INTRODUCTION TO TOPIC

The advancement in science and technology has further influenced the business
environment globalization has made the business scenario more competitive. The
captains of the industries have to keep themselves abreast with changing
environment.
The modernization has brought in many changes in HRM and HRD
there by enhancing the scope and responsibility of HR executive/manager. The
HR is most precious asset of an organization which has direct influence on
functional as well as product ional aspect of the company. The subject as such or
dealing with the HR may appear simpler but human beings are complex creatures.
Thus, demanding a great deal of attention in dealing. There are various theories,
strategies on HRM/HRD. Accordingly there numerous function of HR executive
likes manpower planning, recruitment, selection, induction and retention of the
best employee.
The retention of suitable employee goes way in enhances
the knowledge resource of the organization. This in the broader sense implies
motivation and retention of the talent by understanding employees aspiration,
needs and providing him the opportunities for his development and prosperity.
Such employees will place any organization at the advantageous position in the
competitive market. It therefore, merits proper strategy and policy so that the
entire process of acquiring knowledge resource becomes cost effective. The
different organization may have there own ways to implement such policies but
importance of retentions is critical to every organization.

RETENTION (Love them or loose them)

Employee Retention involves taking measures to encourage employees to remain
in the organization for the maximum period of time. Corporate is facing a lot of
problems in employee retention these days. Hiring knowledgeable people for the
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job is essential for an employer. But retention is even more important than hiring.
There is no dearth of opportunities for a talented person. There are many
organizations which are looking for such employees. If a person is not satisfied by
the job hes doing, he may switch over to some other more suitable job. In todays
environment it becomes very important for organizations to retain their
employees.
The top organizations are on the top because they value their
employees and they know how to keep them glued to the organization. Employees
stay and leave organizations for some reasons.
The reason may be personal or professional. These reasons should be
understood by the employer and should be taken care of. The organizations are
becoming aware of these reasons and adopting many strategies for employee
retention.

Retention involves five following major things

Compensation
Growth and career
Support
Relationship
Environment

1.Compensation
Compensation constitutes the largest part of the employee retention process. The
employees always have high expectations regarding their compensation packages.
Compensation packages vary from industry to industry. So an attractive
compensation package plays a critical role in retaining the employees.
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Compensation includes salary and wages, bonuses, benefits, prerequisites, stock

options, bonuses, vacations, etc. While setting up the packages, the following
components should be kept in mind:
Salary and monthly wage: It is the biggest component of the compensation
package. It is also the most common factor of comparison among employees. It
includes
o

Basic wage

House rent allowance

Dearness allowance

City compensatory allowance

Salary and wages represent the level of skill and experience an individual has.
Time to time increase in the salaries and wages of employees should be done. And
this increase should be based on the employees performance and his contribution
to the organization.
Bonus: Bonuses are usually given to the employees at the end of the year or on a
festival.
Economic benefits: It includes paid holidays, leave travel concession, etc.
Long-term incentives: Long term incentives include stock options or stock
grants. These incentives help retain employees in the organization's startup stage.
Health insurance: Health insurance is a great benefit to the employees. It saves
employees money as well as gives them a peace of mind that they have somebody
to take care of them in bad times. It also shows the employee that the organization
cares about the employee and its family.
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After retirement: It includes payments that an Employee gets after he retires like
EPF (Employee Provident Fund) etc.
Miscellaneous compensation: It may include employee assistance programs (like
psychological counseling, legal assistance etc), discounts on company products,
use of a company cars, etc.

2.Growth and Career

wth 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 for himself are:
Work profile: The work profile on which the employee is working should be in
sync with his capabilities. The profile should not be too low or too high.
Personal growth and dreams: Employees responsibilities in the organization
should help him achieve his personal goals also. Organizations can not keep aside
the individual goals of employees and foster organizations goals. Employees
priority is to work for themselves and later on comes the organization. If hes not
satisfied with his growth, hell not be able to contribute in organization growth.
Training and development: Employees should be trained and given chance to
improve and enhance their skills. Many employers fear that if the employees are
well rained, theyll leave the organization for better jobs. Organization should not
limit the resources on which organizations success depends. These trainings can
be given to improve many skills like:

Communications skills
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Technical skills

In-house processes and procedures improvement related skills

customer satisfaction related skills

Special project related skills

Need for such trainings can be recognized from individual performance reviews,
individual meetings, employee satisfaction surveys and by being in constant touch
with the employees.

3.Support
Lack of support from management can sometimes serve as a reason for employee
retention. Supervisor should support his subordinates in a way so that each one of
them is a success. Management should try to focus on its employees and support
them not only in their difficult times at work but also through the times of
personal crisis. Management can support employees by providing them
recognition and appreciation.
Employers can also provide valuable feedback to employees and make them feel
valued to the organization.
The feedback from supervisor helps the employee to feel more responsible,
confident and empowered. Top management can also support its employees in
their personal crisis by providing personal loans during emergencies, childcare
services, employee assistance programs, counseling services, et al.
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

4.Relationship

Sometimes the relationship with the management and the peers becomes the
reason for an employee to leave the organization. The management is sometimes
not able to provide an employee a supportive work culture and environment in
terms of personal or professional relationships. There are times when an employee
starts feeling bitterness towards the management or peers. This bitterness could be
due to many reasons. This decreases employees interest and he becomes demotivated. It leads to less satisfaction and eventually attrition.
A supportive work culture helps grow employee professionally and boosts
employee satisfaction. To enhance good professional relationships at work, the
management should keep the following points in mind.
Respect for the individual: Respect for the individual is the must in the
organization.
Relationship with the immediate manager: A manger plays the role of a mentor
and a coach. He designs ands plans work for each employee. It is his duty to
involve the employee in the processes of the organization. So an organization
should hire managers who can make and maintain good relations with their
subordinates.
Relationship with colleagues: Promote team work, not only among teams but in
different departments as well. This will induce competition as well as improve the
relationships

among
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colleagues.

Recruit whole heartedly: An employee should be recruited if there is a proper

place and duties for him to perform. Otherwise hell feel useless and will be
dissatisfied. Employees should know what the organization expects from them
and what their expectation from the organization is. Deliver what is promised
Promote an employee based culture: The employee should know that the
organization is there to support him at the time of need. Show them that the
organization cares and hell show the same for the organization. An employee
based culture may include decision making authority, availability of resources,
open door policy, etc.
Individual

development:

Taking

proper

care

of

employees

includes

acknowledgement to the employees dreams and personal goals. Create

opportunities for their career growth by providing mentorship programs,
certifications, educational courses, etc.
Induce loyalty: Organizations should be loyal as well as they should promote
loyalty in the employees too. Try to make the current employees stay instead of
recruiting new ones.

5. Environment
It is not about managing retention. It is about managing people. If an organization
manages people well, employee retention will take care of itself. Organizations
should focus on managing the work environment to make better use of the
available

human

People want to work for an organization which provides

Appreciation for the work done

Ample opportunities to grow

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assets.

A friendly and cooperative environment

A feeling that the organization is second home to the employee

Organization environment includes

Culture

Values

Company reputation

Quality of people in the organization

Employee development and career growth

Risk taking

Leading technologies

Trust

Types of environment the employee needs in an organization

1.Learning environment:
It includes continuous learning and improvement of the

individual, certifications and provision for higher studies, etc.

2.Support environment:
Organization can provide support in the form of work-life balance. Work life
balance includes:
o

Flexible hours
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Telecommuting

Dependent care

Alternate work schedules

Vacations

Wellness

3.Work environment:
It includes efficient managers, supportive co-workers, challenging work,
involvement in decision-making, clarity of work and responsibilities, and
recognition.
Lack or absence of such environment pushes employees to look for new
opportunities. The environment should be such that the employee feels connected
to the organization in every respect.

EMPLOYEE RETENTION
Retaining good employees is not as easy as it used to be. Companies need to be
on top of the game when it comes to keeping them, as well as motivating them.
Employee retention is simple to understand, but at the same time it can be difficult
to achieve. Knowing what employees want and need is a step in the right
direction. There are five main reasons that people tend to leave their
organizations. Knowing these reasons is crucial to help in preventing others from
leaving. Once the problems are identified, companies need to adopt several
strategies that can be used to increase retention.
Employee retention is keeping the employees that have already been hired.
When you have hired good people, trained them, built them into high-performing
teams, you don't want to loose them. Companies today invest so much time in
their employees that each time one leaves; it is like they are loosing an
investment. It is for this reason that employee retention had become a critical
component of workforce stability. Because a company invests in their employees,
each time one leaves the productivity declines. The time that is spent on training
new employees could be better spent on increasing production and profit.
Companies need to think about their image from the start. Make wise choices
when hiring. Give prospective employees a true picture of the organization. It is
important to match employee personality type to the climate and culture of the
company. Once an employee has been hired, there are several different things that
they want and need in order to remain loyal to the company. They include, "Clear
expectations and performance measurements, time to get and give performance
feedback, rewards and recognition,
and challenge and growth opportunities for the future"("After the Hire - Retaining
Good Employees", 1999.

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There are many different ingredients that go into reducing employee

turnover. There will be seven strategies focused on: money, building relationships
between employers and co-workers, a fearless culture, job satisfaction,
Importance of personal life.
Most executives believe that money is the reason employees stay put. "It isn't
that money isn't a key factor, it's just that money is merely the baseline, the
foundation upon witch the house of retention must be built"("Formula for
Retention", 1999). Money has always been a big factor in retaining employees,
but now employees want more. Therefore, it is always easiest to start with money,
because other strategies are not as easy for employees to buy into.
Retention is successful when emotional bonds are built. Therefore, building
relationships between employers and co-workers is important when it comes to
employee retention. Emotional bonds are strengthened by employers paying
attention to issues that are important to their workers. If employees feel that their
employers care about what goes on in their lives, they are going to feel special.
Employees want to have caring relationships with their co-workers and
employers.
"Being able to speak up and speak against the status quo would be possible only
in a culture where there was no fear of retribution"(Stum, 1998). This is what is
meant by a fearless culture. Employees should be welcomed to challenge the way
things are being done. Companies need to let them know that honest and
confrontational communication is welcome, and that they will not be punished for
it. The point of a fearless culture is to make the employees feel a part of the
company. The first step to establishing a fearless culture is to think
communication. Establish team meetings regularly in order to exchange
information and develop new ideas about what should be being done within the
company.

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Job satisfaction has been a recognized driver of organizational performance

for 25 years. Money alone does not promote loyalty and seldom retains motivated
employees. People want their work to make a difference and they want to be part
of something that matters. Just as job satisfaction affects productivity, quality and
morale, there is a strong correlation to commitment. Being placed in the right job,
with the right orientation, training, tools and resources is still a key organizational
success factor. Employees do not need much to feel satisfied. However, it is not
just tools and resources that are needed, but self-confidence and appreciation from
your co-workers and employers that aid in job satisfaction.
All employees today are interested in where the company is headed. They
want to believe in and have confidence about their company's future. Faith that all
will be well for the company and its employees is a key factor in retention.
Employees need to be sure of where the company is headed, because that gives
them some sort of security in their lives. Security is important because it will help
in retaining employees.
The factor that most significantly affecting workforce commitment is
management's recognition of the importance of personal and family life.
Employees need to know that
their family and personal life are important. However, this cannot only be done
through programs such as childcare and financial planning. Companies need
activities such as company picnics, bring your children to work day, and family
safety fairs. If employees see that the company is really making the effort, they
will start to believe that the recognition of family life is really there.

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IMPORTANCE OF EMPLOYEE RETENTION

Now that so much is being done by organizations to retain its employees, why is
retention so important? Is it just to reduce the turnover costs? Well, the answer is a
definite no. Its not only the cost incurred by a company that emphasizes the need
of retaining employees but also the need to retain talented employees from getting
poached.
The process of employee retention will benefit an organization in the following
ways:

1. The Cost of employee Turnover:

The cost of employee turnover adds hundreds of thousands of money to a
company's expenses. While it is difficult to fully calculate the cost of turnover
(including hiring costs, training costs and productivity loss), industry experts
often quote 25% of the average employee salary as a conservative estimate.
2.Loss of Company Knowledge:
When an employee leaves, he takes with him valuable knowledge about the
company, customers, current projects and past history (sometimes to competitors).
Often much time and money has been spent on the employee in expectation of a
future return. When the employee leaves, the investment is not realized.
3.Interruption of Customer Service:
Customers and clients do business with a company in part because of the people.
Relationships are developed that encourage continued sponsorship of the
business. When an employee leaves, the relationships that
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2. employee built for the company are severed, which could lead to potential
customer loss.
3. Turnover leads to more turnovers: When an employee terminates, the
effect is felt throughout the organization. Co-workers are often required to
pick up the slack. The unspoken negativity often intensifies for the
remaining staff.
4. Goodwill of the company:
The goodwill of a company is maintained when the attrition rates are low.
Higher retention rates motivate potential employees to join the organization.
5.Regaining efficiency:
If an employee resigns, then good amount of time is lost in hiring a new employee
and then training him/her and this goes to the loss of the company directly which
many a times goes unnoticed. And even after this you cannot assure us of the
same efficiency from the new employee

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RETENTION MYTHS

The process of retention is not as easy at it seems. There are so many tactics and
strategies used in retention of employees by the organizations. The basic purpose
of these strategies should be to increase employee satisfaction, boost employee
morale hence achieve retention. But some times these strategies are not used
properly or even worse, wrong strategies are used. Because of which these
strategies fail to achieve the desired results.There are many myths related to the
employee retention process. These myths exist because the strategies being used
are either wrong or are being used from a long time. These myths prevent the
employer from successfully implementing the retention strategies. Let us learn
about some of these myths.
1. Employees leave an organization for more pay: Money may be
the motivating factor for some but for many people it is not the most
important factor. Money matters more to the low-income-employees for
whom its a survival issue. Money can make an employee stay in an
organization but not for long. The factors more important than money are
job satisfaction, job responsibilities, and individuals skill development.
The employers should understand this and work out some other ways to
make employees feel satisfied. When employees leave, management tries
to retain them by offering more money. But instead they should try to
figure out the main reason behind it. Issues that are mainly the cause of
dissatisfaction are organizations policies and procedures, working
conditions, relationship with the supervisor and salary, etc. For such
employees, achievement, growth, respect, recognition, is the main
concern.

15

Incentives can increase productivity: Incentives can surely increase

productivity but not for long term. Cash incentives, volume work targets
and speed awards are old management beliefs. They can generate work
speedily and in volumes but cant boost employee commitment. Rather
speed can hamper the quality of work produced. What really glues
employees to their work and organization is quality
2. work,

meaningful

responsibilities,

recognition,

respect,

growth

opportunities and friendly supervisors.

3. Employees run away from responsibilities: It is a myth that employees
run from responsibilities. In-fact employees feel more responsible if they
are given extra responsibilities apart from their regular job. Employees
look for variety, greater control on the processes and authority to take
decisions in their present job. They want opportunities to learn and grow.
Management can assign extra responsibilities to their employees and
appreciate them on the completion of these tasks. This will induce a sense
of pride in the employee and will improve the relationship between the
management and the employee.
4. Loyalty is a thing of the past: Employees can be loyal but what they
need is an employer for whom they can be loyal. There is no reason for the
employee to hop jobs if hes satisfied with the employer.
5.Taking measures to increase employee satisfaction will be expensive for the
organizations: The things actually required to improve employee satisfaction like
respect, career growth and development, appreciation, etc. cant be bought. They
are free of cost. An employer or management that reacts well to the employees
ideas and suggestions is enough for the employees to be retained.

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REASONS WHY EMPLOYEES LEAVE

1. Expectations not met:
Expectations play a large part in determining whether an employee is satisfied or
dissatisfied with the current state of affairs.
On joining the firm the individual will have a range of expectations covering
areas such as the style of management, the working hours, holidays, pay, bonus
and so on.
It is not unusual for employees to leave within the first six months when they
discover that things arent quite as they imagined they would be.
Their expectations may have been unrealistic from day one, but each departure is
yet more disruption, harming productivity, adding extra unnecessary costs and
making it more difficult to reach goals for sales, revenue and profitability.
Few firms seem to appreciate the importance of expectations. They dont ask
candidates about their expectations, giving them the opportunity to select
someone who is unlikely to be disappointed, and therefore, more likely to stay.
2. Mismatch between the person and the role
Employees who find themselves in roles that do not suit their individual strengths,
tend not to stay around that long.
A productive employee gets promoted into a position that requires skills that they
do not possess. A role that exposes their weaknesses, and as a result, a role that
they do not enjoy.

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Faced with the prospect of having to spend many months, perhaps years, in a job
that is a struggle, a job that they find difficult, a job that is a mismatch for their
specific talents, most of them choose to leave the company and go.

3. Mismatch between person and the culture of the firm

It is not so much that there is a single ideal culture, more that cultures vary, and as
many departures show, not everyone is likely to be ideally suited to culture of
your firm.
Some workplaces are high pressured, fast paced, dynamic. Ideal for people who
thrive on adrenaline, who enjoy this tempo, constantly being on the go. Others are
caring, emotional, long discussions, shared views. Endless dialogue before action
is taken. Everyones opinion counts.
Put an employee in a culture that suits their temperament and they feel at home. It
is an environment in which they can function to the best of their abilities. But put
an employee in a firm whose culture does not suit their personality, their style or
their approach and it rarely works. They dont settle, they under-perform, they
miss the feel of previous employers where they were able to contribute more.
They leave.
4. Insufficient opportunities for growth and advancement
Employees want to make progress, to get ahead. They want to make that next step
up the career ladder. They think about where they would like to be in 5 years time,
in 10 years time.
Their loyalty is largely to themselves, to make the most out of the natural talents,
the skills, and determination they possess.

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They recognize the importance of building new skills, refining current ones,
getting new experiences. If the opportunities arent available with their current
employer, they will find look elsewhere.

5. Insufficient recognition or appreciation

The Employees that dont receive adequate recognition for their contribution, that
get little appreciation for their efforts, start to wonder why they bother. And it
doesnt take much to tempt them away.
Employees that did not feel valued, that felt that their efforts, their hard work, was
not appreciated. That their achievements, their contribution to the success of the
business, was not recognised.
Employees want to feel valued; as though their role is important, as though the
business needs them. They want someone to say thank you. Thanks for that piece
of work, thanks for helping out in a crisis, thanks for dealing with that problem.
6. Problems with direct manager
The state of the relationship between an employee and their direct manager goes a
long way towards determining whether they stay or leave.
Some employees stay far longer than might otherwise be expected because of the
relationship they have with their supervisor. Others leave jobs in the first few
months because they sense their manager is not someone that brings the best out
of them.
And they need to get away. Because the daily challenge of dealing with someone
they dislike, someone that lacks basic people skills, is just too much to bear.

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Poor relationships between employees and their managers are one of the most
common reasons for employee turnover.

7. Dissatisfaction with pay

Not receiving a fair salary, a fair pay rise, a fair bonus. Dissatisfaction with
financial rewards is complex.
Much of the dissatisfaction is due to comparisons. A previously adequate salary
starts to feel insufficient when you have just learnt that a new arrival is receiving a
higher wage for performing a similar role
Salaries rarely remain a secret. The information leaks out. If it isnt fair, if it isnt
equitable, if the procedure for determining pay settlements is tainted, employees
become dissatisfied. And in time many of them leave.
8. Stress
The stress of work, the stress from working long hours, the stress related to
pressure from above; employees can take only so much.
Stress drives employees into the arms of alternative employers. They simply want
to get away from the workplace, from the people involved, from the firm.
A stressful workplace is rarely a productive one. Attrition is high, people dont
matter; there will always be someone else to fill the vacancy. And in time they too
will probably leave for much the same reasons.
Stressful work environments tend to be high turnover environments. If there is an
alternative, people take it.
9. Lack of work life balance

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Employees have responsibilities to their employer, to their families, to their

friends. There are times when the demands of work require extra hours, staying
late to get things finished, working during weekends to meet deadlines.
For some employees the demands of work are no longer compatible with the
needs of their family, the needs that exist beyond the workplace. Perhaps they
coped better when they were younger, before they got married, before they had a
family. But now the arrangement just isnt practical.
They need a better balance. They need to have time for themselves. Time to take
care of loved ones. Free time not devoted to work.
10. Loss of confidence in the firm, particularly leadership.
Confidence matters. Companies go bust; you just need to read the papers, watch
the news, to realize the risk involved.
When employees lose confidence in the firms leadership they head towards the
exit door.
They know that confidence matters, that seemingly invincible companies can
collapse in days, if not hours. They dont want to be left without a job, should the
company go under, or be taken over.
Other factors for Retention being a challenge are:

A robust economy

Shift in how people view their careers

Changes in the unspoken "contract" between employer and employee

Corporate cocooning

A new generation of workers

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EMPLOYEE RETENTION STRATEGIES

The basic practices which should be kept in mind in the employee retention
strategies are:
1. Hire the right people in the first place.
2. Empower the employees: Give the employees the authority to get things done.
3. Make employees realize that they are the most valuable asset of the
organization.
4. Have faith in them, trust them and respect them.
5. Provide them information and knowledge.

5. Keep providing them feedback on their performance.

7. Recognize and appreciate their achievements.
8. Keep their morale high.
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9. Create an environment where the employees want to work and have fun.

These practices can be categorized in 3 levels: Low, medium

and high level.

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24

Low Level Employee Retention Strategies

Appreciating and recognizing a well done job
Personalized well done and thank-you cards from supervisors
25

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

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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

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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

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 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
Providing conveniences at workplace
Gymnasiums
Athletic membership program
Providing training and development and personal growth opportunities

Sabbatical programs

Professional skills development

Individualized career guidance

Dependents care assistance

Medical care reimbursement

High Level Strategies

Promoting Work/Life Effectiveness

Develop flexible schedules
Part-time schedules
Extended leaves of absence
Develop Support Services
On-site day care facility etc.
Understand employee needs: This can be done through proper

management style and culture

Listen to the employee and show interest in ideas
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Appreciate new ideas and reward risk-taking

Show support for individual initiative

Encourage creativity

Encouraging professional training and development and/or personal

growth opportunities: It can be done through:

Mentoring programs

Performance feedback programs

Provide necessary tools to the employees to achieve their professional and

personal goals

Getting the most out of employee interests and talents

Higher study opportunities for employees

Vocational counseling

Offer personalized career guidance to employees

Provide an environment of trust: Communication is the most important

and effective way to develop trust.

Suggestion committees can be created

Open door communication policy can be followed

Regular feedbacks on organizations goals and activities should be taken

from the employees by:

Management communications
30

Intranet and internet can be used as they provide 24X7 access to

the information

Newsletters, notice boards, etc.

Hire the right people from the beginning: employee retention is not a
process that begins at the end. The process of retention begins right from
the start of the recruitment process.

The new joinees should fit with the organizations culture. The personality,
leadership characteristics of the candidate should be in sync with the
culture of the hiring organization.

Referral bonus should be given to the employees for successful hires.

They are the best source of networking.

Proper training should be given to the managers on interview and

management techniques.

An internship program can be followed to recruit the fresh graduates.

MANAGING EMPLOYEE RETENTION

The task of managing employees can be understood as a three stage process:
1. Identify the cost of employee turnover
31

2. Understand why employee leave

3. Implement retention strategies

1.Identify the cost of employee turnover:

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.

2.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

3.Implement

comfortable

in

expressing

their

opinions.

retention strategy:

Once the causes of attrition are found, a strategy is to be implemented so as to

reduce employee turnover. The most effective strategy is to adopt a holistic
32

approach to dealing with attrition. An effective retention strategy will seek to

ensure:

Attraction and recruitment strategies enable selection of the right

candidate for each role/organization

New employees initial experiences of the organization are positive

Appropriate development opportunities are available to employees, and

that they are kept aware of their likely career path with the organization

The organizations reward strategy reflects the employee drivers

The leaving process is managed effectively

WAYS TO INCREASE EMPLOYEE

RETENTION
33

Companies have now realized the importance of retaining their quality workforce.
Retaining quality performers contributes to productivity of the organization and
increases morale among employees.
Four basic factors that play an important role in increasing employee retention
include salary and remuneration, providing recognition, benefits and opportunities
for individual growth. But are they really positively contributing to the retention
rates of a company? Basic salary, these days, hardly reduces turnover. Today,
employees look beyond the money factor.

employee retention can be increase by inculcating the following practices:

1. Open Communication: A culture of open communication enforces
loyalty among employees. Open communication tends to keep employees
34

informed on key issues. Most importantly, they need to know that their
opinions matter and that management is 100% interested in their input.
2. Employee Reward Program: A positive recognition for work boosts the
motivational levels of employees. Recognition can be made explicit by
providing awards like best employee of the month or punctuality award.
Project based recognition also has great significance. The award can be in
terms of gifts or money.
3. Career Development Program: Every individual is worried about his/her
career. He is always keen to know his career path in the company.
Organizations can offer various technical certification courses which will
help employee in enhancing his knowledge.
4. Performance Based Bonus: A provision of performance linked bonus can
be made wherein an employee is able to relate his performance with the
company profits and hence will work hard. This bonus should strictly be
productivity based.
5. Recreation facilities: Recreational facilities help in keeping employees
away from stress factors. Various recreational programs should be
arranged. They may include taking employees to trips annually or biannually, celebrating anniversaries, sports activities, et al.
6.Gifts at Some Occasions: Giving out some gifts at the time of one or
two festivals to the employees making them feel good and understand that

the

management is concerned about them.

MEASURES ADOPTED BY HR DEPT.FOR RETENTION IN

THE BUNGE PVT LTD RAJPURA

35

An employer has to introduce suitable measure step for reducing turnover to the
good employee which is best for the company though. It is not possible to re
move it completely. Such step should be related to the important causes
responsible for the high rate of turnover. The possible steps which company can
adopt follow:1.Proper selection:
Right types of the people should be employed for various jobs. While assigning
work to the employees, their aptitude and interests should be duly considered.
This will make them feel interested in their jobs.
2.Proper Orientation:The new employees should be inducted should in such a way that their critical
attitude is reduced as possible to avoid turnover form this source.
3.Better Working Condition:The main cause of the employees due to hard nature of jobs and bad working
conditions. An employee can provide proper working condition so that workers
may not have industrial fatigue. Similarly, It is possible to make hard job a little
lighter by introducing suitable measures.
4.Provision of Transport and Housing Facilities:The main problem of employees quit due to housing, transport and other
difficulties. It is possible for the employer to provide free or confessional
transport facility to workers from residence to factory. This will ensure regularity
of worker
5. Incentives &Bonus to regular employees:

36

Cash prizes may be given to those who are regular throughout the year. Workers
who are regular may be given special bonus for their regularity. Regularity in
attendance is given consideration while promotion. such positive measures
encourage workers to be regular in their jobs.
6.Prevention of accidents:
Industial accidents may increase absenteeism. The management takes adequate
safety measures to minimize industrial accidents in workshops.
7.Working environment:
The workers are provided congenial atmosphere to perform their duties. The place
is properly well ventilated. The lightning system is provided, proper fans have
been provided wherever required. Proper transport facilities are given
8.Canteen facilities.
The company has provided canteen for both staff &workers. The meals &tea is
provided to all workers at nominal rates.
9.Medical, health &hygiene :
The company has a dispensary room to provide first aid facility to the employees
in accidents cases. A well qualified doctor also visits the company 3 times in a
week. The company also provided clean washrooms, changing rooms &pure
drinking facilities to the employees.

CHAPTER -2
COMPANY PROFILE

37

The Bunge Pvt Ltd Rajpura is one of the leading Manufacturing Vegetables
Oils and Fats. The company is located at Rajpura -Chandigarh road in area of 36
acres and it is ISO 9001-2001certified company. This company made a humble
beginning in 1969 with

inauguration of stone laying ceremony by

H.E.Dr.D.C.PAVETTE, governor of Punjab of 6

march ,1969 .its production

started on 1910-1970 with the capacity 100 MT per day of Vanaspati later of in
the year 1982-86 a separate facility to produce refined oil was set up, with a
capacity is 3,000 tones. In the span of time plant has to come to be recognized as
a major venture and after has grown from strength to strength at a rapid pace
adopting new technologies, marketing strategies of business values and ethos.
It is a continuous process plant. Quality product and total customer
satisfaction are the prime concern of the company. In addition the company has
gone beyond its boundaries to meet its commitment towards the community and
environment. It is holding 42% of market share in North India with a turn over of
Rs.500cr.per annum .It is group that has lived up to its name because "AMRIT"
symbolize "PURITY"

MISSION STATEMENT OF THE COMPANY

To produce sell goods and services to achieve the highest return on sales in the
industry to satisfaction of the consumers, employees and share holders in that
order.

ORGANIZATIONAL STRUCTURE

38

CMD
Executi
ve
Director
V.P.
(comme
rcial)
vacant

Mr.
Ramesh
kalia
Sr.G.M.
(HR &
Admns.)

commo
dities

Secutit
y

T.P.O.

Personn
al
Liason

Mr.Subrot
a Bose.
DGM.
(mktg.)
RSM
Speciality

Dr.S K
Handoo
V.P.
(R&D)
Quality
Bakers

CMO -Depot
A/c, Sale
Promotion,
Advertiseme
nt & New
product

Product
devolpm
ent
(R&D)

RSM V&RO

Mr.
Parveen
Tarika
V.P.
(Fiananc
e&
Account)
DGM
A/c
Payment,
Receipt
DGM IT
Sr. Mgr.nonroutine
P/L A/c,
Taxation,
Audit

Company
Sect for
Board
Meeting

PRODUCTS
39

Mr.A.K.
Jain
Sr. V.P.
( Works)
Supply
Chain
Manage
ment
Mr.Sunil
Badhera
Sr. G.M.
(Engg.)
Mr.S S
Brar Sr.
G.M(Prod
.)

Bakery Shortening (For Biscuits

Gagan Gold Vanaspati

Ginni Gold Refined Sunflower Oil

Ginni Nutri Delight Nuggets

Ginni Plus Refined Oil

Merrilite

40

Kachi Ghani Mustard Oil

Refined Cottonseed Oil

Merrigold Table Margarine

CHAPTER - 3
41

OBJECTIVE
To high light the necessity of retention in prevailing business environment.
Analyze the existing system of retention adopted in Bunge India Pvt Ltd.. In
relation to the objective of recruitment and selection system.
To identify the weakness in the system.
To suggest/recommend appropriate strategies changes in existing system.
To reduce employee turnover.
To reduce the cost of hiring a new employee.

RESEARCH METHODOLOGY
42

A research design is the arrangement of conditions for the collection of data and
analysis of data. Infact, reseach design is the conceptual structure within which
research is conducted.
Descriptive Research Design has been used by

me
to solve each and every factor of given task. In the descriptive research
study, the main purpose is that of formulating a problem for more
precise investigation or of developing the working hypothesis forms an
operational point of view. The major emphasis is on the discovery of
ideas and in sights.

DATA COLLECTION METHOD

According to the needed research for the project is both Primary and
Secondary

data

collection

methods.

We

have

used

company

website and some publications on the net and information related tovroucher for
secondary data collection. To ensure the accuracy of the primary data collection
used is the structured interview method.
SAMPLING PLAN
Sample Size:-

100 employees

Sample unit:-

Bunge India Pvt .Ltd

Method of sampling:-

Simple random
Sampling

Method of data collection:-

Primary &
secondary

Research design :-

Descriptive
43

CHAPTER 4
DATA ANALYSIS & INTERPRETATION

1. If you look for a new Job, (in a new company) what will be your
preference?
a)
b)
c)
d)

Career plan
Flexible Timings
Not improvement in position (Increase in other benefits)
Improvement in position

44

70%
60%
50%
40%
30%
20%
10%
0%

2.How
much are You satisfied with the current job?
a)
b)
c)
d)
e)

Very high
Fairely enough
Moderate
Very less
Not at all

60%
50%
40%
30%
20%
10%
0%
very high

Fairely enough

Moderate

45

very less

Not at all

46

a) 3. To what extent do you feel quitting the present job will give you a satisfied job?

Very high
Fairely enough
Moderate
Very less
Not at all

b)
c)

35%
30%
25%
20%
15%
10%
5%
0%
very high

Fairely enough

Moderate

very less

Not at all

d) 4.Are you satisfied with the Facilities provided by the organization?

e)
a) Yes
b) No
f)
g)
70%
60%
50%
40%
30%
20%
10%
0%
Yes

h)
i)
j)
k)
l)
m)
n)
o)
p)
q)
r)
s)
t)
u)
v)
w)
x)
y)
z)
aa)
ab)
ac)

No

ad)
ae) 5.Are you satisfied with the working conditions with in the company?
af)
a) Yes
b) N
ag)
ah)
ai)
aj)
ak)
80%
70%
60%
50%
40%
30%
20%
10%
0%
yes

al)
am)
an)
ao)
ap)
aq)
ar)
as)
at)
au)
av)

no

aw)
6.Do you feel that welfare measures provided by the company are
satisfied?
ax)
a) Yes
b) No
ay)
az)
ba)
70%
60%
50%
40%
30%
20%
10%
0%
Yes

No

bb)
bc)
bd)
be)
bf)
bg)
bh)
bi)
bj)
bk)
bl)
bm)
bn)
bo)
bp)
bq)
br)
bs)
bt)
bu)

50

bv)
bw)
bx) 7. Is your work hazardous?
by)
a) Yes
b) No
bz)
ca)
cb)
80%
70%
60%
50%
40%
30%
20%
10%
0%
Yes

No

cc)
cd)
ce)
cf)
cg)
ch)
ci)
cj)
ck)
cl)
cm)
cn)
co)
cp)
cq)
cr)
cs)
ct)
cu)

51

cv)
cw)
cx)
cy) 8. What is the nature of your job?
cz)
a) Simple
b) Difficult
c) Technical
da)
db)
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
simple

difficult

dc)
dd)
de)
df)
dg)
dh)
di)
dj)
dk)
dl)
dm)
dn)
do)
dp)
dq)
dr)
ds)
dt)

52

technical

du)
dv)
dw)
dx)
dy) 9.To improve your workplace environment what would you like to see your
managers or executives do for you ?
dz) a) Better communication

b) Try new things at work

ea) c) Show more concern

d) Listen to your ideas

eb)
ec)
ed)
ee)
ef)
eg)
eh)
ei)
ej)
ek)
el)
em)
en)
eo)
ep)
eq)
er)
es)
et)
eu) 10.What could be done to improve retention?
ev) a) Better benefits
ew)

b) Pay more

c) Listen to employees grievances

53

ex)
60%
50%
40%
30%
20%
10%
0%
better benefits

pay more

listen to employees grievances

ey)
ez)
fa)
fb)
fc)
fd)
fe)
ff)
fg)
fh)
fi)
fj)
fk)
fl)
fm)
fn)
fo)

fs)

FP)
FQ)
FR)
CHAPTER - 5
ft) FINDINGS
54

fu)
fv)I have made an effort to analysis the retention system of
Bunge India Pvt Ltd..

for keeping in view the policy and

objectives defined by HR Department. Though, there are to

categories of employees i.e. staff and workers hence
different categorization like highly skilled, skilled, semi
skilled and unskilled.
fw)

The best retention strategies and method remains the

same. In my view following salient:fx)

fy)1 In Bunge India Pvt Ltd.. the manpower planning process insures
that it has the right member and right kind of people and at
the

right

time

doing

the

work

for

which

they

are

economically most useful.

fz) 2 The objectives at the spelt out as under:
To carry out accurate estimate of the number of employees
To identify skills requirement
The above is in importance with the organization rules.
ga)
gb)

3 In Bunge India Pvt Ltd.. Ltd man power planning is based

on annual requirements and not like other corporate houses

55

where the normal technique for manpower planning about

three to five years.
gc)

4 The basic aim is being to attract best available

manpower in the market and seek widest possible choice in

selecting best candidate
gd) 5. Based on the requirements the personnel department mainly realize on
advertisement consultants or references.
ge)

gf) 6. The personnel department maintain the check list of requirements of the
position based on requisition to furnish by different department by own quartile.
gg) 7. The entire data is maintained by personnel department and organization of all
activities like recruitment, induction is carried out by personnel department.
gh) 8. Though there is no retention strategy in written form in Bunge India Pvt Ltd.
But certain measures like providing better working environment monetary
benefits and medical facilities etc.
gi) 9. It has emerged from the records in Bunge India Pvt Ltd.. over a period of three
years that most of the people leave the company in the staff category i.e. to in
managers and above.
gj) 10. From the questionnaire part the following conclusion has been made by me
The employees in the Bunge India Pvt Ltd.. mostly are not very satisfied. From
the data collected 60% of the workers want to go for other carrier opportunities
due to not improvement in the position where as 28% of the employees fell
working environment is good this shows that the most of the employees are not
satisfied from there company so most of the employees are willing to shift their
56

job. The employees think that there is less communication between workers and
supervisors so they feel that they are only employees but not part of the company
they want that there salary should be paid according to work and there work
should be appreciated/recognized and the employees want flexible worked hours
and more employee participation
gk)

gl) However there are two sides of every coin in the same way if the workers are less
satisfied that doesnt mean they are very much willing to leave the job. The
employees are happy with the benefits provided to them like Medical
facilities,ESI leaves, formal family dinners, Low EMI on loans, Scholarship
schemes for the wards of the employees. Last but not the least other welfare
schemes.

GM)
GN)
GO)
GP)
GQ)
GR)
GS)
GT)
GU)
GV)
GW)
GX)
GY)
GZ)
HA)
HB)
HC)
57

hj)

HD)
HE)
HF)
HG)
HH)
HI)
SUGGESTIONS

hk)
hl) Having gone through the concept of Retention .I have found that all the aspects
have been addressed to in one form or the other but still there is a scope to
improve the existing system by incorporating new methods and strategies. I have
following suggestions / recommendations to make.
hm)
For placing demand of requirements of manpower through advertisement, public
consultants. It is suggested that new methods to find out talent / job seekers
through internet etc. Personal data bank of Bunge India Pvt Ltd.. should be
created so that whenever there is an urgent need of talented employee he / she can
be contact immediately.
hn)
The form for interview trust should also include two desire columns i.e. high
skills and soft skills and interview committee should access the individual
keeping in mind organization culture so that culturally fit talent is selected which
will go away for long way to ensure retention.
ho)

58

 There is a requirement to lay down retention strategy with its objectives well
defined. it should written format so that this important aspect is well understood
by all employees in true perspective.
hp)
Salaries , bonus , incentives and allowances keep the employees motivated and
they are one of the main reasons of retention so the employees should be paid
handsome salaries
hq)
Company image should be enhanced. Regular events should be organized and
other social responsibilities of business should be performed by company from
time to time.
hr)

hs)
ht)
hu)
hv)
hw)
hx)
hy)
hz)

59

ia)
ib)
ic)
id)
ie) CONCLUSION
if)
ig)

The retention of required talent is an important aspect to ensure overall

development of the organization. Such employees by remain satisfied and
committed to their job which enhances the productivity and overall working
environment providing and edge in the competitive market. At last we can say that
providing the proper facilities to the employee the problem in the organization can
be solved and then they definitely stay in their jobs and remain regular in their
work. The organization should also provide proper working condition to the
workers. When the organization provides such facilities to the employees then the
problem of attrition is checked at a large scale.

ih)

II)
IJ)
IK)
IL)
60

IM)
IN)
IO)
IP)
IQ)
IR)
IS)

IT)
IU)

IV)

ANNEXURE

IW)
IX)

QUESTIONNAIRE

IY)
iz) 1. If you look for a new Job, (in a new company) what will be your
preference?
e)
f)
g)
h)

Career plan
Flexible Timings
Not improvement in position (Increase in other benefits)
Improvement in position

ja)
jb) 2.How much areYou satisfied with the current job?
f)
g)
h)
i)
j)

Very high
Fairely enough
Moderate
Very less
Not at all

jc)
jd) 3.To what extent do you feel quitting the present job will give you a satisfied
job?
je)

Very high

jf)

Fairely enough

jg)

Moderate

61

jh)

Very less

ji)

Not at all

jj)
jk) 4.Are you satisfied with the Facilities provided by the organization?
jl)
c) Yes
d) No
jm)
jn) 5.Are you satisfied with the working conditions with in the company?
jo)
c) Yes
d) N
jp)
jq) 6.Do you feel that welfare measures provided by the company are satisfied?
jr)
c) Yes
d) No
js)
jt) 7.Is your work hazardous?
ju)
a) Yes
b) No
jv)
jw) 8.What is the nature of your job?
jx)
a) Simple
b) Difficult
c) Technical
jy)
jz) 9.To improve your workplace environment what would you like to see your
managers or executives do for you ?
ka)
kb)

a) Better communication

kc)

b) Try new things at work

kd)

c) Show more concern

ke)

d) Listen to your ideas

kf)
kg) 10.What could be done to improve retention?
kh)

a) Better benefits

ki)

b) Pay more
62

kj)

c) Listen to employees grievances

kk)
kl)
km)

KN)
KO)
KP)
KQ)

KR)

BIBLIOGRAPHY

KS)
kt) www. Bunge India Pvt Ltd.com
ku)www.naukrihub.com
kv) www.wikipedia.com

kw)
kx)
ky)

63