Professional Documents
Culture Documents
1. Introduction
Need of the study
Scope of the study
2. Research methodology
Objective of the study
Research methodology (Sample size, Instrument used, Methods of data
collection)
Scope of the study
limitations
7. Data Analysis
8. Suggestion and Conclusions
9. Bibliography
10. References
11. Appendices
12. Checklist of the items in the project
Introduction
Employee turnover is one of the largest though widely unknown costs an
organization faces. While companies routinely keep track of various costs such
as supplies and payroll, few take into consideration how much employee
turnover will cost them: Ernst & Young estimates it costs approximately
$120,000 to replace 10 professionals. According to research done by Sibson &
Company, to recoup the cost of losing just one employee a fast food restaurant
must sell 7,613 combo meals at $2.50 each. Employee turnover costs companies
30 to 50% of the annual salary of entry-level employees, 150% of middle-level
employees, and up to 400% for upper level, specialized employees. Now that so
much is being done by organizations to retain its employees.
Why is retention so important? Is it just to reduce the turn over 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.
Retention involves five major things:
Compensation
Environment
Growth
Relationship
Support
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
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 start up 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.
experiences
Performance Recognition
NTPC
Learning and growth opportunities
Competitive rewards
Opportunity to grow, learn and implement
Strong social security and employee welfare performance- oriented
culture.
Johnson & Johnson
Strong values of trust, caring fairness, and respect within the organization
Freedom to operate at work
Early responsibility in career
Training and learning opportunities
Visible, transparent and accessible leaders
Competitive rewards
Innovative HR programs and practices
Tata Steel
Organization philosophy and culture
Job stability
Freedom to work and innovate
Colgate Palmolive India
Company brand
Open , transparent, and caring organization
Management according to the managing with respect to guiding
principles
Training ad development programs
Structured career planning process
Global career opportunities
Wipro
Companys brand as an employer
Early opportunities for growth
High degree of autonomy
Value compatibility
Innovative people program
TCS
The group brand equity
Strong corporate governance and citizenship
Culture
Values
Company reputation
Quality of people in the organization
Employee development and career growth
Risk taking
Leading technologies
Trust
Dependent care
Alternate work schedules
Vacations
Wellness
Work environment: It includes efficient managers, supportive coworkers, 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.
Growth and Career Growth and development are the integral part of
every individuals career. If an employee can not foresee his path of
career development in his current organization, there are chances that
hell leave the organization as soon as he gets an opportunity. The
important factors in employee growth that an employee looks
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, conseling services, etc
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:
By providing feedback
By giving recognition and rewards
By counseling them
By providing emotional support
RESEARCH METHODOLOGY
Research Design:
The research design indicates the type of research methodology under taken to
collect the information for the study.
The researcher used both descriptive and analytical type of research design for
his research study. The main objective of using descriptive research is to
describe the state of affairs as it exits at present. It mainly involves surveys and
fact finding enquiries of different kinds. The researcher used descriptive
research to discover the characteristics of customers. Descriptive research also
includes demography characteristic of consumer who use the product.
The researcher also used analytical research design to analyze the existing facts
from the data collected from the customer.
Area of study:
The area of study is confined to employees of Private School In Sagar City.
Research instrument:
The Structured questionnaire is used as the research instrument for the study.
Questionnaire Design:
The questionnaire framed for the research study is a structured questionnaire in
which all the questions are predetermined before conducting the survey. The
form of question is of both closed and open type.
The scales used to evaluate questions are:
Dichotomous scale (Yes or No)
Likert 5 point scale (Highly satisfied, satisfied, Neither Satisfied nor
dissatisfied, Dissatisfied, Highly dissatisfied)
Category scale (Multiple items)
Ranking type (R1, R2, R3)
The questionnaire for the research was framed in a clear manner such that it
enables the respondents to understand and answer the question easily. The
questionnaire was designed in such a way that the questions are short and
simple and is arranged in a logical manner.
Pilot study:
It is appropriate to conduct pilot survey to check the reliability of the
questionnaire. So pilot study was conducted on 5 respondents which is a 10% of
the sample.
Sampling design:
A Sample design is a definite plan for obtaining a sample from a given
population. It is the procedure used by the researcher in selecting items for the
sample.
Sample size:
Sample size=125 samples, variance and confidence methods are used for
determining sample size.
Sampling Technique:
The researcher adopted simple random sampling for the study.
Low,
medium and
high level.
Low Level Employee Retention Strategies:
Appreciating and recognizing a well done job
Personalized well done and thank-you cards from supervisors
Congratulations e-cards or cards sent to spouses/families
Voicemails or messages from top management
Periodic days off for good performance
Rewards ( gift, certificates, monetary and non monetary rewards)
Recognizing professional as well as personal significant events
Wedding gifts
Anniversary gifts
New born baby gifts
Scholarships for employees children
Get well cards/flowers
Birthday cards, celebrations and gifts
Providing benefits
Home insurance plans
Legal insurance
Travel insurance
Disability programs
Providing perks: It includes coupons, discounts, rebates, etc
Discounts in cinema halls, museums, restaurants, etc.
Retail store discounts
Computer peripherals purchase discounts
Providing workplace conveniences
On-site ATM
On-site facilities for which cost is paid by employees
laundry facility for bachelors
Shipping services
Assistance with tax calculations and submission of forms
Financial planning assistance
Casual dress policies
Facilities for expectant mothers
Parking
Parenting guide
Lactation rooms
Flexi timings
Fun at work
Celebrate birthdays, anniversaries, retirements, promotions, etc
Holiday parties and holiday gift certificates
Occasional parties like diwali, holi, dushera, etc
Organize get together for watching football, hockey, cricket matches
Organize picnics and trips for movies etc
Sports outings like cricket match etc
Indoor games
Occasional stress relievers
Casual dress day
Green is the color day
Handwriting analysis
Tatoo, mehandi, hair braiding stalls on weekends
Mini cricket in office
Ice cream Fridays
Holi-Day breakfast
Employee support in tough time or personal crisis
Personal loans for emergencies
Childcare and eldercare services
Employee Assistance Programs ( Counseling sessions etc)
Emergency childcare services
Medium Level Strategies for Employee Retention
Appreciating and recognizing a well done job
Special bonus for successfully completing firm-sponsored certifications
Benefit programs for family support
Child adoption benefits
Flexible benefits
Dependents care assistance
Medical care reimbursement
Providing conveniences at workplace
Gymnasiums
Athletic membership program
Providing training and development and personal growth opportunities
Sabbatical programs
Professional skills development
Individualized career guidance
High Level Strategies
Employee turnover
affects
the whole
Feedback
Feedback acts as a channel of communication between the employee and his
manager. The amount of information employees receive about how well or how
poorly they have performed is what we call feedback. It is a dialog between a
manager and an employee which acts as a way of sharing information about the
performance. It suggests where the employee performance is effective and
where performance has to improve. Managers can provide either positive
feedback or negative feedback to employees. This feedback helps the employee
assess his performance and identify the improvement areas. Positive feedback
communicates
managerial
satisfaction.
Positive
recognition
for
good
Category A: These are the employees who lack communication with their
employers.
Category C: These are the employees who have proper, well structured
communication with their employers. Communication is also the way to win the
employees trust in the organization. Employees trust the employers who are
friendly and open to them. This trust leads to employee loyalty and finally
retention.
Employers also feel that the immediate supervisors are the most authenticated
and trusted source of information for them. So the organizations should hire
managers who are active communicators. Communication mediums.
Open door policy: Organizations should support open door policies so that the
employees feel comfortable and are able to express their doubts and feeling to
their employers. Frequent meetings and Social gatherings Emails, Newsletters,
Intranet and many more. So there should be effective communication across the
organization and this communication should be two-way. Communication alone
can lead to unimaginable heights of employee retention.
New job offer: An attractive job offer which an employee thinks is good for
him with respect to job responsibility, compensation, growth and learning etc.
can lead an employee to leave the organization.
Managing Employee Retention:
The task of managing employees can be understood as a three stage process:
1. Identify cost of employee turnover.
2.Understand why employee leave.
3.Implement retention strategies
The organizations should start with identifying the employee turnover rates
within a particular time period and benchmark it with the competitor
organizations. This will help in assessing the whether the employee retention
rates are healthy in the company. Secondly, the cost of employee turnover can
be calculated. According to a survey, on an average, attrition costs companies 18
months salary for each manager or professional who leaves, and 6 months pay
for each hourly employee who leaves. This amounts to major organizational and
financial stress, considering that one out of every three employees plans to leave
his or her job in the next two years.
Understand why employees leave :
Why employees leave often puzzles top management. Exit interviews are an
ideal way of recording and analyzing the factors that have led employees to
leave the organization. They allow an organization to understand the reasons for
leaving and underlying issues. However employees never provide appropriate
response to the asked questions. So an impartial person should be appointed
with whom the employees feel comfortable in expressing their opinions.
companies are going through more transitions like mergers and acquisitions.
They need to give key people an attractive incentive to stay on through these
transitions to ensure productivity. Retention bonuses have proven to be a useful
tool in persuading employees to stay. A retention bonus plan is not a panacea.
According to a survey, non management employees generally receive about 10
percent of their annual salaries in bonuses, while management and top-level
supervisors earn an additional 50 percent of their annual salaries. While bonuses
based on salary percentages are the generally used, some companies choose to
pay a flat figure. In some companies, bonuses range from 25 percent to 50
percent of annual salary, depending on position, tenure and other factors.
Employees are chosen for retention bonuses based on their contributions to
management and the generation of revenue. Retention bonuses are generally
vary from position to position and are paid in one lump sum at the time of
termination. However, some companies pay in instalments as on when the
business cycle completes. A retention period can run somewhere between six
months to three years. It can also run for a particular project. A project
has its own life span. As long as the project gets completed, the employees who
have worked hard on it are entitled to receive the retention bonus. For example,
the implementation of a system may take 18 months, so a retention bonus will
be offered after 20 months. Although retention bonuses are becoming more
common everywhere, some industries are more likely than others to offer them.
Retail/wholesale companies are the most appropriate to implement stay-pay
bonuses, followed by financial service providers and manufacturing firms.
Companies of all sizes use retention bonus plans to keep knowledge employees
retained in the company. To retain its key senior employees post merger with
EDS Corporation, Mphasis is providing cash component based retention bonus
plan for its employees. This is mainly to retain good employees and provide
them a cash incentive to keep them motivated.
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 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 over burdened.
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 counsellors as well.
How to Improve Employee Retention?
People want to enjoy their work so make work fun and enjoyable.
Understand that employees need to balance life and work so offer flexible
starting times and core hours. Provide 360 feedback surveys and other
questionnaires to foster open communication. Consider allowing anonymous
surveys occasionally so employees will be more honest and candid with their
opinions. Provide opportunities within the company for career progression and
cross-training. Offer attractive, competitive benefits .
One of the keys to avoiding turnover is to make rewards count. Rewards are to
be immediate, appropriate, and personal. Organizations may want to evaluate
whether getting a bonus at the end of the year is more or less rewarding than
getting smaller, more frequent payouts. Additionally, a personal note may mean
more than a generic company award. Employees should be asked for input on
their most desirable form of recognition. Use what employees say when it
comes time to reward for performance.
Designing a Rewards and and Recognition Solution
In designing a rewards and recognition program, the following guidelines
should be considered.
Rewards should be visible to all members of the organization.
Rewards should be based on well-defined, credible standards that have
been developed using observable achievements.
Rewards should have meaning and value for the recipient.
Rewards can be based on an event (achieving a designated goal) or based
on a time frame (performing well over a specific time period).
Rewards that are spontaneous (sometimes called on-the-spot awards) are
also highly motivating and should also use a set criteria and standard to
maintain credibility and meaning.
Rewards should be achievable and not out of reach by employees.
Nonmonetary rewards, if used, should be valued by the individual. For
example, an avid camper might be given a 10-day pass to a campsite, or,
if an individual enjoys physical activity, that employee might be given a
spa membership. The nonmonetary rewards are best received when they
are thoughtfully prepared and of highest quality. Professionalism in
presenting the reward is also interpreted as worthwhile recognition.
Rewards should be appropriate to the level of accomplishment received. A cash
Variables
No of respondents
No of respondents
in %
Excellent
30
60%
Good
15
30%
Average
10%
Poor
0%
CHART-1
Job environment and Working conditions
Average Poor
0%
10%
Excellent
Good
30%
Good
Excellent
60%
Average
Poor
INTERPRETATION
The above graph reveals that 60% of the employees feel that job environment
and working conditions are excellent ( i.e they are absolutely satisfied).30% of
the employees feel that job environment and working conditions are good (i.e
they are satisfied).10% of the employees feel that job environment and working
conditions are average(i.e they are partially satisfied). 0%( i.e none of the
employees feel job environment and working conditions are poor).
TABLE-2
PERCEPTION ABOUT THE GROWTH AND SECURITY OPPORTUNITIES
Variables
No of respondents
No of respondents
in %
Excellent
25
50%
Good
10
20%
Average
15
30%
Poor
0%
CHART-2
INTERPRETATION
The above graph reveals that50% of the employees feel that the
growth and security opportunities are Excellent that is they are absolutely
satisfied.20% of the employees feel that the growth and security opportunities
are Good that is they are satisfied.30% of the employees feel that the growth
and security opportunities are Average that is they are partially satisfied.0% i.e
none of the employees feel that the growth and security opportunities are Poor.
TABLE -3
OPINION ABOUT THE CAREER-PLANNING PROGRAM IN THE ORGANIZATION
Variables
No of respondents
No of respondents
in %
Excellent
20
40%
Good
20
40%
Average
10
20%
Poor
0%
CHART-3
INTERPRETATION
The above graph reveals that40% of the employees feel that the
growth and security opportunities are Excellent that is they are absolutely
satisfied.40% of the employees feel that the growth and security opportunities
are Good that is they are satisfied.20% of the employees feel that the growth
and security opportunities are Average that is they are partially satisfied.0% i.e
none of the employees feel that the growth and security opportunities are Poor.
TABLE-4
PERCEPTION ABOUT THE PAY STRUCTURE IN THE ORGANIZATION
Variables
No of respondents
No of respondents
in %
Excellent
25
50%
Good
10
20%
Average
15
30%
Poor
0%
CHART-4
INTERPRETATION
The above graph reveals that50% of the employees feel that the
growth and security opportunities are Excellent that is they are absolutely
satisfied.20% of the employees feel that the growth and security opportunities
are Good that is they are satisfied.30% of the employees feel that the growth
and security opportunities are Average that is they are partially satisfied. 0% i.e
none of the employees feel that the growth and security opportunities are Poor.
TABLE-5
OPINION ABOUT THE PROMOTION SYSTEM IN THE ORGANIZATION
Variables
No of respondents
No of respondents
in %
Excellent
10
20%
Good
25
50%
Average
10
20%
10%
Poor
CHART-5
INTERPRETATION
The above graph reveals that20% of the employees feel that the
growth and security opportunities are Excellent that is they are absolutely
satisfied.50% of the employees feel that the growth and security opportunities
are Good that is they are satisfied.20% of the employees feel that the growth
and security opportunities are Average that is they are partially satisfied. 10%
i.e none of the employees feel that the growth and security opportunities are
Poor.
TABLE-6
ABLE TO LEARN AND ACQUIRE NEW SKILLS IN THE ORGANZATION
Variables
No of respondents
No of respondents
in %
Excellent
25
50%
Good
15
30%
Average
10
20%
Poor
CHART-6
0%
INTERPRETATION
The above graph reveals that50% of the employees feel that the
growth and security opportunities are Excellent that is they are absolutely
satisfied.30% of the employees feel that the growth and security opportunities
are Good that is they are satisfied.20% of the employees feel that the growth
and security opportunities are Average that is they are partially satisfied. 0% i.e
none of the employees feel that the growth and security opportunities are Poor.
TABLE-7
STEPS TAKEN FOR JOB ENRICHMENT FOR EMPLOYEES
Variables
No of
No of respondents
respondents in %
Deliberate upgrading of
responsibility
10
20%
14
28%
20
40%
12%
CHART-7
INTERPRETATION
The above graph reveals that 20% of the employees feel that Job
Enrichment will lead to deliberate upgrading of responsibility. 28% of the
employees feel that Job enrichment will widen the scope of activities.40% of the
employees feel that Job Enrichment will set challenges in work.12% of the
employees feel that Job Enrichment will give exposure to variety of jobs.
TABLE -8
PURPOSE OF JOB DESIGN AND GOAL SETTING IN THE ORGANIZATION
Variables
No of
respondents
No of respondents in
%
14%
18
36%
10%
satisfaction
All the above
20
40%
CHART-8
INTERPRETATION
The above graph reveals that14% of the employees feel that Job
Design and Goal setting will facilitate work flow. 36% of the employees feel that
Job
Design
and
Goal
setting
will
lead
to
effective
co-ordination
and
integration.10% of the employees feel that Job Design and Goal setting will lead
to positive impact on employee satisfaction.40% of
the employees feel that all the above three factors are important for Job Design
and Goal setting.
TABLE-9
PERCEPTION ABOUT INTEGRATION OF JOB, CAREER, FAMILY LIFE AND LEISURE
TIME
Variables
No of respondents
No of respondents
in %
Excellent
20
40%
Good
25
50%
Average
10%
Poor
0%
CHART-9
INTERPRETATION
The above graph reveals that 40% of the employees feel that the
integration of job, career, family life and leisure time are excellent that is they
are absolutely satisfied.50% of the employees feel that the integration of job,
career, family life and leisure time are good that is they are satisfied.10% of the
employees feel that the integration of job, career, family life and leisure time are
average that is they are partially satisfied.0% i.e none of the employees feel that
the integration of job, career, family life and leisure time are poor.
TABLE -10
OPINION ABOUT THE LEAVES PROVIDED BY THE ORGANIZATION
Variables
No of respondents
No of respondents
in %
Excellent
10
20%
Good
35
70%
Average
10%
Poor
0%
CHART-10
INTERPRETATION
The above graph reveals that20% of the employees feel that the
leaves provided by the organization are excellent that is they are absolutely
satisfied.70% of the employees feel that the leaves provided by the organization
are good that is they are satisfied.10% of the employees feel that the leaves
provided by the organization are average that is they are partially satisfied.0%
i.e none of the employees feel that the leaves provided by the organization are
poor.
FINDINGS
It is found out that, 40% of respondents are aware of HR Policies and 60 %
of respondents are not aware of HR Policies.
It is found out that, 76% of respondents are getting right amount of accurate
information at right time and 24% of respondents are not getting right amount
of accurate information at right time.
It is found out that, 82% of respondents are able to meet superiors
expectation and 18% respondents are not able to meet superiors expectation.
It is found out that,57% of respondents feels that there pay is on par with
compare to employees handling similar responsibilities, and 39% of
respondents feels that there pay is less with compare to employees handling
similar responsibilities.
It is found out that, 70% of respondents are satisfied with hygiene and
cleanliness of company infrastructure and 30% of respondents are not satisfied
with hygiene and cleanliness of company infrastructure.
It is found out that, 40% of respondents are satisfied with Availability of
system, storage facilities of company and 60% of respondents are not satisfied
with Availability of system, storage facilities of company.
It is found out that, 78% of respondents skills are recognized by superiors
and 22% of respondents skills are not recognized by superiors.
It is found out that, 74% of respondents feel that superiors are taking efforts
to motivate them and 26% of respondents feel that superiors are not taking
efforts to motivate them.
It is found out that, 83% of respondents feel that workload is manageable
and 10% of respondents feel that workload is very hard to manage.
It is found out that,55% of respondents feels that the field worker are able to
get updates on internal activities, and 45% of respondents feels that the field
worker are not able to get updates on internal activities.
It is found out that, 89% of respondents feel that the superiors are easily
accessible and 11% of respondents feel that the superiors are not easily
accessible.
It is found out that, 51% of respondents feel that their complaints are
resolved quickly and 49% of respondents feel that their complaints are not
resolved quickly.
From weighted Average analysis it is found that most of the respondents are
satisfied with the working hours of the organization
From weighted Average analysis it is found that roles & responsibilities are
clearly defined by the Reporting heads.
From weighted Average analysis it is found that employees feel that their
superior's commitment towards job is good.
From weighted Average analysis it is found that respondents feel that
training and orientation programs are neither good nor bad.
From weighted Average analysis it is found that most of the respondents are
satisfied with job.
From chi-square it is found that there is a significant relationship between
Work Culture of the Company and interpersonal relationship between
employees.
SUGGESTIONS
Employee should be provided with proper training.
Conclusion
Retention is an important concept that has been receiving considerable attention
from academicians, researchers and practicing HR managers. In its essence,
Retention comprises important elements such as the need or content, search and
Recommendations
1. Develop an attractive employee value proposition.
An employee value proposition means that your company has something
attractive to offer that is perceived as valuable to an employee. as an employer,
QUESTIONNAIRE
NAME:
DEPARTMENT:
1. What is your opinion about the job environment and working conditions?
a. Excellent b. Good c. Average d. Poor
2. What is your perception about the growth and security opportunities?
a. Excellent b. Good c. Average d. Poor
3. What is your perception about the career-planning program in the organization?
a. Excellent b. Good c. Average d. Poor
4. What is your perception about the pay structure in the organization?
a. Excellent b. Good c. Average d. Poor
5. What is your opinion about the promotion system?
a. Excellent b. Good c. Average d. Poor
6. What is your opinion about that you are able to learn and new skills in this
Organization?
a. Excellent
b. Good
c. Average
d. Poor
7. What are the steps taken for the job enrichment for employees?
a. Deliberate upgrading of responsibility
b. Widening the scope of activities
c. Setting the challenges in work
d. Giving exposure to variety of jobs
8. What is the purpose of job design and goal setting in the organization?
a. It facilitates work flow
b. Effective co-ordination and integration
c. Positive impact on employee satisfaction
d. All the above
9. What is your perception about the sensible integration of job, career, family life
and leisure time?
a. Excellent
b. Good
c. Average
d. Poor