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A Study On Employee Retention
A Study On Employee Retention
A Study On Employee Retention
TABLE OF CONTENTS
1 INTRODUCTION
2 REVIEW OF LITERATURE
3 RESEARCH METHODOLOGY
3.1 RESEARCH DESIGN
3.2 SAMPLING TECHNIQUE
3.3 SAMPLE SIZE
3.4 DATA COLLECTION METHOD
3.5 STATISTICAL TOOLS USED
4 DATA ANALYSIS
5 FINDINGS
6 SUGGESTIONS
7 CONCLUSION
ANNEXURES
BIBLIOGRAPHY
LIST OF TABLES
Page
S.NO TITLE
No
4.1.1 Position category of the employees
4.1.2 Years of experience of the employees
4.1.3 Employees satisfaction towards work environment
4.1.4 Employees satisfaction towards incentives provided by the organization
4.1.5 Opinion about managements interest in motivating employees
4.1.6 Employees opinion about opportunities for growth and promotion
4.1.7 Employees opinion about their career development in the organization
4.1.8 Employees response towards the welfare policies offered by the organization
4.1.9 Factors motivating the employees
4.1.10 Employees opinion about stress due to overwork
4.1.11 What did the employees like more about the company
4.1.12 Employees opinion about the medical facilities offered by the company
4.1.15 Employees satisfaction level towards the Grievance handling system followed in
the company
4.1.16 Whether company welcomes new ideas and innovation from the employees
4.1.17 Employees satisfaction level regarding superior subordinate relationship
LIST OF CHARTS
Page
S.NO TITLE
No
4.1.1 Position category of the employees
4.1.2 Years of experience of the employees
4.1.3 Employees satisfaction towards work environment
4.1.4 Employees satisfaction towards incentives provided by the organization
4.1.5 Opinion about managements interest in motivating employees
4.1.6 Employees opinion about opportunities for growth and promotion
4.1.7 Employees opinion about their career development in the organization
4.1.8 Employees response towards the welfare policies offered by the organization
4.1.9 Factors motivating the employees
4.1.10 Employees opinion about stress due to overwork
4.1.11 What did the employees like more about the company
4.1.12 Employees opinion about the medical facilities offered by the company
4.1.15 Employees satisfaction level towards the Grievance handling system followed
in the company
4.1.16 Whether company welcomes new ideas and innovation from the employees
4.1.17 Employees satisfaction level regarding superior subordinate relationship
1.3.1 OBJECTIVES
PRIMARY OBJECTIVE:
To reduce the employees turn over in the organization.
SECONDARY OBJECTIVE:
To retain the experienced and skillful employees within the organization.
To reduce the cost of turn over.
To identify the factors causing dissatisfaction of the employees
To identify the factors motivating the employees
1.3.2 NEED OF THE STUDY
In todays scenario employees turnover is getting increased day by day which affects the
growth of the company. Employees turnover causes huge loss for the company, which
invests a lot of money in training them. The study helps to identify the factors causing
dissatisfaction, to the employees and thereby reducing the employees exiting the
profession.
1.3.3 SCOPE OF THE STUDY
Providing job satisfaction to the employees will increase employee loyalty which in turn
helps the organization to retain their employees.
1.3.4 LIMITATIONS OF THE STUDY
2. REVIEW OF LITERATURE
Employee turnover rates have, within the last several years, become a nationwide
epidemic. Employees no longer feel the sense of company loyalty that once existed. By
developing multivariate models that combine a number of factors contributing to turnover
and empirically testing the models researchers have sought to predict why individuals
leave organizations.
Many studies are based on only a small number of variables which often only explain a
small amount of variability in turnover. Another criticism of turnover studies is that they
do not adequately capture the complex psychological processes involved in individual
turnover decisions.
There have been have been a number of factors that appear to be consistently linked to
turnover. An early review article of studies on turnover by Mobley et al (1979) revealed
that age, tenure, overall satisfaction, job content, intentions to remain on the job, and
commitment were all negatively related to turnover (i.e. the higher the variable, the lower
the turnover).
In 1995, a meta-analysis of some 800 turnover studies was conducted by Hom and
Griffeth, which was recently updated (Griffeth et al, 2000). Their analysis confirmed
some well-established findings on the causes of turnover. These include: job satisfaction,
organizational commitment, comparison of alternatives and intention to quit.
William M. Mercer, Inc. (1998) discovered, when surveying 206 medium to large
companies in 1998, businesses high turnover often lost employees because of
dissatisfaction with compensation.
3. RESEARCH METHODOLOGY
The Research design used in the study was descriptive research design. The
descriptive study portrays the characteristics of a group or an individual or situation.
Secondary data:
The secondary data are collected through company records and journals
TEST OF INDEPENDENCE
test enables us to explain whether or not two attributes are associated. In order
be may apply the chi square test either as a test to judge the significance of association
between attributes, it is necessary that the observe as well as theoritical or expected
frequencies must be grouped in the same way and theoritical distribution must be
adjusted to give the same total frequency as we find in case of observe distribution.
Karl Pearson developed a test for testing the significance of discrepancy between
experimental values and the theoritical values obtained under some theory or hypothesis.
This test is known as test of goodness of fit. Karl Pearson proved that statistic
= /E
O Observed frequency
E Expected frequency
is used to test whether difference between observed and expected frequencies are
frequent.
calculated using the formula (r 1) (c -1). The table value for this degree of freedom is
seen using 5% or 1% of significant level.
If table value is greater than calculated value, Null hypothesis is accepted or null
hypothesis is rejected.
In this study the chi-square test the table value has taken @ 5% level of significance.
4. DATA ANALYSIS
4.1 PERCENTAGE ANALYSIS
TABLE 4.1.1
CLASSIFICATION OF EMPLOYEES BASED ON THEIR EXPERIENCE
S.NO Respondents Response Percentage
1 Less than 1 year 10 20
2 1-2 year 14 28
3 2-3 year 10 20
4 3-4 year 7 14
5 Above 4 year 9 18
Total 50 100
CHART 4.1.1
CLASSIFICATION OF EMPLOYEES BASED ON THEIR EXPERIENCE
Interpretation: It is infered that 20% of employees has experience less than 1 year, 28%
of employees has experience of 1-2 year, 20% of employees has experience of 2-3
year,and 14% of employees has experience of 3-4 year and 18% of employees has
experience above 4 years.
TABLE 4.1.2
POSITION CATEGORY
CHART 4.1.2
POSITION CATEGORY
Interpretation: It is infered that 56% of employee belongs to Middle level and 44% of
employees belongs to Managerial level.
TABLE 4.1.3
SATISFACTION TOWARDS THE WORK ENVIRONMENT
CHART 4.1.3
SATISFACTION TOWARDS THE WORK ENVIRONMENT
Interpretation: From the table it is infered that 20% of employees are highly satisfied
with the work environmnent,44% of employees are satisfied with the work
environmnent,22% of employees are neutral in satisfaction with the work
environmnent,8% of employees are dissatisfied with the work environmnent and 6% of
employees are highly dissatisfied with the work environmnent.
TABLE 4.1.4
OPINION ABOUT THE INCENTIVES PROVIDED
CHART 4.1.4
OPINION ABOUT THE INCENTIVES PROVIDED
Interpretation: From the table it is seen that 48% of employees are highly satisfied 32%
of employees are satisfied 14% or employees are neutral and 6% of employees are
dissatisfied with the incentives provided in the organisation.
TABLE 4.1.5
THE MANAGEMENTS INTEREST IN MOTIVATING EMPLOYEES
CHART 4.1.5
THE MANAGEMENTS INTEREST IN MOTIVATING EMPLOYEES
Interpretation: From the table it is infered that 40% of employees strongly agree,22%
of employeesagree,28% of employees are neutral and 10% of employees disagree with
the managements interest in motivating employees.
TABLE 4.1.6
OPINION ABOUT THE OPPORTUNITIES FOR PROMOTION
S.no Response Respondents Percentage
1 Highly satisfied 15 30
2 Satisfied 28 56
3 Dissatisfied 5 10
4 Highly dissatisfied 2 4
Total 50 100
CHART 4.1.6
OPINION ABOUT THE OPPORTUNITIES FOR PROMOTION
Interpretation: It is clear that 30% of employees are highly satisfied,56% of
employees are satisfied,10% of employees are dissatisfied and 4% of employees are
highly dissatisfied with opportunities for growth and promotion.
TABLE 4.1.7
SATISFACTION REGARDING THE CAREER DEVELOPMENT
S.no Response Respondents Percentage
1 Strongly agree 10 20
2 Agree 20 40
3 Neutral 15 30
4 Disagree 2 4
5 Strongly disagree 3 6
Total 50 100
CHART 4.1.7
SATISFACTION REGARDING THE CAREER DEVELOPMENT
Interpretation: It is infered that 20% of employees strongly agree,40% of employees
agree,30% of employees are neutral 4% of employees are disagree and 6% of employees
strongly disagree with the career development in the organisation.
TABLE 4.1.8
RESPONSE ABOUT THE WELFARE POLICIES PROVIDED
CHART 4.1.8
RESPONSE ABOUT THE WELFARE POLICIES PROVIDED
Interpretation: 48% of employees are highly satisfied,34% of employees are satisfied
and 18% of employees are neutral with the welfare policies provided in the company.
TABLE 4.1.9
FACTORS MOTIVATING THE EMPLOYEES
CHART 4.1.9
FACTORS MOTIVATING THE EMPLOYEES
Interpretation:It is infered that 16% of employees are motivated by the increase in
salary,40% of employees are motivated by the promotion,14% of employees are
motivated by the leave and 30% of employees are motivated by the power.
TABLE 4.1.10
STRESS DUE TO OVERWORK
CHART 4.1.10
STRESS DUE TO OVERWORK
Interpretation: It is infered that 76% of employees accepted the fact of stress due to
over work in the company and 24% of employees doesnt accepted the fact of stress due
to over work.
TABLE 4.1.11
WHAT DID YOU LIKE MORE ABOUT THE COMPANY
TABLE 4.1.12
MEDICAL FACILITIES PROVIDED IN THE ORGANISATION
S.No Response No. of Respondents Percentage
1 Yes 50 100
2 No - -
Total 50 100
CHART 4.1.12
MEDICAL FACILITIES PROVIDED IN THE ORGANISATION
Interpretation: It is infered that all the respondents are satisfied with the medical
facilities offered by the organisation.
TABLE 4.1.13
RESPONSE TOWARDS THE PERFORMANCE APPRAISAL SYSTEM
S.No Response No. of Respondents Percentage
1 Yes 35 70
2 No 15 30
Total 50 100
CHART 4.1.13
RESPONSE TOWARDS THE PERFORMANCE APPRAISAL SYSTEM
Interpretation: It is infered that 70% of employees are satisfied with the performance
appraisal system and 30% of employees are not satisfied with the performance appraisal
system followed in the organisation.
TABLE 4.1.14
OPINION ABOUT BALANCING WORK LIFE AND PERSONAL LIFE
S.No Response No. of Respondents Percentage
1 Yes 38 76
2 No 12 24
Total 50 100
CHART 4.1.14
OPINION ABOUT BALANCING WORK LIFE AND PERSONAL LIFE
Interpretation: It is infered that 76% of employees are satisfied about balancing work
life with the personal life and 24% of employees are nt satisfied in balancing the work
life with the personal life
TABLE 4.1.15
OPINION ABOUT GREIVANCE HANDLING SYSTEM
S.no Factors Respondents Percentage
1 Highly efficient 12 24
2 Efficient 23 46
3 Inefficient 5 10
4 Highly inefficient 3 6
5 Neither efficient nor inefficient 7 14
Total 50 100
CHART 4.1.15
OPINION ABOUT GREIVANCE HANDLING SYSTEM
TABLE 4.1.16
COMPANY WELCOMES NEW IDEAS AND INNOVATION
CHART 4.1.16
COMPANY WELCOMES NEW IDEAS AND INNOVATION
Interpretation: It is infered that 80% of employees responded yes and 20% of
employees responded no for companys interest in entertaining new ideas and innovation
from employees.
TABLE 4.1.17
OPINION ABOUT SUPERIOR SUBORDINATE RELATIONSHIP
S.no Factors Respondents Percentage
1 Highly satisfied 12 24
2 Satisfied 22 44
3 Neutral 11 22
4 Dissatisfied 5 10
Total 50 100
CHART 4.1.17
OPINION ABOUT SUPERIOR SUBORDINATE RELATIONSHIP
Interpretation: It is infered that 24% of employees are highly satisfied,44% of
employees are satisfied,22% of employees are neutral and 10% of employees are
dissatisfied with superior subordinate relationship.
STATISTICAL TOOLS
4.2 CHI - SQUARE TEST
Calculation of :
Observed Expected /E
Frequency (O) Frequency (E)
10 10 0 0
22 10 144 14.4
11 10 1 0.1
4 10 36 3.6
3 10 49 4.9
TOTAL 23
Calculated ^2 =
0 Observed Frequency
E Expected Frequency
Calculated =23
Calculation of :
Observed Expected /E
Frequency (0) Frequency (E)
10 10 0 0
20 10 100 10
15 10 25 2.5
2 10 64 6.4
3 10 49 4.9
TOTAL 23.8
Calculated ^2 =
0 Observed Frequency
E Expected Frequency
Calculated =23
Promotion 20 4 8 I
Leave 7 1 0.7 IV
Power 15 3 4.5 II
Total 50 10 14.8
Inference:
From the table it is seen that most of the respondents have given first preference to
promotion, second preference to power, third preference to increase in salary and fourth
preference to leave with respect to the factors motivating them.
Inefficient 5 2 0.66 IV
Highly 3 1 0.2 V
inefficient
Neither 7 3 1.4 III
efficient nor
inefficient
Total 40 15 12
Inference:
From the table it is seen that most of the respondents have rated first for Efficient,
secondly Highly efficient, third rank is for Neither efficient nor inefficient, Inefficient
stands fourth, whereas Highly inefficient stands the last that has been improved.
FINDINGS
It is infered that 20% of employees has experience less than 1 year, 28% of
employees has experience of 1-2 year, 20% of employees has experience of 2-3
year,and 14% of employees has experience of 3-4 year and 18% of employees has
experience above 4 years.
It is infered that 56% of employee belongs to Middle level and 44% of employees
belongs to Managerial level
From the table it is infered that 20% of employees are highly satisfied with the
work environmnent,44% are satisfied with the work environmnent,22% are neutral
in satisfaction with the work environmnent,8% are dissatisfied with the work
environmnent and 6% are highly dissatisfied with the work environmnent.
From the table it is seen that 48% of employees are highly satisfied 32% are
satisfied 14% are neutral and 6% are dissatisfied with the incentives provided in
the organisation.
From the table it is infered that 40% of employees strongly agree,22% of
employees agree,28% of employees are neutral and 10% of employees disagree
with the managements interest in motivating employees.
It is infered that 76% of employees accepted the fact of stress due to over work in
the company and 24% of employees doesnt accepted the fact of stress due to over
work.
It is infered that all the respondents are satisfied with the medical facilities offered
by the organisation.
It is infered that 70% of employees are satisfied with the performance appraisal
system and 30% of employees are not satisfied with the performance appraisal
system followed in the organisation.
It is infered that 76% of employees are satisfied about balancing work life with the
personal life and 24% of employees are not satisfied in balancing the work life
with the personal life
The Management should take efforts in motivating the employees working in the
organization.
The Organization should concentrate on the career development of the employees
The job stress experienced by the employees can be reduced by increasing the
manpower in the organization.
The management should create growth opportunities for the employees
Grievance handling system can be made more efficient which results in increased
level of satisfaction among the employees.
Employees should be recognized for their work. This enables a better superior
Sub ordinate relationship within the organization.
The management should provide a better work environment which results in job
satisfaction to the employees.
CONCLUSION
In order to retain the employees within the organization, their complaints should be
resolved immediately. Many complaints can become grievances if unnoticed. The
Grievance Handling system should be made more efficient in the organization. The
employees are valuable assets to the organization retaining them is considered to be more
essential.. The organization has to motivate the employees. Motivation increases
performance level, it lowers employee turnover. Motivation ensures stability of
workforce and hence the stability of the organization. The organization has to concentrate
in career development of their employees. The increased attention to and concern for
individual careers generate more organizational loyalty and therefore lower employee
turnover. Organizations should proactively recognize the benefits of understanding,
managing and improving employee loyalty.
QUESTIONNAIRE
1. Name: (Optional)
2. Years of experience:
a) Less than 1 year b) 1-2 year c) 2-3 year d) 3-4 year e) Above 4 year
7. Give your opinion about the opportunities for growth and promotion
a) Highly satisfied b) Satisfied c) Dissatisfied d) Highly dissatisfied
10. Rank the following factors which motivate you the most
a) Increase in salary b) Promotion c) Leave d) Power
13. Does the Organization provide medical facilities as and when needed?
a) Yes b) No
15. Are you able to balance work life and personal life?
a) Yes b) No
17. Whether the company welcomes new ideas and innovations? a) Yes b) No
BIBLIOGRAPHY
1. Managing Human Resources, Tata McGraw - Bohlander, Snell, 2005
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