A STUDY ON EMPLOYEE RETENTION

A
Report
On

Project Learning
Submitted To

EICHER TRACTORS, Mandideep

For the partial fulfilment of

Master Of Business Administration

Semester-3(2023-2024)

Submitted by:- Guided By:-

Aakansha Dhadase Partha Basu Sir

Plot no.1 near sector D, Industrial area, Mandideep Dist- Raisen 462046

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 ACKNOWLEDGEMENT

I take this opportunity to express my profound gratitude and deep regards to everyone who
supported me throughout the course of this MBA internship. I am thankful for their aspiring
guidance, valuable advice during the internship. I am sincerely grateful to them for sharing
their truthful and illuminating views on a number of issues related to the training.

I express my deepest thanks to Mr. Partha Sarthi Basu (HR) and Mr. Shriram Ambekar (HR)
for providing me proper guidance with the facilities and conducive environment for my
internship.

I express my deepest sense of gratitude to my mentors Mr. Deep Singh Bhadouriya (HR) and
Ms. Bhagyashree Shekhawat (HR) who helped me throughout my internship period and
made me familiar with the crux of the HR department.

I am also obliged to the staff members of EICHER TRACTORS, MANDIDEEP for the valuable
information provided by them in their respective fields. I am grateful for their cooperation
during the period of my study.

Date : 20-09-2023

Place:- Bhopal

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 DECLARATION

This is to certify that Aakansha Dhadase, I have completed the Summer Internship Project
titled “(A Study on Employee Retention)” under the guidance of Mr. Deep Singh Bhadouriya
and Ms. Bhagyashree Shekhawat at EICHER TRACTORS, Mandideep . This is an Original piece
of work & I have not submitted it earlier elsewhere.

Date : 20-09-2023

Place:- Bhopal

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 INDEX
S.nooo Contents Page no.
▪ Acknowledgement 2
▪ Declaration 3
▪ Summary 5
1. Introduction 6
2. Objectives of the study 7
3. Significance of the study 8
4. Scope of the study 9
5. Need of Employee Retention 10
6. Benefit of Employee Retention 11
7. Three R’s of Employee Retention 14
8. Retention involves 5 basic things 15,16
9. Strategies of Employee Retention 17
10. Reasons of Employee Retention 18
11. Challenges of Employee Retention 20
12. Research Methodology 22
13. Data collection 23
14. References 24
15. Conclusion 25

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 Summary

This is the internship report based on my two months internship program at Eicher Tractors
(TAFE) from 20-07-2023 to 20-09-2023 as a requirement of my MBA program. As being
completely new to the practical, corporate world setting, every hour spent in the HR
department gave me ample amount of experience.

This report includes insights into the working of HR department, its divisions and work
distributions. EICHER has a well-organized HR department that works in smooth and
conducive manner.

The various responsibilities that were assigned to me in my three months internship period
was Joining Formalities, On boarding activities, Employee Engagement , Employee Data
Management , and Training Need Analysis , Recruitment from Naukri.com.

As an intern, I realized that I was successful to gather a lot of significant learning experience
which would be helpful in my future endeavours. The department offered me ample space
and opportunities not only to learn but also to exhibit my skills as a HR trainee. I could use
my theoretical knowledge and understanding of HR Functions in practical situations while
performing various HR operations.

I also attempted to gather more information on the basic job functions of other departments
to have better understanding of the HR department as a whole. I successfully completed all
the tasks that were assigned to me during the internship.

With limited knowledge and experience I tried my best to make this report a much
understandable as possible and translated real world experience into a document.

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1.1 Abstract:- Employee retention is a challenging concern of the organization.
This stresses on Employee Retention strategies. Employees are the assets of the
organization. To retain skilful and committed employees in the organization.
Management should take care of employee’s satisfaction. The purpose of this is to
prove how employees retention is essential in this day and age, and if the organization
are not awake to the situation and immediate actions, are not taken to that effect,
what repercussions lay ahead and how they would affect the organization and the
industry.

1.2 Introduction:- Employee Retention is defined as a organization’s ability to

retain its employees . It can also be called as a process. In which the resources are
motivated and encouraged to stay in an organisation for a longer period of time for the
sustainability of the organization.

The ultimate aim of employee’s retention is to make both the stakeholders i.e.
employees and employer happier. It facilitates loyal employees sticking to the company
for a longer duration, which in turn will benefit both the stakeholders.
Employees’ retention is not just a matter that can dealt with records and reports. It
purely depends upon how the employees understand the various concerns of the
employees and how they help them resolve their problem when they are in need. Every
organization spends time and invests money in grooming new employees and makes
corporate ready. The organization will be incomplete loss, if such employees quit after
they are fully trained the organization is completely at loss when the employees leave
their job once they are fully trained. Employees retention takes account the various
measures taken so that so that an individual stays in an organization for the maximum
period of time. Research says that most of the employees leave an organization out of
frustration and constant friction with their superiors or other team members. In some
case low salary, lack of growth prospects and motivation compel an employee to look
for a change. The management must try its level best to retain those employees who
are really important for the system and are known to be effective contributor.

1.3 ORIGIN OF EMPLOYEE RETENTION

Employee retention in INDIA, like in many countries, stems from a combination of

factors such as job satisfaction, career growth opportunities, work-life balance
compensation and benefits. a positive organizational culture, and effective
management. Companies that prioritize these aspects tend to have better retention
rates. Employee retention strategies in India have involves over time. Initially,
organizations in India focused on traditional methods like job security, seniority based
promotions, and stable work environment to retain employees however with changing
work dynamics globalizations and a younger workforce, companies began adopting
more modern approaches such as offerings competitive salaries, flexible work
arrangements, skill development programmes and creating positive work culture .These
strategies aimed at engaging employees and fostering a sense of belonging ultimately
leading to improves retention rates.

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2. Objectives of Employee Retention

To study about the employees retention in the organization

To ascertain the problems of the employees in the organization.

To identify how retention strategy reduces employee turnover.

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3. Significance of retaining the employees

Employee retention is not about the managing retention. It is not about mananging
people. If an organization managers people well, rtention will take care of itdself. Peole
want to work for an organization which provided : Application for the wotk done. Ample
opportutnities . A friendly and cooperatives enviornment. A feeling that the
organization is second home to employees. Employees retention has become a major
concern for the organizations.In a nutshell, epmloyee retention is significant for financial
savings, maintaining a positive work culture preserving knowledge and fostering overall
business success.

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4. Scope of the Study

The scope if employee retention encopasses strategies and practices aimed at keeping
valuable employees within an organization. This includes fostering a positive work
enviornment ,offering competitive compensation, opportunities for growth,work-life
balance recongnition and addressing their needs and concrens . Effective employee
retention contibutes to higher morale,lower turnover rates, and improves
organizational performance.

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 5. Need of Employee Retention

1 Cost Effectiveness: Hiring and training new emploees csn be expensive. Retaining
experienced staff helps save recruitment staff helps save recruitment ,
onboarding,and training costs.
2 Productivity and Knowledge: Long term employees have a deep understanding
of the company’s processes ,culture industry.
3 Morale and Engagement: When employees seee opportunity for growth, feel
valued,and gave positive, relatiionships with the their and supervision their job
saatisfaction and engagement increase leading to higher morale.
4 Team cohesion : High turnover can distrupt team dynamics and affect
collaborations. Retaining employees fosters a sense of continuity and stability within
teams .
5 Company culture : Long term employees help shape and maintaining the
companys culture contributing to a positive work enviornment and employees
satisfaction.
6 Customer Relation : Employees who have been with the company for a while
tend to build stronger relationships with customers enhancing customer
statisfaction and loyalty.
7 Innovations: Stable teams have the opportunity to dvelop deeper insights into
challenges and find innovations solutions due to their familarity with the companys
operations.

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6. BENEFITS OF EMPLOYEE RETENTION

Benefits of Employee Retention doesnt limit itself to the domanin above mentioned
points. Despite that it is also surrounded by the cost saving, productivity and eeficiency,
knowledge retention, employe engagement, positive company culture, reduced
disruption,employee development, innovation and creativity,customer
relationship,leadership pipelines ,reduced training time , stability and reputation

In summary, employee retention contributes to finanancial services, improves

productivity, a positive work cukture,an long trerm success. Its strategic investment
tha benefs both employees and the organization as a whole .

Turnover
leads to
more
turnovers

Loss of
Regaining company
efficiency knowledge

Interruption The cost

of customer of
service turnover

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 Managing Employees three Stages

Implement retention
strategies
Understood why
employees leave

Identify cost of
employees turover

The organization should start with the identifying the employees turnover rates within a
particular time period and benchmark it with the competitor organization. This will help in
assesing the whether the em[ployees retention rates are are healthy in the company.
Secondly the cost of the employee turnover can be calculated. On an average ,attritioon
costs 18 month salary for each manger or professional leaves and 6 months pay foer each
hourly employees who leaves his or her job in the next two years .

There are some factors such as personal premises of loyalty, trust,commitment , and
identification and attachment with the organization have a direct influence or employee
retention and workplace factors such as rewards , leadership style, career opportunities , the
trauining and development of skills ,physical working condidtiins and the balance between
professional and personal life have an indirect influence.

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 Employee Retention involves five basic
things
1. Compensation and benefits
2. Career growth and development
3. Work life balance
4. Job Satisfaction and engagements
5. Effective leadership and communications.

Compensation
and benefits

Workplace
culture
Work life
balance

Career
Development

Recognition
and feedback

1. Career development:- Providing opportunities for skill development growth and

advancement within the company.

2. Compensation and benefits :- Offering competitive salaries,bonuses,and benefits

to attract and retain employees.

3. Work-life balance :- Supporting a healthy balance between work and personal life
to prevent burnout.

4. Recongnition and feedback:- Recognizing and rewarding employees contributions

and providing constructive feedback.

5. Work place culture:- Creating a positive and inclusive enviornmnet where

employees feel valued and engaged.

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7. THREE R’S OF EMPLOYE RETENTION

RECOGNITION

REWARDS RESPECT

RESPECT:- Is esteem , special regard, or particular consideertaon given to people. As

the pyramid shows the foundation of keeping your employees. Recongnition and rewards
will have the little effects if you dont respect employees.

RECONGITION :- Is definesd as a “special notice or attention ‘ and ‘the act of

perceiving clearly.’Many problems with retention and morale occur because management
isd not paying attention to people’s need sand reactions.

REWARDS :- Are the extra perks you offer beyond the basics of the of respect and
recongnition that make it worth perople while to work hard, to care, to go beyond, the
call of duty while rewards represent the samleest portion of the people retention
equation ,they are still an important one

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 ENVIORNMENT

A motivated employee wants to contribute

to work areas t outside of his specific Job
Description. A suitable work environment is
the need of an employee in an organization
as it will encourage commitment.

Job satisfaction is priceless, incomparable

and invaluable. Hopeless employees
negatively upsetting the desire level of
work. A little amount of employees which
are satisfied with their work not only effect
the performance but also the work
environment affects the performance of
employees a swell as organizations.

Retention involves five basic things
RELATIONSHIP
Sometimes the relationship with the
management and the peers become the reason
for an employee to leave the organization. The
management is often not able to provide an
employee a supportive work culture and
environment in terms of personnel and
professional relationships. A supportive work
culture and environment in terms of personnel
and professional relationships, A supportive
work culture helps in grow employees
professionally and boosts employee’s
satisfaction. There are times when an
employee starts feeling bitterness towards the
management or peers, which leads satisfaction
and eventually attrition.

SUPPORT
Employees today are asking for a work place that
helps them balance the demands of their work and
family lives , rather than forcing them to one over
the others . Schemes like special for their children ,
scholarship, medical benefits, trainings etc.

People employee and express themselves

physically, cognitively and emotionally during role
performance employee engagement with the
definition: “an employee’s involvement with the
commitment to, and satisfaction with work .
Employee engagement is a part of employees
retention.
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 GROWTH
Growth is integral part of every individuals
career . If employees cannot for seas his
path of career development in his current
organization there are chances that he’ll
leave the organization as soon as he gets
an opportunity. Work growth is the effect
of employee performance in the
organization as well as the results of
organizational . The growth and
productivity is the ultimate result of
employee behaviour such as performance ,
retention, satisfaction of employees.

COMPENSATION
Retention involves five basic things
Compensation constitutes the largest part of
the retention process. The employees always
have high expectation regarding their
compensation packages.. Compensation
includes Salary and wages , Bonus, health
insurance, after retirement benefits .

Compensation to top workers is given by

every organization but very few organizations
uses it strategically . They said that “ salary
and benefits policies are not being
strategically, within the organization to
improve morale reduce turnover ,and achieve
targets within an establishment .In a research
it was concluded was not one of the top
factors influencing non management
turnover but compensation can act as a
critical factor in reducing managerial turnover
and increasing commitment .

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9. STRATEGIES OF EMPLOYEE RETENTION

Competitive Compensation

Employee Recognition Program

Flexible work arrangement

Regonition and Rewards

Human and well -being initiatives

Effective communication

Positive work enviornment

Regular feedback

Workplace Flexibility

Employees survey

Transparent growth opportunities

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 9. Strategies of Employee Retention :-

1. Competitive compensation :- Ensure that salaries and benefits are competitive

within industry to attract and retain top talent.
2. Career growth and development :- Offer clear paths for advancement and
provides opportunities for employees to learn new skills and take on more
responsibilities .
3. Flexible work arrangement:- Allow for remote work, flexible hours, or
compressed workweeks to accommodate employees work-life balance needs .
4. Recognition and rewards :- Implement programs that acknowledge and reward
employees efforts and achievements.
5. Health and well-being initiatives :- Provide wellness programs gym membership
or mental health support to promote employees overall well being.
6. Effective communication:- Foster open and transparent communications between
employees and management addressing concerns and keeping them informed about
company developments.
7. Positive work environment:- Cultivate a welcoming and inclusive workplace
culture where employees feel respected, valued and part of a supportive community
8. Regular feedback:- Offer consistent feedback on performance both positive and
constructive to help employees improve and feel engaged.
9. Work place flexibility :- Allow employees to have control over their work
environment whether through remote work options or personalized office setups.
10. Employee Survey:- Conduct regular surveys to gather feedback and insights from
employees about their experience and satisfactions levels.
11. Transparent growth opportunities:- Clearly outline potential career paths and
advancement opportunities available within the organization.

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 10. REASONS OF LEAVING THE COMPANY

1. Better opportunities:- Seeking career advancement, higher salaries, better

benefits or improves job roles elsewhere.
2. Lack of growth :- feeling stagnant in their current role with limited opportunities
for sill development or career progression .
3. Poor management:- dealing with ineffective leadership, lack of communication or
micromanagement.
4. Work-life balance:- Struggling to find a healthy balance between work and
personal life, leading to burnout.
5. Lack of recognition :- Not receiving adequate acknowledgement or rewards for
their contributions an efforts.
6. Job dissatisfaction:- Being unhappy with the task, responsibilities or
challenges associate with their current roles.
7. Unfulfilled expectations :- A disparity between the initial job description or
promises made during recruitment and the actual job responsibilities.
8. Career shifts:- Pursuing a different career path ,transitioning to a different
industry, or exploring entrepreneurships.

Better opportunities

Lack of growth

Poor management

Work life balance

Lack of Recognition

Job dissatisfaction

Career shift

Unfulfilled Expectations

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 11. CHALLENGES OF EMPLOYE RETENTION

Changing
Competition Lack of career
workfporce
for Talent development
expectations

Inadequate Poor Unhealthy

compensation management work culture

Mergers and Remote work

Skills mismatch
acquisitions challenges

1. Competition for talent :- In a competitive job market employees have more

options and may be enticed by better offers from other companies.
2. Changing workforce expectations:- Modern employees often seek
meaningful work, flexibility, and opportunities for growth which can be difficult for
some companies to provide.
3. Lack of career development:- If modern employees often seek meaningful
work, flexibility and opportunities for growth, which can be difficult for some
companies to provide .
4. Inadequate Compensation: - Employees who feel underpaid relatives to their
skills and market rates ,may be tempered to leave for better pay .
5. Poor management:- Ineffective leadership lack of communication of
micromanagement can lead to dissatisfaction and turnover.
6. Unhealthy work culture:- A negative toxic work environment can push
employees to seek more positive workplaces.
7. Mergers and acquisitions: - Organizational changes resulting from mergers or
acquisitions can lead to uncertainty and workforce reshuffling.

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8. Remote work challenges:- With the rise of remote work, employees may seek
opportunities that offer more flexible ore remote options .
9. Skills mismatch :- Rapid technological advancements can lead to a skill gap,
causing employees to leave for roles hat align better with their expertise.

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12. Research methodology

An integrated research model was developed by combining principal factors from

existing literature. The validity of the model was tested by applying structural equation
modelling (SEM) to the data collected from 550 employees of the selected
pharmaceutical industries. The reliability and validity of the dimensions are established
through confirmatory factor analysis (CFA) and related hypothesis tested using SEM.

The present study roles relate to the role of the

Employee Retention practices in various industries. Descriptive research was applied
for the talent retention of the research study. Information is been collected from the
secondary data. The main aim of the research is to find the Employees satisfaction and
also regaining of the talent in an organization.

The res3earch was undertaken in the industry and the analysis based on cross
sectional data which cannot be generalized across a boarder range of sectors and
management of various organization .HRM practices to influence and shape the skills,
knowledge and behaviour of employees and inordinately enhance organizational
effectiveness.

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13. Data Collection

Secondary data have been collected for the purpose of this study. Data information
gathered by feedbacks, gatherings, discussions, interview with various personnel and
employees of the sectors.

Whereas the data is also been collected from the

• Journals
• Newspapers
• Tribunals
• Internet resources.

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14. References

1. Survey report by the Delhi –base associate chambers of commerce and industry
2. Latest Human Resources trends by the STANTON CHASE ATHENS

3. http://www.wikipedia.com

4. http://www.workforce.com

5. Jeffrey A. Mello, Strategic human resource management. Thomson south western

2nd ed 2024, pp 101-102

6. Asia pacific total rewards survey 2017

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15. Conclusion

Your best employees will leave, it might be today or tomorrow but a day will come
when your best and brightest will depart for greener pastures, and that’s ok. The best
an employer can how is to do is meet employee expectations today. The need for
organization to retrain their talents is crucial for their ability to remain in business
depends on it. Although this study attempted to bring roles of HR of different
organization, complex areas of human resource need further investigations. As such it
is important for the company to improve and implement these retention factors by
providing better working style, good pay and career progression opportunities to the
talented employees. As we have seen in our research that there are several roles
which affect retention in different organizations but I have also mentioned the major
roles which leads to employee motivation in all organizations.

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