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Employee Retention in Private Sector Project Report - 126976322
Employee Retention in Private Sector Project Report - 126976322
DISSERTATION REPORT
2010
Submitted for the partial fulfillment of the requirement for the award
Of
SUBMITTED BY
ANANYA DUBEY
8007
DEPARTMENT OF MANAGEMENT
This is to certify that the dissertation entitled (employee retention in public sector)
and submitted by (Ananya Dubey) having roll no. 8007 for the partial fulfilment
of the requirements of PGDM (batch), IME, embodies the bonafide work done by
her supervision.
Signature of guide
Place:
Date:
ABSTRACT
Most employees feel that they are worth more than they are actually paid. There
is a natural disparity between what people think they should be paid and what
organizations spend in compensation. When the difference becomes too great and
another opportunity occurs, turnover can result. Pay is defined as the wages,
salary, or compensation given to an employee in exchange for services the
employee performs for the organization. Pay is more than "dollars and cents;" it
also acknowledges the worth and value of the human contribution. What people
are paid has been shown to have a clear, reliable impact on turnover in numerous
studies.
Employees comprise the most vital assets of the company. In a work place where
employees are not able to use their full potential and not heard and valued, they
are likely to leave because of stress and frustration. In a transparent environment
while employees get a sense of achievement and belongingness from a healthy
work environment, the company is benefited with a stronger, reliable work-force
harbouring bright new ideas for its growth Blog Online And Earn Money.
ACKNOWLEDGEMENT
I extend my regards and sincere thanks to Dr. Taruna Gautam with who support
& effort, I completed my project.
HR & I.T.
CONTENTS
1. Introduction
limitations
6. Descriptive work
7. Data Analysis
9. Bibliography
10. References
11.Appendices
12. Checklist of the items in the project
Introduction
Compensation:
Compensation constitutes the largest part of the employee retention process. The
employees always have high expectations regarding their compensation
packages.
Salary and wages represent the level of skill and experience an individual has.
Time to time increase in the salaries and wages of employees should be done.
And this increase should be based on the employees performance and his
contribution to the organization. Bonus: Bonuses are usually given to the
employees at the end of the year or on a festival. Economic benefits: It includes
paid holidays, leave travel concession, etc. Long-term incentives: Long term
incentives include stock options or stock grants. These incentives help retain
employees in the organization's start up stage.
NTPC
Learning and growth opportunities
Competitive rewards
Opportunity to grow, learn and implement
Strong social security and employee welfare performance- oriented
culture.
Johnson & Johnson
Strong values of trust, caring fairness, and respect within the organization
Freedom to operate at work
Early responsibility in career
Training and learning opportunities
Visible, transparent and accessible leaders
Competitive rewards
Innovative HR programs and practices
Tata Steel
Organization philosophy and culture
Job stability
Freedom to work and innovate
Colgate Palmolive India
Company brand
Open , transparent, and caring organization
Management according to the managing with respect to guiding
principles
Training ad development programs
Structured career planning process
Global career opportunities
Wipro
Companys brand as an employer
Early opportunities for growth
High degree of autonomy
Value compatibility
Innovative people program
TCS
The group brand equity
Strong corporate governance and citizenship
Commitment to learning and development
Best in people practices
Challenging assignments
Opportunity to work with fortune 500 clients
Organization Environment
Organizations can not keep aside the individual goals of employees and
foster organizations goals. Employees priority is to work for themselves
and later on comes the organization. If hes not satisfied with his growth,
hell not be able to contribute in organization growth.
Training and development: Employees should be trained and given
chance to improve and enhance their skills. Many employers fear that if
the employees are well rained, theyll leave the organization for better
jobs. Organization should not limit the resources on which organizations
success depends. These trainings can be given toimprove many skills
like:
Communications skills
Technical skills
In-house processes and procedures improvement related skills or
customer satisfaction related skills
Special project related skills
Need for such trainings can be recognized from individual performance reviews,
individual meetings, employee satisfaction surveys and by being in constant
touch with the employees.
Importance of Relationship in Employee Retention Program
Sometimes the relationship with the management and the peers becomes the
reason for an employee to leave the organization. The management is
sometimes not able to provide an employee a supportive work culture and
environment in terms of personal or professional relationships. There are times
when an employee starts feeling bitterness towards the management or peers.
This bitterness could be due to many reasons. This decreases employees
interest and he becomes demotivated. It leads to less satisfaction and eventually
attrition. A supportive work culture helps grow employee professionally and
boosts employee satisfaction. To enhance good professional relationships at
work, the management should keep the following points in mind. Respect for
the individual: Respect for the individual is the must in the organization.
Relationship with the immediate manager: A manger plays the role of
a mentor and a coach. He designs and plans work for each employee. It is
his duty to involve the employee in the processes of the organization. So
an organization should hire managers who can make and maintain good
relations with their subordinates.
Relationship with colleagues: Promote team work, not only among
teams but in different departments as well. This will induce competition
as well as improve the Relationship among colleagues.
Recruit whole heartedly: An employee should be recruited if there is a
proper place and duties for him to perform. Otherwise hell feel useless
and will be dissatisfied.
Employees should know what the organization expects from them and what
their expectation from the organization is. Deliver what is promised. Promote an
employee based culture: The employee should know that the organization is
there to support him at the time of need. Show them that the organization cares
and hell show the same for the organization. An employee based culture may
include decision making authority, availability of resources, open door policy,
etc.
Individual development: Taking proper care of employees includes
acknowledgement to the employees dreams and personal goals. Create
opportunities for their career growth by providing mentorship programs,
certifications, educational courses, etc.
Induce loyalty: Organizations should be loyal as well as they should
promote loyalty in the employees too. Try to make the current employees
stay instead of recruiting new ones.
Support Lack of support from management can sometimes serve as a reason for
employee retention. Supervisor should support his subordinates in a way so that
each one of them is a success. Management should try to focus on its employees
and support them not only in their difficult times at work but also through the
times of personal crisis. Management can support employees by providing them
recognition and appreciation. Employers can also provide valuable feedback to
employees and make them feel valued to the organization.
The feedback from supervisor helps the employee to feel more responsible,
confident and empowered. Top management can also support its employees in
their personal crisis by providing personal loans during emergencies, childcare
services, employee assistance Programs, conseling services, etc
Employers can also support their employees by creating an environment of trust
and inculcating the organizational values into employees. Thus employers can
support their employees in a number of ways as follows:
By providing feedback
By giving recognition and rewards
By counseling them
By providing emotional support
RESEARCH METHODOLOGY
Research Design:
The research design indicates the type of research methodology under taken to
collect the information for the study.
The researcher used both descriptive and analytical type of research design for
his research study. The main objective of using descriptive research is to
describe the state of affairs as it exits at present. It mainly involves surveys and
fact finding enquiries of different kinds. The researcher used descriptive
research to discover the characteristics of customers. Descriptive research also
includes demography characteristic of consumer who use the product. The
researcher also used analytical research design to analyze the existing facts
from the data collected from the customer.
Area of study:
The area of study is confined to employees of GEMINI COMMUNICATION
LTD,Chennai.
Research instrument:
The Structured questionnaire is used as the research instrument for the study.
Questionnaire Design:
The questionnaire for the research was framed in a clear manner such that it
enables the respondents to understand and answer the question easily. The
questionnaire was designed in such a way that the questions are short and
simple and is arranged in a logical manner.
Pilot study:
Sampling design:
Sample size:
Sample size=125 samples, variance and confidence methods are used for
determining sample size.
Sampling Technique:
Primary data:
Primary data is the new or fresh data collected from the respondents through
structured scheduled questionnaire.
Secondary data:
The secondary data are collected through the structured questionnaire, literature
review and also from the past records maintained by the company.
PERCENTAGE ANALYSIS:
Formula:
Mean score = total score/no of respondents.
Where total score = no of respondents*weighted average
2 n1 n2- n1- n1
r = 2 n1n2
(n1+ n2)2 (n1+ n2-1 )
Lower limit = r + (2.58)
Upper limit = r + (2.58)
1. The findings of the study are subjected to bias and prejudice of the
respondents.
2. Area of the study is confined to the employees in Chennai only.
3. Time factor can be considered as a main limitation.
4. The findings of the study are solely based on the information provided by
therespondents.
5. The accuracy of findings is limited by the accuracy of statistical tools used
for analysis.
6. Findings of the research may change due to area, demography, age condition
of economy etc.
1. PERCENTAGE ANAYLSIS
2. AWARENESS OF HR POLICIES
Chi-Square Test
To find whether there exists a significant relationship between Work Culture of
the Company and interpersonal relationship between employees.
K=20:
Salary, Superior Role, Team Coordination, Work responsibilities, Rules and
Policies, Physical work environment Training
Calculated value : S= 5815.714
Table value : 1158
Calculated value is more than table value therefore reject H0
Result:
There is a significant difference in the rank assigned by respondents towards the
attributes that gives them satisfaction in the company.
Purpose statement: The purpose of the thesis is to investigate and analyze how
company leaders today can retain their key employees. How can the provision
of key human resources develop a long-term relationship that makes top
employees stay in the company? The study aims to establish the procedure
leaders apply to retain employees. The purpose is to compare the qualitative
study, made at the case company, with findings from the thesis theoretical
framework.
The basic practices which should be kept in mind in the employee retention
strategies are:
1. Hire the right people in the first place.
2. Empower the employees: Give the employees the authority to get things
done.
3. Make employees realize that they are the most valuable asset of
theorganization.
4. Have faith in them, trust and respect them
5. Provide them information and knowledge.
6. Keep providing them feedback on their performance.
7. Recognize and appreciate their achievements.
8. Keep their morale high.
9. Create an environment where the employees want to work and have fun.
The new joinees should fit with the organizations culture. The personality,
leadership characteristics of the candidate should be in sync with the culture of
the hiring organization.
Referral bonus should be given to the employees for successful hires. They are
the best source of networking. Proper training should be given to the managers
on interview and management techniques. An internship program can be
followed to recruit the fresh graduates.
Retention Success Mantra
Providing quality work life involves taking care of the following aspects:
Occupational health care: The safe work environment provides the basis for
the person to enjoy working. The work should not pose a health hazard for the
person. The employer and employee, aware of their risks and rights, could
achieve a lot in Their mutually beneficial dialogue.
Engage the new recruits: The newly hired employees are said to be least
engaged in the organization. Keeping them engaged is an important task. The
fresh talent should be utilized to maximum before they start feeling bored in the
organization.
Feedback
Category A: These are the employees who lack communication with their
employers.
Category C: These are the employees who have proper, well structured
communication with their employers. Communication is also the way to win the
employees trust in the organization. Employees trust the employers who are
friendly and open to them. This trust leads to employee loyalty and finally
retention.
Employers also feel that the immediate supervisors are the most authenticated
and trusted source of information for them. So the organizations should hire
managers who are active communicators. Communication mediums.
Open door policy: Organizations should support open door policies so that the
employees feel comfortable and are able to express their doubts and feeling to
their employers. Frequent meetings and Social gatherings Emails, Newsletters,
Intranet and many more. So there should be effective communication across the
organization and this communication should be two-way. Communication alone
can lead to unimaginable heights of employee retention.
Job is not what the employee expected to be: Sometimes the job
responsibilities dont come out to be same as expected by the candidates.
Unexpected job responsibilities lead to job dissatisfaction.
Job and person mismatch: A candidate may be fit to do a certain type of job
which matches his personality. If he is given a job which mismatches his
personality, then he wont be able to perform it well and will try to find out
reasons to leave the job.
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.
New job offer: An attractive job offer which an employee thinks is good for
him with respect to job responsibility, compensation, growth and learning etc.
can lead an employee to leave the organization.
Higher attrition rates within a particular industry have forced companies to use
some innovative strategies to retain employees. Retention Bonus is one of the
important tools that are being used to retain employees. Retention bonus is an
incentive paid to an employee to retain them through a critical business cycle.
Retention bonuses are becoming more common in the corporate world because
companies are going through more transitions like mergers and acquisitions.
They need to give key people an attractive incentive to stay on through these
transitions to ensure productivity. Retention bonuses have proven to be a useful
tool in persuading employees to stay. A retention bonus plan is not a panacea.
According to a survey, non management employees generally receive about 10
percent of their annual salaries in bonuses, while management and top-level
supervisors earn an additional 50 percent of their annual salaries. While bonuses
based on salary percentages are the generally used, some companies choose to
pay a flat figure. In some companies, bonuses range from 25 percent to 50
percent of annual salary, depending on position, tenure and other factors.
employee retention starts with recruitment. Early departures arise from the
wrong recruitment process. Here are a few ways to ensure how to hire the right
talent for a particular job. Hire appropriate candidates. Hire candidates who are
actually suitable for the job. For this the employer should understand the job
requirements clearly. Dont hire under qualified or clearly overqualified
candidates.
Provide realistic job preview at the time of hiring: Mostly employees leave
an organization because they are given the real picture of their job
responsibilities at the time of joining. Attrition rate can be reduced if a right
person is hired for a right job. Realistic preview of the job responsibilities can
be given to the employment seekers by various methods like discussions, trial
periods, internships etc.
Clearly discuss what is expected from the employee: Before joining the
organization, tell the candidate what is expected from him. Setting wrong
expectations or hiding expectations will result in early leaving of employees.
Discuss what the expectations of the employees are: Ask employees what
they expect from the organization. Be realistic. If their requirements can be
fulfilled only then promise them. Or tell them beforehand that their
requirements cannot be fulfilled.
Dont show them an unrealistic picture Culture fit: Try to judge individuals
capability to adapt to the organizations culture. A drastic change in the culture
may give a culture shock to the candidate.
Referrals: According to the research, referred candidates stay longer with the
organization. There is a fear of hampering the image and reputation of the
person who referred the candidate.
Delegation: Many team leaders and managers feel that they are the only people
who can do a particular task or job. Therefore, they do not delegate their jobs as
much as they should. Delegation is a great way to develop competencies. Extra
Responsibility: Giving extra responsibility to employees is another way to get
them engaged with the company. However, just giving the extra responsibility
does not help. The manager must spend good time teaching the employees of
how to manage responsibilities given to them so that they dont feel over
burdened.
Focus on future career: Employees are always concerned about their future
career. A manager should focus on showing employees his career ladder. If an
employee sees that his current job offers a path towards their future career
aspirations, then they are likely to stay longer in the company. Therefore,
managers should play the role of career counsellors as well.
People want to enjoy their work so make work fun and enjoyable. Understand
that employees need to balance life and work so offer flexible starting times
and core hours. Provide 360 feedback surveys and other questionnaires to
foster open communication. Consider allowing anonymous surveys
occasionally so employees will be more honest and candid with their opinions.
Provide opportunities within the company for career progression and cross-
training. Offer attractive, competitive benefits .
One of the keys to avoiding turnover is to make rewards count. Rewards are to
be immediate, appropriate, and personal. Organizations may want to evaluate
whether getting a bonus at the end of the year is more or less rewarding than
getting smaller, more frequent payouts. Additionally, a personal note may mean
more than a generic company award. Employees should be asked for input on
their most desirable form of recognition. Use what employees say when it
comes time to reward for performance.
One of the most popular awards at First Data is called the "Fat Cat Award" that
consists of: $500 gift check Professional portrait of the employee
Appreciation letter from the CEO and senior management
E-mails, phone calls, and notes from peers
In addition to nonmonetary rewards, employees can be rewarded using money
in numerous ways. Cash is a welcome motivator and reward for improving
performance, whether at formal meetings or on the spot. Variable bonuses
linked to performance are another popular reward strategy. Profit sharing and
pay-for-skills are monetary bonus plans that both motivate individuals and
improve goal achievement. Small acts of recognition are valuable for employee
daily Retention. Sometimes a personal note may mean more than a generic
company award.
In one survey, employees cited the following as meaningful rewards (Moss,
2000):
Employee of the month awards Years of service awards
Bonus pay (above and beyond overtime) for weekend work
Invitations for technicians to technical shows and other industry events
Meaningful and Retention Rewards
What gives meaning to rewards and recognition? What makes them effective?
First, rewards and recognition should be based on a clear set of standards, with
performance verifiable or observable. The standards for the reward should also
be achievable. If the reward is based on an unachievable result, such as a
production goal that is beyond employees' power, then those employees will not
be motivated. Meaningful rewards and recognition that are achievable have the
greatest impact.
Case Studies
the hiring process, in-ternal labor market and career, motivation and
performance, and finally culture and leader-ship. These four categories are
initially based on Leigh Branham?s book: ?Keeping the people who keep you in
business: 24 ways to hang on to your most valuable talent? (Bran-ham, 2001).
The survey has a quantitative approach with a web based questionnaire and
includes 129 respondents from banks, insurance and finance companies. The
theoretical framework includes leadership and leadership style, financial as well
as non-financial remuneration and research done in later years regarding
participation, feedback, autonomy, fairness, responsibility, development and
work-atmosphere connected to retention.
Conclusion: The result shows that regarding leadership the respondents prefer
leadership based on relations were they feel appreciation. Both appreciations
from the closest manager as well as the company management influences
employee job satisfaction in a positive way. More money was the most common
reason for wanting to change jobs, and when asking how the remuneration
system should be designed, base pay with additional bonus and benefits were
preferred. But also non financial factors such as participation, feedback,
autonomy, fairness, responsibility, development and work-atmosphere must be
taken in consideration to satisfy since they seem to increase employees?
Willingness to stay in the company.
Research method:
The study is a qualitative, as well as a theoretical study where empirical
findings and theories has been compared. The intention of investigating and
using the Finnish company Tradeka Limited as a case company, is to make the
information from the theories more valid, and also the interest in how retention
management works in practice. Eleven qualitative interviews were conducted at
Tradeka? financial department, both with supervisors and employees to get a
broader view at the phenomenon retention management. Result: Leaders and
their skill in creating a culture of retention, has becoming a key in why people
stay and what usually drives them away from a company. The leader has
become the main factor in what motivates peoples decision to stay or leave.
For organizations to keep its key employees their number one priority should be
to look at their management, because people leave managers and not
companies. Characteristics in a leader that are of importance, as the leader plays
a key role in retention management is: trust builder, esteem builder,
communicator, talent developer and coach, and talent finder. The leaders
relation to the employees plays a central role in retaining employees, because
employees need to feel involvement, and that their presence count. When
retention is a core value, good things happen for customers, employees, and the
company. because employees need to feel involvement, and that their presence
count. When retention is a core value, good things happen for customers,
employees, and the company.
FINDINGS
It is found out that, 76% of respondents are getting right amount of accurate
information at right time and 24% of respondents are not getting right amount
of accurate information at right time.
expectation and 18% respondents are not able to meet superiors expectation.
It is found out that,57% of respondents feels that there pay is on par with
compare to employees handling similar responsibilities, and 39% of
respondents feels that there pay is less with compare to employees handling
similar responsibilities.
It is found out that, 70% of respondents are satisfied with hygiene and
system, storage facilities of company and 60% of respondents are not satisfied
with Availability of system, storage facilities of company.
It is found out that, 78% of respondents skills are recognized by superiors and
It is found out that, 74% of respondents feel that superiors are taking efforts to
motivate them and 26% of respondents feel that superiors are not taking efforts
to motivate them.
It is found out that, 83% of respondents feel that workload is manageable and
It is found out that,55% of respondents feels that the field worker are able to
get updates on internal activities, and 45% of respondents feels that the field
worker are not able to get updates on internal activities.
It is found out that, 89% of respondents feel that the superiors are easily
accessible and 11% of respondents feel that the superiors are not easily
accessible.
It is found out that, 51% of respondents feel that their complaints are resolved
quickly and 49% of respondents feel that their complaints are not resolved
quickly.
From weighted Average analysis it is found that most of the respondents are
From weighted Average analysis it is found that employees feel that their
From weighted Average analysis it is found that respondents feel that training
From weighted Average analysis it is found that most of the respondents are
From One Run Test it is found that the samples are taken randomly.
SUGGESTIONS
Conclusion
Recommendations
BIBLIOGRAPHY
BOOKS