2003 Employee Retention
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Transcript of 2003 Employee Retention
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INTRODUCTIONRetention is one of the important aspects of an organization. The retention
deals about identification of human behaviour and indicate their personnel
feeling, Employee retention is a process in which the employees areencouraged 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 responsibilityof 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.
Some organizations are on the top because they value their employees
and know how to keep them glued to the organization. Personal or
professional the employers should take care of employees. Employee
Retention involves being sensitive to peoples needs and demonstrating the
various strategies. The Environment, Relationship, Support, Growth
and Compensation are the encourage employees to remain with the
organization for the maximum period of time.
Employee retention refers to policies and practices companies use to
prevent valuable employees from leaving their jobs. How to retain valuable
employees is one of the biggest problem that plague companies in the
competitive marketplace. Not too long ago, companies accepted the
revolving door policy as part of doing business and were quick to fill a
vacant job with another eager candidate. Nowadays, businesses often find
that they spend considerable time, effort, and money to train an employee
only to have them develop into a valuable commodity and leave the
company for greener pastures. In order to create a successful company,
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employers should consider as many options as possible when it comes to
retaining employees, while at the same time securing their trust and loyalty
so they have less of a desire to leave in the future.
MEANING
Employee retention involves taking measures to encourage employees to
remain in the organization for the maximum period of time. Corporate is
facing a lo of problem 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
talented person. There are many organizations which are looking for such
employees. If a person is not satisfied by the job hes doing, he may switch
over to some other more suitable job. In todays environment it becomes
very important for organizations to retain their employees.
DEFINITION
Employee retention is define as effective employee retention is a
systematic effort by employers to create and foster an environment that
encourages current employees to remain employed by having policies and
practices in place that address their divers needs. Also of concern are the
costs of employee turnover (including hiring costs. productivity loss).
Replacement costs usually are 2.5 times the salary of the individual. The
costs associated with turnover may include lost customers, business and
damaged morale. In addition there are the hard costs of time spent in
screening, verifying credentials, references, interviewing, hiring, and
training the new employee just to get back to where you started.
Retention of key employees is critical to the long-term health and success
of any organisation. The performance of employees is often linked directly
to quality work, customer satisfaction, increased product sales and even to
the image of a company. Whereas the same is often indirectly linked to,
satisfied colleagues and reporting staff, effective succession planning and
deeply embeddedorganizational knowledge and learning.
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What is retention all about?
R emunerate competitively
E ncouragement and expectation
T raining and development
A nnual review cycles
I nform and Involve
N urture
Retention Factor
Career growth learning and development
Exciting work and challenge
Meaningful work, making a different and a contribution
Great people
Being part of a team
Good boss
Recognition for work well done
Fun on the job
Autonomy, sense of control over work
Flexibility :- for example in work hours
Fair pay and benefits
Inspiring Leadership
Pride in organization, its mission and quality of product
Great work environment
Location
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Employee Retention involves five major things:
Compensation
Environment
Growth
Relationship
Support
Compensation
Compensation constitutes the largest part of the employee retention
process. The employees always have high expectations regarding their
compensation packages. Compensation packages vary from industry to
industry. So an attractive compensation package plays a critical role in
retaining the employees.
Compensation includes Salary and wages, Bonus, Benefits, stock
options, Health insurance, Retirement, Miscellaneous compensation
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
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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 tothe 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.
Organization Environment:
It is not about managing retention. It is about managing people. If an
organization manages people well, employee retention will take care of
itself. Organizations should focus on managing the work environment to
make better use of the available human assets.
People want to work for an organization which provides:
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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. Work life balance includes:
Flexible hours
Telecommuting
Dependent careAlternate 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.
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Lack or absence of such environment pushes employees to look for
new opportunities. The environment should be such that the
employee feels connected to the organization in every respect.
Growth and Career:
Growth and development are the integral part of every individuals career. If
an employee can not foresee his path of career development in his 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.
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
C or customer satisfaction related skills
Special project related skills
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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.
Relationship
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. 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 the relationships among colleagues.
Recruit whole heartedly: An employee should be recruited if there is a
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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.
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. 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,
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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
By providing emotional support
IMPORTANCE OF EMPLOYEE RETENTION:- 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), Isagro company experts
often quote 25% of the average employee salary as a conservative
estimate.
Loss of Company Knowledge: When an employee leaves, he
takes with him valuable knowledge about the company, customers,
current projects and past history (sometimes to competitors). Often
much time and money has been spent on the employee in
expectation of a future return. When the employee leaves, the
investment is not realized.
Interruption of Customer Service: Customers and clients do
business with a company in part because of the people.
Relationships are developed that encourage continued sponsorship
of the business. When an employee leaves, the relationships that
employee built for the company are severed, which could lead to
potential customer loss.
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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.
Our standard employee retention surveys coverfollowing minor things, including:
Overall satisfaction
Corporate culture
Supervisor relations
Training
Pay and benefits
Work environment
Communications
Our standard employee retention surveys are comprehensively designedto identify and isolate key independent and dependent variables.
Independent Variables Dependent VariablesSupervisor relations Overall satisfaction
Pay & benefits Likelihood to recommend
Work environment Likelihood to stay
Corporate communications Employee loyalty
Why Employee retention
The High Cost of Employee Turnover :-
1.Recruitment costs
from advertising to the time spent interviewing and sourcing.
2. Training costs
orientation materials and trainers time (ex. call center agents require on
average 4 - 6 weeks or more of classroom training).
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3. Lost Productivity Costs
a new employee operates between 25%-50% of productivity levels for the
first three months, not including the time spent by existing employees to
assist.
4. Lost sales costs
the loss of business when the role is vacant.
The Impact on BusinessReplacing staff is obviously expensive. But in addition a companys
reputation is also at stake. No one feels confident dealing with an
organization which cannot hold onto their employees. It suggests instability,
poor management and a lack of good planning. Regardless whether an
individual is let go or leaves on their own accord, more often than not the
employee leaves with a bitter taste in their mouth. That feeling is taken with
themalong with the skills they learned while working for youand their
sentiments are often repeated to future employers and their personal
network. Reactively losing talented individuals can damage your companys
reputation for years to come.
Employee Retention Strategies
The basic practices which should be kept in mind in the employee retention
strategies are:
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Hire the right people in the first place.
Empower the employees: Give the employees the authority to get
things done.
Make employees realize that they are the most valuable asset of theorganization.
Have faith in them, trust them and respect them.
Provide them information and knowledge.
Keep providing them feedback on their performance.
Recognize and appreciate their achievements.
Keep their morale high.
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.
1) Low Level
Appreciating and recognizing a well done job.
Recognizing professional as well as personal significant
events.
Providing benefits
Providing perks
Providing workplace conveniences
Fun at work
Occasional stress relievers
Employees support in tough time orb personal crisis.
2) Medium level
Appreciating and recognizing a well done job.
Benefit programs for family support
Providing conveniences at workplace.
Providing training and development and personal growth
opportunities.
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3) High level
Promoting work/ life
Understand employee needs
Encouraging professional training and development and/orpersonal growth opportunities.
Provide an environment of trust
Hire the right people from the beginning.
Managing Employee Retention
The task of managing employees can be understood as a three stage
process:
1. Identify cost of employee turnover.
2. Understand why employee leave.
3. Implement retention strategies
1 . Identify 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
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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 strategies:-
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 willseek 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.
How 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 the retention rates of a company? Basic salary, these days,
hardly reduces turnover. Today employees look beyond the money factor.
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EMPLOYEE RETENTION TOOLS
Communication: Communication has become so heavily stressed in the
workplace that it almost seems clich. However communication couldnt bemore important in the effort to retain employees. Be sure that team
members know their rules, job description, and responsibilities within the
organization. Communicate any new company policies or initiatives to all
employees to be sure that everyone is on the same page. Nobody wants to
feel that they are being left out of the loop.
Include employees in decision making: It is incredibly important to
include team members in the decision making process, especially when
decision will effect an individuals department or work team. This can help
to create of employee involvement and will generate new ideas and
perspectives that top management might never have thought of.
Allow team members to share their knowledge with others: The
highest percentage of information retention occurs when on shares that
information with others. Having team members share when they have
learned at a recent conference or training workshop will not only increase
the amount is information they will retain, but also lets a team member
know that he is a valuable member of the organization. Facilitating
knowledge sharing through an employee mentoring program can be
equally beneficial for the team member being mentored as well as mentor.
Balance work and personal life: Family is incredibly important to team
members. when work begins to put a significant strain on ones family no
amount of money will keep an employee around. stress the importance of
balancing work and ones personal life. Small gestures such as allowing a
team member to take an extended lunch once a week to watch his sons
baseball game will likely be repaid with loyalty and extended employment
with an organization.
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Provide opportunities for growth and development: Offer opportunities
for team members to acquire new skills and knowledge useful to the
organization. If an employee appears to be bored or burned out in a current
position offer to train this individual in another facet of the organization
where he or she would be a good fit. Nobody wants to feel stuck in their
position will no possibility for advancement or new opportunities.
Clearly define what is expected of team members: Nothing can be more
frustrating or discouraging for an employee than the lack of a clear
understanding of what is expected of him on the job. In a performance
driven workplace a lack of clarity regarding job duties and expectations can
cause fear and anxiety among employees who are unclear of what is
expected of them.
Even worse outright anger can occur when a team member receives a
negative performance evaluation based on expectations and job duties that
he or she was unaware of or unclear about.
The quality of supervision and mentorship: It has been said so often
that it is almost clich, but people leave, not their jobs. Supervisors play
the largest role in a team members development and ultimate success
within an organization. All employees want to have supervisors who are
respectful, courteous, and friendly that is a given.
But more importantly team member want supervisors who se clear
performance expectations, deliver timely feedback on performance, live up
to their word and promises, and provide an environment where the
employee can grow and succeed. Failure by supervisors and management
to provide this can cause an employee to start looking for greener pastures.
Fair and equitable treatment of all employees: One of the surest ways to
create animosity and resentment in an organization is to allow favoritism
and preferential treatment of individual team members. The so-called good
ole boys club can create a noxious organization culture and foster
resentment among team members. This culture will only get worse and can
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create a devastating exodus of valued team members.
Best employee reward programs: If these rewards are in terms of money,
by dividing it into two parts and giving the first half parts with the initial
months salary and the remaining after six months helps in retaining the
employee for six months.
Career development program: Conditional assistance for certain courses
should be provided within the company in which the company will bear the
expenses only if he/she scores a certain aggregate of marks.
Performance based bonus: To get more work out of the employees,
remuneration in the form of bonus helps to retain individuals who are highly
productive. It doesnt add extra pressure on the companys budget. It can
be arranged by cutting a part of the salary hikes.
Employee referral plan: Introducing employee referral plans and giving
referral bonus after six to nine months of continuous working of the new
employee as well as existing employee reduces the hiring cost of new
employee as well as helps retention of the existing ones for a longer period
of time.
Loyalty bonus: After successful completion of a specified period of time in
an organization rewarding employees with money or position gives
recognition and satisfaction to them. It also gives encouragement to the
fellow employees.
Giving voice to the knowledge banks: The important intellectual assets
of the company is the workforce. The company should retain it through
involving I in some of the important decisions.
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Employee recreation: Involvement of top management along with the
lower and middle level management in some recreational activities makes
the employees feel that they are very close to the management and are
treated equality.
Gifts on some occasions: Giving some gifts on festivals and special
occasions to the employees makes them feel good and realize that the
management is concerned about them.
Accountability: Creation of an environment that demands accountability
and transparency helps employees to feel that they are as superiors. This
helps in emotional bonding of the employees.
Surveys: Conducting regular surveys, feedbacks from superiors as well as
other issues like morale, development plans, etc. This make them feel
important and understand that the company really cares for them.
Fun and laughter at workplace: Fun and laugher in a workplace lend a
competitive advantage to an organization through its human recourses.
The presence of humor in a workplace enables the employees to work with
interest and enthusiasm that reduce the work pressure and attrition levels.
It instills a sense of joy among the employees that can go a long way in
creating a bond between the employees and the employer and thereby
deceasing the rate of employee attrition. in a nutshell, creating a fun and
laughter filled wok environment in an organization will pave the way for its
success in the marketplace. such a company is sure to emerge as an
employer of choice.
10 Reasons why Employees leave
Expectations not met
Mismatch between the person and the role Employees who find
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themselves in roles.
Insufficient opportunities for growth and advancement.
Insufficient recognition or appreciation.
Problems with direct manager.
Dissatisfaction with pay .
Stress
Lack of work life balance
Loss of confidence in the firm.
What Makes Employee Leave?
Employees do not leave an organization without any significant reason.
There are certain circumstances that lead to their leaving the organization.
The most common reasons can be:
Job is not what the employee expected to be: Sometimes the job
responsibilities dont come out to be same as expected by the candidates.
Unexpected job responsibilities lead to job dissatisfaction.
Job and person mismatch: A candidate may be fit to do a certain type of
job which matches his personality. If he is given a job which mismatches
his personality, then he wont be able to perform it well and will try to find
out reasons to leave the job.
No growth opportunities: No or less learning and growth opportunities in
the current job will make candidates job and career stagnant.
Lack of appreciation: If the work is not appreciated by the supervisor, the
employee feels de-motivated and loses interest in job.
Lack of trust and support in co-workers, seniors and management:
Trust is the most important factor that is required for an individual to stay inthe job. Non-supportive co-workers, seniors and management can make
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office environment unfriendly and difficult to work in.
Stress from overwork and work life imbalance: Job stress can lead to
work life imbalance which ultimately many times lead to employee leaving
the organization.
Compensation: Better compensation packages being offered by other
companies may attract employees towards themselves.
New job offer:An attractive job offer which an employee thinks is good for
him with respect to job responsibility, compensation, growth and learning
etc. can lead an employee to leave the organization.
Types of Employee Retention
Provide Perks
Offering employees perks that help them achieve a better work-life
balance can significantly increase the desire to keep theirjobs. For
instance, allowing employees to occasionally work from home helps
them if they need to care for a sick child. Benefit packages that
include health and life insurance and retirement plans keeps
employees on the job as well. Yet such plans need to be useful to
employees to have an impact on retention. Offering a health plan with
numerous exclusions that causes employees to pay for most of their
healthcare expenses out of pocket won't help retain them.
Promote Advancement
Focus on employee development and advancement to prevent workers
from feeling trapped in dead-end jobs, which usually leads to a high
turnover rate. Educational opportunities offered by employers and on-the-job training not only helps workers learn new skills to advance their careers,
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but also helps to improve job performance. Let employees know you're
willing to promote from within when possible. Employees often leave to
pursue better job opportunities when they don't see a chance for
advancement within the company structure.
Offer Financial Rewards
Financial rewards can help retain employees and boost their job
performance. Create a bonus system that rewards workers who reach a
specified job-performance goal. This retention method likely won't be
effective if the bonus offered is a paltry amount of money. It also won't be
effective if it's not an equal-opportunity bonus from which employees at alllevels can benefit. For example, subordinates usually won't be motivated to
step up their job performance so that their manager can get a bonus.
Encourage Communication
Employee-retention tips from the Wall Street Journal suggest that
employers establish open-communication policies with employees. That
includes hosting company meetings where workers can ask questions
about the company's future and share ideas on improving performance or
working conditions. Many employers conduct exit interviews with
employees who resign to determine why they're quitting, but the Journal
suggests engaging in "stay interviews" as well. Such interviews should be
conducted with longtime employees to determine why they've stayed with
the company and what they see as deal-breakers that would cause them to
leave.
The Advantages of Employee Retention
Acquiring Talent
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When organizations retain their employees, they avoid hiring costs. These
are often hidden costs. The cost to post on job boards can be annual or a
one-time expense. Agencies charge a percentage of an employee's annual
wages. Larger companies may have staffing departments whose sole
responsibility is screening and interviewing talent. Other companies may
assign this task to department heads or other individuals in the
organization. The time an individual spends screening and reviewing
resumes takes him away from his main job responsibilities. The hiring
process is risky. Background checks, personality testing and aptitude
testing can predict a candidate's capability, but there is still a risk.
Training and Development
Retaining workers reduces training costs. Recruits need to be trained in
business practices specific to the employer's software, culture and office
practices. Training requires one or more current employees to take time
away from their job responsibilities to educate the new employee on the
organization's way of doing business. Two or more people are on the
company payroll producing the results of one person. In the first 90 days, a
new hire costs the company money. When companies retain employees,
training dollars can be used to further develop the work force. Long-term
associates have the experience to review what has worked before and
apply that knowledge to future situations.
Skilled Labor Force
Employment retention develops a strong staff. Working individually or inteams these individuals share knowledge and expertise. The future
managers of an organization come from this work pool. These employees
are the historians of an organization's successes and challenges, and
provide mentoring to new hires They are committed to the continued
growth of the origination and its work force. These individuals have
finessed the inner workings of an organization. As they continue to develop
their skills, the organization benefits.
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Impact on Customer Service
Employee retention has a positive impact on customer service. Turnover
brings disruption in customer service, loss of business and possiblenegative business impacts. An organization's customer base expects
consistent and reliable service. There is a learning curve with new hires
and thus the potential for error or poor communication with a client. This
can impact business relationships. Long-term employees develop
relationships with customers. They know the clients' preferences and can
anticipate future needs. This knowledge develops over time.
Keys Solution for Employee Retention
Growth Opportunities
Attractive Package
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Personnel Training
Recreation
Organization Environment
Grievances
1. Growth Opportunities :-
Growth is everyones prime objective. Therefore it is implicit to offer
growth opportunities.
The vital factor that ensures a majority of senior level employees
remain associated with your organization. This is more crucial in an
industry like BPO, which has the highest churn rate because of the
prolonged boom in the industry.
2. Attractive Package :-
Remuneration package is the driving force of any employment.
Handsome package as a platform for people to take new initiatives.
Besides basic package, there can also be performance-based
incentives-relating to targets achieved, accuracy and productivity.
3. Personnel Training :-
An organization should also take due care of the training and
development needs of its employees.
Besides helping them improve their skills and enhance their
performance, it should also foster a faster growth rate in their career
path.
4. Recreation :-
Recreation is an important as any other tool. It helps in creating aconducive environment making fun for everyone.
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Thus, it is necessary to introduce consistent recreation initiatives like
Sports, Activities, family get together and unwinding zones at the
workplaces
Besides this, cultural programmes and Birthday celebrations break
the monotony of everyday work pressure.
5. Organization Environment:-
It is not about managing retention. It is about managing people. If an
organization manages people well, employee retention will take care of
itself. Organizations should focus on managing the work environment to
make better use of the available human assets.
People want to work for an organization which provides:
Appreciation for the work done
Ample opportunities to grow
A friendly and cooperative environment
A feeling that the organization is second home to the employee
Organization environment includes:
Culture
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.
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Support environment: Organization can provide support in the form
of work-life balance. Work life balance includes:
Flexible hours
Telecommuting
Dependent care
Alternate work schedules
Vacations
Wellness
Work environment: It includes efficient managers, supportive co-
workers, challenging work, involvement in decision-making, clarity of
work and responsibilities, and recognition.
Lack or absence of such environment pushes employees to look for
new opportunities. The environment should be such that the
employee feels connected to the organization in every respect.
6. Grievances:-
In order to create a supportive work atmosphere, ensure a prompt
atmosphere; ensure a prompt redressal of grievances. This
reinforces an employees belief in the management and in the fact,
that no stone will be left unturned to identify and solve their
grievances and quickly as possible.
The unbridled growth of the new economy, the emergences of theknowledge worker and the high demand for talent in the domestic
and global markets have rewritten the rules of the game.
Though hiring good employees is a nightmare, it is more difficult to
retaining good employees. The talent management is the key area in
every organization worth its HR department and CEOs are more
worried about intellectual capital than working capital. To add to theproblems are the huge packages being doled out at all levels.
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LITERATURE REVIEW
The literature clearly indicated that there are six keys to retainingpersonnel. They are recruiting, communications, training, job satisfaction,
pay and benefits.
Recruiting
The effort to retain the personnel begins with recruiting. Attracting and
retaining the best people are not two different things, but are the same
thing, Both require creating and maintaining a positive reputation, internally
as well as externally. Employers must be honest with the recruit about the
beliefs, expectations, organizational culture, demands and opportunities
within the organization. By representing the organization realistically, a
department will attract those who will be content working within the culture.
Denton follows this up by stating that, the better the match between
recruits and the organization the more likely you are to retain them
Lynn believes that you must take time during the hiring process to make
wise decisions. The employer must be candid about the working condition,
Responsibilities, opportunities and other details to reduce the chances of
making hiring mistakes.
Taylor and Cosenza strengthen this thought by noting that it is imperative
that company give prospective employees a true picture of the
organization, if they hope to match the personality type with the climate and
culture of the organization.
The literature was clear in pointing out that if departments want to increase
retention they must start with a solid recruiting process.
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Communications
Carney (1998) believes that the key to employee retention is quite simple :
communicate, communicate, communicate. Communication with the
employees must begin early on in the relationship. He believes that the
imprinting period of a new employee is probably less than two weeks.
Employers must engage the employee early on by sharing how important
the job they do is. Lynn follows this up by starting that early on an
atmosphere of fairness and openness must be created by clearly laying out
company policies.
Taylor and Consenza (1997) indicate that it is important to communicate
the values of the organization to its employees in order to increase their
level of consent, participation and motivation. Lynn, this thought by pointing
out that the vision of the organization must be shared with the employee as
well as the importance the employees play in helping fulfill it.
Lack of communication may result in gaps between management's
perceptions of quality employment and the employee desired and
perceives quality of employment. There must be a common purpose and
trust among employees. People want to feel as if they are a vital piece of
something larger (Carney, 1998). As Denton (1992) points out, managers
must make sure employees know what they should do and why it is
important.
Lynn (1997) notes that communications must be a two way street to be
effective. Employers must listen to what employees have to say. An
atmosphere must be created in which employees feel comfortable making
suggestions and trying our new ideas.
The literature revealed that communication must begin early in the
employer/ employee relationship. Organizational values and culture must
be made clear to all employees and their importance within the
organization must be continually emphasized.
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Training
As was noted earlier it is important that the employee feel like a valued
member of the organization. Training helps underscore this message.
Training personnel is a way to show you respect them and want them to
grow. The department is making an investment in the employee by offering
training. Good training can be de-emphasize salaries and benefits, in part
by building a positive work environment and by giving employees
advancement opportunities (Lynn, 1997). Lynn goes on to say that training
helps strengthen employee loyalty.
Training can help revitalize personnel. For an increasing number of people,
the chance to learn new skills is a significant personal goal for both the
career opportunities education can provide and for the chance to do
something a little different (Mendonsa,1998).
Training emphasizes to the employee that they are valued and respected.
This in turn to increased loyalty and retention.
Job satisfaction
While an organization must be competitive in terms of compensation and
benefits, it is the relationship with the supervisor that is often a crucial factor
in determining whether a person stays or goes(Mendonsa,1998).
Employees want more interaction with management, more self-satisfaction
on the job, more responsibility and more control over decisions affecting
them. They want their work to make a difference and want to be part ofsomething that matters (Taylor,1997).
Department should encourage innovation by soliciting the advice and input
of their staff members, followed by responses to ideas, complaints or
question (Taylor,1997). It is difficult to keep people on the job if they no say
in how to do it (Spragins,1992).
People need to be recognized for their accomplishments in the workplace.
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In most organizations the feeling of under-recognition is the most pervasive
feeling in the workplace . (Mendasa,1998)
Provide a great deal of personal and team recognition (carney,1998).
Recognize achievements with memos, mentions in staff meetings or
articles in the newspapers(Lynn,1997).
To retain employees, departments must offer career advancement
opportunities. Departments failing to offer employees career opportunities,
room for advancement and enhancement of skill and knowledge may find it
difficult to retain qualified employees (Taylo, 1997).
Marx(1995) concludes this by pointing out that promoting from within is one
of the proven methods of employee retention. Promoting from within shows
that there is truly room for advancement and growth within the department.
Employee involvements, recognition, importance of work and career
advancement opportunities are all important, when dealing with employee
retention.
Pay and Benefits
In general people think that money and benefits or lack thereof, are the
main reasons people leave their jobs, but this is not the case. While
compensation and benefits may be a key factor in the final decision-making
process, a money shortage is usually not what cause people to look in the
first place (Mendonsa, 1998).
Money may be the reason they give when they resign, but it's like White
noise. They are conscious of it for a while but if they are bored on the job,
Money alone is not going to keep them there .
Although traditional benefits such as vacation and health are still important,
today's workers are also looking for more non-traditional benefits. Benefits
such as flexible work hours, availability of child care tuition assistance
programs and discounts on services now top the list of desired benefits.
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The literature clearly indicates while still factors, Money and benefits are
not as important as job satisfaction in terms of employee retention.
Summary
The purpose of this topic was to identify why personnel were leaving PGL
and to suggest ways to improve Employee Retention.
The Literature was helpful in pointing out that employees stays or leave a
department based on sox key reasons, they were:
Poor recruiting practices
Communications
Training
Job satisfaction
Pay and Benefits
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1) Are you satisfied in this company?
Yes No
Employees satisfied in the company.
90% employees are satisfied in this company because employee
satisfy the good welfare facility, good salary, give good motivation, good
canteen facility, good working condition, transportation facility etc.., and
10% employees are not satisfied in this company because of low
salary, dis-satisfy of management, dis-satisfy of area, dis-satisfy of the
department, working condition etc.
1090
Yes
90%
No
10%
Yes No
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2) Have you ever tried for you job change in other industry?
Yes No
30% employees have tried for job change in other industry because of
best salary purpose or packages or job purpose, better satisfaction in other
company, for having better prospects, to best transportation facility , try to
career better growth, better profit, job satisfaction etcand 70 %
employees havent tried for job change in other industry because of
general ship, provide the good facility, less work load in the company & co-
operative of boss, no need the other company, satisfy in this company.
7030
Yes
30%
No
70%
Yes No
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3) Are you satisfied for the co-operation between you & your boss?
Yes No
Employees are satisfied for co-operation between you & your boss.
95% Employees are satisfied for co-operation between you & your boss
and 5% employees are satisfied for co-operation between you & your
boss.
595
Yes
95%
No
5%
Yes No
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4) Have you ever discussed about your dissatisfaction with yourboss?
Yes No
Employees have discussed about your dissatisfaction with your boss.
80% Employees have discussed about your dissatisfaction with your boss
and 20% Employees havent discussed about your dissatisfaction with your
boss.
2080
Yes
80%
No
20%
Yes No
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5). Are you aware of any retention efforts in this company?
Yes No
25 out of 100 employee are aware of retention effort in this company but
75% employee arent aware of retention efforts in this company.
7525
Yes
25%
No
75%
Yes No
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6). Do you know of specific retention problems in this company
Yes No
90 out of 100 employee knows of retention problem in this company but 10
out of 100 employee dont know of retention problems in this company.
1090
Ye s
90%
No
10%
Yes No
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7). Do you think management is taking care of you fully?
Yes N0
595
Ye s
95%
No
5%
Yes No
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Employees do think management is taking care of fully 95% means 95 outs
of 100 & employees dont think management is taking care of fully 5%
means 5 outs of 100.
8). Did they discuss with you specific reasons why they were
leaving?
Yes N0 955
Ye s
5%
No
Yes No
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I 5% employee discussed specific reason why they were leaving the job like
work load, Responsibility, Relation with colleagues, people care, freedom,
compensation, transparency etc but 95% employees arent discussed
specific reason why they were leaving the job.
9). What did you dislike about your job in PGL? Please tick the
following factor/ wherever applicable.
Sr.No Employees Dislikingin the Organization
Frequency
1 Work load 13
2 Responsibility 4
3 Relation with colleagues 64 People care 10
5 Freedom 10
6 Compensation 30
7 Transparency 2730
27
10
64
13
10
0
5
10
15
20
25
30
35
/workload
Responsib
ility
Relatio
nwith
colle
agu
es/
Peoplec
are
Freed
om
Compensa
tion
Transpare
ncy
Employee
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This graph shows about the dislikes of 80 Respondents related to their job
in Piramal Glass ltd. KOSAMBA. Among 100 Respondents 13 of them
disliked work load, 4 of them disliked Responsibility, 6 of them Dislike
Relations with colleagues, 27 of them disliked Transparency, 30 of them
disliked Compensation, 10 them disliked Freedom, 10of them disliked
People Care of PIRAMAL GLASS LTD.KOSAMBA.
10). Are you satisfied with the facilities provided by the managementcompany?
Yes No 1585
Yes
85%
No
15%
Yes No
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85% employees are satisfied with the facilities provided by the
management company and 15% employees are not satisfied with the
facilities provided by the management company.
11) What is the factor which affects to continue your job? [Give rate up from5 (best) to 1 (lowest)]
Welfare
Increment
30
10
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Transport
Canteen
Others
25
25
10
2525
10
30
10
0
5
10
15
20
25
30
35
welfare
increm
ent
transport
canteen
others
Employee
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Welfare 30% means 30 outs of 100
Increment 15% means 15 outs of 100
Transport 25% means 25 outs of 100
Canteen 20% means 20 outs of 100
Other 10% means 10 outs of 100
12). Do you want extra facility?
Yes No8020
Yes
20%
No
80%
Yes No
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This chart shown how many respondent of here 20% means 20 out of 100
employees have wants extra facility and 80% means 80 out of 100 have
not want extra facility.
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13). If yes, then which type of facility do you want?
Employee want extra facility like,
Traveling Facility
Giving Overtime when provide traveling Facility
Sport meditation
Loan Facility
Tour Facility
Education loan
Any other facility which covered in company rules & regulation
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14). Does management give proper authority to you against your jobresponsibility?
Yes No
This chart shown how many respondent of here management does give
proper authority to you against your job responsibility 90%means 90 out of
100 and 10% means 10 0ut of 100 management doesnt give proper
authority to you against your job responsibility.
1090
Ye s
90%
No
10%
Yes No
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15) Reasons for leaving the Organization.
Sr. No. Reasons for leaving the organisation Frequency1 Better career Opportunities 142 Compensation 153 Relocation 104 Higher Studies 75 Lack of role clarity & Responsibility 66 Family/Personal Reasons 157 Dissatisfaction related to recognition 8
8 Stagnancy 59 Shift In Industry 910 Bureaucracy 211 Retirement 312 Workload 313 Improper Communication 3
15
8
5
9
2
3 3 3
7
10
1514
6
0
2
4
6
8
10
12
14
16
Bettercare
eropportunities
Compensatio
n
Relocation
Higher
studies
Responsibility
Family
Reasons
Dissatisfy
recgnition
Stagnancy
Shiftin
company
Bureacracy
Retirement
work
load
Improper
communication
Employee
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From the data analysis and interpretation shown above research has
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to come on to the following findings:-
1) It is found that 95% employees are Satisfied in this company because
employee satisfy them with good welfare facility, good salary, give good
motivation, good canteen facility, good working conditions, transportation
facility etcbut 5% employees are dis-satisfied in this company because of
low salary, dis-satisfied of management, dis-satisfied of area, dis-satisfied
of the department etc.
2) It is found that, 30% employees have tried for job change in other
industry because of high salary purpose or packages or job purpose, better
satisfaction in other company, for having better prospects, to get best
transportation facility, try to get better career growth, job satisfaction etc.
and 70% employees havent tried for job change in other industry because
of general shift, provide the good facility, less work load in the company &
co-operativeness of boss etc.
3) It is found that, 95% Employees are satisfied for co-operation between
them & their boss and 5% employees arent satisfied for co-operation.
4) It is found that, 55% Employees have discussed about your
dissatisfaction with your boss but 45% Employees havent discussed about
your dissatisfaction with your boss.
5) Employees do think management is taking carefully 95% means 95 out
of 100 & employees dont think management is taking carefully 5% out of
100%.
6) It is found that, 85% employees are satisfied with the facilities provided
by the management and 15% employees are not satisfied with the facilities
provided by the management.
7) It is found that, 20% employees want extra facility like sport, Meditation.
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Loan Facility, Tour facility, Education loan etc and 80% employees have
not want extra facility.
8) Management does give proper authority to you against your job
responsibility 90% means 90 out of 100 and 10% means 10 out of 100
responded that management doesnt give proper authority to them against
job responsibility.
9) It is found that, 5% employee discussed specific reason why they were
leaving the job like work load, Responsibility, Relation with colleagues,
people care, freedom, compensation, transparency etc but 95% employees
arent discussed specific reason why they were leaving the job.
10) It is found that, 13% disliked work load, 4% disliked responsibility, 6%
dislike relations with colleagues, 27% dislike transparency, 30% disliked
compensation, 10% disliked freedom, 10% disliked people care of disliked
about job in PGL.
11) It is found that, welfare 30%, Increment 10%, Transport 25%, canteen
25% & other 10%.
12) It is found that, among 100 respondents, 14% of better career
opportunities, 15% of Compensation, 10% of relocation, 7% of higher
studies, 6% responsibility, 15% Family reasons, *% dissatisfaction related
to recognition, 5% of Stagnancy,9% of shift in industry, r% of Bureaucracy,
3% of retirement, 3% of workload, 3% of Improper communication ,
reasons for leaving the organization.
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Recommendation1) Satisfaction level is high but company should try to make employee
more satisfied by improving welfare facility, increment in salary,
improve canteen facility, working condition, provide future scope &
opportunity, etc.
2) Company should try to retain employee in the organization.
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3) The relationship between employees & boss is good but company
should try to improve it.
4) The organization should increase the number of awards so
employee gets more motivated towards work.
5) Organization may facilities provided to the employees like
Traveling Facility
Giving Overtime when provide traveling Facility
Sport meditation
Loan Facility
Tour Facility
Education loan, fees facility.
6) Employee should attend each and every training program related to
Employee retention.
7) Organization should visit or training to competent of employee atnational and international level.
8) Organization should give facility to employees children like
education loan, education allowance, education fees etc
. www.Piramal.com
Human Resource Management C.B.Memoria
Research methodology C.R.Kothari
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Internet,www.google.com
. magazine HRM REVIEW Changing Role Of HR
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QUESTIONNAIRE
Sir,
I am Dipika modi.I am a student of MBA (sem-2 nd ), I need your co-
operation to complete my project on Employee Retention provided to
the employees of PIRAMAL GLASS LIMITED,KOSAMBA.
I request you to fill up the questionnaire given below.
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Thank You.
NAME:-
AGE :-
ADDRESS:-
QUALIFICATION:-
1) Are you satisfied in this company?
a) Yes
b) No, Why ___________________________________________
2) Have you ever tried for your job change in other industry?
Yes / No
Why: - ________________________________________________
3) Are you satisfied for the co-operation between you & your
boss/peers?
a) Yes
b) No
4) Have you ever discussed about your dissatisfaction with your
boss?
a) Yes
b) No
5) Are you aware of any retention efforts in this company?a) Yes
b) No
6) Do you know of specific retention problems in this company?
a) Yes
b) No
7) Do you think your management is taking care of you fully?
a) Yes
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b) No
8) Did they discuss with you specific reasons why they were
leaving?
a) Yes
b) No
9) What did you dislike about your job in PGL? Please tick the
following factor/ wherever applicable.
Responsibility / Work load
Relation with collegues / senior
People care
Freedom
Compensation
Transparency
10)Are you satisfied with the facilities provided by the management
/company?
a) Yes
b) No
11)What is the factor which affects to continue your job? Give rate
up from 5(best) to 1(lowest)
welfare
increment
Transport
canteen
others
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12)Do you want any extra facility?
a) Yes
b) No
13)If yes, then which type of facility do you want?
______________________________________________________
______________________________________________________
______________________________________________________
14)Does management give proper authority to you to perform and
achieve the required result?
a) Yes
b) No
15) What is your Primary reason for leaving company?( Piease
Tick)
Better career opportunity
Compensation
Underable impact on health / stress
Discrimination related to
Compensation
Work Load
Recognition
Other (Specify)
Relations at work place
Lack of clarity in Roles & Responsibility
Relocation higher studies
Family, personal Reasons
Dissatisfaction related to
Compensation
Work Load
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Recognition
Other
Job insecurity
improper communication in Dept
Bureaucracy
Retirement