Submitted by Saumya Gupta Enrollment No. : 1208025887 ______________________________
I n partial fulfillment of the requirement
For the award of the degree
Of MBA
I N Human Resource Management
May 2014
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Acknowledgement:
I am really thankful to Shivani Sukhija Faculty Mentor, under whose guidance and assistance I was able to successfully complete my project. I owe profound gratitude to them for giving me their valuable time, advice, guidance, encouragement and help during the course of my project. I would like to sincerely thank the institute also for giving me this opportunity of taking up such a challenging project which has enhanced my knowledge about the organization. Last but not the least; I would like to express my deep sense of gratitude and honor to every person who created a congenial atmosphere for successful completion of this report.
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Bonafide Certificate:
Certified that this project report titled EMPLOYEE RETENTION IN FMCG INDUSTRY is the Bonafide work of SAUMYA GUPTA who carried out the project work under my supervision.
Signature Signature (Saumya Gupta) (Head of Department)
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Executive Summary:
Introduction These days, corporate across the world (Particularly in India) are facing a difficult task of Employee Retention. Once, there was a time when people use to join one company and then use to serve that company, till the age of retirement. Such a loyalty is not seen in this century and era. People are shifting companies at an enormously faster rate. Over the next few years while the Baby Boomer generation (ages 40-58) begins to retire, the much smaller Generation X (ages 25-34) will be filling those empty jobs. The result: there will be fewer people available in the workplace. With this problem looming in the near future, companies must rely on employee retention as the key objective to ensure long term stability and success of their businesses. Knowing why employee retention is important and how to be successful at it must be at the top of every companys to-do-list. After all, great companies made up of great employees. Importance of Retention Retaining its best employees, a company can improve customer satisfaction, product sales, satisfied coworkers and staff, effective succession and imbedded organizational knowledge and learning.
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Losing a valuable member of its staff can cost a company much more than money. When employees leave, often times they will take with them:- Intellectual property, Relationship, Investment (time & money) , Clients or other employees. Each year business spend billions of dollars recruiting and replacing their employees. It takes $7000-$14000 to replace a typical employee, and to replace a key manager costs the same as buying a Lexus. In spite of the staggering cost, the majority of businesses do not have a formal retention program.
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TABLE OF CONTENT Sr.No Topic Page No CH1 EXECUTIVE SUMMARY 04 CH2 OBJECTIVE OF THE STUDY 07 CH3 SCOPE OF THE STUDY 08 CH4 INTRODUCTION OF THE TOPIC 09 CH5 LITERATURE REVIEW 62 CH6 RESEARCH METHODOLOGY 73 CH7 DATA ANALYSIS & INTERPRETATION 75 CH8 FINDINGS 110 CH9 LIMITATIONS 111 CH10 RECOMMENDATIONS 112 CH11 CONCLUSION 113 CH12 BIBILIOGRAPHY 114 CH13 ANNEXURE-QUESTIONNAIRE 115
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OBJECTIVE OF THE STUDY
To determine the retaining and maintaining strategies.. To suggest appropriate strategies to improve employee retention and motivation. To assess the effectiveness of the retention polices in a big consumer durable company as VIDEOCON. To identify the problem in employee retention. To identify the factors which affect the morale in order to improve their motivation
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SCOPE OF THE STUDY Employee retention is supremely important in an organization because it is what productivity depends on. If your employees are satisfied they would retain in the organization for longer period of time and produce superior quality performance in optimal time and lead to growing profits. Satisfied employees are also more likely to be creative and innovative and come up with breakthroughs that allow a company to grow and change positively with time and changing market conditions. The study is done to know the following things:- Reasons of employee retention. How many employees are satisfied by their Job? This study tells us how much the employees are satisfied and what are the factors which affect the employees to leave the organization. To know the strategies used by the various companies to retain their employees.
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INTRODUCTION OF THE TOPIC EMPLOYEE RETENTION
Employee retention is a process in which the employees are encouraged to remain with the organization for the maximum period of time or until the completion of the project. Employee retention is beneficial for the organization as well as the employee. Retention is more important than hiring knowledgeable people as there is no dearth of opportunities for talented persons todays world of intense competition.
Employee retention refers to the various policies and practices which let the employees stick to an organization for a longer period of time. Every organization invests time and money to groom a new joinee, make him a corporate ready material and bring him at par with the existing employees.
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5 Crucial stages of employee retention
The best way to improve your employee retention is to create a strategy that
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you can systematically deploy which will address all of the essential elements of staff retention. When it comes to creating a retention strategy, there are the 5 main areas you want to have covered. This is not meant to be an exhaustive article on each stage but rather an overview of some of the things you want to be thinking about for each one.
Attraction Think of being single, and putting your best foot forward to attract a date. The more attractive you appear as a place of employment, the more interested most qualified applicants will be. The more applicants, the more choice, and the better chance you have of picking top-notch people. The question is, how attractive are you? It doesnt matter how attractive you think you are. What do others think of you? What is your brand (reputation) as an employer? Most organizations do no have a brand because they do not put any effort into creating one. Size does not need to stop you from creating a brand as an employer of choice. Gone are the days where the only marketing you did was for your product. Now also you have to give thought to marketing your image as an employer. You may be the best place to work on planet earth but if no one knows about you, then you will not create the attraction you are looking for. First determine what you want to be known for, then figure out how to get the word out. Many companies are doing some innovative things these days to become attractive. Placing a job
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offering in the classified section is not one of them. Hiring From the moment someone interviews to the time they sign a contract is the hiring period. Often we think the hiring process only includes those we end up hiring, but in reality, anyone who interviews for your organization is a part of this period. Think of the hiring stage as having multiple people over to your house for dinner, one after another. You will have far more guests than you have spots at the table. Eventually one will be chosen. What about the other 5 who sat down with you? As they leave your house, what will they say about you? How you handle the applicants you rejected will do a lot to shape your reputation as an employer. I heard of one firm offering movie passes to anyone who took the time to come in for an interview. Its a small touch, but it makes an impact. Interviews are like first dates. Both parties try to impress the other, and because a lot is on the line, candidates have their inner radar dialed up to spot any kind of flaw, imperfection, disorganization etc. Make sure this process is smooth, planned, and professional. When was the last time you took a good look at your hiring process to find ways that it could be better, faster, and more compelling?
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On Boarding The first 90 days is all about connections. There are numerous studies that show a new employee can make up their mind within the first week whether or not they will stick around for the long haul. This is your chance to rope them in. Most companies do a good job of supplying people with information for their role but do a poor job when it comes to the more important connections like relationships. Emotional connections need to be forged quickly for a new hire. You want to make sure you connect them to the team, to their manager, and to their role, in the context of how it affects the company. These connections naturally happen for some but for most people they need a little help. In my workshop on retention I outline in more detail how to create an on-boarding plan that you can use to help cement new hires to your organization. The key is to create a step-by-step process that helps new hires make those essential connections early.
Length of Stay This is really the duration that someone stays with your organization. Your goal is to increase the length of stay for each employee. The ultimate goal is to make your organization their last stop before retirement. This is where the bulk of your retention efforts need to be focused. It is always more efficient to put your energy into employee retention than employee acquisition. Take
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care of what you have. This is where the bulk of my training is focused. You want to create an engaging workplace, and you do that with inspiring leaders who know how to lead people and manage projects. You want to make sure you have a healthy culture of challenging and exciting work, great teams, rewards and recognition, training and development, fun, and inspirational leadership Inspiring leaders: know how to communicate and create a compelling vision; solicit input; are enthusiastic about their role; set great examples; foster great culture; and, sincerely care about their people. Equipping your mid-level managers to create engaging workplaces is where the bulk of your training time should be spent. Departure Everyone will leave your organization! Even you. The best-case scenario is that people leave to retire. But for everyone else, how we say goodbye will do a lot to affect the first point we discussed Reputation! When any employee decides to leave a company it is never an easy decision. There are many fears and anxieties involved as an employee severs ties. As a boss you may be hurt, angry, bitter or maybe even happy. The key is emotional management. If you ever want a chance of seeing them come back again, then let them leave on a good note. If you never want them to come back again, let them leave on a good note. Everyone that leaves your organization on bad terms is like negative advertising for your organization. They can be a poison that leaks into the talent pool you so desperately want to tap into. It
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does not take much to create a process that ensures almost everyone leaves on a good note. You also want a way to keep in touch with those who have left. Treat them like alumni, or extended family. If you can keep in touch occasionally via email news bulletins or other means, you are able to keep your organization on their minds. This is especially great when their new workplace is giving them grief and you just happen to send them a cheery email that same day! Keeping an alumni who left your company on good terms is like having unpaid recruiters out in the field for you. When you need a spot to fill you can send word out to your alumni asking if they know anyone who they could refer for the position. Add in some kind of paid compensation for referrals and you can build a powerful force that is always keeping your pipeline of new recruits full. If you can create a strategy that eventually covers each of these stages I have mentioned, you will begin to see a dramatic difference in your retention rate. As more people stay in your organization longer, you will see an incredible transformation in morale, your culture, productivity and overall fun. For starters pick something easy that you can address like a strategy for those departing, and then move on to some of the bigger more complex issues. If you need some ideas, give me a call.
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Importance Of Employee Retention Now that so much is being done by organizations to retain its employees, why is retention so important? Is it just to reduce the turnover costs? Well, the answer is a definite no. Its not only the cost incurred by a company that emphasizes the need of retaining employees but also the need to retain talented employees from getting poached The process of employee retention will benefit an organization in the following ways: The Cost of Turnover: The cost of employee turnover adds hundreds of thousands of money to a company's expenses. While it is difficult to fully calculate the cost of turnover (including hiring costs, training costs and productivity loss), industry experts often quote 25% of the average employee salary as a conservative estimate. Essentials of Employees retention process. Hiring is not an easy process: The HR Professional shortlists few individuals from a large pool of talent, conducts preliminary interviews and eventually forwards it to the respective line managers who further grill them to judge whether they are fit for the organization or not. Recruiting the right candidate is a time consuming process. An organization invests time and money in grooming an individual
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and makes him ready to work and understand the corporate culture: A new joinee is completely raw and the management really has to work hard to train him for his overall development. It is a complete wastage of time and money when an individual leaves an organization all of a sudden.; a mere duplication of work. Finding a right employee for an organization is a tedious job and all efforts simply go waste when the employee leaves When an individual resigns from his present organization, it is more likely that he would join the competitors: In such cases, employees tend to take all the strategies, policies from the current organization to the new one. Individuals take all the important data, information and statistics to their new organization and in some cases even leak the secrets of the previous organization. To avoid such cases, it is essential that the new joinee is made to sign a document which stops him from passing on any information even if he leaves the organization. Strict policy should be made which prevents the employees to join the competitors. This is an effective way to retain the employees. The employees working for a longer period of time are more familiar with the companys policies, guidelines and thus they adjust better: They perform better than individuals who change jobs frequently. Employees who spend a considerable time in an organization know the organization in and out and thus are in a position to contribute
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effectively. Every individual needs time to adjust with others: One needs time to know his team members well, be friendly with them and eventually trust them. Organizations are always benefited when the employees are compatible with each other and discuss things among themselves to come out with something beneficial for all. When a new individual replaces an existing employee, adjustment problems crop up. Individuals find it really difficult to establish a comfort level with the other person. After striking a rapport with an existing employee, it is a challenge for the employees to adjust with someone new and most importantly trust him. It is a human tendency to compare a new joinee with the previous employees and always find faults in him. It has been observed that individuals sticking to an organization for a longer span are more loyal towards the management and the organization: They enjoy all kinds of benefits from the organization and as a result are more attached to it. They hardly badmouth their organization and always think in favour of the management. For them the organization comes first and all other things later. It is essential for the organization to retain the valuable employees showing potential: Every organization needs hardworking and talented employees who can really come out with something creative and different. No organization can survive if all the top performers quit. It is
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essential for the organization to retain those employees who really workhard and are indispensable for the system. The management must understand the difference between a valuable employee and an employee who doesnt contribute much to the organization. Sincere efforts must be made to encourage the employees so that they stay happy in the current organization and do not look for a change. TIPS FOR RETENTION
Find a good match Long-term job retention for any client, regardless of employment barrier, starts with helping the individual find a job that fits his or her interests, skills, and schedule. A person who is shy or anti-social should not work in a customer service position. A parent with young children at home typically does not do well in jobs where work shifts change from week to week. Make sure to ask your clients what type of work tasks and environment they think they would like. Additionally, conduct site visits with employers before and after your ex-offender client is hired to ensure that the workplace environment is a good match for your client. If practical, arranging an internship or day of job shadowing can help your client decide if he or she enjoys the environment and tasks linked with the jobs. There are many career
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interest assessment tools that can help individuals answer this question. For more information about finding a good match for your client, visit our career counselling section.
Provide intensive follow-up case management The first three months after your client starts a new job are the most critical. There is a significant period of adjustment and ex-offenders must now adapt to the new, sometimes unspoken, rules of the workplace. It is possible that something will go wrong for your client during the first three months that can harm his or her ability to stick with the new job placement. If your client is not a natural at creative problem solving, these unexpected circumstances could threaten his or her ability to succeed in a new job. You should check-in with your clients as much as possible during the first three months to help them navigate any challenges that arise. It is also a good idea to talk to your clients about how you will be communicating with them so that they will be expecting your calls or visits. Once your client has been in a job for several months and feels comfortable with his or her surroundings, routine, and job expectations, your contact with him or her can become less frequent. Be sure to send the message to each client that there is an "open door policy" for calling you when problems arise at work. Some agencies have set up job problem hotlines for clients to call when they need to talk with a counselor about how to handle conflicts with
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work colleagues or how to resolve other problems they have encountered.
Coordinate with probation/parole officers By the time your ex-offender client gets a job, you have probably made contact with his or her parole or probation officer. If you haven't yet, you should do so immediately. It is important that the parole or probation officer knows your client's work schedule, so that conflicting appointments can be avoided. Determine the employer's satisfaction In addition to checking in regularly with your client in the beginning, you should make contact with his or her employer. Your contact will likely be someone in the human resource office or your clients supervisor. Ask the following questions: How your client is doing: Is he showing up on time? Is she getting along with others? Is he responding to instruction? Is she performing her job duties well? Most employers will appreciate this follow-up and will sometimes even call you to intervene when something is not going well. You should continue to reach out periodically to these employers; do not be offended if you do not get a response. Visit our section on working with employers for more information.
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For ex-offenders who are in recovery, teach self-awareness and develop relapse prevention plans. Relapse is most typical within 30 days of release from prison. According to "Offender Retention" by Melissa Houston, Job Retention Project Director for the National Institute of Corrections, practitioners can improve job retention of ex-offenders in recovery by encouraging clients to identify their relapse triggers, rehearsing responses to high-risk situations, and developing an employment plan that minimizes obstacles. 5 MAJOR THINGS OF EMPLOYEES RETENTION.
1) Compensation Compensation constitutes the largest part of the employee retention process. The employees always have high expectations regarding their compensation packages. Compensation packages vary from industry to industry. So an attractive compensation package plays a critical role in retaining the employees. Compensation includes salary and wages, bonuses, benefits, prerequisites, stock options, bonuses, vacations, etc. While setting up the packages, the following components should be kept in mind:
2) Salary and monthly wage: It is the biggest component of the compensation package. It is also the most common factor of comparison
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among employees. It includes o Basic wage o House rent allowance o Dearness allowance o City compensatory allowance Salary and wages represent the level of skill and experience an individual has. Time to time increase in the salaries and wages of employees should be done. And this increase should be based on the employees performance and his contribution to the organization.
Bonus: Bonuses are usually given to the employees at the end of the year or on a festival. Economic benefits: It includes paid holidays, leave travel concession, etc. Long-term incentives: Long term incentives include stock options or stock grants. These incentives help retain employees in the organization's startup stage. Health insurance: Health insurance is a great benefit to the employees. It saves employees money as well as gives them a peace of mind that they have somebody to take care of them in bad times. It also shows the employee that the organization cares about the employee and its family. After retirement: It includes payments that an Employee gets after he retires like EPF (Employee Provident Fund) etc.
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Miscellaneous compensation: It may include employee assistance programs (like psychological counseling, legal assistance etc), discounts on company products, use of a company cars, etc.
2) Growth and Career
Personal growth and dreams: Employees responsibilities in the organization should help him achieve his personal goals also. Organizations cannot keep aside the individual goals of employees and foster organizations goals. Employees priority is to work for them and later on comes the organization. If hes not satisfied with his growth, hell not be able to contribute in organization growth.
Training and development: Employees should be trained and given chance to improve and enhance their skills. Many employers fear that if the employees are well rained, theyll leave the organization for better jobs. Organization should not limit the resources on which organizations success depends. These trainings can be given to improve many skills like: Communications skills Technical skills
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In-house processes and procedures improvement related skills C or customer satisfaction related skills Special project related skills
Need for such trainings can be recognized from individual performance reviews, individual meetings, employee satisfaction surveys and by being in constant touch with the employees. 3) Support Lack of support from management can sometimes serve as a reason for employee retention. Supervisor should support his subordinates in a way so that each one of them is a success. Management should try to focus on its employees and support them not only in their difficult times at work but also through the times of personal crisis. Management can support employees by providing them recognition and appreciation. Employers can also provide valuable feedback to employees and make them feel valued to the organization.
The feedback from supervisor helps the employee to feel more responsible, confident and empowered. Top management can also support its employees in their personal crisis by providing personal loans during emergencies, childcare services, employee assistance programs, counseling services.
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Employers can also support their employees by creating an environment of trust and inculcating the organizational values into employees. Thus employers can support their employees in a number of ways as follows:
4) Importance of Relationship in Employee Retention Program Sometimes the relationship with the management and the peers becomes the reason for an employee to leave the organization. The management is sometimes not able to provide an employee a supportive work culture and environment in terms of personal or professional relationships. There are times when an employee starts feeling bitterness towards the management or peers. This bitterness could be due to many reasons. This decreases employees interest and he becomes de-motivated. It leads to less satisfaction and eventually attrition.
A supportive work culture helps grow employee professionally and boosts employee satisfaction. To enhance good professional relationships at work, the management should keep the following points in mind.
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Respect for the individual: Respect for the individual is the must in the organization.
Relationship with the immediate manager: A manger plays the role of a mentor and a coach. He designs ands plans work for each employee. It is his duty to involve the employee in the processes of the organization. So an organization should hire managers who can make and maintain good relations with their subordinates.
Relationship with colleagues: Promote team work, not only among teams but in different departments as well. This will induce competition as well as improve the relationships among colleagues.
Recruit whole heartedly: An employee should be recruited if there is a proper place and duties for him to perform. Otherwise hell feel useless and will be dissatisfied. Employees should know what the organization expects from them and what their expectation from the organization is. Deliver what is promised.
Promote an employee based culture: The employee should know that the organization is there to support him at the time of need. Show them
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that the organization cares and hell show the same for the organization. An employee based culture may include decision making authority, availability of resources, open door policy, etc.
Individual development: Taking proper care of employees includes acknowledgement to the employees dreams and personal goals. Create opportunities for their career growth by providing mentorship programs, certifications, educational courses, etc.
Induce loyalty: Organizations should be loyal as well as they should promote loyalty in the employees too. Try to make the current employees stay instead of recruiting new ones.
5) Organization Environment It is not about managing retention. It is about managing people. If an organization manages people well, employee retention will take care of itself. Organizations should focus on managing the work environment to make better use of the available human assets. People want to work for an organization which provides:
w
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Organization environment includes Culture Values Company reputation Quality of people in the organization Employee development and career growth Risk taking Leading technologies Trust
Types of environment the employee needs in an organization
Learning environment: It includes continuous learning and improvement of the individual, certifications and provision for higher studies, etc.
Support environment: Organization can provide support in the form of work-life balance. Work life balance includes: o Flexible hours
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o Telecommuting o Dependent care o Alternate work schedules o Vacations o Wellness Work environment: It includes efficient managers, supportive co- workers, challenging work, involvement in decision-making, clarity of work and responsibilities, and recognition. Lack or absence of such environment pushes employees to look for new opportunities. The environment should be such that the employee feels connected to the organization in every respect.
What Makes Employee Leave?
Employees do not leave an organization without any significant reason. There are certain circumstances that lead to their leaving the organization. The most common reasons can be: Job is not what the employee expected to be: Sometimes the job responsibilities dont come out to be same as expected by the candidates. Unexpected job responsibilities lead to job dissatisfaction.
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Job and person mismatch: A candidate may be fit to do a certain type of job which matches his personality. If he is given a job which mismatches his personality, then he wont be able to perform it well and will try to find out reasons to leave the job.
No growth opportunities: No or less learning and growth opportunities in the current job will make candidates job and career stagnant. Lack of appreciation: If the work is not appreciated by the supervisor, the employee feels de-motivated and loses interest in job. Lack of trust and support in coworkers, seniors and management: Trust is the most important factor that is required for an individual to stay in the job. Non-supportive coworkers, seniors and management can make office environment unfriendly and difficult to work in. Stress from overwork and work life imbalance: Job stress can lead to work life imbalance which ultimately many times lead to employee leaving the organization. Compensation: Better compensation packages being offered by other companies may attract employees towards themselves.
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EMPLOYEE RETENTION STRATEGIES
The basic practices which should be kept in mind in the employee retention strategies are : 1. Hire the right people in the first place 2. Empower the employees: Give the employees the authority to get things done. 3. Make employees realize that they are the most valuable asset of the organization. 4. Have faith in them, trust them and respect them. 5. Provide them information and knowledge. 6. Keep providing them feedback on their performance. 7. Recognize and appreciate their achievements. 8. Keep their morale high. 9. Create an environment where the employees want to work and have fun. These practices can be categorized in 3 levels: Low, medium and high level.
The ability to retain what is learned is obviously relevant to the effectiveness of a training program. Many factors have been found to increase retention. If the material presented is meaningful to trainees,
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they should have an easier time understanding and remembering it. Trainers can make the content meaningful by 1) Presenting trainees with an overview of what is to be learned so that they will be able to see the overall picture, 2) Using examples, concepts, and terms familiar to the trainees 3) Organizing the material from simple to complex. Retention also can be enhanced by rehearsal or requiring trainees to periodically recall what they have learned through tests.
Finding And Keeping The Best Employees To win the war for talent, managers need to be able to identify high- potential employees, make sure their talents are used, and reassure them of their value before they become dissatisfied and leave the company. Managers also need to be able to listen. Although new employees need strong direction and bosses who can make quick decisions, they expect to be able to challenge managers thinking and be treated with respect and dignity. Because of their skills, many employees are in high demand and can easily leave for a competitor. Development activities can help companies reduce turnover in two ways: 1) By showing employees that the company is investing in the employees skill development , and
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2) By developing managers who can create a positive work environment that makes employees want to come to work and contribute to the company goals. One of the major reasons that good employees leave companies is poor relationships with their managers . companies need to retain their talented employees or risk losing their competitive advantage. Development activities can help companies with employee retention by developing managers skills. Before one or multiple developmental approaches are used , the employee and the company must have an idea of the employees development needs and the purpose of development . Identifying the needs and purpose of development is part of its planning. Employee and company responsibilities at each step of the process are emphasized.
Retention rates among employees are related to retention rates among both customers and investors. In fact, research has established a direct link between employee retention rates and sales growth and companies that are cited as one of the 100 Best Companies to work For routinely outperform their competition on many other financial indicators of performance. job satisfaction and retention are related to organizational performance .firms that fail to secure a loyal base of workers constantly place an inexperienced group of no cohesive units on the front lines of
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their organization, much to their own detriment. Thus, this provides yet another area where one organization can gain competitive advantage over another. Thus, to compare effectively, organizations must take steps to ensure that good performance are motivated to stay with the organization, whereas chronically low performers are allowed, encouraged, or, if necessary, forced to leave. Retaining top performers is not always easy, however. Recent developments have made this difficult than ever.
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Levels of employees retention strategies:-
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Retention Myths
The process of retention is not as easy at it seems. There are so many tactics and strategies used in retention of employees by the organizations. The basic purpose of these strategies should be to increase employee satisfaction, boost employee morale hence achieve retention. But sometimes these strategies are not used properly or even worse, wrong strategies are used. Because of which these strategies fail to achieve the desired results. There are many myths related to the employee retention process. These myths exist because the strategies being used are either wrong or are being used from a long time. These myths prevent the employer from successfully implementing the retention strategies. Let us learn about some of these myths
1. Employees leave an organization for more pay:
Money may be the motivating factor for some but for many people it is not the most important factor. Money matters more to the low- income-employees for whom its a survival issue. Money can make an employee stay in an organization but not for long. The factors more important than money are job satisfaction, job responsibilities, and individuals skill development. The employers should
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understand this and work out some other ways to make employees feel satisfied. When employees leave, management tries to retain them by offering more money. But instead they should try to figure out the main reason behind it. Issues that are mainly the cause of dissatisfaction are organizations policies and procedures, working conditions, relationship with the supervisor and salary, etc. For such employees, achievement, growth, respect, recognition, is the main concern.
2. Incentives can increase productivity: Incentives can surely increase productivity but not for long term. Cash incentives, volume work targets and speed awards are old management beliefs. They can generate work speedily and in volumes but cant boost employee commitment. Rather speed can hamper the quality of work produced. What really glues employees to their work and organization is quality work, meaningful responsibilities, recognition, respect, growth opportunities and friendly supervisors.
3. Employees run away from responsibilities:
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It is a myth that employees run from responsibilities. In-fact employees feel more responsible if they are given extra responsibilities apart from their regular job. Employees look for variety, greater control on the processes and authority to take decisions in their present job. They want opportunities to learn and grow. Management can assign extra responsibilities to their employees and appreciate them on the completion of these tasks. This will induce a sense of pride in the employee and will improve the relationship between the management and the employee.
4. Loyalty is a thing of the past:
Employees can be loyal but what they need is an employer for whom they can be loyal. There is no reason for the employee to hop jobs if hes satisfied with the employer.
Employee Engagement as a tool of retention Employee engagement describes employees emotional and intellectual commitment to their organization and its success. Engaged employees experience a compelling purpose and meaning in their work and give of their discrete effort to advance the organizations objectives.
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It is a positive attitude held by the employee towards the organisation and its values. An engaged employee is aware of business context, and works with colleagues to improve performance within the job for the benefit of the organisation. The organisation must work to develop and nurture engagement, which requires a two-way relationship between employer and employee.
There are three types of employees. They are as follows:-
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Employees are one of the most important assets, but are Companies doing everything they can to maximize the potential of this asset? The best employee attitude studies explore all aspects of an employees working life with an employer, covering not only what they do but also what employees think and feel about the organization. An effectively implemented program of employee research can become one of the most powerful strategic tools in helping the company achieve its long-term corporate goals. To ensure the value of companys investment in employee research, HR managers have to fully understand the concerns, attitudes and motivations of their employees.
THE WAY IT WAS......in the past, jobs were considered desirable and sufficient candidates could be found to fill most critical jobs. Moreover, once
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employed, workers would often spend their entire careers in the same job. In areas where there was turnover, new employees could be recruited easily. THE WAY IT IS..... Today there is a high demand for workers. The supply of qualified workers is limited and good workforce planning requires a twofold approach of aggressive recruitment and innovative retention strategies. Retention policies need to focus on elimination of unwanted turnover. Employee engagement is about how people behave at work. It refers to the extent to which people in an organization know what they have to do, and willingly give of their discretionary effort to do that. It is the difference between people coming to work and doing an adequate job, and people coming to work and really giving of their best, displaying creativity and using their initiative.
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EMPLOYEES ENGAGEMENT
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Increasing Employee Engagement
An organizations productivity is measured not in terms of employee satisfaction but by employee engagement. Employees are said to be engaged when they show a positive attitude toward the organization and express a commitment to remain with the organization. Organizations that believe in increasing employee engagement levels focus on 1. Culture: It consists of a foundation of leadership, vision, values, effective communication, a strategic plan, and HR policies that are focused on the employee.
2. Continuous Reinforcement of People-Focused Policies: Continuous reinforcement exists when senior management provides staff with budgets and resources to accomplish their work, and empowers them. 3. Meaningful Metrics: They measure the factors that are essential to the organizations performance. Because so much of the organizations performance is dependent on people, such metrics will naturally drive the people-focus of the organization and lead to beneficial change. 4. Organizational Performance: It ultimately leads to high levels of trust, pride, satisfaction, success, and believe it or not, fun.
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Increasing employee engagement:- Provide variety: Tedious, repetitive tasks can cause burn out and boredom over time. If the job requires repetitive tasks, look for ways to introduce variety by rotating duties, areas of responsibility, delivery of service etc. Conduct periodic meetings with employees to communicate good news, challenges and easy-to-understand company financial information. Managers and supervisors should be comfortable communicating with their staff, and able to give and receive constructive feedback. Indulge in employee deployment if he feels he is not on the right job. Provide an open environment.
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Communicate openly and clearly about what's expected of employees at every level - your vision, priorities, success measures, etc. Get to know employees' interests, goals, stressors, etc. Show an interest in their well-being and do what it takes enable them to feel more fulfilled and better balanced in work and life. Celebrate individual, team and organizational successes. Catch employees doing something right, and say "Thank you." Be consistent in your support for engagement initiatives. If you start one and then drop it, your efforts may backfire. There's a strong connection between employees' commitment to an initiative and management's commitment to supporting it.
Engaged employees vs. Three Organizational Forces
Low Attrition Rate: - An engaged workforce is likely to leave the organizations at leave the organization at any cost. Organizations are today facing a high attrition rate whereby there is a loss of huge amount of talent that can be well groomed and retained if given an environment that fosters more involvement with the work.
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Better Productivity:-Its the quality of work that has relevance in an organization rather than the quality of work done. A workforce that is engaged has an understanding of what is expected out of him and goes far head to do his best in the company. Enhanced profitability: ability of any company to earn profit is its profitability .due to a complete sense of dedication and work commitment and engaged manpower helps to a greater extent in the profitability of the organization as a whole. 10 cs that can help retain talent in organization The various dimensions that can add to the engagement level of an employee which can make people stay in the organization for long. Connect:-Employees should feel that their work is being valued and should feel a sense of connectivity with their superiors. Having a gap can lead to employee isolation and a sense of non-belongingness to the organization.
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Career:-People in the organization should be given an opportunity to advance in their own career path, which can facilitate by their leaders, providing them with challenging jobs that bring out the best in them. Techniques like job rotation and assigning stretch goals to top talent is care of from the top management sides.
Clarity:-Employees should very well be made aware of the goals and the purpose of the organization .along with this, they should also understand their roles and responsibilities so as to succeed in their assigned jobs. leaders and managers should communicate a clear vision to their team members.
Convey:-Clarifying the expectation about their performances and giving a timely feedback can give room for the employees to perform at his/her fullest and thus can learn on an ongoing basis.
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Conguratulate:-If we need a workforce that is engaged ,we should recognize their efforts by praising them and giving them an applaud that can boost their morale and ultimately make them enthusiastic towards their work.
Contribute:-Efficient leaders should make sure that the employees feel their efforts are being used in the fulfillment of the overall goal and objectives of the organization.
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Control:-Employees value having control of the flow control of the flow and pace of their jobs .involving your people in decision making creates a culture wherein they can take the ownership of their own problems and can find solution to them.
Collaborate:-work done in teams with equal contribution by all teams members creates an environment that foster that trust and lot of collaboration.
Credibility:-Maintaining and reputation of the company lies in the hands of workforce employed. Leaders should strive hard to demonstrate high ethical standards to their subordinates.
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Confidence:- This can be done by being exemplars of high ethical and performance standards. Instilling a sense of confidence is what is required from the management people.
Organization should create an environment that foster ample growth opportunities, appreciation for work accomplished and a friendly cooperative atmosphere that makes employees feel connected in every respect to the organization. Proficient employees keep the quality up and business operations run smoothly along with cost saving in the longer run.
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RETENTION PRACTICES
While cash may get workers in the door, culture will keep them: Create a kind of feel good about work culture for your employees. The staff members who stay with you the longest do so because they want to, not because they have to. Call centre is a tough place to work where the performance both in terms of quantitative and qualitative can be measured on a daily basis and it is very transparent. So many people are unlikely to stay. They will only stay if you create a positive work culture. Let staff know that you are pursuing a common purpose, which is mutually beneficial. Your goal is to frequently let staff know that this is why I need you and this is why you are important.
STOP HIRING THE WRONG PEOPLE - One place to plug the leak is to stop hiring the wrong people. A manager needs to understand what kind of person will be happy in a call centre? It is someone who is dependable, deliberate, hates change, likes to follow repetitive processes and finishes the job at hand. Or it could be someone who has a flair for accuracy, thrives in an environment which has procedures laid down and yet does not seek variety or change. However, the system breaks down when the qualified person is put into a position that does not quite fit who they are. Instead of job match, this results in job mismatch, which causes the job and individual to suffer, limiting the companys productivity.
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GOOD RELATIONSHIP WITH SUPERVISORS Many times, employees seek greener pastures because they are unhappy with their supervisors. The supervisors and trainers have an important role of giving feed back on both strengths and weaknesses, which will help them to do better. Some staff do have initial problem of getting adjusted to call centre jobs or they lack confidence. Reinforcing the confidence that you can do is the responsibility of supervisors. It is true that staff requires money, but they always look for actions, which touches their mind and heart. Let's be honest, bosses management styles have a huge impact on employee satisfaction.
COACHING AND CAREER PATHING Coaching is employee development. Your only cost is time. Time means you care. And remember your people don't care how much you know... until they know how much you care. Whenever the emphasis is on positive feedback, I make sure to do this coaching in "public." Whenever you recognize and encourage people in "public," it acts as a natural stimulant for others who are
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close enough to see or hear what's taking place. Employees need to know what is potentially ahead for them, what opportunities there are for growth. This issue is a sometimes forgotten ingredient as to the importance it plays in the overall motivation of people. MANAGER ROLE IN RETENTION
When asked about why employees leave, low salary comes out to be a common excuse. However, research has shown that people join companies, but leave because of what their managers do or dont do. It is seen that managers who respect and value employees competency, pay attention to their aspirations, assure challenging work, value the quality of work life and provided chances for learning have loyal and engaged employees. Therefore, managers and team leaders play an active and vital role in employee retention. Managers and team leaders can reduce the attrition levels considerably by creating a motivating team culture and improving the relationships with team members. This can be done in a following way:
Creating a Motivating Environment: Team leaders who create motivating environments are likely to keep their team members together for a longer period of time. Motivation does not necessarily have to come through fun events such as parties, celebrations, team outings etc. They can also come through serious events e.g. arranging a talk by the VP of Quality on career opportunities in the
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field of quality. Employees who look forward to these events and are likely to remain more engaged.
Standing up for the Team: Team leaders are closest to their team members. While they need to ensure smooth functioning of their teams by implementing management decisions, they also need to educate their managers about the realities on the ground. When agents see the team leader standing up for them, they will have one more reason to stay in the team.
Providing coaching: Everyone wants to be successful in his or her current job. However, not everyone knows how. Therefore, one of the key responsibilities will be providing coaching that is intended to improve the performance of employees. Managers often tend to escape this role by just coaching their employees. However, coaching is followed by monitoring performance and providing feedback on the same. Delegation: Many team leaders and managers feel that they are the only people who can do a particular task or job. Therefore, they do not delegate their jobs as much as they should. Delegation is a great way to develop competencies. Extra Responsibility: Giving extra responsibility to employees is
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another way to get them engaged with the company. However, just giving the extra responsibility does not help. The manager must spend good time teaching the employees of how to manage responsibilities given to them so that they dont feel overburdened. Focus on future career: Employees are always concerned about their future career. A manager should focus on showing employees his career ladder. If an employee sees that his current job offers a path towards their future career aspirations, then they are likely to stay longer in the company. Therefore, managers should play the role of career counselors as well. INCREASING EMPLOYEE RETENTION THROUGH EMPLOYEE EXIT INTERVIEWS Employee exit interviews are an important part of HR management and monitoring employee retention and satisfaction. Just as it is important to hold a sales interview to find out why you did not get an account, it is important to understand why an employee leaves and what information you can use to avoid future employee losses. Avoidable losses result from employee job dissatisfaction, poor management practices, the lack of advancement opportunity, and sometimes personal harassment by or conflict with a co-worker or manager. A recent employee
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retention survey suggests that nearly 70% of employees leave their jobs because they do not feel valued! Another purpose is to help employers avoid litigation down the road, caused by illegal activities or by "disgruntled" employees. Employee exit interviews can change the climate of the organization by changing management style, making changes that reflect employee opinions, and creating value recognition programs where needed. One key to increasing the employee's opinion of the organization is in the management of expectations. Realistic job expectations are important and management should focus on creation of proper expectations. Employee exit interviews provide a window to view and benchmark employee expectations regarding: Job responsibilities and performance Employee job orientation and training Mentoring programs Working conditions Opportunities for skill development career advancement Training and development programs Supervision and Management Work Satisfaction
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Workload Distribution and Schedule Flexibility Salary Benefits Organizational Culture Organizational and Work Group Communication Employee exit interviews should focus on retention by identifying the reason the employee is leaving and also determine if the company's level of performance or the employees' unfulfilled expectations are at issue. Just as consumer retention views fulfillment from products or services as "delightful" or as a "failure", employment environments similarly delight or fail. Failing environments with low levels of employee retention reflect low levels of job satisfaction and come at a great cost to the organization. Not only is it expensive to hire and then train new employees, but can have a negative impact on productivity and morale. Goals for Exit Interviews Employee exit interviews can result in measurable retention and performance increases for the employees and for the business in general. Specifically, effective employee exit interviews are an opportunity to diagnose and improve performance within the company: Improve employee retention and reduce turnover.
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Increase company objectivity by having employee exit interviews handled by a fair and non-partisan third-party. Benchmark against industry and company norms for the exit interview survey items. Compare exit interview scores against overall the Employee Satisfaction Tracking Survey to determine if employee satisfaction impacts turnover. Track trends in employee exit interview satisfaction to measure improvements made. Structure of Exit Interviews Exit interviews are generally completed by about 1/3 of employees who leave an organization. Because this is a small percent of actual employees, this number should be doubled through multi-mode approaches: paper and pencil, online and telephone interviews. Online interviews are particularly valuable because respondents tend to be frank in their evaluations and will provide anecdotal experiences related to their previous employment.
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OBJECTIVE OF THE STUDY
To determine the retaining and maintaining strategies.. To suggest appropriate strategies to improve employee retention and motivation. To assess the effectiveness of the retention polices in a big consumer durable company as VIDEOCON. To identify the problem in employee retention. To identify the factors which affect the morale in order to improve their motivation?
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SCOPE OF THE STUDY Employee retention is supremely important in an organization because it is what productivity depends on. If your employees are satisfied they would retain in the organization for longer period of time and produce superior quality performance in optimal time and lead to growing profits. Satisfied employees are also more likely to be creative and innovative and come up with breakthroughs that allow a company to grow and change positively with time and changing market conditions. The study is done to know the following things:- Reasons of employee retention. How many employees are satisfied by their Job? This study tells us how much the employees are satisfied and what are the factors which affect the employees to leave the organization. To know the strategies used by the various companies to retain their employees.
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LITERATURE REVIEW Retention strategies in Videocon
Various strategies which can boost successful employee retention in Videocon are:-
First know the cost This is the most basic and initial part of the retention process. A good retention plan needs all the facts. The turnover cost includes cost of selection process, hiring, induction, training ,lost productivity, etc. Hire from the known sources like employee referrals through trustworthy employees. Hire the right people Retention starts with recruitment itself. Identify the characteristics of the people you want to hire who fit in the organization culture. To retain employees,the people who are productive and are likely to stay for a longer time should be hired. Individual development Develop career plans for employees. Initiate mentorship and higher education Programs to keep the learning and development moving.
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Find the reason why employees are leaving Conduct exit interviews with the employees after 3-4 months of leaving the job. This is because most of the employees would not like to reveal the true reason of quilting the job as long as they are in the organization and are associated with the job. The exit interview can be conducted online. Then the employees can talk straight from the shoulder.
Employee recognition Star of the month, top performer, picture on bulletin boards appreciation cards and certificates etc, increase employee moral and confidence. This is a great way to retain employees of a call center.
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RETENTION POLICIES implied in other organizations
Employers Key Drives To Attract And Retain Talent Procter and Gamble India
o Early responsibilities in career o Flexible and transparent organizational culture o Global opportunities through a variety of exposure and diverse experiences o Performance Recognition American Express (India)
o Strong global brand o Value-based environment o Pioneer in many people practices NTPC
o Learning and growth opportunities o Competitive rewards o Opportunity to grow, learn and implement o Strong social security and employee welfare performance- oriented culture
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Johnson & Johnson
o Strong values of trust, caring fairness, and respect within the organization o Freedom to operate at work o Early responsibility in career o Training and learning opportunities o Visible, transparent and accessible leaders o Competitive rewards o Innovative HR programs and practices Glaxo Smith Kline Consumer Healthcare
o Performance-driven Rewards o Its belief in Growing our own timber o Comprehensive development and learning programs o Flat organization, where performance could lead to very quick progression o Challenging work context o Competitive rewards o Exhaustive induction and orientation program Tata Steel
o Organization philosophy and culture o Job stability
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o Freedom to work and innovate Colgate Palmolive India
o Company brand o Open , transparent, and caring organization o Management according to the managing with respect to guiding principles o Training ad development programs o Structured career planning process o Global career opportunities Wipro
o Companys brand as an employer o Early opportunities for growth o High degree of autonomy o Value compatibility o Innovative people program Indian Oil Corporation
o Company brand image o Work ethics o Learning and growth opportunities o Challenging work assignments
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o Growing organization TCS
o The group brand equity o Strong corporate governance and citizenship o Commitment to learning and development o Best in people practices o Challenging assignments o Opportunity to work with fortune 500 clients
Employee benefits provided by majority of the Videocon company A part from the legal and mandatory benefits such as provident fund and gratuity, below is a list of other benefits.
GROUP MEDI_CLAIM INSURANCE SCHEME This insurance scheme is to provide adequate insurance coverage of employees for expenses related to hospitalization due to illness, diseases or injury or pregnancy in case of female employees or spouse of male employees. All employees and their dependent family members are eligible. Dependent family members include spouse, non-earning parents and children above three months.
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PERSONAL ACCIDENT INSURANCE SCHEME This scheme is to provide adequate insurance coverage for hospitalization expenses arising out of injuries sustained in an accident.
SUBSIZISED FOOD AND TRANSPORTATION The organization provides transportation facility to all the employees from home till office at subsidized rates .the lunch provided is also subsidized.
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RECREATION ,CAFETERIA,ATM FACILITIES The recreation facilities include pool tables, chess tables and coffee bars. companies also have well equipped gyms, personal trainers and showers at facilities.
CELLULAR PHONE/LAPTOPS Cellular phone and laptops are provided to the employees on the basis of business need. The employee is responsible for the maintenance and safeguarding the asset.
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WEDDING DAY GIFTS Employees is given a gift voucher of Rs.2000/- to Rs.7000/- based on their level in the organization.
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WAYS TO INCREASE EMPLOYEE RETENTION IN VIDEOCON Companies have now realized the importance of retaining their quality workforce. Retaining quality performers contribute to productivity of the organization and increase morale among employees. Four basic factors that play an important role in increasing employees retention include salary and remuneration, providing recognition, benefits and opportunities for individual growth. But are they really positively contributing to the retention rates of a company? Basic salary, these days hardly reduces turnover .Today employees look beyond the monetary factor. Employees retention can be increased by inculcating the following practices: Open communication:- A culture of open communication enforces loyalty among employees. Open communication tends to keep employees informed on key issues. Most importantly, they need to know that their opinions matter and management is 100% interested in their inputs.
Employees reward program:-A positive recognition for work boost the motivational levels of employees. Recognition can be made explicit by providing awards like best employee of the month or punctuality award.
Career development program:-Every individual is worried about his/her career. He is always keen to know his career path in the company. organizations
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can offer to various technical certification courses which help employees in enhancing his knowledge.
Performance based bonus:-A provision of performance linked bonus can be made wherein an employee is able to relate his performance with the company profit and hence will work hard. This bonus should strictly be productivity based.
Gift at some occasions:-Giving out some gifts at the time of one or two festivals to the employees making them feel good and understand that the management is concerned about them. RESEARCH METHODOLOGY
For the above-mentioned objective, a detailed study of the retention process at VIDEOCON was carried out, along with practically working on the same. In the study, the various methods for identifying the requirement of individual employees were studied and analyzed to identify their needs and expectations. The areas were identified which needed improvement and recommendations were made for the same.
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STEPS FOLLOWED IN THIS RESEARCH METHODOLOGY:
OBJECTIVE: To analyze the existing retention practices. its effectiveness and recommend measures to improve the retention practices in the organization.
RESEARCH DESIGN: Descriptive Research
DATA SOURCES : Primary data through survey and Secondary data is collected from previous researchers and literature to fill in the respective project. The secondary data was collected through: Books Articles Journals Websites Designing data collection: The main statistical tools used for data collection and analyses of data in this project are: QUESTIONNAIRE Graphs
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Tables Sample size:
The questionnaire was filled by the employees of one branch whom were selected on the basis of Random sampling to achieve the knowledge employee satisfaction in the organizations and the filled up questionnaires were collected. The survey was conducted in Sales Office of VIDEOCON consisting population of 100 people, from different post and designation, as well as from different departments. Then collectively the data was interpreted, analyzed and conclusions were drawn. On the basis of these conclusions recommendations and suggestions were given for improvement. Also some data was collected about the Rating of different Consumer Durable Companies, on basis of Employee Satisfaction, Customer Satisfaction, Community Involvement, Environment, and Social Responsibility.
SAMPLING TECHNIQUES USED The technique of random sampling has been used in the analysis of the data .Random sampling from a finite population refers to that method of sample selection which gives possible sample combination an equal probability of being picked up each item in the entire population to have an equal chance of being included in the sample.
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DATA ANALYSIS AND INTERPRETATION
Q1) How would you rate various factors in your decision to join (VIDEOCON)?
S.N O PARAMETE RS STRONGL Y SATISFIE D SATISF IED CAN' T SAY DISSA TISFIE D STRONGL Y SATISFIE D MEAN 1 Salary satisfaction 48 28 16 4 4 4.12 2 Fringe benefits 12 56 28 NIL 4 3.72 3 Career advancement 56 36 8 NIL NIL 4.48 4 Corporate profile 48 48 4 NIL NIL 4.44 5 Referred by a friend 32 20 16 20 12 3.4 6 Advertisement 8 36 24 28 4 3.16
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7 Companys reputation as a healthy place to work 24 60 12 4 NIL
Null Hypothesis H0: Salary satisfaction has no role in employee retention if mean <4
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Alternative Hypothesis Ha: Salary satisfaction has role in employee retention if mean >=4
Salary is important in employee retention. Therefore, here the null hypothesis is rejected and alternative hypothesis is accepted as the mean is 4.12. 2.) FRINGE BENEFITS
Null Hypothesis H0: Fringe benefits has no role in employee retention if mean <4 Alternative Hypothesis Ha: Fringe benefits has role in employee retention if mean >=4
Fringe benefits are not so important in employee retention. Therefore, here the null hypothesis is accepted and alternative hypothesis is rejected as the mean is 3.72.
3.) CAREER ADVANCEMENT
Null Hypothesis H0 : Career advancement has no role in employee retention if mean <4 Alternative Hypothesis Ha: Career advancement has role in employee retention if mean >=4
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Career advancement is important in employee retention. Therefore, here the null hypothesis is rejected and alternative hypothesis is accepted as the mean is 4.48.
4.) CORPORATE PROFILE
Null Hypothesis H0: Corporate profile has no role in employee retention if mean <4 Alternative Hypothesis Ha: Corporate profile has role in employee retention if mean >=4
Corporate profile is important in employee retention. Therefore, here the null hypothesis is rejected and alternative hypothesis is accepted as the mean is 4.48.
5.) REFERRED BY A FRIEND
Null Hypothesis H0: Referred by a friend has no role in employee retention if mean < 4 Alternative Hypothesis Ha : Referred by a friend has role in employee retention if mean >=4
Referred by a friend has no role in employee retention . Therefore, here the null hypothesis is accepted and alternative hypothesis is rejected as the mean is 3.4
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6.) ADVERTISEMENT
Null Hypothesis H0: Advertisement has no role in employee retention if mean < 4 Alternative Hypothesis Ha: Advertisement has role in employee retention if mean >=4
Advertisement has no role in employment retention. Therefore, here the null hypothesis is accepted and alternative hypothesis is rejected as the mean is 3.16.
7.) COMPANYS REPUTATION AS A HEALTHLY PLACE TO WORK
Null Hypothesis H0 : Companys reputation as a healthy place to work has no role in employee retention if mean <4 Alternative Hypothesis Ha : Companys reputation as a healthy place to work has role in employee retention if mean >=4
Companys reputation as a healthy place to work is important in employee retention Therefore, here the null hypothesis is rejected and alternative hypothesis is accepted as the mean is 4.04.
8.) INFRASTRUCTURE OF THE COMPANY
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Null Hypothesis H0 : Infrastructure of the company has no role in employee retention if mean <4 Alternative Hypothesis Ha : Infrastructure of the company has role in employee retention if mean >=4
Infrastructure of the company is important in employee retention. Therefore, here the null hypothesis is rejected and alternative hypothesis is accepted as the mean is 4.16
9.) JOB CHALLENGES
Null Hypothesis H0 : Job challenges has no role in employee retention if mean <4 Alternative Hypothesis Ha : Job challenges has role in employee retention if mean >=4
Job challenges is important in employee retention. Therefore, here the null hypothesis is rejected and alternative hypothesis is accepted as the mean is 4.24
10.) UNEMPLOYMENT
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Null Hypothesis H0 : Unemployment has no role in employee retention if mean <4 Alternative Hypothesis Ha : Unemployment has role in employee retention if mean >=4
Unemployment has no role in employee retention. Therefore, here the null hypothesis is accepted and alternative hypothesis is rejected as the mean is 3.76
11.) SOCIAL RESPONSIBILITY
Null Hypothesis H0 : Social responsibility has no role in employee retention if mean <4 Alternative Hypothesis Ha : Social responsibility has role in employee retention if mean >=4
Social responsibility is important in employee retention Therefore, here the null hypothesis is rejected and alternative hypothesis is accepted as the mean is 4.24
S. N O PARAMETER S Strongly agree Agre e Can t Say Disagre e Strongl y Disagre e MEAN 1 Skills are effectively used 44 40 8 8 NIL 4.2 2 Encourage cooperation 32 56 4 8 NIL 4.12 3 Sufficient resources are available 12 68 12 8 NIL
3.84 4 Work environment is safe, comfortable and appropriately equipped 12 68 16 4 NIL
3.88 5 Encouraged to develop new and more efficient ways to do my 24 60 16 NIL NIL
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work 4.08 6 Employees are treated fairly and equally 28 52 12 8 NIL
4.00 7 Managers are available to discuss job related issues, when required. 28 52 12 8 NIL
Null Hypothesis H0 : Skills are effectively used has no role in employee retention if mean <4 Alternative Hypothesis Ha : Skills are effectively used has role in employee retention if mean >=4
Skills are effectively used is important in employee retention. Therefore, here the null hypothesis is rejected and alternative hypothesis is accepted as the mean is 4.02.
2.) ENCOURAGE COOPERATION
Null Hypothesis H0 : Encourage cooperation has no role in employee retention if mean <4
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Alternative Hypothesis Ha : Encourage cooperation has role in employee retention if mean >=4
Encourage cooperation has role in employee retention . Therefore, here the null hypothesis is rejected and alternative hypothesis is accepted as the mean is 4.12.
3.) SUFFICIENT RESOURCES ARE AVAILABLE
Null Hypothesis H0: Sufficient resources are available has no role in employee retention if mean <4 Alternative Hypothesis Ha : Sufficient resources are available has role in employee retention if mean >=4
Resources availability has no role in employee retention. Therefore, here the null hypothesis is accepted and alternative hypothesis is rejected as the mean is 3.64.
4.) WORK ENVIRONMENT IS SAFE, COMFORTABLE AND APPROXIMATELY EQUIPPED
Null Hypothesis H0 : Work environment is safe, comfortable and well equipped has no role in employee retention if mean <4
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Alternative Hypothesis Ha : Work environment is safe, comfortable and well equipped has role in employee retention if mean >=4
Work environment is safe, comfortable and well equipped is not important in employee retention .Therefore, here the null hypothesis is accepted and alternative hypothesis is rejected as the mean is 3.88.
5.) ENCOURAGED TO DEVELOP NEW AND MORE EFFICIENT WAYS TO DO WORK
Null Hypothesis H0 : Encouraged to develop new and more efficient ways to do work has no role in employee retention if mean <4 Alternative Hypothesis Ha : Encouraged to develop new and more efficient ways to do work has role in employee retention if mean >=4
Encouraged to develop new and more efficient ways to do work plays a important in employee retention. Therefore, here the null hypothesis is rejected and alternative hypothesis is accepted as the mean is 4.08.
6.) EMPLOYEES ARE TREATED FAIRLY AND EQUALLY
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Null Hypothesis H0: Employees are treated fairly and equally has no role in employee retention if mean <4 Alternative Hypothesis Ha : Employees are treated fairly and equally has role in employee retention if mean >=4
Employees are treated fairly and equally is important in employee retention Therefore, here the null hypothesis is rejected and alternative hypothesis is accepted as the mean is 4.00.
7.) MANAGERS ARE AVAILABLE TO DISCUSS JOB RELATED ISSUES, WHEN REQUIRED Null Hypothesis H0 :Managers are available to discuss job related issues, when required has no role in employee retention if mean <4 Alternative Hypothesis Ha :Managers are available to discuss job related issues, when required has role in employee retention if mean >=4
Managers are available to discuss job related issues, when required is important in employee retention. Therefore, here the null hypothesis is rejected and alternative hypothesis is accepted as the mean is 4.00.
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8.) MAINTAIN CONSISTENT POLICIES AND PRACTICES
Null Hypothesis H0 :Maintained consistent policies and practices has no role in employee retention if mean <4 Alternative Hypothesis Ha : Maintained consistent policies and practices has role in employee retention if mean >=4
Maintained consistent policies and practices is important in employee retention Therefore, here the null hypothesis is rejected and alternative hypothesis is accepted as the mean is 4.12.
9.) RECOGNIZED EMPLOYEES CONTRINUTION
Null Hypothesis H0 : Recognized employees contribution has no role in employee retention if mean <4 Alternative Hypothesis Ha : Recognized employees contribution has role in employee retention if mean >=4
Recognized employees contribution is important in employee retention .Therefore, here the null hypothesis is rejected and alternative hypothesis is accepted as the mean is 4.08.
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10.) WORK LOAD IS REASONABLE
Null Hypothesis H0 : Work load is reasonable has no role in employee retention if mean <4 Alternative Hypothesis Ha : Work load is reasonable has role in employee retention if mean >=4
Work load is reasonable has no role in employee retention. Therefore, here the null hypothesis is accepted and alternative hypothesis is rejected as the mean is 3.64.
11.) LACK OF MOTIVATION
Null Hypothesis H0 : Lack of motivation has no role in employee retention if mean <4 Alternative Hypothesis Ha : Lack of motivation has role in employee retention if mean >=4
Lack of motivation is not important in employee retention. Therefore, here the null hypothesis is accepted and alternative hypothesis is rejected as the mean is 2.28.
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12.) UNEASY RELATIONSHIP WITH MANAGERS Null Hypothesis H0: Uneasy relationship with managers has no role in employee retention if mean <4 Alternative Hypothesis Ha : Uneasy relationship with managers has role in employee retention if mean >=4
Uneasy relationship with managers is not important in employee retention Therefore, here the null hypothesis is rejected and alternative hypothesis is accepted as the mean is 2.24.
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0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% OPINION ABOUT THE JOB PROFILE Strongly agree Agree Cant Say Disagree StronglyDisagree
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Q.3. Does the Company, fulfill the following parameters in the performance of its activities?
S. NO PARAMETERS Strongly satisfied Satisfied Cant say Dissatisfied Strongly dissatisfied MEAN 1 Duties of the job 24% 56% 16% 4% NIL 4 2 Training & development programs
Null Hypothesis H0 :Duties of the job has no role in employee retention if mean <4 Alternative Hypothesis Ha :Duties of the job has role in employee retention if mean >=4
Duties of the job is important in employee retention. Therefore, here the null hypothesis is rejected and alternative hypothesis is accepted as the mean is 4.00. 2.) TRAINING AND DEVELOPMENT PROGRAMS
Null Hypothesis H0 : Training and development programs has no role in employee retention if mean <4
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Alternative Hypothesis Ha : Training and development programs has no role in employee retention if mean =>4
Training and development programs are not important in employee retention. Therefore, here the null hypothesis is accepted and alternative hypothesis is rejected as the mean is 3.4.
3.) OPPORTUNITIES FOR ADVANCEMENT
Null Hypothesis H0 : Opportunities for advancement has no role in employee retention if mean <4 Alternative Hypothesis Ha : Opportunities for advancement has no role in employee retention if mean >
Opportunities for advancement are not important in employee retention. Therefore, here the null hypothesis is accepted and alternative hypothesis is rejected as the mean is 3.72. 4.) SALARY TREATMENT
Null Hypothesis H0: Salary treatment has no role in employee retention if mean <4 Alternative Hypothesis Ha : Salary treatment has no role in employee retention if mean >=4
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Salary treatment is not important in employee retention. Therefore, here the null hypothesis is accepted and alternative hypothesis is rejected as the mean is 3.6.
5.) BENEFIT PROGRAMS
Null Hypothesis H0 : Benefit programs has no role in employee retention if mean <4 Alternative Hypothesis Ha : Benefit programs has no role in employee retention if mean >=4
Benefit programs are not important in employee retention .Therefore, here the null hypothesis is accepted and alternative hypothesis is rejected as the mean is 3.68.
6.) WORKING CONDITIONS
Null Hypothesis H0: Working conditions has no role in employee retention if mean <4 Alternative Hypothesis Ha: Working conditions has no role in employee retention if mean >=4
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Working conditions is not important in employee retention. Therefore, here the null hypothesis is accepted and alternative hypothesis is rejected as the mean is 3.64.
7.) WORKING HOURS
Null Hypothesis H0: Working hours has no role in employee retention if mean <4 Alternative Hypothesis Ha: Working hours has no role in employee retention if mean >=4
Working hours has no role in employee retention. Therefore, here the null hypothesis is accepted and alternative hypothesis is rejected as the mean is 3.08.
8.) CO-WORKERS
Null Hypothesis H0 : Co-workers has no role in employee retention if mean <4 Alternative Hypothesis Ha :Co-workers has no role in employee retention if mean >=4
Co-workers are not important in employee retention. Therefore, here the null hypothesis is accepted and alternative hypothesis is rejected as the mean is 3.84.
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9.) SUPERVISION
Null Hypothesis H0 :Supervision has no role in employee retention if mean <4 Alternative Hypothesis Ha : Supervision has role in employee retention if mean >=4
Supervision is important in employee retention Therefore, here the null hypothesis is rejected and alternative hypothesis is accepted as the mean is 4.00.
10.) WORK CULTURE
Null Hypothesis H0 : Work culture has no role in employee retention if mean <4 Alternative Hypothesis Ha :Work culture has no role in employee retention if mean >=4 Work culture is not important in employee retention .Therefore, here the null hypothesis is accepted and alternative hypothesis is rejected as the mean is 3.76.
11.) OPEN TO SUGGESTIONS
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Null Hypothesis H0 : Open to suggestions has no role in employee retention if mean <4 Alternative Hypothesis Ha : Open to suggestions has no role in employee retention if mean >=4
Open to suggestions is not important in employee retention Therefore, here the null hypothesis is accepted and alternative hypothesis is rejected as the mean is 3.8.
12.) COMMUNICATION SYSTEM
Null Hypothesis H0: Communication system has no role in employee retention if mean <4 Alternative Hypothesis Ha : Communication system has no role in employee retention if mean >=4
Communication system is important in employee retention. Therefore, here the null hypothesis is accepted and alternative hypothesis is rejected as the mean is 3.66.
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0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% PARAMETERS AFFECTING THE PERFORMANCE OF ACTIVITY Strongly satisfied Satisfied Cant say Dissatisfied Strongly dissatisfied
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Q.4. FACTORS WHICH CAN MAKE AN EMPLOYEE LEAVE THE ORGANISATION
S. NO PARAMET ERS Strongly Agree Agre e Cant say Disagre e Strongl y Disagre e MEAN 1 Higher pay/benefits 36 40 12 12 NIL 4 2 Better job prospects 52 32 16 NIL NIL 4.36 3 Work-life balance issues 36 32 28 4 NIL 4 4 Changing management strategies 16 52 16 12 4 3.64 5 Career advancement 48 36 16 NIL NIL 4.32 6 Family and personal reasons 20 40 32 8 NIL 3.72 7 Boss attitude 24 36 28 8 4 3.68
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8 Undefined career path 32 32 28 4 4 3.84 9 Company Instability 24 44 24 8 NIL 3.84 10 Low morale 20 40 24 16 NIL 3.64 11 Conflict with other employees 8 16 48 24 4% 3.00 12 Lack of team work 12 48 16 24 NIL 3.48 13 No recognition and devaluation 24 36 28 12 NIL 3.72 14 Others (specify NIL NIL 75 25 NIL 2.75
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ANALYSIS
1.) HIGHER PAY/ BENEFITS
Null Hypothesis H0 :Higher pay/benefits has no role in employee retention if mean <4 Alternative Hypothesis Ha : Higher pay/benefits has role in employee retention if mean >=4
Higher pay/benefits is not important in employee retention. Therefore, here the null hypothesis is rejected and alternative hypothesis is accepted as the mean is 4.00.
2.) BETTER JOB PROSPECTS
Null Hypothesis H0 :Better job prospects has no role in employee retention if mean <4 Alternative Hypothesis Ha : Better job prospects has role in employee retention if mean >=4
Better job prospects is important in employee retention. Therefore, here the null hypothesis is rejected and alternative hypothesis is accepted as the mean is 4.36.
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3.) WORK-LIFE BALANCE ISSUES
Null Hypothesis H0 :Work-life balance issues has no role in employee retention if mean <4 Alternative Hypothesis Ha : Work-life balance issues has role in employee retention if mean >=4
Work-life balance issues is important in employee retention Therefore, here the null hypothesis is rejected and alternative hypothesis is accepted as the mean is 4.00.
4.) CHANGING MANAGEMENT STRATEGIES
Null Hypothesis H0: Changing management strategies has no role in employee retention if mean <4 Alternative Hypothesis Ha :Changing management strategies has no role in employee retention if mean >=4
Changing management strategies are not important in employee retention .Therefore, here the null hypothesis is accepted and alternative hypothesis is rejected as the mean is 3.64.
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5.) CAREER ADVANCEMENT
Null Hypothesis H0:Career advancement has no role in employee retention if mean <4 Alternative Hypothesis Ha: Career advancement has role in employee retention if mean >=4
Career advancement is important in employee retention. Therefore, here the null hypothesis is rejected and alternative hypothesis is accepted as the mean is 4.32.
6.) FAMILY AND PERSONAL REASONS
Null Hypothesis H0: Family and personal reasons has no role in employee retention if mean <4 Alternative Hypothesis Ha:Family and personal reasons has no role in employee retention if mean >=4
Family and personal reasons are not important in employee retention Therefore, here the null hypothesis is accepted and alternative hypothesis is rejected as the mean is 3.72.
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7.) BOSS ATTITUDE
Null Hypothesis H0: Boss attitude has no role in employee retention if mean <4 Alternative Hypothesis Ha :Boss attitude has no role in employee retention if mean >=4
Boss attitude is not important in employee retention .Therefore, here the null hypothesis is accepted and alternative hypothesis is rejected as the mean is 3.68.
8.) UNDEFINED CAREER PATH
Null Hypothesis H0: Undefined career path has no role in employee retention if mean <4 Alternative Hypothesis Ha :Undefined career path has no role in employee retention if mean >=4
Undefined career path is not important in employee retention Therefore, here the null hypothesis is accepted and alternative hypothesis is rejected as the mean is 3.84.
9.) COMPANY INSTABILITY
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Null Hypothesis H0: Company instability has no role in employee retention if mean <4 Alternative Hypothesis Ha:Company instability has no role in employee retention if mean >=4
Company instability is not important in employee retention .Therefore, here the null hypothesis is accepted and alternative hypothesis is rejected as the mean is 3.84.
10.) LOW MORALE
Null Hypothesis H0: Low morale has no role in employee retention if mean <4 Alternative Hypothesis Ha :Low morale has no role in employee retention if mean >=4 Low morale is not important in employee retention. Therefore, here the null hypothesis is accepted and alternative hypothesis is rejected as the mean is 3.64.
11.) CONFLICT WITH OTHER EMPLOYEES
Null Hypothesis H0: Conflict with other employees has no role in employee retention if mean <4
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Alternative Hypothesis Ha : Conflict with other employees has no role in employee retention if mean >=4
Conflict with other employees has no role in employee retention .Therefore, here the null hypothesis is accepted and alternative hypothesis is rejected as the mean is 3.00.
12.) LACK OF TEAM WORK
Null Hypothesis H0: Lack of team work has no role in employee retention if mean <4 Alternative Hypothesis Ha : Lack of team work has no role in employee retention if mean >=4
Lack of team work is not important in employee retention .Therefore, here the null hypothesis is accepted and alternative hypothesis is rejected as the mean is 3.48.
13.) NO RECOGNITION AND DEVALUATION
Null Hypothesis H0: No recognition and devaluation has no role in employee retention if mean <4
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Alternative Hypothesis Ha : No recognition and devaluation has no role in employee retention if mean >=4
No recognition and devaluation is not important in employee retention. Therefore, here the null hypothesis is accepted and alternative hypothesis is rejected as the mean is 3.72.
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0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% FACTORS WHICH CAN MAKE AN EMPLOYEE LEAVE THE ORGANISATION Strongly Agree Agree Cant say Disagree Strongly Disagree
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FINDINGS
Corporate culture, hiring promotion and training practices influence non- management employee retention. Employees who had a positive experience with regards to working hours, sense of fulfilment with their jobs and higher level of job satisfaction are more likely to stay with their current employer. The organization focus on the hiring and promotion of their employees. Organization mission, goals, direction and employees recognition reward and compensation were found to positively reduce non-management employee turnover.
LIMITATIONS Time constraint. Bias and irrelevant data. Data collected mainly from secondary sources. The result would vary according to the individual as well as time.
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RECOMMENDATIONS
Select the right people for the right job. Hire people with the initiate talent, ability and smart to work in almost any position. Offer an attractive, competitive, benefits package with components such as life insurance, disability insurance and flexible hours. Provide opportunities for people to share their knowledge via training sessions, presentation, mentoring others and team assignments. Demonstrate respect for employees at all times. listen to them deeply, use their ideas, never shame them. Enable employees to balance work and life. Nurture and celebrate organization traditions. Communicate goals, roles and responsibilities so people know what is expected and feel like part of in- crowd.
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CONCLUSION
If an organization succeeds in managing its people well, employee retention will take care of itself. A focus on managing the work environment so as to effectively utilize the available human assets is needed of the hour. Organization should create an environment that foster ample growth opportunities, appreciation for work accomplished and a friendly cooperative atmosphere that make an employee feel their work. There is growing need of employees who are proud to be associated with the organization. It is high time to realize that each employee is valuable and with time added experience makes them even more valuable. Retention plans are an expensive way of enhancing workplace productivity and engaging employees emotionally. Proficient employees keep the quality up and business operations run smoothly along with cost saving in the longer run.
ANNEXURE QUESTIONNAIRE Personal details Less than 1year 1-3 years 4-6 years 7-9 years More than 9 years How long have you worked for this company
NAME: PLEASE DESCRIBE YOUR POSITION WITH THE COMPANY, DEPARTMENT: A How would you rate various factors in your decision to join (VIDEOCON) Strongl y agree Agree Cant say Disagre e Strongly disagree 1) Salary advancement 2) Fringe benefits 3) Career advancement 4) Corporate profile 5) Referred by a friend 6) Advertisement 7) Companys reputation as a healthy place to work
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8) Infrastructure of the organization 9) Job challenges 10 ) Unemployment 11 ) Social responsibility 12 ) Others (specify) B WHAT IS YOUR OPINION,ABOUT YOUR JOB PROFILE Strong ly agree Agr ee Cant Say Disagr ee Strongl y disagre e 1 ) Skills are effectively used 2) Encourage cooperation 3) Sufficient resources are available
4) Work environment is safe, comfortable and appropriately equipped
5) Encouraged to develop new
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and more efficient ways to do my work 6) Employees are treated fairly and equally
7) Managers are available to discuss job related issues, when required.
8) Maintained consistent policies and practices
9) Recognized employees contribution
10 ) Work load is reasonable 11 ) Lack of motivation 12 ) Uneasy relationship with managers
C Does the Company, fulfill the following parameters in the performance of its activities Strongl y satisfie d Satisfi ed Cant say Dissati sfied Strongl y dissatis fied
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1) Duties of the job 2) Training & development programs
3) Opportunities for advancement
4) Salary treatment 5) Benefit programs 6) Working conditions 7) Working hours 8) Co-workers 9) Supervision 1 0) Work culture 1 1) Open to suggestions 1 2) Communication system D FACTORS WHICH CAN MAKE AN EMPLOYEE LEAVE THE Strongly agree Agree Cant say Disagre e Strongl y disagre