CH.I - INTRODUCTION 1.

1 ORGANIZATION PROFILE

CHAPTER 1 INTRODUCTION
1.1 ORGANIZATION PROFILE:

Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor Company (HMC), South Korea and is the second largest and the fastest growing car manufacturer in India. HMIL presently markets 34 variants of passenger cars across segments. The Santro in the B segment, the Getz Prime and the i10 in the B+ segment, the Accent and the Verna in the C segment, the Sonata Embera in the E segment and the Tucson in the SUV segment. Hyundai Motor India, continuing its tradition of being the fastest growing passenger car manufacturer, registering total sales of 327,160 vehicles in the calendar year (CY) 2007, an increase of 9.2 percent over CY 2006. In the domestic market it clocked a growth of 7.6 percent as compared to 2006 with 200,412 units, while overseas sales grew by 11.8 percent, with exports of 126,748 units. HMIL·s fully integrated state-of-the-art manufacturing plant near Chennai boasts of the most advanced production, quality and testing capabilities in the country. In continuation of its commitment to provide the Indian customer with global technology, HMIL has set up its second plant, which produces an additional 300,000 units per annum, raising HMIL·s total production capacity to 600,000 units per annum.

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HMIL·s fully integrated state-of-the-art manufacturing plant near Chennai boasts of the most advanced production, quality and testing capabilities in the country. In continuation of its commitment to provide the Indian customer with global technology, HMIL has set up its second plant, which produces an additional 300,000 units per annum, raising HMIL·s total production capacity to 600,000 units per annum. HMIL is investing to expand capacity in line with its positioning as HMC·s global export hub for compact cars. Apart from expansion of production capacity, HMIL plans to expand its dealer network, which will be increased from 232 to 260 this year. The year 2007 has been a significant year for Hyundai Motor India. It achieved a significant milestone by rolling out the fastest 400,000th export car. Hyundai exports to over 90 countries globally; even as it plans to continue its thrust in existing export markets, it is gearing up to step up its foray into new markets. The year just ended also saw Hyundai Motor India attaining other milestones with the launch of the i10 and yet another path-breaking record in its young journey by rolling out the fastest 1,500,000th car. Hyundai·s new model i10 which made its global debut here in India in October, 2007 made a clean sweep of all the ¶Car of the Year 2008· awards from the leading automotive magazines and TV channels like BS Motoring, CNBC-TV18 AutoCar, NDTV Profit Car & Bike India and Overdrive magazine. The i10 is also the choice of the discerning automotive media of the country as they conferred the prestigious ¶Indian Car of the Year· (ICOTY) award to the i10 as well. The i10 bagged these awards on the basis of excellence in build quality, handling, driver comfort, safety and ride quality. The Santro and the Accent also received the ¶TNS Voice of the Customer - 2008· award for the Premium Compact Car (Santro) and the Entry Mid size Car (Accent). In March 2008 it achieved yet another milestone by rolling out the fastest 500,000th export car.

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Last year, the Hyundai Verna bagged some of the most prestigious awards starting with the title of "Car of the Year 2007" by India`s leading automotive publication ² Overdrive, the ´Best Mid-size Car of the Yearµ award by the NDTV Profit Car & Bike India Awards 2007, the ´Best Value for Money Carµ by the CNBC Autocar Auto awards and ¶Performance Car of the Year 2007· from Business Standard Motoring. Hyundai cars have been a favorite at all awards ceremonies and have always been winning awards. Our models like Sonata Embera won the ¶Executive Car of The Year 2006· award from Business Standard Motoring Magazine and NDTV Profit Car & Bike India declared the Tucson as the ¶SUV of The Year 2006·. Not only this, HMIL has also been awarded the benchmark ISO 14001 certification for its sustainable environment management practices.

About HYNDAI MOTOR COMPANY Established in 1967, Hyundai Motor Co. has grown into the Hyundai-Kia Automotive Group which was ranked as the World·s Fifth-Largest Automaker in 2007 and includes over two dozen auto-related subsidiaries and affiliates. Employing over 75,000 people worldwide, Hyundai Motor posted sales of US$74.9 billion in 2007 on a consolidated-basis and US$32.8 billion on a non-consolidated basis (using the average currency exchange of 929 won per US dollar). Hyundai vehicles are sold in 193 countries through some 6,000 dealerships and showrooms. Further information about Hyundai Motor Co. and its products is available at http://www.hyundai-motor.com

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warmth and comfort Here·s the car brimming with innovative ideas and good design that will put pleasure into every moment you spend behind the wheels. The luxurious & rich interiors belie the rugged exteriors. Your quest for automotive perfection ends with Sonata. It also incorporates the revolutionary EUROSAFE Passenger Protection System that meets the latest European safety standards. the Terracan is designed to rule. The first glimpse of the Sonata V-6 will always take your breath away. 4 . The new Santro Xing combines a fresh new attitude.PRODUCT LINE-UP: The Santro Xing is a stunning combination of contemporary looks and functional luxury. Rugged yet refined. A dexterous combination of form & function. Off & on the road. This is a car worthy of a modern day Caesar.

Fuel economy had been a concern but with 1.3 is still available as top-end versions. 4 cylinder.Even though the styling of the Verna seems contemporary you always end up comparing it with the Accent. The external additions of the body of the Verna seem to blend together with the shape and this sets it apart from the Accent The Tucson 2. Getz 1. Dual airbags provide very high level of safety. Getz's space/comfort and Santro's engine make Getz Prime. This softroader is highly fuel economic and yet is very good at engine performance. it's not any more. 16 valve engine comes with amazing power 122ps and 245Nm of torque.2008 5 . 1991cc. All this in a small-car! Won Car of the Year . A very practical car. There are options like ABS and airbags along with features like sunroof to opt for.1L engine.0 CRDi. This car sits between the Santro and Getz Prime presents itself as a good looking VFM family car.

000th export car. HMIL has set up its second plant. which produces an additional 300.000 units per annum.000 units per annum. HMIL is investing to expand capacity in line with its positioning as HMC·s global export hub for compact cars. it is gearing up to step up its foray into new markets. with exports of 126.000 units per annum. an increase of 9. In continuation of its commitment to provide the Indian customer with global technology.160 vehicles in the calendar year (CY) 2007. Apart from expansion of production capacity.2 percent over CY 2006. raising HMIL·s total production capacity to 600. In the domestic market it clocked a growth of 7. which will be increased from 232 to 260 this year. HMIL·s fully integrated state-of-the-art manufacturing plant near Chennai boasts of the most advanced production. Hyundai exports to over 90 countries globally. quality and testing capabilities in the country.000 units per annum. HMIL plans to expand its dealer network. In continuation of its commitment to provide the Indian customer with global technology. raising HMIL·s total production capacity to 600. The year 2007 has been a significant year for Hyundai Motor India.748 units. the Getz Prime and the i10 in the B+ segment. HMIL has set up its second plant. the Accent and the Verna in the C segment. continuing its tradition of being the fastest growing passenger car manufacturer. The year just ended 6 . the Santro in the B segment. which produces an additional 300. registering total sales of 327.HMIL presently markets 34 variants of passenger cars across segments.8 percent. the Sonata Embera in the E segment and the Tucson in the SUV segment.6 percent as compared to 2006 with 200. while overseas sales grew by 11. even as it plans to continue its thrust in existing export markets.412 units. quality and testing capabilities in the country. Hyundai Motor India. HMIL·s fully integrated state-of-the-art manufacturing plant near Chennai boasts of the most advanced production. It achieved a significant milestone by rolling out the fastest 400.

also saw Hyundai Motor India attaining other milestones with the launch of the i10 and yet another path-breaking record in its young journey by rolling out the fastest 1. driver comfort. NDTV Profit Car & Bike India and Overdrive magazine.500.2008· award for the Premium Compact Car (Santro) and the Entry Mid size Car (Accent). The i10 bagged these awards on the basis of excellence in build quality. HMIL has also been awarded the benchmark ISO 14001 certification for its sustainable environment management practices. 7 . Hyundai·s new model i10 which made its global debut here in India in October. the ´Best Value for Money Carµ by the CNBC Auto car Auto awards and ¶Performance Car of the Year 2007· from Business Standard Motoring. the Hyundai Verna bagged some of the most prestigious awards starting with the title of "Car of the Year 2007" by India`s leading automotive publication ² Overdrive. Not only this. In March 2008 it achieved yet another milestone by rolling out the fastest 500. safety and ride quality. handling. The i10 is also the choice of the discerning automotive media of the country as they conferred the prestigious ¶Indian Car of the Year· (ICOTY) award to the i10 as well. 2007 made a clean sweep of all the ¶Car of the Year 2008· awards from the leading automotive magazines and TV channels like BS Motoring. CNBC-TV18 Auto Car. The Santro and the Accent also received the ¶TNS Voice of the Customer .000th export car. the ´Best Mid-size Car of the Yearµ award by the NDTV Profit Car & Bike India Awards 2007.000th car. Last year. Hyundai cars have been a favorite at all awards ceremonies and have always been winning awards. Our models like Sonata Embera won the ¶Executive Car of The Year 2006· award from Business Standard Motoring Magazine and NDTV Profit Car & Bike India declared the Tucson as the ¶SUV of The Year 2006·.

Expresses the will of the management for harmony and stability The oval shape symbolizes the earth to expresses the global nature of HMC car. Basic objectives of HMIL: Best customer service Best technology Best quality products Best value for people         This has helped the company deliver consistently producing some of the finest cars of the company.     Goals of HMIL: The ultimate goal is to join the ranks of the world·s top 10 automakers.The Hyundai Logo  The symbol represents an image of Car Company that produces refined cars with cutting edge technology. 8 . Hyundai cars known as world-class cars Concentrating on building cars that are more environments conscious and further improving the quality of life for everyone in future. Focus on developing advanced technology. The H logo stands fort the first letter of Hyundai motor company The slanted shape of the H represent progress and a company that will successfully face future challenges as it continues to raise its standard of quality.

 9 .HMIL Vision DREAM STRIVE ACHIEVE TOGETHER    HMIL Mission: INNOVATION FOR HUMANITY Vision of Hyundai is ´Innovation for humanity´.

December 10 Ground-breaking ceremony at the Irrungattukottai plant near Chennai. June 12 Hyundai Santro crosses 100.Milestones: 1996 May 06 Hyundai Motor India incorporated.000th Car rolls out from the Chennai plant in just 19 months of since commencement of operations. July 21 First major export-shipment of 760 Accent and Santro cars roll out of the Chennai Port for Algeria. May 08 Launch of Santro zipDrive. 1998 May 27 Pilot production of Santro at plant begins within a record 17 months of ground breaking. 10 . October 14 Launch of Hyundai Accent 2000 April 27 100. September 23 Hyundai Santro (Atos Prime) makes its world debut in India 1999 March 31 Hyundai Motor India emerges as the second largest auto-manufacturer in the country.000 car sales.

50. 1 in JD Power Asia Pacific 2001 ´APEALµ study. September 06 Hyundai Motor India launches Santro Automatic Transmission. 2001 June 12 Hyundai Motor India rolls out its 200.000th car from Chennai Plant in just 25 months. June 26 Hyundai Motor India rolls out 3.000th car. July 11 Hyundai Motor India introduces new look Santro.00.1 Litre E-Epsilon engine on the new Santro Zip Plus. November 26 Both Santro & Accent ranked No. November 01 11 . July 18 Hyundai Motor India launches luxury sedan Sonata.000th car in 32 months. October 23 Hyundai Motor India launches Sonata 2. 2002 March 18 Global launch of 1. October 10 Hyundai Motor India launches Accent CRDi. November 29 Roll out of the 1. November 22 Santro ranked No 1 in JD Power Asia Pacific 2001 ´Initial Qualityµ study.November 01 Both Santro & Accent bag top honours in JD Power Asia Pacific 2001 ´IQSµ and ´APEALµ studies.7 V6. August 16 Hyundai Motor India launches Accent VIVA.

March 13 Hyundai Motor India commences exports to Latin America March 18 Hyundai Motor India awarded ISO 14001 for sustainable Environment Management May 08 Hyundai Motor India rolls out 400. December 11 Hyundai rolls out 500. 12 .000th car in a short period of 50 months. HMI becomes small cars export hub for HMC.000th car. 2003 January 14 Hyundai Motor India awarded ¶Manufacturer of the Year· at the CNBC Autocar India Awards for the second year in a row. May 22 Hyundai Motor India launches Santro Xing. February 5 Hyundai Motor India declared ¶Car Maker of the Year· at the ICICI Overdrive Awards. August 04 Hyundai Motor India launches its premium SUV. tops both IQS & APEAL for 3rd time in a row & Accent ranked No. the global small car. June 01 Hyundai Motor India wins the Business Standard Motoring Jury Award for the Accent CRDi. December 01 Hyundai Motor India rolls out 350.000th vehicle in India. 1 in APEAL for 2nd time in a row.Santro bags top honours in J D Power Asia Pacific 2002. Terracan August 12 Export shipment of 1500 Santro Xing cars leave for Europe.

000 sales in terms of annual sales. Nov 17 HMIL introduced India·s Best Warranty for the 1st time in the history of Indian Automotive Industry ² 4 years/80. India. October 31 HMIL crossed the figure of 1.000 vehicles in export and emerged as the largest exporter in the automobile industry. Dec 25 Getz awarded ´Car of the Yearµ 2005 by Standard Motoring Magazine 2005 Jan 01 Santro once again becomes the largest selling brand in its segment.000 km warranty for Sonata & Elantra. The first Indian car to do so in its segment. Dec 01 Santro becomes India·s largest selling single brand across segments with 12. India.00. Jan 01 Accent Petrol ² was awarded the 'No 1 Entry Midsize Car' by TNS Automotive. Auto Car Auto Awards.2004 January 15 Launch of Accent Viva CRDi March 01 Santro crossed the figure of 1.061 units. 13 . 00. Jan 17 Getz awarded ¶Car of the Year 2005µ by CNBC ² TV 18. April 15 Launch of Elantra. Accent CRDi ² was awarded the 'No 1 Midsize Diesel Car' by TNS Automotive. Sept 10 Launch of Getz.

Getz.000 units by 2007 14 . in the Indian market. Nov 29 HMI exports its first shipment to UK 2006 Jan 11 Tucson was awarded as ´SUV of the Year 2006µ by NDTV Profit-Car India awards 2006 . April 6 Launch of SUV ² Tucson ~ HMIL launches the GDMS ² Global Dealer Management System . production to be enhanced by 600. a software that will help its dealers stay connected with the company in real time. Sep 26 Sania Mirza was signed as Brand Ambassador of Hyundai Getz Oct 18 HMI exported its 200. June 08 Hyundai Motor India launched three new variants of the Santro Xing with eRLX technology(XK-non AC.000th car to the overseas market.Getz-GLE. XL) Aug 17 Launch of Sonata Embera Aug 18 Hyundai Motor India introduced the export variant of its premium hatchback. Feb 09 Plant Capacity expansion announcement by Hyundai Motor Chairman.Feb 01 HMIL was declared the ´Star Companyµ amongst the unlisted companies by Business Standard.XK. Nov 01 All time high cumulative sales in October.

June 01 Hyundai Motor India Receives EEPC(Engineering Export Promotion Council)¶Top exporter of the year· Award for 2005-06.000th car April 10 Launch of Hyundai Motor India Foundation September 25 Launch of Hyundai Verna Petrol & Diesel October 31 Hyundai Motor India rolls out the fastest 300. 2007 January 03 Verna was awarded the ¶Car of the Year 2007· by Overdrive magazine.00. 15 . November 01 Santro crosses the million mark. April 02 Launch of Getz Prime.March 13 HMIL rolled-out the fastest 10. January 12 Launch of Sonata CRDi. April 19 Launch of Verna CRDi SX. March 26 Hyundai Motor India ships out the first Getz. December 30 Verna CRDi was awarded the ¶Performance Car of The Year 2007· by Business Standard Motoring. January 04 Verna was awarded the ¶Best Value For Money Car 2007· by CNBC TV 18 Autocar Auto awards.000th export car.

July 04 Launch of Santro CNG.000th car Launch of Getz CRDi Oct 31 Launch of i10 Dec 29 i10 awarded ¶Car of the Year 2008· by Business Standard Motoring Magazine 2008 Jan 09 i10 awarded ¶Car of the Year 2008· by CNBC TV18 Autocar Auto awards Jan 10 i10 awarded ¶Car of the Year 2008· by NDTV Profit Car& Bike Jan 11 i10 awarded ¶Car of the Year 2008· by Overdrive magazine Feb 02 Inauguration of 2nd plant in Chennai March 27 Export of 500.June 27 Launch of Sonata CRDi Automatic. Aug 06 Export of 400.000th car Sep 01 HMIL rolled out the fastest 1.000th car April0 4 i10 awarded ¶Car of the Year 2008· by ICOTY June 11 Fastest Export .Over One lakh units of i10 exported since its launch in Oct 31 16 .500.

this consignment will carry 1. as the Santro is badged in Europe. Algeria.966 units in FY 03 to 30. HMI Exports: Hyundai Motor India. Spain. Greece.¶Santro Eco·. September 10 10th Anniversary celebration and flag-off of ¶i drive to Paris· by Abhinav Bindra.500 units of its. 690 for Spain and 100 units for Netherlands. Hyundai Motor India. Morocco. September 30 Hyundai launches the dual fuel. This included 710 units bound for Italy.July 01 Hyundai-Kia Automotive Group Joins Ranks of Global Top 5 Automakers (Automotive News' 2008 Global Market Data Book) July 15 i 10 Kappa launched July 15 Inauguration of the new Engine & Transmission plant. Spain and Netherlands. started export shipment to Europe with a consignment of 1. flagship 'Santro' bound for Italy. Nepal and Sri Lanka are currently some of the biggest export markets for 17 .740 units YTD.000 units in FY 04. Netherlands and Belgium. The company has scaled up its export target from 8. Indonesia. The company has already exported 6. October 02 i 20 launched in Paris Motor Show and display of ¶i drive to Paris· cars.500 units of the New AtoS Prime. Western Europe is globally the largest consumer of small / compact cars with the largest markets being Italy. Colombia. The first export shipment to Europe since the announcement of HMI as the global export hub for Hyundai compact cars. the global compact cars export hub of the US$47 bn Hyundai Motor Group.

HMIL is India's second largest carmaker and a clear leader in the B. of India 18 . which together account for over 70% of the Indian passenger car industry. Awards and Certifications: For Environment ISO 14001 Certification (EMS) in 2003 from TUV. The company has announced aggressive plans to emerge as India's leading exporter of passenger cars by CY 2004. New Delhi Energy Conversation & Safety Safety Appreciation Award in 2001 from National Safety Council Energy Efficient Unit Award in 2001 from CII National Energy Conservation Award in 2002 from Govt. C and E passenger car segments. Germany Eco First Award in 2003 from Kanchi Health & Education Society 3 Leaves Award in 2001 from CSE.

Car of the Year Compact Car of the Year Car of the Year 2008 Small Car of the Year 2008 Car of the Year 2008 PM Presents ´Star Companyµ Award to Hyundai Motor India Car of the Year . 2001 & 2002) CNBC-TV18 Autocar Auto Awards 2007: 'Best value-for-money car' Hyundai Getz is the CNBC Autocar Car of the Year 2005 Hyundai Elantra ² Best Value for Money Car of the Year 2005 Company ² Awards ² CNBC Autocar India ² Hyundai has been the manufacturer of the year for two years in row.Aaj Tak Viewers Choice Award Hyundai Santro has topped the JD Power Asia Pacific Intial Quality Study (IQS) that measures product quality for three years in a row (Years 2000. 19 .

Trainee Asst.Executives: Engineer / Officer Technical / Business Associate Technical /Business Associate Trainees Executives Jr. Trainee / Grad.Manpower: [Category wise] Executives: 3096 Mgmt. Engr.VP / President Jr. Mgr / Dy.GM / VP / Sr. Executives Non Executives Non . Mgr Mgr / Sr. Mgr / AGM / DGM / GM E m p l o y e e s 1280 959 Sr.Executives: Technician / Workman / Trainee Unique HR initiatives:               Morning Department Standing Meeting ² done by all My Machine and My Station concept Music Extravaganza in the Plant ² once a year at Founders day Free Help Line services to serve employees Employees Family Visit Program ² Gift from Management thanking the family Publicity for Outstanding Work By display of achievement and Photograph in Department Notice Board By distribution of Prizes in meetings attended by all employees Annual Picnics to promote ´ ONENESS µ Birthday Greeting with flower bouquet & Plantation of trees named after them Marriage Gift to newly married employees Welfare benefits over and above what is prescribed by law Meditation for Managers ² and follow up Tax Saving Gift vouchers / Gift Credit Card on Festive occasions 20 .

The Challenges were« To manufacture and sell a global technology, global quality car reflecting Indian consumer needs at an appropriate price and attain profitability.

What Hyundai Provide: A highly Energized & Stimulating work environment High Levels of Motivation, Empowerment & Recognition Emphasis on Competence, Creativity and Challenge Proactively unleashing People·s Potential that will build the future Encourage Innovation and allow the freedom to learn from mistakes A culture of Continuous Change & Improvement 

    

Health: Regular Health Camps (Eye, Cardiac and Wellness) at the adopted villages Donated Ultra Sound Machines and Auto Refractometer to Primary Health Center 



Infrastructure: Construction of Cement Roads at Keevalur Deepening of Ponds in Thandalam & Kattarambakkam Drinking Water Tank construction at Irrungattukottai 

 

Education: Construction of High School at Thandalam (Common for Four villages) Infrastructure Facilities like Fans, Benches for the Schools of nearest 4 villages Distribution of Note Books and Stationery items to School Children Picnics for all the 4 school children once a year 

  

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Social Needs & Contingency Support: Joint participation in Social Welfare Programmes with the District Adminisitration Support during natural calamities like Flood Artificial Limbs, Wheel chair and Tricycles for Physically Disabled Persons in the adopted villages 
 

 

Contribution for setting up Night Schools Support being extended for functioning of Vidya Prakasam ² Society for Well-being of Spastic Children

Employment: Provided employment for all those eligible land displaced people of the 4 villages Provided job oriented technical training to the Unemployed youth of the villages 



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CH.I - INTRODUCTION 1.2 CONCEPTS

1.2 CONCEPTS:
Attrition: General Usage: In general usage the word attrition means 'WARE DOWN' and 'FRICTION'.

Industrial Usage: Attrition in the industrial point of view is the process of employees leaving the organization because of various reasons. and unavoidable circumstances. In detail it is the process where in the employee gets separated from the employer under whom he works under avoidable

Types of Attrition:  Death  Resignation  Retrenchment (Lay off)  Retirement Advantages of Attrition  Excess manpower can be checked  Employee movement in the industries  Job rotations  Employment generation  Reduces boredom  Fresh and innovative ideas through new people

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Director-Corporate Services for NFO. The major pitfalls for the manufacturing sector were found to be lack of growth opportunities.Disadvantages of Attrition  Loss of trained manpower  Recruitment expense  Costs of training the new person  Employee may spoil the image  Costs of retaining the talent  Company information Attrition in Manufacturing Sectors ´Attrition spreading to traditional sectors as wellµ ATTRITION is not just rampant in the BPO sector. the hidden costs incurred in attracting the right workforce and on-the-job training. FMCG and white-goods. but it is fast catching up in other traditional sectors such as manufacturing and engineering. "After all. "There is a crying need for companies to engage the employees' interest by creating a conducive environment for growth. Gautam Nath. insurance and banking. employees belonging to new-age sectors such as financial services. Mr." said Mr. said the "possible vulnerability" of white-collar workers should ring alarm bells for HR heads. public sector undertakings and services. IT and telecom seem to be relatively more satisfied. employees in the traditional sectors are most dissatisfied and would switch jobs at the first available opportunity. learning. According to an Employee Vulnerable Study by NFO India. is phenomenal. 24 . dissatisfaction with job content. However. inadequate emphasis on policies and systems and interpersonal relationships. bolster ¶we-feeling· and compensate as per industry standards. Nath.

unbalanced work life. these problems particularly hurt retention among the highest value customers. Retention: Retaining talented employees is one of the topmost priorities of employers today. job mobility. within their aggregate attrition numbers there are hidden problem areas of attrition. if we take into account client business that goes away. It is aimed at understanding motivation levels of employees. Mumbai and Bangalore. poor mentoring and stress are some factors which influence and individual·s decision to continue or quite. It encompasses the organization·s ability to provide the best of work climates. Reasons for attrition could be the innumerable changes engulfing workplaces. reasons for high degree of employee turnover in certain sectors and factors that keep the interest level of employees going. Rising opportunities for career development. or customer segments. each time we lose a key performer. Frequently. The challenge is not only to attract the best talent but also to retain them. lifestyle decisions. Among other things. and with the greatest negative impact." added Mr. For many service sectors.Also. like reorganization. Sometimes these are associated with particular products. service functions. NFO randomly polled over 200 corporate executives from some leading companies in Delhi. Nath. a retention strategy demands respecting employees· concerns right from their entry into the organization till their retirement. higher performance standards and resultant high-pressure levels. 25 .

Retention will not be a major concern if the organization stands firm on its values and promises. Design on Retention Strategies:  Corporate image Maintaining corporate image is an effective way to attract the talented. The organization has to ensure that it is sought after for employment by cashing on its good will and reputation.  Saleable Features The organization must identify its strengths and opportunities and portray them effectively. Those issues that might drive talent to leave should be dealt with immediately.What troubles employees? An Employee expect from Employer to:  Provide induction  Create a good work environment  Motivate them to work  Train them  Provide a suitable compensation package  Implement reward strategies  Counsel them  Hold affable exit interviews Appropriate HR strategies alone can satisfy employee expectations. it helps in building positive impressions initially. 26 .  Turnover Organisations must hold strict exit interviews and review reasons for turnover. The information must be ideally used to plan strategies for retention. This is almost equivalent to selling the organization to the new recruits.

Organisations should look for the best fit into their territory with reviews from their colleagues. 27 . This will help in identifying their potential and setting performance targets thereby.  Cultural Profile Matching the profile of the recruit with the cultural profile of the organization is crucial. maximizing the recruit·s performance.  Information use All information about the new recruits should be kept in mind even after the recruitment process ends. Give the new recruits every reason to work for the organization and build a long-term relationship. Continuous development Unless organizations adapt to changes and developments. customers and managers. they cannot mentor their employees and new recruits.

skill levels.INTRODUCTION 1. Employee attrition has risen by more than 25 percent in the past five years. rich symphonic sound or a cacophony of simultaneous musical notes. Like an orchestra. Employee defections are killing the bottom line and even worse. Were the violins too loud? be played? Top performing managers lead with a style that coordinates the talents of this diverse orchestra into a deep. you sometimes need to stop and re-sync. Both men and women have integrated into the workplace. no matter how good you are. they are killing any chances for a quick turn-around once the economic winds of fate shift direction. the good people will be frustrated and leave too. The Hay Group. Attrition is costly and one of the direct causes of employee turnover can be attributed to the manager.I .CH. The diversity of cultures and ethnicity is growing at lightening speed. What sounds are coming out of the employees your managers are conducting? Employees today come to work with all types of skills.3 NEED FOR THE STUDY 1. But even with this economic slowdown. Attrition costs are roughly 18 months' worth of salary for each manager or professional who leaves and a half year's pay for each hourly worker. having surveyed nearly 1 million workers in more than 330 companies over the past four years. Could you hear the flutes? How did the composer mean for the music to 28 . has shown that it is important to weed out bad managers who chase workers away. your best people have other offers.3 NEED FOR THE STUDY Today's manager is really the conductor of his own orchestra. Otherwise. attitudes and personalities.

The result is a greater transfer of classroom learning to on-the-job performance gains. According to Scott Parry. This ritual of how-to training is referred to by Training House. Inc. Unfortunately these programs often deal exclusively with the ´how-toµ dimension. as the annual ´sheep dipµ. which translates into greater productivity and more profits. Most importantly. a reduced learning curve. Competency based training first identifies the specific skills that are holding average performers back from top performance and then targets training time and dollars to improve only the most needed skills. has benchmarked 72. attitudes and skills that affects a major part of one's job. training is focused on improving performance. a competency is "a cluster of related knowledge. not just personality changes. Companies need to stop tuning into WWRN (Whatever Works Right Now) and POTY (Program of the Year) training if they ever hope to attract and retain their best people and get a return on their training investments. that correlates with performance on the job. Training House Inc. author of ´Just What Is A Competencyµ . and that can be improved via training and development".Thousands of organizations spend billions of dollars on skill training for managers. Universally they identified twelve competencies that highly effective managers have in common that the average performers do not possess. the result is merely educational and little or no performance gains are realized.000 managers in 700-plus companies in dozens of industries in 17 countries. where managers and employees are ´herded upµ and run through a program chosen because ´we haven't done that one in a whileµ or by selecting a patchwork quilt of topics attempting to meet the needs of all participants but not the specific needs of anyone. 29 . that can be measured against wellaccepted standards. and a baseline by which future performance gains can be measured.

These twelve competencies identified in top performers have been broken down into six major managerial activity clusters:  Task Handling  Administrative (Managing Your Job)  Cognitive (Thinking Analytically)  People Handling  Communications (Relating to Others)  Supervisory (Building the Team) A major reason training courses often don't make much difference in on-the-job performance is because most training programs do not deal with all three dimensions:  Knowledge  Behaviors/attitudes  Skills 30 .

Vendors that we have interviewed place the numbers much higher.4 PROBLEM 1. at 25%²60%. screening. hire. so create a work environment where the employees are involved in the development of rewards programs. Satyam. Global outsourcing and the astounding amount of foreign direct investment pouring into China. then 25 of your IT staff will leave each year. Wipro.INTRODUCTION 1. and fall behind on scheduled projects.Mr. if your company has 100 programmers and an attrition rate of 25%. get caught up in the never-ending cycle of hiring. particularly in India. interviewing. It causes companies to lose knowledge. How do the hiring and training processes break down in terms of total costs in India? The typical time for advertising.7%.6% and 17. The downside of this increased competition is a rising rate of attrition. train. and India have created tremendous opportunities and competition for talented IT professionals in those countries. negotiating. To put these attrition numbers into perspective. and coach those 25 people.I . Think about the time and money it took to find. incur training fees. and TCS listed attrition rates between 7. Fiscal third-quarter 2005 (ended December 2004) results filed by Infosys. interview.4 PROBLEM ´OUR ASSEST WALK OUT OF THE DOOR EACH EVENING. and hiring a 31 .WE HAVE TO MAKE SURE THAT THEY COME BACK THE NEXT MORNING ´ . Now think about losing them and starting the hiring and training processes anew.CH. with some India service providers experiencing up to 80% turnover. Employee recruiting and retention are big issues for IT organizations. Russia. while an April 2005 Business Week article estimated an attrition rate of 60%. Narayanamurthy Chief Mentor of Infosys High attrition destroys the value of going offshore.

new employee is about two weeks. Companies usually allot one week for programmers to become familiar with the new business, two more weeks for technical training, and one last week for customer training. Now imagine a 25% attrition rate and replacing 25 of these programmers each year. Based on a yearly salary of $15,000 for the human resource person and $25,000 for the programmer, we estimate that it would cost an additional $63,000 annually in acquisition and employee training costs. After considering these figures, it quickly becomes apparent why companies are investing in strategies to prevent attrition. Implementing the seven strategies that follow will help IT managers retain valuable offshore employees longer. While we primarily cite examples taken from India, the basic principles apply to other offshore destinations as well. First we have to identify the reasons for why an employee leaves an organization. A talented HR Manager can identify the reason and can plan retention strategy. Reasons why an employee leaves an organization  Because of BOSS (50% Main Reason)  Monetary factors  Lack of good working condition  No Flexible work schedules  Lack of respect  Very Few Supportive colleagues  Organization is more concern toward business  Increase in favoritisms  Employee needs pride in where they work & what they do  Lack of appreciation and challenges in job  The job or workplace was not as expected  The Mismatch between Job and Person  Too Little Coaching and Feedback  Lack of support

32

 Stress from Overwork and Work-Life Imbalance  Loss of Trust and Confidence in Senior Leaders  Less frequency in giving rewards Effect on Organization if it·s Employee Leave  Loss of productivity  Replacing qualified employees  Poor retention creates a ´revolving doorµ culture within the organization lowering morale and confidence.  Cost of overtime or temporary help  Recruiting costs  Interviewing costs  Time spent in orientation

33

CH.I - INTRODUCTION
1.5 OBJECTIVES

1.5 OBJECTIVES 
To study the existing trend, extent and impact of employee turnover.  To analyze the causes for employee Attrition.  To suggest measures to check employee turnover. One of the greatest challenges organizations face today is retaining valued staff. This is especially true in high-technology fields. influencing? Primary:        

What are the major factors

Comprehensive approach factors:

Compensation benefits Employee Development and Training Organizational Identity and prestige Organizational distinctiveness Teamwork vs. internal competition Work schedules Management style Communication & Facilities Analysis to each unique enterprise, using a combination of

Secondary: -

individual interviews, focus groups, surveys, statistical analysis and benchmarking. Inferences from EXIT INTERVIEWS shows that, 
 

Opportunity for growth & development (Time-bound & unstructured) Compensation package (Considered to be below industry standards) Boss-subordinate relationship (Arising out of cultural differences and inadequate orientation) Empowerment ² as important causes for employee turnover. 

34

we are able to gauge the unique experience that an employer has been able to provide to his talent force. post analysis. This practice is derived from the identification of predictive attrition areas. and then. which not only acts as a powerful retention management tool. which help organizations in identifying probable areas of attrition Identify "probable areas of attrition" and "current Retention Practicesµ Segmentation models help developing "Industry wise Benchmarkingµ Employer Experience Score Employer Experience Score is an index that measures the "embedded cultural commitment" of an organization towards "building the talent" of the organization. predict employee behavior.The Attrition Study enables organizations in building     Predictive Retention Practices Employer Experience Score Benchmarking Strong Employers Predictive Retention Practices This analytics based study would focus to first understand. but also becomes equally important for acquiring the right talent for the organization 35 . The experience score is anchored on four predictors:     Affiliation Development Initiatives Employability and Our Work Environment Through this score.

Benchmarking India Attrition Study data will not only help in developing an organizational and industry wise best practices report. thus increasing the "Association" and "Affiliation" with the organization.   Organizational and Industry wise best practices Enable Organizations determine strengths and weaknesses of their People Processes Strong Employers Strong Employers is a unique way to recognize the accomplishments of organizations who have successfully implemented practices that build a strong connect with the employees. but also have successfully deployed employee "Predictive Retention Practices"   Organizations with high experience score Recognize Industry Leaders 36 . set up short-term and long-term targets and develop their action plan. but also help in identifying the "Employer Experience Score". This will enable organizations in determining the strengths and weaknesses of their HR. These would be companies who have a comparatively higher "Employee Experience Score" and have not only successfully developed.

efficient.CH. The design used for the dissertation is a ´DESCRIPTIVE RESEARCH DESIGNµ.INTRODUCTION 1. It also includes attempts by the research to discover causes behind the figures. It constitutes the blue print for the collection measurement and analysis of data.6 PROCEDURE ² METHODOLOGY 1. In this design there is a possibility of maximum bias and minimum reliability of data collected. The Flow of events are enumerated below: Defining Goals and Objectives Design Methodology Develop Instruments Select Sampling Design Conduct Research Analyze Data Present Finding and Recommendation 37 .6 PROCEDURE ² METHODOLOGY Research Design is the conceptual structure within which the research is conducted.I . appropriate. A good design is often categorized as flexible. economical etc.

a) Design : Descriptive design i) Direct Interview ii) Company Records Quantitative Structured Questionnaire containing 26 Questions under the following sub sections namely:          b) Data Collection : c) Research Type : d) Sampling : Orientation Interpersonal Relationship Superior ² Subordinate Relationship Problem Management Communication Skills Decision Making Risk Taking Innovation / Change Conflict Management 200 samples e) Sample size f) Tools & Techniques: :     Chi ² Square Analysis SWOT Analysis Ranking Average Method Trend Analysis 38 .

Primary data are those which are collected a fresh and for the first time and thus happens to be original in character. Hence for a meaningful and comprehensive study. 39 . before data collection the researcher has to decide the nature of data he wants to collect. The questionnaire was the primary tool and it was backed by the personal interview. The secondary data are those which have already been collected and processed through statistical process.g) Limitations of the study: The study has got its own Limitations. The survey method was a convenience survey method and it has got its own limitations. data is of two types· Primary data and Secondary data. Both ¶questionnaire method· and ¶personal interview method· were used to collect the data. this combination of methods was considered necessary. Due to the length of questionnaire very few respondent could answer the question genuinely. So.   Method Of Data Collection Basically. The sample respondents may not be true representation of the total population. This technique was adopted as the study required the use of a number of open-ended questions and the questionnaire method does not warrant too many of them.    There can be errors due to bias of respondents It was observed that some of the respondents were reluctant in answering to some questions.

2 . On the other hand.ANALYSIS 2. Suppose one has 'N' number of observation classified according to some attributes. The Greek letter "X" was first used by Karl Pearson in the year 1990. It may be asked whether the attributes are related or independent. The quantity Chi-square describes the magnitude of the discrepancy between the theory and observation. In order to test whether or not the attributes are associated. it can be inferred that the results do not support the hypothesis or in other words.1 ANALYSIS OF THE METHODOLOGY CHAPTER 2 ANALYSIS 2. one takes the Null hypothesis that there is no association in the attributes under the study or. in other words the two attributes are independent.1 ANALYSIS OF THE METHODOLOGY CHI ² SQUARE ANALYSIS: The chi-square test is one of the simplest and most widely used non-parametric tests in statistical works. If the calculated value of chi-square is less than the table value at a certain level of significance (generally 5%). With the help of chi-square test one can find out whether two or more attributes are associated or not. the attributes are associated. which infers that the results of the experiment provides no evidence for doubting the hypothesis. that the attributes are not associated hold good.CH. It 40 . if the calculated value of chi-square is greater than the table value at a certain level of significance. It should be noted that Chi-square is not a measure of the degree or form of relationship.

should be noted that Chi-square is not a measure of the degree or form of relationship. Cj .(Ri x Cj/ n and there are v=(r-1)(c-1) degree of freedom It tells us whether 2 principles of classification are not significantly related. Chi-Square = L (Oij . than accept Ho Rejection region R: If calculated Chi-square greater than or equal to table value of Chi-square.Eij )2i Eij Oij . than reject Ho 41 . relationship. without reference to any assumption concerning form of Acceptance region R: If calculated Chi-square lesser than or equal to table value of Chisquare.The rows and column classification are dependent Where.The rows and columns classification are independent H1 . It should be noted that Chi-square is not a measure of the degree or form of relationship. criteria of classification is summarized as follows: Ho . The procedure for finding the independence of rows and columns.Total observed number in the ith row.Total observed number in the jth column Eij .Number of sample element observed to belong to the ith row and jth column Ri .

51 27.14 1.14 1 6 2 . No .47 36.00 15. O b served F req uenc y (O ) 22 146 12 10 10 12 32 84 54 18 Exp ec ted F req uenc y (E) 17 89 48 32 14 17 89 48 32 14 (O -E) 2 4 34 X 200 400 = 17 (O -E) E 1 2 3 4 5 6 7 8 9 10 25 3249 1296 484 16 25 3249 1296 484 16 1.47 36.13 1.13 1.) = (r-1) (s-1) Where r s number of rows number of columns The number of degrees of freedom is (2-1) (5-1) = (1) (4) Expected frequency for 34 Calculation of ]2 S l.4 9 42 ©      2  # # ¥¥ ¢© ¨   $   # & ¥¥ ¢¤    #% " Str l it r r r is r   ¥¥ ¢© ¨ £ ¢¡   Str l is r   ¥¥ ¢© ¨  ¦ ¥¥ ¢¤ ¥§ ¥¦ ¥¥ ¢¤ £ ¢¡      " t l     !  ©   .CHI-SQUARE: ORIENTATION & CONFLICT r r is r Ori t ti fli t t l Null Hypothesis H0 = Attributes are Independent.51 27. Degrees of Freedom (d.f.00 15.

43 .05) for 4 degree of freedom 9.05) > tabulated ]2 We reject the null hypothesis.488 Since Calculated ]2 at 5% level (0.49 E Tabulated value of ]2 at 5% level (0.Calculated ]2 = § (O-E)2 = 162. the attributes are inter-dependent.

15 7.77 103. No.09 0.CHI-SQUARE : SUPERIOR SUB-ORDINATE RELATIONSHIP& COMMUNICATION gr 4 '5 00 ) Str gly gr @@ 8 uni ti n t l Null Hypothesis H0 = Attributes are Independent.83 (O-E) E 1 2 3 4 6 10 36 112.05 2.6 11.09 2.17 79.24 2 2 162 200 394 82 Sl.4 10.33 33.29 112.f. Degrees of Freedom (d. (O-E) 2 E ED C PA Q PA C B DD B CC P C E D BA Superi r Subr i te Rel GG F 6 3 1 00 4 ' 2 1 00 ) 0 0 00 ) ( ' C DB PI it r gr r is gr t l 6 9H 6 87 9 6 4 '5 44 .44 1.) = (r-1) (s-1) Where r s number of rows number of columns The number of degrees of freedom is (2-1) (3-1) = (1) (2) Expected frequency for 34 Calculation of ]2 Observed Frequency (O) 88 96 16 74 114 6 Expected Frequency (E) 82 106.42 1.36 23.36 23.33 0.

Calculated ]2 = § (O-E)2 = 7. the attributes are inter-dependent. 45 .991 Since Calculated ]2 at 5% level (0.05) for 4 degree of freedom 5.24 E Tabulated value of ]2 at 5% level (0.05) > tabulated ]2 We reject the null hypothesis.

the Accent and the Sonata. Hyundai Motor India limited dominates this premium sedan segment with 42% sales i.000 units a year.a union that combines Indian skill and workmanship with Korean design and technology to produce world class cars . 46 . Today Hyundai Motor India limited is poised for its next phase of growth. the Santro.SWOT ANALYSIS: The Indian passenger car market has experienced a total renovation. with nearly every automaker setting up shop in the sub continent.e. to not only put Hyundai in more Indian homes than any other carmaker. Hyundai Motor India Limited has been in the forefront of the automotive revolution sweeping the country. All of Hyundai's brands in India. and truly world class quality and after sales service. All models in the segment are priced at over 1 million rupees. The variant offered has not only provided consumers ¶choice· but also increased the marketability of the products. but also put India on the global export map.A partnership that is committed to developing the face of the Indian auto industry and its economy. have become synonymous with superior performance and reliability and have emerged as best sellers in their segments for two years in a row. 2100 units. India's premium sedan segment is only about 20 months old and is estimated at about 5. value. Hyundai Motor India limited is a fine example of Indo-Korean partnership . giving the Indian customer the power of choice.

it has introduced the latest technology in car manufacturing and style keeping other competitors at bay.000 crore turnover which is likely to increase to Rs 5. With .300 crore in the current year. while the Accent accounted for 2.551 units (including exports of 601 units). HMC's unique .000 cars mainly to the South East Asian and African markets. Santro sales accounted for 8. in a short span of 10 Years.699 units). During the last fiscal year.051 vehicles during the last fiscal year to March 2007. In 2002 HMIL clocked Rs 4. The firm recorded combined sales of 111. 47 .its Xing.strategy of introducing the latest technology in India has proved it to be the II largest Car manufacturing Company in India. a 40 per cent increase. Hyundai achieved 20. 2003. The company's total production capacity was recently increased to 350. During the last fiscal year Hyundai Motor India earned revenues of 40 billion rupees (850 million dollars). a 39 per cent growth. April'02 to March'03 Hyundai Motor India exported 8.573 units (including exports of 1.000th car on Nov 2008. which was launched on May 22. The company had received overwhelming response from customers in India and distributors in Europe for Santro Xing.00.000 cars a year.STRENGTH Unlike other competitors.

HMIL hope to export around 20. and make India as Global hub after Korea for Hyundai. The company also hopes to sell around 1.12 lakh units sold in the previous year.1000 crore by the II part of 2007. HMIL has targeted a 25 per cent market share by 2005. at present HMIL have provision for limited R&D.5 lakh unit cars a year. The company was also considering the possibility of scaling up its research and development (R&D) initiatives in India. HMIL's installed capacity stands at 3.5 lakh passenger cars in 2003-04 against 1.000 vehicles. Hyundai proposed to invest $ 180 million in India within three years to enhance its plant's annual production capacity.000 Santro to Europe this year against a total export target of 30. 48 . following which India will be the global base for sourcing the vehicle.000 cars. However.000 cars by 2005 to the Western Europe and North American markets. to 350. Their plan is to export 70. which is being increased to 5 lakh at an investment of Rs. They have enough scope for enhancing R&D activities in India.OPPORTUNITIES Hyundai of Korea is planning to shift its production base for Santro to India by the middle of this year.

Ford said it will begin making engines for the Ikon. Ford could introduce new models. 49 . boosting the share of locally made parts in the car to over 90 per cent from 75 now.THREATS General Motors Corp. at least two new cars. the Octavia from Skoda Auto and Daimler Chrysler's Mercedes Benz C-class. 17 billion building an assembly plant near Chennai. Foreseeing enormous potential in the South Asian country's car market. the world's largest auto-maker will launch two new cars in India next year (names yet to be released) to help boost its share of a market predicted to be one of the world's fastest growing this decade. factory constructed near Hyundai. In January. the Accord from Honda. the Mondeo from Ford. which will there by decrease the cost of production. GM's new model will compete with other premium sedans such as the Sonata from Hyundai. the only model it now makes in India. Renault Nissan starting to manufacture the car from the year 2007. Even 'Omni' van overcame sluggish sales and grew 13 per cent in May 2003. The first Ikons with locally made engines are expected to roll out next January. through a tie-up with Hindustan Motors Ltd. which currently operates at only 40 per cent capacity. India's largest car maker Maruti Udyog increased its market share to an impressive 60 percent in May this year after a spurt in sales of its entry level 'Maruti 800'. which GM thinks will grow by eight to nine percent annually this decade plans to launch additional vehicles in 2003. Maruti's cumulative (April-May 2003) sales jumped by 39 per cent as compared to the same period last year. or a sports utility vehicle or mini-van. including the rapidly growing hatchback segment. Ford spent Rs.

2003 launched two international two-door limited editions of its premium small car 'Zen'. Recently Tata Motors launched Rs. The company sold 4. it tends to reduce the car prizes of all other car manufacturing companies.178 units in May'03.384 units of 'Zen' in the year 2003. 1 Lakh Car ¶NANO·. 'Zen' is the highest selling premium car of Maruti. 50 . which contributed to over 11 per cent of the total sales Maruti at 39.Country's biggest carmaker Maruti Udyog Ltd on JUNE 15.

Subord. 36 38 35 41 9 26 44 5 372 53 56 27 52 45 31 39 9 38 10 6 5 7 11 5 12 28 10 0 0 0 0 2 2 3 19 10 0 0 0 0 0 0 1 5 I t rp rs S peri r S r lem anagement Communi ation Decision aking isk Taking Innovation Conflict anagement Orientation Sup.r i te el . ² ² ² ² ² ² ² 5*44 + 4*39 + 3*12 + 2*3 + 1*1 = 5*5 + 4*9 + 3*28 + 2*19 + 1*5 = 188 ` Y X ( ) ( ) W S Strongl gree gree eit er gree or Disagree ( ) Disagree ( ) Strongl Disagree ( ) R T S U T R V S b e e cbd a a b fd c c b i d hg d q r q q g bd c ba p hd e 51 .RANKING WEIGHTED AVERAGE METHOD: Overall Factors Ori t ti 162 l el ti s ip . ² 5*162 + 4*372 + 3*38 + 2*10+10= 2442 5*36 + 4*53 + 3*10 5*38 +4*56 + 3*6 5*35 + 4*27 + 3*5 5*41 + 4*52 + 3*7 5*9 + 4*45 + 3*11 + 2*2 5*26 + 4*31 + 3*5 + 2*2 = = = = = = 422 432 298 434 262 273 419 Interpersonal Reln. Communication Decision Making Risk Taking Innovation Conflict Mgmt. ² Problem Mgmt. Reln.

r blem Agree (4) 124 116 110 58 96 76 64 84 22 Neit er Agree Nor is gree ( ) 12 24 16 14 14 34 12 20 60 actors 56 4 0 2 0 0 2 8 8 38 56 68 60 86 20 42 80 8 anagement mmuni ati n Decisi n aking Risk aking Innovation Conflict anagement y 0 0 0 0 0 0 0 2 4 (2) ( ) v v x u t Dis gree Strongly Dis gree w s ‚ ƒ  ‡ …   …  € …  ˆ „ † ‰ 52 .Fact o r O r ien t a t ion C o m m un ic a t io n Su p e rio r S u b -or d ina te R eln . Int e rp e rs on a l R e la t io sh ip Inn o va tio n P ro b lem M a n a g e m en t R isk T a k in g D e c is ion M a k ing C o nf lic t M a n a g e m en t S c o re s 2 44 2 43 4 43 2 42 2 41 9 29 8 27 3 26 2 18 8 R an k I II III IV V VI V II V III IX Inference(s): Orientation tops the list of motivators followed by effect Orientation scores clearly exemplifying the communication and relationships. RANKING WEIGHTED AVERAGE METHOD: EXECUTIVES v Strongly gree ( ) Orient ti n Interpers nal Relati s ip Superi r Sub.r inate Reln. managements commitment to build nurture a working organisation.

Orientation Sup. ² Problem Mgmt. Subord. – ’ ‘ Int erpersonal e lat io s i p 81 6 81 4 57 4 51 8 51 0 “ ‘ Superio r Sub-or dina te  85 6 eln. Communication Decision Making Risk Taking Innovation Conflict Mgmt. Reln. executive correspondance is a matter of pride at HMI. 83 2 82 0 ” ” ” • ‘ 53 . ² 5*56 + 4*124 + 3*12 + 2*4 5*56 + 4*116 + 3*24 5*68 +4*110 + 3*16 + 2*2 5*60 + 4*58 + 3*14 5*86 + 4*96 + 3*14 5*20 + 4*76 + 3*34 + 2*2 5*42 + 4*64 + 3*12 + 2*8 = = = = = = = 820 816 832 574 856 510 518 814 388 Interpersonal Reln. ² ² ² ² ² ² ² 5*80 + 4*84 + 3*20 + 2*8 + 1*2 = 5*8 + 4*22 + 3*60 + 2*38 + 1*4 = Fa ct or Co m m unic t io n Or ient at ion Inno va tio n Pro blem i sk Decision Co nf lict aking Scores R an k I II III I V VI VII VIII I anagem ent a king anagem ent 38 8 Inference(s): Among Executives Communication has gained pre-dominance over relationships & Orientation.

² Problem Mgmt. Proble m M an ag emen t Commu nic ation Dec ision Ma kin g Risk Ta kin g Inn ova tion Conflict M an age men t 34 78 86 84 10 4 12 62 92 20 A gree (4 ) 14 0 10 6 11 4 44 94 10 4 52 78 18 Neither Agree Nor Disa gree ( 3) 18 20 4 8 6 14 14 26 60 Disagree (2) 10 0 0 0 0 4 4 6 30 Strongly Disagree (1) 10 0 0 0 0 0 0 0 4 Orientation Sup. MANAGEMENT F ac tors Strongly Agree (5) Orien ta tion Interpe rsona l Relatiosh ip Su perior Sub -ordin ate Reln. Communication Decision Making Risk Taking Innovation Conflict Mgmt. Reln. Subord. ² 5*34 + 4*140 + 3*18+ 2*10+10 = 814 5*78 + 4*106 + 3*20 5*86 + 4*114 + 3*4 5*84 + 4*44 + 3*8 5*104 + 4*94 + 3*6 5*12 + 4*104 + 3*14 + 2*4 5*62 + 4*52 + 3*14 + 2*4 5*92 + 4*78 + 3*26 + 2*6 = = = = = = = 874 898 620 914 526 568 862 Interpersonal Reln.RANKING WEIGHTED AVERAGE METHOD: JR. ² ² ² ² ² ² ² 5*20 + 4*18 + 3*60 + 2*30 + 1*4 = 416 54 .

² Problem Mgmt. ² ² ² e ™ ™ D e c is io n ™ P ro b le m an ag e m en t — In t e rp e rs o n a l e la t io s ip ˜ — Su p e rio r S u b . Mgmt Cadre) have also preferred effective communication followed by relationships and innovation.o r d in a t e R e l n . RANKING WEIGHTED AVERAGE METHOD: NON EXECUTIVES F a c to r s S tr o n g ly A g re e (5 ) O r ie n ta t io n In t e r p e r s o n a l R e l a t io s h ip S u p e r io r S u b .o r d in a te d — = = = = = 856 850 848 586 828 55 . Subord. 89 8 87 4 86 2 81 4 62 0 56 8 52 6 41 6 R an k I II III IV V VI V II V III I In n o va tio n O r ie n t a t io n isk a k in g a k in g an ag e m en t C o n f lic t Inference(s): The middle management (Jr. Communication ² 5*72 + 4*118 + 3*8 5*82 + 4*98 + 3*16 5*72 + 4*110 + 3*16 5*66 + 4*58 + 3*8 5*56 + 4*122 + 3*20 Interpersonal Reln. P r o b le m M a n a g e m e n t C o m m u n ic a t io n D e c is io n M a k in g R is k T a k in g In n o v a t io n C o n f li c t M a n a g e m e n t 72 82 72 66 56 20 52 90 2 A g re e (4 ) 11 8 98 11 0 58 12 2 90 68 72 16 N e ith e r A g r e e N o r D isa g re e (3) 8 16 16 8 20 16 4 28 48 D is a g re e (2 ) 0 0 0 0 0 6 0 2 46 St ro n g ly D is a g r e e (1 ) 0 0 0 0 0 0 0 3 20 Orientation Sup. Reln.Fa ctor C o m m u n ic a t io n Sco res 91 4 e ln .

Decision Making Risk Taking Innovation Conflict Mgmt. showing priority to continued training & exposure. 56 . ² ² ² ² 5*20 + 4*90 + 3*16 + 2*6 5*52 + 4*68 + 3*4 5*90 + 4*72 + 3*28 + 2*2+3 = = = 520 544 829 5*2 + 4*16 + 3*48 + 2*46 + 1*20= 330 Factor O rientation Interpersonal Relatioship Superior Sub-ordinate Reln. Innovation Com m unication Problem Managem ent Risk Taking Decision Making Conflict Managem ent Scores 856 850 848 829 828 586 544 520 330 Rank I II III IV V VI VII VIII IX Inference(s): Non Executives have ranked Orientation first followed by relationship.

57 .2 . The attrition is calculated by using the following formula in the existing system.CH.2 EXISTING SYSTEM Existing Attrition Analysis system is very simple and too short.X 100 5258 5.50 % Attrition Rate = = In the existing attrition analysis system having simple Tabular column based reports. of employees Resigned --------------------------------Total Manpower X 100 For Example: 289 -----------------. There is no graphical representation and there is no pie chart.2 EXITING SYSTEM 2. From this analysis its very tedious to take decision to retain the employees.ANALYSIS 2. Attrition Rate = No.

Designation Attrition Analysis Ratio : 58 .

Month wise . Category wise. Division wise and Location wise Attrition Ratio 59 .

% No.ANALYSIS 2. Superior Sub-ordinate Relationship ² 55%. 5.D gree isagree qq ll lo om ln ok q s mn s mo pq q lk ol q A gree o m po pm ql lo p q k s pl no u u k r km u O rientation InterPer. % No. 3. However the respondents feel the Conflict has minimal effect on attrition [Conflict ² 11% Agree & 4% Strongly Agree].2 .3. respondents agree these two parameters also have an impact in bringing down attrition. % Risk T aking Innovation No. l o q l tr gl D isagree mn o m o m q l p p p p q l p p l o D isagree q r pn pk p q pl k l q on o q o q m k q l q ol k l q . Interpersonal Relationship & Superior Sub-ordinate relationship as effective tools in bringing down the level of attrition. Communication ² 48% have been ranked by the respondents as important indicators in checking attrition. Decision Making ² 38%. % No. 2. 4. NEED FOR THE CHANGE IN SYSTEM Executive Respondents Analysis: Detail No.3 NEED FOR THE CHANGE IN SYSTEM 2. % No.Reln Sup-Sub Reln Prob M t g Co uni % Decision No. Orientation ² 62% . tr gl A gree % No. Agree ² 42%] feel that Innovation reduces employee turnover. Consolidated 1. The majority of the respondents [Strongly Agree ² 40% .CH.A . It·s also evident that the respondents have clearly correlated Orientation. Interpersonal Relationship ² 58%. % s l r pn m j pk jj on mk m kq q j ml k j ml k j t i hg f i hg f t 60 . Risk Taking ² 32% . % Conflict No.

The majority of the respondents [Strongly Agree ² 43% . % No. v 3 4 1 7 7 8 3 9 8 6 4 3 8 4 4 4 8 0 4 2 2 2 4 0 14 5 0 2 9 4 6 0 4 7 3 0 1 2 6 6 2 5 2 1 4 4 3 1 2 6 7 2 9 2 7 8 2 6 6 0 4 6 3 9 1 3 3 0 2 0 1 8 6 0 3 0 4 1 0 9 3 0 1 5 2 10 7 5 5 1 8 0 9 0 16 5 0 3 2 0 0 1 0 0 14 5 1 7 4 0 2 0 14 5 0 2 1 4 4 7 2 61 . Orientation ² 75%. Superior Sub-ordinate relationship resolves Conflict. % No. However the respondents feel the Conflict has minimal effect on attrition [Conflict ² 9% Agree & 10% Strongly Agree]. Agree ² 39%] Innovation reduces employee turnover. 2. The respondents feel that [Strongly Agree ² 46% . 7. Superior Sub-ordinate relationship.26% . helps Innovation and there by facilitates better relationships the hypothesis has been validated by the respondents figured out. Communication and Innovation as effective tools in bringing down the level of attrition. % No. Interpersonal Relationship. Communication ² 47% have been ranked by the respondents as important indicators in checking attrition. 3.A . Risk Taking : Strongly Agree ² 31% and Agree .Reln Sup-Sub Reln Prob M t gm Detail No. % Com uni m Decision Risk Taking Innovation Conflict S trongly gree A gree Consolidated N greeN isA . 5. Interpersonal Relationship ² 53%. respondents agree these two parameters also have an impact bringing down attrition. Jr. It·s also evident that the respondents have clearly correlated Orientation.6. Decision Making ² 52%. the hypothesis has been validated by the respondents figured out. % No. % No. 4. 6. % No. helps Decision Making and thereby facilitates better relationships. Agree ²57%] feel that Superior Sub-ordinate Relationship reduces employee turnover. % No.D D isagree S tronglyD isagree 1. % No. Communication resolves Conflict. Management Respondents Analysis: O rientation InterPer.

82 98 16 0 % 41 49 8 0 N o. eln up. 90 72 28 2 3 % 45 36 14 1 2 onflict % 1 8 24 23 10 { | | { z w y w y w w w x  w y w x w x  62 . However the respondents feel the Conflict has minimal effect on attrition [Conflict ² 8% Agree & 1% Strongly Agree]. Agree ² 49%] feel that Interpersonal Relationship reduces employee turnover. Decision Making ² 45%. Problem Management ² 29% have been ranked by the respondents as important indicators in checking attrition.ub eln rob gm t om uni m ecision isk aking Innovation % 26 34 2 0 N o. Risk Taking ² 34% and Innovation ² 36% respondents agree these parameters also have an impact bringing down attrition. isa ree 0 S ly isa ree tron 1. helps Better Communication. The respondents feel that [Strongly Agree ² 36% . Innovation and there by facilitates better relationships the hypothesis has been validated by the respondents figured out. 20 90 16 6 % 10 45 8 3 S ly ree tron ree onsolidated . 56 122 20 0 % 28 61 10 0 N o. 2. Superior Sub-ordinate relationship. 6. 2 16 48 46 20 etail N o. 5. N reeN isa ree 8 . The majority of the respondents [Strongly Agree ² 41% . Interpersonal relationship resolves Conflict. 4.Non Executive Respondents Analysis: ~ N o. 3. Communication and Innovation as effective tools in bringing down the level of attrition. 72 118 % 36 59 4 0 N o. 72 110 16 0 % 36 55 8 0 N o. Agree ² 55%] Superior Subordinate relationship reduces employee turnover. Interpersonal Relationship. 66 58 8 0 % 33 29 4 0 N o. 7. It·s also evident that the respondents have clearly correlated Orientation. 52 68 4 0  ~ } z O rientation Inter er. Orientation ² 59%. € { N o. Communication ² 61%.

% Conflict No. Jr. Management ² 71% and Non Executives ² 50%] M ar k eti n g & S al es Di v i s i o n (O r i en tati o n ) % % % % % % % % % % S trongly A gree A gree 77% 71% 50% 77% 71% P er c en tag e (% ) 50% 50% 25% 17% 7% 4% 0 Dis agree 7% 4% 0 0 0 0 0 0 0 E XE JE X NE X 17% 25% 50% › N A gree N Dis agree 0 0 0 S trongly Dis agree 0 0 0 Œ Š ‡ … … … Ž  Š Š… ‡ † Œ † Ž Œ gree S gl A tr ‹ ‰ … Œ ‹ ‹ ‹ ‹ ‹ ‹ ‹ ‹ ‹ ‹ ‹ ‹ ‹ ‹ … … … … ‰ † ‡ ‡ ‡ ‡ ‹ ‹ ‹ ‹ ‹ ‡ ‹ ‹  … Œ … … Œ … Š ˆ ‡  ‹ ‰  † ˆ ‹  ‹ ‰ † † ‹ ‹ ‰ † † ‰ … Š Œ … Œ … … Œ Œ Œ ˆ Ž ‡ ‰  ‰ ‰  ‹‡ ‡ ‡‰ ˆ ‹ ‡ † † ‰ ‰ ‹‰ † ‡‰ ‰ ‡ Ž Œ … Œ … Œ … Š … …  ‡‡ † †  † ‡ Ž ‡  †‡ ‰ ‹‡ ‰ †‡ † †‡ ˆ ‡  ‡ ‰ ‡ †  ›  Decision No.D gree isA D isagree S gl D tr A 1.Reln Sup-Sub Reln Prob M t g Detail No. The Marketing & Sales division stands apart [Executives ² 77%. % No. %  ‘˜ ‘™ ‘š ‘” ‘• ‘– ‘— ‘ ’ ‘ ‘“ „ ƒ‚ „ ƒ‚  63 . % Co uni No. % Risk Taking No. Orientation [Strongly Agree ² 27% & Agree ² 65%] has been accorded top priority by the respondents as a sure measure to check attrition. % No. % A gree O verall .A . % Innovation No.Overall Respondents Summary: O rientation InterPer. % No. 2.

Executives cadre feel Orientation [Agree ² 77%] in the Marketing & Sales division Orientation has checked attrition to a great extent. is ag ree is ag ree t ro n g ly 0% 0% 0% ¬ ¬ ¬© «© « « 0% 0% 0% 0% is ag ree 0% 0% ¥  ¢ ¥ § ¥ ¡Ÿ œ¡ ¦ ¡Ÿ œ ¡  Ÿ  œ ž ž ª ¤£ © ¨ 64 .ad re wise 12% 10% 8% t ro n g ly g ree g ree . An alysis : In terp erso n al 70% 60% 50% Percen tag e %) 41% 40% 30% 20% 10% 28% 39% 58% 53% 49% elatio n sh ip . isagree 11% 5% 0% 7% P curement 7% 6% 2% 0% 0% 0% 0% 0% 0% Strongly isagree 0% 0% 0% 0% 33% 67% 77% isagree 6% 2% 0% 0% ales Mktg & les 4.Agree N. g ree 0% Superior EXE Sub-ordinate Relationship Cadre12% wise analysis. Relationships [both Interpersonal Relationship & Intra Personal Relationship] have been equally rated as both the cause and check for employee turnover. 28% 58% 0% JEX 39% 41% 53% 49% 10% 8% 0% 0% EX ª .3. Executives Cadre (Orientation) 90% 80% 70% 61% 60% Percentage (%) 52% 50% 40% 40% 30% 20% 10% 0% Strongly Agree Administration Production Procurement Mktg 17% 40% 33% 17% Admi i i Agree 61% 52% 67% 77% P ducti 17% 17% 11% 5% 0% N.

Problem Management and Risk Taking though being marked as vital parameters.A g r e e N . & No n xec u ti v e c ad r e 52% 50% 45% P er c en tag e % 40% 30% 20% 10% 10% 6% 7% % 2% 3% 0% S tr o n g ly A g r e e J X N EX 6% 10% Agree 52% 45% N . ree N .ad re i se 60 50 55% 57% 55% 43% 34%36% Percen tag e % 40 30 20 10 0 % % 2% 1% Stro n ly 34 43 36 ree ree N. Interpersonal ¶ ¶ ¶ · ¹ · 0% 0% ° ¶ ¶ ¶ · ¹ ¯ » ® · ¹ º ­ ± ¶ ¶ ¶ ¼ ¾ ± ·¸ ¶ ¶ ¶ ·¸ ¶ ¶ ¶ ·¸ · ½ µ µ µ ² ² ² ² ² ² ² ´ ³ ´ ³ 0% 0% 0% is a ree 0 0 0 0% 0% 65 .An al ysi s: Su p eri o r Su b -o rd i n ate el ati o n s i p .J r . are low in terms of marketability compared to Orientation. Decision Making aids in bringing down attrition. M g 60% t. Non Executive cadre ² 45% Agree] A n al y s i s : Dec i s i o n M ak i n g . Jr. D isa g r e e 7% % D isa g r e e 2% 3% 0% 0% S tr o n g ly D isa g r e e 6. Management and Non Executive cadres have been attributed effective Decision Making as important to Orientation [Jr. 8 2 8 is a ree is a ree 1 0 0 Stro n ly E E JE 55 57 55 NE 5. Management ² 52% Agree .

A gree N . D isa g r e e 7% 10% O v e r a ll 0% 0% 0% tr o n g ly D isa g r e e 0% 0% 0% 0% Õ NEX adre Ö D isa g r e e Ù Ù 70% EXE N EX 0% Ù Ñ Ö Ð A n al y s i s : o m m u n i c ati o n v er al l v s No n E xec u ti v e c ad r e Ø × Ë Ï A gree A gree Î trongly . is agree Dis agree trongly A gree J EX A gree N . 30% 21% 2 % 32% 7% 6% 0% 4% 42% 31% 22% 26% 4% 7% 0% 2% 33% 26% 2 % 34% R is k a k ing 7. Agree ² 52%]. [Risk Taking ² 31% Agree & Problem Management ² 27% Agree] 45% 42 40% 30 30% 29 29 26 26 21 er c en tag e % 20% 15% 10% 7 0 0 0 0 EXE roblem gm t. appreciate communication where Non Executive cadre fairing better. Dis agree Dis agree Í Í Ë Í 0% trongly A gree N EX A gree N .A gree N .A g r e e N .A gree N . The majority [Strongly Agree ² 41%.Relationships & Communication. Dis agree Dis agree 4% 2% ÅÅ Å Å 5% 2 2 Å Å 4 4 4 Å Å Å 6 7 Å ÅÅ Å 25% 22 Å 31 Å Å Å Å Å Å 35% 32 33 34 Å Å Ä Ã Â À Á À Å 0% 0% ¿ A n a ly s is : r o b le g t is k a k in g Å Ê Ì É È Ç Æ Ô Ó Ò 66 . C ad r e w i s e C o m m u n i c ati o n 48 61 60% 61% 52% J EX 50% er c en tag e % 47 40% 30% 28% 41% 20% 7% 10% 10% 0% tr o n g ly A g r e e 41% 28% Agree 52% 61% N .

Cad re wise % % % 11% 1 % 4% 1% S trongl gree A gree 11% 9% 8% rcen tag e % ) 19% 1 % 1 % 1 % 1 % % 8% % % N.A gree N.8. Disagree ² 19%] An al sis : Co n flict an ag em n t . ñì ì % % ì ì 1 % 1 % 1% % % çæ ä Di 2% 2% ß 9% Ý Ý ÞÝ à çæ éê çæ ßÞ ßÞ % % % 4% Ü Ý é íë Û ë é Ú ñ è í ß ì ì ë í åä à ß àÞ ßÞ àÝ ßÝ à ß âá ïî ã ð % % gree 67 . Di 30% 30% 24% gree Di gree S trongl E XE JE X NE X 4% 10% 1% 19% 15% 23% 10% 9. Disagree 6% 10% Disagree 1% 0% S trongl Disagree 0% 0% Orientation Interpersonal Relationship Inference(s) : Orientation ² 65% Agree and Interpersonal Relationship ² 53% Agree shows that Orientations aids better Interpersonal Relationship. Structured Orientation aids better Relationships.A gree N. A n al s i s : O r i n tati o n v s In t r p er s o n al l ati o n s h i p 70% 60% 0% 6% 27% 6 % % r c en tag e % ) 40% 0% 20% 6% S trongl A gree 27% 36% A gree 65% 53% N. Respondents feel Conflict at the workplace has less bearing on employee turnover [Neither Agree Nor Disagree ² 28%.

Effective Decisions defuses Conflicts.Agree N. 0% õ õ õ õ õ 41 52 7 0 ó òò A n al y s i s : B etter C o u n i c ati o n v s In terp ers o n al R el ati o n s i p ü û ú ù ô 0% D is a g re e 0 5% 68 . Dis agree 11% 28% 45% 25% 20% 15% 10% 5% 0% Strongl Agree Dec is i n M ak ing Conflicts 11% 2% Agree 45% 9% Dis agree 2% 19% Strongl Dis agree 0% 5% 9% 5% Inference(s) : Decision Making ² 45% Agree and Conflict Management ² 9% Agree & 28% Strongly Agree shows that Effective Decisions defuses Conflicts. D is a g re e 36% 53% 10% 0% 0% Inference(s) : Better Communication ² 52% Agree and Interpersonal Relationship ² 53% Agree shows that Better Communication facilitates Good Interpersonal Relationship. Analysis : Effective ecision Making defuses o nflicts 50% 45% 40% 35% Percentage % 2 % 19% 9% 9% 5% N. ü ø 30% ÷ ö 11. A g re e N .10. 60% 52% 53% 50% P erc en tag e % 40% 30% 20% 10% 0% S t ro n g ly A g re e C o m m u n ic a t io n In t e rp e rs o n a l R e la t io n s h ip A g re e 41% 36% 7% 10% 0% 0% 0% D is a g re e S t ro n g ly N . Better Communication facilitates Good Relationship.

A n al y s i s : E xec u ti v e 60% 56% 50% 40% 30% 20% 10% 10% 6% 0% S trongl A gree E xec utive Dec is ion M ak ing S u erior S ub-ordinate Relationship 10% 38% A gree 38% 56% N. ¤  § ¦ ý ig h t D c is io n s av o id s isks 45% 1% ¥  ¤     © ¢ ¡ 11% 5% N . Dis agree 17% 6% ec i s i o n M ak i n g v s S u p er i o r S u b -o r d i n ate el ati o n s i p 3 % 3 % ¨ ¨ P er c en tag e % 17% 1% 0% 0% 0% S trongl Dis agree 0% 0% Dis agree 1% 0% Inference(s) : Executive Decision Making ² 38% Agree and Superior Sub-ordinate Relationship ² 56% Agree shows that Executive Decision Making are appreciated and followed by subordinates.12.A gree N. 13. þ ÿ þ   A n al s is : 50% 45% 40% r c en tag e % 5% 0% 26%   £ 25% 20% 15% 10% 5% 0% 9% S t ro n g l D e c is io n M a k in g R is k T a k in g A g re e A g re e 45% 31% D is a g re e 2% 2% S t ro n g l D is a g re e 11% 5% 9% 26% Inference(s) : Decision Making ² 45% Agree and Risk Taking ² 31% Agree shows that Right Decisions avoids Risks. Right Decisions avoids Risks. Executive Decisions are appreciated and followed by subordinates. A g re e N . 2% 2% 0% 0% D is a g re e 0% 0% 69 .

A g re e N .45% Agree shows that Communication effects Decision Making. Superior Subordinate Relationship ² 56% Agree shows that Problem Mgmt. Problem Management survives on good Superior-Subordinate Relationship.14. An al si s : 60% ro b l m an ag em n t vs u p eri o r u b -o rd i n at l ati o n sh i p 56% 50% rcen tag e % ) ' ' 40% ' 8% 27% 5% 0% 20% 10% 0% Strongl Agree 1 5% 6% 0% 0% Disagree 0% 0% Agree 27% 56% N. A n a l y s i s : C o m m u n i c a ti o n E ffe c ts D e c i s i o n 50% 45% 40% 35% e r c e n ta g e %    ak in g 45% 3 %  30% 25% 20% 15% 10% 5% 0% S t ro n g l A g re e A g re e 38 45 N . 15. Communication effects Decisions. 1  #& #  % %  # $  # " !  D e c is io n M a k in g 9 11 2       C om m ) 0 (  0% 0% D i s a g re e D i s a g re e 1 n ic a tio n 10 17 0% 0% 70 . D i s a g re e 17% 10% 9% 11% 1% 2% S t ro n g l 0 0 Inference(s) : Better Communication ² 38% Agree and Decision Making . Disagree 5% 6% Strongl Disagree 0% 0% Problem Management Superior Sub-ordinate Relationship 35% 38% Inference(s) : Problem Management ² 27% Agree & 35% Strongly Agree .Agree N. Survives on good Superior Sub-ordinate Relationship.

ANALYSIS 2. which provides for better understanding of research findings. The collected data are tabulated and analysed with the help of basic statistical measures. of Employees Left during the Year + Employees on Record at the end of Year] / 100 Designation wise: 71 . Interpretation thus establishes explanatory concepts.CH.4 PROPOSED SYSTEM 2. of Employees Joined during the Year + No. of Employees Left during the Year*100] / [Employees on Record at the Beginning of the Year + No. The analysed data are then interpreted by drawing inferences from the processed facts with the help of theoretical explanation. The attrition is calculated from the following formula: [No.4 PROPOSED SYSTEM Fundamental analysis is done using data collected to determine the characteristics of the sample.2 . Analysis is the computation of certain measures along with searching patterns of relationship that exist among data groups.

Executives & Non Executive cadre. Category Wise: Among the category the Executive category has the maximum Attrition followed by Jr. Engineers and Business Associates. But as per Total Manpower Production division has the maximum attrition compared with other divisions. Managers has the maximum Attrition followed by Technical Associates. Sr. Division Wise: Among the Divisions the Procurement division has the maximum Attrition followed by other division.Among the Designation the Asst. 72 . Managers.

Executives cadre has the maximum attrition compare with other categories. This could be the lack of compensation benefits. we can understand the reasons for leaving. lack of interest and too far off plant location. minimum 5 years experienced employees are leaving the company followed by 6 to 10 Years experienced employees.Experience Wise: Among the Employees. Career Opportunity: 73 . From the Exit interview Analysis.

Growth Opportunity: The growth opportunity is very slow in the present promotional process and some employees were expected the job rotation.3 Le e .4 Le e . Job Satisfaction Level (1-5) Job S i f 13% 6% 3 ion l l % Le e .1 Le e . only the 6% of relieved employees voted to the low level and maximum employees were in level three.5 5 5 4 5 4 5 4 5 4 4 35% According to job satisfaction level. Level ² 1 is low and Level ² 5 high level. 2 37 74 .2 Le e .

minimum employees are leaving the company in April compared with other months. Most of people are relieved in the May month after the compensation revision. minimum employees are leaving the company from factory compared with other locations. North Regional Office (New Delhi) has the maximum attrition level. Month Wise: Among the all months.Location Wise: Among the Locations. 75 .

The rate of attrition in Hyundai Motor India Ltd. growth and development. 4.61% in the current year. is very low right from the commencement with an average of only 3. The average attrition rate (3. Be it welfare.Findings Rate of attrition depends on the number of employees and it does not reveal the actual facts. Hyundai gives a very sound compensation package along with its excellent welfare and other benefits. 2.96% and started declining from then to reach only 0. Management initiatives centre around people. where the individual employee stands integral even to the most trivial decisions.47%. The rate of attrition was maximum in 1999 with 6. 3. Reasons for low rate of attrition: 1. the rate of attrition will be 10% where as if the same number goes out in the industry where 2000 are employed the rate will be 1 %.47%) showcauses the efforts to imbibe a sense of togetherness amongst employees. If the industry has 200 employees and 20 goes out. It is not having even a single trade union till now which shows the harmonious relation between the management and the workforce.    76 . compensation or recognition. HMI has always provided an ambience for belongingness. which is one of the reasons for the low rate of attrition.

12. Maximum attrition is recorded from the Production division which is at a very high demand in today's market. 6. 9.5. 7. 13. Orientation [Strongly Agree ² 27% & Agree ² 65%] has been accorded top priority by the respondents as a sure measure to check attrition. Number of employees are separated in less than one year indicates the reason may be due to the location of the plant and lack of interest in learning more. With the increase in the years of service the attrition number is decreasing which shows the managerial excellence of Hyundai which is providing for employees faster growth in their personal and professional career. 10. 11. which shows that professionals from Hyundai have great demand in the market. Employee commitment level is too high. 77 . Among the people who left the organisation maximum are the executives followed by junior executives. 8. Most of the employees left the organisation for better opportunities outside after equipping themselves with required knowledge by working at Hyundai. Employees are very well recognized and rewarded which makes them feel proud to be HYUNDIANS. Most of the employees are fresher who make proper utilization of the good training facilities Hyundai provides for their career development and knowledge enhancement.

Non Executive cadre ² 45% Agree] 16. Decision Making aids in bringing down attrition. Better Communication ² 52% Agree and Interpersonal Relationship ² 53% Agree shows that Better Communication facilitates Good Interpersonal Relationship.77%. Agree ² 52%]. Interpersonal Relationships & Communication. Superior Sub-ordinate Relationship ² 56% Agree shows that Problem Mgmt. The Marketing & Sales division stands apart [Executives . Disagree ² 19%] 19. 18. Jr. [Risk Taking ² 31% Agree & Problem Management ² 27% Agree] 17. Survives on good Superior Sub-ordinate Relationship. Problem Management and Risk Taking though being marked as vital parameters.  14. Relationships [both Interpersonal Relationship & Intra Personal Relationship] have been equally rated as both the cause and check for employee turnover. Management ² 71% and Non Executives ² 50%] Executives cadre feel Orientation [Agree ² 77%] in the Marketing & Sales division Orientation has checked attrition to a great extent. are low in terms of marketability compared to Orientation. Jr. appreciate communication where Non Executive cadre fairing better. Management ² 52% Agree . Respondents feel Conflict at the workplace has less bearing on employee turnover [Neither Agree Nor Disagree ² 28%. Problem Management ² 27% Agree & 35% Strongly Agree . 15. 78 . The majority [Strongly Agree ² 41%. Management and Non Executive cadres have been attributed effective Decision Making as important to Orientation [Jr.

5.Suggestions: 1. 2. Shift Timings and distance have been major concerns at the Executive Level. Effective and clear Career Progression chart to be drawn at the time of inception itself. 79 . 3. Skill development activity and job rotation/enrichment to prevent monotony and work stress. The Management may come up with flexible alternatives such as providing accommodation closer to the workplace. Retention of Talent through customised progression both in future career plans and compensation (though Attrition Rate stands at 3. Continuous motivation in the workplace through planned programs ² recreational and rewards. 4. a) Organising periodic training programs b) Encouraging learning through sponsorship and internship c) Rewarding performance immediately and appropriately through recognition awards and citation.47%). where both the individual employees as well as his superior is made aware of their roles and responsibilities.

said the "possible vulnerability" of white-collar workers should ring alarm bells for HR heads. dissatisfaction with job content. According to an Employee Vulnerable Study by NFO India. employees in the traditional sectors are most dissatisfied and would switch jobs at the first available opportunity.PRESENT CONDITIONS WITH SPECIAL REFERENCE TO THE ORGANISATION / INDUSTRY CONCERN CHAPTER 3 PRESENT CONDITIONS WITH SPECIAL REFERENCE TO THE ORGANISATION / INDUSTRY CONCERN Attrition In Manufacturing And Service Sectors : ´Attrition spreading to traditional sectors as wellµ ATTRITION is not just rampant in the BPO sector. The major pitfalls for the manufacturing sector were found to be lack of growth opportunities. Director-Corporate Services for NFO. Gautam Nath. However. 80 .CH 3 . FMCG and white-goods. employees belonging to new-age sectors such as financial services. IT and telecom seem to be relatively more satisfied. insurance and banking. Mr. public sector undertakings and services. inadequate emphasis on policies and systems and interpersonal relationships. but it is fast catching up in other traditional sectors such as manufacturing and engineering.

or customer segments. Also. The relationships. these problems particularly hurt retention among the highest value customers. Mumbai and Bangalore. began to raid the company's top talent. learning. is phenomenal.solving methods which characterized the Field Organization became highly attractive as the marketplace for such services dramatically expanded in the mid. the hidden costs incurred in attracting the right workforce and on-the-job training. It is aimed at understanding motivation levels of employees. "After all. reasons for high degree of employee turnover in certain sectors and factors that keep the interest level of employees going. if we take into account client business that goes away. and with the greatest negative impact. bolster ¶we-feeling· and compensate as per industry standards. NFO randomly polled over 200 corporate executives from some leading companies in Delhi. Nath. Frequently." added Mr. Information Technology Sector Fast Growing Hardware and Software Company Compelling Business Need: The organization began to experience heightened attrition among its sales force. Sometimes these are associated with particular products. within their aggregate attrition numbers there are hidden problem areas of attrition. 81 . Mature competitors. Nath. each time we lose a key performer. as well as start ups." said Mr. service functions.and late ¶90s."There is a crying need for companies to engage the employees' interest by creating a conducive environment for growth. technical skills. For many service sectors. and creative problem.

When attrition in one mission-critical field group hit 25%, customers began to complain the loss of continuity and talent was seriously affecting service levels. IT·s Integrated Solution: Result: One year later, attrition in the critical group had been reduced from 25% to 15% and overall attrition in the field workforce had been reduced from 18.5% to 11.7%.

Wireless Telecom Company Compelling Business Need: Telecommunications deregulation created an explosion of competition both for market share and for the engineering, IT, and customer service talent required to make growth possible. This company's business plan called for high growth rates in the face of tough competition. In addition, the organization's primary focus was metro cities, where the talent wars of multinationals made employee retention especially difficult. IT employee retention had become a particular problem, with attrition running at 32%.

IT·s Integrated Solution: Regular employee satisfaction surveys were instituted, along with a more focused Exit analysis. Departmental management teams participated together in the Retaining Top Talent
TM

workshop in order to build collective ownership for follow-up on individual

retention action plans. Result: Over 24 months, IT attrition decreased by nearly half to 17%.

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Networking Company Growing Quality Through Acquisitions Overall attrition hovered at 24% -even higher in the engineering and sales groups. Stock options were under water for many employees. 76% of those leaving were rated top performers, who often joined competitors within the first 18 months of employment. Consequently, key projects faced indeterminate delays.

HR Managers & Service Heads 1. Designed an exit data analysis methodology tailored to the company. 2. Identified the top factors contributing to attrition in the organization. 3. Consulted with an internal senior team to set retention goals and accountabilities. 4. Conducted Retaining Top TalentTM interventions by business unit, including European and Asia-Pacific operations. 5. Provided a summary of data gathered during the Retaining Top Talent intervention and recommendations for further actions to the senior team. Within 12 months, overall attrition declined to 17%. In addition, the

Result:

percentage of those leaving who were top performers fell to 57%. Key engineering product development projects were back on schedule. Financial Services Company: Call Center Operations In three of the company's hardest-hit call center operations, unwanted attrition averaged more than 75% per year in 1999. The centers employed over 3,000 employees in geographies that were rapidly becoming call center spot hot spots Almost 70% of the attrition occurred within the first 10 weeks of employment.

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IT·s Integrated Solution: In a drive to differentiate the company and become an "employer of choice" in the local labor market, all managers and supervisors in these three most challenging locations participated in Retaining Top Talent. employees. In addition, improvements were made in selection processes and in supporting new employees as they adapted to call center requirements and practices. Result: Call center non-exempt turnover for these three locations dropped from an average of75% in 1999 to an average of 49.6% in 2000. During the same year, attrition for other non-exempt employees in locations not implementing Retaining Top Talent
TM

Managers focused on the factors

within their control which could make the call center a great place to work for all

declined only 1% to 54%.

Service Sector : Hospital Attrition

DBM study of employee attrition and retention: Pharmacists, technologists/radiologists, educators/trainers, and therapists are leaving hospitals in droves. In fact, the turnover rate among these workers tops 20 percent, according to a study conducted by DBM, a global human resource consulting firm. The DBM study, "Hospital Attrition Benchmark Study 2002", was conducted with 44 medical and surgical hospitals in the U.S. to obtain voluntary attrition and retention benchmarking data for fiscal year 2001. As reported by the UPI, the extreme urgency and dramatic challenges hospitals face was also evident in a University of Pennsylvania survey showing that one in four nurses intends to quit within the next year.

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" said Joan Luciano.5 percent and the male rate was 11. The earliest large schemes were that of Wipro.7 percent. Hence the number of IT companies offering ESOP plans is still well below 50%. A large number of companies however are now realizing the potential of ESOP as an effective retention tool while making the market bears the costs.2 percent and the female rate was 24. The focus on stock plans however began in the early nineties with the growth in stock prices and the IT Industry." Other key findings of the DBM study include: The total attrition rates for male and female employees were close with an average male rate of 15. Ph.. Measures To Curb Attrition 1. author of the study. combined with an increased demand for healthcare services. It was however only since 1996 that the true value of these schemes began to be understood by both employees and companies. Employee Stock Option Plans: Employee Stock Option plans has been in existence in India for over a decade. The success of the 85 .2 percent versus a female rate of 14. "Hospitals are beginning to implement retention strategies.3 percent The lowest attrition rate in the country occurred in the Great Lakes region where the female rate was 10. but this will be an ongoing priority as the need for an adequate number of healthcare workers increases.6 percent   The highest regional attrition rate in the country occurred in the Southeast where the attrition rate for males was 28.D.  The "Hospital Attrition Benchmark Study 2002" is available from DBM's Retention Services Practice."The projected workforce shortages. Infosys and Mastek. are already at a crisis level.

The issue of dealing with complex issues such as taxation in several countries of such plans. HCL Technologies have made it possible to make total compensation inclusive of stock on par with international compensation levels. employee communication has not always been clear on this aspect resulting in disappointments. These include both stock option plans and in very few cases Employee Stock purchase 86 . Hughes. The plans increasingly therefore are beginning to capture all elements of international plans. Satyam. repatriation issues etc have been faced by companies in implementation. ESOP schemes as yet do not have any tax advantage for either the employer or employee in India. The need for addressing employee communication with more care is a learning that most companies shared. market prices being below issue prices. US practice in this respect has been a major guide especially since many Indian companies would like to register on US exchanges. that is. coverage of NRIs. The government has however in the last year clarified several key aspects of stock plans in terms of SEBI guidelines for issue and administration. Issues such as non-compete clauses have also become common as part of such schemes. The volatility in the stock markets both domestically and the inexperience with ESOP has posed many thorny issues in recent months. perceived corporate governance issues. tax clarifications and accounting guidelines.stock plans of major companies like Infosys. foreigners. Until recently most companies did not have to deal with stock plans being "under water". We have summarized the existing practices on ESOP schemes and the emerging trends. However we find that most companies find the pressure to give stocks widely due to the hype on ESOP a major issue in deciding on their approach to implementing such plans. Since compensation was seen to be clearly traded off by stock. Multinational companies have extended their international stock plans to employees.

is the growing malaise of the "rate of employee turnover". It is in this sense that it becomes an auspicious circle of 'expectations' and ¶achievements· to further ¶expectations·. But surprisingly self-esteem or "positive self regard" seems to be referred only while studying The Maslow's Hierarchy in the subject of Organizational Behavior taught in B-schools. pro-activity. This growth process results in more aggressive goals. Most stock option plans implemented in India have been "cash less" exercise plans. 2. team building. Off-late driving the "new-economy" organizations in a frenzy. openness. Reducing Attrition Through Employee Self Esteem: Literature in HR is replete with theories on motivation. which often results in more impressive achievements arising out of greater expectations out of ourselves. and leadership to name a few of the commonly spoken jargons. But what often goes unnoticed is that even Maslow himself has referred to the concept of "Self-Esteem" as an important step to achieving "Self-Actualization" without which the concept of "motivation" is not complete. towards which organization strategies seem to have converged.plans. If we do that we expect more out of ourselves. greater expectations and hence more impressive achievements. It is a process. benchmarking and career development are some other buzzwords prevalent in the field of HR. strategic collaboration. Overall multinational plans have not been as valuable as the local plans due to the higher market increases of local IT stock in recent times. Concept of Self-Esteem: "Self-Esteem" which is a positive self-regard emerges from the concept of "self' which is an important dimension of personality. It thus becomes worthwhile to have a deep look on this concept and its implications in both individual and corporate contexts. which I felt can be correlated to the presence of low self esteem. autonomy. Trust. If we start believing in whatever has been said till 87 . It means we regard ourselves highly.

parent. self-esteem can help in submitting undesirable traits into useful one. "They are able because they think they are able". gladly and zealously have made us feel like somebody . All interpersonal human behavior is sought to be explained as transactions out of these ego states of interacting individuals. 88 . According to Transactional Analysis (TA) human beings have three ego states namely.. It can lead to arrogance and therefore can result into what is known as TA parlance. adult and child. Experts have said that positive self-belief and regard seems to exert its influence by creating in others a sense of confidence and high expectations High self esteem is perhaps a common ingredient in all great personalities. somehow make us feel terrific to be around them . Thus spoke the legends« Napolean observed about his soldiers that. on the other hand if properly harnessed. and help the individual organization and society. a wrong kind of behavioral transaction. we cannot help but come to conclusions that those person we follow passionately. and it definitely has a trickle down effect on the whole society. A high self esteem or positive self regard can indeed help in reinforcing the adult state in individuals. As Freudian psychoanalysis says it can also make one rise in his "IQ" and reinforce 'superego' and 'ego'.now. But it should be mentioned here that if not properly understood and nurtured. aiming low is". excessive positive self-regard could also be dysfunctional. If degenerated high self-esteem can result in snobbish behavior. Reinforcement of the adult states can make individuals more rational and balanced in behavior leading to greater effectiveness of mutual relationships.It was not merely because they had the job (assignments) or the power«. Let's not forget the wise words "failure is not a crime.

equip the workforce better on the professional front and also increases their self-esteem.  Criteria for selecting outstanding achievers should be transparent. Others should be treated as equals. Swami Vivekananda has repeatedly emphasized the importance of self-esteem. confidence. He said " Man is the infinite dreamer dreaming finite dreams " after gauging the common man's low self-esteem during the nineteenth century when the country was still reeling under the British rule.In Indian context.ESTEEM" are also very relevant: Focus on your strengths and not on your weakness. Self Esteem and Employee Turnover As the struggle for reducing the employee attrition rates in the knowledge-based organizations intensifies. If we study the national corporate scene today. Excerpts from Jerry Minchinton's "52 WAYS OF RAISING YOUR SELF.    89 . Effective HR measures in the areas of training. we will find an increasing number of Indian organizations are constantly trying to become and project themselves as truly "world class knowledge companies" (few have already set the benchmarks) through which they are trying to constantly enhance " the self-esteem " of their employees. the rise in methods to increase the self esteem of the employees can well be the answer for HR executives all over the world. The few measures to raise the self-esteem of the employees suggested are: Recognizing the contributions of outstanding achievers will induce others to try hard. regardless of their status in the Society. career development etc. morale and motivation.

they are probably trying to impress you. are high risk takers with higher aspirations and expectations and generally have a totally different mind-set about job and careers. Kicking Retention Strategies In To High Gear: The new age economy.  Be positive. utilization. conceptualize. in terms of its acquisition.    The need of the hour is not only to enable the employees to grow in the 'learning organizations' the concept of which. who are techno savvy. Don't worry much about impressing others. Remember if you Underestimate yourself others will do the same to you. with its attendant paradigm shifts in relation to the human capital. Try to accept and appreciate yourself as you are. If you are relaxed you are more expected to come out better. With a dynamically changing and volatile demand-supply equation. are materially focused and have higher propensity to switch jobs. I fear. has placed a heavy demand on today's HR professional. 90 . Today HR is expected to comprehend. 3. innovate. all the retention policies of the organizations will meet a sorry fate. Master the art of positive thinking. development 'and retention. aware of market realities. They prefer to experiment and explore new opportunities. especially against erratic attrition trends and cutthroat competition no longer restricted to local or regional boundaries. is fast attaining celebrity status in this age of "knowledge economy" but also to take care that the employee has substantial growth in his "self-esteem" without which. a need for strategizing and putting in place a robust mechanism for attracting and retaining top talent becomes vital for the company's very survival and growth. The new age workforce comprises mostly of knowledge workers. implement and sustain relevant strategies and contribute effectively towards giving the corporation its winning edge.

This constitutes about one fifth of the total human capital at our disposal and these people obviously qualify to be the first candidates for the pink slip. We've got to protect this group from the pull of all non-retentive forces and that needs effective retention strategies that have to be kicked into high gear. This is the segment we do not want to lose. does supply really outstrip demand? Supply of what and demand of what? What kind of people get the pink slip and whom do the companies ring fence? In any organization the employees may be broadly classified into four broad categories in terms of their performance and potential. We could call this as the "talent" segment. There are people who are woefully inadequate in both dimensions.HIGH Under P O E N I A 6 6 STARS Performers (10-20 %) (15-30 %) Strugglers (5-10 %) SOLID PRO·s (50-60 %) LOW Performance HIGH Exhibit I In the current scenario. whose performance falls below their potential. The other two segments comprise of the 'solid pro's and the 'stars' who are at the higher end of the performance continuum. but contribute immensely to the company's overall performance. The former may be relatively lower in their potential as compared with the latter. which we may call 'Strugglers' and there are the 'under-performers'. 91 .

and potential compulsions. other important considerations being. marginalization. policies & processes and organizational communication. culture. the class and quality of people that work in the company. Dissatisfaction in any of these aspects causes severe cracks to appear in the bonding. deeper and diverse job expectations. Attrition and retention should be seen as reciprocal phenomena. Recruitment and needs for downsizing must also be considered in conjunction. broader. which have an inverse relationship with each other. career offerings and growth prospects. Anxieties and apprehensions arising from restructuring. need for new competencies. change of tasks and responsibilities. he would be exposed to. the challenges of the job and attractiveness of the position & designation. 92 . could be instrumental in taking decisions to leave. need for re-skilling and re-deployment. which push him away. to start one's own venture. contentment and commitment levels becomes a pre-requisite to designing and implementing any worthwhile retention strategy. change of boss. philosophy. would help. An understanding of the inherent considerations of an individual who wishes to join a company and continue to stay.Retention strategies have to be viewed holistically against the total systemic framework of talent management that encompasses the 'talent'. Other company related attributes that impact employee retention include high demand on performance. Other factors could be to explore better prospects elsewhere. the opportunities for career growth and professional development and the kind of technology. goal & role clarity. vision. Many such instruments have evolved over the years and include. The company's brand image crowns the list of the priorities for the job seeker. movements. mission. mergers and acquisitions etc. its brand equity. to take up higher studies or certain private compulsions. the 'corporation' and the 'environment'. the pay package and other pecuniary benefits. Putting in place an effective sensing mechanism to gauge comfort. power politics. From the company's perspective. values and ecology have a direct bearing on talent attraction and retention.

whether used singly or in combination the success depends on collection and collation of unbiased responses. caring nurturing     open forums one-to-one sessions exit interviews ex-employee interviews rape vines informal social interactions 93 . astute leadership within the organization. empowerment. lure of lucre and poaching would be debilitating. unrealistic deadlines. control. While on the one hand. rigid power structure. knee-jerk changes. their effective analysis and drawing sound inferences. a compelling brand image. recognition etc would exert a positive influence on the subject talent. credibility . unexciting and drab jobs. 8 A A 7 9 9 9 Enduring ulture Environment . responsiveness and creative policies on compensation. compliance.trusting. cataloguing of direct and proximate clues. an enduring culture and an environment that is trusting. In order to appreciate the push and pull effect on the individual in the context of attrition and retention a qualitative force field listing may be helpful. transparency.THE RELEVANT FORCE FIELD  employee satisfaction surveys ATTRITIVE RETENTIVE ompliance ontrol @ 9 Brand image alented op 7 7  or anization climate audits Rigid Po er Knee-Jerk Unexciting Job Unjust iscriminatio n Unrealistic eadlines Lure of Lucre Poac ing C B B redibility ransparency @ Empo erment esponsivenes   s ecognition ompensation Exhibit II Whatever may be the instrument. on the other hand. caring and nurturing. unjust discrimination.

Those who can attract the best college graduates and excel at early development. Other sources could be from project trainees and interns. The first step for individual companies is to develop detailed profiles of the kind of people they are after by analyzing the job profiles. so they will tend to get talent in from the outside. with the desired loyalty and sense of belonging that goes a long way in restricting attrition in the long run. A judicious mix of campus hires and lateral hires often works. there are a number of routes we can take. which in fact include sourcing. have fewer opportunities to develop people through rotation. One should continuously 94 . An effective selection process ensures the entry of the right kind of people into the organization. Talent winners recruit continuously rather than strictly on as required basis just to fill up vacancies. While in the first case one gets ready -made talent and benefits from their instant utilization. Once we know what we are looking for. instead. For example. But while each company will gravitate naturally toward a dominant sourcing method. which is fine if acquisitions are an intrinsic part of corporate strategy. Retention strategies should not be orchestrated in isolation but must form part of the overall strategies for strengthening the pull on the talent.The retention strategies should be designed such that the retentive forces are maximized and the debilitating forces minimized. background and experience of their current high performers. Some strategies will be more effective for some companies than others. Some "outsource" by picking up people they believe are better trained elsewhere. "insource". Some get what they need largely through acquisitions. personality and commitment. career paths. companies having a slower growth rate. no company should rely exclusively on one strategy. one can shape the raw talent in the mould of one's unique culture and work ethos. in the latter instance. staffing and development strategies in addition. from business associates on contract or even through retainership of freelancers. A robust sourcing strategy is crucial to the exercise since the type of people one selects should not only fit into the job in terms of skill set but should match the company culture in terms of attitude.

evolutionary and slow process. way to accommodate rapid growth especially at middle or senior level. suggests that creating a winning value proposition means tailoring a company's 'brand' and 'products· . Similarly it is a conventional approach to view manpower needs as a derivative of the business needs. Fitting a talent to the job is traditional but there may be a need to design a job around the talent as the nucleus. Once we are clear about the talent segment that we wish to attract and retain. It also means paying what it takes to attract and retain strong performer the 'price'. But when it comes to rare talent. Although the dominant strategy could be to spot talent early and develop it within. refresh the gene pool and calibrate the internal talent standard. Well -articulated strategies in the context of sourcing and development augment the retention strategies in crafting a powerful employee value proposition that remains central to the problem of attraction and retention of top talent. ¶Why would a talented person want to work here?' Organizations with superior employee value propositions have a compelling answer to this question. Aggressive development strategies complement the retention strategies in a big way. Providing opportunities to the employee for both professional and career growth and giving the due priority to this important activity makes the company's position in the market for talent attractive and compelling. since it is a continuous.scan the environment and bring in the talent whenever one finds it. At the heart of the matter remains a basic question.the jobs it has to offer -to appeal to the specific people it wants to find and keep. Talent scouting in fact could be a constant sourcing activity. it may be worthwhile to build and articulate one' business around the talent at one's disposal. No brand can be transformed over night. regular lateral hires is a good. But 95 . namely. Looking at the retention problems against the perspective of enduring employee value propositions about these three dimensions. we would have to ensure that our brand is tailored to that segment. A McKinsey study (1998) that studied 77 companies from a variety of industries to investigate talent problems.

there may be a need for some companies that have deep rooted beliefs. exciting job challenge. respect for lifestyle and acceptable pace and stress. In order of priority these are. to review their traditional image and perhaps shed it off in preference to a contemporary. 96 .  values and culture  quality of management  exciting challenges  strong performance  industry leadership  talent of existing people  development opportunities  inspiring mission  enjoyable work atmosphere and  job security The attributes that were identified in the context of 'product' -'great jobs' include freedom and autonomy.' determinant but it does matter. the brand would automatically take care of itself because the top talents joining the company for the great jobs. Money alone cannot make a great employee value proposition. high total pay packages. money may not be the prime an employee would love doing. This is intrinsically linked with its business and the products it offers: the jobs. that qualifies the company as a 'great company' several components contribute. but it can break one. career advancement and growth and fit with the boss. Under the dimension of compensation and lifestyle. the determinants identified include differentiated compensation. The objective should be to make it a compelling place for employees. A rule of thumb: ' A great job is that which consists of at least 80% of things that As for the 'price'. customers and investors. geographic location. With 'great jobs'. which have not kept pace with time. mind-sets and culture. more vibrant disposition. would reinforce the values that the company is seeking to build. To the brand dimension.

as well as status symbols such as cars. Other concrete manifestation of culture are found in commonly used language and jargon. the clothing people wear. brochures. First of all let us dwell upon the cultural aspects as relevant to the issues under consideration. collaboration and 97 . impact (a big fish in a small pond). reward and even equity ownership has to be countered with a stronger proposition bolstered by the formers magnitude of impact (big fish in a big pool). The lure of the latter in terms of excitement. An outsider can often spot these artifacts easily upon entering an organization.The ability to define. transformational and transactional. Some of the most visible expressions include the architecture and decor. distinctive and exciting employee value proposition. window offices. and of course value statements and priorities. titles. enthusiasm. develop and deliver a winning employee value proposition should be at the core of all retention strategies particularly for large companies facing challenges from a multitude of smaller companies as employers. energy. however. act and feel. It drives the organization and its actions. and it is never static. logos. emotion. All retention strategies must be built around a compelling. The hard For insiders. Culture is somewhat like "the operating system" of the organization. Essentially organizational culture is seen in two broad dimensions. For the sake of clarity we may envisage these strategies in three distinct yet overlapping domains: cultural. depth (vast resources to take risks and to support big decisions) and variety (large spectrum of expertise and experience to be shared). the organizational processes and structures. and the rituals. dimensions relate to the functional. symbols and celebrations. these artifacts have often become part of the background. company slogans. flexibility. Some aspects of culture are visible and tangible and others are intangible and unconscious. while the soft aspects deal with inspiration. technical and control aspects. It guides how employees think. It is dynamic and fluid.

Although technology based defenses against an aggressive e-recruiter like various e-security mechanisms work for some time. settling down. trusting.camaraderie. openness. contribution. A culture that is open. Anti poaching measures may also find their place in this category. sense of belonging. growth. maturity and rise to top levels. form the transactional strategies. the real potent measures are inherent in enhanced job satisfaction and strengthened relationships within the organization. various welfare initiatives. starting from recruitment till superannuation through phases of induction. etc. social & community activities. nurturing. If one examines the entire life cycle of an employee within an organization. Transformational strategies that impact retention in good measure Encompass Mentoring Coaching Counseling Competency Performance development programmes Retraining Re-skilling Redeployment Job rotation Challenging assignments Job enrichment Knowledge building Knowledge sharing culture               Innovative. reward & recognition. etc. establishment of good communication & feedback network. effective work-life integration. the retention strategies have to 98 . workload balancing. dynamic and competitive compensation strategies. authentic as well as empowering tends to attract and retain top talent.

While transformational strategies like mentoring. settling down and growth phases. The target group. however. training. the first step should be to understand the scope of the retention problem that is unique to one's organization. should be predominantly successful for senior positions. The ability to identify good performers. retention works best. who are prone to leave for any job or management. Creating and delivering a great employee value proposition is clearly the best way to retain the people. A sound sensing and tracking system to assess the volume and causes of attrition by performance level could be useful. etc. are over pervasive across all phases. 99 . are prone to more risk of poaching. investing in work place infrastructure. instituting effective reward and recognition programmes. should be identified and the strategies are directed appropriately. coaching. related issues and timely intervention to address these issues. fulfilling the higher order needs. when the organization is successfully able to convey the message that it cares for employees.be selectively and appropriately applied to the phase to which the employee belongs. could be effective. In order to be able to orchestrate and implement effective retention strategies. building an effective learning framework. offering great jobs and career opportunities. which invest heavily in recruitment and development and make a good job at that. tailored to the talent segment that one seeks to attract and retain. etc. It is a paradox that the companies. ego gratification. putting in place innovative compensation schemes. which is crucial to the company's operations and success. are eminently suitable for people in induction. Cultural strategies. This would encompass building and sustaining a compelling brand image with an appealing culture and inspiring values. But most importantly. moving on poor performers.

CH. Most leaving employees seek opportunities that allow them to use and develop their skills. CONCLUSION AND SUGGESIONS 4. Managerial staff cite "career growth" and "leadership" as the major factors that influence attrition and retention.1 SUMMARY OF THE SYSTEM CHAPTER 4 SUMMARY. According to a study by Ipsos²Reid . In today's taxing business climate." "company direction" and "interesting work" Clerical employees voice concerns such as "type of work. 30% of employees plan to change jobs in the next two years. They often indicate that they want to use their qualities and skills in challenging teamwork led by capable leaders. managing company's competent and skilled human capital is vital for success. This however is no longer helpful in solving the problem as the skilled work force has many opportunities which masses of them give predilection to. Is your approach to recruiting and retention aligned with your company's strategic goals? This article explores the prime factors for employee attrition and some retention strategies and processes that will help drive long-term tangible business benefits.1 SUMMARY OF THE SYSTEM Employee attrition is a costly dilemma for all organizations. CONCLUSION AND SUGGESTION 4. Companies usually turn to increasing the compensation for employees to retain them." "use of skills and abilities" and "opportunity to learn" Hourly employees 100 . together with "opportunities for management" "ability of top management" "use of skills and abilities" and "work / family balance" Professional employees cite concerns about "supervisory coaching and counseling. Leaving employees want more meaning in their work meaning challenging the challenges.3 ² SUMMARY.

It can only be influenced to keep it in control. ‡ Employees between 2 to 5 years of service and more than 10 years of service have higher dissatisfaction levels than those with less than 2 years of service. job dissatisfaction levels are high at all facilities. opportunities for advancement. Outsourcing higher end responsibilities that offers challenging tasks to the employees goes a long way in helping. and expressed a desire to see administrative staff make a visit the facilities during second and third shifts.notice whether they are treated with respect. ‡ Pay. ‡ When asked what incentives motivated them. their "management ability" and "interesting work" Employee attrition rate can be never being entirely eradicated. Some expressed the perception that inmates have a voice in the system but the staff does not. in all job classifications and among both new and lateral recruits. The results were: ‡ Overall. mandatory overtime. and benefits were most frequently cited as issues the key performer's wanted to change about their jobs. pay and benefits was not frequently cited but majority of the respondents said that the liking for their work and the interest. designation levels. ‡ They wanted a forum for sharing their ideas for system improvement. The Exit Interviews for key performers of the organization were Analysed through language processing tools. ‡ Respondents also frequently cited communication as a significant factor. Many key employees expressed a desire for more two-way flow of information and a voice in decision-making. work schedule. 101 . The business model on which a subsidiary operation runs is significant in achieving this.

Several employees expressed a sense that their work is not valued. there was considerable variability among facilities in terms of the issues that were cited as contributing to job dissatisfaction. The phrase ´good old boy systemµ came up in several narrative responses. ‡ Though job dissatisfaction seems to be the norm. especially compensation.‡ Perceived lack of recognition was also cited as a contributor to low job satisfaction. Other workplace climate issues that were often cited as contributing to poor performance were lack of teamwork. Some respondents described a climate where bad performance was recognized but good performance was not. back biting and favoritism. nor is it considered a skilled role. 102 .

2 SCOPE OF THE SYSTEM 4. communicate.4 ² SUMMARY. hire.2 SCOPE OF THE SYSTEM Why do they come«? Pay. reward and make people feel significant. benefits. nature of work. appreciation Trust Factor. location. ´A strong retention strategy becomes a powerful recruitment tool! ´ Retention Factors: 103 .Values/ethics are a good fit Listening Factor. recognition. Why do they stay? Retention ( or the Opposite ) Confidence strategies Emotional Factor. recognize. job security. include.Are they heard and valued? Factor-they believe in potential success/leadership  Retention Strategies are now recognized as mandatory in many industries Leadership is critical! "Best Practices" Does Senior Management . CONCLUSION AND SUGGESTION 4. manage.(Huge) contribution. personal/family time.promises/commitments kept (strong link to loyalty) Fit Factor.support (with skill).CH.2 ways. advancement possibilities.

growth and satisfaction. supportive accountability (Culture is made up of: Organizational Values. positive way with less sabotage. Open Communication: Internal listening is a priority. Create partnerships: Squash status barriers/Open the books/pay for performance (not titles). resistance.Fun 2. rewards & recognition. multiple lines of This is essential for managing change in a communication (various channels).Compensation & Benefits (Money can not be ignored!). reduce bureaucracy and challenge the "status quo". 4. stagnate. Drive Learning: "Guarantee Employability". well defined jobs. Does ´Cultureµ Support: innovation-risk taking (freedom from fears to try new innovative approaches . what is acceptable (and what is not.without Put Downs) encourage creativity. how we define ourselves. Capture the Hearts of your workforce with: Compelling vision/Balance/Celebration. share the "bad" times the "good" times. Breathe life into your organization. Emancipate Action: Freedom to Fail. and fear. how we interact. strong in communication. 3. For additional information on retention or copies of the executive summaries on Hiring Winners or Keys to Retention based on information gathered from executive 104 Do not let your employees Loyalty comes from trusting your employees to develop their skills for the good of the company and for their needs for personal . "Well trained" management/leaders.)) Getting employees to ´fall in loveµ with your company: 1. 5. Encourage Life Long Learning (Train outside of job description). Clear business goals (where do I fit in). anger.

John works with executive management teams to leverage their strengths and create superior performance. and trainer. WHAT IS AN EXIT INTERVIEW? In human resource terms. Some of the methods include: in-person. How are Exit Interviews conducted? The exit interview may be conducted through a variety of methods. an exit interview is a survey that is conducted with an employee when he or she leaves the company. John Mason. exit interview management system.com Dr. what they liked about their employment and what areas of the company need improvement. He is the best selling author of Guide to Stress Reduction and Stress Passages: Surviving Life's Transitions Gracefully. consultant. As art Executive Coach.D. at the Stress Education Center -Dstress.interviews. contact L. 105 . and through the Internet such as with Nobscot's Web Exit. over the telephone. The information from each exit interview is used to provide feedback on why employees are leaving. Exit interviews are most effective when the data is compiled and tracked over time. on paper. L. Ph.com (707) 795-2228 or mason@dstress. John Mason co-founded the Stress Education Center in 1978.

What is the best way to process an employee's exit? HR always recommends an exit interview. most resignation state personal reasons or better prospects. The process is predictably simple while most people think it's a big waste of time. The information gathered in this process could guide corporate management in making changes that will reduce future turnover. If a person resigns. you already know why he is leaving.Why Exit Interviews are essential? ´The real value of an exit interview is in the information one can obtain to protect the company and save a lot of time. he will be angry and won't tell anything useful anyway. can often accomplish effective and productive exit interviews. If one is being discharged. An employee's real reasons for leaving can be revealed in exit interviews. Why bother then? 106 . An experienced third party. Understanding why your employees leave is almost as important as understanding why they stay.writes E J Sarma. Interviews that are conducted by the human resources department or other company employees at time of resignation may or may not produce accurate and legitimate answers. They may not want to offend the management at that sensitive time of saying good-bye. trouble and expenses laterµ . a consultant or firm that specializes in conducting these sensitive interviews and collecting a wealth of invaluable inputs. as well as potentially solve other problems in the organization. But mostly the stated reasons are far from true. Some would say it is even more important. Most departing employees are reluctant to reveal important demotivators because they do not want to bum their bridges.

you'll want to do damage control as much as possible. but when tactfully handled can reveal the real reasons in an exit interview. etc. an exit interview provides an opportunity to get needed information (like where to send the employee's settlement cheque. An employee who is discharged may not be happy about it. but the real value of an exit interview is in the information one can obtain to protect the company and save a lot of time. Recently. or be discharged for a reason. a very senior executive told me that he is quitting because he is pretty annoyed with the CEO's arrogance and style. improper grades. recently when I had handled an exit interview. salvage some credibility. Administrative details are important. TDS certificate. Depressed and victimized they felt more angry and vengeful for the simple reason that the HR was even forcing the person to interview candidates on the very morning when he was told to go. If it's a discharge. But there's usually plenty of truth to be learned as well. the wrong people are being hired. and his or her comments will have a negative slant. two people who were asked to go within two months of joining told me how brutal the HR general manager was in handling the exits. For example. whatever is the reason for their exit.There are a lot of good reasons to bother-administration. exit interviews provide information about overall management style of the company. thus. clear up any outstanding issues like expense advances and deliver required information. like lack of benefits or low pay or even unsatisfactory designations. Some thoughts about how you say good-bye to employees. retrieve company property (keys. laptops. Reasons for voluntarily separation may be valid.. Consistently high turnover in certain positions can be an indicator that the job or the work is not defined properly. mobile. From an administrative standpoint alone. In one case we had observed that one department had a high turnover and exit interviews reflected problem areas like partisan attitude of the supervisor. etc. it is not uncommon for an employee to resign. protection and good management practice are among them. For instance. 107 . trouble and expense later. swipe cards credit cards.). In a broader perspective.

have come quite often when I had handled exit interviews. exit practices can be constructive. direct terms and discuss under what circumstances the decision has been made or try and figure out what triggered the decision to quit. Conduct the exit meeting as privately as possible. Without a debate on the merits. Exit is just as important as the procedures one uses while hiring. Handled in a professional way. Any company management that is honest with itself will use these responses to look into the claims and make corrections where the allegations are found or known to be true. HR has to make sure that the employee leaves without any incident. While handling exit interviews handle the employee in simple. "poor communications". gather all required information and record and do paperwork and handle the exit with the final settlement check. so that whatever suspicion the person has is nullified. It is invariable that something snapped inside. Taking a more positive view of the exit-this is also the time when many employees are willing to point at deficiencies in the company.. comments such as. Whether the separation is voluntary or not. "poor management or supervision". someone who can handle the person at times of emotional disturbance is only the HR person. useful and improve your work environment and above all add to retention. 108 . etc. "complete lack of supervision and support". Exit interview and counseling can avoid much of unpleasantness.Treating people as human as possible is a good management practice and that dictates he or she be treated with professional courtesy and respect.

Pros and Cons of each method of Exit Interviewing: In-Person Exit Interviews With in-person exit interviews. HR representative meets individually with each terminating employee. Pros    Can probe for more information on each exit interview question Can enter data into a tracking system while conducting the exit interview Easier to schedule than in-person exit interviews 109 . it may be too time consuming to exit interview every employee. Pros  Can provide information regarding benefits and retrieve company property during the exit interview   Gives a personal touch to each employee Can probe for more infom1ation on each exit interview question Cons  Employees may be afraid to share sensitive or negative information during an in. Telephone Exit Interviews Telephone Exit Interviews are conducted over the telephone by a HR Representative or an outside third party consultant. For larger companies.person exit interview.   It's difficult to track information received verbally during an exit interview.

Cons    Time consuming if done in-house by an HR Representative Expensive if done with an outside consultant Employees often reluctant to verbally share sensitive or negative information Paper and Pencil Exit Interviews Paper and Pencil Exit Interviews are usually conducted by a form that is given to the employee on their last day or mailed to the employee's home. Pros  Takes less time to provide an exit interview form compared with conducting an in person or phone exit interview  Employees can share information on paper that they may be reluctant to say In person Cons   Return rates for Exit Interview Forms average just 30-35% Difficult and time consuming to compile and track the data from paper and pencil exit interviews Online Exit Interview Management Systems Pros   Employee self -service so easy for HR to administer Employees comfortable sharing information by computer so more honest responses Information automatically compiles and tracked Reports available at a click of a button   Participation rates (for Web Exit customers) double that for paper and pencil exit interviews 110 .

This difficulty the urgency in which a company must act on the feedback provided in the exit interview.Exit Interviews conducted by over 90% of companies According to a study by the Society of Human Resource Management. Post Employment Exit Interviews One of the newest fads is conducting the exit interview after the employee has been gone from the company for 3 or 6 months. over 90% of companies conduct exit interviews. With exit interviews. this theory has yet to hold up. The theory behind this exit interview strategy is that employee will have a better perspective on things once he or she has had a chance to reflect on hi-s or her employment. In research that Nobscot has conducted. Once you provide employees the opportunity to tell you where the problems are. With employee surveys. Therefore. it's imperative to act on the results of the employee satisfaction surveys as quickly as possible. the employee is expected to provide more valuable information in an exit interview if it is held six months after employment. Additionally. it's difficult and time consuming to reach employees this far after employment has discontinued. you have a greater opportunity to review the data and look for trends over time. Exit Interviews Vs Employee Satisfaction Surveys One of the benefits of exit interviews over employee satisfaction surveys is that exit interviews are conducted when an employee is leaving. they expect immediate action on those problems. The majority of companies that have tried these kinds of PostEmployment exit interviews found that the results were similar to the exit interviews conducted immediately upon termination. Employers can take action on problem areas as they see fit without causing further concern among employees. 111 . Exit interviews are one of the most widely used methods of gathering employee feedback.

learn how to get the information that you need. but with a grain of salt. the compensation. benefits. Make action plans to verify serious issues. that's a red. Don't allow one negative employee to disrupt your whole organization. 2.flag to start exit interviewing ALL departing employees from that area. How to conduct In-Person Exit Interviews 1. Many employees are never thanked. Conduct exit interviews for areas/departments where you "smell" trouble. you can expect to get the most valuable information by conducting the exit interview a few days before or after an employee leaves the company. Have questions pre-planned. Share the information tactfully with Supervisors. (You may want to even interview non-departing employees as well). and send them on their way. The employee's employment experiences are fresh in his or her mind and the employee is usually happy to express their final thoughts before leaving the company. Just like an employment interview. 4. Don't let the ex-employee go on and on and on. The exit interview should take 1520 minutes. Look for patterns in exit interview responses. chances are slim that the exiting employee will speak up on any important issues. You should have a standard list of questions that you ask on each exit interview. The goal is to get honest communication. It means a lot. Have exit interviews done by a third party (HR or other) and not with the supervisor in attendance. Work on improving the negatives. With the Supervisor in attendance. Find out what they liked best and least. One small step that you can make on behalf of your company is to think them for what they have done during their employment.Generally. how they would rate their supervisor. 6. 112 . Thank them for their service. You don't get any more info by hearing the employee whine about every last detail. 5. 3. Give them the opportunity to offer suggestions for improvement. Take information received seriously. If there happens to be a lot of turnover in one area. The plusses AND the minuses. etc.

Turnover Prediction Mapping You don·t have to have a crystal ball to predict future turnover. Use the average ratings for all of the employees who have completed the exit interview thus far and the average rating of all the employees who have completed the satisfaction survey. The questions should cover all areas including Environment. mayor may not cause turnover in your company. Before you can begin to identify your turnover stimulators. Go through each question one-by-one and look for areas where the average rating on the exits is significantly less than the average ratings on the surveys. you can create a customized map that tells you exactly which areas within your organization can expect future turnover and what the cause of that turnover will be. 113 . Be sure to keep your rating system consistent so that one side of the scale is always the favorable side and the other side is the unfavorable side. Coordinating Your Surveys and Exits The first step is identifying what items cause turnover for your organization. etc. you need to coordinate your employee survey process with your exit interview process. the Company. Turnover is unique to each organization so items that may cause turnover in one company. Once you have a sufficient number of completed surveys and exit interviews you can begin the analysis process. location and job classification. Compensation. The questions should be quantifiable by having employees rate the items on a numerical scale (Ex. Identifying Turnover Stimulators Identifying turnover stimulators is a simple matter of comparing your exit interview results to your employee survey results. Management. Tag these questions as Turnover Stimulators. If you conduct both employee satisfaction surveys and exit interviews. Have employees provide demographic information such as department. You'll need a consistent set of questions that will be asked in both surveys and exits. 1-5).

CH. growth. The third was the opportunity for. benefits and stock options) was the most frequently mentioned aspect of the retention programs.SUMMARY. and the trust existing between people in the organization. 2. both in the tone they set by example and in their communication to the organization as a whole.3 SUGGESTIONS 4. including mentoring was the next element of importance  Four elements tied for the third most-often noted aspect of a future or planned retention program: Work environment issues Including job customization Flexibility and Team building 114 . Second was the executive/management team. both through the challenge of work assignments and individual development. ASSUMPTIONS: Money (including compensation. FUTURE RETENTION PROGRAMS AND PROGRAMS IN DEVELOPMENT  Future programs focused on money with benefit improvements in the lead twice as often as any element  Creating growth opportunities. Two elements comprised the fourth aspect: the work environment in general.3 SUGGESTIONS 1.4 . CONCLUSION AND SUGGESIONS 4.

and 115 . Implicit in our survey results is the idea that successfully taking a risk which can have a significant impact on their organization is one of the core reasons our interviewees are excited about coming to work every day. Common themes were: They let Supportive executive and management behavior that allows employees to take ownership of their jobs. guiding management behavior that encourages ownership and building team environments. Develop employees. Executive/management behavior. Developing work-related skills for success was key. and Team environment in which everyone coming to work is supported in being their best.. recognizing strengths. build teams and grow your business« Compensation systems can create barriers and disincentives. builds teams and sustains an organization over time. A strong sense of Opportunity for Growth and Development is reinforced through mapping future organizational needs. but they cannot create motivation. success and careers. In the long term even the lure of stock options alone will not create the kind of personal motivation that retains individuals. and continuous improvement or loyalty.. opportunity including the challenge of the work and opportunity for creating results was far and away the most engaging aspect. When executives talked about what kept them involved in their jobs. Next Steps. involvement.  Executive-management skills and team development Employee focus including survey follow-up and recognition programs What excites me about coming to work!. such as providing personal and professional development was second in terms of importance. Inherent in successful risk-taking are all three of the above retention concepts.

and options. Ensuring that all employees have an opportunity to develop the skills crucial to their personal and professional success supports a team environment where learning is expected and risk taking is supported. continuous improvement.developing a plan for skill development that meets organizational and individual needs. vision/mission/values was noted nearly as many times. team and organizational goals can enrich nearly every task with purpose. cost reductions.. or client satisfaction). benefits)  Executive / management behavior  Opportunities for growth 116 . Team environments are built by accepting employees as equals. communication and commitment. and was followed closely by Money compensation. Management behavior that instills a sense of ownership includes involving employees in projects that matter (i. including recognition was next. and providing opportunities for team success. aligning individual. options. In general organization's principal retention tools are ranked order and categorized in groupings based on the levels of their employee motivation. bonus. Some of them are as follows:  Money (compensation. Social / community building activities was the fourth element of importance to the individuals we interviewed. Many of these retention techniques are interrelated. rewarding positive attitudes.e. following up on employee input and encouraging employees to take ownership of their careers. Employee focus. Creating opportunities for risk taking while minimizing the risks of failure also builds team environments. For example.

STEPS FOR RETAINING KEY PERSONNEL Have you ever lost key personnel to other companies? Was it expensive to find and train replacements? Could you have prevented the loss and at the same time created a policy that actually helps to attract the best and the brightest candidates? Retention has become an essential business strategy for companies that wish to remain productive into the future. What strategies and techniques do companies use to Hire Winners? and How do companies retain there key personnel? 117 .The aspect of their work:  Opportunities for growth & development  Executive / management behavior  Team-based Work environment It's worth noting that Money (compensation.  Opportunities for growth & development. Top three ways to retain key employees. What commonalties involve everyone in the work place? 2. equitable. bonus) was a distant seventh. The following article reflects information gathered from recently conducted executive leadership interviews that were conducted in two critical areas. 1. What is good for the Goose is good for the Gander! Should such a gap exist between how we retain our employees and what keeps us coming to work everyday? One overriding conclusion that we draw is the need to question some of our assumptions about assumed difference between executive level and other employees. the attention needs to be on employees as people.  Once we develop a compensation system that is fair. and competitive in the market. options.

4. In fact. Show everyone the role they have to contribute to this vision. Get your employees to "Fall in Love"' with your organization.   It is cheaper to keep your good employees than it is to hire and train new ones. Know the job! Know the employee and their motivations. A Retention Strategy has become essential if your organization is to be productive over time and can become an important part of your hiring strategy by attracting the best candidates who know of your track record for caring for employees. 3. Strong retention strategies become strong recruiting advantages. Some recently conducted research lists these Top Ten Strategies: TOP 10 RETENTION TIPS 1.Save Money on Personnel Turnover and Increase Productivity « Retaining key personnel is critical to long term success of an organization.  Communicate your Vision in a compelling way. 2. Treat your employees like you treat your most valuable clients. Retention is much more effective when you put the right person into the right job. Half of the Fortune 500 companies are now using assessments to more fully understand each job and the soft skills that are required for top production within their specific company culture. These benchmarked skills are then compared against qualified applicants to help determine who will be successful in the position and fit well within their company's culture. These assessments are also used as a powerful professional development tool to enhance the 118  . Create opportunities for people to connect with each other for support and to improve communication in work teams. Your top 20-25% should be courted as you would court and then service your top customers. some companies do not have to recruit because they receive so many qualified unsolicited submissions due to their history of excellence in employee retention. How do you get your employees to "Fall in Love" with your organization? This is a great question.

 119 . such as Advance Fibre Communication (AFC). have recognized that the special engineers and technical experts that are the cornerstones of their business.) Advanced Fibre Communication is beginning to use this assessment process in hiring. 7. Leadership must be deeply invested in retention. Management must be skillful communicating company policies in a way that creates "buy-in" from their staff and be open to employee input. They even have employee committees that work as "focus groups" to determine why people stay at AFC and what they might want to see changed to make AFC an even better place to work. 5.  If your compensation plan is in the top 20-30% of your industry. Victoria Perrault. 6. VP of Administrative Services for AFC.training of continuous life-long learning (which is another powerful retention strategy. Money is important but it is not the only reason people stay with an organization. says that her company has identified the top 25% of their staff and caters to these special people by meeting their financial requirements and looking for the best package of benefits that these people will find most positive as incentives to stay.  Get their input! Ask. what do people like about working here? What would you likechanged to make your company a better place to work? Some companies. Help create "ownership" in your employees. then money will often not be the reason why people leave. require special attention. Employee committees to help develop retention strategies is a very effective strategy.

The FUN Factor is part of the generation of workers that use activities as stress management in highly charged production environments where long hours are required. is a powerful retention strategy. this sets the tone in a culture based on competition. It does not have to cost a lot. in various forms. Recognition.    Consider offering the best of the rest. Though not everyone can participate in physical activities. Greg has encouraged Ping-Pong tournaments and basketball leagues for interpersonal interaction. Results from retention surveys bear consideration. and interactions that are inclusive beyond work. This previous retention survey illuminates major factors in retention: 120 . Greg Peters. fun. They know that is costs less to keep good people than to continuously have to replace unsatisfied employees and managers. is one of many executives who reported that retention is often related to interpersonal connections and amount of FUN in work teams. Do your best to offer the ones your employees need. Know the trends in benefit packages. US Dept. and stress management. Past President and CEO of Mahi Networks in Petaluma. Remember that the "Fun Factor" is very important to many employees.  9. 8. The companies with the best retention percentages are the same companies that are actively committed to retention. of Labor -46% of people leave their jobs because they feel unappreciated.  10. health/well-being.

especially during volatile or uncertain times. they naturally fear any change that could affect their own future. Attrition across sectors and organisations has been an equally stressful aspect to deal with. When employees see the economy turn sour or cutbacks occur. A well integrated system that aims at providing an ambient and receptive workplace. reliable measuring and rewarding systems and adequate avenues for growth are fundamental in checking attrition. Therefore. your people may 121 . continually communicate with your employees and state your expectations of them. social space. Tell them what you want. what you expect of them. Though the attrition rate is below industrial standards. doing so will enable you to create a work environment that gets employees excited about the company and eager to produce results. Set clear expectations. it is impedient to check ´talent drainµ. 2. what they did right. recreational activity.Conclusion: Retaining talent has always been a task every HR Manager would tread. Just like the company. To keep those fears from surfacing. The study was envisaged to find out the causes for employee turnover analyse the areas of concerns and provide pragmatic solutions to check it. 1. Below I am suggesting some of the measures. Show respect. each employee needs a clear focus. and how you will measure their progress. that means we need people who can deliver immediately. since it is found that the rate of trainees and less than 2 years experience have topped in attrition. These days we needs employees who can run 100 meter races rather than marathon.

their motivation declines and they lose focus on how their work fits into the big picture. as praise and recognition inspire people to increase productivity. Give appropriate praise and recognition. However. some people prefer to receive praise privately. One simple way to give praise and recognition is with a simple ´thank you. Employees today want more than just a job. When people feel respected. They want to contribute to the big picture and help the company sustain it through the tough times. 4. Whatever you choose to do. Employees appreciate spontaneous and positive recognition along the way instead of delayed recognition during a performance review. but over the long term they won·t sacrifice family and friends for the sake of their jobs. while others like it publicly. remember that rewards and recognition are great motivators. Additionally.µ It can be done in a moment in the hallway. Delegate meaningful work whenever possible so employees can learn something new and feel challenged. so use them freely. provide regular development and learning opportunities. Therefore. consider flexible work schedules. as you give praise and recognition. by phone. Be creative about building in the flexibility. or during a drop-in visit. Recognize and celebrate even the small accomplishments. To respect employees· time. they·ll be more loyal over the long term. ´Thank youµ is a powerful phrase that can make a person feel appreciated and valued. When employees feel bored.stay up all night to finish a project. Make the workday meaningful. 3. consider the receiver. 122 . Although praise is a great motivator. leaders need to provide challenging and meaningful work assignments that stimulate their employees.

meaningful.5. While the above guidelines won·t guarantee that valuable employees will stay with you through good times and bad. even during uncertain times. When you need to correct employees. To keep morale high. When people know that mistakes are understood as a part of the experience. It shows that you·re paying attention to their progress. they do increase your chances for leading. 123 . your company can accomplish great results. By partnering with your employees and creating a work environment that·s enjoyable. coach and facilitate every day. The ´I tell/you doµ method of management simply does not work for motivating and retaining people. as mistakes are often our greatest learning opportunities. attain. and surpass desired results. Instead. become a coach to your people and encourage them to try things their own way. do so constructively by offering information on ways they can improve. Continually coach. and retaining key people when your company needs them the most. they·ll be more creative and take more risks. motivating. and focused. Most people are grateful for constructive feedback. Allow for mistakes to happen.

www. 2005 y Managing Human Resources.indiaattritionstudy. http://www.com 4. Routledge Publishers WebSites: 1. Tata McGraw Hill Publishing K. http://askforhrd. 2005 y Human Resource and Personnel Management. http://www. Aswathappa. Tata McGraw Bohlander.com 5. Fourth edition.BIBLIOGRAPHY BIBLOGRAPHY Books : y Managing Human Resources.com 3.com/ 2.hyundai-motor. - 2nd edition. Robert L Cardy.05 y International Human Resource Management.com/ 124 . Prentice Hall of India Luis R Gomez Mejia.citehr. Snell.David Balicin. http://haripassionhr.