10 Tips for Motivating Employees By Margaret Steen on November 28, 2007 Almost all employees want to do interesting work, secure

a good salary and earn recognition for their contributions. But motivating employees takes more than money and an occasional “thank-you.” It requires a strategy tailored to each worker’s needs. In HR, you work with your company’s managers to get the most out of your employees. Here are 10 ways to make your motivational techniques work for every employee. 1. Ask what they want out of work. Just knowing that an HR manager or boss is interested in a worker's goals will make many employees feel better about their jobs. It can be difficult to get a quick and accurate answer to this question, however. Some workers may say that they want to work on a prestigious project, for example, only to discover once they have been assigned to the project that it isn’t what they expected. It may help to ask a more specific question. Have workers describe a previous project that they felt good about, then see what aspects of that can be repeated, suggested Michael Beasley, a career-development and executive coach who owns Career-Crossings in Portola Valley, Calif. 2. Consider each employee’s age and life stage. There are exceptions to every generalization, of course, but workers nearing the end of their careers are often less focused on the next promotion than those who are just starting to climb the corporate ladder. Younger workers may also be less accustomed than older ones to waiting patiently in a job they don’t find interesting. 3. Match motivators to the company or department culture. Again, there are exceptions, but engineers are likely to be motivated by working on cutting-edge projects. On the other hand, sales professionals tend to use money as a way to measure how well they’re doing. 4. Pinpoint each employee’s personality. Some people love public praise; others are mortified by it and would much prefer a sincere, in-person “thank-you.” Make sure you take this into account if you are planning a ceremony to give awards or other recognition. 5. Use flexibility wisely. Allowing employees to telecommute some of the time or to set their own office hours can have big benefits. It makes employees’ lives more manageable — and it shows them that they are trusted. Still, as with other motivators, one size does not fit all. Some jobs simply can’t be done effectively outside the office. And some workers actually like going in to the office to escape the distractions of home or to preserve a line between home and work. “As long as the commute is not bad, some people would rather go in to work,” said Marianne Adoradio, a Silicon Valley recruiter and career counselor.

6. Put money in its place. How well does money motivate workers? The answer isn’t simple. An employee who demands a raise might really be unhappy because his or her suggestions are being ignored, for example. And surveys and experts offer different answers about how important money is, depending on how the question is phrased. Dee DiPietro, founder and CEO of Advanced-HR Inc., described money as “a baseline”: too little of it can make workers feel unappreciated and resentful. “You don’t want compensation working against you as a motivator,” she said. “People just don’t want to feel like their employer is taking advantage of them.” However, motivation to work hard rarely comes solely from money. If your employees are being paid fair salaries and still seem unwilling to go the extra mile, throwing more money at them is unlikely to be the answer. 7. Don’t rely on stock options. If money is an unreliable motivator, stock options are even less likely to motivate most workers. Employee worth goes up and down with a company’s stock price — something very few workers feel they can control. DiPietro considers options “more of a retention tool” because they vest over several years. But she said that most employees simply lump them together with their salary when they consider how much they’re being paid for their work. “People tend to look at the whole cash package,” she said. 8. Offer help with career goals. When you ask workers what kind of work they enjoy, also find out about what they’re hoping to do in the future. Giving workers opportunities to build the skills and make the connections they need to get ahead in their careers will build loyalty and motivation. 9. Help employees learn. It’s very important for workers to keep learning new skills on the job. With people changing jobs more often than they used to and companies no longer promising long-term employment, younger workers in particular realize that continuing to learn is the way to stay employable, said Leslie G. Griffen, managing partner of Career Management Associates, in Overland Park, Kan. “Kids today are really under pressure to keep adding knowledge,” Griffen said. “I think learning is huge: the ability to gather new knowledge on the job.” Organized classes and seminars are one way to help with this, as are tuitionreimbursement programs. But in many cases, it’s a matter of listening to what skills a worker is interested in acquiring, then giving the person a chance to work on a project that will develop those skills. 10. Recognize that motivation isn’t always the answer. If your motivation efforts aren’t working, it may not be your fault. “Not everyone can be motivated for that particular job,” Beasley said. If an employee would really rather be doing something else, it may be best to encourage him or her to pursue something new.

Rather than fight a futile “war for talent”. How long do you think good. People Leave Managers. In this context organizations need to dig novel approaches to retain the most effective manpower. why are some of our best employees choosing to leave and what is being done? . leaders should “build talent” by looking within their organisations for the critical skills. David Russo explains why employees are your most valuable asset -. Because of this high cost of turnover.Staff turnover can cost companies dearly. As this case study illustrates. Retention bonuses in the context of bankruptcy: Retention bonuses. Learn about one telecommunications giant's best-of-breed staff retention approach and the many ways it's paying off for both the staff and the company. and creditors alike as an important and useful way to help reorganization by maintaining those most valuable employees.by far. other uses of the money are also very effective. also known as pay-to-stay bonuses. This chapter is from the book 17 Rules Successful Companies Use to Attract and Keep Top Talent: Why Engaged Employees Are Your Greatest Sustainable Advantage The question is. knowledge and attributes required to execute their company's most important roles. This study examines the challenges that organizations face with employee retention in an increasingly competitive labor market. employee retention and bankruptcy: Balancing stakeholder interests. debtors. talented people stick around at places that treat them like draftees? Not long. retain and motivate high performing employees is a positive and valuing attitude toward them. have become common practice since the early 1990's and have been heralded by courts. Not Companies: How To Increase Employee Retention Retaining employees involves understanding the intrinsic motivators of them which many organizations unable to identify. but competitive salaries aren't the lone factor in reducing turnover. There's no denying that money keeps tech staff in their current jobs. Key employee retention plans (KERP). Research indicates that the total cost of employee turnover is about 150% of an employee’s salary. the organization that is the focus of this article sought to understand their employee’s turnover intentions and the reasons for the potential turnover. that will: Look at exactly what “employee retention” is and examine three trends that are currently shaping employee retention strategies. Introductory chapter. One of the foundation stones of companies which attract. Executive Summary of a study.

Empower the employees: Give the employees the authority to get things done. These practices can be categorized in 3 levels: Low. Make employees realize that they are the most valuable asset of the organization.” Yes. 7. trust them and respect them. high. Keep providing them and feedback appreciate their on their their morale performance. achievements. medium and high level. 5. she would have stayed. Hire the right people in the first place. . Create an environment where the employees want to work and have fun. The basic practices which should be kept in mind in the employee retention strategies are: 1. “If only I could have paid her more. Recognize Keep 9. you’ve lost people because of money. 3. 4. 8. but the majority of contemporary research finds that people leave for one major reason and several subordinate ones. Provide them information and knowledge. 6. Have faith in them.Most of us believe our employees leave us for money reasons. How many times have you said. 2.

This has been classified into three groups . lost knowledge. satisfied colleagues and reporting staff. Various estimates suggest that losing a middle manager in most organizations costs up to five times of his salary. insecure employees and a costly candidate search are involved. examples from other industry practices as well as develop innovative Employee Relation Initiatives as highlighted below. increased product sales. Hence failing to retain a key employee is a costly proposition for an organisation. It is a known fact that retaining your best employees ensures customer satisfaction. effective succession planning and deeply imbedded organizational knowledge and learning.<Low> <Medium > <High> Retention of Key employees is critical to the long term health and success of any organization. Employee retention matters as organizational issues such as training time and investment. The BPOs in India face an enormous challenge in reducing attrition rate and this being a nascent industry needs to draw parallels.

HR Strategist at the Corporate Level of the BPO Industry indeed have a huge challenge before them and their approach has to be proactive and they have to develop Innovative Employee Relation Initiatives as mentioned hereon. · Nasscom has estimated that the Indian ITES industry will gross over $5.10% · Night shifts .7 billion by 2005 (based on a conservative year-on-year growth of 65 percent by Nasscom).1. the following trends are seen as below. Based on my discussions with the experts in the BPO industry. · To reduce the pressure on the recruiting process. This creates insecurity and makes the employee feel unsuccessful. Managerial/supervisory level 3. There are varied reasons for the same and the major reasons for attrition rate are(based on author's sample study):· Money . Employee Recognition Initiatives Here this article attempts to highlight the strategies for the corporate level. which are pretty steep and are around 40-50%. Supervisors want the job of the CEO.35% · Monotonous/boring job .25% As seen above from the above data. Before we proceed its important to understand the underlying reasons for high attrition rates. literature and data available.30% · Others . About 80% of them look for better careers within the same industry. . · A satisfied employee knows clearly what is expected from him every day at work. The Corporate level 2. Corporate Level Retention strategies:Relevance of Retention Strategies in the Indian BPO Industry vis-à-vis other industries is very critical to its existence for the following reasons · To bring stability in business and increase customer service process. Currently it is about 35% in nonvoice and 45% in voice call centers. · Staff/employee satisfaction translates directly into money quite quickly in the BPO industry compared to other industries. Team leaders want to become supervisors. An employees deliverables at work must be communicated to him clearly and thoroughly. Agents want to become team leaders. Changing expectations keeps people on the edge and creates unhealthy stress. · Recent acquisition deals both domestic & overseas by BPOs makes it even more critical to stabilize their back end operations to service new customers.

abilities and skills. if the employee knows what they are supposed to do. · Implement Competency Models which should be well integrated with HR processes like Selection & Recruitments. They have to take time to meet with new employees to learn about their talents. "What is about the work system that is causing the person to fail?" Most frequently.or they will move to an employer who provides them. In my experience I knew the MD of a company who knew the first names of all staff including workers to that extent he used to enquire about the well being of the family members if it was casually mentioned that wife or children aren't keeping well.--lack of feedback about performance.--lack of clarity about benefits pertaining to performance based incentives. · The ability of the employee to speak his or her mind freely within the organization is another key factor. Training. Senior managers refer to the president of a small company or a department or division head in a larger company. --lack of clarity about expectations. Meet with each employee periodically. training.· The quality of the supervision an employee receives is critical to employee retention. . · Using psychometric tests to get people who can work at night and handle the monotony. You just need to know their skills. temperament or talent. time and training necessary to do their job well . It's a critical tool tohelp employees feel welcomed. Edward Deming's question. The employee must have the tools. and the ones most affecting employee retention. Frequent employee complaints center on these areas. · The Senior Managers to be involved in the recruitment process if the Recruitment team has identified potential and cultural fit candidates. time and training. · A common complaint or lament during an exit interview is that the employee never felt senior managers knew he/she existed. are tools. Performance appraisal and potential Appraisal. · Another important factor is focus on the process than on the person especially when the employee is not failing at work. They will have more useful information and keep their fingers on the pulse of organization. talent and experience. Refer to W. Have meetings or dinner once a month. to share the company's vision. The easiest to solve. the industry's growth and where they see themselves in this scheme of things. then the answer is time. · Talent and skill utilization is another environmental factor your key employees seek in your workplace. acknowledged and loyal. · When an employee is failing at work.--failure to provide a framework within which the employee perceives he can succeed. and take the time to tap into it · The perception of fairness and equitable treatment is important. tools.

encourage the employees to share their experiences. bonuses and gifts make the thank you even more appreciated. BPOs should endeavour to implement work-life balance initiatives to reinforce the retention strategies. it should be taken up on a priority basis and kept confidential as far as possible and the senior management should meet the employee to discuss his reasons for leaving and evaluate if his issues bear merit and whether they can be resolved · Exit Interviews: Outsource this process to external consultants to get a realistic and unbiased feedback. competitive. recognized and appreciated. This can be a great source of information regarding the shortcomings in a management system. · Provide opportunities for people to share their knowledge via training sessions. · Select the right people in the first place through behavior-based testing and competency screening · Draw lessons from the Indian Army. · Your staff members must feel rewarded. for their command and control leadership where the troops are highly skilled. · If a key employee resigns. Understandable raises. follow the maxim of Mr. produces a highly motivated and efficient organization. presentations. Monetary rewards. Treat the employees well & provide dignity of job. Troops expands their skills and experience capabilities they never dreamed possible. Make work fun. benefits package. · Offer an attractive. · In Company presentations to potential candidates. Marriott that "Ladies & Gentlemen serve the Ladies & Gentlemen". Innovative and practical employee policies pertaining to flexible working schemes. · Demonstrate respect for employees at all times. Work-life balance policies would have a positive impact on: . employ the special talents of each individual.· Involve the advisors or team leaders in the interviewing panels. Engage. mentoring others and team assignments. . motivated and morale is high. Learning opportunity and responsibility is the key. family and dependants. The comparisons is drawn as both(BPO & army) have large numbers of employees and army's style of leadership may not relevant to BPOs but it must be understood & gathered that military organizations are team oriented with continuous training. etc. Frequently saying thank you goes a long way. granting compassionate and urgency leave. providing healthcare for self. tied to accomplishments and achievements help to retain staff.· People want to enjoy their work.

· Implement organizational culture measurement tools like Adversity Quotient (AQ). please help us to train them". Provide a meaning or a cause to their lives. Chairman of the Oberoi Group in efforts to makes sure that many women joined his company went to educational institutions and elicited women's parents to come to the hotel. . · According to research by the Gallup organization. at work. even best. · Excellent Career Growth prospects. .• • • • • Attracting high calibre recruits Retaining skilled employees Reduce recruitment costs Improve employee morale Maintain a competitive edge Listen to employees' ideas. · Staff adequately so overtime is minimized for those who don't want it and people don't wear themselves out. · Offer performance feedback and praise good efforts and results. If not fulfilled then they will look outside the organization. roles and responsibilities so that people know what is expected of them and feel a part of the crowd. There is an example of this instances. · Reach out to the families of the potential candidates with sustained and focused messages in the media about the excellent prospects in the BPO Industry. · Communicate goals. friends. Encourage & groom employees to take up higher positions/openings. Holi. never ridicule them. · Feeling valued by their manager in the workplace is a key to high employee motivation and morale.Late Rai Bahadur Mohan Singh Oberoi. Get them involved in social causes and fund drives like Tsunami Disaster Relief. · Encourage humour & laughter in workplace to deal with stress which will ensure that the employees are happy which gets reflected in their services especially critical in voice based transaction. · Nurture and celebrate organization traditions like Diwali.Christmas etc. He told them " I will walk you in and show you what your daughters will do with us. · Recognize and celebrate their success. encourage employees to have good.

· Creativity & Innovation.Its all about Attitude! A job can be as monotonous or exciting as you think/believe it to be. which would help them. 7. 6. Dietary advice:.if a person has the potential to be a trainer. Have people from other walks of life to talk about their experiences. Special lights in the office/workplace to ensure their bodies get sufficient vitamin D. For instance. · Encourage the best performers to share their experiences with others and mentor others. They are helping people (clients) to make their life easier. 4.Other professions like Army.like Banking & Financial services to be imparted training/knowledge of Vedic Maths.Look for talents within the organization and encourage them. One distinct disadvantage of night shifts is the sense of disorientation with friends and family members. · Focused Training & Development ProgramsFor Associates & Team Leaders · A session on Transactional Analysis during the induction period so that both are made aware of the causes for Communication breakdowns & conflicts which affect their mental behavior and stress which needs to be tackled at the earliest in the right manner. Have doctors to advise & guide them about their biological clocks and ways & means to deal with them. · Those who are working on services verticals . Medicine. 3. 5. groom & develop the employee. · Night shifts 1. Create the passion that they are doing a yeomen service to the nation by bringing the much-required Foreign Exchange. Concentrate on this problem and develop innovative solutions and ways to deal with it.Do's and don'ts. 2. enjoy and be passionate about the work they do. . calculate the figures quickly without using calculators. and shop floor workers also have towork in night shifts. Look for excitement in the job process as it is not just answering the queries or solving the problems of customers but learning more about the customer through his voice accent or visualizing his environment/culture. The emphasis is to create the desire to learn. as it is all a state of mind.

Attracting.the emphasis is that they should never be in the stress mode or upset while attending calls of a customer. · Hire outstation candidates (from small towns like Amravati. Employees are said to be a company’s greatest asset. the top hierarchy has a contingency plan laid firm. It should evolve from a transactional support role to partnering in the organization's business strategy. Renuka Vembu analyzes the causes of attrition. Conclusion It is HR's job. human resource management practices must be grounded in two ways. It is the group which is lower down the ranks for whom there is no succession planning strategy in place. COO and Country Head (India). though not HR's job alone. HR must implement these commitments so that the ideals of the enterprise and deeds of its agents are congruent. they create a vacuum—either for the company in large or in their immediate frame of surroundings. Any organization suffers when the most efficient and valuable employee decides to part ways—be it the top notch or lower down the ranks. but because an employee finds an ‘apparent’ right . That is. First. SunGard. nurturing and preserving them is a mission in itself. and who comprise the volatile lot. to be effective. Reasons to resign Akila Krishnakumar.Nashik etc) and provide them with shared accommodation. this is an inconvenient truth in the stark reality of attrition versus the desperate efforts of retention. However. Secondly. the efforts made by organizations to retain their talent and why these retention strategies do not always manage to hold on to the talent Salvaging the talent pool is a tough task for companies and HR departments alike. Latur. to champion and shepherd effective human resource management practices at both the strategic and day-to-day levels. They are easy targets of poaching in the competitive talent market. which takes total commitment and endorsement. safeguarding.· Meditation Room or deep breath exercises for Associates & Team Leaders . While the middle management has a career chart well in place to take on the next position. they must reflect company wide commitments as to how it will manage and relate to its employees. HR to play a key role in the development and execution of the Business Strategy of an Organisation. felt “Most often the decision is not compensation related. Why retention strategies often fail Salary and perks are not the only factors that make professionals switch jobs.

relocation and academical pursuits. Therefore. culture contrary to values. incompatibility with the culture. apparent because this impression is based on the candidates’ understanding of a new role from the first few interactions with the other organization. help interpret in-house opportunities. and are as important as recruitment and training. Companies are increasingly engaging in retention strategies which are gaining prominence. “It is the effect of multiple causes covering engagement. . culture (workplace as well as performance). a reporting manager or are there generic issues which need to be addressed. conflicting communication (including feedback). Retention plans need to be phased out bearing in mind not only the job requisites of an individual.. interpersonal failures. Vikram V Kallianpur. be the connection between the organization and employees on the ground. delayed reward and recognition.” TMI Network gave a different perspective. work ethics. etc. a specific job function which is high pressured. While on the job. insensitivity with individual health problems or personal issues. low employee-manager engagement. Virtusa Corporation. may act as some of the reasons which force the best players to search for better options. said.” In a globalized marketplace and 24/7 job function. Director. etc. what works best for employee retention is to ensure that employees have a good connect with their team managers. where one peer makes it to top and the subordination issue creeps up Bringing a new boss in between Professional freedom ceiling—one may hit the ceiling of growth and they may look for larger companies to get more space to grow Re-organization While average performers can be replaced. They opined: • • • • There occurs space crunches as one moves to top of the ladder. The main issue is to identify why employees leave—is it with respect to a particular team or department. promotion and pay package. and in general. who can guide them towards meeting their individual aspirations within the same organization. the Herculean task is finding a replacement for exceptional performers who leave an organization. The actual ‘drivers’ of attrition can stem from lack of goals or reviews. compensation. insufficient perks. inflexibility in the work timing. absence of timely recognition and compensation. and the people-touch each people manager practices in the organization. conflict with team members or boss.opportunity elsewhere. HR. but the surrounding environment as also gaining an insight into an individual’s personal life. lack of communication. it is imperative to stress on connecting on a personal level with employees. inconducive environment. The analysis paralysis comes with reasons such as career advancement. family constraints. demystify their apprehensions. growth.

ensuring a challenging role.P. . They have to move out from just being a publicity mechanism or a policy on paper to more diligent implementation for the overall betterment of the organization and its workforce.” For employees to stay motivated and dedicated. group movement like reporting to another boss. flexible work policies. voiced. Angelo Apollos. a respected brand name..V. They say that different strokes for different folks. these are a given under any circumstance and stand as the basic requisites.” Venkatesh Subramanian. these are the many reasons why employees would be proud to be associated with a company. engaging in fair and transparent dealings. both in salary and benefits like stocks. promotion and location movement. “There is no unique and uniform solution or tool for retaining employees. an open-door policy. TMI Network. addressing grievances. “Management of the company must ensure that effective retention strategies are well practiced at both strategic and day-to-day levels. Valuable employees always consider themselves to be brand ambassadors and stakeholders. job rotation. a defined career path. proper training and skills upgradation. It reflects the culture of the company. even onsite posting will help resurrect the situation and retain dissatisfied employees. and when monetary benefits is no longer the only cause of concern. VP and Head. role betterment. But. CA India. well defined career paths backed up with the requisite training. HR needs to take steps to be aware of employee problems proactively and try to solve them creatively.” In an age when needs far exceed the expectations met. its brand identity and the quality of its workforce. a robust mechanism to promote internal career opportunities. GlobalLogic Inc. HR strategies must evolve from a transactional support role to partnering in the organization business strategy. HR. employee empowerment. explained.Iti Kumar. satisfied with the work and happy to be working where they are cared for and valued by. HR Head. Effective leadership is another key aspect for keeping the young breed motivated and shaping up their careers. effective performance management and appraisal. Director. People Development. Different tools are used for different factors and it is not necessary that it will work for everyone. therefore it is really essential for the management to provide long term strategy and vision. an effective communication channel. are mandatory. inclusive decision-making. “Designing jobs and assigning work which is challenging. family-friendly services and benefits. Datacraft stated. the intangibles and add-ons that come with the surrounding environment act as a motivator on the job. believed that amendments in the form of compensation correction. IT Careers. and perform to the best of their ability. providing a framework where employees can access relevant development opportunities. a well articulated and evident corporate and social culture. A. Ulhas Aher. strong lifestyle-oriented benefits. This keeps them on track and in focus.

in this stress-ridden age and lack of work-life equilibrium. educational system lags behind in experiential learning and providing practical know-how. Provision of concierge services reduces the tension of employees to a great extent as additional responsibilities are taken care of by the company within its premises. They have to be clubbed with other areas as well for churning out the required impact. California Software Company. People may have various aspirational levels at various stages in life. Deputy GM. affecting the chances of companies to recruit and retain the best available and polished talent pool. CEO. . be it money. While there is a unanimous view that employee benefit programs and welfare initiatives aimed at retaining the workforce definitely work at one level. An analysis Retention strategies have to be carefully executed keeping in mind the people involved because it revolves around them. It is often the small things that make a large difference. companies engage their employees in career and personal counseling sessions by inviting professionals on a periodic basis. Similarly. any arrangement to reduce the traveling woes act as a major attraction. Also. Since there are increasing health concerns even from a very young age. the fact is it is not a standalone strategy. recognition or love needs or a combination of it makes them look around for an effective alternative. and companies are increasingly trying to adopt are innovative ways to not only make employee life easier but also to enhance it. Educational tie-ups help employees upgrade their skill-sets and thereby give them a better chance in the outside job market and improve their career scope.” What employees need and demand. and cross training expands the role width and gives employees exposure to perform in multiple projects. status.Pratik Surana. It also helps in refreshing their skills which could not be exploited or unleashed to the fullest potential. Feedbacks from employees have to be worked upon. giving them platforms to work with cutting edge technologies. said that creating a sense of belonging. availability of raw talent far exceeds that of polished skill-sets. The huge gap in the demandsupply for specialized skill-sets is still widely prevalent. and their inputs included in making it a success effort. position. All these hindrances further act as roadblock. in an age where commuting eats up a considerable amount of a person’s time. Employee Stock Ownership Plans (ESOPs) help build up an individual’s financial bank. “There is always an urge for learning amongst human beings and any good cross functional training could make an individual feel important in the organization when nominated for such programs. Flexitime policies and telecommuting privileges are also some of the upcoming ideas that are being tried and tested by companies. medical benefits are of utmost importance. Quantum Infotrainers and Consultants said. Vaidyanathan P. HR. Krishnakumar felt that strategies worked best when an organization is successful in demonstrating the ‘what’s in it for me’ to the individual employee.

” Aher stated. chances of failure are minimal as compared to a new organization with new people. e2e People Practices. In this era where all employees believe in an average work span of two years in a firm. It may also reflect in the business prospects as the firm may not have employees with the appropriate skill set required for the respective job. Yeshasvini Ramaswamy. but also send out the wrong signal to the existing employees as a damage control effort will seem as a desperate attempt to save face. etc. “Attrition to some extent is good for the organization because it gives an opportunity to get new people and new ideas. everything has to be aligned and be in sync for the company to reap benefits of the program. new culture and new processes. The company will benefit as the cost of hiring and slack in the period till the new recruit gets accustomed in the new culture is reduced. endorsement. additional efforts. and making them a perfect fit for the defined job role. knowledge and skill-sets. are great tools when attracting talent and the ROI of these strategies and initiates.Apollos felt that these strategies worked on three levels—they provide a compelling reason as to why an employee should stay with the company. When a company loses large or significant numbers of employees it becomes more difficult for that company to attract high quality talent to replace those that have left the company. sulking employee morale and team spirit. impact on productivity.” Objective.” Ramaswamy pointed out that the work environment would be disturbed as the employees may associate themselves with the failure and disregard the upcoming initiatives from the firm. Director. But. if linked to the company strategy. HR take with them years of experience. initiative. these strategies do help as they drive a high productive culture because the top performers love challenges. “Yes. When people and process are known. retaining valuable employees will reflect in their career as it would show their consistency and commitment (reflecting in employee loyalty towards the organization). time and resources are spent on searching for the appropriate replacement. It also includes the cost of productivity lost. This will not only give a dent to the company’s image. A proactive approach is better than a trying to design a cure at a later stage when the damage is done. and then molding them to represent the organization. improved and renewed efforts and resources of bringing in a new person on board. hence saving costs. execution. The consequences The consequences of attrition are manifold—loss of business. “This issue is mainly faced . will deliver tangible and intangible business results. voiced out. Apollos added. Also. When employees stick to the organization they become more productive and in turn get more benefits in all aspects. training and learning cost and most importantly it may affect employer brand adversely. beyond certain point it only leads to losses and negative impact. Cost of replacement is not just the recruitment cost. “Attrition is one of the most significant hidden costs in a business and can amount to as much as six months salary and there are also other costs such as the negative impact to company’s employment brand. it is a known fact that when any employee quits.

The sector is growing at a rate of approximately 8%. contract catering. systems and ‘walking-the-talk’ get the leverage to better retention. Traditional views of staff retention are no longer effective or appropriate in the current talent market. Other than that. it fails. the mechanisms to cope up with attrition and retention also vary. results remain suboptimal. At the end of the day. Hospitality sector is growing at a very fast rate in India.” Making the retention strategy work is one of the greatest challenge for every organization. A future together With changing ways of working.by SMEs as sourcing talent at the appropriate cost and time is always a concern. most often. MD (India). asserted. Unless there is a fundamental integrity that seeks to engage a team for building a future together. as they form the glue that sticks the organization together. the demand for well trained quality personnel too has grown impressively. clubs and bars. The senior management commitment to encouraging the ‘people’ function as a strategic partner to business with ‘right funding’ for systems. This sector can be classified into hotel industry. training and development enables higher people touch which in turn helps in retention. The recent liberalization of trade and opening up of economy will further lead to revolutionary growth in this sector. restaurants. “Organizations that focus on consistently investing in people practices. It is a glamorous profession which has a bright future. Kallianpur summed up. career opportunities in this field are not only limited within the country but there are chains of hotels which operate internationally providing scope of a career abroad.” Similarly. the challenge boils down to that of building effective leadership at every level. but being constantly aligned with the people aspect to business enables mapping solutions for problems getting resolved. HOTELS Hotels are amongst the most visible and important aspects of a country's infrastructure. Raj Bowen. There are no quick fix solutions to staff retention. pubs. attempts at pulling the strings on employee attrition are not a temporary survival tactic. “When the stated and implemented strategy of an initiative is just to retain employees. A number of factors like promotion of tourism and rapid industrial progress have given a boost to Hoteliering. Personnel Decisions International (PDI). With increasing globalization. and aviation. There has to be a larger and more evolved purpose that is linked to both—the growth and success of the individual and that of the enterprise. . as also establishing a credible relationship with them. Hotel industry is a closely linked one to the tourism industry. With the growth of hotel industry propelled by foreign and domestic tourism and business travel. and the team buys into the dream. They have to be substantiated with long-term goals for the employee.” he added. travel and tourism.

interpersonal skills. safety concerns and diseases also harms the tourism industry 5. Intense competition and image of India: The industry is witnessing heightened competition with the arrival of new players. and Business Communication. India is focusing more on white collar jobs than blue collar . Customer expectations: As India is emerging as a destination on the global travel map.One of the greatest challenges plaguing the hospitality industry is the unavailability of quality workforce in different skill levels. Shortage of rooms: The hotel industry is facing heavy shortage of rooms. 50. Human resource development: Some of the services required in the tourism and hotel industries are highly personalized. Problems of manpower in hotel industry 1. The hospitality industry has failed to retain good professionals. the shortage will still persist. Manual back-end: Though most reputed chains have IT enabled systems for property management. One of the reasons for this is unattractive wage packages. Skilled chefs and managers are in great demand. and no amount of automation can substitute for personal service providers. The image of India as a country overrun by poverty. people management. Though the new investment plan would add 53.000 rooms by 2011. 4. succession planning. Though there is boom in the service sector. 2. etc. sporting venues. employees are not enough trained on Business Etiquettes.. reservations. The major challenge of this sector is shortage of skilled employees along with the challenge of attrition rate. viable skills. 7. Managers require huge range of competencies such as. new products and new systems. Shortage of skilled employees:. Courtesy. business insights.opportunities also exist in universities. So an employee must have right attitude. It is estimated that the current requirement is of 1. In addition to that. political instability. 3.000 rooms. analytic skills. and listening skills in order to move up the hierarchy. The competition from neighboring countries and negative perceptions about Indian tourism product constrains the growth of tourism. expectations of customers are rising. exhibition centers and smaller events management companies. most of the hotel management graduates are joining other sectors like retail and aviation. The companies have to focus on customer loyalty and repeat purchases. Retaining quality workforce: Retention of the workforce through training and development in the hotel industry is a problem and attrition levels are too high. Hospitality is all about handling people. tolerance. There is still a long way to go to inculcate good public relation. 6. and resource development in order to get success in this sector. almost all the data which actually make the company work are filled in manual log books or are simply not tracked.

The shortage of blue collar employees will pose various threats to the industry. the investment is not realized. the relationships that employee built for the company are severed. For the purpose of engaging employees effectively. areas of responsibility. Loss of Company Knowledge: When an employee leaves. training costs and productivity loss). Outcome of attrition on organization 1. Higher retention rates motivate potential employees to join the organization. 3. Interruption of Customer Service: Customers and clients do business with a company in part because of the people. 4. The Cost of Turnover: The cost of employee turnover adds hundreds of thousands of money to a company's expenses. managers follow the workforce scheduling process . Employee Scheduling. repetitive tasks can cause burn out and boredom over time. Often much time and money has been spent on the employee in expectation of a future return. Goodwill of the company: The goodwill of a company is maintained when the attrition rates are low. 6. and able to give and receive constructive feedback. Relationships are developed that encourage continued sponsorship of the business. Co-workers are often required to pick up the slack. look for ways to introduce variety by rotating duties.Poor scheduling of work may result in employees who either are overloaded with work or don't have any work at all. 5. he takes with him valuable knowledge about the company. industry experts often quote 25% of the average employee salary as a conservative estimate. While it is difficult to fully calculate the cost of turnover (including hiring costs. customers. which could lead to potential customer loss.jobs. Managers and supervisors should be comfortable communicating with their staff. delivery of service etc. Conduct periodic meetings with employees to communicate good news. When an employee leaves. 2. When the employee leaves. The unspoken negativity often intensifies for the remaining staff. Turnover leads to more turnovers: When an employee terminates. challenges and easy-to-understand company financial information. current projects and past history (sometimes to competitors). 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. If the job requires repetitive tasks. the effect is felt throughout the organization. And even after this you cannot assure us of the same efficiency from the new employee Techniques foe employee engagement in hotel industry Provide variety: Tedious.

g. It is a difficult and a time consuming process.Employee scheduling refers to the assignment of tasks between the employees. but leave because of what their managers' do or don't do. Retention bonuses are becoming more common in the corporate world because companies are going through more transitions like mergers and acquisitions. some companies pay in installments as on when the business cycle completes. It is seen that managers who respect and value employees' competency. pay attention to their aspirations. Retaining quality performers contributes to productivity of the organization and increases morale among employees. They can also come through serious events e. Role of HR Manager in Retention When asked about why employees leave. Motivation does not necessarily have to come through fun events such as parties. managers and team leaders play an active and vital role in employee retention. However.Employees' previous assignments so as to ensure that maximum work duration does not exceed in the current month or quarter. they will have one more reason to stay in the team. arranging a talk by the VP of Quality on career opportunities in the field of quality. It involves producing detailed daily (or monthly) schedules for individual employees while taking the organization's goal into consideration. low salary comes out to be a common excuse. Employees who look forward to these events and are likely to remain more engaged. When agents see the team leader standing up for them. * Standing up for the Team: Team leaders are closest to their team members. Retention Bonus is one of the important tools that are being used to retain employees. Providing Retention Bonus .. research has shown that people join companies. Retention bonus is an incentive paid to an employee to retain them through a critical business cycle. Therefore. value the quality of work life and provided chances for learning have loyal and engaged employees. assure challenging work. While they need to ensure smooth functioning of their teams by implementing management decisions. . team outings etc. Skill and proficiency level required for each activity type.Higher attrition rates within a particular industry have forced companies to use some innovative strategies to retain employees. They need to give key people an attractive incentive to stay on through these transitions to ensure productivity Retention bonuses have proven to be a useful tool in persuading employees However. Employee Empowerment . employees designated for training in these skills. celebrations. they also need to educate their managers about the realities on the ground. Companies have now realized the importance of retaining their quality workforce. 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. Company skills to develop.

The Indian aviation sector is moving at a faster pace.5 per cent in 2006-07. Talent management integrates traditional talent-related functions that were considered as "administrative" functions into routine business processes. coaching is followed by monitoring performance and providing feedback on the same. as essential activities that make a significant contribution to any manager's business results and success. * Extra Responsibility: Giving extra responsibility to employees is another way to get them engaged with the company. development.6 million. Cargo traffic is also growing at a fast pace at these airports. cargo growth is expected to reach 9 million MT by 2020. managers should play the role of career counselors as well. Therefore. including 60 million . If an employee sees that his current job offers a path towards their future career aspirations. retention. Airports Authority of India (AAI) operates 127 airports including 13 international airports and 25 civil enclaves in the country. 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. * Focus on future career: Employees are always concerned about their future career.* Providing coaching: Everyone wants to be successful in his or her current job. 36. The domestic aviation sector is expected to grow at a compounded annual growth rate (CAGR) of 20% over the next five years. etc. By 2020. they do not delegate their jobs as much as they should. just giving the extra responsibility does not help. However. * Delegation: Many team leaders and managers feel that they are the only people who can do a particular task or job. However. Indian airports are estimated to handle 100 million passengers. Delegation is a great way to develop competencies. Managers often tend to escape this role by just coaching their employees. growing at a CAGR of 14%. At present. one of the key responsibilities will be providing coaching that is intended to improve the performance of employees.47 per cent growth was registered in domestic segment. Therefore. By "embedding" people management processes into standard business processes one can force line managers to think of recruiting. A manager should focus on showing employees his career ladder. not everyone knows how. However. The number of air travelers also increased by a record 38. In 2007. From the current volume of 1. then they are likely to stay longer in the company. Therefore.

The salaries offered are at par with the competitors. It is estimated that a requirement of 40. and infrastructure constraints. Kingfisher Airlines.domestic passengers and Cargo traffic of 3. certain factors have been hampering the growth of Indian Aviation Sector like high aviation turbine fuel prices. Air India. approximately 10million tourists will be visiting India by 2010.000.6 lakh per month.5lakh jobs by 2010 as fleet expansion is on the rise. For example. shortage of skilled labors.3 lakh a month so as to retain talent. With such a robust growth. maximum attrition is observed in employees in age group of 26 to 30 years with experience of two to four years. and Paramount Airways.2 lakh per month. While some private airlines are even paying their engineers Rs. rapid fleet expansion. Some key players of the sector are JetLite. Employment: The Indian aviation sector is likely to generate nearly 2.4 million tonnes per annum. Moreover.500 pilots every year due to the phenomenal growth in the civil aviation sector. resulting in dearth of talented professionals in the companies. a landmark in seven years.1 lakh and Rs. The attrition among pilots and cabin crew is as high as 46 per cent. the sector would be facing a dearth of qualified commercial pilots. GoAir. As a consequence of commonwealth games. However. Engineers of both carriers are paid between Rs. SpiceJet. expats and technicians. Attrition: Skilled employees are leaving their companies on a large scale thus.5 lakh to Rs. There is little difference in the pay packages of state run airlines and private players. Compensation: The key players are paying hefty salaries to their employees in order to retain them with the company for long.000 to Rs 15. Similarly.000 cabin crew members will arise in coming five years. the pay packets of pilots and cabin crew range from Rs. ‘ . Year 2007 was marked by no accidents. the ground staff get salary ranging between Rs 10. There is a growing demand for training 1.