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Employee Retention Project Report

Employee Retention Project Report



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Published by kamdica
Employee Retention mba Project Report
Employee Retention mba Project Report

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Published by: kamdica on Oct 19, 2009
Copyright:Attribution Non-commercial


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For more Notes, Presentations, Project Reports visit a2zmba.blogspot.comhrmba.blogspot.commbafin.blogspot.com
Executive SummaryEmployee retention is a process in which the employees are encouraged to remainwith the organization for the maximum period of time or until the completion of theproject. Employee retention is beneficial for the organization as well as theemployee. Employees today are different. They are not the ones who don’t havegood opportunities in hand. As soon as they feel dissatisfied with the currentemployer or the job, they switch over to the next job. It is the responsibility of theemployer to retain their best employees. If they don’t, they would be left with nogood employees. A good employer should know how to attract and retain itsemployees.Most employees feel that they are worth more than they are actually paid. There isa natural disparity between what people think they should be paid and whatorganizations spend in compensation. When the difference becomes too great andanother opportunity occurs, turnover can result. Pay is defined as the wages, salary,or compensation given to an employee in exchange for services the employeeperforms for the organization. Pay is more than "dollars and cents;" it alsoacknowledges the worth and value of the human contribution. What people are paidhas 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 whereemployees are not able to use their full potential and not heard and valued, theyare likely to leave because of stress and frustration. In a transparent environmentwhile employees get a sense of achievement and belongingness from a healthywork environment, the company is benefited with a stronger, reliable work-forceharboring bright new ideas for its growthBlog Online And Earn MoneyIntroductionEmployee turnover is one of the largest though widely unknown costs anorganization faces. While companies routinely keep track of various costs such assupplies and payroll, few take into consideration how much employee turnover will
cost them: Ernst & Young estimates it costs approximately $120,000 to replace 10professionals. According to research done by Sibson & Company, to recoup the costof losing just one employee a fast food restaurant must sell 7,613 combo meals at$2.50 each. Employee turnover costs companies 30 to 50% of the annual salary of entry-level employees, 150% of middle-level employees, and up to 400% for upperlevel, specialized employees. Now that so much is being done by organizations toretain its employees, why is retention so important? Is it just to reduce the turnovercosts? Well, the answer is a definite no. It’s not only the cost incurred by a companythat emphasizes the need of retaining employees but also the need to retaintalented employees from getting poached.Resume Writing TipsEmployee RetentionRetention involves five major things:Ø CompensationØ EnvironmentØ GrowthØ RelationshipØ SupportCompensationCompensation constitutes the largest part of the employee retention process. Theemployees always have high expectations regarding their compensation packages.Compensation packages vary from industry to industry. So an attractivecompensation package plays a critical role in retaining the employees.Compensation includes salary and wages, bonuses, benefits, prerequisites, stockoptions, bonuses, vacations, etc. While setting up the packages, the followingcomponents should be kept in mind:Salary and monthly wage: It is the biggest component of the compensationpackage. It is also the most common factor of comparison among employees. ItincludesBasic wageHouse rent allowanceDearness allowanceCity compensatory allowanceSalary and wages represent the level of skill and experience an individual has. Timeto time increase in the salaries and wages of employees should be done. And thisincrease 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 travelconcession, etc.Long-term incentives: Long term incentives include stock options orstock grants. These incentives help retain employees in the organization's startupstage. Health insurance: Health insurance is a great benefit to the employees. Itsaves employees money as well as gives them a peace of mind that they havesomebody to take care of them in bad times. It also shows the employee that theorganization cares about the employee and its family. After retirement: It includespayments that an Employee gets after he retires like EPF (Employee ProvidentFund) etc. Miscellaneous compensation: It may include employee assistanceprograms (like psychological counseling, legal assistance etc), discounts oncompany products, use of a company cars, etc.Employers And Their Key Drivers To Attract And Retain TalentEmployers Key Drives To Attract And Retain TalentProcter and Gamble IndiaEarly responsibilities in careerFlexible and transparent organizational cultureGlobal opportunities through a variety of exposure and diverse experiencesPerformance RecognitionAmerican Express (India)Strong global brandValue-based environmentPioneer in many people practicesNTPCLearning and growth opportunitiesCompetitive rewardsOpportunity to grow, learn and implementStrong social security and employee welfare performance- oriented culture Johnson & JohnsonStrong values of trust, caring fairness, and respect within the organizationFreedom to operate at workEarly responsibility in career Training and learning opportunitiesVisible, transparent and accessible leadersCompetitive rewardsInnovative HR programs and practicesGlaxo Smith Kline Consumer Healthcare

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