EMPLOYEE RETENTION IN HCL

submitted in partial fulfillment for the award of the degree of Masters of Business Administration , Punjab Technical University, Jalandhar (2000-11)

Submitted to: RBIEBT (MBA)

Submitted by: Name: Simranjeet kaur University Roll no.

____________________________________________________________ Rayat & Bahra Institute of Engineering and Bio- Technology (MBA),

Sahauran, Kharar.

DECLARATION
I the undersign hereby declare that the project report entitled ´Employee Retention in HCLµ written and submitted by me to RBIEBT, Sahauran in partial fulfillment of the requirement for the award of M.B.A under the guidance of my mentor Mr. TANVIR SINGH NOOR, is my original

work and the conclusion drawn there in are based on the material collected by myself. I hereby declare also this study has not been permitted by me to publish anywhere.

Simranjeet kaur

ACKNOWLEDGEMENT
I take the opportunity to express our gratitude to all the concerned people who have directly or indirectly contributed towards completion of this project. I extend my sincere gratitude towards HCL Career Development Center (Mohail) for providing the opportunity and resources to work on this project. I am extremely grateful to Mr. TANVIR SINGH NOOR, my mentor in HCL for his guidance and invaluable advice during the project whose insight encouraged me to go beyond the scope of the project and this broadened me learning on this project.

Simranjeet kaur

PREFACE

Employee retention refers to policies and practices companies use to prevent valuable employees from leaving their jobs. How to retain valuable employees is one of the biggest problem that plague companies in the competitive marketplace. Not too long ago, companies accepted the ´revolving door policyµ as part of doing business and were quick to fill a vacant job with another eager candidate. Nowadays, businesses often find that they spend considerable time, effort, and money to train an employee only to have them develop into a valuable commodity and leave the company for greener pastures. In order to create a successful company, employers should consider as many options as possible when it comes to retaining employees, while at the same time securing their trust and loyalty so they have less of a desire to leave in the future.

CONTENTS .

Introduction .

responsibility. autonomy. There are many Organizations which are looking for such employees. he may switch over to some other more suitable job. RETENTION Employee retention is a process in which the employees are encouraged to remain with the organization for the maximum period of time or until the completion of the project. remuneration and elements like participation. There is no dearth of opportunities for a talented person. If a person is not satisfied by the job he¶s doing. It is the responsibility of the employer to retain their best employees. feedback. Research told us that leadership. But retention is even more important than hiring. Hiring knowledgeable people for the job is essential for an employer. they . It is a fact that a too high turnover rate affects companies in a negative way and retention strategies should therefore be high on the agenda. When looking at this problem area we found that there may be actions and tools that companies could use to come to terms with this problem. If they don¶t. and it is more important than ever to have the right employees in order to survive the surrounding competition. In today¶s environment it becomes very important for organizations to retain their employees. fairness. As soon as they feel dissatisfied with the current employer or the job. Employee retention is beneficial for the organization as well as the employee. Employees today are different. They are not the ones who don¶t have good opportunities in hand. development and work-atmosphere is important for job satisfaction and retention. they switch over to the next job.CHAPTER 1 INTRODUCTION Companies today are forced to function in a world full of change and complexity.

When an employee leaves. the relationships that employee built for the company are severed. A good employer should know how to attract and retain its employees. which could lead to potential customer loss. the effect is felt throughout the organization. he takes with him valuable knowledge about the company. Loss of Company Knowledge: When an employee leaves. Turnover leads to more turnovers: When an employee terminates. current projects and past history (sometimes to competitors).IMPORTANCE OF EMPLOYEE RETENTION The Cost of Turnover: The cost of employee turnover adds hundreds of thousands of money to a company's expenses. Retention involves five major things: 1) compensation 2) environment 3) growth . then good amount of time is lost in hiring a new employee and then training him/her and this goes to the loss of the company directly which many a times goes unnoticed. Higher retention rates motivate potential employees to join the organization. Often much time and money has been spent on the employee in expectation of a future return. the investment is not realized. industry experts often quote 25% of the average employee salary as a conservative estimate. training costs and productivity loss). Co-workers are often required to pick up the slack. customers. Relationships are developed that encourage continued sponsorship of the business. The unspoken negativity often intensifies for the remaining staff. Interruption of Customer Service: Customers and clients do business with a company in part because of the people. Goodwill of the company: The goodwill of a company is maintained when the attrition rates are low. When the employee leaves. And even after this you cannot assure us of the same efficiency from the new employee would be left with no good employees. While it is difficult to fully calculate the cost of turnover (including hiring costs. Regaining efficiency: If an employee resigns.

growth and learning etc. seniors and management can make office environment unfriendly and difficult to work in. Unexpected job responsibilities lead to job dissatisfaction. 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. the employee feels de-motivated and loses interest in job. y y Compensation: Better compensation packages being offered by other companies may attract employees towards themselves. can lead an employee to leave the organization. y Lack of appreciation: If the work is not appreciated by the supervisor. seniors and management: Trust is the most important factor that is required for an individual to stay in the job. . y No growth opportunities: No or less learning and growth opportunities in the current job will make candidate¶s job and career stagnant. There are certain circumstances that lead to their leaving the organization. The most common reasons can be: Job is not what the employee expected to be: Sometimes the job responsibilities don¶t come out to be same as expected by the candidates.4) relationship 5) support WHY EMPLOYEES LEAVE THE ORGANISATION Employees do not leave an organization without any significant reason. y Lack of trust and support in coworkers. then he won¶t be able to perform it well and will try to find out reasons to leave the job. y New job offer: An attractive job offer which an employee thinks is good for him with respect to job responsibility. If he is given a job which mismatches his personality. Job and person mismatch: A candidate may be fit to do a certain type of job which matches his personality. Nonsupportive coworkers. compensation.

These practices can be categorized in 3 levels: Low. Keep their morale high. Provide them information and knowledge. 3. 7. Keep providing them feedback on their performance. 6. 5. Empower the employees: Give the employees the authority to get things done. . 9. Create an environment where the employees want to work and have fun. Recognize and appreciate their achievements. . Have faith in them. 4. Hire the right people in the first place. Make employees realize that they are the most valuable asset of the organization. trust them and respect them. 2. medium and high level.STRATEGIES FOR EMPLOYEE RETENTION The basic practices which should be kept in mind in the employee retention strategies are: 1. 8.

benefits and opportunities for individual growth. these days. employees look beyond the money factor. Four basic factors that play an important role in increasing employee retention include salary and remuneration. hardly reduces turnover. But are they really positively contributing to the retention rates of a company? Basic salary. . Retaining quality performers contributes to productivity of the organization and increases morale among employees. Today.HOW TO INCREASE EMPLOYEE RETENTION Companies have now realized the importance of retaining their quality workforce. providing recognition.

Employee Reward Program: A positive recognition for work boosts the motivational levels of employees. Most importantly.Employee retention can be increase by inculcating the following practices: 1. . 2. The award can be in terms of gifts or money. Project based recognition also has great significance. Open communication tends to keep employees informed on key issues. they need to know that their opinions matter and that management is 100% interested in their input. Open Communication: A culture of open communication enforces loyalty among employees. Recognition can be made explicit by providing awards like best employee of the month or punctuality award.

Recreation facilities: Recreational facilities help in keeping employees away from stress factors. boost employee morale hence achieve retention. But some times these strategies are not used properly or even worse. He is always keen to know his career path in the company. et al. Performance Based Bonus: A provision of performance linked bonus can be made wherein an employee is able to relate his performance with the company profits and hence will work hard. Various recreational programs should be arranged. Career Development Program: Every individual is worried about his/her career. 5. sports activities. The basic purpose of these strategies should be to increase employee satisfaction.3. Because of which these strategies fail to achieve the . They may include taking employees to trips annually or bi-annually. celebrating anniversaries. This bonus should strictly be productivity based. 4. Gifts at Some Occasions: Giving out some gifts at the time of one or two festivals to the employees making them feel good and understand that the management is concerned about them. Organizations can offer various technical certification courses which will help employee in enhancing his knowledge. There are so many tactics and strategies used in retention of employees by the organizations. RETENTION MYTHS The process of retention is not as easy at it seems. 6. wrong strategies are used.

greater . Issues that are mainly the cause of dissatisfaction are organization¶s policies and procedures. For such employees. Money can make an employee stay in an organization but not for long. They can generate work speedily and in volumes but can¶t boost employee commitment. Incentives can increase productivity: Incentives can surely increase productivity but not for long term. The factors more important than money are job satisfaction.desired results. What really glues employees to their work and organization is quality work. Employees look for variety. In-fact employees feel more responsible if they are given extra responsibilities apart from their regular job. Employees leave an organization for more pay: Money may be the motivating factor for some but for many people it is not the most important factor. When employees leave. job responsibilities. 1. recognition. The employers should understand this and work out some other ways to make employees feel satisfied. achievement. respect. relationship with the supervisor and salary. Let us learn about some of these myths. Money matters more to the low-income-employees for whom it¶s a survival issue. 2. management tries to retain them by offering more money. is the main concern. But instead they should try to figure out the main reason behind it. working conditions. etc. and individual¶s skill development. 3. meaningful responsibilities. respect. recognition. growth opportunities and friendly supervisors. These myths exist because the strategies being used are either wrong or are being used from a long time. Employees run away from responsibilities: It is a myth that employees run from responsibilities. Cash incentives. Rather speed can hamper the quality of work produced. growth. volume work targets and speed awards are old management beliefs. There are many myths related to the employee retention process. These myths prevent the employer from successfully implementing the retention strategies.

Therefore. They want opportunities to learn and grow. appreciation. pay attention to their aspirations. managers and team leaders play an active and vital role in employee retention. However. It is seen that managers who respect and value employees¶ competency. This will induce a sense of pride in the employee and will improve the relationship between the management and the employee. They are free of cost. Loyalty is a thing of the past: Employees can be loyal but what they need is an employer for whom they can be loyal.control on the processes and authority to take decisions in their present job. Taking measures to increase employee satisfaction will be expensive for the organizations: The things actually required to improve employee satisfaction like respect. etc. can¶t be bought. 5. . research has shown that people join companies. An employer or management that reacts well to the employee¶s ideas and suggestions is enough for the employees to be retained. Management can assign extra responsibilities to their employees and appreciate them on the completion of these tasks. but leave because of what their managers¶ do or don¶t do. low salary comes out to be a common excuse. value the quality of work life and provided chances for learning have loyal and engaged employees. career growth and development. 4. assure challenging work. MANAGERS ROLE IN RETENTION When asked about why employees leave. There is no reason for the employee to hop jobs if he¶s satisfied with the employer.

However. Therefore. Motivation does not necessarily have to come through fun events such as parties. Employees who look forward to these events and are likely to remain more engaged. they will have one more reason to stay in the team. y Providing coaching: Everyone wants to be successful in his or her current job. This can be done in a following way: y Creating a Motivating Environment: Team leaders who create motivating environments are likely to keep their team members together for a longer period of time. When agents see the team leader standing up for them. arranging a talk by the VP of Quality on career opportunities in the field of quality. coaching is followed by monitoring performance and providing feedback on the same. team outings etc. celebrations.g. . they also need to educate their managers about the realities on the ground. y Standing up for the Team: Team leaders are closest to their team members.Managers and team leaders can reduce the attrition levels considerably by creating a motivating team culture and improving the relationships with team members. not everyone knows how. They can also come through serious events e. However. one of the key responsibilities will be providing coaching that is intended to improve the performance of employees. Managers often tend to escape this role by just coaching their employees. While they need to ensure smooth functioning of their teams by implementing management decisions.

Delegation is a great way to develop competencies. just giving the extra responsibility does not help. If an employee sees that his current job offers a path towards their future career aspirations.y Delegation: Many team leaders and managers feel that they are the only people who can do a particular task or job. y Focus on future career: Employees are always concerned about their future career. The manager must spend good time teaching the employees of how to manage responsibilities given to them so that they don¶t feel over burdened. y Extra Responsibility: Giving extra responsibility to employees is another way to get them engaged with the company. they do not delegate their jobs as much as they should. Therefore. However. then they are likely to stay longer in the company. Therefore. . managers should play the role of career counselors as well. A manager should focus on showing employees his career ladder.

Sources of data Methods of data collection  Communication. Research Problem Scope of the study The scope of the study covers in depth. remuneration and elements such as participation.CHAPTER 2 REVIEW OF LITERATURE Objective of the study The main objective is to increase the understanding regarding employee¶s retention in relation to leadership style. feedback. internet and also preparation of the questionnaire with the help of the project guide. formats being followed and is limited to the company Hcl and its employees. the employee retention practices. libraries. Sample Size To understand the training and development scenario at Reliance Mobile and what the trainee really feels about the training they have undergone and further what kind of . modules. responsibility. autonomy. fairness. development and work-atmosphere Research Design  Descriptive Design. asking questions and receiving a response in person  Visiting the various organizations.

journals. and other corporate publications Limitations of the study . Secondary data collected through magazines.training they look for. websites. Do they really look for any kind of training or not? To study the above aspect we covered almost about 40 people from almost all the department at of the company Reliance Mobile Sample area Statistical tools used for interpretation and analysis   Primary data collected through questionnaires and informal interviews.

. I get the best possible work environment Response Agree Strongly Agree Neutral Disagree Strongly Disagree Total 9 2 3 0 0 14 No. Of Respondents 65 14 21 0 0 100 Percentage Agree 22% 14% 64% Strongly Agree Neutral Disagree Strongly Disagree Interpretation:The above chart indicates that employees are satisfied with working environment provided by organization.CHAPTER 4 INTERPRETATION AND ANALYSIS Q1.

Response Agree Strongly Agree Neutral Disagree Strongly Disagree Total No. . of respondents 8 4 2 0 0 14 Percentage 57 29 14 0 0 100 14% Agree Strongly Agree Neutral 29% 57% Disagree Strongly Disagree INTERPRETATION:The above chart indicates that the most of the employee feel pride to work in the company.Q 2. I take pride in the company.

Response Agree Strongly Agree Neutral Disagree Strongly Disagree Total No. of respondents 5 2 4 2 1 14 Percentage 36 14 29 14 7 100 7% 14% 36% Agree Strongly Agree Neutral 29% 14% Disagree Strongly Disagree INTERPRETATION:50% people are in favor with above statement but 50% people have doubt about it. .Q 3. My organization lives its corporate values.

of respondents 3 2 6 3 0 14 Percentage 21 14 44 21 0 100 Agree 21% 22% Strongly Agree Neutral 14% Disagree 43% Strongly Disagree INTERPRETATION:The above graph indicates that organization provides employee appreciation program but not for all employees. My organization provides employee appreciation program Response Agree Strongly Agree Neutral Disagree Strongly Disagree Total No.Q 4. .

Response Agree Strongly Agree Neutral Disagree Strongly Disagree Total No. We celebrate personal events in the work place such as birthday.Q 5. of respondents 5 8 1 0 0 14 Percentage 36 57 7 0 0 100 7% 36% Agree Strongly Agree Neutral 57% Disagree Strongly Disagree INTERPRETATION:This graph indicates that organization fully motivate its employees by celebrating their birthday and other parties. .

. it needs to give more focus this issue. Moreover. of respondents 5 2 5 2 0 14 Percentage 36 14 36 14 0 100 14% 36% Agree Strongly Agree Neutral 36% 14% Disagree Strongly Disagree INTERPRETATION:The above graph indicates that organization provides training and development opportunities to the employees adequately.Q6 My organization provides training and development opportunities to the employees Response Agree Strongly Agree Neutral Disagree Strongly Disagree Total No.

My organization has an effective mentoring or budding system? Response Agree Strongly Agree Neutral Disagree Strongly Disagree Total No.Q7. of respondents 7 1 5 1 0 14 Percentage 50 7 36 7 0 100 7% Agree Strongly Agree 36% 50% Neutral Disagree 7% Strongly Disagree INTERPRETATION:The above graph shows that organization has an effective mentoring or budding system .

Response Agree Strongly Agree Neutral Disagree Strongly Disagree Total No. The compensation plans are managed fairly and equitably in the organization.Q8. of respondents 4 0 8 0 2 14 Percentage 29 0 57 0 14 100 14% 29% Agree Strongly Agree Neutral Disagree 57% Strongly Disagree INTERPRETATION:The above graph indicates that the organization does not much take care about the compensation plans for employees. .

Q9. of respondents 4 0 5 2 3 14 Percentage 29` 0 36 14 21 100 Agree 21% 29% Strongly Agree Neutral Disagree 14% 36% Strongly Disagree INTERPRETATION:The above graph indicates that organization has not sufficient offers for profit sharing plans to the employees . The organization offers profit sharing plans to the employees. Response Agree Strongly Agree Neutral Disagree Strongly Disagree Total No.

Q10. . of respondents 8 2 3 1 0 14 Percentage 58 14 21 7 0 100 7% 22% 57% 14% Agree Strongly Agree Neutral Disagree Strongly Disagree INTERPRETATION:The above graph indicates that employees are fully preferred to work in that organization and also company has full ability to retain the employees. Organization is able to retain employees: Response Agree Strongly Agree Neutral Disagree Strongly Disagree Total No.

Response Agree Strongly Agree Neutral Disagree Strongly Disagree Total No. of respondents 5 5 4 0 0 14 Percentage 35 36 29 0 0 100 Agree 28% 36% Strongly Agree Neutral Disagree 36% Strongly Disagree INTERPRETATION:The above Chart indicates full fledge favor of the manager of company to build personal bonds with their subordinates . Manager building personal bonds with their subordinates.Q11.

of respondents 6 1 3 1 3 14 Percentage 44 7 21 7 21 100 Agree 21% Strongly Agree 43% 7% 22% 7% Strongly Disagree Neutral Disagree INTERPRETATION:The above Chart indicates that company preferred to give reward to deserving candidates. but it should give more concentration to reward system because it is the best source of motivating employees . Reward systems exist in organization. Response Agree Strongly Agree Neutral Disagree Strongly Disagree Total No.Q12.

of respondents 5 4 1 2 2 14 Percentage 36 29 7 14 14 100 14% 36% 14% Agree Strongly Agree Neutral 7% 29% Disagree Strongly Disagree INTERPRETATION:The above Chart indicates that company need to be more challenging to their competitors in order to get the higher rank in the corporate.Q13. . Company has exciting challenges. Response Agree Strongly Agree Neutral Disagree Strongly Disagree Total No.

. and employee has right of self-sufficiency to take decisions. Employee has Freedom and autonomy Response Agree Strongly Agree Neutral Disagree Strongly Disagree Total No.Q14. of respondents 6 3 4 0 1 14 Percentage 43 21 29 0 7 100 7% 43% Agree Strongly Agree Neutral Disagree 29% 21% Strongly Disagree INTERPRETATION:The above Chart indicates that company gives the freedom to the employees.

But overall job has exciting challenge with in organization . it may be because of the different job responsibility of the different employees. Job has exciting challenges.Q15. of respondents 4 4 3 1 2 14 Percentage 29 29 21 7 14 100 14% 7% 21% 29% 29% Agree Strongly Agree Neutral Disagree Strongly Disagree INTERPRETATION:The above Chart indicates the different opinions. Response Agree Strongly Agree Neutral Disagree Strongly Disagree Total No.

of respondents 4 4 4 1 1 14 Percentage 28 29 29 7 7 100 7% 7% 28% 29% 29% Agree Strongly Agree Neutral Disagree Strongly Disagree INTERPRETATION:The above Chart indicates that manager is fully able to describe the responsibility of job to employees. Manager clearly defines job responsibilities. . Manager himself is pretended to be fully responsible towards his employees and job. Response Agree Strongly Agree Neutral Disagree Strongly Disagree Total No.Q16.

of respondents 5 7 2 0 0 14 Percentage 36 50 14 0 0 100 14% 36% Agree Strongly Agree Neutral Disagree 50% Strongly Disagree INTERPRETATION:The above Chart is fully favorable to the manager to give confidence and give full support to his employees to achieve the goals of companies. This the good sign for the company¶s growth.Q17. Manager encourages for high achievement. . Response Agree Strongly Agree Neutral Disagree Strongly Disagree Total No.

Manager gets support and teamwork from other areas. He need to give more focus on this area. . Response Agree Strongly Agree Neutral Disagree Strongly Disagree Total No. of respondents 5 2 2 3 2 14 Percentage 37 14 14 21 14 100 14% 36% 22% Agree Strongly Agree Neutral Disagree 14% 14% Strongly Disagree INTERPRETATION:The above Chart indicates that manager does not much preferred to get support from other areas.Q18.

Response Agree Strongly Agree Neutral Disagree Strongly Disagree Total No. Manager focus on continuous feedback. of respondents 8 2 2 1 1 14 Percentage 58 14 14 7 7 100 7% 7% 14% Neutral Agree Strongly Agree 57% 15% Disagree Strongly Disagree INTERPRETATION:Feedback is mandatory to control over the retention rate of company. that¶s why he able to retain his employees. . Manager provides continuous feedback.Q19.

. Organization spends more time and money on retention program rather than on recruitment. Company gives more focus on the retention rate than the recruitment of new employee. of respondents 5 1 4 2 2 14 Percentage 36 7 29 14 14 100 14% 36% 14% Agree Strongly Agree Neutral Disagree 29% 7% Strongly Disagree INTERPRETATION:To control the retention rate would be more profitable rather than to spend money on new employee.Q20. Response Agree Strongly Agree Neutral Disagree Strongly Disagree Total No.

CHAPTER 5 FINDINGS OF THE STUDY .

stock-options. what employees really want is some assurance of continued employability. and flextime are appreciated. While bonuses. Here are the most popular worker retention strategies: 78% conferences and seminars 67% tuition reimbursement 67% managerial training 58% pay for performance 57% flextime 57% interpersonal skills training 55% technical training .CHAPTER 6 SUGGESTIONS AND RECOMMENDATIONS To control the retention rate would be more profitable for the organization. ³Show me the money´ is not the singular solution. Hcl almost fulfill the issue of employee retention but there is something to improve as discuss above result.

CHAPTER 7 CONCLUSION .

REFERENCES .

ANNEXURE .

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