1a study on employee retention of workers with reference to gupta (1) (2) main (1)

7/23/2019 1A Study on EMPLOYEE RETENTION of WORKERS With Reference to Gupta (1) (2) Main (1)

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A Study On EMPLOYEE RETENTION OF WORKERS With Reference To

GUPTA H O!ERSEAS" A#r$%

A

PRO&ET REPORT

SU'MITTE( FOR THE FULLFILLMENT OF THE

'AHELOR (EGREE OF OMMERE )HONS%*

UN(ER THE SUPER!ISION OF+ SU'MITTE( 'Y+

AKANKSHA LA!ANIA

,-(./-

MR%S%P%'HANOT

(AYAL'AGH E(UATIONAL INSTITUTE

)(EEME( UNI!ERSITY*

ELLORA ENTER

(AYAL'AGH" AGRA

1



2



(ELARATION

This is to certify that the project report entitled 0E123oyee Retention Po3icy 4ith

Reference to Gu2t$ H O5er6e$67 submitted by A8$n86h$ L$5$ni$ is a bona

fide piece of work conducted under my direct supervision and guidance. No part of

this has been submitted for any other degree of any other university.

It may be considered for evaluation in the fulfillment of the Bachelor degree of

Commerce (ons.!

3



AKNOWLE(GEMENT

The gratitude" bliss and euphoria that accompany the successful completion of any

task would not be complete without the e#pression of appreciation of simple

virtues to the people who made it possible.

The final project report is submitted to $ayalbagh %ducation Institute" &gra for

post fulfillment of the Bachelor degree of Commerce (ons.!

This project is an attempt to study 'EMPLOYEE RETENTION POLIY. I

would like to sincerely thank my faculty guide S%P%'HANOT whose guidance has

helped me to understand and complete my project in a timely and proper manner.

4



5

).no Table of Content *g no.

Chapter 1

Chapter 2

Chapter 3

Chapter 4

Chapter 5

Introduction+

uman ,esource -anagement

%mployee ,etentionCompanys *rofile

Need /f the )tudy

/bjectives of the )tudy

,esearch methodology

,eview of 0iterature

$ata &nalysis

1indings

)uggestions2recommendations

Conclusion

,eference

Bibliography

&nne#ure

345

64787947:

75

76

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85

86

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HAPTER ,

INTRODUCTION

6



INTRO(UTION

HUMAN RESOURE MANAGEMENT

The once2t of Hu1$n Re6ource M$n$#e1ent

Management "observed by -ary *arker 1ollett 0i6 to #et thin#6 throu#h 2eo23e7%

uman resources is a term used to refer to how people are managed by organi>ations. It was

basically a traditionally administrative function but with time it focuses and recogni>es talented

and engaged people and organi>ational success. uman resources have at least two related

interpretations depending on conte#t. The original usage was traditionally called labour. It is a

measure of the work done by human beings. This perspective is changing as a function of new

and ongoing research into more strategic approaches. This first usage is used more in terms of

?human resources development?" and can go beyond just organi>ations to the level of national

importance. The more traditional usage within corporations and businesses refers to the

individuals within a firm or agency" and to the portion of the organi>ation that deals with hiring"

firing" training" and other personnel issues" typically referred to as ?human resources

management?. The terms @human resource management@ and @human resources@ (,! have

largely replaced the term @personnel management@ as a description of the processes involved in

managing people in organi>ations. In simple sense" ,- means employing people" developing

their resources" @personnel management@ as a description of the processes involved in managing people in organi>ations. uman resource management is to ma#imi>e the return on investment

from the organi>ation?s human capital and minimi>e financial risk. *resently uman ,esource

-anagement is an integral but distinctive part of management. Its objective is the maintenance

of better human relations in the organi>ation by the development" application and evaluation of

policies" procedures and programs relating to human resources to optimi>e their contribution

towards the reali>ation of organi>ational objectives. ,- helps in attaining ma#imum individual

development" desirable working relationship between employees and employers" employees and

employees" and effective modeling of human resources as contrasted with physical resources. It

is the recruitment" selection" development" utili>ation" compensation and motivation of human

resources by the organi>ation. Aenerally" human resource management refers to the managementof the entire workforce of an organi>ation in a reliable" honest and professional manner. It is the

responsibility of human resource managers in a corporate conte#t to conduct these activities in an

effective" legal" fair" and consistent manner. Thats why the demand of uman ,esource (,!

management has been dramatically increased these days.

7



O9:ecti5e6 of Hu1$n Re6ource M$n$#e1ent

/bjectives are pre4determined goals to which individuals or group activity in an organi>ation is

directed. )o objectives of ,- are influenced by organi>ational objectives and individual aswell as social goals.

=. To help the organi>ation reach its goals.7. To identify and satisfy the needs of individuals.

;. To achieve and maintain high morale among employees.

8. To develop and maintain a uality of work life.

9. To be ethically and socially responsive to the needs of society.

Hu1$n Re6ource M$n$#e1ent+ Sco2eThe scope of ,- is very wide and vast" as seen in the diagram. &ll major activities in the

working life of an employee come under preview of ,-. The activities can be broadly divided

into three groups.

=. *ersonnel aspect+ This is concerned with manpower planning" recruitment" selection"

placement" transfer" promotion" training and development" layoff and retrenchment"

remuneration" incentives" productivity etc.7. elfare aspect+ It deals with working conditions and amenities such as canteens" crDches"

rest and lunch rooms" housing" transport" medical assistance" education" health and safety"

recreation facilities" etc.

;. Industrial relations aspect+ This covers union4management relations" joint consultation"

collective bargaining" grievance and disciplinary procedures" settlement of disputes" etc.

8



EMPLOYEE RETENTION

What is Employee Retention ?

E123oyee retention refer6 to the 5$riou6 2o3icie6 $nd 2r$ctice6 4hich 3et the e123oyee6

6tic8 to $n or#$ni;$tion for $ 3on#er 2eriod of ti1e. %very organi>ation invests time and

money to groom a new joinee" make him a corporate ready material and bring him at par with the

e#isting employees. The organi>ation is completely at loss when the employees leave their job

once they are fully trained. %mployee retention takes into account the various measures taken so

that an individual stays in an organi>ation for the ma#imum period of time.

Why do Employees Leave ?

Re6e$rch 6$y6 th$t 1o6t of the e123oyee6 3e$5e $n or#$ni;$tion out of fru6tr$tion $nd

con6t$nt friction 4ith their 6u2erior6 or other te$1 1e19er6 . In some cases low salary" lack

of growth prospects and motivation compel an employee to look for a change. The management

must try its level best to retain those employees who are really important for the system and are

known to be effective contributors.

It is the responsibility of the line managers as well as the management to ensure that the

employees are satisfied with their roles and responsibilities and the job is offering them a new

challenge and learning every day.

Let u6 under6t$nd the conce2t of e123oyee retention 4ith the he32 of $n e<$123e+

)hinna was a talented employee who delivered her best and completed all her work within the

desired time frame. er work lacked errors and was always found to be innovative and thought

provoking. )he never interfered in anybody elses work and stayed away from unnecessary

gossips and rumours. )he avoided loitering around at the workplace" was serious about her work

and no doubts her performance was always appreciable. ,ohan " her immediate boss never really

liked )hinna and considered her as his biggest threat at the workplace. e left no stone unturnedto insult and demotivate)hinna. )oon" )hinna got fed up with ,ohan and decided to move on.

)ituation = 4 The , did not make any efforts to retain )hinna and accepted her resignation.

)ituation 7 4 The , immediately intervened and discussed the several issues which prompted

)hinna to think for a change. They tried their level best to convince )hinna and even appointed a

new boss to make the things better for her.

9



)ituation = would most likely leave the organi>ation in the lurch. It is not easy to find an

employee who gels well with the system and understands the work. iring an employee" training

him and making him fit to work in an organi>ation incur huge costs and thus sincere efforts must

be made to retain the employee. %very problem has a solution and the management must probe

into the e#act reasons of an employees displeasure. %mployees sticking to an organi>ation for a

longer time tend to know the organi>ation better and develop a feeling of attachment towards it.

The employees who stay for a longer duration are familiar with the company policies" guidelines

as well as rules and regulations and thus can contribute more effectively than individuals who

come and go.E123oyee retention techni=ue6 #o $ 3on# 4$y in 1oti5$tin# the e123oyee6 for

the1 to en:oy their 4or8 $nd $5oid ch$n#in# :o96 fre=uent3y.

Need > I12ort$nce of E123oyee Retention

%mployee ,etention refers to the techniues employed by the management to help the

employees stay with the organi>ation for a longer period of time. %mployee retention strategies

go a long way in motivating the employees so that they stick to the organi>ation for the

ma#imum time and contribute effectively. )incere efforts must be taken to ensure growth and

learning for the employees in their current assignments and for them to enjoy their work.

%mployee retention has become a major concern for corporates in the current scenario.

Individuals once being trained have a tendency to move to other organi>ations for better

prospects. 0ucrative salary" comfortable timings" better ambience" growth prospects are some of

the factors which prompt an employee to look for a change. henever a talented employeee#presses his willingness to move on" it is the responsibility of the management and the human

resource team to intervene immediately and find out the e#act reasons leading to the decision.

10



Let u6 under6t$nd 4hy ret$inin# $ 5$3u$93e e123oyee i6 e66enti$3 for $n

or#$ni;$tion.

Hirin# i6 not $n e$6y 2roce66+ The , *rofessional shortlists few individuals from a

large pool of talent" conducts preliminary interviews and eventually forwards it to the

respective line managers who further grill them to judge whether they are fit for theorgani>ation or not. ,ecruiting the right candidate is a time consuming process.

An or#$ni;$tion in5e6t6 ti1e $nd 1oney in #roo1in# $n indi5idu$3 $nd 1$8e hi1

re$dy to 4or8 $nd under6t$nd the cor2or$te cu3ture+ & new joinee is completely

raw and the management really has to work hard to train him for his overall

development. It is a complete wastage of time and money when an individual leavesan organi>ation all of a sudden. The , has to start the recruitment process all over

again for the same vacancyE a mere duplication of work. 1inding a right employee for

an organi>ation is a tedious job and all efforts simply go waste when the employee

leaves.

When $n indi5idu$3 re6i#n6 fro1 hi6 2re6ent or#$ni;$tion" it i6 1ore 3i8e3y th$t he

4ou3d :oin the co12etitor6+ In such cases" employees tend to take all the strategies" policies from the current organi>ation to the new one. Individuals take all the

important data" information and statistics to their new organi>ation and in some cases

even leak the secrets of the previous organi>ation. To avoid such cases" it is essentialthat the new joinee is made to sign a document which stops him from passing on any

information even if he leaves the organi>ation. )trict policy should be made which

prevents the employees to join the competitors. This is an effective way to retain theemployees.

The e123oyee6 4or8in# for $ 3on#er 2eriod of ti1e $re 1ore f$1i3i$r 4ith the

co12$ny?6 2o3icie6" #uide3ine6 $nd thu6 they $d:u6t 9etter+ They perform better than individuals who change jobs freuently. %mployees who spend a considerable

time in an organi>ation know the organi>ation in and out and thus are in a position to

contribute effectively.

E5ery indi5idu$3 need6 ti1e to $d:u6t 4ith other6+ /ne needs time to know his team

members well" be friendly with them and eventually trust them. /rgani>ations arealways benefited when the employees are compatible with each other and discussthings among themselves to come out with something beneficial for all. hen a new

individual replaces an e#isting employee" adjustment problems crop up. Individuals

find it really difficult to establish a comfort level with the other person. &fter strikinga rapport with an e#isting employee" it is a challenge for the employees to adjust with

someone new and most importantly trust him. It is a human tendency to compare a

new joinee with the previous employees and always find faults in him.

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It h$6 9een o96er5ed th$t indi5idu$36 6tic8in# to $n or#$ni;$tion for $ 3on#er 62$n

$re 1ore 3oy$3 to4$rd6 the 1$n$#e1ent $nd the or#$ni;$tion+ They enjoy all

kinds of benefits from the organi>ation and as a result are more attached to it. Theyhardly badmouth their organi>ation and always think in favour of the management.

1or them the organi>ation comes first and all other things later.

It i6 e66enti$3 for the or#$ni;$tion to ret$in the 5$3u$93e e123oyee6 6ho4in#

2otenti$3+ %very organi>ation needs hardworking and talented employees who can

really come out with something creative and different. No organi>ation can survive if

all the top performers uit. It is essential for the organi>ation to retain thoseemployees who really work hard and are indispensable for the system.

E123oyee Retention Str$te#ie6

1or an organi>ation to do well and earn profits it is essential that the high potential employees

stick to it for a longer duration and contribute effectively. The employees who spend a

considerable amount of time tend to be loyal and committed towards the management andalways decide in favour of the organi>ation. hen you meet someone" there is hardly any

attachment in the beginning" but as the friendship matures" a sense of loyalty and trust develops.

In the same way" when an individual spends a good amount of time in an organi>ation" he gets

emotionally bonded to it and strives hard for furthering the brand image of the organi>ation.

The management cant completely put a full stop to the process of employees uitting their jobs

but can control it to a large e#tent.

Let u6 #o throu#h 6o1e 6tr$te#ie6 to ret$in $n indi5idu$3+

&n employee looks for a change when his job becomes monotonous and does not offer

anything new. It is essential for everyone to enjoy whatever he does. The

re62on6i9i3itie6 1u6t 9e de3e#$ted $ccordin# to the indi5idu$3?6 62eci$3i;$tion

$nd intere6t6. It is the responsibility of the team leader to assign challenging work tohis team members for them to enjoy work and do not treat it as a burden.

12



*erformance reviews are important to find out whether the employees are really

happy with their work or not.

on6t$nt di62ute6 $1on# e123oyee6 encour$#e the1 to #o for $ ch$n#e. Conflicts

must be avoided to maintain the decorum of the place and avoid spreading negativityaround. *romote activities which bring the employees closer. /rgani>e outdoor

picnics" informal get together for the employees to know each other better andstrengthen the bond among themselves. 0et them make friends at the workplacewhom they can really trust. 1riendship among employees is one strong factor which

helps to retain employees. Individuals who have reliable friends at the workplace are

reluctant to move on for the sake of friendship. No one likes to leave an organi>ation

where he gets mental peace. It is essential to have a cordial environment at theworkplace.

The hu1$n re6ource de2$rt1ent 1u6t en6ure th$t it i6 hirin# the ri#ht c$ndid$te.

1rustration crops up whenever there is a mismatch. & finance professional if is hired

for a marketing profile would definitely end up being frustrated and look for a

change. The right candidate must be hired for the right profile. hile recruiting a new

candidate" one should also check his track record. &n individual who has changed his previous jobs freuently would also not stick to the present one and thus should not

be hired.

E123oyee reco#nition i6 one of the 1o6t i12ort$nt f$ctor6 4hich #o $ 3on# 4$y in

ret$inin# e123oyee6. Nothing works better than appreciating the employees. Their

hard work must be acknowledged. -onetary benefits such as incentives" perks" cash

pri>e also motivate the employees to a large e#tent and they prefer sticking to the

organi>ation. The performers must have an upper edge and should get a specialtreatment from the management.

Perfor1$nce $22r$i6$36 $re $36o i12ort$nt for $n e123oyee to 6t$y 1oti5$ted $nd

$5oid 3oo8in# for $ ch$n#e. The salary hike should be directly proportional to thehard work put by the employees. *artiality must be avoided as it demotivates the

talented ones and prompt them to look for a better opportunity.

The 6$3$ry of the e123oyee6 1u6t 9e di6cu66ed $t the ti1e of the inter5ie4 . The

components of the salary must be transparent and thoroughly discussed with the

individuals at the time of joining to avoid confusions later. The individuals should be

made to join only when the salary as well as other terms and conditions are

acceptable to them.

The co12$ny?6 ru3e6 $nd re#u3$tion6 6hou3d 9e 1$de to 9enefit the e123oyee6 .

They should be employee friendly. &llow them to take a leave on their birthdays or come a little late once or twice in a month. It is important for the management to

understand the employees to gain their trust and confidence. The consistent

performers must also have a say in the companys decisions for them to feelimportant.

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Ro3e of Moti5$tion in E123oyee Retention

%mployee retention involves various steps taken to retain an employee who wishes to move on.&n employee must find his job challenging and as per his interest to e#cel at work and stay with

the organi>ation for a longer period of time. The management plays an important role inretaining the talented employees who are familiar with the working conditions of theorgani>ation and thus perform better than the employees who just come and go.

Moti5$tion 23$y6 $n i12ort$nt ro3e in e123oyee 6$ti6f$ction $nd e5entu$33y e123oyee

retention.

Nothin# 4or86 9etter th$n 1oti5$tion. -otivation acts as a catalyst to an individuals success.

The team leaders and the managers must constantly motivate the employees to e#tract the bestout of them. If an employee has performed e#ceptionally well" do appreciate him. )imple words

like 'ell done"'Bravo"'Aood"'Feep it up actually go a long way in motivating the

employees. The top performers must be in the limelight. The employees must feel indispensable

for the organi>ation. It is essential for the employees to be loyal towards their organi>ation todeliver their level best.

$oes anyone spoil his personal belongingsG No. The reason being we are concerned about our

own stuff. In the same way a sense of belonging at workplace is important for better

output. O4ner6hi2 of 4or8 on3y co1e6 throu#h 1oti5$tion. &sk the team members to buck upso that they perform well every time and meet the e#pectations of the management.

The 6u2erior6 6hou3d 6end 1oti5$tion$3 e1$i36 to their te$1 once in $ 4ee8% (i623$y

in62ir$tion$3 2o6ter6" 2hoto#r$2h6 on the notice 9o$rd for the e123oyee6 to re$d $nd 6t$y

1oti5$ted. It is natural for an individual to feel low sometimes" but the superiors must ensure to

boost their morale and bring them back on track. No individual should be neglected or critici>ed.This demotivates them. If they fail to perform once" motivate them and give them another opportunity.

Or#$ni;e 5$riou6 $cti5itie6 $nd e5ent6 $t the 4or823$ce. &sk each one to take charge of

something or the other. %ngage the employees in productive tasks necessary for their overalldevelopment. The management must show its care and concern for all the staff members. The

employees must feel secure at the workplace for them to stay motivated.

henever any company policy is to be formulated" the opinion of each and every employee

should be taken into consideration.

Invite all of them on a common platform and ask for their suggestions as well. 1reedom of e#pression is must. %very employee must have a say in the organi>ations guidelines as they are

made only to benefit them.

Incenti5e6" 2er86" c$6h 2ri;e6 $re $ #ood 4$y to 1oti5$te the e123oyee6. The employees who

have performed well consistently should be felicitated in front of all the staff members as well as

the management. Aive them trophies or badges to flaunt. &sk the audience to give a loudapplause to the employees who have performed well. This is a good way to motivate the

14



employees for them to remain happy and work with dedication for a longer duration. /thers who

have not performed up to the mark also gear up for future. The names of the top performers must

be put on the companys main notice board or bulletin board for everyone to see.

A22r$i6$36 $re $36o $n i12ort$nt 4$y to 1oti5$te the e123oyee6. The salaries of the

performers must be appraised at regular intervals4 an effective way to retain the employees.Career growth is an important way to retain the talented employees. Aive them power to take

some decisions on their own but the management must have a close watch on them so that they

do not misuse their power.

ithout motivation" it is not fair to e#pect the best out of the employees. No individual likes to

leave an organi>ation where he is being treated well.

Ro3e of HR in E123oyee Retention

&n organi>ation cant survive if the top performers uit. It needs employees who are loyal and

work hard with full dedication to achieve the organi>ations objective. It is essential for the

management to retain its valuable employees who think in favour of the organi>ation andcontribute their level best. &n employee who spends a longer duration at any particular

organi>ation is familiar with the rules" guidelines and policies of the organi>ation and thus can

adjust better.

The Hu1$n Re6ource te$1 23$y6 $n i12ort$nt ro3e in e123oyee retention% Let u6 find out

their ro3e in the 6$1e+

Whene5er $n e123oyee re6i#n6 fro1 hi6 current $66i#n1ent6" it i6 the

re62on6i9i3ity of the HR to inter5ene i11edi$te3y to find out the re$6on6 4hich2ro12ted the e123oyee to re6i#n. No one leaves an organi>ation without a reason.

There has to be one and the human resource team must probe into it. There can be

innumerable reasons for an employee to leave his current job. The major ones being

conflict with the superiors" lesser salary" lack of growth" negative ambience and soon.

It i6 the duty of the HR to 6it 4ith the e123oyee $nd di6cu66 the 5$riou6 i66ue6 f$ce

to f$ce. Hnderstand his problems and listen to his side of the story as well.

15



,emember the , should not focus on conducting e#it interviews" rather more

emphasis should be laid on retaining the employees.

Try to provide a solution to his problem. iring is a tedious process and it is really

very difficult to recruit the right candidate and train him once again. $o check thetrack record of the employee who wishes to move on. It is really essential for the

management to retain those employees who have the potential and are reallyindispensable for the organi>ation. If they leave and join the competitorsE theorgani>ation would be at loss. If one feels that the employee is not very happy with

his team leader" try to shift him to a new team. If the employee feels his salary is not

justified" try to give him a hike but make sure he is worth it and you dont end up

upsetting others.

The HR 2er6on 1u6t en6ure th$t he i6 recruitin# the ri#ht e123oyee 4ho $ctu$33y

fit6 into the ro3e. & right person doing the wrong job would never find his jobinteresting and certainly look for a change. -ake sure every individual has been

assigned responsibilities according to his speciali>ation and interest. The employeesmust be clear with their F,&s from the very beginning. %very individual works for

money and the , must uote a justified salary acceptable to the other person. $ontcompel anyone to join at a lesser salary. e might join at that moment but would

most likely uit after sometime. The hike should be on the present salary and must

match the market trends and the e#pectations of the individual.

The hu1$n re6ource de2$rt1ent 1u6t conduct 1oti5$tion$3 $cti5itie6 $t the

4or823$ce. /rgani>e various internal as well as e#ternal trainings which help the

employees to learn something e#tra apart from their routine work. -ake them participate in e#tracurricular activities important for their overall development.

%ncourage them to interact with each other so that the comfort level increases.

The HR 1u6t 3$unch 5$riou6 incenti5e 6che1e6 for the to2 2erfor1er6 to

1oti5$te the1. This way the employees feel important for the organi>ation andstrive hard to perform even better the ne#t time. The employees who show promise

should be awarded with cash pri>es" lucrative perks and certificates to make the

individual stand apart from the crowd. )end a mail wishing the employees on their

birthdays or congratulating them when they perform e#ceptionally well or come out

with something innovative. &rrange a small bouuet for them as a gift from theorgani>ations side. This way the employees feel attached to the organi>ation and are

reluctant to look for a change. & friendly atmosphere is essential for the employees tofeel safe and secure. -ake them participate in various management decision making.

Perfor1$nce re5ie46 $re $ 1u6t% The HR $3on# 4ith the re62ecti5e te$1 3e$der6

1u6t 1onitor their te$1 1e19er?6 2erfor1$nce to en6ure 4hether they $re

en:oyin# the 4or8 or not. The employees look for a change only when their job

16



becomes monotonous and does not offer any growth or learning. ob rotation can be

one of the effective ways to retain employees.

The , professional must try his level best to motivate the employees" make them feel special inthe organi>ation so that they do not look for a change.

Ro3e of Te$1 Le$der6 $nd Su2er5i6or6 in E123oyee Retention

%mployee retention includes various steps taken to satisfy the employees so that they stay with

the organi>ation for a longer duration. )trong measures must be taken to retain the high potentialemployees who have spent a good amount of time in the organi>ation and know it in and out. It

is essential to retain the talented employees who are loyal towards the organi>ation and can

contribute effectively.

The te$1 3e$der6 $nd the 6u2er5i6or6 23$y $n i12ort$nt ro3e in e123oyee retention+

&n employee uits his job whenever he faces problems at the workplace and is not satisfied withhis work. The job must be challenging enough and the employees should learn something new

every day for them to stick to it for a long time. It is the responsibility of the team leader to

ensure that the team members are contented with their work and share a good rapport amongstthemselves.

The te$1 1e19er6 1u6t 9e $66i#ned re62on6i9i3itie6 $6 2er their 62eci$3i;$tion"

=u$3ific$tion" intere6t6 $6 4e33 $6 e<2erience. The team members must find their job interestingfor them to enjoy and work hard to achieve the organi>ation goals. The F,&s must be

formulated in the presence of the employees. 0et them decide what best they can perform.

*roblems crop up whenever there is a mismatch or the employees have to do something out of compulsion. $ont compel anyone to do something. 0et them accept the responsibilities

willingly. &n individual with an analytical bent of mind would not do very well in a marketing or

branding profile. & wrong profile is one of the several reasons as to why an employee looks for a

change.

An o5er 9urdened 4or8er ne5er find6 hi6 :o9 intere6tin# $nd 4ou3d $34$y6 9e e$#er for $

ch$n#e. It is the duty of the team leader to distribute the work eually among all the employees.The manager should not be partial to anyone and treat all his members as one. e should not let

negativity creep in the team. The superiors must have a control on their subordinates and make

sure they do not fight with each other. Nothing productive comes out of disputes" rather itdemotivates the individuals and prompt them to look for some another opportunity.

Ru3e6 $nd re#u3$tion6 6hou3d 9e 6$1e for e5eryone . &void granting special favours to anyone.

One 6hou3d ne5er fe$r hi6 9o66% Hit3er $22ro$ch doe6 not 4or8 in the current 6cen$rio . &

team leader should be a role model for his team. The team managers should not be arrogant and

17



avoid misuse of their position. e should let all the team members participate in the decision

making process. %very employee should have the freedom of e#pression and no one should be

left out or neglected. The team leader should trust and respect his team members to e#pect thesame from them.

The te$1 3e$der 6hou3d 9e $cce66i93e to hi6 te$1 1e19er6 . %mployees feel demotivatedwhen their ueries remain unsolved and there is no body to listen to them. hen the team leader

doesnt have time for his team" the employees crib among themselves and wish to move on. The

team leader must make sure to be with his team whenever reuired. e should support his teammembers always. 0isten to their problems and try to provide a solution. -ake them feel that you

are there for them. & little care is essential to make them feel safe and secure. If you find any of

the team members worried" intervene immediately. -inor problems left unattended can lead to

severe stress later" forcing employees to look for a change.

The 6u2erior6 1u6t 1$int$in tr$n62$rency in co11unic$tion. %very team member should

get the same information from their boss for them to remain satisfied and loyal towards theorgani>ation.

The te$1 3e$der 1u6t $22reci$te tho6e 4ho 2erfor1 4e33. Aive them a pat on their back. The

hard work of the team members should never go unnoticed. The top performers must be given aspecial treatment to motivate them further and e#pect the same from them every time. The

employees who have not performed well should also be asked to buck up for the ne#t time.

It is the responsibility of the team leader to bind his team together. Take your team out for lunch

once in a while for them to come closer to each other. %very individual e#pects peace at the

workplace and looks for a change only when there is unnecessary stress at work. The team leader must promote healthy competition at the workplace.

& team leader should mentor his team well. %mployees are reluctant to go for a change when

they have a good boss.

E123oyee En#$#e1ent $nd E123oyee Retention

Individuals coming together on a common platform to achieve the goals of the organi>ation aswell as to earn a living for themselves are called as employees. The smooth functioning of an

organi>ation depends on its employees and their seriousness towards work.

Wh$t i6 e123oyee en#$#e1ent@

E123oyee en#$#e1ent refer6 to $ 6itu$tion 4here $33 the e123oyee6 $re en#$#ed in their

o4n 4or8 $nd t$8e 8een intere6t in the or#$ni;$tion?6 $cti5itie6. &n engaged employee isone who is focussed" enjoys his work and learns something new each day.

&n engaged employee is satisfied with his work and would never think of uitting his job. e is

the one who willingly accepts responsibilities and looks forward towards a long term association

18



with the organi>ation.

0ack of challenging work is one of the major reasons as to why an employee decides to move on.&n individual should be delegated responsibilities as per his speciali>ation and background for

him to perform up to the mark. &n employee delivers his hundred percent when he does

something which interests him. *roblems crop up when individuals have nothing creative andchallenging to do. &n employee must foresee a bright future and better growth prospects in the

organi>ation for him to stick to it for a longer duration. &n engaged employee always stays

motivated in his current assignments and does not look for opportunities outside. hy does anindividual always look for challenges outside" why cant he improve the conditions in his own

organi>ationG -onotonous work demotivates an individual and prompts him to look for a

change.

&s they say 'an empty mind is a devils workshop. In the same way" id3e e123oyee6 $re the

one6 4ho 3oiter $round $nd 62re$d ne#$ti5ity $33 o5er the 23$ce . They are the ones who

provoke others to fight amongst themselves. Individuals who have nothing to do at workplace

kill their time by gossiping around and badmouthing their organi>ation. They always talk negative about the management and encourage others to move on.

The team leaders and the management must take the initiative to assign challenging work to thesubordinates so that they do not treat their work as a burden. &n employee must be asked to do

something innovative everytime.&n individual engaged in his work strives hard to deliver his

level best and live up to the e#pectations of the management everytime. e looks forwardtowards achieving his organi>ations targets and thus making it one of the best places to work.

An e123oyee 4ho i6 9u6y 4ith hi6 4or8 6t$y6 $4$y fro1 n$6ty 2o3itic6" 9$c86t$99in# $nd

thu6 1$int$in the decoru1 of the office. e prioriti>es his work and does not really get time

for controversies. Individuals are reluctant to leave when they enjoy a cordial relation with their

colleagues. %veryone e#pects a stress free environment at workplace and tends to leave onlywhen there are constant disputes. No one likes to carry tensions back home. &n engagedemployee does not get time to participate in unproductive tasks instead finishes his assignments

on time and benefits the organi>ation.

The team leaders must monitor the performance of the team members to ensure whether they are

satisfied with their profile or notG *erformance reviews are a must to make sure every one finds

his job interesting. $iscussions are essential at the workplace and everyone should have theliberty to e#press his opinions on an open forum. $ont impose things on anyone. 0et people

decide themselves what best they can do. This way employees are satisfied with their work and

never look for a change.

One 6hou3d $34$y6 re1e19er th$t office6 $re 1e$nt to 4or8 $nd not for fun. 1or an

individual" his work should come first and everything else later. The employees who do not take

ownership of their work blame others and the organi>ation for the poor show. Cowards leave theorgani>ation at its bad times" the one who really has the potential to make it big stick to it and

make things happen there only.

19



h$33en#e6 in E123oyee Retention

In the current scenario" a major challenge for an organi>ation is to retain its valuable and talented

employees. The management can control the problem of employees uitting the organi>ationwithin no time to a great e#tent but cant put a complete full stop to it. There are severalchallenges to it.

0et us understand the challenges to employee retention+

Monet$ry di66$ti6f$ction i6 one of the 1$:or re$6on6 for $n e123oyee to 3oo8 for $

ch$n#e. %very organi>ation has a salary budget for every employee which can beraised to some e#tent but not beyond a certain limit. ,etention becomes a problem

when an employee uotes an e#ceptionally high figure beyond the budget of the

organi>ation and is just not willing to compromise. The organi>ation needs to takecare of the interests of the other employees as well and cant afford to make them

angry. The salaries of the individuals working at the same level should be more or

less similar to avoid major disputes amongst employees. & high potential employee is

always the center of attention at every workplace but one should not take any undueadvantage. /ne should understand the limitation of the management and uote

something which matches the budget of the organi>ation. &n individual should not be

adamant on a particular figure" otherwise it becomes difficult for the organi>ation toretain him. ,emember there is a room for negotiation everywhere.

In the current 6cen$rio" 4here there i6 no de$rth of o22ortunitie6" 6to22in# 2eo23e

to 3oo8 for $ ch$n#e i6 $ 9i# ch$33en#e. %very organi>ation tries its level best to hire

employees from the competitors and thus provide lucrative opportunities to attract

them. %mployees become greedy for money and position and thus look forward tochanging the present job and join the competitors. No amount of counseling helps in

such cases and retaining employees becomes a nightmare.

Indi5idu$36 62e$8 $33 8ind of 3ie6 durin# inter5ie46 to #et $ :o9. They might not be

proficient in branding but would simply say a yes to impress the recruiter and grab

the job. It is only later do people reali>e that there has been a mismatch and thus look for a change. *roblems arise whenever a right person is into a wrong profile. &n

individual loses interest in work whenever he does something out of compulsion. The

human resource department should be very careful while recruiting new employees.It is really important to get the reference check done for better reliability and avoid

confusions later.

So1e indi5idu$36 h$5e $ tendency to #et 9ored in $ 6hort 62$n of ti1e . They mightfind a job really interesting in the beginning but soon find it monotonous and look for

a change. The management finds it difficult to convince the employees in such cases.Individuals must also understand that every organi>ation has some or the other

problem and adjustment is reuired everywhere" so why not in the present

organi>ationG It becomes really difficult for the , $epartment to find out what

e#actly is going on in the minds of the individual. &n individual should voice hisopinions clearly to make things easier for the management

20



Ho4 to Ret$in the 'e6t E123oyee

The management must understand the difference between a dedicated employee and an

employee who comes to office just for the sake of fun. The employees who really are concerned

about the organi>ation must be retained for better output and a healthy environment at theworkplace.

0et us go through few steps to avoid talent drain+

Wor8 6hou3d ne5er 9eco1e 1onotonou6 $nd 1u6t offer $ ne4 3e$rnin# e$ch d$y.

&n employee should be able to upgrade his skills and enhance his knowledge at the

workplace. %mployees leave the organi>ation whenever there are no chances of further growth. &n individual must be made to do something which really e#cites him

and most importantly matches his background. The employees must be asked toaccomplish the tasks in the most innovative way for them to enjoy their work. No oneshould be asked to do anything out of compulsion. The team leader must not force

anyone to work. 0et them accept assignments willingly. The moment work becomes a

burden for the employees" they look for a change.

E5ery indi5idu$3 6hou3d en:oy 2ri5$cy $t the 4or823$ce. The superiors must ensure

that no employee interferes in each others work. Team members sitting at adjacentdesks should not overhear their colleagues conversation or check any confidential

documents. These things lead to severe demotivation and prompt an individual to

look for a change. $iscussion is important but one should not irritate anyone. Theteam manager should also not make his team members life hell. ust give them

deadlines and ask them to complete the assignments within the desired time frame.-otivate them to deliver their best but dont be after their life. ,emember everyone is

mature enough to understand that work comes first" and everything later.

The 6enior6 1u6t 9e re$ch$93e to their 6u9ordin$te6 in c$6e of =uerie6. The

hierarchy should not be too complicated and transparency in communication is

important at all levels. -anipulation of truth should be strictly avoided as it leads to

severe misunderstandings and eventually conflicts. %mployees look for a changewhen there are unnecessary disputes at the workplace. The team leader once in a

week must make sure to meet all the team members on an open forum to address their

concern. The meeting should not be made too formal. %veryone should be allowed to

bring their cups of coffee. )uch interaction strengthens the bond among theemployees and also avoid friction among individuals. It is essential to have a positive

ambience at the workplace for people to stick to it for a longer time.

E5ery e123oyee 6hou3d 9e tre$ted $6 one irre62ecti5e of hi6 de6i#n$tion . )e#ual

harassment is against the law and is a strict no no at the workplace. The male workers

should respect their female counterparts and make them feel comfortable. $ont ask any female employee to stay back late. 0eg pulling" back stabbing" lewd remarks

must be avoided at the organi>ation to retain the employees.

21



The 1$n$#e1ent 1u6t for1u3$te e123oyee friend3y 2o3icie6. The employees must

be allowed to take one or two leaves in a month so that they get time to rejuvenate.$ont call the employees on weekends. 0et them enjoy. The human resource

department must take the initiative to celebrate birthdays of employees at the

workplace. This way people come closer" make friends" develop trust and are thus

reluctant to go for a change. -ajor festivals should also be celebrated at theorgani>ation for employees to get attached to the organi>ation.

Incenti5e6" c$6h 2ri;e6" tro2hie6" 2er86 6hou3d 9e #i5en to de6er5in# e123oyee6 to

1oti5$te the1 to 2erfor1 u2 to the 1$r8 e5ery ti1e . The salaries of the high

potential employees must be appraised from time to time as monetary dissatisfaction

is one of the major reasons for employees uitting their jobs. The hard work of theworkers must be appreciated. The slow learners must not be critici>ed but should be

inspired to gear up for the ne#t time.

The 2erfor1er6 1u6t 9e 1$de to 2$rtici2$te in the deci6ion 1$8in# 2roce66 . They

should have a say in the major strategies of the organi>ation for them to feelimportant and trust the management.

(i6ci23ine i6 $ 1u6t $t the 4or823$ce. If the office timing is 6.;< am" every employee

regardless of designation must punch his card at 6.;< am sharp or before that. Norela#ation should be given to anyone. *artiality is something which does not work in

the corporate world. It is important to maintain the decorum of the office to make the

organi>ation a better place to work.

u$3itie6 in $n Or#$ni;$tion for $ 'etter E123oyee Retention

E123oyee Retention refer6 to the 5$riou6 6te26 in5o35ed to ret$in the out#oin# e123oyee6.

iring is a cumbersome process and it is really not easy to find an employee who is loyal

towards the organi>ation and looks forward towards achieving its targets. &n organi>ation mustencourage the employees to stick to it for a good amount of time and contribute effectively in

their respective areas.

%very individual strives hard to give his hundred percent to the organi>ation and e#pects thesame in return. &n individual must feel attached to his workplace to enjoy his work and learn

something new each day. The organi>ation must promise opportunities for further growth to all

the employees and each one should foresee a bright future there.

%very individual e#pects peace and healthy working conditions to deliver his level best. & shady background and poor financial condition of the organi>ation are the major factors leading to

unrest amongst the employees. No individual likes to work with an organi>ation running intolosses. & sick unit is unable to pay salaries on time making it difficult for the employees to work

with it for a long time. &n organi>ation must be financially stable for the employees to feel safe

and secure.

22



,ules and regulations are formulated for the benefit of the employees and thus should not be too

rigid. An or#$ni;$tion 1u6t h$5e e123oyee friend3y 2o3icie6 for the indi5idu$36 to 6t$y

1oti5$ted. The management must take into consideration the genuine problems of theemployees to make the organi>ation a better place to work. 0eave policies and compensation

structure should be designed in a manner to satisfy the needs of the employees.

Monet$ry 6$ti6f$ction i6 one of the 1$:or re$6on6 $6 to 4hy $n e123oyee 6tic86 to

$n or#$ni;$tion for $ 3on#er dur$tion. Incentive plans" perks and other benefits

should meet the e#pectations of the employees and should be directly proportional tothe hard work put by the individuals. The high potential employees should be

rewarded suitably to make them feel indispensable for the organi>ation and to e#pect

the same from them everytime.

An or#$ni;$tion 1u6t h$5e $ 6i123e hier$rchy $nd the function$3 $re$6 of e$ch

te$1 6hou3d 9e 4e33 defined. Complicated hierarchies lead to confusions andunnecessary disputes amongst team members. It is essential to maintain transparency

at all levels. The team si>e should be restricted to 9 or 3 members for smooth flow of

information and better output. %very team ideally should have a single leader willingly chosen by the team members to act as a strong support system for them.The superiors must be accessible to the team members in case of ueries and must

monitor the teams performance from time to time. The team leader should act as a

role model for his team.

Freedo1 of e<2re66ion i6 of ut1o6t i12ort$nce $t the 4or823$ce to ret$in

e123oyee6. Individuals should have the liberty to e#press their ideas and discuss

issues on an open forum. This way employees do not crib among themselves and

come closer to each other.

The or#$ni;$tion 1u6t encour$#e e123oyee6 to ce3e9r$te 1$:or fe6ti5$36 $t the

office 2re1i6e6 it6e3f . &sk them to bring their families as well. )uch activities go a

long way in strengthening the bond among the individuals and retaining them.

It i6 i12ort$nt for the or#$ni;$tion to h$5e 6trin#ent 2o3icie6 for non 2erfor1in#

e123oyee6. )trict action must be taken against those who come to organi>ation just

for fun and are just not bothered about their own work. The performers must get an

e#tra edge and should be entitled to e#clusive benefits.

An or#$ni;$tion 1u6t offer $ 2o6iti5e $19ience to it6 e123oyee6 to e<2ect $

con6i6tent 2erfor1$nce fro1 the1. The workplace should be free from all sorts of disputes" nasty politics" controversies and blame games which go a long way in

demotivating an employee and prompting him to look for a change. ealthy

competition is essential at the workplace to encourage the employees to perform up

to the mark every time.

After Effect6 of $ Poor E123oyee Retention

E123oyee6 $re the 1$:or $66et6 of $ny or#$ni;$tion. &n organi>ation cant survive if the

individuals are not focussed and serious about their work. The success and failure of any

23



organi>ation depend on the hard work put by the employees to achieve the targets of the

organi>ation. It is a common observation that employees who spend a good amount of time in theorgani>ation tend to know more about it and thus contribute effectively. They develop a sense of

loyalty towards their workplace and strive hard to live up to the e#pectations of the management.

There are several reasons as to why an employee decides to move on. -onetary dissatisfaction" anegative environment at the workplace" dirty politics" complicated hierarchies" lack of

challenging work" poor supervision being the major ones.

In the current 6cen$rio $31o6t $33 the 3e$din# or#$ni;$tion6 $re f$cin# the 2ro93e1 of

e123oyee retention. -anagement somehow fails to stop the high potential employees and thus

face the negative conseuences. It becomes really difficult for the organi>ation to retain theemployees who decide to uit for a better opportunity.

0et us go through some of the $fter effect6 of 2oor e123oyee retention+

E5ery or#$ni;$tion in5e6t6 it6 ti1e $nd 1oney in tr$inin# $ ne4 :oinee to 9rin#

hi1 $t 2$r 4ith the e<i6tin# e123oyee6. The organi>ation is at a complete loss whenthe employees uit all of a sudden. iring needs to be done all over again and stillthere is no surety whether the new joinee would be apt for the profile or notG /ne

wrong person hired and the output of the entire team and eventually the organi>ation

goes for a toss.

E123oyee6 4ho 62end $ con6ider$93e $1ount of ti1e in $ny or#$ni;$tion 8no4 it

in $nd out $nd thu6 c$n 2erfor1 9etter. They are well familiar with the company

policies and adjustment is never a problem. %mployees who come and go find it verydifficult to settle down in a new environment and are thus always in a state of

dilemma. They are not able to perform up to their potential and eventually the work

and the organi>ation suffers.

Indi5idu$36 4ho h$5e the h$9it of ch$n#in# :o96 fre=uent3y ne5er #et $tt$ched to

$ny 2$rticu3$r or#$ni;$tion. They just treat the organi>ation as a mere source of

earning money. They are never serious about their work and fail to accomplish the

tasks within the desired time frame. It hardly matters to them whether theorgani>ation is performing well or notG In cases of poor retention policies" employees

are just not bothered about the reputation of their office and avoid taking initiative to

do something new. The employees who are there for a long time in the organi>ation

are trustworthy and the management can rely on them anytime.

When indi5idu$36 3e$5e $ny or#$ni;$tion" they $re 1ore 3i8e3y to :oin the

co12etitor6. )ometimes they tend to take confidential data along with them to create

an impression in their new organi>ation. This way the plans of the organi>ation getleaked even before implementation and they fail to do anything great. %mployees

must not share any information with an e#ternal party in any manner what so ever.

An or#$ni;$tion c$n?t 2erfor1 4e33 if the e123oyee6 62e$8 ne#$ti5e $9out it . It is

essential to have a group of loyalists who play an important role in furthering the

brand image of the company.

24



E123oyee6 4or8in# 4ith $n or#$ni;$tion for $ 3on# ti1e ne5er 9$d1outh it $nd

$re 6o1e4h$t e1otion$33y $tt$ched to it. *eople leaving in a short span alwaysspeak ill about their previous organi>ations. The loyalty factor is almost >ero and no

one is ready to take ownership of work.

The , department must take the initiative to discuss the several issues disturbing an employee

and try to sort it out as soon as possible. &n organi>ation must work hard towards retaining thosewho really are important for the organi>ation.

OMPANY?S PROFILE

GUPTA H% O!ERSEAS

E6t$93i6hed in ,BCD

RANGE OF PRO(UTS

igh fashion footwear (boots" shoes J bags!

PRO(UTION APAITY

=.5 million *airs in a year

25



Hnit I+ 8<<< pairs a day Hnit II+ 8<<< pairs a day

TEHNIAL STRENGTH

)tate of art facility euipped with ultra4modern machines"

Collections designed by leading Italian J )panish design houses"

,J$ focus on authentic designs" finish J sturdiness"

In4house permanent Italian technicians"

%uipped with lab for Clark shoes (HF!.

PRIMARY OMPETITI!E A(!ANTAGES

%#perienced ,J$ department (certified by $)I," ministry of scienceJ technology" govt. of

India K first footwear unit in India to get this certification!

0arge production capacity

,eliability J transparency

SOIAL RESPONSI'ILITY

In house training institute in collaboration with I0J1) (supported by -inistry of ,ural

$evelopment" govt. of India!. &imed at providing employment J skills to people of village

settlement and B*0 category.

%uipped with =<< F )olar *ower Aenerating )ystem. )aving app#. 5<<<< kg. C/7 emission

per year.

INTERNATIONAL AFFILIATIONS

26



1irst I)/ 6<<= )hoe Company in the region )& 5<<<.

AWAR(S AN( ARE(ITATIONS

By *rovincial govt.

)tate %#port &ward =665

'Y OUNIL OF LEATHER EPORTS" IN(IA

Certificate of merit 7<<=.

Best *erformance &ward 7<<;

Best $esign &ward 7<<9

Certificate of merit+

)&45<<< )ocial &ccountability 7<<3

'Y GO!T% OF IN(IA" MINISTRY OF FINANE

National &ward 7<<:(special recognition award!

INTERNATIONAL EHI'ITIONS

Aarda and -icam 1airs

IN(IA FRANHISEE > LIENSEE OF

-iss )i#ty )hoes J &ccessories" Italy

)T%N)" 1rance. (%#tensible sole!.

27



NEE( OF THE STU(Y

• It helps in maintaining the goodwill of the company when the attrition rates are low.

igher retention rates motivate potential employees to join the organi>ation.

• hen an employee leaves" he takes with him valuable knowledge about the company"

customers" current projects" and past history (sometimes to competitors!. /ften muchtime and money has been spent on the employee in e#pectation of a future return. hen

the employee leaves" the investment is not reali>ed. Therefore" to find the reasons behind

employee retention" I have undertaken this topic for research.

28



O'&ETI!ES OF THE STU(Y

• To understand the employee retention and satisfaction in general and of Aupta

/verseas *vt. 0td in particular.

• To study the reasons for attrition and measures that has to be taken by the

company to reduce the attrition.

29



RESEARH METHO(OLOGY

(ATA OLLETION+

There are two sources of data collection+

Pri1$ry d$t$ +

It is a fresh data which has been collected from the survey area throughE

Luestionnaire

Interview

Second$ry d$t$ +

It is the analysis of e#isting documents. It involves the study of various documents available in

the organi>ation and outside" which may contain information for the study.

ebsites

I will be using both the above methods to support my study.

SAMPLE AREA+

30



Aupta .C /verseas

SAMPLE SIE+

Luestionnaire of ;9 employees will be conducted of Aupta C /verseas.

PRESENTATION TOOLS+

I will be usingE

Bar Araphs

*ie chartsE to support my study.

HAPTER -Re5ie4 of Liter$ture

31



Retention 9e#in6 9efore d$y one Connie Chapman

%mployee orientation is a multi4stage process utili>ing both formal and informalactivities that help assist the employee to become part of the culture of any organi>ation"

including the library. & human resources program that includes well4planned processes

for recruitment" selection" orientation" sociali>ation and retention will help a library bemore competitive as librarians retire. *aying attention to these processes is increasingly

important as we enter the period in which the baby boomer generation is moving toward

retirement

EMPLOYEE RETENTIONA REAL TIME HALLENGES

IN GLO'AL WORK EN!IRONMENT(r% K% A2$rn$ R$o

%mployee retention is most critical issue facing corporate leaders as a result of the

shortage of skilled labor" economic growth and employee turnover. ,etaining employees

involves understanding the intrinsic motivators of them which many organi>ations unable

to identify. The reason is @Individuals differ greatly in this regard. & Company shoulde#ert some effort and undertake some analyses to determine the nonmonetary interests

and preferences of its key employees" and then attempt to meet these preferences in

action.@ In this conte#t organi>ations need to dig novel approaches to retain the most

effective manpower. Indian companies are lining up robust hiring plans" making India the

most lucrative country in the world for job seekers. ,etention strategies should not be

orchestrated in isolation but must form part of the overall strategies for strengthening the

32

http://www.emeraldinsight.com/search.htm?ct=all&st1=Connie+Chapman&fd1=aut




pull on the talent while this augurs well for employees" it means employers need to up the

ante on %mployee ,etention" one of the most critical issues organi>ations face today.

0ooking carefully into many organi>ations4,etention strategies are very competitive"

companies try to provide their best to retain the employees of their competitors. In this

conceptual paper the author has attempted to bring out employee retention approaches"

strategies for knowledge workforce" for achieving competitive advantage. The &uthor has

given some suggestion to improvise the procedure of employee retention.

&ccording to &o$n 'r$nnic8?6 )uccessful retention strategies can also translate into

dollars and cents on the balance sheet. It can cost as much as two times the annual salary

to replace an employee. & small decrease in employee turnover often results in a dramatic

increase to the companys bottom line. ,etention4savvy companies use these sevenstrategies to retain their top talent and" therefore" to improve their companys financial

and non4financial standing in the marketplace.

&ccording to Get Le6 McKeon?6 employee retention is effective employee retention is a

systematic effort by employers to create and foster an environment that encourages

current employees to remain employed by having policies and practices in place that

address their divers needs. &lso of concern are the costs of employee turnover (including

hiring costs productivity loss!.

Tr$inin# M$n$#er6 To I12ro5e E123oyee Retention)&F Fi33er*

The goal of virtually every business operating today is essentially the same+ to make

money. hen it comes to the fine art of turning a profit" there are as many different

factors that influence whether or not a company makes money as there are ways to make

it. &ll successful companies begin by hiring people who best fit the position" and in themodern4day world of business" a considerable amount of time" effort" or money is

invested in this endeavor. /nce a stellar candidate has been hired" however" it does the

company no good if" si# months down the road" they uit because the working

environment turned out not to be the right fit for them. %mployees may leave a company

for many different reasons" and many of those reasons freuently stem from a sense of

general dissatisfaction with the way they are being managed. &ll too often" this

33



important aspect of employee turnover gets the attention it deserves only after it becomes

a serious problem. Improving managers? skills by giving them retention4oriented

training is one of the most effective ways to reduce turnover" and it also has other benefits

that contribute to making the company more successful.

Kentucky Media %mployees are a valuable asset for any organi>ation because there

is a lot that is invested in acuiring and retaining them. &s such" most organi>ations

would like to retain their employees for longer to avoid the costs that may arise from the

need to hire" recruit and train. In order to reach this goal employers employ various

employee retention strategies. This is mainly because different employees have different

needs and they are motivated differently. Therefore" the challenging secret is the

acuisition of the right combination of strategies to enhance retention.

Kehr )-..*" e#plains that the implicit retention factors in spontaneous" e#pressive and

pleasurable behavior and can be divided into three variablesE power" achievement and

affiliation. *ower refers to dominance and social control. &chievement is when personal

standards of e#cellence are to be met or e#ceeded and affiliation refers to social

relationships which are established and intensified. Implicit and e#plicit retention factors

relate to different aspects of the person" but both are important determinants of behavior.

&ccording to O6ter$8er ),BBB*" the employee satisfaction and retention are considered

the Cornerstone for success of organi>ation. *ast study divided it into social" mental or

physical $imension. The grouping is based on social contacts at works" characteristics of

the work task or the physical and material circumstances associated with work. The

retention factors of the mental dimension are work characteristics" employees are

retaining by fle#ible tasks where they can use their knowledge and see the results of their

efforts. The social dimension refers to the contact employees have with other people" both

internal and e#ternal. The physical dimension consists of working conditions and pay. Inorder to retain employees the organi>ation need to gain information about the dynamics

that characteri>ed the motivation to work.

34

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!$n Kni22en9er# )-...*" suggested that employee become more loyal and stay in the

organi>ation when they identify themselves within a group and contribute to the

performance as a group. This suggestion relies on work performed by 0ocke and the goal

setting theory he developed. The goal is team performance and the individual feeling part

of the group. The focus of 0ocke was on the goal" but in order to reach the goal one must

associate oneself with the group and task

Fit;en; ),BB.* recogni>ed that only one factor is not responsible in management of

employee‟s retention" but there is several factors influenced in employee‟s retention

which need to manage congruently i.e. compensation J rewards" job security" training J

developments" supervisor support culture" work environment and organi>ation justice

etc.&ccordingly" organi>ation utili>es e#tensive range of human resource management

factors influence in employee commitment and retention This study also have objectiveto find out the factors which is more influence in employees retention" for this purpose

these factors are categori>ed into organi>ational factor i.e. supervisor support"

organi>ational justice" organi>ation image and work environment and uman resource

factors i.e. employee value match" training J development" remuneration J reward" job

security and employees promotion aspect.

&ccording to S1ith )-..,* money bring the workers in the organi>ation but not

necessary to keep them. &ccording to &shby and *ell money satisfies the employee but it

is not sufficient to retain the employee means it is insufficient factor. -oney is not

considered as primary retention factor (Brannick" =666!. -any organi>ation implement

very good employees retention strategy without offering high compensation or pay based

retention strategy (*feffer" =665!. In such circumstances a wide number of factors are

seems for successful retention of employees. The e#istence of other retention factors

cannot be ignored.

Ih6$n $nd N$ee1 )-..B*" indicated that *harmaceutical sales force rated pay and fringe

benefits as the most important retention factor which is supported by the findings of past

studies. In addition" it indicate that pay and fringe benefits is highly valued by the sales

force of all demographic Backgrounds. Its possible e#planation could be that pays and

35



fringe benefits enable salespersons to fulfil their physiological as well as esteem needs.

Thus" critical review of the current incentive schemes is reuired to make them more

effective to cater to needs of the sales in both multinational and local pharmaceutical

companies to retain their talent workers.

Compensation is considered the most important factor for attracting and retaining the

talent )Wi33i6"-...*. & fair wages are the foundation element of the implied and

contractual bond between employers and employees" the underlying supposition being

that monetary can persuade behavior (*arker and right" 7<<=!. /rgani>ations often

offer high pay packages i.e. stock options" special pay" retention pay" gain share pay"

performance base pay and bonus etc. for attraction and retention of talented employees of

the market.

Wi33i$16 $nd (reher ),BB-*" wages is the key factor influence in the employee

attraction and retention" and play important role in the recruitment process. ighhouse et

al" (=666! recommend that only pay is not sufficient to retain the employees. e argues

that low pay package will drive workers out the organi>ation but it is not necessary that

high pay package bring and keep the workers in the organi>ation. Hltimately" the workers

stay in the organi>ation due to others factors i.e. work environment" co4workers behavior

and supervisor support etc. which compel the employee to retain in the organi>ation.

&ccording to W$38er )-..,*" compensation offer recognition" but non4monetary forms of

recognition are also not ignored and important. ,ecognition from bosses" team members"

coworkers and customer enhance loyalty. %mployee participation in decision making and

influence in actions are also important.

&ccording to Noe ),BBB*" employees have perception to acuire new knowledge J skills

which they apply on the job and also share with other employees.,esearch studies found

that organi>ation often delay employee training program to determine that workers

personal value good matches with organi>ation culture or otherwise" therefore to peter out

the employee turnover intention.

36



&ccording to Go1e; et $3" ),BBJ!" training provides speciali>ed techniue and skills to

employee and also helps to rectify deficiencies in employee performance" while

development provide the skills and abilities to employee which will need the organi>ation

in future. $evelopment of skill consists of improving interpersonal communication"

technological knowledge" problem solving and basic literacy etc

G$r# > R$6to#i )-../* e#plain that in today‟s competitive environment feedback is

essential for organi>ations to give and receive from employees and the more knowledge

the employee learn the more he or she will perform and meet the global challenges of themarket place.

'i6ho2 ),BBC*" survey on training found that established" larger" manufacturing and

unioni>ed firms have tend to provide training to employee as did multi established firms

with fle#ible production approach or high performance. ,esearch study finds that" larger

companies" high performance establishment and those organi>ations which spend more

physical resources were usually more probably to retain their talent.

Storey $nd Si66on ),BB*" recommend that training is sign of organi>ation commitment

to employees. Training also reflects organi>ation strategy that is based on value adding

rather than cost lowering. 0eading firms of the industry recogni>e that comprehensive

range of training" skill and career development is the key factor of attraction and retention

the form of fle#ible" sophisticated and technological employees that firms strategy to

succeed in the computeri>ed economy

37



HAPTER

38



(ATA ANALYSIS

AN(

INTERPRETATION

The Preference of the e123oyee6" if they 3oo8 for $ ne4 :o9 in the ne4

co12$ny%

39



0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

Preference for a new job

!"e#e"en$e #o" a ne% &o'

Inter2ret$tion+

The ,-%J employees here at Aupta /verseas *vt. 0td. feels that c$reer 23$n could be an optionfor switching their job. hereas -D%J employees feels that f3e<i93e ti1in#6 can make them

switch their job.

/n the other hand ;<.<<M each thinks that Improvement in position and Increase in other

benefits can be a preference for a new job.

Ho4 1uch the e123oyee6 $re 6$ti6fied 4or8in# in Gu2t$ O5er6e$6%

40



(e"y )i*h +ai"ly Eno,*h (e"y Less -ot t ll

0.00

10.00

20.00

30.00

40.00

50.00

60.00

Satisfaction Level

/atis#a$tion Lev

Inter2ret$tion+

There are only very few employees in Aupta /verseas *vt. 0td whose satisfaction level is veryhigh and they constitute to only 7.9<M.

9<M of the employees are fairly satisfied with the job.

;9M of the employees are very less satisfied.

=7.9<M of the employees are not at all satisfied with the job" and are looking out for the some

other job.

Le$5in# the 2re6ent :o9" 4i33 #i5e you $ 6$ti6fied $nd $ 9etter :o9%

41



0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

40.00

45.00

/%it$hin* the &o'

INTERPRETATION+

There are large number of people who think that leaving the present job will give them a satisfied

and a better job.

9M are very high

87.9M think that they will fairly get a satisfied job

;:.9M feel moderate moderate

=9M feel that they will not get a better job

Are you 9ein# re4$rded $nd reco#ni;ed for your $chie5e1ent6%

42



yes no dont no%0.00

10.00

20.00

30.00

40.00

50.00

60.00

"e%a"ded and "e$o*nied

#o" yo," a$hievement

INTERPRETATION+

There are large numbers of people who think that they are not rewarded and recogni>ed for their

achievement.

8:.9M feel that they are rewarded for their achievement.

9<M feel that they are not rewarded for their achievement.

7.9M dont know.

I6 it nece66$ry th$t $22reci$tion 9e 1$de for 4or8 done 9y your co4or8er6

$nd 6u2er5i6or6@

43



yes no0.00

10.00

20.00

30.00

40.00

50.00

60.00

70.00

80.00

90.00

100.00

app"e$iation 'e made #o"

%o" done 'y yo," $o

%o"e"s and s,pe"viso"s

INTERPRETATION+

There are large number of employees who think that their work should be appreciated by their

co4workers and supervisors.

5:.9M feels that their work should be appreciated

=7.9M feels their work should not be appreciated

44



F$ci3itie6 you fee3 th$t $re 6$ti6fied 2ro5ided 9y the or#$ni;$tion

$a#ete"ia t"anspo"t $o"po"ate se"vi$e0.00

10.00

20.00

30.00

40.00

50.00

60.00

70.00

satis#a$to"y #a$ilities

p"ovided

INTERPRETATION+

There are large numbers of employees who think that transport services are highly satisfied and

saves time" and also increases their efficiencies.

;:.9M are satisfied with cafeteria services

37.9M are satisfied with transport services

45



I6 the or#$ni;$tion $93e to ret$in their e123oyee6

yes no0.00

10.00

20.00

30.00

40.00

50.00

60.00

70.00

80.00

a"e they a'le to "etain

thei" employees

INTERPRETATION+

There are large numbers of employees who think that Aupta C /verseas is able to retain their

employees.

:9M think they can retain their employees

79M think they cannot retain their employees

I6 it difficu3t to ret$in the e123oyee6

46



0.00

10.00

20.00

30.00

40.00

50.0060.00

70.00

80.00

90.00

di$,lties to "etain

employees

INTERPRETATION+

0arge number of employees thinks that high salaries of competitors and unhealthy competition in

the market" toghther is making it difficult for the organi>ation to retain their employees.

Individually they speak for each category as"

=:.9M think due to high salaries of competitors

7.9M think due to unhealthy competition

5<M think both the reasons

47



HAPTER

FIN(INGS AN(

SUGGESTIONS

48



FIN(INGS

:;.8M of the respondents are in the age group between ;3 and 89.

69.8M of the respondents are male.

33.=M of the respondents agree that corporate communication is clear

6<M of the respondents find the environment very friendly.

=<<M of the respondents are happy of the timely pay of Aupta .C /verseas.

9<Mof the employees find themselves fairly satisfied with the job.

=7.9M of the respondents are looking out for a new job.

=9M of the respondents feels that they will not get a better job elsewhere.

9<M of the respondents feel that they are rewarded properly for their work.

-ore than 3<M of the respondents are happy with the transport facility provided by

Aupta .C /verseas.

%mployees have given highest weighting to comfortableness in working hours and arenot satisfied with annual increments.

SUGGESTIONSREOMMEN(ATIONS

49



• ob satisfaction can be improved by improving working condition through tools reuired

by the employees like fle#ible time and training.

• $epartment wise feedback has to be taken on challenges and frustations for employeeretention.

• )upervisors have to communicate at regular intervals (weekly once! for solving employee

complaints" problems and to manage stress.

• %nvironment has to be improved by introducing music at work place.

• Aupta .C /verseas must also create a total reward structure that includes more than

compensation.

50



HAPTER J

ONLUSIONS

51



%mployee retention is really an element of a more general concern that might be best termed

skills management"Oi.e." everything that has to do with recruiting" maintaining and

developing the necessary mi# and levels of skill reuired to achieve organi>ational and businessobjectives.

hen a business loses employees" it loses skills. The magnitude and nature of that skills loss isan important management issue" affecting productivity" product and service uality" profitability

and a host of other key concerns. The cost of replacing workers can be high" the problemsassociated with finding and training new employees can be considerable" and the specific

workplace4acuired skills and knowledge people walk away with can take years to replace. It is

therefore within this broader notion of skills management that employee retention assumes suchgreat importance.

REFERENES

52



,etention begins before day one Connie Chapman

• %-*0/P%% ,%T%NTI/N4& ,%&0 TI-% C&00%NA%)

IN A0/B&0 /,F %NQI,/N-%NT(r% K% A2$rn$ R$o

• &o$n 'r$nnic8?6 )uccessful retention strategies can also translate into dollars and centson the balance sheet.

• Get Le6 McKeon?6 employee retention is effective employee retention is a systematic

effort

Training -anagers To Improve %mployee ,etention)&F Fi33er*

• Kentucky Media %mployees are a valuable asset for any organi>ation because there

is a lot that is invested in acuiring and retaining them.

• Kehr )-..*" e#plains that the implicit retention factors in spontaneous" e#pressive and

pleasurable behavior

• O6ter$8er ),BBB*" the employee satisfaction and retention are considered the

Cornerstone for success of organi>ation.

• !$n Kni22en9er# )-...*" suggested that employee become more loyal and stay in the

organi>ation

• Fit;en; ),BB.* recogni>ed that only one factor is not responsible in management of

employee‟s retention

• S1ith )-..,* money bring the workers in the organi>ation but not necessary to keep

them.

• Ih6$n $nd N$ee1 )-..B*" indicated that *harmaceutical sales force rated pay and fringe

benefits

•

Compensation is considered the most important factor for attracting and retaining thetalent )Wi33i6"-...*.

• Wi33i$16 $nd (reher ),BB-*" wages is the key factor influence in the employee

attraction and retention" and play important role in the recruitment process.

• W$38er )-..,*" compensation offer recognition" but non4monetary forms of recognition

are also not ignored and important.

• Noe ),BBB*" employees have perception to acuire new knowledge J skills

Go1e; et $3" ),BBJ!" training provides speciali>ed techniue and skills to employee and also

helps to rectify deficiencies in employee performance

G$r# > R$6to#i )-../* e#plain that in today‟s competitive environment feedback is essential

for organi>ations

'i6ho2 ),BBC*" survey on training found that established" larger" manufacturing and unioni>ed

firms

53







Storey $nd Si66on ),BB*" recommend that training is sign of organi>ation commitment to

employees.

54



'I'LIOGRAPHY

'OOKS+

uman ,esource -anagement( C.B.-emoriaR!

,esearch methodology (C.,.Fothari!

Managing Employee Retention (Improving Human Performance .

WE'SITES+

www.Scribd.com

www.ssrn.com

www.employeeretentionstrategies.com

www.managementstudyguide.com

www.humanresources.about.com

www.amazon.com

www.reviewsnap.com

UESTIONNAIRE

55

https://www.google.co.in/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&cad=rja&sqi=2&ved=0CDcQFjAB&url=http%3A%2F%2Fwww.amazon.com%2FManaging-Employee-Retention-Accountability-Performance%2Fdp%2F0750674849&ei=qdOAUYW2PMHIrQfn74GIAw&usg=AFQjCNFuzrmBP6Jin6v2Anf1Uh80HQ2Dhg&sig2=-E9Lifz9ttUfbQDUIhDSfw&bvm=bv.45921128,d.bmk




http://www.scribd.com/

http://www.ssrn.com/

http://www.employeeretentionstrategies.com/

http://www.managementstudyguide.com/

http://www.humanresources.about.com/

http://www.amazon.com/

http://www.reviewsnap.com/


http://www.scribd.com/

http://www.ssrn.com/

http://www.employeeretentionstrategies.com/

http://www.managementstudyguide.com/

http://www.humanresources.about.com/

http://www.amazon.com/

http://www.reviewsnap.com/



I"&kanksha 0avania of B.Com(IIIrd yr! has conducted this uestionnaire"as a part

of my project report.The main purpose of this uestionnaire is to know the average

result of employee retention in AH*T& C /Q%,)%&).

N$1e of the e123oyee )o2tion$3*%

N$1e of the or#$ni;$tion )o2tion$3*

(e6i#n$tion )o2tion$3*%

A#e #rou2+

(a! =5479 (b! 734;9 (c! ;3489

(d! 83499 (e! over 99

Gender+

(a! -ale (b! 1emale

,. If you 3oo8 for $ ne4 :o9" )in $ ne4 co12$ny* 4h$t 4i33 9e your 2reference@

(a! Career plan(b! 1le#ible timings

(c! No improvement in position (Increase in other benefits!

(d! Improvement in position

-% Ho4 1uch $re you 6$ti6fied 4ith the current :o9@

(a! Qery high (b!1airly enough (c! -oderate

(d! Qery less (e! Not at all

% To 4h$t e<tent do you fee3 th$t 3e$5in# the 2re6ent :o9 4i33 #i5e you $ 6$ti6fied :o9@

(a! Qery high (b! 1airly enough (c!-oderate

(d!Qery less (e! Not at all

% (o you h$5e re4$rd6 $nd reco#nition for your $chie5e1ent6@

(a! Pes (b! No

If no" please specify the reason SSSSSSSSSS..

56



J% I6 it nece66$ry th$t $22reci$tion 9e 1$de for 4or8 done 9y your co4or8er6 $nd

6u2er5i6or6@

(a! Pes (b! No

*lease specify the reason to motivate themSSSSSSSSS

/. Which $re the 6$ti6f$ctory f$ci3itie6 2ro5ided to you 9y the or#$ni;$tion@

(a! Cafeteria

(b! Transport

(c! Corporate service

D. Wh$t i6 your co12$ny?6 $ttrition r$te@

(a! =<M4;<M

(b! 8<M43<M(c! :<M4=<<M

C% Which 3e5e3 of the or#$ni;$tion hier$rchy re6u3t6 in 3e$5in# their :o96 due to 5$riou6

re$6on6@

(a! igher level

(b! -iddle level

(c! 0ower level

B% I6 Gu2t$ o5er6e$6 $93e to ret$in their e123oyee6@

(a! Pes (b! No

,.% Wh$t $re the difficu3tie6 you f$ce to ret$in your e123oyee6@

(a! igh salaries of competitors

(b! Hnhealthy competition

1a study on employee retention of workers with reference to gupta (1) (2) main (1)

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