Date post: | 28-Nov-2014 |
Category: |
Documents |
Upload: | vipul99solanki |
View: | 787 times |
Download: | 2 times |
Impact of Job Satisfaction levels on Employee Retention
CHAPTER: I INTRODUCTION
HUMAN NEEDS MEANING:
An ability to understand and influence human behaviour postulates knowledge of the
needs of man. According to Norman Maire, a need may be defined as “a condition
requiring the supply of relief”. “The lack of anything requisites, desire or useful”. In
opinion of Kolasa, “A need is a personal, unfulfilled vacancy that determines and
organizes all mental processes and all behaviour in the direction of its attainment”.
Needs are not as simple as they are often considered to be. One has to handle
many problems simultaneously; immediate needs of hunger, thirst, sleep, shelter as
well as long range personal goals of job security. Personal needs vary in intensity
from person to person and vary daily within the same person. On the other hand,
unsatisfied needs are the starting points for the understanding of “Motivation”.
Unsatisfied needs produce tension when the individual is unable to satisfy needs,
frustration is the result. Some people will then react in a positive manner known as
constructive behavior and other in a negative manner (defensive behaviour).
MASLOW’S RANK ORDER OF HIERARCHY OF NEEDS:
It is generally not easy to say which of man’s needs are important at a particular time
and place. Psychologists have given considerable thought to this important issue
and have tried to fix priorities for them Prof. A Maslow of Brandels University has
pointed out that “Needs are organized in a series of levels called the hierarchy of
needs or the hierarchy of relative potency”.
Needs, according to Maslow, have a definite sequence of domination i.e., unless the
needs of the lower order are reasonably satisfied, those of the higher order do not
dominate. In lower level needs, Maslow includes the “basic psychological needs” and
“safety and security needs” He regards these are ‘striving needs’ i.e. needs which
make a person do things.
The higher level needs or growth needs are concerned with social needs, esteem
and self actualization needs. Maslow’s need hierarchy theory stresses two
fundamental promises:
Page 1
Impact of Job Satisfaction levels on Employee Retention
1. Man is a wanting animal whose needs depend on what he already has. Only
needs not yet satisfied can influence behavior. In other words, a satisfied
need is not a motivator.
2. Man’s needs are arranged in a hierarchy of importance once one need is
satisfied another need emerged and demands satisfaction.
Maslow hypothesized five levels of needs these needs are:
1. Physiological Need
2. Safety Need
3. Social Need.
4. Esteem Need.
5. Self Actualization Need.
Basic Physiological Needs:
At the lowest level are the physiological needs. “Man lives by bread alone. As long
as it is not available” Once it is available it ceases to have importance for the time
being. Maslow observed “For a man who is extremely and dangerously hungry, no
other interest exist but food. He dreams food, he remembers food, he thinks about
food, he emotes only food. He perceives only food, and he wants only food,
Freedom, love, community feeling, respect, philosophy, sexual behavior, may all be
waived aside as fripperies, which are useless since they fail to fill the stomach such
a man may fairly be said to live by bread alone”. Mahatma Gandhi put it in another
way “Even God cannot talk to a hungry man except in terms of bread”. Physiological
needs, when constantly gratified, cease to exist as active determinants of behaviour.
Safety Needs:
When physiological needs have been reasonably satisfied, the next higher needs
emerge, viz. the safety needs. The need for security includes:
Avoidance of harm forms the physical environment (too much cold or heat) need for
shelter, protective clothing, artificial warmth, and way of protecting one self.
Page 2
Impact of Job Satisfaction levels on Employee Retention
Affiliation or Affection Needs:
When man’s physiological and safety needs have been satisfied, his social needs
become important. These needs are concerned with:
1. Getting companionship, associating with someone, having a wife and
children.
2. Seeking acceptance by his fellow beings.
3. Giving and receiving love and affection.
4. Becoming a member of a group, club, society or any other formal
organization.
5. Co-operating with others, Elton Mayo say’s “Man’s desire to be continuously
associated in work with his fellows is strong, if not strongest human
characteristic.
6. Protecting one’s child, infant, weak and older people, when a man’s social
needs are not satisfied, he behaves in a peculiar way which often tends to
defeat organizational objectives. He resists, become antagonistic,
uncooperative and even hostile.
Esteem Needs:
When belonging and affiliation needs are satisfied, then esteem need arise, “where
by individuals desire a high evaluation of themselves”. These needs are concerned
with the awareness of importance to others (Self esteem) and the actual esteem
from others.
1. SELF ESTEEM (i.e. self respect), comprises feelings of competence,
autonomy, achievement, acquisition, retention and confidence. These needs
may be the result of basic physiological and safety needs.
2. ESTEEM FROM OTHERS: This includes the need for recognition, attention,
importance or appreciation from other people, reputation or prestige, status
and power to control.
Page 3
Impact of Job Satisfaction levels on Employee Retention
Self Actualization Needs:
There are the needs, which help realize one’s own potentialities for continued self
development and for being creative. Maslow pointed out that a man generally wants
to achieve self fulfillment that is he has a tendency to develop his potential. This
tendency might be pleased as the desire to become more and more what one is, to
become everything one is capable of becoming. “To satisfy this need, one may
become a good singer, a reputed author, renowned athlete, an ideal manager or an
ideal mother.
HERZBERG’S TWO FACTORY THEORY:
Maintenance factors, Content Or
Extrinsic Factors.
Satisfiers, Context Factors
Or
Intrinsic Factors.
1. Company policy and administration
2. Quality of supervision.
3. Relations with Supervisors.
4. Peer relations.
5. Relation with subordinates.
6. Pay or Salary.
7. Job Security.
8. Working Conditions
9. Status
1. Achievement.
2. Recognition.
3. Advancement.
4. Work itself.
5. Possibility for growth.
6. Responsibility.
Maslow’s theory has been modified by Herzberg and he called it as “Two factor
theory of Motivation”. According to Herzberg the first groups of needs are such
things as company policy and administration supervision, working conditions, salary
and status and job security. Herzberg called these factors as ‘dissatisfies’ and not
motivators. By this he means that their presence or existence does not motivate, in
the sense of yielding satisfaction. But their absence would result in dissatisfaction.
These are also referred to as ‘Hygiene Factors’ or ‘Maintenance Factors’.
In the second group are the ‘satisfiers’ in the sense they are motivators, which are
related to job content. He included the factors of achievement, recognition,
Page 4
Impact of Job Satisfaction levels on Employee Retention
challenging work, advancement and growth in the job. He says that their presence
will yield feelings of satisfaction.
The position in India:
In the Indian context, it may be said that psychological needs, these take the form of
job security, security against hazard of life and security against industrial injury. The
safety laws and measures of social security have been designed to satisfy some of
these needs.
As for the higher social needs, they are not easy to satisfy. However close
relationships are built with at least some fellow workers. Ego needs are satisfied to a
very limited extent whereas self realization or self actualization takes very seldom.
The Changing Nature of Human Needs:
As the time has changed, the Human needs have also been changing. If needs are
not satisfied, a person may aim at alternative goals, which hold a promise of
satisfaction or indulge in some kind of defensive behavior in an attempt to his
feelings.
Non attainment of goal, which would satisfy certain needs, is productive of many
serious problems. It should be remembered that when a goal is directed behaviour is
successful, it leads to a release of tensions and the satisfaction of needs, but when
this is not so a frustrated behaviour develops in the form of discouragement,
excessive complaining, bragging, lying, jealousy, frequent change of jobs, excessive
absenteeism, withdrawal from work, day dreaming, wasteful and destructive
behaviour, irritation, annoyance etc.
When people adopt non-rational ways of behaviour to face frustration, they are said
to use their defense mechanism. These are referred to as defense mechanism.
Managers’ role in need fulfillment
As we have stated earlier, need fulfillment is the responsibility of the management
therefore the managers should know what the needs (current) of the employees are
and then should evaluate their legitimacy and finally provide for their attainment.
Page 5
Impact of Job Satisfaction levels on Employee Retention
The first task before the management is to discover the present needs of an
employee. Having known the needs, the management is required to take some
decision as to how these needs can be fulfilled. Finally, the management thinks of
various ways in which needs could be fulfilled. These are discussed below:
a) Fulfillment of physiological needs, providing reasonable wage and salaries
with which basic necessities of life may be purchased.
b) The need for security can be fulfilled by providing a consistent, fair and
concerned attention to the workers. Medical and hospitalization insurance,
disability compensation, pension plan, social security, benefits etc. are the
measures through which economic security can be provided.
c) The need for affiliation can be fulfilled by providing for work breaks, arranging
organization wise and department wise picnics and banquets and proper job
assignments.
d) Competence need: The management can help to develop a feeling of
competency by assessing the capabilities of employees, necessary training,
communication and material assistance and feedback for successful
performance can be provided.
e) The reputation need is often fulfilled by giving praise, promotion, salary
increase giving prizes for services rendered etc, are the management
response to the needs of needs of workers for esteem and recognition.
f) The need for power is fulfilled by delegation of authority. The need for
achievement can be fulfilled by assigning greater delegation of decision-
making duties and assignments of high risk task.
QUALITY OF WORK LIFE
INTRODUCTION:
Employees at the grass Root level experience a sense of frustration because of low
level of wages, poor working conditions, unfavorable terms of employment, in human
treatment by their superior, inter personal conflicts, role conflicts, job pressures, lack
of freedom in work, absence of challenging work etc.
Work was worship and people had sincerity and commitment to work. But norms
have been changing from time to time.
Page 6
Impact of Job Satisfaction levels on Employee Retention
MEANING:
There has been much concern today about the decent wages, convenient working
hours, conducive working conditions etc. There is no generally acceptable definition
about this term; however some attempts have been made to describe the term
quality of work life. “It refers to the favourableness or unfavourableness of a job
environment for people.”
Quality of work life improvements are defined as “any activity which takes place at
every level of an organization which seeks greater organizational effectiveness
through the enhancement of human dignity and growth.
RICHARD E. WALTON explains quality of work life in terms of eight broad conditions
of employment that constitutes desirable quality of work life. He proposed these
criteria for measuring quality of work life. Those condition criteria include:
a) Adequate and fair compensation: There are different opinions about
adequate compensation. The committee on fair wage defined fair wage as
“The wage which is above the minimum wage but below the living wage”.
b) Safety and Healthy working conditions: Most of the organizations provide
safe and healthy working conditions due to humanitarian requirements and or
legal requirements. In fact these conditions are a matter of enlightened self-
interest.
c) Opportunity for career growth: Opportunity for promotions is limited in case
of all categories of employees either due to educational barrier or due to
limited openings at the higher level. Quality of work life provides future
opportunity for continued growth and security by expanding one’s capabilities,
knowledge and qualifications.
d) Opportunity to use and develop human capacities: Contrary to the
traditional assumptions, quality of work life is improved “to the extent that the
worker can exercise more control over his or her work.” Further quality of work
life provides for opportunities like autonomy in work and participation in
planning in order to use human capabilities.
e) Social integration in the work force: Social integration in the work force can
be established by creating freedom from prejudice, supporting primary work
Page 7
Impact of Job Satisfaction levels on Employee Retention
groups a sense of community and interpersonal openness and upward
mobility.
f) Work and quality of life: Quality of work life provides for balanced
relationship among work, non-work and family aspects of life. In other words
family life and social life should not be strained by working hours including
over time work, work during inconvenient hours, business travel, transfers,
vacations etc.
g) Constitutionalism in the work organization: Quality of work life provides
constitutional protection to the employees only to the level of desirability as it
hampers workers. It happens because management’s action is challenged in
every action and bureaucratic procedure needs to be followed at that level.
Constitutional protection is provided to employees on such matters as privacy,
free speech, equity and due process.
h) Social Relevance of work: Quality of work life is concerned about
establishment of social relevance to work in a socially beneficial manner. The
employees self esteem would be high if his work is useful to the society and
the vice versa is also true.
Page 8
Impact of Job Satisfaction levels on Employee Retention
SPECIFIC ISSUES IN QUALITY OF WORK LIFE
Employees claim that they are responsible for the improvement in various
facilities to workers whereas management takes credit for improved salaries,
benefits and facilities. However human resource manager has specific issues in
quality of work life besides normal wages, salaries fringes etc. and take lead in
providing them so as to maintain higher order quality of life. Some of the major
qualities of work life issues are:
1. Pay and stability of employment: Good pay still dominates most of the
other factors in employee satisfaction. Cost of living index, increase in
levels and rate of income tax and profession tax should be taken into
consideration while computing salary.
2. Occupational Stress: Stress is determined by the nature of work, working
conditions, working hours, pause in work schedule, workers abilities and
nature and match with the job requirement. Stress is caused due to
irritability or depression, unstable behavior, fatigue, troubling psychometric
pains, heavy smoking and drug abuse. The personnel manager can help
the employees to get rid of these problems.
3. Alternative work schedule: It includes flexible working timings, work from
home, part time employment which may be introduced for the convenience
and comfort of the worker.
4. Participative management and control works: Employees participation
in decision making improves the quality of work.
5. Recognition: Rewarding systems, congratulating the employees for their
achievement, job enrichment, promotions decent work places,
membership in clubs are some means to recognize the employees.
6. Congenial worker supervisor relations: Harmonious supervisor worker
relation gives the worker a sense of social association belongingness
achievement of work result etc. This in turn leads to better quality of work
life.
7. Grievance procedure: Workers have a sense of fair treatment when the
company gives them the opportunity to ventilate their grievance and
represent their case properly rather than settling the problems arbitrarily.
Page 9
Impact of Job Satisfaction levels on Employee Retention
8. Adequacy of resource: Resource should match with stated objectivity;
otherwise employees will not be able to attain the objectives. This results
in employee dissatisfaction and lower Quality of work life.
9. Employment on permanent basis: Employment of worker on casual,
temporary, probationary basis gives them a sense of insecurity on the
other hand employment on permanent basis gives them security and leads
to higher order quality of work life.
10.Seniority and merit in promotion: Seniority is generally taken as the
bases for promotion for operating employees. Merit is considered as the
basis for advancement of managerial people whereas seniority and merit
is preferred for promotion of ministerial employees. The promotional
activities should be fair and just in order to ensure higher quality of work
life.
Implementing all these strategies ensures higher level of quality of work life.
SPECIFIC AREA OF THE TOPIC CHOSEN
JOB SATISFACTION
MEANING
LOCKE gives a comprehensive definition of job satisfaction as “a pleasurable or
positive emotional state resulting from the appraisal of one’s job or job experience”.
Job satisfaction is a result of employee’s perception of how will their job provide
those things that are viewed as important. It is generally recognized in organizational
behavior field that job satisfaction is the most important and frequently studied
attitude.
Job satisfaction is a combination of psychological, physiological and environmental
factors that makes a person to admit “I am happy at my job”. When the employees
get satisfied with the job then retaining them is not difficult. Job satisfaction and
retention are interlinked. Several studies have been conducted on job satisfaction,
new research findings on employee job satisfaction conducted by the Human
Page 10
Impact of Job Satisfaction levels on Employee Retention
Performance Institute have shown that free cafeteria food and flexible programs
aren’t enough. An employee’s job satisfaction depends as much on the positive
mental, spiritual, physical, and emotional resources the employee brings to the
workplace. Successful organizations realize employee retention and talent
management are integral to sustaining their leadership and growth in the
marketplace. Becoming an Employer of Choice by retaining high-caliber employees
in today's labor market should be the highest priority.
Employee Retention involves taking measures to encourage employees to remain in
the organization for the maximum period of time. Corporate is facing a lot of
problems in employee retention these days. Hiring knowledgeable people for the job
is essential for an employer. But retention is even more important than hiring. There
is no scarcity of opportunities for a talented person. There are many organizations
which are looking for such employees. If a person is not satisfied by the job he’s
doing, he may switch over to some other more suitable job. In today’s environment it
becomes very important for organizations to retain their employees. The top
organizations are on the top because they value their employees and they know how
to keep them glued to the organization. Employees stay and leave organizations for
some reasons. The reason may be personal or professional. These reasons should
be understood by the employer and should be taken care of. The organizations are
becoming aware of these reasons and adopting many strategies for employee
retention. 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. Retention
involves five major things:
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.
Environment: It is not about managing retention. It is about managing
people. If an organization manages people well, employee will take care of
Page 11
Impact of Job Satisfaction levels on Employee Retention
itself. Organization environment includes culture, values, company reputation,
quality of people in the organization, employee development & career growth,
risk taking, leading technologies & trust.
Growth: 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.
Relationship: 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 decreases employee’s interest and he becomes
de-motivated. It leads to less satisfaction and eventually attrition.
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.
INFLUENCE ON THE JOB SATISFACTION
There are a number of factors that influence job satisfaction. Smith, Kendall and
Hulin have suggested that there are five job dimensions that represent the most
important characteristics of a job about which people have effective responses.
These are
1. The Work itself: The content of work itself is a major source of
satisfaction. Feedback from the job and autonomy are two of the major job
related motivational factors. Some of the important ingredients of a
satisfying job covered by surveys include interesting and challenging work,
that is not boring and a job that provides status.
2. Pay: Salaries are recognized to be a significant but cognitively complex
and multidimensional factor in job satisfaction. Money not only helps
people attain their basic needs but is instrumental in providing upper level
satisfaction. Recent research indicated that if employees are allowed
Page 12
Impact of Job Satisfaction levels on Employee Retention
some flexibility in choosing the type of benefits they prefer within a total
package, called a flexible benefits plan, there is a significant increase in
both benefits and overall job satisfaction.
3. Promotions: Promotional opportunities seem to have a varying effect on
job satisfaction, because prom options take a number of different forms
and have a variety of accompanying rewards .Individual who are promoted
on the basis of performance.
4. Supervision: It is another moderately important source of job satisfaction.
This seems to be two dimensions of supervisory style that affect job
satisfaction. One is employee centeredness, which is measured by the
degree to which a superior takes a personal interest in the employees’
welfare. The other is participation or influence, as illustrated by managers
who allow their people to participate in decisions that affect their own jobs.
5. Working conditions: Working condition has a modest effect on job
satisfaction. If the working conditions are good (Clean, attractive,
surroundings for instance), the personnel will find it easier to carry out their
jobs. If the working conditions are poor (hot noisy surroundings, for
example), personnel will find it more difficult to get things done.
6. Environmental impact: Job satisfaction is one part of employee
satisfaction the nature of one’s environment, off the job indirectly
influences ones feeling on the job. Similarly, since a job is an important
part of life for many workers, job satisfaction influences one’s general life
satisfaction.
When people are satisfied, they will spread well about the organization. When the
good will of the company goes up:
New qualified and dynamic entrees show their interest in joining the
Organization.
Individual become affectionate with the Organization.
A Satisfied employee lives peacefully both inside and outside. It improves the
productivity and reduces the absenteeism and labor turn over. On the contrary, a
chronically upset individual makes the organizational life vexatious for others with
whom he interacts.
Page 13
Impact of Job Satisfaction levels on Employee Retention
OUTCOMES OF JOB SATISFACTION
To society as a whole as well as from an individual employees stand point, job
satisfaction in and of itself as a desirable outcome. It is important to know that if job
satisfaction is high, will the employees perform better and the organization is more
effective? If job satisfaction is low will there be performance problems and
ineffectiveness? In examining the outcome of job satisfaction, it is important to break
down the analysis into a series of specific subtopics. The following sections examine
the importance of these.
1. Satisfaction and Productivity: The satisfaction- performance controversy
has raged over the years. Satisfied workers will not necessarily be the
highest producers. There are many possible moderating variables, the
most important of which seem to be rewards. If people receive rewards
they feel are quotable, they will be satisfied and this is likely to result in
greater performance effort. Recent research evidence indicates that
satisfaction may not necessarily lead to individual performance
improvement but does lead to departmental and organizational level
improvement.
2. Satisfaction and Turnover: High job satisfaction will not, in and of itself,
keep turnover low, but it does seem to help. On the other hand if there is
considerable job dissatisfaction, there is likely to be high turnover. The
factor which affect satisfaction and turnover are job tenure commitment to
organization, general economy etc. even if they are satisfied, and many
people are willing to leave if the opportunities elsewhere promise to be
better. On the other hand if jobs are difficult to get and downsizing is
occurring, as it has in recent years, dissatisfied employees will stay where
they are. Job satisfaction is important in employee turnover. Although
absolutely no turnover is necessarily beneficial to the organization, a low
turnover rate is usually desirable because of training costs and the
drawbacks of the inexperience.
3. Satisfaction and Absenteeism: Research has pretty well demonstrated
an inverse relationship between satisfaction and absenteeism. When
satisfaction is high absenteeism tends to be low, when satisfaction is low
absenteeism tends to be high. There are moderating variables such as the
Page 14
Impact of Job Satisfaction levels on Employee Retention
degree to which people feel that their jobs are important. For e.g.,
Research among State government employees have found that those who
believed that their work as important had lower absenteeism than those
who did not feel this way. It is important to remember that high job
satisfaction will not necessarily result in low absenteeism; low job
satisfaction brings about high absenteeism.
4. Other effects, such as citizenship behaviors: In addition to those noted
above, there are a number of other effects brought about by high job
satisfaction. Research reports that highly satisfied employees tend to have
better mental and physical health, learn new job related task more quickly,
have fewer on the job accidents and file fewer grievances. Also on the
positive side, it has recently been found that satisfied employees are more
likely to exhibit pro social “citizenship” behavior and activities such as
helping co workers, helping customers and being more co operative.
From an overall stand point, then most organizational behavior researchers as
well as practicing managers would argue that job satisfaction is important to an
organization. But when job satisfaction is low, there seems to be negative effects
on the organizations , so if only from the stand point of viewing job satisfaction a
minimum requirement or point of departure, it is of value of the organizations
overall health and effectiveness and is deserving of study and application in the
field of Organizational behavior.
Page 15
Impact of Job Satisfaction levels on Employee Retention
STUDIES CONDUCTED FOR JOB SATISFACTION
New research findings on employee job satisfaction conducted by the Human
Performance Institute have shown that free cafeteria food and flexible programs
aren’t enough. An employee’s job satisfaction depends as much on the positive
mental, spiritual, physical, and emotional resources the employee brings to the
workplace, according to data gathered from 75,000 working adults on a three-year
study of personal energy management and work-life balance.
“The people who score in the top 10 percent of job satisfaction report they are also
taking care of themselves in the mental, emotional, spiritual and physical realms,”
says Dr. Jim Loehr, CEO of the Human Performance Institute in Orlando.
“Furthermore, people who report the highest job satisfaction are highly self-confident
individuals,” adds Loehr, who notes an 85% correlation between high job satisfaction
and self-confidence. “They are not only satisfied with their jobs; they also feel
competent in work and life. These two are mutually reinforcing.”
The top 10 percent of people said they “agree” or “strongly agree” to the statement,
“I am happy and satisfied in my job.” They also exhibit positive energy management
habits to a far greater degree than people in the bottom 10 percent of job
satisfaction.
For instance, their average exercise and fitness score is 170 percent of those in the
bottom 10 percent of job satisfaction. Their nighttime sleep score is 154 percent of
those in the bottom 10 percent. Their overall rest and recovery, which includes
daytime rest breaks and constructive diversions from work, is 149% of those with the
lowest job satisfaction. Their nutrition is 126% of those in the lowest group. “These
are individuals who have somehow found a way to harness their own sources of
physical energy and motivation, in spite of the distracting environment in which most
of us live today,” Loehr says.
Even more dramatic are the differences in the two groups’ management of “spiritual”
energy—practices related to beliefs about the meaning of life. Those with the highest
job satisfaction score about 250 percent higher on commitment, passion, self-
confidence, vision, and purpose than those in the lowest 10 percent of job
satisfaction.
Page 16
Impact of Job Satisfaction levels on Employee Retention
“It is tempting, based on these numbers, to think that job satisfaction can be
addressed through good candidate selection,” Loehr adds. “And to some extent, it
can. But employers get only one chance at good selection with each opening they
fill, while they have a daily opportunity to encourage people towards practices that
renew physical energy, and as well as the opportunity to encourage employees’ self-
confidence through training and recognition. If the tensions of the job take away
energy, enthusiasm and time for self-renewal, the individual with high job satisfaction
is at risk for becoming less engaged.”
Human Performance Institute describes five ways employers can create a satisfying
work environment:
1. Build employees’ competence and self-confidence through training, feedback and
recognition. “There is a very close relationship between high job satisfaction and
feelings of effectiveness on the job,” says Dr. Loehr. “Encouragement of genuine
self-confidence is probably the number one way to achieve higher job satisfaction.”
2. Communicate the value of the organization’s products and services, and the role
the organization plays in the marketplaces where it operates. “People with high job
satisfaction also report an extraordinarily high sense of mission, vision and passion
for their work,” says Loehr. “They feel their work is consistent with their values. They
couldn’t achieve that feeling if their employers didn’t enable them to get meaningful
insight about the value they provide to customers."
3. Encourage and reward thoughtful risk-taking. “People with high job satisfaction
also score high on the desire to try novel approaches, face challenges and perform
problem-solving both individually and in groups,” says Loehr. “They appear to have
an appetite for mission-driven change. They also rate themselves very high on
perseverance.”
4. Encourage positive workplace relations. “People who are highly satisfied in their
jobs report good feelings about their bosses, peers and coworkers,” says Loehr.
“Their feelings of opportunity are elevated, and they perceive a low hassle-factor.”
5. Encourage meaningful rest breaks and light diversion. “High job satisfaction
correlates strongly with the feeling of having fun at work,” says Dr. Loehr. He adds:
“This is consistent with our thirty years of research on world-class athletes. Top
Page 17
Impact of Job Satisfaction levels on Employee Retention
performers in every field know how to enhance performance through rest and
recovery.”
A work environment that constantly raises an employee’s self esteem ,above that
he/she experiences anywhere else in their life ,will be where he/she most desires to
spend their time and yields very high employee satisfaction with their job and costs
next to nothing.
Principle: People do more of what they enjoy and less of what they don’t enjoy.
Consequence: People who enjoy working are more productive.
Job satisfaction can be defined as a person’s emotional response to aspect of work
(such as pay, supervision and benefits) or to the work itself.
Page 18
Impact of Job Satisfaction levels on Employee Retention
CHAPTER: II REVIEW OF LITERATURE & RESEARCH DESIGN
STATEMENT OF THE PROBLEM
Management needs information on job satisfaction of the employees in order to
make decisions both in preventing and solving employee problem. Effective
behavioral management that continuously works to build a supportive human climate
in an organization, commitment are of major interest to the fields of Organizational
behavior and the practice of human Resource management.
Organizational culture is a relatively enduring quality of the internal environment that
is experienced by the members; employee behavior can be described in terms of
values of the Organization. It is important for an organization to obtain employees’
opinion on the job of the Organization and find out whether the employees are
satisfied because it greatly influences the productivity and reduces the attrition rate
of the organization.
Hence the project work focuses on the attitude of employees in IT sectors, Banks,
Insurance & FMCGs companies towards their jobs and way to use their information
effectively to monitor and improve job satisfaction of the employees and to retain
them.
NEED AND IMPORTANCE OF THE STUDY
Job satisfaction of employees is an important aspect in the functioning and growth of
any organization. It helps to identify the dissatisfaction level of the employees. So the
employees’ satisfaction can be attained as a result the employees will be retained in
the organization. Retaining the knowledge pool and at the same time ensuring cost
saving is really what the Industry is looking at.
Since job satisfaction plays a major role in any organization, different aspects are to
be studied and analyzed, so that a clear picture emerges. Further based on the
results and analysis recommendations can be given.
Page 19
Impact of Job Satisfaction levels on Employee Retention
Turnover among employees is costly and is related to Job satisfaction, therefore
learning more about the requirements among employees of an organization may
assist organizations in enhancing job satisfaction for the employees.
For the companies, the employee turnover is not only in terms of the cost involved in
the hiring and training of the individuals but also the opportunity lost and cost.
Retaining the knowledge pool and at the same time ensuring cost saving is really
what the industry is looking at. The Human Resource of any company is responsible
for company’s success. So satisfying and retaining them is the utmost important
factor for the Company.
In this view, this dissertation has been aimed at studying satisfaction levels of the
employees at IT sector, Insurance, Banks & FMCGs and hence to formulate
retention strategies for the employees in the organization.
REVIEW OF A FEW PREVIOUS STUDIES
Zytowski described job satisfaction as being “proportionate to the degree that the
elements of the job satisfy the particular need which the person feels most strongly.”
The Harvard business review reports that a 5% increase in retention results in a
10% decrease in cost and productivity increases ranging from 25% to 65%.Many
companies and organizations feel compensation is the dominate factor in employee
satisfaction. Consequently, employers attempt to buy employee satisfaction with
increased pay and benefits.
“The people who score in the top 10 percent of job satisfaction report they are also
taking care of themselves in the mental, emotional, spiritual and physical realms,”
says Dr. Jim Loehr, CEO of the Human Performance Institute in
Orlando.“Furthermore, people who report the highest job satisfaction are highly self-
confident individuals,” adds Loehr, who notes an 85% correlation between high job
satisfaction and self-confidence. “They are not only satisfied with their jobs; they also
feel competent in work and life. These two are mutually reinforcing.”
According to Vroom (1967), job satisfaction is the reaction of the workers against the
role they play in their work.
Page 20
Impact of Job Satisfaction levels on Employee Retention
Similarly, Blum and Naylor (1968) define job satisfaction as a general attitude of the
workers constituted by their approach towards the wages, working conditions,
control, promotion related with the job, social relations in the work, recognition of
talent and some similar variables, personal characteristics, and group relations apart
from the work life.
Age is one of the factors affecting job satisfaction. Studies conducted in five different
countries prove that the elder workers are more satisfied (Davis 1988). Kose (1985)
has also found a meaningful relation between the age and job satisfaction.
Wichita Eagle, 10/21/2006: In a world of high turnover rates costing employers
hundreds of thousands of dollars, one Wichita-based health care organization may
have a tool to help combat the problem. Officials at Via Christi Senior Services are
lauding a simple but effective employee screening computer program for reducing
employee turnover at one facility by 35 percent and saving the organization nearly a
quarter-million dollars this year. "The only thing we did different was adding this
screening tool," said John Buselt, who directs Via Christi Health System's absence
management programs. Buselt researched a number of solutions to the employee
retention problem before deciding to tackle it pre-employment.
Insufficient education, inability to select qualified workers for the job, lack of
communications, lack of job definitions, all affect job satisfaction negatively (Oncir
1990).
The effects of the motivator and hygiene factors on the job satisfaction do not vary
according to sex (Bilgin 1986).
Demirel (1989) has conducted a survey which included librarians working at 28
university libraries in Turkey. As a result, she stated that independence, use of
talents, physical working conditions, relations with the colleagues, recognition by the
work conducted, acquiring respect and social security have influence upon the job
satisfaction of librarians.
Job Satisfaction of Recent Graduates in Financial Services by Sharon A.
DeVaney and Zhan (Sandy) Chen Purdue University: In a survey on job
satisfaction among recent college graduates in financial planning, respondents were
asked to rank such factors as realization of expectations, company support, attitude,
Page 21
Impact of Job Satisfaction levels on Employee Retention
relationships with coworkers, and pay; the results, which indicate that these workers
are reasonably satisfied with their jobs, support a "bottom-up" theory in which
individuals sum up the positive and negative factors related to their jobs and decide
how satisfied they are on that basis.
California Univ Irvine Graduate School of Administration
A study is reported of the variations in organizational commitment and job
satisfaction, as related to subsequent turnover in a sample of recently-employed
psychiatric technician trainees. A longitudinal study was made across a 10 1/2 month
period, with attitude measures collected at four points in time. For this sample, job
satisfaction measures appeared better able to differentiate future stayers from
leavers in the earliest phase of the study. With the passage of time, organizational
commitment measures proved to be a better predictor of turnover, and job
satisfaction failed to predict turnover.
OBJECTIVE OF THE STUDY
1. To measure the impact of Job Satisfaction levels on employee retention.
2. To find out whether jobs are interesting and challenging for private company’s
employees.
3. To analyze the nature of work environment in the organization.
4. To find whether employees are satisfied by the co operation they receive from
their co-workers.
5. To obtain employees opinion on Organizational culture and satisfaction level of
employees.
6. To find whether the employees are satisfied with the advancement and growth in
the Organization.
7. To formulate retention strategies for the Organization.
Page 22
Impact of Job Satisfaction levels on Employee Retention
OPERATIONAL DEFINITION OF CONCEPTS
Job satisfaction is in regard to one's feelings or state-of-mind regarding the nature
of their work. Job satisfaction can be influenced by a variety of factors, e.g., the
quality of one's relationship with their supervisor, the quality of the physical
environment in which they work, degree of fulfillment in their work, etc.
(To my knowledge, there is no strong acceptance among researchers, consultants,
etc., that increased job satisfaction produces improve job performance -- in fact,
improved job satisfaction can sometimes decrease job performance. For example,
you could let sometime sit around all day and do nothing. That may make them more
satisfied with their "work" in the short run, but their performance certainly didn't
improve.)
Retention of employees is the process of holding employees from getting them lost
from the organization. Successful organizations realize employee retention and
talent management are integral to sustaining their leadership and growth in the
marketplace. Becoming an Employer of Choice by retaining high-caliber employees
in today's labor market should be the highest priority.
HYPOTHESES
Ho: Job Satisfaction levels have impact on employee retention.
Ha: Job Satisfaction levels do not have impact on employee retention.
SCOPE OF THE STUDY
As job satisfaction plays a major role in enhancing productivity, the study was
conducted to find out the degree to which they are satisfied with respect to various
factors like work, pay, promotional opportunities, leadership and co-operation from
workers which were collected from the critical complements of employees’ job
satisfaction.
The study was restricted IT sector, Insurance, Banks & FMCGs.
Page 23
Impact of Job Satisfaction levels on Employee Retention
METHODOLOGY
INTRODUCTION
Research is a systematic inquiry whose objective is to provide information to solve
managerial problems. Business research courses recognize that students preparing
to manage business, not for profit and public organization in all functional areas need
training in a disciplined process for conducting an inquiry of management dilemma,
the probable or opportunity that requires a management decision. Three factors
stimulating an interest in scientific approaches to decision making are:
The managers increased need for more and better information.
The availability of improved techniques and tools to meet this need.
The resulting information overloaded if discipline is not employed in the
process.
The type of research that is done is a Descriptive study, where data is collected from
employees through a structured questionnaire. The data is used to draw inference
and conclusion about the employee satisfaction.
In addition to questionnaire, few of the employees are interviewed in order to gain
more insight into the area of study.
TYPE OF RESEARCH
The research is a Descriptive Study, wherein the primary data has been collected
from the employees through a structured questionnaire. The questions were close
ended questions having options in it.
Page 24
Impact of Job Satisfaction levels on Employee Retention
SAMPLE DESIGN
SAMPLING TECHNIQUE
Stratified random sampling is used for the study. This method is useful when the
population consists of a number of heterogeneous subpopulation as a whole. Thus
population is divided into these differing sub population called strata. A simple
random sample, called a sub sample is drawn from each stratum or group.
Executives and Unit managers/ Team Leaders of various work teams are randomly
selected to fill the questionnaire. This gives a good sampling result as different team
will contain different types of person.
SAMPLE SIZE
The IT sector, Insurance, Banking & FMCGs has been chosen for survey and
information is collected from the Sample. As per the requirement the Sample size
considered for survey is to meet 60 respondents.
SAMPLE DESCRIPTION
The respondent who is surveyed using the questionnaire approach includes
Financial Advisors, Team leaders, Unit Managers, Sales Executives, Business
Analysts, Technical Support Executives from various teams of the companies.
My expectation in studying the samples is of course, that to find about the sample
will be true of the population as a whole. The employees are selected from different
departments and all the required information is collected by questionnaire method
and the data collected is finally analyzed.
Page 25
Impact of Job Satisfaction levels on Employee Retention
SOURCES OF DATA
Selection of sources of information refers to the approach used to gather data. It
relies heavily on the topic to be studied.
There are two broad approaches:
Primary data collection
Secondary data collection
Primary data will be collected from the respondents who confirmed to a
predetermined criterion using questionnaire approach.
Secondary data can be available in books, journal articles, newspapers &
magazines, conference papers, reports, archives, electronic database, internet.
Data has been collected based on questionnaire method.
The questionnaire is considered the backbone of any quantitative research and
hence need to be designed, developed and tested thoroughly. The questionnaire
contains closed ended questions however the emphasis will be on closed ended
questions as getting the employee to think more in the questions is a difficult job.
Closed ended questions are those that provide the respondent a menu to choose
from various given option and are easy to evaluate. Questions will be developed for
finding out opinion of the respondents, accessing their cognition levels and their
experience.
The data required to be collected for the study is formed into appropriate questions,
grouped under different heads like personal data, expected requirements and actual
requirements.
Page 26
Impact of Job Satisfaction levels on Employee Retention
TOOLS AND TECHNIQUES FOR DATA COLLECTION
Questionnaire as is one of the powerful tools used to collect the required data for
study; it is prepared consciously asking specific questions for the employees to
answer.
The questions are well thought of after defining the problem and the motto of the
research. The other advantage of the questionnaire is it can be personally conveyed
or by friends or through mails also and get direct feedback, it can be updated as and
when required. It can be stored for any future analysis.
PLAN OF ANALYSIS
It is a generally accepted proposition that the longevity of an employee in a private
organization is influenced by the satisfaction of the employee in the organization.
The data collected through questionnaire for this purpose is tabulated suitably and
graphs and charts are used to analyze the data. Correlation is also used to analyze
the data.
OTHER SOFTWARE USED FOR DATA ANALYSIS
Microsoft Words, graphs and tables are used for analysis of the data. Graphs
represented are in the form of pie charts & bar diagrams.
Microsoft Excel is used for calculations of various data.
Page 27
Impact of Job Satisfaction levels on Employee Retention
LIMITATIONS
1. Limited scope in terms of area i.e. only Bangalore.
2. Analysis of data obtained is done on the assumption that the respondents gave
correct information.
3. It is conducted only on the employee satisfaction & their expectations assuming
that the responses of the employees are genuine.
4. Time barrier – time limit within which the study has to be completed is too short.
5. Respondents may not disclose the true information about the organization.
OVERVIEW OF CHAPTER SCHEME
1. Title page.
2. Student’s Declaration
3. Certificate signed by both Guide and Director
4. Acknowledgement
5. Executive summary
6. Table of contents
7. Chapter I – Introduction
8. Chapter II – Review of Literature & Research Design
9. Chapter III – Profile of the Research
10.Chapter IV – Analysis and Interpretation of Data
11.Chapter V – Summary of findings, Conclusion and Recommendations.
12.Bibliography
13.Annexure
Page 28
Impact of Job Satisfaction levels on Employee Retention
CHAPTER III: PROFILE OF THE RESEARCH
Profile of IT Industry:
Information Technology (IT) industry in India is one of the fastest growing industries.
Indian IT industry has built up valuable brand equity for itself in the global markets. IT
industry in India comprises of software industry and information technology enabled
services (ITES), which also includes business process outsourcing (BPO) industry.
India is considered as a pioneer in software development and a favorite destination
for IT-enabled services. The origin of IT industry in India can be traced to 1974,
when the mainframe manufacturer, Burroughs, asked its India sales agent, Tata
Consultancy Services (TCS), to export programmers for installing system software
for a U.S. client. The IT industry originated under unfavorable conditions. Local
markets were absent and government policy toward private enterprise was hostile.
The industry was begun by Bombay-based conglomerates which entered the
business by supplying programmers to global IT firms located overseas.
Today, Indian IT companies such as Tata Consultancy Services (TCS), Wipro,
Infosys and HCL are renowned in the global market for their IT prowess. Some of the
major factors which played a key role in India's emergence as key global IT player
are:
Indian Education System
The Indian education system places strong emphasis on mathematics and science,
resulting in a large number of science and engineering graduates. Mastery over
quantitative concepts coupled with English proficiency has resulted in a skill set that
has enabled India to reap the benefits of the current international demand for IT.
High Quality Human Resource
Indian programmers are known for their strong technical and analytical skills and
their willingness to accommodate clients. India also has one of the largest pools of
English-speaking professionals.
Page 29
Impact of Job Satisfaction levels on Employee Retention
Competitive Costs
The cost of software development and other services in India is very competitive as
compared to the West.
Infrastructure Scenario
Indian IT industry has also gained immensely from the availability of a robust
infrastructure (telecom, power and roads) in the country.
In the last few years Indian IT industry has seen tremendous growth. Destinations
such as Bangalore, Hyderabad and Gurgaon have evolved into global IT hubs.
Several IT parks have come up at Bangalore, Hyderabad, Chennai, Pune, Gurgaon
etc. These parks offer Silicon Valley type infrastructure. In the light of all the factors
that have added to the strength of Indian IT industry, it seems that Indian success
story is all set to continue.
Profile of Insurance Sector
Insurance sector in India is one of the booming sectors of the economy and is
growing at the rate of 15-20 per cent annum. Together with banking services, it
contributes to about 7 per cent to the country's GDP. Insurance sector in India was
liberalized in March 2000 with the passage of the Insurance Regulatory and
Development Authority (IRDA) Bill, lifting all entry restrictions for private players and
allowing foreign players to enter the market with some limits on direct foreign
ownership. There is a 26 percent equity cap for foreign partners in an insurance
company. There is a proposal to increase this limit to 49 percent. The opening up of
the insurance sector has led to rapid growth of the sector. Presently, there are 16 life
insurance companies and 15 non-life insurance companies in the market. The
potential for growth of insurance industry in India is immense as nearly 80 per cent of
Indian population is without life insurance cover while health insurance and non-life
insurance continues to be well below international standards.
Page 30
Impact of Job Satisfaction levels on Employee Retention
Profile of Banking Sector
The growth in the Indian Banking Industry has been more qualitative than
quantitative and it is expected to remain the same in the coming years. The Public
Sector Banks (PSBs), which are the base of the Banking sector in India account for
more than 78 per cent of the total banking industry assets. On the other hand the
Private Sector Banks are making tremendous progress. They are leaders in Internet
banking, mobile banking, phone banking, ATMs. As far as foreign banks are
concerned they are likely to succeed in the Indian Banking Industry.
In the Indian Banking Industry some of the Private Sector Banks operating are IDBI
Bank, ING Vyasa Bank, SBI Commercial and International Bank Ltd, Bank of
Rajasthan Ltd. and banks from the Public Sector include Punjab National bank,
Vijaya Bank, UCO Bank, Oriental Bank, Allahabad Bank among others. ANZ
Grindlays Bank, ABN-AMRO Bank, American Express Bank Ltd, Citibank are some
of the foreign banks operating in the Indian Banking Industry.
Profile of FMCG Sector
The Indian FMCG sector is an important contributor to the country’s GDP. The
FMCG sector is the fourth largest sector of Indian economy. The FMCG market is
estimated to treble from its current figure in the coming decade. Penetration levels as
well as per capita consumption in most product categories like jams, toothpaste, skin
care, hair wash etc in India is low indicating the untapped market potential. The
growing Indian population, particularly the middle class and the rural segments,
presents an opportunity to makers of branded products to convert consumers to
branded products. The Indian rural market with its vast size and demand base offers
a huge opportunity for investment. Rural India has a large consuming class with 41
per cent of India’s middle-class and 58 per cent of the total disposable income.
Page 31
Impact of Job Satisfaction levels on Employee Retention
One of the most salient career paradigm shifts has been the change from job
security to employability security. Today, the engagement and retention of high
potential talent is a competitive advantage to all organizations. Perceptions of stress
at work are quite high with several studies suggesting 40 % to 60% of all employees
rate their jobs as being stress or extremely stressful with impact on family balance
and health.
Some evidence of the changing career paradigms comes from a recent study by
Career Systems International in 2005. They surveyed over 7,500 employees in
diverse industries about retention factors—things available in organizations that
engendered commitment and a willingness to stay. The top five retention factors
included Exciting Work/Challenge (48.4%); Career growth/learning (42.6%);
Relationships/working with great people (41.8%); Fair pay (31.8%); and Supportive
management/great boss (25.1%). These findings suggest that engagement can be
enhanced in organizations that emphasize development, leadership effectiveness
and collaborative cultures.
Page 32
Impact of Job Satisfaction levels on Employee Retention
Attrition Rate:
The term 'attrition rate' can be defined as "A reduction in the number of employees
through retirement, resignation or death." It denotes the percentage change in the
labour force of an organization. High percentage of labour turnover is not desirable
for the organization because new workers are engaged in place of the workers who
left the organization.
Why do Employees Leave the Organization?
There are a number of reasons for employees leaving the organization. Well, the
most obvious reason for employees leaving any organization is higher pay. The
main problem here is that employees are moved from one location to another
location along with their family. But this problem is taken care of by a salary hike
which may be around 20%-35% per annum.
Another factor is work timings. In some organizations, work timings are such that
they are making employees leave the organization.
Another factor is career growth. In many organizations, only 20% of employees are
able to go to senior levels. This means that the remaining 80% of employees look for
other organization where they can get opportunities for growth.
One more reason for leaving the organization is higher education. These days, in
many organizations, employees are joining at very young age because of lucrative
salaries being offered. But with time, they apply for higher education and try to move
on to other organizations or sectors to occupy top management positions.
The percentage of women workers is also responsible for higher attrition rate.
These days, the percentage of women workers is around 30%. Generally, women
workers leave the organization after marriage to take up their house-hold duties,
irregular work hours. 80% of employee turnover can also be attributed to the
mistakes during hiring process (Harvard Business Review). Other factors
include accident making the worker permanently incapable of doing work, dislike
for the job or place, unsatisfactory work conditions leading to strained work
Page 33
Impact of Job Satisfaction levels on Employee Retention
relationships with the employer; lack of security of employment also contribute for
higher attrition rate.
Attrition Rates in Different Sectors in India During 2007
The attrition rates in different sectors for the year ended 2007 are shown in the
following table: -
Sector Attrition Rate FMCG 17 Manufacturing 20 Capital Goods 23 Construction 25 Non Voice BPO 25 IT – ITES 27 Telecom 30 Pharmaceuticals 32 Bio Technology 35 Services 40 Financial 44 Aviation 46 Retail 50 Voice - Based BPO 50
Source: Times of New York
From the above table, we can deduce that for the year ended 2007; the attrition rate
in some sectors is grim. It is 50% in Retail Sector and Voice-based BPOs. On an
average, the attrition rate in Indian economy is around 20% where as global average
is around 24%.
Attrition Rate is good for the organization as long as the rate is at normal level. This
will help the organization to get new blood into the organization and for the
organization to develop. But it becomes a problem when the attrition rate is
abnormal. Therefore, HR Department has the most crucial role to play in any
organization. At the time of conducting interviews, the HR personnel try to bring right
candidate to the right job. Similar is true even when the attrition rate is abnormal, so
they have a very crucial role to play.
Following are some of the tips to reduce attrition rate: -
Page 34
Impact of Job Satisfaction levels on Employee Retention
Hiring individuals who are truly fit to succeed in the position for hire will
dramatically increase the chances of that employee being satisfied with his or
her work, and remaining with the company for an extended period of time.
Employees should not only be selected on the basis of communication skills
and educational qualifications.
Communication of employee's roles, job description and the responsibilities
within the organization, new policies will help to retain employees.
Participative Decision Making - It is incredibly important to include
employees in the decision making process, especially when decisions are
related to employees. This can help to generate new ideas and perspectives
that top management might never have thought of.
Sharing of Knowledge with Others - Allow the members to share their
knowledge with others. This helps in retention of information. This also lets a
team member know that he is a valuable member of the organization.
Similarly, facilitating knowledge sharing through an employee mentoring
program can be equally beneficial.
Shorten the Feedback Loop - This helps the employees to know the
feedback to their work within a short period. This also helps to keep
performance levels high and reinforce positive behavior among employees.
Pay Package - Any employee wants to be appropriately paid and fairly for the
work he or she does. For this, conduct a research to find out the pay package
in other similar type of organizations at regional as well as at national levels.
Balance Work & Personal Life - No doubt family is exceptionally important
to employees. When work begins to put pressure on one family, no pay
package will keep an employee in the organization. Therefore, there should
be a balance between work and personal life. Small gestures like allowing an
employee to take an extended lunch once a week to watch his son's cricket
game will result in loyalty and helps to retain the employee.
Organizational Culture - Try to select the candidates who believe in the
organization culture and adopt with ease to organization culture.
Exit Interview with the employees who are leaving the organization will help
the organization to find out the reasons why the employees are leaving the
organization. This will also help to find out any drawbacks in the organization.
Page 35
Impact of Job Satisfaction levels on Employee Retention
Motivational Training - It is sure that motivational training helps to retain the
employees. One of the crucial aspects to motivate employees is to ensure
that they have ample growth opportunities which can be provided through
training.
Multi-Tasking - One of the ways to retain the employees in the organization
is try to get people with different qualities like smart, adaptable, and capable
of multi-tasking.
Referrals - Another technique is to try to get the employees hired through
referrals. This makes them stick with the organization.
No Favoritism - One of the surest ways to create animosity and resentment
in an organization is to allow favoritism and preferential treatment towards an
employee. Be sure to treat all employees equally and avoid favoritism at all
costs.
How to Keep Good Employees in a Bad Economy?
As we make our way through the challenges of the global economic crisis, high-
impact performers are in demand i.e. the indispensible workers who are willing to do
what it takes to help the company succeed even in the most difficult of times. Those
who pick up the slack when the organization is forced to cut back; those whose ideas
save time, money, and effort; those with a positive outlook who help keep the
organization moving forward.
How to retain these people? The answer is leaders must manage their human assets
(i.e., employees) and they must do so with the same vigor that they devote to
financial assets. In tough economic times, this may seem difficult; however, it is
critical for the success of the organization.
Here are some steps that organizations can take that will help them keep today's
high-impact performers and tomorrow's great leaders:
Page 36
Impact of Job Satisfaction levels on Employee Retention
1. Show Respect: This may seem rote, but genuinely treating employees with
kindness, respect, and dignity will elicit the continued loyalty of employees to both
the leader and the organization. It is possible to lead people through fear and
intimidation; however, the odds of retaining and developing people using this style
are slim.
2. Focus on a Thriving Environment: Creating an environment in which high-
impact performers want to stay and will put their all into an organization takes
more than a gimmick or enrollment in the fad-of-the-month leadership
development program. It takes an environment where people are learning, getting
training, and developing their skills where through inquiry and dialogue, the leader
creates an environment that allows each individual to thrive.
3. Offer On-Going Training: High on the list for leaders who want to retain high-
impact performers is training and on-going education, both of which ensure that
people can 1) do their jobs properly, and 2) can improve on existing systems.
Cross training — giving people the opportunity to experience and train in different
aspects of the company — is a great way to cross-fertilize between departments
and across regions. This is a great competitive advantage when organizations are
required to cut back on manpower. Cross-trained employees are equipped to
handle different functions in the organization far more easily than those confined in
silos.
4. Provide Coaching: By working one-on-one with employees in a coaching
relationship, leaders can discover and tap the talents of individuals and direct their
development, as well as align their behaviors and skills, thus becoming active as
agents of change, enhancing the success of the organization.
5. Give Feedback: More than an annual review, leaders may give employees
assistance in specific areas such as developing networks, handling work/life
balance, and attaining job and skills training. Providing feedback is more than an
annual or semi-annual performance measure. It is a continual process which
comes in the form of mentoring relationships, support groups, and action groups.
6. Money and Decision-Making: Compensation which is an obvious employee
retainer, but it's not enough. In addition to compensation, people need to be
involved in decision-making. The leader who asks people for their input on how the
Page 37
Impact of Job Satisfaction levels on Employee Retention
corporation can increase effectiveness is the leader who achieves buy-in from his
or her employees. Not only does this help retain key talent, it also is a great way to
generate ideas for organizational improvements.
Developing people is a strategic process that adds value to both the employees and
the bottom line of the organization. Highly committed, highly competent people
create financial rewards for the organization; organizations that develop their people
and provide opportunities for growth are sought-after by high-impact performers.
Great leaders know this simple formula. They understand it and strive to create an
environment that supports it. And the result is success.
In Asia, organizations faced an overall attrition rate of 16% in 2005. Attrition rate was
14% in 2004 and 10% in 2003. According to Hewitt’s Attrition and Retention Study
Asia Pacific 2006, the three reasons for this growing attrition rate is compensation
unfairness; employees left the organization because they got offers from other
organizations offering better pay packages secondly less growth opportunities and
third role stagnation.
Page 38
Impact of Job Satisfaction levels on Employee Retention
Attrition rates of Wipro, TCS, Satyam and Infosys
Inspite of being IT giants, these 4 companies are facing high attrition rates. They are
facing problems in retaining their employees irrespective of the fact that they are
providing an attractive compensation packages to their employees. TCS, Infosys and
Wipro faced high attrition rate as compared to Satyam.
Wipro:
The attrition rate of Wipro is 16.2% during the last quarter of 2006-07. On annual
basis, the attrition rate of Wipro BPO was 48 %. The main reasons being told are the
odd working hours and the higher studies. Wipro’s attrition rate is the highest in the
industry.
Satyam: Attrition rate for Satyam for the period January-March 2007 was 15.7%. It
has declined to 14.9%.
Page 39
Impact of Job Satisfaction levels on Employee Retention
Infosys: Attrition rate for Infosys for the period April-June 2006 was 11.9%. But now
it has increased to be 13.7%, same as in the last quarter.
TCS: The attrition rate for TCS is 11.5 %, up from 10.6% last year.
Page 40
Impact of Job Satisfaction levels on Employee Retention
These firms collectively hired more than 25,000 employees in the April-June period.
The total headcount for these 4 organizations became 2, 85,357.
Employers Key Drivers 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
Page 41
Impact of Job Satisfaction levels on Employee Retention
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 and development programs
Structured career planning process
Global career opportunities
Wipro Company’s brand as an employer
Early opportunities for growth
High degree of autonomy
Page 42
Impact of Job Satisfaction levels on Employee Retention
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
Employee Benefits Provided By Majority of the BPO Companies
A part from the legal and mandatory benefits such as provident-fund and gratuity,
below is a list of other benefits BPO professionals are entitled to the following:
Page 43
Impact of Job Satisfaction levels on Employee Retention
Group Medi-claim Insurance Scheme: This insurance scheme is to provide
adequate insurance coverage of employees for expenses related to
hospitalization due to illness, disease or injury or pregnancy in case of female
employees or spouse of male employees. All employees and their dependent
family members are eligible. Dependent family members include spouse, non-
earning parents and children above three months.
Personal Accident Insurance Scheme: This scheme is to provide adequate
insurance coverage for Hospitalization expenses arising out of injuries
sustained in an accident. This covers total / partial disablement / death due to
accident and due to accidents.
Subsidized Food and Transportation: The organizations provide
transportation facility to all the employees from home till office at subsidized
rates. The lunch provided is also subsidized.
Company Leased Accommodation: Some of the companies provide shared
accommodation for all the out station employees, in fact some of the BPO
companies also undertakes to pay electricity/water bills as well as the Society
charges for the shared accommodation. The purpose is to provide to the
employees to lead a more comfortable work life balance.
Recreation, Cafeteria, ATM and Concierge facilities: The recreation
facilities include pool tables, chess tables and coffee bars. Companies also
have well equipped gyms, personal trainers and showers at facilities.
Corporate Credit Card: The main purpose of the corporate credit card is
enable the timely and efficient payment of official expenses which the
employees undertake for purposes such as travel related expenses like Hotel
bills, Air tickets etc.
Cellular Phone / Laptop: Cellular phone and / or Laptop are provided to the
employees on the basis of business need. The employee is responsible for
the maintenance and safeguarding of the asset.
Personal Health Care (Regular medical check-ups): Some of the BPO'S
provides the facility for extensive health check-up. For employees with above
40 years of age, the medical check-up can be done once a year.
Page 44
Impact of Job Satisfaction levels on Employee Retention
Loans: Many BPO companies provide loan facility on three different
occasions: Employees are provided with financial assistance in case of a
medical emergency. Employees are also provided with financial assistance at
the time of their wedding. And, the new recruits are provided with interest free
loans to assist them in their initial settlement at the work location.
Educational Benefits: Many BPO companies have this policy to develop the
personality and knowledge level of their employees and hence reimburse the
expenses incurred towards tuition fees, examination fees, and purchase of
books subject, for pursuing MBA, and/or other management qualification at
India's top most Business Schools.
Performance based incentives: In many BPO companies they have plans
for, performance based incentive scheme. The parameters for calculation are
process performance i.e. speed, accuracy and productivity of each process.
The Pay for Performance can be as much as 22% of the salary.
Flexi-time: The main objective of the flextime policy is to provide opportunity
to employees to work with flexible work schedules and set out conditions for
availing this provision. Flexible work schedules are initiated by employees and
approved by management to meet business commitments while supporting
employee personal life needs .The factors on which Flexi time is allowed to an
employee include Child or Parent care, Health situation, Maternity, Formal
education program.
Flexible Salary Benefits: Its main objective is to provide flexibility to the
employees to plan a tax-effective compensation structure by balancing the
monthly net income, yearly benefits and income tax payable. It is applicable of
all the employees of the organization. The Salary consists of Basic, DA and
Conveyance Allowance. The Flexible Benefit Plan consists of: House Rent
Allowance, Leave Travel Assistance, Medical Reimbursement and Special
Allowance.
Regular Get together and other cultural programs: The companies
organizes cultural program as and when possible but most of the times, once
in a quarter, in which all the employees are given an opportunity to display
their talents in dramatics, singing, acting, dancing etc. Apart from that the
organizations also conduct various sports programs such as Cricket, football,
Page 45
Impact of Job Satisfaction levels on Employee Retention
etc and regularly play matches with the teams of other organizations and
colleges.
Wedding Day Gift: Employee is given a gift voucher of Rs. 2000/- to Rs.
7000/- based on their level in the organization.
Employee Referral Scheme: In several companies employee referral
scheme is implemented to encourage employees to refer friends and relatives
for employment in the organization.
CHAPTER IV: ANALYSIS & INTERPRETATION OF DATA
INTRODUCTION:
Analysis of the acquired data is an important function for drawing certain conclusion.
Page 46
Impact of Job Satisfaction levels on Employee Retention
Data analysis requires the use of statistical methods like mean, median, mode etc.
along with graphical methods like line graphs, bar chart and pie chart etc.
For representing data the tabular form of presentation and pie chart, bar diagram,
conical diagram for pictorial presentation is used. To analyze some of the
relationship correlation has also been used in this study.
With the objective of finding out the level of job satisfaction in IT sector, Banking,
Insurance, FMCGs questionnaire consisting of questions that gave direct information
about the different components or determinants of job satisfaction they are as
follows:
Recognition
Work itself
Responsibility and authority
Advancement
Growth
Job security and organizational commitment
Status
Organizational position.
Thus with all these analysis we will be able to estimate our findings and will be able
to do the analysis appropriately. The analysis of the data will throw light on few key
areas in the organization, which will fall short of the expectations of the employees.
Table No 1:
Table showing number of months/years worked by the respondents’
employees in the organization
Serial no Response No. of respondents Percentage %
Page 47
Impact of Job Satisfaction levels on Employee Retention
1 Less than 3 months 3 52 3 months to 1 year 5 83 1 year to 3 years 9 154 4 years to 6 years 16 265 7 years to 10 years 17 286 More than 10 years 10 17
Total 60 100
Chart 1
Less than 3 months
3 months - 1year
1 - 3+ years 4 - 6+ years 7 - 10+ years 10+ years
0
2
4
6
8
10
12
14
16
18
35
9
1617
10
INTERPRETATION & INFERENCE
This shows the number of months/years worked by the respondents’ employees in
the organization. In this we do find 5% 0f the employees have been working for less
than 3 months, 8% employees have been working for 3 months to 1 year, 15%
employees have been working for more than 1 year to 3 years, 26% of the
employees have been working for more than 4 years to 6 years, 28% employees
working for more than 7 to 10 years & 17% employees working more than 10 years.
This shows maximum employees have preferred to stay in their present job for
personal & career advancement.
Table No 2:
Table showing commitment of employees to a long-term career
Page 48
Serial no Response No. of respondents Percentage %1 Fully committed 12 202 Somewhat committed 25 423 Not sure how long
going to stay20 33
4 Prefer not to remain 3 5Total 60 100
Impact of Job Satisfaction levels on Employee Retention
Fully committed20%
Somewhat committed42%
Not sure how long going to stay
33%
Prefer not to remain
5%
Chart 2
INTERPRETATION & INFERENCE
The above stated table reveals that 20% respondents are fully committed to their
long term carrier in the organization. However 42% respondents are somewhat
committed, 33% of the respondents are not sure how long going to stay and 5%
employees prefer not to stay.
This shows that 62% employees are committed to the job, they think of building up
long term career in the job. When one is satisfied then only commitment comes for
the job. Thus retention of such employees is not difficult.
Table No 3:
Table showing employee does know about their job.
Serial no Response No. of respondents Percentage %1 Excellent 18 302 Good 27 453 Average 15 254 Poor 0 05 Very Poor 0 0
Total 60 100
Page 49
Impact of Job Satisfaction levels on Employee Retention
Excellent
Good
Average
Poor
Very Poor
0 5 10 15 20 25 30
18
27
15
0
0
Chart 3
INTERPRETATION & INFERENCE
The above stated table reveals that 30% respondents feel that they know their job
excellently. However 45% respondents say ‘good’ about knowing their job, 25% of
the respondents say ‘average’ about knowing their job and no people say poor or
very poor about knowing their job.
This shows that maximum employees know about what to do in the job. So the job
knowledge is given properly to the employees. So we can say that employees are
well informed about the job description and there is no role ambiguity. Employees
are satisfied with knowledge of the job.
Table No 4:
Table showing employee’s ability to have an impact on the job
Serial no Response No. of respondents Percentage %1 Excellent 17 282 Good 28 473 Average 13 224 Poor 2 35 Very Poor 0 0
Total 60 100
Page 50
Impact of Job Satisfaction levels on Employee Retention
Chart 4
Excellent Good Average Poor Very Poor
0
5
10
15
20
25
30
17
28
13
20
INTERPRETATION & INFERENCE
The above stated table reveals that 28% respondents say that their ability to have an
impact on the job is excellent. However 47% respondents say that their ability to
have an impact on the job is good, 22% of the respondents say ‘average’, 3%
respondents say it as poor and no respondents say it as very poor.
This shows that maximum employees have the ability to have an impact on the job.
Though there are some respondents who say that they don’t have an impact on the
job, still the majority of people have impact which again signifies employee’s
satisfaction with the job. When employees feel they have an impact they get
motivated and this increases satisfaction of the employees.
Table No 5:
Table showing employees receive supervision and feedback for the job
Serial no Response No. of respondents Percentage %1 Excellent 15 252 Good 22 373 Average 16 274 Poor 5 85 Very Poor 2 3
Total 60 100
Page 51
Impact of Job Satisfaction levels on Employee Retention
Chart 5
Excellent Good Average Poor Very Poor
0
5
10
15
20
25
15
22
16
5
2
INTERPRETATION & INFERENCE
The above stated table reveals that 25% respondents rated employees receive
supervision and feedback as excellent. However 37% respondents rated it as good,
almost 27% as average, 8% respondents say it as poor and 3% respondents say it
as very poor.
This shows employees receive supervision and feedback which help them in their
career development. So they feel the job gives them enough identification where
they need to develop. It is seen 62% employees gives positive implications about
their receiving supervision and feedback which help them to develop themselves.
Table No 6
Table showing employees on the job training
Serial no Response No. of respondents Percentage %1 Excellent 25 422 Good 16 273 Average 14 234 Poor 5 85 Very Poor 0 0
Total 60 100
Page 52
Impact of Job Satisfaction levels on Employee Retention
Excellent
Good
Average
Poor
Very Poor
0 5 10 15 20 25 30
25
16
14
5
0
Chart 6
INTERPRETATION & INFERENCE
This table and graph shows that employees are given enough opportunities for their
career development. As from the survey we do find that 42% of the employees rate
that on the job training is provided excellent, 27% rate it as good, 23% rate it as
average 8% say it as poor.
So from the above table we do find there are enough opportunities given to the
employees for their development. So employees feel that the job provides them with
enough career development and every employee wants a job where he/she can
develop his/her career, since this job provide them with that this signifies their
satisfaction with the job. We have also seen in the other studies that employees’
growth motivates them. Once employees find some factors which satisfies them with
the job they can be retained easily. Thus if companies continues with these policy of
giving the employees opportunities to develop their career, then they will be able to
retain the employees easily.
Table No 7
Table showing employees opportunities for personal development
Serial no Response No. of respondents Percentage %1 Excellent 15 252 Good 25 423 Average 11 184 Poor 9 155 Very Poor 0 0
Page 53
Impact of Job Satisfaction levels on Employee Retention
Total 60 100
Chart 7
Excellent
Good
Average
Poor
05
1015
2025
15
25
11
9
INTERPRETATION & INFERENCE
From the survey it is found that there are opportunities for personal development.
25% of the employees rate it as excellent, almost 42% rate it as good, 18% rate it as
average and 15% employees rate it as poor.
So from the above table we do find there are enough opportunities given to the
employees for their development. So employees feel that the job provides them with
enough career development and every employee wants a job where he/she can
develop his/her career, since this job provide them with that this signifies their
satisfaction with the job. We have also seen in the other studies that employees’
growth motivates them. Once employees find some factors which satisfies them with
the job they can be retained easily.
Thus if companies continues with these policy of giving the employees opportunities
to develop their career, then they will be able to retain the employees easily.
Table No 8
Table showing employee’s teamwork within the department
Serial no Response No. of respondents Percentage %1 Excellent 30 502 Good 19 323 Average 11 184 Poor 0 0
Page 54
Impact of Job Satisfaction levels on Employee Retention
5 Very Poor 0 0Total 60 100
Chart 8
Excellent
Good
Average
Poor
Very Poor
0 5 10 15 20 25 30
30
19
11
0
0
INTERPRETATION & INFERENCE
This table and graph shows that employees rating team work within the department,
50% rate it as excellent, 32% rate it as good, 18% employees rate it as average and
no employees rate it as poor.
So these signify that there is no rivalry among the employees within the
departments. They work in team as a result there is no problem of adjustments
within the departments. Thus there is unity and understanding among the members
in the departments. So working in such environment is satisfying the employees.
Table No 9
Table showing employees would refer a friend to the working place to work
Serial no Response No. of respondents Percentage %1 Very Likely 15 252 Likely 24 403 Not Sure 12 204 Unlikely 6 10
Page 55
Impact of Job Satisfaction levels on Employee Retention
5 Very Unlikely 3 5Total 60 100
Very Likely25%
Likely40%
Not sure20%
Unlikely10%
Very Unlikely5%
Chart 9
INTERPRETATION & INFERENCE
This table shows that 25% of the respondents are very likely to refer their friend to
work in the companies. They are so much satisfied with the job and the environment
that they would refer their friend. 40% respondents are likely to refer their friend,
20% of the respondents are not sure and these respondents sometimes might feel
their job satisfying sometimes dissatisfying so they are not sure. Whereas 10%
respondents are unlikely to refer and 5% people would never refer their friends this
shows that they had bad experience with the job. Retaining these 15% respondents
will be difficult as they are highly dissatisfied with the job, but as whole 85%
respondents are satisfied and so retaining them will be easy.
Table No 10
Table showing employees are being cared by the Company
Serial no Response No. of respondents Percentage %1 Excellent 18 302 Good 19 323 Average 15 254 Poor 8 13
Page 56
Impact of Job Satisfaction levels on Employee Retention
5 Very Poor 0 0Total 60 100
Chart 10
Excellent
Good
Average
Poor
Very Poor
0 2 4 6 8 10 12 14 16 18 20
18
19
15
8
0
INTERPRETATION & INFERENCE
This table and the graph shows that 30% of the respondents employees rate that
they are being cared by the company top managers as excellent, 32% respondents
also rate them as good, 25% respondents rate as average and 13% rate them as
poor.
This shows that maximum of the employees feel that they are being cared by the
company. The place where employees are being cared will obviously like to work.
This caring nature of the company will help to retain the employees. Indeed
employees also feel satisfied with the job where they are being cared.
As we have seen that 62% of the employees said that they are satisfied with the job,
this is one of the factors which show why employees are satisfied with the job.
Table No 11
Table showing that the Company attracts high quality employees
Serial no Response No. of respondents Percentage %1 Excellent 12 202 Good 27 453 Average 16 274 Poor 5 8
Page 57
Impact of Job Satisfaction levels on Employee Retention
5 Very Poor 0 0Total 60 100
Excellent
Good
Average
Poor
Very Poor
12
27
16
5
0
Chart 11
INTERPRETATION & INFERENCE
This table shows that 20% of the employees rated that the company attracts high
quality employees as excellent, 45% respondents rated it as good, 27% respondents
rated it as average, and 8% respondents rated it as poor.
So maximum of the respondents employees feel that their company attracts high
quality employees, which make them feel proud that their colleagues are qualified
people. This satisfies them to work at the work place. Moreover we have also seen
before that 82% of the employees rated the teamwork within their departments as
positive as they feel proud to work in team with the qualified person.
Table No 12
Table showing that the Company retains high quality employees
Serial no Response No. of respondents Percentage %1 Excellent 10 172 Good 26 433 Average 19 32
Page 58
Impact of Job Satisfaction levels on Employee Retention
4 Poor 5 85 Very Poor 0 0
Total 60 100
Excellent
Good
Average
Poor
Very Poor
10
26
19
5
0
Chart 12
INTERPRETATION & INFERENCE
According to the survey 17% employees rated that the company retains high quality
employees,43% respondents rated it as good, 32% rated it as average and 8%
respondents rated it as poor.
This table and graph shows that maximum employees feel that their Company
retains high quality employees. Thus it is seen retention rate of quality employees
are higher in this company.
Table No 13
Table showing that in the Company teamwork across departments occurs
Serial no Response No. of respondents Percentage %1 Excellent 23 392 Good 16 273 Average 14 23
Page 59
Impact of Job Satisfaction levels on Employee Retention
4 Poor 2 35 Very Poor 5 8
Total 60 100
Excellent38%
Good27%
Average23%
Poor3%Very Poor
8%
Chart 13
INTERPRETATION & INFERENCE
This table shows that 39% of the employees rated that in the company teamwork
across departments as excellent, 27% respondents rated it as good, 23%
respondents rated it as average, 3% respondents rated it as poor and 8%
respondents rated it as very poor.
So this shows that across department’s teamwork is there which shows there is
understanding and unity across the department members. As a whole the job
environment is peaceful so the employees are satisfied with the job and the quality of
work life of the employees also improves.
Table No 14
Table showing that the Company value diversity in people
Serial no Response No. of respondents Percentage %1 Excellent 9 152 Good 26 433 Average 22 37
Page 60
Impact of Job Satisfaction levels on Employee Retention
4 Poor 1 25 Very Poor 2 3
Total 60 100
Excellent15%
Good43%
Average37%
Poor2%
Very Poor3%
Chart 14
INTERPRETATION & INFERENCE
This table shows that 15% of the employees rated that the company values diversity
as excellent, 43% respondents rated it as good, 37% respondents rated it as
average, 2% respondents rated it as poor and 3% rated it as very poor.
Thus here it is seen that maximum employees rated that the company value diversity
as ‘good’. This shows that the culture in the company is very co-operating. The
employees will definitely like to work in such company who value diversity in the
organization. Thus employee feels satisfied to work in such culture company.
Table No 15
Table showing that the employees feel that the Company provides quality
products and services
Serial no Response No. of respondents Percentage %1 Excellent 21 35
Page 61
Impact of Job Satisfaction levels on Employee Retention
2 Good 14 233 Average 11 184 Poor 9 155 Very Poor 5 9
Total 60 100
Excellent35%
Good23%
Average18%
Poor15%
Very Poor8%
Chart 15
INTERPRETATION & INFERENCE
The above stated table reveals that 35% respondent’s employees rated that the
company provides quality products and services as excellent. However 23%
respondents rated it as good, 18% as average, 15% respondents say it as poor and
9% respondents rate it as very poor.
These response shows that maximum employees feel proud to be associated with
such company who provide quality products and services in the form of insurance
services. Thus this is another factor which tells that the employees are satisfied by
their job in such a company which has quality services.
Table No 16
Table showing that the employees have the power to set up corporate
direction
Serial no Response No. of respondents Percentage %1 Very Satisfied 5 8
Page 62
Impact of Job Satisfaction levels on Employee Retention
2 Satisfied 16 273 Don’t know 7 124 Dissatisfied 27 455 Very dissatisfied 5 8
Total 60 100
Very Satisfied8%
Satisfied27%
Don't know12%
Dissatisfied45%
Very Dissatisfied8%
Chart 16
INTERPRETATION & INFERENCE
The above stated table reveals that 8% respondents rated employees have the
power to set up corporate direction, as very satisfied. However 27% respondents
rated it as satisfied, 12% don’t know, 45% respondents say it as dissatisfied and
8%respondents say it as very dissatisfied.
This shows that employees are not given empowerment in the company. As
maximum employees feel that they are dissatisfied as they are not given power to
set corporate directions.
Table No 17
Table showing that the employees feel that the company keeps them informed
Serial no Response No. of respondents Percentage %1 Very Satisfied 25 422 Satisfied 22 373 Don’t know 13 21
Page 63
Impact of Job Satisfaction levels on Employee Retention
4 Dissatisfied 0 05 Very dissatisfied 0 0
Total 60 100
Chart 17
Very Satisfied Satisfied Don't know Dissatisfied Very Dissatisfied
0
5
10
15
20
2525
22
13
0 0
INTERPRETATION & INFERENCE
The above stated table reveals that 42% respondents rated that the company keeps
them informed as Very satisfied. However 37% respondents rated it as Satisfied, 2%
don’t know, 0% respondents say it as Dissatisfied and no respondents say it as very
dissatisfied.
This shows that the company values the employees a lot. So the company provides
information to the employees. The employees are well informed about the job.
Table No 18
Table showing that the employees are addressed external issues facing by the
Company
Serial no Response No. of respondents Percentage %1 Very Satisfied 9 152 Satisfied 5 8
Page 64
Impact of Job Satisfaction levels on Employee Retention
3 Don’t know 13 224 Dissatisfied 27 455 Very dissatisfied 6 10
Total 60 100
Very Satisfied15%
Satisfied8%
Don't know22%
Dissatisfied45%
Very Dissatisfied10%
Chart 18
INTERPRETATION & INFERENCE
The above stated table reveals that 15% respondents rated, employees are
addressed external issues facing by the company as Very satisfied. However 8%
respondents rated it as satisfied, 22% as don’t know, 45% respondents say it as
dissatisfied and 10% respondents say it as very dissatisfied.
Here 77% of the respondents employees said that they are not addressed external
issues facing by the company, whereas 23% of the respondents said that as the
other way around. So employees feel dissatisfied in this issue of not addressing
external issues by the company.
Table No 19
Table showing that the employees are addressed internal issues facing by the
Company
Serial no Response No. of respondents Percentage %1 Very Satisfied 17 282 Satisfied 22 37
Page 65
Impact of Job Satisfaction levels on Employee Retention
3 Neutral 16 274 Dissatisfied 5 85 Very dissatisfied 0 0
Total 60 100
Chart 19
Very SatisfiedSatisfied
NeutralDissatisfied
Very Dissatisfied
0
5
10
15
20
25
17
22
16
5
0
INTERPRETATION & INFERENCE
The above stated table reveals that 28% respondents rated, employees are
addressed internal issues facing by the company as very satisfactory. However 37%
respondents rated it as satisfactory, 27% as neutral, 8% respondents say it as
dissatisfied and 0% respondents say it as very dissatisfied.
Here 8% of the respondents employees said that employees are not addressed
internal issues facing by the company, whereas 92% of the respondents said that as
the other way around. So employees feel that they are valued by the company by
addressing them internal issues of the company and feels satisfied.
Table No 20
Table showing that the leader serves as ethical role model
Serial no Response No. of respondents Percentage %1 Very Satisfied 9 15
Page 66
Impact of Job Satisfaction levels on Employee Retention
2 Satisfied 27 453 Don’t know 14 234 Dissatisfied 7 125 Very dissatisfied 3 5
Total 60 100
Very Satisfied15%
Satisfied45%
Neutral23%
Dissatisfied12%
Very Dissatis-fied5%
Chart 20
INTERPRETATION & INFERENCE
The above stated table reveals that 15% respondents rated, leaders serves as
ethical role model, as very satisfactory. However 45% respondents rated it as
satisfactory, 23% as neutral, 12% respondents say it as Dissatisfied and 5%
respondents say it as very dissatisfied.
This shows that employees feel satisfied as their leaders are ethical. So they feel
ethics are valued in the company. Every employee would like to work in such
company where the leaders are ideal or ethical role model for the subordinates. So
retaining the employees is easy for the company.
Table No 21
Table showing that the employees feel that their company is a leader in the
industry
Serial no Response No. of respondents Percentage %
Page 67
Impact of Job Satisfaction levels on Employee Retention
1 Excellent 21 352 Good 16 273 Average 12 204 Poor 9 155 Very Poor 2 3
Total 60 100
Excellent35%
Good27% Average
20%
Poor15%
Very Poor3%
Chart 21
INTERPRETATION & INFERENCE
The above stated table reveals that 35% respondents rated, that their company is
the leader in the industry, as excellent. However 27% respondents rated it as good,
20% as average, 15% respondents say it as poor and 3% respondents say it as very
poor.
This shows that 82% employees agree that their company is a leader in the industry.
They feel proud to work in such company which is the industry leader. This is
another factor for their satisfaction with their job as they work in a company which is
a leader company. So retaining employees on this ground is easy.
Table No 22
Table showing that the employees feel that their company is a strong
competitor in key growth areas
Serial no Response No. of respondents Percentage %
Page 68
Impact of Job Satisfaction levels on Employee Retention
1 Excellent 30 502 Good 19 323 Average 11 184 Poor 0 05 Very Poor 0 0
Total 60 100
Chart 22
Excellent Good Average Poor Very Poor
0
5
10
15
20
25
3030
19
11
0 0
INTERPRETATION & INFERENCE
The above stated table reveals that 50% respondents rated, that their company is a
strong competitor in key growth areas, as excellent. However 32% respondents
rated it as good, 18% as average, 0% respondents say it as poor and 0%
respondents say it as very poor.
Thus maximum employees feel that their company is a competitive company and
this gives them satisfaction that they work in such a competitive company.
Table No 23
Table showing that the employees feel that their company’s leadership has a
clear vision of the future
Page 69
Impact of Job Satisfaction levels on Employee Retention
Serial no Response No. of respondents Percentage %1 Excellent 33 552 Good 19 323 Average 8 134 Poor 0 05 Very Poor 0 0
Total 60 100
Chart 23
Excellent Good Average Poor Very Poor0
5
10
15
20
25
30
35 33
19
8
0 0
INTERPRETATION & INFERENCE
The above stated table reveals that 55% respondents rated, that their company’s
leadership has a clear vision of the future, as excellent. However 32% respondents
rated it as good, 13% as average, 0% respondents say it as poor and 0%
respondents say it as very poor.
This shows that employees feel that their company’s leadership has a clear vision of
the future. The company is future oriented and moves according to the future
direction. It gives the employees inspiration to work in such a company.
Table No 24
Table showing that the employees feel that their company’s leadership has
made changes which are positive for the company
Page 70
Impact of Job Satisfaction levels on Employee Retention
Serial no Response No. of respondents Percentage %1 Excellent 32 532 Good 17 283 Average 11 194 Poor 0 05 Very Poor 0 0
Total 60 100
Chart 24
Excellent Good Average Poor Very Poor0
5
10
15
20
25
30
35 32
17
11
0 0
INTERPRETATION & INFERENCE
The above stated table reveals that 53% respondents rated, that their company’s
leadership has made changes which are positive for the company, as excellent.
However 28% respondents rated it as good, 19% as average, 0% respondents say it
as poor and 0% respondents say it as very poor.
This shows that maximum employees feel that their company’s leadership has made
changes which are positive for the company. So the employees feel satisfied by
working in such company.
Table No 25
Table showing that the employees feel that their company’s leadership has
made changes which are positive for the employees
Page 71
Impact of Job Satisfaction levels on Employee Retention
Serial no Response No. of respondents Percentage %1 Excellent 24 402 Good 16 273 Average 11 184 Poor 7 125 Very Poor 2 3
Total 60 100
Chart 25
Excellent Good Average Poor Very Poor0
5
10
15
20
2524
16
11
7
2
INTERPRETATION & INFERENCE
The above stated table reveals that 40% respondents rated, that their company’s
leadership has made changes which are positive for the employees, as excellent.
However 27% respondents rated it as good, 18% as average, 12% respondents say
it as poor and 3% respondents say it as very poor.
This shows that 85% of the employees feel that their company’s leadership has
made changes which are positive for them. So they feel satisfied with their
company’s leadership as it gives positive name on the employees’ career. This
factor can also be used to retain the employees.
Table No 26
Table showing that the employees receive appropriate recognition for their
contribution
Page 72
Impact of Job Satisfaction levels on Employee Retention
Serial no Response No. of respondents Percentage %1 Excellent 16 272 Good 23 383 Average 10 174 Poor 4 75 Very Poor 7 11
Total 60 100
Chart 26
Excellent Good Average Poor Very Poor0
5
10
15
20
25
16
23
10
4
7
INTERPRETATION & INFERENCE
The above stated table reveals that 27% respondents rated, that the employees
receive appropriate recognition for their contribution, as excellent. However 38%
respondents rated it as good, 17% as average, 7% respondents say it as poor and
11% respondents say it as very poor.
This shows that maximum employees rated that they receive appropriate recognition
for their contribution. This makes them feel that their contribution are valued and
recognized by the company. This is another factor which shows that employees are
satisfied with their job, as by doing so company can retain their valuable employees
in the company.
Table No 27
Table showing that the employees work gives them a sense of personal
accomplishment
Page 73
Impact of Job Satisfaction levels on Employee Retention
Serial no Response No. of respondents Percentage %1 Excellent 19 322 Good 28 473 Average 13 214 Poor 0 05 Very Poor 0 0
Total 60 100
Chart 27
Excellent Good Average Poor Very Poor0
5
10
15
20
25
30
19
28
13
0 0
INTERPRETATION & INFERENCE
The above stated table reveals that 32% respondents rated, that their work gives
them a sense of personal accomplishment, as excellent. However 47% respondents
rated it as good, 21% as average, 0% respondents say it as poor and 0%
respondents say it as very poor.
This shows maximum employees feel that their work gives them a sense of personal
accomplishment. In this no respondents has rated it as poor or very poor. When the
employees feel that their job gives them personal accomplishment they feel satisfied.
This is another factor which shows why 62% of the employees said that they are
satisfied with their job.
Table No 28
Table showing that how satisfied employees are with their direct supervisor
Serial no Response No. of respondents Percentage %
Page 74
Impact of Job Satisfaction levels on Employee Retention
1 Excellent 17 292 Good 24 403 Average 11 184 Poor 5 85 Very Poor 3 5
Total 60 100
Chart 28
Excellent Good Average Poor Very Poor0
5
10
15
20
25
17
24
11
5
3
INTERPRETATION & INFERENCE
The above stated table reveals that 29% respondents rated, that they are satisfied
with their direct supervisor, as excellent. However 40% respondents rated it as good,
18% as average, 8% respondents say it as poor and 5% respondents say it as very
poor.
This shows 87% respondents employees said that they are satisfied with their direct
supervisor. So this is another factor which shows why employees are satisfied with
their job.
Table No 29
Table showing that how satisfied employees are with their overall job security
Serial no Response No. of respondents Percentage %
Page 75
Impact of Job Satisfaction levels on Employee Retention
1 Excellent 13 222 Good 27 453 Average 11 184 Poor 5 85 Very Poor 4 7
Total 60 100
Chart 29
Excellent Good Average Poor Very Poor0
5
10
15
20
25
30
13
27
11
54
INTERPRETATION & INFERENCE
The above stated table reveals that 22% respondents rated, that they are satisfied
with their overall job security, as excellent. However 45% respondents rated it as
good, 18% as average, 8% respondents say it as poor and 7% respondents say it as
very poor.
This shows that maximum employees are satisfied with their overall job security. So
when job security is there retention of employees becomes easier.
Table No 30
Table showing that how satisfied employees are with the company as a place
to work
Page 76
Impact of Job Satisfaction levels on Employee Retention
Serial no Response No. of respondents Percentage %1 Excellent 14 232 Good 25 423 Average 11 184 Poor 7 125 Very Poor 3 5
Total 60 100
Chart 30
Excellent Good Average Poor Very Poor0
5
10
15
20
25
14
25
11
7
3
INTERPRETATION & INFERENCE
The above stated table reveals that 23% respondents rated, that they are satisfied
with their company as a place to work, as excellent. However 42% respondents
rated it as good, 18% as average, 12% respondents say it as poor and 5%
respondents say it as very poor.
So here we do find maximum employees say that they are satisfied to work in the
company, which they consider as a good place to work. This is another factor of the
employees being satisfied by their job.
Table No 31
Table showing that how satisfied employees are with their job overall
Serial no Response No. of respondents Percentage %
Page 77
Impact of Job Satisfaction levels on Employee Retention
1 Excellent 21 352 Good 24 403 Average 10 174 Poor 5 85 Very Poor 0 0
Total 60 100
Chart 31
Excellent Good Average Poor Very Poor0
5
10
15
20
2521
24
10
5
0
INTERPRETATION & INFERENCE
This table and graph shows how much satisfied employees are with their job overall.
In this 35% employees have rated their overall job satisfaction as excellent, 40%
rated it as good, 17% rated as average 8% rated as poor, and no one has rated it as
very poor.
This shows that maximum employees consider their job as a satisfying job. So we
can say the companies provide a satisfactory job to the employees. That is why 75%
respondents rated it as excellent and good.
Table No 32
Table showing compared with a year ago, how employees would describe their
overall job satisfaction today
Page 78
Impact of Job Satisfaction levels on Employee Retention
Serial no Response No. of respondents Percentage %1 Much more satisfied 17 282 Somewhat more satisfied 22 373 Same level of satisfaction as
last year12 20
4 Somewhat less satisfied 7 125 Much less satisfied 2 3
Total 60 100
Much more satisfied28%
Somewhat more satisfied37%
Same level of sat-isfaction as last
year20%
Some what less satisfied12% Much less satis-
fied3%
Chart 32
INTERPRETATION & INFERENCE
This table and the graph shows that compared with a year ago, employees would
describe their overall job satisfaction as 28% say they are much more satisfied with
their job now, 37% respondents employee say that they are somewhat more
satisfied, 20% say that they feel same level of satisfaction as last year, 12%
respondents say that they are somewhat less satisfied and 3% says that they are
much less satisfied.
This as a whole shows that the employees in these companies are much more
satisfied with their jobs now compared with a year ago, So, the job environment and
the criteria provided by the company is good that’s why employees feel satisfied with
their job.
CHAPTER – V: SUMMARY OF FINDINGS, CONCLUSIONS &
RECOMMENDATIONS
OVERVIEW OF THE DISSERTATION
Page 79
Impact of Job Satisfaction levels on Employee Retention
The Dissertation ‘A study to measure the impact of job satisfaction levels on
employee retention’ has been carried out in IT sector, Banking, Insurance & FMCGs.
Job satisfaction is a person’s attitude or emotional response towards his/her place
of work. The study was conducted to find the level of Job satisfaction of the
employees, it also helped us to know the factors that satisfied them to do the job and
what are the factors that dissatisfied them to do the job. The satisfactory factors will
help the employees to be retained in the organization.
The study has been chosen due to the importance given to the satisfaction level,
performance and the productivity of the employees. The satisfaction of the
individuals is important but so is the collective satisfaction of individuals in groups
and in the organization as a whole.
Among various factors, employees’ attitudes and feelings regarding their jobs and /or
job experiences have been found to significantly affect both their personal as well as
job behaviour. The job satisfaction will lead to retaining of the employees. So from
finding the satisfaction level retaining measures of employees can be found out.
The research that has been conducted is descriptive research. Questionnaire was
used to conduct the study. IT sector, Banking, Insurance & FMCGs have been
chosen for survey and information is collected from the Sample. As per the
requirement the Sample size considered for survey is to meet 60 respondents. The
data collected through questionnaire for this purpose is tabulated suitably and
graphs and charts are used to analyze the data.
It is a generally accepted proposition that the longevity of an employee in a private
organization is influenced by the satisfaction of the employee in the organization. So
job satisfaction is the most crucial study for any organization. This job satisfaction
will lead to employee retention in the organization.
FINDINGS OF THE STUDY
1. It is found that maximum of the employees are young. The company targets
the X generation people as their targeted employees.
Page 80
Impact of Job Satisfaction levels on Employee Retention
2. Maximum employees are satisfied with their job in the Organization, though
not very satisfied but satisfaction level of employees are higher in the
organization.
3. 62% employees are committed to the job, they think of building up long term
career in the job. When one is satisfied then only commitment comes for the
job.
4. Maximum employees know about what to do in the job. So the job knowledge
is given properly to the employees. So we can say that employees are well
informed about the job description and there is no role ambiguity. Employees
are satisfied with knowledge of the job.
5. Maximum employees have the ability to have an impact on the job. Though
there are some respondents who say that they don’t have an impact on the
job, still the majority of people have impact which again signifies employee’s
satisfaction with the job.
6. 62% employees give positive implications about their receiving supervision
and feedback which help them to develop themselves.
7. Employees agree that they are given enough opportunities for their career
development in the form of on the job training, opportunities for personal
development and opportunities for advancements.
8. There is no rivalry among the employees within the departments. They work
in team as a result there is no problem of adjustments within the departments.
9. Maximum employees are satisfied with the work place so they would refer
their friend to work in this working place.
10.Maximum of the employees feel that they are being cared by the company.
11.Maximum of the respondents employees feel that their company attracts high
quality employees, which make them feel proud that their colleagues are
qualified people.
12. It is found retention rate of quality employees are higher in this company.
13.Across departments’ teamwork is there which shows there is understanding
and unity across the department members.
14.Maximum employees rated that the company value diversity as ‘good’.
15.Maximum employees feel proud to be associated with such company who
provide quality products and services in the form of insurance services.
Page 81
Impact of Job Satisfaction levels on Employee Retention
16.Employees feel they are not given power to set corporate directions. So in this
case they remain dissatisfied.
17.Employees are kept informed about their jobs.
18.Maximum respondents employees said that they are not addressed external
issues facing by the company. So employees are dissatisfied in this issue.
19.Employees are addressed about the internal issues of the company.
20.Employees feel satisfied as their leaders are ethical.
21.82% employees agree that their company is a leader in the industry.
22.Maximum employees feel that their company is a competitive company and
this gives them satisfaction that they work in such a competitive company.
23.Employees feel that their company’s leadership has a clear vision of the
future. The company is future oriented and moves according to the future
direction.
24.Maximum employees feel that their company’s leadership has made changes
which are positive for the company.
25.Maximum employees rated that they receive appropriate recognition for their
contribution.
26.Maximum employees feel that their work gives them a sense of personal
accomplishment. In this no respondents has rated it as poor or very poor.
When the employees feel that their job gives them personal accomplishment
they feel satisfied.
27.87% respondents’ employees said that they are satisfied with their direct
supervisor.
28.Maximum employees are satisfied with their overall job security.
29.Maximum employees say that they are satisfied to work in the company,
which they consider as a good place to work.
30.Maximum employees consider their job as a satisfying job.
31.Employees are much more satisfied with their jobs now compared with a year
ago.
32.Maximum employees have been working there for more than 6 months to 1
year. This indicates maximum employees are working in the organization for
short time period.
Page 82
Impact of Job Satisfaction levels on Employee Retention
CONCLUSION
The employees that are selected by the companies are young aged
employees. They target the fresh graduates for the job as these categories of
Page 83
Impact of Job Satisfaction levels on Employee Retention
people are energetic and hard working. Moreover the inexperienced
graduates don’t have much chance to shift to other jobs and they remain
committed to the job.
We have also found that maximum employees are satisfied with their job and
are committed for a long term career. Perhaps the work environment and
working conditions give them a level of satisfaction.
Employees when asked to rate their jobs on certain factors like having known
what they need to do, that is job knowledge, ability to have the impact on the
job, receiving supervision and feedback, on the job training, opportunities for
personal development, opportunities for advancement and team work within
their department has been marked as good by maximum employees. Though
there are some employees who considered these factors as poor also but the
percentage of employees who considered them as good and excellent are
more. Thus this indicates that employees rate their job as good. These may
be because they feel their career growth is being considered by the company
and as a result they feel content with their job. Moreover shifting from one
company to another company will not be any useful to their career. So for this
reason they may feel content with their job.
We have also seen when the employees were asked to rate if they are going
to refer their friend to work in that working place, maximum employees rated
as they are likely to refer. This indicates they like the company to work at
though some of them also have said they are unlikely to refer their friend to
the company but majority responses were likely.
We have also seen that when employees were asked to rate their work place
on some factors like caring about employees, attracting high quality
employees, retaining high quality employees, teamwork across departments
Valuing diversity and providing quality products and services. In these factors
also we do find that maximum employees rated it as good and excellent.
These indicate they are satisfied with the work place as a whole and this
indicates their satisfactory level for the job.
Next when the respondents employees were asked to rate the leadership at
their work place in some questions their responds were good like keeping the
employees informed, addressing internal issues in the company and serving
as ethical role model whereas on some factors like setting corporate direction
Page 84
Impact of Job Satisfaction levels on Employee Retention
and addressing external issues facing the company their response were
dissatisfactory. Employees felt that they were not satisfied on the above two
factors mention by the company. Thus it shows employees are given some
power but not full which is another factor for their satisfaction.
Next when employees were asked about their company leadership maximum
employees agreed that their company is a leader in the industry, their
company is a strong competitor in key growth areas, their company’s
leadership has a clear vision of the future, their company’s leadership has
made changes which are positive for the company and their company’s
leadership has made changes which are positive for them. This shows that
the employees are quiet happy with the company’s position in the industry.
Thus employees feel they are working in a reputed company and this
increases their satisfaction level for their job.
Employees when asked how satisfied they are with receiving appropriate
recognition for their contribution they responded as satisfied, they also have
responded satisfied for the questions like their work gives them a sense of
personal accomplishment, are they satisfied with their direct supervisor. How
satisfied they are with their overall job security, with their company as a place
to work. With their job overall. In all those questions maximum employees
responded it as satisfied. So as a whole we can say that employees are
satisfied with their job overall.
Lastly when the employees were asked compared to a year ago how they
would describe their overall job satisfaction today many respondents said that
they are much more satisfied or somewhat more satisfied. This shows they
like their present job much more. As a result retaining these employees is not
a tough task. Based on the factors we can say that employees are satisfied by
working in these companies.
These all indicates that there is relationship of the factors with job satisfaction
and by considering those factors as positive employee can be retained in the
organization easily whereas lack of these factors will restrain the employees
to remain in the organization.
All these shows that employees in these companies are satisfied with their
jobs. They do find the job as challenging and interesting. We have also seen
some factors which creates an impact for their satisfaction and the
Page 85
Impact of Job Satisfaction levels on Employee Retention
relationship of the factors with the employees’ level of satisfaction. May be the
company is well concerned with employee, that’s why the level of satisfaction
is higher here. Thus retaining the employees will be easier here.
Testing of Hypotheses: It’s justified that Job Satisfaction levels have impact
on employee retention as 62% employees give positive implications regarding
their job satisfaction & are provided with enough opportunities for their career
development in the form of on the job training, opportunities for personal
development and opportunities for advancements. 87% respondent’s
employees said that they are satisfied with the management policies even
though having an adverse mental stress with their job especially in IT sectors.
RECOMMENDATIONS
However to improve the employee satisfaction further the following
recommendations are made.
1. The Human Resource department should be modern in the outlook and try
to identify the required needs to the employees at the right time.
Page 86
Impact of Job Satisfaction levels on Employee Retention
2. If the employees are encouraged and given opportunity to take part in the
planning and decision making of the organization, they will get more
involved in their work which increases their efficiency - Participative
management. Like giving them power to set corporate direction.
3. Employees have to feel that they are not just working in the organization
but should feel that it is their own company, this help in improving the
organizational belongingness of employees.
4. The working conditions and physical needs such as hygienic work, hours
of work, ventilation and adequate lighting are the features to be introduced
in the organization which are the important attributes of satisfaction.
5. Power should be delegated and centralization of power should be avoided.
6. Stress of the employees should be reduced through counseling and other
means.
7. Organizational variables like job content, type of leadership, pay and
promotional prospects, interaction in work group all these should be
considered for the employees. These factors lead to the satisfaction of the
employee and retention of the employees.
8. Employees should have some recreation facilities in the office which will
help them to relax during the leisure time.
9. Employee morale should be increased by creating a positive image of the
company.
10.Job rotation should be introduced this reduces the boredom which arises
out of the monotonous nature of the work.
11.Employees should be taken for one day recreational trip that will relax
them.
12.An environment should be developed in which employees develop self
esteem and self efficacy.
Thus if the organization pays attention toward the above issues related to the
employee satisfaction, it would certainly help the organization to increase the
existing satisfaction level of employees and will retain the employees in the
organization.
So, when a person is satisfied with his/ her job he will show the following
conducts.
Page 87
Impact of Job Satisfaction levels on Employee Retention
i. Induced to do work efficiently and effectively.
ii. Convinced to remain in the enterprise.
iii. Prepared to act efficiently during contingencies.
iv. Prepared to welcome changes without resistance.
v. Interested in promoting the image of the organization.
vi. More happy and satisfied with their job.
Page 88