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Topic: Strategies for Retaining of Employees

Abstract

From the study carried out on gives the research and studies related to

employee turnover and then analyzing the practices that are performed in an

actual business organization. The organization that will be studied in the

context of this research is Mobilink Pakistan, which is currently facing the employee

turnover problems. Many organizations are significantly affecting the

financial performance of an organization. It includes recruitment, selection,

and training of new people. Indirect include such things as increased

workloads and overtime expenses for coworkers, as well as reduced

productivity associated with low employee morale.

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Acknowledgment

Initially, we would like to thank to All Mighty Allah. We am

extremely gratified to our spectacular instructor Miss. Sabeen

Khan that she has given as an opportunity to exertion on this

report and We have accomplish my superlative target. We are

also very grateful to my parents, friends, and relatives who

assist us a lot during this report.

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Dedication

We would like to dedicate this report to Miss. Sabeen

khan

To Our parents, our teachers and our friends who lend

a hand a lot in the creation Report.

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TABLE OF CONTENTS
CHAPTER 1: INTRODUCTION....................................................................................1
CHAPTER 2: INDUSTRY OVERVIEW.....................................................................13
CHAPTER 3: BROAD PROBLEM AREA..................................................................16
CHAPTER 4: THEORETICAL FRAME WORK......................................................18
CHAPTER 5: RESULTS AND EFFECTS ON DEPENDENT VARIABLE …
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INTRODUCTION

In Pakistan, the Pakistan Mobile communications Ltd (“Mobilink”) started its

operations in 1994 and, until early 2001, had a market share of 40%. In

April 2001, OTH took over management control of the company. As the

market leader, Mobilink serves more than 31.5 million subscribers,

representing a market share of 38.5% (as of March 2008).

OTH(Orascom Telecom) has positioned itself as a leader in the region for

its diverse GSM operations with various GSM support and Internet

operations. One of OTH's main strategies is to create its own non- GSM
subsidiaries to act as a backbone of support for its regional GSM

operations. OTH has achieved this by dedicating financial, technical and

management resources for supporting its subsidiaries. This includes network

support and installation of GSM operations, equipment procurement, handset

procurement and distribution companies, Value Added Services, and

Internet operations. OTH is dedicated to providing the best quality services

to its customers, value to shareholders and a dynamic working environment

for its nearly 20,000 employees.

OTH established a strong presence in the GSM Association (the world's

leading wireless industry representative body) only five years after its

inception. OTH's Chairman and CEO, Mr. Naguib Sawiris, was selected to

join the GSM Association's CEO Board in 2002. OTH's stocks are traded on

the Cairo and Alexandria Stock Exchange (CASE), (under the symbol

ORTE.CA, ORAT EY) and on the London Stock Exchange (where its GDR is

traded under the symbol ORTEq.L, OTLD LI).

OTH is dedicated to provide the best quality services to its customers,

value to shareholders, and a dynamic working environment for its nearly

11,000 employees.

Mobilink's Vision

"To be the leading Telecommunication Services Provider in Pakistan by

offering innovative Communication solutions for our Customers while

exceeding Shareholder value & Employee Expectations"


SWOT ANALYSIS OF MOBILINK

STRENGTHS

Market Share

Mobilink is pioneer of GSM technology in Pakistan and is market

leader in mobile communication. Mobilink has got huge market share of

36%.It portfolio remain in stars for last 5 years or so. Mobilink earned

about Rs. 80 billion revenues, which is 24% high profitability it helps to

expand the business.

Skilled and Energetic Workforce

Mobilink have skilled, energetic and educated professional with vast

experience. Most of management staff has MBA qualification. Mobilink

management emphasis on blend of young professional with experienced

staff.

Goodwill

No doubt, Packages occupies a respectable and trustable image and

market reputation, serving as a valuable asset for the Mobilink. It has

good repute and people first choice always lies with Mobilink. They have

good name and brand image in market. Jazz is one

of most popular brands in Pakistan.

Quality Improvement

Mobilink always intended to improve its quality of its services. It


has gain ISO certification. They are always in the process of generating

something new.

Enhanced Network

Mobilink has very large network with more than 5000000 connections. It

has expanded its network with the inclusion of more networks. Now

Mobilink has six codes 300, 301,302, 306, 307, and 308.

Large distribution network

It has large distribution network with franchises, retail outlet, stores

and small shops. It has more than 200 franchises; more than 700

retail outlets .Mobilink connections are available anywhere in Pakistan.

Maximum geographic coverage

It is largest network in Pakistan with the coverage of more than 315 cities

and towns. At the same time, Mobilink places high importance to its

coverage, which is why we cover you in 10,000+ cities and towns nationwide

as well as over 130 countries on international roaming service.. Mobilink who

added 1,817 cell sites, its total sites stand at 7,339 which is the highest

among all

Trustworthy company

It is trust worthy company. When new connection buyer makes

decision, the key influencer and opinion leaders influence the decision

toward their favorite and trust worthy Mobilink.

Training

In Mobilink employees are given necessary and comprehensive


orientation before starting a job. Moreover other training programs

including on-the-job and off-the-job are also arranged to keep the skills

of employees up-to-date.

Advance Technology

Mobilink is pioneer of GSM technology in Pakistan. Previously they were

using AMPS technology. They are first in Pakistan to provide

International Roaming. They also do roaming with Thuraya Satellite.

WEAKNESSES

Network Unavailability

Most of time network remain busy. Sometimes first time call gets no

response.

Government Laws and Penalties

Mobilink has continuously become the victim of government penalties. It

has been fined many times in response to consumer complaints and that

had great impact on good will of company.

Wait & Watch Policy

Policies of Mobilink in recent are driven by competitors. With the emergence

of big giant rivals, Mobilink has adopted policies of wait and watch.

High Prices

Mobilink adopted the skimming price policy. People feel that Mobilink had

taken more in the past than they deserve.


OPPORTUNITIES

Large Market

Pakistan is huge market for telecom sector. The total size of the

mobile market is approximately 88 million in a country of 144 million

people. That difference of 56 million suggests that there is a lot potential

left in the market. There exists a considerable future growth potential in

the cellular sector.

Better Services at low price

People are becoming conscious the services provided at the cost. The one with better

services at low cost will win the race.

New Technologies like GPRS

New technologies like GPRS are opportunities. No GPRS means

that it will lose customer who also want facility of GPRS. Also other

technologies are emerging and becoming the part of mobile service.

TV Cable service and internet facilities are becoming essential part

of mobile services.

Unlimited Validity and Flexible Packages

Currently Mobilink is not providing life time validity of Jazz connection.

Supportive Policies

Policies in accordance with the existing structure and future market

intensity and demand could be made. Brave policies and strong decision will

get competitive advantage.


THREATS

Domestic and Foreign Competition

Mobilink has been facing intense domestic competition with

Telenor,Warid, Ufone, PaktelChina, and wireless local loop and PTCL fixed

connections. Now big multinational firms are targeting Pakistan like

Vodafone. These are major threat to market leader position of Mobilink.

Government Laws and Penalties

Government laws and regulation constitute a major threat for Mobilink.

Government laws and penalties are havoc for the company.

Economic Conditions and Inflation Rate

Economy of Pakistan is on up and down situation. Inflation rate is increasing

very speedily.
Industry Analysis

Cellular industry has not become completely mature. It is stable in Pakistan.

Government of Pakistan is promoting more private companies to step in

this field. There are more facilities than regulations. The growth of

cellular industry is tremendous. Mobil sector in Pakistan like other world is

segmented by prepaid and postpaid.

Training

The purpose of training is to upgrade the capabilities and

efficiency of all those employees and prepare them for more

responsible positions in future. Sales people are provided training to

conduct sales and sales programs. Employee is given training twicein year.

Also sales manager participate in the workshops that are held at regular

basis.

To strengthen management and professional teams at all organizational

levels. Training in Mobilink GSM upgrades capabilities of employees,

provides guidance and individual counseling.

Territories Designing

Territories are design on the basis where Mobilink functions. For

sales force nearby territories are design so that they could work at

their nearby place and also where the intensity in the market is great.

Compensation and Evaluation

Employees on the basis of performance are compensated and evaluated.

Employee of the Month is a way to give ranking to employee who


have done remarkably well in their field; of course bonus is also given to

them.

COMPETITOR ANALYSIS

Mobilink started its operation in 1994 as a third entrant in the market,

while Paktel is already operating since 1991 and now working as zong

and had acquired substantial market penetration. Despite the re-

launch of Ufone, the main competitor, Mobilink has maintained its

momentum of growth. All this has been possible due to inter-departmental

synergy and strengthening of Mobilink’s brands

MAJOR COMPETITORS
➢ TELENOR

➢ WARID

➢ UFONE

➢ ZONG

The competitors are threatening at two aspects. The competitors are less

costly. They are providing airtime and connections at cost lower than

Mobilink. Competitors are introducing the flexible packages. Lifet i m e

connections are launched and scratch cards with lowest sum of money are

introduced that look very attracting.

Other aspect is quality. The quality of their service is undoubted. They claim

pure sound and first time call response. The competitors are thinking to

launch door-to-door campaign in addition to their advertisement. They


will be giving their SIMS free for institutions to introduce

themselves. The competitors are equipped with advanced technology. The

upcoming multinational competitors are big giant firm with huge financial

resources. Also they have large network around world and vast experience in

telecom sector.

INDUSTRY OVERVIEW
Since the inception of Pakistan, basic telecom services were being provided

by a monopolist, previously called as Telephone and Telegraph

department (T&T). The department was being run by the government and

played multiple roles as regulator, policy maker, and operator and service

provider in the country. The T& T department was later converted into a

corporation. Although the corporation was earning huge profits from the

services, it was re-investing the same profits into the sector for the

provision of more telecom service but the investment was not enough.

Further, with the technological advancement, more and more telecom

services were becoming available but there was not enough money

available with the corporation to install new telecom systems for the

provision of modern services. Resultantly, a digital divide prevailed in

Pakistan keeping it behind its neighbors and other comparable countries in

terms of telecom access. Cellular mobile services in Pakistan commenced in

90s when two cellular mobile telephone licenses were awarded to Paktel and

PakCom (Instaphone) for provision of cellular mobile telephony in

Pakistan. Currently there are seven cellular players in the market. There has

been a tremendous growth in Cellular market Currently more than 91% of

the population has access to cellular mobile service all across Pakistan

though the access is more in thickly populated localities. Some areas of

Baluchitsan and NWFP remained uncovered due to disturbances in those

areas; rest of the country is almost covered by now.


GROWTH OF TELECOM SECTOR IN PAKISTAN

Although tremendous growth has taken place in the Pakistan telecom sector

but most of it can be attributed to the cellular growth. Fixed line is still

awaiting a take off. Similarly Value Added Services have grown but are still

a drop in the bucket. Now that the competition has been introduced in the

telecom sector some very positive impact have been observed on the

growth of the sector in a short span of time which is expected to continue

to grow for at least next five years if the daring investors influx continue

as in the last 3 years. A brief account of the growthin telecom sector is

given below.

MARKET SHARE

Market share of operators is considered an important tool to gauge the

level of competition in any sector of the economy. Marker shares of Cellular

Mobile Operators indicate that market is moving toward perfect

competition where the share of major operators are declining and new

entrants are able to grab more share in the market. During the year 2007-

08, Telenor has emerged as fastest growing operator who has improved its

market share from 17% in 2006-07 to above 21% slightly higher than Ufone

who also has 21% market share. On the other hand, the leading mobile

operator Mobilink is loosing its Significant Marker Power place rapidly and

its share has declined by about 5 percentage points and reached 36% in

2007-08 compare to 41% in 2006-07. CMPak is also growing very fast


and it has added 2.9 million subscribers, which is an impressive number

and one could hoped that in future it will grab more market share. CM Pak

has added more subscribers in last few months and it has continued its

aggressive media campaign along with infrastructure rollout which helping

it to grab more market share in short span of time.


BROAD PROBLEM AREA
BROAD PROBLEM AREA/BACKGROUND

Employee retention is most critical issue facing corporate leaders as a

result of the shortage of skilled labor, economic growth and employee

turnover. This is one of the hottest topics for corporate leaders in all fields

globally.

Turnover is becoming a serious problem in today's corporate environment.

The employment culture is changing as well. It is now relatively common to

change jobs every few years, rather than grow with one company throughout

the employment life as was once commonplace. In addition, employees are

increasingly demanding a balance between work and family life.

Turnover costs for many organizations are very high and can significantly

affect the financial performance of an organization. Direct costs include

recruitment, selection, and training of new people. Much time and expense

go into this process. Indirect costs include such things as increased

workloads and overtime expenses for coworkers, as well as reduced

productivity associated with low employee morale. Estimated costs vary


from organization to organization, some as low as a few hundred dollars to

as high as four times the annual salary of the employee

Today's labor force is different. Supervisors must take responsibility for

their own employee retention. If they don't, they could be left without

enough good employees. A wise employer will learn how to attract and keep

good employees, because in the long run, this workforce will make or break a

company's reputation. Employee retention takes effort, energy, and

resources...and the results are worth it.

Theoretical frame work


Theoretical frame work

DEPENDENT VARIABLE

INDEPENDENT VARIABLE

SKILLS WORK LOAD WORK SUPERVISO


ENVIORNMENT R
GUIDANCE

CO-
WORKERS
HELP
EMPLOYEE RETENTION CONSISTAN
T POLICIES
AND
PRACTICES

GOOD
FEEDBACK
SYSTEM

TRAINING
AND
GROWTH SALARY SUFFICIENT DEVELOPM
OPPOURTUN SPENDING ENT
ITY TIME PROGRAM

RESULTS AND EFFECTS ON DEPENDENT VARIABLE


Q#1: Do you think skills are effectively used?

Employees, who find themselves in roles that do not suit their individual

strengths, tend not to stay around that long. It happens all too frequently.
A productive employee gets promoted into a position that requires skills

that they do not possess. A role that exposes their weaknesses, and as a

result, a role that they do not enjoy. Employees were asked about there

skills that they are effectively used or not, and our findings shows that about

64% to 69% employee are satisfied with skill utilization and 13% to 19% are

not satisfied with that but these findings show that this is not the reason of

turnover.

Strongly Disagree 10
Disagree 15
Neutral 11
Agree 40
Strongly Agree 24

Q#02: Do you think work load is reasonable?

The stress of work, the stress from working long hours, the stress related

to pressure from above; A stressful workplace is rarely a productive one.

Attrition is high, people don’t matter; there will always be someone else to

fill the vacancy. And in time they too will probably leave for much the same

reasons, employees were asked about the load of work ,our findings shows

that about 54 to 59% are agree that load is reasonable and 33 to 38 % are

disagree with that there is good number of people are agree but on the

opposite side there are also reasonable people against that point, it may be

the one of reason of turnover.


Count
Strongly Disagree 12
Disagree 24
Neutral 8
Agree 37
Strongly Agree 19

Q#03: Do you think work environment is safe, comfortable and properly


operational?

The working environment means the area where employee do there work or

office place the are should be nice safe and employee should got all the

facilities they need when the environment is good then employee were

mentality satisfied and the gave better outputs and feel happy to retain in

organization, we asked this question and we get good positive results about

environment of Mobilink, our findings shows that about 70 to 75% people

are agree with good environment and only 15 to 19% people are not satisfied.

so we conclude that this is not the reason of turnover.

Count
Strongly Disagree 4
Disagree 16
Neutral 6
Agree 24
Strongly Agree 50

Q#04:Do you think supervisor guidance is there for you?

The state of the relationship between an employee and their direct manager

goes a long way towards determining whether they stay or leave. Employee
leaves jobs in the first few months because they sense their manager is not

someone that brings the best out of them. They know the pattern is unlikely

to change, that the frustration will grow, that the unhappiness will get

worse. We asked this question from employee and we find about 66 to 69%

people are satisfied with supervisor guidance and relation with him and only

15 to 19% people are not satisfied. so this is not the reason of turnover in

mobilink

Count
Strongly Disagree 4
Disagree 18
Neutral 6
Agree 63
Strongly Agree 9

Q#05: Do you think your co workers help you?

fellow workers plays a big role in employee’s satisfaction with the job

Employees were asked about the amount of help they get from the fellow

workers, the responses results are close to the supervisor’s help we find

again some good positive results about 58 to 60 % people were satisfied

with that and only 10 to 15 % are not satisfied but there are quite a good

number of people who have neutral point of view about that issue there are

22% people who have neutral thinking about that, it is not good but we

cannot consider it the reason of turn over

Count
Strongly Disagree 9
Disagree 4
Neutral 22
Agree 45
Strongly Agree 20

Q#O6: Do you think processes consistent policies and practices are used in
your organization?

Possess consistent policies and practices means company policy and

administration and its rules and regulation towards companies employee it

include job related issues, pay ,medicals facilities etc and when we asked

about this from employee we find about 70 to 80% people are satisfied and

this is a good positive response from employees and only 10 to 12% are not

so again this is not the reason of turnover.

Count
Strongly Disagree 9
Disagree 6
Neutral 2
Agree 64
Strongly Agree 19

Q#07: Did you think there is agood feedback system for performance
evolution?

A very critical aspect of the research about turnover is the level to


which employees are satisfied with performance management system.

Employees were asked about feedback system, and performance

evaluation methods. Employees were asked if there is a feedback

system for performance evaluation or not. we find about 64 to 67%

people are not satisfied with performance evolution system and only 21%

people are satisfied so it may b the one of reason of turnover.

Count
Strongly Disagree 24
Disagree 44
Neutral 6
Agree 26

Q#08: did you think exist training and development program are helpful?

Training is very important for the growth and career development of

employees. Good training programs help employers to retain the employees.

To check the validity of this question, employees were asked about training

opportunities and development existence. Following statistics show the

responses that about 59 to 62% people are satisfied with training programs

and only 19% are not satisfied so it may not be the reason of turnover.

Count
Strongly Disagree 9
Disagree 10
Neutral 20
Agree 32
Strongly Agree 29

Q#09 do you often left with sufficient time to spend with my family after
completing my routine daily work?

Employee’s work-life balance is very important in employee’s satisfaction

with the job. Employees at Mobilink were asked about the work-life

balance. They were asked about how often, after their daily work, they are

left with the sufficient time to spend with their family. The responses are

shown that there are huge number of people who are not satisfied with that

point there are 66 to 68% people who are not happy with it and only 18 to

20% who are agree and mostly are from hr department. marketing employee

are not very happy with it,so it is clear that this might be the major reason

of turnover.

Count
Strongly Disagree 16
Disagree 47
Neutral 18
Agree 9
Strongly Agree 10

Q10:Did you think that your salary is above the market level?
We had found it in theories that if employee’s expectations about the

employer are not met, he will be more willing to leave the employer. In

this research employees were asked about their expectations about

Mobilink before joining and the level to which these expectations were met.

Employees were asked about their expectations about the salary.we find

that about 67 t0 71%people are satisfied with there salary expectation and

19 to 22 % people are not satisfied so it is clear its is not the major reason

of turnover.

Count
Strongly Disagree 9
Disagree 14
Neutral 6
Agree 34
Strongly Agree 37

Q#11:are you satisfied with growth oppertunities?

Employees who see long-term growth with the company are expected to

remain with the company for long time. To check the validity of this point,

employees were asked whether or not their long-term job could guarantee

them a spot in top management. our results shows that about 57% to 59%

people are agree with growth opportunities in Mobilink but there are also

30%31% people who are not satisfied it is clear from results that this is not

the major reason of turnover.

Count
Strongly Disagree 20
Disagree 10
Neutral 11
Agree 20
Strongly Agree 39

12: Do you feel that you are a part of organization.:

Feeling a part of organization of employee is very important for the growth

and prosperity of organization when employee feel that they are

responsible employee which were be the main part of organization then he

feel good for company but if he feel that he don’t have any value in company

he switch the company we ask this question from employee that what you

feel your self towards company we got negative responses about 58 to 62%

people are not satisfied with it and only 19% to 20% are agree with that

issue here people are mostly from high levels managements so this might be

the major reason for employee turnover.

Count
Strongly Disagree 25
Disagree 35
Neutral 22
Agree 14
Strongly Agree 4
Problem statement and hypothesis generation
PROBLEM STATEMENT

The specific purpose of this study is to review the theories, literature,

research and studies related to employee turnover and then analyzing

the practices that are performed in an actual business organization. The

organization that will be studied in the context of this research is

MOBILINK PAKISTAN , which is currently facing the employee

turnover problems.

HYPOTEHSIS GENERATION:-

H0:-Employees retention have no effect on business organization.


H1:- Employee retention have positive effect on business organization.
LITERATURE REVIEW
LITERATURE REVIEW

Employee turnover has become a very critical problem in Pakistan’s telecom

industry as is the case with many others in various countries. Employees are

believed to exploit the labor market conditions and shortage of skillful

workers in this industry. A larger number of job opportunities, ease of job

switching, attractive salaries and huge demand of skilled

Workers are some of the highlighted reasons of this problem. In spit of

the significance of this problem, there is a dearth of research work in this

area. This study identifies various variables recognized by many

researchers to have an effect on employee’s turnover intention. These

variables are studied in local context and study is conducted to identify

which variables are the most significant causes of employee turnover in

Mobilink.

Frederick Herzberg (1923-2000), clinical psychologist and pioneer of 'job

enrichment', is regarded as one of the great original thinkers in

management and motivational theory


Frederick Herzberg's book 'The Motivation to Work', written with

research colleagues Bernard Mausner and Barbara Bloch Snyderman in 1959,

first established his theories about motivation in the workplace

The two-factor, or motivation-hygiene theory, developed from data

collected by Herzberg from interviews with a large number of engineers and

accountants in the Pittsburgh area. From analyzing these interviews, he

found that job characteristics related to what a man does — that is, to the

nature of the work he performs — apparently have the capacity to gratify

such needs as achievement, competency, status, personal worth, and self-

realization, thus making him happy and satisfied. However, the absence of

such gratifying job characteristics does not appear to lead to unhappiness

and dissatisfaction. Instead, dissatisfaction results from unfavorable

assessments of such job-related factors as company policies, supervision,

technical problems, salary, interpersonal relations on the job, and working

conditions. Thus, if management wishes to increase satisfaction on the job,

it should be concerned with the nature of the work itself — the

opportunities it presents for gaining status, assuming responsibility, and for

achieving self-realization. If, on the other hand, management wishes to

reduce dissatisfaction, then it must focus on the job environment— policies,

procedures, supervision, and working conditions. If management is equally

concerned with both (as is usually the case), then managers must give

attention to both sets of job factors.


The theory was based around interviews with 203 American accountants &

engineers in Pittsburgh, chosen because of their professions' growing

importance in the business world. The subjects were asked to relate times

when they felt exceptionally good or bad about their present job or any

previous job, and to provide reasons, and a description of the sequence of

events giving rise to that positive or negative feeling.

Here is the description of this interview analysis:

Briefly, we asked our respondents to describe periods in their lives when

they were exceedingly happy and unhappy with their jobs. Each respondent

gave as many "sequences of events" as he could which met certain criteria

including a marked change in feeling, a beginning and an end, and contained

some substantive description other than feelings and interpretations....

The proposed hypothesis appears verified. The factors on the right that led

to satisfaction achievement, intrinsic interest in the work, responsibility,

and advancement they contribute very little to job dissatisfaction.

Conversely, the dis-satisfiers company policy and administrative practices,

supervision, interpersonal relationships, working conditions, and salary

contribute very little to job satisfaction

Herzberg's Two-factor Theory


Hygiene Factors Motivators
Salary, Nature of Work,

Job Security, Sense of Achievement,


Working Conditions,

Level and Quality of


Recognition,
Supervision,
Responsibility,
Company Policy and
Personal Growth and Advancement
Administration,

Interpersonal Relations

Herzberg was the first to show that satisfaction and dissatisfaction at

work nearly always arose from different factors, and were not simply

opposing reactions to the same factors, as had always previously been (and

still now by the unenlightened) believed.

Herzberg wrote the following useful little phrase, which helps explain this

fundamental part of his theory, i.e., that the factors which motivate people

at work are different to and not simply the opposite of the factors which

cause dissatisfaction:

"We can expand ... by stating that the job satisfiers deal with the factors

involved in doing the job, whereas the job dissatisfiers deal with the

factors which define the job context."

For graphical presentation of this principle, see the 1

1 Herzberg hygiene factors and motivators graph diagram,


The purpose of the diagram is to illustrate how Herzberg's research

showed that certain factors truly motivate 'motivators', whereas others

tended to lead to dissatisfaction 'hygiene factors'

He illustrated this also through Biblical example: Adam after his expulsion

from Eden having the need for food, warmth, shelter, safety, etc., - the

'hygiene' needs; and Abraham, capable and achieving great things through

self-development - the 'motivational' needs.


Although Herzberg is most noted for his famous 'hygiene' and motivational

factors theory, he was essentially concerned with people's well-being at

work. Underpinning his theories and academic teachings, he was basically

attempting to bring more humanity and caring into the workplace. He and

others like him did not develop their theories to be used as 'motivational

tools' purely to improve organizational performance. They sought instead

primarily to explain how to manage people properly, for the good of all

people at work.

Herzberg's research proved that people would strive to achieve 'hygiene'

needs because they are unhappy without them, but once satisfied the

effect soon wears off - satisfaction is temporary. Then as now, poorly

managed organizations fail to understand that people are not 'motivated' by

addressing 'hygiene' needs. People are only truly motivated by enabling them

to reach for and satisfy the factors that Herzberg identified as real

motivators, such as achievement, advancement, development, etc., which

represent a far deeper level of meaning and fulfillment.

Examples of Herzberg's 'hygiene' needs (or maintenance factors) in the

workplace are:

• policy

• relationship with supervisor

• work conditions
• salary

• company car

• status

• security

• relationship with subordinates

• personal life

Herzberg's research identified that true motivators were other completely

different factors, notably:

• achievement

• recognition

• work itself

• responsibility

• advancement

• The opposite of Dissatisfaction is No Dissatisfaction2.

1. People are made dissatisfied by a bad environment, but they are

seldom made satisfied by a good environment.

2. The prevention of dissatisfaction is just as important as

encouragement of motivator satisfaction.

2 http://www.businessballs.com/herzberg.htm
3. Hygiene factors operate independently of motivation factors. An

individual can be highly motivated in his work and be dissatisfied with

his work environment.

4. All hygiene factors are equally important, although their frequency of

occurrence differs considerably.

5. Hygiene improvements have short-term effects. Any improvements

result in a short-term removal of, or prevention of, dissatisfaction.

Remedying the causes of dissatisfaction will not create satisfaction. Nor

will adding the factors of job satisfaction eliminate job dissatisfaction. If

you have a hostile work environment, giving someone a promotion will not

make him or her satisfied. If you create a healthy work environment but do

not provide members of your team with any of the satisfaction factors, the

work they're doing will still not be satisfying.

According to Herzberg, the factors leading to job satisfaction are

"separate and distinct from those that lead to job dissatisfaction."

Therefore, if you set about eliminating dissatisfying job factors you may

create peace, but not necessarily enhance performance. This placates your

workforce instead of actually motivating them to improve performance.

The characteristics associated with job dissatisfaction are called hygiene

factors. When these have been adequately, people will not be dissatisfied

nor will they be satisfied. If you want to motivate your team, you then have
to focus on satisfaction factors like achievement, recognition, and

responsibility.

3
Now we can easily conclude that employees leave that organization where

hygiene factor have high percentage and employees were retain I those

organization were motivator factors have high percentage.

People don't quit companies. They quit managers." Turnover is not about

pure statistics; there is a need to put people first and ensure that business

has a human face. People are seeking organizations where they can have a

voice and be recognized for their personal contribution in a supportive

working environment. Their immediate supervisor has a great impact on their

value system's fit with the organization and their level of job satisfaction.

It is well documented that losing an employee is a very expensive

occurrence. There is a recruiting cost, interviewing, reference checking,

testing, orientation cost, transitional time required to train the new

employee.

(By Teresa Howe, May 20, 2003)

Managers readily agree that retaining your best employees ensures

customer satisfaction, product sales, satisfied coworkers and reporting

staff, effective succession planning and deeply imbedded organizational

knowledge and learning. Employee retention matters. Organizational issues

such as training time and investment; lost knowledge; mourning, insecure

3 http://www.mindtools.com/pages/article/newTMM_74.htm
coworkers and a costly candidate search aside, failing to retain a key

employee is costly. Various estimates suggest that losing a middle manager

costs an organization up to 100 percent of his salary. The loss of a senior

executive is even more costly.

(By Susan M. Healthfield, 2005)

Every company normally faces one common problem of high employee turnout

ratio. People are leaving the company for better pay, better profile. There’s

the cost of finding a replacement. The replacement cost of not having

someone to do the job in the meantime. The loss of clients and contacts the

person had with the industry. The loss of morale in co-workers. The loss of

trade secrets this person may now share with others. (Bhuvana

Sundaramoorthy’s Blog. Aug, 2006)

Researchers and practitioners are pointing to service as the differentiating

factor in competitive situations. In both the marketing and management

literature, disconnects exist between the importance of the corporate

brand and the service component of the offering that is supported by

consistent and effective marketing employees. Organizational culture; brand

identity organizational culture; brand identity. Administration, Bradley

University, Relationship between employee perceptions of corporate brand

identity and employee intent to turnover.


(By Anthony R.Wheeler, R.Glenn Richey, Mert Tokkman, and Chris J.

Sablynski. 9th March, 2006)

The problem of retention is compounded by the predicted talent shortage

resulting from the upcoming retirement of the baby boomers, the scarcity

of talent with relevant work skills for today ’s jobs, the changing values

about work and the high cost of turnover. Managers and organizations that

keep these questions in mind will have a competitive advantage over others

in retaining their employees. (By LisBeth Claus. Mar, 2007)

It is proven that a high turnover percentage can cost employers a great deal

of financial distress. Depending on the size of the company, to many

employers it can make the difference in staying or going out of business.

This is why it is important that employers train their supervisors, managers

and employees themselves to learn to motivate each other. Supervisors must

know their employees. They must ask and research what is important to

their employees, what they want to accomplish, and what their goals are.

This will help supervisors know how to motivate employees and how to get

the most out of them. (By Larry Memmott. Mar, 2002)

OBJECTIVE OF STUDY

This comprehensive research of the factors which cause the employee

turnover and their respective retention strategies will help to relate the

theories with industry practices and the effectiveness of implementing


these theories. Through this research, it will be tried

to surface the factors (if found) that cause the employee turnover even if

the traditional

and well-accepted policies are practiced. Of this research, it is

expected that this global phenomenon of employee turnover will be

analyzed in local context in Pakistan and the solutions/ suggestions will

be devised which will bear the most chances of being successful in

local context.

RESEARCH METHODOLOGY
To collect data we use questionnaires, which were made on the basis of

Likert scale. All the questionnaires were same.

Each question leads to other in such a way that feedback can easily be

obtained. Five options were given from which they have to select just one.
TARGET INDUSTRY / COMPANY

The industry, which I am targeting, is telecom industry of Pakistan. The

company, which I have selected, Mobilink.

TYPE OF STUDY

Methodology

Formal research methods will be used in this study which will comprise of the

following:

➢ Comprehensive study of literature.

➢ Interviews with the target organization

➢ Questionnaires

For the interpretation of the facts found in the study, both

qualitative and quantitative research techniques will be used. The

completed study will contain the qualitative judgments based on the

combination of already available literature and the actual industry

practices. The study will also include some quantitative inferences which

will be drawn using advanced statistical techniques.

a) Population/sample

The region of my survey is Islamabad and the sample size is 200 I have
distributed the samples to Mobilink organization.

DATA COLLECTION

For the collection of data we will conduct survey by filling questionnaire.

b) Instruments and measurements

The Statistical Tool that I will use is SPSS software for the analysis and

my Questionnaire will be on Likert scale.

i. Limitations

One of the major limitations while carrying out this research was the lack

of cooperation on the part of the management of the mobile sector

companies like mobilink, in providing the data regarding the company and its

policies.

TIME HORIZON:
Our time horizon is longitudinal because we are conducting the research
first time.

TYPES OF QUESTIONS:

OPEN ENDED:
They give the respondents complete freedom to decide the form, length and
detail of the answer. Open questions are preferred when the researchers is
interested in knowing what is upper most in the mind of respondents.
CLOSE ENDED:
The respondents are offered two or more choices. The researcher exhausts
all the possible choices and the respondent has to indicate which one is
applicable in this case.
DATA ANALYSIS AND INTERPRETATION.
DATA ANALYSIS AND INTERPRETATION

what is your gender

Cumulative
Frequency Percent Valid Percent Percent

Valid male 55 55.0 55.0 55.0

female 45 45.0 45.0 100.0

Total 100 100.0 100.0


what is your age?

Cumulative
Frequency Percent Valid Percent Percent

Valid 26-30 46 46.0 46.0 46.0

31-35 22 22.0 22.0 68.0

36-40 24 24.0 24.0 92.0

41-45 8 8.0 8.0 100.0

Total 100 100.0 100.0


Do you think your Skills are effectively used?

Cumulative
Frequency Percent Valid Percent Percent

Valid strongly agree 24 24.0 24.0 24.0

agree 40 40.0 40.0 64.0

neither agree nor disagree 11 11.0 11.0 75.0

disagree 15 15.0 15.0 90.0

strongly disagree 10 10.0 10.0 100.0

Total 100 100.0 100.0


Do you think Work load is reasonable?

Cumulative
Frequency Percent Valid Percent Percent

Valid strongly agree 17 17.0 17.0 17.0

agree 39 39.0 39.0 56.0

neither agree nor disagree 8 8.0 8.0 64.0

disagree 24 24.0 24.0 88.0

strongly disagree 12 12.0 12.0 100.0

Total 100 100.0 100.0


Do you think Work environment is safe, comfortable and properly? operational?

Cumulative
Frequency Percent Valid Percent Percent

Valid strongly agree 49 49.0 49.0 49.0

agree 26 26.0 26.0 75.0

neither agree nor disagree 5 5.0 5.0 80.0

disagree 16 16.0 16.0 96.0

strongly disagree 4 4.0 4.0 100.0

Total 100 100.0 100.0


Do you think Supervisor guidance is there for you?

Cumulative
Frequency Percent Valid Percent Percent

Valid strongly agree 9 9.0 9.0 9.0

agree 63 63.0 63.0 72.0

neither agree nor disagree 6 6.0 6.0 78.0

disagree 18 18.0 18.0 96.0

strongly disagree 4 4.0 4.0 100.0

Total 100 100.0 100.0


Do your Co worker’s help you?

Cumulative
Frequency Percent Valid Percent Percent

Valid strongly agree 20 20.0 20.0 20.0

agree 45 45.0 45.0 65.0

neither agree nor disagree 21 21.0 21.0 86.0

disagree 5 5.0 5.0 91.0

strongly disagree 9 9.0 9.0 100.0

Total 100 100.0 100.0


Did you think Processes consistent policies and practices are used in your organization?

Cumulative
Frequency Percent Valid Percent Percent

Valid strongly agree 19 19.0 19.0 19.0

agree 64 64.0 64.0 83.0

neither agree nor disagree 2 2.0 2.0 85.0

disagree 5 5.0 5.0 90.0

strongly disagree 10 10.0 10.0 100.0

Total 100 100.0 100.0


Did you think there is a good feedback system for performance evaluation?

Cumulative
Frequency Percent Valid Percent Percent

Valid agree 21 21.0 21.0 21.0

neither agree nor disagree 10 10.0 10.0 31.0

disagree 44 44.0 44.0 75.0

strongly disagree 25 25.0 25.0 100.0

Total 100 100.0 100.0


Did you think there exist training and development programs are helpful?

Cumulative
Frequency Percent Valid Percent Percent

Valid strongly agree 30 30.0 30.0 30.0

agree 31 31.0 31.0 61.0

neither agree nor disagree 20 20.0 20.0 81.0

disagree 10 10.0 10.0 91.0

strongly disagree 9 9.0 9.0 100.0

Total 100 100.0 100.0


Do you often left with sufficient time to spend with my family after completing my routine daily
work?

Cumulative
Frequency Percent Valid Percent Percent

Valid strongly agree 8 8.0 8.0 8.0

agree 11 11.0 11.0 19.0

neither agree nor disagree 18 18.0 18.0 37.0

disagree 46 46.0 46.0 83.0

strongly disagree 17 17.0 17.0 100.0

Total 100 100.0 100.0


Did you think that your salary is above the market level?

Cumulative
Frequency Percent Valid Percent Percent

Valid strongly agree 37 37.0 37.0 37.0

agree 33 33.0 33.0 70.0

neither agree nor disagree 6 6.0 6.0 76.0

disagree 15 15.0 15.0 91.0

strongly disagree 9 9.0 9.0 100.0

Total 100 100.0 100.0


Are you satisfied with growth opportunities?

Cumulative
Frequency Percent Valid Percent Percent

Valid strongly agree 39 39.0 39.0 39.0

agree 20 20.0 20.0 59.0

neither agree nor disagree 11 11.0 11.0 70.0

disagree 10 10.0 10.0 80.0

strongly disagree 20 20.0 20.0 100.0

Total 100 100.0 100.0

Do you feel that you are a part of organization?

Cumulative
Frequency Percent Valid Percent Percent

Valid strongly agree 4 4.0 4.0 4.0

agree 14 14.0 14.0 18.0

neither agree nor disagree 22 22.0 22.0 40.0

disagree 35 35.0 35.0 75.0

strongly disagree 25 25.0 25.0 100.0

Total 100 100.0 100.0


Regression
Model Summary

Adjusted R Std. Error of the


Model R R Square Square Estimate

1 .059a .003 -.007 1.129

2 .125b .016 -.005 1.128

3 .135c .018 -.012 1.132

4 .251d .063 .023 1.112

a. Predictors: (Constant), Do you think your Skills are effectively used?

b. Predictors: (Constant), Do you think your Skills are effectively used?,


Do you think Work load is reasonable?

c. Predictors: (Constant), Do you think your Skills are effectively used?,


Do you think Work load is reasonable?, Did you think there exist
training and development programs are helpful?

d. Predictors: (Constant), Do you think your Skills are effectively used?,


Do you think Work load is reasonable?, Did you think there exist
training and development programs are helpful?, Did you think that your
salary is above the market level?

Anova
ANOVAe

Model Sum of Squares df Mean Square F Sig.

1 Regression .432 1 .432 .339 .562a

Residual 124.878 98 1.274

Total 125.310 99

2 Regression 1.954 2 .977 .768 .467b

Residual 123.356 97 1.272

Total 125.310 99

3 Regression 2.280 3 .760 .593 .621c

Residual 123.030 96 1.282

Total 125.310 99

4 Regression 7.875 4 1.969 1.593 .183d

Residual 117.435 95 1.236

Total 125.310 99

a. Predictors: (Constant), Do you think your Skills are effectively used?

b. Predictors: (Constant), Do you think your Skills are effectively used?, Do you think Work load is
reasonable?

c. Predictors: (Constant), Do you think your Skills are effectively used?, Do you think Work load is
reasonable?, Did you think there exist training and development programs are helpful?

d. Predictors: (Constant), Do you think your Skills are effectively used?, Do you think Work load is
reasonable?, Did you think there exist training and development programs are helpful?, Did you
think that your salary is above the market level?

e. Dependent Variable: Do you feel that you are a part of organization?

INTERPRETATION OF CORELATION:-
• The result shows that there is a strong positive
relation b/w skills and employee retention. the
person having the high skills have high
retention.the more the skills the more the
employee become the part of the orginztn
• The relation of the work load and the employee
retention should be negative bt accrdng to our
study the value is 1.134 this means that the
respndnts donot reply this question acrrdng to our
concern because the relation ship is not able to be
interpreted.
• Training programs n development has positive
relation with employee retention. Bt the relation is
not very strng. Because training and development
has not direct impact on employee retention.
• The result is not accurate due to wrong responses
of the respondants.
INTERPRETATION OF Regression:-
• The regression model shows that the employee
retention has no direct impact on the orgnztn
behavior because all the values are above then
the 0.05 level of significance. So we accept our
h0.

Recommendation

A. Using the statistical analysis of the collected data, we have found out

that only four out of twelve questions have proven to be the cause of

turnover. The question that Mobilink employees have re ason able


workload i s n ot look to be g ood it s shows on l y 50% posi t i ve

r e sul t s, e mpl oye e ’ s d i s s a t i s f a c t i o n wi t h t he performance

management system and employee’s bad work-life balance, and to be ha

valued employee of organization are also shown that they are major

reason of turnover. Employees are not satisfied with the training

opportunities, employees are not satisfied with the growth opportunities

and employees are not satisfied with the amount of help they get from

supervisors and fellow workers, shows positive results. The basis of this

research work at reasons for employee turnover at Mobilink, we can

conclude that four major reasons for employee turnover at Mobilink

are perceived alternatives of job, employee’s dissatisfaction

with performance management system and employee’s bad work-life

balance.

B. We can see that because of the telecom sector boom in Pakistan and

quite a large number of employers in this sector, there are a lot of

job opportunities available for the skilled workers. There are almost no

switching costs for the employees they can easily find a good job with other

employer after leaving the current one. Moreover, there is a huge

competition among the employers in telecom sector to grab good

employees from other employer. These all factors play a big role in

employee’s perception about a large number of alternative jobs

available in job market.


C. Our finding is about the dissatisfaction of employees with

performance management system. Majority of the employees do not

believe that their better performance is rewarded, almost the

same number of employees do not see the performance evaluation

methods to be visible and understandable. A big portion of employees

is of the view that there is no feedback system for performance

evaluation. We can conclude that employees are not satisfied with

the procedural and also the distributive justice in Mobil ink’s

performance evaluation system. This dissatisfaction of employees

with the procedural and distributive justice during the

performance evaluation and rewards is also a major reason of

employee turnover at Mobilink

D. The second major reason for employee turnover at Mobilink is the

bad work-life balance of employees. Employees are often stretched

on their jobs, they have to work overtime often and majority of

employees at Mobilink are not left with enough time to spend with

their family. This results in a bad work-life balance of employees

and as a consequence, the employees are dissatisfied with their

work-life balance and are forced to leave the job whenever

possible. Thus, the bad work-life balance of Mobilink employees

becomes a major reason for employee turnover at Mobilink.


E. The third major reason is that there should not be any communication

gap between the management and the people working under them.

They should be allowed to talk and express their point of view. Even

management tries them to participate in decision making and give

them a feel that they are a part of organization.

F. The last but not the least the work over load is also the problem-

causing turnover. Stressful work environments tend to be high

turnover environments. If there is an alternative, people take it.

Some join rival employers, some give up work altogether, some opt for

a career change. This may be the core problem of turnover it is right

that it did not give so much negative result but when we consider or

analyze the problem we can clear find out that this is the basic

problem at Mobilink.

G. In order to reduce the employee turnover, management at Mobilink

should provide the remedies for these problems, which cause the

employee to leave the organization. Management should take steps

to increase employee’s loyalty so that these perceived alternatives for job do

not force the employee to leave. Management should also improve the

performance evaluation system so that the implication of procedural

and distributive justice makes employees satisfied with the


performance evaluation system. Management should take some

serious steps to ensure that employee’s work-life balance is not

disturbed and after doing the daily work at job, employees are left

with sufficient time for personal life. and employee should have right

to take decision in growth of organization so that they feel a part of an

organization, and work load should be manage well it should be

distributed among more employee so that they feel comfortable with

the job. If management takes these considerations into account,

high rate of employee turnover can be decreased to very negligible.

Action plan

The question that Mobilink employees have reasonabl e workload i s n o t

l o ok t o be good i t s shows on l y 50% posi ti ve re sul t s, e mpl o ye e’ s

dissatisfaction wit h t he performance management system and

employee’s bad work-life balance, and to be ha valued employee of

organization are also shown that they are major reason of turnover.Employees

are not satisfied with the training opportunities, employees are not satisfied with

the growth opportunities and employees are not satisfied with the amount of

help they get from supervisors and fellow workers, shows positive results. So, on

the basis of this research work at reasons for employee turnover at Mobilink,

we can conclude that four major reasons for employee turnover at,

employee’s dissatisfaction with performance management system,

employee’s bad work-life balance, and Mobilink are perceived alternatives

of job.
To reduce the employee turnover, management at Mobilink should provide

the remedies for these problems, which cause the employee to leave

the organization. Management should take steps to increase employee’s loyalty so

that these perceived alternatives for job do not force the employee to leave.

Management should also improve the performance evaluation system so that

the implication of procedural and distributive justice makes employees

satisfied with the performance evaluation system. Management should take

some serious steps to ensure that employee’s work-life balance is not

disturbed and after doing the daily work at job, employees are left with

sufficient time for their personal life. and employee should have right to

take decision in growth of organization so that they feel a part of an

organization, and work load should be manage well it should be distributed

among more employee so that they feel comfortable with the job.
Referencing
http://en.wikipedia.org/wiki/Two_factor_theory

http://www.examstutor.com/business/resources/studyroom/peop

le_and_organisations/motivation_theory/4.herzbergstwofactortheory.php

http://www.businessballs.com/herzberg.htm

http://www.mindtools.com/pages/article/newTMM_74.htm
Howe, T. To Stay or Leave: Job satisfaction and turnover. Stable URL:

www.charityvillage.com/cv/research/rhr6.htm

Healthfield, M. S. Top Ten Ways to Retain Your Great

Employees,Stable,URL:umanresources.about.com/od/retention/a/more_rete

ntion.htm

http://www.employee-retention-guide.com/

http://www.pta.gov.pk/index.php?

option=com_content&task=view&id=268&Itemid=141

http://humanresources.about.com/od/retention/a/lead_retention.htm

http://www.humanresourcesmagazine.com.au/articles/24/0C03C8

2.asp?Type=60&Category=919

Besharat Hussain jafary HOD in contact Centre Mobilink Islamabad i10

www.pta.gov.pk/

www.mobilinkgsm.com/

http://retention.naukrihub.com/retention.html
Sundaramoorthy’s, B. Why Employee’s leave Organization, Stable

URL:www.bhuvans.wordpress.com/2006/08/19/why-employees-leave-

organization

Claus, L. Best Practices in Keeping and Motivating Employees, Stable

URL:www.willamette.edu/mba/faculty/B2B_Claus.pdf

Memmott, L. Retaining and motivating employees, Stable

URL:www.postharvest.tfrec.wsu.edu/PC2002G.pdf

Questionnaire
Dear participants, I the student of University of Lahore is conducting survey on the
“Strategies For Retaining Employees In Mobilink”. I will appreciate your participation. You
are requested to read carefully and select the best choice from your point of view. Feel
free to answer, as your information will be kept confidential.

Strongly Disagree Neutral Agree Strongly


Disagree Agree

1. Skills are effectively 1 2 3 4 5


used
2. Work load is reasonable 1 2 3 4 5
3. Work environment is 1 2 3 4 5
safe, comfortable and
4. Supervisor guidance 1 2 3 4 5
5. Co worker’s helps 1 2 3 4 5

6. Possess consistent 1 2 3 4 5
policies and practices

7. there is a good 1 2 3 4 5
feedback system for
performance evaluation
8. There exist training and 1 2 3 4 5
development programs

9 I often left with 1 2 3 4 5


sufficient time to spend
with my family after
.10 I think that my salary 1 2 3 4 5
is above the market
11. I am satisfied with 1 2 3 4 5
growth opportunities.
12 I feel that I m a part of 1 2 3 4 5
organization.