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Dr.Pooja Ohri Ranjeev Handa

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OBJECTIVES OF THE STUDY

y To understand the importance and ways of Employee

retention.y To study reasons behind the employee turnover.

y To identify the importance of Employee retention inthe recession period.

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RESEARCH METHODOLOGY

The whole research is based on the secondary data. Theaim of this research is to understand the overallconcept of employee retention.

Data collection sources:

Secondary Data: Internet, Articles, abstracts, researchreports, Magazines, Uganda health workforceretention study manual.

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Hypothesis:

y Hypothesis 1y Ho: workforce retention is not a global challenge

y Hypothesis 2

y Ho: cost of retaining employees

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ANALYSIS OF DATA

y To analyze and draw the conclusion firstly we should

study the reasons of employee turnovery REASONS WHYEMPLOYEES LEAVE

1.Expectations not met.

2.Mismatch between the person and the

role.

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3. Mismatch between person and the culture of the firm.

4. Insufficient opportunities for growth and

advancement.5. Insufficient recognition or appreciation.

6. Problems with direct manager.

7. Dissatisfaction with pay.

8. Stress.

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It is globally not a challenge if we refer to the conceptual matrix

given below:Retention Challenge Matrix

Availability ofSkilled Labour

High Not a Challenge ModerateChallenge

ModerateChallenge

High Challenge

Low Adopt Ignore

Strategies for Retention

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An important next step for this research is to furtherexplore the hypothesis put forth as workforce retentionis not a global challenge.

In the matrix it clearly depicts the intensity of globalchallenge.

Strategy for retention is a dependent variable=(X)

Availability of skilled Labour is an independent variable=(y)

Challenge is a function =(f)

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y If the dependent variable (x) and independent variable(y) has a positive relation then function f denotes thatit is not a global challenge

y If the dependent variable (x) and independent variable

(y) has a negative relation then function f denotes thatit is highly a global challenge

y If either the dependent variable (x) is negative or theindependent variable (y) is negative in that case

function f denotes that it is a moderate challenge.

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Turnover Formula: Total Employee TurnoverCost=Costs ofHiring New Employees + Costs ofTraining New Employees.

While the numerous variables contributing to turnovercosts are diverse and often hard to pinpoint, mainfactors include items such as:

The preliminary costs of paying a recruiter or internalH

R person to first evaluate the requirements of aposition and then create and implement a marketingcampaign to attract qualified applicants.

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y The cost to review candidates, conduct interviews, andnarrow down a field of applicants to choose the rightperson for a position. Miscellaneous tasks such asbackground fact checking and drug screening add to

the incidental turnover costs during this phase.y The employer incurs added expenses of time and

money for training and orientation. New workerscontribute less than full productivity during their first

few months on the job, so companies also pay apremium due to lost productivity during thisintroductory phase.

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Cost of Turnover includes:

S.No. Expenditure Cost(Rs) Approx.

1 Cost of paying a recruiter or internalHR person +advertisement cost

100000 + 100000

2 Cost to review candidates, conduct interviews,and narrow down a field of applicants +Conveyance cost + Cost of lodging the newemployee

50000

3 Training and orientation + Cost of the venuewhere training will be conducted + material costwhich is supplied during training

50000

4 Additional losses occur as supervisors andother higher-paid employees dedicate theirown valuable time and energy + the trainerscost

10000

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S.No. Expenditures Cost(Rs) approx

5 New Sales people rarely meet the targets of those they are hired to replace.

200000

6 If an employee leaves the company when hestarts working, company suffers a big loss interms of money as well as workforce.

All the aboveexpenditures

Total 501000

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Cost of retention:

S.No. Expenditures Cost (Rs) Approx.

1 Rewards 10000

2 Recognition-making him participate indecision making

Doesnt cost much

3 Picnics + Fun trips 5000

4 Promotion-by upgrading the chair, salaryhike

10000

5 Sports 5000

6 Dinner Parties 12000Total 42000

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From the above written table now we can easily test the hypothesis that cost

of retention is < cost of turnover. Therefore the corporate should believe inretaining instead of replacing.

Current updates of employee turnover.

The top three markets reporting the highest turnover rate are:-

Market Turnover Rate

India 13.8%

Australia 11%

China 10.3%

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CONCLUSION

y Employee retention is not just an activity ofHRmanager but its a need of the company. An employee

leaving a company is like a stone thrown in a still pond:ripples of disruption spread through the organization,creating unbalance. In any business, this unbalancecan be expensive.

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SUGGESTIONS

y Provide more options in the work profile, dont makethe work monotonous but try to enrich the job atregular intervals

y Provide the whole information about the work. Help

the employees to gain clarity of the work.y Have frequent training and development programmes

to help sustain employees interest and to help themable to handle the work challenges.

y

Create better and friendly work environment.Learning environment will help employees to learnnew abilities which will also help

y Have competitive pay package system.

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Thanks