HRM Grp 5 Employee Retention

8/3/2019 HRM Grp 5 Employee Retention

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HUMAN RESOURSE MANAGEMENT

PROJECT

PT-PGPM APRIL 2011 BATCH, Section – B, TERM-III

RETENTION OF EMPLOYEE

Introduction

Meaning of Employee Retention

Bad Effects of Poor Employee Retention

Need & Importance of Employee

Retention

Strategies to retain Employees 3 best strategies by group discussion.

Conclusion

SUBMITTED BY: Group -5 Submitted to:

Rahul yadav (60) Prof. J.K. Jain

Santosh Aman (77) MDI Gurgaon

Surender Midha (86)

Vikram Dutta (99)

Vivekanand (101)

Varun Sood (92 )



Introduction

Employee retention has become very important topic of research & as well

as practical importance for HR practitioner’s .Each industry has employee

iteration as one of its biggest problem.

Bigger is the problem, biggest is the challenge to solve it .Each company

management is also trying to trade off between this challenge & fulfilling

the business short term as well as long term objectives.

So, as a group we took challenge to study this topic religiously within the

short allotted time & bring out some sensible learning out of our study

topic.

At the start we set our objective as study of various method of employee

retention & based on group discussion decide subjectively the best 3

methods generally in practice.

First of all we decided the methodology, which is as follow:-

1. Study the meaning of employee retention in detail & study why

employee need to be retained. This will help us to find more

constructive solution & will provide solution congruency to ourobjective.



2. Study the related material from various books & through internet for

further clarity on way of proceeding.

3. Collection of data of various employee retaining practices of our self

companies in which we are working presently. Our group is a

heterogeneous group in term of employments, means 2 persons are

from software sector, 2 are from manufacturing company & 1 is in

marketing field & 1 is associated with Indian NAVY. So group itself

represent large part of industry. After data collection we decide to

compare various practices.

4. Data analysis & discussion of each practice in detail & rank based on

our subjective discussions & selection of first 3 practices which are

most impactful for employee retention.

5. At last we decided to discuss various other methods or practices

which HR & management can adopt to further strengthen their

practices & initiate new to retain good employee. To find out this we

decided to ask our self some questions.

Following question we decided to ask to ourselves in a group

5.1) Why we think to leave the present employer?

5.2) Why we left our past employer?

5.3) What are the bad practices our companies are doing, which

annoy & bring frustration among employees?

We thought about introducing some format to collect information & data,

but as it will bring in various constraints along with it & will kill the

individual creativity & innovation. So we decided to collect information &

data in free format & based on one’s access to HR practices.

So, due to limited time we cannot claim our study & conclusion is

comprehensive, but we tried to do justice with the subject & put our hard

work to collect correct & concise information related with this subject.

During this process we faced some difficulties also which we want to

jot down so that if this material is referred by someone ,the reader will be



ready for the challenges & plan his / her course of actions by keeping in

mind the challenges faced by this group.

1. As topic heading was already decided, we jumped directly to the

course of action without deciding the concrete objective of group.This resulted in wastes of precious time. So it is imperative to decide

the ultimate objective concretely before start of work.

2. Decide the mile stone, this will help one to work consistently & more

effectively .Based on these milestones it is necessary to decide the

group meetings. This will bring self discipline in the group.

During Group discussion our discussion inadvertently turns in to exploring

need of employees & employers. Employee has some set of expectation

from the employer & at the same time of employer is also having some sort

of stated & unstated expectations. The employer who are capable enough to

match these two types of expectation from two different perspective ,are

able to retain their employees & in turn also grab places for the surveys like

most sought employer or First 10 Good companies to work.

What is Employee Retention?

Employee retention refers to the various policies and practices which

let the employees stick to an organization for a longer period of time.

Every organization invests time and money to groom a new joiner, make

him a corporate ready material and bring him at par with the existing

employees. The organization is completely at loss when the employees

leave their job once they are fully trained. Employee retention takes into

account the various measures taken so that an individual stays in anorganization for the maximum period of time. One question is always a

puzzling one whether efforts to be limited to few good employees or to all

.2nd question is which level is most important to organization. 2nd question

is relatively easy to answer because organization is group of peoples

working at different level & performing different level of tasks. So each

level is important to organization & Good employee need to retain despite

of level & position. As need of different level person is different making

policies of wide array of employees is challenge for HR professional. It is

biggest challenge to keep policies simple & yet comprehensive to satisfythe need of all level employees. So formulating strategies for Employees



retention is very complicated process, but it is very much important for the

survival of any organizations. How important employee’s retention is for

any organization can be derived if one is able to see the effects of poor

retention. Some of the effect we have listed down below.

After effects of poor employee retention:

Every organization invests its time and money in training a new

joiner to bring him at par with the existing employees. The

organization is at a complete loss when the employees quit all of a

sudden. Hiring needs to be done all over again and still there is no

surety whether the new joiner would be apt for the profile or not?

One wrong person hired and the output of the entire team and

eventually the organization goes for a toss.

Employees who spend a considerable amount of time in any

organization know it in and out and thus can perform better.

They are well familiar with the company policies and adjustment is

never a problem. Employees who come and go find it very difficult to

settle down in a new environment and are thus always in a state of

dilemma.

Individuals who have the habit of changing jobs frequently

never get attached to any particular organization. They just treat

the organization as a mere source of earning money. They are never

serious about their work and fail to accomplish the tasks within the

desired time frame. It hardly matters to them whether the

organization is performing well or not? In cases of poor retention

policies, employees are just not bothered about the reputation of

their office and avoid taking initiative to do something new. The

employees who are there for a long time in the organization are

trustworthy and the management can rely on them anytime.

When individuals leave any organization, they are more likely

to join the competitors. Sometimes they tend to take confidential

data along with them to create an impression in their neworganization. This way the plans of the organization get leaked even



Need & Importance of Employee Retention

Hiring is not an easy process: The HR Professional shortlists few

individuals from a large pool of talent, conducts preliminary

interviews and eventually forwards it to the respective line managers

who further grill them to judge whether they are fit for the

organization or not. Recruiting the right candidate is a time

consuming process.

An organization invests time and money in grooming an

individual and makes him ready to work and understand the

corporate culture: A new joiner is completely raw and themanagement really has to work hard to train him for his overall

development. It is a complete wastage of time and money when an

individual leaves an organization all of a sudden. The HR has to start

the recruitment process all over again for the same vacancy; a mere

duplication of work. Finding a right employee for an organization is a

tedious job and all efforts simply go waste when the employee leaves.

before implementation and they fail to do anything great.

An organization can’t perform well if the employees speak

negative about it . It is essential to have a group of loyalists who play

an important role in furthering the brand image of the company.

Employees working with an organization for a long time never

badmouth it and are somewhat emotionally attached to it .

People leaving in a short span always speak ill about their previous

organizations. The loyalty factor is almost zero and no one is ready

to take ownership of work.

Considering the above effects, it is clear that good employee need to be

retained. Let us understand why retaining a valuable employee is essential

for an organization.



The employees working for a longer period of time are more

familiar with the company’s policies, guidelines and thus they

adjust better: They perform better than individuals who change jobs

frequently. Employees who spend a considerable time in an

organization know the organization in and out and thus are in aposition to contribute effectively.

Every individual needs time to adjust with others: One needs time

to know his team members well, be friendly with them and

eventually trust them. Organizations are always benefited when the

employees are compatible with each other and discuss things among

themselves to come out with something beneficial for all. When a

new individual replaces an existing employee, adjustment problems

crop up. Individuals find it really difficult to establish a comfort level

with the other person.

It has been observed that individuals sticking to an organization

for a longer span are more loyal towards the management and

the organization: They enjoy all kinds of benefits from the

organization and as a result are more attached to it. They hardlybadmouth their organization and always think in favor of the

management. For them the organization comes first and all other

things later.

It is essential for the organization to retain the valuable

employees showing potential: Every organization needs

hardworking and talented employees who can really come out withsomething creative and different. No organization can survive if all

the top performers quit. It is essential for the organization to retain

those employees who really work hard and are indispensable for the

system.

For an organization to do well and earn profits it is essential that the high

potential employees stick to it for a longer duration and contribute

effectively. The employees who spend a considerable amount of time tend

to be loyal and committed towards the management and always decide infavor of the organization. The management can’t completely put a full stop



to the process of employees quitting their jobs but can control it to a large

extent.

Common strategies to retain an employee:

Work should never become monotonous and must offer a new

learning each day. An employee should be able to upgrade his skills

and enhance his knowledge at the workplace. Employees leave the

organization whenever there are no chances of further growth. An

individual must be made to do something which really excites him

and most importantly matches his background. The employees must

be asked to accomplish the tasks in the most innovative way for them

to enjoy their work. No one should be asked to do anything out of

compulsion. The team leader must not force anyone to work. Let them accept assignments willingly. The moment work becomes a

burden for the employees, they look for a change.

Constant disputes among employees encourage them to go for a

change. Conflicts must be avoided to maintain the decorum of the

place and avoid spreading negativity around. Promote activities

which bring the employees closer. Organize outdoor picnics, informalget together for the employees to know each other better and

strengthen the bond among them. Let them make friends at the

workplace whom they can really trust. Friendship among employees

is one strong factor which helps to retain employees. Individuals who

have reliable friends at the workplace are reluctant to move on for

the sake of friendship. No one likes to leave an organization where he

gets mental peace. It is essential to have a cordial environment at the

workplace.

The human resource department must ensure that it is hiring

the right candidate. Frustration crops up whenever there is a

mismatch. A finance professional if is hired for a marketing profile

would definitely end up being frustrated and look for a change. The

right candidate must be hired for the right profile. While recruiting a

new candidate, one should also check his track record. An individual

who has changed his previous jobs frequently would also not stick to

the present one and thus should not be hired.



Employee recognition is one of the most important factors which

go a long way in retaining employees. Nothing works better than

appreciating the employees. Their hard work must be acknowledged.Monetary benefits such as incentives, perks, cash prize also motivate

the employees to a large extent and they prefer sticking to the

organization. The performers must have an upper edge and should

get a special treatment from the management.

Performance appraisals are also important for an employee to

stay motivated and avoid looking for a change. The salary hike

should be directly proportional to the hard work put by the

employees. Partiality must be avoided as it will demotivate the

talented ones and prompt them to look for a better opportunity.

The company’s rules and regulations should be made to benefit

the employees. They should be employee friendly. Allow them to

take a leave on their birthdays or come a little late once or twice in a

month. It is important for the management to understand theemployees to gain their trust and confidence. The consistent

performers must also have a say in the company’s decisions for them

to feel important.

An over burdened worker never finds his job interesting and

would always be eager for a change. It is the duty of the manager

to distribute the work equally among all the employees. The managershould not be partial to anyone and treat all his members as one. He

should not let negativity creep in the team. Nothing productive comes

out of disputes, rather it demotivate the individuals and prompt them

to look for some another opportunity.

Rules and regulations should be same for everyone. Avoid

granting special favors to anyone.



The superiors must maintain transparency in communication.

Every team member should get the same information from their boss

for them to remain satisfied and loyal towards the organization.

Every individual should enjoy privacy at the workplace. The

superiors must ensure that no employee interferes in each other’s

work. Team members sitting at adjacent desks should not overhear

their colleague’s conversation or check any confidential documents.

These things lead to severe demotivation and prompt an individual to

look for a change. Discussion is important but one should not irritate

anyone. The team manager should also not make his team member’s

life hell. Just give them deadlines and ask them to complete the

assignments within the desired time frame. Motivate them to deliver

their best but don’t be after their life. Remember everyone is mature

enough to understand that work comes first, and everything later.

The seniors must be reachable to their subordinates in case of

queries. The hierarchy should not be too complicated and

transparency in communication is important at all levels.

Manipulation of truth should be strictly avoided as it leads to severemisunderstandings and eventually conflicts. Employees look for a

change when there are unnecessary disputes at the workplace. The

team leader once in a week must make sure to meet all the team

members on an open forum to address their concern. The meeting

should not be made too formal. Everyone should be allowed to bring

their cups of coffee. Such interaction strengthens the bond among the

employees and also avoids friction among individuals. It is essential

to have a positive ambience at the workplace for people to stick to it

for a longer time.

The management must formulate employee friendly policies.

The employees must be allowed to take one or two leaves in a month

so that they get time to rejuvenate. Don’t call the employees on

weekends. Let them enjoy. The human resource department must

take the initiative to celebrate birthdays of employees at the

workplace. This way people come closer, make friends, develop trust and are thus reluctant to go for a change. Major festivals should also



be celebrated at the organization for employees to get attached to the

organization.

Incentives, cash prizes, trophies, perks should be given to

deserving employees to motivate them to perform up to the

mark every time. The salaries of the high potential employees must

be appraised from time to time as monetary dissatisfaction is one of

the major reasons for employees quitting their jobs. The hard work of

the workers must be appreciated. The slow learners must not be

criticized but should be inspired to gear up for the next time.

The performers must be made to participate in the decision

making process. They should have a say in the major strategies of

the organization for them to feel important and trust the

management.

Discipline is a must at the workplace. If the office timing is 9.30

am, every employee regardless of designation must punch his card at

9.30 am sharp or before that. No relaxation should be given to

anyone. Partiality is something which does not work in the corporateworld. It is important to maintain the decorum of the office to make

the organization a better place to work.

Group discussion & selection of 3 best strategies

Intention to leave and actual turnover are often highly correlated As group

we discussed about our companies & our intention to leave Based on self

analysis by asking what are the good & bad practices from individual point

of view & further refining with group discussion we were able to select 3best strategies which any organization can adopt to have better employee

retaining ratio.

These are as follow:

1) Creating positive & nurturing work environment where each employee

is able to engage & attach oneself to the job & can clearly see his/her future.

As per 2011 Employee Engagement Report , Inorganizations every individual is accountable for his or her



own engagement; anyone with direct reports must coach team

members to higher levels of engagement and manage his or her

own engagement; and executives set the tone for high morale

and motivation plus shoulder the responsibilities of individuals

and managers. This will create positive work environment.This report clarifies those roles and responsibilities.

Individuals: Ownership, clarity and action. Individuals need

to know what they want — and what the organization needs —

and then take action to achieve both.

Managers: Coaching, relationships and dialogue. Managersmust understand each individual’s talents, interests and needs

and then match those with the organization’s objectives —

while at the same time creating personal, trusting relationships.

Furthermore, they need to discuss engagement often.

Executives: Trust, communication and culture. Executives

have to demonstrate consistency in words and actions,communicate a lot (and with a lot of depth), and align all

business practices and behaviors throughout the organization

to drive results and engagement.

Whether you play one, two or three of the roles described above, the 2011

Employee Engagement Report is designed to shed light on your quest for

creating a more meaningful, productive work experience for you and your

colleagues.

2) Creating company image in the eyes of employee, customer should be

good, supplier & all stakeholders. If image is good & have brand value,

employees will tend to work longer. Product & process technology should

be advance as per industry norm.

3) Transparency in business with its stakeholder. Especially with

employee’s organization should take care so that employees have trust in

management. Country cultural values & HR policies should be incongruence with each other.



These are the 3 foremost important strategies from our group point of

view, but strategies can be selected based on actual situation.

Conclusion:

Thus, this study concluded that organizations could reduce turnover rate

by Improving the organizational climate. Any of the organizational climate

dimensions that perceived to be negative may trigger employees’ intention

to quit their jobs, more so for the less dominant and less sociable

employees. To reduce employee turnover rates, an organization should

eliminate unnecessary rules and procedures that are ineffective and

burdensome. High-performance employees should be empowered to make

decisions. Giving adequate decision-making authority makes employees

feel that they are valued and treated respectfully and hence will continue toserve the organization. Meanwhile, organizations should practice fair and

equitable performance-based rewards system and employees should be

paid what they are worth and not what the organization guidelines require.

Besides, if employees are working in an environment, that they can express

themselves and being developed with more interpersonal support and

opportunities for career advancement, the employees are more likely to

stay in the organizations. Therefore organizations should then provide

broad-skill training, organize mentoring programs and succession

planning. These activities motivate the good employees to stay as it Increases the promotion from within opportunities and provides

employees a greater sense of connection to the organizations. The

understanding of people develop perceptions of fit over time needs to be

emphasized. Perceptions drive individuals’ behaviors and choices and

employees tend to stay in organizations that perceived compatible with

their personalities. Hence, the management team needs to be observant

enough to understand the characteristics of employees they have and make

necessary changes and customize policies and systems accordingly. In a

nutshell, this study has demonstrated that Management should form anorganization that promote positive organizational climate which includes

well-defined job responsibilities and policies with flexible structure, fair

and equitable rewards system as well as a supportive and friendly work

atmosphere. Positive organizational climate exerts and enhances

employees’ job satisfaction and hence less likely to look for jobs

somewhere else. Keeping good employees is critical to business success

and organizations should make employee retention a part of corporate

culture.



References

Downey, H.K., Hellriegel, D., Slocum, J.W. 1975, ‘Congruence between Individual

Needs, Organizational Climate, Job Satisfaction and Performance’, Academy of

Management Journal , pp. 149-155. Hong & Kaur 10

Roseman, E. 1981, Managing Employee Turnover: a Positive Approach

http://www.managementstudyguide.com/employee-retention.htm

http://en.wikipedia.org/wiki/Employee_retention

http://indiaattritionstudy.com/about_the_study/context_introduction.htm

http://retention.naukrihub.com/attrition-rates-in-different-sectors.html










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HRM Grp 5 Employee Retention

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