EMPLOYEE RETENTION

A Project in Human Resource Management

Submitted To: By:

Prof. Anamika Anupma Shishodia

Neha Singh

Swati Didwania

Ravishankar Pateriya

Rahul Dhingra

Rajiv Sinha

INTRODUCTION

Ayurveda is a 5000 year old Science of health care and herbal treatment. Ayurveda,

is highly effective in common and complicated ailments, assures long term relief and

has no side effects. Ayurveda is now backed by modern scientific research and

technologies and provides its gentle healing touch to millions around the world.

One of India's most respected Companies, Shree Baidyanath Ayurved Bhawan (p)

Ltd. (Kolkata), popularly known as Baidyanath , is the acknowledged leader of

Ayurvedic know-how. Established in 1917, the Company has played a pioneering

role in re-establishing ancient knowledge with modern research and manufacturing

techniques.

Shree Baidyanath Ayurved  Bhawan (p) Ltd. was founded in 1917 by Late Pt. Ram

Dayal Joshi. Its registered office is in Kolkatta. To encourage and boost research in

Ayurveda, Baidyanath established Pt. Ram Dayal Joshi Memorial Ayurvedic

Research Institute at Patna in 1971. Baidyanath awards two lakh of rupees every

year for the best research paper or book on Ayurveda.

Besides being the manufacturer of the largest range of Ayurvedic Products in the

world, Baidyanath's achievements and strengths include:

 Manufacturer of over 700 Ayurvedic Products

 10 manufacturing Centres

 Number of employees -1,600

 Continuously updated centralised R&D facilities

 Over 3,500 exclusive showrooms manned by qualified medical practitioners

 Over 10,000 distributors

 Exports to several countries

 Running Ayurvedic Hospitals

 Publishing a monthly magazine--"Sachitra Ayurved"

 5 free clinics serving over 300 patients each day

 Institution of awards for significant research on

Ayurveda

 Running two leading schools in two States of India

The company has a Government of India approved Research Center comprising of a

qualified team of Scientists.

For encouraging research & development, a quarter of a million rupees is awarded

every year for the best work on Ayurveda. We also run an Ayurvedic College,

Charitable Hospitals and Dispensaries throughout India.

Baidyanath publishes a number of books on Ayurveda, some of which are used as

text books in Ayurvedic Colleges. "Ayurved Sar Sang rah" a publication containing

formulations of Ayurvedic products, is part of the pharmacopoeia, recognized by the

Government of India, under the First Schedule of Indian Drug and Cosmetic Act,

1940.

INTRODUCTION TO EMPLOYEE RETENTION

Employee Retention involves taking measures to encourage employees to remain in

the organization for the maximum period of time. Corporate is facing a lot of

problems in employee retention these days. Hiring knowledgeable people for the job

is essential for an employer. But retention is even more important than hiring. There

is no dearth of opportunities for a talented person. There are many organizations

which are looking for such employees. If a person is not satisfied by the job he’s

doing, he may switch over to some other more suitable job. In today’s environment

it becomes very important for organizations to retain their employees.

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

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

project. Employee retention is beneficial for the organization as well as the

employee. 

Employees stay and leave organizations for some reasons.

The reason may be personal or professional. These reasons should be understood by

the employer and should be taken care of. The organizations are becoming aware of

these reasons and adopting many strategies for employee retention. 

                                             

  <<Compensation>>                        <<Environment>>                        <<Growth>>

                                   

                 <<Relationship>>                                                       <<Support>>

Retention involves 5 major things:

Compensation: - Compensation constitutes the largest part of the employee

retention process. The employees always have high expectations regarding their

compensation packages. Compensation packages vary from industry to industry.

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

options, bonuses, vacations, etc. 

Environment:- 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.

Growth:-Growth and development are the integral part of every individual’s career.

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

organization, there are chances that he’ll leave the organization as soon as he gets an

opportunity.

Relationship: - Sometimes the relationship with the management and the peers

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

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

environment in terms of personal or professional relationships. 

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.

How to increase 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.

ATTRITION

The attrition rate has always been a sensitive issue for all organizations. Calculating

employee turnover rate is not that simple as it seems to be. No common formula can

be used by all the organizations. A formula had to be devised keeping in view the

nature of the business and different job functions. Moreover, calculating attrition

rate is not only about devising a mathematical formula. It also has to take into

account the root of the problem by going back to the hiring stage.

Attrition = (No. of employees who left in the year / average employees in the year) x

100

Is attrition always bad?

Attrition is not bad always if it happens in a controlled manner. Some attrition is

always desirable and necessary for organizational growth and development. The

only concern is how organizations differentiate “good attrition” from “bad attrition”.

The term “healthy attrition” or “good attrition” signifies the importance of less

productive employees voluntarily leaving the organization. This means if the ones

who have left fall in the category of low performers, the attrition in considered being

healthy.

Understand why employees 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

don’t 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 won’t 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 candidate’s job and career stagnant.

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

feels de-motivated and loses interest in job.

Lack of trust and support in coworkers, seniors and management: Trust is the

most important factor that is required for an individual to stay in the job. Non-

supportive coworkers, seniors and management can make office environment

unfriendly and difficult to work in.

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.

Findings of our Project

The Company chosen by us for employee retention was Baidyanath. We had an

interactive session with the Area Sales Manager & Mr. Ashok Triveni HR Manager

of the same company regarding strategies being followed in retaining their

employees .The total no. of Employees are 2000 in its 5 branches (Nagpur, Jhansi,

Patna ,Kolkata, Naini ) The head office we visited was in Delhi which looks after

Naini branch .The annual turnover is 1400- 1500 Crore.

We found that the employee retention in Baidyanath is more than 90%. Strategies

followed by Baidyanath in retaining their employees are –

Compensation

Incentive

No work pressure

Good growth opportunity

No structured feedback

Transparency in work

Quality work

Support

Communication

Environment

Compensation

They provide PF( provident fund ), ESIC (Employee State Insurance Corporation ),

Gratuity, Bonus .They provide motivational incentive on the basis of production .

NO work pressure

We found that the employees of this company were satisfied .They follow flexible

timings which means that the employees are given a target which they have to finish

within the time. Actions taken what if employees take leave more than schedule.

For Middle level employee

First a letter is sent to the employee , if the employee do not report within 3-4 days .

If not replied within prescribed days then within 10-15days again a letter sent with a

notice to warn the employee.

Final termination letter is issued in the name of the employee after 15 days if not

reported.

For lower level employee relaxation is more than that for middle level employees

which is total 45 days.

For low level employees

The casual leave provided by the company in 1 year is 8 days & for middle & higher

level employees is 12 days. Earned leave provided for the employees vary from 15 –

30 days in a year but this money will be refunded only when an employee leaves the

organization.

No structured feedback –

They have decentralized environment where free flow of communication is being

followed .Employees can discuss their family matters as well as work related

problems with their co-employees as well as higher level employees in order to seek

guidance as well as financial help.

Good growth opportunity

Low level employees

Salary is fixed by State Government which is 3452 Rs in UP while company pays

4900 to 5000 Rs to each lab our which is fixed. So they have no growth opportunity.

Middle level employees

They have more opportunities as compared to low level employees. Marketing guys

can get increment in their salary by selling more products. If middle level employees

perform well on the job then they can be promoted easily without any time

foundation for e.g. . Area Sales Officer can get promoted to Sales officer within a

year or so on the basis of his performance for the company.

Transparency in work culture

Daily call report is maintained & viewed & target is analyzed on weekly basis &

actions are taken accordingly.

Quality work

They manufacture 1600 Ayurvedic Medicines .Their core business is in Ayurvedic

Medicines.They got Nagarjuna Award in 2005 in Jaipur & in 2009 in Delhi for best

Quality by President of India. They are not only confined in selling products to their

native country but also export their quality products.

Environment

To give the family atmosphere they celebrate the Birthdays & Anniversaries of their

employees & give farewell to those who have worked for more than 5 years. This

shows that they are socially active as well.

CONCLUSION

We found that the employee retention of Baidyanath is more than 90%. Employees

are almost satisfied with their job & culture of the organization. For low & middle

level Employees Company goes for exit interviews in order to find out the reason.

Although there are some loop holes in its effective retention of its employees but

employees are still satisfied due to low work pressure, transparency in work culture

& support which it gets from the organization.

From our point of view company can provide Private health insurance, Personal

accident insurance, Permanent disability insurance, and Car / Cash allowance.