Executive Summary 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. 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. As soon as they feel dissatisfied with the current employer or the job, they switch over to the next job. It is the responsibility of the employer to retain their best employees. If they don’t, they would be left with no good employees. A good employer should know how to attract and retain its employees. 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 workforce harboring bright new ideas for its growth

Introduction Employee turnover is one of the largest though widely unknown costs an organization faces. While companies routinely keep track of various costs such as supplies and payroll, few take into consideration how much employee turnover will cost them: Ernst & Young estimates it costs approximately $120,000 to replace 10 professionals. According to research done by Sibson & Company, to recoup the cost of losing just one employee a fast food restaurant must sell 7,613 combo meals at $2.50 each. Employee turnover costs companies 30 to 50% of the annual salary of entry-level employees, 150% of middle-level employees, and up to 400% for upper level, specialized employees. Now that so much is being done by organizations to retain its employees, why is retention so important? Is it just to reduce the turnover

costs? Well, the answer is a definite no. It’s not only the cost incurred by a company that emphasizes the need of retaining employees but also the need to retain talented employees from getting poached.

Resume Writing Tips Employee Retention Retention involves five major things: Ø Ø Ø Ø Ø Compensation Environment Growth Relationship Support

Compensation Compensation constitutes the largest part of the employee retention process. The employees always have high expectations regarding their compensation packages. Compensation packages vary from industry to industry. So an attractive compensation package plays a critical role in retaining the employees. Compensation includes salary and wages, bonuses, benefits, prerequisites, stock options, bonuses, vacations, etc. While setting up the packages, the following components should be kept in mind: Salary and monthly wage: It is the biggest component of the compensation package. It is also the most common factor of comparison among employees. It includes Basic wage House rent allowance Dearness allowance City compensatory allowance 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 employee’s 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 startup stage. Health insurance: Health insurance is a great benefit to the employees. It saves employees money as well as gives them a peace of mind that they have somebody to

take care of them in bad times. It also shows the employee that the organization cares about the employee and its family. After retirement: It includes payments that an Employee gets after he retires like EPF (Employee Provident Fund) etc. Miscellaneous compensation: It may include employee assistance programs (like psychological counseling, legal assistance etc), discounts on company products, use of a company cars, etc. Employers And Their Key Drivers To Attract And Retain Talent Employers Key Drives To Attract And Retain Talent Procter and Gamble India Early responsibilities in career Flexible and transparent organizational culture Global opportunities through a variety of exposure and diverse experiences Performance Recognition American Express (India) Strong global brand Value-based environment Pioneer in many people practices 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 Glaxo Smith Kline Consumer Healthcare Performance-driven Rewards Its belief in “Growing our own timber” Comprehensive development and learning programs Flat organization, where performance could lead to very quick progression Challenging work context Competitive rewards

Exhaustive induction and orientation program Tata Steel Organization philosophy and culture Job stability Freedom to work and innovate Colgate Palmolive India Company brand Open . Organizations should focus on managing the work environment to make better use of the available human assets. 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 Company’s brand as an employer Early opportunities for growth High degree of autonomy Value compatibility Innovative people program Indian Oil Corporation Company brand image Work ethics Learning and growth opportunities Challenging work assignments Growing organization 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 It is not about managing retention. It is about managing people. employee retention will take care of itself. If an organization manages people well.People want to work for an . transparent.

certifications and provision for higher studies. The profile should not be too low or too high. .The important factors in employee growth that an employee looks for himself are:Work profile: The work profile on which the employee is working should be in sync with his capabilities. If an employee can not foresee his path of career development in his current organization. Organizations can not keep aside the individual goals of employees and foster organizations goals. Growth and Career Growth and development are the integral part of every individual’s career. The environment should be such that the employee feels connected to the organization in every respect. Lack or absence of such environment pushes employees to look for new opportunities. Support environment: Organization can provide support in the form of worklife balance. etc. Personal growth and dreams: Employees responsibilities in the organization should help him achieve his personal goals also.organization which provides Ø Appreciation for the work done Ø Ample opportunities to grow Ø A friendly and cooperative environment Ø A feeling that the organization is second home to the employee Organization environment includes Culture Values Company reputation Quality of people in the organization Employee development and career growth Risk taking Leading technologies Trust Types of environment the employee needs in an organization Learning environment: It includes continuous learning and improvement of the individual. supportive co-workers. clarity of work and responsibilities. involvement in decision-making. there are chances that he’ll leave the organization as soon as he gets an opportunity. Work life balance includes: Flexible hours Telecommuting Dependent care Alternate work schedules Vacations Wellness Work environment: It includes efficient managers. and recognition. challenging work.

Relationship with colleagues: Promote team work. Recruit whole heartedly: An employee should be recruited if there is a proper place and duties for him to perform. These trainings can be given to improve many skills like: Communications skills Technical skills In-house processes and procedures improvement related skills C or customer satisfaction related skills Special project related skills Need for such trainings can be recognized from individual performance reviews.Employees’ priority is to work for themselves and later on comes the organization. He designs ands plans work for each employee. It leads to less satisfaction and eventually attrition. Training and development: Employees should be trained and given chance to improve and enhance their skills. employee satisfaction surveys and by being in constant touch with the employees. A supportive work culture helps grow employee professionally and boosts employee satisfaction. This decreases employee’s interest and he becomes de-motivated. Many employers fear that if the employees are well rained. This bitterness could be due to many reasons. Respect for the individual: Respect for the individual is the must in the organization. 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. not only among teams but in different departments as well. they’ll leave the organization for better jobs. Relationship with the immediate manager: A manger plays the role of a mentor and a coach. the management should keep the following points in mind. individual meetings. To enhance good professional relationships at work. Organization should not limit the resources on which organization’s success depends. This will induce competition as well as improve the Relationship among collegues. It is his duty to involve the employee in the processes of the organization. If he’s not satisfied with his growth. There are times when an employee starts feeling bitterness towards the management or peers. he’ll not be able to contribute in organization growth. Otherwise he’ll feel useless and will be . So an organization should hire managers who can make and maintain good relations with their subordinates. The management is sometimes not able to provide an employee a supportive work culture and environment in terms of personal or professional relationships.

conseling services. Support Lack of support from management can sometimes serve as a reason for employee retention. Employers can also provide valuable feedback to employees and make them feel valued to the organization. childcare services. educational courses. Employees should know what the organization expects from them and what their expectation from the organization is. Create opportunities for their career growth by providing mentorship programs. 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. Top management can also support its employees in their personal crisis by providing personal loans during emergencies. Show them that the organization cares and he’ll show the same for the organization. etc.dissatisfied. Induce loyalty: Organizations should be loyal as well as they should promote loyalty in the employees too. etc. confident and empowered. open door policy. Supervisor should support his subordinates in a way so that each one of them is a success. Try to make the current employees stay instead of recruiting new ones. Thus employers can support their employees in a number of ways as follows: Ø Ø Ø Ø By By By By providing feedback giving recognition and rewards counseling them providing emotional support RESEARCH METHODOLOGY Research Design The research design indicates the type of research methodology under taken . employee assistance Programs. availability of resources. etc Employers can also support their employees by creating an environment of trust and inculcating the organizational values into employees. Individual development: Taking proper care of employees includes acknowledgement to the employee’s dreams and personal goals. The feedback from supervisor helps the employee to feel more responsible. An employee based culture may include decision making authority. certifications. 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.

satisfied. The form of question is of both closed and open type. So pilot study was conducted on 5 respondents which is a 10% of the sample. The main objective of using descriptive research is to describe the state of affairs as it exits at present. . R2. Chennai. The researcher used descriptive research to discover the characteristics of customers. Highly dissatisfied) Category scale (Multiple items) Ranking type (R1. Pilot study It is appropriate to conduct pilot survey to check the reliability of the questionnaire. Neither Satisfied nor dissatisfied. It mainly involves surveys and fact finding enquiries of different kinds. The questionnaire was designed in such a way that the questions are short and simple and is arranged in a logical manner. R3…) 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 scales used to evaluate questions are: Dichotomous scale (Yes or No) Likert 5 point scale (Highly satisfied. Area of study The area of study is confined to employees of GEMINI COMMUNICATION LTD.to collect the information for the study. The researcher used both descriptive and analytical type of research design for his research study. Questionnaire Design The questionnaire framed for the research study is a structured questionnaire in which all the questions are predetermined before conducting the survey. The researcher also used analytical research design to analyze the existing facts from the data collected from the customer. Descriptive research also includes demography characteristic of consumer who use the product. Research instrument The Structured questionnaire is used as the research instrument for the study. Dissatisfied.

Sample size Sample size=125 samples. STATISTICAL TOOLS AND TECHNIQUES PERCENTAGE ANALYSIS: Percentage = (No. variance and confidence methods are used for determining sample size. literature review and also from the past records maintained by the company. Secondary data The secondary data are collected through the structured questionnaire. DATA COLLECTION METHOD Primary data Primary data is the new or fresh data collected from the respondents through structured scheduled questionnaire. Sampling Technique: The researcher adopted simple random sampling for the study. Where total score = no of respondents*weighted average CHI – SQUARE TEST: 1. It is the procedure used by the researcher in selecting items for the sample.Sampling design A Sample design is a definite plan for obtaining a sample from a given population. of respondents)*100 WEIGHTED AVERAGE METHOD: Formula: Mean score = total score/no of respondents. of respondents/ total no. Null Hypothesis (Ho): There is no difference in attributes .

The findings of the study are subjected to bias and prejudice of the .05 4.2.T 6.n1.58) σ Upper limit = µr + (2.58) σ KENDALL’S COEFFICIENT OF CONCORDANCE: Null hypothesis (H0): There is a difference in attributes Alternate hypothesis (H1): There is no difference in attributes ∑ Rj = (Rj-Rj)2 S= Rj = ∑ Rj LIMITATIONS OF THE STUDY 1. Calculation of : ∑ = ∑ (O-E)² E 7. Level of significance α = 0. The tabulated value of at given level of significance with (r-1)(c-1) Degrees of freedom ONE RUN TEST Null hypothesis (H0): There is a no significant relationship between the variables Alternate hypothesis (H1): There is significant relationship between the variables µr = 2 n1 n2 + 1 n1 + n2 2 n1 n2.n1 σr = 2 n1n2 (n1+ n2)2 (n1+ n2-1 ) Lower limit = µr + (2.T G. Degrees of freedom = (r-1)(c-1) 5. Alternate Hypothesis(H1): There is a difference in attributes 3.T × C. Expected frequency: E = R.

demography. age condition of economy etc. The findings of the study are solely based on the information provided by the respondents. Area of the study is confined to the employees in Chennai only. 3. 4. Alternate hypothesis (H1): There is a significant difference in the rank assigned by respondents towards the attributes that gives them satisfaction in the company. Findings of the research may change due to area. 5. . The accuracy of findings is limited by the accuracy of statistical tools used for analysis. KENDALL’S COEFFICIENT OF CONCORDANCE Null hypothesis (H0): There is a no significant difference in the rank assigned by respondents towards the attributes that gives them satisfaction in the company. 6. Time factor can be considered as a main limitation.respondents. 2. Calculated value is more than table value therefore accept H0 Result: There is a significant relationship between overall satisfaction and aspects of job. H1: There is a significant relationship between Work Culture of the Company and interpersonal relationship between employees. Analysis and Interpretation of data PERCENTAGE ANAYLSIS 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. H0: There is a no significant relationship between Work Culture of the Company and interpersonal relationship between employees.

if not facing it already.1 EMPLOYEE’S SATISFACTION REGARDING MONETARY BENEFITS PROVIDED BY THE COMPANY. Alternate hypothesis (H1): The samples are taken randomly. Table:2. and a broader significance.Ranking Based on Satisfaction K=20 Salary Superior Role Team Coordination Work responsibilities Rules and Policies Physical work environment Training Calculated value : S= 5815. Both parts of its significance are generally included in this thesis. The background of the . We believe that the leader plays a key role in employee retention and retention management.5. The concept of retention management can both have a narrow.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. Retention Management Abstract: Background: retention management is a highly topical subject and an important dilemma many organizations might face in the future. ONE RUN TEST Null hypothesis (H0): The samples are not taken randomly.

and talent finder. Provide them information and knowledge. The leader has become the main factor in what motivates people’s decision to stay or leave. Result: Leaders and their skill in creating a culture of retention. The intention of investigating and using the Finnish company Tradeka Limited as a case company. The leader’s relation to the employees plays a central role in retaining employees. talent developer and coach. Following key questions are intended to be answered: What are the consequences between leaders actions and employees retention? Which is the leader’s role when it comes to retaining employees? Purpose statement: The purpose of the thesis is to investigate and analyze how company leaders today can retain their key employees. The purpose is to compare the qualitative study. and the company. both with supervisors and employees to get a broader view at the phenomenon retention management. 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. and the leaders. For organizations to keep its key employees their number one priority should be to look at their management. is to make the information from the theories more valid. because employees need to feel involvement. employees. Characteristics in a leader that are of importance. Research method: The study is a qualitative. communicator. has becoming a key in why people stay and what usually drives them away from a company. Make employees realize that they are the most valuable asset of the organization. because people leave managers and not companies. as the leader plays a key role in retention management is: trust builder. and also the interest in how retention management works in practice. good things happen for customers. as well as a theoretical study where empirical findings and theories has been compared. to work hard with retention management. 2. 4. . esteem builder. 3. Hire the right people in the first place. made at the case company. When retention is a core value. and that their presence count. Eleven qualitative interviews were conducted at Tradeka?s financial department. The research is based on the leaders in the Finnish case company Tradeka. Employee Retention Strategies The basic practices which should be kept in mind in the employee retention strategies are: 1. Empower the employees: Give the employees the authority to get things done. Have faith in them. trust and respect them 5. with findings from the thesis theoretical framework.thesis present a few articles that discuss issues that makes it important for the organization.

medium and high level. Low Level Employee Retention Strategies Appreciating and recognizing a well done job• Personalized well done and thank-you cards from supervisors• Congratulations e-cards or cards sent to spouses/families• Voicemails or mess•ages from top management Periodic days off for good performance• Rewards ( gift. discounts. monetary and non monetary rewards)• Recognizing professional as well as personal significant events• Wedding gifts Anniversary gifts New born baby gifts Scholarships for employee’s children Get well cards/flowers Birthday cards. Recognize and appreciate their achievements. etc• Discounts in cinema halls. 8. museums. These practices can be categorized in 3 levels: Low. Retail store discounts Computer peripherals purchase discounts Providing workplace conveniences• On-site ATM On-site facilities for which cost is paid by employees laundry facility for bachelors Shipping services Assistance with tax calculations and submission of forms Financial planning assistance Casual dress policies Facilities for expectant mothers Parking . Keep their morale high. 7. certificates. etc. 9.6.Create an environment where the employees want to work and have fun. celebrations and gifts Providing benefits• Home insurance plans Legal insurance Travel insurance Disability programs Providing perks: It includes coupons. restaurants. Keep providing them feedback on their performance. rebates.

Parenting guide Lactation rooms Flexi timings Fun at work• Celebrate birthdays. promotions. anniversaries. mehandi. etc Organize get together for watching football. hair braiding stalls on weekends Mini cricket in office Ice cream Fridays Holi-Day breakfast Employee support in tough time or personal crisis• Personal loans for emergencies Childcare and eldercare services Employee Assistance Programs ( Counseling sessions etc) Emergency childcare services Medium Level Strategies for Employee Retention Appreciating and recognizing a well done job Special bonus for successfully completing firm-sponsored certifications Benefit programs for family support Child adoption benefits Flexible benefits Dependents care assistance Medical care reimbursement Providing conveniences at workplace• Gymnasiums• Athletic membership program• Providing training and development and personal growth opportunities• Sabbatical programs Professional skills development Individualized career guidance . cricket matches Organize picnics and trips for movies etc Sports outings like cricket match etc Indoor games Occasional stress relievers• “Casual dress” day “Green is the color” day Handwriting analysis Tatoo. etc Holiday parties and holiday gift certificates Occasional parties like diwali. holi. retirements. hockey. dushera.

• Suggestion committees can be created Open door communication policy can be followed Regular feedbacks on organization’s goals and activities should be taken from the employees by: Management communications Intranet and internet can be used as they provide 24X7 access to the information Newsletters. The personality. . • Hire the right people from the beginning: employee retention is not a process that begins at the end. notice boards. Promoting Work/Life Effectiveness• Develop flexible schedules• Part-time schedules• Extended leaves of absence• Develop Support Services• On-site day care facility etc. The new joinees should fit with the organization’s culture.High Level Strategies window.• Understand employee needs: This can be done through proper management style and culture• Listen to the employee and show interest in ideas• Appreciate new ideas and reward risk-taking Show support for individual initiative Encourage creativity Encouraging professional training and development and/or personal growth opportunities: It can be done through:• Mentoring programs Performance feedback programs Provide necessary tools to the employees to achieve their professional and personal goals Getting the most out of employee interests and talents Higher study opportunities for employees Vocational counseling Offer personalized career guidance to employees Provide an environment of trust: Communication is the most important and effective way to develop trust. The process of retention begins right from the start of the recruitment process. etc.google_render_ad().

especially in the middle of some big company project or venture. transparency in work environment discourages work-politics which often hinders company goals as employees start to advance their personal objectives at the expense of development of The company as a single entity.More and more companies have now realized the importance of a healthy work culture and have a gamut of people management good practices for employees to have that ideal fresh work-life. These companies are severely affected when employees check out. An internship program can be followed to recruit the fresh graduates. More importantly. and retains its workforce. Quality Of Work The success of any organization depends on how it attracts. Referral bonus should be given to the employees for successful hires.Related apathy and frenzy. pride and so on. organizations are required to retain employees by addressing their . they leave mainly because of work related stress and dissatisfactions. which gradually builds up trust and pride. Proper training should be given to the managers on interview and management techniques. Closed doors work culture can serve as a deterrent to communication and trust within employees which are potential causes for work. They are the best source of networking. trust. responsibility. Although employees most often prefer to stay with the same company and use their time and experience for personal growth and development. communication.leadership characteristics of the candidate should be in sync with the culture of the hiring organization. open minded and transparent work culture plays a vital role in employee retention. Retention Success Mantra Transparent Work Culture In today’s fast paced business environments where employees are constantly striving to achieve business goals under time restrictions. Thus. It induces responsibility among employees and accountability towards other peers. A transparent work environment can serve as one of the primary triggers to facilitate accountability. recruits.Companies invest very many hours and monies in training and educating employees. motivates. . Organizations need to be more flexible so that they develop their talented workforce and gain their commitment. It is believed that in a transparent work culture employees rigorously communicate with their peers and exchange ideas and thoughts before they are finally matured in to full-blown concepts.

but also it enhances a company's competitiveness. Employers can also support their employees by creating an environment of trust and inculcating the organizational values into employees. The management can support employees directly or indirectly. loyal. People also conceive of QWL as a set of methods. The basic objectives of a QWL program are improved working conditions for the Employee and increase organizational effectiveness. managing stress and personal . could achieve a lot in Their mutually beneficial dialogue. and high-involvement aimed at boosting the satisfaction and productivity of workers. Supporting Employees Organizations these days want to protect their biggest and most valuable asset and they want to do this in a way that best suits their organizational culture. The work should not pose a health hazard for the person. Providing quality at work not only reduces attrition but also helps in reduced absenteeism and improved job satisfaction. social environment within the organization. job enrichment. The employer and employee. Suitable working time: Organizations are offering flexible work options to their employees wherein employees enjoy flexi-timings for dedicating their efforts at work.work life issues. such as autonomous work groups. The elements that are relevant to an individual’s quality of work life include the task. aware of their risks and rights. It requires employee commitment to the organization and an environment in which this commitment can flourish. based on labor management cooperation. and motivated workforce. Not only does QWL contribute to a company's ability to recruit quality people. Providing employees salary at par with the other counterparts of above that what competitors are paying motivates them to stick With the company for long. 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. Directly. administrative system and relationship between life on and off the job. the physical work environment. which are essential in determining the company's competitiveness. Providing support to the employees acts as a mantra for retraining them. Common beliefs support the contention that QWL will positively nurture amore flexible. they provide support in terms of personal crises. Retaining employees is a difficult task. Appropriate salary: The appropriate as well as attractive salary has always been an important factor in retaining employees. QWL consists of opportunities for active involvement in group working arrangements or problem solving that are of mutual benefit to employees or employers.

Keeping them engaged is an important task. Strategies should be framed in advance and implemented when the times arrives. Become employer of choice: What makes a company an employer of choice? Is the benefit it offers or the compensation packages it gives away to its employees? Or is it measured in terms of how they value their employees or in terms of customer satisfaction? Becoming an employer of choice involves following a road map which tells where to go as a brand. This feedback helps the employee assess his performance and identify the . indirectly. It suggests where the employee performance is effective and where performance has to improve. Optimize employee engagement: An organization’s productivity is measured not in terms of employee satisfaction but by employee engagement. in a number of ways as follows: Manage employee turnover: Employee turnover affects the whole organization in terms of productivity. The amount of information employees receive about how well or how poorly they have performed is what we call feedback. It is a dialog between a manager and an employee which acts as a way of sharing information about the performance. Engage the new recruits: The newly hired employees are said to be least engaged in the organization. Management can support employees. Managing the turnover. The fresh talent should be utilized to maximum before they start feeling bored in the organization. Planed coaching sessions help an individual to work through issues.Managers can provide either positive feedback or negative feedback to employees. Feedback Feedback acts as a channel of communication between the employee and his manager. So. Employee satisfaction also comes with high engagement levels. Employees are said to be engaged when they show a positive attitude toward the organization and express a commitment to remain with the organization. maximize his potential and return to peak performance. organizations should aim to maximize the engagement among employees. becomes an important task. Turnover costs should also be taken into consideration while framing these strategies. A proactive approach can be adopted to reduce attrition.development. hence. Coaching and mentoring: Employees whose work performance suffers due to poor interpersonal relationships or because of lack of interpersonal skills should be provided proper coaching by their superiors.

Positive feedback leads to employee retention and Retention. Positive recognition for good performance boosts up morale of employees and results in performance improvement to a higher productivity level. It is an opportunity for managers and employees to assess and identify career and advancement opportunities. Studies reveal the performance tends be same or even decreases if no feedback is provided. It helps employees to understand the effectiveness of their performance and contributes to their overall knowledge about the work Managers have tendency to ignore good performances of their employees.Positive feedback communicates managerial satisfaction. Communication Between Employee and Employer Communication is a process in which a message is conveyed to the receiver by the sender. . But such times are very rare. So there is a need to encode and decode the message in the process. The message may be or may not be in a common format or language that both the sender and receiver understand. It is believed that positive feedback is the only type of feedback that generates performance above the minimum acceptable level. Same applies to employee retention also. feedback is necessary because: It builds trust and enhances communication between manager and employee. Input from manager’s side is necessary as it help employees to improve their performance and increase productivity. negative feedback sometimes make employee to put more efforts to improve his performance. Encoding and decoding also helps in the security of the message. The process of communication is incomplete without the feedback.Thus. employees may assume that they are performing productively or they may feel that the manager is satisfied with their performance.improvement areas. Due to no feedback. Providing no feedback may demotivate employees and may lead to employee absenteeism. Moreover this improvement is short term. It helps in identifying performance areas that need improvement and specific ways to improve them. It acts as an opportunity to enhance performance by identifying resources for skill development. Negative feedback obviously communicates manager’s dissatisfaction. Some managers do not provide any kind of feedback to their employees. Communication is the solution to almost everything in this world. However. Employees look for organizations where communication and process are transparent. Nothing is hidden and shared with the employees. It gives managers and employees a way to identify and discuss skills and strengths. Straight-from-the-shoulder communication is what the employees need from their employers.

he takes with him valuable knowledge about the company. Often much time and money has been spent on the employee in expectation of a future return. Frequent meetings and Social gatherings Emails. When the employee leaves. Newsletters. So the organizations should hire managers who are active communicators. While it is difficult to fully calculate the cost of turnover (including hiring costs. training costs and productivity loss). customers.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. Intranet and many more So there should be effective communication across the organization and this communication should be two-way. which could lead to potential customer loss. Turnover leads to more turnovers: When an employee terminates.Communication is also the way to win the employees trust in the organization. well structured communication with their employers. When an employee leaves.Category C: These are the employees who have proper. Employees trust the employers who are friendly and open to them. Loss of Company Knowledge: When an employee leaves.There are 3 categories of employees: A: Who will leave their current employer in 3 years of their employment B: Who have a probability of leaving their current employer in next 3 years C: Who will stay with their current employer in the next 3 years Category A: These are the employees who lack communication with their employers. This trust leads to employee loyalty and finally retention. the effect . industry experts often quote 25% of the average employee salary as a conservative estimate. the relationships that employee built for the company are severed. current projects and past history (sometimes to competitors). Interruption of Customer Service: Customers and clients do business with a company in part because of the people. the investment is not realized. Importance Of Employee Retention The process of employee retention will benefit an organization in the following ways:1. Communication alone can lead to unimaginable heights of employee retention. Relationships are developed that encourage continued sponsorship of the business. The Cost of Turnover: The cost of employee turnover adds hundreds of thousands of money to a company's expenses. Employers also feel that the immediate supervisors are the most authenticated and trusted source of information for them.

Higher retention rates motivate potential employees to join the organization. growth and learning etc.is felt throughout the organization. Compensation: Better compensation packages being offered by other companies may attract employees towards themselves. Lack of trust and support in coworkers. Regaining efficiency: If an employee resigns. 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. then he won’t be able to perform it well and will try to find out reasons to leave the job. If he is given a job which mismatches his personality. compensation. Unexpected job responsibilities lead to job dissatisfaction. seniors and management can make office environment unfriendly and difficult to work in. Managing Employee Retention The task of managing employees can be understood as a three stage process: . Goodwill of the company: The goodwill of a company is maintained when the attrition rates are low. Nonsupportive coworkers. seniors and management: Trust is the most important factor that is required for an individual to stay in the job. Job and person mismatch: A candidate may be fit• to do a certain type of job which matches his personality. New job offer: An attractive job offer which an employee thinks is good for him with respect to job responsibility. Lack of appreciation: If the work is not appreciated by the supervisor. 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 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. No growth opportunities: No or less learning and growth opportunities in the current job will make candidate’s job and career stagnant. can lead an employee to leave the organization. There are certain circumstances that lead to their leaving the organization. And even after this you cannot assure us of the same efficiency from the new employee What Makes Employee Leave? Employees do not leave an organization without any significant reason. the employee feels de-motivated and loses interest in job. Co-workers are often required to pick up the slack. The unspoken negativity often intensifies for the remaining staff.

Secondly. They allow an organization to understand the reasons for leaving and underlying issues. An effective retention strategy will seek to ensure: Attraction and recruitment strategies enable selection of the ‘right’ candidate for each role/organization New employees’ initial experiences of the organization are positive Appropriate development opportunities are available to employees. The most effective strategy is to adopt a holistic approach to dealing with attrition. considering that one out of every three employees plans to leave his or her job in the next two years. a strategy is to be implemented so as to reduce employee turnover. This will help in assessing the whether the employee retention rates are healthy in the company. 3. So an impartial person should be appointed with whom the employees feel comfortable in expressing their opinions. and 6 months’ pay for each hourly employee who leaves. Identify cost of employee turnover. and that they are kept aware of their likely career path with the organization The organization’s reward strategy reflects the employee drivers How To Increase Employee Retention Companies have now realized the importance of retaining their quality workforce. Understand why employees leave : Why employees leave often puzzles top management. This amounts to major organizational and financial stress. Exit interviews are an ideal way of recording and analyzing the factors that have led employees to leave the organization. the cost of employee turnover can be calculated. Retaining quality performers contributes to productivity of the . According to a survey.Understand why employee leave. on an average. However employees never provide appropriate response to the asked questions. attrition costs companies 18 months’ salary for each manager or professional who leaves. 2.Implement retention strategies The organizations should start with identifying the employee turnover rates within a particular time period and benchmark it with the competitor organizations. Implement retention strategy : Once the causes of attrition are found.1.

They need to give key people an attractive incentive to stay on through these transitions to ensure productivity. It can also run for a particular project. To retain its key senior employees post merger with EDS Corporation. Retention bonuses are becoming more common in the corporate world because companies are going through more transitions like mergers and acquisitions. tenure and other factors. so a retention bonus will be offered after 20 months. Mphasis is providing cash component based retention bonus plan for its employees. these days. the employees who have worked hard on it are entitled to receive the retention bonus. But are they really positively contributing to the retention rates of a company? Basic salary. while management and top-level supervisors earn an additional 50 percent of their annual salaries. A retention period can run somewhere between six months to three years. nonmanagement employees generally receive about 10 percent of their annual salaries in bonuses. Retention Bonus is one of the important tools that are being used to retain employees. As long as the project gets completed. benefits and opportunities for individual growth. some companies pay in installments as on when the business cycle completes. some companies choose to pay a flat figure. This . Retention Bonus Higher attrition rates within a particular industry have forced companies to use some innovative strategies to retain employees. employees look beyond the money factor. A project has its own life span. some industries are more likely than others to offer them. Today. For example. However. According to a survey. In some companies. Retention bonus is an incentive paid to an employee to retain them through a critical business cycle. depending on position. bonuses range from 25 percent to 50 percent of annual salary. Retention bonuses have proven to be a useful tool in persuading employees to stay. Retention bonuses are generally vary from position to position and are paid in one lump sum at the time of termination. followed by financial service providers and manufacturing firms. Employees are chosen for retention bonuses based on their contributions to management and the generation of revenue.A retention bonus plan is not a panacea. Companies of all sizes use retention bonus plans to keep knowledge employees retained in the company. the implementation of a system may take 18 months. Retail/wholesale companies are the most appropriate to implement stay-pay bonuses. Although retention bonuses are becoming more common everywhere. providing recognition. hardly reduces turnover.organization and increases morale among employees/ Four basic factors that play an important role in increasing employee retention include salary and remuneration. While bonuses based on salary percentages are the generally used.

internships etc. Setting wrong expectations or hiding expectations will result in early leaving of employees. assure challenging work.is mainly to retain good employees and provide them a cash incentive to keep them motivated. Or tell them before hand that their requirements can not be fulfilled. • Discuss what the expectations of the employees are: Ask employees what they expect from the organization. Hire Right Talent employee retention starts with recruitment. . Don’t hire under qualified or clearly overqualified candidates. Manager Role in Retention When asked about why employees leave. Referrals: According to• the research. Clearly discuss what• is expected from the employee: Before joining the organization. For this the employer should understand the job requirements clearly. It is seen that managers who respect and value employees’ competency. Don’t show them an unrealistic picture. value the quality of work life and provided chances for learning have loyal and engaged employees. trial periods. Hire appropriate• 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. Be realistic. Here are a few ways to ensure how to hire the right talent for a particular job. A drastic change in the culture may give a culture shock to the candidate. Attrition rate can be reduced if a right person is hired for a right job. If their requirements can be fulfilled only then promise them. tell the candidate what is expected from him. There is a fear of hampering the image and reputation of the person who referred the candidate. Culture fit: Try to judge individual’s capability to• adapt to the organization’s culture. Hire candidates who are actually suitable for the job. research has shown that people join companies. managers and team leaders play an active and vital role in employee retention. pay attention to their aspirations. Early departures arise from the wrong recruitment process.Realistic preview of the job responsibilities can be given to the employment seekers by various methods like discussions. referred candidates stay longer with the organization. Therefore. However. low salary comes out to be a common excuse. but leave because of what their managers’ do or don’t do.

Standing up for the Team: Team leaders are closest to their team members. However.g. Delegation is a great way to develop competencies. Providing coaching: Everyone wants to be successful in his or her current job. When agents see the team leader standing up for them.Managers and team leaders can reduce the attrition levels considerably by creating a motivating team culture and improving the relationships with team members. Therefore. How to Improve Employee Retention People want to enjoy their work so make work fun and enjoyable. Therefore. 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. celebrations. Focus on future career: Employees are always concerned about their future career. not everyone knows how. then they are likely to stay longer in the company. If an employee sees that his current job offers a path towards their future career aspirations. This can be done in a following way: Creating a Motivating Environment: Team leaders who create motivating environments are likely to keep their team members together for a longer period of time. they also need to educate their managers about the realities on the ground. A manager should focus on showing employees his career ladder. just giving the extra responsibility does not help. coaching is followed by monitoring performance and providing feedback on the same. one of the key responsibilities will be providing coaching that is intended to improve the performance of employees. Retention does not necessarily have to come through fun events such as parties. team outings etc. Therefore. They can also come through serious events e. Managers often tend to escape this role by just coaching their employees. Delegation: Many team leaders and managers feel that they are the only people who can do a particular task or job. Extra Responsibility: Giving extra responsibility to employees is another way to get them engaged with the company. Employees who look forward to these events and are likely to remain more engaged. However. However. Understand that employees need to balance life and work so offer flexible . arranging a talk by the VP of Quality on career opportunities in the field of quality. While they need to ensure smooth functioning of their teams by implementing management decisions. managers should play the role of career counselors as well. they do not delegate their jobs as much as they should. they will have one more reason to stay in the team.

Also. but others in the organization as well. When the reward system is credible. especially if they are immediate. appropriate. the entire organization can experience the commitment to excellence. and personal. such as loyalty. Unrecognized and nonvalued performance can contribute to turnover. Upon conducting an interview. honest feedback for their efforts. One of the keys to avoiding turnover is to make rewards count. Organizations should target job applications for employees who have characteristics that fit well with the organizational culture. seek out traits. Through a rewards program. Additionally. more frequent payouts. appropriate. Recognition for a job well done fills the employees' need to receive positive. if the reward system is broken. ask the potential employee what motivates them on the job. rewards are meaningful. Employees . Need for Rewards and Recognition Recognition should be part of the organization's culture because it contributes to both employee satisfaction and retention. Rewards are one of the keys to avoiding turnover. or that others in the organization are rewarded for the wrong behaviors. A Harvard University study concluded that organizations can avoid the disruption caused by employee turnover by avoiding hiring mistakes and selecting and retaining top performers. Offer attractive. Rewarding and recognizing people for performance not only affects the person being recognized. should they get hired into the company. Rewards and recognition respond to this need by validating performance and motivating employees toward continuous improvement. Rewards are to be immediate.google_render_ad(). the opposite effect will occur. a personal note may mean more than a generic company award. Provide opportunities within the company for career progression and cross-training.starting times and core hours. Provide 360 feedback surveys and other questionnaires to foster open communication. Having more information about the potential employee’s expectations can help retain them. Organizations may want to evaluate whether getting a bonus at the end of the year is more or less rewarding than getting smaller. competitive benefits and 401(k)s. however. and personal. Consider allowing anonymous surveys occasionally so employees will be more honest and candid with their opinions. Employees may feel that their performance is unrecognized and not valued. Organizations can avoid employee turnover by rewarding top performers. Rewards and Recognition Employees want to be recognized for a job well done. window.

For example. Rewards should be visible to all members of the organization. quarterly. and desired results are all factors. uses a formal recognition program (Adams. Determining the amount of money given is a delicate matter of organizational debate in which organizational history. a data processing services company that employees more than 6. and notes from peers . and other items. an avid camper might be given a 10-day pass to a campsite. and range from Nebraska football tickets. Rewards that are spontaneous (sometimes called on-the-spot awards) are also highly motivating and should also use a set criteria and standard to maintain credibility and meaning. Rewards should have meaning and value for the recipient. financial parameters. and Rick. plaques. Rewards can be based on an event (achieving a designated goal) or based on a time frame (performing well over a specific time period). if an individual enjoys physical activity. Rewards should be based on well-defined. Formal recognition program can be used with success. Professionalism in presenting the reward is also interpreted as worthwhile recognition. and yearly basis. if used. mugs. 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. or. Rewards should be achievable and not out of reach by employees. 2000). The nonmonetary rewards are best received when they are thoughtfully prepared and of highest quality. Nonmonetary rewards. Mahaffey. gift certificates. Nebraska. Rewards should be appropriate to the level of accomplishment received. Designing a Rewards and and Recognition Solution In designing a rewards and recognition program. 2002). credible standards that have been developed using observable achievements. A cash award of $50 would be inappropriate for someone who just recommended a process that saved the organization a million dollars. pens.000 individuals in Omaha. Rewards are given on a monthly.should be asked for input on their most desirable form of recognition. Recognition for a job well done can be just as valued and appreciated as monetary awards. should be valued by the individual. the following guidelines should be considered. Amour. Use what employees say when it comes time to reward for performance (St. phone calls. that employee might be given a spa membership. First Data Resources.

engage. The standards for the reward should also be achievable. employees cited the following as meaningful rewards (Moss. the scarcity of talent with relevant work skills for today’s jobs. such as a production goal that is beyond employees' power. and retain the right people. “What keeps you awake at night?” and you will get a response that relates to people management issues. private. Small acts of recognition are valuable for employee daily Retention. whether at formal meetings or on the spot. the changing values about work and the high cost of turnover. [2008] . employees can be rewarded using money in numerous ways. Maja Cassel. Case Studies Employee Retention Best Practices in Keeping and Motivating Employees By LisBeth Claus Ask any CEO of an organization. Meaningful rewards and recognition that are achievable have the greatest impact. EMM (Entrepreneurskap. If the reward is based on an unachievable result. Elina Armanto. Research and human resource practices provide us with a number of recommendations to increase employee retention. Profit sharing and pay-for-skilis are monetary bonus plans that both motivate individuals and improve goal achievement. Variable bonuses linked to performance are another popular reward strategy. Sometimes a personal note may mean more than a generic company award. with performance verifiable or observable. In one survey. rewards and recognition should be based on a clear set of standards. Cash is a welcome motivator and reward for improving performance.In addition to nonmonetary rewards. then those employees will not be motivated. Management) Author: Josip Bogic. How Auditing Company X Works with Retaining Valuable Employees : Swedish Case study University essay from Högskolan i Jönköping/IHH. Marknadsföring. public or nonprofit) is its capacity to attract. The problem of retention is compounded by the predicted talent shortage resulting from the upcoming retirement of the baby boomers. 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 Retentional Rewards What gives meaning to rewards and recognition? What makes them effective? First. a main concern for any organization (whether small or large.

Object: The main objective is to increase the understanding regarding employee’s retention in relation to leadership style.In our conducted case study. 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. 2001). including specific courses within au-diting/accounting. in-ternal labor market and career. Research told us that leadership. such as an individua-lized reward system and communication between managers and employees. which consist of four categories: the hiring process. responsibility. which is why we have chosen to do a case study at Auditing Company X to see how they work with employee retention. There are some areas that need further attention from the company. 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. the person needs practical experience for a specific period of time. [2008] Abstract: Introduction: Companies today are forced to function in a world full of change and complexity. We have compared the findings to our chosen theory. Retention: An explanatory study of Swedish employees in the financial sector regarding leadership style. Yet. keeping employees for longer periods is an imp-ortant challenge for firms. the employee needs to have a Swedish university degree. Due to these statements the challenge of retaining and motivating valuable em-ployees is crucial for the auditing firms. One industry where retention is interesting is the auditing industry in Sweden. such as having a holistic and long-term orientation. 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. and it is more important than ever to have the right employees in order to survive the surrounding competition. motivation and performance. Furthermore.Abstract: Today. responsibility. development and work-atmosphere is important for job satisfaction and retention. this because certain requirements are needed to become an auditor. remuneration and elements like participation. remuneration and elements towards job satisfaction University essay from Växjö universitet/Ekonomihögskolan Author: Sanna Paulsson. Firstly. fairness. autonomy. at Auditing Company X. feedback. we have been able to conclude that the firm’s retention practices are to a great extend in line with the theoretical framework. feedback. remuneration and elements such as participation. Even though there are some parts to work on the most important aspects of retention. neither employees nor employers seem to take for granted that a person will stay with the same firm until retirement. and finally culture and leader-ship. Auditing Company X seems to have incorporated this into their practices successfully. development and work-atmosphere in the Swedish financial Sector. Linda Lindgren. Method: We wanted to investigate how employee of the Swedish . autonomy. fairness.

Following key questions are intended to be answered: What are the consequences between leaders actions and employees retention? Which is the leader’s role when it comes to retaining employees? Purpose statement: The purpose of the thesis is to investigate and analyze how company leaders today can retain their key employees. Both appreciations from the closest manager as well as the company management influences employee job satisfaction in a positive way. and also the interest in how retention management works in practice. Maria Helnius. insurance and finance companies. is to make the information from the theories more valid. The theoretical framework includes leadership and leadership style. feedback. More money was the most common reason for wanting to change jobs. [2007-09-03T08:22:31Z] Abstract: Background: retention management is a highly topical subject and an important dilemma many organizations might face in the future. The intention of investigating and using the Finnish company Tradeka Limited as a case company. The background of the thesis present a few articles that discuss issues that makes it important for the organization. to work hard with retention management. Conclusion: The result shows that regarding leadership the respondents prefer leadership based on relations were they feel appreciation. base pay with additional bonus and benefits were preferred. 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. What leaders can do to keep their key employees . feedback. financial as well as non-financial remuneration and research done in later years regarding participation. But also non financial factors such as participation. with findings from the thesis theoretical framework. fairness. fairness. and how they consider and react to the chosen areas. as well as a theoretical study where empirical findings and theories has been compared. The survey has a quantitative approach with a web based questionnaire and includes 129 respondents from banks. responsibility. and the leaders. and a broader significance. We believe that the leader plays a key role in employee retention and retention management. Eleven . The purpose is to compare the qualitative study. development and work-atmosphere connected to retention. autonomy. and when asking how the remuneration system should be designed. The concept of retention management can both have a narrow. development and work-atmosphere must be taken in consideration to satisfy since they seem to increase employees? Willingness to stay in the company.Retention Management University essay from Göteborgs universitet/Företagsekonomiska institutionen Author: Lisa Hedberg. if not facing it already. autonomy. Research method: The study is a qualitative. responsibility.financial sector prefers to be retained. The research is based on the leaders in the Finnish case company Tradeka. made at the case company. Both parts of its significance are generally included in this thesis.

both with supervisors and employees .qualitative interviews were conducted at Tradeka?s financial department.

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