hrm grp 5 employee retention
TRANSCRIPT
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HUMAN RESOURSE MANAGEMENT
PROJECT
PT-PGPM APRIL 2011 BATCH, Section – B, TERM-III
RETENTION OF EMPLOYEE
Introduction
Meaning of Employee Retention
Bad Effects of Poor Employee Retention
Need & Importance of Employee
Retention
Strategies to retain Employees 3 best strategies by group discussion.
Conclusion
SUBMITTED BY: Group -5 Submitted to:
Rahul yadav (60) Prof. J.K. Jain
Santosh Aman (77) MDI Gurgaon
Surender Midha (86)
Vikram Dutta (99)
Vivekanand (101)
Varun Sood (92 )
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Introduction
Employee retention has become very important topic of research & as well
as practical importance for HR practitioner’s .Each industry has employee
iteration as one of its biggest problem.
Bigger is the problem, biggest is the challenge to solve it .Each company
management is also trying to trade off between this challenge & fulfilling
the business short term as well as long term objectives.
So, as a group we took challenge to study this topic religiously within the
short allotted time & bring out some sensible learning out of our study
topic.
At the start we set our objective as study of various method of employee
retention & based on group discussion decide subjectively the best 3
methods generally in practice.
First of all we decided the methodology, which is as follow:-
1. Study the meaning of employee retention in detail & study why
employee need to be retained. This will help us to find more
constructive solution & will provide solution congruency to ourobjective.
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2. Study the related material from various books & through internet for
further clarity on way of proceeding.
3. Collection of data of various employee retaining practices of our self
companies in which we are working presently. Our group is a
heterogeneous group in term of employments, means 2 persons are
from software sector, 2 are from manufacturing company & 1 is in
marketing field & 1 is associated with Indian NAVY. So group itself
represent large part of industry. After data collection we decide to
compare various practices.
4. Data analysis & discussion of each practice in detail & rank based on
our subjective discussions & selection of first 3 practices which are
most impactful for employee retention.
5. At last we decided to discuss various other methods or practices
which HR & management can adopt to further strengthen their
practices & initiate new to retain good employee. To find out this we
decided to ask our self some questions.
Following question we decided to ask to ourselves in a group
5.1) Why we think to leave the present employer?
5.2) Why we left our past employer?
5.3) What are the bad practices our companies are doing, which
annoy & bring frustration among employees?
We thought about introducing some format to collect information & data,
but as it will bring in various constraints along with it & will kill the
individual creativity & innovation. So we decided to collect information &
data in free format & based on one’s access to HR practices.
So, due to limited time we cannot claim our study & conclusion is
comprehensive, but we tried to do justice with the subject & put our hard
work to collect correct & concise information related with this subject.
During this process we faced some difficulties also which we want to
jot down so that if this material is referred by someone ,the reader will be
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ready for the challenges & plan his / her course of actions by keeping in
mind the challenges faced by this group.
1. As topic heading was already decided, we jumped directly to the
course of action without deciding the concrete objective of group.This resulted in wastes of precious time. So it is imperative to decide
the ultimate objective concretely before start of work.
2. Decide the mile stone, this will help one to work consistently & more
effectively .Based on these milestones it is necessary to decide the
group meetings. This will bring self discipline in the group.
During Group discussion our discussion inadvertently turns in to exploring
need of employees & employers. Employee has some set of expectation
from the employer & at the same time of employer is also having some sort
of stated & unstated expectations. The employer who are capable enough to
match these two types of expectation from two different perspective ,are
able to retain their employees & in turn also grab places for the surveys like
most sought employer or First 10 Good companies to work.
What is Employee Retention?
Employee retention refers to the various policies and practices which
let the employees stick to an organization for a longer period of time.
Every organization invests time and money to groom a new joiner, make
him a corporate ready material and bring him at par with the existing
employees. The organization is completely at loss when the employees
leave their job once they are fully trained. Employee retention takes into
account the various measures taken so that an individual stays in anorganization for the maximum period of time. One question is always a
puzzling one whether efforts to be limited to few good employees or to all
.2nd question is which level is most important to organization. 2nd question
is relatively easy to answer because organization is group of peoples
working at different level & performing different level of tasks. So each
level is important to organization & Good employee need to retain despite
of level & position. As need of different level person is different making
policies of wide array of employees is challenge for HR professional. It is
biggest challenge to keep policies simple & yet comprehensive to satisfythe need of all level employees. So formulating strategies for Employees
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retention is very complicated process, but it is very much important for the
survival of any organizations. How important employee’s retention is for
any organization can be derived if one is able to see the effects of poor
retention. Some of the effect we have listed down below.
After effects of poor employee retention:
Every organization invests its time and money in training a new
joiner to bring him at par with the existing employees. The
organization is at a complete loss when the employees quit all of a
sudden. Hiring needs to be done all over again and still there is no
surety whether the new joiner would be apt for the profile or not?
One wrong person hired and the output of the entire team and
eventually the organization goes for a toss.
Employees who spend a considerable amount of time in any
organization know it in and out and thus can perform better.
They are well familiar with the company policies and adjustment is
never a problem. Employees who come and go find it very difficult to
settle down in a new environment and are thus always in a state of
dilemma.
Individuals who have the habit of changing jobs frequently
never get attached to any particular organization. They just treat
the organization as a mere source of earning money. They are never
serious about their work and fail to accomplish the tasks within the
desired time frame. It hardly matters to them whether the
organization is performing well or not? In cases of poor retention
policies, employees are just not bothered about the reputation of
their office and avoid taking initiative to do something new. The
employees who are there for a long time in the organization are
trustworthy and the management can rely on them anytime.
When individuals leave any organization, they are more likely
to join the competitors. Sometimes they tend to take confidential
data along with them to create an impression in their neworganization. This way the plans of the organization get leaked even
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Need & Importance of Employee Retention
Hiring is not an easy process: The HR Professional shortlists few
individuals from a large pool of talent, conducts preliminary
interviews and eventually forwards it to the respective line managers
who further grill them to judge whether they are fit for the
organization or not. Recruiting the right candidate is a time
consuming process.
An organization invests time and money in grooming an
individual and makes him ready to work and understand the
corporate culture: A new joiner is completely raw and themanagement really has to work hard to train him for his overall
development. It is a complete wastage of time and money when an
individual leaves an organization all of a sudden. The HR has to start
the recruitment process all over again for the same vacancy; a mere
duplication of work. Finding a right employee for an organization is a
tedious job and all efforts simply go waste when the employee leaves.
before implementation and they fail to do anything great.
An organization can’t perform well if the employees speak
negative about it . It is essential to have a group of loyalists who play
an important role in furthering the brand image of the company.
Employees working with an organization for a long time never
badmouth it and are somewhat emotionally attached to it .
People leaving in a short span always speak ill about their previous
organizations. The loyalty factor is almost zero and no one is ready
to take ownership of work.
Considering the above effects, it is clear that good employee need to be
retained. Let us understand why retaining a valuable employee is essential
for an organization.
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The employees working for a longer period of time are more
familiar with the company’s policies, guidelines and thus they
adjust better: They perform better than individuals who change jobs
frequently. Employees who spend a considerable time in an
organization know the organization in and out and thus are in aposition to contribute effectively.
Every individual needs time to adjust with others: One needs time
to know his team members well, be friendly with them and
eventually trust them. Organizations are always benefited when the
employees are compatible with each other and discuss things among
themselves to come out with something beneficial for all. When a
new individual replaces an existing employee, adjustment problems
crop up. Individuals find it really difficult to establish a comfort level
with the other person.
It has been observed that individuals sticking to an organization
for a longer span are more loyal towards the management and
the organization: They enjoy all kinds of benefits from the
organization and as a result are more attached to it. They hardlybadmouth their organization and always think in favor of the
management. For them the organization comes first and all other
things later.
It is essential for the organization to retain the valuable
employees showing potential: Every organization needs
hardworking and talented employees who can really come out withsomething creative and different. No organization can survive if all
the top performers quit. It is essential for the organization to retain
those employees who really work hard and are indispensable for the
system.
For an organization to do well and earn profits it is essential that the high
potential employees stick to it for a longer duration and contribute
effectively. The employees who spend a considerable amount of time tend
to be loyal and committed towards the management and always decide infavor of the organization. The management can’t completely put a full stop
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to the process of employees quitting their jobs but can control it to a large
extent.
Common strategies to retain an employee:
Work should never become monotonous and must offer a new
learning each day. An employee should be able to upgrade his skills
and enhance his knowledge at the workplace. Employees leave the
organization whenever there are no chances of further growth. An
individual must be made to do something which really excites him
and most importantly matches his background. The employees must
be asked to accomplish the tasks in the most innovative way for them
to enjoy their work. No one should be asked to do anything out of
compulsion. The team leader must not force anyone to work. Let them accept assignments willingly. The moment work becomes a
burden for the employees, they look for a change.
Constant disputes among employees encourage them to go for a
change. Conflicts must be avoided to maintain the decorum of the
place and avoid spreading negativity around. Promote activities
which bring the employees closer. Organize outdoor picnics, informalget together for the employees to know each other better and
strengthen the bond among them. Let them make friends at the
workplace whom they can really trust. Friendship among employees
is one strong factor which helps to retain employees. Individuals who
have reliable friends at the workplace are reluctant to move on for
the sake of friendship. No one likes to leave an organization where he
gets mental peace. It is essential to have a cordial environment at the
workplace.
The human resource department must ensure that it is hiring
the right candidate. Frustration crops up whenever there is a
mismatch. A finance professional if is hired for a marketing profile
would definitely end up being frustrated and look for a change. The
right candidate must be hired for the right profile. While recruiting a
new candidate, one should also check his track record. An individual
who has changed his previous jobs frequently would also not stick to
the present one and thus should not be hired.
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Employee recognition is one of the most important factors which
go a long way in retaining employees. Nothing works better than
appreciating the employees. Their hard work must be acknowledged.Monetary benefits such as incentives, perks, cash prize also motivate
the employees to a large extent and they prefer sticking to the
organization. The performers must have an upper edge and should
get a special treatment from the management.
Performance appraisals are also important for an employee to
stay motivated and avoid looking for a change. The salary hike
should be directly proportional to the hard work put by the
employees. Partiality must be avoided as it will demotivate the
talented ones and prompt them to look for a better opportunity.
The company’s rules and regulations should be made to benefit
the employees. They should be employee friendly. Allow them to
take a leave on their birthdays or come a little late once or twice in a
month. It is important for the management to understand theemployees to gain their trust and confidence. The consistent
performers must also have a say in the company’s decisions for them
to feel important.
An over burdened worker never finds his job interesting and
would always be eager for a change. It is the duty of the manager
to distribute the work equally among all the employees. The managershould not be partial to anyone and treat all his members as one. He
should not let negativity creep in the team. Nothing productive comes
out of disputes, rather it demotivate the individuals and prompt them
to look for some another opportunity.
Rules and regulations should be same for everyone. Avoid
granting special favors to anyone.
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The superiors must maintain transparency in communication.
Every team member should get the same information from their boss
for them to remain satisfied and loyal towards the organization.
Every individual should enjoy privacy at the workplace. The
superiors must ensure that no employee interferes in each other’s
work. Team members sitting at adjacent desks should not overhear
their colleague’s conversation or check any confidential documents.
These things lead to severe demotivation and prompt an individual to
look for a change. Discussion is important but one should not irritate
anyone. The team manager should also not make his team member’s
life hell. Just give them deadlines and ask them to complete the
assignments within the desired time frame. Motivate them to deliver
their best but don’t be after their life. Remember everyone is mature
enough to understand that work comes first, and everything later.
The seniors must be reachable to their subordinates in case of
queries. The hierarchy should not be too complicated and
transparency in communication is important at all levels.
Manipulation of truth should be strictly avoided as it leads to severemisunderstandings and eventually conflicts. Employees look for a
change when there are unnecessary disputes at the workplace. The
team leader once in a week must make sure to meet all the team
members on an open forum to address their concern. The meeting
should not be made too formal. Everyone should be allowed to bring
their cups of coffee. Such interaction strengthens the bond among the
employees and also avoids friction among individuals. It is essential
to have a positive ambience at the workplace for people to stick to it
for a longer time.
The management must formulate employee friendly policies.
The employees must be allowed to take one or two leaves in a month
so that they get time to rejuvenate. Don’t call the employees on
weekends. Let them enjoy. The human resource department must
take the initiative to celebrate birthdays of employees at the
workplace. This way people come closer, make friends, develop trust and are thus reluctant to go for a change. Major festivals should also
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be celebrated at the organization for employees to get attached to the
organization.
Incentives, cash prizes, trophies, perks should be given to
deserving employees to motivate them to perform up to the
mark every time. The salaries of the high potential employees must
be appraised from time to time as monetary dissatisfaction is one of
the major reasons for employees quitting their jobs. The hard work of
the workers must be appreciated. The slow learners must not be
criticized but should be inspired to gear up for the next time.
The performers must be made to participate in the decision
making process. They should have a say in the major strategies of
the organization for them to feel important and trust the
management.
Discipline is a must at the workplace. If the office timing is 9.30
am, every employee regardless of designation must punch his card at
9.30 am sharp or before that. No relaxation should be given to
anyone. Partiality is something which does not work in the corporateworld. It is important to maintain the decorum of the office to make
the organization a better place to work.
Group discussion & selection of 3 best strategies
Intention to leave and actual turnover are often highly correlated As group
we discussed about our companies & our intention to leave Based on self
analysis by asking what are the good & bad practices from individual point
of view & further refining with group discussion we were able to select 3best strategies which any organization can adopt to have better employee
retaining ratio.
These are as follow:
1) Creating positive & nurturing work environment where each employee
is able to engage & attach oneself to the job & can clearly see his/her future.
As per 2011 Employee Engagement Report , Inorganizations every individual is accountable for his or her
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own engagement; anyone with direct reports must coach team
members to higher levels of engagement and manage his or her
own engagement; and executives set the tone for high morale
and motivation plus shoulder the responsibilities of individuals
and managers. This will create positive work environment.This report clarifies those roles and responsibilities.
Individuals: Ownership, clarity and action. Individuals need
to know what they want — and what the organization needs —
and then take action to achieve both.
Managers: Coaching, relationships and dialogue. Managersmust understand each individual’s talents, interests and needs
and then match those with the organization’s objectives —
while at the same time creating personal, trusting relationships.
Furthermore, they need to discuss engagement often.
Executives: Trust, communication and culture. Executives
have to demonstrate consistency in words and actions,communicate a lot (and with a lot of depth), and align all
business practices and behaviors throughout the organization
to drive results and engagement.
Whether you play one, two or three of the roles described above, the 2011
Employee Engagement Report is designed to shed light on your quest for
creating a more meaningful, productive work experience for you and your
colleagues.
2) Creating company image in the eyes of employee, customer should be
good, supplier & all stakeholders. If image is good & have brand value,
employees will tend to work longer. Product & process technology should
be advance as per industry norm.
3) Transparency in business with its stakeholder. Especially with
employee’s organization should take care so that employees have trust in
management. Country cultural values & HR policies should be incongruence with each other.
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These are the 3 foremost important strategies from our group point of
view, but strategies can be selected based on actual situation.
Conclusion:
Thus, this study concluded that organizations could reduce turnover rate
by Improving the organizational climate. Any of the organizational climate
dimensions that perceived to be negative may trigger employees’ intention
to quit their jobs, more so for the less dominant and less sociable
employees. To reduce employee turnover rates, an organization should
eliminate unnecessary rules and procedures that are ineffective and
burdensome. High-performance employees should be empowered to make
decisions. Giving adequate decision-making authority makes employees
feel that they are valued and treated respectfully and hence will continue toserve the organization. Meanwhile, organizations should practice fair and
equitable performance-based rewards system and employees should be
paid what they are worth and not what the organization guidelines require.
Besides, if employees are working in an environment, that they can express
themselves and being developed with more interpersonal support and
opportunities for career advancement, the employees are more likely to
stay in the organizations. Therefore organizations should then provide
broad-skill training, organize mentoring programs and succession
planning. These activities motivate the good employees to stay as it Increases the promotion from within opportunities and provides
employees a greater sense of connection to the organizations. The
understanding of people develop perceptions of fit over time needs to be
emphasized. Perceptions drive individuals’ behaviors and choices and
employees tend to stay in organizations that perceived compatible with
their personalities. Hence, the management team needs to be observant
enough to understand the characteristics of employees they have and make
necessary changes and customize policies and systems accordingly. In a
nutshell, this study has demonstrated that Management should form anorganization that promote positive organizational climate which includes
well-defined job responsibilities and policies with flexible structure, fair
and equitable rewards system as well as a supportive and friendly work
atmosphere. Positive organizational climate exerts and enhances
employees’ job satisfaction and hence less likely to look for jobs
somewhere else. Keeping good employees is critical to business success
and organizations should make employee retention a part of corporate
culture.
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References
Downey, H.K., Hellriegel, D., Slocum, J.W. 1975, ‘Congruence between Individual
Needs, Organizational Climate, Job Satisfaction and Performance’, Academy of
Management Journal , pp. 149-155. Hong & Kaur 10
Roseman, E. 1981, Managing Employee Turnover: a Positive Approach
http://www.managementstudyguide.com/employee-retention.htm
http://en.wikipedia.org/wiki/Employee_retention
http://indiaattritionstudy.com/about_the_study/context_introduction.htm
http://retention.naukrihub.com/attrition-rates-in-different-sectors.html