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

4 cylinder. Dual airbags provide very high level of safety. it's not any more. There are options like ABS and airbags along with features like sunroof to opt for. Getz's space/comfort and Santro's engine make Getz Prime. 1991cc.Even though the styling of the Verna seems contemporary you always end up comparing it with the Accent. This softroader is highly fuel economic and yet is very good at engine performance. This car sits between the Santro and Getz Prime presents itself as a good looking VFM family car. Getz 1. Fuel economy had been a concern but with 1.0 CRDi. 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 2.1L engine. A very practical car. All this in a small-car! Won Car of the Year . 16 valve engine comes with amazing power 122ps and 245Nm of torque.3 is still available as top-end versions.2008 5 .

000 units per annum.HMIL presently markets 34 variants of passenger cars across segments. the Sonata Embera in the E segment and the Tucson in the SUV segment. In continuation of its commitment to provide the Indian customer with global technology. with exports of 126.2 percent over CY 2006. quality and testing capabilities in the country. HMIL·s fully integrated state-of-the-art manufacturing plant near Chennai boasts of the most advanced production.6 percent as compared to 2006 with 200.8 percent. which will be increased from 232 to 260 this year. the Accent and the Verna in the C segment. which produces an additional 300. HMIL has set up its second plant. raising HMIL·s total production capacity to 600. the Santro in the B segment. HMIL is investing to expand capacity in line with its positioning as HMC·s global export hub for compact cars. raising HMIL·s total production capacity to 600.000 units per annum.748 units.000 units per annum.000th export car. quality and testing capabilities in the country. Hyundai Motor India. In continuation of its commitment to provide the Indian customer with global technology. the Getz Prime and the i10 in the B+ segment. an increase of 9. HMIL has set up its second plant. Hyundai exports to over 90 countries globally. even as it plans to continue its thrust in existing export markets. which produces an additional 300. while overseas sales grew by 11. HMIL plans to expand its dealer network. continuing its tradition of being the fastest growing passenger car manufacturer. The year just ended 6 . it is gearing up to step up its foray into new markets.160 vehicles in the calendar year (CY) 2007.000 units per annum. Apart from expansion of production capacity. The year 2007 has been a significant year for Hyundai Motor India. In the domestic market it clocked a growth of 7. registering total sales of 327. 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 400.412 units.

In March 2008 it achieved yet another milestone by rolling out the fastest 500.500. HMIL has also been awarded the benchmark ISO 14001 certification for its sustainable environment management practices. handling. 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. The i10 bagged these awards on the basis of excellence in build quality. CNBC-TV18 Auto Car. 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·. Hyundai·s new model i10 which made its global debut here in India in October.000th car. driver comfort. 7 . 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. safety and ride quality. 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. NDTV Profit Car & Bike India and Overdrive magazine.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. Hyundai cars have been a favorite at all awards ceremonies and have always been winning awards.2008· award for the Premium Compact Car (Santro) and the Entry Mid size Car (Accent). The Santro and the Accent also received the ¶TNS Voice of the Customer . Not only this. Last year. 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 ´Best Mid-size Car of the Yearµ award by the NDTV Profit Car & Bike India Awards 2007.000th export car.

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. 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. Expresses the will of the management for harmony and stability The oval shape symbolizes the earth to expresses the global nature of HMC car. 8 . Focus on developing advanced technology. 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.     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.

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

Milestones: 1996 May 06 Hyundai Motor India incorporated. October 14 Launch of Hyundai Accent 2000 April 27 100.000th 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. 1998 May 27 Pilot production of Santro at plant begins within a record 17 months of ground breaking. June 12 Hyundai Santro crosses 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. May 08 Launch of Santro zipDrive. December 10 Ground-breaking ceremony at the Irrungattukottai plant near Chennai. 10 .000 car sales.

November 26 Both Santro & Accent ranked No. 2001 June 12 Hyundai Motor India rolls out its 200. October 10 Hyundai Motor India launches Accent CRDi.50.7 V6. August 16 Hyundai Motor India launches Accent VIVA.1 Litre E-Epsilon engine on the new Santro Zip Plus.000th car in 32 months. July 18 Hyundai Motor India launches luxury sedan Sonata. October 23 Hyundai Motor India launches Sonata 2.000th car. 2002 March 18 Global launch of 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.000th car from Chennai Plant in just 25 months. November 01 11 . November 29 Roll out of the 1.00. July 11 Hyundai Motor India introduces new look Santro. 1 in JD Power Asia Pacific 2001 ´APEALµ study. June 26 Hyundai Motor India rolls out 3. September 06 Hyundai Motor India launches Santro Automatic Transmission.

December 01 Hyundai Motor India rolls out 350.Santro bags top honours in J D Power Asia Pacific 2002. May 22 Hyundai Motor India launches Santro Xing. 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. tops both IQS & APEAL for 3rd time in a row & Accent ranked No. February 5 Hyundai Motor India declared ¶Car Maker of the Year· at the ICICI Overdrive Awards. 2003 January 14 Hyundai Motor India awarded ¶Manufacturer of the Year· at the CNBC Autocar India Awards for the second year in a row.000th car. Terracan August 12 Export shipment of 1500 Santro Xing cars leave for Europe. August 04 Hyundai Motor India launches its premium SUV. 12 . 1 in APEAL for 2nd time in a row. the global small car. HMI becomes small cars export hub for HMC.000th car in a short period of 50 months.000th vehicle in India. June 01 Hyundai Motor India wins the Business Standard Motoring Jury Award for the Accent CRDi. December 11 Hyundai rolls out 500.

Nov 17 HMIL introduced India·s Best Warranty for the 1st time in the history of Indian Automotive Industry ² 4 years/80. The first Indian car to do so in its segment. 00.000 vehicles in export and emerged as the largest exporter in the automobile industry.000 km warranty for Sonata & Elantra. Accent CRDi ² was awarded the 'No 1 Midsize Diesel Car' by TNS Automotive. April 15 Launch of Elantra. Sept 10 Launch of Getz. Jan 01 Accent Petrol ² was awarded the 'No 1 Entry Midsize Car' by TNS Automotive. Dec 01 Santro becomes India·s largest selling single brand across segments with 12.061 units. Jan 17 Getz awarded ¶Car of the Year 2005µ by CNBC ² TV 18. 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. India.00. October 31 HMIL crossed the figure of 1. India. Auto Car Auto Awards. 13 .000 sales in terms of annual sales.2004 January 15 Launch of Accent Viva CRDi March 01 Santro crossed the figure of 1.

XL) Aug 17 Launch of Sonata Embera Aug 18 Hyundai Motor India introduced the export variant of its premium hatchback.000 units by 2007 14 . 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.Getz-GLE.000th car to the overseas market. in the Indian market. 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. 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 . Getz. April 6 Launch of SUV ² Tucson ~ HMIL launches the GDMS ² Global Dealer Management System .XK. June 08 Hyundai Motor India launched three new variants of the Santro Xing with eRLX technology(XK-non AC. production to be enhanced by 600. Nov 01 All time high cumulative sales in October.

000th export car. January 04 Verna was awarded the ¶Best Value For Money Car 2007· by CNBC TV 18 Autocar Auto awards. April 19 Launch of Verna CRDi SX. 2007 January 03 Verna was awarded the ¶Car of the Year 2007· by Overdrive magazine. 15 . April 02 Launch of Getz Prime. June 01 Hyundai Motor India Receives EEPC(Engineering Export Promotion Council)¶Top exporter of the year· Award for 2005-06.March 13 HMIL rolled-out the fastest 10. November 01 Santro crosses the million mark.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. January 12 Launch of Sonata CRDi. 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.00.

000th car April0 4 i10 awarded ¶Car of the Year 2008· by ICOTY June 11 Fastest Export .500.000th 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. Aug 06 Export of 400. July 04 Launch of Santro CNG.000th car Sep 01 HMIL rolled out the fastest 1.June 27 Launch of Sonata CRDi Automatic.Over One lakh units of i10 exported since its launch in Oct 31 16 .

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

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

19 . 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.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 .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.

GM / VP / 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 . Executives Non Executives Non . Mgr / Dy. Engr. Trainee Asst.Manpower: [Category wise] Executives: 3096 Mgmt.VP / President Jr. Trainee / Grad. Mgr Mgr / Sr.Executives: Engineer / Officer Technical / Business Associate Technical /Business Associate Trainees Executives Jr.

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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24 ." said Mr. said the "possible vulnerability" of white-collar workers should ring alarm bells for HR heads.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. insurance and banking. but it is fast catching up in other traditional sectors such as manufacturing and engineering. FMCG and white-goods. bolster ¶we-feeling· and compensate as per industry standards. Director-Corporate Services for NFO. the hidden costs incurred in attracting the right workforce and on-the-job training. employees in the traditional sectors are most dissatisfied and would switch jobs at the first available opportunity. However. "After all. Gautam Nath. public sector undertakings and services. "There is a crying need for companies to engage the employees' interest by creating a conducive environment for growth. Mr. inadequate emphasis on policies and systems and interpersonal relationships. is phenomenal. The major pitfalls for the manufacturing sector were found to be lack of growth opportunities. According to an Employee Vulnerable Study by NFO India. dissatisfaction with job content. IT and telecom seem to be relatively more satisfied. Nath. employees belonging to new-age sectors such as financial services. learning.

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

The information must be ideally used to plan strategies for retention. Design on Retention Strategies:  Corporate image Maintaining corporate image is an effective way to attract the talented. This is almost equivalent to selling the organization to the new recruits.  Turnover Organisations must hold strict exit interviews and review reasons for turnover. The organization has to ensure that it is sought after for employment by cashing on its good will and reputation. 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.  Saleable Features The organization must identify its strengths and opportunities and portray them effectively. 26 . it helps in building positive impressions initially. Retention will not be a major concern if the organization stands firm on its values and promises.

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

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

training is focused on improving performance. Training House Inc. author of ´Just What Is A Competencyµ . the result is merely educational and little or no performance gains are realized. has benchmarked 72. and a baseline by which future performance gains can be measured.000 managers in 700-plus companies in dozens of industries in 17 countries. as the annual ´sheep dipµ. Universally they identified twelve competencies that highly effective managers have in common that the average performers do not possess. 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. Inc. that correlates with performance on the job. 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.Thousands of organizations spend billions of dollars on skill training for managers. 29 . Unfortunately these programs often deal exclusively with the ´how-toµ dimension. and that can be improved via training and development". which translates into greater productivity and more profits. a reduced learning curve. The result is a greater transfer of classroom learning to on-the-job performance gains. attitudes and skills that affects a major part of one's job. that can be measured against wellaccepted standards. This ritual of how-to training is referred to by Training House. a competency is "a cluster of related knowledge. not just personality changes. According to Scott Parry. Most importantly. 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.

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 .

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

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

and then. post analysis. but also becomes equally important for acquiring the right talent for the organization 35 . predict employee behavior. 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.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. This practice is derived from the identification of predictive attrition areas. The experience score is anchored on four predictors:     Affiliation Development Initiatives Employability and Our Work Environment Through this score. we are able to gauge the unique experience that an employer has been able to provide to his talent force. which not only acts as a powerful retention management tool.

This will enable organizations in determining the strengths and weaknesses of their HR. set up short-term and long-term targets and develop their action plan. thus increasing the "Association" and "Affiliation" with the organization.Benchmarking India Attrition Study data will not only help in developing an organizational and industry wise best practices report.   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 . but also help in identifying the "Employer Experience Score". These would be companies who have a comparatively higher "Employee Experience Score" and have not only successfully developed.

efficient. economical etc.INTRODUCTION 1. appropriate. The design used for the dissertation is a ´DESCRIPTIVE RESEARCH DESIGNµ. It also includes attempts by the research to discover causes behind the figures. In this design there is a possibility of maximum bias and minimum reliability of data collected.6 PROCEDURE ² METHODOLOGY Research Design is the conceptual structure within which the research is conducted.CH. 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 . A good design is often categorized as flexible.6 PROCEDURE ² METHODOLOGY 1. It constitutes the blue print for the collection measurement and analysis of data.I .

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 .

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

in other words the two attributes are independent. that the attributes are not associated hold good. With the help of chi-square test one can find out whether two or more attributes are associated or not.ANALYSIS 2. which infers that the results of the experiment provides no evidence for doubting the hypothesis. In order to test whether or not the attributes are associated.1 ANALYSIS OF THE METHODOLOGY CHAPTER 2 ANALYSIS 2.1 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. it can be inferred that the results do not support the hypothesis or in other words. The Greek letter "X" was first used by Karl Pearson in the year 1990. one takes the Null hypothesis that there is no association in the attributes under the study or. It 40 . Suppose one has 'N' number of observation classified according to some attributes.CH. if the calculated value of chi-square is greater than the table value at a certain level of significance. It may be asked whether the attributes are related or independent. On the other hand.2 . If the calculated value of chi-square is less than the table value at a certain level of significance (generally 5%). The quantity Chi-square describes the magnitude of the discrepancy between the theory and observation. the attributes are associated. It should be noted that Chi-square is not a measure of the degree or form of relationship.

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

Degrees of Freedom (d.f. No .13 1.47 36.51 27.14 1 6 2 .4 9 42 ©      2  # # ¥¥ ¢© ¨   $   # & ¥¥ ¢¤    #% " Str l it r r r is r   ¥¥ ¢© ¨ £ ¢¡   Str l is r   ¥¥ ¢© ¨  ¦ ¥¥ ¢¤ ¥§ ¥¦ ¥¥ ¢¤ £ ¢¡      " t l     !  ©   .13 1.14 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.47 36.51 27. 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 1.00 15.CHI-SQUARE: ORIENTATION & CONFLICT r r is r Ori t ti fli t t l Null Hypothesis H0 = Attributes are Independent.00 15.

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

Degrees of Freedom (d.36 23.42 1.09 2.36 23.17 79.33 33.6 11. (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 .09 0.05 2.33 0.24 2 2 162 200 394 82 Sl.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.77 103.f. No.29 112.83 (O-E) E 1 2 3 4 6 10 36 112.4 10.44 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) 82 106.15 7.

05) for 4 degree of freedom 5.05) > tabulated ]2 We reject the null hypothesis.24 E Tabulated value of ]2 at 5% level (0. 45 .Calculated ]2 = § (O-E)2 = 7.991 Since Calculated ]2 at 5% level (0. the attributes are inter-dependent.

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

551 units (including exports of 601 units). while the Accent accounted for 2. Hyundai achieved 20.STRENGTH Unlike other competitors. in a short span of 10 Years. HMC's unique .573 units (including exports of 1. it has introduced the latest technology in car manufacturing and style keeping other competitors at bay.00. 47 .its Xing. In 2002 HMIL clocked Rs 4.strategy of introducing the latest technology in India has proved it to be the II largest Car manufacturing Company in India. which was launched on May 22. Santro sales accounted for 8.000 cars a year.051 vehicles during the last fiscal year to March 2007.300 crore in the current year. The company had received overwhelming response from customers in India and distributors in Europe for Santro Xing.000 crore turnover which is likely to increase to Rs 5. With .000 cars mainly to the South East Asian and African markets. a 40 per cent increase. During the last fiscal year. The firm recorded combined sales of 111.000th car on Nov 2008. During the last fiscal year Hyundai Motor India earned revenues of 40 billion rupees (850 million dollars). The company's total production capacity was recently increased to 350.699 units). a 39 per cent growth. 2003. April'02 to March'03 Hyundai Motor India exported 8.

However.000 cars. which is being increased to 5 lakh at an investment of Rs.000 Santro to Europe this year against a total export target of 30. Hyundai proposed to invest $ 180 million in India within three years to enhance its plant's annual production capacity. HMIL has targeted a 25 per cent market share by 2005.12 lakh units sold in the previous year. to 350. and make India as Global hub after Korea for Hyundai. The company also hopes to sell around 1. HMIL hope to export around 20.1000 crore by the II part of 2007.5 lakh unit cars a year.000 vehicles.OPPORTUNITIES Hyundai of Korea is planning to shift its production base for Santro to India by the middle of this year.5 lakh passenger cars in 2003-04 against 1. 48 . HMIL's installed capacity stands at 3. The company was also considering the possibility of scaling up its research and development (R&D) initiatives in India.000 cars by 2005 to the Western Europe and North American markets. following which India will be the global base for sourcing the vehicle. at present HMIL have provision for limited R&D. They have enough scope for enhancing R&D activities in India. Their plan is to export 70.

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

The company sold 4. 50 .Country's biggest carmaker Maruti Udyog Ltd on JUNE 15. which contributed to over 11 per cent of the total sales Maruti at 39.384 units of 'Zen' in the year 2003. 1 Lakh Car ¶NANO·.178 units in May'03. it tends to reduce the car prizes of all other car manufacturing companies. 2003 launched two international two-door limited editions of its premium small car 'Zen'. Recently Tata Motors launched Rs. 'Zen' is the highest selling premium car of Maruti.

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 Problem Mgmt. 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 . 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. Reln. Subord.RANKING WEIGHTED AVERAGE METHOD: Overall Factors Ori t ti 162 l el ti s ip . Communication Decision Making Risk Taking Innovation Conflict Mgmt.

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 . 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.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 .

Subord. executive correspondance is a matter of pride at HMI. 83 2 82 0 ” ” ” • ‘ 53 . 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. – ’ ‘ 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. Reln. Communication Decision Making Risk Taking Innovation Conflict Mgmt. 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.Orientation Sup. ² Problem Mgmt.

RANKING WEIGHTED AVERAGE METHOD: JR. ² Problem Mgmt. 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. ² ² ² ² ² ² ² 5*20 + 4*18 + 3*60 + 2*30 + 1*4 = 416 54 . 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. 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. 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.o r d in a t e R e l n .o r d in a te d — = = = = = 856 850 848 586 828 55 . Mgmt Cadre) have also preferred effective communication followed by relationships and innovation. 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 . Reln. Subord. 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. ² Problem Mgmt. 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. 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 .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. 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. showing priority to continued training & exposure. 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. 56 .

2 EXISTING SYSTEM Existing Attrition Analysis system is very simple and too short.2 EXITING SYSTEM 2.50 % Attrition Rate = = In the existing attrition analysis system having simple Tabular column based reports. From this analysis its very tedious to take decision to retain the employees. of employees Resigned --------------------------------Total Manpower X 100 For Example: 289 -----------------. The attrition is calculated by using the following formula in the existing system.2 . Attrition Rate = No. There is no graphical representation and there is no pie chart.X 100 5258 5.CH. 57 .ANALYSIS 2.

Designation Attrition Analysis Ratio : 58 .

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

A . Communication ² 48% have been ranked by the respondents as important indicators in checking attrition. 5. It·s also evident that the respondents have clearly correlated Orientation. 4. Interpersonal Relationship & Superior Sub-ordinate relationship as effective tools in bringing down the level of attrition. tr gl A gree % No.Reln Sup-Sub Reln Prob M t g Co uni % Decision No. Consolidated 1. % 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 . Superior Sub-ordinate Relationship ² 55%. 3. % No. However the respondents feel the Conflict has minimal effect on attrition [Conflict ² 11% Agree & 4% Strongly Agree]. Orientation ² 62% . % Conflict No.CH. Risk Taking ² 32% . % No. Interpersonal Relationship ² 58%. NEED FOR THE CHANGE IN SYSTEM Executive Respondents Analysis: Detail No.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.ANALYSIS 2.2 .3 NEED FOR THE CHANGE IN SYSTEM 2. % 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 . respondents agree these two parameters also have an impact in bringing down attrition. % No. Decision Making ² 38%.3. Agree ² 42%] feel that Innovation reduces employee turnover. The majority of the respondents [Strongly Agree ² 40% . 2. % Risk T aking Innovation No.

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

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

A . 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. %  ‘˜ ‘™ ‘š ‘” ‘• ‘– ‘— ‘ ’ ‘ ‘“ „ ƒ‚ „ ƒ‚  63 . % A gree O verall . 2. Jr. % No.Reln Sup-Sub Reln Prob M t g Detail No. % No. The Marketing & Sales division stands apart [Executives ² 77%. % Conflict No. % Co uni No.Overall Respondents Summary: O rientation InterPer.D gree isA D isagree S gl D tr A 1. % Risk Taking No. % Innovation No. % No. Orientation [Strongly Agree ² 27% & Agree ² 65%] has been accorded top priority by the respondents as a sure measure to check attrition.

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. Relationships [both Interpersonal Relationship & Intra Personal Relationship] have been equally rated as both the cause and check for employee turnover. 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 . 28% 58% 0% JEX 39% 41% 53% 49% 10% 8% 0% 0% EX ª .3. g ree 0% Superior EXE Sub-ordinate Relationship Cadre12% wise analysis. 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. Executives cadre feel Orientation [Agree ² 77%] in the Marketing & Sales division Orientation has checked attrition to a great extent.Agree N. 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 .ad re wise 12% 10% 8% t ro n g ly g ree g ree .

Management and Non Executive cadres have been attributed effective Decision Making as important to Orientation [Jr.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. M g 60% t. Jr. ree N .A g r e e N . Decision Making aids in bringing down attrition. Non Executive cadre ² 45% Agree] A n al y s i s : Dec i s i o n M ak i n g . 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 . 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.An al ysi s: Su p eri o r Su b -o rd i n ate el ati o n s i p . are low in terms of marketability compared to Orientation. & 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 .J r . Management ² 52% Agree . Problem Management and Risk Taking though being marked as vital parameters. 8 2 8 is a ree is a ree 1 0 0 Stro n ly E E JE 55 57 55 NE 5.

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. The majority [Strongly Agree ² 41%. 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 .A gree N . appreciate communication where Non Executive cadre fairing better. 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 . [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.A gree N . Agree ² 52%]. Dis agree Dis agree Í Í Ë Í 0% trongly A gree N EX A gree N . 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 . is agree Dis agree trongly A gree J EX A gree N .A g r e e N .A gree N .Relationships & Communication.

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. 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. 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.A gree 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. Disagree ² 19%] An al sis : Co n flict an ag em n t .8. Respondents feel Conflict at the workplace has less bearing on employee turnover [Neither Agree Nor Disagree ² 28%. Structured Orientation aids better Relationships.A gree N.

A g re e N . Effective Decisions defuses Conflicts. ü ø 30% ÷ ö 11.10.Agree N. 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. Analysis : Effective ecision Making defuses o nflicts 50% 45% 40% 35% Percentage % 2 % 19% 9% 9% 5% N. 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. 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. 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 .

12.A gree 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. A g re e N . ¤  § ¦ ý ig h t D c is io n s av o id s isks 45% 1% ¥  ¤     © ¢ ¡ 11% 5% N . Right Decisions avoids Risks. 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. 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. Executive Decisions are appreciated and followed by subordinates. 2% 2% 0% 0% D is a g re e 0% 0% 69 . 13.

Agree N. 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 . Problem Management survives on good Superior-Subordinate Relationship. Survives on good Superior Sub-ordinate Relationship. 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 .14. 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 . A g re e N . Superior Subordinate Relationship ² 56% Agree shows that Problem Mgmt. 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. 15. 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 .45% Agree shows that Communication effects Decision Making.

Analysis is the computation of certain measures along with searching patterns of relationship that exist among data groups. 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 attrition is calculated from the following formula: [No. Interpretation thus establishes explanatory concepts.4 PROPOSED SYSTEM 2. The analysed data are then interpreted by drawing inferences from the processed facts with the help of theoretical explanation.4 PROPOSED SYSTEM Fundamental analysis is done using data collected to determine the characteristics of the sample.CH.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 .ANALYSIS 2.

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

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

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

75 . North Regional Office (New Delhi) has the maximum attrition level. minimum employees are leaving the company from factory compared with other locations.Location Wise: Among the Locations. Month Wise: Among the all months. 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.

47%) showcauses the efforts to imbibe a sense of togetherness amongst employees. 2. Be it welfare. 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 %. 3.    76 . growth and development. It is not having even a single trade union till now which shows the harmonious relation between the management and the workforce. 4. which is one of the reasons for the low rate of attrition. If the industry has 200 employees and 20 goes out.96% and started declining from then to reach only 0.61% in the current year. HMI has always provided an ambience for belongingness.Findings Rate of attrition depends on the number of employees and it does not reveal the actual facts. compensation or recognition. where the individual employee stands integral even to the most trivial decisions. Reasons for low rate of attrition: 1. The rate of attrition was maximum in 1999 with 6.47%. Hyundai gives a very sound compensation package along with its excellent welfare and other benefits. The average attrition rate (3. Management initiatives centre around people. The rate of attrition in Hyundai Motor India Ltd. is very low right from the commencement with an average of only 3.

10. which shows that professionals from Hyundai have great demand in the market. Among the people who left the organisation maximum are the executives followed by junior executives. 77 . 9. Employees are very well recognized and rewarded which makes them feel proud to be HYUNDIANS.5. 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. 7. Maximum attrition is recorded from the Production division which is at a very high demand in today's market. Most of the employees are fresher who make proper utilization of the good training facilities Hyundai provides for their career development and knowledge enhancement. 6. 12. 8. 13. Orientation [Strongly Agree ² 27% & Agree ² 65%] has been accorded top priority by the respondents as a sure measure to check attrition. 11. Employee commitment level is too high. Most of the employees left the organisation for better opportunities outside after equipping themselves with required knowledge by working at Hyundai. 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.

Jr. Disagree ² 19%] 19. 18. 78 . The majority [Strongly Agree ² 41%. Respondents feel Conflict at the workplace has less bearing on employee turnover [Neither Agree Nor Disagree ² 28%. 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. appreciate communication where Non Executive cadre fairing better. Relationships [both Interpersonal Relationship & Intra Personal Relationship] have been equally rated as both the cause and check for employee turnover. The Marketing & Sales division stands apart [Executives . Jr.  14. are low in terms of marketability compared to Orientation. Non Executive cadre ² 45% Agree] 16. Superior Sub-ordinate Relationship ² 56% Agree shows that Problem Mgmt. 15.77%. Problem Management and Risk Taking though being marked as vital parameters. [Risk Taking ² 31% Agree & Problem Management ² 27% Agree] 17. Management ² 52% Agree . 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. Problem Management ² 27% Agree & 35% Strongly Agree . Survives on good Superior Sub-ordinate Relationship. Agree ² 52%]. Interpersonal Relationships & Communication. Management and Non Executive cadres have been attributed effective Decision Making as important to Orientation [Jr.

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

IT and telecom seem to be relatively more satisfied.CH 3 . employees belonging to new-age sectors such as financial services. employees in the traditional sectors are most dissatisfied and would switch jobs at the first available opportunity. Director-Corporate Services for NFO. According to an Employee Vulnerable Study by NFO India. Gautam Nath. inadequate emphasis on policies and systems and interpersonal relationships. but it is fast catching up in other traditional sectors such as manufacturing and engineering. FMCG and white-goods. dissatisfaction with job content. However.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. Mr. public sector undertakings and services. insurance and banking. The major pitfalls for the manufacturing sector were found to be lack of growth opportunities. said the "possible vulnerability" of white-collar workers should ring alarm bells for HR heads. 80 .

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

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

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

greater expectations and hence more impressive achievements. Most stock option plans implemented in India have been "cash less" exercise plans. which I felt can be correlated to the presence of low self esteem. If we do that we expect more out of ourselves. openness. autonomy. is the growing malaise of the "rate of employee turnover". 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. This growth process results in more aggressive goals. strategic collaboration. Reducing Attrition Through Employee Self Esteem: Literature in HR is replete with theories on motivation. If we start believing in whatever has been said till 87 . 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. It thus becomes worthwhile to have a deep look on this concept and its implications in both individual and corporate contexts. 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. Trust.plans. towards which organization strategies seem to have converged. Off-late driving the "new-economy" organizations in a frenzy. It is a process. and leadership to name a few of the commonly spoken jargons. 2. It is in this sense that it becomes an auspicious circle of 'expectations' and ¶achievements· to further ¶expectations·. It means we regard ourselves highly. which often results in more impressive achievements arising out of greater expectations out of ourselves. team building. pro-activity. 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. benchmarking and career development are some other buzzwords prevalent in the field of HR.

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

If we study the national corporate scene today.ESTEEM" are also very relevant: Focus on your strengths and not on your weakness. regardless of their status in the Society. Excerpts from Jerry Minchinton's "52 WAYS OF RAISING YOUR SELF. Others should be treated as equals. career development etc. morale and motivation.  Criteria for selecting outstanding achievers should be transparent. 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. the rise in methods to increase the self esteem of the employees can well be the answer for HR executives all over the world. 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. Effective HR measures in the areas of training. equip the workforce better on the professional front and also increases their self-esteem. Self Esteem and Employee Turnover As the struggle for reducing the employee attrition rates in the knowledge-based organizations intensifies. Swami Vivekananda has repeatedly emphasized the importance of self-esteem.    89 . 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.

3. innovate. in terms of its acquisition. with its attendant paradigm shifts in relation to the human capital.    The need of the hour is not only to enable the employees to grow in the 'learning organizations' the concept of which. implement and sustain relevant strategies and contribute effectively towards giving the corporation its winning edge. Today HR is expected to comprehend. who are techno savvy. Remember if you Underestimate yourself others will do the same to you. are materially focused and have higher propensity to switch jobs. Kicking Retention Strategies In To High Gear: The new age economy. conceptualize. Try to accept and appreciate yourself as you are. all the retention policies of the organizations will meet a sorry fate. If you are relaxed you are more expected to come out better. The new age workforce comprises mostly of knowledge workers. aware of market realities. especially against erratic attrition trends and cutthroat competition no longer restricted to local or regional boundaries. Don't worry much about impressing others. 90 . are high risk takers with higher aspirations and expectations and generally have a totally different mind-set about job and careers. I fear.  Be positive. 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. they are probably trying to impress you. With a dynamically changing and volatile demand-supply equation. Master the art of positive thinking. development 'and retention. 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. utilization. has placed a heavy demand on today's HR professional. They prefer to experiment and explore new opportunities.

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. 91 . whose performance falls below their potential. 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 could call this as the "talent" segment. There are people who are woefully inadequate in both dimensions. which we may call 'Strugglers' and there are the 'under-performers'. 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. The other two segments comprise of the 'solid pro's and the 'stars' who are at the higher end of the performance continuum. The former may be relatively lower in their potential as compared with the latter. but contribute immensely to the company's overall performance. 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.

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

cataloguing of direct and proximate clues. caring nurturing     open forums one-to-one sessions exit interviews ex-employee interviews rape vines informal social interactions 93 . 8 A A 7 9 9 9 Enduring ulture Environment . empowerment. on the other hand. control. compliance.trusting. astute leadership within the organization. whether used singly or in combination the success depends on collection and collation of unbiased responses.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. While on the one hand. rigid power structure. an enduring culture and an environment that is trusting. knee-jerk changes. caring and nurturing. 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. lure of lucre and poaching would be debilitating. recognition etc would exert a positive influence on the subject talent. transparency. unjust discrimination. unexciting and drab jobs. their effective analysis and drawing sound inferences. unrealistic deadlines. responsiveness and creative policies on compensation. credibility . a compelling brand image.

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

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

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

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

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

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

CH. Most leaving employees seek opportunities that allow them to use and develop their skills. 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." "company direction" and "interesting work" Clerical employees voice concerns such as "type of work. 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. According to a study by Ipsos²Reid . CONCLUSION AND SUGGESIONS 4. 30% of employees plan to change jobs in the next two years. Companies usually turn to increasing the compensation for employees to retain them.1 SUMMARY OF THE SYSTEM Employee attrition is a costly dilemma for all organizations. CONCLUSION AND SUGGESTION 4.1 SUMMARY OF THE SYSTEM CHAPTER 4 SUMMARY. 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.3 ² SUMMARY. In today's taxing business climate. Leaving employees want more meaning in their work meaning challenging the challenges. They often indicate that they want to use their qualities and skills in challenging teamwork led by capable leaders. Managerial staff cite "career growth" and "leadership" as the major factors that influence attrition and retention." "use of skills and abilities" and "opportunity to learn" Hourly employees 100 .

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

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

include.CH. appreciation Trust Factor. benefits.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 4.2 ways.4 ² SUMMARY. nature of work.support (with skill).2 SCOPE OF THE SYSTEM 4. Why do they stay? Retention ( or the Opposite ) Confidence strategies Emotional Factor.Values/ethics are a good fit Listening Factor. communicate. ´A strong retention strategy becomes a powerful recruitment tool! ´ Retention Factors: 103 . advancement possibilities.(Huge) contribution. recognition. manage. job security.promises/commitments kept (strong link to loyalty) Fit Factor. recognize. personal/family time. reward and make people feel significant. location.2 SCOPE OF THE SYSTEM Why do they come«? Pay. hire.

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

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

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

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

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

it may be too time consuming to exit interview every employee. For larger companies. 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. HR representative meets individually with each terminating employee.person exit interview. Telephone Exit Interviews Telephone Exit Interviews are conducted over the telephone by a HR Representative or an outside third party consultant.   It's difficult to track information received verbally during an exit interview. 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 .Pros and Cons of each method of Exit Interviewing: In-Person Exit Interviews With in-person exit interviews.

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 .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.

this theory has yet to hold up. they expect immediate action on those problems. In research that Nobscot has conducted. Employers can take action on problem areas as they see fit without causing further concern among employees. With exit interviews. 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. Therefore. you have a greater opportunity to review the data and look for trends over time. 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. This difficulty the urgency in which a company must act on the feedback provided in the exit interview. 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. 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. Exit interviews are one of the most widely used methods of gathering employee feedback. over 90% of companies conduct exit interviews. With employee surveys. the employee is expected to provide more valuable information in an exit interview if it is held six months after employment. Once you provide employees the opportunity to tell you where the problems are. Additionally. it's imperative to act on the results of the employee satisfaction surveys as quickly as possible. it's difficult and time consuming to reach employees this far after employment has discontinued.Exit Interviews conducted by over 90% of companies According to a study by the Society of Human Resource Management. 111 .

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

Have employees provide demographic information such as department. 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. Management. You'll need a consistent set of questions that will be asked in both surveys and exits. Coordinating Your Surveys and Exits The first step is identifying what items cause turnover for your organization. Turnover is unique to each organization so items that may cause turnover in one company. Compensation. The questions should be quantifiable by having employees rate the items on a numerical scale (Ex. 1-5). Identifying Turnover Stimulators Identifying turnover stimulators is a simple matter of comparing your exit interview results to your employee survey results. Before you can begin to identify your turnover stimulators. If you conduct both employee satisfaction surveys and exit interviews. 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. Tag these questions as Turnover Stimulators. mayor may not cause turnover in your company. 113 . etc. the Company. 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. 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. Once you have a sufficient number of completed surveys and exit interviews you can begin the analysis process.Turnover Prediction Mapping You don·t have to have a crystal ball to predict future turnover. The questions should cover all areas including Environment. location and job classification. you need to coordinate your employee survey process with your exit interview process.

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 . 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. The third was the opportunity for. benefits and stock options) was the most frequently mentioned aspect of the retention programs. Second was the executive/management team. ASSUMPTIONS: Money (including compensation.3 SUGGESTIONS 1. growth. both in the tone they set by example and in their communication to the organization as a whole. 2.CH. both through the challenge of work assignments and individual development.4 .3 SUGGESTIONS 4. and the trust existing between people in the organization. Two elements comprised the fourth aspect: the work environment in general.SUMMARY. CONCLUSION AND SUGGESIONS 4.

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

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

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. 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. 1. What commonalties involve everyone in the work place? 2. 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. options. equitable.  Opportunities for growth & development. and competitive in the market. bonus) was a distant seventh.  Once we develop a compensation system that is fair. Top three ways to retain key employees. the attention needs to be on employees as people. The following article reflects information gathered from recently conducted executive leadership interviews that were conducted in two critical areas.

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. 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. Strong retention strategies become strong recruiting advantages. Show everyone the role they have to contribute to this vision. Retention is much more effective when you put the right person into the right job. 4. Get your employees to "Fall in Love"' with your organization. How do you get your employees to "Fall in Love" with your organization? This is a great question. 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.Save Money on Personnel Turnover and Increase Productivity « Retaining key personnel is critical to long term success of an organization. 3. These assessments are also used as a powerful professional development tool to enhance the 118  . 2. 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. Create opportunities for people to connect with each other for support and to improve communication in work teams. Know the job! Know the employee and their motivations.  Communicate your Vision in a compelling way.   It is cheaper to keep your good employees than it is to hire and train new ones. Some recently conducted research lists these Top Ten Strategies: TOP 10 RETENTION TIPS 1. Treat your employees like you treat your most valuable clients. In fact.

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

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

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

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

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

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

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