Employee Retention

Human Resource Management
Human Resource Management (HRM) is the strategic and coherent approach to the management of 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 exist and whether to use independent contractors or hire employees to fulfill these needs; recruit and train the best employees, ensure they are high performers; dealing with performance issues; and ensuring the personnel and management practices conform to various regulations. Activities also include managing the approach to employee benefits and compensation, employee records and personnel policies. Usually, small businesses (for-profit or nonprofit) have to carry out these activities themselves because they cannot 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 must have. 1

Employee Retention

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 HRrelated functions should be organized into large organizations, e.g., "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 to 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 have begun to consider the "HR Department" as playing a major role in staffing, training, and helping manage people so that the people and the organization are performing at maximum capability in a highly fulfilling manner.

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Employee Retention

Employee Retention

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, therefore, 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 the best employees ensures customer satisfaction, increased product sales, satisfied colleagues and reporting staff, effective succession planning, etc, 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. Intelligent employers always realize 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 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.

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Employee Retention

Retention Involves Five Major Things

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Employee Retention The Importance of Retaining Employees The challenge of keeping employees. The cost of replacing an employee is estimated at up to twice the individual’s annual salary and this does not even include the cost of lost knowledge. High turnover often leaves customers and employees in the lurch. 5 . and job searchers make decisions based on the sum of salary and benefits. Bringing employees up to speed takes even more time and when an organization is short-staffed. they often need to put in extra time to get the work done. This lack of continuity makes it hard for the organizations to meet their goals and serve customers well. departing employees take a great deal of knowledge with them. employee retention matters. Replacing employee costs money. Recruiting employees consumes a great deal of time and effort. simply put. There is not just one organization out there vying for qualified employees. its changing face has stumped managers and business owners alike Successful managers and business owners ask them these and other questions because. much of it futile.

Rewards are the extra perks you offer beyond the basics of respect and recognition that make it worth people’s while to work hard.” Many problems with retention and morale occur because management is not paying attention to people’s needs and reactions. or particular consideration given to people. they are still an . respect is the foundation of keeping your employees. to care. Respect is esteem. special regard. to go beyond the call of duty. As the pyramid shows. 6 While rewards represent the smallest portion of the retention equation. recognition. Recognition is defined as “special notice or attention” and “the act of perceiving clearly. any organization needs to implement each of the three R’s of employee retention: respect. Recognition and rewards will have little effect if you do not respect employees.Employee Retention The 3 R’s of Employee Retention To keep employees and keep their satisfaction levels high. and rewards. important one.

Furthermore. The magic truly is in the mix of the three. When implemented. but in general. an employer who implements the three R's will create a hard-to-leave workplace. one day at a time. the “3 R's” approach yields reduced turnover and the following benefits:  Increased productivity. What Makes Employee Leave? 7 . one known as having more to offer employees than other employers.  Reduced absenteeism. recognition and rewards seem hollow and have little effect – or they have negative effects. respect should be the largest component of your efforts. It becomes a hard-to-leave workplace – one with a waiting list of applicants for any position that becomes available – purposefully.Employee Retention You determine the precise methods you choose to implement the three R's. Without it.  A more pleasant work environment (for both employees and management/employer).  Improved profits.

compensation. seniors and management can make office environment unfriendly and difficult to work in.  New job offer: An attractive job offer which an employee thinks is good for him with respect to job responsibility. the employee feels de-motivated and loses interest in job  Lack of trust and support in coworkers. Unexpected job responsibilities lead to job dissatisfaction. Myths About Employee Morale Prevent Companies from Achieving Retention Success: 8 .  No growth opportunities: No or less learning and growth opportunities in the current job will make candidate’s job and career stagnant.  Job and person mismatch: A candidate may be fit to do a certain type of job which matches his personality.  Stress from overwork and work life imbalance: Job stress can lead to work life imbalance which ultimately many times lead to employee leaving the organization. If he is given a job which mismatches his personality.Employee Retention  Job is not what the employee expected to be: Sometimes the job responsibilities don’t come out to be same as expected by the candidates. Non-supportive coworkers. seniors and management: Trust is the most important factor that is required for an individual to stay in the job.  Compensation: Better compensation packages being offered by other companies may attract employees towards themselves.  Lack of appreciation: If the work is not appreciated by the supervisor. then he won’t be able to perform it and will try to find out reasons to leave the job.

These myths prevent the employer from successfully implementing the retention strategies. 9 . The employers should understand this and work out some other ways to make employees feel satisfied. job responsibilities. The basic purpose of these strategies should be to increase employee satisfaction. recognition. growth opportunities and friendly supervisors. There is no reason for the employee to hop jobs if he’s satisfied with the employer. Myth #3: Loyalty is dead Employees can be loyal but what they need is an employer for whom they can be loyal. meaningful responsibilities. management tries to retain them by offering more money. Myth # 4: People don’t want more responsibility. But sometimes these strategies are wrongly used due to which these strategies fail to achieve the desired results and myths came into existence. When employees leave. Myth #1: People most often leave a company for more pay. Myth #2: Incentives can increase productivity Incentives can surely increase productivity but not for long term what really glues employees to their work and organization is quality work.Employee Retention The process of retention is not as easy as it seems. The factors more important than money are job satisfaction. Money can make an employee stay in an organization but not for long. and individual’s skill development. respect. There are so many strategies used in retention of employees by the organizations. But instead they should try to figure out the main reason behind it.

In-fact employees feel more responsible if they are given extra responsibilities apart from their regular job. appreciation. career growth and development.” 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. The things actually required improving employee satisfaction like respect. An employer or management that reacts well to the employee’s ideas and suggestions is enough for the employees to be retained. Myth #5: Improving employee satisfaction is expensive. Myth #6: Employee satisfaction is “fluff. can’t be bought. This will induce a sense of pride in the employee and will improve the relationship between the management and the employee. etc. which are the key factors in company growth and sustainability. Many senior leaders express dismay about the quality and actions of their middle managers and front-line supervisors. Myth # 8: My company/industry/people are different! Is Attrition always bad? 10 . They are free of cost. Myth #7: Supervisors are the problem. Most of the time there is an perception that the reason for employee turnover is due to supervisors but in reality it’s due to lack of communication & teamwork between senior and employees.Employee Retention It is a myth that employees run from responsibilities.

This. New employees bring new ideas. Desirable attrition also includes termination of employees with whom the organization does not want to continue a relationship. the attrition in considered being healthy. This means if the ones who have left fall in the category of low performers. 2. is detrimental to organizational health. Attrition rates are considered to be beneficial in some ways: 1. It benefits the organization in the following ways:  It removes bottleneck in the progress of the company. approaches. in the long-term. 3. The term “healthy attrition” or “good attrition” signifies the importance of less productive employees voluntarily leaving the organization. abilities & attitudes which can keep the organization from becoming stagnant. 11 . If all employees stay in the same organization for a very long time.  It creates space for the entry of new talents. When certain employees leave. The only concern is how organizations differentiate “good attrition” from “bad attrition”. most of them will be at the top of their pay scale which will result in excessive manpower costs.Employee Retention Attrition is not bad always if it happens in a controlled manner. Some attrition is always desirable and necessary for organizational growth and development. 4. the company is benefited. There are also some people in the organization who have a negative and demoralizing influence on the work culture and team spirit. 5. whose continuation of service would have negatively impacted productivity and profitability of the company.

administers and manages the selected process based on defined and measurable performance criteria. Business process outsourcing (BPO) is the delegation of one or more IT-intensive business processes to an external provider that in turn owns. BPO is one of the fastest growing segments of the Information Technology Enabled Services (ITES) industry. BPO SECTOR INDUSTRY Business Process Outsourcing Business process outsourcing (BPO) is a broad term referring to outsourcing in all fields.” 12 . 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. A BPO differentiates itself by either putting in new technology or applying existing technology in a new way to improve a process.Employee Retention  It assists in evolving high performance teams.

Market Research. Content Management. and Enlink culminated into a merger of the two companies with compelling benefits for Lester's customers: highly competitive pricing. Their unrelenting commitment to their clients and their goals has resulted in a loyal customer base in the Information Services. back office and teleservice needs of their clients. Not-for Profit and Information Technology industries In 2003. Kentucky and Mumbai. cost-effective service and solutions in the areas of Information Compilation. developed a strategic partnership with Enlink. Market Research. Lester. located in Mumbai. Inc. Inc. Circulation Expansion. These benefits combined with Lester's proven commitment to quality and customer service. technical support and back-office processes. Enlink specializes in tele-services. now has 3 service delivery centers. Customer Service and Fundraising. The strategic partnership between Lester. India 13 . Enlink was among the first companies in India to offer Fortune 500 companies web-chat and e-mail based customer interaction services. Education. new services and expanded technology. They provide high quality. Inc. India. Publishing. located in Connecticut. positions Lester uniquely in the industry. Lester. specializing in fulfilling the informational.Employee Retention Lester Inc Lester Inc is a premier Business Process Outsourcing (BPO) service provider.

STM. live chat and phone. Back Office Service As organizations around the world strive to improve the quality of their processes while managing their bottom lines. Customer Interaction Service Customers are the most significant and precious assets of any company and in order to keep this asset intact and growing. Their customer interaction services are provided over the entire customer including customer acquisition. II. Knowledge Service Lester Inc. transaction support. they have developed several proprietary knowledge processes aimed at delivering consistent quality on content related issues that are subjective by nature.Employee Retention Different Types of Services Being Offered By the Company I. media companies and publishers of reference. it is vital to have a mechanism in place to respond to their needs. They. customer care. finance and legal content. at Lester provide a global BPO service delivery capability. Business Process Outsourcing has become the new imperative. and customer helpdesk and after-sales service 14 . provides high performance knowledge services and solutions to information. Lester Inc provides a complete suite of customer interaction services across all mediums of communication including email. Lester's capabilities span the following three categories:  Simple Mechanical Processes  Rule Based Processes  Decision Based Processes III. In order to maximize value for their clients.

an offshore solution or a blended solution.Employee Retention Advantages of the Company Lester has grown and prospered in today's highly competitive environment. Their facility in India is ISO 9000 certified. It is a top-down and bottoms up focus on everything they do. Their customers decide what makes the best sense. they have hundreds of customers that have been with them for over 20 years  Onshore and offshore model They offer their customers flexibility with .  Experienced management team Collectively their management team has over 100 years of experience in technology and service based businesses. employees.an onshore solution.  Relentless focus on quality They breathe quality day-in and day-out.  Core value system based on integrity They value their commitments to their customers. and vendors 15 . What sets us apart from others is their  Proven track record Because they deliver.

com careers@lesterusa.Employee Retention Offices Headquarters: 19 Business Park Drive. Connecticut CT 0640. TTC Indl. Suite A Wurtland. Area Turbhe. Branford. 46 Birdhall Lane SK3 OX England Tel: 44 161 428 0906 Fax: 44 161 428 0907 Email Addresses: General inquiries: Sales: Careers: information@lesterusa. Kentucky KY 41144. India Tel: 91-22-2767-0092 Fax: 91-22-2767-0161 United Kingdom: Europa Business Park Unit 46F4 Bldg. USA Tel: 1-203-488-5265 Fax: 1-203-483-0408 US Operation: 200 Harris Road.com 16 . Navi Mumbai 400 705. USA Tel: 1-606-833-0102 Fax: 1-606-833-5622 Indian Operation: C-64.com sales@lesterusa.

 Good work environment. this is the industry where reference checks are hardly carried out and very often people don't even specify there exact age. a person with any graduation can join any of the BPO companies.  Could find nothing better to do. BPO for HR Practices The BPO company values/operating principles are broken down into behavioral indicators that are observed and measured on a regular basis. There is also an ongoing emphasis on training needs assessment and people development.  Flexibility of time. Again.  Education level doesn't matter. which in turn linked to the personal effectiveness parameters in an individual's performance review. Some BPO's like to take people with MBA but then the specialization of the individual hardly makes any difference.  Attractive life style. 17 .Employee Retention Why People Prefer to Join BPO? In general.  Transport facility. Here are a few reasons as to why people prefer to join a company.  Could not get a better job.  Good Benefits.

Group Medi-claim Insurance Scheme: This insurance scheme is to provide adequate insurance coverage of employees for expenses related to hospitalization due to illness. they are as listed below. 5. chess tables and coffee 18 . Cafeteria. The purpose is to provide to the employees to lead a more comfortable work life balance. 3. disease or injury or pregnancy in case of female employees or spouse of male employees. ATM and Concierge facilities: The recreation facilities include pool tables. the companies avail their employees a host of other benefits. Subsidized Food and Transportation: The organizations provide transportation facility to all the employees from home till office at subsidized rates. Recreation. Personal Accident Insurance Scheme: This scheme is to provide adequate insurance coverage for Hospitalization expenses arising out of injuries sustained in an accident. 1. 4.Employee Retention Employee Benefits Provided by the Company Apart from the legal and mandatory benefits such as provident fund and gratuity. Company Leased Accommodation: The companies provide shared accommodation for all the out station employees. The lunch provided is also subsidized. 2. in fact the company also undertakes to pay electricity/water bills as well as the Society charges for the shared accommodation.

9. For employees with above 40 years of age. personal trainers and showers at facilities. The employee is responsible for the maintenance and safeguarding of the asset. 10. Loans: Employees are provided with financial assistance in case of a medical emergency. 6. and purchase of books subject. 19 .Employee Retention bars. Educational Benefits: Many BPO companies have this policy to develop the personality and knowledge level of their employees and hence reimburse the expenses incurred towards tuition fees. the medical check-up can be done once a year. And. Air tickets etc 7. Cellular Phone / Laptop: Cellular phone and / or Laptop are provided to the employees on the basis of business need. Companies also have well equipped gyms. the new recruits are provided with interest free loans to assist them in their initial settlement at the work location. 8. examination fees. and/or other management qualification at India's top most Business Schools. Personal Health Care (Regular medical check-ups): The Company provides the facility for extensive health check-up. 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. for pursuing MBA. Employees are also provided with financial assistance at the time of their wedding.

Regular get-together and other cultural programs: The companies organizes cultural program as and when possible but most of the times. The parameters for calculation are process performance i.The factors on which Flexi time is allowed to an employee include: Child or Parent care. 2000/. in which all the employees are given an opportunity to display their talents in dramatics as well as in sports 15.Employee Stock Option Plan 20 . Performance-based incentives: In many BPO companies they have plans for. accuracy and productivity of each process 12.Employee Retention 11. yearly benefits and income tax payable 14. 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. speed. Employee Referral Scheme: In several companies employee referral scheme is implemented to encourage employees to refer friends and relatives for employment in the organization.e.. Health situation.to Rs. performance based incentive scheme. Maternity. once in a quarter. 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.based on their level in the organization. 7000/. 17. Wedding Day Gift: Employee is given a gift voucher of Rs. 16. Formal education program 13.

 For higher education.  Misguidance by the company.  For higher salary.  No growth opportunity/lack of promotion. I have been able to list out following reasons for a BPO professional to change his/her job.  Uneasy relationship with peers or managers.  No personal life. then what makes them change the company/industry? Is it only MONEY that matters or is there anything else as well? After sitting through exitinterviews and analyzing the trend. Challenges for an HR Professional  Brand Equity:  Standard pre-job training:  Benchmarks:  Lack of focused training and certifications 21 .  Policies and procedures are not conducive. when there are so many privileges for the employees.  Physical strains.Employee Retention Why people leave? When there are so many benefits associated with the industry.

Planned redundancies are reported and explained separately if relevant for Employee Turnover The attrition rate has always been a sensitive issue for all organizations. that are included in Employee Turnover.Employee Retention Employee Turnover Attrition rates in the country's business process outsourcing (BPO) industry are about 8 percent higher than the national average. 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. The report blames lower and less attractive short term bonuses--worth about 4 percent of total pay for workers compared to 10 percent generally. Annual staff turnover stands at 24 percent. The number of leavers. ahead of the country's average of 16 percent. retirement etc). Calculating employee turnover rate is not that simple as it seems to be. Employee Turnover is the number of permanent employees leaving the company within the reported period versus the number of actual Active Permanent employees on the last day of the previous reported period (physical headcount). according to a report by global consulting firm the Hay Group. calculating attrition rate is not only about devising a mathematical formula. only includes natural turnover (resignations. termination. Moreover. it does not reflect any redundancies. It also has to take into account the root of the problem by going back to the hiring stage. 22 .

Employee Retention Handling Non-Engaged Employees Not all the employees are engaged in an organization. These non engaged employees want themselves to be spoon fed in terms of work targets and are rarely seen to take initiatives. These employees lower the bar for themselves by doing the least amount of work necessary. They are not just indifferent to company goals and mission but also express their mistrust and animosity. They hang back and do the minimum because they believe their contribution hardly counts. QUESTION: How is your relationship with the Reporting Manager? 23 . There are those who are not engaged and tend to concentrate on tasks other than the goals and outcomes they are expected to accomplish. They focus on accomplishing a task rather than achieving an outcome. Actively disengaged employees aren't just unhappy at work. and their potential is not being tapped. They spread their discontentment to every other employee and undermine the work of others. They often feel this way because they don't have productive relationships with their managers or with their coworkers. Employees who are not engaged tend to feel their contributions are being overlooked.

13% rated Poor relation with Manager. QUESTION: Is it important that your co-workers & supervisors appreciate of your work? 24 . while remaining equally contributed as Excellent & Worst QUESTION: Do you have Rewards & recognition on your achievements? Interpretation: 83% of the respondents agreed that they have been rewarded on their achievements but only 17% stated that their work is been recognized. 33% were having very Good relation.Employee Retention Interpretation: 34% stated Good relation with the Manager.

equipments & facilities provided by the company? Interpretation: 12% rated as Very good. 6% rated as Excellent & Good each. while remaining 7% disagreed. QUESTIONS: Does the retention bonus have any impact on the motivation levels & performance of an associate? 25 .Employee Retention Interpretation: 93% of the population stated that appreciation is an important factor. while 4% of the samples rated as poor n the remaining 2% were unhappy with the facilities. QUESTION: How do you rate infrastructure.

Employee Retention Interpretation: 6% of the sample size believes that retention bonus does not have any impact on the motivation levels & performance of an associate. while others disagree. QUESTION: Does fun at work have any impact on Motivations levels of employees? Interpretation: 60% of the employees sagree with the fact that Fun at work helps in motivating the staff. 24% believes that it is necessary. QUESTION: Do you feel that the company provides opportunities for your growth & development & also an opportunity to share your ideas at work? 26 .

while remaining 50% stated vice-versa. 27 .Employee Retention Interpretation: 50% of the respondents stated that they have been given the opportunities.

the company is not faced with the problem of poaching. better salaries. 28 . They cope with attrition by providing training. Employee turnover = No. etc. reward and Recognition are our main retention strategies. etc. The method of calculating employee turnover is number of the employees at the beginning of year divided by the number of employees at the closing of year multiplied by 100.e. unhealthy competition. they have policies in place to deter poaching. Also. Also. However. The difficulties with which the organization is faced in retaining employees are high salaries of competitors. i. BPO motivates its employees with the concept of better growth. of employees at the end of year x 100 After implementing various initiatives that the company has so far. the attrition rate has come down. the middle level of the organizational hierarchy results in leaving their jobs due to various reasons. etc. personal development through training. There is no different subdepartment within the HR department dedicated to employee retention. of employees at beginning of year No. Both the HR department and the concerned Business Head are the ones who have the responsibility of retaining the employees. personal development.Employee Retention Findings The reasons for attrition are largely attributed to competitors.

praise or acknowledgement for his work in the last seven days?  Does the supervisors or colleagues care about the employee as a person?  Is the employee encouraged for his development at work?  Does employee’s opinion matters or counted?  Does the employee feel that his work is important for the organization?  Are your fellow employees doing quality work or are committed to do so?  Does the employee have a best friend at work? 10 Factors that Affect Employee Retention 29 . Here are a few questions which can be asked to the employees to measure employee engagement levels in the organization. the organization should know how engaged their employee are. tools. information) to do his work right?  Does the employee find opportunities at work to do what he is best to do?  Does the employee get any recognition.Employee Retention How to Measure Employee Engagement In order to increase employee retention. 10 Questions to measure employee engagement  Does the employee know the organization’s expectations from him?  Does the employee have all the resources (material.

Offer a competitive compensation package. 30 . 4. 1. Some employees enjoy the extra money that accompanies overtime hours. Beware of burnout. The package should be revised by studying what other companies and organizations are offering in terms of salary and benefits. Shorten the feedback loop. Do not wait for an annual performance evaluation to come due to give feedback on how an employee is performing. 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.Employee Retention Most managers understand the importance of employee retention and its impact on the overall health and vitality of an organization. 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. while others would rather spend their time with their families or doing other activities they enjoy 3. Most team members enjoy frequent feedback about how they are performing. 5. Balance work and personal life. Stress the importance of balancing work and one's personal life. Provide opportunities for growth and development.. 2.

Employee Recognition Increases Retention. 10. The ability to provide input and be taken seriously. This can also provide work variety and helps to break up the everyday grind of work. and abilities. Managers are very busy . 8. 31 . but it is crucial that managers and supervisors take the time get to know the team members who work under them. Management must take the time to get to know team members..Employee Retention 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. 7. Provide the tools and training an employee needs to succeed. skills. Everybody has opinions and ideas. some are better than others. Providing a team member with the tools and training he/she needs to be successful shows a commitment and investment in that employee and will encourage the team member to stay with the organization. However every team member wants to feel that their input is welcome and will be taken seriously without ridicule or condescension. Make use of a team member's talents.everybody is busy. 9. 6. Utilizing a team member's talents 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. Nobody wants to feel like just another spoke in a big wheel. Never threaten a team member's job or income.

and for good reason. or an engraved gift are excellent rewards for an employee who has excelled.  37% indicated their supervisor failed to give credit when due. The following is a short list of simple ways to recognize team members for a job well done and improve retention in your organization.  Movie tickets.  27% report their supervisor made negative comments about them to other employees or managers.  31% said their supervisor gave them the "silent treatment" during the past year. gift certificates.  39% of workers said their supervisor failed to keep promises.  Recognize the team member's contribution in front of members of management.not their jobs.Employee Retention Employee recognition can be as simple or as extravagant as one desire. that employees leave their bosses .  24% indicated their boss invaded their privacy. 32 .  Recognize loyalty and exceeding expectations Study Suggests Employees Leave Bosses.  A simple “thank you” or “nice job” given in regular frequency can significantly boost team morale. Not Jobs It has been said more than once. A Florida State University study scheduled for full release in the fall 2007 issue of Leadership Quarterly confirms this.

Employee Retention RETENTION SUCCESS MANTRA’S RETENTION SUCCESS MANTRA’S 33 .

benefits package. Steps can be taken to avoid similar reasons from occurring in the case of others. Use psychometric tests to get people who can work at night and handle the monotony. If a key employee resigns. where opportunities are few. • • • • Offer an attractive. competitive. it is impossible to scrap problems totally. later. Keep these promises. in similar positions. Make clear of performance enhanced incentives and other benefits. At the time of Recruitment Select the right people through competency screening. conduct exit interviews to know the reasons for resignations. BPO’s can set up offices in smaller towns. and along with the management need to evolve strategies to retain employees at all levels. or recruit from there. these companies need to develop innovative ways to tackle their problems. If possible. What can be done? Though. 34 • . Since the every organization is unique. 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.Employee Retention Solution to the Problem Finding the Cause of Attrition Conduct a survey among employees to find the reasons for attrition. there are certain ways by which BPO managements can tackle attrition. Human Resources department of companies must address these issues.

 Implement competency models. performance appraisal and potential appraisal. the way it should be done.  If needed. let the employee know at the earliest  The quality of the supervision an employee receives is critical to employee retention. If there are changes to any of these. its importance. must be made clear. Night shifts  Have doctors to advise them about health problems and the ways and means to deal with them. who have night shifts talk to BPO employees about their experiences. Make work and work place cheerful and fun-filled as possible. Frequent employee complaints arise on this issue.  Organize programs where people from other professions.. training. with HR processes like selection & recruitments. Provide dietary advice: Do’s and don’ts. People want to enjoy their work. 35 . Giving periodical raise in salary or position helps to retain staff. which are well integrated. recognized and appreciated.  Provide the employees a stress free work environment.  Employees must feel rewarded. provide special lights in the office/workplace to ensure that their bodies get sufficient vitamin D. maximum time that can be allotted to complete it etc.Employee Retention At the office  An employee’s work must be communicated to him clearly and thoroughly. Help them to maintain their health. The details of the job.

etc) Informal training (Mentors.) Formal training sessions (Class room. follow up) Cost of termination time Cost spent in administrative procedures Increased unemployment (based on the Department of Labor) Cost of vacancy Overtime Labor Wages Cost of substitution Job advertising Pre-employment administration Cost of new hires’ interviews Staff cost Cost of training Stationary cost (Books. interview. training manuals. etc. lab.) TOTAL TURNOVER COST PER EMPLOYEE _______ _______ _______ _______ _______ _______ _______ _______ _______ _______ _______ _______ _______ _______ _______ _______ 36 . etc. etc.) Employee performance differential Difference in performance (Productivity.Employee Retention How To Calculate Labour Turnover Employee Detachment Cost Exit interview (One Hour: Preparation. learning.

Every minute of every day that the employee retention problems persist. energy.  Identify the reasons why an employee leaves before they are ever hired. • Communicate openly and clearly about what's expected of employees at every level .  Determine growth opportunities for team members and develop customized training that will improve performance. .  Improve communication and morale . 37 . • Indulge in employee deployment if he feels he is not on the right job. challenges and easy-to-understand company financial information.Employee Retention How to Reduce Employee Turnover It is widely understood that time is money to any organization. Provide an open environment. etc.two key elements that affect employee retention. the organization is losing valuable time.  Select and hire great employees. priorities. success measures. repetitive tasks can cause burn out and boredom over time • Conduct periodic meetings with employees to communicate good news. How to Cope Up With Non Engaged Employees • Provide variety: Tedious.your vision. who are well fit for the job and the organizational culture.  Identify top performing team members and develop strategies to ensure they stay with your organization. and resources.

Proper training should be given to the managers. 38 . they can surely achieve the goal. there could be a separate department for employee retention within the realm of the HR department. If the company goes with this aim. As a suggestion.Employee Retention Suggestions To improve employee retention. Attrition rates in BPO’s are alarmingly high. The constant endeavor of this 'sub-department' should be to bring down employee turnover rate on an ongoing basis. It is the first impression that the employee takes home with him. An important factor that keeps the employee in the organization is the manager. so immediate solutions need to be derived and acted upon in order to check the high attrition rates and retain the employees.  Focus on employee orientation. Employees need a manager who manages them well. A proper welcome form the management will encourage the employee to stay with the organization. one needs to understand what they value the most.  Training for managers. A manager should be a good listener and motivator.  Right reason as to why the employees leave the organization must be found out and addressed so as to prevent such a turnover.  Hire from known sources like employee referrals through trustworthy employees.

“What do people like about working here? What would you like changed to make your company a better place to work? 39 . 2) Money is important but it is not the only reason people stay with an organization: If your compensation plan is in the top 2030% of your industry. How do you get your employees to "fall in love" with the organization and let them “stay in love” with the organization? This is a great question. A sound retention strategy thus becomes essential for any organization to be productive over time and should be treated as an important part of their hiring strategy by attracting the best candidates who know of their track record for caring for employees. Ask. 3) Employee committees to help develop retention strategies are a very effective strategy: Get their input. 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. then money will often not be the reason why people leave. Your top 20-25% should be courted as you would court and then service your top customers.Employee Retention 10 Ways to Retain Your Employee Retaining key personnel is critical to long-term success of any organization.

Know the job. 9) Remember. 6) Retention is much more effective when you put the right person into the right job. Do your best to offer the ones your employees need? Consider offering the best of the rest. the "fun factor" is very important to many employees. 10) Know the trends in benefit packages. Research shows 46% of people leave their jobs because they feel unappreciated.Employee Retention 4) Get your employees to "fall in love" with your organization: Communicate your vision in a compelling way. 8) Recognition. 40 . Show everyone the role they have to contribute to this vision. 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. Know the employee and their motivations 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. is a powerful retention strategy: It does not have to cost a lot. Help create "ownership" in your employees. 5) Strong retention strategies become strong recruiting advantages. in various forms. Create opportunities for people to connect with each other for support and to improve communication in work team.

Employee Retention Employee Retention Strategies 41 .

et al. Recognition can be made explicit by providing awards like best employee of the month or punctuality award. Various recreational programs should be arranged. they need to know that their opinions matter and that management is 100% interested in their input.  Employee Reward Program: A positive recognition for work boosts the motivational levels of employees.  Performance Based Bonus: A provision of performance linked bonus should be made wherein an employee is able to relate his performance with the company profits and hence will work hard. Most importantly.Employee Retention Ways to Increase Employee Retention  Open Communication: Open communication tends to keep employees informed on key issues.  Recreation facilities: Recreational facilities help in keeping employees away from stress factors. 42 .  Career Development Program: Organizations should offer various technical certification courses which will help employee in enhancing his knowledge. This bonus should strictly be productivity based. sports activities. They may include taking employees to trips annually or bi-annually.  Gifts at Some Occasions: Giving out some gifts at the time of one or two festivals to the employees making them feel good and understand that the management is concerned about them. celebrating anniversaries.

strategies. most of the companies outrightly denied disclosing any of the details like the company's turnover. there were no problems faced while carrying out the project study. The only problems faced were when there were no contacts and/or appointments. attrition rate and reasons.Employee Retention LIMITATIONS As such. and their retention policies and procedures and the members at the HR department were not willing either to give detailed information on the same. When contacted. 43 .

44 . Before implementing targeted solutions to improve retention. do not act on the most important areas affecting an employee’s intention to leave. managers need to determine which factors drive retention in their organization as well as the meaning of those drivers. the meaning attached to specific drivers (e. individual development and career advancement stand out as both frequent and critical key drivers of any employee’s intent to leave. Across the organizations. the composition and ordering of specific retention key drivers is unique to each company.Employee Retention CONCLUSIONS Retention programs often fail because managers do not know and. While the general conclusions across organizations may appear similar. opportunities for personal growth and development) and.g. at a more micro level. the actions to be taken may vary by organization. In addition.. therefore. therefore.

com  www.V.com  www.employee-retention-hq.com  www.employeeretentionconsulting.employeeretention.com  www.Employee Retention BIBLIOGRAPHY Websites  www.com  www.com  www.employeeretentionstrategies. Tata McGraw. Himalaya Publishing House. 45 .com  www. Mamoria and S. (1997) Human Resource and Personnel Management.Hill.  C.highretention. Gankar.B.retentionbenchmarking.managementparadise. Ashwathappa.com Books:  K.citehr. (2008) Human Resource Management.

Is it important that appreciation for your work by our co- workers & supervisors? o Yes o No 4. transport & other corporate services)? o Yes o No 5. How is your relation with the Reporting Manager? o Excellent o Very good o Good o Poor o Worst 2. Are the facilities provided by the company good(cafeteria. Do you have opportunity to share your ideas at work? o Yes o No 46 . Do you have Rewards & recognition on your achievements? o Yes o No 3.Employee Retention ANNEXURE 1.

If you want to leave the organization. Does the retention bonus have any impact on the motivation levels & performance of an associate? o Yes o No 9. How do you rate the infrastructure & equipment provided? o Excellent o Very good o Good o Poor o Worst 7.Employee Retention 6. what would be the reason? o Marriage o Team fitment o Career opportunity 47 . Do you have any training programs conducted? o Yes o No 10. Does fun at work have any impact on Motivations levels of employees? o Yes o No 8.

Do you feel that the company provides opportunities for your growth & development? o Yes o No 12.Did any company policies or procedures make your job more difficult? o Yes o No 48 .Employee Retention o Others 11.

Employee Retention 49 .