SUMMER TRAINING PROJECT REPORT

ON

“EMPLOYEE’S RETENTION INITIATIVES IN

TATA DOCOMO”

UNDER THE GUIDANCE OF: UNDER THE SUPERVISION OF:

Ms. Smriti Srivastava. Ms. Shruti Mehta

(HR Assistant manager)TTSL,LKO.

SUBMITTED BY:

AREEBA SHOEB

1305670017

2012-14

BBDNIIT

1

PREFACE

MBA program is one of the most professional courses in the field of management. This course

includes both theory and application content of curriculum.

Project work is an integral part of MBA program at “BBDNIIT” each student is required to do

project and has to prepare and submit report on the work conduct by the student.

This report is the continuation of above tradition. The topic of the project work was

“EMPLOYEE RETENTION INITIATIVES AT TATA DOCOMO”.

2

ACKNOWLEDGEMENT

To complete the project is not a easy thing, you have to take the help of others. I would like to

add a few heartfelt words for the people who are the part of this project in numerous ways

people who gave unending support right from the stage the project data was conceived

My special thanks to MR. M.K. Rastogi (HEAD OF THE DEPARTMENT) that

provides gentle encouragement and constant support.

I am extremely thankful to MS SHRUTI MEHTA(Hr assistant manager at TTSL) for

providing me with sense of direction in building this methodical approach in this report,

continuous source of inspiration throughout the project.

I sincerely thank them for the constant cooperation, guidance and incessant

inspiration and their guidance without which this project would have been like a rudderless

boat. Well to put in a nutshell, without their guidance and support this project would have

been futile.

AREEBA SHOEB

M.B.A -Sem

3

DECLARATION

I, Areeba Shoeb, student of M.B.A at BDNIIT LUCKNOW, hereby declare that the project

report on “EMPLOYEE RETENTION INITIATIVES AT TATA DOCOMO” at Lucknow

is an original and authenticated work done by me.

I further declare that it has not been submitted elsewhere by any other person in any of the

institutes for the award or any degree or diploma.

AREEBA SHOEB

Date :

4

INDEX

S.No TOPIC PAGE NO.

1. Preface

2. Acknowledgement

3. Company’s profile

Tata Teleservices Ltd

4. Employee Retention

5. Employee Attrition

6. Retention in different sectors

7. Employee retention in Tata Docomo

8. Conclusion

9. Bibliography

5

THE INDIAN TELECOM SECTOR

India is the fourth largest telecom market in Asia after China, Japan and South Korea. The Indian

telecom network is the eighth largest in the world and the second largest among emerging

economies. At current levels, telecom intensiveness of Indian economy measured as the ratio of

telecom revenues to GDP is 2.1 percent as compared with over 2.8 percent in developed

economies.

Indian telecom sector has undergone a major process of transformation through

significant policy reforms. The reforms began in 1980s with telecom equipment manufacturing

being opened for private sector and were later followed by National Telecom Policy (NTP) in

1994 and NTP'1999. Historically, the telecom network in India was owned and managed by the

Government considering it to be a natural monopoly and strategic service, best under state's

control. However, in 1990's, examples of telecom revolution in many other countries, which

resulted in better quality of service and lower tariffs, led Indian policy makers to initiate a

change process finally resulting in opening up of telecom services sector for the private sector.

Policy reforms can be broadly classified in three distinct phases" The Decade of 1980's saw

private sector being allowed in telecommunications equipment manufacturing. Mahanagar

Telephone Nigam Limited (MTNL) and Videsh Sanchar Nigam Limited (VSNL) were formed

and a Telecom Commission was set up to give focus to telecommunications policy formation.

" In 1990s, telecommunications sector also benefited from the general opening up of the

economy. NTP 1994 was the first attempt to give a comprehensive roadmap for the Indian

telecommunications sector.

Availability of telephones on demand (targeted by 1997).

Universal service covering all villages and one PCO per 500 persons in urban areas at the

earliest (targeted to be achieved by 1997).

Telecom services at affordable and reasonable prices.

World standard quality of services.

6

“NTP 1999 brought in the third generations of reforms in the Indian telecommunications

sector.

1. KEY MARKET PLAYERS

1 Tata Teleservices Ltd

2 Mahanagar Telephone Nigam Ltd (MTNL)

3 Bharat Sanchar Nigam Ltd (BSNL)

4 Reliance Communications Ltd

5 Bharti Airtel Ltd

6 Vodafone

7 Idea Cellular

8 Spice Communication Private Ltd

9 Aircel

10 Uninor

7

8

Bharti Foundation Bharti Foundation

Group Companies

Founded by JAMSET JI TATA in 1868

THE TATA GROUP is a GLOBAL business group

With products and services in over 150 countries

Over 540,000 employees and operations

In over 100 countries

Group revenue of $ 96.8 bn

With 63% generated in geographies other than India

Global leader in several sectors

BUSINESS SECTORS OF TATA

9

INFORMATION TECHNOLOGY AND

COMMUNICATION

CONSUMER PRODUCTS

ENGINEERING PRODUCTS AND SERVICES

MATERIALS

SERVICES

ENERGY

10

CHEMICALS

Former chairmen

Profiles of the men who have led the Tata group in the last 100-plus years

11

Jamset Ji Tata: The Founder of the Tata group began with a textile mill in central India in the

1870s. His powerful vision inspired the steel and power industries in India, set the foundation for

technical education, and helped the country leapfrog from backwardness to the ranks of

industrial nations.

Sir Dorab Tata (Chairman, Tata Sons: 1904 – 1932): Through his

endeavors’ in setting up Tata Steel and Tata Power, this elder son of

Jamsetji Tata was instrumental in transforming his father's grand vision

into reality.

Sir Nowroji Saklatvala (Chairman, Tata Sons: 1932 – 1938):

Sir Nowroji Saklatvala became chairman of the Tata group in

1932, succeeding Sir Dorabji Tata

JRD Tata (Chairman, Tata Sons: 1938 – 1991): The late

chairman of the Tata group pioneered civil aviation on the

subcontinent in 1932 by launching the airline now known as Air

India.

Ratan N Tata (Chairman, Tata

Sons: 1991 – 2012): Ratan N Tata was the Chairman of Tata

Sons, the promoter holding company of the Tata group,

from 1991 to 2012.

12

Cyrus P Mistry, 45, is the sixth Group Chairman. He was appointed as the Chairman of the Tata

Sons board in December 2012 and has been a director of the company since 2006.

In addition to being the Group Chairman, Mr Mistry is also the chairman of major Tata

companies including Tata Steel, Tata Motors, Tata Consultancy Services, Tata Power, Indian

Hotels Company, Tata Global Beverages and Tata Chemicals

Mr Mistry graduated with a degree in civil engineering from Imperial College London, UK, in

1990. In 1997, he received an MSc in management from the London Business School. He is a

recipient of the ‘Alumni Achievement Award’ from the London Business School. He is also a

fellow of the Institution of Civil Engineers, London.

13

TATA GROUP IN COMMUNICATION

Communication is among the Tata Group’s larger investments, with over $7.5 billion already

committed. The Group’s objective is to provide end-to-end telecommunications solutions for

business and residential customers across the nation and internationally. The Group’s

communications activities are currently spread primarily over four companies- Tata Teleservices

Limited, its associate Tata Teleservices (Maharashtra) limited, Tata Communications (erstwhile

VSNL) and Tata Sky. Together, these companies companies cover the full range of

communications services, including:

Telephony Services: Fixed and Mobile

Media & Entertainment Services: Satellite TV

Data Services: Leased Lines, Managed Data Networks, IP/MPLS VPN, Dial-up Internet,

Wi-Fi and Broadband

Value-added Services: Mobile and Broadband Content/Applications, Calling Cards, Net

Telephony and Managed Services

Infrastructure Services: Submarine Cable Bandwidth, Terrestrial Fiber Network and

Satellite Earth Stations and VSAT Connectivity

TATA TELESERVICES LIMITED PROFILE

Tata Teleservices Limited spearheads the Tata Group’s presence in the telecom sector. The Tata

Group includes over 100 companies, over 450,000 employees worldwide and more 3.8 million

shareholders. Incorporated in 1996, Tata Teleservices Limited was the pioneer of the CDMA 1x

technology platform in India, embarking on a growth path after the acquisition of Hughes

Tele.com (India) Ltd [renamed Tata Teleservices (Maharashtra) Limited] by the Tata Group in

2002. Over the last few years, the company has launched significant services CDMA mobile

operations in January 2005 under the brand name Tata Indicom, market-defining wireless mobile

broadband services under the brand name Tata Photon in 2008 and 2G GSM services under the

name TATA DOCOMO in 2008.

14

Tata Teleservices Limited also has a significant presence in the 2G GSM space, through its joint

venture with NTT DOCOMO of Japan, and offers differentiated products and services. TATA

DOCOMO was born after the Tata Group’s strategic alliance with Japenese telecom major NTT

DOCOMO in November 2008. TATA DOCOMO received a pan- India license to operate GSM

services in all the 18 telecom Circles where it received spectrum from the Government of India

in the quick span of just over a year.

One of the key milestones in October 2011 was the brand integration exercise at TTSL, which

saw the Company’s many brands being consolidated under its single flagship brand, TATTA

DOCOMO. This helped TTSL leverage the benefits of brand syngeries and capitalize on its vast

retail and distribution network, which is the largest amongst all private telecom operators in the

country.

TATA DOCOMO marks a significant milestone in the Indian telecom landscape, and has already

redefined the very face of telecoms in India, being the first to pioneer the per-second tariff option

part of its “Pay for What You Use” pricing paradigm.

Tata Teleservices Limited also became the first Indian private telecom operator to launch 3G

services in India under with the launch of services in November 2010 in all nine telecom Circles

where the company bagged the 3G license. In association with its partner NTT DOCOMO, the

Company finds itself favorably positioned to leverage the first-mover advantage. With 3G,

TATA DOCOMO has begun to redefine the very face of telecoms in India. Tokyo-based NTT

DOCOMO is one of the world’s leading mobile operators in Japan, the company is the clear

market leader, used by nearly 55 per cent of the country’s mobile phone users.

TTSL entered into a strategic partnership agreement with Indian retail giant Future Group to

offer mobile telephony services under a new brand name T24, on the GSM platform. Tata

Teleservices also has a strategic tie up with Virgin Mobile that primarily caters to youth segment

offering mobility services on both CDMA and GSM platform.

Tata Teleservices is the undisputed market leader in the fixed wireless telephony market amongst

private operators. In the wireless mobility space, the company in the past has been rated as the

15

“Least Congested Network” in India for eight consecutive quarters by the Telecom Regulatory

Authority of India through independent surveys.

Today, Tata Teleservices, along with Tata Teleservices (Maharashtra) Limited, has a reach in

more than 450,000 towns and village across the country, with a bouquet of telephony services

encompassing Mobile Services, Wireless Desktop Phones, Public Booth Telephony and Wireless

services.

In December 2008, Tata Teleservices announced a unique reverse equity swap strategic

agreement between its telecom tower subsidiary, Wireless TT Info-Services Limited and Quippo

Telecom Infrastructure Limited with the combined entity kicking off operations with 18,000

towers, thereby becoming the largest independent entity in this space and with the highest

tenancy ratios in the industry. Today, the combined entity which has been re-christened as VIOM

Networks has a portfolio of nearly 60,000 towers.

The company in the recent past has won many awards. TTSL was named The Best Emerging

Markets Carrier by Telecom Asia and received 8 awards at the World HRD Conference,

including 5th Best Employer in India. The Company has also received 3 awards at the Telecom

Operator Awards 2010 from Tele.net; Best Company, CEO of the Year and Best Quality of

Service, and Business Standard award for “Most Innovative Brand of the Year”. TATA

DOCOMO was recently recognized as the best “Utility VAS Service Provider” and “Best

Mobile Broadband Service Provider” for the year 2012 by Frost & Sullivan.

PROJECT OPTIMUS

With the increasing penetration of telecom in rural areas and the weak utility power situation in

the hinterland, a clear demand-supply gap for power exists in most of these locations and states.

Going forward, the dependence on alternate sources of power will only increase-thus raising both

the cost of power, as also the attendant emissions, particularly if conventional back-up solutions

of using diesel-powered generators are employes. At TTSL, we are very concerned of the

problem of power; industry is facing and therefore the need of it to be attacked on different

16

fronts. Promoting the use of alternative resources of energy and reducing the use of fuel is one of

the important areas of work for conservation of energy and promoting the responsible use of

resources.

There are limited options that any operator can turn to, but as a company known for its

innovation and environment-consciousness, Tata Teleservices Limited has a already identified

initiatives that are reducing our emission count and helping us develop and implement cleaner

and greener technologies. To comprehensively address the issue of energy. TTSL formed an

“Applied Research” team with a mandate to obtain good quality continuous power independent

of grid reliability and thus becoming the lowest cost telecom operator.

The name of the project was christened as “Project Optimus”. This department was responsible

for developing customized solutions working closely with vendors, carrying out proof of concept

implementations (prototype and pilot project) and developing models for rollouts and monitoring

implementation.

Indoor to outdoor Conversion:

TTSL technology team initiated a special project for optimizing Energy Costs called Project

Optimus and above said various solutions depending on site category and feasibility were

implemented. One of the major initiative- “Outdoor Capsule for Indoor Base Station” started

fetching good amount of savings. Also, at these sites TTSL executed the complete deployment of

Outdoor Cabinet including platform/civil works for foundation to install the Outdoor cabinet.

TTSL has a fixed cost power and fuel tariff model with the Infrastructure provider and outdoor

tariff is 20% less than indoor tariff card. The tower site of mobile telephone network consists of

Base station equipment (electronics), tower to install the antennae and Diesel generator with

power interface uniy including battery backup for standby backup power. The tower sites are of

indoor and outdoor category where in indoor Base station is installed inside the shelter with air

condition equipment to maintain the temperature up to deg C. the Base station (indoor and

outdoor type) are capable to withstand higher temperatures till 55deg C and hence indoor Base

station can be housed in Outdoor cabinet which is equipped with Heat exchange/natural cooling

systems and are installed outside the shelter without air-conditioning requirements. Also, in case

17

of power failure, the DG starting can be delayed till the battery backup can sustain power to the

Base station cum heat exchanger. The Outdoor Cabinet is been used to house the Indoor Base

station which are IP 55 / IP 27 in the environment with heat exchanger/natural cooling systems

thereby eliminating the requirement of air-conditioning.

With implementing Outdoor cabinet, existing Indoor Base station gets converted to Outdoor

Base station eliminating the air conditioning requirement which benefits the environmental in

two ways:

Due to the reduced CO2e emissions by lesser energy consumption for the same Base

station on a account of reduction of power consumption as well as Diesel Consumption.

Elimination/reduction of ozone depleting refrigeration gases by reduction of Air

conditioners in operation

18

BOARD OF DIRECTOR

Mr. Cyrus P. Mistry

Designation: Chairman

 

Mr. Srinath Narasimhan

Designation: Managing Director

 

Mr. N. Chandrasekaran

Designation: Director 

Mr. Hajime Kii

Designation: Director

 

Mr. Kazuto Tsubouchi

Designation: Director

Mr. Kishor Chaukar

Designation: Director

19

 

 

Mr. Ishaat Hussain

Designation: Director

 

Mr. Ravi Lambah

Designation: Director

 

Mr. Kiyoshi Tokuhiro

Designation: Director

20

CAREERS @ TTSL

To actualize the organizational Vision of “Providing Trusted Service to Our Customers”,

acquiring and retaining high-quality talent is the key to the organization’s success. With this in

mind, Tata Teleservices Limited offers high-caliber people the opportunity to build a career in

one of the world’s most challenging and fast-moving business environments. Tp be a part of

Team TTSL, one needs to be able to imbibe and live by TATA values and ethical standards, and

have the skills and motivation to play a major role in TTSL’s journey to success. At TTSL, we

consider people to be our greatest asset. Professional, self-motivated individuals in every part of

the organization are the key to achieving excellent customer service and continued growth of our

organization. TTSL takes care of your carrer while you give your best to the organization

through a well-structured career progression scheme. Besides providing immense opportunities

to learn and develop, th organization takes care that you progress at a desired pace in your career.

Carrer paths have been designed in order to help employees understand the requirements of

upward mobility and growth in the organization. At TTSL. We use competency evaluation and

performance as a criteria for growth. Adequate cross-functional exposure and developmental

opportunities are provided to all employees, which over a period of time, enhance individual

capability.

TATA DOCOMO

Tata DOCOMO is Tata Teleservices Limited's telecom service on the GSM platform—arising

out of the Tata Group's strategic alliance with Japanese telecom major NTT DOCOMO in

November 2008. Tata Teleservices has received a license to operate GSM telecom services in 19

of India's 22 telecom Circles—and has also been allotted spectrum in 18 telecom Circles. Of

these, it has already rolled out services in all the 18 Circles that it received spectrum in from the

Government of India—Tamil Nadu, Kerala, Orissa, Karnataka, Andhra Pradesh, Maharashtra,

Mumbai, Madhya Pradesh-Chhattisgarh, Haryana-Punjab, Kolkata, Rest of West Bengal,

Jharkhand, Bihar, UP (East), UP (West), Gujarat, Himachal Pradesh and Rajasthan.

Tata DOCOMO has also become the first Indian private operator to launch 3G services in India,

with its recent launch in all the nine telecom Circles where it bagged the 3G license. In

21

association with its partner NTT DOCOMO, the Company finds itself suitably positioned to

leverage this first-mover advantage. With 3G, Tata DOCOMO stands to redefine the very face of

telecoms in India. Tokyo-based NTT DOCOMO is one of the world's leading mobile operators

—in Japan, the company is the clear market leader, used by nearly 55 per cent of the country's

mobile phone users.

NTT DOCOMO has played a major role in the evolution of mobile telecommunications through

its development of cutting-edge technologies and services. Over the years, technologists at

DOCOMO have defined industry benchmarks like 3G technology, as also products and services

like i-Mode, e-wallet and a plethora of lifestyle-enhancing applications. Last year itself, while

most of the rest of the industry was only beginning to talk of 4G technology and its possible

applications, DOCOMO had already concluded conducting 4G trials in physical geographies, not

just inside laboratories!

DOCOMO is a global leader in the VAS space, both in terms of services and handset designs,

particularly integrating services at the platform stage. The Tata Group-NTT DOCOMO

partnership will see offerings such as these being introduced in the Indian market through the

Tata DOCOMO brand.

Tata DOCOMO has also set up a 'Business and Technology Coordination Council', comprising

of senior personnel from both companies. The council is responsible for the identification of key

areas where the two companies will work together. DOCOMO, the world's leading mobile

operator, will work closely with the Tata Teleservices Limited management and provide know-

how to help the company develop its GSM business.

On the CDMA platform, despite being the latest entrant, Tata Indicom has already established its

presence and is the fastest-growing pan-India operator. Incorporated in 1996, Tata Teleservices

is the pioneer of the CDMA 1x technology platform in India. Today, Tata Teleservices Ltd,

along with Tata Teleservices (Maharashtra) Ltd, serves over 84 million customers in more than

450,000 towns and villages across the country, with a bouquet of telephony services

encompassing Mobile Services, Wireless Desktop Phones, Public Booth Telephony and Wireline

Services.

22

TATA TELESERVICES LIMITED

Tata Teleservices Limited spearheads the Tata Group’s presence in the telecom sector. The Tata

Group includes over 100 companies, over 450,000 employees worldwide and more than 3.8

million shareholders.

Incorporated in 1996, Tata Teleservices Limited was the pioneer of the CDMA 1x technology

platform in India, embarking on a growth path after the acquisition of Hughes Tele.com (India)

Ltd [renamed Tata Teleservices (Maharashtra) Limited] by the Tata Group in 2002. Over the last

few years, the company has launched significant services CDMA mobile operations in January

2005 under the brand name Tata Indicom, market-defining wireless mobile broadband services

under the brand name Tata Photon in 2008 and 2G GSM services under the brand name Tata

DOCOMO in 2009.

Tata Teleservices Limited also has a significant presence in the 2G GSM space, through its joint

venture with NTT DOCOMO of Japan, and offers differentiated products and services. Tata

DOCOMO was born after Tata Group’s strategic alliance with Japanese telecom major NTT

DOCOMO in November 2008. Tata DOCOMO received a pan-India license to operate GSM

telecom services and rolled out GSM services in all the 18 telecom Circles where it received

spectrum from the Government of India in the quick span of just over a year.

One of the key milestones in October 2011 was the brand integration exercise at TTL, which saw

the Company’s many brands being consolidated under its single flagship brand, Tata DOCOMO.

This helped TTL leverage the benefits of brand synergies and capitalize on its vast retail and

distribution network, which is the largest amongst all private telecom operators in the country.

Tata DOCOMO marks a significant milestone in the Indian telecom landscape, and has already

redefined the very face of telecoms in India, being the first to pioneer the per-second tariff option

part of its ‘Pay for What You Use’ pricing paradigm.

23

Tata Teleservices Limited also became the first Indian private telecom operator to launch 3G

services in India under with the launch of services in November 2010 in all nine telecom Circles

where the company bagged the 3G license. In association with its partner NTT DOCOMO, the c

Company finds itself favorably positioned to leverage this first-mover advantage. With 3G, Tata

DOCOMO is one of the world’s leading mobile operators in Japan, the company is the clear

market leader, used by nearly 55 per cent of the country’s mobile phone users.

TTL entered into a strategic partnership agreement with Indian retail giant Future Group to offer

mobile telephony services under a new brand name T24, on the GSM platform. Tata Teleservices

also has a strategic tie up with Virgin Mobile that primarily caters to youth segment offering

mobility services on both CDMA and GSM platform.

Tata Teleservices is the undisputed market leader in the fixed wireless telephony market amongst

private operators. In the wireless mobility space, the company in the past has been rated as the

‘Least Congested Network’ in India for eight consecutive quarters by the Telecom Regulatory

Authority of India through independent surveys.

Today, Tata Teleservices, along with Tata Teleservices (Maharashtra) Limited, has a reach in

more than 450,000 towns and villages across the country, with a bouquet of telephony services

encompassing Mobile Services, Wireless Desktop Phones, Public Booth Telephony and Wireline

Services.

In December 2008, Tata Teleservices announced a unique reverse equity swap strategic

agreement between its telecom tower subsidiary, Wireless TT Info-Services Limited, and Quippo

Telecom Infrastructure Limited with the combined entity kicking off operations with 18,000

towers, thereby becoming the largest independent entity in this space and with the highest

tenancy ratios in the industry. Today, the combined entity which has been re-christened as VIOM

Networks has a portfolio of nearly 60,000 towers.

1.The company in the recent past has won many awards. TTSL was named The Best Emerging

Markets Carrier by Telecom Asia, and received 8 awards at the World HRD Conference,

including 5th Best Employer in India. The company also received 3 awards at the Telecom

Operator Awards 2010 from Tele.net; Best Company, CEO of the Year and Best Quality of

24

Service, and Business Standard award for 'Most Innovative Brand of the Year'. Tata DOCOMO

was recently recognized as the best “Utility VAS Service Provider” and “Best Mobile Broadband

Service Provider” for the year 2012 by Frost & Sullivan.

Tata DOCOMO is Tata Teleservices Limited's telecom service on the GSM platform-arising out

of the Tata Group's strategic alliance with Japanese telecom major NTT DOCOMO in November

2008. Tata Teleservices has received a license to operate GSM telecom services in 19 of India's

22 telecom Circles-and has also been allotted spectrum in 18 telecom circles. Of these, it has

already rolled out services in all the 18 Circles that it received spectrum in from the Government

of India-Tamil Nadu, Kerala, Orissa, Karnataka, Andhra Pradesh, Maharashtra, Mumbai,

Madhya Pradesh-Chhattisgarh, Haryana-Punjab, Kolkata, Rest of West Bengal, Jharkhand,

Bihar, UP (East), UP (West), Gujarat, Himachal Pradesh and Rajasthan.

Tata DOCOMO has also become the first Indian private operator to launch 3G services in India,

with its recent launch in all the nine telecom Circles where it bagged the 3G license.

MAIN PRIORITY OF TATA DOCOMO:

TATA DOCOMO has singled out customer satisfaction as its main priority. It has visibly

allocated additional attention on product differentiation and subsequently it has been successful

in giving itself a very energetic and vibrant brand image.

MISSION OF TATA DOCOMO:

Simplifying and ensuring people lives.

Truly loyal customer

Customer retention

High value customer affection

VISION OF TATA OCOMO:

TATA DOCOMO’s vision is to empower every Indian to connect with the world affordably and

trusted service 100 million happy customer by 2013

25

PRODUCTS AND SERVICES

TATA Teleservices works under 3 brand names i.e

Tata indicom-incorporated in 1996,tata teleservices limited is the pioneer of the CDMA(CODE

DIVISION MULTIPLE ACCESS)technology platform in india.

TATA DOCOMO-Is tata teleservices ltd telecom service on the gsm(global system for mobile

communications)platform arising out of the tata group’s strategic alliance with the Japanese

telecom majot NTT DOCOMO IN NOV 2008.

VIRGIN MOBILE

TATA WALKY

TATA PHOTON

26

SWOT ANALYSIS

STRENGTH

BRAND TATA

NO ROAMING CHARGES

EXTENSIVE ADVERTISING

NATIONALLY

PAY PER SECOND PLAN(first mover

advantage)

GLOBAL PRESENCE

WEAKNESS

NETWORK IS WEAK SINCE ITS

NEW

LACK IN COMPETITION AS MANY

OPTIONS ARE THERE.

HAS TO FOLLOW INNOVATIVE OR

DIE MANTRA

OPPORTUNITY

INTODUCTION TO MOBILE

NUMBER PORTABILITY CAN

ENABLE SWITCHING OF

OPERATORS WITH EASE.

CUSTOMER SATISFACTION ON

THE BASIS OF OUTPUT

GROWTH IN TEL;ECOM SECTOR

DUE TO LOW TELEDENSITY AND

INCREASING AFFORDABILITY.

THREATS

ETISALAT, VIDEOCON HAD

BECAME A BIG THREAT FOR TATA

DOCOMO.

TECHNOLOGICAL GROWTH AND

ADAPTABILITY FOR CHANGES

HAD BECAME A MAJOT THREAT.

27

EMPLOYEE RETENTION

Retaining employees has always proved to be fruitful across many industries rather than to

search for new & efficient talent. So to gain the fruit of this tree, different companies devise

different strategies for retaining their employees. simply hiking ones salary in an endeavor to

retain your valuable employee will serve no purpose as today's workforce has a lot going during

his/her decision making process and its certainly not restricted to just pay.

Insurance schemes for the employees and some of there family members

Leased accommodation

Transportation facilities to & from office.

Personal healthcare like medical attention for self & family

Recognition of merits & rewards

Participation in decision making

Memberships of prominent social clubs.

Attrition goes down in IT's top 4

Fewer employees left the top four Indian software companies in the quarter ended December 31,

2011.

28

In other words the top four companies, including Tata Consultancy Services and Infosys, saw a

drop in employee attrition during the quarter.

Attrition in the industry reduced after a spate of lateral hiring (those hired from other companies)

in 2010. This has been contained in the last couple of quarters, said Mr Siddharth Pai, partner

with Information Services Group.

Wipro witnessed a sharp decline in its employee attrition to 14.2 per cent – this means for every

100 people only 14.2 left the company. It was 21.7 per cent in same quarter a year ago.

“We have reduced attrition by about 9 per cent in the last two quarters to 14.2 per cent, which

was the lowest in the last eight quarters. This is a reflection of the fact that employees have

embraced a new direction, and our engaging measures are making a difference,” Mr T. K.

Kurien, CEO of Wipro's IT business, in a conference call with analysts said.

According to Mr E. Balaji, CEO, Ma Foi Randstad, a recruitment company, two factors

attributed to the decline in attrition. The first was the prevailing pessimistic macro-economic

outlook, which makes people more risk averse. Employees would like to retain their existing jobs

and big brands give them a safety feeling.

Employee retention refers to the ability of an organization to retain its employees.

Employee retention can be represented by a simple statistic (for example, a retention rate of 80%

usually indicates that an organization kept 80% of its employees in a given period). However,

many consider employee retention as relating to the efforts by which employers attempt to retain

employees in their workforce. In this sense, retention becomes the strategies rather than the

outcome.

29

In a business setting, the goal of employers is usually to decrease employee turnover, thereby

decreasing training costs, recruitment costs and loss of talent and organizational knowledge. By

implementing lessons learned from.

DEFINITION OF EMPLOYEE RETENTION:-

Employee retention refers to the various policies and practices which let the employees

stick to an organization for a longer period of time. Every organization invests time and

money to groom a new joined, make him a corporate ready material and bring him at par with

the existing employees. The organization is completely at loss when the employees leave their

job once they are fully trained. Employee retention takes into account the various measures

taken so that an individual stays in an organization for the maximum period of time.

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Why do Employees Leave ?

Research says that most of the employees leave an organization out of frustration and

constant friction with their superiors or other team members. In some cases low salary, lack

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

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

known to be effective contributors.

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

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

challenge and learning every day.

Hiring employees is just a start to creating a strong work force. Next, you have to keep them.

High employee turnover costs business owners in time and productivity. Try these tactics to

retain your employees.

– Offer a competitive benefits package that fits your employees’ needs. Providing health

insurance, life insurance and a retirement-savings plan is essential in retaining employees. But

other perks, such as flextime and the option of telecommuting, go a long way to show employees

you are willing to accommodate their outside lives.

– Provide some small perks. Free bagels on Fridays and dry-cleaning pickup and delivery may

seem insignificant to you, but if they help employees better manage their lives, they’ll appreciate

it and may be more likely to stick around.

– Use contests and incentives to help keep workers motivated and feeling rewarded. Done right,

these kinds of programs can keep employees focused and excited about their jobs.

– Conduct “stay” interviews. In addition to performing exit interviews to learn why employees

are leaving, consider asking longer-tenured employees why they stay. Ask questions such as:

Why did you come to work here? Why have you stayed? What would make you leave? And

what are your nonnegotiable issues? What about your managers? What would you change or

improve? Then use that information to strengthen your employee-retention strategies

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. Promote from within whenever possible. And give employees a clear path of advancement.

Employees will become frustrated and may stop trying if they see no clear future for themselves

at your company.

– Foster employee development. This could be training to learn a new job skill or tuition

reimbursement to help further your employee’s education.

– Create open communication between employees and management. Hold regular meetings in

which employees can offer ideas and ask questions. Have an open-door policy that encourages

employees to speak frankly with their managers without fear of repercussion.

Get managers involved. Require your managers to spend time coaching employees, helping good

performers move to new positions and minimizing poor performance.

– Communicate your business’s mission. Feeling connected to the organization’s goals is one

way to keep employees mentally and emotionally tied to your company.

– Offer financial rewards. Consider offering stock options or other financial awards for

employees who meet performance goals and stay for a predetermined time period, say, three or

five years. Also, provide meaningful annual raises. Nothing dashes employee enthusiasm more

than a paltry raise. If you can afford it, give more to your top performers. Or, if you don’t want to

be stuck with large permanent increases, create a bonus structure where employees can earn an

annual bonus if they meet prespecified performance goals. Make sure employees know what you

expect of them. It may seem basic, but often in small companies, employees have a wide breadth

of responsibilities. If they don’t know exactly what their jobs entail and what you need from

them, they can’t perform up to standard, and morale can begin to dip.

– Hire a human-resources professional. If your company is nearing 100 employees, consider

hiring a human-resources director to oversee and streamline your employee structure and

processes. Putting one person in charge of managing employee benefits, perks, reviews and

related tasks takes a huge load off of you and makes sure employees are treated fairly. HR

managers are also more up to date on employment laws and trends. They can set up various

programs and perks you may not have known existed key organizational behavior concepts

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employers can improve retention rates and decrease the associated costs of high turnover.

However, this isn't always the case. Employers can seek "positive turnover" whereby they aim to

maintain only those employees who they consider to be high performers.

10 reasons why organizations are not able to retain employees:

Reading Zoe's post I was inspired to come up with reasons why people leave organizations.

People don't get integrated. Most organizations have an orientation program which is more of

data-dump or focused on compliance trainings being completed. The focus should be more on

enabling employees to form networks within themselves. Performance goals are unclear. In a fast

growing team or business the focus is on getting the thing done today, but rarely are performance

goals thought through and employees told as to which resources to approach for help.

Development is always tomorrow's job. Culturally Indians are focused on learning. If learning

adds value only to the job and not to the overall career goals of the individual then the

organizations seems too transactional for the employee

The personal touch is missing. How comfortable are managers building personal bonds with their

subordinates? A lot of managers shy away fearing a bond will make delivering hard messages

difficult. I would argue that it's the other way round! Knowing employees on personal level

makes a manager know their strengths and weaknesses. Work allocation and employee

development become easier.

Reward systems are not transparent. Most employees who get salary increases because they have

a rare skill at a particular point of time think they got their raise for excellent performance. Can

you share details about how they have been compensated?

Perceived equity of reward systems is low. Like it or not, employees discuss salary details and if

there is any perceived lack of equity then you have an issue !

Goal setting process is not scientific. Most organizations impose a normal curve fitment, but do

not train managers to set realistic goals or goals that tie up with organizational or functional

goals. This also leads to point number 6

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External equity is missing too. Don't do an annual compensation survey when the market moves

every 3-4 months. If your practitioners feel that externally comparable professionals are being

valued more, then they will leave.

No communication around total value. If you offer benefits apart from only monetary terms do

you communicate that to employees too. Things like being a global or niche industry leader,

value of the brand of the organization, should also be made explicit.

No career planning. Are people aware of the ways in which they can grow in the organization?

Who are the role models within the organization? Do they know what they have to do to gain the

competencies to move to various levels?

Latest Trends in Retaining Top Talent :

Successful employee retention requires companies to take a multifactored approach that includes

effective organizational systems (for example, compensation and benefits, career movement

systems), managers’ behavior with employees, and managers’ accountability for their retention

(or attrition) rates. However, and unfortunately, the scenario in many organizations is the same.

Someone who is invested in the business, such as a senior line manager or human resources

professional, raises the red flag of attrition, recognizing its potentially devastating impact on the

company’s strategic position. Then someone scrambles to pull an initiative together that fails to

respect one or more of the critical factors that are required to reduce attrition. The result is that

the organization experiences mediocre results, or no results at all.

With the assistance of Sun Microsystems®, one of Silicon Valley’s largest high-tech companies,

our company examined the retention practices of more than 500 managers and divided the group

into those with high versus low turnover rates. We interviewed subgroups of these managers,

their direct reports, and their customers to identify the critical behaviors that differentiated the

managers with excellent retention records. This preliminary study uncovered six quantifiable and

behavioral managerial practices associated strongly and positively with a low intention to quit,

high job satisfaction, and low work-related stress—behaviors that spell TALENT.

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Targeted Recruiting and Hiring. This practice concerns the manager’s ability to hire talent

who will stay with the company, not just recruit talent for a particular job or project task.

Management practices such as hiring for cultural fit and giving realistic job previews were highly

correlated with employees who stayed longer at the company.

Achievement. What is the manager doing to make sure the employee is winning and succeeding

at work? Does the manager make sure the employee has the right tools and training to

accomplish the desired results effectively? Does work assigned take the employee’s strengths

into account?

Learning and Professional Growth. How familiar is the manager with the learning desires of

the employee? Is there a proactive plan in place to make sure the employee is learning and

growing in areas of interest as well as future needs of the business?

Ensuring Recognition. One of the most frequently cited reasons given by employees who

voluntarily leave a company is that the employees’ perceived contribution to the enterprise failed

to be recognized by management.

Nurturing Careers. To what degree does the manager help connect the employee to people in

the company who can influence the employee’s career? Does the manager help the employee

take a look at next steps in the employee’s career? Are job assignments given that will ultimately

promote the career of this person? If yes, you get a more committed employee who stays longer.

Team Collaboration. A manager who hires competent people who work well together and get

along will have a leg up in keeping top talent. Employees today report that those they work with

and whether they feel the rest of the group is contributing equally goes a long way in providing

the glue that makes them stick to the organization.

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The data clearly indicated that employees who are managed by people who are highly effective

in these management retention practices are less likely to leave the job.

The Importance of Retention

Although a moderate level of staff turnover can be good for a business, every organization needs

to have a strategy in place to retain the high performers that give it a competitive edge.

Employee retention refers to the techniques employed by the management to help the employees

stay with the organization for a longer period of time. Employee retention strategies go a long

way in motivating the employees so that they stick to the organization for the maximum time and

contribute effectively.

The cost of not doing so can be severe, as high employee turnover can be very expensive. It

lowers internal morale and it could harm an organization’s external reputation.It’s essential to try

to understand more about the reasons why people are resigning. There may be positive reasons

such as an attractive new job or a chance to reshape their lifestyle by working on projects outside

of mainstream work. However, more likely is that their departure signifies some dissatisfaction

with the present job

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RETENTION IN DIFFERENT SECTORS

Also it has been found that there are two key dimensions that influence the sustenance of an

individual in the organization; they are individual motivation and work involvement. Based on

these two dimensions the employees can be divided into four categories:

Detached: There are people who are woefully inadequate in both dimensions i.e. neither are

they involved in the work, nor are they motivated to perform. They are very difficult to

retain as they leave the organization for no apparent reason

Disgruntled: These people are the ones who are involved in their work but lack the

motivation to carry the work through

Strugglers: These people develop on the higher level of motivation spectrum, but lack

involvement. They can be retained by increasing the involvement component by increasing

their work responsibility and giving more decision making authority

Stars: These people are the ones who are the easiest to retained as they rate high both on job

involvement and intrinsic motivation

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Reciprocity: Employees invest a lot of time and resources in the company and expect a

return on investment. Companies need to understand this and reward them with proper

recognition, empowerment and authority

Organization culture: Successful organizations have retention woven into organizational

values and culture and this is one of the main reasons which makes them different from

the rest

Loyalty: Loyalty is never a given so it is essential to develop a sense of loyalty among the

employees

Recognition: It is not sufficient to acknowledge only the top10% of star performers, in

fact anyone who sticks with the company through thick and thin and adds value should be

appreciated

Generation centric approach: For the first time in organizations varied generations are

working alongside each other. It is important to realize that every generation has a

different reason for staying with the organization and it is imperative for organizations to

realize this while developing the retention strategies

Development culture: Career development is perhaps the most critical component of any

retention plan. Today moving up the ladder is a crucial aspect for almost all employees

and organizations should be able to provide this if they wish to retain the right talent.

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Figure 4: Job Involvement vis-a-vis Intrinsic Motivation

Disgruntled and Strugglers are the two categories that the company needs to retain by pulling

away all the non-retentive forces and kicking in all the retentive forces into high gear. This result

is analogous with all the established theories of motivation viz. Herzberg’s theory, Maslow’s

theory, Alderfer’s Theory, McClelland’s Theory. According to all these theories, the higher order

needs revolve around self esteem, or self actualization in one way or the other.

Organizations have to be a proactive retention strategy in order to reduce employee turnover.

The strategies adopted have to be different for different categories of employees as their needs;

aspirations and motivational levels vary with every level in the organization. Also one has to

account for various demographic variables, age, sex, marital status, education and geographical

factors. Ideally a retention strategy adopted by a company should incorporate the following

aspects.

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BPO Industry - Positive Outlook

As the industry moves up the value chain, attrition rates are expected to decline.

For BPO service providers, moving up the value chain is critical, given the attrition rates in the

industry, which are on an average higher in low value-added segments (in call centers) as

compared to higher value-added segments like engineering.

It will not be possible for the industry to arrive at a blanket agreement on poaching but bilateral

agreements between companies are being signed. Basic norms are being put in place and code of

ethics is being stressed upon by industry. Companies are being encouraged to adopt responsible

behavior in order to ensure that the industry does not become a victim of its own actions.

Industry needs to go aggressive but not cannibalistic.

In order to ensure a consistent flow of trained manpower in the future, the industry needs to work

with the government to introduce courses at a school and college level, which are in line with the

requirements of the ITES-BPO industry. India has one of the largest pool of English speaking

graduate workforce.

The challenge for the industry is not in employment but employability. The industry is also

hiring professionals from outside the industry in order to meet its steady supply of manpower.

High attrition rate, price wars, poor infrastructure and lack of data protection laws could derail

India's booming outsourcing industry. All this has induced the companies to take necessary steps,

both internally and externally. Internally, most HR managers are busy putting in efforts on the

development of their employees, building innovative retention and motivational schemes (which

was more money oriented so far) and making the environment livelier. Outside, the focus is on

creating awareness through seminars and going to campuses for recruitment.

Companies which have not been able to tackle this image could take a cue from ICICI

OneSource, which gives employees who have been with the company for more than 18 months

an option to switch to positions in other ICICI group companies.

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The system works as a big assurance for BPO employees that the skills they have learnt such as

customer friendliness and rapid response to customer problems have wider applications and

market demand.

It is clear that there are massive costs associated with attrition or turnover, and while some

of these are not visible to the management reporting or budget system, they are none the less

real.

Pay cheques alone are not enough to retain employees. Management also needs to consider other

aspects like secure career, benefits, perks and communication. The attrition battle could be won

by focusing on retention,

making work a fun place, having education and ongoing learning for the workforce, and treating

applicants and employees in the same way as one treats customers.

A better agent-client interaction using latest technologies would also help in establishing a good

rapport with the employees as well as customers, resulting in win-win situation for the company.

It is not easy to find out as to who contributes and who has the control on the attrition of

employees. A pin-pointing of the prominent causes is the first step towards addressing the issue

of attrition. Two studies in this regard are worth mentioning.

1. DQ-IDC's BPO Employees' Satisfaction Survey 2003 cites some of the reasons for attrition

the industry has identified. A good 42% of the respondents said they are likely to leave for higher

education. "33% also said they would leave when they got married!!

Considering that only 26% of these were women, and assuming all women said they would leave

after marriage for cultural issues peculiar to India - that is still a substantial chunk of men saying

they would leave once they had other responsibilities at home." A good 35% said they would

leave because they cannot handle the timings. 27% employees said they would leave either

because ork stress or the sheer physical strain was too much to handle.

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2. A recent study by Hill and Associates, security and risk management consultants, on the

attrition rate in the BPO sector, threw up some interesting insight. The study was conducted on

targeted respondents that included the young population employed in the outsourcing business

and with undergraduate, graduate and post-graduate education and who had changed their job at

least once in the past three years.

Some of the findings of the study are: -

·Exits from BPO happen because of reasons like lack of growth avenues, expectation mismatch,

dissatisfaction with organizational policies, and the quest for a better job profile.

·Not night shifts, monotony of work and lack of salary hikes. Where the HR department took

steps to deter exits such as giving salary hikes, promotions, shift changes and other incentives, it

did not succeed completely.

·The survey revealed that respondents were overwhelmingly in favor of better career growth

opportunities and improved company policies.

·The survey indicated that more than 60 percent of the employees join a BPO after seeing job

advertisements in newspapers or through manpower consultant references. The study found that

the communication pattern of advertisements positioned the BPO job at a level much higher than

its real delivery.

An overwhelming 75 percent of the respondents were financially independent of their families.

Yet, a sizeable section among them turned to their families for support if they felt the need to

quit their jobs. This cushion provided by the social support system often drove the respondents to

quit their jobs at the first hint of any inconvenience on the job.

High attrition, suicides in the Indian Boarder Security Force

Surprisingly Boarder Security Force (BSF) of the India has experienced high attrition rate for

this the Indian Government have commissioned study by IIM (Indian Institute of Management)

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Ahmedabad to know the reasons behind. The finding of the study revealed very basic reasons for

high attrition in The Indian BSF that includes core reasons like poor working condition. Long

working hours in their job with postings in difficult areas such as remote locations like forest

areas where there are no proper facilities which is effecting their health and sometimes

threatening their life, especially in forest areas BSF personnel are much exposed to risk by

malaria due to mosquitoes bites rather than enemies bullets. IIM study also found other reasons

like lack leave availability when required by BSF, most of situations leave was granted after

requirement is over, that leads to dissatisfaction and feeling of deprive form family altogether

eventually triggering unbearable stress among

them, sometimes there were suicides out of extreme depression but known to outsiders.

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Low attrition and higher retention in ITC(FMCG COMPANY):

Half of ITC's 7,000-odd managers have been with the tobacco, hotels and consumer products

enterprise for more than a quarter of century. Attrition at senior management levels - from chief

executive officer to business heads - has been zero for at least 15 years now.

The last time ITCBSE 0.53 % hired to fill up the top deck was 23 years ago when it roped in S

Sivakumar from a farmers' co-operative to conceptualize the path-breaking e-Choupal model.

And perhaps fittingly, Anand Nayak, chief of human resources, has been with the Kolkata-

headquartered consumer goods giant for almost four decades.

Meet the lifers at perhaps the only corporation amongst the top tier of India Inc that has so many

managers who dedicate their entire professional life to a single company. Hindustan Unilever

BSE -0.12 % (HUL) is the only other sizeable Indian operation that comes close to matching

ITC's ability to keep the brass together in such huge numbers for as long a time. Half of HUL's

1,500 managers are lifers.

At senior management levels, it goes up to 60% although if you combine mid- and senior-level

managers, it comes down to a third. HUL's overall attrition rate is 5% and of late it has lost

senior managers to rivals. The Unilever subsidiary has also displayed a new-found willingness to

hire for top positions - for instance, former PepsiCo ED Geetu Verma recently came on board as

head of foods. .

In financial services, organizations such as ICICI Bank BSE -2.29 %, HDFCBSE -2.82 % and

Kotak Mahindra BSE -1.31 % have had closely-knit teams over decades. Yet, these companies

can't hold a candle to ITC for two reasons. One, while ICICI has not felt the need to headhunt for

core positions, it has lost people in the top deck after they didn't win the race to succeed former

chief executive officer KV Kamath.

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And, two, while the core team at companies such as Kotak Mahindra has remained more or less

intact, the difference at ITC is that it does not have lifers only in the top management but at the

second- and third-rung levels, too.

Chairman YC Deveshwar joined as a management pupil (or trainee) way back in 1968, and even

though he worked as the chairman and managing director of Air India during 1991-94, it was on

lien.

Among the three executive directors on the board, Nakul Anand (hospitality, travel and tourism)

and PV Doable (paperboards, speciality papers and packaging) are lifers; Kurush Grant

(cigarettes and FMCG) joined after spending less than a year as a management trainee at DCM.

The EDs have been identified as potential successors to Deveshwar.

At the divisional chief executive and functional head level in ITC, the heads of tobacco, foods,

lifestyle retail, personal care, paperboards and speciality papers, education and stationery

products, hotels and R&D are all lifers.

Clearly, ITC believes there are business benefits with such a structure. HR chief Nayak says the

lifer workforce has become its DNA.

One major reason for such low attrition is a compensation structure that rewards retention

handsomely, although Nayak does point out that "we don't pay what Unilever or P&G does".

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REVIEW OF LITRATURE

Retention Management

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

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

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

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

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

articles that discuss issues that makes it important for the organization, and the leaders, to work

hard with retention management. The research is based on the leaders in the Finnish case

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

consequences between leaders actions and employees retention? Which is the leader’s role when

it comes to retaining employees? Purpose statement: The purpose of the thesis is to investigate

and analyze how company leaders today can retain their key employees. How can the provision

of key human resources develop a long-term relationship that makes top employees stay in the

company? The study aims to establish the procedure leaders apply to retain employees. The

purpose is to compare the qualitative study, made at the case company, with findings from the

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

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

and using the Finnish company Tradeka Limited as a case company, is to make the information

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

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

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

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

people stay and what usually drives them away from a company. The leader has become the

main factor in what motivates people’s decision to stay or leave. For organizations to keep its

key employees their number one priority should be to look at their management, because people

leave managers and not companies. Characteristics in a leader that are of importance, as the

leader plays a key role in retention management is: trust builder, esteem builder, communicator,

talent developer and coach, and talent finder. The leader’s relation to the employees plays a

central role in retaining employees, because employees need to feel involvement, and that their

presence count. When retention is a core value, good things happen for customers, employees,

and the company.

Employee Retention Strategies

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

1. Hire the right people in the first place.

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

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

4. Have faith in them, trust and respect them

5. Provide them information and knowledge.

6. Keep providing them feedback on their performance.

7. Recognize and appreciate their achievements.

8. Keep their morale high.

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

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be categorized in 3 levels: Low, medium and high level.

Low Level Employee Retention Strategies

Appreciating and recognizing a well done job

Personalized well done and thank-you cards from supervisors

Congratulations e-cards or cards sent to spouses/families

Voicemails or messages from top management

Periodic days off for good performance

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

Recognizing professional as well as personal significant events

Wedding gifts

Anniversary gifts

New born baby gifts

Scholarships for employee’s children

Get well cards/flowers

Birthday cards, celebrations and gifts

Providing benefits

Home insurance plans

Legal insurance

Travel insurance

Disability programs

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

Discounts in cinema halls, museums, restaurants, etc.

Retail store discounts

Computer peripherals purchase discounts

Providing workplace conveniences

On-site ATM

On-site facilities for which cost is paid by employees

laundry facility for bachelors

Shipping services

Assistance with tax calculations and submission of forms

Financial planning assistance

Casual dress policies

Facilities for expectant mothers

Parking

Parenting guide

Lactation rooms

Flexi timings

Fun at work

Celebrate birthdays, anniversaries, retirements, promotions, etc

Holiday parties and holiday gift certificates

Occasional parties like diwali, holi, dushera, etc

Organize get together for watching football, hockey, cricket matches

Organize picnics and trips for movies etc

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Sports outings like cricket match etc

Indoor games

Occasional stress relievers

“Casual dress” day

“Green is the color” day

Handwriting analysis

Tatoo, mehandi, hair braiding stalls on weekends

Mini cricket in office

Ice cream Fridays

Holi-Day breakfast

Employee support in tough time or personal crisis

Personal loans for emergencies

Childcare and eldercare services

Employee Assistance Programs ( Counseling sessions etc)

Emergency childcare services

Medium Level Strategies for Employee Retention

Appreciating and recognizing a well done job

Special bonus for successfully completing firm-sponsored certifications

Benefit programs for family support

Child adoption benefits

Flexible benefits

Dependents care assistance

Medical care reimbursement

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Providing conveniences at workplace

Gymnasiums

Athletic membership program

Providing training and development and personal growth opportunities

Sabbatical programs

Professional skills development

Individualized career guidance

High Level Strategies

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Promoting Work/Life Effectiveness

Develop flexible schedules

Part-time schedules

Extended leaves of absence

Develop Support Services

On-site day care facility etc.

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

Listen to the employee and show interest in ideas

Appreciate new ideas and reward risk-taking

Show support for individual initiative

Encourage creativity

Encouraging professional training and development and/or personal growth opportunities: It can

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be done through:

Mentoring programs

Performance feedback programs

Provide necessary tools to the employees to achieve their professional and personal goals

Getting the most out of employee interests and talents

Higher study opportunities for employees

Vocational counseling

Offer personalized career guidance to employees

Provide an environment of trust: Communication is the most important and effective way to

develop trust.

Suggestion committees can be created

Open door communication policy can be followed

Regular feedbacks on organization’s goals and activities should be taken from the employees by:

Management communications

Intranet and internet can be used as they provide 24X7 access to the information

Newsletters, notice boards, etc.

Hire the right people from the beginning: employee retention is not a process that begins at the

end. The process of retention begins right from the start of the recruitment process.

The new joinees should fit with the organization’s culture. The personality, leadership

characteristics of the candidate should be in sync with the culture of the hiring organization.

Referral bonus should be given to the employees for successful hires. They are the best source of

networking. Proper training should be given to the managers on interview and management

techniques. An internship program can be followed to recruit the fresh graduates.

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Retention Success Mantra

Transparent Work Culture

In today’s fast paced business environments where employees are constantly striving to achieve

business goals under time restrictions; open minded and transparent work culture plays a vital

role in employee retention. Companies invest very many hours and monies in training and

educating employees. These companies are severely affected when employees check out,

especially in the middle of some big company project or venture. Although employees most

often prefer to stay with the same company and use their time and experience for personal

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

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

a gamut of people management good practices for employees to have that ideal fresh work-life.

Closed doors work culture can serve as a deterrent to communication and trust within employees

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

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

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

transparent work culture employees rigorously communicate with their peers and exchange ideas

and thoughts before they are finally matured in to full-blown concepts. It induces responsibility

among employees and accountability towards other peers, which gradually builds up trust and

pride. More importantly, transparency in work environment discourages work-politics which

often hinders company goals as employees start to advance their personal objectives at the

expense of development of The company as a single entity.

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Quality Of Work

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

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

and gain their commitment. Thus, organizations are required to retain employees by addressing

their work life issues. The elements that are relevant to an individual’s quality of work life

include the task, the physical work environment, social environment within the organization,

administrative system and relationship between life on and off the job.

The basic objectives of a QWL program are improved working conditions for the Employee and

increase organizational effectiveness. Providing quality work life involves taking care of the

following aspects:Occupational health care: The safe work environment provides the basis for

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

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

beneficial dialogue.

Suitable working time: Organizations are offering flexible work options to their employees

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

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

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

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

opportunities for active involvement in group working arrangements or problem solving that are

of mutual benefit to employees or employers, based on labor management cooperation. People

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

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and high-involvement aimed at boosting the satisfaction and productivity of workers. It requires

employee commitment to the organization and an environment in which this commitment can

flourish. Providing quality at work not only reduces attrition but also helps in reduced

absenteeism and improved job satisfaction. Not only does QWL contribute to a company's ability

to recruit quality people, but also it enhances a company's competitiveness. Common beliefs

support the contention that QWL will positively nurture amore flexible, loyal, and motivated

workforce, which are essential in determining the company's competitiveness.

Supporting Employees

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

do this in a way that best suits their organizational culture. Retaining employees is a difficult

task. Providing support to the employees acts as a mantra for retraining them. Employers can

also support their employees by creating an environment of trust and inculcating the

organizational values into employees.

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

terms of personal crises, managing stress and personal development. Management can support

employees, indirectly, in a number of ways as follows:

Manage employee turnover: Employee turnover affects the whole organization in terms of

productivity. Managing the turnover, hence, becomes an important task. A proactive approach

can be adopted to reduce attrition. Strategies should be framed in advance and implemented

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when the times arrives. Turnover costs should also be taken into consideration while framing

these strategies.

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

offers or the compensation packages it gives away to its employees? Or is it measured in terms

of how they value their employees or in terms of customer satisfaction? Becoming an employer

of choice involves following a road map which tells where to go as a brand.

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

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

maximum before they start feeling bored in the organization.

Optimize employee engagement: An organization’s productivity is measured not in terms of

employee satisfaction but by employee engagement. Employees are said to be engaged when

they show a positive attitude toward the organization and express a commitment to remain with

the organization. Employee satisfaction also comes with high engagement levels. So,

organizations should aim to maximize the engagement among employees.

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

relationships or because of lack of interpersonal skills should be provided proper coaching by

their superiors. Planed coaching sessions help an individual to work through issues, maximize

his potential and return to peak performance.

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Feedback

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

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

what we call feedback. It is a dialog between a manager and an employee which acts as a way of

sharing information about the performance. It suggests where the employee performance is

effective and where performance has to improve.Managers can provide either positive feedback

or negative feedback to employees. This feedback helps the employee assess his performance

and identify the improvement areas.Positive feedback communicates managerial satisfaction.

Positive recognition for good performance boosts up morale of employees and results in

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

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

Negative feedback obviously communicates manager’s dissatisfaction. However, negative

feedback sometimes make employee to put more efforts to improve his performance. But such

times are very rare. Moreover this improvement is short term. Some managers do not provide

any kind of feedback to their employees. Due to no feedback, employees may assume that they

are performing productively or they may feel that the manager is satisfied with their

performance. Studies reveal the performance tends be same or even decreases if no feedback is

provided.

Thus, feedback is necessary because:

It builds trust and enhances communication between manager and employee.

It gives managers and employees a way to identify and discuss skills and strengths.

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Positive feedback leads to employee retention and Retention.

It helps in identifying performance areas that need improvement and specific ways to improve

them. It acts as an opportunity to enhance performance by identifying resources for skill

development. It is an opportunity for managers and employees to assess and identify career and

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

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

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

and may lead to employee absenteeism. Input from manager’s side is necessary as it help

employees to improve their performance and increase productivity.

Communication Between Employee and Employer

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

message may be or may not be in a common format or language that both the sender and receiver

understand. So there is a need to encode and decode the message in the process. Encoding and

decoding also helps in the security of the message. The process of communication is incomplete

without the feedback. Communication is the solution to almost everything in this world. Same

applies to employee retention also.

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

Employees look for organizations where communication and process are transparent. Nothing is

hidden and shared with the employees.

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There are 3 categories of employees:

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

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

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

Category

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

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

employers.

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

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

finally retention. Employers also feel that the immediate supervisors are the most authenticated

and trusted source of information for them. So the organizations should hire managers who are

active communicators.

Communication mediums

Open door policy: Organizations should support open door policies so that the employees feel

comfortable and are able to express their doubts and feeling to their employers.

Frequent meetings and Social gatherings Emails, Newsletters, Intranet and many more

So there should be effective communication across the organization and this communication

should be two-way. Communication alone can lead to unimaginable heights of employee

retention. Importance Of Employee Retention The process of employee retention will benefit an

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organization in the following ways:1. The Cost of Turnover: The cost of employee turnover adds

hundreds of thousands of money to a company's expenses. While it is difficult to fully calculate

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

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

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

about the company, customers, current projects and past history (sometimes to competitors).

Often much time and money has been spent on the employee in expectation of a future return.

When the employee leaves, the investment is not realized.

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

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

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

severed, which could lead to potential customer loss.

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

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

intensifies for the remaining staff.

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

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

Regaining efficiency: If an employee resigns, then good amount of time is lost in hiring a new

employee and then training him/her and this goes to the loss of the company directly which many

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a times goes unnoticed. And even after this you cannot assure us of the same efficiency from the

new employee What Makes Employee Leave?

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

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

Job is not what the employee expected to be: Sometimes the job responsibilities don’t come out

to be same as expected by the candidates. Unexpected job responsibilities lead to job

dissatisfaction.

Job and person mismatch: A candidate may be fit to do a certain type of job which matches his

personality. If he is given a job which mismatches his personality, then he won’t be able to

perform it well and will try to find out reasons to leave the job.

No growth opportunities: No or less learning and growth opportunities in the current job will

make candidate’s job and career stagnant.

Lack of appreciation: If the work is not appreciated by the supervisor, the employee feels de-

motivated and loses interest in job.

Lack of trust and support in coworkers, seniors and management: Trust is the most important

factor that is required for an individual to stay in the job. Non-supportive coworkers, seniors and

management can make office environment unfriendly and difficult to work in.

Stress from overwork and work life imbalance: Job stress can lead to work life imbalance which

ultimately many times lead to employee leaving the organization.

Compensation: Better compensation packages being offered by other companies may attract

employees towards themselves.

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New job offer: An attractive job offer which an employee thinks is good for him with respect to

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

organization.

Managing Employee Retention

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

1. Identify cost of employee turnover.

2.Understand why employee leave.

3.Implement retention strategies

The organizations should start with identifying the employee turnover rates within a particular

time period and benchmark it with the competitor organizations. This will help in assessing the

whether the employee retention rates

are healthy in the company. Secondly, the cost of employee turnover can be calculated.

According to a survey, on an average, attrition costs companies 18 months’ salary for each

manager or professional who leaves, and 6 months’ pay for each hourly employee who leaves.

This amounts to major organizational and financial stress, considering that one out of every three

employees plans to leave his or her job in the next two years.

Understand why employees leave :

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Why employees leave often puzzles top management. Exit interviews are an ideal way of

recording and analyzing the factors that have led employees to leave the organization. They

allow an organization to understand the reasons for leaving and underlying issues. However

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

should be appointed with whom the employees feel comfortable in expressing their opinions.

Implement Retention Strategy :

Once the causes of attrition are found, a strategy is to be implemented so as to reduce employee

turnover. The most effective strategy is to adopt a holistic approach to dealing with attrition. An

effective retention strategy will seek to ensure:

Attraction and recruitment strategies enable selection of the ‘right’ candidate for each

role/organization

New employees’ initial experiences of the organization are positive

Appropriate development opportunities are available to employees, and that they are kept aware

of their likely career path with the organization

The organization’s reward strategy reflects the employee drivers

How To Increase Employee Retention

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

quality performers contributes to productivity of the organization and increases morale among

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employees/ Four basic factors that play an important role in increasing employee retention

include salary and remuneration, providing recognition, benefits and opportunities for individual

growth. But are they really positively contributing to the retention rates of a company? Basic

salary, these days, hardly reduces turnover. Today, employees look beyond the money factor.

Retention Bonus

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

strategies to retain employees. Retention Bonus is one of the important tools that are being used

to retain employees. Retention bonus is an incentive paid to an employee to retain them through

a critical business cycle. Retention bonuses are becoming more common in the corporate world

because companies are going through more transitions like mergers and acquisitions. They need

to give key people an attractive incentive to stay on through these transitions to ensure

productivity.

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

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

receive about 10 percent of their annual salaries in bonuses, while management and top-level

supervisors earn an additional 50 percent of their annual salaries. While bonuses based on salary

percentages are the generally used, some companies choose to pay a flat figure. In some

companies, bonuses range from 25 percent to 50 percent of annual salary, depending on position,

tenure and other factors. Employees are chosen for retention bonuses based on their contributions

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

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

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

run somewhere between six months to three years. It can also run for a particular project. A

project has its own life span. As long as the project gets completed, the employees who have

worked hard on it are entitled to receive the retention bonus. For example, the implementation of

a system may take 18 months, so a retention bonus will be offered after 20 months. Although

retention bonuses are becoming more common everywhere, some industries are more likely than

others to offer them. Retail/wholesale companies are the most appropriate to implement stay-pay

bonuses, followed by financial service providers and manufacturing firms. Companies of all

sizes use retention bonus plans to keep knowledge employees retained in the company. To retain

its key senior employees post merger with EDS Corporation, Mphasis is providing cash

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

employees and provide them a cash incentive to keep them motivated.

Hire Right Talent

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

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

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

employer should understand the job requirements clearly. Don’t hire under qualified or clearly

overqualified candidates.

Provide realistic job preview at the time of hiring: Mostly employees leave an

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Organization because they are given the real picture of their job responsibilities at the time of

joining. Attrition rate can be reduced if a right person is hired for a right job.Realistic preview of

the job responsibilities can be given to the employment seekers by various methods like

discussions, trial periods, internships etc.

Clearly discuss what is expected from the employee: Before joining the organization, tell the

candidate what is expected from him. Setting wrong expectations or hiding expectations will

result in early leaving of employees.

Discuss what the expectations of the employees are: Ask employees what they expect from the

organization. Be realistic. If their requirements can be fulfilled only then promise them. Or tell

them before hand that their requirements can not be fulfilled. Don’t show them an unrealistic

picture.

Culture fit: Try to judge individual’s capability to adapt to the organization’s culture. A drastic

change in the culture may give a culture shock to the candidate.

Referrals: According to the research, referred candidates stay longer with the organization.

There is a fear of hampering the image and reputation of the person who referred the candidate.

Manager Role in Retention

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

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

managers’ do or don’t do. It is seen that managers who respect and value employees’

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

life and provided chances for learning have loyal and engaged employees. Therefore, managers

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

Managers and team leaders can reduce the attrition levels considerably by creating a motivating

team culture and improving the relationships with team members. This can be done in a

following way:

Creating a Motivating Environment: Team leaders who create motivating environments are

likely to keep their team members together for a longer period of time. Retention does not

necessarily have to come through fun events such as parties, celebrations, team outings etc. They

can also come through serious events e.g. arranging a talk by the VP of Quality on career

opportunities in the field of quality. Employees who look forward to these events and are likely

to remain more engaged.

Standing up for the Team: Team leaders are closest to their team members. While they need to

ensure smooth functioning of their teams by implementing management decisions, they also

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

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

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

everyone knows how. Therefore, one of the key responsibilities will be providing coaching that

is intended to improve the performance of employees. Managers often tend to escape this role by

just coaching their employees. However, coaching is followed by monitoring performance and

providing feedback on the same.

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

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

Delegation is a great way to develop competencies.

Extra Responsibility: Giving extra responsibility to employees is another way to get them

engaged with the company. However, just giving the extra responsibility does not help. The

manager must spend good time teaching the employees of how to manage responsibilities given

to them so that they don’t feel over burdened.

Focus on future career: Employees are always concerned about their future career. A manager

should focus on showing employees his career ladder. If an employee sees that his current job

offers a path towards their future career aspirations, then they are likely to stay longer in the

company. Therefore, managers should play the role of career counselors as well.

How to Improve Employee Retention

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

Understand that employees need to balance life and work so offer flexible starting times and core

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

Consider allowing anonymous surveys occasionally so employees will be more honest and

candid with their opinions. Provide opportunities within the company for career progression and

cross-training. Offer attractive, competitive benefits and 401(k)s. window.google_render_ad();

Organizations should target job applications for employees who have characteristics that fit well

with the organizational culture. Upon conducting an interview, seek out traits, such as loyalty.

Also, ask the potential employee what motivates them on the job. Having more information

about the potential employee’s expectations can help retain them, should they get hired into the

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company.

Rewards and Recognition

Employees want to be recognized for a job well done. Rewards and recognition respond to this

need by validating performance and motivating employees toward continuous improvement.

Rewarding and recognizing people for performance not only affects the person being recognized,

but others in the organization as well.

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

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

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

unrecognized and not valued, or that others in the organization are rewarded for the wrong

behaviors. Unrecognized and nonvalued performance can contribute to turnover. Recognition for

a job well done fills the employees' need to receive positive, honest feedback for their efforts.

Need for Rewards and Recognition Recognition should be part of the organization's culture

because it contributes to both employee satisfaction and retention. Organizations can avoid

employee turnover by rewarding top performers. Rewards are one of the keys to avoiding

turnover, especially if they are immediate, appropriate, and personal. A Harvard University study

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

hiring mistakes and selecting and retaining top performers.

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

appropriate, and personal. Organizations may want to evaluate whether getting a bonus at the end

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of the year is more or less rewarding than getting smaller, more frequent payouts. Additionally, a

personal note may mean more than a generic company award. Employees should be asked for

input on their most desirable form of recognition. Use what employees say when it comes time to

reward for performance (St. Amour, 2000).

Designing a Rewards and and Recognition Solution

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

Rewards should be visible to all members of the organization.

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

observable achievements.

Rewards should have meaning and value for the recipient.

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

(performing well over a specific time period).

Rewards that are spontaneous (sometimes called on-the-spot awards) are also highly motivating

and should also use a set criteria and standard to maintain credibility and meaning.

Rewards should be achievable and not out of reach by employees.

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

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

employee might be given a spa membership. The nonmonetary rewards are best received when

they are thoughtfully prepared and of highest quality. Professionalism in presenting the reward is

also interpreted as worthwhile recognition.

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Rewards should be appropriate to the level of accomplishment received. A cash award of $50

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

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

organizational debate in which organizational history, financial parameters, and desired results

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

awards.

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

services company that employees more than 6,000 individuals in Omaha, Nebraska, uses a

formal recognition program (Adams, Mahaffey, and Rick, 2002). Rewards are given on a

monthly, quarterly, and yearly basis, and range from Nebraska football tickets, gift certificates,

pens, plaques, mugs, and other items. One of the most popular awards at First Data is called the

"Fat Cat Award" that consists of: $500 gift check

Professional portrait of the employee

Appreciation letter from the CEO and senior management

E-mails, phone calls, and notes from peers

In addition to nonmonetary rewards, employees can be rewarded using money in numerous

ways. Cash is a welcome motivator and reward for improving performance, whether at formal

meetings or on the spot. Variable bonuses linked to performance are another popular reward

strategy. Profit sharing and pay-for-skilis are monetary bonus plans that both motivate

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

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

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

Employee of the month awards Years of service awards

Bonus pay (above and beyond overtime) for weekend work

Invitations for technicians to technical shows and other industry events

Meaningful and Retentional Rewards

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

recognition should be based on a clear set of standards, with performance verifiable or

observable. The standards for the reward should also be achievable. If the reward is based on an

unachievable result, such as a production goal that is beyond employees' power, then those

employees will not be motivated. Meaningful rewards and recognition that are achievable have

the greatest impact.

Case Studies

Employee Retention Best Practices in Keeping and Motivating Employees

By Lis Beth Claus

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

that relates to people management issues. a main concern for any organization (whether small or

large; private, public or nonprofit) is its capacity to attract, engage,

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

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

relevant work skills for today’s jobs, the changing values about work and the high cost of

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

to increase employee retention.

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

University essay from Högskolan i Jönköping/IHH, EMM (Entrepreneurskap, Marknadsföring,

Management)

Author: Josip Bogic; Elina Armanto; Maja Cassel; [2008]

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

stay with the same firm until retirement. Yet, keeping employees for longer periods is an imp-

ortant challenge for firms. One industry where retention is interesting is the auditing industry in

Sweden, this because certain requirements are needed to become an auditor. Firstly, the

employee needs to have a Swedish university degree, including specific courses within au-

diting/accounting. Furthermore, the person needs practical experience for a specific period of

time. Due to these statements the challenge of retaining and motivating valuable em-ployees is

crucial for the auditing firms, which is why we have chosen to do a case study at Auditing

Company X to see how they work with employee retention. We have compared the findings to

our chosen theory, which consist of four categories: the hiring process, in-ternal labor market and

career, motivation and performance, and finally culture and leader-ship. These four categories

are initially based on Leigh Branham?s book: ?Keeping the people who keep you in business: 24

ways to hang on to your most valuable talent? (Bran-ham, 2001).In our conducted case study, at

Auditing Company X, we have been able to conclude that the firm’s retention practices are to a

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great extend in line with the theoretical framework. There are some areas that need further

attention from the company, such as an individua-lized reward system and communication

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

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

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

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

leadership style, remuneration and elements towards job satisfaction

University essay from Växjö universitet/Ekonomihögskolan

Author: Sanna Paulsson; Linda Lindgren; [2008]

Abstract: Introduction: Companies today are forced to function in a world full of change and

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

surrounding competition. It is a fact that a too high turnover rate affects companies in a negative

way and retention strategies should therefore be high on the agenda. When looking at this

problem area we found that there may be actions and tools that companies could use to come to

terms with this problem. Research told us that leadership, remuneration and elements like

participation, feedback, autonomy, fairness, responsibility, development and work-atmosphere is

important for job satisfaction and retention. Object: The main objective is to increase the

understanding regarding employee’s retention in relation to leadership style, remuneration and

elements such as participation, feedback, autonomy, fairness, responsibility, development and

work-atmosphere in the Swedish financial

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

to be retained, and how they consider and react to the chosen areas. The survey has a quantitative

approach with a web based questionnaire and includes 129 respondents from banks, insurance

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and finance companies. The theoretical framework includes leadership and leadership style,

financial as well as non-financial remuneration and research done in later years regarding

participation, feedback, autonomy, fairness, responsibility, development and work-atmosphere

connected to retention.

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

on relations were they feel appreciation. Both appreciations from the closest manager as well as

the company management influences employee job satisfaction in a positive way. More money

was the most common reason for wanting to change jobs, and when asking how the remuneration

system should be designed, base pay with additional bonus and benefits were preferred. But also

non financial factors such as participation, feedback, autonomy, fairness, responsibility,

development and work-atmosphere must be taken in consideration to satisfy since they seem to

increase employees? Willingness to stay in the company.

What leaders can do to keep their key employees - Retention Management

University essay from Göteborgs universitet/Företagsekonomiska institutionen

Author: Lisa Hedberg; Maria Helnius; [2007-09-03T08:22:31Z]

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

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

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

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

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

articles that discuss issues that makes it important for the organization, and the leaders, to work

hard with retention management. The research is based on the leaders in the Finnish case

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

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consequences between leaders actions and employees retention? Which is the leader’s role when

it comes to retaining employees? Purpose statement: The purpose of the thesis is to investigate

and analyze how company leaders today can retain their key employees. How can the provision

of key human resources develop a long-term relationship that makes top employees stay in the

company? The study aims to establish the procedure leaders apply to retain employees. The

purpose is to compare the qualitative study, made at the case company, with findings from the

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

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

and using the Finnish company Tradeka Limited as a case company, is to make the information

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

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

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

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

people stay and what usually drives them away from a company. The leader has become the

main factor in what motivates people’s decision to stay or leave. For organizations to keep its

key employees their number one priority should be to look at their management, because people

leave managers and not companies. Characteristics in a leader that are of importance, as the

leader plays a key role in retention management is: trust builder, esteem builder, communicator,

talent developer and coach, and talent finder. The leader’s relation to the employees plays a

central role in retaining employees, because employees need to feel involvement, and that their

presence count. When retention is a core value, good things happen for customers, employees,

and the company.

AWARENESS OF HR POLICIES

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Chi-Square Test

To find whether there exists a significant relationship between Work Culture of the Company

and interpersonal relationship between employees.

H0: There is a no significant relationship between Work Culture of the Company and

interpersonal relationship between employees.

H1: There is a significant relationship between Work Culture of the Company

and interpersonal relationship between employees.

Calculated value is more than table value therefore accept H0

Result:

There is a significant relationship between overall satisfaction and aspects of job.

KENDALL’S COEFFICIENT OF CONCORDANCE

Null hypothesis (H0): There is a no significant difference in the rank assigned by respondents

towards the attributes that gives them satisfaction in the company.

Alternate hypothesis (H1): There is a significant difference in the rank assigned by respondents

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towards the attributes that gives them satisfaction in the company.

Ranking Based on Satisfaction

K=20

Salary

Superior Role

Team Coordination

Work responsibilities

Rules and Policies

Physical work environment

Training

Calculated value : S= 5815.714

Table value : 1158

Calculated value is more than table value therefore reject H0

Result:

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There is a significant difference in the rank assigned by respondents towards the attributes that

gives them satisfaction in the company.

ONE RUN TEST

Null hypothesis (H0):

The samples are not taken randomly.

Alternate hypothesis (H1):

The samples are taken randomly.

Table:2.5.1

EMPLOYEE’S SATISFACTION REGARDING MONETARY BENEFITS PROVIDED BY

THE COMPANY.

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RESEARCH METHODOLOGY

Research Design

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

information for the study.

The researcher used both descriptive and analytical type of research design for his research

study. The main objective of using descriptive research is to describe the state of affairs as it

exits at present. It mainly involves surveys and fact finding enquiries of different kinds. The

researcher used descriptive research to discover the characteristics of customers. Descriptive

research also includes demography characteristic of consumer who use the product.

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

collected from the customer.

Area of study

The area of study is confined to employees of TATA DOCOMO, Lucknow.

Research instrument

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

Questionnaire Design

The questionnaire framed for the research study is a structured questionnaire in which all the

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questions are predetermined before conducting the survey. The form of question is of both closed

and open type.

The scales used to evaluate questions are:

Dichotomous scale (Yes or No)

Likert 5 point scale (Highly satisfied, satisfied, Neither

Satisfied nor dissatisfied, Dissatisfied, Highly

dissatisfied)

Category scale (Multiple items)

Ranking type (R1, R2, R3…)

The questionnaire for the research was framed in a clear manner such that it enables the

respondents to understand and answer the question easily. The questionnaire was designed in

such a way that the questions are short and simple and is arranged in a logical manner.

Pilot study

It is appropriate to conduct pilot survey to check the reliability of the questionnaire. So pilot

study was conducted on 5 respondents which is a 10% of the sample.

Sampling design

A Sample design is a definite plan for obtaining a sample from a given population. It is the

procedure used by the researcher in selecting items for the sample.

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Sample size

Sample size=125 samples, variance and confidence methods are used for determining sample

size.

Sampling Technique:

I have adopted simple random sampling for the study.

DATA COLLECTION METHOD

Primary data

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

scheduled questionnaire.

Secondary data

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

from the past records maintained by the company.

STATISTICAL TOOLS AND TECHNIQUES

PERCENTAGE ANALYSIS:

Percentage = (No. of respondents/ total no. of respondents)*100

WEIGHTED AVERAGE METHOD:

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Formula:

Mean score = total score/no of respondents.

Where total score = no of respondents*weighted average

CHI – SQUARE TEST:

1. Null Hypothesis (Ho): There is no difference in attributes

2. Alternate Hypothesis(H1): There is a difference in attributes

3. Level of significance α = 0.05

4. Degrees of freedom = (r-1)(c-1)

5. Expected frequency:

E = R.T × C.T

G.T

6. Calculation of :

∑ = ∑ (O-E)²

E

7. The tabulated value of at given level of significance with (r-1)(c-1)

Degrees of freedom

ONE RUN TEST

Null hypothesis (H0):

There is a no significant relationship between the variables

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Alternate hypothesis (H1):

There is significant relationship between the variables

µr = 2 n1 n2 + 1

n1 + n2

2 n1 n2- n1- n1

σr = 2 n1n2

(n1+ n2)2 (n1+ n2-1 )

Lower limit = µr + (2.58) σ

Upper limit = µr + (2.58) σ

KENDALL’S COEFFICIENT OF CONCORDANCE:

Null hypothesis (H0): There is a difference in attributes

Alternate hypothesis (H1): There is no difference in attributes

∑ Rj = (Rj-Rj)2

S= Rj = ∑ Rj

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DATA ANALYSIS

&

INTERPRETATION

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Table No: 1

Working hours are convenient for me

PERCENT

Strongly agree 34

Agree 32

Neither agree nor disagree 18

Disagree 13

Strongly disagree 3

TOTAL 100

CHART 1

34

32

18

133

100

Strongly agreeAgreeNeither agree nor disagreeDisagreeStrongly disagreeTOTAL

Interpretation:

From the above chart and table it is clearly evident that 34% of the respondents strongly agree that

working hours are convenient from them and 32% agree with that and 18% neither agree nor disagree and

13% disagree with the working hours and 3% are strongly against working hours.

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Table No: 2

I'm happy with my work place

PERCENT

Strongly agree 30

Agree 39

Neither agree nor disagree 18

Disagree 8

Strongly disagree 5

100

Chart 2

percent0

102030405060708090

100Strongly agree

Agree

neither agree nor disagree

Disagree

strongly disagree

Total

Interpretation:

From the above table it is clear that 30% respondents strongly agree and 39% respondents agree that they

are happy with their work place only 13% disagreed and 18% have no idea towards their work place.

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Table No: 3

I feel i have too much work to do

PERCENT

strongly agree 7

Agree 9

Neither agree nor disagree 25

Disagree 37

Strongly disagree 22

100

Chart 3

PERCENT0

20406080

100

strongly agree

neither agree nor disagree

strongly disagree

strongly agree

Agree

neither agree nor disagree

Disagree

strongly disagree

Total

Interpretation:

From the above table it is quite clear that the work load is not high, 37% of the respondents disagreed

with the question” I feel I have too much work” and another 22% strongly disagreed, 18% admits they

have too much work and 23% have no idea towards this question.

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Table No: 4

Safety measures provided by the company

PERCENT

strongly agree 28

Agree 31

Neither agree nor disagree 24

Disagree 11

Strongly disagree 6

TOTAL 100

CHART 4

PERCENT0%

20%

40%

60%

80%

100%

Total

strongly disagree

Disagree

neither agree nor disagree

Agree

strongly agree

Interpretation:

From the above table it is evident that the safety measures provided by the organizations are good as 28

and 31% of the respondents agree with that and only 11& 6% disagreed and 24% neither agreed nor

disagreed.

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TABLE NO. 5

My relationship with my supervisor is cordial

PERCENT

strongly agree 30

Agree 41

Neither agree nor disagree 16

Disagree 6

Strongly disagree 7

TOTAL 100

CHART 5

PER-CENT

0 10 20 30 40 50 60 70 80 90 100

Total

strongly disagree

Disagree

neither agree nor disagree

Agree

strongly agree

Interpretation:

From the above table it is clear that relationship between employees and their supervisors are cordial

because 30% of respondents strongly agreed to it and 41% agreed to it and only 13% disagreed and 16%

of respondents have neither agreed nor disagreed.

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TABLE NO 6

My supervisor is not partial

PERCENT

strongly agree 18

Agree 30

Neither agree nor disagree 15

Disagree 19

Strongly disagree 18

TOTAL 100

CHART 6

PERCENT0

102030405060708090

100

Series1

Agree

neither agree nor disagree

Disagree

strongly disagree

Total

Interpretation:

From the above table it is evident that the supervisors are not partial to the employees as 18% strongly

agreed and 30% agreed to the question but 19% disagreed and 18% strongly disagreed this level is quite

high compared to other questions.

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TABLE NO 7

My supervisor considers my idea too while taking decision

PERCENT

strongly agree 26

Agree 43

Neither agree nor disagree 26

Disagree 2

Strongly disagree 3

TOTAL 100

CHART 7

26

43

26

2

3

100

PERCENT

strongly agreeAgreeNeither agree nor disagreeDisagreeStrongly disagreeTOTAL

Interpretation:

From the above table it is clear that 26 and 42% of the respondents agree that supervisors consider their

employees ideas also and only 5% disagreed and 26% neither agreed nor disagreed.

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TABLE NO 8

I'm satisfied with the support from my co-workers

PERCENT

strongly agree 21

Agree 47

Neither agree nor disagree 16

Disagree 9

Strongly disagree 7

TOTAL 100

CHART 8

PERCENT

0 10 20 30 40 50 60 70 80 90 100

Total

strongly disagree

Disagree

neither agree nor disagree

Agree

strongly agree

Interpretation:

From the above table it is clear that relation with co-workers is quite good as nearly 68% of the

respondents agree that they are satisfied with support from co-workers and only 15% disagreed and 16%

have no answer to this.

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TABLE NO 9

People here have concern from one another and tend to help one another

PERCENT

strongly agree 26

Agree 41

Neither agree nor disagree 19

Disagree 9

Strongly disagree 5

TOTAL 100

CHART 9

PERCENT0

102030405060708090

100 strongly agree

Agree

neither agree nor disagree

Disagree

strongly disagree

Total

Interpretation:

From the above table it is clear that in this organization people have concern over each other as 26%

strongly agreed and 41% agreedand only 14% disagreed and 19% neither agreed nor disagreed.

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TABLE NO 10

I'm satisfied with the refreshment facilities

PERCENT

strongly agree 26

Agree 20

Neither agree nor disagree 30

Disagree 15

Strongly disagree 9

TOTAL 100

CHART 10

PERCENT0

102030405060708090

100strongly agree

Agree

neither agree nor disagree

Disagree

strongly disagree

Total

Interpretation:

From the above table it is clear that 26% employees are strongly satisfied with the refreshment facilities

offered by the company as 15% of respondents disagreed and 9% strongly disagreed and 30% neither

agreed nor disagreed and only 20% agreed.

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FINDINGS

From the study, the researcher has come to know that most of the respondents have job

satisfaction; the management has taken the best efforts to maintain cordial relationship with the

employees. Due to the working conditions prevailing in this company, job satisfaction of each

respondent seems to be the maximum. From the study, I have come to know that most of the

employees were satisfied with the welfare measures provided by TATA DOCOMO. The

employees of TATA DOCOMO get more benefits compare to other companies.

The respondents are satisfied with the environment and nature of work

factors .

The respondent’s relationship with the superiors and colleagues are quite

good .

The Respondents are not provided with proper welfare facilities.

The communication and motivation of employees by their superiors in

this organization is reasonable.

The Pay and promotion activities in this organization is also good .

The Respondents are overall satisfied with their job .

The refreshment facilities are also need to be improved

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SUGGESTION AND RECOMMENDATION

In the organization most of employees are satisfied with all the facilities provided by company. But there

are some employees also who are not satisfied with the company.

Management should try to convert unsatisfied employees in to satisfied employees. Because if

employee is not satisfied than the he is not able to give his 100% to his work and the productivity

of employee decrease. So management should try to satisfied his employees because employees

are the assets of the company not a liabilities.

Employee should be provided with proper training.

Employee should be appreciated for good work.

Employee should be motivated to welcome the change.

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

should be given.

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CONCLUSION

Retention is an important concept that has been receiving considerable attention from academicians, researchers and practicing HR managers. In its essence, Retention comprises important elements such as the need or content, search and choice of strategies, goal-directed behavior, social comparison of rewards reinforcement, and performance-satisfaction.

The increasing attention paid towards Retention is justified because of several reasons. Motivated employees come out with new ways of doing jobs. They are quality oriented. They are more productive. Any technology needs motivated employees to adopt it successfully. Several approaches to Retention are available.

Early theories are too simplistic in their approach towards Retention. For example, advocates of scientific Management believe that money is the motivating factor. The Human Relations Movement posits that social contacts will motivate workers. Mere knowledge about the theories of Retention will not help manager their subordinates. They need to have certain techniques that help them change the behavior of employees.

One such technique is reward. Reward, particularly money, is a motivator according to need-based and process theories of Retention. For the behavioral scientists, however, money is not important as a motivator. Whatever may be the arguments, it can be stated that money can influence some people in certain circumstance. Being an outgrowth of Herzberg’s, two factor theory of Retention, job enrichment is considered to be a powerful motivator. An enriched job has added responsibilities.

The makes the job interesting and rewarding. Job enlargement refers to adding a few more task elements horizontally. Task variety helps motivate job holders. Job rotation involves shifting an incumbent from one job to another.

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LIMITATIONS OF THE STUDY

Limitation are as follows-

Data collected is based on questionnaire..

The information collected by the observation method is very limited.

The result would be varying according to the individuals as well as time.

Some respondents hesitated to give the actual situation; they feared that management would take

any action against them

The findings and conclusions are based on knowledge and experience of the respondents

sometime may subject to bias.

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BIBLIOGRAPHY

BOOKS:

Ashwathapa K., Human Resource Management (third edition), Tata Mc Graw Hill

Publication Company Ltd.

Chhabra. , T. N. Human Resource Management, Dhanpat Rai $Co(P)Ltd. India, ninth

edition.

Kothari C.R., Research Methodology, New Delhi; New Age International

Publication, second edition.

Web-Site:-

www.TATA DOCOMO.com

www.google.com

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ANNEXURE

QUESTIONNAIRE

“A study on Job Satisfaction of Employees in TATA DOCOMO.

1. Name: …………………………………………………………………………………

…

2. Age: ………………

3. Gender: Male

Female

4. Designation……………..

Ques1- Working hours are convenient for me-

1 strongly agree 2 agree 3 neither agree nor disagree 4 disagree 5 strongly disagree

Ques2- I am happy with my work place-

1. strongly agree 2. agree 3.neither agree nor disagree 4. disagree 5. strongly disagree

Ques3- I feel I have too much work to do-

1. strongly agree 2. agree 3.neither agree nor disagree 4. disagree 5. strongly disagree

Ques4- Safety measures provided by the company are good-

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1. strongly agree 2. agree 3.neither agree nor disagree 4. disagree 5. strongly disagree

Ques5- My relationship with my supervisor is cordial-

1. strongly agree 2. agree 3.neither agree nor disagree 4. disagree 5. strongly disagree

Ques6- My supervisor is not partial-

1. strongly agree 2. agree 3.neither agree nor disagree 4. disagree 5. strongly disagree

Ques7- My supervisor consider my ideas while taking decision-

1. strongly agree 2. agree 3.neither agree nor disagree 4. disagree 5. strongly disagree

Ques8- I am satisfied with the support from my coworkers-

1. strongly agree 2. Agree 3.neither agree nor disagree 4. disagree 5. strongly disagree

Ques9- People here have concern from one another and tend to help-

1. strongly agree 2. agree 3.neither agree nor disagree 4. disagree 5. strongly disagree

Ques10- I am satisfied with the refreshment facility-

1. strongly agree 2. agree 3.neither agree nor disagree 4. disagree 5. strongly disagree

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