employee retention in pvt sector project report

8/6/2019 Employee Retention in Pvt Sector Project Report

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EMPLOYEE RETENTION IN PRIVATE SECTOR

DISSERTATION REPORT

2010

Submitted for the partial fulfillment of the requirement for the award

Of

POST GRADUATE DIPLOMA IN MANAGEMENT

SUBMITTED BY

ANANYA DUBEY

8007

UNDER THE SUPERVISION OF

INTERNAL: NIKUNJ AGARWAL

DEPARTMENT OF MANAGEMENT

INSTITUTE OF MANAGEMENT EDUCATION,

SAHIBABAD


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CERTIFICATE

This is to certify that the dissertation entitled (employee retention in public

sector) and submitted by (Ananya Dubey) having roll no. 8007 for the partial

fulfilment of the requirements of PGDM (batch), IME, embodies the bonafide

work done by her supervision.

Signature of guide

Place:

Date:


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ABSTRACT

Employee retention is a process in which the employees are encouraged to

remain with the organization for the maximum period of time or until the

completion of the project. Employee retention is beneficial for the organization

as well as the employee. Employees today are different. They are not the ones

who dont have good opportunities in hand. As soon as they feel dissatisfied

with the current employer or the job, they switch over to the next job. It is the

responsibility of the employer to retain their best employees. If they dont, they

would be left with no good employees. A good employer should know how to

attract and retain its employees.

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

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

organizations spend in compensation. When the difference becomes too great

and another opportunity occurs, turnover can result. Pay is defined as the wages,salary, or compensation given to an employee in exchange for services the

employee performs for the organization. Pay is more than "dollars and cents;" it

also acknowledges the worth and value of the human contribution. What people

are paid has been shown to have a clear, reliable impact on turnover in

numerous studies.

Employees comprise the most vital assets of the company. In a work place

where employees are not able to use their full potential and not heard and

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

environment while employees get a sense of achievement and belongingness

from a healthy work environment, the company is benefited with a stronger,

reliable work-force harbouring bright new ideas for its growth Blog Online And

Earn Money.


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ACKNOWLEDGEMENT

I am very grateful Mrs. Nikunj Agarwal for giving me the opportunity of

working in this project and give me useful instruction .

I extend my regards and sincere thanks to Dr. Taruna Gautam with who support

& effort, I completed my project.

Also I am thankful to the management and my fellow colleges for making my

project duration a memorable and fruitful one.

Ananya Dubey

(Post graduation diploma in management)

HR & I.T.

INSTITUTE OF MANAGEMENT EDUCATION


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CONTENTS

1. Introduction

Need of the study

Scope of the study

2. Research methodology

Objective of the study

Research methodology (Sample size, Instrument used, Methods of data

collection)

Scope of the study

limitations

6. Descriptive work

7. Data Analysis

8. Suggestion and Conclusions

9. Bibliography

10. References

11.Appendices

12. Checklist of the items in the project


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Introduction

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

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

as supplies and payroll, few take into consideration how much employee

turnover will cost them: Ernst & Young estimates it costs approximately

$120,000 to replace 10 professionals. According to research done by Sibson &

Company, to recoup the cost of losing just one employee a fast food restaurantmust sell 7,613 combo meals at $2.50 each. Employee turnover costs companies

30 to 50% of the annual salary of entry-level employees, 150% of middle-level

employees, and up to 400% for upper level, specialized employees. Now that so

much is being done by organizations to retain its employees.

Why is retention so important? Is it just to reduce the turn over costs ?

Well, the answer is a definite no. Its not only the cost incurred by a companythat emphasizes the need of retaining employees but also the need to retain

talented employees from getting poached.

Retention involves five major things:

Compensation

Environment

Growth

Relationship

Support

Compensation:


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Compensation constitutes the largest part of the employee retention process.

The employees always have high expectations regarding their compensation

packages.

Compensation packages vary from industry to industry. So an attractive

compensation package plays a critical role in retaining the employees.

Compensation includes salary and wages, bonuses, benefits, prerequisites, stock

options, bonuses, vacations, etc. While setting up the packages, the following

components should be kept in mind:

Salary and monthly wage: It is the biggest component of the

compensation package. It is also the most common factor of comparison

among employees. It includes

Basic wage

House rent allowance

Dearness allowance

City compensatory allowance

Salary and wages represent the level of skill and experience an individual has.

Time to time increase in the salaries and wages of employees should be done.

And this increase should be based on the employees performance and his

contribution to the organization. Bonus: Bonuses are usually given to the

employees at the end of the year or on a festival. Economic benefits: It includes

paid holidays, leave travel concession, etc. Long-term incentives: Long term

incentives include stock options or stock grants. These incentives help retain

employees in the organization's start up stage.

Health insurance: Health insurance is a great benefit to the employees. It

saves employees money as well as gives them a peace of mind that they have


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somebody to take care of them in bad times. It also shows the employee that the

organization cares about the employee and its family.

After retirement: It includes payments that an Employee gets after he

retires like EPF (Employee Provident Fund) etc.

Miscellaneous compensation: It may include employee assistance

programs (like psychological counselling, legal assistance etc), discounts on

company products, use of a company cars, etc.

Employers And Their Key Drivers To Attract And Retain Talent

Employers Key Drives To Attract And Retain Talent

Procter and Gamble India

Early responsibilities in career

Flexible and transparent organizational culture

Global opportunities through a variety of exposure and diverse

experiences

Performance Recognition

American Express (India)

Strong global brand

Value-based environment

Pioneer in many people practices

NTPC

Learning and growth opportunities


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Competitive rewards

Opportunity to grow, learn and implement

Strong social security and employee welfare performance- oriented

culture.

Johnson & Johnson

Strong values of trust, caring fairness, and respect within the organization

Freedom to operate at work

Early responsibility in career

Training and learning opportunities

Visible, transparent and accessible leaders

Competitive rewards

Innovative HR programs and practices

Glaxo Smith Kline Consumer Healthcare

Performance-driven Rewards Its belief in Growing our own timber

Comprehensive development and learning programs

Flat organization, where performance could lead to very quick

progression

Challenging work context

Competitive rewards

Exhaustive induction and orientation program

Tata Steel

Organization philosophy and culture

Job stability

Freedom to work and innovate


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Colgate Palmolive India

Company brand

Open , transparent, and caring organization

Management according to the managing with respect to guiding

principles

Training ad development programs

Structured career planning process

Global career opportunities

Wipro

Companys brand as an employer

Early opportunities for growth

High degree of autonomy

Value compatibility

Innovative people program

Indian Oil Corporation

Company brand image

Work ethics

Learning and growth opportunities

Challenging work assignments

Growing organization

TCS

The group brand equity

Strong corporate governance and citizenship

Commitment to learning and development


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Best in people practices

Challenging assignments

Opportunity to work with fortune 500 clients

Organization Environment

It is not about managing retention. It is about managing people. If an

organization manages people well, employee retention will take care of itself.

Organizations should focus on managing the work environment to make better

use of the available human assets. People want to work for an organization

which provides

Appreciation for the work done

Ample opportunities to grow

A friendly and cooperative environment

A feeling that the organization is second home to the employee

Organization environment includes

Culture

Values

Company reputation

Quality of people in the organization

Employee development and career growth

Risk taking

Leading technologies

Trust

Types of environment the employee needs in an organization


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Organizations can not keep aside the individual goals of employees and

foster organizations goals. Employees priority is to work for themselves

and later on comes the organization. If hes not satisfied with his growth,

hell not be able to contribute in organization growth.

Training and development: Employees should be trained and given

chance to improve and enhance their skills. Many employers fear that if

the employees are well rained, theyll leave the organization for better

jobs. Organization should not limit the resources on which organizations

success depends. These trainings can be given toimprove many skills

like:

Communications skills

Technical skills

In-house processes and procedures improvement related skills or

customer satisfaction related skills

Special project related skills

Need for such trainings can be recognized from individual performance

reviews, individual meetings, employee satisfaction surveys and by being in

constant touch with the employees.

Importance of Relationship in Employee Retention Program

Sometimes the relationship with the management and the peers becomes the

reason for an employee to leave the organization. The management is

sometimes not able to provide an employee a supportive work culture and

environment in terms of personal or professional relationships. There are times

when an employee starts feeling bitterness towards the management or peers.

This bitterness could be due to many reasons. This decreases employees

interest and he becomes demotivated. It leads to less satisfaction and eventually

attrition. A supportive work culture helps grow employee professionally and


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boosts employee satisfaction. To enhance good professional relationships at

work, the management should keep the following points in mind.

Respect for the individual: Respect for the individual is the must in the

organization.

Relationship with the immediate manager: A manger plays the role of

a mentor and a coach. He designs and plans work for each employee. It is

his duty to involve the employee in the processes of the organization. So

an organization should hire managers who can make and maintain good

relations with their subordinates.

Relationship with colleagues: Promote team work, not only among

teams but in different departments as well. This will induce competition

as well as improve the Relationship among colleagues.

Recruit whole heartedly: An employee should be recruited if there is a

proper place and duties for him to perform. Otherwise hell feel useless

and will be dissatisfied.

Employees should know what the organization expects from them and whattheir expectation from the organization is. Deliver what is promised. Promote an

employee based culture: The employee should know that the organization is

there to support him at the time of need. Show them that the organization cares

and hell show the same for the organization. An employee based culture may

include decision making authority, availability of resources, open door policy,

etc. Individual development: Taking proper care of employees includes

acknowledgement to the employees dreams and personal goals. Create

opportunities for their career growth by providing mentorship programs,

certifications, educational courses, etc.

Induce loyalty: Organizations should be loyal as well as they should

promote loyalty in the employees too. Try to make the current employees

stay instead of recruiting new ones.


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Support Lack of support from management can sometimes serve as a reason for

employee retention. Supervisor should support his subordinates in a way so that

each one of them is a success. Management should try to focus on its employees

and support them not only in their difficult times at work but also through the

times of personal crisis. Management can support employees by providing them

recognition and appreciation. Employers can also provide valuable feedback to

employees and make them feel valued to the organization.

The feedback from supervisor helps the employee to feel more responsible,

confident and empowered. Top management can also support its employees in

their personal crisis by providing personal loans during emergencies, childcare

services, employee assistance Programs, conseling services, etcEmployers can also support their employees by creating an environment of trust

and inculcating the organizational values into employees. Thus employers can

support their employees in a number of ways as follows:

By providing feedback

By giving recognition and rewards

By counseling them

By providing emotional support


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RESEARCH METHODOLOGY

Research Design:

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

collect the information for the study.

The researcher used both descriptive and analytical type of research design for

his research study. The main objective of using descriptive research is to

describe the state of affairs as it exits at present. It mainly involves surveys andfact 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:


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The area of study is confined to employees of GEMINI COMMUNICATION

LTD,Chennai.

Research instrument:

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

Questionnaire Design:

The questionnaire framed for the research study is a structured questionnaire inwhich all the 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


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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 thesample.

Sample size:

Sample size=125 samples, variance and confidence methods are used for

determining sample size.

Sampling Technique:

The researcher adopted simple random sampling for the study.


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DATA COLLECTION METHOD

Primary data:

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

structured scheduled questionnaire.

Secondary data:

The secondary data are collected through the structured questionnaire, literature

review and also from the past records maintained by the company.

STATISTICAL TOOLS AND TECHNIQUES

PERCENTAGE ANALYSIS:


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Percentage = (No. Of respondents / total no. Of respondents)*100

WEIGHTED AVERAGE METHOD:

Formula:

Mean score = total score/no of respondents.

Where total score = no of respondents*weighted average

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 = 0.05

4. Degrees of freedom = (r-1)(c-1)

5. Expected frequency:

E = R.T C.T6. Calculation of :

= (O-E)2

7. The tabulated value of at given level of significance with (r-1)(c-1)

ONE RUN TEST:

Null hypothesis (H0):

There is a no significant relationship between the variables

Alternate hypothesis (H1):

There is significant relationship between the variables

r = 2 n1 n2 + 1

n1 + n2


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2 n1 n2- n1- n1

r = 2 n1n2

(n1+ n2)2 (n1+ n2-1 )

Lower limit = r + (2.58)

Upper limit = r + (2.58)

KENDALLS 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

LIMITATIONS OF THE STUDY

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

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

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

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

respondents.

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

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

of economy etc.


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Analysis and Interpretation of data

1. PERCENTAGE ANAYLSIS

2. AWARENESS OF HR POLICIES

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


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Result:

There is a significant relationship between overall satisfaction and aspects of

job.

KENDALLS 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 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 : 1158Calculated value is more than table value therefore reject H0

Result:

There is a significant difference in the rank assigned by respondents towards the

attributes that gives them satisfaction in the company.

ONE RUN TEST:


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Null hypothesis (H0): The samples are not taken randomly.

Alternate hypothesis (H1): The samples are taken randomly.

EMPLOYEES SATISFACTION REGARDING MONETARY BENEFITS

PROVIDED BY THE COMPANY.

Retention Management:

Abstract:

Background: retention management is a highly topical subject and animportant 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, towork hard with retention management. The research is based on the leaders in

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

answered: What are the consequences between leaders actions and employees

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

Purpose statement: The purpose of the thesis is to investigate and analyze how

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


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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?

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 themain factor in what motivates peoples decision to stay or leave. For

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

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

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

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

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

Employee Retention Strategies

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

strategies are:

1. Hire the right people in the first place.


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

done.

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

organization.

4. Have faith in them, trust and respect them

5. Provide them information and knowledge.

6. Keep providing them feedback on their performance.

7. Recognize and appreciate their achievements.

8. Keep their morale high.

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

These practices can be categorized in 3 levels:

Low,

medium and

high level.

Low Level Employee Retention Strategies:

Appreciating and recognizing a well done job

Personalized well done and thank-you cards from supervisors

Congratulations e-cards or cards sent to spouses/families

Voicemails or messages from top management

Periodic days off for good performance

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

Recognizing professional as well as personal significant events

Wedding gifts

Anniversary gifts

New born baby gifts

Scholarships for employees children


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Get well cards/flowers

Birthday cards, celebrations and gifts

Providing benefits

Home insurance plans

Legal insurance

Travel insurance

Disability programs

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

Discounts in cinema halls, museums, restaurants, etc.

Retail store discounts

Computer peripherals purchase discounts

Providing workplace conveniences

On-site ATM

On-site facilities for which cost is paid by employees

laundry facility for bachelors

Shipping services

Assistance with tax calculations and submission of forms

Financial planning assistance

Casual dress policies

Facilities for expectant mothers

Parking

Parenting guide

Lactation rooms

Flexi timings

Fun at work

Celebrate birthdays, anniversaries, retirements, promotions, etc

Holiday parties and holiday gift certificates


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Occasional parties like diwali, holi, dushera, etc

Organize get together for watching football, hockey, cricket matches

Organize picnics and trips for movies etc

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

Providing conveniences at workplace


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Gymnasiums

Athletic membership program

Providing training and development and personal growth opportunities

Sabbatical programs

Professional skills development

Individualized career guidance

High Level Strategies

Promoting Work/Life Effectiveness

Develop flexible schedules

Part-time schedules

Extended leaves of absence

Develop Support Services

On-site day care facility etc.

Understand employee needs: This can be done through 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 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


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Higher study opportunities for employees

Vocational counselling

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 organizations 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 organizations 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.

Retention Success Mantra

Transparent Work Culture


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In todays 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 arefinally 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 individuals quality of work life

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

organization, administrative system and relationship between life on and off the

job. The basic objectives of a QWL program are improved working conditions

for the Employee and increase organizational effectiveness.

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

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

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

person. The employer and employee, aware of their risks and rights, could

achieve a lot in Their mutually beneficial dialogue.

Suitable working time: Organizations are offering flexible work options to

their employees wherein employees enjoy flexi-timings for dedicating their

efforts at work.

Appropriate salary: The appropriate as well as attractive salary has always

been an important factor in retaining employees. Providing employees salary at

par with the other counterparts of above that what competitors are paying


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an important task. A proactive approach can be adopted to reduce attrition.

Strategies should be framed in advance and implemented when the times

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

these strategies.

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

Is the benefit it offers or the compensation packages it gives away to its

employees? Or is it measured in terms of how they value their employees or in

terms of customer satisfaction? Becoming an employer of choice involves

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

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

engaged in the organization. Keeping them engaged is an important task. The

fresh talent should be utilized to maximum before they start feeling bored in the

organization.

Optimize employee engagement: An organizations productivity is measured

not in terms of employee satisfaction but by employee engagement. Employeesare 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


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be provided proper coaching by their superiors. Planed coaching sessions help

an individual to work through issues, maximize his potential and return to peak

performance.

Feedback

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

manager. The amount of information employees receive about how well or how

poorly they have performed is what we call feedback. It is a dialog between a

manager and an employee which acts as a way of sharing information about the

performance. It suggests where the employee performance is effective and

where performance has to improve. Managers can provide either positive

feedback or negative feedback to employees. This feedback helps the employee

assess his performance and identify the improvement areas. Positive feedback

communicates managerial satisfaction. Positive recognition for good

performance boosts up morale of employees and results in performanceimprovement to a higher productivity level. It is believed that positive feedback

is the only type of feedback that generates performance above the minimum

acceptable level. Negative feedback obviously communicates managers

dissatisfaction. However, negative feedback sometimes make employee to put

more efforts to improve his performance. But such times are very rare.

Moreover this improvement is short term. Some managers do not provide anykind 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:


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It builds trust and enhances communication between manager and

employee.

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

strengths.

Positive feedback leads to employee retention and Retention.

It helps in identifying performance areas that need improvement and

specific ways to improve them. It acts as an opportunity to enhance

performance by identifying resources for skill development. It is 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 managers

side is necessary as it help employees to improve their performance and

increase productivity.

Communication Between Employee and Employer

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

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

that both the sender and receiver understand. So there is a need to encode and

decode the message in the process. Encoding and decoding also helps in the

security of the message. The process of communication is incomplete without

the feedback. Communication is the solution to almost everything in this world.

Same applies to employee retention also.


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

their employers. Employees look for organizations where communication and

process are transparent. Nothing is hidden and shared with the employees.

There are 3 categories of employees:

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

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

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

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

employers.

Category C: These are the employees who have proper, well structured

communication with their employers. Communication is also the way to win the

employees trust in the organization. Employees trust the employers who are

friendly and open to them. This trust leads to employee loyalty and finallyretention.

Employers also feel that the immediate supervisors are the most authenticatedand 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


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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 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 spenton 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 thatencourage 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.


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

attrition rates are low. Higher retention rates motivate potential employees to

join the organization.

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

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

the company directly which many a times goes unnoticed. And even after this

you cannot assure us of the same efficiency from the new employee

What Makes Employee Leave? Employees do not leave an organization without

any significant reason. There are certain circumstances that lead to their leaving

the organization. The most common reasons can be:

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

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

Unexpected job responsibilities lead to job dissatisfaction.

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

which matches his personality. If he is given a job which mismatches hispersonality, then he wont be able to perform it well and will try to find out

reasons to leave the job.

No growth opportunities: No or less learning and growth opportunities in the

current job will make candidates job and career stagnant.


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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 :

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 appointedwith 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


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each role/organization New employees initial experiences of the organization

are positive Appropriate development opportunities are available to employees,

and that they are kept aware of their likely career path with the organization

The organizations reward strategy reflects the employee drivers

How To Increase Employee Retention Companies have now realized the

importance of retaining their quality workforce. Retaining quality performers

contributes to productivity of the organization and increases morale among

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

employee retention include salary and remuneration, providing recognition,

benefits and opportunities for individual growth. But are they really positively

contributing to the retention rates of a company? Basic salary, these days,

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

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 theimportant 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 usefultool 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.


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Employees are chosen for retention bonuses based on their contributions to

management and the generation of revenue. Retention bonuses are generally

vary from position to position and are paid in one lump sum at the time of

termination. However, some companies pay in instalments 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 bonusplan 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


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requirements clearly. Dont hire under qualified or clearly overqualified

candidates.

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

an organization because they are given the real picture of their job

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

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

be given to the employment seekers by various methods like discussions, trial

periods, internships etc.

Clearly discuss 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 befulfilled only then promise them. Or tell them beforehand that their

requirements cannot be fulfilled.

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

capability to adapt to the organizations culture. A drastic change in the culture

may give a culture shock to the candidate.

Referrals: According to the research, referred candidates stay 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


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

excuse. However, research has shown that people join companies, but leave

because of what their managers do or dont do. It is seen that managers who

respect and value employees competency, pay attention to their aspirations,

assure challenging work, value the quality of work life and provided chances for

learning have loyal and engaged employees. Therefore, managers and team

leaders play an active and vital role in employee retention.

Managers and team leaders can reduce the attrition levels considerably by

creating a motivating team culture and improving the relationships with team

members. This can be done in a following way:

Creating a Motivating Environment: Team leaders who create motivating

environments are likely to keep their team members together for a longer period

of time. Retention does not necessarily have to come through fun events such

as parties, celebrations, team outings etc. They can also come through serious

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


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employees. However, coaching is followed by monitoring performance and

providing feedback on the same.

Delegation: Many team leaders and managers feel that they are the only people

who can do a particular task or job. Therefore, they do not delegate their jobs as

much as they should. Delegation is a great way to develop competencies.

Extra Responsibility: Giving extra responsibility to employees is another way to

get them engaged with the company. However, just giving the extra

responsibility does not help. The manager must spend good time teaching the

employees of how to manage responsibilities given to them so that they dont

feel over burdened.

Focus on future career: Employees are always concerned about their future

career. A manager should focus on showing employees his career ladder. If an

employee sees that his current job offers a path towards their future career

aspirations, then they are likely to stay longer in the company. Therefore,managers should play the role of career counsellors 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 flexiblestarting 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 .


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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

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

company.

Rewards and Recognition

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

respond to this need by validating performance and motivating employees

toward continuous improvement. Rewarding and recognizing people for

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

organization as well. Through a rewards program, the entire organization can

experience the commitment to excellence. When the reward system is credible,

rewards are meaningful; however, if the reward system is broken, the oppositeeffect will occur. Employees may feel that their performance is unrecognized

and not valued, or that others in the organization are rewarded for the wrong

behaviours. Unrecognized and no valued performance can contribute to

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

positive, honest feedback for their efforts.

Need for Rewards and Recognition

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

both employee satisfaction and retention. Organizations can avoid employee


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turnover by rewarding top performers. Rewards are one of the keys to avoiding

turnover, especially if they are immediate, appropriate, and personal. A Harvard

University study concluded that organizations can avoid the disruption caused

by employee turnover by avoiding hiring mistakes and selecting and retaining

top performers.

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

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

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

getting smaller, more frequent payouts. Additionally, a personal note may mean

more than a generic company award. Employees should be asked for input on

their most desirable form of recognition. Use what employees say when it

comes time to reward for performance.

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.


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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.

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


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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-skills are monetary bonus plans that both motivate individuals and

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

daily Retention. Sometimes a personal note may mean more than a generic

company award.

In one survey, employees cited the following as meaningful rewards (Moss,

2000):

Employee of the month awards Years of service awards

Bonus pay (above and beyond overtime) for weekend work

Invitations for technicians to technical shows and other industry events

Meaningful and Retention Rewards

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

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

performance verifiable or observable. The standards for the reward should also

be achievable. If the reward is based on an unachievable result, such as a

production goal that is beyond employees' power, then those employees will not

be motivated. Meaningful rewards and recognition that are achievable have the

greatest impact.

Case Studies

1.Employee Retention Best Practices in Keeping and Motivating

Employees By LisBeth Claus Ask any CEO of an organization, What


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keeps you awake at night? and you will get a response that relates to

people management issues. a main concern for any organization (whether

small or large; private, public or nonprofit) is its capacity to attract,

engage, and retain the right people. The problem of retention is

compounded by the predicted talent shortage resulting from the upcoming

retirement of the baby boomers, the scarcity of talent with relevant work

skills for todays jobs, the changing values about work and the high cost

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

number of recommendations to increase employee retention.

2.How Auditing Company X Works with Retaining Valuable

Employees : Swedish Case study University essay from Hogskolan i

Jonkoping/IHH, EMM (Entrepreneurskap, Marknadsforing,

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 tothese statements the challenge of retaining and motivating valuable

employees is crucial for the auditing firms, which is why we have chosen

to do a case study at Auditing Company X to see how they work with

employee retention. We have compared the findings to our chosen theory,

which consist of four categories:


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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 firms retention practices are to a great extend in line with the

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

company, such as an individualized reward system and communication between

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

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

orientation, Auditing Company X seems to have incorporated this into their

practices successfully.

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

regarding leadership style, remuneration and elements towards job satisfactionUniversity essay from Vaxjo universitet/Ekonomihogskolan 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 toohigh 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.


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Object: The main objective is to increase the understanding regarding

employees retention in relation to leadership style, remuneration and elements

such as participation, feedback, autonomy, fairness, responsibility, development

and work atmosphere in the Swedish financial

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

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

chosen areas.

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

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

theoretical framework includes leadership and leadership style, financial as well

as non-financial remuneration and research done in later years regarding

participation, feedback, autonomy, fairness, responsibility, development and

work-atmosphere connected to retention.

Conclusion: The result shows that regarding leadership the respondents prefer

leadership based on relations were they feel appreciation. Both appreciations

from the closest manager as well as the company management influences

employee job satisfaction in a positive way. More money was the most common

reason for wanting to change jobs, and when asking how the remunerationsystem 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.

4.What leaders can do to keep their key employees - Retention Management


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University essay from Goteborgs universitet/Foretagsekonomiska 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

consequences between leaders actions and employees retention? Which is the

leaders role when it comes to retaining employees? Purpose statement: Thepurpose 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


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

management works in practice. Eleven qualitative interviews were conducted at

Tradeka? financial department, both with supervisors and employees to get a

broader view at the phenomenon retention management. Result: Leaders and

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

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

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

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

should be to look at their management, because people leave managers and not

companies. Characteristics in a leader that are of importance, as the leader plays

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

communicator, talent developer and coach, and talent finder. The leaders

relation to the employees plays a central role in retaining employees, 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. because employees need to feel involvement, and that their presencecount. When retention is a core value, good things happen for customers,

employees, and the company.

FINDINGS


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

of respondents are not aware of HR Policies.

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

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

of accurate information at right time.

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

expectation and 18% respondents are not able to meet superiors expectation.

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

compare to employees handling similar responsibilities, and 39% of

respondents feels that there pay is less with compare to employees handling

similar responsibilities.

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

cleanliness of company infrastructure and 30% of respondents are not satisfied

with hygiene and cleanliness of company infrastructure.

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

system, storage facilities of company and 60% of respondents are not satisfied

with Availability of system, storage facilities of company.

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

and 22% of respondents skills are not recognized by superiors.

It is found out that, 74% of respondents feel that superiors are taking efforts

to motivate them and 26% of respondents feel that superiors are not taking

efforts to motivate them. It is found out that, 83% of respondents feel that workload is manageable

and 10% of respondents feel that workload is very hard to manage.

It is found out that,55% of respondents feels that the field worker are able to

get updates on internal activities, and 45% of respondents feels that the field

worker are not able to get updates on internal activities.

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


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

accessible.

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

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

resolved quickly.

From weighted Average analysis it is found that most of the respondents are

satisfied with the working hours of the organization

From weighted Average analysis it is found that roles & responsibilities are

clearly defined by the Reporting heads.

From weighted Average analysis it is found that employees feel that their

superior's commitment towards job is good.

From weighted Average analysis it is found that respondents feel that

training and orientation programs are neither good nor bad.

From weighted Average analysis it is found that most of the respondents are

satisfied with job.

From chi-square it is found that there is a significant relationship between

Work Culture of the Company and interpersonal relationship between

employees.

From chi-square it is found that there is a no significant relationship between

overall satisfaction and Commitment towards Company.

From chi-square it is found that there is a significant relationship between

overall satisfaction and aspects of job. From Kendalls coefficient of concordance it is found that there is a

significant difference in the rank assigned by respondents towards the attributes

that gives them satisfaction in the company.

From One Run Test it is found that the samples are taken randomly.

SUGGESTIONS


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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.

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 behaviour, 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


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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 manage their subordinates. They need to

have certain techniques that help them change the behavior of employees.One

such technique is reward. Reward, particularly money, is a motivator according

to need-based and process theories of Retention. For the behavioral scientists,

however, money is not important as a motivator. Whatever may be the

arguments, it can be stated that money can influence some people in certain

circumstance. Being an outgrowth of Herzbergs, two factor theory of

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

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

rewarding. Job enlargement refers to adding a few more task elements

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

shifting an incumbent from one job to another.

Recommendations

1. Develop an attractive employee value proposition.

An employee value proposition means that your company has something

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

you must understand what makes your organization attractive to potential

recruits and current employees. Branding yourself as an employer of choice isnot just a slick set of marketing tactics. The best advocates for an employers

brand are its current employees. What messages do they send to others about

their employer? Are they honestly saying and believing that, This is a great

place to work.

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


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Every company should have all the normal compensation mechanisms common

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

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

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

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

employee. The total reward structure should include, in addition to

compensation, support for employees to attain their personal objectives aligned

with the goals of their organization.

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

Most managers and employees are not enamored with the performance appraisal

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

serves many purposes. Ongoing performance feedback allows employees to

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

indicates that their managers pay attention to them and that their performance

matters. This feedback contributes to employee engagement and retention.

4. Be flexible in terms of work-life balance. Workers more and more value a

balance between work and life. They want more flexible ways to engage with

their employer. To attract and retain workers with different work and career

expectations, organizations have to be more flexible in structuring work and

its expectations. It calls for a different managerial mindset and practices thatinvolve letting go of old ways of controlling workers time and attendance in

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

5. Create a culture of engagement. Employees have become more connected

with others in the organization (and the broader supply-and-customer chain)

through project-based team work and process management activities.

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


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from company loyalty. It is organizations that create the culture and climate that

allow people, processes and projects to become fully connected and engaged

with one another. Engaged employees are more likely to stay with their

employer.

6. Train managers to be effective. Exit interviews consistently show that poor

and bad management practices greatly contribute to an employees decision to

leave a company. It is imperative to provide supervisors and managers with

adequate tools to become effective managers since we cannot assume that these

competencies are innate. Professor Patrick Connor, recently retired after

teaching 25 years at the atkinson Graduate school of Management, is

famous among MBA students and alumni for his Connorisms.He told them,

your employees do not work for you, they work for themselves. When I teach

my students about managing organizations, I have them reflect on what really

matters to employees and what they are constantly asking of their managers and

their organizations. In the end, what employees expect of their managers isfairly simple: Can I trust you? are you committed to excellence? Do you care

about me? What people constantly ask of their organization is: Do you tell the

truth? Do you keep promises? Do you act fairly? Do you respect me? Managers

and organizations that keep these questions in mind will have a competitive

advantage over others in retaining their employees.

BIBLIOGRAPHY

BOOKS

Human Resource Management C.B.Memoria

Research methodology C.R.Kothari


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Journals, Newspaper and Internet

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