c




 
   

   




 


‘
‘




Employees are said to be a company's greatest asset. Attracting,

safeguarding, nurturing and preserving them is a mission in itself, which
takes total commitment and endorsement. While the middle
management has a career chart well in place to take on the next
position, the top hierarchy has a contingency plan laid firm. It is the
group which is lower down the ranks for whom there is no succession
planning strategy in place, and who comprise the volatile lot. They are
easy targets of poaching in the competitive talent market .

‘
‘ 

IBM has been well known through most of its recent history as one of
the world's largest computer companies and systems int egrators. With
over 388,000 employees worldwide, IBM is one of the largest and most
profitable information technology employers in the world. IBM holds
more patents than any other U.S. based technology company and has
eight research laboratories worldwide. The company has scientists,
engineers, consultants, and sales professionals in over 170 countries

 



1) This research has scope in developing policy and strategy of the

organization.
2) It has also scope to create awareness among employees.
3) This study will be helpful to the researcher who want to extend
their further research.

 



1. To f ind the e mplo yee s a wa rene ss in IBM about

va riou s a ctivit ie s to retain e mplo yee.
2. To a sse s satisf a ction/dissat isf action level in
e mplo yee af ter e xit inte rvie w.


 
 


 

 




 c




 
   

   



 


3. To kno w the impa ct of variou s act ivit ies on the
produ ctivit y of IBM.


‘ 

‘‘



There are two type data source of data collection is used.



I collected through following method.

 Questionnaire : In this I made near about 21

questions. I get it filled from respondents
(employees of IBM Company Pune.)
 I met to Head Of Department and conducted
Personal Interview and collected valuable
information.

!"#

Secondary data collected from internet website, books, magazines ,

,journals, newspapers.

‘ 

3 
$% &' (Sample size is 50 respondents.

3
$% 
#( Employees of IBM Company, Pune..
3
$%#) !*#+, &(Simple random technique
is used.


‘ 


3 For this study EXPLORATORY RESEARCH DESIGN is used.



 
 


 

 




 c




 
   

   



 


 ‘

1) IBM Co. should provide challenging works to their

employees so that the employees get chance to utilize
their skill and knowledge to perform better.
2) The company should give chances to other age group
also as they may be more experienced than age group of
18-30 yrs. The company should provide a good pay scale
to retain the employees in company.
3) The companies staff members who are the part of rude
area should help their employees and unde rstand the
problem area of their collegues.






The following conclusions are made from the data collected from the
structured questionnaire.:

The company is giving chance to not only to Post
Graduates candidates but also to Graduates and
Under Graduated candidates.

The monthly income to most of the employees is
above 30000 which seems to be the satisfaction
level of the candidates.
 The company is treating equally with the
employees by which many employees are not
facing the problem of gende r discrimination.
 The company is providing challenging work which
is very helpful to grow the employees future further.



 
 


 

 




 c




 
   

   



 





#",!"#"&,

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 employee s.
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 , organizations 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. In addition to
globalization and unprecedented competition , organizations are facing
issues related to employee retention. Company spends a lot of money
in retaining their top talent and is pretty conscious of the loss incurred
by the resignation of an employee and the expenses for hiring a new
employee. Hiring them normally cost around 35% or mo re of the
average employee¶s salary. It is a fact that, retention of key employees
is critical to the long-term health and success of any organization. The
performance of employees is often linked directly to quality work,
customer satisfaction increased product sales and even to the image of
a company. Whereas the same is often indirectly linked to, satisfied
colleagues and reporting staff, effective succession planning and deeply
embedded organizational talent and knowledge. Employee retention.
Many of us are facing difficulties to retain our best employees due to
one or other reasons; I hope my understanding on the issue would help
you to emerge from the above specified problem. 



 
 


 

 




 c




 
   

   



 


$%"   #"#

Is it just to keep employees associated with the organiz ation as long as

possible, or to keep them active at the work place indeed!! The best
way to improve employee retention is to understand what employees
want and need from the workplace and provide it. But we should not
deny that the employee demands are wi thin limits, of course.
Management can not just dish out indiscriminate amounts of money to
employees or them a four day work week in many cases. Studies show
that many employees leave for reasons that have nothing to do with
money or benefits, but rather with issues such as feeling they have a
very limited chance for advancement. Other complaints include not
enough honest feedback, the actual job does not match with what they
were told in initial interviews, and/or there is a lack of
challenge/learning/tra ining. Employers can resolve these sorts of issues
in cash-free ways to help increase their employee retention rates.
Companies can be competitive in these areas and still stay within
budget constraints. Staying competitive in wages is an excellent
employee retention practice as it helps one get and keep the top
employees in their fields. These employees are likely to stay if they
would get less money in similar firms of the same size. Companies are
increasingly engaging in retention strategies which are ga ining
prominence, and are as important as recruitment and training.
Retention plans need to be phased out bearing in mind not only the job
requisites of an individual, but the surrounding environment as also
gaining an insight into an individual¶s personal life. ‘- .*/
*# # #)#)  !" / ‘!* *%0&/  #"#&/
1 2&/$"""#&/#!  #&/ !3/*4 * "5#$"#! #
#&,#) $%"  %"%3 However, these are a given wherein
employees try to always look at improving their socio-economic status.
Our observations, in the manufacturing world, has been a high degree
of aversion to lateral movements in the same organization. ‘%"2

6 #/  !"7# #"#%/%  *! ,!%&/$"#&",
*  &5*  !"$# &*4  " 5*!,"#(



 
 


 

 




 c




 
   

   



 


Exhaustive recruitment and selection process

Flexible compensation package

Creating bonding among the employees

What employees need and demand , and companies are increasingly

trying to adopt are innovative ways to not only make em ployee life
easier but also to enhance it. Since there are increasing health
concerns even from a very young age, medical benefits are of utmost
importance. Similarly, in an age where commuting eats up a
considerable amount of a person¶s time, any arrange ment to reduce
the travelling woes act as a major attraction.

‘‘

The attrition rate has always been a sensitive issue for all organizations.
Calculating employee turnover rate is not that simple as it seems to be.
No common formula can be used by all the organizations. A formula
had to be devised keeping in view the nature of the business and
different job functions. Moreover, calculating attrition rate is not only
about devising a mathematical formula. It also has to take into account
the root of the problem by going back to the hiring stage.

‘"#  ( There is no standard formula to calculate the attrition

rate of a company. This is because of certain factors as:

3 The employee base changes each month. So if a company has

1,000 employees in April 2004 and 2,000 in March 2005, then
they may take their base as 2,000 or as 1,500 (average for the
year). If the number of employees who left is 300, then the
attrition figure could be 15 percent or 20 percent depending on
what base you take.

3 Many firms may not include attrition of freshers who leave

because of higher studies or within three months of joining.



 
 


 

 




 c




 
   

   



 


3 In some cases, attrition of poor performers may also not be
treated as attrition. Calculating attrition rate:

Attrition rates can be calculated using a simple formula:

‘"#87"3"9 $%" &5*"% 9#*  :4 ) 
$%" &#*  6;;
Thus, if the company had 1,000 employees in April 2004, 2,000 in
March 2005, and 300 quit in the year, then the average employee
strength is 1,500 and attrition is 100 x (300/1500) = 20 percent. Besides
this, there are various other types of attrition that should be taken into
account.

* &  

3 Fresher attrition that tells the number of freshers who left the
organization within one year. It tells how many are using the
company as a springboard or a launch pad.

3 Infant mortality that is the percentage of people who left the

organization within one year. This indicates the ease with which
people adapt to the company.

3 Critical resource attrition which tell the attrition in terms of key

personnel like senior executives leaving the organization.

3 Low performance attrition: It tells the attrition of tho se who left

due to poor performance.

‘"#"&&
One of the best methods for calculating the cost of turnover takes
into account expenses involved to replace an employee leaving an
organization. These expenses are:
‘3 !, #!"&
The cost to the business when hiring new employees includes the
following six factors plus 10 percent for incidentals such as
background screening:



 
 


 

 




 c




 
   

   



 


3 Time spent on sourcing replacement

3 Time spent on recruitment and selection

3 Travel expenses, if any

3 Re-location costs, if any n Training/ramp-up time

3 Background/reference screening

3##)# 4 %"$ #!"&

To estimate the cost of training and developing new employees, cost of
new hires must be taken into consideration. This will mean direct and
indirect costs, and can be largely classified under the following heads:

3 Training materials

3 Technology

3 Employee benefits

3 Trainers¶ Time

3‘#&"#!"&
They include:

3 Set up communication systems

3 Add employees to the HR system

3 Set up the new hire¶s workspace

3 Set up ID-cards, access cards, etc.

3 The Following graph describes the Attrition Rates in Different
Sectors In India



 
 


 

 

!


 c




 
   

   



 


Table ± Attrition rates in different sectors(2007)

All the sectors are facing attrition. But the reasons and effects of
attrition in every sector are different. Let us discuss the attrition rates of
these sectors in detail:

3 FMCG Sector

3 Manufacturing Sector

3 Capital Goods Sector

3 Construction Sector

3 Non-voice BPO Sector

3 IT ± ITES Sector

3 Attrition Rates Of Wipro, TCS, Satyam and Infosys

3 Telecom Sector


 
 


 

 

"


 c




 
   

   



 


3 Pharmaceuticals Sector

3 Biotechnology Sector

3 Services Sector

3 Financial Sector

3 Aviation Sector

3 Retail Sector

Voice-based BPO Sector

The basic practices which should be kept in mind in the

employee retention strategies are:
1. Hire the right people in th e first place.
2. Empower the employees: Give the employees the
authority to get things done. Make employees realize that
they are the most valuable asset of the organization.
3. Have faith in them, trust them and respect them.
4. Provide them information and knowledge.
5. Keep providing them feedback on their performance.
6. Recognize and appreciate their achievements.
7. Keep their morale high.
8. Create an environment where the employees want to work
and have fun.



 
 


 

 

#


 c




 
   

   



 


These practices can be categorized in 3 levels: Low, medium and high
level.

<Low> <Medium > <High> 

,& &"9 $%" ,#"4 

In order to know the cause of excessive employee turnover, the causes
of dysfunctional and avoidable turnover should be known. Few reasons
for dysfunctional turnover may be:

3 Compensation package differences

3 Job and employee skill mismatch: the job may be less or more
satisfying and challenging according o the employee.

3 Inferior facilities, tools, etc

3 Less recognition

3 Less or no appreciation for work done

3 Less growth opportunities



 
 


 

 




 c




 
   

   



 


3 Poor training

3 Poor supervision

3 Less work and life balance practices



 
 


 

 




 c




 
   

   



 



‘ 

As we already defined objective of study in research process so goin g

ahead I have gone through data collection process. Here we collect
both types of data like primary data and secondary data.

‘ ‘‘

Here we did survey through preparing questionnaire and observation. I

selected the 50 respondents in IBM Company ,Pune city and asked
them about 20 question regarding Retention Strategy and Its
Effectiveness, which are filled by the respondents in person regarding
awareness of the Retention Strategy.

 ‘ ‘‘

I collected secondary data from websites related to R etention

Strategy, books, and articles in magazine. 


‘ 


I used exploratory research method and conducted the research in IBM

Company Pune and I has used 50 respondents as a sample.

< ‘
‘

In exploratory research the focus is on gaining insights and familiarity

with the subject area for more rigorous investigation later.

‘ 


=;respondents were the sampling unit

‘ ‘‘

IBM Company was the sampling area of research 



 
 


 

 




 c




 
   

   



 


‘  

Increasing competition among the corporates for the right talent seems
to have made the process of attracting and retaining talent, a Herculean
task more than ever before. As the highly talented workforce in
organizations enhance their skills and job -hop from one company to
another, managers seem to be feeling the heat in battling abnormally
high attrition rates. Motivating employees and retaining them in the
current scenario is altogether a different ball game as compared to
about five years ago so much so that employee retention has almost
become synonymous with employee motivation. A motivated employee
is satisfied with his job, more productive and more likely to stay with the
organization. Therefore, a key issue to address while handling
employee retention is the ways and means of motivating them. As is
often said, employees do not leave an organization because it is bad;
they leave with a hope to get a better set of people in another
organization. If there is somebody who can make the difference, it is
undoubtedly the leaders with adequate backup from the HR team and
the management. The main objective of the book is to provide useful
insights into various aspects of employee motivation and how
motivation can be successfully used as a means to retain empl oyees in
an organization. The book also provides experiences in various
industries/sectors as to how motivation can be helpful in enhancing the
employee productivity and in retaining talent which, in turn, would
improve the overall performance of an organi zation. This book attempts
to capture those aspects of motivation which play a pivotal role in
keeping the employee morale high, which will help mangers keep him
bonded with the organization. An attempt has been made to explore
various tools for motivating employees, which may be handy for the
practising managers in dealing with attrition. The theme of the proposed
book focuses on the well-established fact that motivated employees are
not only productive but also committed to staying on with an
organization.



 
 


 

 




 c




 
   

   



 


 



1. To identif y the Retention Stra teg y in IBM.

2. To understand the impa ct of Retent ion Strateg y

on the perf orman ce of emp lo yee of IBM.

3. To f ind the e mplo yee s a wa rene ss in IBM about

va riou s a ctivit ie s to retain e mplo yee.

4. To a sse s satisf a ction/dissat isf action level in

e mplo yee af ter e xit inte rvie w.

5. To kno w the impa ct of variou s act ivit ies on the

produ ctivit y of IBM.



 
 


 

 




 c




 
   

   



 



 



1) This research has scope in developing policy and strategy of the

organization.

2) It has also scope to create awareness among employees.

3) This study will be helpful to the researcher who want to extend

their further research




 
 


 

 




 c




 
   

   



 


 ‘ 

 "$#/ ,# 3

(

1 ‘ 



/ ‘   >

1./ >

# #"#% ,&# && !*# & "$""# , abbreviated IBM and
nicknamed "Big Blue" (for its official corporate color), is a multinational
computer technology and IT consulting corporation headquartered in
Armonk, New York, United States. The company is one of the few
information technology companies with a continuous history dating back
to the 19th century. IBM manufactures and sells computer hardware
and software (with a focus on the latter), and offers infrastructure
services, hosting services, and consulting services in areas ranging
from mainframe computers to nanotechnology.

IBM has been well known through most of its recent history as one of
the world's largest computer companies and systems integrators. With
over 388,000 employees worldwide, IBM is one of the largest and most



 
 


 

 




 c




 
   

   



 


profitable information technology employers in th e world. IBM holds
more patents than any other U.S. based technology company and has
eight research laboratories worldwide. The company has scientists,
engineers, consultants, and sales professionals in over 170 countries

IBM employees have earned Five "0 % ' &, four ,#) ‘5&,
94  "#%  %& "9  !*#"%") , and 94  "#%  %& "9

! #! . The roots of IBM date back the 1880s, decades before the
development of electronic computers. The company was formed
through a merger of three different companies: the Tabulating Machine
Company (with origins in Washington, D.C. in the 1880s), the
International Time Recording Company (founded 1900 in Endicott), and
the Computing Scale Corporation (founded 1901 in Dayton, Ohio, USA)
The merger was engineered by noted financier Charles Flint, and the
new company was called the Computing Tabulating Recording (CTR)
Corporation. CTR was incorporated on June 16, 1911 in Endicott, New
York, U.S.A.. Flint remained a member of the board of CTR until his
retirement in 1930

The companies that merged to form CTR manufactured a wide range of

products, including e mployee time-keeping systems, weighing
scales,automatic meat slicers, coffee grinders, and most importantly for
the development of the computer, punched card equipment. The
product lines were very different, but Flint believed that since they all
focused on equipment that made businesses more efficient, there were
synergies and cross selling opportunities to be had. Based in New York
City, the new company had 1,300 employees and offices and plants in
Endicott and Binghamton, New York; Dayton, Ohio; Detroit, Michigan;
Washington, D.C.; and Toronto, Ontario.

Of the companies merged to form CTR, the most technologically

significant was the Tabulating Machine Company, founded by Herman
Hollerith, and specialized in the development of punched card data
processing equipment. Hollerith's series of patents on tabulating
machine technology, first applied for in 1884, drew on his work at the



 
 


 

 

!


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U.S. Census Bureau from 1879±82. Hollerith was initially trying to
reduce the time and complexity needed to tabulate the 1890 Census.
His development of punch cards in 1886 set the industry standard for
the next 80 years of tabulating and computing data input.

The Tabulating Machine Company originally sold some machines to a

railway company but quickly focused on the challenges of the largest
statistical endeavor of its day - the 1900 US Census. After winning the
government contract, and completing the project with amazing speed,
Hollerith was faced with the challenge of sustaining the company in
non-Census years He returned to targeting private businesses both in
the United States and abroad, attempting to identify industry
applications for his automatic punching, tabulating and sorting
machines. But creating markets for the new technology was a struggle,
and by 1911 Hollerith, now 51 and in failing health, was looking to rest
on his laurels. He sold the business to Flint for $2.3 million (of which
Hollerith got $1.2 million), who then created C -T-R. Hollerith remained
involved with C-T-R for some years as a consultant, but his involvement
waned as time went on.

When the diversified businesses of C-T-R proved difficult to manage,

Flint turned for help to the former No. 2 executive at the National Cash
Register Company, Thomas J. Watson Sr.. Watson became General
Manager of C-T-R in 1914 and President in 1915. By Drawing upon his
managerial experience at NCR, Watson quickly implement ed a series of
effective business tactics: generous sales incentives, a focus on
customer service, an insistence on well-groomed, dark-suited
salesmen, and an evangelical fervor for instilling company pride and
loyalty in every worker. As the sales force grew into a highly
professional and knowledgeable arm of the company, Watson focused
their attention on providing large -scale, custom-built tabulating solutions
for businesses, leaving the market for small office products to others.
He also stressed the importance of the customer, a lasting IBM tenet.
The strategy proved successful, as during Watson¶s first four years,



 
 


 

 

"


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revenues doubled to $2 million, and company operations expanded to
Europe, South America, Asia and Australia.

At the helm during this period, Watson played a central role in

establishing what would become the IBM organization and culture. He
launched a number of initiatives that collectively demonstrated an
unwavering faith in his workers: he hired the company¶s first disabled
worker in 1914, he formed the company¶s first employee education
department in 1916, and in 1915 he introduced his favorite slogan,
"THINK," which quickly became a corporate mantra. Watson boosted
company spirit by encouraging any employee with a complaint to
approach him or any other company executive ± his famed Open Door
policy. He also sponsored employee sports teams, family outings and a
company band, believing that employees were most productive when
they were supported by healthy and supportive families and
communities. These initiatives ± each deeply rooted in Watson¶s
personal values system - became core aspects of IBM culture for the
remainder of the century.

Given the company¶s geographic growth (including the completion of

three manufacturing facilities in Europe ), and his own expansive vision,
Watson found the C-T-R name too limiting,. A name of a publication
from C-T-R¶s Canadian operation caught his eye, and on February 14,
1924, the C-T-R name was formally changed to International Business
Machines Corporation, later to be abbreviated IBM.



 
 


 

 

#


 c




 
   

   



 


IBM 7090 installation

Boca Corporate Center & Campus was originally one of IBM's research
labs where the IBM PC was created



 
 


 

 




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The original IBM PC (ca. 1981)

IBM ha s been p re sent in India sin ce 1992. Sin ce in ception ,

IBM in India ha s e xpanded it s operations con side rably with
regional headqua rters in Bangalo re a nd off ices in 14 citi e s
including reg ional of f ices in Ne w De lhi, Mu mba i, Kolkata and
Chennai. Toda y, the co mpan y ha s e st ablished it self a s one
of the leaders in the Indian Inf ormation Te chnolog y (IT)
Indu st ry.

IBM India Limited, a subsidiary of IBM Inc. (International Business

Machines Corporation), was set up in September 1999. Before that IBM
was present in India since 1992, through a joint venture. Today, the
company has established itself as one of the leaders in the Indian
Information Technology (IT) Industry.
IBM Solution Partnership Centre, Bangalore: (One among 10 facilities
worldwide) Independent Software Vendors are encouraged to port their
solutions on IBM platforms at this centre and develop Web based
applications for Indian customers.
Linux Solution Centre, Bangalore: (One among 7 facilities worldwide)
The centre supports Business Partners and Independent Service
vendors across the ASEAN / South Asia region.
India Software Labs at Bangalore and Pune: The two labs develop,
enhance and support key IBM products & techno logies in collaboration
with other IBM labs across the globe.



 
 


 

 




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India Research Laboratory, Delhi: (One among 8 facilities worldwide)
This laboratory located in the sprawling campus of Indian Institute of
Technology - Delhi, has research initiatives underway covering areas
like e-Commerce, Knowledge Management, Bio -Informatics, Grid
Computing, Autonomic Computing etc.
Global e-business Software Centre, Gurgaon: This state -of-the-art
center combines IBM's global experience and technology expertise to
deliver e-business solutions for Indian organisations and also the
government through the e-Governance Centre.
Manufacturing Facility, Pondicherry: Set up in 1999, the plant currently
manufactures commercial desktops, low and mid-range servers. Local
manufacturing has helped in reaching products to customers faster,
besides giving the flexibility to configure the systems to specific
customer requirements.

BM has set the agenda for the industry with 'on demand business' - a
kind of transformation where an organisation changes the way it
operates and reduces costs; serving customers better, reducing risks
and improving speed and agility in the marketplace. IBM is already
working with customers to transform them into 'on demand' businesses.
IBM is the only company in the world that offers end-to-end solutions to
the customers from hardware to software, services and consulting.
Linux support further enhances IBM's e-business infrastructure enabler
capability offerings: IBM is the only IT company in the world and also in
India that offers end-to-end solutions to customers from hardware to
software, services and consulting.
IBM Global Services is the world's and also India's largest information
technology services and consulting provider. IGS provides the entire
spectrum of customers' e-business needs -- from the business
transformation and industry expertise of IBM Business Consulting
Services to hosting, infrastructure, technology design and training
services. IGS delivers integrated, flexible and resilient processes --
across companies and through business partners -- that enable
customers to maximise the opportunities of an on -demand business



 
 


 

 




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environment.
In 2005, IBM announced the acquisition of Network Solutions Ltd., a
leading infrastructure services company in India. T his strategic
investment will enable IBM to augment it's networking and managed
services portfolio of offerings in India and broaden it¶s reach across the
country.
Software Group the largest provider of middleware and the second -
largest software business in the world offers its customers
comprehensive solutions to meet their e -business requirements. IBM
Software provides best-of-breed solutions for financial services,
manufacturing, process, distribution, government, infrastructure and
small & medium business sectors.
IBM Software portfolio consists of:
- Transformation and integration solutions that are built on the IBM
WebSphere middleware platform. - Information leveraging solutions that
are built on a portfolio of Data management (DB2) tools. - Lotus product
line to help organisations leverage collective know -how. - Tivoli range of
products to enable organisations to manage complex technology
infrastructure. - Rational range of Application Development Tools to
help software development houses develop app lications in a structured
and systematic way. Profile
IBM strives to lead in the creation, development and manufacture of the
industry's most advanced information technologies, including !"$, 
&& &/ &"95 / # 5"2#) && &/ &")   4! & #
!" % !"#!&3 IBM brings its products and services through IBM
India and IBM Global Services.
IBM India's product portfolio includes the IBM PC, Aptiva home
computer , ThinkPad portables, RS/6000, AS/400e, S/390 and Netfinity
servers, network computers, printers, networking and storage products.
IBM's software offerings include DB2, Lotus, Tivoli, MQ Series and a
range of Internet software like WebSphere and SecureWay.
India is also home to 5" & % !   ! # & - the  
"%,"#&
 & !* #  at  5 %* and the
"%,"#& # &*$ # 
7
 at #)%" . The SRC (only the eighth of its kind across the



 
 


 

 




 c




 
   

   



 


globe) is an extended arm of IBM Research activities. As part of IBM's
global research infrastructure, the SRC participates in path breaking
research projects for IBM worldwide. The Solutions Partnership Center
at Bangalore is a part of IBM's developer relations focus for India. The
SPC is a showcase of IBM technology and a testing and porting lab for
application software developers.



 
 


 

 




 c




 
   

   



 


‘<‘ ‘ 

Increasing competition among the corporates for the right talent seems
to have made the process of attracting and retaining talent, a Herculean
task more than ever before. As the highly talented workforce in
organizations enhance their skills and job -hop from one company to
another, managers seem to be feeling the heat in battling abnormally
high attrition rates. Motivating employees and retaining them in the
current scenario is altogether a different ball game as compared to
about five years ago so much so that employee retention has almost
become synonymous with employee motivation. A motivated employee
is satisfied with his job, more productive and more likely to stay with the
organization. Therefore, a key issue to addre ss while handling
employee retention is the ways and means of motivating them. As is
often said, employees do not leave an organization because it is bad;
they leave with a hope to get a better set of people in another
organization. If there is somebody who can make the difference, it is
undoubtedly the leaders with adequate backup from the HR team and
the management. The main objective of the book is to provide useful
insights into various aspects of employee motivation and how
motivation can be successfully used as a means to retain employees in
an organization. The book also provides experiences in various
industries/sectors as to how motivation can be helpful in enhancing the
employee productivity and in retaining talent which, in turn, would
improve the overall performance of an organization. This book attempts
to capture those aspects of motivation which play a pivotal role in
keeping the employee morale high, which will help mangers keep him
bonded with the organization. An attempt has been made to exp lore
various tools for motivating employees, which may be handy for the
practising managers in dealing with attrition. The theme of the proposed
book focuses on the well-established fact that motivated employees are
not only productive but also committed to staying on with an
organization.



 
 


 

 




 c




 
   

   



 


? ‘


Ajit Ka ma th, Chairman and Mana ging Dire cto r, Arch

Pharmalab s, mention s, "Pe rks, p ro mot ions, in cre ment s, et c,
have the ir o wn impo rtan ce in en su ring e mplo yee lo yalt y.
Ho we ver, the se are a given whe rein e mplo yee s t ry to alwa ys
look at imp ro ving their so cio -e cono mic statu s. Ou r
obse rvation, in the manuf actu ring wo rld, ha s been a high
degree of ave rsion to la tera l mo ve ment s in the sa me
organization. Job rotation ha s not bee n accepted b y people
at middle le ve l and so metime s se rve s as a de mot ivato r and
a signa l f or an e mplo yee to con sider an e xit. Training
prog ra ms a re ho we ve r appre ciated but again the choi ce of
the progra m is ve ry critica l sin ce a majo rit y of the time s
su ch p rog ra ms tend to de viate f ro m th e stated the me. "

 

Attrition is the biggest problem faced by BPOs these days. Attrition

rate in BPOs is more than the attrition rate in any other sector. It is
very important to control this attrition rate. Many retention schemes
are applied in BPOs for retention.
A single tool like training alone is not sufficient for employee retention.
The best results for employee retention can be achieved by applying
different tools strategically. Let us now learn about various strategies
which can boost successful employee retention in BPOs.

1. First know the cost. This is the most basic and initial part of the
retention process. A good retention plan needs all the facts.
The turnover cost includes cost of selection process, hiring,
induction, training, lost productivity, etc.

2. Hire from known sources like employee referrals through

trustworthy employees.



 
 


 

 




 c




 
   

   



 


3. Hire the right people. Retention starts with recruitment itself.
Identify the characteristics of the p eople you want to hire who fit
in organization¶s culture. To retain employees, the people who
are productive and are likely to stay for a longer time should be
hired.

4. Focus on employee orientation. It is the first impression that the

employee takes home with him. A proper welcome form the
management will encourage the employee to stay with the
organization.

5. Individual development. Develop career plans for employees.

Initiate mentorship and higher education programs to keep the
learning and development movin g.

6. Training for managers. An important factor that keeps the

employee in the organization is the manager. Employees need
a manager who manages them well. A manager should be a
good listener and motivator. Proper training should be given to
the managers.

7. Find the reason why employees are leaving. Conduct exit

interviews with the employees after 3-4 months of leaving the
job. This is because most of the employees would not like to
reveal the true reason of quitting the job as long as they are in
the organization and are associated with the job. The exit
interviews can be conducted online. Then the employees can
talk straight-from-the-shoulder.

8. Employee recognition. Star of the month, top performer, picture

on bulletin boards, appreciation cards and certifica tes, etc,
increase employee moral and confidence. This is a great way to
retain employees of a call center.



 
 


 

 

!


 c




 
   

   



 



‘ ?   ‘ 
 

Communication is a process in which a message is conveyed to the

receiver by the sender. The message may be or may not be in a
common format or language that both the sender and receiver
understand. So there is a need to encode and decode the message
in the process. Encoding and decoding also helps in the security of
the message. The process of communication is incomplete without
feedback.
Communication is the solution to almost everything in this world.
Same applies to employee retention also. Straight -from-the-shoulder
communication is what the employees need from their employers.
Employees look for organizations where communication and process
are transparent. Nothing is hidden and shared with the employees.



 
 


 

 

"


 c




 
   

   



 



There are 3 categories of employees:

3 A: Who will leave their current employer in 3 years of their

employment

3 B: Who have a probability of leaving their current employer in

next 3 years

3 C: Who will stay with their current employer in the next 3 years

 )"‘( These are the employees who lack communication with
their employers.
 )" ( These are the employees who have proper, well
structured communication with their employers.
Communication is also the way to win the employees trust in the
organization. Employees trust the employers who are friendly and
open to them. This trust leads to employee loyalty and finally
retention. Employers also feel that the immediate supervisors are the
most authenticated and trusted source of information for them. So
the organizations should hire managers who are active
communicators.

‘ 



3 Open door policy: Organizations should support open door

policies so that the employees feel comfortable and are able
to express their doubts and feeling to their employers.

3 Frequent meetings and Social gatherings

3 Emails, Newsletters, Intranet and many more

So there should be effective communication across the organization

and this communication should be two-way. Communication alone
can lead to unimaginable heights of employee retention.



 
 


 

 

#


 c




 
   

   



 


 
‘

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 in the organization for long period. .
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:

‘‘‘ ?‘

It is the biggest component of the compensation package. It is also

the most common factor of comparison among employees. It
includes

 Basic wage

 House rent allowance

 Dearness allowance

 City compensatory allowance



 
 


 

 




 c




 
   

   



 



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 organiz ation.
"#,&( Bonuses are usually given to the employees at the end of
the year or on festival to retain employee in the organization .
!"#"! 0 # 9&( It includes paid holida ys, leave travel
concession..
"#)  #! #4 &( Long term incentives include stock options
or stock grants. These incentives help retain employees in the
organization's start up stage.
 %* #&,#! ( 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.
‘9     #( It includes payments that an Employee gets after
he retires like EPF (Employee Provident Fund) etc.
&! %%# ",&!"$ #&"#( It may include employee assistance
programs (like psychological counseling, legal assistance etc),



 
 


 

 




 c




 
   

   



 


discounts on company products, use of a company cars, etc.

 ‘

An engaged employee is the one who:

3 Is enthusiastic and is inspired by his/her work

3 Is committed and is fascinated by his/her work

3 Cares about the future of the organization

3 Shares a strong emotional bond with the organization

3 Is loyal to the organization and the customers

3 Makes more money for the organization by putting in his

100% efforts

3 Is productive , ethical, accountable and dependable



 
 


 

 




 c




 
   

   



 



According to a study, the percentage of employees in an

organization who are actively engaged, not engaged and actively
disengaged in their jobs are 30%, 55%, 15% respectively.

Engaged employees need less focus and attention from managers as

they know their duties and perform their tasks efficiently. They set their
aim and meet the expectations. But sometimes, due to some reasons,
it hardly takes time for engaged employees to turn into disengaged
employees. At this point of time the managers need to identify the
symptoms of budding employee disengagement and take preventive
measures to limit it from growing further. This problem can be solved
by having a conversation with the employee and discussing the
problem that the employee is facing.

We are in the middle of a branding renaissance where the strategies

and tracks of the past no longer guarantee your company¶s future.
Success will favor organizations and business that integrate
annovation and their creativity into their corporate culture, their
product and services, and how they connect with their employees and
new recruits.

ISI¶s employee retention strategies are developed to assist HR



 
 


 

 




 c




 
   

   



 


managers by combining creative solutions with HR objectives. ISI can
enhance your company¶s brand experience in the eye of current and
potential employees and design an emotive bond between all parties.
At the end of the day, we all want to achieve grater harmony and more
happiness in the workplace and in our lives.

The major consequence for a company is loss of groomed talent and

the spectre of replacement which is a huge task, as a human asset
walks away with years of training, experience and the unique company
culture"


















 
 


 

 




 c




 
   

   



 


‘‘

‘  ‘ ‘‘

The research done on 1* 
,9$%"   #"#

 ) &‘#99 !4 # &&‘ / ,# 3>for that I select the 50
respondents in Pune city and asked them about 20 question regarding
Retention Strategy the questionnaires, which are filled by the
respondents in person.

0% "(‘) "9 &$"# #&

3"3 ‘) "9 "3"9 #
 &$"# #&  &$"# # ! #) 
1 18-30 yrs. 31 62%
2 30-45 yrs. 15 30%
3 45-60 yrs 4 8%

$*"3(‘) "9 &$"# #&

‘


>

>




 





 




 >





 
  
  >


 ‘
It is observed that 62% of employees are under 18-30 yrs , 30% of
employees are under 30-45 yrs, and 8% of employees are under 45 -60
yrs.of age.



The company should give chances to other age group also as the
may be more experienced than age group of 18 -30 yrs.



 
 


 

 




 c         

Tab%  3   3    %   

3 3    3   
 age
1 10000 %
10000-20000 12%
20000-30000 18%
A 30000 32 %

aph 3   3  espondentsofonth% ncoe 




>

>




 
 
 
 
>


 




 T TAT 
It i t t % f l i i t 000-10000 ,
12% f l i i t 10000 -20000, 18% f l
i i t 20000 -30000 % f l i i
t 30000


T
 

l i l t t i t l
i .

      

 c         

Tab%e o3@  o3of espondents hofacesgenderdscrnaton:

r3 o3 ender o3of n
scrnaton respondent ercentage
1 Y 39 8%
2 11 22%


raph o3@: o3ofrespondents hofacesgenderdscrnaton 

Y

 
    



 


 
>   
 




 

 T TAT 

It i t t 8% f l f i i i ti
22% f l t f i i i ti i
l /f l 


T 

l t t l ll t t t
l tf i i i ti .

      

 c




 
   

   



 


0% "3A("3"9 &$"# #&5*" &&9 5** -"0&( 

3"3
&9  "3"9 #

 &$"# # ! #) 
1 Yes 38 76%
2 No 12 24%

$*"3A("3"9 &$"# #&5*" &&9 5** -"0&( 


‰  
  

>



>




 










  

 ‘

It is observed that 76% of employees are satisfied with their job and
24% of employees are not satisfied their job.




The area where the employees are not satisfied should be given
Training and Motivation so that they can also be satisfied.



 
 


 

 

"


 c




 
   

   



 


0%  "3=( "3"9  &$"# #&  )#) *  &99  0 &
0 *4"(

3"3
99 *4", "3"9 #

  &$"# # ! #) 
1 Very Helpful 14 28%
2 Helpful To 23 46%
Moderate
3 Rude 2 4%
4 Some Extent 11 22%
$*"3=("3"9 &$"# #& )#)* &99 0 &
0 *4"(


      




>
















 








 !



      !



 ‘

It is observed that 28% of staff members are very helpful , 46% of staff
members are helpful to moderate,4% of staff members are rude and
22% of staff members are upto some extent 





The companies staff members who are the part of rude area should
help their employees and understand the problem area of their
collegues.



 
 


 

 

#


 c         

Tab%e oB:3 o3ofrespondentsforreasonsofattrtonrate: 

r3 o3 Attrton eason o3of n

 respondent ercentage
1 Pay Package 10 20%
2 ork oad 9 18%
3 areer Planning 8 16%
rgani ation 15 30%
ulture
5 t er 8 16%
raph o3B.:- o3ofrespondentsforreasonsofattrtonrate

÷


‘  

>  "
"
#
 


 
> 
    





 T TAT C

It i t t 20% f l l ft t f
-package,18 % f empl ees ad left t e company ecause of ork
load,16% of employees ad left t e company ecause of carre r
planning 30% of employees ad left t e company ecause of
organi ation culture and 16% of employees ad left t e organi ation
ecause of ot er reason


T   As many employees are leaving t e organi ation

ecause of organi ation culture so most attention must e paid to t at
area as ell as ot er area also. 

      

 c         

.Tab%e o3D o3ofrespondentsregardngtheep%oyees%eftn%ast
@years:

r3 o3 p%oyees%eft o3of n

respondent ercentage
1 ess than 25 8%
2 ess than 50 6 12%
3 ess than 100 2 %
ore than 250 38 6%
. raph o3D:

o3ofrespondentsregardngtheep%oyees%eftn%ast@years:

a 
 




$




 






  


 

 



     

 T TAT 

It is observed t at 8% of employees o left t e company in last 3 yrs

is less t an 25, 12% is less t an 50., % is less t an 100 and 6% are
more t an 250


T
 

Various activities such as Yoga raining, otivation should be provided

to employees so that the employees must retain in the company for
long period.

      

 c




 
   

   



 


0% "3E"3"9 &$"# #& )#)* $ 4 #4  &, &
2 #  " #*  $%" &( 

3"3  4 #4  "3"9 #

 &, &  &$"# # ! #) 
1 Training and 10 20%
Development
2 Increase Pay- 19 38%
Package
3 Promotion 6 12%
4 Reward System 15 30%
$* "3 E( "3 "9  &$"# #&  )#) *  $ 4 #4 
 &, &2 #  " #*  $%" &

›

 




% % &'
 ()  
 
* 
 &


 % 

 

+ 
 

 ‘

It is observed that to retain the employees for long time the company
has adopted 20% part of Training & Development activity,38% part of
Pay Package, 12% part of Promotion, and 30% part of Reward System. 





The above mentioned Preventive Measures should be taken to retain

the employees.



 
 


 

 




 c         

Tab%e o3F:3 o3ofrespondentsaboutther%teracy 

r3 o3 p%oyeesare o3of n

respondent ercentage
1 ndergraduate 6 12%
2 raduate 34 68%
3 Post raduate 10 20%
.

raph o3F:- o3ofrespondentsaboutther%teracy 

Ê 

" >"
>!
!
!
 " !
,

 
!

 -
 
" 
 



 T TAT -

It is observed that the employees in IB o. are 12% ndergraduate,

68% are raduate, and 20% are Post graduate 


T -

IB should give opportunities to Post raduates persons also.

      

 c         

Tab%e o3 : o3ofrespondentsaboutcha%%engng ork:

r3 o3 ha%%enges o3of n

respondent ercentage
1 Yes 34 68%
2 o 16 32%


raph o3 :- o3ofrespondentsaboutcha%%engng ork

 ‘a÷

 $
.
># 

 T TAT -

It is observed from the above that 68% employees ork is challenging

and 32% employees ork is not challenging 


T -

IB o. should provide challenging orks to their employees so that the

employees get chance to utili e their skill and knowledge to perform
better.

      

 c




 
   

   



 


0%  "3 (  " 3 "9  &$"# #& 0", &$#) ",#)
) # "#(

3"3 ‘&$ ",#) "3"9 #

 # "#  &$"# # ! #) 
1 Yes 45 90%
2 No 5 10%


$* "3 ( " 3 "9  &$"# #& 0", &$#) ",#)
) # "#(

‘
 

 


 


% 
&'
$

 ‘(

From the above it is observed that IBM aspires young generation only
at 90%.


(

IBM Co. should aspire young generation candidates as well as

experienced ones also.



 
 


 

 




 c         

Tab%e o3 : o3ofrespondents hoconductsextntervews: 

r3 o3 onductxt o3of n

ntervews respondent ercentage
1 Yes 26 52%
2 o 24 48%

raph o3 :- o3ofrespondentswhoconductsextntervews

aY   a ÷

 )

 (
(

(
) .
$(

(

(

>(
. 

 T TAT -

rom the above it is observed that the company conducts exit interview
but only at 52%.


T
-

IB o. should conduct exit interviews for every employees to know the

reason of leaving the company.

      

 c




 
   

   



 


0%  "3  (  " 3 "9  &$"# #& 5*" *#2& 5*!*   &*",%
0 $"4 (

3"3 ‘ # &"0  "3"9 #

$"4   &$"# # ! #) 
1 Work Culture 32 64%
2 Treatment with 12 24%
female
employees
3 Other 6 12%

$* "3 ( " 3 "9  &$"# #& 5*" *#2& 5*!*   &*",%
0 $"4 (

‘




  

>



>







*+/ ,,




!- %0


+0

 ‘

From the above table it is clear that the area which should be improved
for improvement of employees are 64% of work culture,24% treatment
with female employees and 12% other area.





The area of work culture should be improved in IBM.



 
 


 

 

!


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0%  "3 A(3  " 3 "9  &$"# #&  )#) 5"2 !,%,  0""&
!"#9 #! (

3"3 ?"2!,%,  "3"9 #

0""&  &$"# # ! #) 
!"#9 #! 
1 Yes 30 60%
2 No 20 40%

$* "3 A( " 3 "9  &$"# #&  )#) 5"2 !,%,  0""&
!"#9 #! (

£



  




>


. 

/0


 1  1 1

 ‘

It is observed from the above that 60% employees feels that the work
culture is strong and 40% of employees thinks that their work culture is
not strong.




IBM Co. must have familiar work culture so that the employees must
work freely and not under depression.




 
 


 

 

"


 c




 
   

   



 


 
G


3

The research done on the ³A STUDY OF EMPLOYEE RETENTION

STRATEGIES AND EFFECTIVENESS AT IBM , PUNE.´ All these
findings and conclusions are basically drawn from the questionnaires,
which are filled by the respondents in person.
1) The number of employees working age is between 18 -30 yrs. ,
which is high rate rather than age group then between 30 -60
yrs.
2) Most of the employees monthly income is above 30000
3) Most of the employees faces gender discrimination.
4) Most of the employees are satisfied with their job.
5) The staff members of IBM are helpful to moderate.
6) The high rate of reason of attrition is organization culture.
7) More than 250 employees have left the company in last 3 yrs.
8) Various types of preventive measures are taken to motivate
the employees.
9) Most of the employees are graduates.
10) Most of the employees thinks that their work is challenging.
11) IBM is eager to aspire young generation .





 
 


 

 

#


 c




 
   

   



 







The following conclusions are made from the data collected from the
structured questionnaire.:

The company is giving chance to not only to Post
Graduates candidates but also to Graduates and
Under Graduated candidates.

The monthly income to most of the employees is
above 30000 which seems to be the satisfaction
level of the candidates.
 The company is treating equally with the
employees by which many employees are not
facing the problem of gender discrim ination.
 The company is providing challenging work which
is very helpful to grow the employees future further.
 Most of the employees are satisfied with their job.
 The healthy work culture of the company boosts
the employees confidence.
 The staff members are helpful in the organization.














 
 


 

 




 c




 
   

   



 






: ‘


After analyzing the findings, the following suggestions have been

prepared. Great care has been taken in making these suggestions for
the improvement of employees¶s opinion. Company should focus on
following points

1) IBM Co. must have familiar work culture so that the

employees must work freely and not under depression.
2) The area of work culture should be improved in IBM.
3) IBM Co. should conduct exit interviews for ev ery
employees to know the reason of leaving the company.
4) IBM Co. should aspire young generation candidates as
well as experienced ones also
5) IBM Co. should provide challenging works to their
employees so that the employees get chance to utilize
their skill and knowledge to perform better.
6) The company should give chances to other age group
also as they may be more experienced than age group of
18-30 yrs. The company should provide a good pay scale
to retain the employees in company.
7) The companies staff members who are the part of rude
area should help their employees and understand the
problem area of their collegues.



 
 


 

 




 c




 
   

   



 


 ‘ 





3 K.ASHWATHAPPA , Human Resource Management , revised edition

combining part I and II, New Delhi , Published by :P Sharma
3 DIPAK KUMAR BHATACHARYA,
ND Edition Research
Methodology New Delhi , Published by Anurag Jain


 

3 http/www.citehr.com
3 http/www.employeeretention.com



 
 


 

 




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‘<


H

‘

 &$ ! 
:/ 

I,  ## 3
*, student of Business Administration &

Management from 33 ‘ 
   G
‘‘ 

/ ‘‘‘. I have been given the
dissertation project as curriculum part & my topic is as follows: -

1‘

     
  ‘
 ‘ 


 ‘  /
3>

Please co-operate with me to do this & fill the given form.

Thank You,

## 3
*,

(Please tick or where required)

 Name (Optional) :-

 Designation:-

 You belong to age group of ±

a)18-30 b) 30-45 c) 45-60

4) You are ±

a) Under Graduate c) Graduate d Post Graduate

b) Mention If Other«««««««««

5) Your monthly in come (in Rs.) -

a) More than 5000 & less than 10000

b) More than 10000 & less than 20000

c) Mo re than 20000 & less than 30000

d) More than 30000



 
 


 

 




 c




 
   

   



 


6) Are you married ±

a) Yes b) No

 Do you face discrimination on the basis of gender at your work

place?

a) Yes b) No

E Is there any biasness in promotion ±

a) Yes b) No

 What is the criterion for holding top position ±

a) Male/Female b) Knowledge/Skill

c) Seniority

; Is your work challenging ±

a) Yes b) No

Are you satisfied with your job±?

a) Yes b) No

 Does the healthy work culture of your organization boost your
confidence±

a) Yes b) No

  Do you face any kind of problems being male/female in this

organization ±

a) Yes b) No

A Would you like to aspire young generation in your company ±

a) Yes b) No



 
 


 

 




 c




 
   

   



 


= How are the staff members/bosses/management±

a) Very helpful c) Rude

b) Helpful to moderate d) Some extent

  Which area at your workplace needs to be improved ±

a) Work culture
b) Treatment with female employees
c) Mention if other ««««««««««««««««««

 Do you conduct exit interview ±

a) Yes b) No

E What are the reasons of attrition employees in your organization

during last year±

a) Pay-package b) Work load

c) Career planning

d) Organization culture e )Others

  Number of people/employee left in last 3 years ±

a) Less than 25 c) Less than 50

b) Less than 100 d) More than 25 0

; What preventive measure had been taken ±

a) Training & Development c) Increase pay -package

b) Promotion d) Reward system

 What you would like to suggest retaining employee ± If any

«««««««««««««««««««««««««««««««
«««««««««««««««««««««««««««««««
«««««««««««««««««««««««««««««««..

THANK YOU !