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Transcript of Hr - Retention Management System - Tech Mahindra
SUMMER TRAINING PROJECT REPORT
ON
RETENTION MANAGEMENT SYSTEM WITH RESPECT TO
Submitted in partial fulfillment of the requirementsfor the degree of
MASTER OF BUSINESS ADMINISTRATION
SUBMITTED TO
Department of Management StudiesJSS Academy of Technical Education, Noida - 201301
SUBMITTED BY
NEHA SHAKYAMBA (2011-13)
Roll No. 1101970025
JSS ACADEMY OF TECHNICAL EDUCATION
NOIDA – 201301MAHAMAYA TECHNICAL UNIVERSITY, NOIDA
(2011-2013)
1
PLAGIARISM DECLARATION CERTIFICATE
To the best of my knowledge and belief, this Summer training Project Report is my own
work, all sources have been properly acknowledged, and the report contains no
plagiarism.
I have not previously submitted this work or any version in full or part of it, for
assessment in any other university or institution for any degree or diploma program.
I acknowledge that this Summer Training Project Report may be transferred and stored in
a database for the purposes of data-matching to help detect plagiarism.
Student NameNEHA SHAKYA
16.11.2012
2
Company’s Certificate
3
JSS MAHAVIDYAPEETHAJSS ACADEMY OF TECHNICAL EDUCATION, NOIDA
DEPARTMENT OF MANAGEMENT STUDIES
CERTIFICATE
This is to certify that Ms. Neha Shakya has successfully completed the Summer
Training Project Report titled 'Retention Management System with respect to Tech
Mahindra Ltd.' from 20.06.2012 to 05.08.2012, as the partial fulfillment of the
requirement for the award of degree of Masters of Business Administration (M.B.A.)
by Mahamaya Technical University during batch (Batch year).
Dr. M.K. Sharma
Head, Department of Management Studies,
JSSATE, Noida
4
ACKNOWLEDGEMENT
The authorship of a monograph is usually attributed to one person but a report on the
Internship or a project work like this one is a joint affair. I am indebted to all who have
been of great help to me in doing and writing this project report.
Firstly, I am thankful and express my gratitude to Mr. B.K. Tyagi, Senior Manager
(HR), Tech Mahindra Ltd. for his valuable guidance and support at all time and provided
me the best opportunity to completed my summer training project with an esteemed
organization.
I am also grateful and extend my thanks to ______________________ (Faculty Guide)
for his able guidance and support at all time.
Special regard and greatest appreciation is reserved for all the Executives and Employees
of Tech Mahindra Ltd. for their valuable guidance and support at all time.
I am pleased to say that the whole report is just the presentation of the facts that have
been found during the projects through different sources and its each sentence is an exact
representation of the information obtained and the analysis thereof.
I hope that I have manifested my sincere attempts to represent all the information and
other things to the best of ability.
NEHA SHAKYAMBA (2011-13)
Roll No. 1101970025
5
TABLE OF CONTENTS
PREFACE
INTRODUCTION
COMPANY PROFILE
LITERATURE REVIEW
OBJECTIVES OF THE STUDY
RESEARCH METHODOLOGY
GRAPHICAL DATA INTERPRETATIONS
FINDINGS
RECOMMENDATIONS
SUGGESTIONS
CONCLUSIONS
- BIBLIOGRAPHY
- QUESTIONNAIRE
6
PREFACE
Tech Mahindra is a global systems integrator and business transformation consulting firm
focused on the communications industry. With the convergence of media and telecom,
the changing landscape of the telecom industry is becoming extremely competitive.
Employee retention at Tech Mahindra 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 don’t 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 don’t, they would be left with no good employees.
A good employer should know how to attract and retain its employees. Most employees
feel that they are worth more than they are actually paid. There is a natural disparity
between what people think they should be paid and what organizations spend in
compensation. When the difference becomes too great and another opportunity occurs,
turnover can result. Pay is defined as the wages, salary, or compensation given to an
employee in exchange for services the employee performs for the organization. Pay is
more than "dollars and cents;" it also acknowledges the worth and value of the human
contribution. What people are paid has been shown to have a clear, reliable impact on
turnover in numerous studies. Employees comprise the most vital assets of the company.
In a work place where employees are not able to use their full potential and not heard and
valued, they are likely to leave because of stress and frustration. In a transparent
environment while employees get a sense of achievement and belongingness from a
healthy work environment, the company is benefited with a stronger, reliable work-force
harboring bright new ideas for its growth.
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INTRODUCTION
As per philosophically, employee retention is important; in almost all cases, it is
senseless to allow good people to leave your organization. When they leave, they take
with them intellectual property, relationships, investments (in both time and money), an
occasional employee or two, and a chunk of your future. Employee Retention Strategies
helps organizations provide effective employee communication to improve commitment
and enhance workforce support for key corporate initiatives. We also provide full support
for your marketing-communication efforts by helping you build customer loyalty by
distinguishing and positioning your organization’s unique products and services in
today’s crowded marketplace.
HUMAN RESOURCE MANAGEMENT
HRM is the strategic and coherent approach to the of management an organization's
most valued assets - the people working there who individually and collectively
contribute to the achievement of the objectives of the business. The terms "human
resource management" and "human resources" (HR) have largely replaced the term
"personnel management" as a description of the processes involved in managing people
in organizations. Human Resource management is evolving rapidly. Human resource
management is both an academic theory and a business practice that addresses the
theoretical and practical techniques of managing a workforce.
The Human Resources Management (HRM) function includes a variety of activities, and
key among them is deciding what staffing needs you have and whether to use
independent contractors or hire employees to fill these needs, recruiting and training the
best employees, ensuring they are high performers, dealing with performance issues, and
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ensuring your personnel and management practices conform to various regulations.
Activities also include managing your approach to employee benefits and compensation,
employee records and personnel policies. Usually small businesses have to carry out
these activities themselves because they can't yet afford part- or full-time help. However,
they should always ensure that employees have -- and are aware of -- personnel policies
which conform to current regulations. These policies are often in the form of employee
manuals, which all employees have. HRM is seen by practitioners in the field as a more
innovative view of workplace management than the traditional approach. Its techniques
force the managers of an enterprise to express their goals with specificity so that they can
be understood and undertaken by the workforce and to provide the resources needed for
them to successfully accomplish their assignments. As such, HRM techniques, when
properly practiced, are expressive of the goals and operating practices of the enterprise
overall. HRM is also seen by many to have a key role in risk reduction within
organizations. There is a long-standing argument about where HR-related functions
should be organized into large organizations, eg, "should HR be in the Organization
Development department or the other way around?"
The HRM function and HRD profession have undergone tremendous change over the
past 20-30 years. Many years ago, large organizations looked to the "Personnel
Department," mostly to manage the paperwork around hiring and paying people. More
recently, organizations consider the "HR Department" as playing a major role in staffing,
training and helping to manage people so that people and the organization are performing
at maximum capability in a highly fulfilling manner.
9
COMPANY PROFILE
Tech Mahindra is a global systems integrator and business transformation consulting firm
focused on the communications industry. With the convergence of media and telecom,
the changing landscape of the telecom industry is becoming extremely competitive. As
companies rapidly strive to gain a competitive advantage, Tech Mahindra helps
companies innovate and transform by leveraging its unique insights, differentiated
services and flexible partnering models. This has helped our customers reduce operating
costs and generate new revenue streams. Recognizing that margins from connectivity are
rapidly falling and that future growth in revenues and margins will only come from new
applications, content and services, operators today are busy addressing business
opportunities revolving around Commerce, Content, Convergence and Customer
Experience to gain a sustainable Competitive Advantage. For over two decades, Tech
Mahindra has been the chosen transformation partner for wire line, wireless and
broadband operators in Europe, Asia-Pacific and North America. Majority owned by
Mahindra & Mahindra, one of the Top 10 industrial houses in India, in partnership with
British Telecommunications plc (BT), world’s leading communications service provider,
Tech Mahindra has grown rapidly to become the 5th largest software exporter in India
and the first largest telecom software provider from India.
The telecom software provided by Tech Mahindra can be broadly classified into two
forms:
Telecom Service Provider
Telecom Equipment Manufacturer
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The software industry has made a steady growth in the past 2 – 3 years with the top-tire
competitors growing at the rate of 35% annually. The IT sector of Tech Mahindra is
showing an impressive growth. The general average revenue of the company is estimated
to be Rs 12 billion (US $268) over the last six years. Further, the latest financial estimate
of the company has already crossed Rs 29 billion.
For over two decades, Tech Mahindra has been the chosen transformation partner for
wireline, wireless and broadband operators in Europe, Asia-Pacific and North America.
Majority owned by Mahindra & Mahindra, one of the Top 10 industrial houses in India,
in partnership with British Telecommunications plc (BT), world’s leading
communications service provider, Tech Mahindra has grown rapidly to become the 5th
largest software exporter in India and the first largest telecom software provider from
India.
Over 25,000 professionals service clients across the telecom eco-system, from our global
network of development centres and sales offices across Americas, Europe, Middle-east,
Africa and Asia-Pacific. Committed to quality, Tech Mahindra adds value to client
businesses through well-established methodologies, tools and techniques backed by its
stringent quality processes. Tech Mahindra is ISO 9001:2000 certified and is assessed at
SEI-CMMI Level 5. Tech Mahindra has also been awarded the ISO 20000-1 (IT Service
Management standard) and ISO 27001 (Security Management standard) certification for
its development centers across India and UK. Tech Mahindra is certified at PCMM Level
5 for its people-care practices and is the third company in the world to have been
appraised for SSE-CMM Level 3.
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MANAGEMENT TEAM
The management team of Tech Mahindra are:
Anand Mahindra, Chairman of Tech Mahindra
Anand Mahindra (Born on 1 May, 1955) is the Vice Chairman and Managing Director
of one of India’s largest companies, Mahindra & Mahindra. He now resides in his home
town Mumbai. Mahindra returned to India and joined Mahindra Ugine Steel Company
(MUSCO) where he became President and Deputy Managing Director in 1989. During
this time he initiated the Mahindra Group’s diversification into the new business areas of
real estate development and hospitality. In 1991, he was appointed Deputy MD of
Mahindra & Mahindra Ltd. He became the Managing Director in 1997 and took on the
additional responsibility of Vice Chairman in 2003. Under Anand Mahindra, the
company launched India’s best loved SUV, the Scorpio, which today has gone global. He
has recently been ranked amongst the most influential men & women in Mumbai by
Daily News and Analysis. Mahindra is the co-founder of the Harvard Business School
Association of India, an association dedicated to the promotion of professional
management in India. The association has grown substantially over the years. He is the
co-chair at the World Economic Forum at Davos. Mahindra is a Director of The National
Stock Exchange of India Limited appointed under the "Public Representatives" category.
He is the Chairman of National Safety Council of India. He is the Co-Chairman of the
International Council of the Asia Society, New York.
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Vineet Nayyar, Vice Chairman
An accomplished leader, Sir Vineet Nayyar has led several organizations across
industries, creating high performance teams and successful businesses. In a career
spanning over 40 years, he has worked with the Government, international multilateral
agencies and the corporate sector (both public and private). Vineet holds a Master’s
degree in Development Economics from Williams College, Massachusetts.
Sonjoy Anand, Chief Financial Officer
Sonjoy Anand is responsible for the Finance, Legal and Secretarial functions at Tech
Mahindra. He has been Chief Executive for a portfolio of businesses with ICI. Most
recently, he was the Director, Finance for a global business with a multinational
corporation based in the UK with additional responsibility for the Procurement and
Information Technology functions. Sonjoy has extensive experience covering
acquisitions, divestments and formation of joint ventures. A graduate in Economics
(Hons.) and a qualified Chartered Accountant, Sonjoy has approximately 25 years of
experience in Finance and General Management.
13
Sujit Baksi, President – Corporate Affairs
Sujit has over 30 years of experience in the areas of people management, operations
management and corporate strategy. At Tech Mahindra, Sujit leads the HR, Resource
Management Group, Infrastructure functions including Technical Infrastructure
Management, Training (Technical & Behavioral), Managed Services and the
Administrative functions. Sujit is a graduate from Presidency College, Kolkata having
completed his post graduate specialization in Personnel Management from XLRI,
Jamshedpur,
Sanjay Kalra, CEO
Sanjay Kalra is the CEO of Tech Mahindra. In his earlier role at Tech Mahindra he
spearheaded the BT relationship and business transformation services. Prior to joining
Tech Mahindra, Sanjay was the Chief Executive Officer of DSL Software (a joint venture
between HCL and Deutsche Bank), which is focused on IT and BPO solutions to Capital
Markets. He has also served as President of HCL Technologies Europe and was
responsible for the creation and incubation of Cisco's first outsourced R&D center
outside North America with around 1000 engineers.
14
VISION & MISSION OF TECH MAHINDRA LTD.
Vision: To be the leading global software solution provider to the telecom industry.
Mission: To be the global leader in Outsourcing Services to the Telecom industry,
building on our technologies, competencies and customer interests, and creating value for
our shareholders and customers.
The Values that drives Tech Mahindra: Tech Mahindra is focused on creating
sustainable value growth through innovative solutions and unique partnerships. Our
values are at the heart of our business reputation and are essential to our continued
success. We foster an environment to instil these values in every facet of our
organization.
Customer first, Good corporate citizenship, Professionalism, Commitment to
quality, Dignity of the individual
Services offered by Tech Mahindra
Business Consulting, Systems Integration, Application Support and Maintenance
Managed Services
QUALITY STANDARDS FOLLOWED BY TECH MAHINDRA
As a part of its mature quality processes, Tech Mahindra uses well defined process
measurements to monitor the quality of solutions delivered and ensure continuous
improvement. With a strong focus on process management, Tech Mahindra’s Business
Management System (BMS) integrates business needs and industry best practices to
deliver services that constantly improve:
15
Customer Satisfaction
Productivity and Cycle-Time
Quality of Solutions and Services
Integration of Initiatives
Tech Mahindra's BMS is designed to develop solutions that meet client specifications in
accordance with statutory and other industry-wide standards. Tech Mahindra’s quality
leadership conforms to world-class quality standards and models. Tech Mahindra is ISO
9001:2000 certified and is assessed at SEI-CMMI Level 5. Tech Mahindra has also been
awarded the ISO 20000-1 (IT Service Management standard) and ISO 27001 (Security
Management standard) certification for its development centres across India and UK.
Tech Mahindra is certified at P-CMM Level 5 for its people-care practices and is the
third company in the world to have been appraised for SSE-CMM Level 3.
Tech Mahindra's Service Delivery Framework - mASTER™
Based on proven methodologies and industry best practices, Tech Mahindra has defined a
holistic transition process framework - mASTER™ - for effective service delivery to
customers. mASTER™ offers a methodology for planning, managing, delivering and
operating complex programs through five defined phases as depicted below:
The mASTER™ methodology covers a broad range of activities that are structured
around quality gates and deliverables, thus ensuring a predictable and measurable
business outcome and consistent quality of deliverables.
MILESTONES
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1986 - Incorporation in India
1987 - Commencement of Business
1993 - Incorporation of MBT International Inc., the first overseas subsidiary
1994 - Awarded the ISO 9001 certification by BVQI
1995 - Established the UK branch office
2001 - Incorporated MBT GmbH, Germany incorporated. Re-certified to ISO
9001:1994 by BVQI
2002 - Assessed at Level 5 of SEI CMM by KPMG. Incorporated MBT Software
Technologies. Limited, Singapore
2003 - Re-certified to ISO 9001:2000 by RWTUV
2006 - Name changed to Tech Mahindra Limited. Assessed at Level 5 of SEI
People-CMM (P-CMM) by QAI India. Raised Rs4.65 billion ($100 million) from
a hugely successful IPO to build a new facility in Pune, to house about 9,000
staff. Formed a JV with Motorola Inc. under the name Canvas.
2007 - Acquired policy Networks Private Limited. Launched the Tech Mahindra
Foundation to address the needs of the underprivileged in our society, especially
children.
2009 -Tech Mahindra wins bid for Satyam. Tech Mahindra has won the bid for
Satyam Computer Services.
17
AWARDS & RECOGNITIONS
Ranked #1 in Telecom Software category by Voice & Data, 2009 (V&D100
Ranking)
Ranked 11th Largest TOMS vendor by Gartner in "Market Share: Telecoms
Operations Management Systems – Worldwide, 2006-2008" May 2009
In the Leaders Category in 'The 2009 Global Outsourcing 100' (IAOP's Annual
Listing of the World's Best Outsourcing Service Providers)
Deloitte Technology Fast 500 APAC 2008
Deloitte Technology Fast 50 India 2008
Award for Excellence in Training (Employer Branding Awards 2008-2009)
'Best Overall Recruiting & Staffing Organization of the Year Award' (RASBIC
Awards 2009)
Award for Managing Health at Work (Employer Branding Awards 2008-2009)
Award for Excellence in Training (Employer Branding Awards 2008-2009)
BusinessWeek Award for Asia’s Best Performing Companies, 2008
Ranked 2nd in Telecom Software providers of India by Voice & Data, 2008
(V&D100 Ranking)
“Growth Excellence Award” by Frost & Sullivan, 2008
6th Largest Software Services Company in India (NASSCOM 2008)
10th Largest IT-BPO Employers, FY 07-08 (NASSCOM 2008)
Award for “Best Start-up Company” at Mobile Content Awards & Conference
18
2008 (MCA08) to CanvasM
Award in “Largest Revenue Category” of “IT and ITeS (excluding Hardware)
Sector” by D&B – ECGC Indian Exporters Excellence Awards, 2008
Ranked 12th Largest TOMS vendor by Gartner in "Market Share: Telecoms
Operations Management Systems – Worldwide, 2006-2007" April 2008
"Best Billing Solution" Category at "Billing and OSS World (B/OSS) Excellence
Awards 2008", April 2008
The Brand Leadership Award by the Asia Brand Congress, 2008
'Best Overall Recruiting & Staffing Organization of the Year Award' (RASBIC
Awards 2008)
In the Leaders Category in 'The 2008 Global Outsourcing 100' (IAOP's Annual
Listing of the World's Best Outsourcing Service Providers)
'Organization with the most innovative HR practices Award' (Asia Pacific HRM
Global HR excellence Award 2007) 3rd largest BSS Systems Integrator and 5th
largest BSS Vendor (Gartner-Dataquest, World Wide Analysis 2000-2006,
published in 2007)
Product Innovation Award for Enterprise DRM (Frost & Sullivan Asia ICT
Awards 2007)
Vertical Growth Leadership in Telecom Software (Frost & Sullivan Asia ICT
Awards 2007)
The Elite member of the Deloitte Technology Fast 50 India (2007)
The Brand Leadership Award by the Asia Brand Congress, 2007
19
IT SERVICES AND TELECOM SOLUTIONS
Tech Mahindra is the global leader in delivering the end to end IT services and solutions
The company has 15000 professionals’ service clients in various telecom segments, from
various offshore development centers including 7 cities in India and UK and 13 sales
centers in Americas, Europe and Asia-Pacific.
The company integrates domain expertise in OSS and Business Support Systems systems,
intelligent leadership and a global workforce advantage to deliver services. The company
has service premium telecom companies worldwide.
IT provides a wide variety of services ranging from IT strategy and consulting to system
integration, design, application development, implementation, maintenance and product
engineering. It has a rich telecom heritage, dedicated to quality; Tech Mahindra adds
value to client business process by well-established methodologies, tools and techniques
backed by Quality. Tech Mahindra is ISO 9001:2000 certified and is also a SEI-CMMi
Level 5 organization. Tech Mahindra is also BS7799 certified at all development centers.
Majority owned by Mahindra & Mahindra, India’s fifth largest commercial group, in
partnership with BT Plc (BT), Europe’s second largest telecom service provider, It has
grown in a rapid way to attain the position the 8th largest software exporter in India
Vision- To be the leading global software solutions provider to the telecom industry.
Mission Statement- To be the global leader in outsourcing services, To the telecom
industry, Building on our technologies and competencies, And customer interests, And
creating value for our share holders and customers
20
THE VALUE THAT DRIVES TECH MAHINDRA
Tech mahindra is focussed on creating remarkable value growth through innovative
/creative solutions and partnerships. Their values are at the heart of their business /brand
name and are essential to their sustained success they foster an environment to instill
these values in every aspect of their organization
1. Corporate citizenship
2. Professional approach
3. Customer satisfaction first
4. Customer centricity
5. Dedication towards quality
6. The integrity of individual
Infrastructure
Tech mahindra has seven software development centers, one in United Kingdom and six
in India (mumbai. Chennai, pune, Bangalore, kolkata, noida). 13 regional offices spread
over UK, USA, Germany etc.
Achievements
1. It is ranked by NASCOMM as the eight largest IT services in context of export
revenue.
2. The relationship with BT has given an edge, now they have an established presence in
the European market, they have grown in North American market with clients such as
AT&T, and they have also come into picture in south Asian countries with clients in
countries like Thailand, Malaysia and India.
21
3. Their revenue grew at the annual growth rate of 26% and their no of employees grew
at an annual growth rate of 24% in 2004-2006.
SERVICES
Solution integration- This is a kind service that enables client to identify, develop and
implement the most effective solutions to their change needs/requirements. There is
requirement of business processes across organization’s entire value chain of customers,
partners, suppliers and employees.
Solution integration is crucial in different domains of organization due to different
factors:
1. Multi - tasking systems for various domains.
2. Post mergers acquisitions, process & networks need integration.
3. New product implementations require integration/unification with other existing
systems.
4. Increased business value is demanded
5. Investment maximization is necessary
6. There is a requirement to integrate with business partners, suppliers, customers to
decrease inventory.
7. There is a need to decrease manual interactions/transactions.
TECH MAHINDRA ADVANTAGE
1. World leading track record in telecom industry.
2. Application outsourcing experience is of two decades now
3. The company has flexible procedures
22
4. The focus is on SLA’S that improves efficiency.
APPLICATION DEVELOPMENT AND MANAGEMENT
Consulting
The organization offers complete range of consulting services, which is used to analyze
client’s business need to implement software systems. The constancy is proved in the
field of re – engineering solutions, strategic control.
The strategic alliance has given edge to market penetration and competitiveness in
emerging markets. This is also effective in product evaluation.
Global Managed Services
The key to success in current scenario is focus on core competency. Business today faces
increased network complications, varied bandwidth needs, and decreased budgets and it
is found that traditional solutions to these challenges causes distraction from their core
business strategies.
Organizations are therefore looking at outsourcing services to a managed service
provider. Tech Mahindra’s managed services provide an opportunity to customers to
outsource business and operations process, high standard of quality, accountability is
assured .it is cost effective and the risk is low. Global managed services; A specialized
team is created which has the expertise to manage an enabling infrastructure and process.
BPO Services
This is a logical extension of IT services, tech Mahindra provides an e2e package to its
telecom clients, The global facilities in context to outsourcing is provided.
23
HUMAN RESOURCES PROCESS AT TECHM
Personal administration (PA)
Personal development (PD)
Implementation process
The projects which are undertaken by tech Mahindra are done in following phases:
Scoping
What needs implemented, which sub modules are required be implemented, some clients
may not require finance management, example, marketing people along with project
manager do it.
BPO (BUSINESS PROCESS OWNER) is the clients employee who has knowledge of
the client business processes probably a middle management executive, it could more
than one, collection of all the ISO documents, if client is ISO certified, reports and forms
at this stage and analyze how and when the reports /forms are generated, What is the
source of data.there is level –2 training is done for BPO so he is made aware of all the
required transactions in SAP. After its completion BPO starts learning with the
consultants, help more about SAP. This is crucial because if there is a miss on any
transactions the BPO may neglect some of business processes which may arise later.it is a
good practice to ask the BPO to construct flow charts to understand business process.
The processes are mapped to SAP. Some processes are not sure whether they are present
in SAP or not we try to do a configuration of those processes, and along with BPO, BPO
involvement is needed as he be able to tell his needs better once the business modeling is
24
accomplished, we will also be made aware the gaps between as – is and to – be, here
decisions has to be made as to whether an ABAP development/system modifications is
needed or not and so on, the BPO involvement should be involved and document
everything.
Business blue print
Here the as-is and to-be and gap analysis is understood. This is the document that is used
to perform the integration in the realization phase.
Realization phase
The configuration takes place in the development server (there are three domains –
development, quality, production. The master data format is being decided upon, so that
BPO is able to collect the master data. ABAP specifications are delivered to forms
reports systems modifications, etc.
Unit testing
BPO and few key users are involved to test the configuration in the module .It is best to
test the BDCs that you need for uploading information at this stage, so that there is
realistic data and BDCs are tested.
Integration testing
After unit testing is over then configuration is moved to the quality sever, where testing
for all the functions/domains is done byBPOs and end user, this helps to check if any
issue’s are there in context to integration between various functions, once it is approved
from the QA sever config is moved to the production server.
25
VALUABLE CLIENTS OF TECHM
Major clients of Tech Mahindra in ERP are:
1. British telecom
2. AT&T
3. Motorola
4. Mahindra & Mahindra
5. MEA Bangkok
Clients Testimonials
“It has shown/maintained a very important role in BT’s strategy and proving to be
stronger partner. India is a very important market for BT, Business is growing at fast pace
and I am proud to be a part of tech mahindra’s second growth phase here in Asia pacific”
BT GROUP
Taking TMF Catalyst initiative, Tech Mahindra studied our "As Is" processes to identify
and analyze the Gaps by answering questions like, what does eTOM mean to these
processes, where can we find these processes in the eTOM mapping, etc? The 'To Be'
processes were built up by using the eTOM business process framework.
The credit goes to Tech Mahindra for the excellent support and for the good teamwork.
We will always look forward to work with Tech Mahindra.”
26
LITERATURE REVIEW
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 diverse needs. A strong retention strategy
becomes a powerful recruitment tool. Retention of key employees is critical to the long-
term health and success of any organization. It is a known fact that retaining your best
employees ensures customer satisfaction, increased product sales, satisfied colleagues
and reporting staff, effective succession planning and deeply imbedded organizational
knowledge and learning. Employee retention matters as organizational issues such as
training time and investment; lost knowledge; insecure employees and a costly candidate
search are involved. Hence failing to retain a key employee is a costly proposition for an
organization. Various estimates suggest that losing a middle manager in most
organizations costs up to five times of his salary. Intelligent employers always realise the
importance of retaining the best talent. Retaining talent has never been so important in
the Indian scenario; however, things have changed in recent years. In prominent Indian
metros at least, there is no dearth of opportunities for the best in the business, or even for
the second or the third best. Retention of key employees and treating attrition troubles has
never been so important to companies. In an intensely competitive environment, where
HR managers are poaching from each other, organisations can either hold on to their
employees tight or lose them to competition. For gone are the days, when employees
would stick to an employer for years for want of a better choice. Now, opportunities
abound.
27
It is a fact that, 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, and 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 embedded organisational
knowledge and learning.
Employee retention matters, as, organisational issues such as training time and
investment, costly candidate search etc., are involved. Hence, failing to retain a key
employee is a costly proposition for any organisation. Various estimates suggest that
losing a middle manager in most organisations, translates to a loss of up to five times his
salary. This might be worse for BPO companies where fresh talent is intensively trained
and inducted and then further groomed to the successive stages. In this scenario, the loss
of a middle manager can often prove dear. In fact, some reports suggest that attrition
levels in IT companies are as high as 40 per cent. The only way out is to develop
appropriate retention strategies. Though BPO industry shoots ahead at 40 to 50 per cent a
year, it is now losing 35 to 40 per cent of its 350,000-odd employees as well.
In India there are few sectors where the attrition level is much larger compared to other
sectors. For example: IT sector and BPO. Where as there are organizations like Air India,
HAL, DRDO, BARC where the attrition is nearly 5% or less than that Employee
Retention Strategies helps organizations provide effective employee communication to
improve commitment and enhance workforce support for key corporate initiatives.
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“Employee retention is a process in which the employees are encouraged to remain in
the organization for the maximum period of time.”
Employee Retention involves taking measures to encourage competent employee to
remain in the organization for the maximum period of time. Corporate are facing a lot
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 a talented person. There are many organizations which are
looking for such employees.
If a person is not satisfied by the job he is doing, he may switch over to some other
more suitable job. In today’s environment it becomes very important for organizations
to retain their employees. The reason may be personal or professional. These reasons
should be understood by the employer and should be taken care of. The organizations
are becoming aware of these reasons and adopting many strategies for employee
retention.
There are various HR issues the a corporate deals:
1. EMPLOYEE TURNOVER
2. ATTRITION
These basic needs other than routine and future HR tasks are to be taken care of on
Priority before it becomes late.
WHY RETENTION?
Key employee retention is critical to the long term health and success of your business.
Managers readily agree that retaining your best employees ensures customer satisfaction,
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product sales, satisfied co-workers and reporting staff, effective succession planning and
deeply imbedded organizational knowledge and learning employee retention matters.
Organizational issues such as training time and investment; lost knowledge; mourning,
insecure co-workers and a costly candidate search aside, failing to retain a key employee
is costly. Various estimates suggest that losing a middle manager costs an organization up
to 100 percent of his salary. The loss of a senior executive is even more costly.
Employee retention is one of the primary measures of the health of the organization.
Losing critical staff members means other people in the departments are looking as well.
Exit interviews with departing employees provide valuable information that can used to
retain remaining staff.
WHY PEOPLE LEAVE THEIR JOB?
With retention being such a high priority, why are people leaving organizations? Some
literature suggests that people leave their jobs for a wide variety of reasons, including:
1. Unmet expectations
2. Inappropriate fit for the role
3. Lack of fit with company culture
4. Lack of sufficient opportunities for growth and advancement
5. Inadequate recognition and appreciation
6. Problems with a manager or supervisor
7. Dissatisfaction with compensation
8. Stress
9. Lack of work/life balance
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10. Lack of confidence in the company and/or leadership
RETENTION INVOLVES FIVE MAJOR THINGS:
O Compensation
O Environment
O Growth
O Relationship
O Support
COMPENSATION
Compensation constitutes the largest part of the employee retention process. The
employees always have high expectations regarding their compensation packages.
Compensation packages vary from industry to industry. So an attractive compensation
package plays a critical role in retaining the employees. Compensation includes salary
and wages, bonuses, benefits, prerequisites, stock options, bonuses, vacations, etc. While
setting up the packages, the following components should be kept in mind:
Salary and monthly wage: It is the biggest component of the compensation package. It is
also the most common factor of comparison among employees.
IT INCLUDES:
Basic wage
House rent allowance
Dearness allowance
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CITY COMPENSATORY ALLOWANCE
Salary and wages represent the level of skill and experience an individual has. Time to
time increase in the salaries and wages of employees should be done. And this increase
should be based on the employee’s performance and his contribution to the organization.
Bonus: Bonuses are usually given to the employees at the end of the year or on a festival.
Economic benefits: It includes paid holidays, leave travel concession, etc. Long-term
incentives: Long term incentives include stock options or stock grants. These incentives
help retain employees in the organization's startup stage. Health insurance: Health
insurance is a great benefit to the employees. It saves employees money as well as gives
them a peace of mind that they have somebody to take care of them in bad times. It also
shows the employee that the organization cares about the employee and its family. After
retirement: It includes payments that an Employee gets after he retires like EPF
(Employee Provident Fund) etc. Miscellaneous compensation: It may include employee
assistance programs (like psychological counseling, legal assistance etc), discounts on
company products, use of a company cars, etc.
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RETENTIONS STRATEGIES ADOPTED BY TECH MAHINDRA
Strategy adapted by company for retention of employees
1) Right Hiring
2) Training employee properly
3) Rewarding - For career Progression and Development
4) Performance Management
5) Regulating Employee cycle
Annual rate of employee leaving is 9%- 10% yearly.
SKILLS ANALYSED BY COMPANY
TECHNICAL SKILLS BEHAVIOURAL SKILLS
1) Communication skills
2) Attitude
3) Accommodation
4) Flexibility towards work
5) Willingness for 24/7 dedication.
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EMPLOYERS & THEIR KEY DRIVERS TO ATTRACT AND RETAIN TALENT
o Early responsibilities in career
o Flexible and transparent organizational culture
o Global opportunities through a variety of exposure and diverse experiences
o Performance Recognition
o Strong global brand
o Value-based environment
o Pioneer in many people practices
o Learning and growth opportunities
o Competitive rewards
o Opportunity to grow, learn and implement
o Strong social security and employee welfare performance- oriented culture
o Strong values of trust, caring fairness, and respect within the organization
o Freedom to operate at work
o Early responsibility in career
o Training and learning opportunities
o Visible, transparent and accessible leaders
o Competitive rewards
o Innovative HR programs and practices
o Organization philosophy and culture
o Job stability
o Company brand
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o Open , transparent, and caring organization
o Management according to the managing with respect to guiding principles
o Training ad development programs
o High degree of autonomy
o Value compatibility
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
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Trust
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IMPORTANCE OF RETAINING EMPLOYEES
THE CHALLENGE OF KEEPING EMPLOYEES
Its changing face has stumped managers and business owners alike. How do you manage
this challenge? How do you build a workplace that employees want to remain with …
and outsiders want to be hired into?
Successful managers and business owners ask themselves these and other questions
because—simply put—employee retention matters:
➤ High turnover often leaves customers and employees in the lurch; departing
employees take a great deal of knowledge with them. This lack of continuity
makes it hard to meet your organization’s goals and serve customers well.
➤ Replacing employees costs money. The cost of replacing an employee is
estimated as up to twice the individual’s annual salary (or higher for some
positions, such as middle management), and this doesn’t even include the cost of
lost knowledge.
➤ Recruiting employees consumes a great deal of time and effort, much of it futile.
You’re not the only one out there vying for qualified employees, and job
searchers make decisions based on more than the sum of salary and benefits.
➤ Bringing employees up to speed takes even more time. And when you’re short-
staffed, you often need to put in extra time to get the work done.
The Three Rs. of Employee Retention
To keep employees and keep satisfaction high, you need to implement each of the three
Rs. of employee retention: respect, recognition, and rewards.
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Respect is esteem, special regard, or particular consideration given to people. As the
pyramid shows, respect is the foundation of keeping your employees. Recognition and
rewards will have little effect if you don’t respect employees.
Recognition is defined as “special notice or attention” and “the act of perceiving
clearly.” Many problems with retention and morale occur because management is not
paying attention to people’s needs and reactions.
Rewards are the extra perks you offer beyond the basics of respect and recognition that
make it worth people’s while to work hard, to care, to go beyond the call of duty. While
rewards represent the smallest portion of the retention equation, they are still an
important one.
You determine the precise methods you choose to implement the three Rs, but in general,
respect should be the largest component of your efforts. Without it, recognition and
rewards seem hollow and have little effect—or they have negative effects. The magic
truly is in the mix of the three.
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REWARDS & RECOGNITION AT TECHM
When you implement the “three Rs” approach, you will reduce turnover and enjoy the
following:
➣ Increased productivity
➣ Reduced absenteeism
➣ A more pleasant work environment (for both employees and you!)
➣ Improved profits
Furthermore, an employer who implements the three Rs will create a hard- to leave
workplace, one known as having more to offer employees than other employers. You
become a hard-to-leave workplace—one with a waiting list of applicants for any position
that becomes available—purposefully, one day at a time.
A steadfast philosophy that sets Employee Retention Strategies apart:
• Uses only research-based, theory-supported approaches to improving employee
engagement. Avoided are gimmicks such as employee of the month, suggestion
boxes, prizes or other “carrots.” While commonly used, these short-term fixes fail
to produce genuine employee loyalty.
• Employs an easy-to-understand systems approach to ensure the root causes of
turnover are addressed and the potential for lasting change unleashed.
• Customizes all activities to your organization’s unique history, current practices
and strategic objectives. Also considered are challenges unique to your industry
sector, competitive marketplace issues and talent shortages.
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• Involves those responsible for implementing change in actually creating the
change, ensuring input and improved shared understanding and support of all
initiatives.
• Integrates hands-on, action-oriented approaches that enable organizations to move
forward quickly and effectively
• Recognizes the research-proven role of no-cost strategies in developing the “glue”
that builds employee loyalty and commitment.
• Brings to your organization leading-edge organization-development best practices
to effectively and quickly build a retention-rich culture.
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KEI’S EMPLOYEE RETENTION MANAGEMENT WHEEL ADOPTED BY BPO COMPANIES AS LIKE AS TECHM
The first step to improving your employee retention is to understand why employees stay
with their current employer. Many "experts" dwell on the reasons employees leave,
which is not as important or revealing as the reasons they stay. Companies have tried
many different programs and perks to hold onto good employees. However, studies show
that these efforts are not enough to retain good employees when the support that is
needed to achieve job success is not adequate.
Don't Waste Your Money on Things That Don't Make a Difference...
Among the countless inducements offered, only those identified in the center of KEi's
Employee Retention Wheel™ are truly what give employees a consistent reason for
saying "no thank you" when tempted with a "sweeter offer." After years of study and
experience, KEi has determined, and presented in the Retention Wheel, what factors do
have the greatest impact on keeping employees. KEi has used this information to give
employers the tools to meet the core needs that keep employees successful at their jobs,
thus reducing the high costs associated with unwanted employee turnover.
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USING THE WHEEL TO IMPROVE EMPLOYEE RETENTION
KEi's Employee Retention Strategy is based upon two primary beliefs:
(1) It is difficult for employers to retain good employees if they don't have a process
to hire the right people in the first place.
(2) Retention processes must directly support the reasons that successful, satisfied
employees stay.
KEi's concentration on the center of the Employee Retention Wheel provides employers
with Internet-based tools that give employees systematic, ongoing support to be
successful in their work and satisfied with their employment.
The Center of KEi's Employee Retention Wheel: EIGHT FACTORS
Definition of successful: my job is helping me to grow personally, professionally and
financially.
Definition of satisfied: my employer is providing what I need to perform my job
successfully.
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These eight central processes of the Employee Retention Wheel are the factors that are
most critical to an employee's job performance success.
ATTITUDE FOR EMPLOYING
A process to clearly define the way supervisors are expected to interact with
employees; a process to give employees a way to express what is most important
to achieve job success; and a process to give employers a way to demonstrate
"Employing Values" through employment policies.
This "Employer Mission Statement" is about how and who you hire, how you
treat them, and the organization's values as an employer. It is about making sure
that the Values for Employing™ are communicated to your employees and
consistently implemented throughout your organization. It is about the total
employment package that goes beyond salary and traditional benefits.
FINDING CANDIDATES
A process that gives employers a comprehensive way to communicate to job
seekers what it takes to achieve short-term and long-term job success, and to
attract the candidates who fit this criteria.
SORTING APPLICANTS
A process that gives employers a way to confirm whether the attitudes and
behaviors of job seekers are a match for their work environment.
CHOOSING EMPLOYEES
A process that gives employers a way to define the specific interview questions
that prove job seeker abilities to successfully perform the target skills; and a
process that gives employers a way to verify the accuracy of resume/application
data and interview responses.
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STARTING EMPLOYEES
A process that provides a way for new employees (before performing the job) to
understand "why the employers business exists;" "what makes the business
organization successful;" "why the employee's job exists;" and "what it will take
for the employee to achieve job success."
INFORMING EMPLOYEES
A process that gives employers a way to provide essential information (from
five critical information sources) that is needed by employees to make daily
work decisions.
IMPROVING EMPLOYEES
A process that gives supervisors and employees a way to work together to build
personalized plans for improving each employee's priority job skills; and a
process that gives the employer a way to "deliver skills-improving training
curriculum" and to "measure the learning effectiveness" from the training
experiences.
REWARDING EMPLOYEES
A process that gives employers a way to define and communicate exactly how
individual employee salaries are determined; and a process that gives employers
a way to provide employees with extra incentive income that is earned through
the achievement of cash generating business goals.
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10 WAYS TO RETAIN YOUR EMPLOYEE
Retaining key personnel is critical to long term success of an organization. A Retention
Strategy has become essential if your organization is to be productive over time and can
become an important part of your hiring strategy by attracting the best candidates who
know of your track record for caring for employees. In fact, some companies do not have
to recruit because they receive so many qualified unsolicited submissions due to their
history of excellence in employee retention.
How do you get your employees to "fall in Love" with your organization? This is a
great question. Some recently conducted research lists these
TOP TEN STRATEGIES:
1. Treat your employees like you treat your most valuable clients. It is cheaper to
keep your good employees than it is to hire and train new ones. Your top 20-25%
should be courted as you would court and then service your top customers.
2. Get your employees to "Fall in Love" with your organization. Communicate
your vision in a compelling way. Show everyone the role they have to contribute
to this vision. Create opportunities for people to connect with each other for
support and to improve communication in work teams.
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Capture the Hearts of your workforce with: Compelling vision / Balance /
Celebration-Fun
Open Communication: Internal listening is a priority, multiple lines of
communication. This is essential for managing change in a positive way
with less sabotage, anger, resistance, and fear.
3. Strong retention strategies become strong recruiting advantages.
4. Retention is much more effective when you put the right person into the right
job. Know the job! Know the employee and their motivations.
Half of the Fortune 500 companies are now using assessments to more fully
understand each job and the soft skills that are required for top production within
their specific company culture. These benchmarked skills are then compared
against qualified applicants to help determine who will be successful in the
position and fit well within their company's culture. These assessments are also
used as a powerful professional development tool to enhance the training of
continuous life-long learning. Advanced Fibre Communication is beginning to use
this assessment process in hiring.
5. Money is important but it is not the only reason people stay with an
organization.
If your compensation plan is in the top 20-30% of your industry, then money will
often not be the reason why people leave.
6. Employee committees to help develop retention strategies is a very effective
strategy.
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Get their input! Ask, what do people like about working here? What would you
like changed to make your company a better place to work? Some companies,
such as Advance Fibre Communication (AFC), have recognized that the special
engineers and technical experts that are the cornerstones of their business, require
special attention. Victoria Perrault, VP of Administrative Services for AFC, says
that her company has identified the top 25% of their staff and caters to these
special people by meeting their financial requirements and looking for the best
package of benefits that these people will find most positive as incentives to stay.
They even have employee committees that work as "focus groups" to determine
why people stay at AFC and what they might want to see changed to make AFC
an even better place to work.
7. Leadership must be deeply invested in retention.
Management must be skillful communicating company policies in a way that
creates "buy-in" from their staff and be open to employee input. Help create
"ownership" in your employees. The companies with the best retention
percentages are the same companies that are actively committed to retention.
They know that is costs less to keep good people than to continuously have to
replace unsatisfied employees and managers.
8. Recognition, in various forms, is a powerful retention strategy.
It does not have to cost a lot. US Dept. of Labor - 46% of people leave their jobs
because they feel unappreciated.
9. Remember, the "Fun Factor" is very important to many employees.
Greg Peters, Past President and CEO of Mahi Networks in Petaluma, is one of
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many executives who reported that retention is often related to interpersonal
connections and amount of FUN in work teams. The FUN Factor is part of the
generation of workers that use activities as stress management in highly charged
production environments where long hours are required. Greg has encouraged
Ping-Pong tournaments and basketball leagues for interpersonal interaction, fun,
and stress management. Though not everyone can participate in physical
activities, this sets the tone in a culture based on competition, health/well-being,
and interactions that are inclusive beyond work.
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EMPLOYEE MORALE PREVENT COMPANIES FROM ACHIEVING RETENTION SUCCESS
Despite years of research that point to far different solutions, many companies use the
wrong tactics when trying to improve employee morale, satisfaction and retention. These
myths prevail, in part, because businesses have used these methods, however wrong, for a
very long time and have become used to trying the same ideas.
MYTH #1: PEOPLE MOST OFTEN LEAVE A COMPANY FOR MORE PAY.
Exit interviews, conducted to learn why people leave an organization, contain some of
America’s greatest fiction. People frequently say they’re leaving for more money because
it’s the easiest reason to give. More often the causes leading to departure are related to
issues that were unsatisfying in the job or the company. Typical issues that cause
dissatisfaction are company policies and procedures, quality of supervision, working
conditions, relationship with the immediate supervisor and salary.
Yes, pay does matter. While research shows most people don’t actually leave a job for
more money, there are two important facts: Very-low-income workers will leave for
more money because it’s a survival issue. For the rest of workers, the issue of money
actually is about fairness. People become dissatisfied with pay when they feel it is unfair
within the company, within the industry or when pay doesn’t seem to match the amount
or type of work required. To increase employee satisfaction and retention, companies
make more gains by working to improve whether people feel a sense of achievement,
recognition, competence and growth, whether there are choices about how work gets
done and whether employees feel respected by management..
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MYTH #2: INCENTIVE PROGRAMS PRODUCE LONG-TERM PROFITS AND
IMPROVE PRODUCTIVITY AND MORALE.
So, who doesn’t like free stuff? However, incentives such as gifts and cash bonuses for
meeting speed and volume goals don’t affect employee commitment. They’re really a
throwback to outdated management beliefs that workers must be coerced in order to work
hard. All the extras don’t add up to the real glue that creates employee commitment: the
chance to learn and grow, meaningful work, good supervisors and respect and
appreciation for a job well done. Incentives have been over-used particularly in the past
decade, as management books touted the importance of improving recognition of
excellent work. Yet, studies show that carrot-and-stick motivation actually does not pay
off in long-term company profitability or employee satisfaction or retention. To the
contrary, incentives can harm quality when employees aim for speed or other goals rather
than quality.
MYTH # 3: PEOPLE DON’T WANT MORE RESPONSIBILITY.
They don’t want more work if they’re already overloaded due to lean staffing; but people
indeed want the opportunity to grow and develop their skills, advance their careers and
have the opportunity for greater variety. Keep in mind what the research confirms: People
do want to try new things, to feel skillful and to experience the personal satisfaction of
higher levels of achievement.
People don’t need a job promotion in order to gain more responsibility. The same job can
be broadened to include more variety, more contact with different parts of the
organization and greater control over decisions on accomplishing work tasks.
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MYTH #4: LOYALTY IS DEAD.
Not at all, though it is ailing in many organizations. People are seeking greater work-life
balance than in the past, and employers have made great strides in providing more
flexible hours and dress codes. Still, people seek to make a contribution, and
organizations that provide healthy doses of the main satisfiers enjoy significantly lower
turnover and higher morale. Profits are higher, too, according to recent research studies.
Things have changed, indeed. Today’s workers will, in fact, change careers and jobs
much more often. When the economy is good, people have become much more at ease in
changing companies, are more likely to acquire new skills and move to companies that
offer greater chance to use more of their knowledge and more willing to take the risks of
starting anew at another organization.
What has emerged in current management studies are that the same qualities that hold
employees are the ones that best serve the customers: Employees who can make quick
decisions on behalf of the customer and the company; employees who have a broader
scope of responsibility that allows them some freedom and leverage to solve customer
problems; learning opportunities that give employees the skillfulness to address customer
issues; and supportive management and supervisors who use any mistakes that occur as
teaching opportunities.
MYTH #5: IMPROVING EMPLOYEE SATISFACTION IS EXPENSIVE.
Research tells us the true satisfiers can’t even be bought: career growth, meaningful
work, respect and appreciation and being able to influence how work gets done. In these
leaner times employers have the same opportunity to gain true loyalty despite lowered
budgets.
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The trinkets and prizes given in recognition and rewards programs aren’t necessary
ingredients for developing an engaged workforce. The “glue” that holds people is made
of much different stuff: Management that listens and responds to employees’ ideas about
improving service, supervisors who support people’s growth and initiative, training in
how to do the job successfully, good relationships with coworkers and genuine
appreciation for a job done well. There are no costs incurred to build or enhance these
motivators.
MYTH #6: EMPLOYEE SATISFACTION IS “FLUFF.”
Does having engaged workers make a difference in the bottom line? Studies now show
that lower turnover and greater levels of employee satisfaction have a definite positive
impact on customer satisfaction and profitability, which are the key factors in company
growth and sustainability. Consider these facts:
• A strong link was found in a study by PricewaterhouseCoopers between employee
retention and the quality of service as rated by companies’ customers.
• According to the American Society of Training & Development, organizations
that invested the most in training had higher gross margins and income per
employee.
• The cost of replacing an employee who leaves has been estimated by various
studies to be between 70 and 200 percent of that worker’s annual salary.
• The Council on Competitiveness found that a 10-percent increase in education has
a more positive impact on productivity than a 10-percent increase in work hours.
Investing in people and using the most effective management practices increases profits.
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MYTH #7: SUPERVISORS ARE THE PROBLEM.
Many senior leaders express dismay about the quality and actions of their middle
managers and front-line supervisors. The “blame game” is old, yet the solutions are
strikingly similar to those required to build an engaged workforce.
In most organizations today, supervisors have more people reporting to them than in the
past, more demanding customers than ever and greater amounts of change – all occurring
at the same time. Yet, the amount of training provided to managers and supervisors in
many organizations is minimal. More importantly, the amount of time that senior
managers spend in dialogue with middle and line managers also is minimal.
Middle managers and supervisors can appear resistant to improvement efforts. However,
the true failure exists in our understanding of their world, the challenges they face and the
support they need in order to be successful. Successful organizations seek to build
teamwork between senior leaders and middle managers and line supervisors.
MYTH # 8: MY COMPANY/INDUSTRY/PEOPLE ARE DIFFERENT!
Yes, every company is unique, and every industry has its own set of unusual challenges.
However, a very costly mistake is made when we believe information from other sectors
doesn’t apply to us or our organization. Retention research studies cross all industries, all
types of work settings and in varied economic conditions. Still, the same results come up
time and again. We build employee loyalty – and, indirectly, customer loyalty – through
providing people with growth and learning opportunities, minimizing red tape, allowing
people to think and make good choices, supporting middle managers and front-line
supervisors and appreciating the efforts that people give to help our customers. It’s
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downright dangerous to ignore these findings – risky to the bottom line and the
organization’s future.
BARRIERS TO SUCCESS
Lack of support from management team.
Inability to provide hard numbers.
Company culture does not support change.
Back lash from single workers.
Failure of other programs due to low utilization.
Managers do not view work/life initiatives as business tools that impact employee
retention.
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FACTORS AFFECTING EMPLOYEE RETENTION AT
TECHM
Most managers understand the importance of employee retention and its impact on the
overall health and vitality of an organization. The importance of retaining top
organizational talent will only increase over the coming years as the massive cohort of
baby boomers begin to reach retirement age making it easy for younger employees to find
work.
In a previous article we identified some useful tips to help improve employee retention in
your organization. Given the importance of employee retention, we have compiled
another list of 10 important factors that can affect employee retention in your
organization.
• Shorten the feedback loop
Do not wait for an annual performance evaluation to come due to give feedback on how
an employee is performing. Most team members enjoy frequent feedback about how they
are performing. Shortening the feedback loop will help to keep performance levels high
and will reinforce positive behavior. Feedback does not necessarily need to be scheduled
or highly structured; simply stopping by a team member's desk and letting them know
they are doing a good job on a current project can do wonders for morale and help to
increase retention.
• Offer a competitive compensation package
Any team member wants to feel that he or she is being paid appropriately and fairly for
the work he or she does. Be sure to research what other companies and organizations are
offering in terms of salary and benefits. It is also important to research what the regional
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and national compensation averages are for that particular position. You can be sure that
if your compensation package is not competitive, team members will find this out and
look for employers who are willing to offer more competitive compensation packages.
• Balance work and personal life
Family is incredibly important to team members. When work begins to put a significant
strain on one's family no amount of money will keep an employee around. Stress the
importance of balancing work and one's personal life. Small gestures such as allowing a
team member to take an extended lunch once a week to watch his son's baseball game
will likely be repaid with loyalty and extended employment with an organization.
• Beware of burnout
Staff adequately to reduce the amount of unwanted overtime a team member must work.
Some employees enjoy the extra money that accompanies overtime hours, while others
would rather spend their time with their families or doing other activities they enjoy.
Burnout can be a leading cause of turnover. Recognize the warning signs and give
employees a break when they need it.
• 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.
• The ability to provide input and be taken seriously
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Everybody has opinions and ideas, some are better than others. However every team
member wants to feel that their input is welcome and will be taken seriously without
ridicule or condescension. Some of the greatest ideas can come from the most unlikely of
places and people. Creating a culture where input is welcome from all level of the
organizational chart will help your organization grow and encourage employee retention.
• Management must take the time to get to know team members
It's not a big surprise that one of the greatest complaints that employees express in exit
interviews is a feeling that management didn't know they existed. Nobody wants to feel
like just another spoke in a big wheel. Managers are very busy - everybody is busy, but it
is crucial that managers and supervisors take the time get to know the team members who
work under them. Learn and remember a team member's name, what skills and talents
they bring to the table, and what their business interests are. The time spent by
management getting to know team members is well invested and can eliminate the
headaches caused by having to continually hire and re-train new employees.
• Provide the tools and training an employee needs to succeed
Nothing can be more frustrating to an employee than a lack of training or the proper tools
to successfully complete his or her duties. You wouldn't try to build a house without a
hammer, so why should an office job be any different? Providing a team member with the
tools and training she needs to be successful shows a commitment and investment in that
employee and will encourage the team member to stay with the organization.
• Make use of a team member's talents, skills, and abilities
All team members have knowledge, skills, and abilities that aren't directly related to their
job description, but are still useful to an organization. Utilizing a team member's talents
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in areas other than their current position will indicate to an employee that management
appreciates and recognizes all that an employee has to offer to the organization. This can
also provide work variety and helps to break up the everyday grind of work.
• Never threaten a team member's job or income
While threatening an employee with termination or demotion might seem like a surefire
way to get the results needed from him or her, doing so will likely cause the employee to
leave the organization. Put yourself in the employee's shoes, what is the first thing you
would do if your job was threatened? Odds are you would probably update your resume
and start checking for open job postings expecting the worst. If a team member's
performance is not what you had hoped it would be, work with that team member on
ways to improve his performance, saving termination only as a last resort.
REASON FOR EMPLOYEE TO COME TO TECHM
Pay, Location, Benefits, Advancement Possibilities, Job Security, Nature Of
Work, Personal/Family Time.
REASONS FOR EMPLOYEE TO STAY WITH TECHM
Confidence Factor-they believe in potential success/leadership strategies
Emotional Factor- (Huge) contribution, recognition, appreciation
Trust Factor- 2 ways- promises/commitments kept (strong link to loyalty)
Fit Factor- Values/ethics are a good fit
Listening Factor- Are they heard and valued?
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SOLUTION FOR THE PROBLEMS
FINDING THE CAUSE OF ATTRITION
Have a survey among employees to find the reasons for attrition. If possible, have exit
interviews to know the reasons for resignations. If a key employee resigns, it should be
taken up on a priority basis and the senior management should meet the employee to
discuss his reasons for leaving and evaluate whether his issues bear merit and whether
they can be resolved. Steps can be taken to avoid similar reasons from occurring in the
case of others, in similar positions.
What can be done?
Though, it is impossible to scrap problems totally, there are certain ways by which BPO
managements can tackle attrition. Since the every organisation is unique, these
companies need to develop innovative ways to tackle their problems. Human Resources
department of companies must address these issues, and along with the management need
to evolve strategies to retain employees at all levels.
At the time of Recruitment
Select the right people through competency screening.
Use psychometric tests to get people who can work at night and handle the
monotony.
Offer an attractive, competitive, benefits package.
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Make clear of performance enhanced incentives and other benefits. Keep these
promises, later.
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AT THE OFFICE
An employee’s work must be communicated to him clearly and thoroughly. The
details of the job, its importance, the way it should be done, maximum time that
can be allotted to complete it etc., must be made clear. If there are changes to any
of these, let the employee know at the earliest
Give the employees necessary tools, time and training. The employee must have
the tools, time and training necessary to do their job well - or they will move to an
employer who provides them.
Have a person to talk to each employee at regular intervals. Listen and solve
employee complaints and problems, as much as possible. Fairness and impartial
treatment by seniors is important. Help employees manage stress, both at work
and if possible, off work too. Give them special concessions, when in need. Treat
the employees well & provide dignity of job.
The quality of the supervision an employee receives is critical to employee
retention. Frequent employee complaints arise on this issue.
Provide the employees a stress free work environment. People want to enjoy their
work. Make work and work place cheerful and fun-filled as possible.
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NIGHT SHIFTS
1. Have doctors to advise them about health problems and the ways and means to
deal with them. Provide dietary advice: - Dos and donts. Help them to maintain
their health.
2. Organize programmes where people from other professions, who have night shifts
talk to BPO employees about their experiences. Other organisations like Army,
Railways, Hospitals and various government services etc., also have night shifts.
3. Organize training, counselling and development programmes for employees. Tell
them that their work is important. Encourage the best performers to share their
experiences with others and guide others. The emphasis is to create the desire to
learn, enjoy and be passionate about the work they do.
4. If needed, provide special lights in the office/workplace to ensure that their bodies
get sufficient vitamin D.
One distinct disadvantage of night shifts is the sense of disorientation with friends
and family members. Concentrate on this problem and develop innovative solutions
and ways to deal with it. Additional holidays for work on national holidays and
festivals, holidays for family functions etc., can go a Long way.
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EMPLOYEE RECOGNITION INCREASES RETENTION
It seems that now more than ever employee recognition is limited at best in many
organizations. Unfortunately many managers don't understand the importance of
recognizing a team member's hard work and a job well done. Many might even ask why
they should recognize their employees when they are "just doing their job." The truth is
that recognizing employees for their hard work is one of the least expensive and easiest
ways to improve the level of employee retention in your organization. The return on
investment for a manager's time and limited expenses can be incredible. Recognizing an
employee's performance reinforces positive behavior and encourages additional positive
behavior. If a team member feels that he or she is appreciated they will be much more
likely to repeat their behaviors in the future and even put out more effort than before.
When a business leader understands the power of recognizing his or her employees the
culture of an organization reacts to this recognition and moves in a positive direction
helping to retain more employees. Employee recognition can be as simple or as
extravagant as one desire. The following is a short list of simple ways to recognize team
members for a job well done and improve retention in your organization.
• A simple "thank you" or "nice job" given in regular frequency can significantly
boost team morale. Often times a team member will greatly appreciate the time
you spent to find him at his desk and deliver the message in person.
• Send a thank you card or e-card. Also photocopy the thank you and document the
reason for the recognition in the employee's file. Let the employee know you did
this - it will let her know that her hard work will not be forgotten.
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• Movie tickets, gift certificates, or an engraved gift are excellent rewards for an
employee who has excelled or put in the extra effort to make a project happen.
• Recognize the team member's contribution in front of members of management.
This can reduce the tendency for employees to feel that their supervisors take all
the credit for their hard work.
• Recognize loyalty and exceeding expectations. Mention the team member's hire
anniversary, large contract won, or surpassing of a sales goal in the company
newsletter or at a staff meeting.
• Know how to recognize your staff. Not all staff members want to be singled out at
a gathering of hundreds of fellow team members, while for others it would make
their week. The approach to recognizing team members can vary greatly by
generational cohort. You might seriously embarrass a baby boomer by having
them stand up in front a
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RETENTION MANAGEMENT STRATEGIES HELP TO DRIVE REVENUE GROWTH
Employee satisfaction is essential to any effective employee retention strategy - any good
HR manager knows that. However few managers think of the impact that employee
satisfaction has on their customers and ultimately company profits. One can assume that
happier, more productive employees will make more sales, treat customers better, and
ultimately make more money for the company, but few companies have analyzed this
assumption to the extent that Sears, Roebuck and Company has. Sears has put this
common assumption to the numbers test and the results are intriguing to say the very
least.
1992 was the worst year on record for Sears, losing almost 4 billion dollars on over 52
billion dollars in retail sales. The early and mid 1990s were truly trying times for the
retail giant and tested the will and resolve of managers and employees alike. During this
time the company was in near shambles, morale was low, revenues were suffering, and
the bottom line was hemorrhaging red ink. This was in stark contrast to nearly a century
of stellar results that Sears had comfortably enjoyed. For Sears, something needed to be
done, and fast!
Sears began their turnaround by identifying three key objectives: Creating a compelling
place to work, a compelling place to shop, and lastly creating a compelling place to
invest. One of the tools used to establish these objectives was the employee-customer-
profit chain. The employee-customer-profit chain is essentially a flow chart that diagrams
revenue creation starting with employee attitudes and satisfaction, followed by its effect
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on customer satisfaction, and ultimately the effect on revenue and bottom line profit
generation.
One thing Sears realized it needed to do was exert a greater effort focusing on the
customer. This is often times easier said than done for many organizations. However
Sears took an innovative approach to increasing customer focus. Based on the employee-
customer-profit chain, it realized that it could not better focus on the customer without
first focusing on its employees.
For Sears 70% of its workforce was part-time status and turnover among its part-time
workforce had become alarmingly high. Sears suspected that low morale and poor
employee attitudes towards the company were to blame. Sears began a rigorous process
of measuring employee attitudes and satisfaction via a 70 question employee survey. The
results of this survey were then juxtaposed to customer satisfaction surveys and
ultimately compared to revenue and profit trends for the company. The correlations
drawn from the data were greater than Sears could have ever imagined.
Undoubtedly Sears expected to see some positive correlation between employee and
customer satisfaction and ultimately revenue and profit generation; however they were
amazed to see just how great an impact employee satisfaction levels had on the bottom
line. The data revealed that for each five point improvement on the employee attitude
scale, there was a subsequent 1.3% improvement in customer satisfaction, and a 0.5%
increase in revenue growth.
A 0.5% increase in revenue might sound miniscule, however when it is based on
revenues of over 50 billion dollars it adds up quickly and significantly. For Sears this
would equate to a 250 million dollar increase in revenues a year! This revenue increase
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does not require investments into advertising, new facilities, or improved operations, only
an investment into the satisfaction and happiness of employees.
There are also cost savings that can be attributed to improved levels of employee
satisfaction. It should come as no surprise that happy employees stay in their jobs longer
than unhappy employees. By focusing on increasing employee satisfaction Sears was able
to concurrently increase revenues and reduce the costs associated with employee
turnover. Sears was also able to determine that employees with greater levels of
satisfaction and a favorable attitude towards the company were more likely to speak
positively about the company and recommend shopping there to friends and family
members.
By increasing employee satisfaction Sears was able to generate free word of mouth
advertising spread by its employees, thus in a way reducing the reliance on paid
advertising to generate revenue. Sears realized the importance of its employees and their
levels of satisfaction and made it a corporate goal to increase levels of employee
satisfaction throughout the company.
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STUDY SUGGESTS EMPLOYEES LEAVE BOSSES, NOT JOBS
Careful selection of employees and managers can have a huge impact on your employee
retention efforts and employee turnover costs at your organization. It has been said more
than once, and for good reason, that employees leave their bosses - not their jobs. A
Florida State University study scheduled for full release in the Fall 2007 issue of
Leadership Quarterly confirms this. The study shows that 40% of employees work for
bad bosses based on survey results. The reasons that employers score poorly are varied
and many:
• 39% of workers said their supervisor failed to keep promises.
• 37% indicated their supervisor failed to give credit when due.
• 31% said their supervisor gave them the "silent treatment" during the past year.
• 27% report their supervisor made negative comments about them to other
employees or managers.
• 24% indicated their boss invaded their privacy.
• 23% said their supervisor blamed other to cover up personal mistakes or minimize
embarrassment.
So what does this all boil down to? The effects of having bad bosses in your organization
can be devastating. High turnover, poor employee morale, employee theft, diminished
customer service, substandard employee performance, lower production, and an
organizational culture of fear and mistrust can all be blamed in part on poor bosses and
managers. The costs of having poor managers and bosses can be incredible. Consider the
cost of employee turnover, which is different for all industries and positions, but has been
roughly estimated at $15,000 - $17,000 per employee in low to moderately skilled
positions.
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EMPLOYEE RETENTION STRATEGIES FOR REDUCING EMPLOYEE TURNOVER COSTS
At The Rainmaker Group we are committed to helping your organization Maximize
Possibility by identifying and retaining top performers to achieve a high retention and
high performance workforce. We understand that time is money to your organization.
Every minute of every day that your employee retention problems persist your
organization is losing valuable time, energy, and resources. With the use of the powerful
tools at our disposal, our employee retention experts will get to know your team and
organizational culture better than you ever could have imagined. By doing so we can get
down to the real causes of employee turnover in your organization and develop an
employee retention program that is right for your team. Our employee retention
programs deliver results - we guarantee it! Our clients always see a sizable return on
investment in the form of improved profitability, reduced employee turnover, and
enhanced employee morale. Stop unwanted employee turnover dead in its tracks and get
back to doing what you do best: growing and leading your organization.
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REAL HR PRACTICES - TECH MAHINDRA
To retain employees it is very important to give them a feeling of belongingness in the
company. For this they conduct many activities like:
1. There’s a weekly meeting of every dept where the employees are asked what their
expectations are from the company to make the atmosphere and climate joyful.
2. After every 15 days one day FUN TRIP is conducted (within 50-70 Kms) from
the company. Places like Essel world, Lonavla, Alibagh Beach, Matheran Hill
Station etc where the employee can have fun and relax from their regular work.
The destination of the fun trip is decided by the employee themselves. The
expense is held by the company.
3. Every Employee is given a Laptop, Mobile (Rs 500 card free every month) or
Landline Phone free.
4. “MY DAY”- Every week the employee can have 2 “my days”, i.e. for two days a
week they can have their own time away from office after 1.30 pm.
5. Annual Day – The annual day is on 24th dec. Every employee gets a gift voucher,
Lunch at some good hotel and a fun tour to Essel world or water Kingdom etc.
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6. Annually they also have interdepartmental matches like Cricket Matches,
Volleyball Matches etc to improve team building and feeling of belongingness.
7. Culture: On every Indian festival there’s a big celebration.
a. Ex: On Sank rant they have a “BHARTIYA JEVAN”. They fly colourful
kites and have competition between the employees.
b. Ex: On Diwali they enjoy sweets and crackers with traditional dresses.
8. Departmental Lunch: Everyday one dept have lunch together. Each and every
member of the that Dept eat and drink together. This helps in improving the team
spirit and the feeling of belongingness in the dept.
9. Employee of the week- AWARD:
a. Every week one worker is honoured based on the performance of the
worker. This improves their moral and encourages them to work hard for
the coming week.
b. Every month one employee is honoured as Employee of the Month
c. Annually one employee is honoured as Employee of the year.
Their names are declared on the Notice board and company magazine which
encourages others also to work better.
10. New employees joining the company are given a training of 8-10 days.
The training consists of induction and orientation program along with a 2 day trip.
This is a good ice breaking session and helps them to know their colleague. The lasts
two days training is conducted in the actual job site.
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11. Higher education: If any employee wishes for higher education the company
sends the employee to South Korea for training and encourages them to study
hard.
12. Car is provided to the entire manager and above. The petrol expense are taken
care by the company.
13. Annually every employee gets a 5 days paid leave.
14. The company provides the facility of all indoor games along with a Swimming
pool for the refreshment of the employee.
Ex. Table Tennis, Chess, Badminton, Snooker, etc.
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BPO SECTOR INDUSTRYBUSINESS PROCESS OUTSOURCING
Business process outsourcing (BPO) is a broad term referring to outsourcing in all
fields. A BPO differentiates itself by either putting in new technology or applying
existing technology in a new way to improve a process.
Business Process Outsourcing (BPO) is the delegation of one or more IT-intensive
business processes to an external provider that in turn owns, administers and manages the
selected process based on defined and measurable performance criteria. Business Process
Outsourcing (BPO) is one of the fastest growing segments of the Information Technology
Enabled Services (ITES) industry.
Few of the motivation factors as to why BPO is gaining ground are:
Factor Cost Advantage
Economy of Scale
Business Risk Mitigation
Superior Competency
Utilization Improvement
Generally outsourcing can be defined as - An organization entering into a contract with
another organization to operate and manage one or more of its business processes.
When there are so many benefits associated with BPO industry…. when there are so
many privileges for the BPO employees than what makes them to change the
73
company/industry?? Is it only MONEY that matters or anything else as well?? After
taking exit-interviews and analyzing the trend I am able to list out following reasons for a
BPO professional to change his/her job.
No growth opportunity/lack of promotion
For higher Salary
For Higher education
Misguidance by the company
Policies and procedures are not conducive
No personal life
Physical strains
Uneasy relationship with peers or managers
In an industry like BPO, the work can often be monotonous and opportunities for career
growth minimal. So when opportunities beckon, the high rate of attrition is not surprising.
However, there are some common reasons that especially cause people to leave. Surveys
have listed night shifts, money, inability to handle various types of stress, monotonous
work; company policies, lack of career growth, problems with those in senior positions
etc., as some of the most common reasons listed by BPO employees, as reasons for
quitting jobs.
74
OBJECTIVES OF THE STUDY
To analyze the retention management system adopted by Tech Mahindra.
To analyze about retention strategies at Tech Mahindra.
To analyze about organization and culture programme used in BPO/IT
companies.
To study about employee retention strategies and all the systematic effort used to
create and foster an environment that encourages current employees.
To know the reason of Tech Mahindra employees attrition and trends causing the
job churning, problems facing in retaining qualified people or achieving
workforce stability in a present implemented Employee Retention processes.
To know the extent of effectiveness of employee retention strategies adopted by
Tech Mahindra.
Exploring and developing the employee retention strategies to mitigate the effect
of factors causing high employee turnover
75
RESEARCH METHODOLOGY
RESEARCH DESIGN
A research design is purely and simply the framework or plan for a study that
guides the collection and analysis of data.
The research was taken in view of latest information and technology using in a
stock market or securities companies.
DATA SOURCES
Primary Data are those which are collected for the first time for a certain
investigation. These are original and essential raw data. No doubt the information
has been collected as per company's holistic development of investors used in
securities market controlling their risk. In the study, the primary data and
secondary data collection methods are used.
DATA SOURCES
Secondary data was obtained from journals, magazines, newspapers, books and
of course the Internet.
RESEARCH INSTRUMENT
For doing the survey research, structured questionnaire with both open-ended
and closed-ended questions was used.
76
PLACE OF STUDY
Tech Mahindra, Sector-58, Noida (Uttar Pradesh)
LIMITATIONS OF THE STUDY
Sample size is too small to reflect the opinion of the whole organization
Any organization should not reveal all the details of the Tech Mahindra with a
focus on investors’ behaviour in stock market.
There is a time bound limit, as no one can study exhaustively in a very less time
period of a number of days.
Lack of coordination and communication was experienced while collecting the
data for the present volatile market.
Respondents seemed to be over burdened with work so they didn’t give proper
attention.
People are hesitating in answering the question.
Employees were not interested in filling open- ended questions
77
GRAPHICAL DATA INTERPRETATIONS1 Reasons wise analysis at TECHM:Reasons Numbers Percentage
Personal Reasons(Relocation health Marriage) 14 23%
Higher Education 4 7%
Other Reasons 5 8%
Inadequate career growth/development opportunities 6 10%
Dissatisfaction with Payroll & Benefits. 16 27%
Problem with reporting manager 3 5%
Dissatisfied with Induction/ Training 3 5%
Dissatisfaction with working condition 3 5%
Lack of reward & Recognition opportunities 6 10%
Total 60
GRAPHICAL DATA INTERPRETATION
As per above graph, there are 27% are dissatisfied with payroll and benefits provided by
TECHM and 23% are dissatisfied due to personal reasons, while most of dissatisfied due
to working condition, induction and training, recognition opportunities while rest are of
growth of career, reporting to manager and other reasons are mentioned.
78
2 Analysis on areas of improvement at TECHM:
Improvement Areas Numbers Percentage
Improvement in services like transport & cafeteria 10 17%
Any other areas 5 7%
Improvement in communication channels with TL's
/Managers
10 17%
Improvement in HR policies/guidelines/practices 15 25%
Improvements in organizational policies and practices 10 17%
Improvements in resources /materials infrastructure 10 17%
Total 60
GRAPHICAL DATA INTERPRETATION
As per above graph, there are 25% known their HR policies, guidelines, practices and
17% assume that there are improvement in organizational policies and practices, 17% are
of assume that improvements in resources and material infrastructure.
79
3 Is the training adequate at TECHM?
Is the training adequate at TECHM?
Feedback No. Percentage
Yes 38 63.33%
No 22 36.67%
Total 60
GRAPHICAL DATA INTERPRETATION
As per above graph, there are 64% approx assume that the training adequate at TECHM
while rest are assume as NO.
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4 Is the induction adequate at TECHM?
Feedback No. Percentage
Yes 36 60%
No 24 40%
Total 60
GRAPHICAL DATA INTERPRETATION
As per above graph, there are 60% assumes that there should be induction adequate at
TECHM and rest are said NO.
81
5 Analysis on most and least liked practices at TECHM:
Best liked Practice
Practice No. PercentageMedical 11 18%Education Policy 6 10%Bi- Annual Appraisal 17 28%All Policies are good 12 20%Leave Policy 10 17%Marriage 4 7%
Total 60
GRAPHICAL DATA INTERPRETATION
As per above graph, there are 28% assume that the best bi-annual appraisal at TECHM
while 20% assume that all policies are good while 17% assume that the leave policy are
good and rest are above mentioned and liked by the employees of TECHM.
82
6 Referring or suggesting their friends / colleagues / relations to join TECHM or
NO?
Yes 44 73%
No 16 27%
Total 60
GRAPHICAL DATA INTERPRETATION
As per above graph, there are 73% assume that they are suggesting their friends
/colleagues / relations to join TECHM while rest are said ‘No’.
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7 Anything which could prevent from departure to their employees at TECHM?
Change No. PercentageNothing 13 22%Good Pay Package 25 42%Long Leave 12 20%Promotion 10 16%Total 60
GRAPHICAL DATA INTERPRETATION
As per above graph, there are 42% said that good pay package prevent from departure to
their employees while 20% said long leave and rest promotion policies i.e. 16% of
TECHM prevents to leave their employees.
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8 MAJOR FACTOR OF JOINING NEW ORGANIZATION
Factor No. Percentage
Not Joining any Company 22 30%
Salary 18 37%
Promotion & Salary 6 10%
Change of TL 9 15%
Designation 5 8%
Total 60
GRAPHICAL DATA INTERPRETATION
As per above graph, there are 37% said that salary is the best way to join a new
organization while 30% said that not joining any company, 10% said that salary and
promotion is basic aims of their career growth path while 15% aims are of change of TL
and rest are desire of their designation as well.
85
1 Reasonwise analysis :
Total Respondents for the month 60
Reasons Numbers Percentage
Personal Reasons(Relocation health Marriage) 6 10%
Higher Education 5 8%
Other Reasons 5 8%Inadequate career growth/development opportunities 6 10%
Dissatisfaction with Payroll & Benefits. 10 17%Problem with reporting manager 13 22%
Dissatisfied with Induction/ Training 4 7%
Dissatisfaction with working condition 4 7%Lack of reward & Recognition opportunities 7 12%
Total 60
Reason Wise March-April'07
0%
5%
10%
15%
20%
25%
Pers
onal
Reasons(R
elo
catio
n
health
Marr
iage)
Hig
her
Educatio
n
Oth
er
Reasons
Inadequate
care
er
gro
wth
/develp
om
ent
opport
uniti
es
Dis
atis
factio
n w
ith
Payro
ll &
Benefit
s.
Pro
ble
m w
ith
report
ing m
anager
Dis
satis
fied w
ith
Inductio
n/ T
rain
ing
Dis
satis
factio
n w
ith
work
ing c
onditi
on
Lack o
f re
ward
&
Recogniti
on
opport
uniti
es
Reason
%
According to the survey done in IICM, the most prompting reason for the employees appears to be “problem with the reporting manager” as it got 22% votes followed by “Dissatisfaction with Payroll & Benefits” with 17% .
86
Analysis on areas of improvement for organization
Improvement Areas Numbers PercentageImprovement in services like transport & cafeteria 13 22%
Any other areas 10 17%Improvement in communication channels with Managers 12 20%Improvement in HR policies/guidelines/practices 10 17%Improvements in organizational policies and practices 7 12%
Improvements in resources /materials infrastructure 8 12%
Total 60
Areas of Improvement: IICMin spite of being considered as one of the place to work, majority of employees think “Improvement in communication channels with Managers” need to be improved with 20% votes
87
0%
5%
10%
15%
20%
25%
Impr
ovem
ent i
nse
rvic
es li
ke tr
ansp
ort
& c
afet
eria
Any
oth
er a
reas
Impr
ovem
ent i
nco
mm
unic
atio
nch
anne
ls w
ith
Man
ager
s
Impr
ovem
ent i
n H
Rpo
licie
s/gu
idel
ines
/pra
ctic
es
Impr
ovem
ents
inor
gani
zatio
nal p
olic
ies
and
prac
tices
Impr
ovem
ents
inre
sour
ces
/mat
eria
lsin
fras
truc
ture
Areas
%
Is the training adequate at TechM?
Feedback No. Percentage
Yes 34 56.67%
No 26 43.33%
Total 60
Was the training Adequqte?
56.67%43.33%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
Yes No
Feedback
%
Training: Around 57% employees are satisfied with the training programmes
88
Is the Induction adequate at TechM?
Feedback No. Percentage
Yes 33 55%
No 27 45%
Total 60
Was Induction Adequate ?
55%45%
0%
10%
20%
30%
40%
50%
60%
Yes No
Feedback
%
Induction: Around 55% employees think that induction program was adequate
89
Analysis on Most and Least liked practices at
TechM
Best liked Practice
Practice No. Percentage
Medical 12 20%
Education Policy 12 20%
Bi- Annual Appraisal 26 43%
All Policies are good 3 5%
Leave Policy 5 8%
Marriage 2 4%
Total 60
Most Liked Policy
20% 20%
43%
5% 8% 4%0%5%
10%15%20%25%30%35%40%45%50%
Medical
EducationP
olicy
Bi-
Annual
Appraisal
All
Policies
are good
LeaveP
olicy
Marriage
Policy
%
Best Liked Practices: “Bi annual appraisal” appeared to be the best liked practice at
Tech Mahindra Ltd. which has got 43% whereas about the least liked practices,
“NO INCENTIVES” got 32%
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Least liked Practice at TechM.
Practice No. Percentage
Leave Policy 16 27%
Nothing 4 6%
No Incentives 19 32%
Appraisal 6 10%
Transfer Policy 15 25%
Total 60
Most Disliked Policy March-April'07
27%32%
10%
25%
6%0%
5%
10%
15%
20%
25%
30%
35%
LeaveP
olicy
Nothing
No
Incentives
Appraisal
TransferP
olicy
Policy
%
Interpretation: Referring or suggesting their friends to join the
Company or Not?
91
Feedback No. Percentage
Yes 39 65%
No 21 35%
Total 60
Referring to Friends March-April '07
65%
35%
0%
10%
20%
30%
40%
50%
60%
70%
Yes No
Feedback
%
Interpretation: Referring to Friends about 65% employees said that they will refer
this company to their family and friends.
92
ANYTHING WHICH COULD PREVENT FROM DEPARTURE
Change No. Percentage
Nothing 11 18%
Good Pay Package 20 33%
Long Leave 4 7%
Promotion 6 10%
Good hr practices 10 17%
Change of TL 9 15%
Total 60
Prevention from Departure March-April '07
18%
33%
7% 10%17% 15%
0%
5%
10%
15%
20%
25%
30%
35%
Nothi
ng
Goo
d Pay
Pac
kage
Long
Lea
ve
Prom
otion
Goo
d hr
pra
ctice
s
Chang
e of T
L
Change
%
Prevention from departure: “Good pay package” seems to be the primary reason
which can prevent employees from leaving
93
MAJOR FACTOR OF JOINING NEW ORGANIZATION
Factor No. Percentage
Not Joining any
Company 9 15%
Salary 21 35%
Promotion & Salary 12 20%
Good hr practices 10 17%
Designation 8 13%
Total 60
Factor For joining new organization March-April '07
15%
35%
20% 17%13%
0%
5%
10%
15%
20%
25%
30%
35%
40%
Not Joiningany
Company
Salary Promotion &Salary
Good hrpractices
Designation
Factor
%
Major factor joining other company: “Good pay package” appears to be the
primary reason with 35% for joining the other company followed by “salary and
promotion” with 20%supports
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FINDINGS & ANALYSIS
1. According to the survey done in Tech Mahindra, the reason which prompts
employees to leave the company appear to be” Dissatisfaction with Payroll &
Benefits” with27% followed by Personal Reasons (Relocation health Marriage)
as it has got 23%.
2. Areas of Improvement: Tech Mahindra employees think that HR policies need be
improved which got 25%votes.
3. Training: Around 63% employees are satisfied with the training programmes.
4. Induction: Around 60% employees think that induction program was adequate.
5. Best Liked Practices: “Bi annual appraisal” appeared to be the best liked practices
whereas about the least liked practice, “leave policy” seem to be fall in this
category.
6. Referring to Friends: About 73% employees said that they will refer this company
to their family and friends.
7. Prevention from departure: “Good pay package” seem to be the primary reason
which can prevent employees from leaving.
8. Major factor joining other company: “Salary” appears to be the primary reason for
joining the other company.
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FUTURE SCOPE - CHALLENGES FOR A HR PROFESSIONAL IN BPO
Brand equity: People still consider BPO to be "low brow", thus making it difficult to
attract the best talent.
Standard pre-job training: Again, due to the wide variety of the jobs, lack of general
clarity on skill sets, etc, there is no standard curriculum, which could be designed and
followed.
Benchmarks: There are hardly any benchmarks for compensation and benefits,
performance or HR policies. Everyone is charting their own course.
Customer-companies tend to demand better results from outsourcing partners than what
they could actually expect from their own departments. "When the job is being done
10,000 miles away, demands on parameters such as quality, turn around timeliness,
information security, business continuity and disaster recovery, etc, are far higher than at
home. So, how to be more efficient than the original?
Lack of focused training and certifications given this background, the recruiting and
compensation challenges of HR departments are only understandable.
In general a person with any graduation can join any of the BPO. Some BPO's like to
take people with MBA but then again the specialization are of an individual hardly makes
any difference. Again, this is the industry; where there is no reference checks and very
often people don't even specify there exact age. Lets me share with you some of the
reasons as why people prefer to join a company:
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• Not get a better job.
• Find nothing better to do.
• Education level doesn't matter.
• Good work environment.
• Good Benefits.
• Flexibility of time.
• Attractive life style.
• Transport facility.
WHY PEOPLE LEAVE IN BPO COMPANY?
When there are so many benefits associated with BPO industry.when there are so many
privileges for the BPO employees than what makes them to change the
company/industry?? Is it only MONEY that matters or anything else as well?? Here are
some of the reasons for a BPO professional to change his/her job.
1. No growth opportunity/lack of promotion
2. For higher Salary
3. For Higher education
4. Misguidance by the company
5. Policies and procedures are not conducive
6. No personal life
7. Physical strains
8. Uneasy relationship with peers or managers
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HR RETENTION PRACTICES ADOPTED BY TECHM
As per NHRDN has specifically recognized Tech Mahindra for its performance
orientation that has become central to the company culture. The performance
management system at the company is aligned to both, the business goals and values
adherence. The company values/ operating principles are broken down into behavioral
indicators that are observed and measured on a regular basis, which in turn linked to the
personal effectiveness parameters in an individual's performance review. There is also an
ongoing emphasis on training needs assessment and people development. Tech Mahindra
was also noted for its innovative practices in the areas of attracting the right talent,
reward and recognition, promoting fun as a written down operating principle, learning,
employee communication and compensation which are amongst the key reasons for the
spectacular success of the company.
A part from the legal and mandatory benefits such as provident-fund and gratuity, these
are: --
1. Group Medi-claim Insurance Scheme: This insurance scheme is to provide
adequate insurance coverage of employees for expenses related to hospitalization
due to illness, disease or injury or pregnancy in case of female employees or
spouse of male employees. All employees and their dependent family members
are eligible. Dependent family members include spouse, non-earning parents and
children above three months.
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2. Personal Accident Insurance Scheme: This scheme is to provide adequate
insurance coverage for Hospitalization expenses arising out of injuries sustained
in an accident. This covers total / partial disablement / death due to accident and
due to accidents.
3. Subsidized Food and Transportation: The organizations provide transportation
facility to all the employees from home till office at subsidized rates. The lunch
provided is also subsidized.
4. Company Leased Accommodation: Some of the companies provides shared
accommodation for all the out station employees, in fact some of the BPO
companies also undertakes to pay electricity/water bills as well as the Society
charges for the shared accommodation. The purpose is to provide to the
employees to lead a more comfortable work life balance.
5. Recreation, Cafeteria, ATM and Concierge facilities: The recreation facilities
include pool tables, chess tables and coffee bars. Companies also have well
equipped gyms, personal trainers and showers at facilities.
6. Corporate Credit Card: The main purpose of the corporate credit card is enable
the timely and efficient payment of official expenses which the employees
undertake for purposes such as travel related expenses like Hotel bills, Air tickets
etc
7. Cellular Phone / Laptop: Cellular phone and / or Laptop are provided to the
employees on the basis of business need. The employee is responsible for the
maintenance and safeguarding of the asset.
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8. Personal Health Care (Regular medical check-ups): Some of the BPO'S
provides the facility for extensive health check-up. For employees with above 40
years of age, the medical check-up can be done once a year.
9. Loans: Many BPO companies provide loan facility on three different occasions:
Employees are provided with financial assistance in case of a medical emergency.
Employees are also provided with financial assistance at the time of their
wedding. And, the new recruits are provided with interest free loans to assist them
in their initial settlement at the work location.
10. Educational Benefits: Many BPO companies have this policy to develop the
personality and knowledge level of their employees and hence reimburses the
expenses incurred towards tuition fees, examination fees, and purchase of books
subject, for pursuing MBA, and/or other management qualification at India's top
most Business Schools.
11. Performance based incentives: In many BPO companies they have plans for,
performance based incentive scheme. The parameters for calculation are process
performance i.e. speed, accuracy and productivity of each process. The Pay for
Performance can be as much as 22% of the salary.
12. Flexi-time: The main objective of the flextime policy is to provide opportunity to
employees to work with flexible work schedules and set out conditions for
availing this provision. Flexible work schedules are initiated by employees and
approved by management to meet business commitments while supporting
employee personal life needs .The factors on which Flexi time is allowed to an
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employee include: Child or Parent care, Health situation, Maternity, Formal
education program
13. Flexible Salary Benefits: Its main objective is to provide flexibility to the
employees to plan a tax-effective compensation structure by balancing the
monthly net income, yearly benefits and income tax payable. It is applicable of all
the employees of the organization. The Salary consists of Basic, DA and
Conveyance Allowance. The Flexible Benefit Plan consists of: House Rent
Allowance, Leave Travel Assistance, Medical Reimbursement, Special
Allowance
14. Regular Get together and other cultural programs: The companies organizes
cultural program as and when possible but most of the times, once in a quarter, in
which all the employees are given an opportunity to display their talents in
dramatics, singing, acting, dancing etc. Apart from that the organizations also
conduct various sports programs such as Cricket, football, etc and regularly play
matches with the teams of other organizations and colleges.
15. Wedding Day Gift: Employee is given a gift voucher of Rs. 2000/- to Rs. 7000/-
based on their level in the organization.
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RECOMMENDATIONS
It is recommended that the Tech Mahindra provide their best technique in
considering must be adopted to check the MTI effect in more appropriate manner
in initial round. .
It is recommended that the Tech Mahindra provides their talent express should be
modified to grab quality resources.
It is recommended that the facility management should me improved like lockers
should be given to all employees.
Attrition problem in BPO is consistent, so to over come win-win model needs to
be devised for this, satisfying the needs of both, the employer and the employee.
Needs of the employer : To get maximum returns from each employee, recover
training and development costs, minimize cost in terms of time in training new
workforce, ensure that adequate no of people are there to carry on the process.
Needs of the employee : Enriched job profile, better career path, challenging
work environment, future prospects of the job.
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SUGGESTIONS
1. Develop an attractive employee value proposition.
An employee value proposition means that your company has something attractive to
offer that is perceived as valuable to an employee. as an employer, you must understand
what makes your organization attractive to potential recruits and current employees.
Branding yourself as an employer of choice is not just a slick set of marketing tactics.
The best advocates for an employer’s brand are its current employees. What messages do
they send to others about their employer? Are they honestly saying and believing that,
“This is a great place to work.”
2. Create a total reward structure that includes more than compensation.
Every company should have all the normal compensation mechanisms common to their
type of employment. yet, total rewards packages go far beyond money. While money
might temporarily retain employees, it does not always equate with engagement. People
want a chance to make a difference and realize themselves. That self-realization is multi-
dimensional and different for each employee. The total reward structure should include,
in addition to compensation, support for employees to attain their personal objectives
aligned with the goals of their organization.
3. Give feedback on employee performance on a regular basis.
Most managers and employees are not enamored with the performance appraisal process
in their organization. yet, an effective performance management process serves many
purposes. Ongoing performance feedback allows employees to better know where they
stand, gives them a formal means to provide input, indicates that their managers pay
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attention to them and that their performance matters. This feedback contributes to
employee engagement and retention.
4. Be flexible in terms of work-life balance.
Workers more and more value a balance between work and life. They want more flexible
ways to engage with their employer. To attract and retain workers with different work
and career expectations, organizations have to be more flexible in structuring work and
its expectations. It calls for a different managerial mindset and practices that involve
letting go of old ways of controlling workers’ time and attendance in favor of result
criteria such as output, productivity and quality.
5. Create a culture of engagement.
Employees have become more connected with others in the organization through project-
based team work and process management activities. Employees are shifting their loyalty
to people, teams and projects and away from company loyalty. It is organizations that
create the culture and climate that allow people, processes and projects to become fully
connected and engaged with one another. Engaged employees are more likely to stay
with their employer.
6. Train managers to be effective.
Exit interviews consistently show that “poor and bad” management practices greatly
contribute to an employee’s decision to leave a company. It is imperative to provide
supervisors and managers with adequate tools to become effective managers since we
cannot assume that these competencies are innate.
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CONCLUSION
It is concluded that retention strategies adopted by Tech Mahindra and other BPO’s
companies it plays an important role for small and medium BPOs, that has been receiving
considerable attention from academicians, researchers and practicing HR managers. In its
essence, retention comprises important elements such as the need or content, search and
choice of strategies, goal-directed behaviour, social comparison of rewards
reinforcement, and performance-satisfaction. The increasing attention paid towards
Retention is justified because of several reasons. Motivated employees come out with
new ways of doing jobs. They are quality oriented. They are more productive. Any
technology needs motivated employees to adopt it successfully. Several approaches to
Retention are available. Early theories are too simplistic in their approach towards
Retention. For example, advocates of scientific Management believe that money is the
motivating factor. The Human Relations Movement posits that social contacts will
motivate workers. Mere knowledge about the theories of Retention will not help manage
their subordinates. They need to have certain techniques that help them change the
behavior of employees. One such technique is reward. Reward, particularly money, is a
motivator according to need-based and process theories of Retention. For the behavioral
scientists, however, money is not important as a motivator. Whatever may be the
arguments, it can be stated that money can influence some people in certain
circumstance. Being an outgrowth of Herzberg’s, two factor theory of Retention, job
enrichment is considered to be a powerful motivator.
An enriched job has added responsibilities. The makes the job interesting and rewarding.
Job enlargement refers to adding a few more task elements horizontally. Task variety
helps motivate job holders. Job rotation involves shifting an incumbent from one job to
another.
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BIBLIOGRAPHY
BOOKS / JOURNALS
Charles R. Greer, Strategic Human Resource Management: A General Managerial
Approach, Second Edition, Person Education, 2008.
“Perceived Supervisor Support: Contributions to perceived organizational support
and Employee Retention”. Journal of Applied Psychology, 2008, 565-573
Khanewal Rohit (February 2008), "Winning the Retention Game", Human
Capital, Pg. 10-12.
Human Resource Management C.B.Memoria
MAGAZINES & NEWS PAPERS
BUSINESS WORLD
BUSINESS TODAY
OUTLOOK
The Economic Times
The Hindustan Times
The Hindu Business Standard Line
WEBSITES
www.techmhr.com
www.hrbpoindustry.com
www.bpo.org
www.techmahindrabpo.com
www.googlesearchengine.com
www.bpoindia.org
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ANNEXURES
QUESTIONNAIRE
Name : _____________________
Qualification : _____________________
Designation : _____________________
1 What are the reasons which are prompting you to leave?
1. Higher Education
2. Personal Reasons
3. Dissatisfaction with pay/benefits
4. Problems with reporting manager (relocation, health, marriage etc.)
1. Dissatisfaction with induction/training
2. Dissatisfaction with working conditions
3. Inadequate career growth/development opportunities
4. Lack of reward & recognition opportunities
5. Any other reasons(Please specify)
2 In which areas are improvements required to be done to change the perceptions of
people about the organisation?
1. Improvements in organisational policies/practices
2. Improvements in HR policies/guidelines/practices
3. Improvements in services like transport, cafeteria etc.
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4. Improvements in communication channels with team leaders/managers/Centre
Head
5. Improvements in resources/materials/infrastructure
6. Any other areas (Please specify)
Please specify the improvements which you feel are required in the above areas in the
space given below
3 Did you find the training adequate?
If yes why?
If no why?
4 Did you find the induction adequate?
If yes why?
If no why?
5 To what extent on a scale of 1 - 10 would you rate the leadership qualities of your
reporting manager?
Rating 10 9 8 7 6 5 4 3 2 1
1. Give one practice you liked the best and why
2. Give one practice you liked the least and why
6 What circumstances could have prevented your departure from the company?
7 Would you recommend this company to your family/friends?
1. If yes why?
2. If no why?
Please let us know the major attracting factor in the new organisation you propose to join.
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Any other comments/suggestions which you would like to make
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