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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 beneficial for the organization as well as the
employee. Employees today are different. They are not the ones who don’t 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 don’t, they would be left with no
good employees. A good employer should know how to attract and retain its
employees.
Most employees feel that they are worth more than they are actually paid. There is
a natural disparity between what people think they should be paid and what
organizations spend in compensation. When the difference becomes too great and
another opportunity occurs, turnover can result. Pay is defined as the wages, salary,
or compensation given to an employee in exchange for services the employee
performs for the organization. Pay is more than "dollars and cents;" it also
acknowledges the worth and value of the human contribution. What people are paid
has been shown to have a clear, reliable impact on turnover in numerous studies.
Employees comprise the most vital assets of the company. In a work place where
employees are not able to use their full potential and not heard and valued, they
are likely to leave because of stress and frustration. In a transparent environment
while employees get a sense of achievement and belongingness from a healthy
work environment, the company is benefited with a stronger, reliable work-force
harboring bright new ideas for its growth

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Introduction

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

organization faces. While companies routinely keep track of various costs such as
supplies and payroll, few take into consideration how much employee turnover will
cost them: Ernst & Young estimates it costs approximately $120,000 to replace 10
professionals. According to research done by Sibson & Company, to recoup the cost
of losing just one employee a fast food 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. It’s 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.

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Employee Retention

Retention involves five major things:

Ø Compensation
Ø Environment
Ø Growth
Ø Relationship
Ø 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 employee’s 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

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
Management according to the managing with respect to guiding principles
Training ad development programs
Structured career planning process
Global career opportunities

Wipro
Company’s 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
Ø Appreciation for the work done
Ø Ample opportunities to grow
Ø A friendly and cooperative environment
Ø A feeling that the organization is second home to the employee

Organization environment includes

Culture
Values
Company reputation
Quality of people in the organization
Employee development and career growth
Risk taking
Leading technologies
Trust

Types of environment the employee needs in an organization

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 individual’s career. If an
employee can not foresee his path of career development in his current
organization, there are chances that he’ll 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 he’s not satisfied
with his growth, he’ll 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,
they’ll leave the organization for better jobs. Organization should not limit the
resources on which organization’s success depends. These trainings can be given to
improve many skills like:

Communications skills
Technical skills

In-house processes and procedures improvement related skills

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 employee’s 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 he’ll 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 he’ll
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
employee’s 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 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:

Ø By providing feedback
Ø By giving recognition and rewards
Ø By counseling them
Ø 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.

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.

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 α = 0.05
4. Degrees of freedom = (r-1)(c-1)
5. Expected frequency:
E = R.T × C.T
G.T
6. Calculation of :
∑ = ∑ (O-E)²
E
7. The tabulated value of at given level of significance with (r-1)(c-1)
Degrees of freedom

ONE RUN TEST

Null hypothesis (H0):

There is a no significant relationship between the variables

Alternate hypothesis (H1):

There is significant relationship between the variables

µr = 2 n1 n2 + 1
n1 + n2

2 n1 n2- n1- n1
σr = 2 n1n2
(n1+ n2)2 (n1+ n2-1 )

Lower limit = µr + (2.58) σ

Upper limit = µr + (2.58) σ

KENDALL’S COEFFICIENT OF CONCORDANCE:

Null hypothesis (H0): There is a difference in attributes

Alternate hypothesis (H1): There is no difference in attributes

∑ Rj = (Rj-Rj)2
S= Rj = ∑ Rj

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.

Calculated value is more than table value therefore accept H0

Result:
There is a significant relationship between overall satisfaction and aspects of job.
KENDALL’S COEFFICIENT OF CONCORDANCE

Null hypothesis (H0): There is a no significant difference in the rank assigned by

respondents towards the attributes that gives them satisfaction in the company.

Alternate hypothesis (H1): There is a significant difference in the rank assigned by

respondents 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):

The samples are not taken randomly.
Alternate hypothesis (H1):
The samples are taken randomly.
Table:2.5.1
EMPLOYEE’S SATISFACTION REGARDING MONETARY BENEFITS PROVIDED BY THE
COMPANY.

Retention Management

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

important dilemma many organizations might face in the future, if not facing it
already. We believe that the leader plays a key role in employee retention and
retention management. The concept of retention management can both have a
narrow, and a broader significance. Both parts of its significance are generally
included in this thesis. The background of the thesis present a few articles that
discuss issues that makes it important for the organization, and the leaders, to work
hard with retention management. The research is based on the leaders in the
Finnish case company Tradeka. Following key questions are intended to be
answered: What are the consequences between leaders actions and employees
retention? Which is the leader’s role when it comes to retaining employees? Purpose
statement: The purpose of the thesis is to investigate and analyze how company
leaders today can retain their key employees. How can the provision of key human
resources develop a long-term relationship that makes top employees stay in the
company? The study aims to establish the procedure leaders apply to retain
employees. The purpose is to compare the qualitative study, made at the case
company, with findings from the thesis theoretical framework. Research method:
The study is a qualitative, as well as a theoretical study where empirical findings
and theories has been compared. The intention of investigating and using the
Finnish company Tradeka Limited as a case company, is to make the information
from the theories more valid, and also the interest in how retention management
works in practice. Eleven qualitative interviews were conducted at Tradeka?s
financial department, both with supervisors and employees to get a broader view at
the phenomenon retention management. Result: Leaders and their skill in creating
a culture of retention, has becoming a key in why people stay and what usually
drives them away from a company. The leader has become the main factor in what
motivates people’s decision to stay or leave. For organizations to keep its key
employees their number one priority should be to look at their management,
because people leave managers and not companies. Characteristics in a leader that
are of importance, as the leader plays a key role in retention management is: trust
builder, esteem builder, communicator, talent developer and coach, and talent
finder. The leader’s relation to the employees plays a central role in retaining
employees,

Employee Retention Strategies

The basic practices which should be kept in mind in the employee retention
strategies are:
1. Hire the right people in the first place.
2. Empower the employees: Give the employees the authority to get things done.
3. Make employees realize that they are the most valuable asset of the
organization.
4. Have faith in them, trust and respect them
5. Provide them information and knowledge.
6. Keep providing them feedback on their performance.
7. Recognize and appreciate their achievements.
8. Keep their morale high.
9.Create an environment where the employees want to work and have fun. These
practices can be categorized in 3 levels: Low, medium and high level.

Low Level Employee Retention Strategies

Appreciating and recognizing a well done job•
Personalized well done and thank-you cards from supervisors•
Congratulations e-cards or cards sent to spouses/families•
Voicemails or mess•ages from top management
Periodic days off for good performance•
Rewards ( gift, certificates, monetary and non monetary rewards)•
Recognizing professional as well as personal significant events•
Wedding gifts
Anniversary gifts
New born baby gifts
Scholarships for employee’s children
Get well cards/flowers
Birthday cards, celebrations and gifts
Providing benefits•
Home insurance plans
Legal insurance
Travel insurance
Disability programs

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

Discounts in cinema halls, museums, restaurants, etc.
Retail store discounts
Computer peripherals purchase discounts

Providing workplace conveniences•

On-site ATM
On-site facilities for which cost is paid by employees
laundry facility for bachelors
Shipping services

Assistance with tax calculations and submission of forms

Financial planning assistance
Casual dress policies
Facilities for expectant mothers
Parking
Parenting guide
Lactation rooms
Flexi timings

Fun at work•
Celebrate birthdays, anniversaries, retirements, promotions, etc
Holiday parties and holiday gift certificates
Occasional parties like diwali, holi, dushera, etc
Organize get together for watching football, hockey, cricket matches
Organize picnics and trips for movies etc
Sports outings like cricket match etc
Indoor games

Occasional stress relievers•

“Casual dress” day
“Green is the color” day
Handwriting analysis
Tatoo, mehandi, hair braiding stalls on weekends
Mini cricket in office
Ice cream Fridays
Holi-Day breakfast
Employee support in tough time or personal crisis•
Personal loans for emergencies
Childcare and eldercare services
Employee Assistance Programs ( Counseling sessions etc)
Emergency childcare services

Medium Level Strategies for Employee Retention

Appreciating and recognizing a well done job
Special bonus for successfully completing firm-sponsored certifications
Benefit programs for family support
Child adoption benefits
Flexible benefits
Dependents care assistance
Medical care reimbursement

Providing conveniences at workplace•

Gymnasiums•
Athletic membership program•
Providing training and development and personal growth opportunities•
Sabbatical programs
Professional skills development
Individualized career guidance

High Level Strategies

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Promoting Work/Life Effectiveness•
Develop flexible schedules•
Part-time schedules•
Extended leaves of absence•
Develop Support Services•
On-site day care facility etc.•
Understand employee needs: This can be done through proper management style
and culture•
Listen to the employee and show interest in ideas•

Appreciate new ideas and reward risk-taking

Show support for individual initiative
Encourage creativity
 Encouraging professional training and development and/or personal growth
opportunities: It can be done through:•
Mentoring programs
Performance feedback programs
Provide necessary tools to the employees to achieve their professional and personal
goals
Getting the most out of employee interests and talents
Higher study opportunities for employees
Vocational counseling
Offer personalized career guidance to employees

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

effective way to develop trust.•
Suggestion committees can be created
Open door communication policy can be followed
Regular feedbacks on organization’s goals and activities should be taken from the
employees by:
Management communications
Intranet and internet can be used as they provide 24X7 access to the information
Newsletters, notice boards, etc.

• Hire the right people from the beginning: employee retention is not a process that
begins at the end. The process of retention begins right from the start of the
recruitment process.
The new joinees should fit with the organization’s culture. The personality,
leadership characteristics of the candidate should be in sync with the culture of the
hiring organization.
Referral bonus should be given to the employees for successful hires. They are the
best source of networking. Proper training should be given to the managers on
interview and management techniques. An internship program can be followed to
recruit the fresh graduates.

Retention Success Mantra

Transparent Work Culture

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

striving to achieve business goals under time restrictions; open minded and
transparent work culture plays a vital role in employee retention.Companies invest
very many hours and monies in training and educating employees. These
companies are severely affected when employees check out, especially in the
middle of some big company project or venture. Although employees most often
prefer to stay with the same company and use their time and experience for
personal growth
and development, they leave mainly because of work related stress and
dissatisfactions.More and more companies have now realized the importance of a
healthy work culture and have a gamut of people management good practices for
employees to have that ideal fresh work-life. Closed doors work culture can serve as
a deterrent to communication and trust within employees which are potential
causes for work- Related apathy and frenzy.

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

facilitate accountability, trust, communication, responsibility, pride and so on. It is
believed that in a transparent work culture employees rigorously communicate with
their peers and exchange ideas and thoughts before they are finally matured in to
full-blown concepts. It induces responsibility among employees and accountability
towards other peers, which gradually builds up trust and pride. More importantly,
transparency in work environment discourages work-politics which often hinders
company goals as employees start to advance their personal objectives at the
expense of development of
The company as a single entity.
.

Quality Of Work

The success of any organization depends on how it attracts, recruits, motivates, and
retains its workforce. Organizations need to be more flexible so that they develop
their talented workforce and gain their commitment. Thus, organizations are
required to retain employees by addressing their work life issues. The elements that
are relevant to an individual’s quality of work life include the task, the physical work
environment, social environment within the organization, administrative system and
relationship between life on and off the job.

The basic objectives of a QWL program are improved working conditions for the
Employee and increase organizational effectiveness. Providing quality work life
involves taking care of the following aspects:Occupational health care: The safe
work environment provides the basis for the person to enjoy working. The work
should not pose a health hazard for the person. The employer and employee, aware
of their risks and rights, could achieve a lot in Their mutually beneficial dialogue.

Suitable working time: Organizations are offering flexible work options to their
employees wherein employees enjoy flexi-timings for dedicating their efforts at
work. Appropriate salary: The appropriate as well as attractive salary has always
been an important factor in retaining employees. Providing employees salary at par
with the other counterparts of above that what competitors are paying motivates
them to stick With the company for long. QWL consists of opportunities for active
involvement in group working arrangements or problem solving that are of mutual
benefit to employees or employers, based on labor management cooperation.
People also conceive of QWL as a set of methods, such as autonomous work groups,
job enrichment, 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 the compensation packages it gives away to its employees? Or is
it measured in terms of how they value their employees or in terms of customer
satisfaction? Becoming an employer of choice involves following a road map which
tells where to go as a brand.

Engage the new recruits: The newly hired employees are said to be least engaged
in the organization. Keeping them engaged is an important task. The fresh talent
should be utilized to maximum before they start feeling bored in the organization.

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

terms of employee satisfaction but by employee engagement. Employees are said
to be engaged when they show a positive attitude toward the organization and
express a commitment to remain with the organization. Employee satisfaction also
comes with high engagement levels. So, organizations should aim to maximize the
engagement among employees.

Coaching and mentoring: Employees whose work performance suffers due to poor
interpersonal relationships or because of lack of interpersonal skills should be
provided proper coaching by their superiors. Planed coaching sessions help an
individual to work through issues, maximize his potential and return to peak
performance.

Feedback

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

manager. The amount of information employees receive about how well or how
poorly they have performed is what we call feedback. It is a dialog between a
manager and an employee which acts as a way of sharing information about the
performance. It suggests where the employee performance is effective and where
performance has to improve.Managers can provide either positive feedback or
negative feedback to employees. This feedback helps the employee assess his
performance and identify the improvement areas.Positive feedback communicates
managerial satisfaction. Positive recognition for good performance boosts up morale
of employees and results in performance improvement to a higher productivity
level. It is believed that positive feedback is the only type of feedback that
generates performance above the minimum acceptable level. Negative feedback
obviously communicates manager’s dissatisfaction. However, negative feedback
sometimes make employee to put more efforts to improve his performance. But
such times are very rare. Moreover this improvement is short term. Some managers
do not provide any kind of feedback to their employees. Due to no feedback,
employees may assume that they are performing productively or they may feel that
the manager is satisfied with their performance. Studies reveal the performance
tends be same or even decreases if no feedback is provided.Thus, feedback is
necessary because:

It builds trust and enhances communication between manager and employee.

It gives managers and employees a way to identify and discuss skills and strengths.
Positive feedback leads to employee retention and Retention.
It helps in identifying performance areas that need improvement and specific ways
to improve them. It acts as an opportunity to enhance performance by identifying
resources for skill development. It is an opportunity for managers and employees to
assess and identify career and advancement opportunities. It helps employees to
understand the effectiveness of their performance and contributes to their overall
knowledge about the work Managers have tendency to ignore good performances of
their employees. Providing no feedback may demotivate employees and may lead
to employee absenteeism. Input from manager’s side is necessary as it help
employees to improve their performance and increase productivity.
Communication Between Employee and Employer

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

sender. The message may be or may not be in a common format or language that
both the sender and receiver understand. So there is a need to encode and decode
the message in the process. Encoding and decoding also helps in the security of the
message. The process of communication is incomplete without the feedback.
Communication is the solution to almost everything in this world. Same applies to
employee retention also.

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

employers. Employees look for organizations where communication and process are
transparent. Nothing is hidden and shared with the employees.

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

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 expected• to be: Sometimes the job responsibilities
don’t come out to be same as expected by the candidates. Unexpected job
responsibilities lead to job dissatisfaction.
Job and person mismatch: A candidate may be fit• to do a certain type of job which
matches his personality. If he is given a job
which mismatches his personality, then he won’t be able to perform it well and will
try to find out reasons to leave the job.
No growth opportunities: No or less learning and growth opportunities in the current
job will make candidate’s job and career stagnant.
Lack of appreciation: If the work is not appreciated by the supervisor, the employee
feels de-motivated and loses interest in job.
Lack of trust and support in coworkers, seniors and management: Trust is the most
important factor that is required for an individual to stay in the job. Non-supportive
coworkers, seniors and management can make office environment unfriendly and
difficult to work in.
Stress from overwork and work life imbalance: Job stress can lead to work life
imbalance which ultimately many times lead to employee leaving the organization.
Compensation: Better compensation packages being offered by other companies
may attract employees towards themselves.
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
The organization’s reward strategy reflects the employee drivers

How To Increase Employee Retention

Companies have now realized the importance of retaining their quality workforce.
Retaining quality performers contributes to productivity of the organization and
increases morale among 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.

Hire Right Talent

employee retention starts with recruitment. Early departures arise from the wrong
recruitment process. Here are a few ways to ensure how to hire the right talent for a
particular job.

Hire appropriate• candidates. Hire candidates who are actually suitable for the job.
For this the employer should understand the job requirements clearly. Don’t hire
under qualified or clearly overqualified candidates.
Provide realistic job preview at the time of hiring: Mostly employees leave an•
Organization because they are given the real picture of their job responsibilities at
the time of joining. Attrition rate can be reduced if a right person is hired for a right
job.Realistic preview of the job responsibilities can be given to the employment
seekers by various methods like discussions, trial periods, internships etc.
Clearly discuss what• is expected from the employee: Before joining the
organization, tell the candidate what is expected from him. Setting wrong
expectations or hiding expectations will result in early leaving of employees.
• Discuss what the expectations of the employees are: Ask employees what they
expect from the organization. Be realistic. If their requirements can be fulfilled only
then promise them. Or tell them before hand that their requirements can not be
fulfilled. Don’t show them an unrealistic picture.
Culture fit: Try to judge individual’s capability to• adapt to the organization’s
culture. A drastic change in the culture may give a culture shock to the candidate.
Referrals: According to• the research, referred candidates stay longer with the
organization. There is a fear of hampering the image and reputation of the person
who referred the candidate.

Manager Role in Retention

When asked about why employees leave, low salary comes out to be a common
excuse. However, research has shown that people join companies, but leave
because of what their managers’ do or don’t do. It is seen that managers who
respect and value employees’ competency, pay attention to their aspirations,
assure challenging work, value the quality of work life and provided chances for
learning have loyal and engaged employees. Therefore, managers and team leaders
play an active and vital role in employee retention.
Managers and team leaders can reduce the attrition levels considerably by creating
a motivating team culture and improving the relationships with team members. This
can be done in a following way:

Creating a Motivating Environment: Team leaders who create motivating

environments are likely to keep their team members together for a longer period of
time. Retention does not necessarily have to come through fun events such as
parties, celebrations, team outings etc. They can also come through serious events
e.g. arranging a talk by the VP of Quality on career opportunities in the field of
quality. Employees who look forward to these events and are likely to remain more
engaged.

Standing up for the Team: Team leaders are closest to their team members. While
they need to ensure smooth functioning of their teams by implementing
management decisions, they also need to educate their managers about the
realities on the ground. When agents see the team leader standing up for them,
they will have one more reason to stay in the team.
Providing coaching: Everyone wants to be successful in his or her current job.
However, not everyone knows how. Therefore, one of the key responsibilities will be
providing coaching that is intended to improve the performance of employees.
Managers often tend to escape this role by just coaching their employees. However,
coaching is followed by monitoring performance and providing feedback on the
same.

Delegation: Many team leaders and managers feel that they are the only people
who can do a particular task or job. Therefore, they do not delegate their jobs as
much as they should. Delegation is a great way to develop competencies.
Extra Responsibility: Giving extra responsibility to employees is another way to get
them engaged with the company. However, just giving the extra responsibility does
not help. The manager must spend good time teaching the employees of how to
manage responsibilities given to them so that they don’t feel over burdened.
Focus on future career: Employees are always concerned about their future career.
A manager should focus on showing employees his career ladder. If an employee
sees that his current job offers a path towards their future career aspirations, then
they are likely to stay longer in the company. Therefore, managers should play the
role of career counselors as well.

How to Improve Employee Retention

People want to enjoy their work so make work fun and enjoyable.
Understand that employees need to balance life and work so offer flexible starting
times and core hours. Provide 360 feedback surveys and other questionnaires to
foster open communication. Consider allowing anonymous surveys occasionally so
employees will be more honest and candid with their opinions. Provide opportunities
within the company for career progression and cross-training. Offer attractive,
competitive benefits and 401(k)s.

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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 employee’s expectations can help
retain them, should they get hired into the company.

Rewards and Recognition

Employees want to be recognized for a job well done. Rewards and recognition
respond to this need by validating performance and motivating employees toward
continuous improvement. Rewarding and recognizing people for performance not
only affects the person being recognized, but others in the organization as well.

Through a rewards program, the entire organization can experience the

commitment to excellence. When the reward system is credible, rewards are
meaningful; however, if the reward system is broken, the 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 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 resulting from the upcoming retirement of the baby
boomers, the scarcity of talent with relevant work skills for today’s jobs, the
changing values about work and the high cost of turnover. Research and human
resource practices provide us with a number of recommendations to increase
employee retention.

How Auditing Company X Works with Retaining Valuable Employees : Swedish Case
study
University essay from Högskolan i Jönköping/IHH, EMM (Entrepreneurskap,
Marknadsföring, Management)
Author: Josip Bogic; Elina Armanto; Maja Cassel; [2008]
Abstract: Today, neither employees nor employers seem to take for granted that a
person will stay with the same firm until retirement. Yet, keeping employees for
longer periods is an imp-ortant challenge for firms. One industry where retention is
interesting is the auditing industry in Sweden, this because certain requirements
are needed to become an auditor. Firstly, the employee needs to have a Swedish
university degree, including specific courses within au-diting/accounting.
Furthermore, the person needs practical experience for a specific period of time.
Due to these statements the challenge of retaining and motivating valuable em-
ployees is crucial for the auditing firms, which is why we have chosen to do a case
study at Auditing Company X to see how they work with employee retention. We
have compared the findings to our chosen theory, which consist of four categories:
the hiring process, in-ternal labor market and career, motivation and performance,
and finally culture and leader-ship. These four categories are initially based on Leigh
Branham?s book: ?Keeping the people who keep you in business: 24 ways to hang
on to your most valuable talent? (Bran-ham, 2001).In our conducted case study, at
Auditing Company X, we have been able to conclude that the firm’s retention
practices are to a great extend in line with the theoretical framework. There are
some areas that need further attention from the company, such as an individua-
lized reward system and communication between managers and employees. Even
though there are some parts to work on the most important aspects of retention,
such as having a holistic and long-term orientation, Auditing Company X seems to
have incorporated this into their practices successfully.
Retention: An explanatory study of Swedish employees in the financial sector
regarding leadership style, remuneration and elements towards job satisfaction
University essay from Växjö universitet/Ekonomihögskolan
Author: Sanna Paulsson; Linda Lindgren; [2008]
Abstract: Introduction: Companies today are forced to function in a world full of
change and complexity, and it is more important than ever to have the right
employees in order to survive the surrounding competition. It is a fact that a too
high turnover rate affects companies in a negative way and retention strategies
should therefore be high on the agenda. When looking at this problem area we
found that there may be actions and tools that companies could use to come to
terms with this problem. Research told us that leadership, remuneration and
elements like participation, feedback, autonomy, fairness, responsibility,
development and work-atmosphere is important for job satisfaction and retention.
Object: The main objective is to increase the understanding regarding employee’s
retention in relation to leadership style, remuneration and elements such as
participation, feedback, autonomy, fairness, responsibility, development and work-
atmosphere in the Swedish financial
Sector. Method: We wanted to investigate how employee of the Swedish financial
sector prefers to be retained, and how they consider and react to the chosen areas.
The survey has a quantitative approach with a web based questionnaire and
includes 129 respondents from banks, insurance and finance companies. The
theoretical framework includes leadership and leadership style, financial as well as
non-financial remuneration and research done in later years regarding participation,
feedback, autonomy, fairness, responsibility, development and work-atmosphere
connected to retention.
Conclusion: The result shows that regarding leadership the respondents prefer
leadership based on relations were they feel appreciation. Both appreciations from
the closest manager as well as the company management influences employee job
satisfaction in a positive way. More money was the most common reason for
wanting to change jobs, and when asking how the remuneration system should be
designed, base pay with additional bonus and benefits were preferred. But also non
financial factors such as participation, feedback, autonomy, fairness, responsibility,
development and work-atmosphere must be taken in consideration to satisfy since
they seem to increase employees? Willingness to stay in the company.
What leaders can do to keep their key employees - Retention Management
University essay from Göteborgs universitet/Företagsekonomiska institutionen
Author: Lisa Hedberg; Maria Helnius; [2007-09-03T08:22:31Z]
Abstract: Background: retention management is a highly topical subject and an
important dilemma many organizations might face in the future, if not facing it
already. We believe that the leader plays a key role in employee retention and
retention management. The concept of retention management can both have a
narrow, and a broader significance. Both parts of its significance are generally
included in this thesis. The background of the thesis present a few articles that
discuss issues that makes it important for the organization, and the leaders, to work
hard with retention management. The research is based on the leaders in the
Finnish case company Tradeka. Following key questions are intended to be
answered: What are the consequences between leaders actions and employees
retention? Which is the leader’s role when it comes to retaining employees? Purpose
statement: The purpose of the thesis is to investigate and analyze how company
leaders today can retain their key employees. How can the provision of key human
resources develop a long-term relationship that makes top employees stay in the
company? The study aims to establish the procedure leaders apply to retain
employees. The purpose is to compare the qualitative study, made at the case
company, with findings from the thesis theoretical framework. Research method:
The study is a qualitative, as well as a theoretical study where empirical findings
and theories has been compared. The intention of investigating and using the
Finnish company Tradeka Limited as a case company, is to make the information
from the theories more valid, and also the interest in how retention management
works in practice. Eleven qualitative interviews were conducted at Tradeka?s
financial department, both with supervisors and employees to get a broader view at
the phenomenon retention management. Result: Leaders and their skill in creating
a culture of retention, has becoming

a key in why people stay and what usually drives them away from a company. The
leader has become the main factor in what motivates people’s decision to stay or
leave. For organizations to keep its key employees their number one priority should
be to look at their management, because people leave managers and not
companies. Characteristics in a leader that are of importance, as the leader plays a
key role in retention management is: trust builder, esteem builder, communicator,
talent developer and coach, and talent finder. The leader’s relation to the
employees plays a central role in retaining employees, because employees need to
feel involvement, and that their presence count. When retention is a core value,
good things happen for customers, employees, and the company.
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.

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 superior’s expectation
and 18% respondents are not able to meet superior’s expectation.
· It is found out that,57% of respondents feels that there pay is on par with compare
to employee’s handling similar responsibilities, and 39% of respondents feels that
there pay is less with compare to employee’s 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.
· 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 Kendall’s 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
Herzberg’s, two factor theory of Retention, job enrichment is considered to be a
powerful motivator. An enriched job has added responsibilities. The makes the job
interesting and rewarding. Job enlargement refers to adding a few more task
elements horizontally. Task variety helps motivate job holders. Job rotation involves
shifting an incumbent from one job to another.

Recommendations

1. Develop an attractive employee value proposition.

An employee value proposition means that your company has something attractive
to offer that is perceived as valuable to an employee. as an employer, you must
understand what makes your organization attractive to potential recruits and
current employees. Branding yourself as an employer of choice is not just a slick set
of marketing tactics. The best advocates for an employer’s 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 employee’s decision to leave a company. It is imperative to
provide supervisors and managers with adequate tools to become effective
managers since we cannot assume that these competencies are innate. Professor
Patrick Connor, recently
retired after teaching 25 years at the atkinson Graduate school of Management, is
famous among MBA students and alumni for his ‘Connorisms.’He told them, “your
employees do not work for you, they work for themselves.” When I teach my
students about managing organizations, I have them reflect on what really matters
to employees and what they are constantly asking of their managers and their
organizations. In the end, what employees expect of their managers 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

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