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A PROJECT REPORT ON EMPLOYEE RETENTION Undertaken at ABB LIMITED, FARIDABAD Submitted towards partial fulfillment of the requirement for the award of the degree of Master of Business Administration Of MAHARSHI DAYANAND UNIVERSITY, ROHTAK (Session 2005–07) Submitted to: Submitted by: DR. HARIOM SHARMA TARUNA VERMA Faculty (HR) MBA (3 RD ) Semester

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Page 1: ABB Employee Retention

A

PROJECT REPORT

ON

EMPLOYEE RETENTION

Undertaken at

ABB LIMITED, FARIDABAD

Submitted towards partial fulfillment of the requirement for the award of the degree of

Master of Business Administration

Of

MAHARSHI DAYANAND UNIVERSITY, ROHTAK(Session 2005–07)

Submitted to: Submitted by:DR. HARIOM SHARMA TARUNA VERMAFaculty (HR) MBA (3RD ) Semester

INSTITUTE OF MANAGEMENT & TECHNOLOGY(Approved by AICTE, Govt.of India & Affiliated to M. D. University, Rohtak)

(AN NBA - ACCREDITED INSTITUTE)Near Sai Dham, Tigaon Road,

Faridabad – 121002Tel: 0129-2370185, 3096395, 2229137

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ACKNOWLEDGEMENT

The most important task of report writing is expressing my sincere thanks and gratitude

to all those from whose guidance, co-operation and sincere advice I am able to complete

the study and made it possible for this report to be in your hand today.

I wish to acknowledge my thanks to supervisor and project guide Mr. Gaurav Thakral

(AVP,ABB-MCBS) under whose guidance, I had encouragement throughout the study

and without whose guidance and constant support this project could not have been

success. I would also like to thank Prof. Hariom Sharma, Mrs. Manpreet Kaur

(Faculty, IMT) who gave me specific tips to proceed the project from their busy

schedule. Their constant guidance helped me in knowing more about technical aspect as

well as business aspect.

Finally I would like to place a word of appreciation on record for all those who have

directly or indirectly help me for the successful completion of this project.

(TARUNA VERMA)

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PREFACE

Project report exposes to functional areas of management & also provides an opportunity

to be a part of the real corporate world.

This project was given to me with a view to study the actual operation of the company.

Work to be done was to find out the problems in the “Employee Attrition” functions and

suggest areas of improvement wherever needed by direct survey of the employees. A

survey was conducted with some Payroll employees not contracted (Middle level

management) of ABB INDIA LTD. The information was obtained from various

departments of the organization like MCBS, PTPY, PTPS, EBOP, RN, Services,

Turbocharger and Instrumentation.

AREAS COVERED ARE:

1. Competitive Compensation & Benefits

2. Sound Organizational Structure

3. Leadership & Motivating Work Environment

4. Recognition, Respect, Achievement & Rewards

5. Employee Empowerment, Self development & Creativity

6. Economic Security (or Wealth)

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TABLE OF CONTENTS

S.NO. CONTENTS PAGE NO.

1 Chapter-1Industry profile 5-17

2 Chapetr-2Company profile 18-31

a) Human Resource Function in ABB 32-34 b) Business Ethics & Integrity 35-37 3 Chapter-3 a) Objective/Scope of the study 39-40

b) Rationale/Focus/Limitations of the study 40-42d) Hertzberg Two Factor Theory 43e) KEi’s Employee Retention Wheel 444 Chapter-4 45-46a) Introduction of Topic Meaning 47-48 Need, Challenge, Steps 49-57 Strategies, HR Update 58-66 Employee Retention through Employee

Engagement67-70

5 Chapter-5Research Methodology 71-73

6 Chapter-6Data Analysis And Interpretation 74-81

7 Chapter-7a) Findings 82-84b) Conclusion 85-86c) Suggestions 87-88d) Bibliography 89-90e) Annexure Questionnaire 91-95

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"ABB is global leader in power and automation technologies that enable utility and

industry customers to improve their performance while lowering environmental

impact. The ABB Group of companies operates in around 100 countries and

employs about 104,000 people.”

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FACTS ABOUT ABB:-

Headquarters : Zurich, Switzerland

Orders in 2005 : $23.6 billion

Revenues in 2005 : $22.4 billion

Listed on Stockholm, Swiss & New York Exchanges; traded on Virt-X

120 YEARS OF TECHNOLOGICAL LEADERSHIP

The history of ABB goes back to the late nineteenth century, and is a long and illustrious

record of innovation and technological leadership in many industries.

Having helped countries all over the world to build, develop and maintain their

infrastructures, ABB has in recent years gone over from large-scale solutions to

alternative energy and the advanced products and technologies in power and automation

that constitute its Industrial IT offering.

There are many innovations that ABB has brought to the world in the past 120 years. The

company works with customers to engineer and install networks, facilities and plants

with particular emphasis on enhancing efficiency and productivity for customers that

source, transform, transmit and distribute energy.

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A BRIEF HISTORY OF ABB

ASEA + BBC = ABB:-

The “ABB Group” was formed in 1988, when the ASEA AB of Sweden and BBC Brown

Boveri Ltd. of Switzerland merged under the name ABB- Asea Brown Boveri Ltd.

Asea(Allmanna Svenska Elektriska Aktiebolaget) was founded in January 1883

by”Ludwig Fredholm,a Stockholm entrepreneur and BBC Brown Boveri was founded in

1891 by Charles Brown and Walter Boveri.This new company was to be owned on a

50/50 basis by Asea and BBC Brown Boveri.

Utilizing production plants in many countries, the merged group made most of the

advantages of international specialization and became the world’s leading supplier in the

$50 billion electric power industry. At that time ABB controlled as much as a third of

Europe’s business and more than 20 percent of the world market. It successfully

integrated 850 subsidiary companies and 180,000 employees operating in 140 countries.

ABB’s technology competence, broad application know-how and global presence offer

Customer’s easy access to leading electrical engineering and industry automation

solutions and systems. As one of the world’s most global and dynamic companies, ABB

is unique in its multicultural environment and attitude. It is committed to attracting and

retaining dedicated &skilled people and offer to employees an attractive working

environment & excellent development opportunities.

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ABB INDIA HISTORY

The Company was incorporated on 24th December 1949 as Hindustan Electric Company

Limited. In 1965, the Company’s name was changed to Hindustan Brown Boveri Limited

(HBB). Pursuant to the Scheme of Amalgamation of Asea Limited with HBB with effect

from 1st January 1989, the name was further changed to” Asea Brown Boveri Limited

(ABB)” with effect from 13th October 1989.

ABB’s power generation business was globally transferred into the new 50-50 JV with

Alstom in 1999. In India the power generation business has been demerged and

transferred to ABB Alstom Power India Ltd. with effect from 1st April 1999. In

consideration of the transfer of the power business, each shareholder of ABB has been

allotted one share in ABB Alstom Power India Ltd. for every share held in the company.

CAPITAL STRUCTURE:

The Authorized Share Capital of the Company is Rs.500,000,000 and the paid-up share

capital of the Company as at the end of the financial year ended 31st December 2005 is

Rs.414,183,560, consisting of 41,418,356 Equity Shares of the face value of Rs.10 each.

ABB’s origins in India go back several decades, when Asea set up as an agency in 1928.

INDUSTRY CATEGORY :-

For more than 100 years, ABB and its predecessor companies have set the pace for

innovation in technologies to harvest energy, improve productivity and safeguard the

environment, increase profits, and more. ABB companies are in the following field:-

Automation

Building

Cement, minerals and mining

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Chemical

Commercial and industrial buildings

Consumer

Electric utilities

Foundry

Gas utilities

Life sciences

Manufacturing

Marine and turbo charging

Metals

Oil and gas

Pharmaceuticals

Power generation

Power transmission & distribution

Printing

Refining

System integrators

Tele and data communication

ABB deliver their products and expertise through channel partners such as original

equipment manufacturers, engineering, procurement and construction firms, wholesalers

and distributors.

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A LEADER IN ALL MAJOR MARKETS:-

ABB enjoys leading positions in all major markets in the world, including growth

markets such as China and India. It is profiting from ongoing power infrastructure

development in the U.S. and Middle East. Their automation technologies business has

recorded strong growth in the oil and gas industry, metals, minerals and marine sectors.

They directly benefit from their global operations and supply footprint which allows them

to lower the cost of their products. Their robotics division, for example, is now based in

Shanghai close to key customers and a booming automotive market. But, at the same

time, they still rely on the more mature markets of Europe and North America for sales in

their traditional regions and technology development.

Maintaining market leadership also depends on a continuing commitment to R&D and

technology innovation. In 2005, they spent $960 million on research and order-related

development in their two divisions – a six percent increase over 2004.

ABB MISSION-

“ As one of the world’s leading engineering companies, We help our customers to use

electrical power effectively and increase industrial productivity in a sustainable way.”

ABB VISION-

ABB delivers attractive profitable growth by providing leading power and automation

technologies to customers throughout the world. We help them to improve their

Performance and productivity as well as to save energy and lower environment impact.

Innovation and Quality are the key characteristics of our product and service offering. We

built on long lasting and value creating partnerships with customers and suppliers.

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“By 2009, ABB will be recognized as top global engineering company in term of

market impact, growth and profitability, Value creation, Sustainability and Ethical

behavior.”

STRATEGY

Build on our leadership in power and automation technologies for utility and industry

customers.

CUSTOMERS

The customers are the heart of our business and all our actions must lead to delighting

them.

PEOPLE

Leadership based on respect for value, trust &accountability – Say what we mean, mean

what we say.

CULTURE

Shared Intentions – “ Our ABB”, open communication & dialogue, fast decisions,

execution, disciplined culture, acting in overall interest of ABB.

GOALS

Our goal is to create value for our stakeholders by meeting the needs of our customers,

employees & the communities where we do business.

STRUCTURE

Slimmer structure reduces complexity and reflects focused portfolio.

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ABB BUSINESS PRINCIPLES:-

1. Responsibility

Accountability

Delivery

Continuous improvement

2. Respect

Leadership

Professionalism

Commitment

3. Determination

Profitability

Quality

Technology/Innovation

BRAND PILLARS:-

Leading - edge technology; Pioneering spirit; at home everywhere

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ABB GROUP – BUSINESS STRUCTURE

Global Outlook

ABB TECHNOLOGY AT WORK AROUND THE WORLD:-

1. UNITED STATES

2. MEXICO

3. BRAZIL

4. FINLAND AND ESTINO

5. GERMANY

6. SOUTH AFRICA

7. RUSSIA

8. INDIA AND CHINA

9. AUSTRALIA

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ECONOMIC OUTLOOK:-

The geographical distribution of consolidated orders in 2005, 2004 and 2003 was

approximately as follows:

The geographical distribution of the consolidated revenues in 2005, 2004 and

2003was approximately as follows:

The following table presents supplemental information on key data for ABB and

new organizational structure that took effect as of January, 2006.

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“ABB INDIA”

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INTRODUCTION:-

(Ranked 71 in FE 500 listing)

(Ranked 22nd in ET 500 listing)

(Star MNC of 2005 & Top NIFTY Performer)

ABB’s vision is to be “The Value Creator”. Working closely with the customers,

understanding their business needs and local market conditions, they ensure their

Customer's success through their innovative products, systems, services and complete

solutions; combining world-class technologies, proven expertise and strong local insight.

Inturn, customer's success is echoed as Value for their stakeholders i.e. shareholders,

employees and the communities in which they operate.

ABB India serves utility and industry customers with the complete range of

ABB’s offerings. The company has a vast installed base, extensive local manufacturing at

8 units and a countrywide marketing and service presence. As a strategic thrust to

standard products business, ABB has a national channel partner network, which ensures

geographical reach and penetration of its products and services.

“ ABB considers INDIA as a ‘high priority focus country’ and is committed to

expanding its activities here. There will be an increasing cost migration from the

West to countries such as India.” By Fred Kindle (President & CEO, ABB Group)

In order to leverage India’s intrinsic technology strengths and the vast pool of

highly qualified software professionals, ABB has set up a global R&D Center in

Bangalore, which focuses on Industrial IT development and deployment. It also helps

maintain and support range of software intensive products and acts as a partner for the

ABB R&D centers as well as business areas within the group.

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ABB India has 8 manufacturing units, 26 marketing offices, 8 service centers and 3

training centers across the country. In addition to these, the company has a channel

partner network of around 500 partners to facilitate market penetration for its fast

growing standard products and services business. ABB India’s capital expenditure in

2006 included an investment of US$ 10.9 million.

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ABB BUSINESS IN INDIA :-

ABB, the world's no. 1 in power technologies, provides utilities, industries and channel

partners with access to a rich portfolio of technologies. Businesses are:-

1. POWER TECHNOLOGY

2. AUTOMATION TECHNOLOGY

3. BUILDING SYSTEMS

POWER TECHNOLOGY DIVISION IN INDIA

Power Technology Division in India has the following Product and Project Businesses:-

PROJECT BUSINESSES:-

Power systems

T & D Systems, Utility consulting and power system services , HVDC & FACTS

Utility automation

Network Management, Substation Automation, Plant Automation, Utility

Communication.

PRODUCT BUSINESSES:-

High Voltage Products

HV circuit brakers , Disconnectors, HV Capacitors, Instrument Transformers.

Medium Voltage Products

MV Switch Gears and Substation Automation Products.

Transformers

Power Transformers and Distribution Transformers

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AUTOMATIOM TECHNOLOGY DIVISION IN INDIA

Automation Technology Division in India has Product Businesses, Project Businesses

and Manufacturing Automation.

PRODUCT BUSINESSES:-

Process Automation

Petroleum, chemical, Consumer, Minerals, Mining, Paper and Metals Industries.

Automation products

Motors, Drives, Power Electronics, Instrumentations, HT Machines, Electrical wiring

Accessories and other low voltage products

Manufacturing Automation

Robotics and related systems for Manufacturing, Consumer and Automative

industries.

BUILDING SYSTEM DIVISION IN INDIA

ABB India offers a single window approach for the entire spectrum of building systems.

Complete building solutions under one roof-

Commercial & Industrial Buildings

Infrastructure & Industries

Pharmaceuticals , Biotechnology and Healthcare

Power plants, Marine and offshore

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LOCATIONS IN INDIA:-

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ABB PRODUCTS(BRANCHES) IN INDIA

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Moving Around ABB – Objectives

The main objectives of ABB company are:-

Value creation

Strategic Business objectives of supplying systems, products, engineering &

services to the regional customers.

Products development( change & improvement based on customer’s need &

expectations)

Regular system review in accordance with standard and business needs to ensure

its continuing suitability, adequacy and effectivenes

Efficiency gain

Improved transparency and reporting quality

Environment and occupational health & Safety objectives

Enhanced competitiveness

Compliance and internal controls

Based on a group – wide shared strategy assigning clear roles and responsibilities

to key stake holders

Using the international assignment procedure to facilitate international transfers

by ensuring consistency and coherence.

HEAD OFFICE/ REGISTERED OFFICE:-

2ND FLOOR, EAST WING

KHANIJA BHAVAN

49, RACE COURSE ROAD,

BANGLORE- 560001

INDIA

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ORGANIZATIONAL STRUCTURE

ABB CULTURE

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CUSTOMERS OF ABB - INDIA :-

Reliance Energy

Hyundai

Dr.Reddy’s

Samtel

DMRC

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Grasim

ONGC

Tata steel

Balco

Bharat forge

HP Invent

Indian Oil

Hindustan Petroleum

(a) MAJOR HUMAN RESOURCE FUNCTION IN ABB:-

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(b) HR PROCESS:-

PERFORMANCE MANAGEMENT SYSTEM:-

ABB’s performance management system is a strategic tool, to facilitate employees to

align their personal objectives and efforts to the organization’s objectives. It’s a paperless

PMS, which can be accessed through Café-HR (Employee self service tool)

Café-HR helps employees to view, create & maintain data any time, anywhere

through their web-browser.

TRAINING AND EVENT MANAGEMENT SYSTEM:-

ABB’s training and event management system is a tool that helps employees to

develop their skills and competencies in line with business needs. The training needs are

both managers recommendations as well as employees self initiatives. ABB’s training &

event management is again an online tool accessible through Café-HR.

INCENTIVE SCHEMES:-

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The variable pay component (VCTC) of the total cost to company (CTC) for

management staff, reflects maximum earnable amount that an employee can earn based

on performance .The incentive plans, based on which the variable pay is paid out are

follows. There are three kinds of incentive plans that are applicable to management staff:-

1. Standard Incentive plan

2. Region marketing Incentive plan

3. At Sales Incentive plan

E-RECRUITMENT PROCESS IN ABB:-

The steps in the e-Recruitment process in ABB are very much relying on the existing

e-HR applications; now in operational use in more then 25 countries.

(b) BUSINESS ETHICS AND INTEGRITY:-

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BUSINESS ETHICS ARE AN INTEGRAL PART OF ABB’S WAY OF DOING BUSINESS :

The business principles of responsibility, respect and determination were formulated to

guide the way ABB employees behave towards each other, towards the customers and

business partners, and towards shareholders and the communities where ABB does

business.

ABB BUSINESS ETHICS AND INTEGRITY :

The credibility and integrity depends on high business ethics standards. All ABB

companies and employees must conform to the relevant laws and regulations of the

countries in which they operate and fulfill their obligations in a responsible manner. They

must insist on honesty and fairness in all aspects of their business and expect the same

from their partners.

The ABB Group subscribes to the basic principles in the International Chamber of

Commerce, ICC, Rules of Conduct, 1999 Revised Edition and the OECD Convention

from 1997.

BUSINESS ETHICS STANDARDS :

ABB expects all its employees to uphold the highest standards of ethical behavior and

integrity.

GUIDELINES :-

Apply "zero tolerance" to ensure strict adherence to local and international laws

and regulations, as well as to ABB Group ethical standards.

Ensure all ABB business transactions are fully and fairly recorded according to

the company's accounting principles.

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Ensure continuous training and awareness for employees on how to handle ethical

issues, as well as timely advice and guidance.

Regularly monitor ethical conduct and ensure that accessible systems are in place

for employees or others to report potential violations.

ABB expects from its employees a sound level of allegiance to the Group. This includes

adherence to the Group’s non-competition policy by persons possessing significant

confidential information.

The Human Resources Team in India

Their customers are the employees of ABB and their business is to provide solutions and

services to them ontime, everytime ,anytime and to leverage the human capital.

Presenting the HR Team in ABB India.

Vadodara

Bangalore

Corporate Research Centre Bangalore

New Delhi

Anjan Chatterjee

Abhijeet Jain

Manoj Kumar Pathak

Ajay Himanshu

Vijender Singh

Vijay Chaudhary

Ranjani Manjunath

Mumbai

Nashik

DEPARTMENT’S IN ABB FBD.:-

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1. MCBS (HVAC,IBMS)

2. PTPS , PTPY, EBOP, PTHV, PTUA

3. RN

4. SOX AUDIT

5. SERVICES

6. TURBO CHARGER

7. INSTRUMENTATION

BUSINESS PROCESSES IN ABB FARIDABAD:-

Market Strategy & Analysis

Sales & Contract Management

Process planning

Design and Development (Excluded in the scope of certification)

Supply Management

purchasing

Project Management

Order handling

Process validation

Identification and traceability

Control of nonconforming product

Service

Measurement and Monitoring — Product/Service

Product and /or service performance

Control of measurement and monitoring equipment

Support Processes

Resource Management (HRM, Information, Infrastructure)

Communication and Customer Focus, Document and record control

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INTRODUCTION:-

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Employee retention is a major cause of concern today not only in the developed

economies like the US (where a lot of attentions devoted to this issue)also in developing

economies like INDIA. It is expected that by 2010, there would be around 10 million

more jobs than the number of qualified/ skilled people in the job market. Analysts

attribute a combination of factors like retirement of baby boomers and less number of

workers in the age group of 25 to 35 as reasons for this shortage. In a scenario where

getting new people to fill the job vacancies is difficult, retaining the existing employees

become s all the more critical for the HR Managers.

Over two-thirds(70%) of HR managers state that employee retention is a primary

business concern, while 40% of HR managers report an increase in worker turnover

during the past eighteen months. Though HR managers currently find employee

retention a business challenge, long term demographic changes, such as the retiring Baby

boomer population have the potential to aggravate this issue.

With the growth in the economy, acquisition and retention of employees

have become the key challenges for HR managers in INDIA. This issue attributed to the

changing lifestyles, death of motivation, increasing opportunities for assignments abroad

and decreasing loyalty towards the organization. Retention of excellent employees is one

of the most important challenges in organizations today.

In order to address these issues, this study designed to help employers to better

understand turnover and retention challenges. This study confirms that employers view

workforce retention as one of the most critical issues facing them and identifies strategies

& techniques for retaining the best employees while the competition for human talent

escalates.

OBJECTIVES:-

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To find out the root cause of existing employee turnover problem and retention needs of

top talent.

To measure the employee overall satisfaction.

To measure current areas of concern and identifies opportunity for Improvement.

Create an implementation plan (strategy) to improve employee retention.

To improve management‘s ability to hire, motivate and retain staff.

SCOPE :-

This project will generate:-

New strategies and techniques for retaining the employees in ABB

Identification of the root cause(s) of employee turnover

A summary of retention strategy

An implementation plan to improve employee retention and retention matrices.

Increase the company productivity/Profit.

RATIONALE:-

Business success is more dependent than ever before on “MANPOWER”. In

Today’s scenario, it is not difficult to search out the Manpower but it ‘s much more

difficult to find & Keep the “talented & Skilled Manpower” which could be more

profitable for the organization .

In today’s turbulent, often chaotic environment, commercial success depends

on employees using their full talent. Now, every organization wants to become a

“Leading and Successful Organization” in the long run. It’s on the grooming way. Every

corporation wants to retain the excellent & skilled employee, issues relating to Selection,

retention & Compensation have become all the more important. Because Employees are

like the strongest “Brand Ambassadors “for every company. Retention of excellent

employees is one of the most important challenge in organizations today.

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Hence the rationale behind doing this project is to “Identify the root cause of

attrition of employees and management’s ability to hire, motivate and retain the staff. So

that it could become the Market Leader with skilled teamwork and could improve the

productivity.

FOCUS AREA:-

This in- house project shows that employee attitudes are a better predictor of future

employee behavior than past behavior. The Focus area are as follows:-

Overall Employee satisfaction towards organization

Employee Loyalty

Work Environment(Teamwork/Real collaborative work)

Workforce Motivation and Engagement

Corporate Culture

Pay , Benefits and Compensation

Supervisor/coworkers Relations

Training & Development

Corporate communications

Employee Empowerment/Economic Security/Respect and

Advancement etc.

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LIMITATIONS:-

1. Insufficient data for project work:-

The sample size is small to reflect the opinion of whole organization.

2. Lack o f Time:-

The time provided for conducting the study also limited its scope and coverage.

3. Answers given by respondents have been believed to be taken for granted to truly reflect

their desire.

4. Sometimes respondent were quite engaged with their job to provide the assistance.

5. It was difficult to find out the root cause of attrition rate of other organizations

(competitors) due to the absence of reliable source for collecting the data.

LITERATURE REVIEW

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1. Subsequent research has indicated that actual alternatives are a better predictor of

individual turnover than perceived opportunities. Research on the impact of

unemployment rates as a proxy for actual opportunities in employee turnover

revealed that unemployment rates affected the job-satisfaction/turnover intent

relationship but not actual turnover (Kirschenbaum & Mano-Negrin, 1999).

2. Tang et al's (2000) study confirmed the link between commitment and actual

turnover and Griffeth et al's(2000) analysis showed that organizational

commitment was a better predictor of turnover than overall job satisfaction.

3. Allen & Meyer (1990) investigated the nature of the link between turnover and

the three components of attitudinal commitment: affective commitment

refers to employees' emotional attachment to, identification with and involvement in

the organization; continuance commitment refers to commitment base on costs that

employees associate with leaving the organization; and normative commitment refers

to employees' feelings of obligation to remain with the organization. Put simply,

employees with strong affective commitment stay with an organization because they

want, those with strong continuance commitment stay because they need to, and those

with strong normative commitment stay because they feel they ought to. Allen and

Meyer's study indicated that all three components of commitment were a negative

indicator of turnover.

4. Griffeth et al (2000) found that overall job satisfaction modestly predicted

turnover. In a recent New Zealand study, Boxall et al (2003) found the main reason by

far for people leaving their employer was for more interesting work elsewhere. It is

generally accepted that the effect of job satisfaction on turnover is less than that of

organisational commitment.

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HERTZBERG TWO FACTOR THEORY:-

Job Dissatisfaction Job satisfaction

Working conditions work content

Pay Autonomy

Hours The challenge

Relativity Achievements

Security Praise & recognition

Lack of prospects Responsibility

Poor communication Good relationship

Poor organizational structure

Lack of direction

(Hygiene factors) (Motivation factors)

Neither two are related.

No amount of effort in reducing elements related to job dissatisfaction will result

in any changes to job satisfaction & vice – versa. E.g. If you increase pay, you will

not improve job dissatisfaction.

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THE KEI’S EMPLOYEE RETENTION WHEEL:-

The first step to improving employee retention is to understand why employees stay with

their current organization. Many "experts" dwell on the reasons employees leave, which

is not as important or revealing as the reasons they stay.

Kei’s Employee Retention Wheel is a tool to measure the core needs that keep employees

successful at their jobs, thus reducing the high costs associated with unwanted employee

turnover.

“ Controllable employee turnover” is cause by only two things: ‘Bad hiring’ and ‘Bad

treatment.’ Employers try numerous things to keep good employees. However, studies

show that the programs in the outer two rings do not have as great impact on retaining

employees as the process identified in the center of Kei’s Employee Retention Wheel.

Employers need to focus on providing supervisors with the tools that implement the

processes at the center of the wheel.

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EMPLOYEE RETENTION

MEANING OF RETENTION:-

The act of retaining/keeping of a thing within one’s power or possession is

“RETENTION”.

MEANING OF EMPLOYEE RETENTION:-

The holding/retention of employee in their organization is known as “Employee

Retention”. In today’s changing, competitive and often chaotic environment, the retention

of excellent employee is one of the most important challenge in the organizations.Yet in

spite of the myriad of available theories & practices, managers often view employee

motivation as something of a mystery.

EMPLOYEE RETENTION FACT :  

Employee retention is obviously important in a business's

ability to keep the most talented people in the organization and avoid unwanted turnover.

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NEED OF EMPLOYEE RETENTION:-

BUSINESS success is more dependent than ever before on people. Strategies can be

copied. Technology can get outdated. Thus, the human capital is getting to be the real

currency of the new economy.

Companies are challenged to work doubly hard to remain competitive to survive. In

meeting this challenge, therefore, organizations need to retain their high performers and

for some, hire individuals who can help bring the organization closer to its goals. Thus,

the "war for talent" might even be more apparent in these tough conditions.

In today’s turbulent,often chaotic environment, it is getting more difficult to find and

keep talented workers.Each and every day good employees quit their employers for better

jobs elsewhere. U.S. businesses spend over $200 billion annually recruiting and replacing

their employees.  Average organizations spend more money on recruitment and

replacement programs, while good organizations invest in employee retention. Now,

more than ever, it is important to become an employer of choice organization.

Successful organizations realize employee retention and talent management are integral

to sustaining their leadership and growth in the marketplace. Becoming an Employer of

Choice by retaining high-caliber employees in today's labor market should be the highest

priority.

THE EMPLOYEE RETENTION – CHALLENGE:-

In a world where technologies, processes and products are quickly duplicated

by competitors and the pace of change and level of competition are constantly increasing.

People are the key to the most reliable source of advantage – better service, increased

responsiveness, strong customer relationships , creativity and innovation that keep a

company one step ahead .

At the same time, however, it’s getting tougher to hold on to those employees.

Unemployment is at its lowest point in a quarter of a century. Retirement is expected to

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reduce management ranks by 20% or moreover the next 5 years. Younger, highly mobile

workers are bringing new values and expectations to the workplace, complicating

retention efforts. And after years of turn moil in business, the traditional sense of

company loyalty has disappeared among virtually all employees.

Thus the problem of employee retention is having an impact far beyond front

line managers and beyond even the HR department. It affects the performance of the

entire company – meaning that the ability to keep good employees is rapidly becoming a

critical competitive weapon.

WHY EMPLOYEES QUIT THEIR JOB:-

Employee leave the organization for many reasons:-

Some leave for better paying jobs elsewhere.

Dissatisfaction in their present job to seek alternative employment.

Due to poor working conditions, Lack of opportunities/Support for advancement,

conflict, Health hazards.

Resolve performance and attitude problems, inadequate compensation.

Others depart because they do not fit the culture. 

Many more exit because their managers and supervisors are not properly trained.

However, there are five important areas that motivate people to leave their jobs. 

1. Poor match between the person and the job

2. Poor fit with the organizational climate and culture

3. Poor alignment between pay and performance

4. Poor connections between the individual, their coworkers, and the supervisor

5. Poor opportunities for growth and advancement

These five P's can be addressed successfully.  Employee retention begins by paying

attention to what causes low job satisfaction as well as what attracts and retains your

workforce. 

EMPLOYEE TURNOVER IS EXPENSIVE:-

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A continual effort to replace departing workers—to keep the revolving door full,

instead of stopping it altogether—is bleeding organizations dry. It’s expensive to

constantly replace people that turnover. The cost of attracting, recruiting, hiring, training,

and getting new people up to speed is tremendously more costly as well as tremendously

more wasteful than most realize. Just consider these costs:

“SAP determined is cost $678,000 in recruiting, training, and missed sales opportunities

every time an experienced sales person quit.”

“A typical medical center spends over $2 million each year replacing staff members.”

High employee turnover is a fact of life these days in many industries. Yet the costs to

recruit and train new employees eat away at bottom line. To stay competitive, its not

only necessary to attract the best possible employees for the job, but develop a clear-cut

strategy to retain them.

PRODUCTIVITY AND PROFITABILITY IS DIRECTLY TIED TO EMPLOYEE RETENTION:-

“ Studies from the Gallup organization show that employees who have an above-

average attitude toward their work will generate:-

38 percent higher customer satisfaction scores

22 percent higher productivity

27 percent higher profits for their companies”.

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That’s why the retention of skilled and talented employees is very essential in

organizations today.

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"Today’s work force brings many things to the table, creative thinking, new ideas,

boundless energy and some issues that have not been dealt with in the past.

Continually it is made apparent that employees are not willing to follow in the

footsteps of prior generations.” Donna J. Murphy, Senior Vice president, Jefferson

Bank

WHEN DOES EMPLOYEE TURNOVER BECOME PROBLEMATIC?

There is no set level of employee turnover above which effects on the employing

organization become damaging. Everything depends on the type of labour markets in

which we compete. Where it is relatively easy to find and train new employees quickly

and at relatively little cost (i.e where the labour market is loose), it is possible to sustain

high quality levels of service provision despite having a high turnover rate. By contrast,

where skills are relatively scarce, where recruitment is costly or where it takes several

weeks to fill a vacancy, turnover is likely to be problematic from a management point of

view. This is especially true of situations in which they lose staff to direct competitors or

where customers have developed relationships with individual employees as is the case in

many professional services organizations.

Some employee turnover positively benefits organizations. This happens whenever a

poor performer is replaced by a more effective employee, and can happen when a senior

retirement allows the promotion or acquisition of welcome 'fresh blood'. Moderate levels

of staff turnover can also help to reduce staff costs in organizations where business levels

are unpredictable month on month. In such situations when business is slack it is

straightforward to hold off filling recently created vacancies for some weeks.

When executives attempt Employee Selection internally, they often focus on short term

goals, like sales quotas, rates of return, and the like. Unfortunately, this myopic

conception of Employee Selection often leads executives down the wrong path.  The truth

is that building a tight ship means hiring the right people. As the saying goes, "Gold in,

Gold out.”

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EMPLOYEE RETENTION:A VITAL STRATEGY:-

 Employee retention is most critical issue facing corporate leaders as a result of the

shortage of skilled labor, economic growth and employee turnover. This project explores

all aspects of the workforce stability issue in the face of unprecedented churning in the

employment market with a focus on retaining their employees. This is one of the hottest

topics for corporate leaders in all fields in the whole world.

Retaining employees means lower training costs and a familiar well established

workforce. Retention requires keeping employees happy, which has other benefits as

well.

Good pay and benefits can, in many industries, be a win-win situation. Employees get

more of what they want, and by minimizing turnover, customers get better service and

shareholders get more profits.

PAST AND CURRENT SCENARIO OF EMPLOYEE RETENTION

The way it was………In the past, the jobs were considered desirable and sufficient

candidates could be found to fill most critical jobs. Moreover, once employed, workers

would often spend their entire careers in State Service. In areas where there was turnover,

new employees could be recruited easily.

The way it is……….today there is a high demand in the public and private sectors for

workers in critical areas such as health care, information technology, engineering,

accounting and auditing. The supply of qualified workers is limited and good workforce

planning requires a twofold approach of aggressive recruitment and innovative retention

strategies. Retention policies need to focus on elimination of unwanted turnover.

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EMPLOYEE RETENTION IN THE NEW MILLENIUM

Today's labour 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.

New supervisors must be prepared to be collaborative, supportive, and nurturing of their

people. The old style of "my-way-or-the-highway" style of management 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 following five families (Keeping Good People)

1. Environmental

2. Relationship

3. Support

4. Growth

5. Compensation

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

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STEPS FOR “EMPLOYEE RETENTION PROGRAM”:-

There are eight steps for perfecting programs to keep the most talented employees:

Measure and monitor turnover and retention data;

Develop fully loaded costs of turnover;

Diagnose causes and needs for retention improvement;

Explore range of solutions;

Match solutions to needs;

Forecast value of retention solutions;

Calculate ROI of retention solutions; and

Make adjustments and continue.

USING BENEFITS AS AN EMPLOYEE RETENTION TOOL

Employee benefits provide a powerful tool for attracting and retaining top-notch

employees. To design a retention-oriented benefits program, use the following steps:

1. Create a benefits mission statement.

2. Identify your audience and their specific benefits wants and needs.

3. Define a benefits budget that fits within the financial constraints of the company.

4. Give employees as much control as possible over their benefits.

Communicate the plan.

BENEFITS OF “EMPLOYEE RETENTION PROGRAM”:-

Save money

Less unwanted tur

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Higher morale within a specific department

Ensure continuity of customer service and satisfaction b’coz turnover disrupts the

connection between customers and the company

Improve quality (satisfied employees deliver higher quality products and

services)and remain competitive

Better understanding of what’s needed to effectively manage a particular team

High value for a low cost means that with less turnover, fewer problems and more

Productivity occurs. The money saved is significantly greater than the cost.

“ Satisfied employees contribute to greater business benefits for the employer.

Foremost, businesses would experience an increase in productivity. Happy

employees perform better than disgruntled and stressed ones. Businesses would also

see improved recruitment and retention. Additionally, there would be lower rates of

absenteeism and improved customer service. Overall, there would exist a more

motivated, satisfied and equitable workforce,”NELSON,2000

RETAINING KEY EMPLOYEES:-

By focusing on key players who truly make or break the business, we can get the most

leverage from our employee retention efforts. Retaining key employees requires a five-

step process:

1. Identify key employees and positions.

2. Know what motivates your key employees on an individual level.

3. Provide a deferred compensation plan.

4. Monitor and manage key employee performance/Review key employees annually.

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STRATEGIES FOR RETAINING THE EMPLOYEES

Today's workers are no longer inclined to stay at one company for the duration of their

careers. The most talented professionals often are courted by other businesses, and the

effects of turnover can be costly. The time and money it takes to recruit, rehire and retain

can quickly cut into a firm's bottom line. Employee Retention Strategies helps

organizations provide effective employee communication to improve commitment and

enhance workforce support for key corporate initiatives.

MAIN FIVE STRATEGIES FOR RETAINING EMPLOYEES:-

Retaining employees and developing a stable work force involves a two-step process -

understanding why employees leave in the first place, and developing and implementing

strategies to get them to stay.

Overcoming these reasons requires the implementation of five distinct categories of

retention strategies:

1. Environmental strategies create and maintain a workplace that attracts, retains

and nourishes good people.

2. Relationship strategies focus on how you treat your people and how they treat

each other.

3. Support strategies involve giving people the tools, equipment and information to

get the job done.

4. Growth strategies deal with personal and professional growth.

5. Compensation strategies cover the broad spectrum of total compensation, not just

base pay and salary.

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BEST PRACTICES:   EMPLOYEE RETENTION

In building retention programs, there are some more important strategies which exist as

below :-

A CHANGING WORK FORCE AND WORKPLACE

Fundamental changes are taking place in the work force and the workplace that promise

to radically alter the way companies relate to their employees. Hiring and retaining good

employees have become the chief concerns of nearly every company in every industry.

Companies that understand what their employees want and need in the workplace and

make a strategic decision to proactively fulfill those needs will become the dominant

players in their respective markets.

The fierce competition for qualified workers results from a number of workplace trends,

including:

A robust economy

Shift in how people view their careers

Changes in the unspoken "contract" between employer and employee

Corporate cocooning

A new generation of workers

Baby boomers striking out on their own after hitting corporate ceilings

Changes in social mores

Life balance

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Concurrent with these trends, the emerging work force is developing very different

attitudes about their role the workplace. Today's employees place a high priority on the

following:

Family orientation and Autonomy

Sense of community

Quality of life issues

Volunteerism

Flexibility and nonconformity

To hold the people (employee), it’s necessary to work counter to prevailing trends

causing the job churning.

CAREER / SELF DEVELOPMENT:-

It is so important B’coz employees want to progress. Career development is the

responsibility of employee, but giving a clear line of sight for career growth to the

employee is the employer’s responsibility. The extent to which the employer assists

in the process improves both the responsibility between the employee and employer

and creates more value for both parties.

The company can encourage this process by:-

Sharing information about future business vision and the skill sets that will be

needed.

Mentoring the employee, giving guidance and suggestions.

Facilitating the training that will be paid for by the company.

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CULTURE AND ENVIRONMENT:-

It may seem obvious that employees will tend to stay with an organization that makes

them feel comfortable- where stress is minimized , full safety measurement/wellness

occurred. And they feel valued and respected. However , too many companies still

operate with a culture based on control and fear, rather than one that provides well

defined direction and values, and emphasizes care for customers and employees alike.

The implication is clear: “The more enriching the work environment, the more likely

to retain a staff of satisfied, productive employees.”

To maintain low levels of turnover and high level of employee satisfaction, four types

of culture exists:-

Culture of choice

Culture of balance

Culture of care

Culture of development

REWARDS AND RECOGNITION PROGRAMS:-

(Motivate and retain the most valuable assets)

Employees want to be recognized for a job well done. Rewards and recognition

respond to this need by validating performance and motivating employees toward

continuous improvement. Rewarding and recognizing people for performance not

only affect the person being recognized, but others in the organization as well.

When the reward system is credible, rewards are meaningful; however, if the reward

system is broken, the opposite effect will occur.Unrecognized and nonvalued

performance can contribute to turnover. Recognition for a job well done fills the

employees' need to receive positive, honest feedback for their efforts.

Manager must “ offer the tangible intrinsic rewards that give value experience,”

NELSON,2000.

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Recognition should be part of the organization's culture because it

contributes to both employee satisfaction and retention. Rewards are one of the keys to

avoiding turnover, especially if they are immediate, appropriate, and personal. A Harvard

University study concluded that organizations can avoid the disruption caused by

employee turnover by avoiding hiring mistakes and selecting and retaining top

performers.

PAY , BENEFITS AND INCENTIVES:-

Most employees feel that they are worth more than they are actually paid. There is a

natural disparity between what people think they should be paid and what organizations

spend in compensation. When the difference becomes too great and another opportunity

occurs, turnover can result. Pay is defined as the wages, salary, or compensation given to

an employee in exchange for services the employee performs for the organization.

The employee incentive programs help companies to :

Promote employee loyalty and retention

Reward outstanding employee performance

Motivate key employee behaviors: safety, cost savings, wellness, customer

satisfaction, quality, attendance and more

Measure performance improvement

EMPOWERMENT:-

The employee needs to feel a sense that they are in control of their worlplace options

such as flexible work schedules to give the power of decision making etc.

LEADERSHIP:-

To a great extent , an employee’s experience at a company is shaped by his or her Boss:

employees rely on supervisors for everything from communication to promotions and

rewards. Not surprisingly, a number of studies show that ineffective supervisors – that is,

“ bad bosses”-are the largest single factor driving employee turnover. Companies need to

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select the right people for supervisory positions, and then offer them development

opportunities to make sure they continue to enhance their leadership and communication

skills.

PROFESSIONAL GROWTH(TRAINING AND DEVELOPMENT):-

Today’s employee know that a successful career depends on constant

learning and on picking up skills and experience that will make them more employable in

the open market. That means that access to ongoing training and development is

important to them, and a strong incentive to stay with a company.

These programs provide a positive perception to employees that their employer is willing

to invest in their continued professional growth, which will not only have a positive

impact on productivity and effectiveness in their respective roles, but also on the

employer's ability to retain individual employees.This is a fundamental paradox of

employee retention. By preparing people to leave, a company can actually encourage

them to stay.

MEANINGFUL WORK AND OWNERSHIP:-

People need to know they are making a difference and being effective in their jobs.

Expectations and job responsibilities/description need to be clearly defined so that

employees can understand their rolesand see how their jobs are linked to the

organization’s overall success. Employees must also be involved in determining how

work is done, so that they have a sense of ownership and an opportunity to contribute to

improvements in the company’s performance.

FAMILY FRIENDLY BENEFITS :-

Benefits that make it easier for employees to balance work with family obligations have

been shown to increase productivity, reduce absenteeism and lower turnover rates.

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HR UPDATE

As the leading edge of baby – boomers become eligible for retirement, experts believe

that all business sectors will need to become more strategic about Identifying , cultivating

and keeping staff with vital skills.

TOOLS TO TUNE – UP RETENTION EFFORTS:-

Experts suggest following tips:-

FIND OUT WHAT EMPLOYEES THINK:

A well crafted survey, administered by an outside provider to ensure confidentiality

can be well worth the investment to help a company pinpoint recurring issues that

contribute to employee turnover or dissatisfaction. A more focused approach on this

theme is to identify top performers and invite them to individual discussions on job

satisfaction and career planning.

SET A CLEAR AND CONSISTENT TONE FROM TOP:

In a 2005 SHRM (Society for HRM) workplace forecast 92% of executives said

employee alignment with business goals was important to overall success. However ,

many of those same leaders do not effectively communicate key business objectives or

the non financial elements that makes the company distinctive. The effectiveness of this

step can be measured in regular employee engagement surveys or in smaller focus groups

held on an annual or semi annual basis.

STRENGTHEN THE MANAGER – EMPLOYEE RELATIONSHIP:

Retention studies consistently show that the supervisor – employee relationship is

one of the biggest factors in whether the worker chooses to stay or leave a job.

CONSIDER FLEXIBLE WORK ARRANGEMENTS:

Nearly 60 % of employees in the SHRM study said “ Work / life practices” such as

flextime, telecommuting and compressed workweeks – were very important to job

satisfaction.

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INVEST IN A CULTURE OF LEARNING:

When times get tough, companies frequently pull back spending on conferences,

seminars and learning opportunities to focus solely on day – to – day operations.

However, that approach can stifle new ideas, creativity and ultimately lead to worker

burnout.

By taking these steps, the company’s ability to keep good workers can be improve

when new opportunities arise.

CONDUCT EXIT INTERVIEWS WITH EMPLOYEES WHO RESIGNS:

Feedback can be used to make positive changes.

ORGANIZATIONAL VISSION AND MISSION AS A CORE DIMENSION IN

EMPLOYEE RETENTION:-

Mission statements are recognized as a strong management tool that can motivate

employees and keep them focused on the purpose of the organization. Given its

significant and fundamental role relatively little is known about how mission are

perceived by employees and how those perceptions relate to other organizational attitudes

(e.g. satisfaction) and behaviors (e.g. turnover)

In general, the employees expressed positive attitudes towards the mission of the

organization and those attitudes are related to employee satisfaction & intentions to

remains with the organization.

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REVIEW OF LITERATURE IN THIS REGARD:-

“Developing comprehensive vision & mission statements is seen as critical to success of

organization in all sectors “(COLLIUS & PORRAS,1991).

Williams (2002)further suggested that “organization with a more comprehensive mission

statement do better financially than those with an ambiguous mission or no mission at

all”.

“A mission statement identifies, operational objectives, assists in goal directed behavior

of staff, describes performance standards and speaks to organizational survival” ( Smith,

Heady, Carson & Carson ,2001)”

A good match between employee and organizational values is related to employee

attraction, satisfaction and turnover ( Werbel & Gilliland ,1999)

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INCREASING EMPLOYEE RETENTION THROUGH EMPLOYEE

ENGAGEMENT:-

WHAT IS EMPLOYEE ENGAGEMENT:-

It is as the level of commitment and involvement that an employee has

towards the organization and its values. It is vital to any business organization that seeks

not only to retain its employees, but also to increase their performance level.

ENGAGAMENT is not a one – time process or a short – term initiative, it’s an ongoing

and steady progress which requires following initiatives to be taken by organization to

build high levels of employee engagement:-

Informing employees about the change

Inviting employees’ suggestions

Incorporating Valuable suggestions

Listening to problems

Supporting at every stage of the implementation process

WHY IS IT SO IMPORTANT?

“ EMPLOYEE ENGAGEMENT “ ensures the successful execution of any business

strategy. Engaged employees are the competitive advantage of an organization and play

the most important role in the implementation of their organization’s business initiatives.

There is a significant link between employee engagement and profitability.

DRIVERS OF EMPLOYEE ENGAGEMENT:-

The survey conducted by “ Business Today” identifies following drivers:

PEOPLE / QUALITY

WORK / COMPENSATION

OPPORTUNITIES

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FACTORS OF ENGAGEMENT:-

Many organizational factors influence employee engagement and retention such as:-

Empowerment

Fair & appropriate reward recognition & incentive systems

A culture of Respect where outstanding work is valued.

Self development & achievements

Creativity and availability of constructive feedback & mentoring.

Advancement & high levels of motivation and leadership

Economic security (or wealth)

Enjoying coworker relationships affect employee engagement significantly.

HOW TO DEVELOP EMPLOYEE ENGAGEMENT:

Top management endorsement

A work environment to cherish

Innovative leadership

Clear growth trajectories

“one step up “ from commitment

EMPLOYEE DISENGAGEMENT: THE DETERRENT EVIL:-

It can result in:-

Increased employee absenteeism

Decreased self esteem

Transferring their gained knowledge and expertise to another workplace

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Reduced work performance

Work life imbalance

Wasting time and money invested in training and development programs for the

existing workers.

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MEASURING EMPLOYEE TURNOVER

Most organisations simply track their crude turnover rates on a month by month or year

by year basis. The formula is simply:

Total number of leavers over period x 100

Average total number employed over period

The total figure includes all leavers, even people who left involuntarily due to dismissal,

redundancy or retirement. It also makes no distinction between functional (i.e beneficial)

turnover and that which is dysfunctional.

Crude turnover figures are used by all the major surveys of employee turnover, including

the major CIPD and CBI surveys that are carried out each year. So they are necessary for

effective benchmarking purposes. However, it is also useful to calculate a separate figure

for voluntary turnover and to consider some of the more complex employee turnover

indices which take account of characteristics such as seniority and experience.

A stability index indicates the retention rate of experienced employees. Like turnover

rates, this can be used across an organization as a whole or for a particular part of it. The

usual calculation for the stability index is:

Number of leavers with one or more years service x 100

Number employed a year ago

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RESEARCH METHODOLOGY:-

1. NATURE AND TYPE OF STUDY:-

The study of human relations is an extremely complex area where external

industry environment interact with company’s internal policies and practices in a variety

of ways. This research study was “Descriptive type” of research study because it includes

surveys and fact- finding enquiries of different kinds and description of state of affairs as

it was exists at present.

2. TOOLS USED FOR RESEARCH:-

The quality and reliability of research study is dependent on the information

collected in the scientific and methodological manner. “Employee satisfaction survey” is

the best method for Employee retention program. The quantifiable (Employee retention

survey) survey questionnaires and personal interviews were main weapon to extract

information from the respondents. These questionnaires were specifically designed to

determine some basic facts and overall measure of employee perception, attitudes,

motivation, compensation, work environment underlying causes of employee

dissatisfaction towards organization that affect real business metrics, like , Employee

retention rates and turnover.

SOURCES OF DATA:-

(a) NATURE OF DATA-

The main source of data used for this research study was “Primary source”

because the data collection was occurred directly to the ABB employee’s through

questionnaire (filled up) and personal Interviews. The structure of questionnaire was of

multiple choice of questions.

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SURVEY BASED ON THE EMPLOYEE SATISFACTION FORM:-

To assess ABB employee’s perception regarding work environment, corporate

communication, training and development program, work force motivation and

engagement, compensation, pay and overall satisfaction towards the organization and to

accumulate the employee’s suggestions regarding the “Retention Program”(how should

retain the employees in ABB).

A total of around 100 survey forms were distributed to the ABB employee’s of

middle level management placed in various departments. Some issues were discussed

with several employees that were relevant to the research study and as a result new ideas

were framed.

(B) METHODS OF DATA COLLECTON:-

The method of data collection was on “Observational base” through questionnaire

rather than communicational base. Only the purpose of the study was explained to all

respondents in order to get good response.

(C) SAMPLING DESIGN(TECHNIQUES OF SAMPLING):-

In this study, the Probability (Random) sampling is used. In “Simple Random

Sampling” method ,the chances of any particular unit (item) in the population being

selected is known, i.e, the sampling operation is controlled. The randomness is involved

in the selection process thus the estimates of sampling error can be made.

(D) SAMPLE SIZE:-

The sample size for the survey was 50 employees of ABB consisting of all the

departments.

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DATA ANALYSIS AND INTERPRETATION:-

In order to express the complex data into concise and logical

form the data collected was transformed into the form of “tables and Pie chart diagram”.

1. Measure overall employee satisfaction towards organization:

The following questions were included in this section:-

Up to what extent you are satisfied with your job and post at company “ABB”?

1)100% 2) 75% 3) 50% 4) 25%

ANALYSIS:

Up to what extent you are satisfied with HRD activities & HR dept.?

1) 100% 2) 75% 3) 50% 4) 25%

ANALYSIS:-

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Up to what extent you are agree with organizational goal, vision & mission?

ANALYSIS:

CONCLUSION:-

42 % of employees are 75% satisfied with current job and post

38 % of employees are 50 % satisfied with HRD activities and HR dept.

56 % of employees are agree with organization goal, vision and mission

It means that out of 100, less than 30 % of employees are overall satisfied towards

organization and remaining are dissatisfied.

2. EMPLOYEE LOYALTY:-

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The following questions were included in this part:-

Please indicate the number of years you have worked in your current job?

ANALYSIS:-

How much belong ness you have with the organization?

1) 25% 2) 50% 3) 75% 4) 100%

ANALYSIS:

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Would you like to join another organization?

ANALYSIS:-

CONCLUSION:-

48 % Of employees are working in this organization from last 1-3 years.

Max 50 % of employees have 75% belongness with this organization.

64 % of employees want to join another organization for better career growth and

prospects.

It means that-

Approximately more than 50 % of employees are loyal to the organization.

3. WORK ENVIRONMENT:-

How is your work environment?

ANALYSIS:-

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CONCLUSION:-

Only 70 % of ABB employees are satisfied about their work environment /

culture.

4. WORKFORCE MOTIVATION AND ENGAGEMENT:-

The following questions were estimated during this portion:-

Does your manager/supervisor clearly define your job responsibilities/job

description?

ANALYSIS:-

Do Your Manager/supervisor encourage you for high achievements by reducing

the fear of failure?

ANALYSIS:-

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Is employee’s growth in your organization highly correlated with performance

appraisal?

ANALYSIS:

Do you work under extreme pressure situation?

ANALYSIS:-

CONCLUSION:-

Approximately 70% ABB employees are agreed about workforce motivation and

engagement provided by manager and supervisors.

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5. CORPORATE CULTURE :-

CONCLUSION:-

52% employees are agreed for good corporate culture in sense of decision making, vast , varied, friendly & encouraging.

6. PAY,BENEFITS AND COMPENSATION:-

Are you satisfied with your pay, benefits and incentives as your current

organization providing?

ANALYSIS:-

CONCLUSION:-

20% employees are satisfied with their Pay, Benefits and compensation.

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7. TRAINING AND DEVELOPMENT

Does your company provide T & D Pgm? If Yes, then how much you are satisfied

with them?

ANALYSIS:-

CONCLUSION:-

Approximately 35% of employees are satisfied with T & D pgm and remaining

are dissatisfied.

Approximately 70% of employees are agreed towards empowerment,

advancement and economic security.

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FINDINGS:-

From the above survey, for employee retention, we come to know that approximately 40

% of ABB employees are fully satisfied with this organization and remaining are quite

satisfied and they don’t want to continue their job in ABB.

WHY EMPLOYEES WANT TO STAY WITH THIS ORGANIZATION:-

There is no one strategy to insure successful employee retention. Generally, a

combination of factors influences an employee’s decision to stay in a job. Those factors

may differ for an individual depending on his/her age, family situation, external job

market or job title, position and experience. There are some following reasons to stay in

this organization given by ABB employees:-

1. ABB brand and reputation(MNC)

2. Market leader in power and automation

3. Best interpersonal relationship, Ethics and values

4. Good work environment/ culture.

5. Availability for career growth and advancement

6. Positive support from superiors and managers

7. Flat structure ( No hierarchy)

WHY EMPLOYEES DON’T WANT TO STAY WIH THIS ORGANIZATION:-

Max. Percentage of employees wants to leave that because of following reasons:

1. Poor HR activities, bonding and support with employees

2. Not provision of best salary/Incentive and remuneration.

3. Attrition rate is very high.

4. No visibility of career planning process and no teamwork / spirit.

5. Limited training programs and personality development

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6. No facilities or employees like Conveyance, Library, Restrooms, Games, car and

home loans etc.

7. Not awareness of total work area of ABB

8. Dirty politics system.

9. No opportunity for enhance job responsibility / description.

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On the basis of conducted survey it can be safely concluded that “ Employee

Retention” is a very vital part for a company productivity and profitability. During past

decades, Employee turnover has become a very serious problem or every organization.

Managing Retention & keeping turnover rate below target and industry norms is one of

the most challenging issues facing. By following the implementation plan ( Strategy)

which is listed in suggestion part, the existing employee turnover problem in ABB can

reduce and measurement of retention needs of Top Talent can also possible. By which , it

can become the market leader with skilled team work and improve the productivity.

This result (Conclusion) helps HR management to make changes prior to the

development of undesirable situations.

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It is impossible to retain 100 % of employees, but by creating a great place of work, there

will be possibility of mitigation of factors which encourage the employees to leave while

enhance the properties that encourage the employees to stay. Beyond these implications,

the study shows ,t that retaining talent is of course, not a simple matter. The results

suggest that a "one-size-fits-all" approach may not be effective because age and position

can influence one's decision to stay or quit. Understanding needs and motivations as a

function of age and position might help the human resources department to develop

customized and effective retention programs.

There are some suggestions by which organization can retain employees based on the

results o the study.

A IMPLEMENTATION PLAN ( STRATEGY) TO IMPROVE “ EMPLOYEE

RETENTION PROGRAM” IN ABB:-

1. Determine organizational retention issues .

2. To provide better growth and advancement to employees by changing position role

( Job Rotation)according to his / her performance.

3. Paying attention of individual problem.

4. Provision of motivational activities like leadership, benefits and job satisfaction.

5. Proper judgement for Pay packet / Improve compensation .

6. Proper division of work.

7. Team work and relaxed work culture /flexible work arrangements.

8. Provide mechanism of Training programs and personal development according to

employee job responsibilities( culture of learning)

9. Appreciate employee for good work to boost his/ her confidence( Reward

performance)

10. Enhanced Supervisory skills.

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1. T.N. CHHABRA(1992),Human Resource Management, Concepts and Issues,

Dhanpat Rai & Co.( P) Ltd., New Delhi.

2. V.S.P. Rao(1995),Human Resource Management, Text & Cases, Excel Books, New

Delhi.

3. K.Aswthappa, HRM, Tata Mc Graw Hill, New Delhi.

4. Magazines-

Human Review, June 2006, Page 8-48

Human Capital, May 2006, Page 12-44

ABB Outlook

5. Websites-

www.abbinside.com/co.in

www.abb.com/co.in

www.employeeretentionconnection.com

www.google.com

www.businessranks.com

www.pearsonel.co.in

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EMPLOYEE SATISFACION SURVEY QUESTIONS

Name of department:-…………………………………………

1. Up to what extent you can understand the organization goal, vision and mission?

25% 50 % 75% 100%

2. Up to what extent you are satisfied with your job and post at company “ABB”.

25% 50% 75% 100%

3. Does your manager/superior clearly define your job responsibilities/job description?

Disagree Somewhat agree Agree Not applicable

4. Do your manager/ supervisor encourage you for high achievements by reducing the

fear of failure?

Disagree Somewhat agree Agree Not applicable

5. Up to what extent you are satisfied with HRD activities & HR dept.?

25% 50% 75% 100%

6. Does your company provide Training & development program? If YES, then how

much you are satisfied with them?

Yes No

25% 50% 75% 100%

7. How is the relationship between management /dept. heads and their subordinate?

Excellent Better Good Poor

8. Please indicate the no. of years you have worked in your current job.

less than 1 year 1-3 years 4-5 years more than fiveyears

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9. How much belongness you have with the organization?

25% 50% 75% 100%

10. Are you satisfied with your pay, Benefits & Incentives as your current organization is

providing?

25% 50% 75% 100%

11. Are you satisfied with HR policies of “ABB LTD.” like :-

Conveyance

Medical

house rent

Over time reimbursement

competitive salaries

Welfare activities,

Outdoor work expenses & Other schemes

According to you, on which policies this company should improve upon:-

Please comment: -

…………………………………………………………………………………………

……………………………………………………………………………………

12. Are you satisfied with your salary package as your company providing?

Yes No

13. Is employee’s growth in your organization highly correlated with performance

appraisal?

Agree Disagree

14. Do you work under extreme pressure situations?

Always Sometimes Never Frequently

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15. Does your company provide you an attractive compensation package?

Yes No

16. Does your superior provide you the right climate to implement new ideas and

methods suggested by you and for making a right change in the refined work?

Agree Disagree

17. Did you get respect, advancement, economic security and empowerment from your

organization?

Disagree Somewhat agree Agree Not applicable

18. Did you feel sufficiently trained and oriented for your job?

Pleasecomment:

………………………………………………………………………………………………

………………………………………………………………

19. Would you like to join another organization?

Yes

No

If yes, then why would you join it?

Please comment:-

………………………………………………………………………………………………

……………………………………………………………………………………………..

20. How is your work environment/culture?

Good

Best

Worst

Not according to you

21. Main three reasons for not happy in the organization:-

(a)…………………………………………………………………………………………

.(b)……………………………………………………………………………………

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20. Overview about organization:-

Organization culture:-

…………………………………………………………………………………………

Growth of the employee in organization:-

……………………………………………………………….

21. Mention three best areas about your organization:-

………………………………………………………………………………………………

………………………………………………………………………………………………

……………………………………

22. Mention three weaker areas about your organization:-

………………………………………………………………………………………………

………………………………………………………………………………………………

…………………………………

23. Kindly suggest /inform for betterment of the organization .So, we can retain the

employees.

………………………………………………………………………………………………

………………………………………………………………………………………………

…………………………………

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