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

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. 1991cc.2008 5 . Dual airbags provide very high level of safety. it's not any more. Getz 1. This car sits between the Santro and Getz Prime presents itself as a good looking VFM family car. All this in a small-car! Won Car of the Year .1L engine. A very practical car. This softroader is highly fuel economic and yet is very good at engine performance. Fuel economy had been a concern but with 1.Even though the styling of the Verna seems contemporary you always end up comparing it with the Accent.3 is still available as top-end versions. Getz's space/comfort and Santro's engine make Getz Prime. 4 cylinder. 16 valve engine comes with amazing power 122ps and 245Nm of torque.0 CRDi. There are options like ABS and airbags along with features like sunroof to opt for.

000 units per annum. HMIL is investing to expand capacity in line with its positioning as HMC·s global export hub for compact cars. HMIL·s fully integrated state-of-the-art manufacturing plant near Chennai boasts of the most advanced production. the Sonata Embera in the E segment and the Tucson in the SUV segment. an increase of 9. In continuation of its commitment to provide the Indian customer with global technology. even as it plans to continue its thrust in existing export markets.000 units per annum. HMIL·s fully integrated state-of-the-art manufacturing plant near Chennai boasts of the most advanced production.000 units per annum. which produces an additional 300.2 percent over CY 2006.412 units.HMIL presently markets 34 variants of passenger cars across segments. The year 2007 has been a significant year for Hyundai Motor India.748 units. registering total sales of 327. Apart from expansion of production capacity.000th export car.160 vehicles in the calendar year (CY) 2007. continuing its tradition of being the fastest growing passenger car manufacturer. The year just ended 6 . It achieved a significant milestone by rolling out the fastest 400. the Accent and the Verna in the C segment. In continuation of its commitment to provide the Indian customer with global technology. which produces an additional 300.6 percent as compared to 2006 with 200. raising HMIL·s total production capacity to 600. Hyundai Motor India. HMIL has set up its second plant. quality and testing capabilities in the country.000 units per annum. while overseas sales grew by 11.8 percent. HMIL plans to expand its dealer network. the Santro in the B segment. HMIL has set up its second plant. which will be increased from 232 to 260 this year. In the domestic market it clocked a growth of 7. raising HMIL·s total production capacity to 600. Hyundai exports to over 90 countries globally. it is gearing up to step up its foray into new markets. the Getz Prime and the i10 in the B+ segment. with exports of 126. quality and testing capabilities in the country.

driver comfort. CNBC-TV18 Auto Car. safety and ride quality. The Santro and the Accent also received the ¶TNS Voice of the Customer . 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. 7 . The i10 bagged these awards on the basis of excellence in build quality. 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. In March 2008 it achieved yet another milestone by rolling out the fastest 500.000th export car. Hyundai cars have been a favorite at all awards ceremonies and have always been winning awards. Last year.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. Not only this. NDTV Profit Car & Bike India and Overdrive magazine. HMIL has also been awarded the benchmark ISO 14001 certification for its sustainable environment management practices. 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 2007.500. Hyundai·s new model i10 which made its global debut here in India in October. 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·. 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. handling.2008· award for the Premium Compact Car (Santro) and the Entry Mid size Car (Accent).000th car.

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. 8 . Focus on developing advanced technology. Basic objectives of HMIL: Best customer service Best technology Best quality products Best value for people         This has helped the company deliver consistently producing some of the finest cars of the company.     Goals of HMIL: The ultimate goal is to join the ranks of the world·s top 10 automakers. The 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. Expresses the will of the management for harmony and stability The oval shape symbolizes the earth to expresses the global nature of HMC car.The Hyundai Logo  The symbol represents an image of Car Company that produces refined cars with cutting edge technology.

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

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.000th Car rolls out from the Chennai plant in just 19 months of since commencement of operations. 10 . October 14 Launch of Hyundai Accent 2000 April 27 100.Milestones: 1996 May 06 Hyundai Motor India incorporated. July 21 First major export-shipment of 760 Accent and Santro cars roll out of the Chennai Port for Algeria.000 car sales. June 12 Hyundai Santro crosses 100. December 10 Ground-breaking ceremony at the Irrungattukottai plant near Chennai. 1998 May 27 Pilot production of Santro at plant begins within a record 17 months of ground breaking. May 08 Launch of Santro zipDrive.

October 23 Hyundai Motor India launches Sonata 2.1 Litre E-Epsilon engine on the new Santro Zip Plus. 2002 March 18 Global launch of 1.000th car in 32 months.000th car.50. 2001 June 12 Hyundai Motor India rolls out its 200. July 18 Hyundai Motor India launches luxury sedan Sonata. August 16 Hyundai Motor India launches Accent VIVA. November 29 Roll out of the 1. November 26 Both Santro & Accent ranked No.7 V6. September 06 Hyundai Motor India launches Santro Automatic Transmission. November 22 Santro ranked No 1 in JD Power Asia Pacific 2001 ´Initial Qualityµ study. November 01 11 . June 26 Hyundai Motor India rolls out 3.000th car from Chennai Plant in just 25 months. July 11 Hyundai Motor India introduces new look Santro.November 01 Both Santro & Accent bag top honours in JD Power Asia Pacific 2001 ´IQSµ and ´APEALµ studies. October 10 Hyundai Motor India launches Accent CRDi.00. 1 in JD Power Asia Pacific 2001 ´APEALµ study.

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

13 . India. 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. The first Indian car to do so in its segment.00. October 31 HMIL crossed the figure of 1. Accent CRDi ² was awarded the 'No 1 Midsize Diesel Car' by TNS Automotive. Sept 10 Launch of Getz. Nov 17 HMIL introduced India·s Best Warranty for the 1st time in the history of Indian Automotive Industry ² 4 years/80. April 15 Launch of Elantra.000 sales in terms of annual sales. 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.2004 January 15 Launch of Accent Viva CRDi March 01 Santro crossed the figure of 1. Auto Car Auto Awards.000 km warranty for Sonata & Elantra.061 units.000 vehicles in export and emerged as the largest exporter in the automobile industry. India. Jan 17 Getz awarded ¶Car of the Year 2005µ by CNBC ² TV 18. 00.

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

June 01 Hyundai Motor India Receives EEPC(Engineering Export Promotion Council)¶Top exporter of the year· Award for 2005-06. December 30 Verna CRDi was awarded the ¶Performance Car of The Year 2007· by Business Standard Motoring.March 13 HMIL rolled-out the fastest 10.000th export car. November 01 Santro crosses the million mark. 2007 January 03 Verna was awarded the ¶Car of the Year 2007· by Overdrive magazine.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. January 04 Verna was awarded the ¶Best Value For Money Car 2007· by CNBC TV 18 Autocar Auto awards. April 02 Launch of Getz Prime. April 19 Launch of Verna CRDi SX. March 26 Hyundai Motor India ships out the first Getz. 15 .00.

Over One lakh units of i10 exported since its launch in Oct 31 16 . July 04 Launch of Santro CNG.500.000th car April0 4 i10 awarded ¶Car of the Year 2008· by ICOTY June 11 Fastest Export . Aug 06 Export of 400.000th car Sep 01 HMIL rolled out the fastest 1.June 27 Launch of Sonata CRDi Automatic.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.

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

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

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.

Executives: Engineer / Officer Technical / Business Associate Technical /Business Associate Trainees Executives Jr. Executives Non Executives Non .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 . Mgr / AGM / DGM / GM E m p l o y e e s 1280 959 Sr. Trainee Asst.VP / President Jr. Mgr Mgr / Sr.Manpower: [Category wise] Executives: 3096 Mgmt. Mgr / Dy. Trainee / Grad.GM / VP / Sr. Engr.

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

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

 Saleable Features The organization must identify its strengths and opportunities and portray them effectively.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. The organization has to ensure that it is sought after for employment by cashing on its good will and reputation. The information must be ideally used to plan strategies for retention. Those issues that might drive talent to leave should be dealt with immediately. 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. Retention will not be a major concern if the organization stands firm on its values and promises.  Turnover Organisations must hold strict exit interviews and review reasons for turnover. 26 . it helps in building positive impressions initially.

maximizing the recruit·s performance. Continuous development Unless organizations adapt to changes and developments. This will help in identifying their potential and setting performance targets thereby. Give the new recruits every reason to work for the organization and build a long-term relationship. 27 . they cannot mentor their employees and new recruits. Organisations should look for the best fit into their territory with reviews from their colleagues. customers and managers.  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.

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

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

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 .

4 PROBLEM 1. Employee recruiting and retention are big issues for IT organizations. Satyam. To put these attrition numbers into perspective. It causes companies to lose knowledge. at 25%²60%. Fiscal third-quarter 2005 (ended December 2004) results filed by Infosys. Russia. and fall behind on scheduled projects. Global outsourcing and the astounding amount of foreign direct investment pouring into China. while an April 2005 Business Week article estimated an attrition rate of 60%. Vendors that we have interviewed place the numbers much higher.4 PROBLEM ´OUR ASSEST WALK OUT OF THE DOOR EACH EVENING. screening. with some India service providers experiencing up to 80% turnover. hire. and India have created tremendous opportunities and competition for talented IT professionals in those countries.WE HAVE TO MAKE SURE THAT THEY COME BACK THE NEXT MORNING ´ . and TCS listed attrition rates between 7.6% and 17. and hiring a 31 . Wipro. interview. get caught up in the never-ending cycle of hiring.CH.INTRODUCTION 1.I .Mr. The downside of this increased competition is a rising rate of attrition. so create a work environment where the employees are involved in the development of rewards programs. Now think about losing them and starting the hiring and training processes anew. particularly in India. train. Think about the time and money it took to find. incur training fees. then 25 of your IT staff will leave each year. and coach those 25 people.7%. if your company has 100 programmers and an attrition rate of 25%. negotiating. Narayanamurthy Chief Mentor of Infosys High attrition destroys the value of going offshore. interviewing. How do the hiring and training processes break down in terms of total costs in India? The typical time for advertising.

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

predict employee behavior.The Attrition Study enables organizations in building     Predictive Retention Practices Employer Experience Score Benchmarking Strong Employers Predictive Retention Practices This analytics based study would focus to first understand. 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. post analysis. The experience score is anchored on four predictors:     Affiliation Development Initiatives Employability and Our Work Environment Through this score. and then. This practice is derived from the identification of predictive attrition areas. but also becomes equally important for acquiring the right talent for the organization 35 . 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.

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. This will enable organizations in determining the strengths and weaknesses of their HR. but also have successfully deployed employee "Predictive Retention Practices"   Organizations with high experience score Recognize Industry Leaders 36 .   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.Benchmarking India Attrition Study data will not only help in developing an organizational and industry wise best practices report. set up short-term and long-term targets and develop their action plan. thus increasing the "Association" and "Affiliation" with the organization.

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

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 .

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

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

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

CHI-SQUARE: ORIENTATION & CONFLICT r r is r Ori t ti fli t t l Null Hypothesis H0 = Attributes are Independent.51 27.00 15.14 1. 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.f.13 1.4 9 42 ©      2  # # ¥¥ ¢© ¨   $   # & ¥¥ ¢¤    #% " Str l it r r r is r   ¥¥ ¢© ¨ £ ¢¡   Str l is r   ¥¥ ¢© ¨  ¦ ¥¥ ¢¤ ¥§ ¥¦ ¥¥ ¢¤ £ ¢¡      " t l     !  ©   .47 36. Degrees of Freedom (d.13 1.00 15.51 27. No .14 1 6 2 .47 36.) = (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.

05) > tabulated ]2 We reject the null hypothesis. 43 . the attributes are inter-dependent.49 E Tabulated value of ]2 at 5% level (0.05) for 4 degree of freedom 9.Calculated ]2 = § (O-E)2 = 162.488 Since Calculated ]2 at 5% level (0.

42 1.f. (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 .05 2.77 103.6 11.36 23.) = (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. Degrees of Freedom (d.33 0.36 23.09 2.4 10.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.44 1.15 7.24 2 2 162 200 394 82 Sl. No.29 112.17 79.83 (O-E) E 1 2 3 4 6 10 36 112.33 33.09 0.

24 E Tabulated value of ]2 at 5% level (0.Calculated ]2 = § (O-E)2 = 7. the attributes are inter-dependent. 45 .05) for 4 degree of freedom 5.991 Since Calculated ]2 at 5% level (0.05) > tabulated ]2 We reject the null hypothesis.

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

The company's total production capacity was recently increased to 350.STRENGTH Unlike other competitors.strategy of introducing the latest technology in India has proved it to be the II largest Car manufacturing Company in India. a 40 per cent increase.000 cars mainly to the South East Asian and African markets. During the last fiscal year.000 cars a year. The firm recorded combined sales of 111.300 crore in the current year. HMC's unique .699 units).00. a 39 per cent growth. it has introduced the latest technology in car manufacturing and style keeping other competitors at bay. 2003. The company had received overwhelming response from customers in India and distributors in Europe for Santro Xing. With .000th car on Nov 2008.000 crore turnover which is likely to increase to Rs 5. which was launched on May 22.051 vehicles during the last fiscal year to March 2007. Hyundai achieved 20. while the Accent accounted for 2. During the last fiscal year Hyundai Motor India earned revenues of 40 billion rupees (850 million dollars). In 2002 HMIL clocked Rs 4. in a short span of 10 Years. April'02 to March'03 Hyundai Motor India exported 8. 47 .its Xing.551 units (including exports of 601 units).573 units (including exports of 1. Santro sales accounted for 8.

12 lakh units sold in the previous year. HMIL hope to export around 20.000 Santro to Europe this year against a total export target of 30. Their plan is to export 70. which is being increased to 5 lakh at an investment of Rs.OPPORTUNITIES Hyundai of Korea is planning to shift its production base for Santro to India by the middle of this year. They have enough scope for enhancing R&D activities in India.5 lakh unit cars a year. and make India as Global hub after Korea for Hyundai. HMIL has targeted a 25 per cent market share by 2005. 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. to 350.000 cars by 2005 to the Western Europe and North American markets. 48 . following which India will be the global base for sourcing the vehicle. at present HMIL have provision for limited R&D.000 cars.5 lakh passenger cars in 2003-04 against 1.1000 crore by the II part of 2007. Hyundai proposed to invest $ 180 million in India within three years to enhance its plant's annual production capacity. However. The company also hopes to sell around 1.000 vehicles.

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

Country's biggest carmaker Maruti Udyog Ltd on JUNE 15. 1 Lakh Car ¶NANO·. 50 . 2003 launched two international two-door limited editions of its premium small car 'Zen'.384 units of 'Zen' in the year 2003. The company sold 4. which contributed to over 11 per cent of the total sales Maruti at 39. 'Zen' is the highest selling premium car of Maruti. it tends to reduce the car prizes of all other car manufacturing companies. Recently Tata Motors launched Rs.178 units in May'03.

Reln. 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. ² Problem Mgmt. Communication Decision Making Risk Taking Innovation Conflict Mgmt. Subord.r i te el . 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. ² ² ² ² ² ² ² 5*44 + 4*39 + 3*12 + 2*3 + 1*1 = 5*5 + 4*9 + 3*28 + 2*19 + 1*5 = 188 ` Y X ( ) ( ) W S Strongl gree gree eit er gree or Disagree ( ) Disagree ( ) Strongl Disagree ( ) R T S U T R V S b e e cbd a a b fd c c b i d hg d q r q q g bd c ba p hd e 51 .RANKING WEIGHTED AVERAGE METHOD: Overall Factors Ori t ti 162 l el ti s ip .

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 . managements commitment to build nurture a working organisation. 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.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 .r inate Reln. RANKING WEIGHTED AVERAGE METHOD: EXECUTIVES v Strongly gree ( ) Orient ti n Interpers nal Relati s ip Superi r Sub.

Orientation Sup. ² Problem Mgmt. 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. executive correspondance is a matter of pride at HMI. 83 2 82 0 ” ” ” • ‘ 53 . Reln. Subord. – ’ ‘ Int erpersonal e lat io s i p 81 6 81 4 57 4 51 8 51 0 “ ‘ Superio r Sub-or dina te  85 6 eln. Communication Decision Making Risk Taking Innovation Conflict Mgmt. ² 5*56 + 4*124 + 3*12 + 2*4 5*56 + 4*116 + 3*24 5*68 +4*110 + 3*16 + 2*2 5*60 + 4*58 + 3*14 5*86 + 4*96 + 3*14 5*20 + 4*76 + 3*34 + 2*2 5*42 + 4*64 + 3*12 + 2*8 = = = = = = = 820 816 832 574 856 510 518 814 388 Interpersonal Reln.

² 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. MANAGEMENT F ac tors Strongly Agree (5) Orien ta tion Interpe rsona l Relatiosh ip Su perior Sub -ordin ate Reln. Subord. ² Problem Mgmt. Communication Decision Making Risk Taking Innovation Conflict Mgmt. ² ² ² ² ² ² ² 5*20 + 4*18 + 3*60 + 2*30 + 1*4 = 416 54 .RANKING WEIGHTED AVERAGE METHOD: JR. Reln. 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.

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

56 . ² ² ² ² 5*20 + 4*90 + 3*16 + 2*6 5*52 + 4*68 + 3*4 5*90 + 4*72 + 3*28 + 2*2+3 = = = 520 544 829 5*2 + 4*16 + 3*48 + 2*46 + 1*20= 330 Factor O rientation Interpersonal Relatioship Superior Sub-ordinate Reln.Decision Making Risk Taking Innovation Conflict Mgmt. 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. showing priority to continued training & exposure.

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

Designation Attrition Analysis Ratio : 58 .

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

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

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

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

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

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

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

Dis agree Dis agree Í Í Ë Í 0% trongly A gree N EX A gree N . 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 .A gree N . appreciate communication where Non Executive cadre fairing better.Relationships & Communication. D isa g r e e 7% 10% O v e r a ll 0% 0% 0% tr o n g ly D isa g r e e 0% 0% 0% 0% Õ NEX adre Ö D isa g r e e Ù Ù 70% EXE N EX 0% Ù Ñ Ö Ð A n al y s i s : o m m u n i c ati o n v er al l v s No n E xec u ti v e c ad r e Ø × Ë Ï A gree A gree Î trongly . is agree Dis agree trongly A gree J EX A gree N .A gree N . The majority [Strongly Agree ² 41%. [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 g r e e N . Agree ² 52%].A gree N . 30% 21% 2 % 32% 7% 6% 0% 4% 42% 31% 22% 26% 4% 7% 0% 2% 33% 26% 2 % 34% R is k a k ing 7. 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 .

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

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

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. 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. 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 . 13. 2% 2% 0% 0% D is a g re e 0% 0% 69 . Right Decisions avoids Risks.12.A gree N.

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 . 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 . Communication effects Decisions.Agree N. 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 . Superior Subordinate Relationship ² 56% Agree shows that Problem Mgmt.14. Problem Management survives on good Superior-Subordinate Relationship. Survives on good Superior Sub-ordinate Relationship. A g re e N . A n a l y s i s : C o m m u n i c a ti o n E ffe c ts D e c i s i o n 50% 45% 40% 35% e r c e n ta g e %    ak in g 45% 3 %  30% 25% 20% 15% 10% 5% 0% S t ro n g l A g re e A g re e 38 45 N . 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. 15.45% Agree shows that Communication effects Decision Making.

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

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

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

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

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

The rate of attrition in Hyundai Motor India Ltd. where the individual employee stands integral even to the most trivial decisions. Hyundai gives a very sound compensation package along with its excellent welfare and other benefits. The rate of attrition was maximum in 1999 with 6.Findings Rate of attrition depends on the number of employees and it does not reveal the actual facts. 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 %. is very low right from the commencement with an average of only 3. growth and development. Management initiatives centre around people. Reasons for low rate of attrition: 1. If the industry has 200 employees and 20 goes out.61% in the current year. HMI has always provided an ambience for belongingness. It is not having even a single trade union till now which shows the harmonious relation between the management and the workforce.96% and started declining from then to reach only 0. Be it welfare.47%) showcauses the efforts to imbibe a sense of togetherness amongst employees. compensation or recognition.    76 . 3. which is one of the reasons for the low rate of attrition. 2. 4. The average attrition rate (3.47%.

9. Orientation [Strongly Agree ² 27% & Agree ² 65%] has been accorded top priority by the respondents as a sure measure to check attrition. Number of employees are separated in less than one year indicates the reason may be due to the location of the plant and lack of interest in learning more. 6. 11. 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. 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. 12. 10. 8.5. Most of the employees left the organisation for better opportunities outside after equipping themselves with required knowledge by working at Hyundai. Maximum attrition is recorded from the Production division which is at a very high demand in today's market. 7. Employee commitment level is too high. 13. Employees are very well recognized and rewarded which makes them feel proud to be HYUNDIANS. 77 . Most of the employees are fresher who make proper utilization of the good training facilities Hyundai provides for their career development and knowledge enhancement.

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

Suggestions: 1. a) Organising periodic training programs b) Encouraging learning through sponsorship and internship c) Rewarding performance immediately and appropriately through recognition awards and citation. 2. Shift Timings and distance have been major concerns at the Executive Level. 3. 4.47%). Skill development activity and job rotation/enrichment to prevent monotony and work stress. Effective and clear Career Progression chart to be drawn at the time of inception itself. 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. Retention of Talent through customised progression both in future career plans and compensation (though Attrition Rate stands at 3. 79 . where both the individual employees as well as his superior is made aware of their roles and responsibilities. 5.

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

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

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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"Hospitals are beginning to implement retention strategies.  The "Hospital Attrition Benchmark Study 2002" is available from DBM's Retention Services Practice..2 percent versus a female rate of 14.3 percent The lowest attrition rate in the country occurred in the Great Lakes region where the female rate was 10. Employee Stock Option Plans: Employee Stock Option plans has been in existence in India for over a decade." said Joan Luciano. Measures To Curb Attrition 1.D. The focus on stock plans however began in the early nineties with the growth in stock prices and the IT Industry." Other key findings of the DBM study include: The total attrition rates for male and female employees were close with an average male rate of 15. 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. Infosys and Mastek. but this will be an ongoing priority as the need for an adequate number of healthcare workers increases.2 percent and the female rate was 24. combined with an increased demand for healthcare services. author of the study."The projected workforce shortages. The success of the 85 . are already at a crisis level.7 percent. The earliest large schemes were that of Wipro.5 percent and the male rate was 11. Ph.6 percent   The highest regional attrition rate in the country occurred in the Southeast where the attrition rate for males was 28. Hence the number of IT companies offering ESOP plans is still well below 50%. It was however only since 1996 that the true value of these schemes began to be understood by both employees and companies.

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

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

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

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

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

The former may be relatively lower in their potential as compared with the latter. which we may call 'Strugglers' and there are the 'under-performers'. There are people who are woefully inadequate in both dimensions. 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. 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. but contribute immensely to the company's overall performance.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. 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. This is the segment we do not want to lose. 91 . The other two segments comprise of the 'solid pro's and the 'stars' who are at the higher end of the performance continuum. whose performance falls below their potential.

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

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

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

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

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

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

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

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

Companies usually turn to increasing the compensation for employees to retain them. 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. CONCLUSION AND SUGGESTION 4.3 ² SUMMARY. Leaving employees want more meaning in their work meaning challenging the challenges. CONCLUSION AND SUGGESIONS 4." "company direction" and "interesting work" Clerical employees voice concerns such as "type of work. 30% of employees plan to change jobs in the next two years. 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. managing company's competent and skilled human capital is vital for success. They often indicate that they want to use their qualities and skills in challenging teamwork led by capable leaders. In today's taxing business climate.1 SUMMARY OF THE SYSTEM Employee attrition is a costly dilemma for all organizations.1 SUMMARY OF THE SYSTEM CHAPTER 4 SUMMARY." "use of skills and abilities" and "opportunity to learn" Hourly employees 100 . Most leaving employees seek opportunities that allow them to use and develop their skills. Managerial staff cite "career growth" and "leadership" as the major factors that influence attrition and retention. 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.CH. According to a study by Ipsos²Reid .

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

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

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

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

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

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

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

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

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

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

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. In research that Nobscot has conducted. Additionally. Once you provide employees the opportunity to tell you where the problems are. 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. it's imperative to act on the results of the employee satisfaction surveys as quickly as possible. This difficulty the urgency in which a company must act on the feedback provided in the exit interview. this theory has yet to hold up. Post Employment Exit Interviews One of the newest fads is conducting the exit interview after the employee has been gone from the company for 3 or 6 months. over 90% of companies conduct exit interviews. 111 . Exit interviews are one of the most widely used methods of gathering employee feedback. 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. it's difficult and time consuming to reach employees this far after employment has discontinued. the employee is expected to provide more valuable information in an exit interview if it is held six months after employment. With exit interviews.Exit Interviews conducted by over 90% of companies According to a study by the Society of Human Resource Management. Employers can take action on problem areas as they see fit without causing further concern among employees. Therefore. With employee surveys. you have a greater opportunity to review the data and look for trends over time. they expect immediate action on those problems.

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

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

2. ASSUMPTIONS: Money (including compensation. both through the challenge of work assignments and individual development. Second was the executive/management team. growth.4 . 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.SUMMARY. CONCLUSION AND SUGGESIONS 4. both in the tone they set by example and in their communication to the organization as a whole. The third was the opportunity for. Two elements comprised the fourth aspect: the work environment in general.CH. and the trust existing between people in the organization.3 SUGGESTIONS 4.3 SUGGESTIONS 1. 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 . benefits and stock options) was the most frequently mentioned aspect of the retention programs.

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

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

 Once we develop a compensation system that is fair. 1. What strategies and techniques do companies use to Hire Winners? and How do companies retain there key personnel? 117 . What commonalties involve everyone in the work place? 2.  Opportunities for growth & development.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. Top three ways to retain key employees. 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. equitable. The following article reflects information gathered from recently conducted executive leadership interviews that were conducted in two critical areas. and competitive in the market. bonus) was a distant seventh. the attention needs to be on employees as people. options.

Retention is much more effective when you put the right person into the right job. 4. 3. Show everyone the role they have to contribute to this vision.Save Money on Personnel Turnover and Increase Productivity « Retaining key personnel is critical to long term success of an organization. Your top 20-25% should be courted as you would court and then service your top customers.   It is cheaper to keep your good employees than it is to hire and train new ones. Get your employees to "Fall in Love"' with your organization. Some recently conducted research lists these Top Ten Strategies: TOP 10 RETENTION TIPS 1. Strong retention strategies become strong recruiting advantages. How do you get your employees to "Fall in Love" with your organization? This is a great question.  Communicate your Vision in a compelling way. Treat your employees like you treat your most valuable clients. 2. In fact. Know the job! Know the employee and their motivations. 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. 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. some companies do not have to recruit because they receive so many qualified unsolicited submissions due to their history of excellence in employee retention. 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. These assessments are also used as a powerful professional development tool to enhance the 118  . Create opportunities for people to connect with each other for support and to improve communication in work teams.

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

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

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

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

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

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

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