News Reader (New:
Show short preview
Login via Facebook?
You are currently logged in to Facebook. Would you like to autologin to the network?
Remember my choice
» Attrition Control And Employee Retention
Attrition Control And Employee Retention
This is a research report on
Attrition Control And Employee Retention
Human Resource Management
HR Planning, Recruitment & Selection
section of our research repository.
4670 views, 1 comments, Last Update: May 25, 2012.
TRAINING PROJECT REPORT
NAME OF PROJECT:-
EMPLOYEE ATTRITION AND RETENTION A CHALLENGE
SUBMITTED TO HIMACHAL PRADESH UNIVERSITY BUSSINESS SCHOOL SHIMLA , IN THE PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF ?MASTER OF BUSINESS ADMINISTRATION? (2010-2012)
SUBMITTED BY: ADITI RANA 2475 MBA IVth SEM (HR & MARKETING)
The study is the result of work undertaken by me as a researcher supported and guided by my project guide and mentor Prof. Suresh Kumar, HPUBS, Shimla. He also assisted research Design, coordination and report writing. Besides several other people have been extremely helpful in writing this report. I feel indebted to other faculty members for being a continuous source of inspiration, learning and advice, which helped me throughout the time period of my learning in University Business School. The research project was discussed in details with wide range of experts and findings were also discussed shortly before the publication of this report. The value of contributions made in these discussions was considerable, and inputs of all participants and contributors are hereby acknowledged. I thank Mr. Sami Butt Sir Circle Head HP-Circle ( RELIANCE COMM) for providing me the opportunity to undergo training at Reliance Communication ltd. Special Thanks to my immediate supervisor Mr. Mayank Verma. Their support has been exemplary. Most of all, I want to acknowledge and thank faculty members and Reliance staff for constantly encouraging and supporting me throughout my training.
PREFACE Management is an art and science both. It is science because it consists of various principles and art, because various managers apply them in their own way or approach. Therefore in order to develop practical knowledge for whatever has been learnt during the MBA course management training is undertaken. ?On the job training? is an important part of any professional course. The eight weeks practical on the job training, which is incorporated in the MBA course, helps the students to see for themselves how they fit in typical business enterprise.
The training stint at RELIANCE COMMUNICATION, Shimla gave me practical insight into the working of the company especially in the field of HR and MARKETING, which until now was limited to books only. But these eight weeks have been special and proved to be a value addition and how actually functions are performed in the organization. This training helped me to get a close look into the employee expectations from the organization and what are the factors that motivate them to perform well within an organization.
The first part of the report is all about the Company and its different departments, the functioning, the structure and other important information.
The second part is the project report related to the ?employee attrition and suggesting ways to retain employees from the organization.?
1. 2. 3.
Acknowledgement Preface Introduction to the project The Indian Telecom Sector: An outlook Company’ Profile. Company’s Profile
2–3 3–4 5–6 6–7
i) ii) iii) iv) v) vi) vii)
Reliance Communication Limited Founder History Vision Mission Objectives Ethics and Culture 8-9 10 – 12 12 - 13 13 – 14 14 - 15 15 – 16 16 – 17 18 – 19 19 – 20 16 – 17 17 – 18 18 – 19 19 – 25
5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16.
Reliance communication limited Departmental functions: Hr structure at reliance:Hr functions:Limitation and risk of the project :Project work:Statement of problem:Research methodology:Analysis and interpretation:Conclusion and recommendation:Bibliography:Annexure :-
INTRODUCTION TO THE PROJECT: OBJECTIVE:The objective of the study is to find and understand the probable reasons for employees leaving the organization, i.e. employee attrition, and its effect on the organization and finding different measure for employee retention.
THE INDIAN TELECOM SECTOR: AN OUTLOOK :For the past decade or so, telecommunication activities have gained momentum in India. Efforts have been made from both governmental and non-governmental platforms to enhance the infrastructure. The idea is to help modern telecommunication technology penetrate India’s socio-culturally diverse society, and to transform it into a nation of technology aware people. India is the fourth largest telecom market in Asia after China, Japan and South Korea. The Indian Telecom network is the eighth largest in the world and the second largest among emerging economies. The mobile services were commercially launched in August 1995 in India. In the initial 5-6 years the average monthly subscribers additions were around 0.05 to 0.1 million only and the total mobile subscribers base in December 2002 stood at 10.5 millions.
Indian telecom sector has undergone a major process of transformation through significant policy reforms. The reforms began in 1980’s with telecom equipment manufacturing being opened for private sector and were later followed by National Telecom Policy (NTP) in 1994 and NTP1999. Although mobile telephones followed the New Telecom Policy 1994, growth was tardy in the early years because of the high price of handsets as well as the high tariff structure of mobile telephones. The New Telecom Policy in 1999, the industry heralded several pro consumer initiatives. Mobile subscriber additions started picking up. The mobile tariffs in India have also
become lowest in the world. A new mobile connection can be activated with a monthly commitment of US$5 only. Historically, the telecom network in India was owned and managed by the Government considering it to be a natural monopoly and strategic service, best under state’s control. However, in 1990’s examples of telecom revolution in many other countries, which resulted in better quality of service and lower tariffs, led Indian policy makers to initiate a change process finally resulting in opening up of telecom services sector for the private sector. Policy reforms can be broadly classified in three distinct phases 1. The Decade of 1980’s saw private sector being allowed in
telecommunications equipment manufacturing. Mahanagar Telephone Nigam Limited (MTNL) and Videsh Sanchar Nigam Limited (VSNL) were formed and a Telecom Commission was set up to give focus to telecommunication policy. 2. In 1990s, telecommunication sector also benefited from the general opening up to the economy. NYP 1994 was the first attempt to give a comprehensive roadmap for the Indian telecommunication sector. Availability of telephones on demand (targeted by 1997), Universal service covering all villages and one PCO pr 500 persons in urban areas at the earliest (targeted to be achieved by 1997).Telecom services at affordable and reasonable prices. 3. NTP 1999 brought in the third generation of reforms in the Indian telecommunication sector. Cellular Services There are 25 private companies providing Cellular Services in 23 Telecom Circles and 4 Metro cities, covering 1500 towns across the country. Presently, there are five private service operators in each area and an incumbent state operator. Almost 80% of the cellular subscriber base belongs to the pre-paid segment.
Growth Drivers Opening up of international and domestic long distance telephony services are growth drivers in the industry. Cellular operators now get substantial revenue from these services, and compensate them for reduction in tariffs on airtime, which along with rental was the main source of revenue. The reduction in tariffs for airtime, national long distance, international long distance, and Handset price has driven demand.
Upcoming Trends in Telecom ? As today’s life is becoming more mobile, ?roaming business? would increase in future and the roaming tariffs may be removed by regulatory agencies. ? Due to liberalization and opportunity creation, the tariffs are being lowered due to the cut throat competition. Thus, ?TD Business? is set to boom in future. ? The prices of Personal Computers and Laptops are falling drastically. Thus their sales are increasing rapidly. So the ?broadband business?, is set to boom.
Present Scenario In the fixed line arena, BSNL and MTNL are the incumbents in their respective areas of operation and continue to enjoy the dominant service provider status in the domain of fixed line services. For example BSNL controls 79% of fixed line share in the country. On the other hand, in the mobile telephony space, Airtel controls 21.4% subscriber base followed by Reliance with 20.3%, BSNL with 18.6% subscriber base.
Major Players There are three types of players in telecom services: ? ? State owned companies (BSNL and MTNL) Private Indian owned companies (Reliance Infocomm
TataTeleservices) ? Foreign invested companies (Bharti Tele-Ventures, Idea Cellular)
Some of the key competitors of the Reliance in the mobile phone industry are: ? ? ? ? ? ? ? Bharti Airtel TATA BSNL IDEA Aircel DoCoMo MTNL(GSM)
THE FOUNDER OF RELIANCE Few men in history have made as dramatic a contribution to their country’s economic fortunes as did the founder of Reliance, Sh. Dhirubhai H Ambani. Fewer still have left behind a legacy that is more enduring and timeless. As with all great pioneers, there is more than one unique way of describing the true genius of Dhirubhai: The corporate visionary, the unmatched strategist, the proud patriot, the leader of men, the architect of India’s capital markets, the champion of shareholder interest. Dhirubhai is widely regarded as the father of Indian’s capital markets. In 1977,when Reliance Textile Industries Limited first went public, the Indian stock Markey was a place patronized by a small club of elite investors which dabbled in a handful of stocks. Undaunted, Dhirubhai Managed to convince a large number of first –time retail investors to participate in the unfolding Reliance story and put their hard-earned money in the Reliance Textile IPO, promising them, in exchange for their trust, substantial return on their investments. It was to be the start of one of great stories of mutual respect and reciprocal gain in the Indian markets. Throughout this amazing journey, Dhirubhai always kept the increase of the ordinary shareholder uppermost in mind, in the process making millionaires out of many of the initial investors in the Reliance stock, and cresting one of the world’s largest shareholder families. Anil Ambani:(Born 4 June 1959) is an Indian business baron and chairman of Reliance Group. Anil's elder brother, Mukesh Ambani, is also worth more than 29 billion dollars, and owns another company called Reliance Industries. As of 2010, he is the fourth richest Indian with a personal wealth of $13.7 billion, behind Mukesh Ambani, Lakshmi Mittal and Azim Premji. He is a member of the Board of Overseers at the Wharton School of the University of Pennsylvania. He is also the member of the Board of Governors of the Indian Institute of Technology Kanpur; Indian Institute of Management, Ahmedabad. He is a member of the Central Advisory Committee, Central Electricity Regulatory Commission. He is also the Chairman of Board of Governors of DA-IICT, Gandhinagar. He was also the Member of Parliament in Rajya Sabha.
Reliance Anil Dhirubhai Ambani Group (usually referred as Reliance Group) is one of India's largest conglomerates, headquartered in Navi Mumbai, India. The company, which was formed after Dhirubhai Ambani's business empire was divided up, is headed by his younger son Anil Ambani. It has a market capitalization of US$ 15 billion, net assets US$ 7 billion. The ADAG Reliance Group has a business presence that extends to over 20,000 towns and 4.5 lakhs (450,000) villages in India, and across the globe. The shareholder base is over 12 million, among the largest in the world. The group is present in many sectors including Telecom, Capital, Power, Infrastructure, Entertainment and Health. Organizations, like individuals, depend for their survival, sustenance and growth on the support and goodwill of the communities of which they are an integral part, and must pay back this generosity in every way they can. This ethical standpoint, derived from the vision of our founder, lies at the heart of the CSR philosophy of the Reliance Group.
Reliance Anil Dhirubhai Ambani Group: ? Reliance Communication (R Com) is the second largest Telecom company in India in terms of customers. The Company has a customer base of 125 million including over 2.5 million individual overseas retail customers. It ranks among the Top 5 Telecom companies in the world by number of customers in a single country. Reliance Communications corporate clientele includes 2,100 Indian and multinational corporations, and over 800 global, regional and domestic carriers. A pan-India network, covering over 24,000 towns and 600,000 villages has been established by Reliance Communications. Reliance Communications owns and operates the next generation IP enabled connectivity infrastructure comprising over 190,000 kilometers of fiber optic cable systems in India, USA, Europe, Middle East and the Asia Pacific region.
Reliance Globalcom serves over 2,100 enterprises, 200 carriers and 2.5 million retail customers in 163 countries across 6 continents. Reliance Communication has acquired 3G license in 13 circles out of total 22 circles.
RELIANCE COMMUNICATIONS LIMITED History of Reliance communication ? Reliance communications is the flagship company of the Anil Dhirubhai Ambani Group (ADAG) of companies. Listed on the National Stock Exchange and Bombay Stock Exchange, it is India’s leading integrated telecommunication company with over 85 million customers. ? The Late Dhirubhai Ambani dreamt of digital India – India where the common man would have access to affordable means of information and communication. Dhirubhai, who single-handedly built India’s largest private sector company virtually from scratch, had stated as early as 1999: ?Make the tools of information and communication available to people at an affordable cost. They will overcome the handicaps of illiteracy and lack of mobility.? ? It’s headquartered in Navi Mumbai, India. It is the 16th largest operator in the world with more than 128 million subscribers. It ranks among the top 5 telecommunication companies. The Reliance Anil Dhirubhai Ambani currently has a net worth in excess of Rs.64,000 crore(US$ 13.6 billion), cash flow of Rs.13,000 crore($2.8 billion), and a net profit of Rs.8,4000 crore($1.8 billion). ? Reliance Communication formerly Reliance India Mobile, launched on December 28, 2002. Reliance communications has a reliable, high-capacity, integrated (both wireless and wire line) and convergent (voice, data and video) digital network. It is capable of delivering a range of services spanning the entire infocomm (information and communication) value chain, including infrastructure and services-for enterprises as well as individuals, revolutions, and consulting. Today, Reliance communications is revolutionizing the way India communicates and networks, truly bringing about a new way of life. ? RCom’s business encompasses a complete range of telecom services covering mobile and fixed line telephony. It includes broadband, national and international long distance services and data services along with an exhaustive range of value-added services and applications.
Vision ?We will leverage our strengths to execute complex global-scale projects to facilitate leading-edge information and communication services affordable to all individual consumers and business in India. We will offer unparalleled value to create customer delight and enhance business productivity. We will also generate value for our capabilities beyond Indian borders and enable millions of India’s knowledge workers to deliver their services globally. Profit should be maximized and cost should be reduced. Mission ?KAR LO DUNIYA MUTTHI MEIN? It is the mission of the company to become number one in telecommunication sector and provide high quality product and services at cheapest possible price. By the way of maximizing the output and consequently the sales. The mission of any organization should be compelling and should contribute to the success of the organization. Modernization Development Production
RELIANCE COMMUNICATION LIMITED
Public (BSE: RCOM)
Navi Mumbai, Maharashtra,India
Anil Ambani (Chairman) & (MD)
Telecommunications , Wireless
Mobility , Telephone , Internet/Data , Entertainment
Ethics and Culture Reliance – ADAG continually reviews corporate governance best practices to ensure that they reflect global developments. It takes feedback into account, in its periodic reviews of the guidelines to ensure their continuing relevance, effectiveness and responsiveness to needs of local and international investors and other stakeholders.
HR STRUCTURE AT RELIANCE:CORPORATE HR: Activities taken up by corporate HR:? ? ? Policy making Implementing suggestion Strategic planning
ENTITY HR: Activities taken up by Entity HR are:? ? Execution of policies and Practices Targets for recruitment of circle HR
CIRCLE HR: Activities taken up by the Circle HR:? Recruitment ? Appointment ? Training ? Payroll ? Employees Issues ? Exit Full And Final
HR FUNCTIONS:TALENT ACQUISITION:o o o o o o o o o o o o o o o E-Recruitment port:CRC Pre-medical E-joining R-matrix Change Designation O&M Reports Change HR Confirmation Online MAT for HR IJP Portal Induction On boarding portal On Boarding MIS
TALENT MANAGEMENT:o o o o o o o o o o o o Buddy programs Internal Transfer Protocol Employee Communication Employee Welfare POA Automation Employee Stock option plan ( ESOP) Special Monetary Program Scheme Employee Health E-Separation Performance Management System Training Career Planning
TALENT DEVELOPMENT:o o o o o Performance Management System Training Career Planning Suggestion Planning Rewards and recognition
HUMAN RESOURCE MANAGEMENT Human resource management (HRM) is the strategic and coherent approach of management an organization's most valued assets - the people working there who individually and collectively contribute to the achievement of the objectives of the business. The terms "human resource management" and "human resources" (HR) have largely replaced the term "personnel management" as a description of the processes involved in managing people in organizations. Human Resource management is evolving rapidly. Human resource management is both an academic theory and a business practice that addresses the theoretical and practical techniques of managing a workforce. The Human Resources Management (HRM) function includes a variety of activities, and key among them is deciding what staffing needs you have and whether to use independent contractors or hire employees to fill these needs, recruiting and training the best employees, ensuring they are high performers, dealing with performance issues, and ensuring your personnel and management practices conform to various regulations. Activities also include managing your approach to employee benefits and compensation, employee records and personnel policies. Usually small businesses (for-profit or nonprofit) have to carry out these activities themselves because they can't yet afford part- or full-time help. However, they should always ensure that employees have -- and are aware of -- personnel policies which conform to current regulations. These policies are often in the form of employee manuals, which all employees have. Key areas where HR manager need to focus:17
1. Pre-Recruitment Process:-
a. Receipt of requirement of manpower from various department heads. b. Scrutinize them and take approval from concerned authorities if the post is new. c. Prepare a recruitment budget and CTC for the employee and take approval. d. Select the appropriate Recruitment process.
2. Recruitment Process a. Prepare Advertisements etc for the recruitment. b. Scrutinize and shortlist the applications received. c. Send interview call letters/mails as required. d. Conduct Interviews through panels. e. Preparation of offer letters as required.
3. Joining Formalities: a. Administrating Joining formalities. b. Pre Employment Reference checks. c. Preparation of Appointment Advice and intimating the same to other departments. d. Preparing and entering new hire paperwork. e. Co coordinating to get Employee ID Cards. f. Handing over the new hire to the concerned HOD/Manager. g. Preparation of Job Profiles co ordination with HOD/Managers for new posts. 4. Employee Personal File Maintenance: a. Opening new file and Closing the Resigned employee’s File. b. Make sure all Employee files are maintained safely with care. c. Make sure all personal records are available in the files. d. Periodic Personal File Auditing. 5. Employee Data Base: a. Keeping Track of Knowledge Management Software. b. Maintenance of HRIS.
6. Confirmation Formalities: a. Intimating the concerned HOD/Manager about the due dates for confirmation. b. Conducting Confirmation Appraisals. c. Co coordinating for Skill Gap Analysis. d. Coordinating to set Quality Objectives for each job profile. e. Ensuring updating of the existing Job Profiles. 7. ISO Compliance: a. Ensuring all the updation of the ISO documentation and HR Formats. b. Learning and enforcing Standard Operating Procedures (SOP). c. Facing the Internal and External Audits, accountable to enforce the correctional actions. 8. Statutory Compliance: a. Handling PF and ESI formalities and coordinating with other departments. b. Handling Apprentice Training, Submitting Periodic Returns to Board. c. Submitting other returns to the labor Department as per Shops and establishment Act. 9. Training And Development: a. Conducting Induction Training for new hires. b. Training Need Analysis based on Skill Gap Analysis, Appraisal. c. Coordinating External and Internal Training Programs. d. Maintaining Training Records. e. Analysis of Training Feedback. 10. Performance Appraisal: a. Prepare the new Appraisal Form. b. Educated employees about self-appraisal. c. Provided inputs to HOD’s for Appraisals. d. Prepared Appraisal Letters. 11. Employee Relation: a. Having formal and Informal counseling with employees. b. Prepared Event Calendar of monthly recreation to motivate employees. c. Handling Corporate Medical Insurance. d. Processing required letters on employee’s request.
12. Report Generation: a. Generating and analyzing Employee Attrition Reports, Training Evaluation, and Manpower Status. b. Weekly and monthly recruitment reports c. Report generation of Pre appraisal, Appraisal and Post Appraisals. d. Salary Details Reports to Accounts Department. e. Reports as per the HOD’s request. 13. Exit Formalities: a. Administering Exit paper work including all statutory requirements. b. Conducting Exit Interviews. c. Preparing Exit Interview Summary. d. Giving post employment reference for relieved employees. e. Processing File to Accounts Department for final settlement. PROBABLE REASONS FOR ATTRITION IN TELECOM: CONCEPTUAL BACKGROUND:ATTRITION:WHAT IS ATTRITION:In the best of worlds, employees would love their jobs, like their co-workers, work hard for their employers, get paid well for their work, have ample chances for advancement, and flexible schedules so they could attend to personal or family needs when necessary. And never leave. But then there's the real world. And in the real world, employees, do leave, either because they want more money, hate the working conditions, hate their coworkers or just want a change. So, what employees are likely to have the highest turnover? Who is likely to stay the longest? Attrition is the reduction in the number of employees through retirement, resignation or death. Attrition rate is the rate of shrinkage in size or number. EMPLOYEE ATTRITION Attrition is a Human Resource Management term that describes the rate at which employees leave a firm and should be replaced by new employee. Attrition is the action of not filing openings created by voluntary resignations or normal retirements.
In fact Attrition doesn't help a HR Manager; it actually makes HR personnel to be overcautious on to the rate of attrition.
INTRODUCTION TO THE PROJECT REPORT:The project is undertaken to measure the attrition rate in Reliance Communication and suggesting ways to Retain the employees. In order to find the Rate of attrition, we need to gather and analysis the data about the employees leaving the organization in the past one year. Analysis of data includes a systematic process of the critical examination of the information obtained through various ways and make decisions regarding the operations of the firm. To fulfill the purpose of the project, regular employee interaction is done as well as their feedback is collected. To draw conclusion, comparative study is done.
NEED OF THE STUDY
Causes of Employee Attrition and a systematic effort by employers to retain them will create and foster an environment in the organization that will encourage current employees to remain employed by having policies and practices in place that address their diverse needs.
SCOPE OF THE STUDY My research covers the study and analysis of reasons of Employee Attrition from Reliance Communication.
OBJECTIVE OF THE PROJECT
? ? ? ?
The objectives of my research study were: To study the Employee satisfaction level in Reliance Communication. To find the probable reasons for employee attrition. To find ways by which employees can be retained.
Statement Of Problem :To find the causes of employee attrition from Reliance Communication and find the ways of Retaining them.
Detailed Survey Of Literature Research methodology:
INTRODUCTION Research methodology is a systematic way to solve a research problem. It is the study to understand how research is being done. Research methodology in common parlance refers to search for knowledge. It is also defined as a movement, a movement from the unknown to the known. The various steps that are followed during the conduct of research along with the logic behind are studied. In it the method relevant to the study is talked about and explained why we are using this particular method. It seems appropriate now to explain the difference between research methods and research methodology. All methods which are used by the researcher during the course of studying his research problem are termed as research methods. When we talk of research methodology we not only talk of the
research methods but also consider the logic behind the method, we use in the context of our research study. The research process consists of a series of closely related activities. The order which has been followed by me in the research of the project undertaken is as follows: RESEARCH OBJECTIVE The objectives to be accomplished are to be kept in mind before the task is undertaken. The questions to which answers are to be sought should be clearly laid well before research.
FORMULATING THE RESEARCH PROBLEM The next step in the research process is the formulation of research problem. The topic of the research project was studied thoroughly and was discussed with my project guide under whom the project study has been done. EXTENSIVE LITERATURE SURVEY For getting the knowledge on my project topic under research previous project reports were thoroughly studied. All the information available about the organization in magazines and internet was gathered and studied. PREPARING THE RESEARCH DESIGN Next problem, which the research faces, is that of research design. In this step the project structure design is done, i.e the structure within which the project research would be conducted. In this project the research design was done as follows: The mean of obtaining the information was through questionnaires. The time available for the project was 45 days. There was no cost factor related to research.
COLLECTION OF DATA The task of data collection begins after a research problem has been defined and research design is chalked out. The data was collected from SAP Reports. QUESTIONNAIRE METHOD This method of data collection is quite popular, particularly in case of big inquiries. Private individuals, research workers, private and public organization adopt this method. In this method a questionnaire is sent to the person concerned with a request to return the answered questionnaire. A questionnaire consist of a number of questions printed or typed in a definite order on a form or set of forms. The questionnaire is mailed or given to the respondents who are expected to read and understand the questions and write down the answers on their own. Merits of questionnaires 1) The responses are gathered in a standardized way, so questionnaires are more objective, certainly more so than interviews. 2) Generally it is relatively quick to collect information using a questionnaire. 3) Potentially information can be collected from a large portion of a group. This potential is not often realized, as returns from questionnaires are usually low. However returns rates can be dramatically improved if the questionnaire is delivered responded to in class time. 4) It is a cost effective method.
Demerits of questionnaires 1) Low rate of return of duly filled in questionnaires: bias due to non response is often in determination.
2) It can be used only when the respondents are educated and cooperative. 3) The control over the questionnaire may be lost once it is sent. 4) There is inbuilt inflexibility because of the difficulty of amending the approach once questionnaires have been dispatched. 5) There is also a possibility of ambiguous replies or omissions of replies altogether to certain questions: interpretation of omissions is difficult. 6) It is difficult to know whether willing respondents are truly representative or not.
PROJECT EXECUTION In the next step, the project was executed. The questionnaires were administered to the subjects so know there response towards market communication and evaluate its significance in influencing their purchase decision. ANALYSIS AND INTERPRETATION The responses of the subject were analyzed and the data was interpreted to provide a meaningful understanding of the research problem. CONCLUSION AND RECOMMENDATION Lastly, the inferences derived were carefully studied so as to arrive at logical and precise conclusion to the problem under study. Based on these conclusions, the recommendations have been made.
LIMITATION AND RISK OF THE PROJECT :1. Employees were not open to their aspirations. 2. Time bound.
ATTRITION OF PRE-PAID MANAGERS (AT GROUND LEVEL):The attrition rate of organization, in the past one year (According to respective clusters) Cluster Baddi Shimla Sirmour Shimla Cluster Hamirpur Kangra Mandi Mandi Cluster Grand Total Total 9 13 10 32 10 10 10 30 62 Resigned 4 9 4 17 3 5 1 9 26 Attrition 44% 69% 40% 53% 30% 50% 10% 30% 42% % Contr. 15% 35% 15% 65% 12% 19% 4% 35%
CALCULATION OF RATE OF ATTRITION:-
FORMULA :Attrition % = No of people moved out of the organization during the period / Total no of people in the organization during the period) * 100
ROOT CAUSE ANALYSIS ( RCA) OF THE PROBLEM:-
ISSUES OF EMPLOYEES AT FIELD LEVEL ( PRE-Paid Managers) :Issues that the field level employees generally come across that leads to disappointment in them and finally their exit from the organization.
Major issues of the employees were:-
CLAIMS :- They find that their claims are not given to them timely and also they wish to have increment in their claims. SALARY ISSUES :- They don’t find their salaries according to industry standards. GROWTH PARAMETER NOT DEFINED :- What factors constitute their growth parameters should be clearly defined by the higher authorities. EMPLOYEE FRIENDLY :- Employees wish to have their say in the decisions of the company. They want that their higher authorities should listen to their grievances.
NO APPRAISALS :- They expect timely appraisals and according to their performance but they feel that they are not provided with the same.
NOT PROPER FEEDBACK:- They expect that their immediate boss should take proper follow up and should provide them the proper feedback COMMITMENT IS NOT MET :- Whatever the commitment is made should be fulfilled. Otherwise it causes resentment among the employees. DOES NOT FEEL CONNECTED:- Events or activities are not done. They don’t feel that they are integral part of the organization as their involvement is not there. NO STAFF CIRCULAR :- Staff circulars keeps the employees informed about the events and various activities going in the organization. But here they find that no staff circulars are rotated. DOES NOT GET MAILS: - E-mails are another way to keep the employees informed about activities of the organization. This factor is not very efficiently followed in the organization. VAS TURNS OUT TO BE PROBLEM FOR CUSTOMERS: - Services bothers customers and they in turn bothers the employees hence employees are not able to perform their work efficiently. The issues lead to dissatisfaction among the employees and finally prompt them to leave the organization.
COST OF ATTRITION Staff attrition (or turnover) and absenteeism represent significant costs to most organizations. It is odd, therefore, that many organizations neither measure such costs nor have targets or plans to reduce them. They add a sum in their budgets for 'temp staff' and 'recruitment' and forget about it. However, it seems to be one of the areas in which HR can make a difference - and one that can be measured in quantifiable, financial terms against targets. If calculating in monetary terms, it includes the following: Costs Due to a Person Leaving 1. Calculate the cost of the person(s) who fills in while the position is vacant. 2. Calculate the cost of conducting an exit interview. 3. Calculate the cost of the manager who has to understand what work remains, and how to cover that work until a replacement is found Recruitment Costs 1. The cost of advertisements or agency costs or employee referral costs. 2. The cost of the internal recruiter's time to conduct the various processes in the interview. Training Costs 1. 2. 3. Calculate the cost of orientation in terms of the new person's salary and the cost of the person who conducts the orientation. Calculate the cost of departmental training as the actual development and delivery cost plus the cost of the salary of the new employee. Calculate the cost of the person(s) who conduct the training. Calculate the cost of various training materials.
Lost Productivity Costs:As the new employee is learning the new job, the company policies and practices, etc. they are not fully productive.
New Hire Costs:Calculate the cost of bring the new person on board. Calculate the cost of a manager's time spent developing trust and building confidence in the new employee's work
Lost Sales Costs:-
The revenue per employee is obtained by dividing total company revenue by the average number of employees in a given year. Whether an employee contributes directly or in directly to the generation of revenue, their purpose is to provide some defined set of responsibilities that are necessary to the generation of revenue.
EFFECTS OF DISSATISFACTION:
ATTRITION OF EMPLOYEES AT BACK OFFICE:-
Solution to the problem:The first and foremost solution can be the organization of employee engagement programs. Employee engagement programs:WHAT IS EMPLOYEE ENGAGEMENT:-
Employee engagement is the heightened emotional connection that an employee feels for his or her organization that influences him or her to exert greater discretionary efforts to his/her work. Effects of employee engagement and empowerment:? ? It has positive correlation with individual, group and organization. Performance in areas such as productivity, retention, turnover, customer service and loyalty.
In order to achieve high employee satisfaction an organization should have: ? ? ? ? Accessible leadership Frequent communication Energized and engaged workforce. Employees should be empowered to satisfy their retailers.
Effects of employee engagement on Effects of employee engagement on employees Financial performance 1. Productivity increases. 2. Relationship increases. with management 1. Recruitment /retention, training cost lowered. 2. Higher organization. employee loyalty to
3. Reduce job stress. 4. Increase turnover. retention rate and
Methods to impact employee engagement: ? ? ? ? ? ? ? ? Empowerment in decision – making viewpoint Recognition programs Workplace culture Organizational culture (employee focused culture) Organization communication Trust and respect Company reputation Access to resources, training, information and opportunity
In order to get the facts Empirical research should be conducted.
Attraction can be made easily but what counts is the retention.
Customer’s service variables are satisfaction and loyalty. Employee variables like satisfaction, enthusiasm, loyalty, commitment, capability, and internal service quality and financial results.
DRIVERS OF EFFECTIVE SERVICE ENVIRONMENT:-
EMPLOYEE COMMITMENT AND LOYALTY
PRODUCTIVITY AND RETENTION
Unhappy or the dissatisfied employees are less productive and more likely to have higher absence rates whereas on the other hand, Satisfied employees are more productive, innovative, loyal have high moral and that ultimately increases productivity.
Satisfaction may be viewed as a passive attribute while more proactive measures such as motivation levels and brand engagement are viewed as more closely to behavioral change, performance and ultimately, the bottom line, performance of the organization.
1. EMPLOYEE RETENTION
2. DETERMINANTS OF EMPLOYEE RETENTION 3. CAREER DEVELOPMENT OPPOURTUNITIES 4. SUPERVISION SUPPORT 5. WORK ENVIRONMENT 6. REWARDS 7. WORK LIFE POLICIES 8. WORK PLACE FLEXIBILITY 9. HYPOTHESIS:
DETERMINANTS OF EMPLOYEE RETENTION Retention Methods Recruiting new staff is expensive, stressful and time-consuming. Once you have good staff it pays to make sure they stay. Here are some effective methods employers utilize in order to keep employees happy and part of their organization instead of looking for employment opportunities elsewhere. Training:Training employees reinforces their sense of value. Through training, employers help employees achieve goals and ensure they have a solid understanding of their job requirements. Mentoring. A mentoring program integrated with a goal-oriented feedback system provides a structured mechanism for developing strong relationships within an organization and is a solid foundation for employee retention and growth. With a mentoring program, an organization pairs someone more experienced in a discipline with someone less
experienced in a similar area, with the goal to develop specific competencies, provide performance feedback, and design an individualized career development plan.
Instil a positive culture A company should establish a series of values as the basis for culture such as honesty, excellence, attitude, respect, and teamwork. A company that creates the right culture will have an advantage when it comes to attracting and keeping good employees . Use communication to build credibility. No matter what the size of the organization, communication is central to building and maintaining credibility. Many employers get communication to ?flow up? through a staff advisory council (or similar group) which solicits and/or receives employees’ opinions and suggestions and passes them on to upper management. It’s also important for employees to know that the employer is really listening and responds to (or otherwise acknowledges) employee input. Show appreciation via compensation and benefits. Offering things like competitive salaries, profit sharing, bonus programs, pension and health plans, paid time off, and tuition reimbursement sends a powerful message to employees about their importance at the organization. Encourage referral and recruit from within. Having current employees offer referrals could help minimize confusion of job expectations. Current employees can realistically describe a position and the environment to the individual he/she is referring. Another way an employer can lessen the impact of turnover is to hire from within, since current employees have already discovered that they are a good fit in the organization.
Coaching/feedback:It’s important for companies to give feedback and coaching to employees so that their efforts stay aligned with the goals of the company and meet expectations. During an employee’s first few weeks on the job, an employer should provide intensive feedback. Employers should also provide formal and informal feedback to employees throughout the year
Provide growth opportunities:An organization should provide workshops, software, or other tools to help employees increase their understanding of themselves and what they want from their careers and enhance their goal-setting efforts. It’s important to provide employees with adequate job challenges that will expand their knowledge in their field Make employees feel valued. Employees will go the extra mile if they feel responsible for the results of their work, have a sense of worth in their jobs, believe their jobs make good use of their skills, and receive recognition for their contributions. Employees should be rewarded at a high level to motivate even higher performance. The use of cash payouts could be used for on-the-spot recognition. These rewards have terrific motivational power Lower stress from overworking and create work/life balance. It’s important to match work/life benefits to the needs of employees. This could be in the form of offering non traditional work schedules (such as a compressed work week, telecommuting, and flex time) or extra holidays. When work-life balance is structured properly, both the employee and employer come out ahead. For example, the employer will experience more productivity in the workplace because employees will be less stressed, healthier, and thus, more productive. Encouraging employees to set work/life goals, such as spending more time with their children, communicates that you really do want them to have a life outside of work and achieve a healthy work/life balance.
Foster trust and confidence in senior leaders Develop strong relationships with employees from the start to build trust. Employees have to believe that upper management is competent and that the organization will be successful. An employer has to be able to inspire this confidence and make decisions that reinforce it. An employer cannot say one thing and do another. For example, an employer shouldn’t talk about quality and then push employees to do more work in less time. In addition, employers need to engage and inspire employees by enacting policies that show they trust them, such as getting rid of authoritarian style of management. Retention of key employees is critical to the long-term health and success of any organization. It is a known fact that retaining your best employees ensures customer satisfaction, increased product sales, satisfied colleagues and reporting staff, effective succession planning and deeply imbedded organizational knowledge and learning. Employee retention matters as organizational issues such as training time and investment; lost knowledge; insecure employees and a costly candidate search are involved. Hence failing to retain a key employee is a costly proposition for an organization. Various estimates suggest that losing a middle manager in most organizations costs up to five times of his salary. Employee retention matters, as, organisational issues such as training time and investment, costly candidate search etc., are involved. Hence, failing to retain a key employee is a costly proposition for any organisation. Various estimates suggest that losing a middle manager in most organisations, translates to a loss of up to five times his salary. Employee Retention Strategies helps organizations provide effective employee communication to improve commitment and enhance workforce support for key corporate initiatives.
The Importance of Retaining Employees The challenge of keeping employees: Its changing face has stumped managers and business owners alike. How do you manage this challenge? How do you build a workplace that employees want to remain with and outsiders want to be hired into?
Successful managers and business owners ask them these and other questions because—simply put—employee retention matters: ? High turnover often leaves customers and employees in the lurch; Departing employees take a great deal of knowledge with them. This lack of continuity makes it hard to meet your organization’s goals and serve customers well. ? replacing employees costs money. The cost of replacing an employee is estimated at up to twice the individual’s annual salary (or higher for Some positions, such as middle management), and this doesn’t even include the cost of lost knowledge. ? recruiting employees consumes a great deal of time and effort, much of it futile. You’re not the only one out there vying for qualified employees, and job searchers make decisions based on more than the sum of salary and benefits. ? Bringing employee’s up to speed takes even more time. And when you’re short-staffed, you often need to put in extra time to get the work done.
The Three Rs of Employee Retention
Respect is esteem, special regard, or particular consideration given to people. As the pyramid shows, respect is the foundation of keeping your employees. Recognition and rewards will have little effect if you don’t respect employees.
Recognition is defined as ?special notice or attention? and ?the act of perceiving clearly.? Many problems with retention and morale occur because management is not paying attention to people’s needs and reactions. Rewards are the extra perks you offer beyond the basics of respect and recognition that make it worth people’s while to work hard, to care, to go beyond the call of duty. While rewards represent the smallest portion of the retention equation, they are still an important one. You determine the precise methods you choose to implement the three Rs, but in general, respect should be the largest component of your efforts. Without it, recognition and rewards seem hollow and have little effect—or they have negative effects. The magic truly is in the mix of the three.
Rewards Recognition Respect When you implement the ?three Rs? approach, you will reduce turnover and enjoy the following: ? Increased productivity ? Reduced absenteeism ? A more pleasant work environment (for both employees and you) ? Improved profits Furthermore, an employer who implements the three Rs will create a hard-to leave workplace, one known as having more to offer employees than other employers. You become a hard-to-leave workplace—one with a waiting list of applicants for any position that becomes available—purposefully, one day at a time. Employee Retention Technique: EIGHT FACTORS Definition of successful: my job is helping me to grow personally, professionally and financially. Definition of satisfied: my employer is providing what I need to perform my job successfully. These eight central processes of the Employee Retention Technique are the factors that are most critical to an employee's job performance success.
ATTITUDE FOR EMPLOYING A process to clearly define the way supervisors are expected to interact with employees; a process to give employees a way to express what is most important to achieve job success; and a process to give employers a way to demonstrate "Employing Values" through employment policies.
This "Employer Mission Statement" is about how and who you hire, how you treat them and the organization's values as an employer. It is about making sure that the Values for Employing™ are communicated to your employees and consistently implemented throughout your organization. It is about the total employment package that goes beyond salary and traditional benefits.
FINDING CANDIDATES A process that gives employers a comprehensive way to communicate to job seekers what it takes to achieve shortterm and long-term job success, and to attract the candidates who fit this criteria. SORTING APPLICANTS A process that gives employers a way to confirm whether the attitudes and behaviors of job seekers are a match for their work environment. CHOOSING EMPLOYEES A process that gives employers a way to define the specific interview questions that prove job seeker abilities to successfully perform the target skills; and a process that gives employers a way to verify the accuracy of resume/application data and interview responses. STARTING EMPLOYEES A process that provides a way for new employees (before performing the job) to understand "why the employers business exists;" "what makes the business organization
successful;" "why the employee's job exists;" and "what it will take for the employee to achieve job success." INFORMING EMPLOYEES A process that gives employers a way to provide essential information (from five critical information sources) that is needed by employees to make daily work decisions. IMPROVING EMPLOYEES A process that gives supervisors and employees a way to work together to build personalized plans for improving each employee's priority job skills; and a process that gives the employer a way to "deliver skills-improving training curriculum" and to "measure the learning effectiveness" from the training experiences. REWARDING EMPLOYEES A process that gives employers a way to define and communicate exactly how individual employee salaries are determined; and a process that gives employers a way to provide employees with extra incentive income that is earned through the achievement of cash generating business goals.
10 WAYS TO RETAIN YOUR EMPLOYEE:Retaining key personnel is critical to long term success of an organization. A Retention Strategy has become essential if your organization is to be productive over
time and can become an important part of your hiring strategy by attracting the best candidates who know of your track record for caring for employees. In fact, some companies do not have to recruit because they receive so many qualified unsolicited submissions due to their history of excellence in employee retention. How do you get your employees to "fall in Love" with your organization? This is a great question. Some recently conducted research lists these Top Ten Strategies:
It is cheaper to keep your good employees than it is to hire and train new ones. Your top 20-25% should be courted as you would court and then service your top customers. 2. Get your employees to "Fall in Love" with your organization.
Communicate your vision in a compelling way. Show everyone the role they have to contribute to this vision. Create opportunities for people to connect with each other for support and to improve communication in work teams. ? Capture the Hearts of your workforce with: Compelling vision/Balance/Celebration-Fun ? Open Communication: Internal listening is a priority, multiple lines of communication (various channels.) This is essential for managing change in a positive way with less sabotage, anger, resistance, and fear. ? ? Create partnerships: Squash status barriers/Open the books/pay for performance (not titles), share the "bad" times and the "good" times. Drive Learning: "Guarantee Employability," Encourage Life Long Learning (Train outside of job description). Loyalty comes from trusting your employees to develop their skills for the good of the company and for their needs for personal growth and satisfaction. ? Emancipate Action: Freedom to Fail, reduce bureaucracy, and challenge the "status quo." Breathe life into your organization. Do not let your employees stagnate.
3. Strong retention strategies become strong recruiting advantages. 4. Retention is much more effective when you put the right person into the right job. Know the job! Know the employee and their motivations. Half of the Fortune 500 companies are now using assessments to more fully understand each job and the soft skills that are required for top production within their specific company culture. Money is important but it is not the only reason people stay with an organization. If your compensation plan is in the top 20-30% of your industry, then money will often not be the reason why people leave. 5. Employee committees to help develop retention strategies are a very effective strategy. Get their input! Ask, what do people like about working here? What would you like changed to make your company a better place to work?
6. Leadership must be deeply invested in retention. Management must be skillful communicating company policies in a way that creates "buy-in" from their staff and be open to employee input. Help create "ownership" in your employees. The companies with the best retention percentages are the same companies that are actively committed to retention. They know that it costs less to keep good people than to continuously have to replace unsatisfied employees and managers. 7. Recognition, in various forms, is a powerful retention strategy. It does not have to cost a lot. Remember, the "Fun Factor" is very important to many employees. Retention is often related to interpersonal connections and amount of FUN in work teams. The FUN Factor is part of the generation of workers that use activities as stress management in highly charged production environments where long hours are required.
Myths about Employee Morale Prevent Companies from Achieving Retention Success
Despite years of research that point to far different solutions, many companies use the wrong tactics when trying to improve employee morale, satisfaction and retention. These myths prevail, in part, because businesses have used these methods, however wrong, for a very long time and have become used to trying the same ideas. Myth #1: People most often leave a company for more pay. Exit interviews, conducted to learn why people leave an organization, contain some greatest fiction. People frequently say they’re leaving for more money because it’s the easiest reason to give. More often the causes leading to departure are related to issues that were unsatisfying in the job or the company.
Typical issues that cause dissatisfaction are company policies and procedures, quality of supervision, working conditions, relationship with the immediate supervisor and salary. Yes, pay does matter. While research shows most people don’t actually leave a job for more money, there are two important facts: Very-low-income workers will leave for more money because it’s a survival issue. For the rest of workers, the issue of money actually is about fairness. Myth #2: Incentive programs produce long-term profits and improve productivity and morale. So, who doesn’t like free stuff? However, incentives such as gifts and cash bonuses for meeting speed and volume goals don’t affect employee commitment. They’re really a throwback to outdated management beliefs that workers must be coerced in order to work hard. All the extras don’t add up to the real glue that creates employee commitment: the chance to learn and grow, meaningful work, good supervisors and respect and appreciation for a job well done. Incentives have been over-used particularly in the past decade, as management books touted the importance of improving recognition of excellent work. Yet, studies
show that carrot-and-stick motivation actually does not pay off in long-term company profitability or employee satisfaction or retention. To the contrary, incentives can harm quality when employees aim for speed or other goals rather than quality.
Myth # 3: People don’t want more responsibility. They don’t want more work if they’re already overloaded due to lean staffing; but people indeed want the opportunity to grow and develop their skills, advance their careers and have the opportunity for greater variety. Keep in mind what the research confirms: People do want to try new things, to feel skillful and to experience the personal satisfaction of higher levels of achievement. People don’t need a job promotion in order to gain more responsibility. The same job can be broadened to include more variety, more contact with different parts of the organization and greater control over decisions on accomplishing work tasks. Myth #4: Loyalty is dead. Not at all, though it is ailing in many organizations. People are seeking greater worklife balance than in the past, and employers have made great strides in providing more flexible hours and dress codes. Still, people seek to make a contribution, and organizations that provide healthy doses of the main satisfiers enjoy significantly lower turnover and higher morale. Profits are higher, too, according to recent research studies.
Things have changed, indeed. Today’s workers will, in fact, change careers and jobs much more often. When the economy is good, people have become much more at ease in changing companies, are more likely to acquire new skills and move to companies that offer greater chance to use more of their knowledge and more willing to take the risks of starting a new career at another organization. What has emerged in current management studies are that the same qualities that hold employees are the ones that best serve the customers: Employees who can make quick decisions on behalf of the customer and the company; employees who have a broader scope of responsibility that allows them some freedom and leverage to solve customer problems; learning opportunities that give employees the
skillfulness to address customer issues; and supportive management and supervisors who use any mistakes that occur as teaching opportunities.
Myth #5: Improving employee satisfaction is expensive. Research tells us the true satisfiers can’t even be bought: career growth, meaningful work, respect and appreciation and being able to influence how work gets done. In these leaner times employers have the same opportunity to gain true loyalty despite lowered budgets. Myth #6: Employee satisfaction is ?fluff.? Does having engaged workers make a difference in the bottom line? Studies now show that lower turnover and greater levels of employee satisfaction have a definite positive impact on customer satisfaction and profitability, which are the key factors in company growth and sustainability. Consider these facts: A strong link was found in a study by PricewaterhouseCoopers between employee retention and the quality of service as rated by companies’ customers. According to the American Society of Training & Development, organizations that invested the most in training had higher gross margins and income per employee. Myth #7: Supervisors are the problem. Many senior leaders express dismay about the quality and actions of their middle managers and front-line supervisors. The ?blame game? is old, yet the solutions are strikingly similar to those required to build an engaged workforce. In most organizations today, supervisors have more people reporting to them than in the past, more demanding customers than ever and greater amounts of change – all occurring at the same time. Yet, the amount of training provided to managers and supervisors in many organizations is minimal. More importantly, the amount of time that senior managers spend in dialogue with middle and line managers also is minimal. Middle managers and supervisors can appear resistant to improvement efforts. However, the true failure exists in our understanding of their world, the challenges they face and the support they need in order to be successful.
Successful organizations seek to build teamwork between senior leaders and middle managers and line supervisors (which is a key ingredient in creating teamwork throughout the company).
Myth # 8: My company/industry/people are different! Yes, every company is unique, and every industry has its own set of unusual challenges. However, a very costly mistake is made when we believe information from other sectors doesn’t apply to us or our organization. Retention research studies cross all industries, all types of work settings and in varied economic conditions. Still, the same results come up time and again. We build employee loyalty – and, indirectly, customer loyalty – through providing people with growth and learning opportunities, minimizing red tape, allowing people to think and make good choices, supporting middle managers and front-line supervisors and appreciating the efforts that people give to help our customers. It’s downright dangerous to ignore these findings – risky to the bottom line and the organization’s future. Barriers to Success Lack of support from management team. Inability to provide hard numbers. Company culture does not support change. Back lash from single workers. Failure of other programs due to low utilization. Managers do not view work/life initiatives as business tools that impact employee retention.
10 Factors That Affect Employee Retention:Given the importance of employee retention, I have compiled another list of 10 important factors that can affect employee retention in the respective organization. Shorten the feedback loop – Do not wait for an annual performance evaluation to come due to give feedback on how an employee is performing. Shortening the feedback loop will help to keep performance levels high and will reinforce positive behavior Offer a competitive compensation package – Any team member wants to feel that he or she is being paid appropriately and fairly for the work he or she does. Be sure to research what other companies and organizations are offering in terms of salary and benefits.
Balance work and personal life – Family is incredibly important to team members. Small gestures such as allowing a team member to take an extended lunch once a week to watch his son's baseball game will likely be repaid with loyalty and extended employment with an organization.
Beware of burnout – Staff adequately to reduce the amount of unwanted overtime a team member must work. Some employees enjoy the extra money that accompanies overtime hours, while others would rather spend their time with their families or doing other activities they enjoy. Burnout can be a leading cause of turnover. Recognize the warning signs and give employees a break when they need it. Provide opportunities for growth and development – Offer opportunities for team members to acquire new skills and knowledge useful to the organization. If an employee appears to be bored or burned out in a current position offer to train this individual in another facet of the organization where he or
she would be a good fit. Nobody wants to feel stuck in their position where there is no possibility for advancement or new opportunities. The ability to provide input and be taken seriously – Everybody has opinions and ideas, some are better than others. However every team member wants to feel that their input is welcome and will be taken seriously without ridicule or condescension. Some of the greatest ideas can come from the most unlikely of places and people. Creating a culture where input is welcome from all level of the organizational chart will help your organization grow and encourage employee retention.
Management must take the time to get to know team members – It's not a big surprise that one of the greatest complaints that employees express in exit interviews is a feeling that management didn't know they existed. Nobody wants to feel like just another spoke in a big wheel. Managers are very busy - everybody is busy, but it is crucial that managers and supervisors take the time get to know the team members who work under them. Learn and remember a team member's name, what skills and talents they bring to the table, and what their business interests are. The time spent by management getting to know team members is well invested and can eliminate the headaches caused by having to continually hire and re-train new employees.
Provide the tools and training an employee needs to succeed – Nothing can be more frustrating to an employee than a lack of training or the proper tools to successfully complete his or her duties. You wouldn't try to build a house without a hammer, so why should an office job be any different? Providing a team member with the tools and training she needs to be successful shows a commitment and investment in that employee and will encourage the team member to stay with the organization.
Make use of a team member's talents, skills, and abilities – All team members have knowledge, skills, and abilities that aren't directly related to their job description, but are still useful to an organization. Utilizing a team member's talents in areas other than their current position will indicate to an employee that management appreciates and recognizes all that an employee has to offer to the organization. This can also provide work variety and helps to break up the everyday grind of work.
Never threaten a team member's job or income:While threatening an employee with termination or demotion might seem like a surefire way to get the results needed from him or her, doing so will likely cause the employee to leave the organization. Put yourself in the employee's shoes, what is the first thing you would do if your job was threatened? Odds are you would probably update your resume and start checking for open job postings expecting the worst. If a team member's performance is not what you had hoped it would be, work with that team member on ways to improve his performance, saving termination only as a last resort. Take some time and seriously evaluate what your organization is doing to encourage a high retention workforce. Having a seasoned and well trained workforce can deliver a competitive advantage that is difficult to replicate. The best part is most of your efforts to retain your employees come free or with little charge and offer huge returns on a manger's investment in time and resources. Organizations should achieve a high retention workforce where team members truly enjoy coming to work each day.
REASON FOR EMPLOYEE TO COME TO THE ORGANISATION? ? ? ? ? Pay, Location, Benefits, Advancement Possibilities,
? ? ?
Job Security, Nature Of Work, Personal/Family Time.
REASONS FOR EMPLOYEE TO STAY WITH THE ORGANISATION? ? ? ? ? ? Confidence Factor-they believe in potential success/leadership strategies Emotional Factor- (Huge) contribution, recognition, appreciation Trust Factor- 2 ways- promises/commitments kept (strong link to loyalty) Fit Factor- Values/ethics are a good fit Listening Factor- Are they heard and valued?
SOLUTION FOR THE PROBLEM Finding the cause of Attrition Have a survey among employees to find the reasons for attrition. If possible, have exit interviews to know the reasons for resignations. If a key employee resigns, it should be taken up on a priority basis and the senior management should meet the employee to discuss his reasons for leaving and evaluate whether his issues bear merit and whether they can be resolved. Steps can be taken to avoid similar reasons from occurring in the case of others, in similar positions. Human Resources department of companies must address these issues, and along with the management need to evolve strategies to retain employees at all levels. AT
T HE TI M E O F
Select the right people through competency screening. Offer an attractive, competitive, benefits package.
Make clear of performance enhanced incentives and other benefits. Keep these promises, later
T HE O F FI C E
An employee’s work must be communicated to him clearly and thoroughly. The details of the job, its importance, the way it should be done, maximum time that can be allotted to complete it etc., must be made clear. If there are changes to any of these, let the employee know at the earliest
Give the employees necessary tools, time and training. The employee must have the tools, time and training necessary to do their job well - or they will move to an employer who provides them.
Have a person to talk to each employee at regular intervals. Listen and solve employee complaints and problems, as much as possible. Fairness and impartial treatment by seniors is important. Help employees manage stress, both at work and if possible, off work too. Give them special concessions, when in need. Treat the employees well & provide dignity of job.
The quality of the supervision an employee receives is critical to employee retention. Frequent employee complaints arise on this issue.
Provide the employees a stress free work environment. People want to enjoy their work. Make work and work place cheerful and fun-filled as possible.
Make sure that employees know that their work is important for the organization. Feeling valued by their employer is key to high employee motivation and morale. Recognize their strengths and help them to improve those they lack.
Employees must feel rewarded, recognized and appreciated. Giving periodical raise in salary or position helps to retain staff. Offer excellent career growth prospects. Encourage & groom employees to take up higher positions/openings. If they don’t get opportunity for growth within the organization, they will look elsewhere for it.
Work-life balance initiatives are important. Innovative and practical employee policies pertaining to flexible working hours and schemes, granting compassionate and urgency leave, providing healthcare for self, family and dependants, etc.are important for most people. Work-life balance policies would have a positive impact on retaining skilled employees, as well as on attracting high-caliber recruits.
Implement competency models, which are well integrated, with HR processes like selection & recruitments, training, performance appraisal and potential appraisal.
Employee Recognition Increases Retention It seems that now more than ever employee recognition is limited at best in many organizations. Unfortunately many managers don't understand the importance of recognizing a team member's hard work and a job well done. Many might even ask why they should recognize their employees when they are "just doing their job."
The truth is that recognizing employees for their hard work is one of the least expensive and easiest ways to improve the level of employee retention in your organization. The return on investment for a manager's time and limited expenses can be incredible.
encourages additional positive behavior. If a team member feels that he or she is
appreciated they will be much more likely to repeat their behaviors in the future and even put out more effort than before. When a business leader understands the power of recognizing his or her employees the culture of an organization reacts to this recognition and moves in a positive direction helping to retain more employees. Employee recognition can be as simple or as extravagant as one desire. The following is a short list of simple ways to recognize team members for a job well done and improve retention in your organization. A simple "thank you" or "nice job" given in regular frequency can significantly boost team morale. Often times a team member will greatly appreciate the time you spent to find him at his desk and deliver the message in person.
Movie tickets, gift certificates, or an engraved gift are excellent rewards for an employee who has excelled or put in the extra effort to make a project happen. Recognize the team member's contribution in front of members of management. This can reduce the tendency for employees to feel that their supervisors take all the credit for their hard work. Retention Strategies Help to Drive Revenue Growth Employee satisfaction is essential to any effective employee retention strategy - any good HR manager knows that. However few managers think of the impact that employee satisfaction has on their customers and ultimately company profits. One can assume that happier, more productive employees will make more sales, treat customers better, and ultimately make more money for the company
OBJECTIVES: Creating a compelling place to work. A compelling place to shop. Creating a compelling place to invest. Study Suggests Employees Leave Bosses, Not Jobs
Careful selection of employees and managers can have a huge impact on your employee retention efforts and employee turnover costs at your organization. It has been said more than once, and for good reason, that employees leave their bosses - not their jobs. The reasons that employer’s score poorly are varied and many: ? ? ? Workers said their supervisor failed to keep promises. They indicated their supervisor failed to give credit when due. They said their supervisor gave them the "silent treatment" during the past year.
DETERMINANTS OF WORKERS SATISFACTION The various factors influencing Job satisfaction may be classified into two categories: I. II. I. Environmental factors, and Personal factors ENVIRONMENTAL FACTORS: These factors relate to the work environment, main among which are as follows: a) Job content: Job content in terms of achievement recognition, advancement, responsibility and the work itself, tend to provide satisfaction where the job is less repetitive and there are variation on job content, workers satisfaction tenaqds to be highest. b) Occupational Level: The higher the level of the job in the organizations hierarchy, greater the satisfaction of the individual. This is because positions at higher levels are generally better paid, more challenging and provides greater freedom of operation. c) Pay and Promotion: All other things being equal, higher pay and better opportunities for promotion lead to higher satisfaction.
d) Work group: Satisfaction is generally high when an individual is accepted by his peers and he has a high need for affiliation. e) Supervision: Considerable supervision tends to improve worker’s satisfaction.
II. PERSONAL FACTORS: Personal life exercises a significant influence on workers satisfaction. The main elements of personal life are: a) Age: Workers in the advanced age group tend to be more satisfied probably because they have adjusted with their job conditions. b) Sex: One study revealed that women are less satisfied than men due to fewer job opportunities. However, other study indicates that female workers may be more satisfied due to their lower occupational aspirations. c) Educational level: More educated employees tend to be less satisfied with their jobs probably due to their higher job aspirations. d) Marital Status: Married to be employees and employees having more more dissatisfied due to their greater
responsibilities. . However, other study indicates that employees may be more satisfied because they value their jobs more than unmarried workers. e) Experience: Job satisfaction tends to increase with increasing years of experience.
IMPORTANCE OF JOB SATISFACTION In accomplishing the goals of any organization, the manager is not working alone. He is working as a member of a team, the other members of the team being his staff. As manager of this team, he is responsible for its effectiveness and efficiency. Such
management of staff involves creating conditions and motivating staff to work effectively. To obtain peak performance from the employees, the motivation needed is ?Employee Satisfaction?. ?Make employees satisfied. Realize that satisfied employees are the most critical asset to success of organization?
WHAT DISSATISFIES WORKERS? There are some management practices, which affect the moral and motivation or willingness of employee to give their best or work in the desired manner. Some of these practices are: a) Under assignment: If a skilled man is assigned as unskilled or routine job, it may cause frustration or job dissatisfaction. b) Over assignment: If a good worker is overloaded to the point where the feels being exploited, this may make him lose interest in work. In big organizations, it is rather, a common practice to pick up good workers as other cannot be trusted or depended upon. c) Coercive Control: Coercive type of control or supervision which may give a worker a feeling that he is not being trusted; it may also dissatisfy him or erode his interest in the work life. Some control no doubt is essential but if it is coercive resulting in frequent warnings or punishments, or withdrawal of facilities to chasten the employee, it dampens the morale and motivation of the employees. d) Manipulative Behavior: Manipulative behavior of the management, which may take the form of divide and rule policy or tactics, making promises which are not fulfilled, encouraging grouping, may also have a demotivating effect. When employees perceive such behavior, they naturally cease to work and lose interest in the same.
HOW EMPLOYEES CAN EXPRESS DISSATISFACTION
Employee dissatisfaction can be expressed in a number of ways. For example, rather than quit, employees can complain, be insubordinate, steal organizational property, or shirk a part of their work responsibilities. Employees can show four responses that differ from one another along two dimensions: constructiveness/destructiveness and activity/passivity. They are defined as follows:
Behavior directed toward leaving the organization, including looking for a new position as well as resigning.
Actively and constructively attempting to improve conditions, including suggestive improvements, discussing problems with superiors, and some forms of union activity.
Passively but optimistically waiting for conditions to improve, including speaking up for the organization in the face of extreme criticism and trusting the organization and its management to ?do the right thing.?
Passively allowing conditions to worsen, including chronic absenteeism or lateness, reduced effort, and increased error rate.
FINDINGS: Other reason for attrition can be ineffective promotions.
CONCLUSION It’s clear that having proper retention strategies is key in order to retain employees. In order to foster an environment that motivates and stimulates employees, managers need to incorporate motivation-building practices into their corporate culture. These practices include listening to employees and respecting their opinions, basing rewards on performance, and being available to them for everything from listening to their ideas and concerns to assisting them with their career advancement. Employees need to feel valued and appreciated, be given feedback, provided with growth opportunities, be given work-life balance options, and have trust and confidence in their leaders. All of these retention strategies are beneficial when an employer wants to keep employees within an organization and keep costs of turnover low.
Conclusion & Suggestions Summarizing the above, the Following conclusion can be drawn:
Though the organization is giving its best to please its employees but there are certain loop holes that needs to be filled in order to avoid any confusion among the employees. The major areas where the improvement can be made are already highlighted. The top level management needs to be more focused towards the employees working at front end as they are the face of the company and represents the company.
ANNEXURE BIBLOGRAPHY:Human resource management – philhip kotler Research methodology – kothari Strategic management and bussiness policy – azhar kazmi www.google.com www.reliancedadgroup.com
DATA COLLECTION METHOD: - QUESTIONNAIRE QUESTIONNAIRE FOR THE PPM’S (PRE-PAID MANAGERS) 1. W HA T
I S Y OU R S A TI S FA C T I O N L E V E L W OR K I N G W I TH T HE OR GA NI ZA TI O N ?
a) Very Good b) Good c) Bad d) Very Bad. 2. A RE Y OU R H E A D S a) Yes b) No c) To some extent.
S U P P OR TI V E A ND C O RDI A L ?
3. D O Y OU F I N D G O OD G R OW T H a) Yes b) No c) To some extent
OP P O RT UNI TI E S W I T H TH I S O RG A NI ZA TI O N ?
4. H OW Y O U R A TE a) Very Good b) Good c) bad d) Very bad
Y O U R S A L A R Y Y O U RE C E I V E ?
5. A RE Y OU R C U S T O M E R S a ) Yes b) No c) To some extent 6. I F T HE L E A D S a) Yes b ) No c) Sometimes
S A T I S FI E D W I T H Y OU ?
H E L P S Y OU T O HA ND L E Y OU R W O RK RE L A TE D S TRE S S ?
7. A RE a) Yes b) No 8. I F
Y OU C ON S I S T E N T I N M E E T I N G Y O U R TA R GE TS ?
U M E E T Y O U R TA R GE T S W E L L , DO Y O U RE C O G NI TI ON F O R Y OU R G O O D P E RF O RM A NCE ?
RE CE I V E
K I ND
a) Yes b) No c) Sometimes D) Never 9. D O Y O U R E C E I V E a) Yes b) No c) some times 10. D O
Y OU F E E L OR GA NI ZA TI O N ? M O N E TA R Y B E NE F I T S , L I K E C L A I M S , I NC RE M E N TS E TC .
W O RK
P RE S S U RE
TH I S
a) Yes b) No c) Sometimes d) Never 11. D O a) yes
Y O U TH I N K M A N A GE M E N T N E E D T O CH A N GE T HE I R P OL I CI E S ?
B) No c) to some extent
EMPLOYEE QUESTIONNAIRE 1. Evaluation of employee’s performance in this organization is carried out fairly. STRONGLY AGREE AGREE NEITHER DISAGREE STRONGLY DISAGREE
2. Are Employees assisted in coping with workplace stress? STRONGLY AGREE AGREE NEITHER DISAGREE STRONGLY DISAGREE
3. Do you engage in recreational activities? ALWAYS MANY TIMES SOMETIMES RARELY NEVER
4. Training and development provided in this organization is valuable. STRONGLY AGREE AGREE NEITHER DISAGREE STRONGLY DISAGREE
5. Your accomplishment and good work is recognized by the organization. STRONGLY AGREE AGREE NEITHER DISAGREE STRONGLY DISAGREE
6. Have you had any professional opportunities to learn and grow at your workplace in the past one year? a). Yes b). No
7.What is your mode of working? ? ? ? ? At my own pace just as I meet targets Within set time and deadlines In a group Other ( specify)
8. Give your honest opinion about employee’s treatment in this organization and what you would like to see changed. Ans.:- -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------9. Is there anything, you think, the management of this organization can do to help you handle work related stress? Ans.:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------10. Are you satisfied with your pay package? What other benefits would you like to be added to your pay? Ans.: ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
11. What you dislike most about your job? Ans.:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------12.. What you like most about your job? Ans.:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------64
13. What more can the company do to increase your satisfaction as an employee? Ans.------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------14. Do you feel any kind of ambiguity in your profile structure? If yes, Please specify. Ans.:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------15. What would you like to change about this organization? Ans.:- -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Human Resource Management
HR Planning, Recruitment & Selection
Related to Attrition Control And Employee Retention
topic: EMPLOYEE MOTIVATION AND RETENTION - NEED INFO
HRM - A project on 'Attrition Rates'
NiCk Da Posts..!!
Future of employee communication
Employee Privacy at Workplaces: Some Pertinent Issues
Mentoring and Coaching
Research Report on China Pesticide Market
Industrial Relations and Employee Welfare
Certified Retention and Engagement Professional
Global Session Border Controller Market 2011-2015
project on "Employee loyalty in Tata Motors"
EMPLOYEE MANAGEMENT SYSTEM
retention and attrition questioner
In memory of Patients @ a Cancer Hospital
My Imagination turned out to become a gaping illusion !!
Hindrance to Employee Engagement
Employee Morale Boosting-Manager's critical job
Who controls your mind?
Learn to control your emotions
Local vs National Control of Education
The Attrition Dilemma In Roots Of HR
Attrition in IT - BPO
Healthcare's Hottest for 2012; 40 of the healthcare industry's fastest growing comp...
Homeland Security Market
USA - Fixed and Wireless Broadband Market
Healthcare leaders discuss greening the supply chain, lowering costs
Radio Cabs in India
China Textile Industry 2012
The Globe Providing Online MBA Education
SEVEN SECRETS TO BUILDING EMPLOYEE LOYALTY
India high on Innovation
Packers Movers Company Delhi, Relocation Movers Pa
Loans for bad credit
Employee Retention Strategies
Employee Retention & Staff Turnover Tips
Talent Management, Talent Identification, Successi
Production Planning and Control
Emotional Intelligence or Behaviorial Control?
Cong in damage control mode after 2G mess
Terms & Conditions
Buy Entrance Exam Forms
Your Link Here
Copyright 2004 - 2015 Management Paradise.
Site Developed by Available.co.in
There was an error processing the request. Please try again.
Login via Facebook?
You are currently logged in to Facebook. Would you like to autologin to the network?
Remember my choice