53 53 employee retention project report

8/6/2019 53 53 Employee Retention Project Report

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Executive Summary

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 today are different. They are not the ones who dont havegood opportunities in hand. As soon as they feel dissatisfied with the current

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

employer to retain their best employees. If they dont, they would be left with no

good employees. A good employer should know how to attract and retain its

employees.

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. Pay is more than "dollars and cents;" it also

acknowledges the worth and value of the human contribution. What people are paid

has been shown to have a clear, reliable impact on turnover in numerous studies.

Employees comprise the most vital assets of the company. In a work place where

employees are not able to use their full potential and not heard and valued, they

are likely to leave because of stress and frustration. In a transparent environment

while employees get a sense of achievement and belongingness from a healthy

work environment, the company is benefited with a stronger, reliable work-force

harboring bright new ideas for its growth

Introduction

Employee turnover is one of the largest though widely unknown costs an

organization faces. While companies routinely keep track of various costs such as

supplies and payroll, few take into consideration how much employee turnover will

cost them: Ernst & Young estimates it costs approximately $120,000 to replace 10

professionals. According to research done by Sibson & Company, to recoup the cost

of losing just one employee a fast food restaurant must sell 7,613 combo meals at

$2.50 each. Employee turnover costs companies 30 to 50% of the annual salary of

entry-level employees, 150% of middle-level employees, and up to 400% for upper

level, specialized employees. Now that so much is being done by organizations toretain its employees, why is retention so important? Is it just to reduce the turnover

costs? Well, the answer is a definite no. Its not only the cost incurred by a company

that emphasizes the need of retaining employees but also the need to retain

talented employees from getting poached.

Resume Writing Tips


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Employee Retention

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, bonuses, benefits, prerequisites, stock

options, bonuses, vacations, 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 allowanceCity compensatory allowance

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

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

increase should be based on the employees performance and his contribution to

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

the year or on a festival. 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 havesomebody 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.


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Employers And Their Key Drivers To Attract And Retain Talent

Employers Key Drives To Attract And Retain Talent

Procter and Gamble India

Early responsibilities in careerFlexible and transparent organizational culture

Global opportunities through a variety of exposure and diverse experiences

Performance Recognition

American Express (India)

Strong global brand

Value-based environment

Pioneer in many people practices

NTPC

Learning and growth opportunities

Competitive rewards

Opportunity to grow, learn and implement

Strong social security and employee welfare performance- oriented culture

Johnson & Johnson

Strong values of trust, caring fairness, and respect within the organization

Freedom to operate at work

Early responsibility in career

Training and learning opportunities

Visible, transparent and accessible leadersCompetitive rewards

Innovative HR programs and practices

Glaxo Smith Kline Consumer Healthcare

Performance-driven Rewards

Its belief in Growing our own timber

Comprehensive development and learning programs

Flat organization, where performance could lead to very quick progression

Challenging work context

Competitive rewardsExhaustive induction and orientation program

Tata Steel

Organization philosophy and culture

Job stability

Freedom to work and innovate


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Colgate Palmolive India

Company brand

Open , transparent, and caring organization

Management according to the managing with respect to guiding principles

Training ad development programs

Structured career planning processGlobal career opportunities

Wipro

Companys brand as an employer

Early opportunities for growth

High degree of autonomy

Value compatibility

Innovative people program

Indian Oil Corporation

Company brand image

Work ethics

Learning and growth opportunities

Challenging work assignments

Growing organization

TCS

The group brand equity

Strong corporate governance and citizenship

Commitment to learning and development

Best in people practicesChallenging assignments

Opportunity to work with fortune 500 clients

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


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Values

Company reputation

Quality of people in the organization

Employee development and career growth

Risk taking

Leading technologiesTrust

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 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. 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 currentorganization, 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 anddevelopment: 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


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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 personalcrisis. 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, conseling services, etc

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

RESEARCH METHODOLOGY

Research Design

The research design indicates the type of research methodology under taken to

collect the information for the study.

The researcher used both descriptive and analytical type of research design for his

research study. The main objective of using descriptive research is to describe the

state of affairs as it exits at present. It mainly involves surveys and fact finding

enquiries of different kinds. The researcher used descriptive research to discover

the characteristics of customers. Descriptive research also includes demographycharacteristic of consumer who use the product.

The researcher also used analytical research design to analyze the existing facts

from the data collected from the customer.

Area of study

The area of study is confined to employees of GEMINI COMMUNICATION LTD,


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Chennai.

Research instrument

The Structured questionnaire is used as the research instrument for the study.

Questionnaire DesignThe questionnaire framed for the research study is a structured questionnaire in

which all the questions are predetermined before conducting the survey. The form

of question is of both closed and open type.

The scales used to evaluate questions are:

Dichotomous scale (Yes or No)

Likert 5 point scale (Highly satisfied, satisfied, Neither

Satisfied nor dissatisfied, Dissatisfied, Highly

dissatisfied)

Category scale (Multiple items)

Ranking type (R1, R2, R3)

The questionnaire for the research was framed in a clear manner such that it

enables the respondents to understand and answer the question easily. The

questionnaire was designed in such a way that the questions are short and simple

and is arranged in a logical manner.

Pilot study

It is appropriate to conduct pilot survey to check the reliability of the questionnaire.

So pilot study was conducted on 5 respondents which is a 10% of the sample.

Sampling design

A Sample design is a definite plan for obtaining a sample from a given population. It

is the procedure used by the researcher in selecting items for the sample.

Sample size

Sample size=125 samples, variance and confidence methods are used for

determining sample size.

Sampling Technique:

The researcher adopted simple random sampling for the study.

DATA COLLECTION METHOD


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Primary data

Primary data is the new or fresh data collected from the respondents through

structured scheduled questionnaire.

Secondary data

The secondary data are collected through the structured questionnaire, literature

review and also from the past records maintained by the company.

STATISTICAL TOOLS AND TECHNIQUES

PERCENTAGE ANALYSIS:

Percentage = (No. of respondents/ total no. of respondents)*100

WEIGHTED AVERAGE METHOD:

Formula:

Mean score = total score/no of respondents.

Where total score = no of respondents*weighted average

CHI SQUARE TEST:

1. Null Hypothesis (Ho): There is no difference in attributes2. Alternate Hypothesis(H1): There is a difference in attributes

3. Level of significance = 0.05

4. Degrees of freedom = (r-1)(c-1)

5. Expected frequency:

E = R.T C.T

G.T

6. Calculation of :

= (O-E)

E

7. The tabulated value of at given level of significance with (r-1)(c-1)Degrees of freedom

ONE RUN TEST

Null hypothesis (H0):

There is a no significant relationship between the variables


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Alternate hypothesis (H1):

There is significant relationship between the variables

r = 2 n1 n2 + 1

n1 + n2

2 n1 n2- n1- n1

r = 2 n1n2

(n1+ n2)2 (n1+ n2-1 )

Lower limit = r + (2.58)

Upper limit = r + (2.58)

KENDALLS COEFFICIENT OF CONCORDANCE:

Null hypothesis (H0): There is a difference in attributes

Alternate hypothesis (H1): There is no difference in attributes

Rj = (Rj-Rj)2

S= Rj = Rj

LIMITATIONS OF THE STUDY

1. The findings of the study are subjected to bias and prejudice of the respondents.2. Area of the study is confined to the employees in Chennai only.

3. Time factor can be considered as a main limitation.

4. The findings of the study are solely based on the information provided by the

respondents.

5. The accuracy of findings is limited by the accuracy of statistical tools used for

analysis.

6. Findings of the research may change due to area, demography, age condition of

economy etc.

Analysis and Interpretation of data

PERCENTAGE ANAYLSIS

AWARENESS OF HR POLICIES

Chi-Square Test


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To find whether there exists a significant relationship between Work Culture of the

Company and interpersonal relationship between employees.

H0: There is a no significant relationship between Work Culture of the Company and

interpersonal relationship between employees.

H1: There is a significant relationship between Work Culture of the Company

and interpersonal relationship between employees.

Calculated value is more than table value therefore accept H0

Result:

There is a significant relationship between overall satisfaction and aspects of job.

KENDALLS COEFFICIENT OF CONCORDANCE

Null hypothesis (H0): There is a no significant difference in the rank assigned by

respondents towards the attributes that gives them satisfaction in the company.

Alternate hypothesis (H1): There is a significant difference in the rank assigned by

respondents towards the attributes that gives them satisfaction in the company.

Ranking Based on Satisfaction

K=20Salary

Superior Role

Team Coordination

Work responsibilities

Rules and Policies

Physical work environment

Training

Calculated value : S= 5815.714

Table value : 1158

Calculated value is more than table value therefore reject H0

Result:


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There is a significant difference in the rank assigned by respondents towards the

attributes that gives them satisfaction in the company.

ONE RUN TEST

Null hypothesis (H0):

The samples are not taken randomly.

Alternate hypothesis (H1):

The samples are taken randomly.

Table:2.5.1

EMPLOYEES SATISFACTION REGARDING MONETARY BENEFITS PROVIDED BY THE

COMPANY.

Retention Management

Abstract: Background: retention management is a highly topical subject and an

important dilemma many organizations might face in the future, if not facing it

already. We believe that the leader plays a key role in employee retention and

retention management. The concept of retention management can both have a

narrow, and a broader significance. Both parts of its significance are generally

included in this thesis. The background of the thesis present a few articles that

discuss issues that makes it important for the organization, and the leaders, to work

hard with retention management. The research is based on the leaders in the

Finnish case company Tradeka. Following key questions are intended to be

answered: What are the consequences between leaders actions and employees

retention? Which is the leaders role when it comes to retaining employees? Purposestatement: The purpose of the thesis is to investigate and analyze how company

leaders today can retain their key employees. How can the provision of key human

resources develop a long-term relationship that makes top employees stay in the

company? The study aims to establish the procedure leaders apply to retain

employees. The purpose is to compare the qualitative study, made at the case

company, with findings from the thesis theoretical framework. Research method:

The study is a qualitative, as well as a theoretical study where empirical findings

and theories has been compared. The intention of investigating and using the

Finnish company Tradeka Limited as a case company, is to make the information

from the theories more valid, and also the interest in how retention managementworks in practice. Eleven qualitative interviews were conducted at Tradeka?s

financial department, both with supervisors and employees to get a broader view at

the phenomenon retention management. Result: Leaders and their skill in creating

a culture of retention, has becoming a key in why people stay and what usually

drives them away from a company. The leader has become the main factor in what

motivates peoples decision to stay or leave. For organizations to keep its key

employees their number one priority should be to look at their management,


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because people leave managers and not companies. Characteristics in a leader that

are of importance, as the leader plays a key role in retention management is: trust

builder, esteem builder, communicator, talent developer and coach, and talent

finder. The leaders relation to the employees plays a central role in retaining

employees, because employees need to feel involvement, and that their presence

count. When retention is a core value, good things happen for customers,employees, and the company.

Employee Retention Strategies

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

strategies are:

1. Hire the right people in the first place.

2. Empower the employees: Give the employees the authority to get things done.

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

organization.

4. Have faith in them, trust and respect them

5. Provide them information and knowledge.

6. Keep providing them feedback on their performance.

7. Recognize and appreciate their achievements.

8. Keep their morale high.

9.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.

Low Level Employee Retention Strategies

Appreciating and recognizing a well done job

Personalized well done and thank-you cards from supervisors

Congratulations e-cards or cards sent to spouses/families

Voicemails or messages from top management

Periodic days off for good performance

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

Recognizing professional as well as personal significant events

Wedding gifts

Anniversary gifts

New born baby gifts

Scholarships for employees children

Get well cards/flowers

Birthday cards, celebrations and gifts

Providing benefits

Home insurance plans

Legal insurance

Travel insurance


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Disability programs

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

Discounts in cinema halls, museums, restaurants, etc.

Retail store discounts

Computer peripherals purchase discounts

Providing workplace conveniences

On-site ATM

On-site facilities for which cost is paid by employees

laundry facility for bachelors

Shipping services

Assistance with tax calculations and submission of forms

Financial planning assistance

Casual dress policiesFacilities for expectant mothers

Parking

Parenting guide

Lactation rooms

Flexi timings

Fun at work

Celebrate birthdays, anniversaries, retirements, promotions, etc

Holiday parties and holiday gift certificates

Occasional parties like diwali, holi, dushera, etc

Organize get together for watching football, hockey, cricket matches

Organize picnics and trips for movies etc

Sports outings like cricket match etc

Indoor games

Occasional stress relievers

Casual dress day

Green is the color day

Handwriting analysis

Tatoo, mehandi, hair braiding stalls on weekends

Mini cricket in officeIce cream Fridays

Holi-Day breakfast

Employee support in tough time or personal crisis

Personal loans for emergencies

Childcare and eldercare services

Employee Assistance Programs ( Counseling sessions etc)


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Emergency childcare services

Medium Level Strategies for Employee Retention

Appreciating and recognizing a well done job

Special bonus for successfully completing firm-sponsored certifications

Benefit programs for family supportChild adoption benefits

Flexible benefits

Dependents care assistance

Medical care reimbursement

Providing conveniences at workplace

Gymnasiums

Athletic membership program

Providing training and development and personal growth opportunities

Sabbatical programsProfessional skills development

Individualized career guidance

High Level Strategies

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Promoting Work/Life Effectiveness

Develop flexible schedules

Part-time schedules

Extended leaves of absence

Develop Support Services

On-site day care facility etc.

Understand employee needs: This can be done through proper management style

and culture

Listen to the employee and show interest in ideas

Appreciate new ideas and reward risk-taking

Show support for individual initiative

Encourage creativity

Encouraging professional training and development and/or personal growthopportunities: It can be done through:

Mentoring programs

Performance feedback programs

Provide necessary tools to the employees to achieve their professional and personal

goals

Getting the most out of employee interests and talents

Higher study opportunities for employees


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Vocational counseling

Offer personalized career guidance to employees

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

effective way to develop trust.

Suggestion committees can be createdOpen door communication policy can be followed

Regular feedbacks on organizations goals and activities should be taken from the

employees by:

Management communications

Intranet and internet can be used as they provide 24X7 access to the information

Newsletters, notice boards, etc.

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

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

recruitment process.The new joinees should fit with the organizations culture. The personality,

leadership characteristics of the candidate should be in sync with the culture of the

hiring organization.

Referral bonus should be given to the employees for successful hires. They are the

best source of networking. Proper training should be given to the managers on

interview and management techniques. An internship program can be followed to

recruit the fresh graduates.

Retention Success Mantra

Transparent Work Culture

In todays fast paced business environments where employees are constantly

striving to achieve business goals under time restrictions; open minded and

transparent work culture plays a vital role in employee retention.Companies invest

very many hours and monies in training and educating employees. These

companies are severely affected when employees check out, especially in the

middle of some big company project or venture. Although employees most often

prefer to stay with the same company and use their time and experience for

personal growth

and development, they leave mainly because of work related stress anddissatisfactions.More and more companies have now realized the importance of a

healthy work culture and have a gamut of people management good practices for

employees to have that ideal fresh work-life. Closed doors work culture can serve as

a deterrent to communication and trust within employees which are potential

causes for work- Related apathy and frenzy.

A transparent work environment can serve as one of the primary triggers to


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facilitate accountability, trust, communication, responsibility, pride and so on. It is

believed that in a transparent work culture employees rigorously communicate with

their peers and exchange ideas and thoughts before they are finally matured in to

full-blown concepts. It induces responsibility among employees and accountability

towards other peers, which gradually builds up trust and pride. More importantly,

transparency in work environment discourages work-politics which often hinderscompany goals as employees start to advance their personal objectives at the

expense of development of

The company as a single entity.

.

Quality Of Work

The success of any organization depends on how it attracts, recruits, motivates, and

retains its workforce. Organizations need to be more flexible so that they develop

their talented workforce and gain their commitment. Thus, organizations are

required to retain employees by addressing their work life issues. The elements that

are relevant to an individuals quality of work life include the task, the physical work

environment, social environment within the organization, administrative system and

relationship between life on and off the job.

The basic objectives of a QWL program are improved working conditions for the

Employee and increase organizational effectiveness. Providing quality work life

involves taking care of the following aspects:Occupational health care: The safe

work environment provides the basis for the person to enjoy working. The work

should not pose a health hazard for the person. The employer and employee, aware

of their risks and rights, could achieve a lot in Their mutually beneficial dialogue.

Suitable working time: Organizations are offering flexible work options to their

employees wherein employees enjoy flexi-timings for dedicating their efforts at

work. Appropriate salary: The appropriate as well as attractive salary has always

been an important factor in retaining employees. Providing employees salary at par

with the other counterparts of above that what competitors are paying motivates

them to stick With the company for long. QWL consists of opportunities for active

involvement in group working arrangements or problem solving that are of mutual

benefit to employees or employers, based on labor management cooperation.

People also conceive of QWL as a set of methods, such as autonomous work groups,job enrichment, and high-involvement aimed at boosting the satisfaction and

productivity of workers. It requires employee commitment to the organization and

an environment in which this commitment can flourish. Providing quality at work not

only reduces attrition but also helps in reduced absenteeism and improved job

satisfaction. Not only does QWL contribute to a company's ability to recruit quality

people, but also it enhances a company's competitiveness. Common beliefs support

the contention that QWL will positively nurture amore flexible, loyal, and motivated


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workforce, which are essential in determining the company's competitiveness.

Supporting Employees

Organizations these days want to protect their biggest and most valuable asset and

they want to do this in a way that best suits their organizational culture. Retainingemployees is a difficult task. Providing support to the employees acts as a mantra

for retraining them. Employers can also support their employees by creating an

environment of trust and inculcating the organizational values into employees.

The management can support employees directly or indirectly. Directly, they

provide support in terms of personal crises, managing stress and personal

development. Management can support employees, indirectly, in a number of ways

as follows:

Manage employee turnover: Employee turnover affects the whole organization in

terms of productivity. Managing the turnover, hence, becomes an important task. A

proactive approach can be adopted to reduce attrition. Strategies should be framed

in advance and implemented when the times arrives. Turnover costs should also be

taken into consideration while framing these strategies.

Become employer of choice: What makes a company an employer of choice? Is the

benefit it offers or the compensation packages it gives away to its employees? Or is

it measured in terms of how they value their employees or in terms of customer

satisfaction? Becoming an employer of choice involves following a road map which

tells where to go as a brand.

Engage the new recruits: The newly hired employees are said to be least engaged

in the organization. Keeping them engaged is an important task. The fresh talent

should be utilized to maximum before they start feeling bored in the organization.

Optimize employee engagement: An organizations productivity is measured not in

terms of employee satisfaction but by employee engagement. Employees are said

to be engaged when they show a positive attitude toward the organization and

express a commitment to remain with the organization. Employee satisfaction also

comes with high engagement levels. So, organizations should aim to maximize the

engagement among employees.

Coaching and mentoring: Employees whose work performance suffers due to poor

interpersonal relationships or because of lack of interpersonal skills should be

provided proper coaching by their superiors. Planed coaching sessions help an

individual to work through issues, maximize his potential and return to peak

performance.


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Feedback

Feedback acts as a channel of communication between the employee and his

manager. The amount of information employees receive about how well or how

poorly they have performed is what we call feedback. It is a dialog between a

manager and an employee which acts as a way of sharing information about theperformance. It suggests where the employee performance is effective and where

performance has to improve.Managers can provide either positive feedback or

negative feedback to employees. This feedback helps the employee assess his

performance and identify the improvement areas.Positive feedback communicates

managerial satisfaction. Positive recognition for good performance boosts up morale

of employees and results in performance improvement to a higher productivity

level. It is believed that positive feedback is the only type of feedback that

generates performance above the minimum acceptable level. Negative feedback

obviously communicates managers dissatisfaction. However, negative feedback

sometimes make employee to put more efforts to improve his performance. But

such times are very rare. Moreover this improvement is short term. Some managers

do not provide any kind of feedback to their employees. Due to no feedback,

employees may assume that they are performing productively or they may feel that

the manager is satisfied with their performance. Studies reveal the performance

tends be same or even decreases if no feedback is provided.Thus, feedback is

necessary because:

It builds trust and enhances communication between manager and employee.

It gives managers and employees a way to identify and discuss skills and strengths.

Positive feedback leads to employee retention and Retention.

It helps in identifying performance areas that need improvement and specific waysto improve them. It acts as an opportunity to enhance performance by identifying

resources for skill development. It is an opportunity for managers and employees to

assess and identify career and advancement opportunities. It helps employees to

understand the effectiveness of their performance and contributes to their overall

knowledge about the work Managers have tendency to ignore good performances of

their employees. Providing no feedback may demotivate employees and may lead

to employee absenteeism. Input from managers side is necessary as it help

employees to improve their performance and increase productivity.

Communication Between Employee and Employer

Communication is a process in which a message is conveyed to the receiver by the

sender. The message may be or may not be in a common format or language that

both the sender and receiver understand. So there is a need to encode and decode

the message in the process. Encoding and decoding also helps in the security of the

message. The process of communication is incomplete without the feedback.

Communication is the solution to almost everything in this world. Same applies to


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employee retention also.

Straight-from-the-shoulder communication is what the employees need from their

employers. Employees look for organizations where communication and process are

transparent. Nothing is hidden and shared with the employees.

There are 3 categories of employees:

A: Who will leave their current employer in 3 years of their employment

B: Who have a probability of leaving their current employer in next 3 years

C: Who will stay with their current employer in the next 3 years

Category A: These are the employees who lack communication with their

employers.Category C: These are the employees who have proper, well structured

communication with their employers.Communication is also the way to win the

employees trust in the organization. Employees trust the employers who are

friendly and open to them. This trust leads to employee loyalty and finally retention.

Employers also feel that the immediate supervisors are the most authenticated and

trusted source of information for them. So the organizations should hire managers

who are active communicators.Communication mediums

Open door policy: Organizations should support open door policies so that the

employees feel comfortable and are able to express their doubts and feeling to their

employers.

Frequent meetings and Social gatherings

Emails, Newsletters, Intranet and many more

So there should be effective communication across the organization and this

communication should be two-way. Communication alone can lead to unimaginableheights of employee retention.

Importance Of Employee Retention

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

ways:1. The Cost of Turnover: The cost of employee turnover adds hundreds of

thousands of money to a company's expenses. While it is difficult to fully calculate

the cost of turnover (including hiring costs, training costs and productivity loss),

industry experts often quote 25% of the average employee salary 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


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continued sponsorship of the business. When an employee leaves, the relationships

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

customer loss.

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

throughout the organization. Co-workers are often required to pick up the slack. Theunspoken negativity often intensifies for the remaining staff.

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

attrition rates are low. Higher retention rates motivate potential employees to join

the organization.

Regaining efficiency: If an employee resigns, then good amount of time is lost in

hiring a new employee and then training him/her and this goes to the loss of the

company directly which many a times goes unnoticed. And even after this you

cannot assure us of the same efficiency from the new employee

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 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 lifeimbalance 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.


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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

The organizations should start with identifying the employee turnover rates within a

particular time period and benchmark it with the competitor organizations. This will

help in assessing the whether the employee retention rates

are healthy in the company. Secondly, the cost of employee turnover can be

calculated. According to a survey, on an average, attrition costs companies 18

months salary for each manager or professional who leaves, and 6 months pay for

each hourly employee who leaves. This amounts to major organizational and

financial stress, considering that one out of every three employees plans to leave

his or her job in the next two years.

Understand why employees leave :

Why employees leave often puzzles top management. Exit interviews are 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.

Implement retention strategy :

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

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

approach to dealing with attrition. An effective retention strategy will seek to

ensure:

Attraction and recruitment strategies enable selection of the right candidate for

each role/organization

New employees initial experiences of the organization are positiveAppropriate 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.


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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.

Retention Bonus

Higher attrition rates within a particular industry have forced companies to use

some innovative strategies to retain employees. Retention Bonus is one of the

important tools that are being used to retain employees. Retention bonus is an

incentive paid to an employee to retain them through a critical business cycle.

Retention bonuses are becoming more common in the corporate world because

companies are going through more transitions like mergers and acquisitions. They

need to give key people an attractive incentive to stay on through these transitions

to ensure productivity.

Retention bonuses have proven to be a useful tool in persuading employees to

stay.A retention bonus plan is not a panacea. According to a survey, non-

management employees generally receive about 10 percent of their annual salaries

in bonuses, while management and top-level supervisors earn an additional 50

percent of their annual salaries. While bonuses based on salary percentages are the

generally used, some companies choose to pay a flat figure. In some companies,

bonuses range from 25 percent to 50 percent of annual salary, depending on

position, tenure and other factors. Employees are chosen for retention bonusesbased on their contributions to management and the generation of revenue.

Retention bonuses are generally vary from position to position and are paid in one

lump sum at the time of termination. However, some companies pay in installments

as on when the business cycle completes. A retention period can run somewhere

between six months to three years. It can also run for a particular project. A project

has its own life span. As long as the project gets completed, the employees who

have worked hard on it are entitled to receive the retention bonus. For example, the

implementation of a system may take 18 months, so a retention bonus will be

offered after 20 months. Although retention bonuses are becoming more common

everywhere, some industries are more likely than others to offer them.Retail/wholesale companies are the most appropriate to implement stay-pay

bonuses, followed by financial service providers and manufacturing firms.

Companies of all sizes use retention bonus plans to keep knowledge employees

retained in the company. To retain its key senior employees post merger with EDS

Corporation, Mphasis is providing cash component based retention bonus plan for

its employees. This is mainly to retain good employees and provide them a cash

incentive to keep them motivated.


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Hire Right Talent

employee retention starts with recruitment. Early departures arise from the wrong

recruitment process. Here are a few ways to ensure how to hire the right talent for a

particular job.

Hire appropriate candidates. Hire candidates who are actually suitable for the job.

For this the employer should understand the job requirements clearly. Dont hire

under qualified or clearly overqualified candidates.

Provide realistic job preview at the time of hiring: Mostly employees leave an

Organization because they are given the real picture of their job responsibilities at

the time of joining. Attrition rate can be reduced if a right person is hired for a right

job.Realistic preview of the job responsibilities can be given to the employment

seekers by various methods like discussions, trial periods, internships etc.

Clearly discuss what

is expected from the employee: Before joining theorganization, tell the candidate what is expected from him. Setting wrong

expectations or hiding expectations will result in early leaving of employees.

Discuss what the expectations of the employees are: Ask employees what they

expect from the organization. Be realistic. If their requirements can be fulfilled only

then promise them. Or tell them before hand that their requirements can not be

fulfilled. Dont show them an unrealistic picture.

Culture fit: Try to judge individuals capability to adapt to the organizations

culture. A drastic change in the culture may give a culture shock to the candidate.

Referrals: According to the research, referred candidates stay longer with the

organization. There is a fear of hampering the image and reputation of the personwho referred the candidate.

Manager Role in Retention

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

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

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

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

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

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

play an active and vital role in employee retention.

Managers and team leaders can reduce the attrition levels considerably by creating

a motivating team culture and improving the relationships with team members. This

can be done in a following way:

Creating a Motivating Environment: Team leaders who create motivating

environments are likely to keep their team members together for a longer period of


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time. Retention does not necessarily have to come through fun events such as

parties, celebrations, team outings etc. They can also come through serious events

e.g. arranging a talk by the VP of Quality on career opportunities in the field of

quality. Employees who look forward to these events and are likely to remain more

engaged.

Standing up for the Team: Team leaders are closest to their team members. While

they need to ensure smooth functioning of their teams by implementing

management decisions, they also need to educate their managers about the

realities on the ground. When agents see the team leader standing up for them,

they will have one more reason to stay in the team.

Providing coaching: Everyone wants to be successful in his or her current job.

However, not everyone knows how. Therefore, one of the key responsibilities will be

providing coaching that is intended to improve the performance of employees.

Managers often tend to escape this role by just coaching their employees. However,

coaching is followed by monitoring performance and providing feedback on the

same.

Delegation: Many team leaders and managers feel that they are the only people

who can do a particular task or job. Therefore, they do not delegate their jobs as

much as they should. Delegation is a great way to develop competencies.

Extra Responsibility: Giving extra responsibility to employees is another way to get

them engaged with the company. However, just giving the extra responsibility does

not help. The manager must spend good time teaching the employees of how to

manage responsibilities given to them so that they dont feel over burdened.

Focus on future career: Employees are always concerned about their future career.

A manager should focus on showing employees his career ladder. If an employeesees that his current job offers a path towards their future career aspirations, then

they are likely to stay longer in the company. Therefore, managers should play the

role of career counselors as well.

How to Improve Employee Retention

People want to enjoy their work so make work fun and enjoyable.

Understand that employees need to balance life and work so offer flexible starting

times and core hours. Provide 360 feedback surveys and other questionnaires to

foster open communication. Consider allowing anonymous surveys occasionally soemployees will be more honest and candid with their opinions. Provide opportunities

within the company for career progression and cross-training. Offer attractive,

competitive benefits and 401(k)s.

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Organizations should target job applications for employees who have characteristics


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that fit well with the organizational culture. Upon conducting an interview, seek out

traits, such as loyalty. Also, ask the potential employee what motivates them on the

job. Having more information about the potential employees expectations can help

retain them, should they get hired into the company.

Rewards and RecognitionEmployees 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 affects the person being recognized, but others in the organization as well.

Through a rewards program, the entire organization can experience the

commitment to excellence. When the reward system is credible, rewards are

meaningful; however, if the reward system is broken, the opposite effect will occur.

Employees may feel that their performance is unrecognized and not valued, or that

others in the organization are rewarded for the wrong behaviors. 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.

Need for Rewards and Recognition

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

both employee satisfaction and retention. Organizations can avoid employee

turnover by rewarding top performers. 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.

One of the keys to avoiding turnover is to make rewards count. Rewards are to be

immediate, appropriate, and personal. Organizations may want to evaluate whether

getting a bonus at the end of the year is more or less rewarding than getting

smaller, more frequent payouts. Additionally, a personal note may mean more than

a generic company award. Employees should be asked for input on their most

desirable form of recognition. Use what employees say when it comes time to

reward for performance (St. Amour, 2000).

Designing a Rewards and and Recognition Solution

In designing a rewards and recognition program, the following guidelines should beconsidered.

Rewards should be visible to all members of the organization.

Rewards should be based on well-defined, credible standards that have been

developed using observable achievements.

Rewards should have meaning and value for the recipient.

Rewards can be based on an event (achieving a designated goal) or based on a

time frame (performing well over a specific time period).


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Rewards that are spontaneous (sometimes called on-the-spot awards) are also

highly motivating and should also use a set criteria and standard to maintain

credibility and meaning.

Rewards should be achievable and not out of reach by employees.

Nonmonetary rewards, if used, should be valued by the individual. For example, anavid camper might be given a 10-day pass to a campsite, or, if an individual enjoys

physical activity, that employee might be given a spa membership. The

nonmonetary rewards are best received when they are thoughtfully prepared and of

highest quality. Professionalism in presenting the reward is also interpreted as

worthwhile recognition.

Rewards should be appropriate to the level of accomplishment received. A cash

award of $50 would be inappropriate for someone who just recommended a process

that saved the organization a million dollars. Determining the amount of money

given is a delicate matter of organizational debate in which organizational history,

financial parameters, and desired results are all factors. Recognition for a job well

done can be just as valued and appreciated as monetary awards.

Formal recognition program can be used with success. First Data Resources, a data

processing services company that employees more than 6,000 individuals in

Omaha, Nebraska, uses a formal recognition program (Adams, Mahaffey, and Rick,

2002). Rewards are given on a monthly, quarterly, and yearly basis, and range from

Nebraska football tickets, gift certificates, pens, plaques, mugs, and other items.

One of the most popular awards at First Data is called the "Fat Cat Award" that

consists of: $500 gift check

Professional portrait of the employee

Appreciation letter from the CEO and senior management

E-mails, phone calls, and notes from peers

In addition to nonmonetary rewards, employees can be rewarded using money in

numerous ways. Cash is a welcome motivator and reward for improving

performance, whether at formal meetings or on the spot. Variable bonuses linked to

performance are another popular reward strategy. Profit sharing and pay-for-skilis

are monetary bonus plans that both motivate individuals and improve goal

achievement. Small acts of recognition are valuable for employee daily Retention.

Sometimes a personal note may mean more than a generic company award. In onesurvey, employees cited the following as meaningful rewards (Moss, 2000):

Employee of the month awards Years of service awards

Bonus pay (above and beyond overtime) for weekend work

Invitations for technicians to technical shows and other industry events

Meaningful and Retentional Rewards

What gives meaning to rewards and recognition? What makes them effective? First,


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rewards and recognition should be based on a clear set of standards, with

performance verifiable or observable. The standards for the reward should also be

achievable. If the reward is based on an unachievable result, such as a production

goal that is beyond employees' power, then those employees will not be motivated.

Meaningful rewards and recognition that are achievable have the greatest impact.

Case Studies

Employee Retention Best Practices in Keeping and Motivating Employees

By LisBeth Claus

Ask any CEO of an organization, What keeps you awake at night? and you will get

a response that relates to people management issues. a main concern for any

organization (whether small or large; private, public or nonprofit) is its capacity to

attract, engage,

and retain the right people. The problem of retention is compounded by the

predicted talent shortage resulting from the upcoming retirement of the baby

boomers, the scarcity of talent with relevant work skills for todays jobs, the

changing values about work and the high cost of turnover. Research and human

resource practices provide us with a number of recommendations to increase

employee retention.

How Auditing Company X Works with Retaining Valuable Employees : Swedish Case

study

University essay from Hgskolan i Jnkping/IHH, EMM (Entrepreneurskap,

Marknadsfring, Management)Author: Josip Bogic; Elina Armanto; Maja Cassel; [2008]

Abstract: Today, neither employees nor employers seem to take for granted that a

person will stay with the same firm until retirement. Yet, keeping employees for

longer periods is an imp-ortant challenge for firms. One industry where retention is

interesting is the auditing industry in Sweden, this because certain requirements

are needed to become an auditor. Firstly, the employee needs to have a Swedish

university degree, including specific courses within au-diting/accounting.

Furthermore, the person needs practical experience for a specific period of time.

Due to these statements the challenge of retaining and motivating valuable em-

ployees is crucial for the auditing firms, which is why we have chosen to do a casestudy at Auditing Company X to see how they work with employee retention. We

have compared the findings to our chosen theory, which consist of four categories:

the hiring process, in-ternal labor market and career, motivation and performance,

and finally culture and leader-ship. These four categories are initially based on Leigh

Branham?s book: ?Keeping the people who keep you in business: 24 ways to hang

on to your most valuable talent? (Bran-ham, 2001).In our conducted case study, at

Auditing Company X, we have been able to conclude that the firms retention


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practices are to a great extend in line with the theoretical framework. There are

some areas that need further attention from the company, such as an individua-

lized reward system and communication between managers and employees. Even

though there are some parts to work on the most important aspects of retention,

such as having a holistic and long-term orientation, Auditing Company X seems to

have incorporated this into their practices successfully.Retention: An explanatory study of Swedish employees in the financial sector

regarding leadership style, remuneration and elements towards job satisfaction

University essay from Vxj universitet/Ekonomihgskolan

Author: Sanna Paulsson; Linda Lindgren; [2008]

Abstract: Introduction: Companies today are forced to function in a world full of

change and complexity, and it is more important than ever to have the right

employees in order to survive the surrounding competition. It is a fact that a too

high turnover rate affects companies in a negative way and retention strategies

should therefore be high on the agenda. When looking at this problem area we

found that there may be actions and tools that companies could use to come to

terms with this problem. Research told us that leadership, remuneration and

elements like participation, feedback, autonomy, fairness, responsibility,

development and work-atmosphere is important for job satisfaction and retention.

Object: The main objective is to increase the understanding regarding employees

retention in relation to leadership style, remuneration and elements such as

participation, feedback, autonomy, fairness, responsibility, development and work-

atmosphere in the Swedish financial

Sector. Method: We wanted to investigate how employee of the Swedish financial

sector prefers to be retained, and how they consider and react to the chosen areas.

The survey has a quantitative approach with a web based questionnaire and

includes 129 respondents from banks, insurance and finance companies. Thetheoretical framework includes leadership and leadership style, financial as well as

non-financial remuneration and research done in later years regarding participation,

feedback, autonomy, fairness, responsibility, development and work-atmosphere

connected to retention.

Conclusion: The result shows that regarding leadership the respondents prefer

leadership based on relations were they feel appreciation. Both appreciations from

the closest manager as well as the company management influences employee job

satisfaction in a positive way. More money was the most common reason for

wanting to change jobs, and when asking how the remuneration system should be

designed, base pay with additional bonus and benefits were preferred. But also nonfinancial factors such as participation, feedback, autonomy, fairness, responsibility,

development and work-atmosphere must be taken in consideration to satisfy since

they seem to increase employees? Willingness to stay in the company.

What leaders can do to keep their key employees - Retention Management

University essay from Gteborgs universitet/Fretagsekonomiska institutionen

Author: Lisa Hedberg; Maria Helnius; [2007-09-03T08:22:31Z]

Abstract: Background: retention management is a highly topical subject and an


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important dilemma many organizations might face in the future, if not facing it

already. We believe that the leader plays a key role in employee retention and

retention management. The concept of retention management can both have a

narrow, and a broader significance. Both parts of its significance are generally

included in this thesis. The background of the thesis present a few articles that

discuss issues that makes it important for the organization, and the leaders, to workhard with retention management. The research is based on the leaders in the

Finnish case company Tradeka. Following key questions are intended to be

answered: What are the consequences between leaders actions and employees

retention? Which is the leaders role when it comes to retaining employees? Purpose

statement: The purpose of the thesis is to investigate and analyze how company

leaders today can retain their key employees. How can the provision of key human

resources develop a long-term relationship that makes top employees stay in the

company? The study aims to establish the procedure leaders apply to retain

employees. The purpose is to compare the qualitative study, made at the case

company, with findings from the thesis theoretical framework. Research method:

The study is a qualitative, as well as a theoretical study where empirical findings

and theories has been compared. The intention of investigating and using the

Finnish company Tradeka Limited as a case company, is to make the information

from the theories more valid, and also the interest in how retention management

works in practice. Eleven qualitative interviews were conducted at Tradeka?s

financial department, both with supervisors and employees t

o get a broader view at the phenomenon retention management. Result: Leaders

and their skill in creating a culture of retention, has becoming a key in why people

stay and what usually drives them away from a company. The leader has become

the main factor in what motivates peoples decision to stay or leave. Fororganizations to keep its key employees their number one priority should be to look

at their management, because people leave managers and not companies.

Characteristics in a leader that are of importance, as the leader plays a key role in

retention management is: trust builder, esteem builder, communicator, talent

developer and coach, and talent finder. The leaders relation to the employees plays

a central role in retaining employees, because employees need to feel involvement,

and that their presence count. When retention is a core value, good things happen

for customers, employees, and the company.

FINDINGS

It is found out that, 40% of respondents are aware of HR Policies and 60 % of

respondents are not aware of HR Policies.

It is found out that, 76% of respondents are getting right amount of accurate

information at right time and 24% of respondents are not getting right amount of

accurate information at right time.

It is found out that, 82% of respondents are able to meet superiors expectation


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and 18% respondents are not able to meet superiors expectation.

It is found out that,57% of respondents feels that there pay is on par with compare

to employees handling similar responsibilities, and 39% of respondents feels that

there pay is less with compare to employees handling similar responsibilities.

It is found out that, 70% of respondents are satisfied with hygiene and cleanliness

of company infrastructure and 30% of respondents are not satisfied with hygieneand cleanliness of company infrastructure.

It is found out that, 40% of respondents are satisfied with Availability of system,

storage facilities of company and 60% of respondents are not satisfied with

Availability of system, storage facilities of company.

It is found out that, 78% of respondents skills are recognized by superiors and 22%

of respondents skills are not recognized by superiors.

It is found out that, 74% of respondents feel that superiors are taking efforts to

motivate them and 26% of respondents feel that superiors are not taking efforts to

motivate them.

It is found out that, 83% of respondents feel that workload is manageable and 10%

of respondents feel that workload is very hard to manage.

It is found out that,55% of respondents feels that the field worker are able to get

updates on internal activities, and 45% of respondents feels that the field worker

are not able to get updates on internal activities.

It is found out that, 89% of respondents feel that the superiors are easily

accessible and 11% of respondents feel that the superiors are not easily accessible.

It is found out that, 51% of respondents feel that their complaints are resolved

quickly and 49% of respondents feel that their complaints are not resolved quickly.

From weighted Average analysis it is found that most of the respondents are

satisfied with the working hours of the organization

From weighted Average analysis it is found that roles & responsibilities are clearlydefined by the Reporting heads.

From weighted Average analysis it is found that employees feel that their

superior's commitment towards job is good.

From weighted Average analysis it is found that respondents feel that training and

orientation programs are neither good nor bad.

From weighted Average analysis it is found that most of the respondents are

satisfied with job.

From chi-square it is found that there is a significant relationship between Work

Culture of the Company and interpersonal relationship between employees.

From chi-square it is found that there is a no significant relationship betweenoverall satisfaction and Commitment towards Company.

From chi-square it is found that there is a significant relationship between overall

satisfaction and aspects of job.

From Kendalls coefficient of concordance it is found that there is a significant

difference in the rank assigned by respondents towards the attributes that gives

them satisfaction in the company.

From One Run Test it is found that the samples are taken randomly.


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SUGGESTIONS

Employee should be provided with proper training.

Employee should be appreciated for good work.

Employee should be motivated to welcome the change.If any changes are brought in to software or any module is added then proper

training should be given.

Conclusion

Retention is an important concept that has been receiving considerable attention

from academicians, researchers and practicing HR managers. In its essence,

Retention comprises important elements such as the need or content, search and

choice of strategies, goal-directed behavior, social comparison of rewards

reinforcement, and performance-satisfaction. The increasing attention paid towards

Retention is justified because of several reasons. Motivated employees come out

with new ways of doing jobs. They are quality oriented. They are more productive.

Any technology needs motivated employees to adopt it successfully. Several

approaches to Retention are available. Early theories are too simplistic in their

approach towards Retention. For example, advocates of scientific Management

believe that money is the motivating factor. The Human Relations Movement posits

that social contacts will motivate workers. Mere knowledge about the theories of

Retention will not help manager their subordinates. They need to have certain

techniques that help them change the behavior of employees.One such technique is

reward. Reward, particularly money, is a motivator according to need-based and

process theories of Retention. For the behavioral scientists, however, money is notimportant as a motivator. Whatever may be the arguments, it can be stated that

money can influence some people in certain circumstance. Being an outgrowth of

Herzbergs, two factor theory of Retention, job enrichment is considered to be a

powerful motivator. An enriched job has added responsibilities. The makes the job

interesting and rewarding. Job enlargement refers to adding a few more task

elements horizontally. Task variety helps motivate job holders. Job rotation involves

shifting an incumbent from one job to another.

Recommendations

1. Develop an attractive employee value proposition.

An employee value proposition means that your company has something attractive

to offer that is perceived as valuable to an employee. as an employer, you must

understand what makes your organization attractive to potential recruits and

current employees. Branding yourself as an employer of choice is not just a slick set

of marketing tactics. The best advocates for an employers brand are its current

employees. What messages do they send to others about their employer? Are they


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honestly saying and believing that,

This is a great place to work.

2. Create a total reward structure that includes more than compensation.

Every company should have all the normal compensation mechanisms common to

their type of employment. yet, total rewards packages go far beyond money. Whilemoney might temporarily retain employees, it does not always equate with

engagement. People want a chance to make a difference and realize themselves.

That self-realization is multi-dimensional and different for each employee. The total

reward structure should include,

in addition to compensation, support for employees to attain their personal

objectives aligned with the goals of their organization.

3. Give feedback on employee performance on a regular basis.

Most managers and employees are not enamored with the performance appraisal

process in their organization. yet, an effective performance management process

serves many purposes. Ongoing performance feedback allows employees to better

know where they stand, gives them a formal means to provide input, indicates that

their managers pay attention to them and that their performance matters. This

feedback contributes to employee engagement and retention.

4. Be flexible in terms of work-life balance.

Workers more and more value a balance between work and life. They want more

flexible ways to engage with their employer. To attract and retain workers with

different work and career expectations, organizations have to be more flexible in

structuring work and

its expectations. It calls for a different managerial mindset and practices thatinvolve letting go of old ways of controlling workers time and attendance in favor of

result criteria such as output, productivity and quality.

5. Create a culture of engagement.

Employees have become more connected with others in the organization (and the

broader supply-and-customer chain) through project-based team work and process

management activities. Employees are shifting their loyalty to people, teams and

projects and away from company loyalty. It is organizations that create the culture

and climate that allow people, processes and projects to become fully connected

and engaged with one another. Engaged employees are more likely to stay withtheir employer.

6. Train managers to be effective.

Exit interviews consistently show that poor and bad management practices

greatly contribute to an employees decision to leave a company. It is imperative to

provide supervisors and managers with adequate tools to become effective

managers since we cannot assume that these competencies are innate. Professor


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Patrick Connor, recently

retired after teaching 25 years at the atkinson Graduate school of Management, is

famous among MBA students and alumni for his Connorisms.He told them, your

employees do not work for you, they work for themselves. When I teach my

students about managing organizations, I have them reflect on what really matters

to employees and what they are constantly asking of their managers and theirorganizations. In the end, what employees expect of their managers is fairly simple:

Can I trust you? are you

committed to excellence? Do you care about me? What people constantly ask

of their organization is: Do you tell the truth? Do you keep promises? Do you act

fairly? Do you respect me? Managers and organizations that keep these questions in

mind will have a competitive advantage over others in retaining their employees.

BIBLIOGRAPHY

BOOKS

Human Resource Management C.B.Memoria

Research methodology C.R.Kothari

Journals, Newspaper and Internet

53 53 employee retention project report

Documents