RHRS Main Profile

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A STUDY ON EMPLOYEES RETENTION STRATEGIED ADOPTED AT RELIANCE HR

SERVICES PVT LTD

S.No CONTENTS PAGE NO

1 Chapter I:

1.1 Abstract

1.2 Industry Profile

1.3 Company Profile

1.4 Statement of problem

1.5 Need for the study

1.6 Objective

1.7 Scope of the study

2 Chapter II:

2.1 Review of Literature

3 Chapter III:

3.1 Research Methodology

3.2 Instrument for data collection

3.3 Sampling method and sampling size

4 Chapter IV:

4.1 Data Analysis & Interpretation

5 Chapter v:

5.1 Findings

5.2 Suggestions and recommendation

5.3 Conclusion

6 Appendices:

Bibliography

Questionnaire


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Abstract

Employers have a need to keep employees from leaving and going to work for other companies.

This is true because of the great costs associated with hiring and re-training new employees. The best way

to retain employees is by providing them with job satisfaction in their careers. The saying, good help is

hard to find, is even truer these days than ever before because the job market is becoming increasingly

tight. Employers are fighting to get talented employees in order to maintain a prosperous business. There

is a straight line between employee satisfaction and customer satisfaction. That todays employees pose a

complete new set of challenges, especially when businesses are forced to confront one of the tightest

labour markets in decades. Therefore, it is getting more difficult to retain employees, as the pool of talent

is becoming more-and more tapped-out. The research, which focuses primarily on employee retention

through job satisfaction, supports this contention. Employees that are satisfied and happy in with their

jobs are more dedicated to doing a good job and taking care of customers that sustain the operation Job

satisfaction is something that working people seek and a key element of employee retention. Every person

will have his or her own definition of what it means to be satisfied with a job. Studies show that

employees who are satisfied with their jobs are more productive, creative and be more likely to be

retained by the company the second goal of this research is to help readers find his or her definition of job

satisfaction. There is a definite need to analyze the elements of employee retention through job

satisfaction. Considering the positive effects on the economy that can be derived from satisfied-happy

employees.


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INDUSTRY PROFILE

Indian Telecommunication Industry is a one of the fastest growing telecom markets in the world.

Indian telecom sector, like any other industrial sector in the country, has gone through many phases of

growth and diversification.

Starting from telegraphic and telephonic systems in the 19th century, the field of telephonic

communication has expanded to make use of advanced technologies like GSM, CDMA, and WLL to the

great 3G technology in mobile phones. Day by day both the public players and the private players are

putting in their resources and efforts to improve the telecommunication technology so as to give the

maximum to their customers.

The reason that has tremendously helped the telecom industry is the regulatory changes and

reforms that have been pushed for last 10 years by successive Indian governments. Telephone, whether

fixed landline or mobile, is an essential necessity for the people of India. This changing phase was

possible with the economic development that followed the process of structuring the economy in the

capitalistic pattern. Removal of restrictions on foreign capital investment and industrial de-licensing

resulted in fast growth of this sector.

At present the countrys telecom industry has achieved a growth rate of 14 percent. The telecom

reforms have allowed the foreign telecommunication companies to enter Indian market, which has still

got huge potential. International telecom companies like Vodafone have made entry into market in a big

way.


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EVOLUTION OF THE INDUSTRY-IMPORTANT MILESTONES

History of Indian Telecommunications

1851 First operational land lines were laid by the government near Calcutta (seat of British

power)

1881 Telephone service introduced in India

1883 Merger with the postal system

1923 Formation of Indian Radio Telegraph Company (IRT)

1932 Merger of ETC and IRT into the Indian Radio and Cable Communication

Company (IRCC)

1947 Nationalization of all foreign telecommunication companies to form the

Posts, Telephone and Telegraph (PTT), a monopoly run by the

Government's Ministry of Communications

1985 Department of Telecommunications (DOT) established, an exclusive

provider of domestic and long-distance service that would be its own

regulator (separate from the postal system)

1986 Conversion of DOT into two wholly government-owned companies: the

Videsh Sanchar Nigam Limited (VSNL) for international telecommunications and Mahanagar

Telephone Nigam Limited (MTNL) for service in metropolitan areas.

1997 Telecom Regulatory Authority of India created.

1999 Cellular Services are launched in India. New National Telecom Policy is adopted.

2000 DOT (Desk operating Telephone) becomes a corporation, BSNL


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KEY PLAYERS IN THE INDIAN TELECOM INDUSTRY

The Telecom Industry of India has registered manifold growth in the recent years. Personalized

telecom access is essential of life for increasing number of the people. The sector offers unlimited

prospects when we consider future growth. Both public players and private are enhancing their

technologies and taking the telecom industry to a much higher growth state. Not only service provides but

also handset manufacturers are contributing significantly to the industry and economy of India.

Reliance Communication Limited

Bharti Airtel Limited

Vodafone

Tata Tele Services

BSNL

MTNL

VSNL

Idea Cellular Ltd.

TELECOM POLICY ENVIRONMENT

Indian telecommunications today benefits from among the most enlightened regulation in the

region, and arguably in the world. The sector, sometimes considered the poster -boy for economic

reforms, has been among the chief beneficiaries of the post-1991 liberalization. Unlike electricity, for

example, where reforms have been stalled, telecommunications has generally been seen as removed from

mass concerns, and thus less subject to electoral calculations. Market oriented reforms have also been


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facilitated by lobbying from Indias booming technology sector, whose continued success of course

depends on the quality of communications infrastructure.

Despite several hiccups along the way, the Telecom Regulatory Authority of India (TRAI), the

independent regulator, has earned a reputation for transparency and competence. With the recent

resolution of a major dispute between cellular and fixed operators (see below), Indian

telecommunications, already among the most competitive markets in the world, appears set to continue

growing rapidly. While telecom liberalization is usually associated with the post-1991 era, the seeds of

reform were actually planted in the 1980s. At that time, Rajiv Gandhi proclaimed his intention o f leading

India into the 21st century, and carved the Department of Telecommunications (DOT) out of the

Department of Posts and Telegraph. For a time he also even considered corporatizing the DOT, before

succumbing to union pressure. In a compromise, Gandhi created two DOT-owned corporations:

Mahanagar Telephone Nigam Limited (MTNL), to serve Delhi and Bombay, and Videsh Sanchar Nigam

Limited (VSNL), to operate international telecom services. He also introduced private capital into the

manufacturing of telecommunications equipment, which had previously been a DOT monopoly. These

and other reforms were limited by the unstable coalition politics of the late 1980s. It was not until the

early 1990s, when the political situation stabilized, and with the general momentum for economic

reforms, that telecommunications liberalization really took off. In 1994, the government released its

National

Telecommunications Policy (NTP-94), which allowed private fixed operators to take part in the

Indian market for the first time (cellular operators had been allowed into the four largest metropolitan

centers in 1992). Under the governments new policy, India was divided into 20 circles roughly

corresponding to state boundaries, each of which would contain two fixed operators (including the

incumbent), and two mobile operators. As ground-breaking as NTP-94 was, its implementation was

unfortunately marred by regulatory uncertainty and over-bidding. A number of operators were unable to


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live up to their profligate bids and, confronted with far less lucrative networks than they had supposed,

pulled out of the country. As a result, competition in Indias telecom sector did not really become a reality

until 1999. At that time the governments New Telecommunications Policy (NTP -99) switched from a

fixed fee license to a revenue sharing regime of approximately 15%. This figure has subsequently been

lowered (to 10%-12%), and is expected to be reduced even further over the coming years. Still, India

continues to derive substantial revenue from license fees ($800 million in 2001-2002), leading some

critics to suggest that the government has abrogated its responsibilities as a regulator to those as a seller.

Another, perhaps even more significant, problem with Indias initial attempts to int roduce competition

was the lack of regulatory clarity. Private operators complained that the licensor the DOT was also the

incumbent operator. The many stringent conditions attached to licenses were thus seen by many as the

DOTs attempt to limit compe tition. It was in response to such concerns that the Government in 1997 set

up the Telecom Regulatory Authority of India (TRAI), the Nations first independent telecom regulator.

Over the years, TRAI has earned a growing reputation for independence, Transparency and an increasing

level of competence. Early on, however, the regulator was beleaguered on all fronts. It had to contend

with political interference, the incumbents many challenges to its authority, and accusations of ineptitude

by Private players. Throughout the late 1990s, TRAIs authority was steadily whittled away in a number

of cases, when the courts repeatedly held that regulatory power lay with the central government. It was

not until 2000, with the passing of the TRAI Amendment Act that the regulatory body really came into its

own. Coming just a year after NTP-99, the act marks something of a watershed moment in the history of

India telecom liberalization. It set the stage for several key events that have enabled the vigorous

competition witnessed today.


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MAJOR MARKET TRENDS

The telecoms trends in India will have a great impact on everything from the humble PC, internet,

broadband (both wireless and fixed), and cable, handset features, talking SMS, IPTV, soft switches, and

managed services to the local manufacturing and supply chain. This report discusses key trends in the

Indian telecom industry, their drivers and the major impacts of such trends affecting mobile operators,

infrastructure and handset vendors.

HIGHER ACCEPTANCE FOR WIRELESS SERVICES

Indian customers are embracing mobile technology in a big way (an average of four million

subscribers added every month for the past six months itself). They prefer wireless services compared to

wire-line services, which is evident from the fact that while the wireless subscriber base has increased at

75 percent CAGR from 2001 to 2006, the wire-line subscriber base growth rate is negligible during the

same period. In fact, many customers are returning their wire-line phones to their service providers as

mobile provides a more attractive and competitive solution. The main drivers for this trend are quick

service delivery for mobile connections, affordable pricing plans in the form of pre-paid cards and

increased purchasing power among the 18 to 40 years age group as well as sizeable middle class a

prime market for this service.

Some of the positive impacts of this trend are as follows. According to a study, 18 percent of

mobile users are willing to change their handsets every year to newer models with more features, which is

good news for the handset vendors.

The other impact is that while the operators have only limited options to generate additional

revenues through value-added services from wire-line services, the mobile operators have numerous

options to generate non-voice revenues from their customers.


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Some examples of value-added services are ring tones download, coloured ring back tones,

talking SMS, mobisodes (a brief video Programme episode designed for mobile phone viewing) etc.

Moreover, there exists great opportunity for content developers to develop applications suitable for

mobile users like mobile gaming, location based services etc.

On the negative side, there is an increased threat of virus spread through mobile data

connections and Bluetooth technology in mobile phones, making them unusable at times. This is good

news for anti-virus solution providers, who will gain from this trend.

Brief introduction about the telecomm companies that took part in survey:

BHARTI (Airtel):

Established in 1985, is the top most player in the telecom sector. Many firsts and innovations

come to its credit. It is a Flagship Company of Bharti Enterprises. It has created global brands and diverse

business portfolio. Airtel is named as Bharti Airtel Limited, Indias largest integrated and first private

telecom service provider with expansion in 23 telecom circles. It has an optical base of around 23,000 km

across the country with approximately 1,500 nodes and existence in around 200 locations. Its customer

base is approximately 6.45 million, which is distributed as 5.86 million mobile and 588,000 fixed line

customers.

TATA TELESERVICES:

It is an umbrella brand of Tata Group, which worths ar ound $ 12 billion. It is one of the other 93

companies, constituting in 200,000 employees and 2.3 million share holders. They mainly provide fixed

line services, using CDMA technology across six circles. It has a base of approximately 800,000


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customers. Company is planning to expand by off services in 11 new circles, where they have already

started their functions. 1.3c

VODAFONE (Hutch)

Vodafone started its operations in India in late 1992, in collaboration with local partners in

Mumbai. It is on the verge of growth and expansion. By the end of June 2006 it had over 17.6 million

customers in its account. Vodafone Essar is the Indian subsidiary of Vodafone groups, and is one of the

most respected Telecom Company in terms of mobile services in the country. The Essar groups

Vodafones principal partner in India.


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COMPANY PROFILE

Reliance HR Services:

Reliance HR Services (RHRS), a human resources company is a sister company of Reliance Anil

Dhirubhai Ambani Group (ADAG). Aim of its establishment is to recruit half a million people for the

group in the coming next four years. It started its operations by initially recruiting for Reliance telecomm.

These recruitments were initially for Reliance Communications, Reliance Web stores. Reliance Capital,

Reliance Consumer Finance and Reliance Capital are those for whom they have started up to a little

extent. And now is going to entre for Reliance Life Insurance and Reliance Energy. Approximately 90

percent of the employees recruited are on sales function, while rest 10 percent are off sales employees,

which will be called up as on the back-end and customer services employees. Mr.Amitava Ghosh is the

CEO of this flagship company. Data says that approximately 20, 000 employees are on the payrolls of

company, contributing towards various ADAG companies. Out that some 2000 employees are working

under Chennai office.

Some of the other features of its services will be:

To offer consultancy services, including compensation surveys and feedback reports.

To recruit sizeable number of people.

Recruit fresher, who will be paid in between 7,000 to 12,000 a month, based on cost of living in

the city.

Plan for a series of job fairs in the country. Its pilot location is Guwahati.


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Services provided by RHRS are:

Sourcing of Candidate

On boarding the candidate

Pay roll management of employees

Employee Engagement

Statutory and Compliance

Exit Formalities

PF withdrawal / Transfer

Full & Final Settlement

Future Plans:

By 2013, RHRS is planning to evolve as an end-to-end HR Outsourcing provider and an HR

consultant. Recent progress is to offer HR out sourcing services. And the company is all set wet to enter

into that field with fool proof preparation. RHRS has also formulated a five year agenda for its

forthcoming financial years to expand and become a global outsourcing and consultancy organization and

the company is working very consistently for this target.

RHRS recruits employees for Reliance Communications mainly for the following business areas:-

Broad Band (BB).

Enterprise Wireless Groups (EWG).

Direct Sales Team (DST).

Reliance Web Stores Ltd. (RWSL).


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Reliance Anil Dhirubhai Ambani groups business is divided into the following areas:

Infocomm Group Companies.

Infocomm Business.

Reliance Energy Companies.

Ad labs.

Reliance Capital Asset Management Ltd (RCAM).

Reliance General Insurance Company (RGIC).

Reliance Capital Ltd (RCL).

Reliance Life Insurance Company Ltd (RLIC).

Reliance HR Services Ltd (RHRS).

INFOCOMM GROUP COMPANIES

Reliance Communications Pvt Ltd. (RCPL).

Reliance Communications Infrastructure Ltd.

Reliance Digital World Pvt. Ltd. (RDWL).

Reliance Web Stores Pvt. Ltd. (RWSL).

INFOCOMM BUSINESS ASOCIATED COMPANIES

Reliance Telecom Ltd.

Reliance Next-Link Pvt. Ltd.

Reliance Info Engineering Pvt. Ltd.

Gateway Systems (India) Ltd.


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Reliance Info stream Pvt. Ltd.

Reliance Info Infra Pvt. Ltd.

Synergy Entrepreneur Solutions.

Fines Innovation Pvt. Ltd.

RELIANCE ENERGY COMPANIES

Reliance Energy Ltd. (REL).

Reliance Energy Generation Ltd. (REGL).

BSES Rajdhani Power Ltd. (BRPL).

BSES Yamuna Power Ltd. (BYPL).

Yashavi Communication Pvt. Ltd. (YCPL).

Reliance Energy Automation Ltd. (REAP).

Reliance Energy Constructors Pvt. Ltd. (RECP).

Reliance Energy Engineers Pvt. Ltd. (REEP).

Reliance Energy Management Services (REMS).

Reliance Energy Transmission (RETM).

Reliance Energy Trade Pvt. (RETP)


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COMPANY HISTORY

Reliance Infocomm is the outcome of late Dhirubhai Ambanis dream of bringing about a digital

revolution in India that will bring to every Indians doorstep an affordable means of information and

communication.

Make the tools of infocomm available to people at an affordable cost. They will overcome the

handicaps of illiteracy and lack of mobility, was how Dhirubha i, as he was fondly called, spelt out

Reliance Infocomms mission in late 1999. He firmly believed the country could use information and

communication technology to overcome its backwardness and under development. It was with this belief

that Reliance Infocomm began laying its 60,000 route kilometers of pan-India fiber optic backbone

in1999. The backbone was commissioned on28th December 2002, the auspicious occasion of Dhirubhais

70 th birth anniversary, first since his sad demise on 6 th July 2002. Reliance Infocomms network is a high -

capacity, integrated (wireless and wire line), and convergent (voice, data and video) digital network. The

network is designed to deliver services and applications that will change the way we Indians live. It will

harbinger a New India.

VISION

We will leverage our strengths in executing complex global -scale projects to make leading edge

information and communication services affordable by all individual consumers and businesses in India.

We will offer unparalleled value to create customer delight and enhance business productivity. We will

also generate value for our capabilities beyond Indian borders while enabling millions of Indias

knowledge workers to deliver their services globally.


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MISSION

We will create an integrated infrastructure with state of the art digital technology to provide

innovative, cost effective and world class convergent services to our customers. We will be Indias

defining service provider and the most preferred one. We will achieve dominant market share in India by

2005 and will rank among the worlds top carriers by 2007.

Our transparent HR policies and robust processes are driven by a single overarching objective: To

attract, nurture, grow and retain the best leadership talent in every sector and industry is which we

operate.

Our main aim is to create a team of world beaters that is:

Committed to excellence in quality.

Focused on creation and enhancement of stakeholder value.

Responsive to evolving business needs and challenges.

Dedicated to uphold the core values of the group.

OUR PROMISE

In order to achieve our objective, we offer our people

Growth opportunities to expand leadership capabilities.

True meritocracy and freedom to choose career paths.

Opportunities to develop and hone leadership and functional capabilities.

An entrepreneurial environment where people can pursue their dreams.


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Competitive compensation.

In addition, we follow a well defined Rewards & Recognitions Programme that periodically

identifies exceptional individual and team achievers among the various business functions and verticals in

the Group.

OUR EXPECTATIONS

At Reliance Anil Dhirubhai Ambani Group, we encourage our colleagues to take leadership, at all

levels of the organization, and participate in accelerating growth of our businesses to build a formidable

enterprise.

Always keep the customers needs in mind and constantly innovate.

Execute flawlessly and with speed.

Sustain and strengthen the groups spi rit of entrepreneurship taking ownership and

accountability for their actions.

Leverage synergies to learn and build on the diverse experiences and skill sets of our various

businesses and teams.

Create a true meritocracy with a pervasive commitment to transparent systems and processes.

RELIANCE ANIL DHIRUBHAI AMBANI GROUP

Reliance Anil Dhirubhai Ambani Group, an offshoot of the Reliance Group founded by Shri.

Dhirubhai H. Ambani (1932 2002), ranks among Indias top three private sectors business interests that

range from telecommunications (Reliance Communications Ventures Ltd., to financial services (Reliance

Capital Ltd.) to the generation and distribution of power (Reliance Energy Ltd.)


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Reliance ADA Groups flagship company, Reliance Communications, is Indias largest private

sector information and Communications Company with over 20 million subscribers. The company has

established a pan-India, high capacity, integrated (wireless and wire line), convergent (voice, data and

video) digital network, to offer services spanning the entire infocomm value chain.

Other major group constituents Reliance Capital, Reliance Energy are widely acknowledged

as the market leaders in their respective areas of operation

JOB PROFILE

RELIANCE INFOCOMM

There were totally four positions in Reliance Infocomm for which continuous recruitment was done

due to huge business expansion. Reliance Infocomm consist of four different departments for which the

recruitment was done.

Postpaid (Selling of postpaid cards)

Prepaid (Selling of prepaid cards)

Broad Band (Selling Broad Band Connections as well as getting building permissions)

Corporate Wireless Group (Selling Corporate Connections)

According to me Reliance Infocomm gives a very good compensation to their employees in the

marketing department. Even when the basic is low when compared to their competitors such as Airtel,

Tata Indicom, & Vodafone. The Incentives given by Reliance Infocomm is very attractive, there were


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guys who received salary of Rs. 20,000 every month, and this was a very good supporting factor for me to

convince the candidates and also the mobile phone which was given is an attractive one.


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STATEMENT OF THE PROBLEM

Manpower is the main resource of the company; therefore Employee Retention is the key to

organization success. Hence the present study analyzes the broad reasons for attrition and also suggests

significant measures to control it in the organization.

NEED FOR STUDY

The main need for the study is to focus on the employee turnover, which influence the

productivity of the company in a negative way. This study will help the management to re-structure their

retention strategies in a better way.

OBJECTIVE

Primary objective

To study the rate of employee turnover and the retention strategies in organization.

Secondary objective

To assess the job satisfaction towards Reliance HR Services Pvt Ltd.

To study about cost associated with high turnover in Reliance HR Services Pvt Ltd.

To find ways to increase rate of retaining employees at Reliance HR Services Pvt

Ltd.

SCOPE OF THE STUDY

The main scope of the study is to retain the employees.

It helps to modify their existing retention strategy.

The study would help in great way to improve their work environment.


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ASSUMPTIONS

The following are assumptions upon which this study is based

Employee retention and job satisfaction are linked.

Identification of employee perceptions about job satisfaction will offer a basis For

identifying recommendations for practice, which will contribute, to job? Satisfaction.

The use of a questionnaire to determine employee satisfaction perceptions Will result in

honest and useful feedback for purpose of analysis.


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REVIEW OF LITERATURE

Importance of Employee Satisfaction

According to Marc Drizin, an employee loyalty specialist, Employees are assets with feet.

Theyre the only resource companies have that make a conscious decision to return the next day (Modic,

2005). A 2003 J.D. Power and Associates survey concluded that there is another customer builders need

to focus on satisfying besides the obvious Customers. Builders need to focus on the rank -and-file

managers and employees who Work for them (Kash, 2003).The effects employee satisf action has on an

organizations business are numerous. Some of the most relevant and profitable effects are described

below. Studies show that businesses that excel in employee satisfaction issues reduce Turnover by 50%

from the norm, increase customer satisfaction to an average of 95%, lower labour cost by 12% and lift

pre-tax margins by an average of 4% (Carpitella, 2003). Not only are employee turnover, customer

satisfaction, labour costs, and pre-tax Margins improved by addressing employee satisfaction, but

customers, products, and the Company itself are also positively affected. Profit and growth are stimulated

directly (and primarily) by customer loyalty. Customer loyalty is a direct consequence of customer

satisfaction. Customer Satisfaction is heavily influenced by customer perceptions of the value of services

they receive. Value is created by satisfied, loyal and productive employees. Employees who feel a sense

of teamwork and common purpose, a strong Commitment to communication, and managerial

empow erment are most able, and Willing, to deliver the results that customers expect (Employee

Satisfaction, 2005) Don Wainwright, president of Wainwright Industries, a winner of the Malcolm

Baldrige National Quality Award, made the point in 2001 that Jack W elch uses only Three indicators to

run giant General Electric. Hell tell you that the most effective and only numbers he needs to know are,

in order of importance: employee satisfaction, Customer satisfaction and cash flow (Employee

Satisfaction, 2005) . Studies completed in 1999 by the Hay Group for Fortune magazine have shown

That evens the most admired companies Intel, Coca-Cola, and GE to name a few each Embrace the


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same basic company cultural values: teamwork, customer focus, innovation, And fair treatment of

employees (Clark, 2001).

Turnover and Absenteeism

Most contractors feel that employee turnover and employee satisfaction are closely related. The

more satisfied an employee is, the less turnover and absenteeism Occurs (The High -Performing

Contractor, 2004; Maloney & McFillen, 1986). Studies have found that excessive employee turnover is

usually the result of people that like what they do, but not where they do it (Employee Satisfaction,

2005). In regards to Turnover and absenteeism, The Business Roundtable (1982) reported that the

construction Industry has been tagged as the sector of the U.S. economy with the worst productivity

Performance. The Business Roundtable goes on to say: Construction industry leaders agree that

absenteeism and turnover contribute significantly to the decline [in productivity]. Turnover rates of more

than 200%

Annually, not including reduction in the work force, have been reported. Concurrently,

absenteeism has been observed as high as 20% (1982). According to the same publication, when workers

were asked the reasons for their Absenteeism and turnover, the four main reasons cited were:

Excessive rework

Poor craft supervision

Poor overall management

Relationship with the boss

The publication goes on to reveal that employees consciously missed days of Work and routinely quit

jobs because employees were unable to work well with Leaders/managers/supervisors. The study

continues by disclosing the following:

Job dissatisfaction tended to influence absentee ism rates more than turnover rates.

The quality of supervision and understanding of company goals were the most

Important job-satisfaction factors affecting absenteeism.


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Considering quitting was the most accurate indicator of job dissatisfaction.

Exp erienced workers were more quality conscious than less experienced workers.

As work experience increased, turnover rates decreased.

As work experience increased, lack of craft supervision and poor overall job

Management became more important reasons for absenteeism. The older and more experienced

employees exhibited a lower rate in turnover but A higher rate in absenteeism, indicating that jobs that

do not challenge or provide Satisfaction for a highly skilled, experienced craftsman will produce

absenteeism, and That younger, less experienced workers seem to change jobs rather than cope with an

Unpleasant situation (The Business Roundtable, 1982). According to Ed Schmitt, Todays workers

have different expectations from the Companies they work for and are much less hesitant to leave one job

for another if they Dont feel those expectations are being met. Job security is less important to todays

Worker (Schmitt, 2002). It is expensive to lose a good employee and perhaps a blessing to lose a bad

one. It may be tough to assign an exact cost for employee turnover. According to the American

Management Association, the cost of replacing an employee is approximately

30% of the employees annual salary (The key to employee retention, 2005). Four Basic hidd en costs

make up the approximated 30% turnover cost: first, the cost of Termination; second, the cost of hiring and

training a replacement; third, the vacancy cost until the job is filled; and fourth the cost of the loss of

productivity with a new hires (Schmitt, 2001).

Valued Employees

An employee satisfaction study conducted by Big Builder in 2003 reported that the responses in

the study point to a clear need for giving employees a greater role in Business decisions. There needs to

be a culture of participation in the organization, which in turn creates higher retention (Leibowitz, 2003)

When employees do participate in the organization they feel more valuable, especially when they see the

results stemming from their actions (Calder & Douglas, 1999). When management creates

Opportunities for employees to add value to the organization in ways other than those that fit the job


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description, it is unclear how to measure all the positive results that will occur. In the United States,

average one new idea a year per every five employees. Japan, [who uses empowerment principles],

averages five new ideas a year per Every employeeWainwright Industries, a Malcolm Baldrige

National Quality Award winner, averages 60 ideas per employee per year...What has this done for Them

Employees benefit directly from their own good ideas in the form of increased profit sharing and

improved workplace safety. Over a three-year period, the number of recordable accidents decreased 72%

and annual workers Compensation costs fell 8 6%. Wainwright Industries has high rates of attendance

(Greater than 99% for the all-salaried workforce) and turnover rates that are lower than industry and local

averages. From an operations standpoint, these ideas have Helped Wainwright to cut its lead time for

making one of its principal Productsto 15 minutes, as compared with 8.7 days [previously], and to

reduce Defect rates tenfold. For its customers, the benefits translated into an on-time Delivery rate of

nearly 100%, as compared with 75% previously, and a 35% Reduction in product cost. Employees see

more problems on the job and in the shop and office than Managers will be aware of or see. High-

performing contractors will implement Ways to involve employees in solving and preventing these

problems. (The High - Performing Contractor, 2004) Enabling employees to freely contribute in an

organization can have a substantial Positive effect on a company. Keeping employees informed and

getting them involved in Decisions that affect their work build trust and feelings of self-worth. Involving

Employees helps employees feel that they are trusted and needed, which increases their Contributions and

production. Jack Welch, a retired CEO of GE once stated, A company Can boost productivity by

restructuring, removing bureaucracy and downsizing, but it cannot sustain high productivity without

cultural change, without totally involving the Individual who is closest to the work and therefore knows it

better than those who Manage it (The High -Performing Contractor, 2004).

Training and Education

In a 1999 survey, the Institute of Profit Advisors found that providing training, Rather than

terminating employees, was a major key to improving profitability. Companies can either invest in


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providing mentoring, training and growth opportunities Now or pay the costs of turnover later (Clark,

2001). Most managers look at training and development as a cost. What they dont see or why they dont

weigh training and development heavily enough is unclear. According to Mark Drizin, an employee

loyalty specialist, training not only equips employees to Perform their jobs in a satisfactory manner, but it

also is critical in terms of employees Feeling good about working for their organization (McClenah en,

2003). Drizin continues By pointing out that one of the most common drivers in establishing employee

loyalty is Care and concern for employees and opportunities for growth which are often listed as the First

or second most significant drivers. Care and concern for employees can be shown

Through employee training. As employees are trained and become more specialized and

educated, opportunities for growth on a personal level as well as within the organization, Will surface. In

fact, the 1999 Emergent Work force Study performed by Interim Services, Inc., found that The new breed

of employee, the Emergent worker makes up the top 22% of the workforce today and does not like to

follow rules or organization charts, but Thrives on gaining new experiences (henc e training) (Clark,

2001). A survey by the Hay Group reported that 61% of employees committed to their Current employers

found satisfaction in learning new skills. From those employees who were not committed to their current

employers, 4.7% said that better training is a major Factor in convincing employees to continue to stay

with their current employer (Clark, 2001). To emphasize the importance of training, William Lareau,

author of American Samurai stated the following:

Workers in Japan and many European countries are smarter than U.S. workers In some cases

two to three times smarter. But, [Lareau] acknowledges that this has nothing to do with individual

intelligence. They are two to three time smarter because they receive two to three times more training!

(Hansen, 2004)

Leaders/Supervisors/Management

The Daniels Group, an executive search firm, conducted a national workforce Retention survey in

2003. The results included evidence that management played a large Roll in employee satisfaction. When


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employees of building companies were asked if a Managers leadership abilities impact their interest in

remaining with the organization, 86% of the respondents either agreed or strongly agreed. The study also

asked employees about their managers work st andards, communication style, and ability to achieve goals

In the face of adversity. The responses to these questions were overwhelmingly positive with an average

of about 72% in the affirmative, meaning that the style and abilities of Management have a direct effect

on an employees interest in remaining with an Organization (Joyce, 2003). The results of a study

performed in 1982 reported that three of the top five Reasons employees were absent or left an

organization were because

(a) Poor craft Supervision,

(b) Poor overall management, and

(c) Poor relationships with boss.

All of these were attributable to poor management and supervision. The same study also concluded that as

work experience increased, poor craft supervision and overall job Management became a more important

reason for absenteeism, which is a direct result of Employee dissatisfaction. Supervisors and management

can play a large role in an Organization, more than what the job entails (The Business Roundtable,

1982). Studies by NIOSH, Boeing, and the Reliability Group, an organizational Performance consulting

firm, have all identified the impact of employee satisfaction on the level of safety in a workplace. Data

collected by the Reliability Group indicated that the number one predictor of a safe versus an unsafe

workplace is employee cheerfulness and satisfaction. And a key factor in determining employee

satisfaction Supervisors (Hansen, 2004) To support the finding that supervisors are a determining factor

in employee Satisfaction, 64% of committed employees surveyed by the Hay Group reported that they

Found satisfaction with coaching and feedback. Coincidentally, coaching and feedback is one of the top

four factors that lead to employee satisfaction (Clark, 2001).

Safety and Quality Study


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In 2004, the Centre for Quality and Productivity Improvement at the University of Wisconsin-

Madison and the Department of Industrial Engineering at the University of Wisconsin-Madison

conducted a study measuring safety and quality and the forces that drive them. Both safety and quality

were found to be controlled by employees (Hansen, 2004). Some of the top characteristics that were

found to create a safe workplace and improve quality included (Loushine, Hoonakker, Carayon, & Smith,

2004):

Employee i nvolvement

Management commitment

Training and education

Communication between managers and employees

The study also found the benefits of having a safer workplace and a higher quality Product. Three

of the top benefits included (Loushine et al., 2004):

improved employee job satisfaction

Lower employee turnover

reduced rework

It is interesting to note that according to the study, the top characteristics that affected quality and safety

were employee involvement, management commitment, and Training and education. Also, these top

characteristics are the same characteristics that Affect employee satisfaction the most.

Keys to Retain employee

The literature clearly indicated that there are six keys to retaining personnel. They are Recruiting,

communications, training, job satisfaction, pay, and benefits.

Recruiting

The effort to retain the best personnel begins with recruiting. Attracting and retaining the best


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People are not two different things, but are the same thing. Both require creating and maintaining a

Positive reputation, internally as well as externally. Employers must be honest with the recruit about the

Beliefs, expectations, organizational culture, demands, and opportunities within the organization. By

Representing the organization realistically, a department will attract those who will be content working

within the culture (Marx, 1995). Denton (1992, p.47) follows this up by stating that, the better the Match

between recruits and the organization the more likely you are to retain them. Lynn (1997) Believes that

you must take time during the hiring process to make wise decisions. The employer must be candid about

the working conditions, responsibilities, opportunities and other details to reduce the Chances of making

hiring mistakes. Taylor and Cosenza (1997) strengthen this thought by noting that it is imperative that

companies give prospective employees a true picture of the organization, if they hope to match the

personality type with the climate and culture of the organization. The literature was clear in pointing out

that if departments want to increase retention they must start with a solid recruiting process.

Communications

Carney (1998) believes that the key to employee retention is quite simple: communicate,

Communicate, communicate. Communication with the employees must begin early on in the relationship.

He believes that the imprinting period of a new employee is probably less than two weeks. Employers

must engage the employee early on by sharing how important the job they do is. Lynn (1997) follows this

up by stating that early on an atmosphere of fairness and openness must be created by clearly laying out

company policies. Taylor and Consenza (1997) indicate that it is important to communicate the values of

the Organization to its employees in order to increase their level of consent, participation, and motivation.

Lynn (1997) echoes this thought by pointing out that the vision of the organization must be shared with

The employee as well as the importance the employees play in helping fulfils it. Lack of communication

may result in gaps between managements perceptions of quality Employment and the employees desired

and perceived quality of employment (Taylor & Consenza, 1997). There must be a common purpose and

trust among employees. People want to feel as if them is a vital piece of something larger (Carney, 1998)


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As Denton (1992) points out, managers must make sure employees know what they should do and why it

is important. Lynn (1997) notes that communications must be a two way street to be effective. Employers

must listen to what employees have to say. An atmosphere must be created in which employees feel

Comfortable making suggestions and trying our new ideas. The literature revealed that communication

must begin early in the employer/employee Relationship. Organizational values and culture must be made

clear to all employees and their Importance within the organization must be continually emphasized.

Training

As was noted earlier it is important that the employee feel like a valued member of the

Organization. Training helps underscore this message. Training personnel is a way to show you respect

them and want them to grow. The department is making an investment in the employee by offering

Training (Marx, 1995). Good training can de-emphasize salaries and benefits, in part by building a

Positive work environment and by giving employees advancement opportunities (Lynn, 1997). Lynn

Goes on to say that training helps strengthen employee loyalty. Training can help revitalize personnel. For

an increasing number of people, the chance to learn new skills is a significant personal goal for both the

career opportunities education can provide and for the chance to do something a little different

(Mendonsa, 1998). Training emphasizes to the employee that they are valued and respected. This in turn

to increased loyalty and retention.

Job Satisfaction

While an organization must be competitive in terms of compensation and benefits, it is the

Relationship with the supervisor that is often a crucial factor in determining whether a person stays or

Goes (Mendonsa, 1998). Employees want more interaction with management, more self-satisfaction on

the job, more responsibility and more control over decisions affecting them. They want their work to

make a difference and want to be part of something that matters (Taylor, 1997). Departments should

encourage innovation by soliciting the advice and input of their staff Members, followed by responses to


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ideas, complaints or questions (Taylor, 1997). It is difficult to keep People on the job if they have no say

in how to do it (Spragins, 1992). People need to be recognized for their accomplishments in the

workplace. In most Organizations the feeling of under-recognition is the most pervasive feeling in the

workplace (Mendonsa, 1998). Provide a great deal of personal and team recognition (Carney, 1998).

Recognize Achievements with memos, mentions in staff meetings or articles in the newspapers (Lynn,

1997). To retain employees, departments must offer career advancement opportunities. Departments

Failing to offer employees career opportunities, room for advancement and enhancement of skills and

Knowledge may find it difficult to retain qualified employees (Taylor, 1997). Marx (1995) concludes this

by pointing out that promoting from within is one of the proven methods of employee retention.

Promoting from within shows that there is truly room for advancement and growth within the

Department. Employee involvement, recognition, importance of work, and career advancement

opportunities Are all important, when dealing with employee retention?

Pay and Benefits

In general people think that money and benefits are lack thereof, are the main reasons people

leave their jobs, but this is not the case. While compensation and benefits may be a key factor in the Final

decision-making process, a money shortage is usually not what causes people to look in the first Place

(Mendonsa, 1998). Mo ney may be the reason they give when they resign, but its like white noise. They

are Conscious of it for a while but if they are bored on the job; money alone is not going to keep them

there (Branch, 1998). Although traditional benefits such as vacation and health are still important, todays

workers are also looking for more non-traditional benefits. Benefits such as flexible work hours,

availability of childcare Tuition assistance programs and discounts on services now top the list of desired

benefits (Denton, 1992). The literature clearly indicates while still factors, money and benefits are not as

important as job Satisfaction in terms of employee retention.


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RESEARCH METHODOLOGY

Research methodology is a purely and simply the framework or a plans for the study that guides

the collection and analysis of data. Research is the scientific way to solve the problems and its

increasingly used to improve market potential

Research design

A research design is the specification of methods and procedure for acquiring the information

needed. It is the over all operation patterns or framework of the project that stipulates what information

is to be collected from which source by what procedure, it is also refers to the blue print of the research

process.

Key issue Options

Research design Descriptive

Data Primary data and secondary data

Research Survey method

Research instrument Questionnaire/schedule.

Descriptive study

It is designed to describe something. It deals with determining the frequency with which

something occurs or how to variables very together this study is also guided by the initial hypothesis. The

descriptive study is rigid and normal. It also involves more specific hypothesis and testing of them

through statistical techniques.


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Data collection

The required data for the project has collected from primary data and Secondary data.

Primary data

It is a fresh data, which was collected from the employees and it was collected . By having

discussions and interaction with employees.

SOURCES OF PRIMARY DATA:

Questionnaire

Secondary source of data :

Secondary data refers to the information or facts already collected. Such data are collected with

the objective of understanding the past status of any variable.

SOURCES OF SECONDARY DATA:-

Management Information System (MIS)

www.Reliance -ADA.com (company web sites)

www.HR-one.in

www.HRM advice.com

Type of sampling

Types of sampling used in this survey were non-probability sampling under that convenience

sampling was used.

Sample size determination

Sample size restricted as the set of the sample is one organization. This sample Size was

determining 80.


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Research instrument

Questionnaire

Questionnaire refers to a device for securing answer to a formally arranged list of questions by

using a term, which the respondents fill in himself Schedule:-Often there is confusion among researchers

regarding the usage of questionnaire and. It is better to understand the difference between them. Schedule

is also a sheet (s0 of paper containing questions relating to certain specific aspects, about which the

scholar is collecting data. But the schedule is not sent to the informant. It is taken by the researcher, used

by him while eliciting information. The reply is recorded by the researcher himself against each question.

Research TOOLS

The analysis of the collected data is the most important part of any research to get the

interpretation for the project. According to this project, there will be three statistical tools are used.

They are,

Percentage analysis.

Chi-square test.

T-test

PERCENTAGE ANALYSIS

In case multiple choice questions the responses were categorized based on the nature and

percentage is calculated for each category. The percentage analysis is the analysis of ration of a current

value to a base value with the result multiplied by 100.


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CHI-SQUARE TEST

Chi-square testis used to compare the relationship between the two variables.

OBJECTIVES:

To recognize situations requiring the comparison of more that two means or proportions.

To use chi-square distribution to see whether two classifications of the source data are

independent of each other.

To use chi-square distribution for confidence intervals and testing hypothesis about a single

population variance.

To use chi-square test to check whether a particular collection of data is well described by a

specified distribution.

Chi-square test allows us to do a lot more than just test for the quality of several proportions. If

we classify a population into several categories with respect to two (2) attributes, we can than use

a chi square to determine whether the two (2) attributes are independent of each other.

This is used to test the difference observed between two columns of number found in two distinct

categories. A chi-square can be used when data satisfy four conditions.

There must be two observed sets of data or one observed set of data and our expected set of data.

The two set of data must be based on the same sample size.

Each cell in the data contain an observed or expected count of five or larger.

The different cells in a row or column must represent categorical variables.


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DEGREE OF FREEDOM :

df = (r-1)*(c-1)

(Number of Rows-1) * (Number of Columns-1)

= (Oi -Ei) / Ei

Where,

= Chi -square

Oi = Observed Frequencies.

Ei = Expected Frequencies.

ONE SAMPLE T-TEST

One sample t-tests can be used to determine if the mean of a sample is different from a particular

value.


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LIMITATIONS OF THE STUDY

The study is confined only to RHRS PVT., LTD.,

Time is still an important limitation in this regards as there were only 90 days.

The response from the respondents may be biased and thus should be considered

as a serious Drawback

Employees were not returning the questions on time.


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CONCLUSION

The study about effectiveness of recruitment strategies in RELIANCE HR SERVICES

(pvt) Ltd was very interesting and informative both to me and as well the organization. The

recruitment strategies in RELIANCE HR SERVICES Ltd, is really good and about 75 % of the

employees are satisfied about it.

It shows that the management is highly, enthusiastic in keeping employees recruiting.

The employees are also committed and devoted in nature. However some employees aredispleased with some of the factors, which prevail in any organization and it, is common

everywhere.

Suggestions made by the researcher were based on study. Findings will certainly improve

the recruitment strategies in the days to come provided, if the people concerned put them into

action.

On the overall view of the study employees are certainly happy with the organization and

still want to be part of the organization and serve for the company, for a good prospect for the

company.


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BIBLIOGRAPHY

BOOKS

Research Methodology - C.R.Kothari.

Human resource Management Kandaler.

Human resource Management L.M.Prasad.

WEB SITES

www. google.com.

www.citehr.com

www.hrmadvice.com

www.reliance employees.com (official web sites)


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2. Are you satisfied with your Health and related benefits (health insurance, vision,

dental, prescription)

[ ] Highly Dissatisfied [ ] Dissatisfied [ ] Neutral

[ ] Satisfied [ ] Highly Satisfied

3. Are you satisfied with your leave benefits including sick, vacation, personal, paid

holidays?



4. Have you satisfied with Rewards and recognition provided by the organisation (e.g.,

service awards, employee of the year)



5. Is Superior communicating effectively with employees?

[ ] Yes [ ] No

6. Do they encourage employees to give their opinion or suggestion on how their

performance can be improved?

[ ] Frequently [ ] Often [ ] Sometimes

[ ] Rare [ ] Never


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7. Is the organisation has a career development program that helps People become more

aware of and responsible for their own Career development.

[ ] Yes [ ] No [ ] Partial

8. To what extent do you agree with the effectiveness of your Employee Assistance

Program conducted by RHRS

[ ] Strongly Agree [ ] Agree [ ] Neutral[ ] Disagree [ ] Strongly Disagree

9. Are you satisfied with the Wellness Programs conducted by RHRS



10. Are you satisfied with the Mentoring/Coaching activities with your organisation



11. Have you been treated with fairness and Respect?

[ ] Yes [ ] No [ ] Partial


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12. Are you comfortable with working hours?

[ ] Yes [ ] No

If No, Please state the reason________________________________________________

_________________________________________________

13. Which of the following factor that attracted you to join this organization?

[ ] Salary [ ] Goodwill of Organisation [ ] Benefits/Allowance[ ] Growth of Organisation [ ] Career progression

14. What are the reasons for rejoining the organisation?

[ ] Position [ ] Work stress [ ] Brand Image

[ ] Other than above please specify ______________

15. What reason made you to retain your position for years?

[ ] Salary [ ] Incentive [ ] Promotion

[ ] Other than above please specify ______________

Thank you for your kind response

Documents

RHRS Main Profile