employee retention programmes

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EMPLOYEE RETENTION PROGRAMMES

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For Further Details Contact:

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www.lacrosstechnologies.org

1.1 INTRODUCTION

INTRODUCTION

With the labor market at its tightest in recent memory, the talk of the town seems to be

attracting top talent to a company. But what a company does to retain that talent, and the

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talent it already employs, is arguably more important than attraction. In recent times,

employees retention has become one of the leading challenges for organization. Given

today's weak company loyalty, employees are increasingly "jumping ship" for better job

opportunities elsewhere. The issue isn't simply losing a key member of your team; there is

also the hassle-and cost-of replacement. It is obvious that employees retention is one of

the most pressing issues that Human Resource Professionals face today. Organizations

have come to realize the critical strategic implications of losing their best people.

Employees turnover is assuming crisis proportions for many employers who struggle to

retain people in the tightest labor markets in recent memory.

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1.2 NEED FOR THE STUDY

According to Mohapatra (2002) Experts say it is better to retain the existing talent than to

hire continuously. A recent Ernst & Young survey calculated that the cost of replacing a

high-level employee might be as much as 150% of that departing employees salary. Some

reasons as to why companies should focus on retaining current employees are:

It helps to save and reduce recruitment costs.

It portrays a culture of loyalty among towards organization and also of that of

organization towards its employees.

It helps reduce the overall costs of the organization by reducing replacement

costs(this would also include reduction of costs on regular induction programs)

It spreads the training costs over the years of employees stay in the organization.

It helps the HR department of the organization to concentrate on other important

things like training, apart from recruitment.

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UNIVERSE

Since the researcher wanted to confirm employee retention strategies adopted at LA

CROSS TECHNOLOGIES, in the basis of the opinion of the executives at LA CROSS

TECHNOLOGIES, all the executives at LA CROSS TECHNOLOGIES formed the

universe for the study. The department wise break up of the executives (universe) at LA

CROSS TECHNOLOGIES is given below for reference,

Departments Total Employees Selected Samples

BPO 170 20

Electronic content service 130 10

Core sourcing 100 10

Book conversion 115 10

Adjudication 85 10

Total 600 60

SAMPLING

Even though the department wise strength of the executives was made available to the

researcher, it was not possible to adopt Stratified Random Sampling (department wise)

for the selection of sampling units due to organizational constraints. Same way it was also

not possible to have a proportionate selection of units on the basis of department wise

strength. On the other hand it was suggested by the organization to ascertain with the

executives in each department about their willingness to fill in the questionnaire and those

who are willing to do so, were asked to be included in the data collection.

Accordingly adopting Convenience Sampling procedure, a total of 60 respondents were

covered by the study.

The confirmation at later stage regarding the executives covered by the study and their

department of work is understand to be as follows

Departments Total Employees Selected Samples

BPO 170 20

Electronic content service 130 10

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Core sourcing 100 10

Book conversion 115 10

Adjudication 85 10

Total 600 60

TOOLS OF DATA COLLECTION

Questionnaire is the tool adopted by the researcher for collecting the data. It refers to

securing answers for a set of pre - constructed form of questions to be filled in answered by

the respondent. This method is followed because it is

Cost effective.

Free from bias of the interviewer.

Rating will be done based on the respondents own thinking.

Enough time is available for filling the questionnaire.

All the respondents of the study are well educated and busy.

CONTENTS OF THE QUESTIONNAIRE

Contents of the questionnaire are divided into

Personal data of the respondents pertaining to employee retention.

Environmental strategies pertaining to employee retention.

Support strategies pertaining to employee retention.

Growth strategies pertaining to employee retention.

Compensation strategies pertaining to employee retention.

PRE TESTING

In order to ascertain the validity of the tool of the data collection. Viz questionnaire, a pre

testing was done by the researcher with a selected number of five respondents from the

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employees of the organization. This was essential to find out the parts of the questionnaire,

which was lacking perfection, and also it helped the researcher to identify the lacking area

and also modify some parts of the questionnaire. The exercise done in this regard was very

useful for the researcher to give the final touch towards the questionnaire before putting

into actual study.

ANALYSIS AND INTERPRETATION

The data collected was analyzed and interpreted using statistical package for social

sciences (SPSS). Tables were created for the various items mentioned in the questionnaire.

DATA COLLECTION

Data collection was carried out at LA CROSS TECHNOLOGIES in the month of January

2010. All the 60 respondents were distributed questionnaire at the work place itself .The

researcher explained the study .On the whole all the respondents were solicited for their

help.

ANALYSED DATA AND TABULATION

The data collected was processed and tabulated. The tabulated data wad interpreted to

arrive at workable conclusions. Analysis and interpretation was made to the tabulated data.

LIMITATIONS

Since the data was collected using questionnaire, there is a possibility of ambiguous replies

and omission of replies altogether to certain items mentioned in the questionnaire?

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"Employee retention is the conscious and deliberate effort to retain quality

individuals on the company payroll. Stated otherwise, it is the proactive methods utilized

by successful organizations to stop the drain of company profits caused by excessive

employee turnover". HERMAN*

"Employee retention is not some externally generated set of activities or metrics that have a

life of their own and that are applicable to every circumstance. Effective employees

retention is something that is very specific to each individual organizations.

ATTRITION

The word attrition means wearing or moving away.

There is a much greater acceptance that attrition is a fact of the industry. Most companies

had experimented with various strategies

Average attrition in 1999- about 12%

Maximum attrition between 1 to 4 years experience.

Attrition in most of the larger companies below the average due to a concerted

effort and several initiatives.

Three year horizon becoming a norm- average stays 2 to 2.5 years.

Employee expectation of some change every six months to keep interest in the

organization.

TURNOVER

Turnover is an indication that something is wrong with the company at a

minimum, the company and the employee have been mismatched and often the only thing

the business has to show for it is another costly statistics. SHIFFIN (Workspan/02/01)

CAUSES FO TURNOVER

A bad match between the employees skills and the job.

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organizations need for a set of employees to remain with the company makes it Clear as to

which group should be handled with what concern for retaining them. Once this analysis is

over and the management identifies who is to be retained for hoe long, it Can customize

retention practices to encourage employees to stay loyal to the organization. Some such

practices could be:

COMPENSATION

One of the age-old retention mechanisms is compensation. Organizations tries to

hold back their most valuable employees by paying them more than the market defined

salaries. Unfortunately a poaching company can always outsmart the original employees in

weaning them away by paying a hefty signing bonus here again, some smart

Poachers pay such signing bonus in installments, so that the employer can be sure of

having the employee on rolls till payout is effected and such pay spreads can always be

matched with the required period of retention of such skill in the organization. In the

golden handcuffs and golden hellos, no compensation, can guarantee retention of an

employer for the period desired by the organization, unless it is accompanied by other

essential elements like job satisfaction and environs which are to the liking of the members.

JOB DESIGNING

Research indicates that by carefully and thoughtfully deciding which task must be

assigned to which job, companies can exert greater influence on the retention rates of

employees. It is often noticed that in the IT industry junior level programmers often move

away from a company after gaining experience of working in a project or two. This was

often found to be causing dislocation in the availability of skilled pool to execute ongoing

Or fresh projects. So many IT companies go for campus recruitment and train them for

imparting knowledge and commitment. Such job designing gives an advanced warning to

the employers about so and so junior programmers leaving the organization at so and so

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Although pay is not the prime motivators, it definitely influences ones decision to

stay in the organization or not, especially when it is not competitive. If the pay levels do

not match others or the best in the industry it will become the source of dissatisfaction.

Possible action to reduce disparity in pay include:

Periodic review of pay levels on the basis of market survey.

Linking pay with performance and ensuring that all employees are aware about the

linkage.

OPPORTUNITIES TO DEVELOP ONES CAREER

The power of intrinsic motivators cannot be undervalued in the present context.

Employees are constantly exploring various avenues to develop their skills so that they can

be promo table and employable in the fast changing times. Organization need to consider

individuals learning needs and address them suitably by creating learning opportunities for

them. Moreover, the employees need to be given opportunities to apply their newly

acquired skills in the workplace so that they can prove their worth to the organization. This

would boost their self-esteem.

JOB SECURITY

Job security assumes greater importance in this turbulent age marked by massive

lay-offs, downsizing, and closure. Some of the enlightened organizations provide job

security to such a great degree that others in the industry cannot even imagine matching

them.

These companies resort to various alternatives like redeployment and reducing the pay

levels and perks in orders to avoid retrenchments and lay-offs. For example, southwest

Airlines assure job security to all employees even in the downtimes.

HIRING THOSE WHO FIT THE ORGANISATIONAL CULTURE WELL

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WORK ENVIRONMENT

Excellent physical work environment, including regular upgrading of computers.

Providing several facilities for employees to better quality of life and reduce time

spent on mundane personal chores, for e.g. Transport to work, assistance with

running errands like paying bills, getting tickets, personal travel booking, etc.

Employees share fully/partly in costs of these services provided by third parties.

Creating a community/ campus like atmosphere

Recreation facilities.

Gyms. Eg.Infosys, Satyam, Kanbay.

Flexible work timing.

Used successfully in companies like Infosys, Citil, Wipro, Mastek as well as

multinationals.

International sock plans extended widely.

Provided by about 40% of Indian companies.

Widespread ESOP by about 20%.

Initial issues tend to have wider coverage coverage of employees.

WHAT RETAINS PEOPLE?

Personal growth.

Work environment.

Company image.

Industry growth.

Culture.

Job satisfaction

Learning opportunities.

Compensation.

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TOP 10 TIPS TO ATTRACT, RETAIN AND MOTIVATE

According to Rohit Khandelwal the 10 ways to attract, retain, motivate employees are as

follows,

1) Pay employees fairly and well then get them to forgot about money.

2) Treat each and every employee with respect. Show them you care about them as

persons, not just as workers.

3) Praise accomplishments and attempts

Both large and small

At least 4 times more than you "critise"

Publicity and in private.

Verbally and in writing.

Promptly (as soon as observed).

Sincerely.

4) Clearly communicate goals, responsibilities and expectations. NEVER criticize in

Public-redirect in private.

5) Cognize performance appropriately and consistently. Reward outstanding

Performance (e.g. With promotions and opportunities) do not tolerate sustained

Poor performance coach and train or removal.

6) Involve employees in plans and decisions, especially those that affect them. Solicit

Their ideas and opinions. Encourage initiatives.

7) Create opportunities for employees to learn and grow. Link the goals of the

Organizations with the goals of each individual in it.

8) Actively listen to employees concern-both work-related and personal.

9) Share information promptly, openly and clearly. Tell the truthwith compassion.10) Celebrate successes and milestones reached- organizations and personal. Create

an organizational culture that is open, trusting and fun.

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Our mission is to be a valuable Partner for the Data Processing Industry global.

To accomplish our Mission, our vision will perform and deliver the cost effective and

comprehensive solutions in the Data Processing and Data Management service of the

global needs.

Our major principles are:-

Providing Client satisfaction

Giving the highest possible service and support

Offering an excellent price/performance ratio

To maintain these principles LA CROSS employ highly trained technical personnel

who have experience in, or immediate access to, all areas of the information Technology

industry.

SERVICE

LA CROSS decided to establish a new standard in the Data Process Service. Our

experience and knowledge are alienated the services for the clients conveniences, since it

helps to prove our efficiency and capability in the project. The services of LA CROSS have

its title and small descriptions are stated below;

Data Entry Services

Data entry from Paper/Books with highest accuracy and fast turn around time

(TAT)

Data entry from Image file in any format

Business Transaction Data entry like sales / purchase / payroll.

Data entry of E-Books / Electronic Books

Data Entry : Yellow Pages / White Pages Keying

Data Entry and compilation from Web site

Data Capture / Collection

Business Card Data Entry into any Format

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Project Acquisition:

Once a project was undertaken for data entry and data processing, we survey thetime to spent, for the project. The survey will have all detailed questions regarding the

technical terms, and when the starting time and the ending time, Team Size, Tools Budget

of the particular on the project.

LA CROSS Role:

LA CROSS will provide to the clients with the highest degree of accuracy and a

comprehensive report on the project. The accurate details on the project of the client are

most preferred clearly recorded. LA CROSS will provide the almost of highly qualified

skill pool and faster adoption of well-defined business processes lead to higher productivity

gains without compromising on quality.

Benefits:

The various benefits to the client were high accuracy of data and Data interpretation

and it saved considerable amount of time by the company in interpreting these data.

Clients

The extensive service portfolio as well as the exact industry specific solutions has resulted

in a high-degree of customer acceptance and satisfaction. The extensive know-how of our

business partners ensures that we can offer a solution which matches customer

requirements. With this joint know-how we are able to completely fulfill individual

customer requirements.

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CHAPTER-III

ANALYSIS

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Gender Frequency Percent

Male 49 82

Female 11 18

Total 60 100

A classification of male and female based on the biological factors that are

genetically determined and cannot be changed.

The respondents are grouped as male and female.

The Table No.2 demonstrates that more than three fourth of the respondents(82%)

are men and the remaining less than one fourth of the respondents(18%) are women.

TABLE :3

RESPONDENTS BY THEIR EDUCATIONAL BACKGROUND

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The Table No.7 illustrates that most of the respondents(77%) agree that job related training

is given regularly, and one third of the respondents (22%) disagree that job related training

is not given properly.

TABLE :8

FACILITATING FREE FLOW OF COMMUNICATION BY ORGANIZATION

Respondents Frequency Percent

Strongly agree 2 3

Agree 27 45

Disagree 23 38

Strongly disagree 8 13

Total 60 100

Communication is important in an organization to develop inter personal relationship

among the employees.

The Table No.8 illustrates most of the respondents (48%) agree that there is free flow of

communication by the organization, and the remaining (51%) disagree that there is no free

flow of communication.

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TABLE :9

PRESENCE OF OPPORTUNITIES FOR CAREER GROWTH


Strongly agree 2 3Agree 42 70

Disagree 16 27

Total 60 100

Career growth helps the employees to develop the skills, knowledge about the work.

The Table No.9 illustrates that most of the respondents (73%) agree that organization

provides opportunities they for career growth, and the remaining one third of the

respondents (30%) disagree that there is less opportunities for career growth.

TABLE :10

PRESENCE OF OPPORTUNITIES FOR INTERNAL PROMOTIONS

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Agree 23 38

Disagree 28 47


Total 60 100

Organizational objectives are met through mutual goal setting in the organization.

The Table No.11 demonstrates that most of the respondents (55%) disagree that there is no

mutual goal setting, and the remaining (45%) agree that objectives are met through mutual

goal setting and problem solving.

TABLE :12

EXISTENCE OF HARMONY AND SUPPORTING RELATIONSHIP AMONG

TEAM MEMBERS


Agree 34 57

Disagree 26 43

Total 60 100

A sense of we feeling plays a vital role in a team.

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TABLE :15

PRESENCE OF FLAT STRUCTURED AND TRANSPARENT ORGANISATION


Strongly agree 11 18

Agree 8 13

Disagree 19 32


No idea 8 13

Total 60 100

Hierarchy plays a vital role in decision making, flat structured and transparent organization

makes the employee to develop interpersonal relationship among the supervisors

The Table No.15 depicts that most of the respondents (31%) agree that there is flat

structure and transparency in the organization, and the remaining (55%) disagree

That there is no flat structured and transparency in the organization, and the remaining

(13%) have no idea regarding organizational structure.

TABLE :16

AMBIENT WORK INFRASTRUCTURE AND ATMOSPHERE

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Agree 38 64

Disagree 5 8


Total 60 100

Infrastructure is the one which supports the employee to work better

The Table No.16 depicts that two third of the respondents (89%) agree that they have

ambient work infrastructure and atmosphere, and the remaining (11%) disagree that they

are not comfortable with infrastructure.

TABLE :17

ACCEPTABLE GEOGRAPHIC LOCATIONS FOR WORK


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Strongly agree 8 14

Agree 32 53

Disagree 14 23


Total 60 100

Promotions is one which motivates the employees to work better, and it is like that of a

reward given to the employees.

The Table No.20 demonstrates most of the respondents (67%)agree that promotions are

based on performance basis, and the remaining (33%)disagree that promotions are not

given ,based on performance basis.

TABLE :21

RECOGNITION FOR HARD WORK AND TALENT


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TABLE: 23

ORGANIZATIONAL SUPPORT FOR HIGH ACHIEVERS



Agree 25 42

Disagree 20 33


Total 60 100

Task oriented employees are always recognized by the organization

The Table No.23 depicts that most of the respondents (65%)agree that organization

supports high achievers and the remaining one third of the respondents (35%) disagree that

there is no support for high achievers from the organization.

TABLE :24

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TABLE: 25

REWARDS COMMENSURATE TO PERFORMANCE AND CONTRIBUTION


Strongly agree 9 15Agree 26 43

Disagree 20 34


Total 60 100

Performance plays a vital role in the organization.

The Table No.25 demonstrates one third of the respondents (58%) agree that organization

encourages reward for performance, and the remaining (42%) of the respondents disagree

that organization dont encourage rewards.

TABLE :26

PROMOTING TEAM BONDAGE

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TABLE: 29

ENCOURAGING EMPLOYEES TO VOICE OPINIONS WITHOUT FEAR

REPRISAL


Strongly agree 6 10

Agree 22 37

Disagree 29 48


Total 60 100

Employees have the right to voice their grievance to the management

The Table No.29 demonstrates that most of the respondents (53%) disagree that employees

are not allowed to voice their opinions without fear, and the remaining (47%) agree that

they are allowed to convey their grievance to the management.

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COMPENSATION STRATEGIES

Compensation strategy covers the broad spectrum of total compensation, not just

base pay and salary. It includes both financial and non financial components.

The various components that constitute the compensation strategies are

Attractive and competitive pay and package.

Reward system to stimulate employee involvement.

Flexible benefits to respond to changing workforce.

Providing employees stock options.

Providing periodical perks and incentives.

The analysis of the following tables (30-34) shows the Compensation strategies of the

respondents.

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Agree 27 45

Disagree 20 33


No idea 4 7

Total 60 100

The organization provides benefits to the employees to make them stay.

The Table No.32 demonstrates that most of the respondents (53%)agree that the

organization provides flexible benefits to the employees and the remaining (40%) disagree

that they are satisfied with benefits provide to them.

TABLE :33

PROVIDING EMPLOYEE STOCK OPINIONS


Strongly agree 2 3

Agree 27 45

Disagree 12 20

No idea 19 32

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employee retention programmes

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