seil cemical
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SUMMER TRAINING
HELD ATSIEL CHEMICAL COMPLEX
RAJPURA
STUDY PERIOD(1.6.2012 TO 15.07.12)
PROJECT REPORT
ON WORKING CAPITAL MANAGEMENT
Submitted to Submitted by
Mr. A D Maggu Konica Kukreja
Sr. Manager (A/ F) M.Com(f.m.)
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PREFACE
In today’s competitive world of real business finance and accounting have assumed
critical importance, as finance is the real blood of the business. Every business
whether it is big, medium or small needs finance day to day, to cover its daily
requirements.
The report has been prepared after the completion of 6 weeks summer training
period. In this report brief information about accounts department & project have
been included. The style adopted is simple one fully supported by diagrams at
appropriate places, charts and Performa’. The primary aim is to present in a simple
way and to include the relevant topics.
My summer training report in Siel Chemical Complex is the requirement for the
successful completion of my educational course. Here I have prepared my report
on the accounting aspects covered under various sections of the Accounts
Department named as:
Finance Section, Sales Section, Purchase Section, Contract Section and Costing
Section other than Sales have been covered under the General Accounting systems.
Since everyone has its own way of analyzing and interpreting the facts and figures.
I have presented this report in my own humble way and spent considerable time in
these sections. I also tried to prepare this report with my best experience and
knowledge.
Konica Kukreja
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ACKNOWLEDGEMENT
I am indebted to the Company and HRD Department, who have given me anopportunity to enlarge my knowledge, which I have gained during my six weeks
training program.
It was indeed a great pleasure to have a training program in the Siel Chemical
Complex at Rajpura. Here I learnt the practical utilization of the knowledge in my
respective field of Finance and also got the real picture of the formal and informal
culture of the eminent manufacturing unit.
I am extremely thankful to Mr. A D Maggu Sr.Manager (Fin. & A/cs.) for his
valuable guidance. This project bears the imprint of Managers/Officers of the A/cs
& Finance department. I shall remiss in my duty if I do not thank them, I pay my
regards to:-
Mr. Amit Kumar, Mr. Khandelwal, Gurvinder Singh, Sandeep Kumar,
Varinder Bhatia, S.N.Pandey, for their assistance , co-operation andencouragement offered by them.
I also express my gratitude to those of my colleague trainees who have
sacrificed their valuable time for assisting me directly and indirectly in my report
making.
Konica Kukreja
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DECLARATION
I hereby declare that the project done by me s true to my knowledge. The project
duration was of 6 weeks 1.6.2012 to 15.7.12. The information collected by me isauthentic and is done through data analysis and interpretation and I have a
thorough by the project.
The content of this report is based on the information collected from the financeand accounts division, Siel Chemical Complex, Rajpura and also from the annualreport all calculations are done as per the methodology of Siel Chemical Complex,
Rajpura.
Place: RajpuraDate:
Konica Kukreja
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contents
1. ESTABLISHMENT OF SIEL GROUP
2. COMPANY PROFILE, ORGANISATIONAL BREAK UP
3. MANUFACTURING PROCESS
4. INTRODUCTION TO ACCOUNTING SYSTEM
5. WORKING CAPITAL MANAGEMENT (WCM)
6. FINANCING OF WCM
7. PROFIT/LOSS A/C
8. BALANCE SHEET
9. MANAGEMENT OF CASH, INVENTORY, & RECEIVABLES
10. MIS SYSTEM
11. RESEARCH METHODOLOGY
12. SUGGESTIONS
13. BIBLIOGRAPHY
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CHAPTER -1
Siel Chemical Complex – A Brief
Siel CHEMICAL COMPLEX, RAJPURA
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SIEL CHEMICAL COMPLEX, RAJPURA – A Brief
Siel chemical complex (Earlier a Unit of Siel Limited) has floated a subsidiary
company under the name and style of Siel Industrial Estate Limited for
implementation of the Memorandum of understanding (MOU) between Siel
Limited and Punjab Government for setting up an Industrial Estate of 1084 acres
at Rajpura, District Patiala (Punjab). In terms of the MOU, Punjab Government
would acquire the land and transfer unencumbered possession to the Company.
The Government of Punjab has given Company possession of 540 acres.
Siel Chemical Complex, a unit of Mawana Sugars Limited (formerly known as
Siel Ltd.), belongs to one of the first and oldest business houses of India with a
turnover of over Rs.200 crs. It is located at village Khadauli (now known as
CHARATRAMPUR.) in Rajpura Town, district Patiala (Punjab) by acquiring
land from Siel Industrial Estate Ltd. It is part of the overall development plan of
the company to convert the entire land acquired into an industrial park.
The unique technological status of Siel Chemical Complex has given it a
distinctive edge, enabling it to produce a wide range of Chemicals that are vitally
essential in the industry. It’s vast and experienced industrial background has
ensured its emergence as one of the largest integrated chemical units in India.
Today, apart from manufacturing a wide range of chemicals under one roof, Siel
Chemical Complex has also acquired state-of – the – art technology and expertise
to produce and market Caustic Soda, Stable Bleaching Powder and
Chlorine.From its position of leadership in the industry, with an unparalleled
standard of commitment to quality and customer satisfaction, Siel Chemical
Complex has expanded its operations and market to over many countries abroad
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COMPANY PROFILE
MAWANA SUGARS LTD
(FORMELY KNOWN AS SIEL ltd)
Siel Chemical Complex (SCC) – a Unit of Mawana Sugars Ltd
Siel Chemical Complex is a Unit of Mawana Sugars Ltd. (Formerly known as Siel
Ltd) with a gross turnover of about Rs. 200 Crores. It is located at Village –
Khadauli, (Charatrampur) in Rajpura town, District Patiala (Punjab).
The unique technological status of SCC has given it a distinctive edge, enabling it
to produce a wide range of chemicals that are vitally essential in the Industry.
Today apart from a wide range of chemicals under one roof, SCC has also acquired
a State of Art Technology and the expertise to produce and market Caustic Soda
and Stable Bleaching Powder. Its vast and experienced industrial background hasensured its emergence as one of the largest integrated Chemical Units in India.
SCC - AN ENVIORNMENT CARING COMPANY
SCC is an environment caring company and has taken strict preventive measures to
ensure minimum harm to environment. All the process stream carrying toxic gas
having hazardous impact on the atmosphere is kept under vacuum so that in case of
any accidental leakage of chlorine the entire gas is sucked and taken to waste air
destruction.
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MAJOR BUSINESS LINES – MAWANA SUGARS LTD
MAWANA SUGAR WORKS, UTTAR PRADESH
Mawana Sugar Works (MSW) is located at Mawana, District Meerut, and Uttar
Pradesh on Meerut-Hastinapur Road. It is about 25 kms away from Meerut. The
capacity of this Unit is 12,000 TCD. (MSW) is an ISO 9001:2000 company.
TITAWI SUGAR COMPLEX, TITAWI (UTTAR PRADESH)
Titawi Sugar Complex is located at Titawi, District Muzaffarnagar Uttar Pradesh
on Muzaffarnagar – Shamli Road. It is about 15 kms from Muzaffarnagar. The
capacity of this Unit is 10500 TCD with Suphitation (DS) process.
NANGLAMAL SUGAR COMPLEX , NANGLAMAL (UTTAR PRADESH )
Nanglamal Sugar Complex (NSC) is located at Nanglamal, District Meerut, and
Uttar Pradesh. It is about 35 kms away from Meerut. The capacity of this Unit is
7000 TCD.
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ORGANISATIONAL BREAKUP
(BUSINESS WISE)
Mawana Sugars Ltd.
SUBSIDIARIES ASSOCIATE CO.(UNITS)
1. SFSL INVESTMENTS LTD. USHA INTERNATIONAL LTD.
2. SIEL INDUSTRIAL
ESTATE LTD.
3. TRANSIEL INDIA LTD. JAY ENGINEERING
WORKS LTD.
4. SIEL FINANCIAL SERVICES
5. SIEL EDIBLE OILS LTD.
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MANUFACTURING PROCESS
1. Chlorine and Caustic Soda are produced simultaneously when electricity is
used to break apart a standard table salt molecule.
2. The process starts with salt being dissolved in water stream to form brine.
3. The brine is then treated to remove any impurities.
4. The treated brine is then fed to the Cell Room- the place where electrolytic
cell resides.
5. The Cells are like big batteries with a positive Anode and negative Cathode.
6. The electricity is passed through the brine solution. At the Anode Chlorine
Gas is generated.
7. The Chlorine is then cooled, dried, compressed, liquefied and stored.8. At the Cathode Caustic Soda and Hydrogen are generated.
9. The Caustic Soda is forwarded to an evaporation system where the excess
water is removed.
10. The Hydrogen is normally fed to an on site boiler for stream generation.
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PROCESS OF ELECTROLYSES
(Salt + treated water) Brine
(+) Purifying chemicals
Electrolyzed in cells (membrane process) CELL HOUSE
Cell Liquor (32 to 33% Caustic Soda)
Evaporation Process Caustic Soda Lye (47.5% concentration)
Fusion House
SBP Plant
Caustic Soda Hydrogen Chlorine
Flakes
Burnt in sold in Hydrochloric Liquified and sold
Boiler market Acid in the market
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Organizational Structure of SCC
G.M. (works)G M (WORKS)
Manufacturing
Department
Engineering
Department
Administration
Department
Accounts &
Finance
Department
Safety
&Environme
ntDepartment
Material
Department
Quality
Control
department
Marketing
Departmen
Head of Deptt
Managers &Subordinate
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INTRODUCTION OF ACCOUNTING DEPARTMENT
Organization Chart of Accounts Department
Accounts Department in the SCC is divided into following Sections:
General accounting section
Purchase Section
Sales Section
Contract Section
Service section
Costing Section
Finance section
General
section
Finance
section
Purchase
section
Service
section
Contract
section
Costing
section
Sales
section
Manager (A/CS AND FIN.)
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General Accounting Section:
This section deals with preparation of trial balance, profit & loss account, balance
sheet, audit of final accounts and analysis thereof. The other sections of the
account department are also within the scope of general accounting.
The balance Sheet & profit & loss account are prepared at the year-end for the
purposes of statutory compliances. However, Company is also preparing quarterly
Balance Sheet and Profit & Loss Account for publishing of quarterly results.
Preparation of Trial Balance, Profit & Loss Accounts and Balance
Sheet The Company prepares Balance Sheet & Profit & loss account at the
year-ended. However, the company is also preparing quarterly Balance
Sheet and Profit & Loss Account at the end of every quarter for the purpose
of publishing quarterly results. These results are required to be audited after
the end of every quarter. On line system has been developed for the purpose
of smooth operation of final accounting functions in the Organization. Before preparation of final accounts, it is considered whether following
accounts have been completed or not:
Income Vouchers: Sales Vouchers
Other incomes vouchers
Export Sales
Provision of Duty Entitlement Pass Book (DEPB)
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Expenditure Vouchers:
Raw Material Consumption Vouchers
Store Consumption Vouchers
Power Consumption Vouchers
Other Administration provisions:
Insurance
Repairs & Maintenance
Profit & Loss Account: Profit & Loss account depicts the result of financial
operations undertaken during the year.
Name of the Unit - Siel Chemical Complex
Profit & Loss Account for the year ended----March 31, 2012
Amount (Rs/Lacs)
Particulars For the year
Ended
30.03.2012
For the year
Ended
31.03.2011
Income
Sales-Outside
-Inter Unit Transfers
Total sales
Less : Excise duty- outside
-Inter Unit
20398.01
73.96
20471.97
2044.98
6.91
23159.30
118.94
23278.24
2191.56
10.80
Net Sales
-Services
Other income
Total
18420.09
67.67
18487.76
21075.88
62.37
21138.25
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Expenditure
Manufacturing & Other exp.
Excise Duty
Interest
Depreciation
Provision for Taxation
Misc. exp. To be written off
Profit/loss before tax
Fringe benefit tax
16592.91
0
109.73
1151.12
0
0
274.00
0
20655.09
0
168.04
1723.29
0
0
(1408.17)
0
Net Profit /Loss after Tax 274.00 (1408.17)
Analysis of Final Accounts
Ratio Analysis
Variance Analysis
Ratio Analysis
1. Stock turnover ratio: This ratio tells the velocity of conversion of finished
goods into sales. This ratio has increased this year. The reason being increase in
the sales volume and operational efficiency.
2. Average holding period: Shorter is the period better it is. As far as
company is concerned the ratio has showing a positive sign for the company
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3. Debtors turnover ratio: This ratio tells the frequency with which our
debtors are converted to sales. The ratio has increased this year resulting into
prompt realization from debtors
4. Average collection period: The average collection period has decreased due
to the efficient performance of the collection machinery.
5. G.P. ratio: This ratio has increased this year due to increased sales volume.
6. N.P. ratio: This ratio has increased the reason being decrease in the Gross
Loss and some operational expenses e.g. interest cost.
7. Return on net worth: This ratio is calculated by dividing the PBIDT (profit
before interest and depreciation and tax} to capital employed.
8. Debt Equity ratio: It tells the proportion of owner’s funds and outsider
funds in the total capitalization.
Variance Analysis The variance analysis is done to point out reasons of variances
in the figures of current year and previous year, the reason being if there thevariation is more than 10% then the reasons are to be specified for the variation.
Each item of the finance statements is brought under
Profit & Loss Account items
Items Remarks
Sales - Rate Variance
- Quantity Variance
Excise duty Varies directly with sales (volume vis a
vis rate)
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Stock Movement of stock
Raw material consumption - Rate variance- Quantity variance
- Efficiency variance
Power & Fuel - Rate variance- Variance in production
- Efficiency variance
Administrative expenses General reasons observed to be reported
Sales and distribution expenses Varies with sales
Interest - Vales with debts
- Rate of interest
Depreciation Value of assets
BALANCE SHEET ITEMS
Items Remarks
Fixed Assets Deletion/Addition
Investments
Debtors Shifting of cash sales to credit sales
or vice versa
Stock Movement of stocks
Loan Raising/Repayment
Current Liabilities
-Creditors-S.T. loans
Repayment/Purchase
Raising/Repayment of loan
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FINANCE ACCOUNTING
Finance section deals with finance accounting .It deals with:
1. Raising of finance 2. Management of finance
Raising of Finance
Term Debt - Presently the Company is debt free company and owes no long-
term debt from any Financial Institution.
Working Capital Limits - The Company is having Working Capital Facility
with Punjab National Bank, New Delhi.
PURCHASE ACCOUNTING
The SCC, Accounts Department has assigned this job to its Purchase Section. This
section has an important task in the Organization, which directly affects the cost of
product as well as quality, efficiency and prompt delivery of goods. In SCC, there
is separate Purchase Dept and the responsibility for purchasing all types of material
is entrusted to this dept. i.e. centralized purchasing is followed.
Types of Goods Purchased
Raw Materials:
1. Salt 2. Lime stone 3. Quick Lime
Store Items:
1. General Store 2. Packing material 3.Capital Goods
General store includes - Spares, Nuts, Bolts, Pipes etc.
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Packing stores includes - Chemical, Packing material and Furnace Oil
Capital Goods includes - Plant & Machinery
Whatever material is purchased, the quality analysis is required so that the material
is as per specification. Accordingly, the penalty is levied or bonus is paid to the
supplier of the material.
Accounting for Purchases Receiving of purchase order - Accounts Department
receive the purchase order from the material dept. and checks that it is properly
authorized and signed by the concerned authorities because this is the main
document of passing MRN. Receiving of MRN - The accounts work start with the
receiving of MRN from the store dept. the following documents are received by
accounting department.
1. General Stores MRN
2. Packing Material MRN
3. Capital Goods MRN
4. Raw Material MRN
Checking of MRN - MRN is checked with reference to:
1. Matching of quantity with invoices.
2. Verification of Gate Entry on the basis of Purchase Order.
3. Signature with Date & Time of Receipt.
4. An Invoice for which MRN is prepared is duly attached.
5. Any other document if required is also attached.
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Comparison of Invoice with Purchasing Order: Rate, Quantity & Discount
CST\VAT and excise duty
Goods delivered with the delivered with the delivery schedule and appraisalof goods by authority.
Payment Procedure
1. Creation of Advice
2. Authorization of Advice
3. Disbursement of Payment
SALES ACCOUNTING: Sales are the major revenue generating activity of the
company. The main focus of the management is to maintain consistent quality and
to have large scale of sales. So that more profitable units exist in the company.
Sales section deals with domestic as well as export sales. Export sales include
Nepal and Bangladesh and business is transacted through US Dollars.
Sales is divided in to two parts:
• Domestic Sales
• Export Sales
Domestic Sales:
Domestic Sales is generally done through dealers but sometimes the sales is made
directly to the customers
Export sales:
Out of the total quantity sold, 10% is Export Sales is sold in the Domestic Market.
The Company exports the following two products.
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• Stable Bleaching Powder
• Caustic Soda Flakes
Majority of exports are made to the countries, Malaysia, Thailand, Bangladesh,
Bhutan, Nepal and Sri Lanka.
Accounting Treatment
• Creation of Advice
• Authorization of Payment
• Disbursement of Payment
Payment of sales is in the form of Blank or Post Cheques, Demand Draft. Firstly
Chemical Sales Department receives the payment. After receiving the payment
forwards the payment advise on the online system to the Accounts Department and
advice is created than authorized, finally ready for disbursement. Here 99.0%
Domestic Sale is through Ex-factory Sale.
CONTRACT ACCOUNTS
Contract Section deals with contract accounting. Related with either along with or
not the material required for service. This section deals with service contracts of
both revenue & capital nature. The main activities undertaken here are: passing of
different MRNs, making of payment, deduction of TDS, deduction of work tax and
depositing it with government.
TYPES OF CONTRACT
Service contracts for:
- Security- Labour
- Facility such as Bus Service
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• Lease Contracts
• Capital Contracts
Accounting Treatment
• Passing of Bill
• Authorization of Bill Payment Advice (BPA)
• Payment of bill after deduction of TDS
SERVICE ACCOUNTING
Service Section deals with the services related to employees. This section does the
accounting work relating to preparation of pay roll of Workers and Staff,
Reimbursement of Expenses made by employee’s expenditures relating to
organizational schemes and statutory obligations regarding the employees. The
main functions of this section are performed as under:
• Wages & Salary Administration
• All types of payment handling of Employees
• Handling of Operational Expenses
• Employee Provident Fund & Employee Pension Scheme
• All types of expenses relating to Employees
Wages & Salary Administration
In SCC laborers are paid wages on monthly basis and there is guarantee of
minimum wages under minimum Wages Act 1948, incentive are also provided to
laborers under productive link incentive scheme. Wages are paid on 5th of every
month and salary is paid on 7th of every month.
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The service accounts section handles all types of payments and bills are received
and journal voucher advices or cash payment advice is prepared. e.g.
• Leave Traveling Allowance
• Local Conveyance Allowance
• Conveyance Allowance
• Entertainment Expenses
• Telephone Expenses
• Canteen Expenses
• Medical Expenses
• Any other Expenditure
Operational Expenses:
Expenses incurred for the welfare of the employees are
accounted in the service accounts section.
• Festival Expenses
• Library
• Medical
• Annual Sports
• Daughter Marriage Fund – Interest @ 8.5% p.a.
Employee Provident Fund/Employee Pension Scheme
It is compulsory deduction of 12% from the basic pay of the employee towards the
Provident Fund. The employer contributes an equal amounts which is divided into
two parts.
EPF - 8.33%
EPS – 3.67%
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Payment Procedure
• Verification of bills
• Advice creation
• Authorization of bills
• Disbursement of bills
COST ACCOUNTING
The Costing Section is maintaining the records of productions as well as sales as
required in the Cost Audit process and involved in controlling the overheads with
budgets and also responsible for Management Information System.The Costing Section in SCC is compulsory under Costing and MIS. Following are
the objectives of maintaining of Costing Section.
• To fulfill the Statutory Compliance.
• To control the cost i.e. to measure the measure the efficiency of organization
and cost center wise.
• To ascertainment the cost
• To reduce the cost
• To present the cost data to management as and when required
Function Performed by Costing Department
• Preparation of monthly income & expenditure statement
• Statement of production/sales/stock
• To make out the cost each product-caustic flakes, SBP, sodium hypo
chlorine
• Quarterly reports
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INTRODUCTION
The advancement in science and technology has further influenced the business
environment globalization has made the business scenario more competitive. The
captains of the industries have to keep themselves abreast with changing
environment.
The modernization has brought in many changes in HRM and HRD there
by enhancing the scope and responsibility of HR executive/manager. The HR ismost precious asset of an organization which has direct influence on functional as
well as product ional aspect of the company. The subject as such or dealing with
the HR may appear simpler but human beings are complex creatures. Thus,
demanding a great deal of attention in dealing. There are various theories,
strategies on HRM/HRD. Accordingly there numerous function of HR executive
likes manpower planning, recruitment, selection, induction and retention of the
best employee.
The retention of suitable employee goes way in enhances the
knowledge resource of the organization. This in the broader sense implies
motivation and retention of the talent by understanding employee’s aspiration,
needs and providing him the opportunities for his development and prosperity.
Such employees will place any organization at the advantageous position in the
competitive market. It therefore, merits proper strategy and policy so that the
entire process of acquiring knowledge resource becomes cost effective. The
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different organization may have there own ways to implement such policies but
importance of retentions is critical to every organization.
RETENTION (Love them or loose them)
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.
The top organizations are on the top because they value their
employees and they know how to keep them glued to the organization.
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.
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Retention involves five following major things
Compensation
Growth and career
Support
Relationship
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Environment
1.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
o Basic wage
o House rent allowance
o Dearness allowance
o City 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 employee’s performance and his
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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 have
somebody to take care of them in bad times. It also shows the employee that the
organization cares about the employee and its family.
After retirement: It includes payments that an Employee gets after he retires like
EPF (Employee Provident Fund) etc.
Miscellaneous compensation: It may include employee assistance programs (like
psychological counseling, legal assistance etc), discounts on company products,
use of a company cars, etc.
2.Growth and Career
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wth 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.
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 f oster organizations goals. Employees’
priority is to work for themselves and later on comes the organization. If he’s not
satisfied with his growth, he’ll not be able to contribute in organization growth.
Training and development: Employees should be trained and given chance to
improve and enhance their skills. Many employers fear that if the employees are
well rained, they’ll leave the organization for better jobs. Organization should not
limit the resources on which organization’s success depends. These trainings can
be given to improve many skills like:
Communications skills
Technical skills
In-house processes and procedures improvement related skills
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customer satisfaction related skills
Special project related skills
Need for such trainings can be recognized from individual performance reviews,
individual meetings, employee satisfaction surveys and by being in constant touch
with the employees.
3.Support
Lack of support from management can sometimes serve as a reason for employee
retention. Supervisor should support his subordinates in a way so that each one
of them is a success. Management should try to focus on its employees and
support them not only in their difficult times at work but also through the times
of personal crisis. Management can support employees by providing them
recognition and appreciation.
Employers can also provide valuable feedback to employees and make them feel
valued to the organization.
The feedback from supervisor helps the employee to feel more responsible,
confident and empowered. Top management can also support its employees in
their personal crisis by providing personal loans during emergencies, childcare
services, employee assistance programs, counseling services, et al.
Employers can also support their employees by creating an environment of trust
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and inculcating the organizational values into employees. Thus employers can
support their employees in a number of ways as follows:
ognition and rewards
4.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. There are times when an
employee starts feeling bitterness towards the management or peers. This
bitterness could be due to many reasons. This decreases employee’s interest and
he becomes de-motivated. It leads to less satisfaction and eventually attrition.
A supportive work culture helps grow employee professionally and boosts
employee satisfaction. To enhance good professional relationships at work, the
management should keep the following points in mind.
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Respect for the individual: Respect for the individual is the must in the
organization.
Relationship with the immediate manager: A manger plays the role of a mentor
and a coach. He designs ands plans work for each employee. It is his duty to
involve the employee in the processes of the organization. So an organization
should hire managers who can make and maintain good relations with their
subordinates.
Relationship with colleagues: Promote team work, not only among teams but in
different departments as well. This will induce competition as well as improve the
relationships among colleagues.
Recruit whole heartedly: An employee should be recruited if there is a proper
place and duties for him to perform. Otherwise he’ll feel useless and will be
dissatisfied. Employees should know what the organization expects from them
and what their expectation from the organization is. Deliver what is promised
Promote an employee based culture: The employee should know that the
organization is there to support him at the time of need. Show them that the
organization cares and he’ll show the same for the organization. An employee
based culture may include decision making authority, availability of resources,
open door policy, etc.
Individual development: Taking proper care of employees includes
acknowledgement to the employee’s dreams and personal goals. Create
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opportunities for their career growth by providing mentorship programs,
certifications, educational courses, etc.
Induce loyalty: Organizations should be loyal as well as they should promote
loyalty in the employees too. Try to make the current employees stay instead of
recruiting new ones.
5. 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
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Culture
Values
Company reputation
Quality of people in the organization
Employee development and career growth
Risk taking
Leading technologies
Trust
Types of environment the employee needs in an organization
1.Learning environment:
It includes continuous learning and improvement of the
individual, certifications and provision for higher studies, etc.
2.Support environment:
Organization can provide support in the form of work-life balance. Work life
balance includes:
o Flexible hours
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o Telecommuting
o Dependent care
o Alternate work schedules
o Vacations
o Wellness
3.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.
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EMPLOYEE RETENTION
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Retaining good employees is not as easy as it used to be. Companies need to be
on top of the game when it comes to keeping them, as well as motivating them.
Employee retention is simple to understand, but at the same time it can be difficult
to achieve. Knowing what employees want and need is a step in the right direction.
There are five main reasons that people tend to leave their organizations. Knowing
these reasons is crucial to help in preventing others from leaving. Once the
problems are identified, companies need to adopt several strategies that can be
used to increase retention.
Employee retention is keeping the employees that have already been hired.
When you have hired good people, trained them, built them into high-performing
teams, you don't want to loose them. Companies today invest so much time in their
employees that each time one leaves; it is like they are loosing an investment. It is
for this reason that employee retention had become a critical component of
workforce stability. Because a company invests in their employees, each time one
leaves the productivity declines. The time that is spent on training new employees
could be better spent on increasing production and profit.
Companies need to think about their image from the start. Make wise choices
when hiring. Give prospective employees a true picture of the organization. It is
important to match employee personality type to the climate and culture of the
company. Once an employee has been hired, there are several different things that
they want and need in order to remain loyal to the company. They include, "Clear
expectations and performance measurements, time to get and give performance
feedback, rewards and recognition,
and challenge and growth opportunities for the future"("After the Hire - Retaining
Good Employees", 1999.
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There are many different ingredients that go into reducing employee turnover.
There will be seven strategies focused on: money, building relationships between
employers and co-workers, a fearless culture, job satisfaction, Importance of
personal life.
Most executives believe that money is the reason employees stay put. "It isn't
that money isn't a key factor, it's just that money is merely the baseline, the
foundation upon witch the house of retention must be built"("Formula for
Retention", 1999). Money has always been a big factor in retaining employees, but
now employees want more. Therefore, it is always easiest to start with money,
because other strategies are not as easy for employees to buy into.
Retention is successful when emotional bonds are built. Therefore, building
relationships between employers and co-workers is important when it comes to
employee retention. Emotional bonds are strengthened by employers paying
attention to issues that are important to their workers. If employees feel that their
employers care about what goes on in their lives, they are going to feel special.
Employees want to have caring relationships with their co-workers and employers.
"Being able to speak up and speak against the status quo would be possible only in
a culture where there was no fear of retribution"(Stum, 1998). This is what is
meant by a fearless culture. Employees should be welcomed to challenge the way
things are being done. Companies need to let them know that honest and
confrontational communication is welcome, and that they will not be punished for it. The point of a fearless culture is to make the employees feel a part of the
company. The first step to establishing a fearless culture is to think
communication. Establish team meetings regularly in order to exchange
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information and develop new ideas about what should be being done within the
company.
Job satisfaction has been a recognized driver of organizational performance
for 25 years. Money alone does not promote loyalty and seldom retains motivated
employees. People want their work to make a difference and they want to be part
of something that matters. Just as job satisfaction affects productivity, quality and
morale, there is a strong correlation to commitment. Being placed in the right job,
with the right orientation, training, tools and resources is still a key organizational
success factor. Employees do not need much to feel satisfied. However, it is not
just tools and resources that are needed, but self-confidence and appreciation from
your co-workers and employers that aid in job satisfaction.
All employees today are interested in where the company is headed. They
want to believe in and have confidence about their company's future. Faith that all
will be well for the company and its employees is a key factor in retention.
Employees need to be sure of where the company is headed, because that gives
them some sort of security in their lives. Security is important because it will help
in retaining employees.
The factor that most significantly affecting workforce commitment is
management's recognition of the importance of personal and family life.
Employees need to know that
their family and personal life are important. However, this cannot only be done
through programs such as childcare and financial planning. Companies need
activities such as company picnics, bring your children to work day, and family
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safety fairs. If employees see that the company is really making the effort, they
will start to believe that the recognition of family life is really there.
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IMPORTANCE OF EMPLOYEE RETENTION
Now that so much is being done by organizations to retain its employees, why is
retention so important? Is it just to reduce the turnover costs? Well, the answer is
a definite no. It’s 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.
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.
2.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.
3.Interruption of Customer Service:
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Customers and clients do business with a company in part because of the people.
Relationships are developed that encourage continued sponsorship of the
business. When an employee leaves, the relationships that
2. employee built for the company are severed, which could lead to potential
customer loss.
3. 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. The unspoken negativity often intensifies for the
remaining staff.
4. 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.
5.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
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RETENTION MYTHS
The process of retention is not as easy at it seems. There are so many tactics andstrategies used in retention of employees by the organizations. The basic purpose
of these strategies should be to increase employee satisfaction, boost employee
morale hence achieve retention. But some times these strategies are not used
properly or even worse, wrong strategies are used. Because of which these
strategies fail to achieve the desired results.There are many myths related to the
employee retention process. These myths exist because the strategies being used
are either wrong or are being used from a long time. These myths prevent the
employer from successfully implementing the retention strategies. Let us learn
about some of these myths.
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1. Employees leave an organization for more pay: Money may be the
motivating factor for some but for many people it is not the most important
factor. Money matters more to the low-income-employees for whom it’s a
survival issue. Money can make an employee stay in an organization but
not for long. The factors more important than money are job satisfaction,
job responsibilities, and individual’s skill development. The employers
should understand this and work out some other ways to make employees
feel satisfied. When employees leave, management tries to retain them by
offering more money. But instead they should try to figure out the main
reason behind it. Issues that are mainly the cause of dissatisfaction are
organization’s policies and procedures, working conditions, relationship
with the supervisor and salary, etc. For such employees, achievement,
growth, respect, recognition, is the main concern.
Incentives can increase productivity: Incentives can surely increase
productivity but not for long term. Cash incentives, volume work targets
and speed awards are old management beliefs. They can generate work
speedily and in volumes but can’t boost employee commitment. Rather
speed can hamper the quality of work produced. What really glues
employees to their work and organization is quality
2. work, meaningful responsibilities, recognition, respect, growth
opportunities and friendly supervisors.
3. Employees run away from responsibilities: It is a myth that employees run
from responsibilities. In-fact employees feel more responsible if they are
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given extra responsibilities apart from their regular job. Employees look for
variety, greater control on the processes and authority to take decisions in
their present job. They want opportunities to learn and grow. Management
can assign extra responsibilities to their employees and appreciate them on
the completion of these tasks. This will induce a sense of pride in the
employee and will improve the relationship between the management and
the employee.
4. Loyalty is a thing of the past: Employees can be loyal but what they need is
an employer for whom they can be loyal. There is no reason for the
employee to hop jobs if he’s satisfied with the employer.
5.Taking measures to increase employee satisfaction will be expensive for the
organizations: The things actually required to improve employee satisfaction like
respect, career growth and development, appreciation, etc. can’t be bought. They
are free of cost. An employer or management that reacts well to the employee’ s
ideas and suggestions is enough for the employees to be retained.
REASONS WHY EMPLOYEES LEAVE
1. Expectations not met:
Expectations play a large part in determining whether an employee is satisfied or
dissatisfied with the current state of affairs.
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On joining the firm the individual will have a range of expectations covering areas
such as the style of management, the working hours, holidays, pay, bonus and so
on.
It is not unusual for employees to leave within the first six months when they
discover that things aren’t quite as they imagined they would be.
Their expectations may have been unrealistic from day one, but each departure is
yet more disruption, harming productivity, adding extra unnecessary costs and
making it more difficult to reach goals for sales, revenue and profitability.
Few firms seem to appreciate the importance of expectations. They don’t ask
candidates about their expectations, giving them the opportunity to select
someone who is unlikely to be disappointed, and therefore, more likely to stay.
2. Mismatch between the person and the role
Employees who find themselves in roles that do not suit their individual strengths,
tend not to stay around that long.
A productive employee gets promoted into a position that requires skills that they
do not possess. A role that exposes their weaknesses, and as a result, a role that
they do not enjoy.
Faced with the prospect of having to spend many months, perhaps years, in a job
that is a struggle, a job that they find difficult, a job that is a mismatch for their
specific talents, most of them choose to leave the company and go.
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3. Mismatch between person and the culture of the firm
It is not so much that there is a single ideal culture, more that cultures vary, and
as many departures show, not everyone is likely to be ideally suited to culture of
your firm.
Some workplaces are high pressured, fast paced, dynamic. Ideal for people who
thrive on adrenaline, who enjoy this tempo, constantly being on the go. Othersare caring, emotional, long discussions, shared views. Endless dialogue before
action is taken. Everyone’s opinion counts.
Put an employee in a culture that suits their temperament and they feel at home.
It is an environment in which they can function to the best of their abilities. But
put an employee in a firm whose culture does not suit their personality, their style
or their approach and it rarely works. They don’t settle, they under-perform, they
miss the feel of previous employers where they were able to contribute more.
They leave.
4. Insufficient opportunities for growth and advancement
Employees want to make progress, to get ahead. They want to make that next
step up the career ladder. They think about where they would like to be in 5 years
time, in 10 years time.
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Their loyalty is largely to themselves, to make the most out of the natural talents,
the skills, and determination they possess.
They recognize the importance of building new skills, refining current ones,
getting new experiences. If the opportunities aren’t available with their current
employer, they will find look elsewhere.
5. Insufficient recognition or appreciation
The Employees that don’t receive adequate recognition for their contribution,
that get little appreciation for their efforts, start to wonder why they bother. And
it doesn’t take much to tempt them away.
Employees that did not feel valued, that felt that their efforts, their hard work,
was not appreciated. That their achievements, their contribution to the success of
the business, was not recognised.
Employees want to feel valued; as though their role is important, as though the
business needs them. They want someone to say thank you. Thanks for that piece
of work, thanks for helping out in a crisis, thanks for dealing with that problem.
6. Problems with direct manager
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The state of the relationship between an employee and their direct manager goes
a long way towards determining whether they stay or leave.
Some employees stay far longer than might otherwise be expected because of the
relationship they have with their supervisor. Others leave jobs in the first few
months because they sense their manager is not someone that brings the best
out of them.
And they need to get away. Because the daily challenge of dealing with someone
they dislike, someone that lacks basic people skills, is just too much to bear.
Poor relationships between employees and their managers are one of the most
common reasons for employee turnover.
7. Dissatisfaction with pay
Not receiving a fair salary, a fair pay rise, a fair bonus. Dissatisfaction with
financial rewards is complex.
Much of the dissatisfaction is due to comparisons. A previously adequate salary
starts to feel insufficient when you have just learnt that a new arrival is receiving
a higher wage for performing a similar role
Salaries rarely remain a secret. The information leaks out. If it isn’t fair, if it isn’t
equitable, if the procedure for determining pay settlements is tainted, employees
become dissatisfied. And in time many of them leave.
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8. Stress
The stress of work, the stress from working long hours, the stress related to
pressure from above; employees can take only so much.
Stress drives employees into the arms of alternative employers. They simply want
to get away from the workplace, from the people involved, from the firm.
A stressful workplace is rarely a productive one. Attrition is high, people don’t
matter; there will always be someone else to fill the vacancy. And in time they too
will probably leave for much the same reasons.
Stressful work environments tend to be high turnover environments. If there is an
alternative, people take it.
9. Lack of work life balance
Employees have responsibilities to their employer, to their families, to their
friends. There are times when the demands of work require extra hours, staying
late to get things finished, working during weekends to meet deadlines.
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For some employees the demands of work are no longer compatible with the
needs of their family, the needs that exist beyond the workplace. Perhaps they
coped better when they were younger, before they got married, before they had
a family. But now the arrangement just isn’t practical.
They need a better balance. They need to have time for themselves. Time to take
care of loved ones. Free time not devoted to work.
10. Loss of confidence in the firm, particularly leadership.
Confidence matters. Companies go bust; you just need to read the papers, watch
the news, to realize the risk involved.
When employees lose confidence in the firm’s leadership they head towards the
exit door.
They know that confidence matters, that seemingly invincible companies can
collapse in days, if not hours. They don’t want to be left without a job, should the
company go under, or be taken over.
Other factors for Retention being a challenge are:
A robust economy
Shift in how people view their careers
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Changes in the unspoken "contract" between employer and employee
Corporate cocooning
A new generation of workers
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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.
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4. Have faith in them, trust them and respect them.
5. Provide them information and knowledge.
5. 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.
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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 employee’s 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 policies
Facilities for expectant mothers
Parking
Parenting guide
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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 office
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Ice 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)
Emergency childcare services
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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 support
Child adoption benefits
Flexible benefits
Providing conveniences at workplace
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Gymnasiums
Athletic membership program
Providing training and development and personal growth opportunities
Sabbatical programs
Professional skills development
Individualized career guidance
Dependents care assistance
Medical care reimbursement
High Level Strategies
Promoting Work/Life Effectiveness
Develop flexible schedules
Part-time schedules
Extended leaves of absence
Develop Support Services
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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
growth opportunities: It can be done through:
Mentoring programs
Performance feedback programs
Provide necessary tools to the employees to achieve their professional andpersonal goals
Getting the most out of employee interests and talents
Higher study opportunities for employees
Vocational counseling
Offer personalized career guidance to employees
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Provide an environment of trust: Communication is the most important and
effective way to develop trust.
Suggestion committees can be created
Open door communication policy can be followed
Regular feedbacks on organization’s 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 fromthe start of the recruitment process.
The new joinees should fit with the organization’s 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.
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An internship program can be followed to recruit the fresh graduates.
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MANAGING EMPLOYEE RETENTION
The task of managing employees can be understood as a three stage process:
1. Identify the cost of employee turnover
2. Understand why employee leave
3. Implement retention strategies
1.Identify the cost of employee turnover:
The organizations should start with identifying the employee turnover rates
within a particular time period and benchmark it with the competitor
organizations. This will help in assessing the whether the employee retention
rates
are healthy in the company. Secondly, the cost of employee turnover can becalculated. 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
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his or her job in the next two years.
2.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.
3.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 positive
Appropriate development opportunities are available to employees, and
that they are kept aware of their likely career path with the organization
The organization’s reward strategy reflects the employee drivers
The leaving process is managed effectively
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WAYS TO INCREASE EMPLOYEE RETENTION
Companies have now realized the importance of retaining their quality workforce.
Retaining quality performers contributes to productivity of the organization and
increases morale among employees.
Four basic factors that play an important role in increasing employee retention
include salary and remuneration, providing recognition, benefits and
opportunities for individual growth. But are they really positively contributing to
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the retention rates of a company? Basic salary, these days, hardly reduces
turnover. Today, employees look beyond the money factor.
employee retention can be increase by inculcating the following practices:
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1. Open Communication: A culture of open communication enforces loyalty
among employees. Open communication tends to keep employees
informed on key issues. Most importantly, they need to know that their
opinions matter and that management is 100% interested in their input.
2. Employee Reward Program: A positive recognition for work boosts the
motivational levels of employees. Recognition can be made explicit by
providing awards like best employee of the month or punctuality award.
Project based recognition also has great significance. The award can be in
terms of gifts or money.
3. Career Development Program: Every individual is worried about his/her
career. He is always keen to know his career path in the company.
Organizations can offer various technical certification courses which will
help employee in enhancing his knowledge.
4. Performance Based Bonus: A provision of performance linked bonus can be
made wherein an employee is able to relate his performance with the
company profits and hence will work hard. This bonus should strictly be
productivity based.
5. Recreation facilities: Recreational facilities help in keeping employees away
from stress factors. Various recreational programs should be arranged.
They may include taking employees to trips annually or bi-annually,
celebrating anniversaries, sports activities, et al.
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6.Gifts at Some Occasions: Giving out some gifts at the time of one or two
festivals to the employees making them feel good and understand that the
management is concerned about them.
RETENTION MEASURES
ADOPTED
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IN
ABC LTD.
MEASURES ADOPTED BY HR DEPT.FOR RETENTION IN
ABC Ltd
An employer has to introduce suitable measure step for reducing turnover to the
good employee which is best for the company though. It is not possible to re
move it completely. Such step should be related to the important causes
responsible for the high rate of turnover. The possible steps which company can
adopt follow:-
1.Proper selection:
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Right types of the people should be employed for various jobs. While assigning
work to the employees, their aptitude and interests should be duly considered.
This will make them feel interested in their jobs.
2.Proper Orientation:-
The new employees should be inducted should in such a way that their critical
attitude is reduced as possible to avoid turnover form this source.
3.Better Working Condition:-
The main cause of the employees due to hard nature of jobs and bad working
conditions. An employee can provide proper working condition so that workers
may not have industrial fatigue. Similarly, It is possible to make hard job a little
lighter by introducing suitable measures.
4.Provision of Transport and Housing Facilities:-
The main problem of employees quit due to housing, transport and other
difficulties. It is possible for the employer to provide free or confessional
transport facility to workers from residence to factory. This will ensure regularity
of worker
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5. Incentives &Bonus to regular employees:
Cash prizes may be given to those who are regular throughout the year. Workers
who are regular may be given special bonus for their regularity. Regularity in
attendance is given consideration while promotion. such positive measures
encourage workers to be regular in their jobs.
6.Prevention of accidents:
Industial accidents may increase absenteeism. The management takes adequate
safety measures to minimize industrial accidents in workshops.
7.Working environment:
The workers are provided congenial atmosphere to perform their duties. The
place is properly well ventilated. The lightning system is provided, proper fans
have been provided wherever required. Proper transport facilities are given
8.Canteen facilities.
The company has provided canteen for both staff &workers. The meals &tea is
provided to all workers at nominal rates.
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9.Medical, health &hygiene :
The company has a dispensary room to provide first aid facility to the employees
in accidents cases. A well qualified doctor also visits the company 3 times in a
week. The company also provided clean washrooms, changing rooms &pure
drinking facilities to the employees.
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RESEARCH
METHODOLOGY
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RESEARCH METHODOLOGY
A research design is the arrangement of conditions for the collection of data and analysis of data. Infact,
reseach design is the conceptual structure within which research is conducted.
Descriptive Research Design has been used by me
to solve each and every factor of given task. In the descriptive research
study, the main purpose is that of formulating a problem for more
precise investigation or of developing the working hypothesis forms an
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operational point of view. The major emphasis is on the discovery of
ideas and in sights.
DATA COLLECTION METHOD
According to the needed research for the project is both Primary and
Secondary data collection methods. We have used company
website and some publications on the net and information related to
vroucher for secondary data collection. To ensure the accuracy of the
primary data collection used is the structured interview method.
SAMPLING PLAN
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Sample Size:- 100 employees
Sample unit:- Bunge India Pvt .Ltd
Method of sampling:- Simple random
Sampling
Method of data collection:- Primary &
secondary
Research design :- Descriptive
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NEED
OF
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THE STUDY
NEED OF THE STUDY
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Retention has become a strategic priority in many organizations. “Cost reduction”
is the mantra of any contemporary successful business. As a competitive edge, a
company management is striving to identify and capture incentives that reward
expansion, production increase or investment geared to cost reduction or job
retention. Many companies have off-shored operations in order to cut cost and
increase profits. Finding and developing employees to fill critical positions has
become essential for organizations to compete in global economic market.
Company’s today invest so much time in their employees that each time one
leaves, it is like they are losing an investment. It is for this reason employee
retention had become a critical component of workforce stability
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OBJECTIVES
OF
THE STUDY
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OBJECTIVE
To high light the necessity of retention in prevailing business environment.
Analyze the existing system of retention adopted in ABC Ltd. In relation to the
objective of recruitment and selection system.
To identify the weakness in the system.
To suggest/recommend appropriate strategies changes in existing system.
To reduce employee turnover.
To reduce the cost of hiring a new employee.
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LIMITATIONS
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LIMITATION OF THE STUDY
Various limitation of the study are statistic with regard
To qualification requirement used in the project may differ from person to
person.
The data taken during the project study may not represent the realistic
picture. Hence there may be margin of error.
The information collected by me may be incomplete.
Small sample size taken at convenience might have affected the result of
the study.
Existence of biases in the respondent mind.
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GRAPHIC
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REPRESENTATION
1. If you look for a new Job, (in a new company) what will be your preference?
a) Career plan
b) Flexible Timings
c) Not improvement in position (Increase in other benefits)
d) Improvement in position
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0%
10%
20%
30%
40%
50%
60%
70%
a) Career plan b) Flexible Timings c) Not improvement in
position (Increase in
other benefits)
d) Improvement in
position
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2.How much areYou satisfied with the current job?
a) Very high
b) Fairely enough
c) Moderate
d) Very less
e) Not at all
0%
10%
20%
30%
40%
50%
60%
very high Fairely enough Moderate very less Not at all
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3. To what extent do you feel quitting the present job will give you a satisfied
job?
Very high
Fairely enough
Moderate
Very less
Not at all
0%
5%
10%
15%
20%
25%
30%
35%
very high Fairely enough Moderate very less Not at all
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4.Are you satisfied with the Facilities provided by the organization?
a) Yes
b) No
0%
10%
20%
30%
40%
50%
60%
70%
Yes No
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5.Are you satisfied with the working conditions with in the company?
a) Yes
b) N
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0%
10%
20%
30%
40%
50%
60%
70%
80%
yes no
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6.Do you feel that welfare measures provided by the company are satisfied?
a) Yes
b) No
0%
10%
20%
30%
40%
50%
60%
70%
Yes No
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7. Is your work hazardous?
a) Yes
b) No
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0%
10%
20%
30%
40%
50%
60%
70%
80%
Yes No
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8. What is the nature of your job?
a) Simple
b) Difficultc) Technical
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
simple difficult technical
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9.To improve your workplace environment what would you like to see your
managers or executives do for you ?
a) Better communication b) Try new things at work
c) Show more concern d) Listen to your ideas
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0%
5%
10%
15%
20%
25%
30%
35%
40%
Better communication Try new things at workShow more concern Listen to your ideas
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10.What could be done to improve retention?
a) Better benefits b) Pay more
c) Listen to employees grievances
0%
10%
20%
30%
40%
50%
60%
better benefits pay more listen to employees grievances
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ANALYSIS&
FINDINGS
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ANALYSIS & FINDINGS
I have made an effort to analysis the retention system of ABC for keeping in view
the policy and objectives defined by HR Department. Though, there are to
categories of employees i.e. staff and workers hence different categorization like
highly skilled, skilled, semi skilled and unskilled.
The best retention strategies and method remains the same. In my view following
salient:-
1 In ABC the manpower planning process insures that it has the right member and
right kind of people and at the right time doing the work for which they are
economically most useful.
2 The objectives at the spelt out as under:
To carry out accurate estimate of the number of employees
To identify skills requirement
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The above is in importance with the organization rules.
3 In ABC Ltd man power planning is based on annual requirements and not like
other corporate houses where the normal technique for manpower planning about
three to five years.
4 The basic aim is being to attract best available manpower in the market and seek
widest possible choice in selecting best candidate
5. Based on the requirements the personnel department mainly realize on
advertisement consultants or references.
6. The personnel department maintain the check list of requirements of the
position based on requisition to furnish by different department by own quartile.
7. The entire data is maintained by personnel department and organization of all
activities like recruitment, induction is carried out by personnel department.
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8. Though there is no retention strategy in written form in ABC Co Ltd. But certain
measures like providing better working environment monetary benefits and
medical facilities etc.
9. It has emerged from the records in ABC Company .Ltd. over a period of three
years that most of the people leave the company in the staff category i.e. to in
managers and above.
10. From the questionnaire part the following conclusion has been made by me
The employees in the ABC Co. Ltd mostly are not very satisfied. From the data
collected 60% of the workers want to go for other carrier opportunities due to not
improvement in the position where as 28% of the employees fell working
environment is good this shows that the most of the employees are not satisfied
from there company so most of the employees are willing to shift their job. The
employees think that there is less communication between workers and
supervisors so they feel that they are only employees but not part of the
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company they want that there salary should be paid according to work and there
work should be appreciated/recognized and the employees want flexible worked
hours and more employee participation
However there are two sides of every coin in the same way if the workers are less
satisfied that doesn’t mean they are very much willing to leave the job. The
employees are happy with the benefits provided to them like Medical facilities,ESI
leaves, formal family dinners, Low EMI on loans, Scholarship schemes for the
wards of the employees. Last but not the least other welfare schemes.
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SUGGESTIONS
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SUGGESTIONS
Having gone through the concept of Retention .I have found that all the aspects
have been addressed to in one form or the other but still there is a scope to
improve the existing system by incorporating new methods and strategies. I have
following suggestions / recommendations to make.
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For placing demand of requirements of manpower through advertisement,
public consultants. It is suggested that new methods to find out talent / job
seekers through internet etc. Personal data bank of ABC Ltd. should be
created so that whenever there is an urgent need of talented employee he
/ she can be contact immediately.
The form for interview trust should also include two desire columns i.e.
high skills and soft skills and interview committee should access the
individual keeping in mind organization culture so that culturally fit talent
is selected which will go away for long way to ensure retention.
There is a requirement to lay down retention strategy with its objectives
well defined. it should written format so that this important aspect is well
understood by all employees in true perspective.
Salaries , bonus , incentives and allowances keep the employees motivated
and they are one of the main reasons of retention so the employees should
be paid handsome salaries
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Company image should be enhanced. Regular events should be organized
and other social responsibilities of business should be performed by
company from time to time.
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CONCLUSION
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CONCLUSION
The retention of required talent is an important aspect to ensure overall
development of the organization. Such employees by remain satisfied and
committed to their job which enhances the productivity and overall working
environment providing and edge in the competitive market. At last we can say
that providing the proper facilities to the employee the problem in the
organization can be solved and then they definitely stay in their jobs and remain
regular in their work. The organization should also provide proper working
condition to the workers. When the organization provides such facilities to the
employees then the problem of attrition is checked at a large scale.
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ANNEXURE
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QUESTIONNAIRE
1. If you look for a new Job, (in a new company) what will be your preference?
e) Career plan
f) Flexible Timings
g) Not improvement in position (Increase in other benefits)
h) Improvement in position
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2.How much areYou satisfied with the current job?
f) Very high
g) Fairely enough
h) Moderate
i) Very less
j) Not at all
3.To what extent do you feel quitting the present job will give you a satisfied
job?
Very high
Fairely enough
Moderate
Very less
Not at all
4.Are you satisfied with the Facilities provided by the organization?
c) Yes
d) No
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5.Are you satisfied with the working conditions with in the company?
c) Yes
d) N
6.Do you feel that welfare measures provided by the company are satisfied?
c) Yes
d) No
7.Is your work hazardous?
a) Yes
b) No
8.What is the nature of your job?
a) Simple
b) Difficult
c) Technical
9.To improve your workplace environment what would you like to see your
managers or executives do for you ?
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BIBLIOGRAPHY
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BIBLIOGRAPHY
www.amritbanaspati.com
www.naukrihub.com
www.wikipedia.com
Shashi K Gupta and Rosy Joshi, “Organizational behavior”
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