is the leaders role when it comes to retaining employees?

Purpose statement:

The purpose of the thesis is to investigate and analyze

how company leaders today can retain their key employees.?

How can the provision of key human resources develop a long-term

relationship that makes top employees stay in the company?

The study aims to establish the procedure leaders apply to retain

employees.

The purpose is to compare the qualitative study, made at the case

company, with findings from the thesis theoretical framework.

Research method:

The study is a qualitative, as well as a theoretical study where empirical findings and

theories has been compared. The intention of investigating and using the Finnish

company Tradeka Limited as a case company, is to make the information from the



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theories more valid, and also the interest in how retention management works in practice.

Eleven qualitative interviews were conducted at Tradeka?s financial department, both

with supervisors and employees to get a broader view at the phenomenon retention

management. Result: Leaders and their skill in creating a culture of retention, has

becoming a key in why people stay and what usually drives them away from a company.

The leader has become the main factor in what motivates peoples decision to stay or

leave. For organizations to keep its key employees their number one priority should be to

look at their management, because people leave managers and not companies.

Characteristics in a leader that are of importance, as the leader plays a key role in

retention management is: trust builder, esteem builder, communicator, talent developer

and coach, and talent finder. The leaders relation to the employees plays a central role in

retaining employees,

Employee Retention Strategies

The basic practices which should be kept in mind in the employee retention

strategies are:

1. Hire the right people in the first place.

2. Empower the employees: Give the employees the authority to get things

done.

3. Make employees realize that they are the most valuable asset of the

organization.

4. Have faith in them, trust and respect them

5. Provide them information and knowledge.

6. Keep providing them feedback on their performance.7. Recognize and appreciate their achievements.

8. Keep their morale high.

9. Create an environment where the employees want to work and have fun.

These practices can be categorized in 3 levels:



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Low,

medium and

high level.

Low Level Employee Retention Strategies:

Appreciating and recognizing a well done job

Personalized well done and thank-you cards from supervisors

Congratulations e-cards or cards sent to spouses/families

Voicemails or messages from top management

Periodic days off for good performance

Rewards ( gift, certificates, monetary and non monetary rewards)

Recognizing professional as well as personal significant events

Wedding gifts

Anniversary gifts

New born baby gifts

Scholarships for employees children

Get well cards/flowers

Birthday cards, celebrations and gifts

Providing benefits



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Home insurance plans

Legal insurance

Travel insurance

Disability programs

Providing perks: It includes coupons, discounts, rebates, etc

Discounts in cinema halls, museums, restaurants, etc.

Retail store discounts

Computer peripherals purchase discounts

Providing workplace conveniences

On-site ATM

On-site facilities for which cost is paid by employees

laundry facility for bachelors

Shipping services

Assistance with tax calculations and submission of forms

Financial planning assistance

Casual dress policies

Facilities for expectant mothers

Parking

Parenting guide

Lactation rooms



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Personal loans for emergencies

Childcare and eldercare services

Employee Assistance Programs ( Counselling sessions etc)

Emergency childcare services

Medium Level Strategies for Employee Retention

Appreciating and recognizing a well done job

Special bonus for successfully completing firm-sponsored certifications

Benefit programs for family support

Child adoption benefits

Flexible benefits

Dependents care assistance

Medical care reimbursement

Providing conveniences at workplace

Gymnasiums

Athletic membership program

Providing training and development and personal growth opportunities

Sabbatical programs

Professional skills development

Individualized career guidance



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High Level Strategies

Promoting Work/Life Effectiveness

Develop flexible schedules

Part-time schedules

Extended leaves of absence

Develop Support Services

On-site day care facility etc.

Understand employee needs: This can be done through propermanagement style and culture

Listen to the employee and show interest in ideas

Appreciate new ideas and reward risk-taking

Show support for individual initiative

Encourage creativity

Encouraging professional training and development and/or personalgrowth opportunities: It can be done through:

Mentoring programs

Performance feedback programs

Provide necessary tools to the employees to achieve their professional andpersonal goals

Getting the most out of employee interests and talents

Higher study opportunities for employees

Vocational counseling Offer personalized career guidance to employees

Provide an environment of trust: Communication is the most important and effectiveway to develop trust.

Suggestion committees can be created

Open door communication policy can be followed



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Transparent Work Culture

In todays fast paced business environments where employees are constant striving to

achieve business goals under time restrictions; open minded and transparent work culture

plays a vital role in employee retention. Companies invest very many hours and monies

in training and educating employees. These companies are severely affected when

employees check out, especially in the middle of some big company project or venture.

Although employees most often prefer to stay with the same company and use their time

and experience for personal growth

and development, they leave mainly because of work related stress and dissatisfactions.

More and more companies have now realized the importance of a healthy work culture

and have a gamut of people management good practices for employees to have that ideal

fresh work-life. Closed doors work culture can serve as a deterrent to communication and

trust within employees which are potential causes for work- Related apathy and frenzy.

A transparent work environment can serve as one of the primary triggers to facilitate

accountability, trust, communication, responsibility, pride and so on. It is believed that in

a transparent work culture employees rigorously communicate with their peers and

exchange ideas and thoughts before they are finally matured in to full-blown concepts. It

induces responsibility among employees and accountability towards other peers, which

gradually builds up trust and pride. More importantly, transparency in work environment

discourages work-politics which often hinders company goals as employees start to

advance their personal objectives at the expense of development of The company as a

single entity. Quality Of Work



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The success of any organization depends on how it attracts ,recruits, motivates, and

retains its workforce. Organizations need to be more flexible so that they develop their

talented workforce and gain their commitment.

Thus, organizations are required to retain employees by addressing their work life issues.

The elements that are relevant to an individuals quality of work life include the task, the

physical work environment, social environment within the organization, administrative

system and relationship between life on and off the job.

The basic objectives of a QWL

Program are improved working conditions for the Employee and increase organizational

effectiveness. Providing quality work life involves taking care of the following aspects:

Occupational health care: The safe work environment provides the basis for the person to

enjoy working. The work should not pose a health hazard for the person. The employer

and employee, aware of their risks and rights, could achieve a lot in Their mutually

beneficial dialogue.

Suitable working time:

Organizations are offering flexible work options to their employees wherein employees

enjoy flexi-timings for dedicating their efforts at work. Appropriate salary: The

appropriate as well as attractive salary has always been an important factor in retaining

employees. Providing employees salary at par with the other counterparts of above that

what competitors are paying motivates them to stick With the company for long. QWL

consists of opportunities for active involvement in group working arrangements orproblem solving that are of mutual benefit to employees or employers, based on labor

management cooperation.

People also conceive of QWL as a set of methods, such as autonomous work groups, job

enrichment, and high-involvement aimed at boosting the satisfaction and productivity of



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workers. It requires employee commitment to the organization and an environment in

which this commitment can flourish. Providing quality at work not only reduces attrition

but also helps in reduced absenteeism and improved job satisfaction. Not only does QWL

contribute to a company's ability to recruit quality people, but also it enhances a

company's competitiveness. Common beliefs support the contention that QWL will

positively nurture amore flexible, loyal, and motivated workforce, which are essential in

determining the company's competitiveness.

Supporting Employees

Organizations these days want to protect their biggest and most valuable asset and they

want to do this in a way that best suits their organizational culture. Retaining employees

is a difficult task. Providing support to the employees acts as a mantra for retraining

them. Employers can also support their employees by creating an environment of trust

and inculcating the organizational values into employees.

The management can support employees directly or indirectly. Directly, they provide

support in terms of personal crises, managing stress and personal development.

Management can support employees, indirectly, in a number of ways as follows:

Manage employee turnover

Employee turnover affects the whole organization in terms of productivity. Managing the

turnover, hence, becomes an important task. A proactive approach can be adopted to

reduce attrition. Strategies should be framed in advance and implemented when the times

arrives. Turnover costs should also be taken into consideration while framing these

strategies.

Become employer of choice: What makes a company an employer of choice? Is the

benefit it offers or the compensation packages it gives away to its employees? Or is it

measured in terms of how they value their employees or in terms of customer

satisfaction? Becoming an employer of choice involves following a road map which tells

where to go as a brand.



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Engage the new recruits: The newly hired employees are said to be least engaged in the

organization. Keeping them engaged is an important task. The fresh talent should be

utilized to maximum before they start feeling bored in the organization.

Optimize employee engagement: An organizations productivity is measured not in

terms of employee satisfaction but by employee engagement. Employees are said to be

engaged when they show a positive attitude toward the organization and express a

commitment to remain with the organization. Employee satisfaction also comes with high

engagement levels. So, organizations should aim to maximize the

engagement among employees.

Coaching and mentoring: Employees whose work performance suffers due to poor

interpersonal relationships or because of lack of interpersonal skills should be provided

proper coaching by their superiors. Planed coaching sessions help an individual to work

through issues, maximize his potential and return to peak performance.

Feedback

Feedback acts as a channel of communication between the employee and his manager.

The amount of information employees receive about how well or how poorly they have

performed is what we call feedback. It is a dialog between a manager and an employee

which acts as a way of sharing information about the performance. It suggests where the

employee performance is effective and where performance has to improve.Managers can

provide either positive feedback or negative feedback to employees.

This feedback helps the employee assess his performance and identify the improvement

areas.Positive feedback communicates managerial satisfaction. Positive recognition forgood performance boosts up morale of employees and results in performance

improvement to a higher productivity level. It is believed that positive feedback is the

only type of feedback that generates performance above the minimum acceptable level.

Negative feedback obviously communicates managers dissatisfaction. However,

negative feedback sometimes make employee to put more efforts to improve his



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performance. But such times are very rare. Moreover this improvement is short term.

Some managers do not provide any kind of feedback to their employees. Due to no

feedback, employees may assume that they are performing productively or they may feel

that the manager is satisfied with their performance. Studies reveal the performance tends

be same or even decreases if no feedback is provided. Thus, feedback is necessary

because:

It builds trust and enhances communication between manager and employee. It gives

managers and employees a way to identify and discuss skills and strengths. Positive

feedback leads to employee retention and Retention. It helps in identifying performance

areas that need improvement and specific ways to improve them. It acts as an opportunity

to enhance performance by identifying resources for skill development. It is anopportunity for managers and employees to assess and identify career and advancement

opportunities. It helps employees to understand the effectiveness of their performance

and contributes to their overall knowledge about the work Managers have tendency to

ignore good performances of their employees. Providing no feedback may demotivate

employees and may lead to employee absenteeism. Input from managers side is

necessary as it help employees to improve their performance and increase productivity.

Communication between Employee and Employer

Communication is a process in which a message is conveyed to the receiver by the

sender. The message may be or may not be in a common format or language that both the

sender and receiver understand. So there is a need to encode and decode the message in

the process. Encoding and decoding also helps in the security of the message. The

process of communication is incomplete without the feedback Communication is the

solution to almost everything in this world. Same applies to employee retention also.

Straight-from-the-shoulder communication is what the employees need from their

employers. Employees look for organizations where communication and process are

transparent. Nothing is hidden and shared with the employees.

There are 3 categories of employees:



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A: Who will leave their current employer in 3 years of their employment

B: Who have a probability of leaving their current employer in next 3 years

C: Who will stay with their current employer in the next 3 years Category

A: These are the employees who lack communication with their employers.Category

C: These are the employees who have proper, well structured communication with their

employers.

Communication is also the way to win the employees trust in the organization.

Employees trust the employers who are friendly and open to them. This trust leads to

employee loyalty and finally retention. Employers also feel that the immediate

supervisors are the most authenticated and trusted source of information for them. So the

organizations should hire managers who are active communicators.

Communication mediums Open door policy: Organizations should support open door

policies so that the employees feel comfortable and are able to express their doubts and

feeling to their employers. Frequent meetings and Social gatherings Emails, Newsletters,

Intranet and many more

So there should be effective communication across the organization and this

communication should be two-way. Communication alone can lead to unimaginable

eights of employee retention.

Importance Of Employee Retention

The process of employee retention will benefit an organization in the following ways:1.

The Cost of Turnover: The cost of employee turnover adds hundreds ofthousands of

money to a company's expenses. While it is difficult to fully calculate the cost of

turnover (including hiring costs, training costs and productivity loss), industry experts

often quote 25% of the average employee salary as a conservative estimate.



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Loss of Company Knowledge: When an employee leaves, he takes with him valuable

knowledge about the company, customers, current projects and past history (sometimes to

competitors). Often much time and money has been spent on the employee in expectation

of a future return. When the employee leaves, the investment is not realized. Interruption

of Customer Service: Customers and clients do business with a company in part because

of the people. Relationships are developed that encourage continued sponsorship of the

business. When an employee leaves, the relationships that employee built for the

company are severed, which could lead to potential customer loss.

Turnover leads to more turnovers: When an employee terminates, the effect is felt

throughout the organization. Co-workers are often required to pick up the slack. The

unspoken negativity often intensifies for the remaining staff.

Goodwill of the company: The goodwill of a company is maintained when the attrition

rates are low. Higher retention rates motivate potential employees to join the

organization. Regaining efficiency: If an employee resigns, then good amount of time is

lost in hiring a new employee and then training him/her and this goes to the loss of the

company directly which many a times goes unnoticed. And even after this you cannot

assure us of the same efficiency from the new employee

What Makes Employee Leave?

Employees do not leave an organization without any significant reason. There are certain

circumstances that lead to their leaving the organization. The most common reasons can

be: Job is not what the employee expected to be: Sometimes the job responsibilities

dont come out to be same as expected by the candidates. Unexpected job responsibilities

lead to job dissatisfaction. Job and person mismatch:

A candidate may be fit to do a certain type of job which matches his personality. If he is

given a job which mismatches his personality, then he wont be able to perform it well

and will try to find out reasons to leave the job. No growth opportunities: No or less



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learning and growth opportunities in the current job will make candidates job and career

stagnant. Lack of appreciation: If the work is not appreciated by the supervisor, the

employee feels de-motivated and loses interest in job Lack of trust and support in

coworkers, seniors and management:

Trust is the most important factor that is required for an individual to stay in the job.

Non-supportive coworkers, seniors and management can make office environment

unfriendly and difficult to work in.

Stress from overwork and work life imbalance:

Job stress can lead to work life imbalance which ultimately many times lead to employee

leaving the organization. Compensation: Better compensation packages being offered by

other companies may attract employees towards themselves. ew job offer: An attractive

job offer which an employee thinks is good for him with respect to job responsibility,

compensation, growth and learning etc. can lead an employee to leave the organization.

Managing Employee Retention

The task of managing employees can be understood as a three stage process:

1) Identify cost of employee turnover.

2) 2.Understand why employee leave.

3) 3.Implement retention strategies

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



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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.

However employees never provide appropriate response to the asked questions. So an

impartial person should be appointed with whom the employees feel comfortable in

expressing their opinions.



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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



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How To Increase Employee Retention

Companies have now realized the importance of retaining their quality workforce.

Retaining quality performers contributes to productivity of the organization and increases

morale among employees Four basic factors that play an important role in increasing

employee retention include salary and remuneration, providing recognition, benefits and

opportunities for individual growth. But are they really positively contributing to the

retention rates of a company? Basic salary, these days, hardly reduces turnover. Today,

employees look beyond the money factor.



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Retention Bonus

Higher attrition rates within a particular industry have forced companies to use some

innovative strategies to retain employees. Retention Bonus is one of the important tools

that are being used to retain employees. Retention bonus is an incentive paid to an

employee to retain them through a critical business cycle. Retention bonuses are

becoming more common in the corporate world because companies are going through

more transitions like mergers and acquisitions. They need to give key people an attractive

incentive to stay on through these transitions to ensure productivity.

Retention bonuses have proven to be a useful tool in persuading employees to stay.A

retention bonus plan is not a panacea. According to a survey, non- management

employees generally receive about 10 percent of their annual salaries in bonuses, while

management and top-level supervisors earn an additional 50 percent of their annual

salaries. While bonuses based on salary percentages are the generally used, some

companies choose to pay a flat figure. In some companies, bonuses range from 25 percent

to 50 percent of annual salary, depending on position, tenure and other factors.

Employees are chosen for retention bonuses based on their contributions to management

and the generation of revenue. Retention bonuses are generally vary from position to

position and are paid in one lump sum at the time of termination. However, some

companies pay in installments as on when the business cycle completes. A retention

period can run somewhere between six months to three years. It can also run for a

particular project. A project has its own life span. As long as the project gets completed,

the employees who have worked hard on it are entitled to receive the retention bonus. For

example, the implementation of a system may take 18 months, so a retention bonus will

be offered after 20 months. Although retention bonuses are becoming more common

everywhere, some industries are more likely than others to offer them. Retail/wholesale

companies are the most appropriate to implement stay-pay bonuses, followed by financial

service providers and manufacturing firms. Companies of all sizes use retention bonus

plans to keep knowledge employees retained in the company. To retain its key senior



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employees post merger with EDS Corporation, Mphasis is providing cash component

based retention bonus plan for its employees. This is mainly to retain good employees

and provide them a cash incentive to keep them motivated.

Hire Right Talent

employee retention starts with recruitment. Early departures arise from the wrong

recruitment process. Here are a few ways to ensure how to hire the right talent for a

particular job.

Hire appropriate candidates. Hire candidates who are actually suitable for the job. For

this the employer should understand the job requirements clearly. Dont hire under

qualified or clearly overqualified candidates. Provide realistic job preview at the time of

hiring: Mostly employees leave an Organization because they are given the real picture

of their job responsibilities at the time of joining. Attrition rate can be reduced if a right

person is hired for a right job. Realistic preview of the job responsibilities can be given to

the employment seekers by various methods like discussions, trial periods, internships

etc.

Clearly discuss whatis expected from the employee:

Before joining the organization, tell the candidate what is expected from him. Setting

wrong expectations or hiding expectations will result in early leaving of employees.

Discuss what the expectations of the employees are:

Ask employees what they

expect from the organization. Be realistic. If their requirements can be fulfilled only then

promise them. Or tell them before hand that their requirements cannot be fulfilled. Dont

show them an unrealistic picture. Culture fit: Try to judge individuals capability to

adapt to the organizations culture. A drastic change in the culture may give a culture

shock to the candidate. Referrals: According to the research, referred candidates stay



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longer with the organization. There is a fear of hampering the image and reputation of the

person who referred the candidate.

Manager Role in Retention

When asked about why employees leave, low salary comes out to be a common excuse.

However, research has shown that people join companies, but leave because of what their

managers do or dont do. It is seen that managers who respect and value employees

competency, pay attention to their aspirations, assure challenging work, value the quality

of work life and provided chances for learning have loyal and engaged employees.

Therefore, managers and team leaders

play an active and vital role in employee retention. Managers and team leaders can reduce

the attrition levels considerably by creating a motivating team culture and improving the

relationships with team members. This can be done in a following way:

Creating a Motivating Environment:

Team leaders who create motivating environments are likely to keep their team members

together for a longer period of time Retention does not necessarily have to come through

fun events such as parties, celebrations, team outings etc. They can also come through

serious events e.g. arranging a talk by the VP of Quality on career opportunities in the

field of quality. Employees who look forward to these events and are likely to remain

more engaged.

Standing up for the Team:

Team leaders are closest to their team members. While they need to ensure smooth

functioning of their teams by implementing management decisions, they also need to

educate their managers about the realities on the ground. When agents see the team leader

standing up for them, they will have one more reason to stay in the team. Providing

coaching :Everyone wants to be successful in his or her current job. however, not

everyone knows how. Therefore, one of the key responsibilities will beproviding



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coaching that is intended to improve the performance of employees. Managers often tend

to escape this role by just coaching their employees. However, coaching is followed by

monitoring performance and providing feedback on the same.

Delegation:

Many team leaders and managers feel that they are the only people who can do a

particular task or job. Therefore, they do not delegate their jobs as much as they should.

Delegation is a great way to develop competencies. Extra Responsibility: Giving extra

responsibility to employees is another way to get them engaged with the company.

However, just giving the extra responsibility does not help. The manager must spend

good time teaching the employees of how to manage responsibilities given to them so

that they dont feel over burdened. Focus on future career: Employees are always

concerned about their future career. A manager should focus on showing employees his

career ladder. If an employee sees that his current job offers a path towards their future

career aspirations, then they are likely to stay longer in the company. Therefore,

managers should play the role of career counselors as well.

How to Improve Employee Retention

People want to enjoy their work so make work fun and enjoyable. Understand that

employees need to balance life and work so offer flexible starting times and core hours.

Provide 360 feedback surveys and other questionnaires to foster open communication.

Consider allowing anonymous surveys occasionally so

employees will be more honest and candid with their opinions. Provide opportunities

within the company for career progression and cross-training. Offer attractive,

competitive benefits and 401(k)s.

window.google_render_ad; Organizations should target job applications for employees

who have characteristics that fit well with the organizational culture. Upon conducting an

interview, seek out traits, such as loyalty. Also, ask the potential employee what



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motivates them on the job. Having more information about the potential employees

expectations can help retain them, should they get hired into the company.

Rewards and Recognition Employees want to be recognized for a job well done. Rewards

and recognition respond to this need by validating performance and motivating

employees toward continuous improvement. Rewarding and recognizing people for

performance not only affects the person being recognized, but others in the organization

as well.

Through a rewards program, the entire organization can experience the commitment to

excellence. When the reward system is credible, rewards are meaningful; however, if the

reward system is broken, the opposite effect will occur. Employees may feel that their

performance is unrecognized and not valued, or that others in the organization are

rewarded for the wrong behaviors. Unrecognized and no valued performance can

contribute to turnover. Recognition for a job well done fills the employees' need to

receive positive, honest feedback for their efforts. Need for Rewards and Recognition

Recognition should be part of the organization's culture because it contributes to both

employee satisfaction and retention. Organizations can avoid employee turnover by

rewarding top performers. Rewards are one of the keys to avoiding turnover, especially if

they are immediate, appropriate, and personal. A Harvard University study concluded

that organizations can avoid the disruption caused by employee turnover by avoiding

hiring mistakes and selecting and retaining top performers.

One of the keys to avoiding turnover is to make rewards count. Rewards are to be

immediate, appropriate, and personal. Organizations may want to evaluate whether

getting a bonus at the end of the year is more or less rewarding than getting smaller, more

frequent payouts. Additionally, a personal note may mean more than a generic company

award. Employees should be asked for input on their most desirable form of recognition.

Use what employees say when it comes time to reward for performance (St. Amour,

2000). Designing a Rewards and Recognition Solution

In designing a rewards and recognition program, the following guidelines should be



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considered. Rewards should be visible to all members of the organization. Rewards

should be based on well-defined, credible standards that have been developed using

observable achievements. Rewards should have meaning and value for the recipient.

Rewards can be based on an event (achieving a designated goal) or based on a time frame

(performing well over a specific time period). Rewards that are spontaneous (sometimes

called on-the-spot awards) are also highly motivating and should also use a set criteria

and standard to maintain credibility and meaning. Rewards should be achievable and not

out of reach by employees.

Nonmonetary rewards, if used, should be valued by the individual. For example, an avid

camper might be given a 10-day pass to a campsite, or, if an individual enjoys physical

activity, that employee might be given a spa membership. The nonmonetary rewards arebest received when they are thoughtfully prepared and of highest quality. Professionalism

in presenting the reward is also interpreted as worthwhile recognition.

Rewards should be appropriate to the level of accomplishment received. A cash award of

$50 would be inappropriate for someone who just recommended a process that saved the

organization a million dollars. Determining the amount of money given is a delicate

matter of organizational debate in which organizational history, financial parameters, and

desired results are all factors. Recognition for a job well done can be just as valued and

appreciated as monetary awards.

Formal recognition program can be used with success. First Data Resources, a data

processing services company that employees more than 6,000 individuals in Omaha,

Nebraska, uses a formal recognition program (Adams, Mahaffey, and Rick, 2002).

Rewards are given on a monthly, quarterly, and yearly basis, and range from Nebraska

football tickets, gift certificates, pens, plaques, mugs, and other items. One of the most

popular awards at First Data is called the "Fat Cat Award" that consists of: $500 gift

check

Professional portrait of the employee Appreciation letter from the CEO and senior

management E-mails, phone calls, and notes from peers In addition to nonmonetary



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rewards, employees can be rewarded using money in numerous ways. Cash is a welcome

motivator and reward for improving performance, whether at formal meetings or on the

spot. Variable bonuses linked to performance are another popular reward strategy. Profit

sharing and pay-for-skills are monetary bonus plans that both motivate individuals and

improve goal achievement. Small acts of recognition are valuable for employee daily

Retention. Sometimes a personal note may mean more than a generic company award. In

one

survey, employees cited the following as meaningful rewards (Moss, 2000): Employee of

the month awards Years of service awards Bonus pay (above and beyond overtime) for

weekend work Invitations for technicians to technical shows and other industry events

Meaningful and Retention Rewards

What gives meaning to rewards and recognition? What makes them effective? First,

rewards and recognition should be based on a clear set of standards, with performance

verifiable or observable. The standards for the reward should also be achievable. If the

reward is based on an unachievable result, such as a production goal that is beyond

employees' power, then those employees will not be motivated. Meaningful rewards and

recognition that are achievable have the greatest impact.

Case Studies Employee Retention Best Practices in Keeping and Motivating Employees

By LisBeth Claus

Ask any CEO of an organization, What keeps you awake at night? and you will get a

response that relates to people management issues. a main concern for any organization

(whether small or large; private, public or nonprofit) is its capacity to attract, engage, and

retain the right people. The problem of retention is compounded by the predicted talent

shortage resulting from the upcoming retirement of the baby boomers, the scarcity of

talent with relevant work skills for todays jobs, the changing values about work and the

high cost of turnover. Research and human resource practices provide us with a number

of recommendations to increase employee retention.



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How Auditing Company X Works with Retaining Valuable Employees : Swedish Case

study

University essay from Hgskolan i Jnkping/IHH, EMM (Entrepreneurskap,

Marknadsfring, Management) Author: Josip Bogic; Elina Armanto; Maja Cassel; [2008]

Abstract: Today, neither employees nor employers seem to take for granted that a person

will stay with the same firm until retirement. Yet, keeping employees for longer periods

is an important challenge for firms. One industry where retention is interesting is the

auditing industry in Sweden, this because certain requirements are needed to become an

auditor. Firstly, the employee needs to have a Swedish university degree, including

specific courses within auditing/accounting. Furthermore, the person needs practical

experience for a specific period of time. Due to these statements the challenge of

retaining and motivating valuable employees is crucial for the auditing firms, which is

why we have chosen to do a case

study at Auditing Company X to see how they work with employee retention. We have

compared the findings to our chosen theory, which consist of four categories: the hiring

process, internal labor market and career, motivation and performance, and finally culture

and leader-ship. These four categories are initially based on Leigh Branham?s book: ?

Keeping the people who keep you in business: 24 ways to hang on to your most valuable

talent? (Bran-ham, 2001).In our conducted case study, at Auditing Company X, we have

been able to conclude that the firms retention practices are to a great extend in line with

the theoretical framework. There are some areas that need further attention from the

company, such as an individualized reward system and communication between

managers and employees. Even though there are some parts to work on the most

important aspects of retention, such as having a holistic and long-term orientation,

Auditing Company X seems to have incorporated this into their practices successfully.

Retention: An explanatory study of Swedish employees in the financial sector regarding

leadership style, remuneration and elements towards job satisfaction University essay

from Vxj universitet/Ekonomihgskolan Author: Sanna Paulsson; Linda Lindgren;

[2008] Abstract: Introduction: Companies today are forced to function in a world full of

change and complexity, and it is more important than ever to have the right employees in



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order to survive the surrounding competition. It is a fact that a too high turnover rate

affects companies in a negative way and retention strategies should therefore be high on

the agenda. When looking at this problem area we found that there may be actions and

tools that companies could use to come to terms with this problem. Research told us that

leadership, remuneration and elements like participation, feedback, autonomy, fairness,

responsibility,

development and work-atmosphere is important for job satisfaction and retention. Object:

The main objective is to increase the understanding regarding employees retention in

relation to leadership style, remuneration and elements such as participation, feedback,

autonomy, fairness, responsibility, development and work- atmosphere in the Swedish

financial Sector. Method: We wanted to investigate how employee of the Swedish

financial sector prefers to be retained, and how they consider and react to the chosen

areas. The survey has a quantitative approach with a web based questionnaire and

includes 129 respondents from banks, insurance and finance companies. The theoretical

framework includes leadership and leadership style, financial as well as non-financial

remuneration and research done in later years regarding participation, feedback,

autonomy, fairness, responsibility, development and work-atmosphere connected to

retention.

Conclusion: The result shows that regarding leadership the respondents prefer leadership

based on relations were they feel appreciation. Both appreciations from the closest

manager as well as the company management influences employee job satisfaction in a

positive way. More money was the most common reason for wanting to change jobs, and

when asking how the remuneration system should be designed, base pay with additional

bonus and benefits were preferred.

But also non financial factors such as participation, feedback, autonomy, fairness,

responsibility, development and work-atmosphere must be taken in consideration to

satisfy since they seem to increase employees?



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Abstract:

Background: retention management is a highly topical subject and an important dilemma

many organizations might face in the future, if not facing it already. We believe that the

leader plays a key role in employee retention and retention management. The concept of

retention management can both have a narrow, and a broader significance. Both parts of

its significance are generally included in this thesis. The background of the thesis present

a few articles that discuss issues that makes it important for the organization, and the

leaders, to work hard with retention management. The research is based on the leaders in

the Finnish case company Tradeka. Following key questions are intended to be answered:

What are the consequences between leaders actions and employees retention?

Which is the leaders role when it comes to retaining employees? Purpose statement:

The purpose of the thesis is to investigate and analyze how company leaders today can

retain their key employees.

How can the provision of key human resources develop a long-term

relationship that makes top employees stay in the company?

The study aims to establish the procedure leaders apply to retain employees. The purposeis to compare the qualitative study, made at the case company, with findings from the

thesis theoretical framework. Research method: The study is a qualitative, as well as a

theoretical study where empirical findings and theories has been compared. The intention

of investigating and using the Finnish company Tradeka Limited as a case company, is to

make the information from the theories more valid, and also the interest in how retention

management works in practice. Eleven qualitative interviews were conducted at Tradeka?

s financial department, both with supervisors and employees to get a broader view at the

phenomenon retention management.



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Results:-

Leaders and their skill in creating a culture of retention, has becoming a key in why

people stay and what usually drives them away from a company.

The leader has become the main factor in what motivates peoples decision to stay or

leave.

For organizations to keep its key employees their number one priority should be to look

at their management, because people leave managers and not companies.

Characteristics in a leader that are of importance, as the leader plays a key role in

retention management is: trust builder, esteem builder, communicator, talent developer

and coach, and talent finder.

The leaders relation to the employees plays a central role in retaining employees,

because employees need to feel involvement, and that their presence count.

When retention is a core value, good things happen for customers, employees, and thecompany because employees need to feel involvement, and that their presence count.



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QUESTIONNAIRE

1. Are you aware of all about HR Policies ?

Yes

No

2. Are you getting right amount of accurate information at right time ?

Yes

No

3. Do you meet your superiors expectations?

Yes

No

4. Whether your pay is on par with compare to employees handling similarresponsibilities or less ?

Yes

No

5. Are you satisfied with hygiene and cleanliness of company infrastructure?

Yes

No

6. Are you satisfied with Availability of system, storage facilities of company?

Highly

Satisfied

Less satisfied Not satisfied

7. Is your skills are recognized by superiors?

Yes

No

Do not know



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8. What you feel that superiors are taking efforts to motivate you?

Yes

No Do not know

9. Do you get manageable workload?

Yes

No

10. Are field worker able to get updates on internal activities?

Yes

No Cant say anything

11. Are superiors easily accessible?

Yes

No

12. Whetheryour complaints are resolved quickly?

Yes

No13. Are you satisfied with the working hours of the organization?

Yes

No

14. Whether roles & responsibilities are clearly defined by the Reporting heads?

Yes

No

15. What you feel that your superior's commitment towards job is good?



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Yes

No

16. What you feel about training and orientation programs of company?

Yes

No



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FINDINGS

It is found out that, 40% of respondents are aware of HR Policies and 60 % of

respondents are not aware of HR Policies.

It is found out that, 76% of respondents are getting right amount of accurate

information at right time and 24% of respondents are not getting right amount of

accurate information at right time.



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It is found out that, 82% of respondents are able to meet superiors expectation and

18% respondents are not able to meet superiors expectation.

It is found out that,57% of respondents feels that there pay is on par with compare to

employees handling similar responsibilities, and 39% of respondents feels that there

pay is less with compare to employees handling similar responsibilities.



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It is found out that, 70% of respondents are satisfied with hygiene and cleanliness of

company infrastructure and 30% of respondents are not satisfied with hygiene and

cleanliness of company infrastructure.

It is found out that, 40% of respondents are satisfied with Availability of system,

storage facilities of company and 60% of respondents are not satisfied with

Availability of system, storage facilities of company.



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It is found out that, 78% of respondents skills are recognized by superiors and 22% of

respondents skills are not recognized by superiors.

It is found out that, 56% of respondents feel that superiors are taking efforts to

motivate them and 44% of respondents feel that superiors are not taking efforts to

motivate them.



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It is found out that, 89% of respondents feel that the superiors are easily accessible

and 11% of respondents feel that the superiors are not easily accessible.

It is found out that, 51% of respondents feel that their complaints are resolved

quickly and 49% of respondents feel that their complaints are not resolved quickly.



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It is found that 90% of the respondents are satisfied and 10% are not satisfied with

the working hours of the organization

It is found that 65% respondents feel that roles & responsibilities are clearly defined

to them by the Reporting heads and 35% respondents do not feel it is clearly defined.



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It is found that 64% respondents feel that their superior's commitment towards job is

good 26% feel that they have not commitment toward job.

It is found that 50% respondents feel that training and orientation programs are

neither good and 50% feel it is not good.



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SUGGESTIONS

Employee should be provided with proper training.

Employee should be appreciated for good work.

Employee should be motivated to welcome the change.

If any changes are brought in to software or any module is added then proper training

should be given.



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Conclusion

Retention is an important concept that has been receiving considerable attention from

academicians, researchers and practicing HR managers. In its essence, Retentioncomprises important elements such as the need or content, search and choice of strategies,

goal-directed behavior, social comparison of rewards reinforcement, and performance-

satisfaction. The increasing attention paid towards Retention is justified because of

several reasons. Motivated employees come out with new ways of doing jobs. They are

quality oriented. They are more productive. Any technology needs motivated employees

to adopt it successfully. Several approaches to Retention are available. Early theories are

too simplistic in their approach towards Retention. For example, advocates of scientific

Management believe that money is the motivating factor. The Human Relations

Movement posits that social contacts will motivate workers. Mere knowledge about the

theories of Retention will not help manager their subordinates. They need to have certain

techniques that help them change the behavior of employees.One such technique is

reward. Reward, particularly money, is a motivator according to need-based and process

theories of Retention. For the behavioral scientists, however, money is not important as a

motivator. Whatever may be the arguments, it can be stated that money can influence

some people in certain circumstance. Being an outgrowth of Herzbergs, two factor

theory of Retention, job enrichment is considered to be a powerful motivator. An

enriched job has added responsibilities. The makes the job interesting and rewarding. Job

enlargement refers to adding a few more task

elements horizontally. Task variety helps motivate job holders. Job rotation involves

shifting an incumbent from one job to another.



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Recommendations

1. Develop an attractive employee value proposition.

An employee value proposition means that your company has something

attractive to offer that is perceived as valuable to an employee. as an employer,

you mustunderstand what makes your organization attractive to potential recruits

and current employees. Branding yourself as an employer of choice is not just a

slick set of marketing tactics. The best advocates for an employers brand are its

current employees. What messages do they send to others about their employer?

Are they honestly saying and believing that, This is a great place to work.

2. Create a total reward structure that includes more than compensation.

Every company should have all the normal compensation mechanisms common

to their type of employment. yet, total rewards packages go far beyond money.

While money might temporarily retain employees, it does not always equate with

engagement. People want a chance to make a difference and realize themselves.

That self-realization is multi-dimensional and different for each employee. The

total reward structure should include, in addition to compensation, support for

employees to attain their personal objectives aligned with the goals of their

organization.

3. Give feedback on employee performance on a regular basis.

Most managers and employees are not enamored with the performance appraisal

process in their organization. yet, an effective performance management process

serves many purposes. Ongoing performance feedback allows employees to better

know where they stand, gives them a formal means to provide input, indicates that

their managers pay attention to them and that their performance matters. This

feedback contributes to employee engagement and retention.

4. Be flexible in terms of work-life balance.



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Workers more and more value a balance between work and life. They want more

flexible ways to engage with their employer. To attract and retain workers with

different work and career expectations, organizations have to be more flexible in

structuring work and its expectations. It calls for a different managerial mindset

and practices that involve letting go of old ways of controlling workers time and

attendance in favor of result criteria such as output, productivity and quality.

6. Create a culture of engagement.

Employees have become more connected with others in the organization (and the broader

supply-and-customer chain) through project-based team work and process management

activities. Employees are shifting their loyalty to people, teams and projects and away

from company loyalty.It is organizations that create the culture and climate that allow people, processes and

projects to become fully connected and engaged with one another. Engaged employees

are more likely to stay with their employer.

7.Train managers to be effective.

Exit interviews consistently show that poor and bad management practices

greatly contribute to an employees decision to leave a company. It is imperativeto provide supervisors and managers with adequate tools to become effective

managers since we cannot assume that these competencies are innate.

Professor Patrick Connor, recently retired after teaching 25 years at the atkinson

Graduate school of Management, is famous among MBA students and alumni for his

Connorisms.He told them, your employees do not work for you, they work for

themselves. When I teach my students about managing organizations, I have them

reflect on what really matters to employees and what they are constantly asking of their

managers and their organizations.



71/72


72/72

BIBLOGRAPHY

BOOKS:

C. B. Memoria Personnel Management

Subha Rao Human resource management

C.R. Kothari

WEBSITES:

http://www.citehr.com/119470-employees-ebook.html

http://www.citehr.com/119207-human-resource-guide.html

http://www.citehr.com/downloads.php?query_ds=recruitment

http://www.citehr.com/downloads.php?query_ds=hrpolicies

http://www.citehr.com/downloads.php?query_ds=research+methodology

http://www.surveymonkey.com/s.aspx?sm=D4aI4ZVWg3ql1CfP9d1z1Q%3d

%3d

http://www.encyclopedia.com/searchresults.aspx?q=recruitment

http://www.encyclopedia.com/searchresults.aspx?q=employeesatisfaction

http://www.ask.com/web?qsrc=167&o=0&l=dir&q=recruitment

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http://www.citehr.com/119470-employees-ebook.htmlhttp://www.citehr.com/119207-human-resource-guide.htmlhttp://www.citehr.com/downloads.php?query_ds=recruitmenthttp://www.citehr.com/downloads.php?query_ds=research+methodologyhttp://www.surveymonkey.com/s.aspx?sm=D4aI4ZVWg3ql1CfP9d1z1Q%3D%3Dhttp://www.surveymonkey.com/s.aspx?sm=D4aI4ZVWg3ql1CfP9d1z1Q%3D%3Dhttp://www.encyclopedia.com/searchresults.aspx?q=recruitmenthttp://www.ask.com/web?qsrc=167&o=0&l=dir&q=recruitmenthttp://www.allinterview.com/showanswers/1515.htmlhttp://www.citehr.com/119470-employees-ebook.htmlhttp://www.citehr.com/119207-human-resource-guide.htmlhttp://www.citehr.com/downloads.php?query_ds=recruitmenthttp://www.citehr.com/downloads.php?query_ds=research+methodologyhttp://www.surveymonkey.com/s.aspx?sm=D4aI4ZVWg3ql1CfP9d1z1Q%3D%3Dhttp://www.surveymonkey.com/s.aspx?sm=D4aI4ZVWg3ql1CfP9d1z1Q%3D%3Dhttp://www.encyclopedia.com/searchresults.aspx?q=recruitmenthttp://www.ask.com/web?qsrc=167&o=0&l=dir&q=recruitmenthttp://www.allinterview.com/showanswers/1515.html

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