Employee Retention

Employee Retention

A Project report submitted in partial fulfillment

of the requirement for the award of the degree

of

‘Bachelors of Management Studies’

Mumbai University

Submitted by:

VARUN.A.CHHIBBER

Roll no. 7720

SEMESTER: V

Parle Tilak Vidyalaya Association’s

Mulund College of Commerce

2005 – 2006University of Mumbai

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Employee Retention

Declaration

I, Varun.A.Chhibber , a student of Mulund College of Commerce

T.Y.BMS (semester Vth) herby declare that I have completed this project

on “Employee Retention” in the academic year 2005-2006. The

information submitted is true and original to the best of my knowledge

Signature of student

(Varun.A.Chhibber)

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Employee Retention

Certificate

I MISS.ROOPALI.MANDLEKAR hereby certify that

Varun.A.Chhibber a student of Mulund College of Commerce

TYBMS (Semester 5) has completed the project titled Employee

Retention in the academic year 2005-2006. The information

submitted is true and original to the best of knowledge

Signature of the Project Signature of Principal of

the

Coordinator College/Institution

Signature of the Examiner

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Employee Retention

Acknowledgement

I take this opportunity with great pleasure to present before you

this project on “Employee Retention” which is a result of

cooperation, hard work and good wishes of many people. I would like

to thank my with deep sense my project guide & BMS

Coordinator Miss.Roopali Mandlekar for her kind

appreciation, friendly guidance, constant encouragement, involvement

in my project work and for her valued guidance throughout my study.

I owe the debt to our Principal Mr. D.G Deshpande for

giving me an opportunity to present a creative outcome in form of a

project.

I express my sincere thanks to the library staff who have provided me

right information and study material at the right time. No words can

adequately express my debt of gratitude to all my BMS friends for their

continuous support while the work was in process. I must also put on

record my gratitude to my Institute Mulund College of Commerce for all

that I learnt as a student. I also wish to thank my Family Members

whose efforts and creativity helped me in giving the final structure to

the project.

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Employee Retention

Lastly needless to say I am also thankful to all those seen and

unseen hands and minds, which have been of direct or indirect, help in

the completion of my project.

Executive Summary

The project begins with the significance of Human Resource

Management in today’s corporate world. It signifies the increasing

importance of HRM.

Then it leads over to the employee turn over problem faced by the

companies. It highlights the resource for the high turnover rate and the

cost that this act adds up to the company.

Then the project highlights the significance of employee retention to

overcome the employee turnover problem.

The project briefly covers the various areas where employee retention

strategies are implemented namely recruitment, training and

development, work culture, salary negotiation, compensation

management, rewards and recognition and exit interviews.

And at the end the report finally highlights various aspects which are

to be considered for improvement of employee retention strategies.

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Employee Retention

Objective of Study

1) To know the importance attached to employee retention in

today’s corporate world.

2) Strategies employed by the company to improvise on the rate of

employee turnover rates.

3) General problems faced by the companies while practicing

employee retention.

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Employee Retention

Scope of study

This project has been prepared with an intention to make one realize

and understand the significance of employee retention.

Employee retention has become a major goal of the organization.

Initially recruitment was only talked about, but now in today’s

corporate world, recruitment has become just a part of HRM. Major

importance is attached to employee retention.

This project not only aims to present the theoretical aspects, but the

practical aspects as well. A survey has been done to understand the

strategies followed by various organizations to ensure Employee

Retention.

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Employee Retention

Methodology

The information provided in this project has been collected from

various sources. These include major information’s downloaded from

various articles through the Internet. And the matter was also acquired

from the book “Human Resource and Personal Management- 3 edition”

written by K. Aswathappa.

The information collected has been diluted and presented in a very

simple and lucid manner. This was done with an objective that even a

layman should be able to understand the topics that I have dealt with.

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Index

Sr.No Contents Page No

1. Introduction 2. Significance of HRM in Corporate World3. Employee Turnover

a) Measuring Employee Turnoverb) Why do People Leave Organizations???c) When does Employee Turnover Become

Problematic???4. Employee Retention5. Recruitment, Selection & Induction6. Remuneration Negotiation7. Work Environment8. Significance of Training & Development9. Performance Appraisal10. Compensation Management & Reward11. Exit Interviews12. Questionnaire13. Analysis of Survey14. Managing IT Retention & Turnover

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15. Employee Retention Problems faced by Call Centers

16. Retention Stratagem 17. Conclusion18. Bibliography & Webliography

Introduction

Employee Retention

Employee retention is not a question or debate but rather it’s the

most important thing for any concern if its serious in long term

business.

What’s a business without people and how is it going to work if the

required people aren’t there. The only and most important resource for

any company is its people. Some people might have this

misconception that this resource is less important than the other

resources like money, materials and machinery. But we have all

learned from all successful companies around the world that their

success was and is due the most important M of all the other M’s and

that’s the manpower.

Well if we all know that people are the most important resource

then why do we have this question that is Employee Retention required

or not. I guess this question arised all around the world because of a

very high figure of employee turnover.

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Employee Retention

So if we are able to stop this or at least know the answer to why

there is such a high employee turnout we would know what it takes to

retain the required people. I would like to put a lot of stress in the word

required. This word needs to be understood by lot of people and

especially the people in the top management believe who believe that

there is not much difference in manpower requirement and material

requirement and the irony is that in the later case, more emphasis is

given to details & specifications. The reason I think why they are very

particular about material specifications is because they can calculate

the losses if they do not get the required material.

Unfortunately and sadly they are unable to figure out the deep

negative impact if they do not get the required people.

So how do we specify the required people? I think we can start

with answering a few questions. What is the minimum desired output?

Is it long term or short term? Are we capable of meeting his

expectations or rather that his takeaway is above or below market

rates? Are we ready to spend time and energy in grooming him and

including him in the family? Yes, I believe that the employees of a

company are like a family and it would benefit a lot of companies if

they too agree. And the most important of all that, are we willing to be

transparent enough for him to understand the company and its people.

Are we willing to share with him the companies’ clear vision and

mission and the long-term company strategies.

With the answers to the above questions we would be in a

position to specify the required people to the HR dept. And with the

present tremendous gap between demand and supply the HR dept.

would not find it very difficult to find the required and right person.

Well that’s assuming that the HR dept. is competent enough to match

the candidate’s long term career aspirations to the companies’

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Employee Retention

requirement. Well that can be a very tricky and difficult thing for the

HR dept. But we all know that the HR depts. are trained and equipped

with lot of tools to know the career aspirations of a candidate.

Now that we have the right and required person there is no

doubt that we need to retain him. We need to know our Organization

and the type it belongs to.

There are three types of organizations

The Organizations that:

• Change by themselves

• Change, when told by others

• Do not change even when told by others.

The excellent organizations belong to the category of ‘change by

themselves”.

They have a clear vision of where they want to be in future & all their

actions are aimed towards it.

They govern their own future and not are merely victims of

circumstances.

Also these Organizations are low profile, have a unified theory

about transformation and are holistic in approach. They focus on

strengthening fundamentals and mobilize the entire organization with

people aligned.

These Organizations have their concepts right regarding people

development. These Organizations encourage People to accept

ownership and responsibility to solve problems. In these organizations

people are empowered to act and openly share knowledge and

experience.

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General Electric(GE) is one of the finest examples

worldwide and back home we have the much talked about

Infosys & Wipro

Significance of Human Resource

Management in Corporate World

HR has always been seen as the “cost centre” of an organization.

However studies reveal that in today’s business world, HR practices

does churn revenues. It’s all about how you invest in your human

capital.

Studies suggest that not only is Human resource the most valued

asset of a company, but there also proof that investing in HR does

produce returns.

“Employee-involvement practices such as information sharing, skills

training rewards programs, and empowerment efforts -- all of which fall

squarely into Hr’s domain -- show a significant bottom-line return”.

Companies who have followed the employee-involvement practices

have produced a 13 percent higher return on equity.

Thus it’s obvious that employees form an integral part. How do

you select and retain talented people? How can you create an

environment, which helps people thrive at work? Many such questions

form an integral part of a company’s HR policy. Increased global

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competitiveness has given way to uncertainty, which is impacting the

environment within an organization. This is where the role of a HR

manager is becoming even more crucial.

Traditionally the HR department has played dual roles—an

operational function (such as recruitment, personnel and performance

management, employee relations and statutory compliance’s) and a

human developmental role (comprising people development, culture

and organization building). Both these functions have always been

considered “soft” roles.

Today the equation has changed. The HR department plays a key role

in the company’s overall business strategy. HR managers have a clear

understanding of the business, the organization, its vision, mission,

values and are given ample freedom to bring processes in place to get

people aligned to these values and goals.

The focus of HR today is to create an agile organization, which can

innovate rapidly and exceed client expectations constantly, rather than

just managing people.

The basic trait required in an efficient HR manager is his ability

to gauge the strengths of his employees and put them to best use. Be

a supportive manager and create an environment where employees

feel assured that they can fall back for support in difficult situations.

He should be able to delegate responsibility, while always retaining the

accountability. Lastly, personal touch plays an important factor for

creating a sense of belonging with the company. The person should be

very effective at understanding people, their skill sets and emotional

intelligence which will help in goal setting and finally achieving the

desired results.

Some key points to remember

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Employee Retention

The organization has to ensure that communication is timely and open

to retain employee trust. This also means that there is continuous

feedback from employees, which helps in better productivity.

There has to be a common theme built relating to vision, participation,

control, measurement of work processes, communication and

commitment. Experts point out that if you create an environment

where people truly participate. You don’t need control. The employees

do what needs to be done.

Employee Turnover

Measuring employee turnover

Most organizations simply track their crude turnover rates on a month

by month or year by year basis. The formula is simply:

Total number of leavers over period x 100

Average total number employed over period

The total figure includes all leavers, even people who left involuntarily

due to dismissal, redundancy or retirement. It also makes no

distinction between functional (i.e.-beneficial) turnover and that, which

is dysfunctional.

Crude turnover figures are used by all the major surveys of employee

turnover. So they are necessary for effective benchmarking purposes.

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Employee Retention

However, it is also useful to calculate a separate figure for voluntary

turnover and to consider some of the more complex employee

turnover indices, which take account of characteristics such as

seniority and experience.

Costing employee turnover

Estimating the cost of employee turnover is a useful starting

point when seeking to persuade line managers and Finance Directors

that money needs to be invested in order to improve retention rates.

At present surprisingly few (7%) HR departments calculate the costs of

turnover.

It is possible to compute a ‘not less than’ figure very easily by

working out what it costs on average to replace a leaver with a new

starter in each of the major employment categories. This figure can

then be multiplied by the crude turnover rate for that staff group to

calculate the total annual cost of turnover.

The major categories of costs to take account of are:

• Administration of the resignation

• Recruitment costs

• Selection costs

• Cost of covering during the period in which there is a vacancy

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• Administration of the recruitment and selection process

• Induction training for the new employee.

Many of these costs consist of management or administrative staff’s

time (opportunity costs) but direct costs can also be substantial where

advertisements, agencies or assessment centers are used in the

recruitment process.

More complex approaches to turnover costing give a more accurate

and invariably higher estimate of total costs. A widely quoted method

involves estimating the relative productivity of new employees during

their first week’s or months in a role and that of resigns during the

period that they are working their notice

Why Do People Leave Organizations?

Employees resign for many different reasons.

Sometimes it is the attraction of a new job or

The prospect of a period outside the workforce which ‘pulls’

them, on other occasions they are ‘pushed’ due to

dissatisfaction in their present jobs to seek alternative

employment.

Sometimes it is mixtures of both pull and push factors.

For a fourth group reasons for leaving are entirely explained by

domestic circumstances outside the control of any employer, as

is the case when someone relocates with their spouse or partner.

Recent research strongly suggests that push factors are a great

deal more significant in most resignations than most managers

appreciate. It is relatively rare for people to leave jobs in which they

are happy, even when offered higher pay elsewhere. Most staff has a

preference for stability.

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It is important to appreciate that the reason people give for their

resignations are frequently untrue or only partially true. The use of exit

interviews is widespread yet they are notoriously unreliable,

particularly when conducted by someone who may later be asked to

write a reference for the departing employee. They are reluctant to

voice criticism of their managers, colleagues or the organization

generally, preferring to give some less contentious reason for their

departure.

Recent research highlights the importance of front line managers

and how their behaviour relates directly to the levels of commitment,

motivation and satisfaction reported by employees.

A poor relationship with a line manger can be an important reason for

individuals leaving their organization, but its significance can be

masked as a result of the difficulties associated with exit interviews

mentioned above. A lack of training and developmental opportunities is

also major reason voluntary turnover. On an average, 44% of

respondents cited ‘promotion outside the organization’ as a main

cause of labour turnover, 40°/o highlighted ‘change of career’ and 37%

‘lack of career of developmental opportunities.

Early leaving

In the high turnover industries in particular, a great deal of employee

turnover consists of people resigning or being dismissed in the first few

months employment. Research shows that during 2003, 2O% of

leavers left between 0 and 6 months’ service. Even when people stay

for a year or more is often the case that the decision to leave sooner

rather than later is effectively taken in the first weeks of employment.

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Poor recruitment and selection decisions, both on the part of the

employee and employer, are usually to blame, along with poorly

designed or non-existent induction programs.

Expectations are often raised too high during the recruitment

process leading people to compete for and subsequently to accept jobs

for which they are in truth unsuited. Organizations do this in order to

ensure that they fill their vacancies with sufficient numbers of well-

qualified people as quickly as possible. However, over the longer term

the practice is counter-productive as it leads to costly, avoidable

turnover and the development of a poor reputation in local labour

markets.

When Does Employee Turnover Become

Problematic?

There is no set level of employee turnover above which effects

on the employing organization becomes damaging. Everything

depends on the type of labour markets in which the company

competes. Where it is relatively easy to find and train new employees

quickly and at relatively little cost (i.e. where the labour market is

loose), it is possible to sustain high quality levels of service provision

despite having a high turnover rate. By contrast, where skills are

relatively scarce, where recruitment is costly or where it takes several

weeks to fill a vacancy, turnover is likely to be problematic from a

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management point of view. This is especially true of situations in which

you are losing staff to direct competitors or where customers have

developed relationships with individual employees as is the case in

many professional services organizations.

Some employee turnover positively benefits organizations. This

happens whenever a more effective employee replaces a poor

performer, and can happen when a senior retirement allows the

promotion or acquisition of welcome ‘fresh blood’. Moderate levels of

staff turnover can also help to reduce staff costs in organizations

where business levels are unpredictable month on month. In such

situations when business is slack it is straightforward to hold off filling

recently created vacancies for some weeks.

Employee Retention

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Retaining Top Talent in a Competitive Market Successful

Companies Develop Integrated Retention Programs to Keep

Top Talent from Leaving for the Competition

With business booming, it’s a sellers market for job seekers. For

company HR departments, retention of key employees is more

important than ever, as tempting offers from competitors seeking to

correct their own labour shortage increases the likelihood of key

employees heading out for greener pastures. So how can companies

keep employees happy and retention rates high?

Research says that top talents in organizations cannot be

retained merely by high salary and a wealth of perks. They demand

more intangible benefits — stimulating work, flexible career options,

and a corporate culture which values their work. As experienced

consultants in the area of Talent Retention, we offer these basic pillars

of success for companies in any industry:

Employ competency-based recruiting to improve selection

effectiveness and increase employee retention.

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The company should identify the following benefits of recruiting

candidates based on their competencies: improved accuracy in

selecting the best candidates, better person-job fit, reduced turnover,

lower hiring costs, higher levels of productivity and contribution.

Offer an attractive benefits package.

Talented employees are highly marketable and almost always

have advanced degrees. While salary and benefits cannot substitute

for deficiencies in other areas, companies must also show their

appreciation for key employees contributions with substantial

compensation packages. Like health care benefits in the industry, an

employee stock purchase plan, and one of the largest corporate-

sponsored day-care centers in the country.

Establish a corporate culture that emphasizes knowledge

sharing and employee feedback.

Employees value a workplace in which their input is encouraged

and appreciated. An open door policy encourages employees at all

levels to ask questions, contribute ideas and resolve issues. This

sharing atmosphere gives everyone a voice in creating the type of

corporate culture in which they would like to work.

Provide opportunities to explore different positions within the

company

Here employees participate in different types of activities within

their field of interest, new hires can explore their strengths and

interest areas before selecting a job that best suits them. The variety

of assignments also benefits new employees by giving them an

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opportunity to learn more about the company’s diversity develop a

company contact network and demonstrate their research capabilities

to a variety of employees.

Leading companies look at talent retention as an integrated process,

not as isolated events.

Companies that recognize the importance of long-term, dedicated

employees begin the retention process during recruiting and embed

retention practices in career path and employee development and

processes.

Today’s workers are no longer inclined to stay at one company for the

duration of their careers. The most talented professionals are more

likely to be courted by other businesses, and the effects of turnover

can be costly. The time and money it takes to recruit, rehire and retain

can quickly cut into a firm’s bottom line.

Hiring smart is the first step to developing a loyal, motivated

workforce and keeping turnover at a minimum. Other factors, such as

competitive compensation and creating an employee-friendly work

environment also play a role. A study commissioned by our firm among

executives at the nation’s 1000 largest companies found that, aside

from salary, job applicants inquire just as frequently about corporate

culture as they do other benefits. The implication is clear: The more

enriching your work environment, the more likely are to retain a staff

of satisfied, productive employees.

Improving employee retention

• Give prospective employees a ‘realistic job preview’ at the

recruitment stage. Take care not to raise expectations only to dash

them later.

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• Make line managers accountable for staff turnover in their teams.

Reward managers whose record at keeping people is good by including

the subject in appraisals,

• Maximize opportunities for individual employees to develop their

skills and move on in their careers

• Ensure wherever possible that employees have a ‘voice through

consultative bodies, regular appraisals, and attitude surveys and

grievance systems.

• Wherever possible accommodate individual preferences on working

hours. Be as flexible as possible in the allocation of shifts.

• Provide as much job security as possible. Employees who are made

to feel that their jobs are precarious may put a great deal of effort in to

impress

• Bend over backwards to ensure that you do not and are never seen

to discriminate against employees on any unfair grounds.

• Defend your organization against penetration by headhunters and

others seeking to poach your staff.

Recruitment, Selection & Induction

The human resources are the most important assets of an

organization. The success or failure of an organization is largely

dependent on the caliber of the people working therein. Without

positive and creative contributions from people, organizations cannot

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progress and prosper. In order to achieve the goals or the activities of

an organization, therefore, they need to recruit people with requisite

skills, qualifications and experience. While doing so, they have to keep

the present as well as the future requirements of the organization in

mind.

Recruitment is distinct from Employment and Selection. Once the

required number and kind of human resources are determined, the

management has to find the places where the required human

resources are/will be available and also find the means of attracting

them towards the organization before selecting suitable candidates for

jobs. All this process is generally known as recruitment. Some people

use the term “Recruitment” for employment. These two are not one

and the same. Recruitment is only one of the steps in the entire

employment process. Some others use the term recruitment for

selection. These are not the same either. Technically speaking, the

function of recruitment precedes the selection function and it includes

only finding, developing the sources of prospective employees and

attracting them to apply for jobs in an organization, whereas the

selection is the process of finding out the most suitable candidate to

the job out of the candidates attracted (i.e., recruited).

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Recruiting Smart

Finding and recruiting good people can be a challenge for any

company Therefore, it’s crucial to have a recruiting strategy in place.

Why are some recruitment’s successful while others are disastrous

failures? The mount of time, effort and money spent in the hiring

process very often comes to naught because hiring managers make

some inevitable mistakes. Yes, the recruitment process is more

complex than meets the eye, and it is this inability to understand the

subtle factors of the system that leads to hiring the wrong person,

which often becomes a calamitous situation for the company. Why is it

necessary for the recruitment process to be very focused? Finding out

whether the person is the “right fit” in the organization culturally is as

important as Testing his/her skill sets. Failure to identify the exact

company needs is one of the reasons that lead to wrong hiring. Adding

to this is the inability to test the exact skills of the candidate. At times

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Employee Retention

organizations hire out of desperation and consequently land up paying

the price of inducting a candidate who is not suitably qualified or

skilled to take care of the responsibilities. Blindly promoting from

within and hiring because a friend referred the candidate are the other

mistakes that are often repeated.

The CV of a person is in fact the most common blind spot as it

often exaggerates the truth and can be misleading in the selection

process. Furthermore, often it is the good communication skills of the

candidate that help him/her succeed in the interview without the

necessary domain knowledge or skill.

Rushed hiring can lead to overlooking of many factors. “One has to

check where The candidate comes from—from the perspective of

suitability to work in the new culture, which could be different from the

earlier organization: and from the perspective of ability to work in

teams, customer-facing skills, ability to work under pressure, etc,” Cost

effectiveness plays an important part too.

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Selection

Steps in Selection

The purpose of selection programme & technique is to choose

the most suitable candidate for a given job from among the

prospective employees. Selection procedures which employees

systematic & scientific methods that are reliable & valid can achieve

this objective & can also save cost. In order to achieve organizational

objectives effectively & efficiently, it is important to place the right

man on the right job at the right time at the right place. In order to

avoid the pitfalls of wrong selection & placement, it is necessary to

adopt the principal of scientific selection. The use of science &

systematic procedure in selection is essential for finding the right man

for the right job. A wrong man on a wrong job will mar the

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development & progress of the organization, whereas the right man on

right job will contribute to organizational growth.

A sound selection system based on scientific methods can

go a long way in establishing an image of impartiality & thus can help

to attract & retain the most qualified candidates for in/towards the

organization.

Induction

Introducing the new employee who is designated as a probationer to

the job, job location, surroundings, organization, organizational

surroundings, and various employees is the final step of employment

process. This process gains more significance as the rate of turnover is

high among new employees compared to that among senior

employees. This is mainly because of the problem of adjustment &

adaptability to the new surroundings & environment. Further absence

of information, lack of knowledge about the new environment, cultural

gap, behavioural variations, different levels of technology, variations in

the requirements of the job & the organization also disturb the new

employee. Further induction is essential as the newcomer may feel

insecure, shy, nervousness & disturbing. This situation leads to

instability & turnover. Hence, induction plays pivotal role in

acquainting the new employee to the new environment, company rules

& regulations.

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Employee Retention

Remuneration Negotiation

Salary negotiations are a critical step in the hiring process and also

attach a huge significance in retention of the employees. Candidates

with in-demand skill sets may already be evaluating other

opportunities by the time you make an offer, so its important to handle

this stage effectively. Following are some tips for successful salary

negotiations.

Act Quickly

Once you’ve selected the prospective hire, make the offer as soon as

possible. A delay can cause you to lose the best applicant.

Cautiously Evaluate the Employment Offer

Enter negotiations with a strong understanding of compensation

trends. The offer should be fair to the candidate and in line with

current standards in the industry and at your firm. Businesses that

can’t provide high starting salaries should consider offering other

incentives — such as stock options, profit sharing or extra time off.

Elucidate the Details

If possible, make the offer in person. This allows you to explain all

aspects of the salary and benefits package, and provides an

opportunity for the candidate to ask questions.

Provide Encouragement

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Employee Retention

When presenting an offer, be sure to highlight the reasons someone

would want to work at your company. Prospective employees are

interested in hearing about staff recognition and bonus programs,

advancement possibilities and unique aspects of the corporate culture.

Set a Time Frame

Give entry-level professionals a few days to consider the offer, and

more senior level candidates up to a week. Applicants who will need to

relocate may require additional time.

Know When to End Negotiations

When faced with a candidate who’s reluctant to accept an offer, try to

discover the source of the hesitation. Consider the potential impact of

any changes required to address these concerns or issues. For

example, providing a salary that exceeds someone’s potential

contributions can ultimately affect your firms overall compensation

scale. Likewise, persuading an applicant with serious reservations can

backfire if that individual has second thoughts after joining your

organization.

Maintain Communication

It’s important to stay in touch with the candidate after the offer is

accepted. Send relevant brochures about your company and

employment forms. Also, call the individual to make sure he or she has

all of the information needed for a successful start at your firm.

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Work Environment

The top career concern of employees today involves balancing

family and work demands — even above earning a competitive salary

according to a research study commissioned by our company.

Increasingly, employees are asking for corporate programs that reflect

a more flexible business environment. The challenge for businesses is

responding to these concerns without sacrificing productivity.

Following are some strategies followed by companies for

creating a friendly working environment.

Building a Worker-Friendly Reputation

Encourage staff to participate in developing solutions for enhancing

your company’s work environment. Solicit feedback from employees

by periodically conducting anonymous satisfaction surveys. Ask not

only for improvements they would like to see but also practical ways of

implementing these suggestions

Publicizing Programs

Accentuating out those aspects of your business that most

Appeal to job candidates. Look for areas in which your company excels

and emphasize them when you interview applicants. For example, if

your firm is small, you may have more flexibility than larger companies

when it comes to offering nontraditional benefits, relaxed business

attire or a faster track to career advancement

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Employee Retention

Empowering the Employees

Most people work harder and do a better job if they feel the company

values their opinions; the management trusts them to be responsible

and empower them to make their own decisions.

Hire for the Long Term

The way a company hires, trains and rewards employees reveal a great

deal about its values. Hiring for aptitude and then training for career

advancement goes a long way toward building loyalty and increasing

retention rates. Companies with worker-friendly management practices

are at a distinct advantage when it comes to hiring qualified talent.

These programs help create a productive, satisfying workplace where

employee turnover, as well as recruitment and training costs, is kept to

a minimum.

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Employee Retention

Significance of Training and Development

Does training increase employee retention?

IN MORE WAYS THAN ONE, employee turnover is an important

consideration for managers and employers alike. For starters, the

monetary cost of hiring a new worker is significantly high. It is

estimated that the cost of replacing an employee could average as

much as 1 year’s salary for that position. The estimate may be low. A

pharmaceutical company recently put the cost of a single employee

turnover at 1.5 times the person’s annual salary.

In addition to financial considerations, turnover takes its toll in other

ways as well. It lowers staff morale, safety, Productivity,

interdepartmental cooperation, and--most significantly--customer

service.

Where training fits in, many employers believe that training

boosts morale, enhances motivation, and improves personnel

retention. Marriott hotels found, for example, that effective training of

its entry-level workers had a profound effect on keeping these

employees

Lack of training to promote career development encourages

ambitious employees to find new employers who will provide

such educational opportunities.

Inadequate training for multicultural staff results not only in

hostility and increased turnover of minority groups but also in

fewer applications from members of these groups. The same

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Employee Retention

holds true for women when the employers fail to provide training

about sexual harassment.

The following statements support the belief that training is, indeed,

likely to improve worker retention.

Employees are trained to do things that are applicable only to

jobs found in their own organizations. Someone, therefore,

skilled in a highly specialized technique in forensic pathology, for

instance, might have difficulty finding a similar job elsewhere

(unless that skill were in short supply, in which case the worker

would be highly sought after by other employers).

Effective, comprehensive training provides experiences that

allow workers to realize success early on in their careers,

resulting in increased morale and, as a result, improved

employee retention. Note: The most successful training will be

that which is given during the orientation of new employees

since this is when workers are most receptive to learning new

things.

Training in participative management, empowerment, and self-

directed teams produces significantly increased job satisfaction.

People who become members of semi-autonomous work teams

are more resistant to turnover. (Keep in mind, however, that

when such programs are first introduced, turnover may increase

for a short time since some employees thrive only in paternalistic

organizations and therefore will be unwilling or unable to accept

more responsibility.)

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Employee Retention

Now lets look at the other side of the coin, since some people would

argue that training can actually work against employers, encouraging

turnover.

Many employers discover--unfortunately, too late--that they have

trained their people for other employers, often the competition.

Case in point:

Hospital A trains student nurses. Hospital B uses the money that it has

saved by not supporting a training school to entice Hospital A

graduates into joining B’s staff.

Bank managers are constantly complaining that they train their

employees in computer operations, only to lose them as soon as they

become proficient.

Many people accept positions in organizations that provide high

quality education or highly specialized training, knowing full well

they will leave as soon as they complete that training. This is

especially true in the military. In fact, judging from the recruiting

messages of the armed services, this practice is actually

encouraged.

If training is involuntary or must be paid for by the trainee,

morale may plummet. If training programs cause hardship, for

example, by being offered only after work hours or at another

inconvenient time, employees may not be able to synchronize

their participation with personal obligations. Any of these

instances spur workers to look for a new job.

Employees become upset when they believe that their training

agenda is inappropriate or that the quality of the training

sessions leaves much to be desired. Technologists will surely

become frustrated if they are taught things contrary to what they

have learned in the laboratory, or if they are unable to apply

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Employee Retention

what they were taught in the classroom to their work back at the

bench. Hence, employee retention is once again threatened.

A bigger question. Perhaps rather than pondering over whether

training helps to retain employees, we should ask ourselves this

question: “Does training improve service?” The answer is a

resounding YES! The right kind of training, given to the right

employees, by the light trainers, at the right time, and reinforced

by their managers back on the job can have a significantly

beneficial effect on customer service, productivity, safety,

turnaround time, and morale.

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Employee Retention

Performance AppraisalPerformance appraisal may be defined as a structured formal

interaction between a subordinate & supervisor, that usually takes the

form of a periodic interview (annual or semi - annual), in which the

work performance of the subordinate is examined & discussed, with a

view to identifying weaknesses and strengths as well as opportunities

for improvement & skill development.

In many organizations – but not all – appraisals results are used,

either directly or in directly, to help determine reward outcomes. That

is, he appraisal results are used to identify the better performing

employees who should get the majority of available merit pay increase,

bonuses & promotions.

Employee Viewpoint

From the employee view point the purpose of appraisal is four – fold :

1) Tell me what you want me to do

2) Tell me how well I have done it

3) Help me to improve my performance

4) Reward me for doing well

Organizational Viewpoint

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Employee Retention

From the organizations point of view, one of the most important

reasons for having a system of performance appraisal is to establish &

uphold the principle of accountability

Before performance appraisal one must keep the following things in

mind:-

Encourage Discussion – Research studies show that

employees are likely to feel more satisfied with their appraisal

result if they have a chance to talk freely & discuss their

performance. It is also more likely that such employees will be

better able to meet future performance goals.

Constructive Intention – It is very important that employees

recognize that negative appraisal feedback is provided with a

constructive intention, i.e. to help them overcome present

difficulties & to improve their future performance. Employees will

be less anxious about criticism, & more likely to find it useful,

when they believe that the appraiser’s intentions are helpful &

constructive.

Set Performance Goals – it has been shown in numerous

studies that goal setting is an important element in employee

motivation. Goals can stimulate employee effort, focus attention,

increase persistence, & encourage employees to find new &

better ways to work.

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Employee Retention

Appraiser Credibility – it is important that the appraiser be

well informed & credible. Appraiser should feel comfortable with

the techniques of appraisal & should be knowledgeable about

the employee’s job & performance.

When these conditions exist, employees are more likely to view the

appraisal process as accurate & fair. They also express more

acceptance of the appraiser’s feedback & a greater willingness to

change.

Motivation, Satisfaction & Retention

Performance appraisal can have profound effect on levels of

employee motivation & satisfaction.

Performance appraisal provides employees with recognition for

their work efforts it also offers opportunity to focus on work activities &

goals, to identify & correct existing problems, & to encourage better

future performance. Thus, the performance of the whole organization

is enhanced. The power of social recognition as an incentive has been

long noted. In fact, there is evidence that human beings will even

prefer negative recognition in preference of no recognition at all.

If nothing else, the existence of an appraisal program indicates

to an employee that the organization is genuinely interested in their

individual performance & development. This alone can have a positive

influence on the individual’s sense of worth, commitment & belonging.

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Employee Retention

The strength & prevalence of this natural human desire for individual

recognition should not be overlooked. Absenteeism & turnover rates in

some organizations might be greatly reduced if more attention were

paid to it. Regular performance appraisal, at least, is a good start

Compensation Management & Reward

Compensation considers why organizations pay people the way they

how various pay strategies influence the success of organizations.

Compensation management basically starts with job analysis, job

descriptions, job evaluation, salary surveys, salary ranges, and

customized performance evaluations

Compensation could be briefly classified into categories namely

Monetary compensations

Non monetary compensations

Benefits are any form of compensation that aren’t part of an

employees basic pay and aren’t tied directly to job requirements or

performance levels. Specific employee benefits today take a multitude

of forms — from the basics that you find in every benefits package

(Social Security, workers’ compensation and unemployment insurance)

to highly specialized offerings such as tuition reimbursement, child- or

elder-care assistance and in-house concierge services. Precisely which

benefits the company offers and what portion of its payroll expense

goes to pay for these services will depend on the company’s financial

health, the competition for talent within the industry and the strategic

business plan.

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Employee Retention

Case Study

Every month Sandeep Mahajan and Ramesh Boridkar eagerly

wait for one thing — the pay cheque. Sandeep is the director and

Ramesh the office boy in the same company. Like them millions await

their pay cheques every month. The pay has become a symbol of

someone’s worth in the organization vis-a-vis the of the work being

performed by the person. Figuring out how much any one is really

worth has been never easy.

Recently we hired a very senior executive for an IT client. After

pro deliberations we offered Rs 40 lakh per annum. We thought we had

done a pretty good job because the pay was equivalent to that of the

managing director. Six months later the executive started raising the

very issue of his perceived worth and claimed that he should be

drawing Rs 50 Iakh. The managing director and other directors had

never had any salary hike for the past three years. The former had in

fact brought the organization from its inception to the current level.

The new executive had agreed on performance target of $2 million and

failed to deliver. Yet, he argued that his compensation was unfair and

was not reflecting his worth.

The traditional Pay Cheque

Traditional pay scales in companies reflect job characteristics like

importance of the work, decision/responsibility level. The salary has

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Employee Retention

been and will continue to represent the positional level in the

organization. Even in companies, which attempted merit pay, the

quantum was so small it failed to register any impact on the

performance.

Pay hikes are similarly linked to promotions. Employees expect

not a jump but a big leap in pay but would not agree or even discuss

how much they performance would go up in the elevated position.

The HR community also spends considerable time in collecting

market and industry data.

The market ultimately decides pay levels, but it also assumes

that people occupying similar positions in organizations, or having

similar experience or skills, must be on the same salary irrespective of

contributions.

The pay levels for positions go up or down, based on supply and

demand levels (We have witnessed pay rates going up over $100 per

hour during the Y2K crunch). The issue therefore is—should we allow

the market to dictate pay, or the position or hierarchy to drive the pay,

or should a good portion of the pay come from performance and

contribution?

The traditional pay scale models are not viable any more. Hence,

it is time for organizations to re-engineer their salary system. The

meaning of pay has to change just like the economic and social orders

have undergone a change. IT organizations are already on the road to

change the meaning of compensation. Comparable worth is a

complicated issue and hence very many organizations are defining the

meaning of worth itself. The basis to determine pay is gradually

shifting from position to performance, status to contribution. This will

have some revolutionary consequences. Companies are working on the

theory of doing more with less. They are driven hard to conserve

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Employee Retention

precious human as well as financial capital. The route therefore is not

far away from performance and pay cheque linkage. The new mantra

must be, “get paid only if there s contribution”. That is remuneration

according to the expected level of contribution. The guaranteed pay

syndrome must now end.

The new order

Having said all the above it is worthwhile to look at merit pay system

also. Merit pay is the first logical step to link performance to pay. Pay

the base salary as per the job ranks, and then do annual or semi-

annual raises based on performance (this is still conservative in my

view). It still protects the traditional hierarchy based system.

Quite often this contradicts the view that the organization’s

performance s team work, as pay raises here come only for individual

performance.

Many would agree that pay raises should come only through

performance, but which performance? That of the individual or the

organization?

Individual performance as a determinant of pay increase has been

identified as the most important internal equity. Companies must then

lean towards systems wherein the better performers at least will see

the linkage of raises to their contributions.

Evidence shows that there is positive association between

organization performance and compensation. There is a universal

agreement among lower level people that managers receive unfairly

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Employee Retention

excessive amounts. The question of getting more by paying less will be

answered if there is a system of thin guaranteed pay and fat variable

pay that depends on the company’s performance. The fixed wage cost

thus can be brought down.

As the compensation mode moves away from status or position price

to contribution and performance, the work culture also undergoes

change. Work cultures are no more authoritarian and encourage

constant innovation, risk taking, quick problem solving, the status as

basis for pay also must vanish soon. In conclusion we can say that

there is considerable merit in linking compensation to corporate and

individual performance. Successful introduction will depend on striking

balance between the two.

Thus aspects to be considered while formulating the compensation

plan

Develop compensation strategies and policies in line with

legislation and the organization’s business strategy.

Attach meaningful monetary values to posts in the organization

ensuring that the organization’s compensation is in line with

market forces (this maybe cy means of traditional job evaluation

or other methods such as skill or competency based pay).

Develop appropriate compensation systems for the organization.

Manage overall labour costs.

Reward = Retention

Recruiting and retaining the staff who can deliver the strategic

objectives of an organization are fundamental responsibilities of any

manager. Whilst selecting individuals who match the ethos and culture

is crucial, they will not join the organization if the pay and benefits

package is not attractive.

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Employee Retention

Defining Total Rewards and a Rewards Strategy

Designing a reward strategy begins with the broadest view and

understanding of the concept of “Total Rewards.” This term includes all

types of rewards indirect as well direct and intrinsic as well as

extrinsic. From an employee’s perspective, it is everything the

employee takes away from his or her relationship with an employer.

The operative word here is everything! Yet this definition is

inconsistent with how reward plan design is generally practiced; very

few companies take such a holistic view.

Total Rewards

TR begins with base cash the fixed and recurring wage. Building on

base cash is any short-term variable pay. Short-term variable pay is

compensation that s paid for the result of work measured in

increments of a year or less; it typically varies from one period to the

next.

Non-cash Rewards

In addition to the elements of Total Remuneration, organizations

offer employees rewards in various forms that, while measurable, may

or may not have a dollar value. As the dynamics of the labor market

shift, these other non- cash rewards take on greater significance for

several reasons.

Non cash rewards are the components of the employment compact, or

employer/employee relationship that matter most to today’s

workforce, People do not leave jobs for money they leave jobs for

opportunity.

Assessing the companies’ assets all too often, the power of the

individual a company is neglected or underrated. The fact is, without a

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Employee Retention

team of individuals that are fighting with the company and for the

company the company going to be in five years time? The company

may have given them training, support, advice and guidance, but what

about the package the pay and benefits? If the company relies on their

team’s knowledge and talents success, have they assessed the impact

their reward system might have on their employees? After all, the

companies don’t want their Einstein s running off to their competitors!

It doesn’t take a genius to determine the fundamentals for

retaining key staff, just common sense. Good remuneration packages

benefits and staff perks, However, the difficulty arises in knowing how

to effectively implement and assess it. Setting salary benefits

packages to attract and retain staff is all about managing reward, and

managing reward is doing the things that needs to done to implement

the reward strategy. ‘The reward strategy is the means of using pay

and, or other forms of reward, to assist the organization to achieve its

corporate goals.’

Stopping employees from leaving begins before they are

recruited and continues even after they have left. ‘It costs money to

keep staff, but then recruitment can cost up to 150 per cent of the

advertised post’s salary and failing to deal with staff retention can

potentially affect financial performance It is not a simple issue, but if

the company wants to keep their best staff then they need to take

action.

Typical staff rewards cover pay, benefits, training and the

working environment. Getting the basic pay structure in place is of

prior importance. First of all, which type of job evaluation are the

companies going to use to structure their pay package? Analytical —

where they create the job first and then put the people in place? Non-

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Employee Retention

analytical — where the whole job evaluation is based on a ranking

scheme? Or using pay comparisons?

‘The salary structure should depend on the size, type and nature

of the organization, and should provide the flexibility to cope with

market and skills pressures. It should also have the scope to reward

high achievers and solid performers, and form the basis for career

planning.’

In order to maintain a happy working environment, it is important for

employers to identify what’s important to the people that make up its

workforce. For example, parents, graduates, older workers, women and

specialist staff, The pay ranges can then be set in relation to age,

Service, qualifications, performance and marketability.

Research shows that paying extortionate rates to attract and retain

talent is not necessarily the answer. Compensation becomes the weak

link during uncertainty or downturns.

Salary levels have been taken to unrealistic level. Today the ratio

of 1.5 : 1.0 can be seen between salary levels for similar positions

between IT and non - IT sectors. This has resulted in low withstanding

capacity of companies.

Other motivating factors, which attract and retain staff, are

interest in the job, prospects in the organization and working

conditions. Is it a ‘nice place to work? What do the employees like

about it? What’s lacking Benefits could be categorized into salary

(fixed and variable), asset building, long term security, medical needs,

social / family needs, education / learning of employee and family, long

term association and specific superior performance awards.

If the company doesn’t know, why not ask their staff. Send a survey

around the office; ask for feedback in appraisals, reviews, or in exit

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Employee Retention

interviews. Make the staff feel valued — show them that their input

counts now — rather than leaving it too late!’

The top three reason people leave jobs all involve opportunities

the opportunity to grow and develop, to learn new skills, and to be in

an environment where they are appreciated. On a list of the top eight

reasons why people leave jobs, pay rants at number eight. People seek

the opportunity to contribute, and they want to feel their contribution

is appreciated. At the same time, chief executive officers rank

customer satisfaction and employee retention as the top two

measurements of value creation. Customer service is a proven by-

product o employee satisfaction, which in turn is directly linked to

rewards and recognition.

In addition, non cash rewards are the only real way to

differentiate your employment offerings. Cash is a commodity, so it

cannot different one company’s employment compact from another; it

is the intangibles that distinguish. Besides, when it comes to money,

someone will always pay more.

It is by broadly defining Total Rewards to include other non-cash

rewards that employers truly distinguish themselves in the labor

market from the competition and earn employee commitment. It is a

matter of focusing the employment compact on the rewards that

matter to the workforce you are trying to create, not on the cash

elements traditionally measured by companies. Organizations spend a

lot of time measuring Total Remuneration. But what matters to

employees is the total package the Total Rewards.

It is never advisable to wait for the inevitable to come along —

losing staff could have repercussions on the business, and clients could

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Employee Retention

begin to doubt the ability of the company. Although some staff will

eventually move on, it is important to identify the needs of the

individual — what benefits are attractive and how will these produce

results?

A strategic reward system - pay, benefits, continual training and

investment — can provide an excellent grounding for a successful,

adept team. ‘Spend the money, invest in your staff. If you get your

strategy correct, you’ll be rewarded with more than ten times the

amount of money invested.’

Exit Interviews

In traditional internal face-to-face exit interviews, “better pay”

and “better job opportunities” are often the main reasons cited for

leaving the organization However, relying on the information gathered

in this way can be misleading since, in this type of interview situation,

employees are often reluctant to identify the true causes for their

decision to resign and tend to provide more “socially acceptable”

reasons for leaving.

This issue of pay emphasizes the need to be sensitive to both

“push” and “pull” factors that may have influenced the employee’s

decision.

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Employee Retention

The traditional method of having the employee’s supervisor or a

company HR representative conduct an in-person interview on an

employee’s final day is fraught with difficulties and problems, including

being time-consuming, difficult to tabulate, not necessarily executed

consistently and both less reliable and valid than using surveys to

collect the data.

It appears, then, that many organizations are failing to recognize

the value of a systematic approach to collecting information from

exiting employees, including:

Gathering and collating the data in a structured manner

Aggregating the results for the organization as a whole

Analyzing the findings to identify consistent trends, patterns and

themes

Using the results to determine and implement strategies to

increase retention and reduce turnover.

In the most straightforward terms, an exit interview is simply a

means of determining the reasons why a departing employee has

decided to leave an organization.

With the use of an exit survey system that effectively canvasses the

opinions and attitudes of departing employees, a wide range of

operational, organizational and personal variables affecting the

decision to leave are likely to be uncovered. It is this information that

is essential to highlighting the areas of perceived deficiency in the

organization’s working environment and can then be used to plan

effective retention strategies and actions.

The main reasons for leaving can be categorized into five primary

“themes”…

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Employee Retention

Career opportunities, including:

Perceived opportunity for advancement

Presence and/or clarity of development plan.

Enjoyment of the work, including:

How well work utilizes skills

“Fit” with job

Work/life balance.

Corporate leadership, including:

Clarity and strength of vision and mission

Management style

Overall perception of leadership

Level of respect and support received.

Availability of training, including:

Opportunity to learn new skills/develop new talents

Corporate commitment to training and development

Keeping up with latest technology.

Compensation/rewards, including:

Base/variable pay

Benefits

Recognition of contributions

Communication regarding performance.

Thus it should be recognized that, in many cases, the organization has

at least some influence over the employee’s decision to voluntarily

give up a job. In fact, when all reasons for leaving are categorized in

terms of

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Employee Retention

(1) The employer’s impact on the decision to stay or go and

(2) The employee’s own level of control over the decision,

More than 50% of the reasons for leaving are within the control

of both the employer and the employee. These reasons for leaving

include both the longer- term concerns and problems that can lead to a

gradual decrease in satisfaction as well as the more immediate work-

oriented “shocks” that can prompt previously-satisfied employees to

rethink their commitment to the organization and, ultimately, leave

their jobs.

From this analysis, it is clear that organizations should seriously

consider what strategies and policies are in place to reduce turnover

and retain valuable employees. Since a large proportion of turnover

appears to be avoidable, it is imperative for organizations to determine

how best to intervene and thereby prevent at least some degree of

turnover.

The value of exit surveys

A structured system of exit surveys can play an integral role in a

well – planned programme of employee satisfaction and work climate

research. Some principles for planning an exit survey system include

being:

Universal — interviewing all voluntary departures provides a

more complete understanding of turnover.

Standardized — using a core set of consistent questions ensures

comparability throughout the organization and across time.

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Employee Retention

Comprehensive — including feedback on the work environment

in addition to reasons for leaving increases usefulness in

determining strategies to reduce turnover.

Independent — minimizing the discomfort in revealing the true

reasons for leaving improves the reliability of the results.

Available — encouraging centralized access to the findings

increases the likelihood of taking action.

Monitored — setting targets for reduction in turnover through

planned strategies helps to ensure that the investment made in

exit surveys is to its maximum use.

QuestionnaireName of the organization:

Name of the employee:

Designation

1. According to you, which sources are reliable for recruiting the

right candidate?

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Employee Retention

2. What according to you attracts job seekers to your company?

a) What kind of induction program does the company design

for the new recruit?

b) Duration of the program

c) Do you think that the employees benefit from the induction

program? If yes, to what extent?

3. Is succession planning done for the employees if yes at what

level?

4. Does work culture of the company help in boosting the morale of

the employees?

a) How do you define the culture of your organization?

5. What efforts are taken to ensure that the employees have a good

working environment?

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Employee Retention

6. How often are performance appraisals conducted?

i) 3 months ii) 6 months iii) Annually iv) other [pls specify]

7. How does the result of performance appraisal help the

employees & the organization?

8. What steps are taken by the company in order to motivate the

employees who have reached at a stagnation level?

9. How are the training needs identified?

10. How often management development programs organized for

managers?

11. On what basis are the pay packages revised?

12. Are job rotation, enrichment, enhancement techniques adopted

in your organization? If yes, how does it benefit the employees &

the organization?

13. What are the two challenges faced by the HR department &

how can it be overcome?

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Employee Retention

14. What steps are taken for retaining productive & efficient work

force?

15. According to you how can exit interviews prove to be a double

edged weapon for developing retention strategies?

16. . What retention strategies are adopted by the company so

far?

Analysis of survey

Following is the analysis of the survey conducted by me of

various companies. Major information has been acquired by personally

visiting the companies and some information is compiled with the

material acquired through internet.

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Employee Retention

The companies whose survey analyses are presented are Ceat,

Convergys, L&T infotech, and Airtel. Below is the brief analysis of the

survey.

The companies basically underwent the same recruitment’s

processes such as ads in newspaper, approved manpower agencies,

campus interviews, walk-in interviews, employee referrals, email etc.

As very much obvious the companies interviewed are quite reputed so

it’s the brand name that attracts the job seekers towards the company.

And other reasons were scope for multifunctional experience under

one roof, working condition is the best, good housing and schooling

facilities, investment of time, money and energy in continuous training.

Job prospects offered are mostly complete orientation of the

organization in all functional facilities. Basically during recruitment

itself the skills needed are tested and even through performance

appraisal system is undertaken to gauge soft skills. And these skills are

basically working in teams, interpersonal skills, creative thinking,

entrepreneurial skills etc.

Induction program generally include proper orientation and top

management takes part in formal induction of employee and convey

the mission, vision and other values of the company, followed by

feedback. Attempts are being made to promote employees vertically

and laterally.

The main requirements for prevalence of healthy work culture are

spirit of teamwork, informal employee feedback, open, Informal and

performance enabling innovativeness, respect for people,

empowerment with accountability and entrepreneurship are the key

ingredients. But the major problem faced is senior people feel insecure

with young entrants, especially since new employees are comfortable

with computers. and the steps taken to achieve the above stated

aspects are to empower employee to take decision and suggestions

are encouraged, ease at work, no obstruction during delivering error

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Employee Retention

free service, informality, fun, work life balance, employee

communication.

The next question was about the importance attached to

compensation benefits. Well here Convergys said it is one of the most

important retention strategies. Whereas at Ceat it is not considered as

a decisional factor they believe more on non-monetary benefits.

Rewards and recognition schemes undertaken are like employee of the

month, rewards for achieving above expectation results, even best

performers reward schemes for dealer’s e.g. foreign trip, thank you

note etc. Building trust in their minds for the company could bring

about commitment from employees. i.e. is by being transparent in the

various policies and strategies, by seeing to it that that the employees

personal goals is matched to that the expectation of the organization.

Developing commitment, passion and a positive attitude, build

employee capability

Attrition rate is around 15% in L&T Infotech, 18% in Airtel and

around 1% in Ceat and quite normal in other companies. And exit

interviews play a vital role in reducing attrition rates.

Some of the unique HR policies followed by these companies are as

follows:

1. Continues identification of training needs (functional as well as soft

skills) and organizing training in a regular basis.

2. Recognition of higher studies (part time) and encouraging company

sponsored management programs.

3. HR reach out, Customer contact program

4. Follow open door policy

Managing IT Retention and Turnover

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Employee Retention

The Indian software industry is poised for stupendous growth in

the coming years. Though this might sound like great news for the

Industry stalwarts and the IT Industry as a whole, it has really not

being sounding as a sweet music to the real soldiers of this revolution,

the people who are in the midst of the “Real action” on the shop floor

(if I may use that word), yes reference is to the software programmers

who make those arcane lines of code really work.

Software is a wealth and job creating industry, which has in just

a few years, grown to US $ 1 trillion, employing millions of

professionals worldwide. The Indian software industry has burgeoned,

showing a nearly 50% compounded annual growth rate over the recent

years. Being knowledge — based industry, a high intellectual capital

lends competitive advantage to a firm. Intellectual capital comprises

human capital and intellectual assets — the latter being any created

bit of knowledge or expertise. With a global explosion in market -

opportunities in the IT sector, the shortage of manpower both in

numbers and skills is a prime challenge for HR professionals. The

related issues are varied indeed: recruitment of world-class workforce

and their retention, compensation and career planning, technological

obsolescence and employee turnover. This article presents some of the

findings of our recent research on the HR challenges posed by the IT

sector.

As different consultants occupy themselves painting a rosy

picture for this industry in the coming years, the industry leaders are

busy chalking out business strategies, talking about the markets,

technologies, more stable Revenue Models etc, we often forget that at

the core is the software professionals who are ultimately going to

make this possible.

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Employee Retention

The more motivated they are closer the goal. But, these guys are no

zombies who are paid for sweating on the assembly lines instead these

are the “Knowledge Workers”, more qualified, more human and more

expressive. They have a voice, and their employers cannot afford to

turn a deaf ear to them. Another interesting aspect that we need to

identify is that these people work in teams and as it is, every

successful team needs a successful leader. They need leaders at every

level, leadership is no more “Motivational”, it is a “Hygiene Factor”

today. Companies need to make far more investments today in

producing effective leaders at all levels. While the Indian IT industry

has been blessed with superlative leadership at the very top

(N.R.Narayanmurthy, Azim Premji, Ashank Desai), this leadership does

not always percolates down the line. These factors have compelled the

IT companies to give priority-one attention to its greatest resource, the

“Human Resource”.

Here employee retention and motivation becomes a critical

component of this humongous challenge. The turnover rates, in the

range of 15% in the past year, have moved into the 20% range for

many organizations. Top performers are those companies that have

managed to hold their turnover below 10%, for many of them just

barely. An ideal turnover level, estimated by many at about 5%, is

simply unattainable for most organizations. Those companies that do

achieve such levels in the short term may get there by using various

short term retention tactics, such as bonus and incentive plans, that

may only stem a mass exodus for a period of time. If this is a critical

time on a project, of course, it can be well worth it.

Nonetheless, it is, like most compensation based retention

tactics, merely a short-term fix. One that lasts until the bonus is paid,

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Employee Retention

the next salary survey released or the next headhunter calls. Over the

past year, we have seen many organizations recognize that they need

to move beyond the concept of traditional compensation, to focus on a

more fundamental strategy of employee development, in order to

retain top IT talent.

They need to examine in detail the issues related to employee

retention. Companies need to think beyond compensation, to examine

the nature of IT work and the work environment. They need to explore

the importance of training, development and advancement

opportunities to managing retention and turnover. We also have to

look at the impact of work-family life balance.

Today, an employee’s life outside the workplace can have a

significant impact on their value to the organization. We need to

explore areas where organizations may in fact spend less and

accomplish more, for both the organization and the employee.

Let us examine the tactics being used to “treat” the IT retention

problem in organizations today and raise some strategic options for

organizations to consider in developing a true staffing strategy. This

shift from tactics to strategy is a critical step in recognizing how to

approach the management of the most costly resource in IT

departments.

A Tactical View of Retention and Turnover

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Employee Retention

Retention and motivation of personnel are major HR concerns

today. People—a Gartner group company specializing in management

of human capital in IT organizations—has observed that the average

tenure for an IT professional is less than three years. Further, the use

of new technologies, the support of learning and training, and a

challenging environment ranked higher than competitive pay

structures as effective retention practices. Our own recent survey of

1028 software professionals from 14 Indian software companies,

showed that while the professional gave importance to personal and

cultural job-fit, HR managers believed that the key to retention was

salary and career satisfaction. Money was a prime motivator for

‘starters’ but for those into their third or fourth jobs, their value-

addition to the organization was more important.

Monetarily, offering ‘the best salaries in industry’ is the minimum

every company is doing, apart from performance-based bonuses, long-

service a and stock options. Many organizations frequently conduct

employee satisfaction and organization climate surveys, and are

setting up Manpower Allocation Cells (MAC) to assign the right project

to the right person’. In fact, some are even helping employees with

their personal and domestic responsibilities to satisfy & motivate their

workforce!

For most IT organizations, employees and employee retention

and turnover are managed tactically. A wide variety of tactics are

employed, each of which is thought to have a positive effect on

employee retention. For the most part these tactics are employed in an

evolutionary and ad hoc way in response to issues that arise inside the

IT organization.

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Employee Retention

These tactics or initiatives are reactive in nature, its intention is

merely to solve an existing issue and not to anticipate the larger issues

and address them. Some emerge as part of a planned process to deal

with staffing issues; others are developed in response to a problem or

issue faced by one or more employees. Whether they emerge from a

systematic review process or as a by product of some other issue, they

are seldom formulated into an overall strategy; their costs are not well

understood and their specific impact on retention even less so.

The tactical approaches can be organized into eight major

areas:

Compensation and benefits

Reward and recognition

The work environment

Lifestyle support and work arrangements (very important for the

female employee)

Flexibility and autonomy

Training, Development and Advancement

Communication

Management quality

For each of these areas, a general overview of the impact on retention

and turnover is provided;

They make a bottom line assessment of the critical value of each area

(i.e. how important is each component for addressing the employee

issue) and then explore the individual tactics, highlighting some key

details in each area.

Another challenge that faces the Indian IT companies is that

people in India are culturally diverse, multilingual, and they

significantly differ in their upbringing. Yet, in organizations, they come

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Employee Retention

together to achieve a common goal. People differ in their needs,

aspirations, likes and dislikes, expectations and preferences, all of

which make them unique. The IT companies have as many different

people as their fingerprints. Human resources are considered to be the

most complex and challenging among all available resources in an

enterprise, more so in an IT enterprise.

Thus, let us try to understand the demographics of a typical IT

organization

Above 40

A majority of software professional belongs to the age group of 21-30,

constituting almost 74%. By its very nature the software industry is

young. The employees here have certain unique needs and aspirations.

The factors that motivate or at sometimes demotivate can be clustered

under following headings, these are;

1. Company Driven

Company’s Brand Image

Latest technologies to work on

Company’s bright future

Company’s ambitious growth plan

The Learning experience

2. Process Driven

Participate management culture

Fast careers growth

Enhancement of competencies

Transparent and effective communication

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Employee Retention

3. Relationship/Behavior Driven

Dynamic Leadership

Team environment

Well defined roles! expectations

Sound interpersonal relationships

4. Value Driven

Fair/Impartial treatment

Timely rewards/recognition

Regular feedback

Respect for the individual

Empowerment to take decisions

5. Sustenance Driven

Location of work

Compensation

Functional infrastructure

Onsite Opportunities

HR policies

These factors do not work in isolation; instead they have a cumulative

impact on the employees’ performance at the work place. Depending

upon the level of employee in terms of his designation, experience,

age the weight he gives to these factors varies. The employees can be

further classified in different levels as follows:

Level 5

Level 4

Level 3

Level 2

Level 1

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Employee Retention

Level 1: Associate, Entry Level.

Primarily works on project tasks, design tasks, design specifications,

develops routine and utility Programs.

Level 2: Intermediate Level.

Uses experience and technical competence for planning, organizing

and

conducting different phases of software projects, based on

performance requirement.

Level 3: Senior Fully Experienced Level

Develops and applies advanced methods to create, design, and

develop complex software.

Level 4: Consultant

Conducts, plans and directs major projects, or phases of projects; co-

ordinates teams staff, recommends technical correction.

Level 5: Manager, Software Engineering! Development.

Reviews, evaluates and approves software development specifications,

projects, proposals

Developing a Strategic Orientation

People Management cannot be treated as a one off initiative but it

should be. It is imperative that IT companies review a large number of

tactics and take their analysis up to a somewhat higher level and

formulate a strategic position around their people management

strategies. People issues should be resolved with the same importance

as the IT strategy considers architectural issues related to hardware

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Employee Retention

and software and their fit to their business needs. It is must that the

software companies should have an IT staffing strategy that provides

overall guidance in managing the people in any organization.

In short companies face two strategic directions they might pursue in

light of the IT labor shortage and the inevitable turnover that it

engenders.

Organizations need to manage the level of turnover toward some

desired target. They need to manage for turnover by restructuring

work and employment relationships to taking into account persistent

high levels of turnover.

Setting a target level of turnover

Managing towards a low target level of turnover can be accomplished

through a variety of approaches by combining different tactics. Three

influence points that can be used as the core of such a strategy are as

follows:

A Compensation based strategy

A Career based strategy

A work environment strategy

Of course these factors can also be combined in various ways to

develop a unique strategic mix that best fits with your organization.

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Employee Retention

Employee Retention Problems Faced By

Call Centers

One of the most difficult challenges faced by call center

management too how to retain qualified workers. In the call center

operation, where over 70% of costs are related to staffing, turnover is

a particularly troubling problem costing organizations millions of

dollars per year. This article explores the cost or turnover to a call

center, the reasons why turnover happens, and what front- line

supervisors can do to improve Turnover Rate:

Turnover is at an all-time high. In all types of jobs, workers aged

20-24 stay with an organization only 1.3 years on average (compared

to 1.5 years just 15 years ago), and workers aged 25-34 stay 2.7 years

The cost of even low levels of turnover is substantial and should

be tracked carefully in planning a retention strategy. There are two

important numbers to understand in this turnover calculation. One is

the statistical rate of turnover and the other is the actual cost of

turnover to the call center and the organization as a whole. Both

numbers should be calculated and tracked on a regular basis for

trending purposes and business case justification for programs to

assist with retention.

This turnover rate should then be reviewed to analyze internal

(employees leaving for other positions within the company) versus

external (employees leaving the organization) turnover.

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Employee Retention

Both are costly to the call center organization, but obviously some

benefits to the organization if qualified people are leaving to fill other

roles within the company.

Turnover Costs

There are many costs associated with call center staff turnover.

Some are obvious, direct, measurable costs, while others are indirect

costs organization. The measurable costs of turnover generally fall into

the following categories:

Recruiting Costs: The cost of print or other advertising, job

fairs, and other promotions to attract qualified staff.

Hiring Costs: The cost of the human resource department to

process applications and screen employees, as well as call center

staff time interview candidates,

Training Costs: The cost of training facilities, trainer time, and

student training materials, both for initial and ongoing training.

Supervision Costs: The cost of additional supervisory time to

assist new staff in their early learning stages.

Unproductive Paid Time: The cost of wages during the initial

training period when staff are not yet available to process calls.

Overtime Costs: The cost of paying overtime to existing staff to

cover call workload during understaffed periods.

Reasons for Turnover

There are many reasons why turnover in the call center

industry. Some of these reasons are under the control of the call center

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Employee Retention

and are “fixable” while some must be chalked up as simply cost of

doing business.

One of call center management’s responsibilities is to consistently

assess the reasons why people leave the center (and conversely, why

they stay) so that problems in the center’s control can be addressed.

The main reasons for call center turnover fall into these four

categories:

1. Compensation: Inadequate compensation is a reason often

sited in agents exit interviews. This will be a common factor for

call centers located in highly saturated call center labor markets

such as Phoenix or Dallas where competition for qualified call

center staff is high. Call centers should do periodic compensation

bench marking studies to ensure their wages are commensurate

with the wages or nearby centers for the same type of work,

particularly in highly competitive areas.

2. Job Fit: Many times the reason an individual leaves the center

is simply due to a poor job fit. This type of turnover can be

reduced significantly by defining and advertising the job

accurately and doing proper screening and assessment on the

front end to make sure the job is a good choice for the candidate

and vice versa. More effort during the selection phase will pay for

itself many times over in improving retention, Part of this

screening process will assess whether or not the candidate is

likely to be happy within the unique working condition found in

most call centers: solo work, confined space, repetitive tasks,

constant monitoring, and inflexible work schedules.

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Employee Retention

3. Limited Job/Career Opportunities: Many individuals leave

center due to limited possibilities for career growth or

opportunities for advancement. Some organizations have multi-

level job ladders with numerous levels of agent positions and

multiple career paths to many areas.

Unfortunately, others are severely limited in growth potential

and see turnover as a result. In a survey conducted by

callcentercareers.com, 27% of people had left one call center job

and were looking for another cited lack of promotional

opportunities as their primary reason to leave. Re-defining levels

and looking for career advancement opportunities within the call

center should be evaluated often.

4. Supervisory Problems: Assuming compensation is in a

reasonable range and there is at east a reasonable affinity for

call center work, the main reason agents leave the call center is

due to ineffective supervision. For the most part, the adage

‘people don’t leave companies; they leave leaders” is certainly

true in the call center environment. In the majority of cases, a

supervisor can be either the greatest contributor to staff

retention or the primary cause of turnover.

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Employee Retention

Retention Stratagem

The new age economy, with its attendant paradigm shifts in

relation to the human capital, in terms of its acquisition, utilization,

development and retention has placed a heavy demand on today’s HR

professional. Today HR is selected to comprehend, conceptualize,

innovate, implement and sustain relevant strategies and contribute

effectively towards giving the corporation its winning edge. With a

dynamically changing and volatile demand-supply equation, especially

against erratic attrition trends and cutthroat competition no longer

restricted to local or regional boundaries, a need for strategizing and

putting in place a robust mechanism for attracting and retaining top

talent becomes vital for the company’s very survival and growth.

The new age workforce comprises mostly of knowledge workers,

who are techno – savvy aware of market realities, are materially

focused and have higher propensity to switch jobs. They prefer to

experiment and explore new opportunities, are high risk takers with

higher aspirations and expectations and generally have a totally

different mind-set about job and careers.

In the current scenario, does supply really outstrip demand?

Supply of what and demand of what? What kind of people get the pink

slip and whom do the companies ring fence? In any organization the

employees may be broadly classified into four broad categories in

terms of their performance and potential.

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Employee Retention

There are people who are woefully inadequate in both

dimensions, who we may call ‘strugglers’ and there are the ‘under-

performers’, whose performance falls below their potential. This

constitutes about one fifth of the total human capital at our disposal

and these people obviously qualify to be the first candidates for the

pink slip.

The other two segments comprise of the solid pro’s’ and the

stars’ who are at the higher end of the performance continuum. The

former may be relatively lower in their potential as compared with the

latter, but contribute immensely to the company’s overall

performance. We could call this as the ‘talent’ segment. This is the

segment we do not want to lose. We’ve got to protect this group from

the pull of all non-retentive forces and that needs effective retention

strategies that have to be kicked into high gear.

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Employee Retention

Retention strategies have to be viewed holistically against the

total systemic framework of talent management that encompasses the

‘talent the ‘corporation’ and the ‘environment’. Attrition and retention

should be seen as reciprocal phenomena, which have an inverse

relationship with each other, recruitment and needs for downsizing

must also be considered in conjunction.

As understanding of the inherent considerations of an individual who

wishes to join a company and continue to stay, and potential

compulsions, which push him away, would help.

The company’s brand image crowns the list of the priorities for

the job seeker, other important considerations being; the pay package

and other pecuniary benefits, the class and quality of people that work

in the company, the challenges of the job and attractiveness of the

position & designation, the opportunities for career growth and

professional development and the kind of technology, he would be

exposed to. Dissatisfaction in any of these aspects causes severe

cracks to appear in the bonding. Anxieties and apprehensions arising

from restructuring, movements, marginalization, power politics,

change of boss, change of tasks and responsibilities, mergers and

acquisitions etc. could be instrumental in taking decisions to leave.

Other factors could be to explore better prospects elsewhere, to start

one’s own venture, to take up higher studies or certain private

compulsions.

From the company’s perspective, its brand equity, philosophy,

vision, mission, culture, values and ecology have a direct bearing on

talent attraction and retention. Other company - related attributes that

impact employee retention include high demand on performance, need

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Employee Retention

for new competencies, broader, deeper and diverse job expectations,

need for re-skilling and re-deployment, career offerings and growth

prospects, goal & role clarity, policies & processes and organizational

communication.

Putting in place an effective sensing mechanism to gauge

comfort, contentment and commitment levels becomes a pre-requisite

to designing and implementing any worthwhile retention strategy.

Many such instruments have evolved over the years and include

employee satisfaction surveys, organization climate audits, open

forums, one-to-one sessions, exit interviews, ex-employee interviews,

grape vines, informal social interactions, case studies and a multitude

of trend analyses based on hard attrition data. Whatever may be the

instrument, whether used singly or in combination, the success

depends on collection and collation of unbiased responses, cataloguing

of direct and proximate clues, their effective analysis and drawing

sound inferences.

In order to appreciate the push and pull effect on the individual

in the context of attrition and retention a qualitative force field listing

may be helpful.

While on the one hand, a compelling brand image, astute

leadership within the organization, an enduring culture and an

environment that is trusting, caring and nurturing, credibility,

transparency, empowerment, responsiveness and creative policies on

compensation, recognition etc would exert a positive influence on the

subject talent, on the other hand, compliance, control, rigid power

structure, knee-jerk changes, unexciting and drab jobs, unjust

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Employee Retention

discrimination, unrealistic deadlines, lure of lucre and poaching would

be debilitating.

The retention strategies should be designed such that the

retentive forces are maximized and the debilitating forces minimized.

Retention strategies should not be orchestrated in isolation but must

form part of the overall strategies for strengthening the pull on the

talent, which in fact include sourcing, staffing and development

strategies like improving the pay structures & level on part with those

of similar organizations, providing the opportunities for self

development & promotional avenues, maintaining sound industrial &

human relations, adopting effective techniques of recruitment,

selection, induction & placement, providing congenial working

conditions, creating the facilities & environment to satisfy he

employee’s needs for pride, security, recognition, challenging work,

autonomy, achievement, appreciation, status, power to control etc. in

addition. A robust sourcing strategy is crucial to the exercise since the

type of people one selects should not only fit into the job in terms of

skill set but should match the company culture in terms of attitude,

personality and commitment. An effective selection process ensures

the entry of the right kind of people into the organization, with the

desired loyalty and sense of belonging that goes a long way in

restricting attrition in the long run.

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Conclusion

Critical human resource acts that need to be introduced and

altered for effective management of employees turn over

ratio.

1) Employees change job for a variety of reasons

According to a research paper by an IIT - Mumbai professor, there is a

significant gap between HR managers’ perception of why employees

change jobs and the real reasons as cited by the employees

themselves.

The paper’s research findings show that people leave for different

reasons

depending on the stage in their career. For example employees new to

the

workforce tend to leave for more money, to work with new technology

and to move from small to large companies. More senior level

employees leave when the work is not challenging and when they are

unhappy with the company vision.

One solution presented is for companies to be careful in their hiring &

selection process to find employees with the ‘right’ cultural fit with the

company. Employers should also avoid presenting too rosy a picture of

the company without including a realistic look at the job and the work

requirements

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Employee Retention

2) Perks that work

Job satisfaction may be at an all time low but not for many companies

that have found a way to successfully incorporate perks into their

workplace culture. While some experts stress that perks are less

important than interesting & challenging work organizations finding

that benefits do make a difference in employee retention.

3) Employee’s first days are critical for retention success

Studies have shown that an employee’s experiences during his or her

first few weeks on a new job are critical in the employee’s later

decision whether to stay or leave. Lasting impressions about the

company’s standards, the workload, growth opportunity, the work ethic

of colleagues and communication from upper management are all

formed during this early time period

The following are some tips to ensure that new employees get off to a

good start with your company or organization:

a) Anticipate the first day. The new employee will have lots of

questions buzzing around in his mind as his first day approaches.

Anticipate those questions and put the answers in a letter or handout

for each employee. Questions might include things like

-What is the dress code?

-Where should you park?

-Where do workers eat lunch?

b) Provide a warm welcome. The new employee should be

welcomed on her first day by a friendly face. This can be someone

assigned to greet the new employee or a friendly person whom the

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Employee Retention

new employee met during interview process. Remind staff to say hello

and if you want to go all out - place fresh flowers on the new

employee’s desk.

c) Assign a friend. To help the new employee feel welcome during

the first week or more assign a friend who can meet the employee for

breaks and lunch and answer any questions that one might hesitate to

ask the boss.

d) Provide a schedule. List tasks and/or meetings that the new

employee will be working on and attending during his or her first few

weeks.

e) Teach the job. Be prepared with training to help the new

employee successfully learn the specifics of the job. Make sure files

and equipment are available if necessary & consider providing a

colleague tutor who can assist with learning.

f) Touch base. During the first week, be sure to check in daily with

the new employee to find out how things are going. This should

continue at least weekly for the first month or two.

g) Provide hope for the future. Explain the organizational

structure to the new employee & let him see how his job fits in with the

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Employee Retention

company’s mission. If advancement opportunities are available,

explain how the process works and the steps for growth & training.

Employee retention is important even in an employer’s market where

workers are plentiful. Each employee represents a significant

investment that is lost if the employee leaves prematurely. You can

take steps to minimize this risk by making sure each employee gets a

great orientation to the company.

3) Effectiveness of Exit Interviews

Many organizations use exit interviews to find out why employees are

departing. They say that when an employee is leaving it is the best

time to get honest information. The employee at that point has nothing

to lose and the organization can gather valuable insight into workplace

issues

Exit interview questions generally include how the employee felt about

his or her workload, advancement opportunities, compensation and

reason for leaving. Some organizations also seek to find out if the

employee is leaving for another organization and if so what makes the

new job more appealing.

Information gathered from exit interviews can also be useful in crafting

job descriptions. Employees often state that they accepted the job

without a clear understanding of what the job entailed.

Results from exit surveys may also reveal which positions are

underpaid and which supervisors lack good leadership skills.

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Employee Retention

Experts recommend that someone other than a direct supervisor

conduct the exits. If the organization is large enough to have a Human

Resources person, he or she would be the most appropriate person to

handle the exit interview.

Some charitable organizations say they don’t have time to conduct exit

interviews but it is recommended for those with a strong need or

interest in keeping turnover low.

4) Toxic bosses and more on workplace bullies

There are many anecdotes about bosses who rant and rave, insult and

belittle employees in front of others, give employees the silent

treatment, glare at them, spread false rumors, withhold information

and take credit for employee’s work. This kind of psychological

violence often leaves employees physically and mentally weak.

Somewhere between 12% - 50% of workers are bullied. Both men and

women do the bullying but 80% of bully victims are female. They tend

to be women in their 40’s with many years of work experience.

Why is bullying so ingrained in our workplace? It might be a matter of

culture. We as a society value aggression, toughness and endurance to

pain. In many ways these kinds of beliefs come close to endorsing the

toxic boss pain. In many ways these kinds of beliefs come close to

endorsing the toxic boss. Thus it is time that these bullies not to be

recognized.

5) Stress relievers reduce turnovers in call centers

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Employee Retention

Call Center employees work an average of 9 - 10 hours per day with a

half hour for lunch and two 15-minute breaks. They handle

approximately 85 calls per shift. They are tied to their headsets and

are monitored for call volume, length of calls and how long they are

gone for bathroom breaks.

It’s not surprising that staff turnover in call centers looms at 33% per

year. Phone representatives are four times more likely to miss work

because of stress related conditions. To improve their retention of call

center representatives, some companies are instituting benefits

designed to relieve the stress that builds up on the job.

Stress relief benefits include:

- Employee gym

-Quiet room with comfortable chairs for napping and reading

- Outdoor walking trails

- Video arcade with free games

- Office Luncheons

- Stress management and time management training

- Company sponsored theme events

- Ergonomic work stations

Allowing representatives to focus on the quality of the call rather than

the speed of the call has also shown to boost productivity and reduce

the number of employee who quit by 50%

6) 83% of the managers will jump ships when job market

improves

Experts in the industry warn that if the job market heats up, HR

Managers should expect to see huge increases in staff turnover.

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Employee Retention

Eighty-three percent of US managers and executives said they will

likely seek work elsewhere when the opportunities become available.

Why are workers so anxious to jump ship? According to recruiters,

employees are fed up with feeling underappreciated and doing the job

of 2 or 3 or 4 people due to corporate layoffs. Employees are

dissatisfied with lack of promotions and pay raises and feelings of

being undervalued and overworked.

Employees that nave expressed unhappiness with their work has

increase from 15% in 2000 to 25% at the end of 2003.

7) Business coaches help solve work place challenges

Hiring a business coach can help company develop a more productive

and pleasant workplace.

Business coaches help companies improve communication, build

better relationships both on & off the job and manage stress. Although

they are neither business consultants nor therapists they often

function in similar roles. Their goal is to “bring perspective,

accountability, focus and discipline to work environments and

relationships.”

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Bibliography

Name of the Book Author

Human Resource And

Personnel Management

K. Aswathappa

Essentials of Human

Resource Management &

Industrial Relations

P. Subba Rao

Webliography

The following Websites have been used for reference:

www.retentionsystems.com

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www.Careermosaicindia.com

www.hrfolks.com

www.expressitpeople.com

www.thecallcentersschool.com

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