EXECUTIVE SUMMARY

EXECUTIVE SUMMARY
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A Project means some task assigned by the company. My project topic is Employee Retention Strategies and Its Impact on Employee Turnover in HDFC STANDARD LIFE INSURANCE. in the company. To study the concept of Employee Retention in the organization I took this project. The objective of my research is to identify the various factors of voluntary leaving of the employees from the organization. These factors includes job and person mismatch, no growth opportunities, lack of appreciation, new job offers, lack of trust and support in coworkers, work/ life imbalance etc. The main objective is to identify the retention strategies and the strategies for reducing employee turnover and improving retention. It may include strategies like performance appraisal, career development, training programs, acknowledgement, recognition, induction programs, motivation, rewards, promotional opportunities etc. The efficiency of the organization depends upon the efficiency of its employees. The efficiency of employees is directly influenced by their own satisfaction. In the present scenario it is required for each organization to have satisfied employees and to keep employees satisfied for accomplishing the objectives and for retaining them for long period. The employee retention is directly linked to employee satisfaction and which in turn directly linked to the productivity, performance, customer satisfaction of the organization. The proper recognition, periodical appraisal, motivation to employees, salary increase etc effects the employee in the positive manner. By personally interviewing the employees of HDFC STANDARD LIFE INSURANCE, I get whole relevant data according to the need of my project. My research is based on Primary data which was collected by questionnaire methods. So in the period of my study I had prepared questionnaire for employees and done survey by personally interviewing some of the employees of HDFC.

TABLE OF CONTENTS
S.No. Title

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11.

Introduction Study Of Retention and employee turnover Objective Of Study Review Of Literature Research Methodology Data Analysis And Interpretations Conclusion Limitations Suggestions Bibliography Annexure

INTRODUCTION
ITC is one of India's foremost private sector companies with a market capitalization of nearly US$ 19 billion and a turnover of over US$ 5 billion. ITC has been rated among the World's Best Big Companies, Asia's 'Fab 50' and the World's Most Reputable Companies by Forbes magazine and among India's Most Valuable Companies by Business Today. ITC has a diversified presence in FMCG, Hotels, Paperboards & Packaging, Agri Business and Information Technology. It is ITCs strategic intent to create multiple drivers of business growth by leveraging its diverse competencies in agri sourcing, world-class manufacturing, branding, packaging, hospitality, trade marketing and distribution. By 4

blending internal competencies to meet the emerging business opportunities of a growing economy, ITC has forayed into Lifestyle Retailing, Branded Packaged Foods, Personal Care products, Education & Stationery products, Incense Sticks and Safety Matches, apart from consolidating its traditional businesses of Cigarettes and Leaf Tobacco, Hotels, Paperboards & Packaging and Agri Business.

ITC's Agri-Business is one of India's largest exporters of agricultural products. ITC is one of the country's biggest foreign exchange earners (US $ 3.2 billion in the last decade). The Company's e-Choupal initiative is enabling Indian agriculture significantly enhance its competitiveness by empowering Indian farmers through the power of the Internet. This transformational strategy, which has already become the subject matter of a case study at Harvard Business School, is expected to progressively create for ITC a huge rural distribution infrastructure, significantly enhancing the Company's marketing reach. ITC's wholly owned Information Technology subsidiary, ITC InfoTech India Limited, is aggressively pursuing emerging opportunities in providing end-to-end IT solutions, including e-enabled services and business process outsourcing. ITC's production facilities and hotels have won numerous national and international awards for quality, productivity, safety and environment management systems. ITC was the first company in India to voluntarily seek a corporate governance rating. ITC employs over 25,000 people at more than 60 locations across India. The Company continuously endeavors to enhance its wealth generating capabilities in a globalizing environment to consistently reward more than 3, 64,000 shareholders, fulfill the aspirations of its stakeholders and meet societal expectations. This over-arching vision of the company is expressively captured in its corporate positioning statement: "Enduring Value. For the nation. For the Shareholder." FMCG Products Foods ITC made its entry into the branded & packaged Foods business in August 2001 with the launch of the Kitchens of India brand. A more broad-based entry has been made since June 2002 with brand launches in the Confectionery, Staples and Snack Foods segments. ITCs foray into the Foods business is based on strong foundations that leverage ITC's proven strengths in the areas of branded cuisine, competitive sourcing of agricultural 7

commodities, contemporary packaging as well as large distribution infrastructure. The Foods business of ITC is a unique example of the synergy that different businesses of ITC bring to create new competencies and a superior market standing. The Foods business is today represented in 4 categories in the market. These are: Ready to Eat Foods Staples Snack Foods Confectionery

The unwavering commitment to internationally benchmarked quality standards enabled ITC to rapidly gain market standing in all its 6 brands: Kitchens of India Aashirvaad Sunfeast Mint-o Candy man Bingo!

The Branded Packaged Foods business continued to expand rapidly with sales growing by 57% over the previous year. The unwavering commitment to benchmarked high quality standards has enabled Aashirvaad and Sunfeast to command annual consumer spends of nearly Rs 1,000 crore each in a short span of time.

CIGRETTES

ITC is the market leader in cigarettes in India. With its wide range of invaluable brands, it has a leadership position in every segment of the market. It's highly popular portfolio of brands includes INSIGNIA, INDIA KINGS, CLASSIC, GOLD FLAKE, SILK CUTS, NAVY CUTS, SCISSORS, CAPSTAN, BERKELEY, BRISTOL AND FLAKE. Cigarette units at Kolkata (West Bengal), Bengaluru (Karnataka), Munger (Bihar) & Saharanpur (Uttar Pradesh)

LIFESTYLE RETAILING ITCs Lifestyle Retailing Business Division has established a nationwide retailing presence through its Wills Lifestyle chain of exclusive specialty stores. Wills Lifestyle, the fashion destination, offers following tempting choices: WILLS CLASSIC WORK WEAR WILLS SPORT RELEXED WEAR WILLS CLUBLIFE EVENING WEAR WILLS SIGNATURE DESINGNER WEAR

With a distinctive presence across segments at the premium end, ITC has also established John Players as a brand that offers a complete fashion wardrobe to the male youth of today. The recent launch of Miss Players with its range of trendy fashion wear for young women has been a successful addition to the youthful offering.

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INTRODUCTION OF THE PROJECT

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INTRODUCTION TO RETENTION
High performers are like frogs in a wheelbarrowThey can jump out at any time -Mc Kinsey & Company Study.
Genius begins and labor finishes is an old saying that would be profoundly significant if interpreted in the context of corporate and large employers. Concepts, visions and decisions do take shape within the four walls of corporate boardrooms. However, it is only the employees that implement and give tangibility to the corporates mission. In other words if it is the highest rung in the corporate hierarchy that has ideas, it is the employees rung that has the chisel to bring the vision to life. 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, ample chances of advancement and flexible schedules so they could attend to personal or family needs when necessary. And never leave. But then theres the real world. And in the real world, employees, do, leave, either because they want more money, hate the working conditions, hate their co-workers, want a change, or because their spouse gets a dream job in another state. Unlike inanimate products and systems that subject themselves to fine tuning without any reaction, employees would not subject themselves to any measure taken without reaction and analysis. Hence managing human resources, particularly retaining them, is an art that calls for special skills and strategies.

EMPLOYEE RETENTION
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 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 13

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. 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. The picture states the latest statement that corporate believes in Love them or lose them

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. 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 would be left with no good employees. A good employer should know how to attract and retain its employees.

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Retention involves five major things:

1) COMPENSATION

2) ENVIRONMENT

3) GROWTH

4) RELATIONSHIP

5) SUPPORT

Employee retention would require a lot of efforts, energy, and resources but the results are worth it.

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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 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 employee built for the company are severed, which could lead to potential customer loss. 4. 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.

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5. 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. 6. 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.

WHAT MAKES EMPLOYEE LEAVES?

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. 1. 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. 2. No growth opportunities: No or less learning and growth opportunities in the current job will make candidates job and career stagnant. 3. Lack of appreciation: If the work is not appreciated by the supervisor, the employee feels de-motivated and loses interest in job. 4. Lack of trust and support in co-workers, seniors and management: Trust is the most important factor that is required for an individual to stay in the job. Nonsupportive co-workers, seniors and management can make office environment unfriendly and difficult to work in.

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5. 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. 6. Compensation: Better compensation packages being offered by other companies may attract employees towards themselves. 7. 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.

EMPLOYEE RETENTION STRATEGIES

The basic practices which should be kept in mind in the employee retention strategies are: 1. Hire the right people in the first place. 2. Empower the employees: Give the employees the authority to get things done. 3. Make employees realize that they are the most valuable asset of the organization. 4. Have faith in them, trust them and respect them. 5. Provide them information and knowledge. 6. Keep providing them feedback on their performance. 7. Recognize and appreciate their achievements. 8. Keep their morale high. 9. Create an environment where the employees want to work and have fun.

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

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RETENTION DETERMINANTS
It has been recognized by both employers and employees that some common areas affect employee retention. If certain organizational components are being provided, than other factors may affect retention. Surveys of employees consistently show that better compensation package and better career opportunity are the two most important determinates of retention. Finally, job design and fair and supportive employee relationship with others inside the organization contribute to retention. Following are the components that affect employee retention: Career opportunities 1. Training Continuity. 2. Development &

Organizational Components Values and Culture. Strategies & Opportunities. Well managed & resultsoriented. Job continuity & security.

Rewards 1. Competitive pay & benefits. 2. Performance reward differentiation. 3. Recognition. 4. Special benefit & perks.

Employee Relationship 1. Fair/nondiscriminatory treatment. 2. Supervisory/management support.

Job design & work 1. Job responsibility & autonomy. 2. Work flexibility. 3. Working conditions. 4. Work/Life balancing. 20

These were the determinants of retention. An affective leadership assumed by the top management would be a very important feature that keeps the work force intact and loyal. In fact, the approach to the task of formulation of strategies for employee retention should be comprehensive and the honest intention of the employer to implement every stipulation in the package of appointment should be evident. However, there would, in each employing corporate, be a section of so-called good employees, whom it would be unwise to loose. Special strategies and special kind of efforts are required in the task of retaining them. Probably it would be the hardest task for the employer to retain them as persons and rivals would be making relentless bids to woo this section of employees. To counter these onslaughts from peers, special efforts are called for.

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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 by creating a motivating team culture and improving the relationships with team members. This can be done in a following way: 1. 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. 2. 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. 3. 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,

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coaching is followed by monitoring performance and providing feedback on the same. 4. 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. 5. 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. 6. 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.

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 have a look on some of these myths:

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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.

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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 improving 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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BENEFITS OF ATTRITION
Attrition is not bad always if it happens in a controlled manner. Some attrition is always desirable and necessary for organizational growth and development. The only concern is how organizations differentiate good attrition from bad attrition. The term healthy attrition or good attrition signifies the importance of less productive employees voluntarily leaving the organization. This means if the ones who have left fall in the category of low performers, the attrition in considered being healthy. Attrition rates are considered to be beneficial in some ways: 1. If all employees stay in the same organization for a very long time, most of them will be at the top of their pay scale which will result in excessive manpower costs. 2. When certain employees leave, whose continuation of service would have negatively impacted productivity and profitability of the company, the company is benefited. 3. New employees bring new ideas, approaches, abilities & attitudes which can keep the organization from becoming stagnant. 4. There are also some people in the organization who have a negative and demoralizing influence on the work culture and team spirit. This, in the long-term, is detrimental to organizational health.

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5. Desirable attrition also includes termination of employees with whom the organization does not want to continue a relationship. It benefits the organization in the following ways: It removes bottleneck in the progress of the company

It creates space for the entry of new talents

It assists in evolving high performance teams

6. There are people who are not able to balance their performance as per expectations, lack potential for future or need disciplinary action. Furthermore, as the rewards are limited, business pressures do not allow the management to over-reward the performers, but when undesirable employees leave the company, the good employees can be given the share that they deserve. Some companies believe attrition in any form is bad for an organization for it means that a wrong choice was made at the beginning while recruiting. Even good attrition indicates loss as recruitment is a time consuming and costly affair. The only positive point is that the realization has initiated action that will lead to cutting loss.

RETENTION SUCCESS MANTRAS

1) Transparent Work Culture
In todays fast paced business environments where employees are constantly striving to achieve business goals under time restrictions; open minded and transparent work culture plays a vital role in employee retention. Companies invest very many hours and monies in training and educating employees. These companies are severely affected when employees check out, especially in the middle of some big company project or venture. Although employees most often prefer to stay with 27

the same company and use their time and experience for personal growth and development, they leave mainly because of work related stress and dissatisfactions. More and more companies have now realized the importance of a healthy work culture and have a gamut of people management good practices for employees to have that ideal fresh work-life. Closed doors work culture can serve as a deterrent to communication and trust within employees which are potential causes for work-related apathy and frenzy. A transparent work environment can serve as one of the primary triggers to facilitate accountability, trust, communication, responsibility, pride and so on. It is believed that in a transparent work culture employees rigorously communicate with their peers and exchange ideas and thoughts before they are finally matured in to full-blown concepts. It induces responsibility among employees and accountability towards other peers, which gradually builds up trust and pride. More importantly, transparency in work environment discourages work-politics which often hinders company goals as employees start to advance their personal objectives at the expense of development of the company as a single entity. Employees comprise the most vital assets of the company. In a work place where employees are not able to use their full potential and not heard and valued, they are likely to leave because of stress and frustration. In a transparent environment while employees get a sense of achievement and belongingness from a healthy work environment, the company is benefited with a stronger, reliable work-force harboring bright new ideas for its growth.

2) Quality of Work
The success of any organization depends on how it attracts recruits, motivates, and retains its workforce. Organizations need to be more flexible so that they develop their talented workforce and gain their commitment. Thus, organizations are required to retain employees by addressing their work life issues.

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The elements that are relevant to an individuals quality of work life include the task, the physical work environment, social environment within the organization, administrative system and relationship between life on and off the job. The basic objectives of a QWL program are improved working conditions for the employee and increase organizational effectiveness. Providing quality work life involves taking care of the following aspects: 1. Occupational health care: The safe work environment provides the basis for the person to enjoy working. The work should not pose a health hazard for the person. The employer and employee, aware of their risks and rights, could achieve a lot in their mutually beneficial dialogue. 2. Suitable working time: Organizations are offering flexible work options to their employees wherein employees enjoy flexi-timings for dedicating their efforts at work. 3. Appropriate salary: The appropriate as well as attractive salary has always been an important factor in retaining employees. Providing employees salary at par with the other counterparts of above that what competitors are paying motivates them to stick with the company for long. QWL consists of opportunities for active involvement in group working arrangements or problem solving that are of mutual benefit to employees or employers, based on labor management cooperation. People also conceive of QWL as a set of methods, such as autonomous work groups, job enrichment, and high-involvement aimed at boosting the satisfaction and productivity of workers. It requires employee commitment to the organization and an environment in which this commitment can flourish. Providing quality at work not only reduces attrition but also helps in reduced absenteeism and improved job satisfaction. Not only does QWL contribute to a company's ability to recruit quality people, but also it enhances a company's competitiveness. Common beliefs

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support the contention that QWL will positively nurture amore flexible, loyal, and motivated workforce, which are essential in determining the company's competitiveness.

3) Supporting Employees
Organizations these days want to protect their biggest and most valuable asset and they want to do this in a way that best suits their organizational culture. Retaining employees is a difficult task. Providing support to the employees acts as a mantra for retraining them. Employers can also support their employees by creating an environment of trust and inculcating the organizational values into employees. The management can support employees directly or indirectly. Directly, they provide support in terms of personal crises, managing stress and personal development. Management can support employees, indirectly, in a number of ways as follows: 1. Manage employee turnover: Employee turnover affects the whole organization in terms of productivity. Managing the turnover, hence, becomes an important task. A proactive approach can be adopted to reduce attrition. Strategies should be framed in advance and implemented when the times arrives. Turnover costs should also be taken into consideration while framing these strategies. 2. Become employer of choice: What makes a company an employer of choice? Is the benefit it offers or the compensation packages it gives away to its employees? Or is it measured in terms of how they value their employees or in terms of customer satisfaction? Becoming an employer of choice involves following a road map which tells where to go as a brand. 3. Engage the new recruits : The newly hired employees are said to be least engaged in the organization. Keeping them engaged is an important task. The fresh talent should be utilized to maximum before they start feeling bored in the organization.

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4. Optimize employee engagement: An organizations productivity is measured not in terms of employee satisfaction but by employee engagement. Employees are said to be engaged when they show a positive attitude toward the organization and express a commitment to remain with the organization. Employee satisfaction also comes with high engagement levels. So, organizations should aim to maximize the engagement among employees. 5. Coaching and mentoring: Employees whose work performance suffers due to poor interpersonal relationships or because of lack of interpersonal skills should be provided proper coaching by their superiors. Planed coaching sessions help an individual to work through issues, maximize his potential and return to peak performance.

4) Feedback
Feedback acts as a channel of communication between the employee and his manager. The amount of information employees receive about how well or how poorly they have performed is what we call feedback. It is a dialog between a manager and an employee which acts as a way of sharing information about the performance. It suggests where the employee performance is effective and where performance has to improve. Managers can provide either positive feedback or negative feedback to employees. This feedback helps the employee assess his performance and identify the improvement areas. Positive feedback communicates managerial satisfaction. Positive recognition for good performance boosts up morale of employees and results in performance improvement to a higher productivity level. It is believed that positive feedback is the only type of feedback that generates performance above the minimum acceptable level. Negative feedback obviously communicates managers dissatisfaction. However, negative feedback sometimes make employee to put more efforts to improve his performance. But such times are very rare. Moreover this improvement is short term. Some managers do not provide any kind of feedback to their employees. Due to no feedback, employees may assume that they are performing productively or they may feel 31

that the manager is satisfied with their performance. Studies reveal the performance tends be same or even decreases if no feedback is provided. Thus, feedback is necessary because: 1. It builds trust and enhances communication between manager and employee. 2. It gives managers and employees a way to identify and discuss skills and strengths. 3. Positive feedback leads to employee retention and motivation. 4. It helps in identifying performance areas that need improvement and specific ways to improve them. 5. It acts as an opportunity to enhance performance by identifying resources for skill development. 6. It is an opportunity for managers and employees to assess and identify career and advancement opportunities. 7. It helps employees to understand the effectiveness of their performance and contributes to their overall knowledge about the work Managers have tendency to ignore good performances of their employees. Providing no feedback may de-motivate employees and may lead to employee absenteeism. Input from managers side is necessary as it help employees to improve their performance and increase productivity.

5) Communication between Employee and Employer

Communication is the solution to almost everything in this world. Same applies to employee retention also. Straight-from-the-shoulder communication is what the employees need from their employers. Employees look for organizations where communication and process are transparent. Nothing is hidden and shared with the employees. Communication is also the way to win the employees trust in the organization. Employees trust the employers who are friendly and open to them. This trust leads to employee loyalty and finally retention. Employers also feel that the immediate supervisors are the most authenticated and trusted source of information for them. So the organizations should hire managers who are active communicators. Communication mediums

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1. Open door policy: Organizations should support open door policies so that the employees feel comfortable and are able to express their doubts and feeling to their employers. 2. Frequent meetings and Social gatherings 3. Emails, Newsletters, Intranet and many more. So there should be effective communication across the organization & this communication should be two-way. Communication alone can lead to unimaginable heights of employee retention.

EMPLOYEES TURNOVER
Employees turnover has always been a sensitive issue for all organizations. Calculating employee turnover rate is not that simple as it seems to be. No common formula can be used by all the organizations. A formula had to be devised keeping in view the nature of the business and different job functions. Moreover, calculating attrition rate is not only about devising a mathematical formula. It also has to take into account the root of the problem by going back to the hiring stage.

Employees Turnover rate or Attrition rate means: In terms of numbers:

Total number of resigns per month (whether voluntary or forced) divided by (Total Number of employees at the beginning or the month plus total number of new joiners minus total number of resignations) multiplied by 100.

If calculating in monetary terms, it includes the following:

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Costs Due to a Person Leaving

1. Calculate the cost of the person(s) who fills in while the position is vacant. Calculate the cost of lost productivity at a minimum of 50% of the persons compensation and benefits cost for each week the position is vacant, even if there are people performing the work. Calculate the lost productivity at 100% if the position is completely vacant for any period of time. 2. Calculate the cost of conducting the exit interview to include the time of the person conducting the interview, the time of the person leaving, the administrative costs of stopping payroll, benefit deductions, benefit enrollments. 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. 4. Calculate the cost of training your company has invested in this employee who is leaving. 5. Calculate the impact of departmental productivity because the person is leaving. Who will pick up the work, whose work will suffer, what departmental deadlines will not be met or delivered late. 6. Calculate the cost of lost knowledge, skills and contacts that the person who is leaving is taking with them out of your door. Use a formula 50& of the persons annual salary for one year of service, increasing each year of service by 10%. 7. Subtract the cost of the person who is leaving for the amount of time the position is vacant.

Recruitment costs
1. The cost of advertisements; agency costs; employee costs; Internet posting costs.

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2. The cost of internal recruiters time to understand the position requirements, develop and implement a sourcing strategy, review candidates backgrounds, prepare for interviews, conduct interviews, prepare candidate assessments, conduct reference checks, make the employment offer and notify unsuccessful candidates. This can range from a minimum of 30 hours to over 100 hours per position. 3. Calculate the cost of the various candidate pre-employment tests to help assess candidates skills, abilities, aptitude, attitude, values and behaviors.

Training costs
1. Calculate the cost of orientation in terms of the new persons salary and the cost of the person who conducts the orientation. Also include the cost of orientation materials. 2. Calculate the cost of departmental training as the actual development and delivery cost plus the cost of the salary of the new employee. Note that the cost will be significantly higher for some positions such as sales representatives and call center agents who require 4-6 weeks or more of classroom training. 3. Calculate the cost of the person(s) who conduct the training. 4. Calculate the cost of various training materials needed including company or product manuals, computer or other technology equipment used in the delivery of training.

Lost productivity costs

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As the new employee is learning the new job, the company policies and practices, etc. they are not fully productive. Use the following guidelines to calculate the cost of this lost productivity: 1. Upon completion of whatever training is provided, the employee is contributing at a 25% productivity level for the first 2-4 weeks. The cost therefore is 75% of the new employees full salary during that time period. 2. During weeks 5-12, the employee is contributing at a 50% productivity level. The cost is therefore 50% of full salary during that time period. 3. During weeks 13-20, the employee is contributing at a 75% productivity level. The cost is therefore 25% of full salary during that time period. 4. Calculate the cost of mistakes the new employee makes during this elongated indoctrination period.

New Hire Costs

1. Calculate the cost of bring the new person on board including the cost to put the person on the payroll, establish computer and security passwords and identification cards, telephone hookups, cost of establishing email accounts, or leasing other equipment such as cell phones, automobiles. 2. Calculate the cost of a managers time spent developing trust and building confidence in the new employees work.

Lost Sales Costs

1. Calculate the revenue per employee by dividing total company revenue by the average number of employees in a given year. Whether an employee contributes directly or indirectly to the generation of revenue, their purpose is to provide some 36

defines set of responsibilities that are necessary to the generation of revenue. Calculate the lost revenue by multiplying the number of weeks the position is vacant by the average weekly revenue per employee.

The cost of employees turnover or attrition is: (Total staff * employees turnover rate/attrition rate %) * (annual salary * 80%)
The rule of thumb appears to be very inaccurate indeed and, while it depends upon the category of staff, it is probably better to estimate around 80% of salary as a truer rule of thumb- and this will be on the conservative side. What kind of strategies would be effective in producing the desired results of maximum Employee Retention and minimum Employee Turnover? The answer is obvious. It should be the aim of each employee to keep his work force fully satisfied with no room for disgruntlement. Retention of employees has become a primary concern in many organizations foe several reasons. As a practical matter, with lower turnover, every individual who is retained means one less person to have to recruit, selects, and trains. Also, the continuity employees who know their job, co-workers, organizational services and products and firms customers enhance organizational and individual performance. One survey of supervisor and workers found that losing high performance made it more difficult for organizations to reach their business goals. Additional continuity of employees provides better Employee image for attracting and retaining other individuals.

WAYS TO REDUCE EMPLOYEE TURNOVER

Following are some of the ideas to reduce employee turnover: 1. Hire the best candidate.

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2. Welcome new employees. Customize your induction program for new employees according to the requirements. Same induction program can not be applied to all the candidates. Make them feel welcomed. 3. Produce quality managers who can really manage employees well. 4. Provide employees with work schedules that are flexible enough to suit their needs. 5. Dont be too demanding. You re hiring human beings who have their own life and family commitments. Respect them. 6. Provide career counseling and development. 7. Discuss your future plans regarding the candidate with the candidate. Let them know that the management is interested in retaining them and cares for them. 8. Take proper feedback from employees regarding their grievances. 9. Remember your former employees. They can be helpful to you in future. It is also a part of employee retention.

FACTS ABOUT EMPLOYEE TURNOVER

It is difficult to accept when organizations say they have zero attrition rates. Companies may have healthier turnover rates, however, there is no such thing as zero attrition. There are other such facts about turnover, about which most of us are not aware. Some of such facts have been highlighted below: 1. Turnover always happens: Companies who believe in zero attrition rates only fool themselves. This happens because employees keep on moving due to reasons like 38

marriage or further education. Nothing can stop these employees from moving on. So, rather than achieving zero attrition companies should focus on identifying whom they want to keep so that they have healthy attrition rate. 2. Some Turnover is Desirable: Zero attrition is not desirable mainly because of two reasons. Firstly, if all employees continue to stay in the same organization, most of them will be at the top of their pay scale which will result in excessive manpower costs. Secondly, new employees bring new ideas, approaches, abilities & attitudes which can keep the organization from becoming stagnant. 3. Turnover includes costs: Turnover always includes some costs. Consider the costs of replacing the key employee who falls in to the category of high performers. This includes the costs of recruitment advertisement, referral bonuses, selection testing, training costs, etc. Moreover, turnover results in loss of time & efforts, low productivity, loss of morale, loss of knowledge and so on. 4. High salary doesnt work: Most managers assume that a high salary package is enough to keep employees loyal to their organization. Employees may face other problems like low job satisfaction, low engagement levels, no recognition, poor working conditions, less support from superiors and so on. Salaries are not always the solution to attrition. Managers should try to identify the roots of the problem and then find a feasible solution. 5. The manager can reduce attrition: Managers should take primary responsibility for retaining their employees. Much of the employees perception of job satisfaction stems from the relationship they share with their immediate supervisor. Managers should try to support their subordinates and give proper feedback on performance. HR managers should work in collaboration to make the key employees last in their organization.

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6. Reducing Turnover takes Commitment: Reducing turnover takes an investment in coaching, developing, motivating, mentoring & listening to people. There should be universal acceptance of the goal of reducing turnover along with top management commitment and dedication.

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OBJECTIVES OF THE STUDY

OBJECTIVES OF THE STUDY

1. To study the common reasons of employee voluntarily leaving from the organization. 2. To suggest the strategies and steps for reducing turnover and improving retention. 3. To study efforts made by organization to retain employee. 4. To study various career development programs offered by the organization. 5. To study the impact of induction & training programs on retention of employees. 41

6. To determine the organizational climate.

REVIEW
42

OF LITREATURE

REVIEW OF LITERATURE
Most researchers (Bluedorn, 1982; Kalliath and Beck,2001; Kramer et al., 1995; Peters et al., 1981; Saks,1996) have attempted to answer the question of what determines people's intention to quit by investigating possible antecedents of employees intentions to quit. To date, there has been little consistency in findings, which is partly due to the diversity of employed included by theresearchers and the lack of consistency in their findings. Therefore, there are several reasons why people quit from one organisation to another or why people leave organisation. The experience of job related stress(job stress), the range factors that lead to job related stress(stressors), lack of commitment in the organisation; and job dissatisfaction make employees to quit Firth et al.(2004). This clearly indicates that 43

these are individual decisions which make one to quit. They are other factors like personal agency refers to concepts such as a sense of powerlessness, locus of control and personal control. Locus control refers to the extent to which people believe that the external factors such as chance and powerful others are in control of the events which influence their lives Firth et al. (2004). Manu et al. (2004) argue that employees quit from organization due economic reasons.Using economic model they showed that people quit from organization due to economic reasons and these can be used to predict the labour turnover in the market. Good local labour market conditions improve organizational stability Schervish (1983). Large organizations can provide employees with better chances for advancement and higher wages and hence ensure organizational attachment (Idson and Feaster 1990). Trevor (2001) argues that local unemployment rates interact with job satisfaction to predict turnover in the market. Role stressors also lead to employees turnover. Role ambiguity refers to the difference between what people expect of us on the job and what we feel we should do. This causes uncertainty about what our role should be. It can be a result of misunderstanding what is expected, how to meet the expectations, or the employee thinking the job should be different Kahn et al. Muchinsky, 1990. Insufficient information on how to perform the job adequately, unclear expectations of peers and supervisors, ambiguity of performance evaluation methods, extensive job pressures, and lack of consensus on job functions or duties may cause employees to feel less involved and less satisfied with their jobs and careers, less committed to their organizations, and eventually display a propensity to leave the organisation (Tor et al., 1997). If roles of employees are not clearly spelled out by management/ supervisors, this would accelerate the degree of employees quitting their jobs due to lack of role clarity. Organisational instability has been shown to have a high degree of high turnover. Indications are that employees are more likely to stay when there is a predictable work environment and vice versa (Zuber, 2001). In organizations where there was a high level of inefficiency there was also a high level of staff turnover (Alexander et al.,1994). Therefore, in situations where organizations are not stable employees tend to quit and look for stable organisations because with stable organisations they

44

would be able to predict their career advancement.The imposition of a quantitative approach to managing the employees led to disenchantment of staff and hence it leads to labour turnover. Therefore management should not use quantitative approach in managing its employees. When high performers are insufficiently rewarded, they quit. If jobs provide adequate financial incentives the more likely employees remain with organisation and vice versa. There are also other factors which make employees to quit from organisations and these are poor hiring practices, managerial style, lack of recognition, lack of competitive compensation system in the organisation and toxic workplace environment Abassi et al. (2000). Employee engagement, the organizations capacity to engage, retain, and optimize the value of its employees hinges on how well jobs are designed, how employees' time is used, and the commitment and support that is shown to employees by the management would motivate employees to stay in organizations..Knowledge accessibility, the extent of the organisations collaborativeness and its capacity for making knowledge and ideas widely available to employees, would make employees to stay in the organisation. Sharing of information should be made at all levels of management. This accessibility of information would lead to strong performance from the employees and creating strong corporate culture Meaghan et al. (2002). Therefore; information accessibility would make employees feel 052 Afr. J. Bus. Manage.that they are appreciated for their effort and chances of leaving the organisation are minimal. Workforce optimization, the organisations success in optimizing the performance of the employees by establishing essential processes for getting work done, providing good working conditions, establishing accountability and making good hiring choices would retain employees in their organisation. The importance of gaining better understanding of the factors related to recruitment, motivation and retention of employees is further underscored by rising personnel costs and high rates of employee turnover (Badawy, 1988; Basta and Johnson, 1989; Garden,1989; Parden, 1981; Sherman, 1986). With increased competitiveness on globalizations, managers in many organizations are experiencing greater pressure from top management to improve recruitment, selection, training, and retention of good employees and in the long run would encourage employees 45

to stay in organisations. Job involvement describes an individuals ego involvement with work and indicates the extent to which an individual identifies psychologically with his/her job (Kanungo,1982). Involvement in terms of internalizing values about the goodness or the importance of work made employees not to quit their jobs and these involvements are related to task characteristics. Workers who have a greater variety of tasks tend stay in the job. Task characteristics have been found to be potential determinants of turnover among employees (Couger, 1988; Couger and Kawasaki, 1980; Garden, 1989; Goldstein and Rockart, 1984). These include the five core job characteristics identified by Hackman and Oldham (1975, 1980): skill variety, which refers to the opportunity to utilize a variety of valued skills and talents on the job; task identity, or the extent to which a job requires completion of a whole and identifiable piece of work - that is, doing a job from beginning to end, with visible results; task significance, which reflects the extent to which the job has a substantial impact on the lives or work of other people, whether within or outside the organisation; job autonomy, or the extent to which the job provides freedom, independence, and discretion in scheduling work and determining procedures that the job provides; and job feedback, which refers to the extent to which the job provides information about the effectiveness of ones performance (Tor et al., 1997). Involvement would influence job satisfaction and increase organizational commitment of the employees. Employees who are more involved in their jobs are more satisfied with their jobs and more committed to their organization (Blau and Boal, 1989; Brooke and Price, 1989; Brooke et al., 1988; Kanungo, 1982). Job involvement has also been found to be negatively related to turnover intentions (Blat and Boal, 1989). Job satisfaction, career satisfaction, and organisational commitment reflect a positive attitude towards the organization, thus having a direct influence on employee turnover intentions. Job satisfaction, job involvement and organisational commitment are considered to be related but distinguishable attitudes (Brooke and Price, 1989). Satisfaction represents an affective response to specific aspects of the job or career and denotes the pleasurable or positive emotional state resulting from an appraisal of ones job or career (Locke, 1976; Porter et al., 1974; Williams and Hazer, 1986).Organisational commitment is an affective response to the whole organisation and the degree of attachment or loyalty employees feel towards the organisation. Job involvement represents the extent to which employees are absorbed in or preoccupied with their jobs and the extent to which an 46

individual identifies with his/her job (Brooke et al., 1988).The degree of commitment and loyalty can be achieved if management they enrich the jobs, empower and compensate employees properly.Empowerment of employees could help to enhance the continuity of employees in organisations. Empowered employees where managers supervise more people than in a traditional hierarchy and delegate more decisions to their subordinates (Malone, 1997). Managers act like coaches and help employees solve problems. Employees, he concludes, have increased responsibility. Superiors empowering subordinates by delegating responsibilities to them leads to subordinates who are more satisfied with their leaders and consider them to be fair and in turn to perform up to the superiors expectations (Keller and Dansereau, 1995). All these makes employees to be committed to the organization and chances of quitting are minimal.

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RESEARCH METHODOLOGY

RESEARCH METHODOLOGY

RESEARCH DESIGN: The exploratory research design is adopted for this

project.

RESEARCH APPROACH: Research worker contacted the respondents

personally with well-prepared sequentially arranged questions. The questionnaire is prepared on the basis of objectives of the study. Direct contact is used for survey, i.e., contacting employees directly in order to collect data.

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SAMPLE SIZE: The study sample constitutes 50 respondents constituting in the

research area.

SAMPLING AREA: Hardwar. SAMPLING DESIGN: Stratified random sampling is used.

RESEARCH INSTRUMENT: The researcher has used a structured

questionnaire as a research instrument tool which consists of open ended questions, multiple choice and dichotomous questions in order to get data. All the questions in the questionnaire are organized in such a way that elicits all the relevant information that is needed for the study.

STATISTICAL TOOLS: The statistical tools used for analyzing the data
collected are percentage method, bar diagrams and pie diagrams.

ANALYSIS OF DATA: The data are collected through survey and books,
reports, newspapers and internet etc. The data collected by the researcher are tabulated and analyzed in such a way to make interpretations. Various steps, which are required to fulfill the purpose, i.e., editing, coding, and tabulating. The collected data are analyzed and interpreted using statistical tools and techniques.

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50

DATA ANALYSIS AND INTERPRETATIO N

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DATA ANALYSIS & INTERPRETATION

1.1 Are you satisfied with your current job?

SL NO PARTICULAR NUMBER OF RESPONDENTS PERCENTAGE

1 2 3 4 5

Highly satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied Total

17 28 3 1 1 50

34 56 6 2 2 100

34%

Satisfaction from current job 56% 6% 2%

2%

INTERPRETATION
The table shows that 34% of the respondents are highly satisfied with their present job. 56% are satisfied with the job and 2% are highly dissatisfied with the present job.

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1.2 According to you what are the major reasons for voluntary leaving of employees from organization?
SL NO PARTICULAR 1 2 3 4 5 Job and person mismatch No growth opportunities Lack of appreciation New job offers Lack of trust and support in co-workers, seniors and 6 management Work/ life imbalance Total 2 50 4 100 NUMBER OF RESPONDENTS 4 13 6 14 11 PERCENTAGE 8 26 12 28 22

INTERPRETATION
The table shows that common reasons for voluntary leaving of an employee are new job offers(28%), no growth opportunities(26%), lack of trust and support(22%).

1.3 Do you agree that organization takes initiative in retaining employees?

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SL NO PARTICULAR 1 2 3 4 5 Strongly agree Agree Neutral Disagree Strongly disagree Total

NUMBER OF RESPONDENTS 25 15 5 3 2 50 PERCENTAGE 50 30 10 6 4 100

INTERPRETATION
The table shows that 50% of the respondents are strongly agree that the organization takes initiatives for retaining employees.

1.4 What efforts organization makes for retaining the employees?

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SL NO PARTICULAR 1 2 3 4 5 6 7 8 Offer salary hike Offer T and D program Offer promotions Provide flexible work hours Provide assistance for personal problems Proper feedback Recognition and appreciation Empowerment Total

NUMBER OF RESPONDENTS 15 3 10 1 3 5 5 8 50

PERCENTAGE 30 6 20 2 6 10 10 16 100

Efforts make by organization for retaining employees offer salary hike 16% 10% 20% 10% 6% 6% 2% provide flexible work hour provide assistance for personal problems proper feedback 30% offer T and D program offer promotion

INTERPRETATION
The table shows 30% of the respondents agree that the organization gives salary hike for retaining and 20% says that organization uses training as retention strategy.

1.5 Do you agree that motivation is important for retaining the employees?
SL NO PARTICULAR NUMBER OF RESPONDENTS PERCENTAGE 55

1 2 3 4 5

Strongly Agree Agree Neutral Disagree Strongly Disagree Total

25 18 4 2 1 50

50 36 8 4 2 100

INTERPRETATION
The table shows that 50% of the respondents are strongly agreeing that the motivation is important for retaining.

1.6 Do you agree that recognizing and acknowledging employees work is helpful in retaining employees or improving retention?
SL NO PARTICULAR 1 Strongly Agree NUMBER OF RESPONDENTS 20 PERCENTAGE 40 56

2 3 4 5

Agree Neutral Disagree Strongly Disagree Total

22 4 3 1 50

44 8 6 2 100

INTERPRETATION
From the study, 44% of employees agreed that recognizing and acknowledging their work helps in improving retention, 40% strongly agreed and only 8% showed neutral response in the same context.

1.7 Do you think there is an effective performance appraisal system for providing feedback?
SL NO PARTICULAR 1 2 3 4 5 Strongly Agree Agree Neutral Disagree Strongly Disagree Total NUMBER OF RESPONDENTS 10 23 8 6 3 50 PERCENTAGE 20 46 16 12 6 100 57

INTERPRETATION
The table shows 46% of the respondents agree to effective performance appraisal system exist in the company.

1.8 How frequently you are been rewarded by your boss?

SL NO PARTICULAR 1 2 3 4 5 Once in a month Once in a 2-3 months More than 3 months Never/rare On achieving targets Total NUMBER OF RESPONDENTS 5 5 8 15 17 50 PERCENTAGE 10 10 16 30 34 100

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INTERPRETATION
The table shows 34% of the respondents agree that they are rewarded on achieving the targets and 30% said that never/rare they get rewards.

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1.9 Is job security exists in the company?

SL NO PARTICULAR 1 2 3 4 5 Strongly Agree Agree Neutral Disagree Strongly Disagree Total NUMBER OF RESPONDENTS 15 18 11 3 3 50 PERCENTAGE 30 36 22 6 6 100

30%

Job security existing in company 36% 22%

6% strongly agree agree

6%

neutral

disagree strongly disagree

INTERPRETATION
The table shows 36% of employees agree with good job security exist in the company.

1.10 Do you have good relations with the co-workers?

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SL NO PARTICULAR 1 2 3 4 5 Strongly Agree Agree Neutral Disagree Strongly Disagree Total

NUMBER OF RESPONDENTS 14 24 7 4 1 50 PERCENTAGE 28 48 14 8 2 100

INTERPRETATION
The table shows 48% of the respondents agree that they have good relations with coworker.

1.11 Do you have effective promotional opportunities in present job?

SL NO PARTICULAR NUMBER OF RESPONDENTS PERCENTAGE 61

1 2 3 4 5

Strongly Agree Agree Neutral Disagree Strongly Disagree Total

9 26 9 3 3 50

18 52 18 6 6 100

INTERPRETATION
The table shows 52% of the respondents agree with effective promotional opportunities in their present job.

1.12 Is Management involves you in decision making which are related to your department?
SL NO PARTICULAR 1 2 Yes No NUMBER OF RESPONDENTS 45 2 PERCENTAGE 90 4 62

Occasionally Total

3 50

6 100

INTERPRETATION The table shows 90% of the respondents agree that the Management involve them in decision making.

1.13 Do you find opportunity for direct communication with the employer/superior?
SL NO PARTICULAR 1 2 Yes No Total NUMBER OF RESPONDENTS 45 5 50 PERCENTAGE 90 10 100

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INTERPRETATION The table shows 90% of the respondents agreed that they can do direct communication with supervisor.

1.14 Which of the following is according to you is more effective in reducing employee turnover?
SL NO PARTICULAR 1 2 3 4 5 6 Effective Induction program Career development Flexible work schedule Proper feedback Hiring of best candidate Discussion of future plans Total NUMBER OF RESPONDENTS 17 13 3 7 5 5 50 PERCENTAGE 34 26 6 14 10 10 100 64

INTERPRETATION
The table shows that the 34% of the respondent agrees that induction programs are more effective in reducing employee turnover and 26% believes that career development opportunities are also effective.

1.15 Do you agree that career development opportunities have an impact on retention of employees?
SL NO PARTICULAR 1 2 3 4 5 Strongly Agree Agree Neutral Disagree Strongly Disagree Total NUMBER OF RESPONDENTS 10 26 2 4 8 50 PERCENTAGE 20 52 4 8 16 100

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INTERPRETATION
The table shows 52% of the respondents agree that the career development opportunities are effective.

1.16 Do you agree that the training programs are effective in retaining?
SL NO PARTICULAR 1 2 3 4 5 Strongly agree Agree Neutral Disagree Strongly disagree Total NUMBER OF RESPONDENTS 21 15 3 5 6 50 PERCENTAGE 42 30 6 10 12 100

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INTERPRETATION
The table shows that the 42% of the respondents are strongly agree that training programs are effective in retaining.

1.17 Do you find yourself comfortable with organization culture?

SL NO PARTICULAR 1 2 Yes No Total NUMBER OF RESPONDENTS 40 10 50 PERCENTAGE 80 20 100

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INTERPRETATION The table shows 80% of the respondents are comfortable with the organization culture.

1.18 Which of the following attributes does your organizational climate has?
S.NO 1 2 3 PARTICULARS Openness Confrontation Trust NUMBER OF RESPONDENTS 10 7 2 PERCENTAGE 20% 14% 4% 68

4 5 6 7 8

Autonomy Proactive Authentication Collaboration Experimentation TOTAL

3 15 3 2 8 50

6% 30% 6% 4% 16% 100

INTERPRETATION:
The table shows that the 30% respondents agree that the organization have proactive climate and 20% says that openness exist in the climate.

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FINDINGS

FINDINGS
1. According to analysis the main reasons for voluntarily leaving the job are: Lucrative opportunities from other companies Bad employment practices Lack of social life

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2. The main cause for reduction in number of employees is not providing healthy environment, delegation, not providing incentives, job and person mismatch, lack of appreciation, stress from overwork etc. 3. Efforts made by organization to retain its employees are: Offer salary hike. Offer training &development programs to employees. 4. Provides career development programs to retain as well as to motivate employees to work efficiently in the organization. 5. There are lots of strategies made out for retention in ITC LTD. such as: a) Hire the right person in the first place. b) Empower the employee. c) Make employee realize that they are the most valuable assets of the organization 6. Maximum no. of workers are satisfied from the culture of the organization.

7. The main factors of organizations climate are proactive, openness and experimentation.

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CONCLUSION

CONCLUSION
As employees are the bases for company so retention of employees is a major focus for HR department. The management should identify the important factors that affect retention and should take necessary measures to improve these. Also, the management should take appropriate measure to identify the reasons of employee voluntarily leave.

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It is only the employees that implement and give tangibility to the corporates mission. In other words if it is the highest rung in the corporate hierarchy that has ideas, it is the employees rung that has the chisel to bring the vision to life. 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 of advancement and flexible schedules so they could attend to personal or family needs when necessary. And never leave. But then theres the real world. And in the real world, employees, do, leave, either because they want more money, hate the working conditions, hate their co-workers, want a change, or because their spouse gets a dream job in another state. Unlike inanimate products and systems that subject themselves to fine tuning without any reaction, employees would not subject themselves to any measure taken without reaction and analysis. Hence managing human resources, particularly retaining them, is an art that calls for special skills and strategies. Employee survey and exit interviews can be used for assessing the reasons of employee voluntarily leave. HR interventions such as improving selection process, effective orientation and training, better employee relation, better career development programs and planning etc should be used to improve employee retention.

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SUGGESTION

SUGGESTION
The suggestions for the findings from the study are follows

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Most of the employees agree that the performance appraisal activities are helpful to retain employees, so the company should try to improve performance appraisal system, so that they can retain employees and improve their performance.

The trust and support is lacking in the co-workers so the organization should try to focus on it. In the organization climate collaboration is lacking so the organization has to make efforts in this direction so that employees can work collaboratively. Organization can reduce employee turnover by providing flexible work schedules. The organization must consider about providing more growth opportunities for employees.

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LIMITATIONS

LIMITATIONS
1. Time constraint- the duration of training was short, due to which it was difficult to collect data.

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2. One constraint has been regarding the cost, as study involves the collection of primary and secondary data. Therefore, the cost incurred was much more. 3. Another constraint has been geographical area, which is confined only to Hardwar. 4. Normally employees hesitate to disclose the information.

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BIBLIOGRAPHY

BIBLIOGRAPHY
(A) BOOKS
1) Gupta Shashi K. & Joshi Rosy, Human Resource Management, Tata McGraw Hill, Fourth Revised & Enlarged Edition, 2007. (Page 20.9-20.14)

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2) KOTHARI C.R., Research methodology, New Age Publishing House, Second Edition.

(B) LINKS
1) http://epa.sagepub.com/cgi/content/abstract/27/4/309 2) http://erx.sagepub.com/cgi/content/abstract/21/6/423

(C) WEBSITES
1) www.google.com 2) www.yahoo.com 3) www.jomsagepub.com

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ANNEXURE

QUESTIONNAIRE
1) Are you satisfied with your current job? a) Highly satisfied c) Neutral
e) Highly dissatisfied

b) Satisfied d) Dissatisfied

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2) According to you what are the major reasons for voluntary leaving of the employees from the organization? a) Job and person mismatch b) No growth opportunities c) Lack of appreciation d) New job offers e) Lack of trust and support in co-workers, f) Work/life imbalance seniors and management 3) Do you agree that organization takes initiative in retaining employees? a) Strongly agree b) Agree
c) Neutral e) Strongly disagree d) Disagree

4) What efforts organization make for retaining employees? a) Offer salary hike b) Offer training and development programs. c) Offer a promotion d) Provides flexible work hours e) Provides assistance for personal problems f) Proper feedback g) Recognition and appreciation h) Empowerment 5) Do you agree that motivation is important for retaining employees? a) Strongly agree b) Agree c) Neutral d) Disagree e) Strongly disagree 6) Do you agree that recognizing and acknowledging the employees works work is helpful in retaining employees or improving retention? a) Strongly agree b) Agree c) Neutral d) Disagree e) Strongly disagree 7) Do you think there is effective performance appraisal system for providing feedback? a) Strongly agree b) Agree c) Neutral d) Disagree e) Strongly disagree 8) How frequently you are been rewarded by your boss? a) Once in a month b) Once in 2-3 months c) More than 3 months d) Never/Rare e) On achieving the targets 9) Is job security exist in the company? a) Strongly agree b) Agree c) Neutral d) Disagree e) Strongly disagree 10) Do you have good relation with the co-workers? a) Strongly agree b) Agree 81

c) Neutral e) Strongly disagree

d) Disagree

11) Do you have effective promotional opportunities in the present job? a) Strongly agree b) Agree c) Neutral d) Disagree e) Strongly disagree 12) Is Management involves you in decision making which are related to your department? a) Yes c) Occasionally 13) Do you find opportunity for direct communication with the employer/superior? a) Yes b) No b) No

14) Which of the following is according to you is more effective in reducing employee turnover? a) Effective Induction program c) Flexible work schedule e) Hiring of best candidate b) Career development d) Proper feedback f) Discussion of future plans

15) Do you agree that career development opportunities have an impact on retention of employees? a) Strongly agree b) Agree c) Neutral d) Disagree e) Strongly disagree 16) Do you agree that the training programs are effective in retaining? a) Strongly agree c) Neutral e) Strongly disagree b) Agree d) Disagree

17) Do you find yourself comfortable with the organizational culture? a) Yes b) No 18) Which of the following attributes does your organizational climate has? a) Openness b) Confrontation c) Trust d) Autonomy 82

e) Proactive g) Collaboration

f) Authentication h) Experimentation

Comments, if any _________________________________________________________________________ _______________________________________________________________________

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