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

it's not any more. Getz 1.1L engine. 4 cylinder. This car sits between the Santro and Getz Prime presents itself as a good looking VFM family car.Even though the styling of the Verna seems contemporary you always end up comparing it with the Accent. The external additions of the body of the Verna seem to blend together with the shape and this sets it apart from the Accent The Tucson 2. Dual airbags provide very high level of safety. A very practical car. 16 valve engine comes with amazing power 122ps and 245Nm of torque.0 CRDi.3 is still available as top-end versions. Fuel economy had been a concern but with 1. This softroader is highly fuel economic and yet is very good at engine performance.2008 5 . Getz's space/comfort and Santro's engine make Getz Prime. There are options like ABS and airbags along with features like sunroof to opt for. All this in a small-car! Won Car of the Year . 1991cc.

000 units per annum. Hyundai Motor India. with exports of 126. HMIL has set up its second plant.2 percent over CY 2006. HMIL has set up its second plant.6 percent as compared to 2006 with 200. the Accent and the Verna in the C segment. raising HMIL·s total production capacity to 600. the Getz Prime and the i10 in the B+ segment.160 vehicles in the calendar year (CY) 2007. 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. it is gearing up to step up its foray into new markets. In continuation of its commitment to provide the Indian customer with global technology. which produces an additional 300. The year just ended 6 . the Sonata Embera in the E segment and the Tucson in the SUV segment. It achieved a significant milestone by rolling out the fastest 400. continuing its tradition of being the fastest growing passenger car manufacturer. In the domestic market it clocked a growth of 7.HMIL presently markets 34 variants of passenger cars across segments. The year 2007 has been a significant year for Hyundai Motor India. Hyundai exports to over 90 countries globally. raising HMIL·s total production capacity to 600. 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. the Santro in the B segment.000 units per annum.412 units. which will be increased from 232 to 260 this year. an increase of 9. Apart from expansion of production capacity. HMIL plans to expand its dealer network.000th export car.8 percent. while overseas sales grew by 11. registering total sales of 327. In continuation of its commitment to provide the Indian customer with global technology.000 units per annum.748 units. even as it plans to continue its thrust in existing export markets. quality and testing capabilities in the country.000 units per annum. which produces an additional 300.

CNBC-TV18 Auto Car.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. 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·. Last year. Hyundai cars have been a favorite at all awards ceremonies and have always been winning awards.000th export car. the ´Best Value for Money Carµ by the CNBC Auto car Auto awards and ¶Performance Car of the Year 2007· from Business Standard Motoring. the Hyundai Verna bagged some of the most prestigious awards starting with the title of "Car of the Year 2007" by India`s leading automotive publication ² Overdrive. In March 2008 it achieved yet another milestone by rolling out the fastest 500. HMIL has also been awarded the benchmark ISO 14001 certification for its sustainable environment management practices.500. the ´Best Mid-size Car of the Yearµ award by the NDTV Profit Car & Bike India Awards 2007.000th car. Not only this. 7 . The i10 bagged these awards on the basis of excellence in build quality. The i10 is also the choice of the discerning automotive media of the country as they conferred the prestigious ¶Indian Car of the Year· (ICOTY) award to the i10 as well. 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. NDTV Profit Car & Bike India and Overdrive magazine. 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). safety and ride quality. handling. driver comfort.

    Goals of HMIL: The ultimate goal is to join the ranks of the world·s top 10 automakers. 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. 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. Focus on developing advanced technology. 8 . 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. 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.

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

June 12 Hyundai Santro crosses 100.000th Car rolls out from the Chennai plant in just 19 months of since commencement of operations. 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.Milestones: 1996 May 06 Hyundai Motor India incorporated. 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. 10 . October 14 Launch of Hyundai Accent 2000 April 27 100.000 car sales. July 21 First major export-shipment of 760 Accent and Santro cars roll out of the Chennai Port for Algeria.

August 16 Hyundai Motor India launches Accent VIVA.1 Litre E-Epsilon engine on the new Santro Zip Plus. 2002 March 18 Global launch of 1. November 22 Santro ranked No 1 in JD Power Asia Pacific 2001 ´Initial Qualityµ study. November 26 Both Santro & Accent ranked No.7 V6. November 01 11 .000th car. October 10 Hyundai Motor India launches Accent CRDi. July 18 Hyundai Motor India launches luxury sedan Sonata. October 23 Hyundai Motor India launches Sonata 2.000th car from Chennai Plant in just 25 months.00. July 11 Hyundai Motor India introduces new look Santro.50. September 06 Hyundai Motor India launches Santro Automatic Transmission.November 01 Both Santro & Accent bag top honours in JD Power Asia Pacific 2001 ´IQSµ and ´APEALµ studies. 2001 June 12 Hyundai Motor India rolls out its 200.000th car in 32 months. June 26 Hyundai Motor India rolls out 3. 1 in JD Power Asia Pacific 2001 ´APEALµ study. November 29 Roll out of the 1.

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

Nov 17 HMIL introduced India·s Best Warranty for the 1st time in the history of Indian Automotive Industry ² 4 years/80. Jan 17 Getz awarded ¶Car of the Year 2005µ by CNBC ² TV 18. 13 .000 vehicles in export and emerged as the largest exporter in the automobile industry.000 sales in terms of annual sales. Jan 01 Accent Petrol ² was awarded the 'No 1 Entry Midsize Car' by TNS Automotive.00. Auto Car Auto Awards. Accent CRDi ² was awarded the 'No 1 Midsize Diesel Car' by TNS Automotive. The first Indian car to do so in its segment.061 units. October 31 HMIL crossed the figure of 1. India.2004 January 15 Launch of Accent Viva CRDi March 01 Santro crossed the figure of 1. Sept 10 Launch of Getz. Dec 25 Getz awarded ´Car of the Yearµ 2005 by Standard Motoring Magazine 2005 Jan 01 Santro once again becomes the largest selling brand in its segment. India. 00. April 15 Launch of Elantra. Dec 01 Santro becomes India·s largest selling single brand across segments with 12.000 km warranty for Sonata & Elantra.

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

June 01 Hyundai Motor India Receives EEPC(Engineering Export Promotion Council)¶Top exporter of the year· Award for 2005-06. January 04 Verna was awarded the ¶Best Value For Money Car 2007· by CNBC TV 18 Autocar Auto awards. 15 . January 12 Launch of Sonata CRDi.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. March 26 Hyundai Motor India ships out the first Getz.000th export car. April 19 Launch of Verna CRDi SX. 2007 January 03 Verna was awarded the ¶Car of the Year 2007· by Overdrive magazine. December 30 Verna CRDi was awarded the ¶Performance Car of The Year 2007· by Business Standard Motoring. April 02 Launch of Getz Prime.March 13 HMIL rolled-out the fastest 10. November 01 Santro crosses the million mark.00.

Over One lakh units of i10 exported since its launch in Oct 31 16 .000th car April0 4 i10 awarded ¶Car of the Year 2008· by ICOTY June 11 Fastest Export .June 27 Launch of Sonata CRDi Automatic.000th car Sep 01 HMIL rolled out the fastest 1.500.000th car Launch of Getz CRDi Oct 31 Launch of i10 Dec 29 i10 awarded ¶Car of the Year 2008· by Business Standard Motoring Magazine 2008 Jan 09 i10 awarded ¶Car of the Year 2008· by CNBC TV18 Autocar Auto awards Jan 10 i10 awarded ¶Car of the Year 2008· by NDTV Profit Car& Bike Jan 11 i10 awarded ¶Car of the Year 2008· by Overdrive magazine Feb 02 Inauguration of 2nd plant in Chennai March 27 Export of 500. Aug 06 Export of 400. July 04 Launch of Santro CNG.

September 10 10th Anniversary celebration and flag-off of ¶i drive to Paris· by Abhinav Bindra. Spain and Netherlands. The company has scaled up its export target from 8. HMI Exports: Hyundai Motor India. The company has already exported 6.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. as the Santro is badged in Europe. This included 710 units bound for Italy. Western Europe is globally the largest consumer of small / compact cars with the largest markets being Italy. Algeria. Morocco. September 30 Hyundai launches the dual fuel. 690 for Spain and 100 units for Netherlands. Netherlands and Belgium. Greece. the global compact cars export hub of the US$47 bn Hyundai Motor Group. The first export shipment to Europe since the announcement of HMI as the global export hub for Hyundai compact cars. flagship 'Santro' bound for Italy. this consignment will carry 1.966 units in FY 03 to 30.500 units of the New AtoS Prime.740 units YTD.500 units of its. Hyundai Motor India. Indonesia. October 02 i 20 launched in Paris Motor Show and display of ¶i drive to Paris· cars.¶Santro Eco·. started export shipment to Europe with a consignment of 1. Spain. Colombia. Nepal and Sri Lanka are currently some of the biggest export markets for 17 .000 units in FY 04.

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

19 .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.Car of the Year Compact Car of the Year Car of the Year 2008 Small Car of the Year 2008 Car of the Year 2008 PM Presents ´Star Companyµ Award to Hyundai Motor India Car of the Year . 2001 & 2002) CNBC-TV18 Autocar Auto Awards 2007: 'Best value-for-money car' Hyundai Getz is the CNBC Autocar Car of the Year 2005 Hyundai Elantra ² Best Value for Money Car of the Year 2005 Company ² Awards ² CNBC Autocar India ² Hyundai has been the manufacturer of the year for two years in row.

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

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

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

    

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



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

 

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

  

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

 

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

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



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CH.I - INTRODUCTION 1.2 CONCEPTS

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

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

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

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

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

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

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

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

has benchmarked 72. 29 . which translates into greater productivity and more profits. Inc. and a baseline by which future performance gains can be measured. and that can be improved via training and development". 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. attitudes and skills that affects a major part of one's job. This ritual of how-to training is referred to by Training House. a competency is "a cluster of related knowledge. Most importantly. as the annual ´sheep dipµ. The result is a greater transfer of classroom learning to on-the-job performance gains. Universally they identified twelve competencies that highly effective managers have in common that the average performers do not possess. not just personality changes.Thousands of organizations spend billions of dollars on skill training for managers. that can be measured against wellaccepted standards. a reduced learning curve. 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. 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. that correlates with performance on the job. training is focused on improving performance. According to Scott Parry.000 managers in 700-plus companies in dozens of industries in 17 countries. Training House Inc. Unfortunately these programs often deal exclusively with the ´how-toµ dimension.

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 .

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

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

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

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. but also help in identifying the "Employer Experience Score". thus increasing the "Association" and "Affiliation" with the organization. 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.

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

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 .

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

It may be asked whether the attributes are related or independent. With the help of chi-square test one can find out whether two or more attributes are associated or not. it can be inferred that the results do not support the hypothesis or in other words. It should be noted that Chi-square is not a measure of the degree or form of relationship. Suppose one has 'N' number of observation classified according to some attributes. The quantity Chi-square describes the magnitude of the discrepancy between the theory and observation.ANALYSIS 2. that the attributes are not associated hold good. If the calculated value of chi-square is less than the table value at a certain level of significance (generally 5%).1 ANALYSIS OF THE METHODOLOGY CHAPTER 2 ANALYSIS 2.CH. The Greek letter "X" was first used by Karl Pearson in the year 1990.1 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. which infers that the results of the experiment provides no evidence for doubting the hypothesis.2 . if the calculated value of chi-square is greater than the table value at a certain level of significance. It 40 . in other words the two attributes are independent. the attributes are associated. one takes the Null hypothesis that there is no association in the attributes under the study or. In order to test whether or not the attributes are associated. On the other hand.

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 reject Ho 41 .Total observed number in the jth column Eij .(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.Number of sample element observed to belong to the ith row and jth column Ri . Cj . than accept Ho Rejection region R: If calculated Chi-square greater than or equal to table value of Chi-square. It should be noted that Chi-square is not a measure of the degree or form of relationship. criteria of classification is summarized as follows: Ho .The rows and column classification are dependent Where.Total observed number in the ith row. The procedure for finding the independence of rows and columns.Eij )2i Eij Oij .The rows and columns classification are independent H1 . relationship. Chi-Square = L (Oij .

00 15. No .51 27.CHI-SQUARE: ORIENTATION & CONFLICT r r is r Ori t ti fli t t l Null Hypothesis H0 = Attributes are Independent.14 1.) = (r-1) (s-1) Where r s number of rows number of columns The number of degrees of freedom is (2-1) (5-1) = (1) (4) Expected frequency for 34 Calculation of ]2 S l.00 15. Degrees of Freedom (d.51 27.47 36.14 1 6 2 .4 9 42 ©      2  # # ¥¥ ¢© ¨   $   # & ¥¥ ¢¤    #% " Str l it r r r is r   ¥¥ ¢© ¨ £ ¢¡   Str l is r   ¥¥ ¢© ¨  ¦ ¥¥ ¢¤ ¥§ ¥¦ ¥¥ ¢¤ £ ¢¡      " t l     !  ©   .f.47 36.13 1.13 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.

the attributes are inter-dependent.05) > tabulated ]2 We reject the null hypothesis.05) for 4 degree of freedom 9.488 Since Calculated ]2 at 5% level (0.49 E Tabulated value of ]2 at 5% level (0.Calculated ]2 = § (O-E)2 = 162. 43 .

17 79.4 10.) = (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.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. No. (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 .83 (O-E) E 1 2 3 4 6 10 36 112.24 2 2 162 200 394 82 Sl.33 0.44 1.33 33.6 11.77 103.36 23.05 2.09 0.f. Degrees of Freedom (d.29 112.15 7.42 1.36 23.09 2.

991 Since Calculated ]2 at 5% level (0.24 E Tabulated value of ]2 at 5% level (0. the attributes are inter-dependent. 45 .05) for 4 degree of freedom 5.05) > tabulated ]2 We reject the null hypothesis.Calculated ]2 = § (O-E)2 = 7.

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

The company's total production capacity was recently increased to 350. The firm recorded combined sales of 111.00. while the Accent accounted for 2. With . 47 . Hyundai achieved 20.051 vehicles during the last fiscal year to March 2007. it has introduced the latest technology in car manufacturing and style keeping other competitors at bay.573 units (including exports of 1.000 cars a year. April'02 to March'03 Hyundai Motor India exported 8.000 crore turnover which is likely to increase to Rs 5. which was launched on May 22. During the last fiscal year Hyundai Motor India earned revenues of 40 billion rupees (850 million dollars). 2003.300 crore in the current year. The company had received overwhelming response from customers in India and distributors in Europe for Santro Xing.its Xing. in a short span of 10 Years. Santro sales accounted for 8.551 units (including exports of 601 units).699 units). HMC's unique . a 39 per cent growth.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. During the last fiscal year. In 2002 HMIL clocked Rs 4.STRENGTH Unlike other competitors.000 cars mainly to the South East Asian and African markets.000th car on Nov 2008.

However.1000 crore by the II part of 2007.000 Santro to Europe this year against a total export target of 30. The company also hopes to sell around 1.OPPORTUNITIES Hyundai of Korea is planning to shift its production base for Santro to India by the middle of this year. and make India as Global hub after Korea for Hyundai. Their plan is to export 70.5 lakh passenger cars in 2003-04 against 1.000 cars by 2005 to the Western Europe and North American markets. Hyundai proposed to invest $ 180 million in India within three years to enhance its plant's annual production capacity. which is being increased to 5 lakh at an investment of Rs. following which India will be the global base for sourcing the vehicle.000 vehicles. The company was also considering the possibility of scaling up its research and development (R&D) initiatives in India.000 cars. at present HMIL have provision for limited R&D. They have enough scope for enhancing R&D activities in India. 48 . HMIL's installed capacity stands at 3. to 350. HMIL hope to export around 20.12 lakh units sold in the previous year. HMIL has targeted a 25 per cent market share by 2005.5 lakh unit cars a year.

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

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

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

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 .r inate Reln. RANKING WEIGHTED AVERAGE METHOD: EXECUTIVES v Strongly gree ( ) Orient ti n Interpers nal Relati s ip Superi r Sub. managements commitment to build nurture a working organisation.Fact o r O r ien t a t ion C o m m un ic a t io n Su p e rio r S u b -or d ina te R eln . 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.

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

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

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 . 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. Mgmt Cadre) have also preferred effective communication followed by relationships and innovation. 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 .o r d in a t e R e l n . Subord. ² Problem Mgmt.Fa ctor C o m m u n ic a t io n Sco res 91 4 e ln . Communication ² 5*72 + 4*118 + 3*8 5*82 + 4*98 + 3*16 5*72 + 4*110 + 3*16 5*66 + 4*58 + 3*8 5*56 + 4*122 + 3*20 Interpersonal Reln. P r o b le m M a n a g e m e n t C o m m u n ic a t io n D e c is io n M a k in g R is k T a k in g In n o v a t io n C o n f li c t M a n a g e m e n t 72 82 72 66 56 20 52 90 2 A g re e (4 ) 11 8 98 11 0 58 12 2 90 68 72 16 N e ith e r A g r e e N o r D isa g re e (3) 8 16 16 8 20 16 4 28 48 D is a g re e (2 ) 0 0 0 0 0 6 0 2 46 St ro n g ly D is a g r e e (1 ) 0 0 0 0 0 0 0 3 20 Orientation Sup. Reln.o r d in a te d — = = = = = 856 850 848 586 828 55 .

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. 56 .

2 EXITING SYSTEM 2. of employees Resigned --------------------------------Total Manpower X 100 For Example: 289 -----------------.2 .X 100 5258 5. From this analysis its very tedious to take decision to retain the employees. There is no graphical representation and there is no pie chart. Attrition Rate = No.CH. The attrition is calculated by using the following formula in the existing system.2 EXISTING SYSTEM Existing Attrition Analysis system is very simple and too short.50 % Attrition Rate = = In the existing attrition analysis system having simple Tabular column based reports.ANALYSIS 2. 57 .

Designation Attrition Analysis Ratio : 58 .

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

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

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

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

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

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

ree N . Interpersonal ¶ ¶ ¶ · ¹ · 0% 0% ° ¶ ¶ ¶ · ¹ ¯ » ® · ¹ º ­ ± ¶ ¶ ¶ ¼ ¾ ± ·¸ ¶ ¶ ¶ ·¸ ¶ ¶ ¶ ·¸ · ½ µ µ µ ² ² ² ² ² ² ² ´ ³ ´ ³ 0% 0% 0% is a ree 0 0 0 0% 0% 65 .A g r e e N .ad re i se 60 50 55% 57% 55% 43% 34%36% Percen tag e % 40 30 20 10 0 % % 2% 1% Stro n ly 34 43 36 ree ree N. 8 2 8 is a ree is a ree 1 0 0 Stro n ly E E JE 55 57 55 NE 5. M g 60% t. Problem Management and Risk Taking though being marked as vital parameters. Decision Making aids in bringing down attrition. are low in terms of marketability compared to Orientation. Non Executive cadre ² 45% Agree] A n al y s i s : Dec i s i o n M ak i n g . Jr. Management and Non Executive cadres have been attributed effective Decision Making as important to Orientation [Jr. Management ² 52% Agree .An al ysi s: Su p eri o r Su b -o rd i n ate el ati o n s i p .J r . & 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 . 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.

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. [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. The majority [Strongly Agree ² 41%.A g r e e N .A gree N .Relationships & Communication. 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. 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 . Agree ² 52%]. Dis agree Dis agree Í Í Ë Í 0% trongly A gree N EX A gree N .A gree N . is agree Dis agree trongly A gree J EX A gree N . Dis agree Dis agree 4% 2% ÅÅ Å Å 5% 2 2 Å Å 4 4 4 Å Å Å 6 7 Å ÅÅ Å 25% 22 Å 31 Å Å Å Å Å Å 35% 32 33 34 Å Å Ä Ã Â À Á À Å 0% 0% ¿ A n a ly s is : r o b le g t is k a k in g Å Ê Ì É È Ç Æ Ô Ó Ò 66 .

A gree N. Di 30% 30% 24% gree Di gree S trongl E XE JE X NE X 4% 10% 1% 19% 15% 23% 10% 9. Disagree 6% 10% Disagree 1% 0% S trongl Disagree 0% 0% Orientation Interpersonal Relationship Inference(s) : Orientation ² 65% Agree and Interpersonal Relationship ² 53% Agree shows that Orientations aids better Interpersonal Relationship. Respondents feel Conflict at the workplace has less bearing on employee turnover [Neither Agree Nor Disagree ² 28%. 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. 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 . Structured Orientation aids better Relationships.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. Disagree ² 19%] An al sis : Co n flict an ag em n t .

Agree N. ü ø 30% ÷ ö 11. 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 . 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. A g re e N . Analysis : Effective ecision Making defuses o nflicts 50% 45% 40% 35% Percentage % 2 % 19% 9% 9% 5% N. Better Communication facilitates Good Relationship. Effective Decisions defuses Conflicts. 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 .10. 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.

A g re e N .12. Right Decisions avoids Risks. 13. Executive Decisions 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. ¤  § ¦ ý ig h t D c is io n s av o id s isks 45% 1% ¥  ¤     © ¢ ¡ 11% 5% N . 2% 2% 0% 0% D is a g re e 0% 0% 69 . Dis agree 17% 6% ec i s i o n M ak i n g v s S u p er i o r S u b -o r d i n ate el ati o n s i p 3 % 3 % ¨ ¨ P er c en tag e % 17% 1% 0% 0% 0% S trongl Dis agree 0% 0% Dis agree 1% 0% Inference(s) : Executive Decision Making ² 38% Agree and Superior Sub-ordinate Relationship ² 56% Agree shows that Executive Decision Making are appreciated and followed by subordinates.A gree N. 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.

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

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

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

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

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

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

Management initiatives centre around people.61% in the current year.96% and started declining from then to reach only 0. HMI has always provided an ambience for belongingness.47%) showcauses the efforts to imbibe a sense of togetherness amongst employees. 2.47%. 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. The rate of attrition was maximum in 1999 with 6. Be it welfare. Hyundai gives a very sound compensation package along with its excellent welfare and other benefits. The average attrition rate (3. If the industry has 200 employees and 20 goes out.Findings Rate of attrition depends on the number of employees and it does not reveal the actual facts.    76 . The rate of attrition in Hyundai Motor India Ltd. 4. It is not having even a single trade union till now which shows the harmonious relation between the management and the workforce. growth and development. Reasons for low rate of attrition: 1. compensation or recognition. 3. where the individual employee stands integral even to the most trivial decisions. which is one of the reasons for the low rate of attrition.

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

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

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. 79 .Suggestions: 1.47%). 5. 4. 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. 3. Shift Timings and distance have been major concerns at the Executive Level. Retention of Talent through customised progression both in future career plans and compensation (though Attrition Rate stands at 3. where both the individual employees as well as his superior is made aware of their roles and responsibilities. a) Organising periodic training programs b) Encouraging learning through sponsorship and internship c) Rewarding performance immediately and appropriately through recognition awards and citation. 2.

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

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

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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author of the study.6 percent   The highest regional attrition rate in the country occurred in the Southeast where the attrition rate for males was 28."The projected workforce shortages. "Hospitals are beginning to implement retention strategies.3 percent The lowest attrition rate in the country occurred in the Great Lakes region where the female rate was 10. Infosys and Mastek.2 percent and the female rate was 24. Employee Stock Option Plans: Employee Stock Option plans has been in existence in India for over a decade.7 percent." 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. Hence the number of IT companies offering ESOP plans is still well below 50%.  The "Hospital Attrition Benchmark Study 2002" is available from DBM's Retention Services Practice.. The success of the 85 . Ph. are already at a crisis level.D. Measures To Curb Attrition 1.5 percent and the male rate was 11. combined with an increased demand for healthcare services. The focus on stock plans however began in the early nineties with the growth in stock prices and the IT Industry. The earliest large schemes were that of Wipro. but this will be an ongoing priority as the need for an adequate number of healthcare workers increases.2 percent versus a female rate of 14." said Joan Luciano. It was however only since 1996 that the true value of these schemes began to be understood by both employees and companies. 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.

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

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

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

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

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

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. There are people who are woefully inadequate in both dimensions. 91 . which we may call 'Strugglers' and there are the 'under-performers'. We could call this as the "talent" segment. The former may be relatively lower in their potential as compared with the latter. The other two segments comprise of the 'solid pro's and the 'stars' who are at the higher end of the performance continuum. but contribute immensely to the company's overall performance. 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.HIGH Under P O E N I A 6 6 STARS Performers (10-20 %) (15-30 %) Strugglers (5-10 %) SOLID PRO·s (50-60 %) LOW Performance HIGH Exhibit I In the current scenario. whose performance falls below their potential. 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.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

ASSUMPTIONS: Money (including compensation. FUTURE RETENTION PROGRAMS AND PROGRAMS IN DEVELOPMENT  Future programs focused on money with benefit improvements in the lead twice as often as any element  Creating growth opportunities. and the trust existing between people in the organization. benefits and stock options) was the most frequently mentioned aspect of the retention programs. CONCLUSION AND SUGGESIONS 4. 2. both through the challenge of work assignments and individual development. both in the tone they set by example and in their communication to the organization as a whole.CH. Second was the executive/management team. The third was the opportunity for. 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 .4 . Two elements comprised the fourth aspect: the work environment in general.3 SUGGESTIONS 4. growth.SUMMARY.3 SUGGESTIONS 1.

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

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

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

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

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

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

These days we needs employees who can run 100 meter races rather than marathon. continually communicate with your employees and state your expectations of them. recreational activity. Just like the company.Conclusion: Retaining talent has always been a task every HR Manager would tread. what you expect of them. Therefore. what they did right. Show respect. Attrition across sectors and organisations has been an equally stressful aspect to deal with. and how you will measure their progress. When employees see the economy turn sour or cutbacks occur. To keep those fears from surfacing. that means we need people who can deliver immediately. Tell them what you want. it is impedient to check ´talent drainµ. 2. Below I am suggesting some of the measures. since it is found that the rate of trainees and less than 2 years experience have topped in attrition. 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. Though the attrition rate is below industrial standards. 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. especially during volatile or uncertain times. social space. each employee needs a clear focus. your people may 121 . A well integrated system that aims at providing an ambient and receptive workplace. 1. they naturally fear any change that could affect their own future.

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

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

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