RETENTION OF HUMAN CAPITAL:

A MAJOR CHALLENGE TO
ORGANIZATIONS
 EMPLOYEE RETENTION
Employee retention is a process in which the employees are
encouraged to remain with the organization for a maximum period
of time or until the completion to the project .

Effects of Retention:
1.The cost of turnover
2. Loss of company knowledge
3. Interrupting Customer Service
4. Turn over leads to more turn over
5. Goodwill of the company
6. Regaining Efficiency
 WHY PEOPLE LEAVE ?

1. Job is not what an employee expected it to be

2. Job person mismatch
3. No growth opportunities
4. Lack of appreciation
5. Lack of trust in co-workers, seniors and management
6. Stress, overwork and work life imbalance
7. Compensation
 health Related Reasons

Perceptions of discriminatory
Treatment

Childcare Issues

Relationship with Co-workers

Job Security Fears

Retirement

Returning to School

Relocating Partner

Poor Management

Benefit Pakages

Career Opportunities Elsewhere

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Most common reasons employees voluntarily leave

[source: Robert L. Mathis and John H. Jackson, 2004].
 STATEGIES INVOLVED
1. Undifferentiated Collars : Fair treatment at all levels
Cognizant Technology Solutions –Skip level meetings
Marriot International
2. Rewards and Recognition:
Ask each employee what will be more rewarding to them
MAD tree concept : RMSI
3. Growth:
a. Personal Growths and dreams
b. Training and Development
4. Performance and compensation:
Birla Sun life Insurance (BSI)- incentive
packages

5. Treating ordinary thing

extraordinarily-Going the extra mile:
Cadbury India - “Smile Power day”
At Texas Instruments -encourages ‘re-
hiring’
S.T Microelectronics - “Thank you for
bearing with us”
Elli Lilly’s - diamond pendant
 BEST PRACTICES
1. Transparent Work Culture
2. Supporting employees
3. Feedback
4. Responsibility with more Flexibility –Adobe
5. Stress busters –Concept of serious fun
Google -football game, ping pong table, bicycles, large
rubber exercise balls etc.
Cognizant Technologies Solutions -Friday fun events
 Companies that are good to work in stick to
these basics
Hiring through referrals. Happy employees will only
refer those who fit the company needs.

Being a centre for learning. Providing extensive

training including using internal specialists.

Offering cross-functional growth opportunities.

Growth is no longer in a department silo.

Always completing the feedback loop. Great

workplaces correct the wrongs.

Not leaving flanks open to talent outage. They Make

concrete succession plans.

Building empowerment into systems. No amount of

training can ensure this.

Ensuring fun. Impromptu parties, family outings,

etc. for staffers create profitable companies.
 CONCLUSION

“Human Capital Is Our Greatest Asset”- practice what

you preach
Market membership as much as one markets products and
sources perhaps more.
Employee retention would require lot of efforts, energy,
resources but the results are worth it.
THANK YOU