EMPLOYEE RETENTION IN HCL

submitted in partial fulfillment for the award of the degree of Masters of Business Administration , Punjab Technical University, Jalandhar (2000-11)

Submitted to:

Submitted by: Name: Simranjeet kaur

RBIEBT (MBA)

University Roll no.

____________________________________________________________ Rayat & Bahra Institute of Engineering and Bio- Technology (MBA),

Sahauran, Kharar.

DECLARATION
I the undersign hereby declare that the project report entitled Employee Retention in HCL written and submitted by me to RBIEBT, Sahauran in partial fulfillment of the requirement for the award of M.B.A under the guidance of my mentor Mr. TANVIR SINGH NOOR, is my original

work and the conclusion drawn there in are based on the material collected by myself. I hereby declare also this study has not been permitted by me to publish anywhere.

Simranjeet kaur

ACKNOWLEDGEMENT
I take the opportunity to express our gratitude to all the concerned people who have directly or indirectly contributed towards completion of this project. I extend my sincere gratitude towards HCL Career Development Center (Mohail) for providing the opportunity and resources to work on this project. I am extremely grateful to Mr. TANVIR SINGH NOOR, my mentor in HCL for his guidance and invaluable advice during the project whose insight encouraged me to go beyond the scope of the project and this broadened me learning on this project.

Simranjeet kaur

PREFACE
Employee retention refers to policies and practices companies use to prevent valuable employees from leaving their jobs. How to retain valuable employees is one of the biggest problem that plague companies in the competitive marketplace. Not too long ago, companies accepted the revolving door policy as part of doing business and were quick to fill a vacant job with another eager candidate. Nowadays, businesses often find that they spend considerable time, effort, and money to train an employee only to have them develop into a valuable commodity and leave the company for greener pastures. In order to create a successful company, employers should consider as many options as possible when it comes to retaining employees, while at the same time securing their trust and loyalty so they have less of a desire to leave in the future.

CONTENTS

Introduction

CHAPTER 1 INTRODUCTION

Companies today are forced to function in a world full of change and complexity, and it is more important than ever to have the right employees in order to survive the surrounding competition. It is a fact that a too high turnover rate affects companies in a negative way and retention strategies should therefore be high on the agenda. When looking at this problem area we found that there may be actions and tools that companies could use to come to terms with this problem. Research told us that leadership, remuneration and elements like participation, feedback, autonomy, fairness, responsibility, development and work-atmosphere is important for job satisfaction and retention. Hiring knowledgeable people for the 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.

RETENTION
Employee retention is a process in which the employees are encouraged to remain with the organization for the maximum period of time or until the completion of the project. Employee retention is beneficial for the organization as well as the employee. Employees today are different. They are not the ones who dont have good opportunities in hand. As soon as they feel dissatisfied with the current employer or the job, they switch over to the next job. It is the responsibility of the employer to retain their best employees. If they dont, they

IMPORTANCE OF EMPLOYEE RETENTION

The Cost of Turnover: The cost of employee turnover adds hundreds of thousands of money to a company's expenses. While it is difficult to fully calculate the cost of turnover (including hiring costs, training costs and productivity loss), industry experts often quote 25% of the average employee salary as a conservative estimate. 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.

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 employee built for the company are severed, which could lead to potential customer loss.

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.

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.

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 would be left with no good employees. A good employer should know how to attract and retain its employees. Retention involves five major things: 1) compensation 2) environment 3) growth

4) relationship 5) support

WHY EMPLOYEES LEAVE THE ORGANISATION

Employees do not leave an organization without any significant reason. There are certain circumstances that lead to their leaving the organization. The most common reasons can be: Job is not what the employee expected to be: Sometimes the job responsibilities dont come out to be same as expected by the candidates. Unexpected job responsibilities lead to job dissatisfaction. Job and person mismatch: A candidate may be fit to do a certain type of job which matches his personality. If he is given a job which mismatches his personality, then he wont be able to perform it well and will try to find out reasons to leave the job.

No growth opportunities: No or less learning and growth opportunities in the current job will make candidates job and career stagnant.

Lack of appreciation: If the work is not appreciated by the supervisor, the employee feels de-motivated and loses interest in job.

Lack of trust and support in coworkers, seniors and management: Trust is the most important factor that is required for an individual to stay in the job. Nonsupportive coworkers, seniors and management can make office environment unfriendly and difficult to work in.

Stress from overwork and work life imbalance: Job stress can lead to work life imbalance which ultimately many times lead to employee leaving the organization.

Compensation: Better compensation packages being offered by other companies may attract employees towards themselves.

New job offer: An attractive job offer which an employee thinks is good for him with respect to job responsibility, compensation, growth and learning etc. can lead an employee to leave the organization.

STRATEGIES FOR EMPLOYEE RETENTION

The basic practices which should be kept in mind in the employee retention strategies are:

1. Hire the right people in the first place.

2. Empower the employees: Give the employees the authority to get things done.

3. Make employees realize that they are the most valuable asset of the organization.

4. Have faith in them, trust them and respect them.

5. Provide them information and knowledge. 6. Keep providing them feedback on their performance.

7. Recognize and appreciate their achievements.

8. Keep their morale high.

9. Create an environment where the employees want to work and have fun.

. These practices can be categorized in 3 levels: Low, medium and high level.

HOW TO INCREASE EMPLOYEE RETENTION

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 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 bi-annually, 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.

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.

2. Incentives can increase productivity: Incentives can surely increase productivity but not for long term. Cash incentives, volume work targets and speed awards are old management beliefs. They can generate work speedily and in volumes but cant boost employee commitment. Rather speed can hamper the quality of work produced. What really glues employees to their work and organization is quality work, meaningful responsibilities, recognition, respect, growth opportunities and friendly supervisors.

3. Employees run away from responsibilities: 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.

MANAGERS ROLE IN RETENTION

When asked about why employees leave, low salary comes out to be a common excuse. However, research has shown that people join companies, but leave because of what their managers do or dont do. It is seen that managers who respect and value employees competency, pay attention to their aspirations, assure challenging work, value the quality of work life and provided chances for learning have loyal and engaged employees. Therefore, managers and team leaders play an active and vital role in employee retention.

Managers and team leaders can reduce the attrition levels considerably by creating a motivating team culture and improving the relationships with team members. This can be done in a following way:

Creating a Motivating Environment: Team leaders who create motivating environments are likely to keep their team members together for a longer period of time. Motivation does not necessarily have to come through fun events such as parties, celebrations, team outings etc. They can also come through serious events e.g. arranging a talk by the VP of Quality on career opportunities in the field of quality. Employees who look forward to these events and are likely to remain more engaged.

Standing up for the Team: Team leaders are closest to their team members. While they need to ensure smooth functioning of their teams by implementing management decisions, they also need to educate their managers about the realities on the ground. When agents see the team leader standing up for them, they will have one more reason to stay in the team.

Providing coaching: Everyone wants to be successful in his or her current job. However, not everyone knows how. Therefore, one of the key responsibilities will be providing coaching that is intended to improve the performance of employees. Managers often tend to escape this role by just coaching their employees. However, coaching is followed by monitoring performance and providing feedback on the same.

Delegation: Many team leaders and managers feel that they are the only people who can do a particular task or job. Therefore, they do not delegate their jobs as much as they should. Delegation is a great way to develop competencies.

Extra Responsibility: Giving extra responsibility to employees is another way to get them engaged with the company. However, just giving the extra responsibility does not help. The manager must spend good time teaching the employees of how to manage responsibilities given to them so that they dont feel over burdened.

Focus on future career: Employees are always concerned about their future career. A manager should focus on showing employees his career ladder. If an employee sees that his current job offers a path towards their future career aspirations, then they are likely to stay longer in the company. Therefore, managers should play the role of career counselors as well.

CHAPTER 2 REVIEW OF LITERATURE

Objective of the study

The main objective is to increase the understanding regarding employees retention in relation to leadership style, remuneration and elements such as participation, feedback, autonomy, fairness, responsibility, development and work-atmosphere

Research Design
Descriptive Design.

Research Problem Scope of the study

The scope of the study covers in depth, the employee retention practices, modules, formats being followed and is limited to the company Hcl and its employees.

Sources of data Methods of data collection

Communication, asking questions and receiving a response in person Visiting the various organizations, libraries, internet and also preparation of the questionnaire with the help of the project guide.

Sample Size
To understand the training and development scenario at Reliance Mobile and what the trainee really feels about the training they have undergone and further what kind of

training they look for. Do they really look for any kind of training or not? To study the above aspect we covered almost about 40 people from almost all the department at of the company Reliance Mobile

Sample area Statistical tools used for interpretation and analysis

Primary data collected through questionnaires and informal interviews. Secondary data collected through magazines, journals, websites, and other corporate publications

Limitations of the study

CHAPTER 4 INTERPRETATION AND ANALYSIS

Q1. I get the best possible work environment Response Agree Strongly Agree Neutral Disagree Strongly Disagree Total 9 2 3 0 0 14 No. Of Respondents 65 14 21 0 0 100 Percentage

Agree

22% 14% 64%

Strongly Agree Neutral Disagree Strongly Disagree

Interpretation:The above chart indicates that employees are satisfied with working environment provided by organization.

Q 2. I take pride in the company. Response Agree Strongly Agree Neutral Disagree Strongly Disagree Total No. of respondents 8 4 2 0 0 14 Percentage 57 29 14 0 0 100

14%

Agree Strongly Agree Neutral

29%

57%
Disagree Strongly Disagree

INTERPRETATION:The above chart indicates that the most of the employee feel pride to work in the company.

Q 3. My organization lives its corporate values. Response Agree Strongly Agree Neutral Disagree Strongly Disagree Total No. of respondents 5 2 4 2 1 14 Percentage 36 14 29 14 7 100

7% 14% 36%

Agree

Strongly Agree
Neutral

29% 14%

Disagree

Strongly Disagree

INTERPRETATION:50% people are in favor with above statement but 50% people have doubt about it.

Q 4. My organization provides employee appreciation program Response Agree Strongly Agree Neutral Disagree Strongly Disagree Total No. of respondents 3 2 6 3 0 14 Percentage 21 14 44 21 0 100

Agree

21%

22%

Strongly Agree

Neutral

14%
Disagree

43%
Strongly Disagree

INTERPRETATION:The above graph indicates that organization provides employee appreciation program but not for all employees.

Q 5. We celebrate personal events in the work place such as birthday. Response Agree Strongly Agree Neutral Disagree Strongly Disagree Total No. of respondents 5 8 1 0 0 14 Percentage 36 57 7 0 0 100

7% 36%

Agree Strongly Agree Neutral

57%

Disagree Strongly Disagree

INTERPRETATION:This graph indicates that organization fully motivate its employees by celebrating their birthday and other parties.

Q6 My organization provides training and development opportunities to the employees Response Agree Strongly Agree Neutral Disagree Strongly Disagree Total No. of respondents 5 2 5 2 0 14 Percentage 36 14 36 14 0 100

14% 36%

Agree Strongly Agree

Neutral

36% 14%

Disagree Strongly Disagree

INTERPRETATION:The above graph indicates that organization provides training and development opportunities to the employees adequately. Moreover, it needs to give more focus this issue.

Q7. My organization has an effective mentoring or budding system?

Response Agree Strongly Agree Neutral Disagree Strongly Disagree Total

No. of respondents 7 1 5 1 0 14

Percentage 50 7 36 7 0 100

7%

Agree Strongly Agree

36%

50%

Neutral Disagree

7%

Strongly Disagree

INTERPRETATION:The above graph shows that organization has an effective mentoring or budding system

Q8. The compensation plans are managed fairly and equitably in the organization.

Response Agree Strongly Agree Neutral Disagree Strongly Disagree Total

No. of respondents 4 0 8 0 2 14

Percentage 29 0 57 0 14 100

14% 29%

Agree Strongly Agree Neutral Disagree

57%
Strongly Disagree

INTERPRETATION:The above graph indicates that the organization does not much take care about the compensation plans for employees.

Q9. The organization offers profit sharing plans to the employees. Response Agree Strongly Agree Neutral Disagree Strongly Disagree Total No. of respondents 4 0 5 2 3 14 Percentage 29` 0 36 14 21 100

Agree

21%

29%

Strongly Agree Neutral Disagree

14% 36%

Strongly Disagree

INTERPRETATION:The above graph indicates that organization has not sufficient offers for profit sharing plans to the employees

Q10. Organization is able to retain employees: Response Agree Strongly Agree Neutral Disagree Strongly Disagree Total No. of respondents 8 2 3 1 0 14 Percentage 58 14 21 7 0 100

7% 22% 57% 14%

Agree Strongly Agree Neutral Disagree

Strongly Disagree

INTERPRETATION:The above graph indicates that employees are fully preferred to work in that organization and also company has full ability to retain the employees.

Q11. Manager building personal bonds with their subordinates. Response Agree Strongly Agree Neutral Disagree Strongly Disagree Total No. of respondents 5 5 4 0 0 14 Percentage 35 36 29 0 0 100

Agree

28%

36%

Strongly Agree Neutral Disagree

36%

Strongly Disagree

INTERPRETATION:The above Chart indicates full fledge favor of the manager of company to build personal bonds with their subordinates

Q12. Reward systems exist in organization.

Response Agree Strongly Agree Neutral Disagree Strongly Disagree Total

No. of respondents 6 1 3 1 3 14

Percentage 44 7 21 7 21 100

Agree

21%
Strongly Agree

43%

7% 22%
7%

Neutral Disagree Strongly Disagree

INTERPRETATION:The above Chart indicates that company preferred to give reward to deserving candidates, but it should give more concentration to reward system because it is the best source of motivating employees

Q13. Company has exciting challenges.

Response Agree Strongly Agree Neutral Disagree Strongly Disagree Total

No. of respondents 5 4 1 2 2 14

Percentage 36 29 7 14 14 100

14%
36%

Agree

Strongly Agree
Neutral

14%
7% 29%
Disagree Strongly Disagree

INTERPRETATION:The above Chart indicates that company need to be more challenging to their competitors in order to get the higher rank in the corporate.

Q14. Employee has Freedom and autonomy Response Agree Strongly Agree Neutral Disagree Strongly Disagree Total No. of respondents 6 3 4 0 1 14 Percentage 43 21 29 0 7 100

7% 29% 43%

Agree Strongly Agree Neutral Disagree

21%

Strongly Disagree

INTERPRETATION:The above Chart indicates that company gives the freedom to the employees, and employee has right of self-sufficiency to take decisions.

Q15. Job has exciting challenges.

Response Agree Strongly Agree Neutral Disagree Strongly Disagree Total

No. of respondents 4 4 3 1 2 14

Percentage 29 29 21 7 14 100

14% 7% 21% 29% 29%

Agree Strongly Agree Neutral Disagree Strongly Disagree

INTERPRETATION:The above Chart indicates the different opinions; it may be because of the different job responsibility of the different employees. But overall job has exciting challenge with in organization

Q16. Manager clearly defines job responsibilities.

Response Agree Strongly Agree Neutral Disagree Strongly Disagree Total

No. of respondents 4 4 4 1 1 14

Percentage 28 29 29 7 7 100

7% 7% 28% 29% 29%

Agree Strongly Agree Neutral Disagree Strongly Disagree

INTERPRETATION:The above Chart indicates that manager is fully able to describe the responsibility of job to employees. Manager himself is pretended to be fully responsible towards his employees and job.

Q17. Manager encourages for high achievement.

Response Agree Strongly Agree Neutral Disagree Strongly Disagree Total

No. of respondents 5 7 2 0 0 14

Percentage 36 50 14 0 0 100

14% 36%

Agree Strongly Agree Neutral Disagree

50%
Strongly Disagree

INTERPRETATION:The above Chart is fully favorable to the manager to give confidence and give full support to his employees to achieve the goals of companies. This the good sign for the companys growth.

Q18. Manager gets support and teamwork from other areas.

Response Agree Strongly Agree Neutral Disagree Strongly Disagree Total

No. of respondents 5 2 2 3 2 14

Percentage 37 14 14 21 14 100

14% 36%

Agree Strongly Agree

22%

Neutral
Disagree

14%

14%

Strongly Disagree

INTERPRETATION:The above Chart indicates that manager does not much preferred to get support from other areas. He need to give more focus on this area.

Q19. Manager provides continuous feedback.

Response Agree Strongly Agree Neutral Disagree Strongly Disagree Total

No. of respondents 8 2 2 1 1 14

Percentage 58 14 14 7 7 100

7% 7% 14%

Agree Strongly Agree Neutral

57% 15%
Disagree Strongly Disagree

INTERPRETATION:Feedback is mandatory to control over the retention rate of company. Manager focus on continuous feedback, thats why he able to retain his employees.

Q20. Organization spends more time and money on retention program rather than on recruitment.

Response Agree Strongly Agree Neutral Disagree Strongly Disagree Total

No. of respondents 5 1 4 2 2 14

Percentage 36 7 29 14 14 100

14%

Agree

36%
14%

Strongly Agree Neutral Disagree

29%

7%
Strongly Disagree

INTERPRETATION:To control the retention rate would be more profitable rather than to spend money on new employee. Company gives more focus on the retention rate than the recruitment of new employee.

CHAPTER 5 FINDINGS OF THE STUDY

CHAPTER 6 SUGGESTIONS AND RECOMMENDATIONS

To control the retention rate would be more profitable for the organization. Hcl almost fulfill the issue of employee retention but there is something to improve as discuss above result. Show me the money is not the singular solution. While bonuses, stock-options, and flextime are appreciated, what employees really want is some assurance of continued employability. Here are the most popular worker retention strategies:

78% conferences and seminars 67% tuition reimbursement 67% managerial training 58% pay for performance 57% flextime 57% interpersonal skills training 55% technical training

CHAPTER 7 CONCLUSION

REFERENCES

ANNEXURE