Project Report Finall - Copy (4)

8/6/2019 Project Report Finall - Copy (4)

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Chapter 2

Literature Review

Literature Review1


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Employee retention is one of the hottest management topics for good

reason; it is impacting employers on a daily basis. The number of qualified

applicants available for vacant positions is currently in decline and employers

are finding it difficult to hire new employees and to keep employees over the

long run.

Let Us see what Employee Retention used to mean

This entails understanding just a little history. The term employee retention

First began to appear with regularity on the business scene in the 1970s and

early 1980s. Until then, during the early and mid 1900s, the essence of the

relationship between employer and employee had been a statement of the status

quo:

You come work for me, do a good job, and, so long as economic conditions

allow, I will continue to employ you.

It was not unusual for people who entered the job market as late as the

1950s and 1960s to remain with one employer for a very long time sometimes

for the duration of their working life. If they changed jobs, it was usually a

major career and life decision, and someone who made many and frequent job

changes was seen as somewhat out of the ordinary.

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As a natural result of this status quo Employer-employee relationship,

an employee leaving his or her job voluntarily was seen as an aberration,

something that shouldnt really have happened. After all, the essence of status

quo is just that little or nothing should change in the relationship and leaving

was a pretty big change!

Reason for Employee Retention Today:

According to The HR Priorities Survey from ORC Worldwide an HR

consulting and data services firm, nearly 62 percent of respondents to their

survey opined that talent management will be the most pressing strategic issue

they face in year. The findings of the survey also indicated that 33 percent of

talent management programs include workforce acquisition, assessment,

development, and retention as areas that will consume most of the survey

respondents' time this year 2007.Retention has emerged as the focus of much time and attention in recent

years, particularly as part of talent management programs, and so much is

known about it that the HR practitioner who tries to integrate it into a talent

program may grow bewildered by the huge volume of research about it.

Employee retention is more than just keeping employees on the job. It is

also about sustaining employees, primarily by enhancing their job satisfaction.

Job satisfaction, in turn, can increase productivity and keep employees energized

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and motivated to give their best. Job satisfaction can equate to employees who

stick with their current employer and strive to perform at or above expectations

and standards.

Employee retention is commonly considered to mean the ability to

maintain a stable workforce. It is often linked to morale and to organizational

productivity. Retention is thus the opposite of turnover, a well-known concept.

In addition the perception of having a job for life in a public sector role no

longer exists. The trend for the younger generation of workers is to shift from

job to job and this is becoming a norm of society.

Companies that can recruit the best talent and retain them will have an

edge in the long run.

Today talented persons are like frogs in a wheelbarrow, which can jump at any

point of time when they sense opportunities.

Reasons for its Increasing Relevance:

Average employee turnover is 14.4% annually, according to the Bureau

of National Affairs. And, turnover rates are on the rise, the Bureau now reports;

turnover also varies widely among different industries.

The blow to morale and increased job stress when remaining employees

are burdened with the distribution of the departed employees workload, the

negative impact on customer service is a direct result of their high turnover.

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organization to retain the existing qualified resource as compare to spending

more than 50 % in getting new resource as a replacement of an existing

resource.

And the recent turnover figures about U.S. are Overall U.S. voluntary

turnover increased slightly to 23.4% annually, up from 22.7% the previous year.

The highest turnover by far is still in the Accommodation and Food Services

sector at 56.4% and the Leisure and Hospitality sector at 52.2%. Sectors that

saw the highest increase in turnover were Accommodation and Food Services,

up 7% from the previous year, Leisure and Hospitality, up 5.4% and

Information, up 4.5%.

The only sectors seeing a (slight) decrease in turnover were Real Estate,

Natural Resources and Mining, and Professional and Business Services. In the

Government sector, turnover was up slightly at 8.2% with the Federal sector

increasing the most to 9.3% up from 5.7%. Regionally, all areas were up slightly

except the Northeast which saw a slight decrease.

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Chapter 3Employee Retention

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Employee Retention

Meaning

Employee Retention is the buzzword that one could hear in all the companies.

Hiring a talented employee and retaining them is one of the major concerns

faced by the companies. The employees with more experience in an organization

are always an asset to the company, the reason being they are much familiar

with the company culture.

Employee retention is a process in which the employees are encouraged to

remain with the organization for the maximum period of time or until the

completion of the project. Employee retention is beneficial for the organization

as well as the employee.

Employee retention refers to policies and practices companies use to prevent

valuable employees from leaving their jobs. How to retain valuable employees is

one of the biggest problems that plague companies in the competitivemarketplace. Not too long ago, companies accepted the "revolving door policy"

as part of doing business and were quick to fill a vacant job with another eager

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candidate. Nowadays, businesses often find that they spend considerable time,

effort, and money to train an employee only to have them develop into a

valuable commodity and leave the company for greener pastures. In order to

create a successful company, employers should consider as many options as

possible when it comes to retaining employees, while at the same time securing

their trust and loyalty so they have less of a desire to leave in the future.

Employees today are different. They are not the ones who dont have good

opportunities in hand. As soon as they feel dissatisfied with the current

employer or the job, they switch over to the next job. It is the responsibility of

the employer to retain their best employees. If they dont, they would be left

with no good employees. A good employer should know how to attract and

retain its employees.

Employee Retention involves taking measures to encourage employees toremain 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 dearth 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 hes doing, he may switch over to some other more

suitable job. In todays environment it becomes very important for organizations

to retain their employees.

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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 picture states the latest statement

that corporate believes in Love them or lose them

The reason may be personal or professional. These reasons should be understoodby the employer and should be taken care of. The organizations are becoming

aware of these reasons and adopting many strategies for employee retention.

1.3 Reason for Employee Leave:

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Employees do not leave an organization without any significant reason. There

are certain circumstances that lead to their leaving the organization. The most

common reasons can be:

Job is not what the employee expected to be: Sometimes the job

responsibilities dont come out to be same as expected by the candidates.

Unexpected job responsibilities lead to job dissatisfaction.

Job and person mismatch: A candidate may be fit to do a certain type

of job which matches his personality. If he is given a job which

mismatches his personality, then he wont be able to perform it well and

will try to find out reasons to leave the job.

No growth opportunities: No or less learning and growth opportunities

in the current job will make candidates job and career stagnant.

Lack of appreciation: If the work is not appreciated by the supervisor,

the employee feels de-motivated and loses interest in job.

Lack of trust and support in coworkers, seniors and management:

Trust is the most important factor that is required for an individual to stay

in the job. Non-supportive coworkers, seniors and management can make

office environment unfriendly and difficult to work in.

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

work life imbalance which ultimately many times lead to employee

leaving the organization.

Compensation: Better compensation packages being offered by other

companies may attract employees towards themselves.

New job offer: An attractive job offer which an employee thinks is good

for him with respect to job responsibility, compensation, growth and

learning etc. can lead an employee to leave the organization.

1.4 Way to Make Them Stay

Companies have now realized the importance of retaining their quality

workforce. Retaining quality performers contributes to productivity of the

organization and increases morale among employees.

Four basic factors that play an important role in increasing employee retention

include salary and remuneration, providing recognition, benefits and

opportunities for individual growth. But are they really positively contributing to

the retention rates of a company? Basic salary, these days, hardly reduces

turnover. Today, employees look beyond the money factor.

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Employee Rewards

Employee retention can be increase by inculcating the following practices:

Open Communication: A culture of open communication enforcesloyalty among employees. Open communication tends to keep employees

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informed on key issues. Most importantly, they need to know that their

opinions matter and that management is 100% interested in their input.

Employee Reward Program: A positive recognition for work boosts the

motivational levels of employees. Recognition can be made explicit by

providing awards like best employee of the month or punctuality award.

Project based recognition also has great significance. The award can be in

terms of gifts or money.

Career Development Program: Every individual is worried about

his/her career. He is always keen to know his career path in the company.

Organizations can offer various technical certification courses which will

help employee in enhancing his knowledge.

Performance Based Bonus: A provision of performance linked bonuscan be made wherein an employee is able to relate his performance with

the company profits and hence will work hard. This bonus should strictly

be productivity based.

Recreation facilities: Recreational facilities help in keeping employees

away from stress factors. Various recreational programs should be

arranged. They may include taking employees to trips annually or bi-

annually, celebrating anniversaries, sports activities, et al.

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Gifts at Some Occasions: Giving out some gifts at the time of one or two

festivals to the employees making them feel good and understand that the

management is concerned about them.

1.5 Importance of Employee Retention

Now that so much is being done by organizations to retain its employees, why is

retention so important? Is it just to reduce the turnover costs? Well, the answer

is a definite no. Its not only the cost incurred by a company that emphasizes the

need of retaining employees but also the need to retain talented employees from

getting poached.

The process of employee retention will benefit an organization in the following

ways:

The Cost of Turnover: The cost of employee turnover adds hundreds of

thousands of

Money to a company's expenses. While it is difficult to fully calculate the

cost of turnover (including hiring costs, training costs and productivity

loss), industry experts often quote 25% of the average employee salary asa conservative estimate.

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Loss of Company Knowledge: When an employee leaves, he takes with

him valuable knowledge about the company, customers, current projects

and past history (sometimes to competitors). Often much time and money

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

the employee leaves, the investment is not realized.

Interruption of Customer Service: Customers and clients do business

with a company in part because of the people. Relationships are

developed that encourage continued sponsorship of the business. When an

employee leaves, the relationships that employee built for the company

are severed, which could lead to potential customer loss.

Turnover leads to more turnovers: When an employee terminates, the

effect is felt throughout the organization. Co-workers are often required to

pick up the slack. The unspoken negativity often intensifies for theremaining staff.

Goodwill of the company: The goodwill of a company is maintained

when the attrition rates are low. Higher retention rates motivate potential

employees to join the organization.

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Chapter 4Objective of Study

&

Strategic Elements

OBJECTIVES OF THE STUDY17


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To study the problems in the organization.

To study, reason for leaving employee Setting goals for retention strategies.

Draw out measures to reduce employee

retention.

Strategic Elements

4.1 Strategies to Retain Employees:

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

strategies are:

Hire the right people in the first place.

Empower the employees: Give the employees the authority to get things

done.

Make employees realize that they are the most valuable asset of the

organization. Have faith in them, trust them and respect them.

Provide them information and knowledge.

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Keep providing them feedback on their performance.

Recognize and appreciate their achievements.

Keep their morale high.

Create an environment where the employees want to work and have fun.

These practices can be categorized in 3 levels: Low, medium and high level.

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Low Level Employee Retention Strategies:

o Appreciating and recognizing a well done job

o Personalized well done and thank-you cards from supervisors

o Congratulations e-cards or cards sent to spouses/families

o Voicemails or messages from top management

o Periodic days off for good performance

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

o Recognizing professional as well as personal significant events

Wedding gifts

Anniversary gifts

New born baby gifts

Scholarships for employees children

Get well cards/flowers

Birthday cards, celebrations and gifts

Providing benefits

o Home insurance plans

o Legal insurance

o Travel insurance

o Disability programs

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

o Discounts in cinema halls, museums, restaurants, etc.

o Retail store discounts

o Computer peripherals purchase discounts

Providing workplace conveniences

o On-site ATM

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o On-site facilities for which cost is paid by employees

laundry facility for bachelors

Shipping services

o Assistance with tax calculations and submission of forms

o Financial planning assistance

o Casual dress policies

o Facilities for expectant mothers

Parking

Parenting guide

Lactation rooms

Flexi timings

Fun at work

o Celebrate birthdays, anniversaries, retirements, promotions,

etc

o Holiday parties and holiday gift certificates

o Occasional parties like diwali, holi, dushera, etc

o Organize get together for watching football, hockey, cricket

matches

o Organize picnics and trips for movies etc

o Sports outings like cricket match etc

o Indoor games

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Occasional stress relievers

o Casual dress day

o Green is the color day

o Handwriting analysis

o Tattoo, mehandi, hair braiding stalls on weekends

o Mini cricket in office

o Ice cream Fridays

Employee support in tough time or personal crisis

o Personal loans for emergencies

o Childcare and eldercare services

o Employee Assistance Programs (Counseling sessions etc)

o Emergency childcare services

Medium Level of Employee Retention Strategies:

o Appreciating and recognizing a well done job

o Special bonus for successfully completing firm-sponsored

certifications

o Benefit programs for family support

o Child adoption benefits

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o Flexible benefits

o Dependents care assistance

o Medical care reimbursement

o Providing conveniences at workplace

o Gymnasiums

o Athletic membership program

o Providing training and development and personal growth

opportunities

Sabbatical programs

Professional skills development

Individualized career guidance

High level Strategies:

o Promoting Work/Life Effectiveness

o Develop flexible schedules

o Part-time schedules

o Extended leaves of absence

o Develop Support Services

o On-site day care facility etc.

o

Understand employee needs: This can be done through propermanagement style and culture

o Listen to the employee and show interest in ideas

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Appreciate new ideas and reward risk-taking

Show support for individual initiative

Encourage creativity

o Encouraging professional training and development and/or personal

growth opportunities: It can be done through:

Mentoring programs

Performance feedback programs

Provide necessary tools to the employees to achieve their

professional and personal goals

Getting the most out of employee interests and talents

Higher study opportunities for employees

Vocational counseling

Offer personalized career guidance to employees

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

and effective way to develop trust.

Suggestion committees can be created

Open door communication policy can be followed

Regular feedbacks on organizations goals and activities

should be taken from the employees by:

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o Hire the right people from the beginning: employee retention is not a

process that begins at the end. The process of retention begins right from

the start of the recruitment process.

The new joinees should fit with the organizations culture.

The personality, leadership characteristics of the candidate should

be in sync with the culture of the hiring organization.

Referral bonus should be given to the employees for

successful hires. They are the best source of networking.

Proper training should be given to the managers on interview

and management techniques.

An internship program can be followed to recruit the fresh

graduates.

4.2 REASON TO RETAIN, ITS PROS AND CONS.

The most important factor in running a business is Employee Allegiance.

Now-a-days companies are finding very hard to retain their key employees. In

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the current global market, you could a very talented employee with good talent

and attitude for a good salary package and working environment.

Organizations should understand and know the value of its people. Technocrats

who invent new things, managers with very good team control and effective

team management, executives who bring up good production levels, and sales

people who outperform and bring more customers to the business, these

employees bring more profit and success to the company. That is why

employers love to retain their key employees.

Here are the top three advantages in retaining the employees,

Risk on hiring a new employee is minimized

The expenses on hiring a new resource, training them and bringing up to

speed up the work could be minimized

Retention helps to retain customers. A study released by The Radclyffe

Group found that there is a strong correlation between the employee

satisfaction and the customer satisfaction. Those companies with great

employee satisfaction have the greatest customer satisfaction

However, there is a downside of retaining the employees for a long time. The

companies need to pay more benefits, health care etc to the employees. If the

employee stays long in a company, it is quite normal that the management

expects more performance and productivity from them.

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4.3 RETENTION MYTHS

The process of retention is not as easy at it seems. There are so many tactics and

strategies used in retention of employees by the organizations. The basic

purpose of these strategies should be to increase employee satisfaction, boost

employee morale hence achieve retention. But sometimes these strategies are

not used properly or even worse, wrong strategies are used. Because of which

these strategies fail to achieve the desired results. There are many myths related

to the employee retention process. These myths exist because the strategies

being used are either wrong or are being used from a long time.

These myths prevent the employer from successfully implementing the retention

strategies. Let us learn about some of these myths.

Employees leave an organization for more pay: Money may be themotivating factor for some but for many people it is not the most

important factor. Money matters more to the low-income-employees for

whom its a survival issue. Money can make an employee stay in an

organization but not for long. The factors more important than money are

job satisfaction, job responsibilities, and individuals skill development.

The employers should understand this and work out some other ways to

make employees feel satisfied. When employees leave, management tries

to retain them by offering more money. But instead they should try to

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figure out the main reason behind it. Issues that are mainly the cause of

dissatisfaction are organizations policies and procedures, working

conditions, relationship with the supervisor and salary, etc. For such

employees, achievement, growth, respect, recognition, is the main

concern.

Incentives can increase productivity: Incentives can surely increase

productivity but not for long term. Cash incentives, volume work targets

and speed awards are old management beliefs. They can generate work

speedily and in volumes but cant boost employee commitment. Rather

speed can hamper the quality of work produced. What really glues

employees to their work and organization is quality work, meaningful

responsibilities, recognition, respect, growth opportunities and friendly

supervisors.

Employees run away from responsibilities: It is a myth that employees

run from responsibilities. In-fact employees feel more responsible if they

are given extra responsibilities apart from their regular job. Employees

look for variety, greater control on the processes and authority to take

decisions in their present job. They want opportunities to learn and grow.

Management can assign extra responsibilities to their employees and

appreciate them on the completion of these tasks. This will induce a sense

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of pride in the employee and will improve the relationship between the

management and the employee.

Loyalty is a thing of the past: Employees can be loyal but what they

need is an employer for whom they can be loyal. There is no reason for

the employee to hop jobs if hes satisfied with the employer.

Taking measures to increase employee satisfaction will be expensive

for the organizations: The things actually required to improve employee

satisfaction like respect, career growth and development; appreciation,

etc. cant be bought. They are free of cost. An employer or management

that reacts well to the employees ideas and suggestions is enough for the

employees to be retained.

4.4 PROCESS OF RETENTION

Four Building Blocks of the Retention Process

Many organizations are feeling the pinch of low unemployment and high

turnover. Maybe yours is one of them. Keeping good employees is critical to

organizational success. However, many organizations look at this area as a

series of tasks to be performed. This is a process, not a set of tasksand once

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that mindset is taken, a comprehensive, ongoing system can be developed to

ensure your retention goals are realized. Here are four areas to consider when

developing your systemic process.

Building Block 1: Recruit To Retain

Use behavior based interviewing (see last quarter's issue). Ensure that all

interviewers are "in-sync"; that is, they're reading off the same sheet of

music. Look at the competencies that will be needed to reach strategic

goals, and then hire people who posses those competencies. Use indicator

assessments to help you better screen candidates and ensure that the job

fit is correct. Realistically preview jobs; neither overselling nor

underselling benefits the interviewee or the organization. And, don't

forget reference and credential checks. In certain positions, full

background checks may be needed. Carefully evaluate each position,

especially when one becomes vacant. Is a replacement truly needed? Arethere better ways of structuring positions? Look for employee input as

well as management input. How does your organization stack up against

the competition? If salaries, benefits and other "maintenance" factors

aren't keeping up with the market, the other areas don't matter. Consider

getting outside market surveys for comparative data.

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Building Block 2: Make Everyone a Part of the Family

Set up orientation programs that embrace new employees. Look at

orientation as a long-term process, not just the first day or week of

employment. Use your orientation process to build employee involvement

and commitment. That means making it interactive from the beginning,

and involving all parts of the organization. Use a buddy system for that

critical introductory period time (or some other time parameter). It's nice

to have a buddy to explain the ropes and to have someone to have lunch

with. Check back regularly with new employees to "see how it's going".

Find out if what was described during the formal orientation day is indeed

what they're experiencing at their worksite. Don't wait for the resignation

that triggers an exit interview to find out what caused an employee to

leave. Don't wait for the exit interview to find out where the organization

has some opportunities for improvement. Use both formal and informal

systems. For example, "Pulse Check" interviews done at three or fourmonths after hire date can give a standardized indication of what's going

well and where improvements can be made. Culture and climate surveys

provide indicators, and focus groups can provide in-depth information on

specific areas. "MBWA", managing by Walking Around, is a great way to

get up close and personal with employees. It gives you first hand

information, and allows you to view the workplace "as it is", rather than

your perception from your office.

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Building Block 3: Develop Current and Future Competencies

Skill development is for everyone - old and new employees alike.

Proactively assist employees in setting goals that link their development

to the organization's overall goals. Provide opportunities for both the short

term and long term. Reward and recognize employees based on results

achieved pertaining to that skill. It isn't enough just to learn it. Determine

tangible results based on mastering the skill. If you don't already have a

mentor program, consider this for every employee. Mentors can help to

guide and develop every employee, and the relationship is invaluable in

raising the comfort level of employees and the productivity standard bar

in the organization. Managers are critical in retention efforts, so think

about what you're doing to develop yours. Employees don't leave

companies; they leave their managers! Make your managers are ones that

employee will stick to like glue! But be forewarned, managementdevelopment is an individualized, long-term commitment. It's not a few

programs that the organization mandates every manager must attend. Use

a variety of tools and methods for developing employees. Assessments,

web-based training, classroom instruction, team learning and on-the-job

training are just a few of the methods. Each person is different in how

they take in and process information. Find out what works best with each

person, and then capitalize on it.

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Building Block 4: Learn From the Past with an Eye on the Future

Even with the best work environments, employees do leave for a variety

of reasons. Find out why your voluntary terminations resign by

conducting structured exit interviews. Then, use that data to make positive

changes in your workplace. If recurring themes come up, verify them with

existing employees. Ask employees to form teams to develop

recommendations to improve those areas. As for involuntary

terminations.study them carefully. Are there trends? Do certain

supervisors have a higher than normal percentage of involuntary

terminations? What are the reasons? How can these be avoided in the

future? By implementing principles of the Four Building Blocks, you can

build a strong process for holding on to your employees. This, of course,

is by no means exhaustivebut it's a heckuva good start!

4.5 Managing Employee Retention:

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

1. Identify the cost of employee turnover

2. Understand why employee leave

3. Implement retention strategies

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Identify the cost of employee turnover:

The organizations should start with identifying the employee turnover

rates within a particular time period and benchmark it with the competitor

organizations. This will help in assessing the whether the employee

retention rates are healthy in the company. Secondly, the cost of employee

turnover can be calculated. According to a survey, on an average, attrition

costs companies 18 months salary for each manager or professional who

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

amounts to major organizational and financial stress, considering that one

out of every three employees plans to leave his or her job in the next two

years.

Understand why employees leave:

Why employees leave often puzzles top management. Exit interviews arean ideal way of recording and analyzing the factors that have led

employees to leave the organization. They allow an organization to

understand the reasons for leaving and underlying issues. However

employees never provide appropriate response to the asked questions. So

an impartial person should be appointed with whom the employees feel

comfortable in expressing their opinions.

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Implement retention strategy:

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

as to reduce employee turnover. The most effective strategy is to adopt a

holistic approach to dealing with attrition. An effective retention strategy

will seek to ensure:

oAttraction and recruitment strategies enable selection of the right

candidate for each role/organization

oNew employees initial experiences of the organization are positive

oAppropriate development opportunities are available to employees,

and that they are kept aware of their likely career path with the

organization

oThe organizations reward strategy reflects the employee drivers

oThe leaving process is managed effectively

4.6 Retention Management:

Most of us would agree that todays environment is considerably more complex

than that which existed in 1980s and 1990s. Consequently, organizations have

been introducing change to cope with the challenges of the environment and

competition. This, in turn, led to change in job demands and employee skills.

Thus, human skills and talents are in great demand than that of other resources.

Organizations started offering attractive pay packages in order to lure the

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employees with scarce skills. This, in turn led to increase in external mobility.

Therefore, organizations started adapting strategies to retain employees with

scarce skills and talents. Retention management, thus, acquired significance.

4.7 MANAGERS ROLE IN RETENTION

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

excuse. However, research has shown that people join companies, but leave

because of what their managers do or dont do. It is seen that managers who

respect and value employees competency, pay attention to their aspirations,

assure challenging work, value the quality of work life and provided chances for

learning have loyal and engaged employees. Therefore, managers and team

leaders play an active and vital role in employee retention.

Managers and team leaders can reduce the attrition levels considerably by

creating a motivating team culture and improving the relationships with teammembers. This can be done in a following way:

Creating a Motivating Environment: Team leaders who create

motivating environments are likely to keep their team members together

for a longer period of time. Motivation does not necessarily have to come

through fun events such as parties, celebrations, team outings etc. They

can also come through serious events e.g. arranging a talk by the VP of

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Extra Responsibility: Giving extra responsibility to employees is another

way to get them engaged with the company. However, just giving the

extra responsibility does not help. The manager must spend good time

teaching the employees of how to manage responsibilities given to them

so that they dont feel over burdened.

Focus on future career: Employees are always concerned about their

future career. A manager should focus on showing employees his career

ladder. If an employee sees that his current job offers a path towards their

future career aspirations, then they are likely to stay longer in the

company. Therefore, managers should play the role of career counselors

as well.

4.8 EMPLOYEE RETENTION IN NEW MILLENNIEUM:

Today's labor force is different. Supervisors must take responsibility for their

own employee retention. If they don't, they could be left without enough good

employees. A wise employer will learn how to attract and keep good employees,

because in the long run, this workforce will make or break a company's

reputation. What's Different?

New supervisors must be prepared to be collaborative, supportive, and nurturingof their people. The old style of "my-way-or-the-highway" style of management

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is a thing of the past. Most new supervisors need training to understand what it

really takes to retain employees.

Employee retention involves being sensitive to people's needs and

demonstrating the various strategies in the five families detailed in Roger

Herman's classic book on employee retention, Keeping Good People.

1. Environment

2. Relationship

3. Support

4. Growth

5. Compensation

Employee retention takes effort, energy, and resources...and the results are

worth it.

Compensation:

Compensation constitutes the largest part of the employee retention process. The

employees always have high expectations regarding their compensation

packages. Compensation packages vary from industry to industry. So an

attractive compensation package plays a critical role in retaining the employees.

Compensation includes salary and wages, bonuses, benefits, prerequisites, stock

options, bonuses, vacations, etc. While setting up the packages, the following

components should be kept in mind:

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Salary and monthly wage: It is the biggest component of the

compensation package. It is also the most common factor of comparison

among employees. It includes

o Basic wage

o House rent allowance

o Dearness allowance

o City compensatory allowance

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Salary and wages represent the level of skill and experience an individual has.

Time to time increase in the salaries and wages of employees should be done.

And this increase should be based on the employees performance and his

contribution to the organization.

Bonus: Bonuses are usually given to the employees at the end of the year

or on a festival.

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Economic benefits: It includes paid holidays, leave travel concession,

etc.

Long-term incentives: Long term incentives include stock options or

stock grants. These incentives help retain employees in the organization's

startup stage.

Health insurance: Health insurance is a great benefit to the employees. It

saves employees money as well as gives them a peace of mind that they

have somebody to take care of them in bad times. It also shows the

employee that the organization cares about the employee and its family.

After retirement: It includes payments that an Employee gets after he

retires like EPF (Employee Provident Fund) etc.

Miscellaneous compensation: It may include employee assistance

programs (like psychological counseling, legal assistance etc), discounts

on company products, use of a company cars, etc.

Growth and Career:

Growth and development are the integral part of every individuals career.

If an employee can not foresee his path of career development in his

current organization, there are chances that hell leave the organization as

soon as he gets an opportunity.

The important factors in employee growth that an employee looks for

himself are:

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Work profile: The work profile on which the employee is working

should be in sync with his capabilities. The profile should not be too low

or too high.

Personal growth and dreams: Employees responsibilities in the

organization should help him achieve his personal goals also.

Organizations can not keep aside the individual goals of employees and

foster organizations goals. Employees priority is to work for them and

later on comes the organization. If hes not satisfied with his growth, hell

not be able to contribute in organization growth.

Training and development: Employees should be trained and given

chance to improve and enhance their skills. Many employers fear that if

the employees are well rained, theyll leave the organization for better

jobs. Organization should not limit the resources on which organizations

success depends. These trainings can be given to improve many skills

like:

o Communications skills

o Technical skills

o In-house processes and procedures improvement related skills

o C or customer satisfaction related skills

o Special project related skills

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Need for such trainings can be recognized from individual performance

reviews, individual meetings, employee satisfaction surveys and by being

in constant touch with the employees.

Support:

Lack of support from management can sometimes serve as a reason for

employee retention. Supervisor should support his subordinates in a way so that

each one of them is a success. Management should try to focus on its employees

and support them not only in their difficult times at work but also through the

times of personal crisis. Management can support employees by providing them

recognition and appreciation.

Employers can also provide valuable feedback to employees and make them feel

valued to the organization.

The feedback from supervisor helps the employee to feel more responsible,

confident and empowered. Top management can also support its employees in

their personal crisis by providing personal loans during emergencies, childcare

services, employee assistance programs, counseling services, et al.

Employers can also support their employees by creating an environment of trust

and inculcating the organizational values into employees. Thus employers can

support their employees in a number of ways as follows:

# By providing feedback

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# By giving recognition and rewards

# By counseling them

# By providing emotional support

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

bitterness could be due to many reasons. This decreases employees interest and

he becomes de-motivated. It leads to less satisfaction and eventually attrition.

A supportive work culture helps grow employee professionally and boostsemployee satisfaction. To enhance good professional relationships at work, the

management should keep the following points in mind.

o Respect for the individual: Respect for the individual is the must in

the organization.

o Relationship with the immediate manager: A manger plays the role

of a mentor and a coach. He designs ands plans work for each

employee. It is his duty to involve the employee in the processes of the

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organization. So an organization should hire managers who can make

and maintain good relations with their subordinates.

o Relationship with colleagues: Promote team work, not only among

teams but in different departments as well. This will induce

competition as well as improve the relationships among colleagues.

o Recruit whole heartedly: An employee should be recruited if there is

a proper place and duties for him to perform. Otherwise hell feel

useless and will be dissatisfied. Employees should know what the

organization expects from them and what their expectation from the

organization is. Deliver what is promised.

o Promote an employee based culture: The employee should know

that the organization is there to support him at the time of need. Show

them that the organization cares and hell show the same for the

organization. An employee based culture may include decision making

authority, availability of resources, open door policy, etc.o Individual development: Taking proper care of employees includes

acknowledgement to the employees dreams and personal goals.

Create opportunities for their career growth by providing mentorship

programs, certifications, educational courses, etc.

o Induce loyalty: Organizations should be loyal as well as they should

promote loyalty in the employees too. Try to make the current

employees stay instead of recruiting new ones.

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Environment:

It is not about managing retention. It is about managing people. If an

organization manages people well, employee retention will take care of

itself. Organizations should focus on managing the work environment to

make better use of the available human assets.

People want to work for an organization which provides

o Appreciation for the work done

o Ample opportunities to grow

o A friendly and cooperative environment

o A feeling that the organization is second home to the employee

Organization environment includes

Culture

Values

Company reputation

Quality of people in the organization

Employee development and career growth

Risk taking

Leading technologies Trust

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Types of environment the employee needs in an organization

* Learning environment: It includes continuous learning and improvement ofthe individual, certifications and provision for higher studies, etc.

* Support environment: Organization can provide support in the form of

work-life balance. Work life balance includes:

Flexible hours

Telecommuting Dependent care

Alternate work schedules

Vacations

Wellness

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

challenging work, involvement in decision-making, clarity of work and

responsibilities, and recognition.

Lack or absence of such environment pushes employees to look for new

opportunities. The environment should be such that the employee feels

connected to the organization in every respect.

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Chapter 5Research Methodology

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RESEARCH METHODOLOGY

Research methodology is considered as the nerve of the project. Without

a proper well-organized research plan, it is impossible to complete the project

and reach to any conclusion. The project was based on the survey plan. The

main objective of survey was to collect appropriate data, which work as a base

for drawing conclusion and getting result.

Therefore, research methodology is the way to systematically solve the

research problem. Research methodology not only talks of the methods but also

logic behind the methods used in the context of a research study and it explains

why a particular method has been used in the preference of the other m ethods.

Research Design:

Research design is important primarily because of the increased

complexity in the market. In fact, it is the key to the evolution successful of

companies. It is an important tool to study the employee retention strategies. A

research design specifies the methods and procedures for conducting a particular

study. According to Kerlinger, research design is a plan, conceptual structure,

and strategy of investigation conceives as to obtain answers to research

questions and to control variance.

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Research Design specifies methods and procedures for study. In this study

the company designs new strategies for employee retention.

Source of data:

Research design specifies the method and procedures for the collection

and analysis of the data in the manner that aims to combine relevance to the

research purpose.

Data collection:

The data for the proposed study was collected from one source Primary

data.

Primary Data:

It includes collection of first hand information from the response who is

concerns with the market research.

E.g. Survey, Questionnaire.

Secondary Data:

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Chapter 6Data Interpretation

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Research Analysis:

Researcher has prepared one questionnaire and takes opinion of 50

employees in Synnchron Global

Are you satisfied with your salary package?

Yes

60%

No

26%

No Comments

14%

Yes

No

No Comme

INTERPRETATION:

According to survey I come to know that;

26% employees are not satisfied with salary package.

14% employees are not commenting on this question.

60% employees are satisfied with the salary package.

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Means company is providing appropriate packages to employees.

Are you fully aware about job responsibilities?

Yes

70%

No

26%

No Comments

4%

Yes

No

No Comme

INTERPRETATION:

This sample of question is showing that:

26% employees are not aware about their job responsibilities.

4% employees are not commenting on this question.

70% employees are aware about their job responsibilities

So we can say that most of the employees are aware about their job

responsibilities

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Is there adequate communication betweendepartments?

Yes

80%

No

8%

No Comments

12%

Yes

No

No Comme

INTERPRETATION:

According to survey:

8% employees are saying that there is no adequate communication between

departments.

12% employees are not commenting.

80% employees are saying that there is adequate communication between

departments.

So we can say that organization providing better communication between

departments to employees.

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Working environment in good in Synchron company or not?

INTERPRETATION:

Sample of questions showing that:

6% employees are not happy with working environment of Unicon

Company.

20% employees have not given their opinion.

74% employees are happy with working environment of Unicon Company.

So, we can say that working environment of Unicon Company is good for

employees.

58

Working environment is good in Unicon company or

not?

Yes

74%

No

6%

No Comments

20%

Yes

No

No Comme


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Will you achieve your career goals by working in this

company?

Yes

50%

No

20%

No Comments

30%

Yes

No

No Comme

INTERPRETATION:

According to survey, I come to know that:

20% employees are saying that they will not achieve their career goals by

working in this company.

30% employees have not given their opinions.

50% employees are saying that they will achieve their career goals by

working in this company.

So, we can say that company is providing career platform for employees.

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Your colleagues are helpful or not?

Yes

64%

No

12%

No Comment

24%

Yes

No

No Comm

INTERPRETATION:

As per survey,

12% employees are saying that, their colleagues are not helpful.


64% employees are saying that their colleagues are very cooperative and

helpful.

So we can say that, there are helpful employees.

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Is there any partiality with employees?

Yes

82%

No

10%

No Comment

8%

Yes

No

No Comme

As per survey the opinions of employees are

10% employees are saying that there is no partiality done by manager.


82% employees are saying that managers do partiality for giving lead of

customers.

So we can say that, there is partiality is going on in this company

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Is there team working towards common goals?

Yes

90%

No

2%

No Comments

8%

Yes

No

No Comme

As per survey of data:

2% employees are saying that there is team working towards common goals

in this organization.

8% employees have not given their comments.

90% people are saying that there is team working towards common goals in

this company.

So we can say that companys goals and employees goals are match to each

other.

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Do you require any contest or tour for

entertainment?

Yes

100%

No

0%

No Comment

0%

Yes

No

No Comm

As per survey of data:

0% no one is against of this question. 0% everyone has given their opinion.

100% employees are saying that they want any foreign tour for at least for a

week, so they will get relax.

So we can say that, employees are looking for tour or any interesting

contests.

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Are you satisfied with your job?

Yes

78%

No

10%

No Comments

12%

Yes

No

No Comme

As per the survey:

10% employees are not satisfied with their job.

12% employees have not given their comments.

78% employees are satisfied with their job.

So we can say that company has recruited most of right candidates for job.

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Chapter 7

FINDINGS

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PROJECT FINDINGS

There is no definition of satisfaction of the employees but it is a process,

which is carried out by the mutual understanding of the employees and

the employer for the betterment of both of them.

Retention should not be always considered to be a strategy but it should

be bitterly considered to be a continuous process that has to carried out agrass root level by the company.

There can be numerous reasons for the employee to be retained in

particular organization.

Employee retention does not mean to invest huge amount in the welfare

of the concerned employees.

Whereas employee retention consist of keeping a track of the employees

and also to take care of the various factors that are responsible for keeping

the employee loyal to the organization.

The company should not be always target oriented, they should set the

target according to real ground situation. The employees should not be

given non-achievable targets because non-achievable may bring

depression in to them, and it can be the hurdle in process of retention.

It is necessary for the organization to provide regular incentives, bonus to

all performing employee, it can be helpful for building loyalty in the

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Chapter 8Recommendations

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Recommendations

There is less communication between employee, so companyshould utilize the snack time, in that time employee cometogether in come area and take snack instead of give snake ontheir deskCompany should organize the sport competition, Employeescan meet each other. There is restriction or some sites are block in internet, butcompany should allow 30-40 minute for social networking sites.Like. Facebook, orkut

There is less response for upper level management, many atime they are solve problem of employee and ignore theirsuggestions.

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Chapter 9Conclusion

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CONCLUSION

It is cheaper to keep your good employees than it is to hire and train

new ones. So company should always try to retain their good and

productive employees rather than depending and continuing to hire

new employees

Strong retention strategies become strong recruiting advantages.

Retention is much more effective when you put the right person

into the right job. Know the job! Know the employee and their

motivation. So it is necessary for the company to always find the

best match for their respective vacancy or position at initial stages

of the recruitment only, otherwise it can be a major problem of

employees.

Money is important but it is not the only reason people stay with an

organization. So this should be the crust of the story that only

money cannot keep the employee to stay in the organization, but it

is the kind of relationships and satisfaction that keep the employees

to stay for longer time in the organization.

Recognition, in various forms, is a powerful retention strategy. This

means that company tries to include the employees in the various

decisions that the company takes and should also try to make them

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a indispensable part of the management and a whole organization.

So that they should always feel appreciated.

Company should always keep a watch on the structure of wages

and salary on the overall industry basis so that they can redefine

and restructure their policy regarding this. From time in order to

provide most competitive wages and salaries to their employees.

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Chapter 10Bibliography

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Books:

Human Resource Management by P. Subba Rao

Human Resource Management by T. N. Chabbra

Web Site:

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

http://www.scribd.com/search?query=employee+retention+strategy

retention.naukrihub.com/retention-strategies.html

http://www.financialexpress.com/news/it-majors-reboot-employee-

retention-strategies/705699/

http://humanresources.about.com/od/retention/Retention_of_Employees_

Tips_and_Tools_for_Employee_Retention.htm

74
http://en.wikipedia.org/wiki/Electronicshttp://www.scribd.com/search?query=employee+retention+strategyhttp://www.financialexpress.com/news/it-majors-reboot-employee-retention-strategies/705699/http://www.financialexpress.com/news/it-majors-reboot-employee-retention-strategies/705699/http://humanresources.about.com/od/retention/Retention_of_Employees_Tips_and_Tools_for_Employee_Retention.htmhttp://humanresources.about.com/od/retention/Retention_of_Employees_Tips_and_Tools_for_Employee_Retention.htmhttp://en.wikipedia.org/wiki/Electronicshttp://www.scribd.com/search?query=employee+retention+strategyhttp://www.financialexpress.com/news/it-majors-reboot-employee-retention-strategies/705699/http://www.financialexpress.com/news/it-majors-reboot-employee-retention-strategies/705699/http://humanresources.about.com/od/retention/Retention_of_Employees_Tips_and_Tools_for_Employee_Retention.htmhttp://humanresources.about.com/od/retention/Retention_of_Employees_Tips_and_Tools_for_Employee_Retention.htm


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Chapter 11

Annexure

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Questionnaire

Dear Respondent,

I am student of SJPI formerly known as NICM, Gandhinagar isdoing survey on Field Effective Force in Pharmaceutical industry,as a part of our curriculum, we are required to conduct aresearch. So kindly co-operate us to fill up this questionnaire, as it

is a part of our research study. The information provided by youwould be used for study purpose only and will be keptconfidential.

QUESTIONNAIRE

Gender: a) Male [ ] b) Female [ ]

Age: a) 20-25 [ ] b) 26-30 [ ] c) 31-35 [ ]

d)36-40 [ ] e) 41-45 [ ]

Q-1) Are you satisfied with your salary package?(Please () tick mark)

a) Yes [ } b) No [ ] c) No comment [ ]

2) Are you fully aware about job responsibility?(Please () tick mark)

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3) Is there adequate communication between departments?(Please () tick mark)


4) Working environment is good in Synchron company or not?(Please () tick mark)


5) Will you achieve your career goals by working in this company?(Please () tick mark)


6) Your colleagues are helpful or not?(Please () tick mark)


7) Is there any partiality with employees?(Please () tick mark)


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8) Is there team working towards common goals?(Please () tick mark)


9) Do you require any contest or tour for entertainment?

(Please () tick mark)


10) Are you satisfied with your job?(Please () tick mark)


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