praveena - project report2 !!!

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A STUDY ON EMPLOYEE RETENTION

TECHNIQUES IN iSOFT CHENNAI

PROJECT REPORT

Submitted by

V. CHANDRAPRAVEENA

Register No.:098001903009

in partial fulfillment for the award of the degree

of

MASTER OF BUSINESS ADMINISTRATION

in

FACULTY OF MANAGEMENT

ERODE BUILDER EDUCATIONAL TRUSTs GROUP OF

INSTITUTIONS

NATHAKADAIYUR

JUNE 2011


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ERODE BUILDER EDUCATIONAL TRUSTs

GROUP OF INSTITUTIONS

FACULTY OF MANAGEMENT

PROJECT WORK

PHASE II

JUNE 2011

This is to certify that the project entitled

A STUDY ON EMPLOYEE RETENTION TECHNIQUES IN

iSOFT CHENNAI

Is the bonafide record of project work done by

V. CHANDRAPRAVEENA

Register No. : 098001903009

of ___________________________________ during the year 2009 2011.

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

Project Guide Head of the Department

Submitted for the project viva-voce examination held on _______________

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

Internal Examiner External Examiner


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DECLARATION

I affirm that the project work titled ________________________________________

being submitted in the partial fulfillment for the award of _________________________is the original work carried out by me. It has not formed the part of any other project

work submitted for award of any degree or diploma, either in this or any other university.

(Signature of the Candidate)

V. Chandrapraveena

Register No.: 098001903009

I certify that the declaration made above by the candidate is true.

(Signature of the Guide)

Prof. G. Suresh,

Assistant Professor

Faculty of Management

EBETi


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ACKNOWLEDGEMENT

I sincerely thank for providing me with an opportunity to pursue my final year

project at their organization. I sincerely thankMr. Basil Fredrick, Senior Manager, HR

of iSOFT R&D Pvt. Ltd., for guiding me throughout this project.

Mr. Basil Fredrickhas not only been a project guide during this project period

but also a mentor and guided me through the entire business of the organization and also

the initiatives of iSOFT.

I would like to extend my sincere thanks to the staffs at iSOFT, for helping me

whenever needed and also for facilitating me in the completion of the project.

I convey my sincere thanks to our Dean. Dr. A.G.V Narayanan ERODE

BUILDERS EDUCATIONAL TRUSTS - GROUP OF INSTITUTIONS,

TIRUPPUR for providing me this opportunity of carrying out my project, which has

truly been an enriching experience.

I would also like to thank my project guide Prof. G. Suresh for his constant

encouragement and valuable guidance in completing the project successfully.

To conclude, I owe every bit of this report to the peerless tutelage of industry

professionals and academia, under which this project was engendered.


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TABLE OF CONTENT

CHAPTER NO. TITLE PAGE NO.

List of Tables

List of Figures

List of Abbreviations

1. Introduction

1.1 Objectives

1.2 Scope

1.3 Company Profile

1.4 Product Profile

1.5 Industry Profile

2. Review of Literature

2.1 Introduction To Employee Retention Techniques

2.2 Employee Retention Techniques

2.3 Managing Employee Retention

2.4 Need and Importance of Employee Retention

2.5 Seven Steps to Increase Employee Retention

3. Research Methodology and Design

3.1 Introduction

3.2 Type of Research

3.3 Data Collection

3.4 Research Instrument

3.5 Questionnaire Design

3.6 Sampling Procedure

3.7 Sample Size

3.8 Limitations of the Study

4. Data Analysis and Interpretation

4.1 Data Analysis and Interpretation

5. Suggestions

6. Reference


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CHAPTER 1

1. INTRODUCTION

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

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

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

Employees today are different. They are not the ones who dont have good

opportunities in hand. As soon as they feel dissatisfied with the current employer or the

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

best employees. If they dont, they would be left with no good employees. A good

employer should know how to attract and retain its employees. Retention involves five

major things:

Compensation

Environment

Growth

Relationship

Support

COMPENSATION

Compensation constitutes the largest part of the employee retention process. The

employees always have high expectations regarding their compensation packages.

Compensation packages vary from industry to industry. So an attractive compensation

package plays a critical role in retaining the employees.
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Compensation includes salary and wages, bonuses, benefits, prerequisites, stock

options, bonuses, vacations, etc. While setting up the packages, the following

components should be kept in mind:

Salary and monthly wage: It is the biggest component of the compensation

package. It is also the most common factor of comparison among employees. It

includes

Basic wage

House rent allowance

Dearness allowance

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 employees performance and his contribution to the

organization.


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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.

ORGANIZATION ENVIRONMENT

It is not about managing retention. It is about managing people. If an organization

manages people well, employee retention will take care of itself. Organizations should

focus on managing the work environment to make better use of the available human

assets.
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People want to work for an organization which provides

Appreciation for the work done

Ample opportunities to grow

A friendly and cooperative environment

A feeling that the organization is second home to the employee

Organization environment includes

Culture

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

Learning environment: It includes continuous learning and improvement of the

individual, certifications and provision for higher studies, etc.

Support environment: Organization can provide support in the form of work-life

balance.


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Work life balance includes:

Flexible hours

Telecommuting

Dependent care

Alternate work schedules

Vacations

Wellness

Work environment: It includes efficient managers, supportive co-workers,

challenging work, involvement in decision-making, clarity of work and

responsibilities, and recognition.

Lack or absence of such environment pushes employees to look for new opportunities.

The environment should be such that the employee feels connected to the organization in

every respect.

GROWTH

Growth and development are the integral part of every individuals career. If an

employee can not foresee his path of career development in his current organization,

there are chances that hell leave the organization as soon as he gets an opportunity.

The important factors in employee growth that an employee looks for himself are:

Work profile: The work profile on which the employee is working should be in

sync with his capabilities. The profile should not be too low or too high.


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Personal growth and dreams: Employees responsibilities in the organization

should help him achieve his personal goals also. Organizations can not keep aside

the individual goals of employees and foster organizations goals. Employees

priority is to work for themselves and later on comes the organization. If hes not

satisfied with his growth, hell not be able to contribute in organization growth.

Training 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, theyll leave the organization for better jobs. Organization should not

limit the resources on which organizations success depends.

These trainings can be given to improve many skills like:

Communications skills

Technical skills

In-house processes and procedures improvement related skills

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.

IMPORTANCE OF RELATIONSHIP IN EMPLOYEE RETENTION PROGRAM

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.


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There are times when an employee starts feeling bitterness towards the

management or peers. This bitterness could be due to many reasons. This decreases

employees 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.

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 therelationships among colleagues.

Recruit whole heartedly: An employee should be recruited if there is a proper

place and duties for him to perform. Otherwise hell 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 hell show the same for the organization. An employee

based culture may include decision making authority, availability of resources,

open door policy, etc.


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Individual development: Taking proper care of employees includes

acknowledgement to the employees dreams and personal goals. Create

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.

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.

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 employeesin 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

and inculcating the organizational values into employees. Thus employers can support

their employees in a number of ways as follows:

By providing feedback

By giving recognition and rewards

By counseling them
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By providing emotional support

1.1 OBJECTIVES

To study about the employees mindset of the work environment, nature of their

job and their interaction with their supervisors

To study about the employees expectations towards the management

To identify the employees flexibility towards their work

To identify the problems regarding the package, traveling time etc.,

1.2 SCOPE

The management can know the reason behind the attrition in their organization

The management can use some other effective tools to retain their employees

The management can use some other effective strategies to retain their employees

1.3 COMPANY PROFILE

Company Name: iSOFT R&D Private Limited

Address: No.19 Hafiz Court, Dr.M.G.R Salai, Nungambakkam, Chennai-34

Phone No: (44) 39818500

Email: [email protected]

Web Site: www.isofthealth.com

Industry: IT-Software Services

Level of Company: MNC

Level of Office: Head Office

Sector: Private Sector

iSOFT Group Limited, an information technology company , designs, develops,

and delivers healthcare IT platforms and applications that address the administrative,

clinical, and connectivity requirements of healthcare organizations.


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The companys product portfolio comprises clinical management solutions, such

as i.Clinical Manager and LORENZO Clinical; and emergency solutions. It also offers

Endoscopy solutions, Health record management solutions and Health views; and

Laboratory products.

In addition, the company provides maternity solutions comprising Evolution;

Patient management solutions and Pharmacy solutions. Further, it offers primary care

solutions consisting of Synergy, Premiere, and LORENZO Primary Care, Radiology

products and also various solutions for operation theatres.

Additionally, the company offers patient safety software, including the AIMS

system, which enables healthcare organizations to record, monitor and take relevant

management action to minimize future adverse medical events.

iSOFT Group Limited operates in Australia, Newzealand, China, India, and

United Kingdom, as well as in South East Asia, Africa, the Middle East, and the

Mainland Europe. The company was formerly known as IBA Health Group Limited and

changed its name to iSOFT Group Limited in May 2009. iSOFT Group Limited is

headquartered in Sydney, Australia.

iSOFT R&D Pvt Ltd, Chennai is the product development centre for iSOFTs

global operations. The purpose is to harness Information Technology to deliver speedy,

error-free and cost-effective healthcare to benefit the Clinician, the business manager and

the patient alike. It specializes in the design, development & delivery of innovative,

patient-centric software application packages to keep abreast of the ever-changing

requirements of information systems, supporting both public and private healthcare

providers, in the modern communities.

In India, iSOFT has its branches in Chennai and Bangalore with the manpower of

1265 and 180 respectively in each branch.


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1.4 PRODUCT PROFILE:

iSOFTs range of internationally recognized solutions provide health

professionals with accurate, timely information that lets them focus on the patient in front

of them. Developed to automate care processes and support defined workflows, the

solutions improve patient outcomes by enabling the transfer, storage and availability of

patient information across the care continuum.

iSOFT understand the inherent need for providers to share vital information

across care facilities through Health Information Exchange technologies that create

electronic health records capable of traveling with an individual and available at every

point of care.

Clinical Collaboration

iSOFT Clinical Collaboration solutions help healthcare providers better manage

and share clinical information across disparate care facilities and departments. The

collaboration solutions facilitate the exchange and bringing together of relevant patient

information in a context that assists meaningful analysis and effective treatment.

Integration Engine

The integration engine provides easy the integration platforms enable software

solutions to share information when needed and in the required form, ensuring seamless

integration and letting the best of breed applications communicate with each other.

Application Development Tools

iSOFT Application Development Tools lets the patient improve the

interoperability and extend the functionality of the existing systems as well as integrating

new applications into the workflows.
http://www.isofthealth.com/en/Solutions/ClinicalCollaboration.aspxhttp://www.isofthealth.com/en/Solutions/IntegrationEngine.aspxhttp://www.isofthealth.com/en/Solutions/ApplicationDevelopmentTools.aspxhttp://www.isofthealth.com/en/Solutions/ClinicalCollaboration.aspxhttp://www.isofthealth.com/en/Solutions/IntegrationEngine.aspxhttp://www.isofthealth.com/en/Solutions/ApplicationDevelopmentTools.aspx


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Lorenzo

Lorenzo solutions enable collaboration and interoperability across all sectors of

care and remove traditional barriers to sharing health related information and electronic

record management. Lorenzo creates virtual health networks that securely connect

doctors, care facilities and patients while protecting the organizations previous

investments by integrating seamlessly with existing systems.

Department

iSOFT Department solutions are designed to provide comprehensive management

and process support across all hospital departments while withstanding the demanding

and dynamic hospital environment.

Enterprise Scheduling

Proven booking and referral solutions for the healthcare community. iSOFT

Enterprise Scheduling enhances staff productivity and patient service by delivering

greater operational efficiency and increased patient throughput.

Hospitals & Clinics

iSOFT Hospital and Clinic solutions provide complete information and

administrative support systems that helps to better manage the patient journey whilst

ensuring accuracy and safety.

Diagnostic

iSOFT Diagnostic solutions provide rich functionality that supports workflow

across laboratories, radiology and medical imaging within hospital or independent

diagnostic facilities. These solutions reduce analysis time and improve communication

with remote and disparate facilities and providers
http://www.isofthealth.com/en/Solutions/Lorenzo.aspxhttp://www.isofthealth.com/en/Solutions/Department.aspxhttp://www.isofthealth.com/en/Solutions/iSOFTEnterpriseScheduling.aspxhttp://www.isofthealth.com/en/Solutions/HospitalsandClinics.aspxhttp://www.isofthealth.com/en/Solutions/Diagnostics.aspxhttp://www.isofthealth.com/en/Solutions/Lorenzo.aspxhttp://www.isofthealth.com/en/Solutions/Department.aspxhttp://www.isofthealth.com/en/Solutions/iSOFTEnterpriseScheduling.aspxhttp://www.isofthealth.com/en/Solutions/HospitalsandClinics.aspxhttp://www.isofthealth.com/en/Solutions/Diagnostics.aspx


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Primary Care

iSOFT Primary Care solutions are tailor made to meet the needs of Aged Care,

Social Care, Community Care and GP practices of any size. Designed to improve patient

care whilst delivering you cost and time savings, these tools help you streamline your

processes and better utilize, manage and share the data your organization creates.

Business solutions

iSOFT Business solutions provide a powerful and flexible financial processing

and management information solution that uniquely fits within the healthcare

environment. Utilizes the latest in database management and web architecture technology

to implement sophisticated workflows and deliver reduced processing costs and improved

procurement management.

Consumer Health, Media & Life Sciences

iSOFTs Consumer and Media division works to leverage the latest advances in

information and communications infrastructure to provide health professionals with tools

that deliver personalized care in a community setting.

1.5 INDUSTRY PROFILE:

The Indian Information Technology industry accounts for a 5.19% of the

country's GDP and export earnings as of 2009, while providing employment to a

significant number of its tertiary sector workforce. More than 2.5 million people are

employed in the sector either directly or indirectly, making it one of the biggest job

creators in India and a mainstay of the national economy.

In 2010-11, annual revenues from IT-ITES sector is estimated to have grown over

US$76 billion compared to China with $35.76 billion and Philippines with $8.85 billion.

Indias outsourcing industry is expected to increase to US$225 billion by 2020. The most

prominent IT hub is IT capital Bangalore.
http://www.isofthealth.com/en/Solutions/PrimaryCare.aspxhttp://www.isofthealth.com/en/Solutions/ConsumerHealth.aspxhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/GDPhttp://en.wikipedia.org/wiki/Tertiary_sectorhttp://en.wikipedia.org/wiki/Information_Technologyhttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/People's_Republic_of_Chinahttp://en.wikipedia.org/wiki/Philippineshttp://en.wikipedia.org/wiki/Bangalorehttp://www.isofthealth.com/en/Solutions/PrimaryCare.aspxhttp://www.isofthealth.com/en/Solutions/ConsumerHealth.aspxhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/GDPhttp://en.wikipedia.org/wiki/Tertiary_sectorhttp://en.wikipedia.org/wiki/Information_Technologyhttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/People's_Republic_of_Chinahttp://en.wikipedia.org/wiki/Philippineshttp://en.wikipedia.org/wiki/Bangalore


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The other emerging destinations are Chennai, Hyderabad, Kolkata, Pune,

Mumbai, NCRand Kochi. Technically proficient immigrants from India sought jobs in

the western world from the 1950s onwards as India's education system produced more

engineers than its industry could absorb.

India's growing stature in the information age enabled it to form close ties with

both the United States of America and the European Union. However, the recent global

financial crises has deeply impacted the Indian IT companies as well as global

companies. As a result hiring has dropped sharply and employees are looking at different

sectors like the financial service, telecommunications, and manufacturing industries,

which have been growing phenomenally over the last few years.

India's IT Services industry was born in Mumbai in 1967 with the establishment

of Tata Group in partnership with Burroughs. The first software export zone Santacruz

Electronics Export Processing Zone (SEEPZ) was set up here way back in 1973, the old

avatar of the modern day IT Park. More than 80 percent of the country's software exports

happened out of SEEPZ, Mumbai in 1980s.

Each year India produces roughly 500,000 engineers in the country, out of them

only 25% to 30% possessed both technical competency and English language skills,although 12% of India's population can speak in English. India developed a number of

outsourcing companies specializing in customer support via Internet or telephone

connections. By 2009 India is the 12th largest country in the world in terms ofbroadband

Internet users..

By 2010 the Indian IT and ITES services industry could directly employ

approximately 2.3 million people, besides providing indirect employment to another 6.5

million workers, according to the report.

The industry employed about 1 million staff and provided indirect employment to

2.5 million people in the fiscal year to March 31 2010, according to data released by

National Association of Software & Service Companies (NASSCOM).
http://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/Hyderabad,_Indiahttp://en.wikipedia.org/wiki/Kolkatahttp://en.wikipedia.org/wiki/Punehttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/National_Capital_Region_(India)http://en.wikipedia.org/wiki/Kochihttp://en.wikipedia.org/wiki/United_States_of_Americahttp://en.wikipedia.org/wiki/European_Unionhttp://en.wikipedia.org/wiki/Financial_crisis_of_2007%E2%80%932010http://en.wikipedia.org/wiki/Financial_crisis_of_2007%E2%80%932010http://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/SEEPZhttp://en.wikipedia.org/wiki/SEEPZhttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/English_languagehttp://en.wikipedia.org/wiki/Internethttp://en.wikipedia.org/wiki/List_of_countries_by_number_of_broadband_Internet_usershttp://en.wikipedia.org/wiki/List_of_countries_by_number_of_broadband_Internet_usershttp://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/Hyderabad,_Indiahttp://en.wikipedia.org/wiki/Kolkatahttp://en.wikipedia.org/wiki/Punehttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/National_Capital_Region_(India)http://en.wikipedia.org/wiki/Kochihttp://en.wikipedia.org/wiki/United_States_of_Americahttp://en.wikipedia.org/wiki/European_Unionhttp://en.wikipedia.org/wiki/Financial_crisis_of_2007%E2%80%932010http://en.wikipedia.org/wiki/Financial_crisis_of_2007%E2%80%932010http://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/SEEPZhttp://en.wikipedia.org/wiki/SEEPZhttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/English_languagehttp://en.wikipedia.org/wiki/Internethttp://en.wikipedia.org/wiki/List_of_countries_by_number_of_broadband_Internet_usershttp://en.wikipedia.org/wiki/List_of_countries_by_number_of_broadband_Internet_users


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However staff shortage could be a major bottleneck for the industry, according to

the report. The skills and quality of the workforce needs to be improved as only 25

percent of technical graduates are suitable for employment in the offshore IT industry in

India, while only 10 percent to 15 percent of general college graduates are suitable for

employment by the ITES industry, according to Jayant Sinha, partner at McKinsey & Co.

The report proposes setting 10 or 12 integrated townships in India with associated

infrastructure like roads and international airports.

Major reasons for the significant growth of the IT industry of India are

1. Abundant availability of skilled manpower

2. Reduced telecommunication and internet costs3. Reduced import duties on software and hardware products

4. Cost advantages

5. Encouraging government policies


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CHAPTER 2

2. REVIEW OF LITERATURE

2.1 INTRODUCTION TO EMPLOYEE RETENTION TECHNIQUES

Employees are a valuable asset to any organization. It is essential to protect this

vital resource as talented and motivated employees play a crucial role in overall growth

and success of the organization. Focusing on employee retention techniques can

positively impact the organization as it increases employee productivity, performance,

quality of work, profits, and reduces turnover and absenteeism. Effectively creating an

engaging environment, recognizing good performance, giving benefits and rewards,

promoting mutual respect are some of the ways for effective employee retention.

Increase Employee Engagement

Effectively implementing employee retention program by increasing employee

engagement ensures that the employees are satisfied with their work, take pride in their

work, report to duty on time, feel responsible for their job, feel valued for their

contributions, and have high job satisfaction.

As employees actively focus on their work, it increases the productivity levels in

the organization and leads to improvement in several associated areas. Employee

engagement ensures that the employees have a clear understanding of their roles and

responsibilities in the organization. Increasing employee engagement helps to develop

emotional connection, enthusiasm among the employees that promotes teamwork and

healthy environment at the workplace.

Motivate Employees

Motivating employees by offering them better opportunities for career

development can help in employee retention. Giving rewards, recognitions, promotions,

and appreciation can motivate them to increase their productivity, commitment to work,

and loyalty to the organization.


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They feel that their contributions are valued in the organization. Giving

incentives, pay hikes, bonuses can also help to motivate employees. Recognizing their

contributions and aspirations motivates them to work productively and increases his

confidence that helps in their retention.

Focus On Team Building

Promoting team culture helps to actively involve all employees in achieving the

goals and in overall success of the organization. Promoting team building imbibes a sense

of belongingness among them that they are a part of larger goals or objectives of the

organization.

Team building promotes team work and team effort that help them to tackle work

pressure and thus provide a competitive advantage to organization. Focusing on team

building activities can help to reduce workplace conflicts between team members as they

work in a team. Organizing team building games, seminars, outdoor events help to

promote team spirit, unity, and reduce stress.

Recognition of Performance

Recognition of performance of employees is an effective method of employee

retention. Although monetary compensation can act as a motivating factor, openly

recognizing the performance, initiative, and good work increases the morale and

motivates the employee to work more productively. Appreciating the performance

motivates the employee and they feel valuable within the organization. This helps in

employee engagement and to increase the productivity levels.

2.2 EMPLOYEE RETENTION TECHNIQUES

1. Employee Reward Program- You can make a provision of Monthly or Quarterly

Award (depending upon the budget) for the best employee, Awarding 2 or 3 best workers

each month. The award can be in terms of gifts or money.


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If it is money then it should be divided into two parts, first part to be given with the next

month salary and the remaining after 6 months. In this way he/she can be retained for 6

more months. These rewards shall be considered at the time of appraisal.

2. Career Development Program- Every individual is worried about his/her career. You

can provide them conditional assistance for certain courses which are beneficial from

your business point of view. Conditional assistance means the company will bear the

expenses only if he/she gets an aggregate of certain percentage of marks. And entrance to

that course should be on the basis of a Test and the number of seats to be limited. For

getting admitted to such program, You can propose them to sign a bond with the

company, like they cannot leave the company for 2 years or something after the

successful completion of the course.

3. Performance based Bonus- The employee always comes to know about the profit of

the company which is of course based on the strategic planning of the top management

and the productivity of the employee. To get more work out of the employee, You can

make a provision of Bonus. By this employee will be able to relate himself with the

companys profit and hence will work hard. This bonus should be productivity based.

You can make sure that this bonus is not adding extra-pressure on the budget of Your

Company and you can arrange this by cutting a part of the salary hikes and presenting it

to the employees in the form of bonus.

4. Employee Referral Plan- You can introduce Employee Referral Plan. This will

reduce your cost (charges of external consultants and searching agencies) of hiring a new

employee and up to an extent you can rely on this new resource. On every successful

referral, employee can be given a referral bonus after 6 or 9 months of continuous

working of the new employee as well as the existing employee. By this you can get a new

employee at a reduced cost as well as are retaining the existing one for a longer period of

time.


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5. Loyalty Bonus- You can introduce a Loyalty Bonus Program in which you can reward

your employee after a successful completion of a specified period of time. This can be in

the form of Money or Position. This will encourage the fellow employees as well whether

they are interested in money or position, they will feel fascinated.

6. Giving a voice to the Knowledge Banks- First of all you should try to retain your

workforce intact, as they are the intellectual asset of the company. And above that you

cant afford losing your knowledge banks. These are the people who stabilize the process.

You can involve them in some of the decisions.

7. Employee Recreation- You should also let your employees enjoy in a light mood.

You can take your employees to a trip or for an outing every year or bi-yearly. You can

make use of this trip as well. You can start this trip with an opening note about the

management views and plans, strategies etc. At the same time you can involve your top

management into some of the fun activities as this will make feel the employees that they

are very close to the management and everybody is same.

8. Gifts at some Occasions- You can give 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.

9. Accountability- You should make each employee accountable so that he can also feel

that he is as important as his manager. If he/she will be filled with this sense, he/she will

seldom think of leaving the company.

10. Making the managers effective and easily accessible- You should make the

management easily accessible so that the employee expectations can be clearly

communicated to the top management, as it is impossible for the top management to

reach each employee frequently.


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11. Surveys- You should conduct regular surveys for feedbacks from employee about

their superiors as well as other issues like food, development plans and other suggestions.

This will make them feel of their importance and the caring nature of the company. Some

of the suggestions might be of real good use for the company.

2.3 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 be calculated. According to a survey, on an

average, attrition costs companies 18 months salary for each manager or professional

who leaves, and 6 months pay for each hourly employee who leaves. This amounts to

major organizational and financial stress, considering that one out of every three

employees plans to leave his or her job in the next two years.

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.

So an impartial person should be appointed with whom the employees feel comfortable in

expressing their opinions.


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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 organizations reward strategy reflects the employee drivers

The leaving process is managed effectively

2.4 NEED & IMPORTANCE OF EMPLOYEE RETENTION

Let us understand why retaining a valuable employee is essential for an organization.

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

joinee is completely raw and the management 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


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work. Finding a right employee for an organization is a tedious job and all efforts

simply go waste when the employee leaves.

When an individual resigns from his present organization, it is more likely

that he would join the competitors: In such cases, employees tend to take all the

strategies, policies from the current organization to the new one. Individuals take

all the important data, information and statistics to their new organization and in

some cases even leak the secrets of the previous organization. To avoid such

cases, it is essential that the new joinee is made to sign a document which stops

him from passing on any information even if he leaves the organization. Strict

policy should be made which prevents the employees to join the competitors. This

is an effective way to retain the employees.

The employees working for a longer period of time are more familiar with

the companys 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 a position 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 eachother 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.

After striking a rapport with an existing employee, it is a challenge for the

employees to adjust with someone new and most importantly trust him. It is a

human tendency to compare a new joinee with the previous employees and

always find faults in him.

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


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to it. They hardly badmouth their organization and always think in favour 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 with something 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.

The management must understand the difference between a valuable employee and an

employee who doesnt contribute much to the organization. Sincere efforts must be made

to encourage the employees so that they stay happy in the current organization and do not

look for a change.

2.5 SEVEN STEPS TO INCREASE EMPLOYEE RETENTION

Conduct job analysis audits to provide realistic job previews. Conduct job

analysis audits with behavioral assessments, cognitive reasoning assessments, job

simulations, and hard skills assessments (e.g., computer skills, etc.) to objectively

define the core competencies required for success in each role (competency

modeling). This helps in providing a realistic job preview for candidates andmanagers. Oftentimes what managers think they need for a certain role is different

from that they actually need.

Implement a well-designed assessment and selection process. Include behavioral

assessments and structured behavioral interviewing techniques to increase the

likelihood of hiring people that can, and will, do the job at a high level in your

environment and for your managers (job fit assessment).

Provide good employee orientation. The people you hire today are potentially

your greatest resource for corporate success in the years ahead. As a senior leader,

your participation in new employee orientation sends a vital cultural and

leadership message: "Were all involved here in the drive toward what we want to

be in the future." Everyoneeven the newest employeehas value.


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Implement programs for employee training and development. Provide ongoing

professional development to show your willingness as an organization to develop

your greatest assetyour people.

Improve manager and employee relationships. Concentrate on the people that stay

with you to learn what makes them happy then give them more of it! "People

leave managers, not companies. If you have a turnover problem, look first at your

managers," Marcus Buckingham and Curt Coffman write in First, Break All the

Rules.

Provide an equitable or fair pay system. Be competitive!

Encourage succession planning. Identify roles for which employees may be suited

in the future and work with them on designing their succession plan within the

organization. Invest in cross-training, job shadowing, coaching, mentoring, and

cross-experience.


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CHAPTER 3

3. RESEARCH METHODOLOGY AND DESIGN

3.1 INTRODUCTION

Research means a systematic and scientific research for pertinent information on a

specific topic.

According to Clifford Woody, research comprises defining and redefining

problems, formulation of hypothesis or suggesting solutions, collecting, organizing and

evaluating data. Making deduction and reaching conclusions and at last carefully testing

the conclusions to determine where they fit the formulating hypothesis.

A research design is the specification of methods and procedures for acquiring the

needed data to solve the problem.

3.2 TYPE OF RESEARCH

In this study descriptive research is used for testing. Descriptive research includes

surveys and fact findings enquiries of different kinds. The main purpose of descriptive

research is description of the state of affairs, as it exists at present. The main

characteristic of this method is that the researcher has no control over the variables. The

researcher can only report what has happened or what is happening. The methods of

research utilized in descriptive research are survey methods of all kinds, including

comparative and correlation methods.

3.3 DATA COLLECTIONThe data used for the purpose of the study are:

Primary data

Secondary data

Primary Data


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Survey

Secondary Data

Internet

Data from company executives

3.4 RESEARCH INSTRUMENT

The research instrument used in the study is a Structured Questionnaire. This

questionnaire comprises of definite concrete and predetermined questions, relating to the

aspect, for which the researcher collects data, interprets and suggests suitable measures to

improve the level of job satisfaction.

3.5 QUESTIONNAIRE DESIGN

The questionnaire used for collecting the data is a structured questionnaire. It

consists of 21 questions i.e., personal details and questions that are framed based on the

objectives of the study.

Questionnaire design is of structured type which consists of:

Open ended

Close ended

Multiple choice

3.6 SAMPLING TECHNIQUES AND SIZE

Simple Random Sampling method has been used in this study. This method is

used for selecting 150 members as a random from the group of 1500 employees in iSOFT

R&D Private Ltd., Chennai. Therefore it is a probability sampling technique.

3.7 TOOLS FOR ANALYSIS

The statistical tools used for analysis by the researcher are that the percentage

analysis and the chi square test.

3.8 LIMITATIONS OF THE STUDY

The results and findings are confined to a limited area.

The opinions of the respondents may be biased.


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Time and resource constraint.

The sample taken for research was concerned only for 150 respondents.

CHAPTER 4

4. DATA ANALYSIS AND INTERPRETATION

4.1 DATA ANALYSIS AND INTERPRETATION

The data after collection has to be processed and analyzed in accordance with the

outline laid down for the purpose at the time of developing the research plan. This is

essential for a scientific study and for ensuring that we have all the relevant data

processing implies editing, coding, classification and tabulation of collected data so that

they are acquainted with the analysis.

The term analysis refers to the computation of certain measures along with

searching for patterns of relationship that exists among data groups. Thus in the process

of analysis, relationships or differences supporting or conflicting with original or newhypothesis should be subjected to statistical tests of significance to determine with what

valid data can be said to indicate any conclusions.

Analysis of data in a general way involves a number of closely related operations

that are performed with the purpose of summarizing the collected data and organizing

them in such a manner that they answer the research questions.


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Age wise Classification

TABLE NO.: 4.1.1

Inference:

The above table indicates that, 50% of the employees are between 21-25 years of

age and 15% of the employees are between 26 30 years of age and 22% of the

Age in Years Number of Respondents Percentage

21 25 years 75 50

26 30 years 22 14.67

31 35 years 33 2236 40 years 20 13.33

Above 40 years 0 0

Total 150 100


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employees are between 31 35 years of age and nearly 13 % of employees are 36 40

years of age.

Gender wise Classification

TABLE NO.: 4.1.2

Gender Number of Respondents Percentage

Male 87 58

Female 63 42

Total 150 100

Inference:

The above table indicates that, 58% of the employees are male and 42% of the employees

are female.


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Education wise Classification

TABLE NO.: 4.1.3

Education Number of Respondents Percentage

Diploma 0 0

Under Graduation 96 64

Post Graduation 54 36

Total 150 100

Inference:

The above table indicates that, 64% of the employees are Under Graduates and 36% of

them are Post Graduates.


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Experience in iSOFT

TABLE NO.: 4.1.4

Work Experience Number of Respondents Percentage


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Current Position Number of Respondents Percentage


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2 21 14

3 11 7.33

>3 10 6.67

None 97 64.67

Total 150 100

Inference:

The above table indicates that, 7% of the employees have got 1 promotion and 14% of

the employees have got 2 promotion and 8% of the employees have got 3 promotions and

7% of the employees have got >3 promotions and 64% of the employees have not got

any promotions

Expectation towards Organization

TABLE NO.: 4.1.7

Expectation Towards Organization Number of Respondents Percentage

Team Work Encouragement 33 22

Stable Employment 33 22

Job Security 11 7.33

Favorable Package 10 6.67

Career Growth 63 42


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Others (Specify) 0 0

Total 150 100

Inference:

The above table indicates that, the expectation of the employees towards the organization

are that 22% of the employees expect team work encouragement, 22% of the employees

expect Stable employment, 8% of the employees expect job security, 6% of the

employees expect favorable package and 42% of them expect career growth

Part of Team and Working towards Organizations Goals

TABLE NO.: 4.1.8

Part of Team Number of Respondents Percentage

Strongly Agree 85 56.67

Agree 54 36

Neutral 11 7.33

Disagree 0 0

Strongly Disagree 0 0

Total 150 100


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Inference:

The above table indicates that, 57% of the employees strongly agree that they are part of

the team and they are working towards organizations goals and 36% of them agree with

this and 7% of them are neither agree nor disagree

Mutual Respect

TABLE NO.: 4.1.9

Mutual Respect Number of Respondents Percentage


Agree 65 43.33

Neutral 11 7.33

Disagree 0 0Strongly Disagree 0 0

Total 150 100


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Inference:

The above table indicates that, 49% of the employees strongly agree that they have

mutual respect, 44% of them agree and 7% of them neither agree nor disagree

Leave

TABLE NO.: 4.1.10

Leave Number of Respondents Percentage

Strongly Agree 42 28

Agree 86 57.33

Neutral 22 14.67

Disagree 0 0

Strongly Disagree 0 0

Total 150 100


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Inference:

The above table indicates that, 28% of the employees strongly agree that they can avail

leave easily during emergency, 57% of them agree and 15% of them neither agree nor

disagree

Work Challenging and Interesting

TABLE NO.: 4.1.11

Work Challenging & Interesting Number of Respondents Percentage


Agree 54 36

Neutral 11 7.33

Disagree 0 0

Strongly Disagree 0 0Total 150 100


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Inference:

The above table indicates that, 57% of the employees strongly agree that their work is

challenging and interesting, 36% of them agree and 7% of them neither agree nor

disagree.

Job

TABLE NO.: 4.1.12

Job Number of Respondents Percentage

Highly Satisfied 64 42.67

Satisfied 86 57.33

Neutral 0 0

Dissatisfied 0 0

Highly Dissatisfied 0 0

Total 150 100


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Inference:

The above table indicates that, 43% of the employees are highly satisfied with their job

and 57% are satisfied

Team Work

TABLE NO.: 4.1.13

Team Work Number of Respondents Percentage


Satisfied 65 43.33

Neutral 10 6.67

Dissatisfied 11 7.33

Highly Dissatisfied 0 0Total 150 100


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Inference:

The above table indicates that, 43% of them are highly satisfied with the team work, 43%

are satisfied, 7% of them are neither satisfied nor dissatisfied and 7% of them are

dissatisfied

Supervisor

TABLE NO.: 4.1.14

Supervisor Number of Respondents Percentage

Highly Satisfied 54 36

Satisfied 85 56.67

Neutral 11 7.33

Dissatisfied 0 0


Total 150 100


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Inference:

The above table indicates that,36% of them are highly satisfied with their supervisor,57% are satisfied, 7% of them are neither satisfied nor dissatisfied

Salary

TABLE NO.: 4.1.15

Salary Number of Respondents Percentage

Highly Satisfied 21 14

Satisfied 65 43.33

Neutral 54 36



Total 150 100


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Inference:

The above table indicates that, 14% of them are highly satisfied with their salary, 43%

are satisfied, 36% of them are neither satisfied nor dissatisfied and 7% of them are

dissatisfied

Employee Welfare and Health

TABLE NO.: 4.1.16

Welfare and Health Number of Respondents Percentage


Satisfied 86 57.33

Neutral 0 0

Dissatisfied 21 14



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Inference:

The above table indicates that, 29% of them are highly satisfied with the employee

welfare and health, 57% are satisfied and 14% of them are dissatisfied

Incentives

TABLE NO.: 4.1.17

Incentives Number of Respondents Percentage


Satisfied 55 36.67

Neutral 44 29.33


Highly Dissatisfied 10 6.67

Total 150 100


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Inference:

The above table indicates that,7% of them are highly satisfied with their incentives, 37%are satisfied, 29% of them are neither satisfied nor dissatisfied, 20% of them are

dissatisfied and 7% of them are highly dissatisfied

Performance Appraisal

TABLE NO.: 4.1.18

Performance Appraisal Number of Respondents Percentage


Satisfied 44 29.33

Neutral 66 44


Highly Dissatisfied 10 6.67Total 150 100


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Inference:

The above table indicates that, 7% of them are highly satisfied with the performance

appraisal of the organization, 29% are satisfied, 44% of them are neither satisfied nor

dissatisfied, 13% of them are dissatisfied and 7% of them are highly dissatisfied

Relationship with Supervisor

TABLE NO.: 4.1.19

Relationship with Supervisor Number of Respondents Percentage


Satisfied 86 57.33

Neutral 0 0

Dissatisfied 0 0



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Inference:

The above table indicates that, 35% of them are highly satisfied with the relationship

with their supervisor, 37% are satisfied, 28% of them are neither satisfied nor dissatisfied

Supervisor Listen to Your Suggestions

TABLE NO.: 4.1.20

Supervisor Listen to Your Suggestions Number of Respondents Percentage

Sometimes 11 7.33

Mostly 52 34.67

Neutral 22 14.67

Always 54 36

Not at all 11 7.33Total 150 100


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Inference:

The above table indicates that, 7% of the employees say that their supervisors listen to

their suggestions sometimes, 35% of them mostly, 15% of them say neutral, 36% of them

say always and 7% of them say not at all

Supervisor Treating Fairly

TABLE NO.: 4.1.21

Options Number of Respondents Percentage

Yes 150 100

No 0 0

Total 150 100


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Inference:

The above table indicates that, 100% of the employees say that their supervisors treat

them fairly.

Challenging Assignments

TABLE NO.: 4.1.22

Options Number of Respondents Percentage

Yes 150 100No 0 0

Total 150 100


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Inference:

The above table indicates that, 100% of the employees say that their supervisors provide

them with challenging assignments

CHAPTER 5

5. SUGGESTIONS

The main expectation of the employees is that the career growth and the next is

the team work encouragement.

It would be better if we can improve the salary and also concentrate on employee

welfare and health.

The employees are also dissatisfied with the incentives and the performance

appraisal.


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If these suggestions are taken into account then the existing employees can be

retained to an extent.

CHAPTER 6

6. REFERENCE

www.ZERORISKHR.com

http://retention.naukrihub.com/retention.html

http://www.contentwriter.in/articles/hr/employee-retention-tools.htm

http://retention.naukrihub.com/managing-employee-retention.html

http://www.managementstudyguide.com/importance-of-employee-retention.htm
http://www.zeroriskhr.com/http://retention.naukrihub.com/retention.htmlhttp://www.contentwriter.in/articles/hr/employee-retention-tools.htmhttp://retention.naukrihub.com/managing-employee-retention.htmlhttp://www.managementstudyguide.com/importance-of-employee-retention.htmhttp://www.zeroriskhr.com/http://retention.naukrihub.com/retention.htmlhttp://www.contentwriter.in/articles/hr/employee-retention-tools.htmhttp://retention.naukrihub.com/managing-employee-retention.htmlhttp://www.managementstudyguide.com/importance-of-employee-retention.htm


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praveena - project report2 !!!

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