2003 Employee Retention

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INTRODUCTIONRetention is one of the important aspects of an organization. The retention

deals about identification of human behaviour and indicate their personnel

feeling, Employee retention is a process in which the employees areencouraged to remain with the organization for the maximum period of time

or until the completion of the project. Employee retention is beneficial for

the organization as well as the employee.

Employees today are different. They are not the ones who 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 responsibilityof 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.

Some organizations are on the top because they value their employees

and know how to keep them glued to the organization. Personal or

professional the employers should take care of employees. Employee

Retention involves being sensitive to peoples needs and demonstrating the

various strategies. The Environment, Relationship, Support, Growth

and Compensation are the encourage employees to remain with the

organization for the maximum period of time.

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 problem that plague companies in the

competitive marketplace. 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 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,


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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.

MEANING

Employee retention involves taking measures to encourage employees to

remain in the organization for the maximum period of time. Corporate is

facing a lo of problem 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

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.

DEFINITION

Employee retention is define as effective employee retention is a

systematic effort by employers to create and foster an environment that

encourages current employees to remain employed by having policies and

practices in place that address their divers needs. Also of concern are the

costs of employee turnover (including hiring costs. productivity loss).

Replacement costs usually are 2.5 times the salary of the individual. The

costs associated with turnover may include lost customers, business and

damaged morale. In addition there are the hard costs of time spent in

screening, verifying credentials, references, interviewing, hiring, and

training the new employee just to get back to where you started.

Retention of key employees is critical to the long-term health and success

of any organisation. The performance of employees is often linked directly

to quality work, customer satisfaction, increased product sales and even to

the image of a company. Whereas the same is often indirectly linked to,

satisfied colleagues and reporting staff, effective succession planning and

deeply embeddedorganizational knowledge and learning.


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What is retention all about?

R emunerate competitively

E ncouragement and expectation

T raining and development

A nnual review cycles

I nform and Involve

N urture

Retention Factor

Career growth learning and development

Exciting work and challenge

Meaningful work, making a different and a contribution

Great people

Being part of a team

Good boss

Recognition for work well done

Fun on the job

Autonomy, sense of control over work

Flexibility :- for example in work hours

Fair pay and benefits

Inspiring Leadership

Pride in organization, its mission and quality of product

Great work environment

Location


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Employee Retention involves five major things:

Compensation

Environment

Growth

Relationship

Support

Compensation

Compensation constitutes the largest part of the employee retention

process. The employees always have high expectations regarding their

compensation packages. Compensation packages vary from industry to

industry. So an attractive compensation package plays a critical role in

retaining the employees.

Compensation includes Salary and wages, Bonus, Benefits, stock

options, Health insurance, Retirement, Miscellaneous compensation

etc. While setting up the packages, the following components should be

kept in mind:

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

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

among employees. It includes,

Basic wage

House rent allowance

Dearness allowance

City compensatory allowance


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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 tothe organization.

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

the year or on a festival.

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

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

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

stage.

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

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

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

the organization cares about the employee and its family.

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

like EPF (Employee Provident Fund) etc.

Miscellaneous compensation: It may include employee assistance

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

company products, use of a company cars, etc.

Organization Environment:

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

organization manages people well, employee retention will take care of

itself. Organizations should focus on managing the work environment to

make better use of the available human assets.

People want to work for an organization which provides:


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Appreciation for the work done

Ample opportunities to grow

A friendly and cooperative environment

A feeling that the organization is second home to the employee

Organization environment includes:

Culture

Values

Company reputation

Quality of people in the organization

Employee development and career growth

Risk taking

Leading technologies

Trust

Types of environment the employee needs in an organization:

Learning environment: It includes continuous learning and

improvement of the individual, certifications and provision for higher

studies, etc.

Support environment: Organization can provide support in the form

of work-life balance. Work life balance includes:

Flexible hours

Telecommuting

Dependent careAlternate 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.


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Lack or absence of such environment pushes employees to look for

new opportunities. The environment should be such that the

employee feels connected to the organization in every respect.

Growth and Career:

Growth and development are the integral part of every 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:

Work profile: The work profile on which the employee is working should be in

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

Personal growth and dreams: Employees responsibilities in the

organization should help him achieve his personal goals also. Organizations can

not keep aside the individual goals of employees and foster organizations

goals. Employees priority is to work for themselves and later on comes the

organization. If 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:

Communications skills

Technical skills

In-house processes and procedures improvement related skills

C or customer satisfaction related skills

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.

Relationship

Importance of Relationship in Employee Retention Program:

Sometimes the relationship with the management and the peers becomes

the reason for an employee to leave the organization. The management is

sometimes not able to provide an employee a supportive work culture and

environment in terms of personal or professional relationships. There are

times when an employee starts feeling bitterness towards the management

or peers. This bitterness could be due to many reasons. This decreases

employees interest and he becomes de-motivated. It leads to less

satisfaction and eventually attrition.

A supportive work culture helps grow employee professionally and boosts

employee satisfaction. To enhance good professional relationships at work,

the management should keep the following points in mind.

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

organization.

Relationship with the immediate manager: A manger plays the role of a

mentor and a coach. He designs ands plans work for each employee. It is his

duty to involve the employee in the processes of the organization. So an

organization should hire managers who can make and maintain good relations

with their subordinates.

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

but in different departments as well. This will induce competition as well as

improve the relationships among colleagues.

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


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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.

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.

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.

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

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

stay instead of recruiting new ones.

Support:

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

employee retention. Supervisor should support his subordinates in a way

so that each one of them is a success. Management should try to focus on

its employees and support them not only in their difficult times at work but

also through the times of personal crisis. Management can support

employees by providing them recognition and appreciation.

Employers can also provide valuable feedback to employees and make

them feel valued to the organization.

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

confident and empowered. Top management can also support its

employees in their personal crisis by providing personal loans during

emergencies, childcare services, employee assistance programs,


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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

By giving recognition and rewards

By counseling them

By providing emotional support

IMPORTANCE OF EMPLOYEE RETENTION:- 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), Isagro company experts

often quote 25% of the average employee salary as a conservative

estimate.

Loss of Company Knowledge: When an employee leaves, he

takes with him valuable knowledge about the company, customers,

current projects and past history (sometimes to competitors). Often

much time and money has been spent on the employee in

expectation of a future return. When the employee leaves, the

investment is not realized.

Interruption of Customer Service: Customers and clients do

business with a company in part because of the people.

Relationships are developed that encourage continued sponsorship

of the business. When an employee leaves, the relationships that

employee built for the company are severed, which could lead to

potential customer loss.


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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.

Our standard employee retention surveys coverfollowing minor things, including:

Overall satisfaction

Corporate culture

Supervisor relations

Training

Pay and benefits

Work environment

Communications

Our standard employee retention surveys are comprehensively designedto identify and isolate key independent and dependent variables.

Independent Variables Dependent VariablesSupervisor relations Overall satisfaction

Pay & benefits Likelihood to recommend

Work environment Likelihood to stay

Corporate communications Employee loyalty

Why Employee retention

The High Cost of Employee Turnover :-

1.Recruitment costs

from advertising to the time spent interviewing and sourcing.

2. Training costs

orientation materials and trainers time (ex. call center agents require on

average 4 - 6 weeks or more of classroom training).


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3. Lost Productivity Costs

a new employee operates between 25%-50% of productivity levels for the

first three months, not including the time spent by existing employees to

assist.

4. Lost sales costs

the loss of business when the role is vacant.

The Impact on BusinessReplacing staff is obviously expensive. But in addition a companys

reputation is also at stake. No one feels confident dealing with an

organization which cannot hold onto their employees. It suggests instability,

poor management and a lack of good planning. Regardless whether an

individual is let go or leaves on their own accord, more often than not the

employee leaves with a bitter taste in their mouth. That feeling is taken with

themalong with the skills they learned while working for youand their

sentiments are often repeated to future employers and their personal

network. Reactively losing talented individuals can damage your companys

reputation for years to come.

Employee Retention Strategies

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

strategies are:


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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 theorganization.

Have faith in them, trust them and respect them.

Provide them information and knowledge.

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.

1) Low Level

Appreciating and recognizing a well done job.

Recognizing professional as well as personal significant

events.

Providing benefits

Providing perks

Providing workplace conveniences

Fun at work

Occasional stress relievers

Employees support in tough time orb personal crisis.

2) Medium level

Appreciating and recognizing a well done job.

Benefit programs for family support

Providing conveniences at workplace.

Providing training and development and personal growth

opportunities.


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3) High level

Promoting work/ life

Understand employee needs

Encouraging professional training and development and/orpersonal growth opportunities.

Provide an environment of trust

Hire the right people from the beginning.

Managing Employee Retention

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

process:

1. Identify cost of employee turnover.

2. Understand why employee leave.

3. Implement retention strategies

1 . Identify 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.

2. Understand why employees leave:-Why employees leave often puzzles top management. Exit interviews are


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an ideal way of recording and analyzing the factors that have led

employees to leave the organization. They allow an organization to

understand the reasons for leaving and underlying issues. However

employees never provide appropriate response to the asked questions. So

an impartial person should be appointed with whom the employees feel

comfortable in expressing their opinions.

3. Implement retention strategies:-

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 willseek to ensure:

Attraction and recruitment strategies enable selection of the right

candidate for each role / organization.

New employees initial experiences of the organization are positive.

Appropriate development opportunities are available to employees, and

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

The organizations reward strategy reflects the employee drivers.

How To Increase Employee Retention

Companies have now realized the importance of retaining their quality

workforce.

Retaining quality performers contributes to productivity of the organization

and increases morale among employees.

Four basic factors that play an important role in increasing employee

retention include salary and remuneration, providing recognition, benefits

and opportunities for individual growth. But are they really positively

contributing to the retention rates of a company? Basic salary, these days,

hardly reduces turnover. Today employees look beyond the money factor.


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EMPLOYEE RETENTION TOOLS

Communication: Communication has become so heavily stressed in the

workplace that it almost seems clich. However communication couldnt bemore important in the effort to retain employees. Be sure that team

members know their rules, job description, and responsibilities within the

organization. Communicate any new company policies or initiatives to all

employees to be sure that everyone is on the same page. Nobody wants to

feel that they are being left out of the loop.

Include employees in decision making: It is incredibly important to

include team members in the decision making process, especially when

decision will effect an individuals department or work team. This can help

to create of employee involvement and will generate new ideas and

perspectives that top management might never have thought of.

Allow team members to share their knowledge with others: The

highest percentage of information retention occurs when on shares that

information with others. Having team members share when they have

learned at a recent conference or training workshop will not only increase

the amount is information they will retain, but also lets a team member

know that he is a valuable member of the organization. Facilitating

knowledge sharing through an employee mentoring program can be

equally beneficial for the team member being mentored as well as mentor.

Balance work and personal life: Family is incredibly important to team

members. when work begins to put a significant strain on ones family no

amount of money will keep an employee around. stress the importance of

balancing work and ones personal life. Small gestures such as allowing a

team member to take an extended lunch once a week to watch his sons

baseball game will likely be repaid with loyalty and extended employment

with an organization.


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Provide opportunities for growth and development: Offer opportunities

for team members to acquire new skills and knowledge useful to the

organization. If an employee appears to be bored or burned out in a current

position offer to train this individual in another facet of the organization

where he or she would be a good fit. Nobody wants to feel stuck in their

position will no possibility for advancement or new opportunities.

Clearly define what is expected of team members: Nothing can be more

frustrating or discouraging for an employee than the lack of a clear

understanding of what is expected of him on the job. In a performance

driven workplace a lack of clarity regarding job duties and expectations can

cause fear and anxiety among employees who are unclear of what is

expected of them.

Even worse outright anger can occur when a team member receives a

negative performance evaluation based on expectations and job duties that

he or she was unaware of or unclear about.

The quality of supervision and mentorship: It has been said so often

that it is almost clich, but people leave, not their jobs. Supervisors play

the largest role in a team members development and ultimate success

within an organization. All employees want to have supervisors who are

respectful, courteous, and friendly that is a given.

But more importantly team member want supervisors who se clear

performance expectations, deliver timely feedback on performance, live up

to their word and promises, and provide an environment where the

employee can grow and succeed. Failure by supervisors and management

to provide this can cause an employee to start looking for greener pastures.

Fair and equitable treatment of all employees: One of the surest ways to

create animosity and resentment in an organization is to allow favoritism

and preferential treatment of individual team members. The so-called good

ole boys club can create a noxious organization culture and foster

resentment among team members. This culture will only get worse and can


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create a devastating exodus of valued team members.

Best employee reward programs: If these rewards are in terms of money,

by dividing it into two parts and giving the first half parts with the initial

months salary and the remaining after six months helps in retaining the

employee for six months.

Career development program: Conditional assistance for certain courses

should be provided within the company in which the company will bear the

expenses only if he/she scores a certain aggregate of marks.

Performance based bonus: To get more work out of the employees,

remuneration in the form of bonus helps to retain individuals who are highly

productive. It doesnt add extra pressure on the companys budget. It can

be arranged by cutting a part of the salary hikes.

Employee referral plan: Introducing employee referral plans and giving

referral bonus after six to nine months of continuous working of the new

employee as well as existing employee reduces the hiring cost of new

employee as well as helps retention of the existing ones for a longer period

of time.

Loyalty bonus: After successful completion of a specified period of time in

an organization rewarding employees with money or position gives

recognition and satisfaction to them. It also gives encouragement to the

fellow employees.

Giving voice to the knowledge banks: The important intellectual assets

of the company is the workforce. The company should retain it through

involving I in some of the important decisions.


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Employee recreation: Involvement of top management along with the

lower and middle level management in some recreational activities makes

the employees feel that they are very close to the management and are

treated equality.

Gifts on some occasions: Giving some gifts on festivals and special

occasions to the employees makes them feel good and realize that the

management is concerned about them.

Accountability: Creation of an environment that demands accountability

and transparency helps employees to feel that they are as superiors. This

helps in emotional bonding of the employees.

Surveys: Conducting regular surveys, feedbacks from superiors as well as

other issues like morale, development plans, etc. This make them feel

important and understand that the company really cares for them.

Fun and laughter at workplace: Fun and laugher in a workplace lend a

competitive advantage to an organization through its human recourses.

The presence of humor in a workplace enables the employees to work with

interest and enthusiasm that reduce the work pressure and attrition levels.

It instills a sense of joy among the employees that can go a long way in

creating a bond between the employees and the employer and thereby

deceasing the rate of employee attrition. in a nutshell, creating a fun and

laughter filled wok environment in an organization will pave the way for its

success in the marketplace. such a company is sure to emerge as an

employer of choice.

10 Reasons why Employees leave

Expectations not met

Mismatch between the person and the role Employees who find


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themselves in roles.

Insufficient opportunities for growth and advancement.

Insufficient recognition or appreciation.

Problems with direct manager.

Dissatisfaction with pay .

Stress

Lack of work life balance

Loss of confidence in the firm.

What Makes Employee Leave?

Employees do not leave an organization without any significant reason.

There are certain circumstances that lead to their leaving the organization.

The most common reasons can be:

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

responsibilities 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 co-workers, seniors and management:

Trust is the most important factor that is required for an individual to stay inthe job. Non-supportive co-workers, seniors and management can make


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office environment unfriendly and difficult to work in.

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

work life imbalance which ultimately many times lead to employee leaving

the organization.

Compensation: Better compensation packages being offered by other

companies may attract employees towards themselves.

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

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

etc. can lead an employee to leave the organization.

Types of Employee Retention

Provide Perks

Offering employees perks that help them achieve a better work-life

balance can significantly increase the desire to keep theirjobs. For

instance, allowing employees to occasionally work from home helps

them if they need to care for a sick child. Benefit packages that

include health and life insurance and retirement plans keeps

employees on the job as well. Yet such plans need to be useful to

employees to have an impact on retention. Offering a health plan with

numerous exclusions that causes employees to pay for most of their

healthcare expenses out of pocket won't help retain them.

Promote Advancement

Focus on employee development and advancement to prevent workers

from feeling trapped in dead-end jobs, which usually leads to a high

turnover rate. Educational opportunities offered by employers and on-the-job training not only helps workers learn new skills to advance their careers,
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but also helps to improve job performance. Let employees know you're

willing to promote from within when possible. Employees often leave to

pursue better job opportunities when they don't see a chance for

advancement within the company structure.

Offer Financial Rewards

Financial rewards can help retain employees and boost their job

performance. Create a bonus system that rewards workers who reach a

specified job-performance goal. This retention method likely won't be

effective if the bonus offered is a paltry amount of money. It also won't be

effective if it's not an equal-opportunity bonus from which employees at alllevels can benefit. For example, subordinates usually won't be motivated to

step up their job performance so that their manager can get a bonus.

Encourage Communication

Employee-retention tips from the Wall Street Journal suggest that

employers establish open-communication policies with employees. That

includes hosting company meetings where workers can ask questions

about the company's future and share ideas on improving performance or

working conditions. Many employers conduct exit interviews with

employees who resign to determine why they're quitting, but the Journal

suggests engaging in "stay interviews" as well. Such interviews should be

conducted with longtime employees to determine why they've stayed with

the company and what they see as deal-breakers that would cause them to

leave.

The Advantages of Employee Retention

Acquiring Talent


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When organizations retain their employees, they avoid hiring costs. These

are often hidden costs. The cost to post on job boards can be annual or a

one-time expense. Agencies charge a percentage of an employee's annual

wages. Larger companies may have staffing departments whose sole

responsibility is screening and interviewing talent. Other companies may

assign this task to department heads or other individuals in the

organization. The time an individual spends screening and reviewing

resumes takes him away from his main job responsibilities. The hiring

process is risky. Background checks, personality testing and aptitude

testing can predict a candidate's capability, but there is still a risk.

Training and Development

Retaining workers reduces training costs. Recruits need to be trained in

business practices specific to the employer's software, culture and office

practices. Training requires one or more current employees to take time

away from their job responsibilities to educate the new employee on the

organization's way of doing business. Two or more people are on the

company payroll producing the results of one person. In the first 90 days, a

new hire costs the company money. When companies retain employees,

training dollars can be used to further develop the work force. Long-term

associates have the experience to review what has worked before and

apply that knowledge to future situations.

Skilled Labor Force

Employment retention develops a strong staff. Working individually or inteams these individuals share knowledge and expertise. The future

managers of an organization come from this work pool. These employees

are the historians of an organization's successes and challenges, and

provide mentoring to new hires They are committed to the continued

growth of the origination and its work force. These individuals have

finessed the inner workings of an organization. As they continue to develop

their skills, the organization benefits.
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Impact on Customer Service

Employee retention has a positive impact on customer service. Turnover

brings disruption in customer service, loss of business and possiblenegative business impacts. An organization's customer base expects

consistent and reliable service. There is a learning curve with new hires

and thus the potential for error or poor communication with a client. This

can impact business relationships. Long-term employees develop

relationships with customers. They know the clients' preferences and can

anticipate future needs. This knowledge develops over time.

Keys Solution for Employee Retention

Growth Opportunities

Attractive Package


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Personnel Training

Recreation

Organization Environment

Grievances

1. Growth Opportunities :-

Growth is everyones prime objective. Therefore it is implicit to offer

growth opportunities.

The vital factor that ensures a majority of senior level employees

remain associated with your organization. This is more crucial in an

industry like BPO, which has the highest churn rate because of the

prolonged boom in the industry.

2. Attractive Package :-

Remuneration package is the driving force of any employment.

Handsome package as a platform for people to take new initiatives.

Besides basic package, there can also be performance-based

incentives-relating to targets achieved, accuracy and productivity.

3. Personnel Training :-

An organization should also take due care of the training and

development needs of its employees.

Besides helping them improve their skills and enhance their

performance, it should also foster a faster growth rate in their career

path.

4. Recreation :-

Recreation is an important as any other tool. It helps in creating aconducive environment making fun for everyone.


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Thus, it is necessary to introduce consistent recreation initiatives like

Sports, Activities, family get together and unwinding zones at the

workplaces

Besides this, cultural programmes and Birthday celebrations break

the monotony of everyday work pressure.

5. Organization Environment:-

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

organization manages people well, employee retention will take care of

itself. Organizations should focus on managing the work environment to

make better use of the available human assets.

People want to work for an organization which provides:

Appreciation for the work done

Ample opportunities to grow

A friendly and cooperative environment

A feeling that the organization is second home to the employee

Organization environment includes:

Culture

Values

Company reputation

Quality of people in the organization

Employee development and career growth

Risk taking

Leading technologies

Trust

Types of environment the employee needs in an organization:

Learning environment: It includes continuous learning and

improvement of the individual, certifications and provision for higher

studies, etc.


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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.

6. Grievances:-

In order to create a supportive work atmosphere, ensure a prompt

atmosphere; ensure a prompt redressal of grievances. This

reinforces an employees belief in the management and in the fact,

that no stone will be left unturned to identify and solve their

grievances and quickly as possible.

The unbridled growth of the new economy, the emergences of theknowledge worker and the high demand for talent in the domestic

and global markets have rewritten the rules of the game.

Though hiring good employees is a nightmare, it is more difficult to

retaining good employees. The talent management is the key area in

every organization worth its HR department and CEOs are more

worried about intellectual capital than working capital. To add to theproblems are the huge packages being doled out at all levels.


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LITERATURE REVIEW

The literature clearly indicated that there are six keys to retainingpersonnel. They are recruiting, communications, training, job satisfaction,

pay and benefits.

Recruiting

The effort to retain the personnel begins with recruiting. Attracting and

retaining the best people are not two different things, but are the same

thing, Both require creating and maintaining a positive reputation, internally

as well as externally. Employers must be honest with the recruit about the

beliefs, expectations, organizational culture, demands and opportunities

within the organization. By representing the organization realistically, a

department will attract those who will be content working within the culture.

Denton follows this up by stating that, the better the match between

recruits and the organization the more likely you are to retain them

Lynn believes that you must take time during the hiring process to make

wise decisions. The employer must be candid about the working condition,

Responsibilities, opportunities and other details to reduce the chances of

making hiring mistakes.

Taylor and Cosenza strengthen this thought by noting that it is imperative

that company give prospective employees a true picture of the

organization, if they hope to match the personality type with the climate and

culture of the organization.

The literature was clear in pointing out that if departments want to increase

retention they must start with a solid recruiting process.


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Communications

Carney (1998) believes that the key to employee retention is quite simple :

communicate, communicate, communicate. Communication with the

employees must begin early on in the relationship. He believes that the

imprinting period of a new employee is probably less than two weeks.

Employers must engage the employee early on by sharing how important

the job they do is. Lynn follows this up by starting that early on an

atmosphere of fairness and openness must be created by clearly laying out

company policies.

Taylor and Consenza (1997) indicate that it is important to communicate

the values of the organization to its employees in order to increase their

level of consent, participation and motivation. Lynn, this thought by pointing

out that the vision of the organization must be shared with the employee as

well as the importance the employees play in helping fulfill it.

Lack of communication may result in gaps between management's

perceptions of quality employment and the employee desired and

perceives quality of employment. There must be a common purpose and

trust among employees. People want to feel as if they are a vital piece of

something larger (Carney, 1998). As Denton (1992) points out, managers

must make sure employees know what they should do and why it is

important.

Lynn (1997) notes that communications must be a two way street to be

effective. Employers must listen to what employees have to say. An

atmosphere must be created in which employees feel comfortable making

suggestions and trying our new ideas.

The literature revealed that communication must begin early in the

employer/ employee relationship. Organizational values and culture must

be made clear to all employees and their importance within the

organization must be continually emphasized.


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Training

As was noted earlier it is important that the employee feel like a valued

member of the organization. Training helps underscore this message.

Training personnel is a way to show you respect them and want them to

grow. The department is making an investment in the employee by offering

training. Good training can be de-emphasize salaries and benefits, in part

by building a positive work environment and by giving employees

advancement opportunities (Lynn, 1997). Lynn goes on to say that training

helps strengthen employee loyalty.

Training can help revitalize personnel. For an increasing number of people,

the chance to learn new skills is a significant personal goal for both the

career opportunities education can provide and for the chance to do

something a little different (Mendonsa,1998).

Training emphasizes to the employee that they are valued and respected.

This in turn to increased loyalty and retention.

Job satisfaction

While an organization must be competitive in terms of compensation and

benefits, it is the relationship with the supervisor that is often a crucial factor

in determining whether a person stays or goes(Mendonsa,1998).

Employees want more interaction with management, more self-satisfaction

on the job, more responsibility and more control over decisions affecting

them. They want their work to make a difference and want to be part ofsomething that matters (Taylor,1997).

Department should encourage innovation by soliciting the advice and input

of their staff members, followed by responses to ideas, complaints or

question (Taylor,1997). It is difficult to keep people on the job if they no say

in how to do it (Spragins,1992).

People need to be recognized for their accomplishments in the workplace.


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In most organizations the feeling of under-recognition is the most pervasive

feeling in the workplace . (Mendasa,1998)

Provide a great deal of personal and team recognition (carney,1998).

Recognize achievements with memos, mentions in staff meetings or

articles in the newspapers(Lynn,1997).

To retain employees, departments must offer career advancement

opportunities. Departments failing to offer employees career opportunities,

room for advancement and enhancement of skill and knowledge may find it

difficult to retain qualified employees (Taylo, 1997).

Marx(1995) concludes this by pointing out that promoting from within is one

of the proven methods of employee retention. Promoting from within shows

that there is truly room for advancement and growth within the department.

Employee involvements, recognition, importance of work and career

advancement opportunities are all important, when dealing with employee

retention.

Pay and Benefits

In general people think that money and benefits or lack thereof, are the

main reasons people leave their jobs, but this is not the case. While

compensation and benefits may be a key factor in the final decision-making

process, a money shortage is usually not what cause people to look in the

first place (Mendonsa, 1998).

Money may be the reason they give when they resign, but it's like White

noise. They are conscious of it for a while but if they are bored on the job,

Money alone is not going to keep them there .

Although traditional benefits such as vacation and health are still important,

today's workers are also looking for more non-traditional benefits. Benefits

such as flexible work hours, availability of child care tuition assistance

programs and discounts on services now top the list of desired benefits.


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The literature clearly indicates while still factors, Money and benefits are

not as important as job satisfaction in terms of employee retention.

Summary

The purpose of this topic was to identify why personnel were leaving PGL

and to suggest ways to improve Employee Retention.

The Literature was helpful in pointing out that employees stays or leave a

department based on sox key reasons, they were:

Poor recruiting practices

Communications

Training

Job satisfaction

Pay and Benefits


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1) Are you satisfied in this company?

Yes No

Employees satisfied in the company.

90% employees are satisfied in this company because employee

satisfy the good welfare facility, good salary, give good motivation, good

canteen facility, good working condition, transportation facility etc.., and

10% employees are not satisfied in this company because of low

salary, dis-satisfy of management, dis-satisfy of area, dis-satisfy of the

department, working condition etc.

1090

Yes

90%

No

10%

Yes No


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2) Have you ever tried for you job change in other industry?

Yes No

30% employees have tried for job change in other industry because of

best salary purpose or packages or job purpose, better satisfaction in other

company, for having better prospects, to best transportation facility , try to

career better growth, better profit, job satisfaction etcand 70 %

employees havent tried for job change in other industry because of

general ship, provide the good facility, less work load in the company & co-

operative of boss, no need the other company, satisfy in this company.

7030

Yes

30%

No

70%

Yes No


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3) Are you satisfied for the co-operation between you & your boss?

Yes No

Employees are satisfied for co-operation between you & your boss.

95% Employees are satisfied for co-operation between you & your boss

and 5% employees are satisfied for co-operation between you & your

boss.

595

Yes

95%

No

5%

Yes No


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4) Have you ever discussed about your dissatisfaction with yourboss?

Yes No

Employees have discussed about your dissatisfaction with your boss.

80% Employees have discussed about your dissatisfaction with your boss

and 20% Employees havent discussed about your dissatisfaction with your

boss.

2080

Yes

80%

No

20%

Yes No


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5). Are you aware of any retention efforts in this company?

Yes No

25 out of 100 employee are aware of retention effort in this company but

75% employee arent aware of retention efforts in this company.

7525

Yes

25%

No

75%

Yes No


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6). Do you know of specific retention problems in this company

Yes No

90 out of 100 employee knows of retention problem in this company but 10

out of 100 employee dont know of retention problems in this company.

1090

Ye s

90%

No

10%

Yes No


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7). Do you think management is taking care of you fully?

Yes N0

595

Ye s

95%

No

5%

Yes No


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Employees do think management is taking care of fully 95% means 95 outs

of 100 & employees dont think management is taking care of fully 5%

means 5 outs of 100.

8). Did they discuss with you specific reasons why they were

leaving?

Yes N0 955

Ye s

5%

No

Yes No


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I 5% employee discussed specific reason why they were leaving the job like

work load, Responsibility, Relation with colleagues, people care, freedom,

compensation, transparency etc but 95% employees arent discussed

specific reason why they were leaving the job.

9). What did you dislike about your job in PGL? Please tick the

following factor/ wherever applicable.

Sr.No Employees Dislikingin the Organization

Frequency

1 Work load 13

2 Responsibility 4

3 Relation with colleagues 64 People care 10

5 Freedom 10

6 Compensation 30

7 Transparency 2730

27

10

64

13

10

0

5

10

15

20

25

30

35

/workload

Responsib

ility

Relatio

nwith

colle

agu

es/

Peoplec

are

Freed

om

Compensa

tion

Transpare

ncy

Employee


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This graph shows about the dislikes of 80 Respondents related to their job

in Piramal Glass ltd. KOSAMBA. Among 100 Respondents 13 of them

disliked work load, 4 of them disliked Responsibility, 6 of them Dislike

Relations with colleagues, 27 of them disliked Transparency, 30 of them

disliked Compensation, 10 them disliked Freedom, 10of them disliked

People Care of PIRAMAL GLASS LTD.KOSAMBA.

10). Are you satisfied with the facilities provided by the managementcompany?

Yes No 1585

Yes

85%

No

15%

Yes No


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85% employees are satisfied with the facilities provided by the

management company and 15% employees are not satisfied with the

facilities provided by the management company.

11) What is the factor which affects to continue your job? [Give rate up from5 (best) to 1 (lowest)]

Welfare

Increment

30

10


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Transport

Canteen

Others

25

25

10

2525

10

30

10

0

5

10

15

20

25

30

35

welfare

increm

ent

transport

canteen

others

Employee


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Welfare 30% means 30 outs of 100

Increment 15% means 15 outs of 100

Transport 25% means 25 outs of 100

Canteen 20% means 20 outs of 100

Other 10% means 10 outs of 100

12). Do you want extra facility?

Yes No8020

Yes

20%

No

80%

Yes No


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This chart shown how many respondent of here 20% means 20 out of 100

employees have wants extra facility and 80% means 80 out of 100 have

not want extra facility.


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13). If yes, then which type of facility do you want?

Employee want extra facility like,

Traveling Facility

Giving Overtime when provide traveling Facility

Sport meditation

Loan Facility

Tour Facility

Education loan

Any other facility which covered in company rules & regulation


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14). Does management give proper authority to you against your jobresponsibility?

Yes No

This chart shown how many respondent of here management does give

proper authority to you against your job responsibility 90%means 90 out of

100 and 10% means 10 0ut of 100 management doesnt give proper

authority to you against your job responsibility.

1090

Ye s

90%

No

10%

Yes No


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15) Reasons for leaving the Organization.

Sr. No. Reasons for leaving the organisation Frequency1 Better career Opportunities 142 Compensation 153 Relocation 104 Higher Studies 75 Lack of role clarity & Responsibility 66 Family/Personal Reasons 157 Dissatisfaction related to recognition 8

8 Stagnancy 59 Shift In Industry 910 Bureaucracy 211 Retirement 312 Workload 313 Improper Communication 3

15

8

5

9

2

3 3 3

7

10

1514

6

0

2

4

6

8

10

12

14

16

Bettercare

eropportunities

Compensatio

n

Relocation

Higher

studies

Responsibility

Family

Reasons

Dissatisfy

recgnition

Stagnancy

Shiftin

company

Bureacracy

Retirement

work

load

Improper

communication

Employee


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From the data analysis and interpretation shown above research has


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to come on to the following findings:-

1) It is found that 95% employees are Satisfied in this company because

employee satisfy them with good welfare facility, good salary, give good

motivation, good canteen facility, good working conditions, transportation

facility etcbut 5% employees are dis-satisfied in this company because of

low salary, dis-satisfied of management, dis-satisfied of area, dis-satisfied

of the department etc.

2) It is found that, 30% employees have tried for job change in other

industry because of high salary purpose or packages or job purpose, better

satisfaction in other company, for having better prospects, to get best

transportation facility, try to get better career growth, job satisfaction etc.

and 70% employees havent tried for job change in other industry because

of general shift, provide the good facility, less work load in the company &

co-operativeness of boss etc.

3) It is found that, 95% Employees are satisfied for co-operation between

them & their boss and 5% employees arent satisfied for co-operation.

4) It is found that, 55% Employees have discussed about your

dissatisfaction with your boss but 45% Employees havent discussed about

your dissatisfaction with your boss.

5) Employees do think management is taking carefully 95% means 95 out

of 100 & employees dont think management is taking carefully 5% out of

100%.

6) It is found that, 85% employees are satisfied with the facilities provided

by the management and 15% employees are not satisfied with the facilities

provided by the management.

7) It is found that, 20% employees want extra facility like sport, Meditation.


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Loan Facility, Tour facility, Education loan etc and 80% employees have

not want extra facility.

8) Management does give proper authority to you against your job

responsibility 90% means 90 out of 100 and 10% means 10 out of 100

responded that management doesnt give proper authority to them against

job responsibility.

9) It is found that, 5% employee discussed specific reason why they were

leaving the job like work load, Responsibility, Relation with colleagues,

people care, freedom, compensation, transparency etc but 95% employees

arent discussed specific reason why they were leaving the job.

10) It is found that, 13% disliked work load, 4% disliked responsibility, 6%

dislike relations with colleagues, 27% dislike transparency, 30% disliked

compensation, 10% disliked freedom, 10% disliked people care of disliked

about job in PGL.

11) It is found that, welfare 30%, Increment 10%, Transport 25%, canteen

25% & other 10%.

12) It is found that, among 100 respondents, 14% of better career

opportunities, 15% of Compensation, 10% of relocation, 7% of higher

studies, 6% responsibility, 15% Family reasons, *% dissatisfaction related

to recognition, 5% of Stagnancy,9% of shift in industry, r% of Bureaucracy,

3% of retirement, 3% of workload, 3% of Improper communication ,

reasons for leaving the organization.


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Recommendation1) Satisfaction level is high but company should try to make employee

more satisfied by improving welfare facility, increment in salary,

improve canteen facility, working condition, provide future scope &

opportunity, etc.

2) Company should try to retain employee in the organization.


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3) The relationship between employees & boss is good but company

should try to improve it.

4) The organization should increase the number of awards so

employee gets more motivated towards work.

5) Organization may facilities provided to the employees like

Traveling Facility

Giving Overtime when provide traveling Facility

Sport meditation

Loan Facility

Tour Facility

Education loan, fees facility.

6) Employee should attend each and every training program related to

Employee retention.

7) Organization should visit or training to competent of employee atnational and international level.

8) Organization should give facility to employees children like

education loan, education allowance, education fees etc

. www.Piramal.com

Human Resource Management C.B.Memoria

Research methodology C.R.Kothari


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Internet,www.google.com

. magazine HRM REVIEW Changing Role Of HR


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QUESTIONNAIRE

Sir,

I am Dipika modi.I am a student of MBA (sem-2 nd ), I need your co-

operation to complete my project on Employee Retention provided to

the employees of PIRAMAL GLASS LIMITED,KOSAMBA.

I request you to fill up the questionnaire given below.


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Thank You.

NAME:-

AGE :-

ADDRESS:-

QUALIFICATION:-

1) Are you satisfied in this company?

a) Yes

b) No, Why ___________________________________________

2) Have you ever tried for your job change in other industry?

Yes / No

Why: - ________________________________________________

3) Are you satisfied for the co-operation between you & your

boss/peers?

a) Yes

b) No

4) Have you ever discussed about your dissatisfaction with your

boss?

a) Yes

b) No

5) Are you aware of any retention efforts in this company?a) Yes

b) No

6) Do you know of specific retention problems in this company?

a) Yes

b) No

7) Do you think your management is taking care of you fully?

a) Yes


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b) No

8) Did they discuss with you specific reasons why they were

leaving?

a) Yes

b) No

9) What did you dislike about your job in PGL? Please tick the

following factor/ wherever applicable.

Responsibility / Work load

Relation with collegues / senior

People care

Freedom

Compensation

Transparency

10)Are you satisfied with the facilities provided by the management

/company?

a) Yes

b) No

11)What is the factor which affects to continue your job? Give rate

up from 5(best) to 1(lowest)

welfare

increment

Transport

canteen

others


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12)Do you want any extra facility?

a) Yes

b) No

13)If yes, then which type of facility do you want?

______________________________________________________

______________________________________________________

______________________________________________________

14)Does management give proper authority to you to perform and

achieve the required result?

a) Yes

b) No

15) What is your Primary reason for leaving company?( Piease

Tick)

Better career opportunity

Compensation

Underable impact on health / stress

Discrimination related to

Compensation

Work Load

Recognition

Other (Specify)

Relations at work place

Lack of clarity in Roles & Responsibility

Relocation higher studies

Family, personal Reasons

Dissatisfaction related to

Compensation

Work Load


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Recognition

Other

Job insecurity

improper communication in Dept

Bureaucracy

Retirement

Documents

2003 Employee Retention