employee retention project final copy[2]

8/7/2019 employee retention project final copy[2]

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Executive Summary

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 beneficialfor 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 andvalue 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 harboring bright new ideas for its growth

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 restaurant must 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 turnover

costs? Well, the answer is a definite no. Its not only the cost incurred by a company that emphasizes the

need of retaining employees but also the need to retain talented employees from getting poached.

Resume Writing Tips

Employee Retention


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Retention involves five major things:

Compensation

Environment

Growth

Relationship

Support

Compensation

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 startup 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 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 counseling, 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


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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

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

Colgate Palmolive India

Company brand

Open , transparent, and caring organization


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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

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


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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

Learning environment: It includes continuous learning and improvement of the individual, certifications

and provision for higher studies, etc.

Support environment: Organization can provide support in the form of work-life balance. Work life

balance includes:

Flexible hours

Telecommuting

Dependent care

Alternate work schedules

Vacations

Wellness

Work environment: It includes efficient managers, supportive co-workers, challenging work,

involvement in decision-making, clarity of work and responsibilities, and recognition. Lack or absence of

such environment pushes employees to look for new opportunities. The environment should be such

that the employee feels connected to the organization in every respect. Growth and Career Growth and

development are the integral part of every individuals career. If an employee can not foresee his path

of career development in his current organization, there are chances that hell leave the organization as

soon as he gets an opportunity.The important factors in employee growth that an employee looks for

himself are:Work profile: The work profile on which the employee is working should be in sync with his

capabilities. The profile should not be too low or too high.

Personal growth and dreams: Employees responsibilities in the organization should help him achieve his

personal goals also. 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 to improve many skills like:

Communications skills

Technical skills

In-house processes and procedures improvement related skills


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C 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 de-motivated. It leads to less

satisfaction and eventually attrition.

A supportive work culture helps grow employee professionally and 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 ands 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 collegues.

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 what their 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.

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


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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, etc

Employers 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

RESEARCH METHODOLOGY

Research Design

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

for the study.

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

main objective of using descriptive research is to describe the state of affairs as it exits at present. It

mainly involves surveys and fact finding enquiries of different kinds. The researcher used descriptive

research to discover the characteristics of customers. Descriptive research also includes demography

characteristic of consumer who use the product.

The researcher also used analytical research design to analyze the existing facts from the data collected

from the customer.

Area of study

The area of study is confined to employees of 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 in which all the questions

are predetermined before conducting the survey. The form of question is of both closed and open type.


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The scales used to evaluate questions are:

Dichotomous scale (Yes or No)

Likert 5 point scale (Highly satisfied, satisfied, Neither

Satisfied nor dissatisfied, Dissatisfied, Highly

dissatisfied)

Category scale (Multiple items)

Ranking type (R1, R2, R3)

The questionnaire for the research was framed in a clear manner such that it enables the respondents to

understand and answer the question easily. The questionnaire was designed in such a way that the

questions are short and simple and is arranged in a logical manner.

Pilot study

It is appropriate to conduct pilot survey to check the reliability of the questionnaire. So pilot study was

conducted on 5 respondents which is a 10% of the sample.

Sampling design

A Sample design is a definite plan for obtaining a sample from a given population. It is the procedure

used by the researcher in selecting items for the sample.

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.

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.


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STATISTICAL TOOLS AND TECHNIQUES

PERCENTAGE ANALYSIS:

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.T

G.T

6. Calculation of :

= (O-E)

E

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

Degrees of freedom

ONE RUN TEST

Null hypothesis (H0):

There is a no significant relationship between the variables

Alternate hypothesis (H1):

There is significant relationship between the variables

r = 2 n1 n2 + 1

n1 + n2

2 n1 n2- n1- n1


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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 the respondents.

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 used for analysis.

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

Analysis and Interpretation of data

PERCENTAGE ANAYLSIS

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.


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Calculated value is more than table value therefore accept H0

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 : 1158

Calculated 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

Null hypothesis (H0):


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The samples are not taken randomly.

Alternate hypothesis (H1):

The samples are taken randomly.

Table:2.5.1

EMPLOYEES SATISFACTION REGARDING MONETARY BENEFITS PROVIDED BY THE COMPANY.

Retention Management

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

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

key role in employee retention and retention management. The concept of retention management can

both have a narrow, and a broader significance. Both parts of its significance are generally included in

this thesis. The background of the thesis present a few articles that discuss issues that makes it

important for the organization, and the leaders, to work hard with retention management. The research

is based on the leaders in the Finnish case company Tradeka. Following key questions are intended to be

answered: What are the consequences between leaders actions and employees retention? Which is the

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

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

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

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

empirical findings and theories has been compared. The intention of investigating and using the Finnish

company Tradeka Limited as a case company, is to make the information from the theories more valid,

and also the interest in how retention management works in practice. Eleven qualitative interviews

were conducted at Tradeka?s financial department, both with supervisors and employees to get a

broader view at the phenomenon retention management. Result: Leaders and their skill in creating a

culture of retention, has becoming a key in why people stay and what usually drives them away from a

company. The leader has become the main factor in what motivates 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.

Employee Retention Strategies

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

1. Hire the right people in the first place.

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


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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 joby

Personalized well done and thank-you cards from supervisorsy

Congratulations e-cards or cards sent to spouses/familiesy

Voicemails or messyages from top management

Periodic days off for good performancey

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

Recognizing professional as well as personal significant eventsy

Wedding gifts

Anniversary gifts

New born baby gifts

Scholarships for employees children

Get well cards/flowers

Birthday cards, celebrations and gifts

Providing benefitsy

Home insurance plans

Legal insurance

Travel insurance

Disability programs

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

Discounts in cinema halls, museums, restaurants, etc.

Retail store discounts

Computer peripherals purchase discounts

Providing workplace conveniencesy

On-site ATM

On-site facilities for which cost is paid by employees

laundry facility for bachelors

Shipping services


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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 worky

Celebrate birthdays, anniversaries, retirements, promotions, etc

Holiday parties and holiday gift certificates

Occasional parties like diwali, holi, dushera, etc

Organize get together for watching football, hockey, cricket matches

Organize picnics and trips for movies etc

Sports outings like cricket match etc

Indoor games

Occasional stress relieversy

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 crisisy

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 certificationsBenefit programs for family support

Child adoption benefits

Flexible benefits

Dependents care assistance

Medical care reimbursement


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Providing conveniences at workplacey

Gymnasiumsy

Athletic membership programy

Providing training and development and personal growth opportunitiesy

Sabbatical programs

Professional skills development

Individualized career guidance

High Level Strategies

window.google_render_ad();

Promoting Work/Life Effectivenessy

Develop flexible schedulesy

Part-time schedulesy

Extended leaves of absencey

Develop Support Servicesy

On-site day care facility etc.y

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

Listen to the employee and show interest in ideasy

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:yMentoring programs

Performance feedback programs

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

Getting the most out of employee interests and talents

Higher study opportunities for employees

Vocational counseling

Offer personalized career guidance to employees

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

trust.ySuggestion 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.


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y 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

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 are

finally matured in to full-blown concepts. It induces responsibility among employees and accountability

towards other peers, which gradually builds up trust and pride. More importantly, transparency in work

environment discourages work-politics which often hinders company goals as employees start to

advance their personal objectives at the expense of development of

The company as a single entity.

.

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


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relationship between life on and off the job.

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

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

aspects:Occupational health care: The safe work environment provides the basis for the person to enjoy

working. The work should not pose a health hazard for the person. The employer and employee, aware

of their risks and rights, could achieve a lot in Their mutually beneficial dialogue.

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

employees enjoy flexi-timings for dedicating their efforts at work. Appropriate salary: The appropriate as

well as attractive salary has always been an important factor in retaining employees. Providing

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

motivates them to stick With the company for long. QWL consists of opportunities for active

involvement in group working arrangements or problem solving that are of mutual benefit to employees

or employers, based on labor management cooperation. People also conceive of QWL as a set of

methods, such as autonomous work groups, job enrichment, and high-involvement aimed at boosting

the satisfaction and productivity of workers. It requires employee commitment to the organization and

an environment in which this commitment can flourish. Providing quality at work not only reduces

attrition but also helps in reduced absenteeism and improved job satisfaction. Not only does QWL

contribute to a company's ability to recruit quality people, but also it enhances a company's

competitiveness. Common beliefs support the contention that QWL will positively nurture amore

flexible, loyal, and motivated workforce, which are essential in determining the company's

competitiveness.

Supporting Employees

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

in a way that best suits their organizational culture. Retaining employees is a difficult task. Providing

support to the employees acts as a mantra for retraining them. Employers can also support their

employees by creating an environment of trust and inculcating the organizational values into

employees.

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

personal crises, managing stress and personal development. Management can support employees,

indirectly, in a number of ways as follows:

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

Managing the turnover, hence, becomes an important task. A proactive approach can be adopted to

reduce attrition. Strategies should be framed in advance and implemented 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


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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. Employees are said to be engaged when they show a positive

attitude toward the organization and express a commitment to remain with the organization. Employee

satisfaction also comes with high engagement levels. So, organizations should aim to maximize the

engagement among employees.

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

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

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

and return to peak performance.

Feedback

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

information employees receive about how well or how poorly they have performed is what we call

feedback. It is a dialog between a manager and an employee which acts as a way of sharing information

about the performance. It suggests where the employee performance is effective and where

performance has to improve.Managers can provide either positive feedback or negative feedback to

employees. This feedback helps the employee assess his performance and identify the improvement

areas.Positive feedback communicates managerial satisfaction. Positive recognition for good

performance boosts up morale of employees and results in performance improvement to a higher

productivity level. It is believed that positive feedback is the only type of feedback that generates

performance above the minimum acceptable level. Negative feedback obviously communicates

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 any kind of feedback to their employees. Due to no feedback,

employees may assume that they are performing productively or they may feel that the manager is

satisfied with their performance. Studies reveal the performance tends be same or even decreases if no

feedback is provided.Thus, feedback is necessary because:

It builds trust and enhances communication between manager and employee.

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

Positive feedback leads to employee retention and Retention.

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


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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.

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 finally

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

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

communicators.Communication mediums

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

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

Frequent meetings and Social gatherings

Emails, Newsletters, Intranet and many more

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

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

Importance Of Employee Retention


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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 spent on the employee in expectation of a future return. When the employee

leaves, the investment is not realized.

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

the people. Relationships are developed that encourage continued sponsorship of the business. When

an employee leaves, the relationships that employee built for the company are severed, which could

lead to potential customer loss.

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

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

intensifies for the remaining staff.

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

Higher retention rates motivate potential employees to join the organization.

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

and then training him/her and this goes to the loss of the company directly which many 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 expectedy 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 fity to do a certain type of job which matches his

personality. If he is given a job

which mismatches his personality, 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.

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

and loses interest in job.

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

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

make office environment unfriendly and difficult to work in.


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

ultimately many times lead to employee leaving the organization.

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

towards themselves.

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

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

Managing Employee Retention

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

1. Identify cost of employee turnover.

2.Understand why employee leave.

3.Implement retention strategies

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

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

employee retention rates

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

survey, on an average, attrition costs companies 18 months salary for each manager or professional

who leaves, and 6 months pay for each hourly employee who leaves. This amounts to major

organizational and financial stress, considering that one out of every three employees plans to leave his

or her job in the next two years.

Understand why employees leave :

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

analyzing the factors that have led employees to leave the organization. They allow an organization to

understand the reasons for leaving and underlying issues. However employees never provide

appropriate response to the asked questions. So an impartial person should be appointed with whom

the employees feel comfortable in expressing their opinions.

Implement retention strategy :

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

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

effective retention strategy will seek to ensure:

Attraction and recruitment strategies enable selection of the right candidate for each role/organization

New employees initial experiences of the organization are positive

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

their likely career path with the organization


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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 the important tools that are being used to

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

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

companies are going through more transitions like mergers and acquisitions. They need to give key

people an attractive incentive to stay on through these transitions to ensure productivity.

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

plan is not a panacea. According to a survey, non-management employees generally receive about 10

percent of their annual salaries in bonuses, while management and top-level supervisors earn an

additional 50 percent of their annual salaries. While bonuses based on salary percentages are the

generally used, some companies choose to pay a flat figure. In some companies, bonuses range from 25

percent to 50 percent of annual salary, depending on position, tenure and other factors. Employees are

chosen for retention bonuses based on their contributions to management and the generation of

revenue. Retention bonuses are generally vary from position to position and are paid in one lump sum

at the time of termination. However, some companies pay in installments as on when the business cycle

completes. A retention period can run somewhere between six months to three years. It can also run for

a particular project. A project has its own life span. As long as the project gets completed, the

employees who have worked hard on it are entitled to receive the retention bonus. For example, the

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

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

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

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

retention bonus plans to keep knowledge employees retained in the company. To retain its key senior

employees post merger with EDS Corporation, Mphasis is providing cash component based retention

bonus plan for its employees. This is mainly to retain good employees and provide them a cash incentive

to keep them motivated.


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

employer should understand the job requirements clearly. Dont hire under qualified or clearly

overqualified candidates.

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

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 whaty 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.

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

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

before hand that their requirements can not be fulfilled. Dont show them an unrealistic picture.

Culture fit: Try to judge individuals capability toy adapt to the organizations culture. A drastic change

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

Referrals: According toy the research, referred candidates stay longer with the organization. There is a

fear of hampering the image and reputation of the person who referred the candidate.

Manager Role in Retention

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

research has shown that people join companies, but leave because of what their managers do or 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 the field of quality.

Employees who look forward to these events and are likely to remain more engaged.


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Standing up for the Team: Team leaders are closest to their team members. While they need to ensure

smooth functioning of their teams by implementing management decisions, they also need to educate

their managers about the realities on the ground. When agents see the team leader standing up for

them, they will have one more reason to stay in the team.

Providing coaching: Everyone wants to be successful in his or her current job. However, not everyone

knows how. Therefore, one of the key responsibilities will be providing coaching that is intended to

improve the performance of employees. Managers often tend to escape this role by just coaching their

employees. However, coaching is followed by monitoring performance and providing feedback on the

same.

Delegation: Many team leaders and managers feel that they are the only people who can do a 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 counselors as well.

How to Improve Employee Retention

People want to enjoy their work so make work fun and enjoyable.

Understand that employees need to balance life and work so offer flexible starting times and core hours.

Provide 360 feedback surveys and other questionnaires to foster open communication. Consider

allowing anonymous surveys occasionally so employees will be more honest and candid with their

opinions. Provide opportunities within the company for career progression and cross-training. Offer

attractive, competitive benefits and 401(k)s.

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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


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organization as well.

Through a rewards program, the entire organization can experience the commitment to excellence.

When the reward system is credible, rewards are meaningful; however, if the reward system is broken,

the opposite effect will occur. Employees may feel that their performance is unrecognized and not

valued, or that others in the organization are rewarded for the wrong behaviors. Unrecognized and

nonvalued performance can contribute to turnover. Recognition for a job well done fills the employees'

need to receive positive, honest feedback for their efforts.

Need for Rewards and Recognition

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

satisfaction and retention. Organizations can avoid employee turnover by rewarding top performers.

Rewards are one of the keys to avoiding turnover, especially if they are immediate, appropriate, and

personal. A Harvard University study concluded that organizations can avoid the disruption caused by

employee turnover by avoiding hiring mistakes and selecting and retaining top performers.

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

appropriate, and personal. Organizations may want to evaluate whether getting a bonus at the end of

the year is more or less rewarding than getting smaller, more frequent payouts. Additionally, a personal

note may mean more than a generic company award. Employees should be asked for input on their

most desirable form of recognition. Use what employees say when it comes time to reward for

performance (St. Amour, 2000).

Designing a Rewards and and Recognition Solution

In designing a rewards and recognition program, the following guidelines should be considered.

Rewards should be visible to all members of the organization.

Rewards should be based on well-defined, credible standards that have been developed using

observable achievements.

Rewards should have meaning and value for the recipient.

Rewards can be based on an event (achieving a designated goal) or based on a time frame (performing

well over a specific time period).

Rewards that are spontaneous (sometimes called on-the-spot awards) are also highly motivating and

should also use a set criteria and standard to maintain credibility and meaning.

Rewards should be achievable and not out of reach by employees.

Nonmonetary rewards, if used, should be valued by the individual. For example, an avid camper might

be given a 10-day pass to a campsite, or, if an individual enjoys physical activity, that employee might be

given a spa membership. The nonmonetary rewards are best received when they are thoughtfully

prepared and of highest quality. Professionalism in presenting the reward is also interpreted as

worthwhile recognition.

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


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dollars. Determining the amount of money given is a delicate matter of organizational debate in which

organizational history, financial parameters, and desired results are all factors. Recognition for a job well

done can be just as valued and appreciated as monetary awards.

Formal recognition program can be used with success. First Data Resources, a data processing services

company that employees more than 6,000 individuals in Omaha, Nebraska, uses a formal recognition

program (Adams, Mahaffey, and Rick, 2002). Rewards are given on a monthly, quarterly, and yearly

basis, and range from Nebraska football tickets, gift certificates, pens, plaques, mugs, and other items.

One of the most popular awards at First Data is called the "Fat Cat Award" that consists of: $500 gift

check

Professional portrait of the employee

Appreciation letter from the CEO and senior management

E-mails, phone calls, and notes from peers

In addition to nonmonetary rewards, employees can be rewarded using money in numerous ways. Cash

is a welcome motivator and reward for improving performance, whether at formal meetings or on the

spot. Variable bonuses linked to performance are another popular reward strategy. Profit sharing and

pay-for-skilis are monetary bonus plans that both motivate individuals and improve goal achievement.

Small acts of recognition are valuable for employee daily Retention. Sometimes a personal note may

mean more than a generic company award. In one survey, employees cited the following as meaningful

rewards (Moss, 2000):

Employee of the month awards Years of service awards

Bonus pay (above and beyond overtime) for weekend work

Invitations for technicians to technical shows and other industry events

Meaningful and Retentional Rewards

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

recognition should be based on a clear set of standards, with performance verifiable or observable. The

standards for the reward should also be achievable. If the reward is based on an unachievable result,

such as a production goal that is beyond employees' power, then those employees will not be

motivated. Meaningful rewards and recognition that are achievable have the greatest impact.

Case Studies

Employee Retention Best Practices in Keeping and Motivating Employees

By LisBeth Claus

Ask any CEO of an organization, What keeps you awake at night? and you will get a response that

relates to people management issues. a main concern for any organization (whether small or large;

private, public or nonprofit) is its capacity to attract, engage,

and retain the right people. The problem of retention is compounded by the predicted talent shortage


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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.

How Auditing Company X Works with Retaining Valuable Employees : Swedish Case study

University essay from Hgskolan i Jnkping/IHH, EMM (Entrepreneurskap, Marknadsfring,

Management)

Author: Josip Bogic; Elina Armanto; Maja Cassel; [2008]

Abstract: Today, neither employees nor employers seem to take for granted that a person will stay with

the same firm until retirement. Yet, keeping employees for longer periods is an imp-ortant challenge for

firms. One industry where retention is interesting is the auditing industry in Sweden, this because

certain requirements are needed to become an auditor. Firstly, the employee needs to have a Swedish

university degree, including specific courses within au-diting/accounting. Furthermore, the person needs

practical experience for a specific period of time. Due to these statements the challenge of retaining and

motivating valuable em-ployees is crucial for the auditing firms, which is why we have chosen to do a

case study at Auditing Company X to see how they work with employee retention. We have compared

the findings to our chosen theory, which consist of four categories: the hiring process, in-ternal labor

market and career, motivation and performance, and finally culture and leader-ship. These four

categories are initially based on Leigh Branham?s book: ?Keeping the people who keep you in business:

24 ways to hang on to your most valuable talent? (Bran-ham, 2001).In our conducted case study, at

Auditing Company X, we have been able to conclude that the 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 individua-lized reward system and communication between managers and

employees. Even though there are some parts to work on the most important aspects of retention, such

as having a holistic and long-term orientation, Auditing Company X seems to have incorporated this into

their practices successfully.

Retention: An explanatory study of Swedish employees in the financial sector regarding leadership style,

remuneration and elements towards job satisfaction

University essay from Vxj universitet/Ekonomihgskolan

Author: Sanna Paulsson; Linda Lindgren; [2008]

Abstract: Introduction: Companies today are forced to function in a world full of change and complexity,

and it is more important than ever to have the right employees in order to survive the surrounding

competition. It is a fact that a too high turnover rate affects companies in a negative way and retention

strategies should therefore be high on the agenda. When looking at this problem area we found that

there may be actions and tools that companies could use to come to terms with this problem. Research

told us that leadership, remuneration and elements like participation, feedback, autonomy, fairness,

responsibility, development and work-atmosphere is important for job satisfaction and retention.

Object: The main objective is to increase the understanding regarding 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


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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 remuneration system

should be designed, base pay with additional bonus and benefits were preferred. But also non financial

factors such as participation, feedback, autonomy, fairness, responsibility, development and work-

atmosphere must be taken in consideration to satisfy since they seem to increase employees?

Willingness to stay in the company.

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

University essay from Gteborgs universitet/Fretagsekonomiska 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: The purpose of the thesis is to

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

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

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

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

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

empirical findings and theories has been compared. The intention of investigating and using the Finnish

company Tradeka Limited as a case company, is to make the information from the theories more valid,

and also the interest in how retention management works in practice. Eleven qualitative interviews

were conducted at Tradeka?s financial department, both with supervisors and employees to get a

broader view at the phenomenon retention management. Result: Leaders and their skill in creating a

culture of retention, has becoming a key in why people stay and what usually drives them away from a

company. The leader has become the main factor in what motivates 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


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

company.

FINDINGS

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 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.


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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

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 behavior, social comparison of

rewards reinforcement, and performance-satisfaction. The increasing attention paid towards Retention

is justified because of several reasons. Motivated employees come out with new ways of doing jobs.

They are quality oriented. They are more productive. Any technology needs motivated employees to

adopt it successfully. Several approaches to Retention are available. Early theories are too simplistic in

their approach towards Retention. For example, advocates of scientific Management believe that money

is the motivating factor. The Human Relations Movement posits that social contacts will motivate

workers. Mere knowledge about the theories of Retention will not help manager their subordinates.

They need to have certain techniques that help them change the behavior of employees.One such

technique is reward. Reward, particularly money, is a motivator according to need-based and process

theories of Retention. For the behavioral scientists, however, money is not important as a motivator.

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

circumstance. Being an outgrowth of 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


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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 is not 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.

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 that involve 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 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


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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 is fairly 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

Journals, Newspaper and Internet

employee retention project final copy[2]

Documents